KB Financial Group Inc.

Report of Independent Registered Public Accounting Firm

To the board of directors and shareholders

KB Financial Group Inc.:

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of financial position of KB Financial Group Inc. and its subsidiaries (the “Group”) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Group’s internal control over financial reporting as of December 31, 2025, based on criteria established in

Internal Control - Integrated Framework

(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Group as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in

Internal Control - Integrated Framework

(2013) issued by the COSO.

Basis for Opinions

The Group’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Group’s consolidated financial statements and on the Group’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

F-1

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 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.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Allowance for expected credit losses on loans measured at amortized cost

As described in Note 10 to the consolidated financial statements, loans measured at amortized cost amount to ￦497,384,240 million, with allowances for credit losses of ￦5,406,196 million as of December 31, 2025. The Group measures expected credit losses on loans measured at amortized cost based on both individual and collective assessments. Individual assessment of expected credit losses is performed based on estimates of future forecast cash flow, and collective assessment of expected credit losses is involved with a variety and complex variable inputs and assumptions that requires management’s estimates and judgments.

The principal considerations for our determination that performing procedures relating to the allowance for credit losses of loans measured at amortized cost is a critical audit matter are: (i) there was significant judgment by management in determining the allowance, which in turn led to a high degree of auditor subjectivity in performing procedures related to the impairment models, key assumptions, such as probability of default, loss given default, credit risk ratings and determination of the forward-looking information and the expected future cash flows related to individual exposures; (ii) there was significant judgment and effort in evaluating audit evidence related to these models, judgments and assumptions used to determine the allowance; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the estimation process, which included controls over the data, models and assumptions used in determining the allowance for credit losses. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in testing management’s process to estimate the allowance for credit losses including evaluating the appropriateness of methodology and models,

F-2

and evaluating the reasonableness of significant assumptions used in the impairment models, such as probability of default, loss given default and credit risk ratings. It also included evaluating the reasonableness of key assumptions in the forward-looking information. Evaluating the forward-looking information assumptions involved assessing their reasonableness against external data and economic events that have occurred. We also assessed the reasonableness of the accuracy of borrower credit risk ratings and expected future cash flows related to individually assessed exposures.

Loss ratio assumptions used to estimate fulfillment cash flows of the insurance contracts

As described in Note 38 to the consolidated financial statements, the net book value of the liability for remaining coverage was ￦50,330,602 million, which is presented as insurance contract liabilities, reinsurance contract liabilities, insurance contract assets, and reinsurance contract assets in the consolidated statement of financial position as of December 31, 2025. The Group estimates future cash flows using various actuarial assumptions as inputs. Among the actuarial assumptions, the calculation of loss ratio assumptions includes various and complex inputs, including historical data, and management’s estimates and judgment.

The principal considerations for our determination that performing procedures relating to the loss ratio assumptions used to estimate fulfillment cash flows of the insurance contracts is a critical audit matter are: (i) there was significant judgment by management in determining the loss ratio, which in turn led to a high degree of auditor subjectivity in performing procedures related to the estimation fulfillment cash flows of the insurance contracts; (ii) there was significant judgment and effort in evaluating audit evidence related to these models, judgments and assumptions used to determine the loss ratio; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the estimation process, which included controls over the loss ratio assumptions used to estimate fulfillment cash flows of the insurance contracts. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in testing management’s process to evaluate the reasonableness and accuracy of the loss ratio assumption by performing recalculations and other procedures, and test the accuracy and completeness of the historical data used in management’s estimates by reconciling the data to supporting documents.

/s/ Samil PricewaterhouseCoopers

Seoul, the Republic of Korea

April 28, 2026

We have served as the Group’s auditor since

2022.

F-3

KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2024 AND 2025


	Dec. 31 2024		Dec. 31 2025		Dec. 31 2025
					Translation into U.S. dollars (Note 3)
	(In millions of Korean won)				(In thousands)
ASSETS
Cash and due from financial institutions	￦	29,869,111	￦	34,776,877	US$	24,074,540
Financial assets at fair value through profit or loss		79,450,093		89,862,530		62,207,974
Derivative financial assets		11,730,767		8,178,056		5,661,318
Loans measured at amortized cost		472,071,840		491,978,044		340,575,296
Financial investments		131,009,464		134,986,677		93,445,486
Investments in associates and joint ventures		947,390		1,137,184		787,223
Insurance contract assets		276,191		271,152		187,707
Reinsurance contract assets		1,497,147		1,515,854		1,049,361
Property and equipment		5,390,015		5,133,801		3,553,910
Investment property		3,759,176		3,224,180		2,231,962
Intangible assets		1,966,684		1,609,427		1,114,137
Net defined benefit assets		258,500		353,366		244,620
Current income tax assets		339,855		388,589		269,004
Deferred income tax assets		278,824		193,034		133,629
Assets held for sale		136,838		174,919		121,089
Assets included in disposal groups classified as held for sale		—		94,215		65,221
Other assets		18,863,637		24,045,128		16,645,410

Total assets	￦	757,845,532	￦	797,923,033	US$	552,367,887

LIABILITIES
Financial liabilities at fair value through profit or loss	￦	10,720,231	￦	11,320,590	US$	7,836,759
Derivative financial liabilities		11,783,494		8,234,289		5,700,245
Deposits		435,687,897		462,397,026		320,097,626
Borrowings		68,077,012		70,728,396		48,962,234
Debentures		76,171,257		80,049,270		55,414,676
Insurance contract liabilities		55,863,701		56,790,030		39,313,302
Reinsurance contract liabilities		56,266		59,648		41,292
Provisions		927,632		1,264,390		875,283
Net defined benefit liabilities		100,187		100,088		69,287
Current income tax liabilities		530,720		610,484		422,612
Deferred income tax liabilities		1,682,292		1,819,080		1,259,271
Liabilities included in disposal groups classified as held for sale		—		68,290		47,274
Other liabilities		36,429,662		43,651,463		30,218,036

Total liabilities		698,030,351		737,093,044		510,257,897

(Continued)

F-4

Table of Contents

KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED December 31, 2023, 2024 and 2025


	2023			2024			2025			2025
										Translation into U.S. dollars (Note 3)
	(In millions of Korean won, except per share amounts)									(In thousands, except per share amounts)
Interest income	￦	29,142,024		￦	30,491,385		￦	29,156,100		US$	20,183,518
Interest income from financial instruments at fair value through other comprehensive income and amortized cost		27,705,759			29,001,556			27,682,743			19,163,576
Interest income from financial instruments at fair value through profit or loss		1,415,366			1,458,512			1,436,152			994,186
Insurance finance interest income		20,899			31,317			37,205			25,756
Interest expense		(16,961,164	)		(17,664,671	)		(16,083,007	)		(11,133,575	)
Interest expense		(15,426,706	)		(16,186,914	)		(14,578,519	)		(10,092,083	)
Insurance finance interest expense		(1,534,458	)		(1,477,757	)		(1,504,488	)		(1,041,492	)

Net interest income		12,180,860			12,826,714			13,073,093			9,049,943

Fee and commission income		5,368,074			5,481,843			5,773,521			3,996,761
Fee and commission expense		(1,694,550	)		(1,632,216	)		(1,675,234	)		(1,159,692	)

Net fee and commission income		3,673,524			3,849,627			4,098,287			2,837,069

Insurance income		11,005,471			11,456,191			12,376,546			8,567,752
Insurance income		10,322,356			11,017,155			11,651,881			8,066,098
Reinsurance income		683,115			439,036			724,665			501,654
Insurance expense		(9,558,619	)		(9,806,430	)		(11,073,173	)		(7,665,483	)
Insurance service expense		(8,720,568	)		(8,884,168	)		(10,213,199	)		(7,070,160	)
Reinsurance expense		(838,051	)		(922,262	)		(859,974	)		(595,323	)

Net insurance income		1,446,852			1,649,761			1,303,373			902,269

Net gains (losses) on financial instruments at fair value through profit or loss		2,163,065			1,012,081			3,380,205			2,339,971

Other insurance finance income (expenses)		(572,476	)		(437,001	)		(1,026,721	)		(710,757	)

Net other operating expenses		(2,712,989	)		(1,873,011	)		(2,883,075	)		(1,995,829	)

General and administrative expenses		(6,647,406	)		(6,938,624	)		(7,064,573	)		(4,890,501	)

Operating income before provision for credit losses		9,531,430			10,089,547			10,880,589			7,532,165

Provision for credit losses		(3,146,409	)		(2,044,286	)		(2,362,878	)		(1,635,719	)

Net operating income		6,385,021			8,045,261			8,517,711			5,896,446

(Continued)

F-6

Table of Contents

KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED December 31, 2023, 2024 and 2025


	Equity attributable to shareholders of the Parent Company
	Share capital		Hybrid securities		Capital surplus			Accumulated other comprehensive income			Accumulated other comprehensive income relating to assets of a disposal group held for sale		Retained earnings			Treasury shares			Non-controlling interests			Total equity
	(In millions of Korean won)
Balance as of January 1, 2023	￦	2,090,558	￦	4,434,251	￦	16,940,731		￦	1,002,881		￦	—	￦	28,890,922		￦	(836,188	)	￦	1,280,102		￦	53,803,257

Comprehensive income for the year
Profit for the year		—		—					—			—		4,594,835			—			(68,501	)		4,526,334
Remeasurements of net defined benefit liabilities		—		—		—			(72,525	)		—		—			—			355			(72,170	)
Currency translation differences		—		—		—			7,306			—		—			—			(6,989	)		317
Gains on financial instruments at fair value through other comprehensive income and transfer to retained earnings		—		—		—			3,346,061			—		27,755			—			260			3,374,076
Share of other comprehensive income of associates and joint ventures		—		—		—			24			—		—			—			—			24
Gains on cash flow hedging instruments		—		—		—			53,923			—		—			—			—			53,923
Losses on hedging instruments of net investments in foreign operations		—		—		—			(14,659	)		—		—			—			—			(14,659	)
Insurance finance expenses		—		—		—			(2,117,504	)		—		—			—			—			(2,117,504	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		—		—		—			(52,863	)		—		—			—			—			(52,863	)

Total comprehensive income for the year		—		—		—			1,149,763			—		4,622,590			—			(74,875	)		5,697,478
Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company		—		—		—			—			—		(564,970	)		—			—			(564,970	)
Quarterly dividends paid to shareholders of the Parent Company		—		—		—			—			—		(586,931	)		—			—			(586,931	)
Issuance of hybrid securities		—		598,552		—			—			—		—			—			429,078			1,027,630
Dividends on hybrid securities		—		—		—			—			—		(184,915	)		—			(57,179	)		(242,094	)
Acquisition of treasury shares		—		—		—			—			—		—			(571,745	)		—			(571,745	)
Retirement of treasury shares		—		—		—			—			—		(242,096	)		242,096			—			—
Ownership changes in subsidiaries		—		—		(292,815	)		—			—		—			—			366,380			73,565

Total transactions with shareholders		—		598,552		(292,815	)		—			—		(1,578,912	)		(329,649	)		738,279			(864,545	)
Balance as of December 31, 2023	￦	2,090,558	￦	5,032,803	￦	16,647,916		￦	2,152,644		￦	—	￦	31,934,600		￦	(1,165,837	)	￦	1,943,506		￦	58,636,190

(Continued)

F-9

Table of Contents

KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

FOR THE YEARS ENDED December 31, 2023, 2024 and 2025


	Equity attributable to shareholders of the Parent Company
	Share capital		Hybrid securities			Capital surplus			Accumulated other comprehensive income			Accumulated other comprehensive income relating to assets of a disposal group held for sale		Retained earnings			Treasury shares			Non-controlling interests			Total equity
	(In millions of Korean won)
Balance as of January 1, 2024	￦	2,090,558	￦	5,032,803		￦	16,647,916		￦	2,152,644		￦	—	￦	31,934,600		￦	(1,165,837	)	￦	1,943,506		￦	58,636,190

Comprehensive income for the year
Profit for the year		—		—						—			—		5,078,221			—			(49,615	)		5,028,606
Remeasurements of net defined benefit liabilities		—		—			—			(85,946	)		—		—			—			571			(85,375	)
Currency translation differences		—		—			—			547,337			—		—			—			35,535			582,872
Gains (losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings		—		—			—			1,216,509			—		(2,647	)		—			(427	)		1,213,435
Share of other comprehensive income of associates and joint ventures		—		—			—			165			—		—			—			—			165
Gains (losses) on cash flow hedging instruments		—		—			—			34,763			—		—			—			(22	)		34,741
Losses on hedging instruments of net investments in foreign operations		—		—			—			(186,708	)		—		—			—			—			(186,708	)
Insurance finance expenses		—		—			—			(3,176,328	)		—		—			—			—			(3,176,328	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		—		—			—			(5,514	)		—		—			—			—			(5,514	)

Total comprehensive income for the year		—		—			—			(1,655,722	)		—		5,075,574			—			(13,958	)		3,405,894
Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company		—		—			—			—			—		(587,006	)		—			—			(587,006	)
Quarterly dividends paid to shareholders of the Parent Company		—		—			—			—			—		(899,971	)		—			—			(899,971	)
Issuance of hybrid securities		—		399,059			—			—			—		—			—			756,317			1,155,376
Dividends on hybrid securities		—		—			—			—			—		(199,800	)		—			(77,162	)		(276,962	)
Repayment on hybrid securities		—		(349,284	)		—			—			—		—			—			(659,866	)		(1,009,150	)
Acquisition of treasury shares		—		—			—			—			—		—			(820,000	)		—			(820,000	)
Disposal of treasury shares		—		—			3,975			—			—		—			234,600			—			238,575
Retirement of treasury shares		—		—			—			—			—		(515,177	)		515,177			—			—
Ownership changes in subsidiaries		—		—			—			—			—		—			—			12,198			12,198
Others		—		—			(5,157	)		—			—		—			—			(34,806	)		(39,963	)

Total transactions with shareholders		—		49,775			(1,182	)		—			—		(2,201,954	)		(70,223	)		(3,319	)		(2,226,903	)
Balance as of December 31, 2024	￦	2,090,558	￦	5,082,578		￦	16,646,734		￦	496,922		￦	—	￦	34,808,220		￦	(1,236,060	)	￦	1,926,229		￦	59,815,181

(Continued)

F-10

KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

FOR THE YEARS ENDED December 31, 2023, 2024 and 2025


	Equity attributable to shareholders of the Parent Company
	Share capital		Hybrid securities			Capital surplus			Accumulated other comprehensive income			Accumulated other comprehensive income relating to assets of a disposal group held for sale		Retained earnings			Treasury shares			Non-controlling interests			Total equity
	(In millions of Korean won)
Balance as of January 1, 2025		2,090,558	￦	5,082,578		￦	16,646,734		￦	496,922		￦	—	￦	34,808,220		￦	(1,236,060	)	￦	1,926,229		￦	59,815,181

Comprehensive income for the year
Profit for the year		—		—			—			—			—		5,833,162			—			7,553			5,840,715
Remeasurements of net defined benefit liabilities		—		—			—			28,615			—		—			—			(598	)		28,017
Currency translation differences		—		—			—			(47,362	)		—		—			—			18,548			(28,814	)
Gains (losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings		—		—			—			(1,877,909	)		—		9,744			—			(55	)		(1,868,220	)
Share of other comprehensive income of associates and joint ventures		—		—			—			2,018			—		—			—			—			2,018
Losses on cash flow hedging instruments		—		—			—			(265,830	)		—		—			—			(23,678	)		(289,508	)
Gains on hedging instruments of net investments in foreign operations		—		—			—			39,631			—		—			—			—			39,631
Insurance finance income		—		—			—			1,159,681			—		—			—			—			1,159,681
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		—		—			—			(3,222	)		—		—			—			—			(3,222	)

Total comprehensive income for the year		—		—			—			(964,378	)		—		5,842,906			—			1,770			4,880,298
Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company		—		—			—			—			—		(298,285	)		—			—			(298,285	)
Quarterly dividends paid to shareholders of the Parent Company		—		—			—			—			—		(1,004,006	)		—			—			(1,004,006	)
Issuance of hybrid securities		—		404,028			—			—			—		—			—			—			404,028
Dividends on hybrid securities		—		—			—			—			—		(202,392	)		—			(102,549	)		(304,941	)
Redemption of hybrid securities		—		(1,127,218	)		—			—			—		—			—			—			(1,127,218	)
Acquisition of treasury shares		—		—			—			—			—		—			(1,480,000	)		—			(1,480,000	)
Retirement of treasury share		—		—			—			—			—		(814,522	)		814,522			—			—
Ownership changes in subsidiaries		—		—			(10,401	)		—			—		—			—			(22,070	)		(32,471	)
Others		—		—			(2,815	)		—			—		1,820			—			(21,602	)		(22,597	)

Total transactions with shareholders		—		(723,190	)		(13,216	)		—			—		(2,317,385	)		(665,478	)		(146,221	)		(3,865,490	)
Balance as of December 31, 2025	￦	2,090,558	￦	4,359,388		￦	16,633,518		￦		(467,456)	￦	—	￦	38,333,741		￦	(1,901,538	)	￦	1,781,778		￦	60,829,989

(Continued)

F-11

Table of Contents

KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

FOR THE YEARS ENDED December 31, 2023, 2024 and 2025


	Equity attributable to shareholders of the Parent Company
	Share capital		Hybrid securities			Capital surplus			Accumulated other comprehensive income			Accumulated other comprehensive income relating to assets of a disposal group held for sale		Retained earnings			Treasury shares			Non-controlling interests			Total equity
	(In millions of Korean won)
Balance as of January 1, 2025	US$	1,447,203	US$	3,518,451		US$	11,523,820		US$	343,998		US$	—	US$	24,096,238		US$	(855,671)		US$	1,333,445		US$	41,407,484

Comprehensive income for the year
Profit for the year		—		—			—			—			—		4,038,048			—			5,229			4,043,277
Remeasurements of net defined benefit liabilities		—		—			—			19,809			—		—			—			(414	)		19,395
Currency translation differences		—		—			—			(32,787	)		—		—			—			12,841			(19,946	)
Gains(losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings		—		—			—			(1,299,996	)		—		6,745			—			(38	)		(1,293,289	)
Share of other comprehensive income of associates and joint ventures		—		—			—			1,397			—		—			—			—			1,397
Losses on cash flow hedging instruments		—		—			—			(184,023	)		—		—			—			(16,392	)		(200,415	)
Gains on hedging instruments of net investments in foreign operations		—		—			—			27,435			—		—			—			—			27,435
Insurance finance expenses		—		—			—			802,797			—		—			—			—			802,797
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		—		—			—			(2,230	)		—		—			—			—			(2,230	)

Total comprehensive income for the year		—		—			—			(667,598	)		—		4,044,793			—			1,226			3,378,421
Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company		—		—			—			—			—		(206,490	)		—			—			(206,490	)
Quarterly dividends paid to shareholders of the Parent Company		—		—			—			—			—		(695,030	)		—			—			(695,030	)
Issuance of hybrid securities		—		279,691			—			—			—		—			—			—			279,691
Dividends on hybrid securities		—		—			—			—			—		(140,107	)		—			(70,991	)		(211,098	)
Redemption of hybrid securities		—		(780,325	)		—			—			—		—			—			—			(780,325	)
Acquisition of treasury shares		—		—			—			—			—		—			(1,024,541	)		—			(1,024,541	)
Retirement of treasury shares		—		—			—			—			—		(563,859	)		563,859			—			—
Ownership changes in subsidiaries		—		—			(7,200	)		—			—		—			—			(15,278	)		(22,478	)
Others		—		—			(1,949	)		—			—		1,259			—			(14,954	)		(15,644	)

Total transactions with shareholders		—		(500,634	)		(9,149	)		—			—		(1,604,227	)		(460,682	)		(101,223	)		(2,675,915	)
Balance as of December 31, 2025	US$	1,447,203	US$	3,017,817		US$	11,514,671		US$	(323,600	)	US$	—	US$	26,536,804		US$	(1,316,353	)	US$	1,233,448		US$	42,109,990

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

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KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED December 31, 2023, 2024 and 2025


	2023			2024			2025			2025
										Translation into U.S. dollars (Note 3)
	(In millions of Korean won)									(In thousands)
Cash flows from operating activities:
Profit for the year	￦	4,526,334		￦	5,028,606		￦	5,840,715		US$	4,043,277

Adjustment for non-cash items
Net losses (gains) on financial assets at fair value through profit or loss		(1,793,351	)		29,212			(2,246,763	)		(1,555,338	)
Net losses on derivative financial instruments for hedging purposes		53,073			168,387			61,260			42,408
Provision for credit losses		3,146,409			2,044,286			2,362,878			1,635,719
Net losses (gains) on financial investments		255,989			103,986			(100,042	)		(69,255	)
Share of loss (profit) of associates and joint ventures		(33,110	)		16,884			(26,852	)		(18,589	)
Depreciation and amortization expense		865,927			916,295			914,686			633,198
Other net losses (gains) on property and equipment/intangible assets		131,270			145,164			(152,580	)		(105,625	)
Share-based payments		69,703			140,453			153,882			106,526
Post-employment benefits		155,720			177,481			192,787			133,458
Net interest expense		274,681			6,122			250,558			173,451
Losses on foreign currency translation		200,486			620,754			730,732			505,854
Insurance finance income		(7,695,017	)		(10,922,966	)		(10,823,339	)		(7,492,533	)
Reinsurance finance expense		1,318,610			1,659,880			1,241,676			859,559
Other expenses		827,254			793,690			860,422			595,634

		(2,222,356	)		(4,100,372	)		(6,580,695	)		(4,555,533	)

Changes in operating assets and liabilities
Financial asset at fair value through profit or loss		(6,247,689	)		(700,633	)		(7,550,760	)		(5,227,067	)
Derivative financial instruments		(152,753	)		(207,969	)		2,162			1,497
Loans measured at fair value through other comprehensive income		(252,695	)		(646,377	)		(548,985	)		(380,039	)
Loans measured at amortized cost		(15,308,932	)		(27,515,988	)		(23,368,272	)		(16,176,852	)
Current income tax assets		(39,627	)		(95,539	)		(48,734	)		(33,736	)
Deferred income tax assets		(84,148	)		5,201			83,410			57,741
Other assets		(3,775,944	)		1,393,446			(9,035,662	)		(6,255,002	)
Financial liabilities at fair value through profit or loss		(1,467,780	)		(183,609	)		(58,243	)		(40,319	)
Deposits		12,195,807			23,821,056			23,150,126			16,025,839
Current income tax liabilities		(853,347	)		385,385			79,765			55,218
Deferred income tax liabilities		245,859			367,748			354,843			245,643
Other liabilities		9,967,626			(4,948,829	)		5,483,916			3,796,279
Insurance contract assets		(146,335	)		(46,550	)		5,039			3,488
Reinsurance contract assets		(1,470,578	)		(1,498,923	)		(1,258,024	)		(870,876	)
Insurance contract liabilities		9,009,220			11,807,838			13,387,533			9,267,615
Reinsurance contract liabilities		37,217			49,018			(2,261	)		(1,565	)
Investment contract liabilities		148,937			1,106,677			4,290,505			2,970,133

		1,804,838			3,091,952			4,966,358			3,437,997

Net cash inflow from operating activities	￦	4,108,816		￦	4,020,186		￦	4,226,378		US$	2,925,741

(Continued)

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Table of Contents

KB FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE YEARS ENDED December 31, 2023, 2024 and 2025


	2023			2024			2025			2025
										Translation into U.S. dollars (Note 3)
	(In millions of Korean won)									(In thousands)
Cash flows from investing activities:
Net cash flows from derivative financial instruments for hedging purposes	￦	(48,122	)	￦	(44,552	)	￦	(125,312	)	US$	(86,748	)
Disposal of financial asset at fair value through profit or loss		12,389,938			15,648,112			24,532,395			16,982,725
Acquisition of financial asset at fair value through profit or loss		(11,312,232	)		(16,365,119	)		(25,180,947	)		(17,431,689	)
Disposal of financial investments		43,472,217			45,225,323			52,496,175			36,340,850
Acquisition of financial investments		(47,125,014	)		(47,328,121	)		(57,231,392	)		(39,618,838	)
Disposal of investments in associates and joint ventures		99,834			98,497			257,829			178,484
Acquisition of investments in associates and joint ventures		(114,904	)		(339,469	)		(419,661	)		(290,513	)
Disposal of property and equipment		8,177			18,616			91,927			63,637
Acquisition of property and equipment		(350,138	)		(337,178	)		(333,440	)		(230,826	)
Disposal of investment property		3,669			264,948			675,864			467,872
Acquisition of investment property		(1,018,598	)		(88,756	)		(183,503	)		(127,031	)
Disposal of intangible assets		5,359			21,073			11,702			8,101
Acquisition of intangible assets		(330,427	)		(289,731	)		(221,529	)		(153,355	)
Net cash flows from changes in ownership of subsidiaries		1,297,001			88,528			(264,868	)		(183,357	)
Others		(496,252	)		(397,226	)		356,861			247,038

Net cash outflow from investing activities		(3,519,492	)		(3,825,055	)		(5,537,899	)		(3,833,650	)

Cash flows from financing activities:
Net cash flows from derivative financial instruments for hedging purposes		(73,335	)		(216,883	)		(276,837	)		(191,642	)
Net increase (decrease) in borrowings		(2,223,069	)		(4,358,474	)		3,844,056			2,661,075
Increase in debentures		83,777,490			86,031,647			93,229,857			64,539,031
Decrease in debentures		(83,683,272	)		(80,848,086	)		(89,470,531	)		(61,936,611	)
Increase in other payables to trust accounts		2,333,656			89,900			2,905,896			2,011,627
Dividends paid to shareholders of the Parent Company		(1,151,900	)		(1,486,978	)		(1,302,291	)		(901,520	)
Issuance of hybrid securities		598,552			399,059			404,028			279,691
Repayment on hybrid securities		—			(350,000	)		(1,130,000	)		(782,251	)
Dividends paid on hybrid securities		(184,915	)		(199,800	)		(202,392	)		(140,107	)
Acquisition of treasury shares		(571,745	)		(820,000	)		(1,480,000	)		(1,024,541	)
Redemption of principal of lease liabilities		(235,052	)		(311,363	)		(366,953	)		(254,026	)
Increase (decrease) in non-controlling interests		721,101			115,292			(103,724	)		(71,804	)
Others		(546,580	)		(28,151	)		(253,186	)		(175,269	)

Net cash inflow (outflow) from financing activities		(1,239,069	)		(1,983,837	)		5,797,923			4,013,653
Effect of exchange rate changes on cash and cash equivalents		(58,465	)		570,985			(74,705	)		(51,715	)

Net increase (decrease) in cash and cash equivalents		(708,210	)		(1,217,721	)		4,411,697			3,054,029
Cash and cash equivalents at the beginning of the year		26,534,798			25,826,588			24,608,867			17,035,663

Cash and cash equivalents at the end of the year	￦	25,826,588		￦	24,608,867		￦	29,020,564		US$	20,089,692

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

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1. The Parent Company

KB Financial Group Inc. (the “Parent Company”) was incorporated on September 29, 2008, under the Financial Holding Companies Act of Korea. KB Financial Group Inc. and its subsidiaries (the “Group”) derive substantially all of their revenue and income from providing a broad range of banking and related financial services to consumers and corporations. The Parent Company’s main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership.

The Parent Company’s headquarter is located at 26,

Gukjegeumyung-ro

8-gil,

Yeongdeungpo-gu,

Seoul. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd. and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Group established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Group acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Group included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Group included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd. The Parent Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on June 30, 2023.

The Parent Company’s share capital as of December 31, 2025, is ￦

2,090,558 million. The Parent Company has been listed on the Korea Exchange (“KRX”) since October 10, 2008, and on the New York Stock Exchange (“NYSE”) for its American Depositary Shares (“ADS”) since September 29, 2008. Number of shares authorized in its Articles of Incorporation is 1,000 million.

2. Basis of Preparation

2.1 Application of International Financial Reporting Standards as issued by the International Accounting Standards Board.

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”).

The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Group’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

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

•

Amendment of International Accounting Standard (“IAS”) No. 21 “The Effects of Changes in Foreign Exchange Rates” and IFRS No.01 “First-time Adoption of International Financial Reporting Standards”—Lack of exchangeability

The amendments require the Group to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Group is exposed. These amendments do not have a material impact on the financial statements.

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2.1.2 The following new and amended standards have been published that are not mandatory for December 31, 2025 reporting period and have not been adopted by the Group.

•

Amendment of IFRS No.09 “Financial Instruments” and No.07 “Financial Instruments: Disclosures”

IFRS No.09

Financial Instruments

and IFRS No.07

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 amendments do not have a significant impact on the financial statements.

These amendments:

•

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

•

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

•

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

•

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

•

IFRS Accounting Standards Annual Improvements Volume 11

IFRS Accounting Standards Annual Improvements Volume 11 will be effective for annual reporting periods beginning on or after January 1, 2026. These amendments do not have a significant impact on the financial statements.

•

IFRS No.01 “First-time adoption of International Financial Reporting Standards”: Hedge accounting by a first-time adopter

•

IFRS No.07 “Financial Instruments: Disclosures”: Gain or loss on derecognition, Application guidance

•

IFRS No.09 “Financial Instruments”: Derecognition of lease liabilities, Definition of transaction price

•

IFRS No.10 “Consolidated Financial Statements”: Determination of a ‘de facto agent’

•

IAS No.07 “Statement of Cash Flows”: Cost method

•

IFRS No.18 Presentation and Disclosures in Financial Statements

IFRS No.18 “Presentation and Disclosure in Financial Statements” replaces IFRS No.01 “Presentation of Financial Statements.” IFRS No.18 introduces new presentation requirements, particularly with respect to the definition of operating profit or loss, which are expected to enhance comparability of financial performance among similar entities. In addition, the disclosure requirements for management-defined performance measures are intended to improve transparency. The Standard is effective for annual reporting periods beginning on or after January 1, 2027, with early adoption permitted. In accordance with the retrospective application requirements of the Standard, the Group will restate the comparative information for the year ending December 31, 2026 in accordance with IFRS No.18.

The Group has not yet adopted IFRS No.18 and is currently assessing the impact that the application of the Standard will have on its financial statements. The Group has prepared a transition plan and is on track to report their first IFRS

No.18-compliant

interim financial statements for the period ending March 31, 2027 and annual financial statements for the period ending December 31, 2027.

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2.1.3 Retrospective application of changes in accounting policies for Insurance Contracts

In 2024, the Group changed its accounting policies, including those related to the recognition of insurance finance income or expenses, such as the change from the projected crediting rate approach to the effective yield approach under IFRS No. 17. These changes were made and accounted for in accordance with IAS No. 08, “Accounting Policies, Changes in Accounting Estimates, and Errors”. The Group determined that these changes in accounting policies provide reliable and relevant information to users of financial statements.

The effects of applying the changes in accounting policies on the comprehensive income statement for the year ended December 31, 2023 are as follows:

2.1.3.1 The consolidated statement of comprehensive income for the year ended December 31, 2023


(In millions of Korean won)	Before the effects of change in accounting policy			After the effects of change in accounting policy			Net increase (decrease)
Net Interest income	￦	12,141,717		￦	12,180,860		￦	39,143
Insurance finance interest income		23,954			20,899			(3,055	)
Insurance finance interest expense		(1,576,656	)		(1,534,458	)		42,198
Net insurance income		1,422,952			1,446,852			23,900
Insurance income		10,978,808			11,005,471			26,663
Insurance income		10,295,693			10,322,356			26,663
Insurance expense		(9,555,856	)		(9,558,619	)		(2,763	)
Insurance service expense		(8,718,748	)		(8,720,568	)		(1,820	)
Reinsurance expense		(837,108	)		(838,051	)		(943	)
Other insurance finance expenses		(459,135	)		(572,476	)		(113,341	)
Net operating income		6,435,319			6,385,021			(50,298	)
Net non-operating expenses		(264,870	)		(264,870	)		-
Profit before income tax expense		6,170,449			6,120,151			(50,298	)
Income tax expense		(1,607,018	)		(1,593,817	)		13,201
Profit for the period		4,563,431			4,526,334			(37,097	)
Other comprehensive income (loss), net of tax		1,066,624			1,171,144			104,520
Net Financial Income (Expense) of Insurance Contract Assets (Liabilities)		(2,222,024	)		(2,117,504	)		104,520
Total comprehensive income	￦	5,630,055		￦	5,697,478		￦	67,423

2.2 Measurement Basis

The consolidated financial statements have been prepared based on the historical cost accounting model unless otherwise specified.

2.3 Functional and Presentation Currency

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

2.4 Critical Accounting Estimates

The Group applies accounting policies and uses judgments, accounting estimates, and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses) in preparing the consolidated financial statements. Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment are different from the actual environment.

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2.4 Critical Accounting Estimates (cont’d)

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

Uncertainties in estimates and assumptions with significant risks that may result in material adjustments to the consolidated financial statements are as follows:

2.4.1 Income taxes

As the income taxes on the Group’s taxable income is calculated by applying the tax laws of various countries and the decisions of tax authorities, there is uncertainty in calculating the final tax effect.

If a certain portion of the taxable income is not used for investments, wages, etc. in accordance with the Korean regulation called ‘Special Taxation for Facilitation of Investment and Mutually-beneficial Cooperation’, the Group is liable to pay additional income tax calculated based on the tax laws. Therefore, the effect of recirculation of corporate income should be reflected in current and deferred income tax. As the Group’s income tax is dependent on the actual investments, wages, etc. per each year, there are uncertainties in measuring the final tax effects during the period when the tax law is applied.

2.4.2 Fair value of financial instruments

The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available is determined by using valuation techniques. Financial instruments, which are not actively traded in the market and those with less transparent market prices, will have less objective fair values and require broad judgment on liquidity, concentration, uncertainty in market factors, assumptions in fair value determination, and other risks.

As described in the material accounting policies in Note 3.3 Recognition and Measurement of Financial Instruments, diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

2.4.3 Allowances and provisions for credit losses

The Group recognizes and measures allowances for credit losses of debt instruments measured at amortized cost, debt instruments measured at fair value through other comprehensive income, and lease receivables. Also, the Group recognizes and measures provisions for credit losses of acceptances and guarantees, and unused loan commitments. Accuracy of allowances and provisions for credit losses is dependent upon estimation of expected cash flows of the borrower subject to individual assessment of impairment, and upon assumptions and variables of model used in collective assessment of impairment and estimation of provisions for credit losses of acceptances and guarantees, and unused loan commitments.

2.4.4 Impairment of goodwill

The recoverable amounts of cash-generating units are determined based on

value-in-use

calculations to test whether impairment of goodwill has occurred.

2.4.5 The judgment and estimation uncertainty in measurement of insurance contracts

2.4.5.1 Methods used to measure the future cash flows and estimation process of input variable

The estimated future cash flows are measured as the probability-weighted average of all possible outcomes, utilizing all reasonable and relevant information available without excessive cost or effort. Market and

non-market

variables are considered in measuring the cash flows within the boundary of the insurance contract.

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2.4.5.1 Methods used to measure the future cash flows and estimation process of input variable (cont’d)

While deterministic scenarios (representing a range of probabilities) are typically used for calculating the probability-weighted average, probabilistic scenarios are employed when cash flows are influenced by complex underlying factors and nonlinear responses to economic conditions. The cash flows within the boundary of an insurance contract portfolio include both directly attributable cash flows and cash flows allocated from a higher level than the insurance contract portfolio. These cash flows are systematically and reasonably allocated, ensuring consistent methods are applied for similar types of cash flows.

The key assumptions used in estimating the future cash flows of the Group are as follows:

•

Loss ratio: The loss ratio refers to the ratio of insurance claims paid to policyholders to the premiums received by the insurance company for providing risk coverage services to policyholders. The loss ratio, which is an estimation of future premiums and claims payable, is estimated based on objective and reliable data, using the best available methods to suit the intended application. Objective and reliable data refers to the most recent measured results made using the Group’s experience statistics, insurance industry statistics, or national statistics, and others. It also means the best method that reasonably distinguishes characteristics such as the policyholder’s gender, contract type, risk characteristics by distribution channel, and others.

•

Expense ratio: Expense ratio refers to the costs incurred by insurance companies for the sale and management of insurance contracts. Expense ratio is calculated primarily considering the ongoing costs incurred by the insurance company, taking into account the going concern, and includes the allocation of both fixed and variable indirect expenses directly related to insurance contracts. Expense ratio also considers costs such as contract acquisition expense (regardless of whether premiums are paid or not), contract maintenance expense, and claims expense, distributed in order to manage cost by product and distribution channel.

•

Lapse ratio: The lapse ratio is an estimate of future cancelations or lapses of insurance contracts among current customers of the insurance company. It is calculated for the purpose of predicting the level of future current premium payments and cancelation refunds. The statistics used for estimation primarily rely on experience statistics of the Group, and lapse ratio is calculated based on characteristics such as product type, distribution channel, payment method, and others, which can significantly affect lapse ratio.

2.4.5.2 Estimation of Discretionary Cash Flows

Some contracts issued by the Group grant discretion to the Group regarding cash flows to be paid to policyholders. Changes in discretionary cash flows are considered related to future services, and adjust the contractual service margin. The Group identifies changes in discretionary cash flow by identifying assured cash flows at the initial recognition date of the contract. However, if it is not possible to distinguish between the portion considered assured and the portion considered discretionary, the profit within the estimated fulfillment cash flows is considered assured, and is updated to reflect current assumptions related to financial risk.

2.4.5.3 Estimation of Risk Adjustment for

Non-Financial

Risk

Risk adjustment for

non-financial

risk is to adjust the present value estimates of future cash flows to reflect the compensation required by the Group for bearing the uncertainty about the amount and timing of cash flows arising from

non-financial

risk. This adjustment reflects the uncertainty of cash flows arising from all

non-financial

risks related to the insurance contracts and is estimated separately from all of the other estimates. The Group uses the confidence lever technique and the cost of capital methods for determining the risk adjustment for

non-financial

risk. Changes in risk adjustment for

non-financial

risk are disclosed separately for insurance service results and insurance finance income. The Group calculates this adjustment considering the diversification effect at the consolidated level and then allocated to individual contract units.

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2.4.5.4 Estimation of Discount Rate

The discount rate should only include relevant factors such as the time value of money, characteristics of cash flows from insurance contracts, and liquidity characteristics, and should be calculated using observable input variables to the maximum extent possible. The discount rate should also reflect all reasonable and supportable information on internal and external

non-market

variables available without undue cost or effort. The Group estimates the discount rate using a

bottom-up

approach.

In the

bottom-up

approach, the discount rate is calculated using an unleveraged yield curve adjusted to reflect the characteristics of cash flows and liquidity of insurance contracts. To reflect the liquidity characteristics of insurance contracts, the risk-free yield curve is adjusted for illiquidity premium.

2.4.5.5 Estimation of Investment Component

The investment component is the amount that the Group must repay to policyholders under insurance contracts in all circumstances, regardless of the occurrence of insurance events. The Group classifies cash outflows such as maturity refunds, cancelation refunds, annuity payments, and cash flows related to insurance policy loans as investment components.

2.4.5.6 Estimation of Coverage Units

The quantity of insurance contract services provided is calculated based on the expected coverage period and maximum coverage amount (insurance amount), and for investment (related) services it is calculated based on the premium reserve (net of insurance policy loans). If insurance contracts within the group provide multiple services, weights are applied based on the total premium of each service. The quantity of services for each period and expected coverage period are calculated based on the expected persistency ratio applied in estimating the fulfillment cash flows, applied the present value effect.

3. Material Accounting Policies

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

3.1 Consolidation

3.1.1 Subsidiaries

Subsidiaries are companies that are controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Also, the existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls the investee. Subsidiaries are fully consolidated from the date when control is transferred to the Group and

de-consolidated

from the date when control is lost.

If a subsidiary uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that subsidiary’s financial statements in preparing the consolidated financial statements to ensure conformity with the Group’s accounting policies.

Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the

non-controlling

interests, if any. Total comprehensive income is attributed to the owners of the parent and to the

non-controlling

interests even if this results in the

non-controlling

interests having a deficit balance.

Transactions with

non-controlling

interests that do not result in loss of control are accounted for as equity transactions (i.e., transactions with owners in their capacity as owners). The difference between fair value of any

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3.1.1 Subsidiaries (cont’d)

consideration paid and carrying amount of the subsidiary’s net assets attributable to the additional interests acquired, is recorded in equity. Gains or losses on disposals to

non-controlling

interests are also recorded in equity.

When the Group loses control, any investment retained in the former subsidiary is recognized at its fair value at the date when control is lost, with the resulting difference recognized in profit or loss. This fair value will be the fair value on initial recognition of a financial asset in accordance with IFRS No.09 or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture. In addition, all amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for on the same basis as would be required if the Group had directly disposed of the related assets or liabilities. Therefore, amounts previously recognized in other comprehensive income are reclassified to profit or loss.

The Group accounts for each business combination by applying the acquisition method. The consideration transferred is measured at fair value, and identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are initially measured at acquisition-date fair values. For each business combination, the Group measures

non-controlling

interests in the acquiree that entitle their holders to a proportionate share of the acquiree’s net assets in the event of liquidation at either (a) fair value or (b) the proportionate share in the recognized amounts of the acquiree’s identifiable net assets. Acquisition-related costs are expensed in the periods in which the costs are incurred.

In a business combination achieved in stages, the Group shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate. In prior reporting periods, the Group may have recognized changes in the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognized in other comprehensive income shall be reclassified as profit or loss, or retained earnings, on the same basis as would be required if the Group had directly disposed of the previously held equity interest.

The Group applies the book-value method to account for business combinations of entities under common control. Identifiable assets acquired and liabilities assumed in a business combination are measured at their book value on the consolidated financial statements of the Group. In addition, the difference between (a) the sum of consolidated net book value of the assets and liabilities transferred and accumulated other comprehensive income and (b) the consideration paid, is recognized as capital surplus.

3.1.2 Associates and joint ventures

Associates are entities over which the Group has significant influence over the financial and operating policy decisions. Generally, if the Group holds 20% or more of the voting power of the investee, it is presumed that the Group has significant influence.

Joint ventures are investments in which the Group has joint control over economic activities pursuant to contractual arrangement. Decisions about strategic financial and operating policies require unanimous consent of the parties sharing control.

Investments in associates and joint ventures are initially recognized at cost and equity method is applied after initial recognition. The carrying amount is increased or decreased to recognize the Group’s share of the profit or loss of the investee and changes in the investee’s equity after the date of acquisition. Distributions received from an investee reduce the carrying amount of the investment. Unrealized gains and losses resulting from transactions between the Group and associates are eliminated to the extent of the Group’s share in associates. If unrealized losses are an indication of an impairment that requires recognition in the consolidated financial statements, those losses are recognized for the period.

If associates or joint ventures use 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 associates or joint ventures’

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3.1.2 Associates and joint ventures (cont’d)

accounting policies conform to those of the Group when the associates or joint ventures’ financial statements are used by the Group in applying the equity method.

If the Group’s share of losses of associates and joint ventures equals or exceeds its interest in the associates (including long-term interests that, in substance, form part of the Group’s net investment in the associates), the Group discontinues recognizing its share of further losses. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee.

The Group determines at each reporting period whether there is any objective evidence that the investments in the associates are impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associates and its carrying amount and recognizes the amount as

non-operating

expenses in the consolidated statement of comprehensive income.

3.1.3 Structured entity

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. When the Group decides whether it has power over the structured entities in which the Group has interests, it considers factors such as the purpose, the form, the substantive ability to direct the relevant activities of a structured entity, the nature of its relationship with a structured entity, and the amount of exposure to variable returns.

3.1.4 Funds management

The Group manages and operates trust assets, collective investment, and other funds on behalf of investors. These trusts and funds are not consolidated, except for trusts and funds over which the Group has control.

3.1.5 Intragroup transactions

Intragroup balances, income, expenses, and any unrealized gains and losses resulting from intragroup transactions are eliminated in full, in preparing the consolidated financial statements. If unrealized losses are an indication of an impairment that requires recognition in the consolidated financial statements, those losses are recognized for the period.

3.2 Foreign Currency

3.2.1 Foreign currency transactions

A foreign currency transaction is recorded, at initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate which is the spot exchange rate at the end of the reporting period.

Non-monetary

items that are measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was measured and

non-monetary

items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Except for the exchange differences for the net investment in a foreign operation and the financial liability designated as a hedging instrument of net investment, exchange differences arising on the settlement of monetary items or on translating monetary items are recognized in profit or loss. When a gain or loss on a

non-monetary

item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income, conversely, when a gain or loss on a

non-monetary

item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

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3.2.2 Foreign operations

The results and financial position of a foreign operation, whose functional currency differs from the Group’s presentation currency, are translated into the Group’s presentation currency based on the following procedures.

If the functional currency of a foreign operation is not the currency of a hyperinflationary economy, assets and liabilities for each statement of financial position presented (including comparatives) are translated at the closing rate at the end of the reporting period, income and expenses for each statement of comprehensive income presented (including comparatives) are translated using the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and are translated into the presentation currency at the closing rate.

On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss (as a reclassification adjustment) when the gain or loss on disposal is recognized. On the partial disposal of a subsidiary that includes a foreign operation, the Group

re-attributes

the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income to the

non-controlling

interests in that foreign operation. In any other partial disposal of a foreign operation, the Group reclassifies to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income.

3.2.3 Translation of the net investment in a foreign operation

A monetary item that is receivable from or payable to a foreign operation, for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the Group’s net investment in that foreign operation, then foreign currency difference arising from that monetary item is recognized in the other comprehensive income and shall be reclassified to profit or loss on disposal of the net investment.

3.3 Recognition and Measurement of Financial Instruments

3.3.1 Initial recognition

The Group recognizes a financial asset or a financial liability in its consolidated statement of financial position when the Group becomes party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned) is recognized and derecognized using trade date accounting.

For financial reporting purpose, the Group classifies (a) financial assets as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, or financial assets at amortized cost and (b) financial liabilities as financial liabilities at fair value through profit or loss, or other financial liabilities. These classifications are based on the business model for managing financial instruments and the contractual cash flow characteristics of the financial instrument at initial recognition.

At initial recognition, a financial asset or financial liability is measured at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. The fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value of a financial instrument on initial recognition is normally the transaction price (that is, the fair value of the consideration given or received) in an arm’s length transaction.

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3.3.2 Subsequent measurement

After initial recognition, financial instruments are measured at amortized cost or fair value based on classification at initial recognition.

3.3.2.1 Amortized cost

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

3.3.2.2 Fair value

The Group uses quoted price in an active market which is based on listed market price or dealer price quotations of financial instruments traded in an active market as best estimate of fair value. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

If there is no active market for a financial instrument, fair value is determined either by using a valuation technique or independent third-party valuation service. Valuation techniques include using recent arm’s length market transactions between knowledgeable and willing parties, if available, referencing the current fair value of another instrument that is substantially the same, discounted cash flow analysis, and option pricing models.

The Group uses valuation models that are commonly used by market participants and customized for the Group to determine fair values of common

over-the-counter

(“OTC”) derivatives such as options, interest rate swaps, and currency swaps which are based on the inputs observable in markets. However, for some complex financial instruments that require fair value measurement by valuation techniques based on certain assumptions because some or all inputs used in the model are not observable in the market, the Group uses internal valuation models developed from general valuation models or valuation results from independent external valuation institutions.

In addition, the fair value information recognized in the consolidated statement of financial position is classified into the following fair value hierarchy, reflecting the significance of the input variables used in the fair value measurement.


Level 1:		Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date

Level 2:		Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3:		Unobservable inputs for the asset or liability

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety.

If a fair value measurement uses observable inputs that require significant adjustment using unobservable inputs, that measurement is a Level 3 measurement.

If the valuation technique does not reflect all factors which market participants would consider in pricing the asset or liability, the fair value is adjusted to reflect those factors. Those factors include counterparty credit risk,

bid-ask

spread, liquidity risk, and others.

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3.3.2.2 Fair value (cont’d)

The Group uses valuation technique which maximizes the use of market inputs and minimizes the use of entity-specific inputs. It incorporates all factors that market participants would consider in pricing the asset or liability and is consistent with economic methodologies applied for pricing financial instruments. Periodically, the Group calibrates the valuation technique and tests its validity using prices of observable current market transactions of the same instrument or based on other relevant observable market data.

3.3.3 Derecognition

Derecognition is the removal of a previously recognized financial asset or financial liability from the consolidated statement of financial position. The derecognition criteria for financial assets and financial liabilities are as follows:

3.3.3.1 Derecognition of financial assets

A financial asset is derecognized when the contractual rights to the cash flows from the financial assets expire or the Group transfers substantially all the risks and rewards of ownership of the financial asset, or the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and the Group has not retained control. Therefore, if the Group does not transfer substantially all the risks and rewards of ownership of the financial asset, the Group continues to recognize the financial asset to the extent of its continuing involvement in the financial asset.

If the Group transfers the contractual rights to receive the cash flows of the financial asset but retains substantially all the risks and rewards of ownership of the financial asset, the Group continues to recognize the transferred asset in its entirety and recognize a financial liability for the consideration received.

The Group writes off a financial asset when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. In general, the Group considers

write-off

when it is determined that the debtor does not have sufficient funds or income to cover the principal and interest. The

write-off

decision is made in accordance with internal regulations. After the

write-off,

the Group can continue to collect the

written-off

loans according to the internal policy. Recovered amounts from financial assets previously

written-off

are recognized in profit or loss.

3.3.3.2 Derecognition of financial liabilities

A financial liability is derecognized from the consolidated statement of financial position when it is extinguished (i.e., the obligation specified in the contract is discharged, canceled or expires).

3.3.4 Offsetting

A financial asset and a financial liability are offset, and the net amount is presented in the consolidated statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on a future event and must be legally enforceable in the normal course of business, the event of default, and the event of insolvency or bankruptcy of the Group and all of the counterparties.

3.4 Cash and Due from Financial Institutions

Cash and due from financial institutions include cash on hand, foreign currency, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and due from financial institutions. Cash and due from financial institutions are measured at amortized cost.

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3.5

Non-derivative

Financial Assets

3.5.1 Financial assets at fair value through profit or loss

Financial assets are classified as financial assets at fair value through profit or loss unless they are classified as financial assets at amortized cost or at fair value through other comprehensive income.

The Group may designate certain financial assets upon initial recognition as at fair value through profit or loss when the designation eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

After initial recognition, a financial asset at fair value through profit or loss is measured at fair value and gains or losses arising from a change in fair value are recognized in profit or loss. Interest income using the effective interest method and dividend income from financial assets at fair value through profit or loss are also recognized in profit or loss.

3.5.2 Financial assets at fair value through other comprehensive income

The Group classifies below financial assets as financial assets at fair value through other comprehensive income:

•

Debt instruments that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding and;

•

Equity instruments that are not held for short-term trading but held for strategic investment, and designated as financial assets at fair value through other comprehensive income

After initial recognition, a financial asset at fair value through other comprehensive income is measured at fair value. Gains or losses arising from a change in fair value, other than dividend income, interest income calculated using the effective interest method and exchange differences arising on monetary items which are recognized directly in profit or loss, are recognized in other comprehensive income in equity.

When the financial assets at fair value through other comprehensive income is disposed of, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. However, cumulative gain or loss of equity instruments designated at fair value through other comprehensive income is reclassified to retained earnings not to profit or loss at disposal.

A financial asset at fair value through other comprehensive income denominated in foreign currency is translated at the closing rate. Exchange differences resulting from changes in amortized cost are recognized in profit or loss, and other changes are recognized in equity.

3.5.3 Financial assets at amortized cost

A financial asset, which is held within the business model whose objective is achieved by collecting contractual cash flows, and where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding, is classified as a financial asset at amortized cost. After initial recognition, a financial asset at amortized cost is measured at amortized cost using the effective interest method and interest income is calculated using the effective interest method.

3.6 Expected Credit Losses of Financial Assets (Debt Instruments)

The Group recognizes loss allowances for expected credit losses at the end of the reporting period for financial assets at amortized cost and fair value through other comprehensive income except for financial assets at fair value through profit or loss.

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3.6 Expected Credit Losses of Financial Assets (Debt Instruments) (cont’d)

Expected credit losses are estimated at present value of probability-weighted amount that is determined by evaluating a range of possible outcomes. The Group measures expected credit losses by reflecting all reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.

The approaches of measuring expected credit losses in accordance with IFRS are as follows:

•

General approach: for financial assets and unused loan commitments not subject to the below 2 approaches

•

Simplified approach: for trade receivables, contract assets, and lease receivables

•

Credit-impaired approach: for financial assets that are credit-impaired at the time of acquisition

Application of general approach is differentiated depending on whether credit risk has increased significantly after initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures loss allowances for that financial instrument at an amount equal to

12-month

expected credit losses, whereas if the credit risk on a financial instrument has increased significantly since initial recognition, the Group measures loss allowances for a financial instrument at an amount equal to the lifetime expected credit losses. Lifetime is the period until the contractual maturity date of financial instruments and means the expected life.

The Group assesses whether the credit risk has increased significantly using the following criteria, and if one or more of the following criteria are met, it is deemed as significant increase in credit risk. Criterion of more than 30 days past due is applied to all subsidiaries, and other criteria are applied selectively considering specific indicators of each subsidiary or additionally considering specific indicators of each subsidiary. If the contractual cash flows of a financial asset have been renegotiated or modified, the Group assesses whether the credit risk has increased significantly using the same following criteria.

•

More than 30 days past due

•

Decline in credit rating at the end of the reporting period by certain notches or more compared to the time of initial recognition

•

Subsequent managing ratings below certain level in the early warning system

•

Debt restructuring (except for impaired financial assets) and

Credit delinquency information of Korea Credit Information Services, etc.

Under simplified approach, the Group always measures loss allowances at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Group only recognizes the cumulative changes in lifetime expected credit losses since initial recognition as loss allowances at the end of the reporting period. In assessing credit impairment, the Group uses definition of default as in the new Basel Accord which rules calculation of Capital Adequacy Ratio.

The Group generally considers the loan to be credit-impaired if one or more of the following criteria are met:

•

90 days or more past due

•

Legal proceedings related to collection

•

A borrower registered on the credit management list of Korea Federation of Banks

•

A corporate borrower with the credit rating C and D

•

Refinancing and

•

Debt restructuring, etc.

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3.6.1 Forward-looking information

The Group uses forward-looking information, when determining whether credit risk has increased significantly and measuring expected credit losses.

The

Group assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses. The Group has derived a correlation between the time series data of

years or more and the key macroeconomic variables and calculates the expected credit losses by reflecting the results of the correlation on the risk component.

The correlation between the major macroeconomic variables and the credit risk are as follows:


Key macroeconomic variables		Correlation between the major macroeconomic variables and the credit risk
Benchmark interest rate		( + )
AA- rated corporate bond (3-year)		( + )
BBB- rated corporate bond (3-year)		( + )
Composite stock index		( - )
Rate of increase in housing transaction price index (Whole Country)		( - )
Rate of increase in housing transaction price index (Metropolitan Area)		( - )
WTI crude oil price		( + )
Growth rate of private consumption		( - )
Rate of increase or decrease in facilities investments		( - )
Rate of increase or decrease in construction investments		( - )
Unemployment rate		( + )
Household loan growth rate		( - )
CD distribution yield		( + )

Forward-looking information used in the calculation of expected credit losses is based on the macroeconomic forecasts utilized by management of the Group for its business plan considering reliable external agency’s forecasts and others. The forward-looking information is generated by KB Research with a comprehensive approach to capture the possibility of various economic forecast scenarios that are derived from the internal and external viewpoints of the macroeconomic situation. The Group determines the macroeconomic variables to be used in forecasting future conditions of the economy, considering the direction of the forecast scenario based on GDP growth and the significant relationship between macroeconomic variables and time series data. Some macroeconomic variables used are different than those used in the previous year.

As of December 31, 2025, the Group measures expected credit losses by applying a probability-weighted approach incorporating multiple macroeconomic scenarios, including optimistic, baseline, adverse, and crisis scenarios, taking into account potential credit risks arising from the uncertain domestic and global financial environment and the sharp economic downturn.

3.6.2 Measuring expected credit losses on financial assets at amortized cost

The expected credit losses of financial assets at amortized cost are measured as present value of the difference between the contractual cash flows to be received and the cash flows expected to be received. The Group estimates expected future cash flows for financial assets that are individually significant. The Group selects the individually significant financial assets by comprehensively considering quantitative and qualitative factors (such as debt restructuring or negative net assets, etc.) among financial assets with the credit risk has increased significantly or credit-impaired (individual assessment of impairment).

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

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3.6.2.1 Individual assessment of impairment

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

3.6.2.2 Collective assessment of impairment

Collective assessment of impairment losses is performed by using a methodology based on historical loss experience and reflecting forward-looking information. Such a process incorporates factors such as type of collateral, type of product, type of borrower, credit rating, size of portfolio, and recovery period and applies Probability of Default (“PD”) on a group of assets and Loss Given Default (“LGD”) by type of recovery method. Also, the Group applies certain assumptions to model expected credit losses assessment and to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce the gap between loss estimate and actual loss experience.

The lifetime expected credit losses are measured by applying the PD to the carrying amount calculated by deducting the expected principal repayment amount from the carrying amount as of the reporting date and the LGD adjusted to reflect changes in the carrying amount.

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

The Group measures expected credit losses on financial assets at fair value through other comprehensive income in a manner that is consistent with the requirements that are applicable to financial assets at amortized cost. However, loss allowances are recognized in other comprehensive income. Upon disposal or repayment of financial assets at fair value through other comprehensive income, the amount of loss allowances is reclassified from other comprehensive income to profit or loss.

3.7 Derivative Financial Instruments

The Group enters into numerous derivative financial instrument contracts such as currency forwards, interest rate swaps, currency swaps, and others for trading purposes or to manage its interest rate risk, currency risk, and others. The Group’s derivative financial instruments business focuses on addressing the needs of the Group’s corporate clients to hedge their risk exposure and to hedge the Group’s risk exposure that results from such client contracts. These derivative financial instruments are presented as derivative financial instruments in the consolidated financial statements irrespective of transaction purpose and subsequent measurement requirement.

The Group designates certain derivative financial instruments as hedging instruments to hedge the risk of changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge) and the risk of changes in cash flow (cash flow hedge). The Group designates certain derivative and

non-derivative

financial instruments as hedging instruments to hedge the currency risk of the net investment in a foreign operation (hedge of net investment).

At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge. This documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the inception date of hedging relationship and how the Group will assess the hedging instrument’s effectiveness in offsetting the changes in the hedged item’s fair value or cash flows attributable to the hedged risk.

Derivative financial instruments are initially recognized at fair value. After initial recognition, derivative financial instruments are measured at fair value, and changes therein are accounted for as described below.

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3.7.1 Derivative financial instruments held for trading

All derivative financial instruments held for trading are measured at fair value. Gains or losses arising from changes in fair value are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.2 Derivative financial instruments for fair value hedges

If derivative financial instruments are designated and qualify for fair value hedges, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in profit or loss as part of other operating income or expenses. If the hedged items are equity instruments for which the Group has elected to present changes in fair value in other comprehensive income, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in other comprehensive income.

Fair value hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. Once fair value hedge accounting is discontinued, the adjustment to the carrying amount of a hedged item is amortized to profit or loss by the maturity of the financial instrument using the effective interest method.

3.7.3 Derivative financial instruments for cash flow hedges

The effective portion of changes in fair value of derivative financial instruments that are designated and qualify for cash flow hedges is recognized in other comprehensive income, limited to the cumulative change in fair value (present value) of the hedged item (the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge. The ineffective portion is recognized in profit or loss as other operating income or expenses. The associated gains or losses that were previously recognized in other comprehensive income are reclassified from equity to profit or loss (other operating income or expenses) as a reclassification adjustment in the same period or periods during which the hedged forecast cash flows affect profit or loss. Cash flow hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. When the cash flow hedge accounting is discontinued, the cumulative gains or losses on the hedging instrument that have been recognized in other comprehensive income are reclassified to profit or loss over the period in which the forecast transaction occurs. If the forecast transaction is no longer expected to occur, the cumulative gains or losses that have been recognized in other comprehensive income are immediately reclassified to profit or loss.

3.7.4 Derivative and

non-derivative

financial instruments designated for net investments hedges

If derivative and

non-derivative

financial instruments are designated and qualify for the net investment hedge, the effective portion of changes in fair value of the hedging instrument is recognized in other comprehensive income and the ineffective portion is recognized in profit or loss as other operating income or expenses. The cumulative gains or losses on the hedging instrument relating to the effective portion of the hedge that have been accumulated in other comprehensive income will be reclassified from other comprehensive income to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation.

3.7.5 Embedded derivatives

An embedded derivative is separated from the host contract and accounted for as a derivative if, and only if, (a) the economic characteristics and risks of the embedded derivative are not closely related to those of the host contract, (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative and (c) the hybrid contract contains a host that is not a financial asset and is not designated as at fair value through profit or loss. Gains or losses arising from a change in fair value of an embedded derivative

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3.7.5 Embedded derivatives (cont’d)

separated from the host contract are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.6 Day one gains or losses

If the Group uses a valuation technique that incorporates unobservable inputs for the fair value of the OTC derivatives at initial recognition, there may be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. If the fair value is subsequently determined using observable inputs, the remaining deferred amount is recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss or other operating income or expenses.

3.8 Property and Equipment

3.8.1 Recognition and measurement

Property and equipment that recognition as an asset are measured at cost and subsequently carried at its cost less any accumulated depreciation and any accumulated impairment losses.

The cost of property and equipment includes any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent expenditures are capitalized only when they prolong the useful life or enhance values of the assets but the costs of the

day-to-day

servicing of the assets such as repair and maintenance costs are recognized in profit or loss as incurred. When part of an item of property and equipment has a useful life different from that of the entire asset, it is recognized as a separate asset.

3.8.2 Depreciation

Land is not depreciated, whereas other property and equipment are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The depreciable amount of an asset is determined after deducting its residual value.

Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation method and estimated useful life of property and equipment are as follows:


Property and equipment	Depreciation method	Estimated useful life
Buildings	Straight-line	20~40 years
Leasehold improvements	Declining-balance/ Straight-line	4~15 years
Equipment and vehicles	Declining-balance/ Straight-line	3~15 years

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial

year-end

and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

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3.9 Investment Properties

3.9.1 Recognition and measurement

Properties held to earn rentals or for capital appreciation or both are classified as investment properties. Investment properties are measured initially at their cost and subsequently the cost model is used.

3.9.2 Depreciation

Land is not depreciated, whereas other investment properties are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The depreciable amount of an asset is determined after deducting its residual value.

The depreciation method and estimated useful life of investment properties are as follows:


Investment properties	Depreciation method	Estimated useful life
Buildings	Straight-line	20~40 years

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial

year-end

and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

3.10 Intangible Assets

Intangible assets are measured initially at cost and subsequently carried at their cost less any accumulated amortization and any accumulated impairment losses.

Intangible assets, except for goodwill and membership rights, are amortized using the straight-line or declining-balance method with no residual value over their estimated useful life since the assets are available for use.


Intangible assets	Amortization method	Estimated useful life
Industrial property rights	Straight-line	3 ~ 19 years
Software	Straight-line	3 ~ 5 years
Others	Straight-line / Declining-balance	1 ~ 13 years

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial

year-end.

Where an intangible asset is not being amortized because its useful life is indefinite, the Group carries out a review in each accounting period to confirm whether events and circumstances still support an indefinite useful life assessment. If they do not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate.

3.10.1 Goodwill

3.10.1.1 Recognition and measurement

Goodwill related to business combinations before January 1, 2010, is stated at its carrying amount, which was recognized under the Group’s previous accounting policy, prior to the transition to IFRS.

Goodwill acquired from business combinations after January 1, 2010, is initially measured as the excess of the consideration transferred over the fair value of net identifiable assets acquired and liabilities assumed. If the fair value of net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, the difference is recognized in profit or loss.

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3.10.1.1 Recognition and measurement (cont’d)

For each business combination, the Group decides at the acquisition date whether the

non-controlling

interests in the acquiree are initially measured at fair value or at the

non-controlling

interests’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets.

Acquisition-related costs incurred to effect a business combination are charged to expenses in the periods in which the costs are incurred and the services are received, except for the costs to issue debt or equity securities.

3.10.1.2 Additional acquisitions of

non-controlling

interests

Additional acquisitions of

non-controlling

interests are accounted for as equity transactions. Therefore, no additional goodwill is recognized.

3.10.1.3 Subsequent measurement

Goodwill is not amortized and is stated at cost less accumulated impairment losses. However, goodwill that forms part of the carrying amount of an investment in associates is not separately recognized and an impairment loss recognized is not allocated to any asset, including goodwill, which forms part of the carrying amount of the investment in the associates.

3.10.2 Subsequent expenditures

Subsequent expenditures are capitalized only when they enhance values of the assets. Internally generated intangible assets, such as goodwill and trade name, are not recognized as assets but expensed as incurred.

3.11 Impairment of

Non-financial

Assets

The Group assesses at the end of each reporting period whether there is any indication that a

non-financial

asset, except for (a) deferred income tax assets, (b) assets arising from employee benefits and

assets (or group of assets to be sold) classified as held for sale, may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. However, irrespective of whether there is any indication of impairment, the Group tests (a) goodwill acquired in a business combination, (b) intangible assets with an indefinite useful life and (c) intangible assets not yet available for use for impairment annually by comparing their carrying amount with their recoverable amount.

The recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit that are discounted by a

pre-tax

rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss and recognized immediately in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units that is expected to benefit from the synergies of the combination. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit.

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3.11 Impairment of

Non-financial

Assets (cont’d)

An impairment loss recognized for goodwill is not reversed in a subsequent period. The Group assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset, other than goodwill, may no longer exist or may have decreased, and an impairment loss recognized in prior periods for an asset other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss cannot exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

3.12

Non-current

Assets Held for Sale

non-current

asset or disposal group is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be highly probable. A

non-current

asset (or disposal group) classified as held for sale is measured at the lower of (a) its carrying amount measured in accordance with the applicable IFRS, immediately before the initial classification of the asset (or disposal group) as held for sale and (b) fair value less costs to sell.

non-current

asset while it is classified as held for sale or while it is part of a disposal group classified as held for sale is not depreciated (or amortized).

Impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. Gain is recognized for any subsequent increase in fair value less costs to sell of an asset, but not in excess of the cumulative impairment loss that has been recognized.

3.13 Financial Liabilities

The Group classifies financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liability.

3.13.1 Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading or designated as such at initial recognition. After initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. At initial recognition, transaction costs that are directly attributable to the acquisition are recognized in profit or loss as incurred.

In relation to securities lending or borrowing transactions, when the Group borrows securities from the Korea Securities Depository and others, these transactions are managed as

off-balance

sheet items. The borrowed securities are treated as financial liabilities at fair value through profit or loss when they are sold. Changes in fair value at the end of the reporting period and difference between carrying amount at redemption and purchased amount are recognized in profit or loss.

In addition, the change in fair value of the financial liability designated at fair value through profit or loss that is attributable to change in the credit risk of that liability, the Group presents this change in other comprehensive income, and does not recycle this to profit or loss in accordance with IFRS No.9. However, if this treatment creates or enlarges an accounting mismatch, the Group recognizes this change in profit or loss.

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3.13.2 Other financial liabilities

Non-derivative

financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities. Other financial liabilities include deposits, borrowings, debentures, and others. At initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. After initial recognition, other financial liabilities are measured at amortized cost, and its interest expense is recognized, using the effective interest method.

When an asset is sold under repurchase agreement, the Group continues to recognize the asset with the amount sold being accounted for as borrowings. The Group derecognizes a financial liability from the consolidated statement of financial position only when it is extinguished (i.e., when the obligation specified in the contract is discharged, canceled or expires).

3.14 Insurance Contracts

KB Insurance Co., Ltd. and KB Life Insurance Co., Ltd. the subsidiaries of the Group, issue insurance contracts. The Group accounts for these contracts by applying IFRS No.17.

3.14.1 Definition and classification of insurance contracts

Insurance contract is defined as a contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. This assessment is carried out for each contract individually at the date of inception. The Group determined that the insurance risk related to the contract is significant if the issuer has to pay significant additional benefits in any scenario that has commercial substance, even if the insured event is extremely unlikely, or even if the expected present value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance contract.

The Group issues insurance contracts that contain participation features, allowing policyholders to participate in the investment returns of the Group, in addition to being compensated for insurance risks. Contracts with participation features are classified as insurance contracts with direct participation features if they meet the following criteria. At the beginning of an insurance contract, the Group evaluates whether the contract meets the following criteria.

•

The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items

•

The Group expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items

•

the Group expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items

Furthermore, the Group issues investment contracts with discretionary participation features, which are associated with groups of assets identical to those of insurance contracts and share similar economic characteristics with insurance contracts.

3.14.2 Level of aggregation

The Group identifies portfolios by aggregating insurance contracts subject to similar risks and managed together. Each portfolio is segmented into groups of insurance contracts applying the recognition and measurement requirements of IFRS No.17. The Group distinguishes insurance contracts based on their issuance date at initial recognition. A cohort consists of contracts issued within a

12-month

period and is further segmented into three groups based on the possibility of becoming onerous.

•

a group of contracts that are onerous at initial recognition

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3.14.2 Level of aggregation (cont’d)

•

a group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently

•

a group of the remaining contracts in the portfolio

The possibility of insurance contracts, at the lowest level of group of contracts, becoming onerous is determined based on the expected cash flows (fulfillment cash flow decided based on probability weighting) at initial recognition. The Group does not reassess the composition of the groups decided at the initial recognition date subsequently.

3.14.3 Recognition

The group recognizes a group of insurance contracts it issues from the earliest of the following:

•

the beginning of the coverage period of the group of contracts

•

the date when the first payment from a policyholder in the group becomes due

•

for a group of onerous contracts, when the group becomes onerous.

The group delays the recognition of a group of reinsurance contracts held that provide proportionate coverage until the date that any underlying insurance contract is initially recognized, if that date is later than the beginning of the coverage period of the group of reinsurance contracts held.

The group recognizes investment contracts with discretionary participation features at the date the Group becomes a party to the contract.

3.14.4 Contract boundary

Measurement of group of contracts includes all future cash flows within the contract boundaries. The Group decides that cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the entity can compel the policyholder to pay the premiums or in which the entity has a substantive obligation to provide the policyholder with insurance contract services.

A substantive obligation to provide insurance contract services ends when:

•

The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects those risks

•

The Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contains the contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio; and the pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date.

The Group evaluates contract boundaries at initial recognition and each subsequent reporting date to reflect changes in circumstances affecting substantive rights and obligations.

3.14.5 Measurement: Insurance contracts not applying the premium allocation approach

3.14.5.1 Measurement on initial recognition

The group measures group of contracts as the sum of the fulfillment cash flows and the contractual service margin at the initial measurement. Fulfillment cash flows comprise estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows, and a risk adjustment for

non-financial

risk.

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3.14.5.1 Measurement on initial recognition (cont’d)

Estimates of future cash flows is calculated by the probability-weighted average of all possible outcomes using all reasonable and supportable information available without undue cost or effort, considering both market and

non-market

variables, for cash flows within the contract boundary. The Group updates the estimates using all new information available, including information about past trends and evidence.

The risk adjustment for

non-financial

risk represents a liability that reflects the compensation that the insurer requires for bearing the uncertainty about the amounts and timing of cash flows arising from

non-financial

risk.

Non-financial

risks that are the subject of risk adjustment include insurance risk and other

non-financial

risks (such as lapse risk and expense risk). The Group calculates the risk adjustment for

non-financial

risk using techniques such as the confidence level method and the cost of capital method. The Group calculates the risk adjustment for

non-financial

risk at the level of the company, and after considering diversification effects, allocates it to individual groups of insurance contracts.

Contractual service margin represents the unearned profit the entity will recognize as it provides insurance contract services in the future. The group measures the contractual service margin on initial recognition of a group of insurance contracts at an amount that results in no income or expenses if the fulfillment cash flows at the initial recognition are net inflows. On the other hand, if the fulfillment cash flows are net outflow at the initial recognition, the Group classifies the group of contracts as an onerous group, recognizes the expected net outflow as an expense and manages loss component for subsequent measurement.

3.14.5.2 Subsequent measurement of the general measurement model

At the end of each reporting period, the carrying amount of group of contracts is the sum of estimated liability for incurred claims and liability for remaining coverage. Liability for remaining coverage comprises contractual service margin and expected fulfillment cash flows related to future services allocated to the group of contracts at the end of the reporting period. Liability for incurred claims comprises unpaid claims and insurance expenses, including reported but not yet paid claims, incurred but not reported claims, and dividends payable according to supervisory regulations.

The Group updates the fulfillment cash flows of both liability for incurred claims and liability for remaining coverage at each reporting date to reflect current estimates of the amounts, timing, and uncertainty of future cash flows, considering not only discount rates and other financial variables but also

non-financial

risk.

Experience adjustments is the differences between the following:

•

The estimated expected cash flows at the beginning of reporting period and the actual cash flows received during the reporting period (including premiums received, cash flows related to insurance acquisition, and premium taxes paid)

•

The estimated expected cash flows at the beginning of reporting period and the actual insurance service expenses incurred during the reporting period (excluding insurance acquisition costs)

Experience adjustments related to current or past services are recognized in profit or loss. For incurred claims (including those that have been incurred but not reported) and other incurred insurance service expenses, experience adjustments are always related to current or past services and are included as part of insurance service expenses in profit or loss. Changes in fulfillment cash flows related to future services are included in liability for remaining coverage by adjusting contractual service margin.

For insurance contracts without direct participation features, the carrying amount of the contractual service margin of a group of contracts at the end of the reporting period equals the carrying amount at the start of the reporting period adjusted for:

•

the effect of any new contracts added to the group

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3.14.5.2 Subsequent measurement of the general measurement model (cont’d)

•

interest accreted on the carrying amount of the contractual service margin during the reporting period, measured at the discount rates determined at initial recognition

•

the changes in fulfillment cash flows relating to future service, except to the extent that:

(i)

such increases in the fulfillment cash flows exceed the carrying amount of the contractual service margin, giving rise to a loss

(ii)

such decreases in the fulfillment cash flows are allocated to the loss component of the liability for remaining coverage

•

the effect of any currency exchange differences on the contractual service margin

•

the amount recognized as insurance revenue because of the transfer of insurance contract services in the period, determined by the allocation of the contractual service margin remaining at the end of the reporting period.

When fulfillment cash flows related to future services increase additionally, the cash flows result in an increase in the loss component of the group of contracts, and the increased loss component is recognized in profit or loss when the cash flows occur. Subsequently, decreases in fulfillment cash flows related to future services do not adjust contractual service margin until the loss component is fully recovered through profit or loss.

3.14.5.3 Subsequent Measurement of the Variable Fee Approach

The Group issues insurance contracts with direct participation features that provide significant investment-related services. Except for the following, the Group applies the same accounting policy for measuring insurance contracts under the variable fee approach as for measuring insurance contracts under the general measurement model.

For insurance contracts with direct participation features, the carrying amount of the contractual service margin of a group of contracts at the end of the reporting period equals the carrying amount at the start of the reporting period adjusted for the amounts specified below:

•

the effect of any new contracts added to the group

•

the change in the amount of the Group’s share of the fair value of the underlying items except to the extent that

(i)

The amount of contractual service margin recognized in profit or loss due to the offsetting effect of risk mitigation instruments

(ii)

the decrease in the amount of the Group’s share of the fair value of the underlying items exceeding the carrying amount of the contractual service margin, giving rise to a loss

(iii)

the increase in the amount of the Group’s share of the fair value of the underlying items that causes reversal of loss component of an onerous group

•

the changes in fulfillment cash flows relating to future service, except to the extent that:

(i)

The amount of contractual service margin recognized in profit or loss due to the offsetting effect of risk mitigation instruments

(ii)

The increases in the fulfillment cash flows that exceeds the carrying amount of the contractual service margin, giving rise to a loss

(iii)

The decreases in the fulfillment cash flows that causes reversal of loss component of an onerous group

•

the effect of any currency exchange differences arising on the contractual service margin

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3.14.5.3 Subsequent Measurement of the Variable Fee Approach (cont’d)

•

All adjustments to contractual service margins are measured, considering the present value of currency, which is currently measured, taking into account all financial variables that affect the fair value gains arising from the underlying items. When applying the variable fee approach, the changes in the fulfillment cash flows adjusting the contractual service margin is composed of changes in the Group’s share of the fair value of the underlying items and the changes in the fulfillment cash flows that do not vary based on returns on the underlying items. the changes in the fulfillment cash flows that do not vary based on returns on the underlying items are as follows:

•

changes in the effect of currency risk and the effect of financial risk not arising from underlying items, such as the impact of financial guarantees

•

experience adjustments arising from premiums received during the period related to future services

•

changes in estimated future cash flows of liability for remaining coverage

•

differences in the payment timing of investment components

•

changes in risk adjustment for

non-financial

risk related to future services

3.14.5.4 Reinsurance contract

The Group applies the same accounting policy for measuring reinsurance contracts as for measuring insurance contracts, except for the following.

non-financial

risks to reflect the risks transferred to the reinsurer. Reinsurance contracts are not classified as onerous groups and do not recognize in profit or loss the expected outflows at the initial recognition, even if the fulfillment cash flows at initial recognition are outflows, considering the nature of reinsurance. However, if the net cost of purchasing reinsurance coverage is related to events that have occurred before the reinsurance contract is purchased, such costs are recognized as expenses immediately.

3.14.5.5 Insurance revenue

The Group recognizes insurance revenue as the amount the Group expects to be entitled in exchange for provision of services arising from group of insurance contracts. Total insurance revenue for group of contracts is the amount received in premiums for the contracts, adjusted for financial effects and excluding all investment elements.

The amount of contractual service margin recognized as insurance revenue during the reporting period is determined by allocating the unamortized contractual service margin at the end of the reporting period for each unit of coverage provided during the reporting period and expected to be provided in the future. The number of coverage units in a group of contracts is the quantity of insurance contract services provided from insurance contracts within the group, and is determined based on the number of benefits provided and the expected duration of coverage under each contract.

Insurance acquisition cash flows are systematically allocated over each reporting period, recognized in equal amounts of insurance revenue and insurance expenses.

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3.14.5.5 Insurance revenue (cont’d)

Loss component is allocated systematically, and the total amount allocated to the loss component becomes zero by the end of the coverage period of group of contracts. The portion of the allocated loss component for the reporting period is excluded from recognition in both insurance revenue and insurance expenses.

3.14.5.6 Insurance finance income or expenses

Insurance finance income consists of changes in the carrying amount of the groups of insurance contracts and reinsurance contracts arising from the effect of the time value of money and financial risk. The Group decides whether to disaggregate insurance finance income or expenses for the period between profit or loss and other comprehensive income for each portfolio. Systematic allocation involves allocating the expected total insurance finance income or expenses over the duration of the group of contracts, and recognizing the portion attributed to the reporting period in profit or loss and the remaining portion in other comprehensive income.

For insurance contracts where changes in financial risk related assumptions significantly impact the amounts paid to policyholders, the Group uses a single discount rate to allocate the modified expected insurance finance income or expenses for the remaining coverage period of the group of contracts. Otherwise, the Group calculates insurance finance income or expenses using the discount rate determined at the date of initial recognition.

Insurance finance income or expenses arising from contractual service margin is systematically allocated using the discount rate determined at the date of initial recognition.

When the Group transfers insurance contracts to a third party or derecognize them due to changes in insurance contract terms, the accumulated other comprehensive income related to those insurance contracts is reclassified to profit or loss.

3.14.5.7 Reinsurance revenue and expenses

The Group recognizes separately the amounts recovered from reinsurers and the allocation of reinsurance premiums paid in reinsurance contracts. Changes in the carrying amount of reinsurance assets for remaining coverage resulting from the reinsurance services received are recognized as reinsurance expenses, while amounts recovered from reinsurers are recognized as reinsurance income.

3.14.6 Premium allocation approach

3.14.6.1 Underlying insurance

For general insurance and automobile insurance, if the coverage period of each contract within the group of contracts (including insurance contract services within the contract boundary) is less than one year or if the premium allocation approach is reasonably expected to measure the liability for remaining coverage for the group without significant differences from the application of the general model requirements, the premium allocation approach is applied to simplify the measurement of the group of insurance contracts.

The carrying amount of the liability for remaining coverage at the time of initial recognition of each group of contract is calculated by deducting the insurance acquisition cash flows allocated to the group of insurance at the acquisition date from the premium receipts at the time of initial recognition, and adding or subtracting the amount resulting from removing previously recognized assets or liabilities for cash flows related to the group of contract at the time of initial recognition.

Subsequently, the carrying amount of the liability for remaining coverage is calculated by adding the received premiums and the amortization of the insurance acquisition cash flows, and deducting the insurance acquisition cash flows and the amount recognized as insurance revenue for services provided. However, if the

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3.14.6.1 Underlying insurance (cont’d)

insurance acquisition cash flows recognized as expenses when it incurs those costs because the coverage period of each contract in the group at initial recognition is no more than one year, the insurance acquisition cash flow is not considered for calculating the liability for remaining coverage.

If at any time during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, the difference between the carrying amount of the liability for remaining coverage and the current estimate of the fulfillment cash flows related is calculated, added to the liability for remaining coverage, and recognized as a loss in profit or loss.

The Group determines that the liability for remaining coverage subject to the insurance premium allocation approach do not have significant financial elements, and therefore does not adjust the carrying amount of the liability for remaining coverage for reflecting the effect of the time value of money and financial risk.

3.14.6.2 Reinsurance

The Group applies the same accounting policy for measuring reinsurance contracts applying the premium allocation approach (general reinsurance, automobile reinsurance, and long-term

non-proportional

reinsurance) as for measuring insurance contracts with the exception of the following:

The Group includes all effects of risks related to the reinsurer’s default (including effects from security and losses due to disputes) when measuring the reinsurance contract group. The Group remeasures the effects of the reinsurer’s default risk at the end of each reporting period and recognizes the changes in the effects of default risk in profit or loss. Reinsurance contracts are not classified as onerous groups and do not recognize in profit or loss the expected outflows at the initial recognition, even if the fulfillment cash flows at initial recognition are outflows, considering the nature of reinsurance. However, if the net cost of purchasing reinsurance coverage is related to events that have occurred before the reinsurance contract is purchased, such costs are recognized as expenses immediately.

3.14.7 Modification and derecognition

The Group derecognizes an insurance contract when the insurance contract is extinguished because of reasons such as obligation specified in the insurance contract having been expired, discharged or canceled. Additionally, if the conditions of the contract have changed to such an extent that the accounting treatment of the contract would have been significantly different had the new conditions existed from the beginning, the Group derecognizes the existing contract and recognizes it as a new contract. If the change in contract conditions is not significant, the Group accounts for it as a change in the estimate of fulfillment cash flows.

3.15 Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Inevitable risks and uncertainties surrounding related events and circumstances are considered in measuring the best estimate of the provisions, and where the effect of the time value of money is material, the amount of provisions is the present value of the expenditures expected to be required to settle the obligation.

Provisions for confirmed and unconfirmed acceptances and guarantees, and unused credit lines of consumer and corporate loans are recognized using a valuation model that applies the credit conversion factor, PD, and LGD.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provisions are reversed.

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3.15 Provisions (cont’d)

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfill it. If the Group has a contract that is onerous, the present obligation under the contract is recognized and measured as provisions.

3.16 Financial Guarantee Contracts

Financial guarantee contracts require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the original or modified terms of a debt instrument.

Financial guarantee contracts are initially recognized at fair value and classified as other liabilities and are amortized over the contractual term. After initial recognition, financial guarantee contracts are measured at the higher of:

•

The amount determined in accordance with IFRS No.09

Financial Instruments

and

•

The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with IFRS No.15

Revenue from Contracts with Customers.

3.17 Equity Instrument Issued by the Group

An equity instrument is any contract or agreement that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

3.17.1 Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or the exercise of stock option are deducted from the equity, net of any tax effects.

3.17.2 Hybrid securities

The financial instruments can be classified as either financial liabilities or equity in accordance with the terms of the contract. The Group classifies hybrid securities as an equity if the Group has the unconditional right to avoid any contractual obligation to deliver cash or another financial asset in relation to the financial instruments. However, hybrid securities issued by subsidiaries are classified as

non-controlling

interests, dividends are recognized in the consolidated statement of comprehensive income as profit attributable to

non-controlling

interests.

3.17.3 Treasury shares

If the Group acquires its own equity instruments, these are accounted for as treasury shares and are deducted directly from equity. No gains or losses are recognized in profit or loss on the purchase, sale, issue or retirement of own equity instruments. If an entity within the Group acquires and retains treasury shares, the consideration paid or received is directly recognized in equity.

3.17.4 Compound financial instruments

A compound financial instrument is classified as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. The liability component of the compound financial instrument is measured at fair value of the similar liability without conversion option at initial recognition and subsequently measured at amortized cost using effective interest method until it is

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3.17.4 Compound financial instruments (cont’d)

extinguished by conversion or matured. Equity component is initially measured at fair value of compound financial instrument in its entirety less fair value of liability component net of tax effect, and it is not remeasured subsequently.

3.18 Revenue Recognition

The Group recognizes revenues in accordance with the following steps determined in accordance with IFRS No.15

Revenue from Contracts with Customers

•

Step 1: Identify the contract with a customer.

•

Step 2: Identify the performance obligations in the contract.

•

Step 3: Determine the transaction price.

•

Step 4: Allocate the transaction price to the performance obligations in the contract.

•

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

3.18.1 Interest income and expense

Interest income and expense on debt securities at fair value through profit or loss (excluding beneficiary certificates, equity investments, and other debt instruments), loans, financial instruments at amortized cost, and debt securities at fair value through other comprehensive income are recognized in the consolidated statement of comprehensive income using the effective interest method in accordance with IFRS No.09

Financial Instruments

. The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument or, where appropriate, a shorter period, to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates expected cash flows by considering all contractual terms of the financial instrument but does not consider expected credit losses. The calculation includes all fees and points paid (main components of effective interest rate only) or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. In those rare cases when it is not possible to reliably estimate the cash flows and the expected life of a financial instrument, the Group uses the contractual cash flows over the full contractual term of the financial instrument.

Interest income on impaired financial assets is recognized using the interest rate used to discount the expected cash flows for the purpose of measuring the impairment loss.

Interest income on debt securities at fair value through profit or loss is also classified as interest income in the consolidated statement of comprehensive income.

3.18.2 Fee and commission income

The Group recognizes financial service fees in accordance with the purpose of charging the fees and the accounting standards of the financial instrument related to the fees earned.

3.18.2.1 Fees that are an integral part of the effective interest of a financial instrument

Such fees are generally treated as adjustments of effective interest rate. Such fees may include compensation for activities such as evaluating the borrower’s financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating the terms of the instrument, preparing and processing documents, and closing the transaction and origination fees received on issuing financial liabilities at amortized cost. However, fees relating to the creation or acquisition of a financial instrument at fair value through profit or loss are recognized as revenue immediately.

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3.18.2.2 Fees related to performance obligations satisfied over time

If the control of a good or service is transferred over time, the Group recognizes revenue related to performance obligations over the period of performance obligations. Fees charged in return for the services for a certain period of time, such as asset management fees, consignment business fees, etc. are recognized over the period of performance obligations.

3.18.2.3 Fees related to performance obligations satisfied at a point in time

Fees earned at a point in time are recognized as revenue when a customer obtains controls of a promised good or service and the Group satisfies a performance obligation.

Commission on negotiation or participation in negotiation for the third party such as trading stocks or other securities, arranging merger and acquisition of business, is recognized as revenue when the transaction has been completed.

If the Group arranges a syndicated loan but does not participate in the syndicated loan or participates in the syndicated loan with the same effective profit as other participants, a syndication arrangement fee is recognized as revenue at the completion of the syndication service.

3.18.3 Net gains or losses on financial instruments at fair value through profit or loss

Net gains or losses on financial instruments at fair value through profit or loss (including changes in fair value, dividends, and gains or losses from foreign currency translation) include gains or losses on financial instruments as follows:

•

Gains or losses relating to financial instruments at fair value through profit or loss (excluding interest income using the effective interest rate method)

•

Gains or losses relating to derivative financial instruments for trading (including derivative financial instruments for hedging purpose but do not qualify for hedge accounting)

3.18.4 Dividend income

Dividend income is recognized in profit or loss when the right to receive payment is established. Dividend income is recognized as net gains or losses on financial instruments at fair value through profit or loss or other operating income depending on the classification of equity securities.

3.19 Employee Compensation and Benefits

3.19.1 Post-employment benefits

3.19.1.1 Defined contribution plans

When an employee has rendered service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as post-employment benefits for the period.

3.19.1.2 Defined benefit plans

All post-employment benefits, other than defined contribution plans, are classified as defined benefit plans. The amount recognized as a net defined benefit liability is the present value of the defined benefit obligation less the fair value of plan assets at the end of the reporting period.

The present value of the defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount post-employment benefit obligations is determined by

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3.19.1.2 Defined benefit plans (cont’d)

reference to market yields at the end of the reporting period on high quality corporate bonds. The currency and term of the corporate bonds are consistent with the currency and estimated term of the post-employment benefit obligations. Actuarial gains and losses resulted from changes in actuarial assumptions and experience adjustments are recognized in other comprehensive income.

When the present value of the defined benefit obligation minus the fair value of plan assets results in an asset, it is recognized to the extent of the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting from the introduction or changes to a defined benefit plan. Such past service cost is immediately recognized as an expense for the period.

3.19.2 Short-term employee benefits

Short-term employee benefits are employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense for the period.

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

3.19.3 Share-based payment

The Group provides its executives and employees with stock grants, mileage stock, and long-term share-based payments programs. When stock grants are exercised, the Group can either select to distribute newly issued shares or treasury shares or compensate in cash based on the share price. When mileage stock and long-term share-based payments are exercised, the Group pays the amount equivalent to share price of KB Financial Group Inc. in cash.

For a share-based payment transaction in which the terms of the arrangement provide the Group with the choice of whether to settle in cash or by issuing equity instruments, the Group accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions because the Group determines that it has a present obligation to settle in cash based on a past practice and a stated policy of settling in cash. Therefore, the Group measures the liability incurred as consideration for the service received at fair value and recognizes related expense and accrued expense over the vesting periods. For mileage stock and long-term share-based payments program, the Group accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions, which are recognized as expense and accrued expenses at the time of vesting.

Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

3.19.4 Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or an employee’s decision to accept an offer of benefits in exchange for the termination of

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3.19.4 Termination benefits (cont’d)

employment. The Group recognizes a liability and expense for termination benefits at the earlier of the following dates; when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring that is within the scope of IAS No.37 and involves the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, then the termination benefits are discounted to present value.

3.20 Income Tax Expense

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

3.20.1 Current income tax

Current income tax is the amount of income tax payable (recoverable) in respect of the taxable profit (tax loss) for a period. A difference between the taxable profit and accounting profit may arise when income or expense is included in accounting profit in one period but is included in taxable profit in a different period. Differences may also arise if there is revenue that is exempt from taxation, or expense that is not deductible in determining taxable profit (loss). Current income tax liabilities for the current and prior periods are measured using the tax rates that have been enacted or substantively enacted by the end of the reporting period.

The Group offsets current income tax assets and current income tax liabilities if, and only if, the Group (a) has a legally enforceable right to set off the recognized amounts and (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

3.20.2 Deferred income tax

Deferred income tax is recognized, using the asset-liability method, on temporary differences arising between the

tax-based

amount of assets and liabilities and their carrying amount in the financial statements. Deferred income tax liabilities are recognized for all taxable temporary differences and deferred income tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax assets and liabilities are not recognized if they arise from the initial recognition of an asset or liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting nor taxable profit or loss.

The Group recognizes a deferred income tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period. The Group reduces the carrying amount of a deferred income tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax

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3.20.2 Deferred income tax (cont’d)

liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Group offsets deferred income tax assets and deferred income tax liabilities if, and only if the Group has a legally enforceable right to set off current income tax assets against current income tax liabilities and the deferred income tax assets and the deferred income tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current income tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred income tax liabilities or assets are expected to be settled or recovered.

3.20.3 Uncertain tax positions

Uncertain tax positions arise from tax treatments applied by the Group which may be challenged by the tax authorities due to the complexity of the transaction or different interpretation of the tax laws, such as a claim for rectification, a claim for a refund related to additional tax or a tax investigation by the tax authorities. The Group recognizes its uncertain tax positions in the consolidated financial statements in accordance with IAS No.12 and IFRIC No.23. The income tax asset is recognized if a tax refund is probable for taxes levied by the tax authority, and the amount to be paid as a result of the tax investigation and others is recognized as the current tax payable. However, penalty tax and additional refund on tax are regarded as penalty or interest and are accounted for in accordance with IAS No.37.

3.20.4 Global minimum tax

The Group is subject to the global minimum tax under Pillar 2 legislation and has applied the exemption from recognizing and disclosing related deferred tax.

3.21 Earnings per Share

The Group calculates basic earnings per share amounts and diluted earnings per share amounts for profit or loss attributable to ordinary equity holders of the Parent Company and presents them in the consolidated statement of comprehensive income. Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by adjusting the profit or loss attributable to ordinary equity holders of the Parent Company and weighted average number of shares outstanding, taking into account all potential dilution effects, such as exchangeable bonds and share-based payments given to employees.

3.22 Lease

The Group as a lessor recognizes lease payments from operating leases as income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the consolidated statement of financial position based on their nature.

A lessee is required to recognize a

right-of-use

asset (lease assets) representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Assets and liabilities arising from a lease are initially measured at the present value.

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3.22 Lease (cont’d)

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

•

Fixed payments (including

in-substance

fixed payments), less any lease incentives receivable

•

Variable lease payments that depend on an index or a rate

•

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

•

The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

•

Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

The lease payments are discounted using the interest rate implicit in the lease if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, which is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the

right-of-use

asset in a similar economic environment.

Right-of-use

assets are measured at cost comprising the following:

•

The amount of the initial measurement of the lease liability

•

Any lease payments made at or before the commencement date, less any lease incentives received

•

Any initial direct costs incurred by the lessee, and

•

An estimate of restoration costs

However, the Group can elect not to apply the requirements of IFRS No.16 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under USD 5,000).

The

right-of-use

asset is depreciated from the commencement date to the earlier of the end of the useful life of the

right-of-use

asset or the end of the lease term.

For sale and leaseback transactions, the Group applies the requirements of IFRS No.15

Revenue from Contracts with

Customers

, to determine whether the transfer of an asset is accounted for as a sale of that asset.

3.23 Operating Segments

The Group identifies its operating segments based on internal reports which are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

Segment information includes items which are directly attributable and can be allocated to the segment on a reasonable basis.

3.24 United States dollar amounts

The Group operates primarily in Korea and its official accounting records are maintained in Korean won. The U.S. dollar amounts are provided herein as supplementary information solely for the convenience of the reader. Korean won amounts are expressed in U.S. dollars at the rate of ￦

1,444.6 to U.S. $1.00, the U.S. Federal Reserve Bank of New York buying exchange rate in effect at noon, December 31, 202

. Such convenience translation into US dollars should not be construed as representations that the Korean won amounts have been, co

uld h

ave been, or could in the future be, converted at this or any other rate of exchange.

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4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

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

This note regarding financial risk management provides information about the risks that the Group is exposed to and about its objectives, policies, risk assessment and management procedures, and capital management. Additional quantitative information is disclosed throughout the consolidated financial statements.

The Group’s risk management system focuses on efficiently supporting long-term strategy and management decisions of the Group by increasing risk transparency, preventing risk transfer between subsidiaries and preemptive response to rapidly changing financial environments. Credit risk, market risk, operational risk, interest rate risk, insurance risk, liquidity risk, credit concentration risk, strategy risk, reputation risk and foreign exchange settlement risk are recognized as the Group’s significant risks and measured and managed according to regulatory capital and internal capital standards.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

The Risk Management Committee, as the ultimate decision-making body, deals with risk-related issues, such as establishing risk management strategies in accordance with the strategic direction determined by the board of directors, determining the affordable level of risk appetite, reviewing the level of risk and the status of risk management activities, approving the application of risk management systems, methodologies, and major improvements, and establishing and approving risk management strategies and procedures to timely recognize, measure, monitor, and control risks arising from various transactions by the Group.

4.1.2.2 Risk Management Council

The Risk Management Council is responsible for consulting on matters delegated by the Risk Management Committee and requests for review by the Management Executive Committee, consulting on details of each subsidiary’s risk management policies and procedures, monitoring the Group’s risk management status, and establishing and implementing necessary measures.

4.1.2.3 Risk Management Department

The Risk Management Department performs the Group’s risk management detailed policies, procedures, and business processes, and is responsible for calculating the Group’s risk-weighted assets, monitoring and managing internal capital limits.

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty’s default, breach of contract, and deterioration of credit quality. For risk management reporting purposes, the Group considers all factors of credit risk exposure, such as default risk of individual borrowers, country risk, and risk of specific sectors in an integrated way.

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4.2.2 Credit risk management

The Group measures the expected loss and economic capital for the assets subject to credit risk management, including

on-balance

and

off-balance

assets, and uses them as management indicators. The Group allocates and manages credit risk economic capital limits.

In addition, to prevent excessive concentration of exposures by borrower and industry, the total exposure limit at the Group level is introduced, applied, and managed to control the credit concentration risk.

All of the Kookmin Bank’s loan customers (individuals and corporates) are assigned a credit rating and managed by a comprehensive internal credit evaluation system. For individuals, the credit rating is evaluated by utilizing personal information, income and job information, asset information, and bank transaction information. For corporates, the credit rating is evaluated by analyzing and utilizing financial and

non-financial

information which measures current and future corporate value and ability to repay the debt. Also, the extent to which corporates have the ability to meet debt obligations is comprehensively considered.

The credit rating, once assigned, serves as the fundamental instrument in Kookmin Bank’s credit risk management, and is applied in a wide range of credit risk management processes, including credit approval, credit limit management, loan pricing, and assessment of allowances for credit losses. For corporates, Kookmin Bank conducts a regular credit evaluation at least once a year, and the review and supervision departments regularly validate the adequacy of credit ratings to manage credit risks.

KB Kookmin Card Co., Ltd.’s credit scoring system is divided into Application Scoring System (“ASS”) and Behavior Scoring System (“BSS”). For applications that meet the eligibility criteria for card issuance, the card will be issued only if the ASS credit rating is above the standard. KB Kookmin Card Co., Ltd.’s internal information, external information from the credit bureau company and others, and personal information on the application are used to calculate the ASS credit rating. The BSS, which is recalculated on a weekly basis, predicts the delinquency probability of cardholders, and utilizes it to monitor cardholders and portfolio risk.

In order to establish a credit risk management system, the Group manages credit risk by forming a separate risk management organization. In particular, independently of the Sales Group, the Credit Management & Analysis Group of Kookmin Bank, a subsidiary, is in charge of loan policy, loan system, credit rating, credit analysis,

follow-up

management, and corporate restructuring. The Risk Management Group of Kookmin Bank is responsible for establishing policies on credit risk management, measuring and limiting internal capital of credit risk, setting credit limits, credit review, and verification of credit rating models.

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4.2.3 Maximum exposure to credit risk

The Group’s maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Financial assets
Due from financial institutions measured at amortized cost *	￦	27,790,121	￦	32,567,708
Financial assets at fair value through profit or loss:
Due from financial institutions measured at fair value through profit or loss		218,357		476,717
Securities measured at fair value through profit or loss		73,768,636		80,553,348
Loans measured at fair value through profit or loss		1,187,763		1,231,012
Derivatives		11,730,767		8,178,056
Loans measured at amortized cost *		472,071,840		491,978,044
Financial investments:
Securities measured at fair value through other comprehensive income		88,735,996		93,312,419
Securities measured at amortized cost *		37,113,552		35,067,192
Loans measured at fair value through other comprehensive income		1,446,628		1,995,083
Other financial assets *		14,404,227		19,069,696

		728,467,887		764,429,275

Off-balance sheet items
Acceptances and guarantees contracts		16,250,243		15,503,443
Financial guarantee contracts		6,674,740		7,209,320
Commitments		212,695,995		213,477,156

		235,620,978		236,189,919

	￦	964,088,865	￦	1,000,619,194

*	After netting of allowance

4.2.4 Credit risk of loans

The Group maintains allowances for loan losses associated with credit risk of loans to manage its credit risk.

The Group assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial assets at fair value through other comprehensive income. Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurring in a certain range by reflecting reasonable and supportable information that is reasonably available at the end of the reporting period without undue cost or effort, including information about past events, current conditions, and forecasts of future economic conditions. The Group measures the expected credit losses of loans classified as financial assets at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income in the consolidated financial statements.

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4.2.4.1 Credit risk exposure

Credit qualities of loans as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Loans measured at amortized cost *
Corporate
Grade 1	￦	145,582,892	￦	7,629,290	￦	2,896	￦	—	￦	153,215,078
Grade 2		74,005,609		11,446,162		12,845		—		85,464,616
Grade 3		3,757,237		5,195,235		14,777		—		8,967,249
Grade 4		861,581		1,091,261		28,368		—		1,981,210
Grade 5		18,395		691,118		3,066,032		—		3,775,545

		224,225,714		26,053,066		3,124,918		—		253,403,698

Retail
Grade 1		175,229,905		4,814,560		6,804		—		180,051,269
Grade 2		8,048,905		4,071,783		39,224		—		12,159,912
Grade 3		4,213,155		1,546,848		33,207		—		5,793,210
Grade 4		315,926		368,863		34,997		—		719,786
Grade 5		49,595		867,276		1,182,000		—		2,098,871

		187,857,486		11,669,330		1,296,232		—		200,823,048

Credit card
Grade 1		11,554,106		195,328		—		—		11,749,434
Grade 2		5,528,025		584,962		—		—		6,112,987
Grade 3		2,575,397		1,640,995		—		—		4,216,392
Grade 4		12,202		476,827		—		—		489,029
Grade 5		1,068		320,083		589,481		—		910,632

		19,670,798		3,218,195		589,481		—		23,478,474

		431,753,998		40,940,591		5,010,631		—		477,705,220

Loans measured at fair value through other comprehensive income
Corporate
Grade1		1,402,334		—		—		—		1,402,334
Grade2		44,294		—		—		—		44,294
Grade3		—		—		—		—		—
Grade4		—		—		—		—		—
Grade5		—		—		—		—		—

		1,446,628		—		—		—		1,446,628

		1,446,628		—		—		—		1,446,628

	￦	433,200,626	￦	40,940,591	￦	5,010,631	￦	—	￦	479,151,848

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4.2.4.1 Credit risk exposure (cont’d)

(In millions of Korean won)


	December 31, 2025
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Loans measured at amortized cost *
Corporate
Grade 1	￦	150,735,198	￦	10,805,239	￦	16,285	￦	—	￦	161,556,722
Grade 2		76,244,644		12,311,562		17,076		—		88,573,282
Grade 3		3,875,195		5,515,745		24,507		—		9,415,447
Grade 4		832,704		1,454,812		46,665		—		2,334,181
Grade 5		8,535		731,636		2,744,600		—		3,484,771

		231,696,276		30,818,994		2,849,133		—		265,364,403

Retail
Grade 1		183,746,803		5,416,479		4,490		—		189,167,772
Grade 2		7,703,085		4,084,210		38,468		—		11,825,763
Grade 3		3,861,528		1,248,406		46,491		—		5,156,425
Grade 4		171,910		629,006		53,419		—		854,335
Grade 5		47,663		624,890		1,207,903		—		1,880,456

		195,530,989		12,002,991		1,350,771		—		208,884,751

Credit card
Grade 1		12,184,584		534,917		—		—		12,719,501
Grade 2		4,807,297		994,230		—		—		5,801,527
Grade 3		1,659,545		1,974,678		—		—		3,634,223
Grade 4		10,458		364,706		—		—		375,164
Grade 5		971		276,685		327,015		—		604,671

		18,662,855		4,145,216		327,015		—		23,135,086

		445,890,120		46,967,201		4,526,919		—		497,384,240

Loans measured at fair value through other comprehensive income
Corporate
Grade1		1,973,472		—		—		—		1,973,472
Grade2		21,611		—		—		—		21,611
Grade3		—		—		—		—		—
Grade4		—		—		—		—		—
Grade5		—		—		—		—		—

		1,995,083		—		—		—		1,995,083

		1,995,083		—		—		—		1,995,083

	￦	447,885,203	￦	46,967,201	￦	4,526,919	￦	—	￦	499,379,323

*	Before netting of allowance

F-53

Table of Contents

4.2.4.1 Credit risk exposure (cont’d)

Credit qualities of loans graded according to internal credit ratings as of December 31, 2024 and 2025, are as follows:


	Range of probability of default (%)	Retail	Corporate
Grade 1	0.0 ~ 1.0	1 ~ 5 grade	AAA ~ BBB+
Grade 2	1.0 ~ 5.0	6 ~ 8 grade	BBB ~ BB
Grade 3	5.0 ~ 15.0	9 ~ 10 grade	BB- ~ B
Grade 4	15.0 ~ 30.0	11 grade	B- ~ CCC
Grade 5	30.0 ~	12 grade or under	CC or under

4.2.4.2 Quantification of the extent to which collateral and other credit enhancements mitigate credit risk of loans as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Total
	12-month expected credit losses		Non-impaired		Impaired		Total
Guarantees	￦	120,868,541	￦	8,349,217	￦	498,290	￦	129,716,048
Deposits and savings		2,792,768		127,130		11,704		2,931,602
Property and equipment		15,498,262		1,071,833		227,196		16,797,291
Real estate		214,770,163		21,195,798		2,167,580		238,133,541

	￦	353,929,734	￦	30,743,978	￦	2,904,770	￦	387,578,482


(In millions of Korean won)	December 31, 2025
	12-month expected credit losses		Lifetime expected credit losses				Total
	12-month expected credit losses		Non-impaired		Impaired		Total
Guarantees	￦	118,325,461	￦	13,368,234	￦	354,137	￦	132,047,832
Deposits and savings		3,263,931		152,943		10,512		3,427,386
Property and equipment		15,781,206		1,105,274		196,548		17,083,028
Real estate		224,337,077		22,748,365		1,956,575		249,042,017

	￦	361,707,675	￦	37,374,816	￦	2,517,772	￦	401,600,263

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4.2.5 Credit risk of securities

Credit qualities of securities exposed to credit risk other than equity securities among financial investments as of December 31, 2024 and 2025 are as follows:

(In millions of Korean won)


	December 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Securities measured at amortized cost *
Grade 1	￦	33,733,935	￦	—	￦	—	￦	—	￦	33,733,935
Grade 2		3,396,100		—		—		—		3,396,100
Grade 3		913		—		—		—		913
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		37,130,948		—		—		—		37,130,948


Securities measured at fair value through other comprehensive income
Grade 1		81,797,910		—		—		—		81,797,910
Grade 2		6,933,807		—		—		—		6,933,807
Grade 3		4,279		—		—		—		4,279
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		88,735,996		—		—		—		88,735,996

		￦125,866,944	￦	—	￦	—	￦	—	￦	125,866,944

(In millions of Korean won)


	December 31, 2025
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Securities measured at amortized cost *
Grade 1	￦	31,671,903	￦	—	￦	—	￦	—	￦	31,671,903
Grade 2		3,405,411		—		—		—		3,405,411
Grade 3		7,175		—		—		—		7,175
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		35,084,489		—		—		—		35,084,489


Securities measured at fair value through other comprehensive income
Grade 1		87,153,519		—		—		—		87,153,519
Grade 2		6,158,900		—		—		—		6,158,900
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		93,312,419		—		—		—		93,312,419

	￦	128,396,908	￦	—	￦	—	￦	—	￦	128,396,908

*	Before netting of allowance

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Table of Contents

4.2.5 Credit risk of securities (cont’d)

Credit qualities of securities other than equity securities, according to the credit ratings by external credit rating agencies as of December 31, 2024 and 2025, are as follows:

Domestic

Foreign

Credit quality

KIS

NICE P&I

KAP

FnPricing Inc.

S&P

Fitch-IBCA

Moody’s

Grade 1

AA0

o AAA

AA0

o AAA

AA0

o AAA

AA0

o AAA

A- to AAA

o Aaa

Grade 2

A-

to AA-

A-

to AA-

A-

to AA-

A-

to AA-

BBB- to BBB+

Baa3

o Baa1

Grade 3

BBB0

o BBB+

BBB0

o BBB+

BBB0

o BBB+

BBB0

o BBB+

BB to BB+

Ba2 to Ba1

Grade 4

BB0

o BBB-

BB0 to BBB-

BB0

o BBB-

B+ to BB-

B1 to Ba3

Grade 5

BB-

or under

BB-

or under

BB-

or under

BB-

or under

B or under

B2 or under

Credit qualities of debt securities denominated in Korean

won

are based on the

low

est credit rating by the domestic credit rating ag

enc

ies above, and those denominated in foreign currencies are based on the lowest credit rating by the foreign credit rating agencies above.

4.2.6 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Due from financial institutions measured at amortized cost *
Grade 1	￦	26,483,963	￦	—	￦	—	￦	—	￦	26,483,963
Grade 2		583,640		—		—		—		583,640
Grade 3		62,223		—		—		—		62,223
Grade 4		18		—		—		—		18
Grade 5		661,849		—		—		—		661,849

	￦	27,791,693	￦	—	￦	—	￦	—	￦	27,791,693

(In millions of Korean won)


	December 31, 2025
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Due from financial institutions measured at amortized cost *
Grade 1	￦	30,869,922	￦	—	￦	—	￦	—	￦	30,869,922
Grade 2		789,076		—		—		—		789,076
Grade 3		122,333		—		—		—		122,333
Grade 4		—		—		—		—		—
Grade 5		787,727		—		—		—		787,727

	￦	32,569,058	￦	—	￦	—	￦	—	￦	32,569,058

*	Before netting of allowance

The classification criteria of the credit qualities of due from financial institutions as of December 31, 2024 and 2025, are the same as the criteria for securities other than equity securities.

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Table of Contents

4.2.8.4 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance	￦	27,791,693		100.00	￦	(1,572	)	￦	27,790,121

		27,791,693		100.00		(1,572	)		27,790,121

Due from financial institutions measured at fair value through profit or loss
Finance and insurance		59,838		100.00		—			59,838

		59,838		100.00		—			59,838

Securities measured at fair value through profit or loss
Government and government funded institutions		25,543,224		34.63		—			25,543,224
Finance and insurance		35,810,087		48.54		—			35,810,087
Others		12,415,325		16.83		—			12,415,325

		73,768,636		100.00		—			73,768,636

Derivative financial assets
Government and government funded institutions		51,376		0.44		—			51,376
Finance and insurance		10,398,642		88.64		—			10,398,642
Others		1,280,749		10.92		—			1,280,749

		11,730,767		100.00		—			11,730,767

Securities measured at fair value through other comprehensive income
Government and government funded institutions		49,417,230		55.69		—			49,417,230
Finance and insurance		27,374,090		30.85		—			27,374,090
Others		11,944,676		13.46		—			11,944,676

		88,735,996		100.00		—			88,735,996

Securities measured at amortized cost
Government and government funded institutions		15,499,014		41.75		(787	)		15,498,227
Finance and insurance		21,411,994		57.66		(16,228	)		21,395,766
Others		219,940		0.59		(381	)		219,559

		37,130,948		100.00		(17,396	)		37,113,552

	￦	239,217,878			￦	(18,968	)	￦	239,198,910

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Table of Contents

4.2.8.4 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)


	December 31, 2025
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Government and government funded institutions	￦	548,066		1.68	￦	—		￦	548,066
Finance and insurance		32,020,992		98.32		(1,350	)		32,019,642

		32,569,058		100.00		(1,350	)		32,567,708

Due from financial institutions measured at fair value through profit or loss
Finance and insurance		476,717		100.00		—			476,717

		476,717		100.00		—			476,717

Securities measured at fair value through profit or loss
Government and government funded institutions		27,525,884		34.17		—			27,525,884
Finance and insurance		37,931,231		47.09		—			37,931,231
Others		15,096,233		18.74		—			15,096,233

		80,553,348		100.00		—			80,553,348

Derivative financial assets
Government and government funded institutions		54,733		0.67		—			54,733
Finance and insurance		7,266,345		88.85		—			7,266,345
Others		856,978		10.48		—			856,978

		8,178,056		100.00		—			8,178,056

Securities measured at fair value through other comprehensive income
Government and government funded institutions		57,326,535		61.44		—			57,326,535
Finance and insurance		24,060,595		25.78		—			24,060,595
Others		11,925,289		12.78		—			11,925,289

		93,312,419		100.00		—			93,312,419

Securities measured at amortized cost
Government and government funded institutions		14,338,528		40.87		(1,054	)		14,337,474
Finance and insurance		20,570,329		58.63		(15,924	)		20,554,405
Others		175,632		0.50		(319	)		175,313

		35,084,489		100.00		(17,297	)		35,067,192

	￦	250,174,087			￦	(18,647	)	￦	250,155,440

F-60

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea	￦	18,731,321		67.39	￦	(436	)	￦	18,730,885
United States		2,946,827		10.60		(91	)		2,946,736
Others		6,113,545		22.01		(1,045	)		6,112,500

		27,791,693		100.00		(1,572	)		27,790,121

Due from financial institutions measured at fair value through profit or loss
Korea		59,838		100.00		—			59,838

		59,838		100.00		—			59,838

Securities measured at fair value through profit or loss
Korea		65,276,781		88.48		—			65,276,781
United States		3,817,882		5.18		—			3,817,882
Others		4,673,973		6.34		—			4,673,973

		73,768,636		100.00		—			73,768,636

Derivative financial assets
Korea		5,153,264		43.93		—			5,153,264
United States		2,870,245		24.47		—			2,870,245
France		1,117,765		9.53		—			1,117,765
Singapore		370,823		3.16		—			370,823
Japan		377,000		3.21					377,000
Others		1,841,670		15.70		—			1,841,670

		11,730,767		100.00		—			11,730,767

Securities measured at fair value through other comprehensive income
Korea		81,111,331		91.40		—			81,111,331
United States		4,460,081		5.04		—			4,460,081
Others		3,164,584		3.56		—			3,164,584

		88,735,996		100.00		—			88,735,996

Securities measured at amortized cost
Korea		31,798,069		85.64		(12,389	)		31,785,680
United States		1,862,402		5.02		(1,191	)		1,861,211
Others		3,470,477		9.34		(3,816	)		3,466,661

		37,130,948		100.00		(17,396	)		37,113,552

	￦	239,217,878			￦	(18,968	)	￦	239,198,910

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Table of Contents

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)


	December 31, 2025
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea	￦	22,609,374		69.42	￦	(548	)	￦	22,608,826
United States		3,471,363		10.66		—			3,471,363
Others		6,488,321		19.92		(802	)		6,487,519

		32,569,058		100.00		(1,350	)		32,567,708

Due from financial institutions measured at fair value through profit or loss
Korea		64,438		13.52		—			64,438
Others		412,279		86.48		—			412,279

		476,717		100.00		—			476,717

Securities measured at fair value through profit or loss
Korea		70,010,515		86.91		—			70,010,515
United States		4,926,498		6.12		—			4,926,498
Others		5,616,335		6.97		—			5,616,335

		80,553,348		100.00		—			80,553,348

Derivative financial assets
Korea		3,771,700		46.12		—			3,771,700
United States		1,673,866		20.47		—			1,673,866
France		554,494		6.78		—			554,494
Singapore		484,154		5.92		—			484,154
Japan		190,955		2.33					190,955
Others		1,502,887		18.38		—			1,502,887

		8,178,056		100.00		—			8,178,056

Securities measured at fair value through other comprehensive income
Korea		85,875,358		92.03		—			85,875,358
United States		4,292,703		4.60		—			4,292,703
Others		3,144,358		3.37		—			3,144,358

		93,312,419		100.00		—			93,312,419

Securities measured at amortized cost
Korea		30,412,261		86.69		(12,295	)		30,399,966
United States		786,213		2.24		(755	)		785,458
Others		3,886,015		11.07		(4,247	)		3,881,768

		35,084,489		100.00		(17,297	)		35,067,192

	￦	250,174,087			￦	(18,647	)	￦	250,155,440

Due from financial institutions, financial instruments at fair value through profit or loss linked to gold price, and derivative financial instruments are mostly related to the finance and insurance industry with high credit ratings.

F-62

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Group becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Group manages its liquidity risk through analysis of the contractual maturity of interest-bearing assets and liabilities, assets and liabilities related to the other inflows and outflows of funds, and

off-balance

sheet items related to the inflows and outflows of funds such as currency derivative instruments and others.

4.3.2 Liquidity risk management and indicator

The liquidity risk is managed by risk management policies and liquidity risk management guidelines set forth in these policies that apply to all risk management policies and procedures that may arise throughout the overall business of the Group.

The Group calculates and manages cumulative liquidity gap, liquidity ratio and others for all transactions and

off-balance

transactions related to liquidity, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Council and the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

The cash flows disclosed in the maturity analysis are undiscounted contractual amounts including principal and future interest payments; as such, amounts in the table below do not match with those in the consolidated statements of financial position which are based on discounted cash flows. The future interest payments for floating-rate liabilities are calculated on the assumption that the current interest rate is the same until maturity.

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Table of Contents

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and

off-balance

sheet items as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years			Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1	￦	2,717,732	￦	—	￦	—	￦	—	￦	—	￦	—		￦	2,717,732
Financial liabilities designated at fair value through profit or loss 1		8,002,499		—		—		—		—		—			8,002,499
Derivatives held for trading 1		11,409,695		—		—		—		—		—			11,409,695
Derivatives held for hedging 2		—		7,538		12,221		85,101		64,760		(3,206	)		166,414
Deposits 3		181,232,114		41,663,882		57,643,486		137,677,588		24,822,029		1,437,036			444,476,135
Borrowings		10,613,810		17,508,577		7,562,405		22,180,471		10,360,622		1,263,467			69,489,352
Debentures		1,113		4,138,143		6,683,638		21,458,905		42,772,744		5,955,515			81,010,058
Lease liabilities		196		30,683		56,903		227,390		606,547		122,502			1,044,221
Other financial liabilities		108,979		22,138,250		147,660		331,842		1,174,845		171,549			24,073,125

	￦	214,086,138	￦	85,487,073	￦	72,106,313	￦	181,961,297	￦	79,801,547	￦	8,946,863		￦	642,389,231

Off-balance sheet items
Commitments 4	￦	212,695,995	￦	—	￦	—	￦	—	￦	—	￦	—		￦	212,695,995
Acceptances and guarantees contracts 5		16,250,243		—		—		—		—		—			16,250,243
Financial guarantee contracts 5		6,674,740		—		—		—		—		—			6,674,740

	￦	235,620,978	￦	—	￦	—	￦	—	￦	—	￦	—		￦	235,620,978

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Table of Contents

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and

off-balance

sheet items as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)


	December 31, 2025
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years			Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1	￦	3,339,572	￦	—	￦	—	￦	—	￦	—	￦	—		￦	3,339,572
Financial liabilities designated at fair value through profit or loss 1		7,981,018		—		—		—		—		—			7,981,018
Derivatives held for trading 1		7,687,304		—		—		—		—		—			7,687,304
Derivatives held for hedging 2		—		10,774		12,157		263,427		81,649		(58	)		367,949
Deposits 3		201,772,650		40,440,335		56,336,873		142,245,329		28,884,608		1,203,556			470,883,351
Borrowings		11,635,724		20,378,309		7,077,101		21,534,773		10,042,532		1,121,266			71,789,705
Debentures		868		4,812,305		7,215,145		26,911,817		43,479,691		2,313,102			84,732,928
Lease liabilities		609		33,862		58,736		232,067		619,002		26,140			970,416
Other financial liabilities		754,678		28,772,873		142,050		486,329		1,127,692		164,919			31,448,541

	￦	233,172,423	￦	94,448,458	￦	70,842,062	￦	191,673,742	￦	84,235,174	￦	4,828,925		￦	679,200,784

Off-balance sheet items
Commitments 4	￦	213,477,156	￦	—	￦	—	￦	—	￦	—	￦	—		￦	213,477,156
Acceptances and guarantees contracts 5		15,503,443		—		—		—		—		—			15,503,443
Financial guarantee contracts 5		7,209,320		—		—		—		—		—			7,209,320

	￦	236,189,919	￦	—	￦	—	￦	—	￦	—	￦	—		￦	236,189,919

Financial liabilities measured or designated at fair value through profit or loss and derivatives held for trading are not managed by contractual maturity because they are expected to be traded or redeemed before maturity. Therefore, the carrying amounts of those financial instruments are included in the ‘On demand’ category.

2	Cash flows of derivatives held for hedging are shown at net amount of cash inflows and outflows by remaining contractual maturity.

3	Deposits that are contractually repayable on demand or on short notice are included in the ‘On demand’ category.

4	Unused lines of credit within commitments are included in the ‘On demand’ category because payments can be requested at any time.

5	Cash flows under acceptances and financial guarantee contracts are classified based on the earliest period that the contract can be executed.

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4.3.3.2 Contractual cash flows of derivatives held for cash flow hedge as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Up to 1 month			1-3 months			3-12 months			1-5 years			Over 5 years		Total
Cash flow to be received (paid) of net-settled derivatives	￦	1,402		￦	6,654		￦	22,907		￦	51,167		￦	—	￦	82,130
Cash flow to be received of gross-settled derivatives		146,467			168,634			1,477,861			3,147,437			—		4,940,399
Cash flow to be paid of gross-settled derivatives		(192,685	)		(272,362	)		(1,616,687	)		(3,663,434	)		—		(5,745,168	)

(In millions of Korean won)	December 31, 2025
	Up to 1 month			1-3 months			3-12 months			1-5 years			Over 5 years		Total
Cash flow to be received (paid) of net-settled derivatives	￦	(26	)	￦	3,844		￦	13,411		￦	16,830		￦	—	￦	34,059
Cash flow to be received of gross-settled derivatives		226,373			299,796			1,602,656			3,803,241			—		5,932,066
Cash flow to be paid of gross-settled derivatives		(277,652	)		(406,140	)		(1,770,081	)		(4,313,738	)		—		(6,767,611	)

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc., which arise from securities, derivatives, and others. The most significant risks associated with trading positions are interest rate risk, currency risk, and additional risks include stock price risk. The

non-trading

position is also exposed to interest rate risk. The Group manages the market risks by dividing them into those arising from the trading position and those arising from the

non-trading

position.

4.4.2 Risk management

The Group sets and monitors internal capital limits for market risk and interest rate risk to manage the risks of trading and

non-trading

positions. In order to manage market risk efficiently, the Group maintains risk management systems and procedures such as trading policies and procedures, market risk management guidelines for trading positions, and interest rate risk management guidelines for

non-trading

positions. The entire process is carried out through consultation with the Risk Management Council and approval by the Risk Management Committee of the Group. However, insurance companies that are engaged in the insurance business are not subject to these guidelines and are monitored by setting internal capital limits for market risk and interest rate risk based on

K-ICS.

In the case of Kookmin Bank, a major subsidiary, the Risk Management Council establishes and enforces overall market risk management policies for market risk management and decides to establish position limits, loss limits, VaR limits, and approves

non-standard

new products. In addition, the Market Risk Management Subcommittee, chaired by Chief Risk Officer (“CRO”), is a practical decision-making body for market risk management and determines position limits, loss limits, VaR limits, sensitivity limits, and scenario loss limits for each department of the business group.

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4.4.2 Risk management (cont’d)

Kookmin Bank’s Asset-Liability Management Committee (“ALCO”) determines interest rate and commission operating standards and Asset Liability Management (“ALM”) operation policies and enacts and revises relevant guidelines. The Risk Management Committee and the Risk Management Council monitor the establishment and enforcement of ALM risk management policies and enact and revise ALM risk management guidelines. Interest rate risk limits are set based on future asset and liability positions and expected interest rate volatility, which reflect annual business plans. The Financial Planning Department and the Risk Management Department regularly measure and monitor interest rate risk and report the status and limit of interest rate risk including changes in Economic Value of Equity (“ΔEVE”), changes in Net Interest Income (“ΔNII”), and duration gap to the ALCO and the Risk Management Council on a monthly basis, and to the Risk Management Committee on a quarterly basis. To ensure the adequacy of interest rate risk and liquidity risk management, the Risk Management Department assigns the limits, monitors and reviews the procedures and tasks of ALM operations conducted by the ALM department, and reports related matters to the management independently.

Kookmin Bank is closely monitoring the outputs of various industry groups and markets that manage the transition to the new interest rate benchmark, including announcements by LIBOR regulation authority and various consultative bodies related to the transition to alternative interest rate. In response to these announcements, Kookmin Bank has completed most of the transition and replacement plans according to LIBOR transition programs and plans consisting of major business areas such as finance, accounting, tax, legal, IT, and risk. The program is under the control of the CFO and related matters are reported to the board of directors and consultative bodies with senior management as members. Kookmin Bank continues its efforts as a market participant to actively express opinions so that the index interest rate benchmark reform can be carried out in the direction of minimizing the financial and

non-financial

impacts and operational risks and minimizing confusion among stakeholders.

4.4.3 Trading position

4.4.3.1 Definition of a trading position

The trading position, which is subject to market risk management, is the trading position defined in “Trading Policy and Guidelines” and the basic requirements for the trading position are as follows:

The target position should be made daily fair value assessment and should have no legal constrictions on sale and hedging.

•

The target position has no restrictions on the sale, and the daily fair value assessment should be made, and the embedded significant risk can be hedged in the market.

•

The trading position classification criteria should be clearly defined in the Trading Policy and Guidelines, and the trading position should be managed by a separate trading department.

•

The target position must be operated according to the documented trading strategy and the management of position limit must be carried out.

•

The specialized dealer or operating department shall have the authority to execute the transaction without prior approval from the Risk Management Department, etc. within the predetermined limits of the target position.

•

The target positions should be periodically reported to management for risk management of the Group.

4.4.3.2 Observation method of market risk arising from trading positions

From January 2023, Subsidiaries of the Group use the Basel III standardized approach to measure market risk and manage it at the portfolio level (Prior to January 2023, Basel II standardized approach or Basel II internal models such as VaR). In addition, the Group controls and manages the risk of derivative financial instrument transactions in accordance with the Financial Supervisory Service regulations and guidelines.

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4.4.3.3 Basel III standardized approach

Market risk regulatory capital is calculated as the sum of (a) sensitivities-based risk, (b) default risk, and (c) residual risk according to the Basel III standardized approach introduced in January 2023.

(a) Sensitivities-based risk, which is the basis of the Basel III standardized approach for market risk, calculates the expected loss for each risk factor by applying the risk weights and correlation parameter specified by the Basel Committee and summing them.

(b) Default risk is the risk from default of issuer of securities and derivatives and is calculated by applying risk weights based on the issuer’s credit rating and other factors.

(c) Residual risk is the risk imposed on atypical underlying instruments and is calculated by applying a certain percentage specified by the Basel Committee to the par value.

(Basel III standardized approach definitions by risk type)


Sensitivities-based risk	Interest rate risk group	GIRR	The risk associated with risk-free interest rates (typically OIS rates) defined by currency and maturity.

		CSR	The risk associated with the issuer’s interest rate credit spread, defined by creditworthiness and sector.

	Equity risk group		The risk factors associated with equity, defined by market capitalization, economic conditions, and sector

	Foreign exchange risk group		The risk factors associated with exchange rate, defined by currency pairs

	Commodity risk group		The risk factors associated with commodities, defined by commodity types.

Default risk			Issuer default risk in securities (bonds, etc.) and derivatives.

Residual risk			Additional risks imposed on non-standard underlying asset products, etc.

Required equity capital of subsidiaries according to Basel III standardized approach for the year ended December 31, 2024 and 2025, are as follows:

Kookmin Bank

(In millions of Korean won)

2024

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2024

￦

417,756

￦

52,293

￦

1,070

￦

471,119

(In millions of Korean won)

2025

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2025

￦

427,455

￦

63,128

￦

1,243

￦

491,826

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4.4.3.3 Basel III standardized approach (cont’d)

KB Securities Co., Ltd.

(In millions of Korean won)

2024

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2024

￦

612,879

￦

282,755

￦

8,303

￦

903,937

(In millions of Korean won)

2025

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2025

￦

779,454

￦

354,958

￦

8,149

￦

1,142,561

KB Kookmin Card Co., Ltd.

(In millions of Korean won)

2024

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2024

￦

40,454

￦

—

￦

—

￦

40,454

(In millions of Korean won)

2025

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2025

￦

37,487

￦

—

￦

—

￦

37,487

KB Asset Management Co., Ltd.

(In millions of Korean won)

2024

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2024

￦

6,460

￦

747

￦

—

￦

7,207

(In millions of Korean won)

2025

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2025

￦

25,461

￦

2,447

￦

—

￦

27,908

KB Capital Co., Ltd.

(In millions of Korean won)

2024

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2024

￦

13,052

￦

—

￦

—

￦

13,052

(In millions of Korean won)

2025

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2025

￦

13,486

￦

—

￦

—

￦

13,486

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4.4.3.3 Basel III standardized approach (cont’d)

KB Investment Co., Ltd.

(In millions of Korean won)

2024

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2024

￦

61,802

￦

5,597

￦

67,400

(In millions of Korean won)

2025

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2025

￦

97,962

￦

10,478

￦

108,445

KB Data System Co., Ltd.

(In millions of Korean won)

2024

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2024

￦

427

￦

—

￦

—

￦

427

(In millions of Korean won)

2025

Sensitivities-based

risk

Default risk

Residual risk

Dec. 31, 2025

￦

369

￦

—

￦

—

￦

369

4.4.3.4 Details of risk factors

(a) Interest rate risk

Interest rate risk for trading positions usually arises from debt securities. The Group’s trading strategy is to gain short-term trading gains from interest rate fluctuations. The Group manages interest rate risk associated with trading portfolios using sensitivity analysis (Price Value of a Basis Point: PVBP).

(b) Stock price risk

Stock price risk usually arises from the portfolio of trading stocks. The portfolio of trading stocks consists of stocks listed on the exchange and derivatives linked to stocks, collective investment securities and others.

Currency risk arises from holding assets and liabilities which are denominated in foreign currency, and currency-related derivatives. Most of the net foreign currency exposures occur in the US dollars, the Chinese Yuan and the Indonesian Rupiah.

4.4.4

Non-trading

position (Interest Rate Risk of Banking Book (“IRRBB”))

4.4.4.1 Qualitative disclosure

(a) Definition of interest rate risk for risk management and measurement purposes

Interest rate risk is a change in equity and earnings due to the changes in value of interest-sensitive assets and liabilities, etc., and is measured by ΔEVE and ΔNII.

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4.4.4.1 Qualitative disclosure (cont’d)

(b) Overall interest rate risk management and mitigation strategy

The interest rate risk management department establishes and sets interest rate risk management policies and limit once a year by a resolution of the Risk Management Council considering the mid to long-term management strategy and macroeconomic status. The interest rate risk management department analyzes interest rate risk crisis situations assuming abnormal interest rate fluctuations and reports the results to the Risk Management Council and observes changes in interest rate risk and compliance with risk limits to devise timely countermeasures and reports the management status regularly and frequently to the Risk Management Council. The interest rate risk model adequacy test is carried out regularly at least once a year by the verification department independent of the management department.

In order to measure the sensitivity of the economic value and earnings to changes in interest rates, the Group calculates monthly interest rate gap and duration gap for assets and liabilities.

(d) Interest rate shock and stress scenarios used to estimate changes in the economic value and in earnings

The Group calculates ΔEVE by applying following six interest rate shock and stress scenarios, and ΔNII by applying parallel shock up and parallel shock down scenarios.

•

Scenario 1 : Parallel shock up

•

Scenario 2 : Parallel shock down

•

Scenario 3 : Steepener shock (short rates down and long rates up)

•

Scenario 4 : Flattener shock (short rates up and long rates down)

•

Scenario 5 : Short rates shock up

•

Scenario 6 : Short rates shock down

(e) Key modeling assumptions used to measure interest rate risk for internal management purposes

The Group measures unfavorable changes in economic value resulting from changes in interest rates, following the interest rate risk calculation standards set by the Financial Supervisory Service.

(f) Interest rate risk hedging methodology and related accounting

Subsidiaries which are subject to interest rate risk measurement hedge interest rate risk through

back-to-back

interest rate swap transactions, which are the same as interest payment cash flows and officially document and manage the risk management strategy for hedge accounting, risk management objectives, hedging relationship, and assessment method for hedge effectiveness.

(g) Key modeling and parametric assumptions used in calculating ΔEVE and ΔNII

Subsidiaries which are subject to interest rate risk measurement calculate interest rate risk, including all cash flow of interest-sensitive assets and liabilities, and

off-balance

sheet items. The main assumptions of the IRRBB standard method for calculating ΔEVE, ΔNII are as follows:

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4.4.4.1 Qualitative disclosure (cont’d)

(Classification of time buckets of cash flows (19 buckets in total))

Time bucket intervals (D:Day M:Months Y:Years t

:Repricing date)

Short-term rates

(0.0028Y)

1D< t

≤1M

(0.0417Y)

1M< t

≤3M

(0.1667Y)

3M< t

≤6M

(0.375Y)

6M< t

≤9M

(0.625Y)

9M< t

≤1Y

(0.875Y)

1Y< t

≤1.5Y

(1.25Y)

1.5Y< t

≤2Y

(1.75Y)

Medium-term rates

2Y< t

≤3Y

(2.5Y)

3Y< t

≤4Y

(3.5Y)

4Y< t

≤5Y

(4.5Y)

5Y< t

≤6Y

(5.5Y)

6Y< t

≤7Y

(6.5Y)

Long-term rates

7Y< t

≤8Y

(7.5Y)

8Y< t

≤9Y

(8.5Y)

9Y< t

≤10Y

(9.5Y)

10Y< t

≤15Y

(12.5Y)

15Y< t

≤20Y

(17.5Y)

>20Y

(25Y)

*	The number in brackets is the time bucket’s midpoint.

(Caps on core deposit and average maturity by category for

non-maturity

deposits)


	Cap on proportion of core deposits (%)		Cap on average maturity of core deposits (years)

Retail/transactional		90		5
Retail/non-transactional		70		4.5
Wholesale		50		4

4.4.4.2 Quantitative disclosure

The average repricing maturity of

non-maturity

deposits is 2.5 years for core deposits, 1 day for

non-core

deposits, and the longest repricing maturity is five years.

(a) Kookmin Bank

ΔEVE is calculated by applying six interest rate shock and stress scenarios, and ΔNII is calculated by applying parallel shock up and parallel shock down scenarios. Results as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024				December 31, 2025
	Changes in the economic value of equity capital Δ EVE		Changes in net interest income Δ NII		Changes in the economic value of equity capital Δ EVE		Changes in net interest income Δ NII

Scenario 1 (Parallel shock up)	￦	830,102	￦	205,111	￦	990,410	￦	232,080
Scenario 2 (Parallel shock down)		—		—		—		99,869
Scenario 3 (Short rates down, long rates up)		398,065				664,573
Scenario 4 (Short rates up, long rates down)		447,275				327,654
Scenario 5 (Short rates shock up)		540,388				598,002
Scenario 6 (Short rates shock down)		132,113				226,291
Maximum out of six scenarios		830,102		205,111		990,410		232,080
Basic capital		35,059,009				36,960,176

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4.4.4.2 Quantitative disclosure (cont’d)

(b)

Non-bank

subsidiaries

ΔEVE is maximum out of six interest rate shock and stress scenarios, and ΔNII is maximum of parallel shock up and parallel shock down scenarios. Results as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024				December 31, 2025
	Δ EVE		Δ NII		Δ EVE		Δ NII

KB Securities Co., Ltd.	￦	88,676	￦	387,027	￦	70,256	￦	391,318
KB Kookmin Card Co., Ltd.		147,683		216,520		274,031		272,629
KB Capital Co., Ltd.		172,611		64,840		159,822		21,066
KB Savings Bank Co., Ltd.		15,125		568		5,822		99

4.4.5 Financial assets and liabilities denominated in foreign currencies

Details of financial instruments denominated in foreign currencies and translated into Korean won as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	USD		JPY		EUR		GBP		CNY		Others		Total

Financial assets
Cash and due from financial institutions	￦	9,171,037	￦	739,998	￦	328,861	￦	61,561	￦	566,160	￦	1,308,772	￦	12,176,389
Financial assets at fair value through profit or loss		8,481,069		3,104		945,556		152,459		404		447,628		10,030,220
Derivatives held for trading		288,228		8,111		10,297		616		13,604		3,450		324,306
Derivatives held for hedging		457,414		—		—		2		—		102		457,518
Loans measured at amortized cost		31,598,425		877,024		3,474,346		1,069,013		2,114,302		8,274,576		47,407,686
Financial assets at fair value through other comprehensive income		7,789,037		—		278,806		50,415		549,307		1,570,697		10,238,262
Financial assets at amortized cost		3,544,607		—		44,358		227,140		200,747		1,806,530		5,823,382
Other financial assets		3,621,636		38,182		97,946		44,483		57,331		310,716		4,170,294

	￦	64,951,453	￦	1,666,419	￦	5,180,170	￦	1,605,689	￦	3,501,855	￦	13,722,471	￦	90,628,057

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	1,024,957	￦	—	￦	—	￦	—	￦	—	￦	21,841	￦	1,046,798
Derivatives held for trading		724,036		48,351		76,968		214		3,002		8,932		861,503
Derivatives held for hedging		161,114		—		2,264		1,144		—		11,119		175,641
Deposits		30,041,679		1,658,775		1,645,279		1,058,101		2,519,261		5,036,555		41,959,650
Borrowings		16,231,860		452,189		1,492,914		229,757		372,293		3,495,867		22,274,880
Debentures		9,785,607		—		3,902,818		—		—		656,664		14,345,089
Other financial liabilities		4,567,800		129,853		115,012		26,017		88,768		113,785		5,041,235

	￦	62,537,053	￦	2,289,168	￦	7,235,255	￦	1,315,233	￦	2,983,324	￦	9,344,763	￦	85,704,796

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4.4.5 Financial assets and liabilities denominated in foreign currencies (cont’d)


(In millions of Korean won)	December 31, 2025
	USD		JPY		EUR		GBP		CNY		Others		Total

Financial assets
Cash and due from financial institutions	￦	10,254,448	￦	712,594	￦	415,862	￦	41,663	￦	838,694	￦	1,356,433	￦	13,619,694
Financial assets at fair value through profit or loss		10,388,505		38,112		1,201,278		200,651		3,008		600,243		12,431,797
Derivatives held for trading		141,239		118,786		7,950		22		1,953		1,738		271,688
Derivatives held for hedging		297,856		—		448		—		—		262		298,566
Loans measured at amortized cost		31,500,916		963,163		3,787,949		1,131,699		2,065,070		8,180,274		47,629,071
Financial assets at fair value through other comprehensive income		8,394,559		—		327,070		44,045		792,810		1,214,624		10,773,108
Financial assets at amortized cost		2,587,440		—		48,898		223,892		166,666		2,058,931		5,085,827
Other financial assets		3,977,269		238,243		151,066		46,328		81,261		520,470		5,014,637

	￦	67,542,232	￦	2,070,898	￦	5,940,521	￦	1,688,300	￦	3,949,462	￦	13,932,975	￦	95,124,388

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	1,285,152	￦	—	￦	—	￦	—	￦	—	￦	24,274	￦	1,309,426
Derivatives held for trading		666,912		60,816		53,484		22		48		3,710		784,992
Derivatives held for hedging		98,639		—		5,225		202		—		18,186		122,252
Deposits		30,952,175		1,651,890		2,034,883		786,465		3,059,147		5,757,021		44,241,581
Borrowings		15,145,672		114,964		1,135,089		260,739		772,626		3,369,771		20,798,861
Debentures		9,024,519		—		4,716,769		96,619		—		756,655		14,594,562
Other financial liabilities		4,610,825		173,320		270,574		45,494		73,907		882,401		6,056,521

	￦	61,783,894	￦	2,000,990	￦	8,216,024	￦	1,189,541	￦	3,905,728	￦	10,812,018	￦	87,908,195

4.5 Operational Risk

4.5.1 Concept

Operational risk of the Group refers to the risk of loss that may occur due to improper or incorrect internal procedures, personnel, systems or external events. Operational risk management plays a role in enhancing the stability and soundness of financial institutions by managing the appropriate level of capital and supplementing the internal control system.

4.5.2 Risk management

The purpose of operational risk management is not only to comply with supervisory and regulatory requirements, but also to spread risk management culture, strengthen internal control, improve processes, and provide timely feedback to management and all employees. The Parent Company manages the Group’s overall operational risk, and each subsidiary establishes and implements operational risk management policies according to its own risk level and implements and operates related systems. The Group Risk Management Committee establishes and allocates risk capital of operational risk for each subsidiary, and subsidiaries manage operational risks at an appropriate level within the allocated risk capital.

4.6 Capital Management

The Group complies with the capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements (“BIS”) in June 2011 and was implemented in Korea in December 2013. According to this standard, the Group is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 9.0%, Tier 1 Capital ratio of 10.5%, and Total Capital ratio of 12.5%) as of December 31, 2025.

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4.6 Capital Management (cont’d)

The Group’s capital is classified into three categories in accordance with the Detailed Regulations on Supervision of Financial Holding Companies as follows:

•

Common Equity Tier 1 Capital: Common equity Tier 1 Capital is the first to take losses of the Group and is the last to be compensated in liquidation of the Group and not repaid except for liquidation. It includes capital, capital surplus, retained earnings,

non-controlling

interests of the consolidated subsidiaries, accumulated other comprehensive income, and other capital surplus, etc.

•

Additional Tier 1 Capital: Additional Tier 1 Capital includes capital, capital surplus, etc. related to the issuance of capital securities of a permanent nature that meets the conditional capital securities requirements.

•

Tier 2 Capital: Tier 2 Capital means capital that can compensate for losses of the Group upon liquidation, including (a) the amount of subordinated bonds with maturity of not less than 5 years that meet the conditional capital securities requirements, and (b) the allowances for credit losses accumulated on the loans which are classified as normal or precautionary in accordance with Regulations on Supervision of Financial Holding Companies, and others.

The risk-weighted assets are the magnitude of the amount of risk inherent in the total asset held by the Group. The Group calculates risk-weighted assets by each risk (credit risk, market risk, and operational risk) based on the Detailed Regulations on Supervision of Financial Holding Companies and uses them to calculate capital adequacy ratio.

The Group evaluates and manages capital adequacy through separate internal policies. The evaluation of capital adequacy compares the size of available capital (the amount of capital actually available) to the size of internal capital (the amount of capital required to cover all the significant risks faced by the Group under its target credit rating), which monitors financial soundness and provides a risk-adjusted performance measurement basis.

Internal capital refers to the capital required to prevent the insolvency from future unexpected losses. The Group operates a system to measure, allocate, and manage internal capital to major subsidiaries by risk type.

The Risk Management Committee of the Group determines the risk appetite of the Group, allocates internal capital by risk type and major subsidiaries, and major subsidiaries operate capital efficiently within the range of the allocated internal capital. The Risk Management Department of the Group monitors internal capital limit management and reports it to management and the Risk Management Committee. If the limit of internal capital is expected to be exceeded due to new businesses or business expansion, the Group’s capital adequacy management is carried out through review and approval by the Risk Management Committee in advance.

Details of the Group’s capital adequacy ratio in accordance with Basel III requirements as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025

Total Capital:	￦	56,849,484	￦	57,823,874
Tier 1 Capital		52,477,447		54,292,141
Common Equity Tier 1 Capital		46,794,302		49,353,374
Additional Tier 1 Capital		5,683,146		4,938,767
Tier 2 Capital		4,372,037		3,531,733
Risk-Weighted Assets:		345,980,580		356,995,709
Total Capital ratio (%):		16.43		16.20
Tier 1 Capital ratio (%)		15.17		15.21
Common Equity Tier 1 Capital ratio (%)		13.53		13.82

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5. Segment Information

5.1 Overall Segment Information and Business Segments

The Group classifies reporting segments based on the nature of the products and services provided, the type of customer, and the Group’s management organization.


Banking business	Corporate banking	Loans, deposit products, and other related financial services to large, small and medium-sized enterprises and SOHOs
	Retail banking	Loans, deposit products, and other related financial services to individuals and households
	Other banking services	Trading activities in securities and derivatives, funding, and other supporting activities
Securities business		Investment banking, brokerage services, and other supporting activities
Non-life insurance business		Non-life insurance and other supporting activities
Credit card business		Credit sale, cash advance, card loan, and other supporting activities
Life insurance business		Life insurance and other supporting activities

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5.1 Overall Segment Information and Business Segments (cont’d)

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


(In millions of Korean won)
	2024
	Banking business
	Corporate banking			Retail banking			Other banking services			Sub-total			Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total

Net operating revenues (expenses) from external customers	￦	5,281,537		￦	4,165,446		￦	637,177		￦	10,084,160		￦	1,772,379		￦	1,447,658		￦	2,107,801		￦	366,433		￦	1,249,740		￦	—		￦	17,028,171
Intersegment net operating revenues (expenses)		91,339			—			537,771			629,110			48,236			(172,748	)		(59,531	)		(1,236	)		296,117			(739,948	)		—

	￦	5,372,876		￦	4,165,446		￦	1,174,948		￦	10,713,270		￦	1,820,615		￦	1,274,910		￦	2,048,270		￦	365,197		￦	1,545,857		￦	(739,948	)	￦	17,028,171

Net interest income (expenses)	￦	5,765,967		￦	3,319,728		￦	1,138,177		￦	10,223,872		￦	604,220		￦	(27,286	)	￦	1,661,002		￦	(137,380	)	￦	687,978		￦	(185,692	)	￦	12,826,714
Interest income		12,100,679			7,760,970			3,349,423			23,211,072			1,783,459			899,571			2,464,356			645,953			1,586,364			(99,390	)		30,491,385
Interest expense		(6,334,712	)		(4,441,242	)		(2,211,246	)		(12,987,200	)		(1,179,239	)		(926,857	)		(803,354	)		(783,333	)		(898,386	)		(86,302	)		(17,664,671	)
Net fee and commission income (expenses)		410,424			241,799			460,655			1,112,878			788,521			(35,521	)		770,218			8,295			1,248,859			(43,623	)		3,849,627
Fee and commission income		600,466			390,775			552,868			1,544,109			1,012,768			10,271			1,817,271			16,340			1,414,179			(333,095	)		5,481,843
Fee and commission expense		(190,042	)		(148,976	)		(92,213	)		(431,231	)		(224,247	)		(45,792	)		(1,047,053	)		(8,045	)		(165,320	)		289,472			(1,632,216	)
Net Insurance income (expenses)		—			—			—			—			—			1,091,885			8,133			480,066			—			69,677			1,649,761
Insurance income		—			—			—			—			—			10,468,227			17,233			1,009,157			—			(38,426	)		11,456,191
Insurance expense		—			—			—			—			—			(9,376,342	)		(9,100	)		(529,091	)		—			108,103			(9,806,430	)
Net gains on financial instruments at fair value through profit or loss		23,652			—			744,225			767,877			267,257			344,848			11,847			283,572			(13,103	)		(650,217	)		1,012,081
Net other insurance finance expense		—			—			—			—			—			(55,895	)		—			(381,106	)		—			—			(437,001	)
Net other operating income (expenses)		(827,167	)		603,919			(1,168,109	)		(1,391,357	)		160,617			(43,121	)		(402,930	)		111,750			(377,877	)		69,907			(1,873,011	)
General and administrative expenses	￦	(2,004,769	)	￦	(1,984,805	)	￦	(644,744	)	￦	(4,634,318	)	￦	(980,340	)	￦	(140,270	)	￦	(641,283	)	￦	(147,517	)	￦	(522,641	)	￦	127,745		￦	(6,938,624	)
Operating income (expenses) before provision for credit losses		3,368,107			2,180,641			530,204			6,078,952			840,275			1,134,640			1,406,987			217,680			1,023,216			(612,203	)		10,089,547
Reversal (provision) of credit losses		(482,326	)		(196,996	)		(765	)		(680,087	)		(66,978	)		1,945			(892,871	)		712			(414,498	)		7,491			(2,044,286	)
Net operating income (expenses)		2,885,781			1,983,645			529,439			5,398,865			773,297			1,136,585			514,116			218,392			608,718			(604,712	)		8,045,261
Share of profit (loss) of associates and joint ventures		—			—			7,402			7,402			(35,156	)		2,272			1,238			(259	)		(282	)		7,901			(16,884	)
Net other non-operating income (expenses)		(61,903	)		—			(899,066	)		(960,969	)		3,059			(12,950	)		9,755			6,694			(46,838	)		(41,881	)		(1,043,130	)
Segment profit (loss) before income tax expense		2,823,878			1,983,645			(362,225	)		4,445,298			741,200			1,125,907			525,109			224,827			561,598			(638,692	)		6,985,247
Income tax benefit (expense)		(927,629	)		(523,682	)		157,415			(1,293,896	)		(156,310	)		(286,340	)		(133,621	)		(60,555	)		(88,651	)		62,732			(1,956,641	)

Profit (loss) for the year	￦	1,896,249		￦	1,459,963		￦	(204,810	)	￦	3,151,402		￦	584,890		￦	839,567		￦	391,488		￦	164,272		￦	472,947		￦	(575,960	)	￦	5,028,606

Profit (loss) attributable to shareholders of the Parent Company	￦	1,877,266		￦	1,459,963		￦	(85,470	)	￦	3,251,759		￦	585,682		￦	839,494		￦	402,715		￦	164,272		￦	470,606		￦	(636,307	)	￦	5,078,221
Profit (loss) attributable to non-controlling interests		18,983			—			(119,340	)		(100,357	)		(792	)		73			(11,227	)		—			2,341			60,347			(49,615	)
Total assets*		239,124,552			176,075,559			147,687,069			562,887,180			63,384,388			40,776,375			30,541,628			34,047,554			64,172,457			(37,964,050	)		757,845,532
Total liabilities*		222,291,921			210,839,098			91,728,841			524,859,860			56,498,405			34,982,352			25,236,826			30,984,398			27,995,907			(2,527,397	)		698,030,351

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5.1 Overall Segment Information and Business Segments (cont’d)


(In millions of Korean won)
	2025
	Banking business												Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
	Corporate banking			Retail banking			Other banking services			Sub-total			Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total

Net operating revenues (expenses) from external customers	￦	4,689,401		￦	3,972,906		￦	2,394,979		￦	11,057,286		￦	2,201,966		￦	1,244,693		￦	1,910,627		￦	342,687		￦	1,187,903		￦	—		￦	17,945,162
Intersegment net operating revenues (expenses)		147,541			—			198,221			345,762			(133,348	)		74,857			(100,308	)		43,025			466,350			(696,338	)		—

	￦	4,836,942		￦	3,972,906		￦	2,593,200		￦	11,403,048		￦	2,068,618		￦	1,319,550		￦	1,810,319		￦	385,712		￦	1,654,253		￦	(696,338	)	￦	17,945,162

Net interest income (expenses)	￦	5,840,658		￦	3,626,216		￦	1,190,928		￦	10,657,802		￦	631,520		￦	(12,343	)	￦	1,593,320		￦	(102,702	)	￦	522,688		￦	(217,192	)	￦	13,073,093
Interest income		11,132,170			7,506,269			3,223,908			21,862,347			1,764,146			1,008,620			2,374,134			698,192			1,537,094			(88,433	)		29,156,100
Interest expense		(5,291,512	)		(3,880,053	)		(2,032,980	)		(11,204,545	)		(1,132,626	)		(1,020,963	)		(780,814	)		(800,894	)		(1,014,406	)		(128,759	)		(16,083,007	)
Net fee and commission income (expenses)		457,324			332,628			413,567			1,203,519			951,059			(37,244	)		708,524			15,040			1,302,355			(44,966	)		4,098,287
Fee and commission income		654,184			478,964			510,392			1,643,540			1,228,568			7,843			1,751,097			24,440			1,455,201			(337,168	)		5,773,521
Fee and commission expense		(196,860	)		(146,336	)		(96,825	)		(440,021	)		(277,509	)		(45,087	)		(1,042,573	)		(9,400	)		(152,846	)		292,202			(1,675,234	)
Net insurance income (expenses)		—			—			—			—			—			766,635			6,771			464,304			—			65,663			1,303,373
Insurance income		—			—			—			—			—			11,388,443			13,590			1,019,925			—			(45,412	)		12,376,546
Insurance expense		—			—			—			—			—			(10,621,808	)		(6,819	)		(555,621	)		—			111,075			(11,073,173	)
Net gains (losses) on financial instruments at fair value through profit or loss		(1,448	)		—			933,790			932,342			427,374			514,300			10,687			1,172,272			594,226			(270,996	)		3,380,205
Net other insurance finance expense		—			—			—			—			—			46,283			—			(1,073,004	)		—			—			(1,026,721	)
Net other operating income (expenses)		(1,459,592	)		14,062			54,915			(1,390,615	)		58,665			41,919			(508,983	)		(90,198	)		(765,016	)		(228,847	)		(2,883,075	)
General and administrative expenses	￦	(1,941,244	)	￦	(1,860,412	)	￦	(847,660	)	￦	(4,649,316	)	￦	(1,070,482	)	￦	(161,447	)	￦	(606,306	)	￦	(170,723	)	￦	(535,421	)	￦	129,122		￦	(7,064,573	)
Operating income (expenses) before provision for credit losses		2,895,698			2,112,494			1,745,540			6,753,732			998,136			1,158,103			1,204,013			214,989			1,118,832			(567,216	)		10,880,589
Reversal (provision) of credit losses		(820,198	)		(201,844	)		(10,914	)		(1,032,956	)		(94,018	)		(18,512	)		(765,040	)		(1,423	)		(452,201	)		1,272			(2,362,878	)
Net operating income (expenses)		2,075,500			1,910,650			1,734,626			5,720,776			904,118			1,139,591			438,973			213,566			666,631			(565,944	)		8,517,711
Share of profit (loss) of associates and joint ventures		—			—			75,804			75,804			(8,489	)		3,981			1,205			(146	)		12,155			(57,658	)		26,852
Net other non-operating income (expenses)		(7,121	)		—			(474,240	)		(481,361	)		3,835			(1,729	)		(8,207	)		13,592			149,134			(36,681	)		(361,417	)
Segment profit (loss) before income tax expense		2,068,379			1,910,650			1,336,190			5,315,219			899,464			1,141,843			431,971			227,012			827,920			(660,283	)		8,183,146
Income tax benefit (expense)		(528,075	)		(465,397	)		(496,928	)		(1,490,400	)		(222,958	)		(363,176	)		(102,993	)		(87,683	)		(106,754	)		31,533			(2,342,431	)

Profit (loss) for the year	￦	1,540,304		￦	1,445,253		￦	839,262		￦	3,824,819		￦	676,506		￦	778,667		￦	328,978		￦	139,329		￦	721,166		￦	(628,750	)	￦	5,840,715

Profit (loss) attributable to shareholders of the Parent Company	￦	1,533,813		￦	1,445,253		￦	873,100		￦	3,852,166		￦	673,856		￦	778,228		￦	330,226		￦	139,329		￦	719,526		￦	(660,169	)	￦	5,833,162
Profit (loss) attributable to non-controlling interests		6,491			—			(33,838	)		(27,347	)		2,650			439			(1,248	)		—			1,640			31,419			7,553
Total assets*		244,324,619			182,734,005			157,876,343			584,934,967			76,461,426			45,377,597			30,235,710			35,585,902			66,608,064			(41,280,633	)		797,923,033
Total liabilities*		227,897,241			217,055,771			101,026,314			545,979,326			69,572,471			39,725,458			24,597,933			32,795,927			28,844,053			(4,422,124	)		737,093,044

*	Assets and liabilities of the reporting segments are amounts before intersegment transactions.

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5.2 Services and Geographical Segments

5.2.1 Services information

Net operating revenues from external customers by service for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023		2024		2025

Banking service	￦	10,115,516	￦	10,084,160	￦	11,057,286
Securities service		1,667,041		1,772,379		2,201,966
Non-life insurance service		1,120,156		1,447,658		1,244,693
Credit card service		2,026,032		2,107,801		1,910,627
Life insurance service		191,097		366,433		342,687
Others		1,058,994		1,249,740		1,187,903

	￦	16,178,836	￦	17,028,171	￦	17,945,162

5.2.2 Geographical information

Geographical net operating revenues from external customers for the years ended December 31, 2023, 2024 and 2025 and major

non-current

assets as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	Net operating revenues from external customers						Major non-current assets
	2023		2024		2025		December 31, 2024		December 31, 2025

Domestic	￦	14,763,248	￦	15,530,844	￦	16,368,513	￦	9,915,068	￦	8,977,713
United States		75,944		128,325		79,615		35,576		31,788
New Zealand		12,611		12,580		1,013		829		597
China		177,175		167,621		165,709		22,271		22,657
Cambodia		572,858		595,562		690,871		101,879		96,493
United Kingdom		52,372		71,545		73,297		9,023		10,572
Indonesia		327,599		320,741		320,419		430,632		466,781
Others		197,029		200,953		245,725		35,746		29,490
Consolidation adjustments		—		—		—		564,851		331,317

	￦	16,178,836	￦	17,028,171	￦	17,945,162	￦	11,115,875	￦	9,967,408

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6. Financial Assets and Financial Liabilities

6.1 Classification and Fair Value of Financial Instruments

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Carrying amount		Fair value

Financial assets
Cash and due from financial institutions	￦	29,869,111	￦	29,869,335
Financial assets at fair value through profit or loss:		79,450,093		79,450,093
Due from financial institutions		59,838		59,838
Debt securities		73,768,636		73,768,636
Equity securities		4,275,337		4,275,337
Loans		1,187,763		1,187,763
Others		158,519		158,519
Derivatives held for trading		10,954,870		10,954,870
Derivatives held for hedging		775,897		775,897
Loans measured at amortized cost		472,071,840		473,234,273
Securities measured at amortized cost		37,113,552		36,572,012
Financial assets at fair value through other comprehensive income:		93,895,912		93,895,912
Debt securities		88,735,996		88,735,996
Equity securities		3,713,288		3,713,288
Loans		1,446,628		1,446,628
Other financial assets		14,404,227		14,404,227

	￦	738,535,502	￦	739,156,619

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	2,717,732	￦	2,717,732
Financial liabilities designated at fair value through profit or loss		8,002,499		8,002,499
Derivatives held for trading		11,409,695		11,409,695
Derivatives held for hedging		373,799		373,799
Deposits		435,687,897		435,991,820
Borrowings		68,077,012		68,046,196
Debentures		76,171,257		76,583,392
Other financial liabilities		33,594,883		33,594,883

	￦	636,034,774	￦	636,720,016

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6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	December 31, 2025
	Carrying amount		Fair value
Financial assets
Cash and due from financial institutions	￦	34,776,877	￦	34,775,543
Financial assets at fair value through profit or loss:		89,862,530		89,862,530
Due from financial institutions		64,438		64,438
Debt securities		80,553,348		80,553,348
Equity securities		7,601,453		7,601,453
Loans		1,231,012		1,231,012
Others		412,279		412,279
Derivatives held for trading		7,748,371		7,748,371
Derivatives held for hedging		429,685		429,685
Loans measured at amortized cost		491,978,044		493,706,126
Securities measured at amortized cost		35,067,192		34,483,439
Financial assets at fair value through other comprehensive income:		99,919,485		99,919,485
Debt securities		93,312,419		93,312,419
Equity securities		4,611,983		4,611,983
Loans		1,995,083		1,995,083
Other financial assets		19,069,696		19,069,696

	￦	778,851,880	￦	779,994,875

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	3,339,572	￦	3,339,572
Financial liabilities designated at fair value through profit or loss		7,981,018		7,981,018
Derivatives held for trading		7,687,305		7,687,305
Derivatives held for hedging		546,984		546,984
Deposits		462,397,026		462,628,538
Borrowings		70,728,396		70,659,088
Debentures		80,049,270		80,201,757
Other financial liabilities		40,469,257		40,469,257

	￦	673,198,828	￦	673,513,519

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Group discloses the fair value of each class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is a quoted price in an active market.

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6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2025, are as follows (cont’d):

Methods of determining fair value of financial instruments are as follows:


Cash and due from financial institutions		Fair value of cash is same as carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable on demand. Fair value of general deposit is measured using Discounted Cash Flow (“DCF”) Model.

Securities		Fair value of securities and others that are traded in an active market is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments among DCF Model, Free Cash Flow to Equity Model, Comparable Company Analysis, Dividend Discount Model, Risk Adjusted Discount Rate Method, and Net Asset Value Method.

Loans		Fair value of loans is determined using DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.

Derivatives and financial instruments at fair value through profit or loss		Fair value of exchange traded derivatives is determined using quoted price in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Group uses internally developed valuation models that are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including Finite Difference Method (“FDM”), MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Closed Form, and Tree Model or valuation results from independent external professional valuation institutions.

Deposits		Carrying amount of demand deposits is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of time deposits is determined using DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.

Borrowings		Carrying amount of overdrafts in foreign currency is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of other borrowings is determined using DCF Model.

Debentures		Fair value is determined using valuation results of external professional valuation institutions, which are calculated using market inputs.

Other financial assets and other financial liabilities		Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions and their maturities are relatively short or not defined.

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6.1.2 Fair value hierarchy

The Group believes that valuation techniques used for measuring the fair value of financial instruments are reasonable and that the fair value recognized in the consolidated statement of financial position is appropriate. However, the fair value of the financial instruments recognized in the consolidated statement of financial position may be different if other valuation techniques or assumptions are used. Additionally, as there are a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

The Group classifies and discloses fair value of the financial instruments into the three fair value levels as follows:

Level 1: The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: The fair values are based on unobservable inputs for the asset or liability.

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement would be categorized within Level 3 of the fair value hierarchy.

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6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position

Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3		Total

Financial assets
Financial assets at fair value through profit or loss:	￦	25,554,893	￦	33,768,117	￦	20,127,083	￦	79,450,093
Due from financial institutions		—		—		59,838		59,838
Debt securities		22,775,948		33,630,189		17,362,499		73,768,636
Equity securities		2,620,426		137,928		1,516,983		4,275,337
Loans		—		—		1,187,763		1,187,763
Others		158,519		—		—		158,519
Derivatives held for trading		20,637		10,682,718		251,515		10,954,870
Derivatives held for hedging		—		775,897		—		775,897
Financial assets at fair value through other comprehensive income:		43,858,598		48,537,327		1,499,987		93,895,912
Debt securities		43,319,466		45,416,530		—		88,735,996
Equity securities		539,132		1,674,169		1,499,987		3,713,288
Loans		—		1,446,628		—		1,446,628

	￦	69,434,128	￦	93,764,059	￦	21,878,585	￦	185,076,772

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	2,717,732	￦	—	￦	—	￦	2,717,732
Financial liabilities designated at fair value through profit or loss		300,489		1,529,492		6,172,518		8,002,499
Derivatives held for trading		353,074		10,458,585		598,036		11,409,695
Derivatives held for hedging		—		373,799		—		373,799

	￦	3,371,295	￦	12,361,876	￦	6,770,554	￦	22,503,725

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6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)


(In millions of Korean won)	December 31, 2025
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3		Total

Financial assets
Financial assets at fair value through profit or loss:	￦	32,165,510	￦	35,812,155	￦	21,884,865	￦	89,862,530
Due from financial institutions		—		—		64,438		64,438
Debt securities		26,010,266		35,590,894		18,952,188		80,553,348
Equity securities		5,742,965		221,261		1,637,227		7,601,453
Loans		—		—		1,231,012		1,231,012
Others		412,279		—		—		412,279
Derivatives held for trading		174,420		7,360,773		213,178		7,748,371
Derivatives held for hedging		—		429,685		—		429,685
Financial assets at fair value through other comprehensive income:		49,129,214		48,982,122		1,808,149		99,919,485
Debt securities		48,548,227		44,764,192		—		93,312,419
Equity securities		580,987		2,222,847		1,808,149		4,611,983
Loans		—		1,995,083		—		1,995,083

	￦	81,469,144	￦	92,584,735	￦	23,906,192	￦	197,960,071

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	3,339,572	￦	—	￦	—	￦	3,339,572
Financial liabilities designated at fair value through profit or loss		507,900		1,391,155		6,081,963		7,981,018
Derivatives held for trading		226,234		7,036,258		424,813		7,687,305
Derivatives held for hedging		—		546,984		—		546,984

	￦	4,073,706	￦	8,974,397	￦	6,506,776	￦	19,554,879

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6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the consolidated statements of financial position as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	Fair value		Valuation techniques	Inputs

Financial assets
Financial assets at fair value through profit or loss:	￦	33,768,117
Debt securities		33,630,189	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, Binomial Model, and others	Projected cash flow, Fair value of underlying asset, Dividend yield, Price of underlying asset, Interest rate, Discount rate, Volatility, Correlation coefficient, and others
Equity securities		137,928	DCF Model	Interest rate, Discount rate, and others
Derivatives held for trading		10,682,718	DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Option Model, and others	Price of underlying asset, Underlying asset index, Interest rate, Volatility, Foreign exchange rate, Discount rate, and others
Derivatives held for hedging		775,897	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange rate, CRS interest rate, and others
Financial assets at fair value through other comprehensive income:		48,537,327
Debt securities		45,416,530	DCF Model, Option Model	Underlying asset index, Interest rate, Discount rate, and others
Equity securities		1,674,169	DCF Model	Interest rate, Discount rate
Loans		1,446,628	DCF Model	Discount rate

	￦	93,764,059


Financial liabilities
Financial liabilities designated at fair value through profit or loss	￦	1,529,492	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, and others	Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate
Derivatives held for trading		10,458,585	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, and others	Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate, Volatility, and others
Derivatives held for hedging		373,799	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange rate, Risk free interest rate, and others

	￦	12,361,876

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6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)

(In millions of Korean won)


	December 31, 2025
	Fair value		Valuation techniques	Inputs

Financial assets
Financial assets at fair value through profit or loss:	￦	35,812,155
Debt securities		35,590,894	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, Binomial Model, and others	Projected cash flow, Fair value of underlying asset, Dividend yield, Price of underlying asset, Interest rate, Discount rate, Volatility, Correlation coefficient, and others
Equity securities		221,261	DCF Model	Interest rate, Discount rate, and others
Derivatives held for trading		7,360,773	DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Option Model, and others	Price of underlying asset, Underlying asset index, Interest rate, Volatility, Foreign exchange rate, Discount rate, and others
Derivatives held for hedging		429,685	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Volatility, Foreign exchange rate, Risk free interest rate, and others
Financial assets at fair value through other comprehensive income:		48,982,122
Debt securities		44,764,192	DCF Model, Option Model, Hull-white Model	Underlying asset index, Interest rate, Discount rate, and others
Equity securities		2,222,847	DCF Model	Interest rate, Discount rate, and others
Loans		1,995,083	DCF Model	Discount rate

	￦	92,584,735


Financial liabilities
Financial liabilities designated at fair value through profit or loss	￦	1,391,155	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, and others	Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate
Derivatives held for trading		7,036,258	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, and others	Price of underlying asset, Interest rate, Foreign exchange rate, Credit spread, Discount rate, Volatility, and others
Derivatives held for hedging		546,984	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Volatility, Foreign exchange rate, Risk free interest rate, and others

	￦	8,974,397

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6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3		Total

Financial assets
Cash and due from financial institutions 1	￦	2,353,334	￦	24,731,260	￦	2,784,741	￦	29,869,335
Loans measured at amortized cost		—		106,823		473,127,450		473,234,273
Securities measured at amortized cost 2		4,746,587		31,799,265		26,160		36,572,012
Other financial assets 2		—		—		14,404,227		14,404,227

	￦	7,099,921	￦	56,637,348	￦	490,342,578	￦	554,079,847

Financial liabilities
Deposits 1	￦	—	￦	174,567,804	￦	261,424,016	￦	435,991,820
Borrowings 3		—		4,441,612		63,604,584		68,046,196
Debentures		—		67,455,577		9,127,815		76,583,392
Other financial liabilities 2		—		—		33,594,883		33,594,883

	￦	—	￦	246,464,993	￦	367,751,298	￦	614,216,291


(In millions of Korean won)	December 31, 2025
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3		Total

Financial assets
Cash and due from financial institutions 1	￦	2,443,177	￦	30,509,973	￦	1,822,393	￦	34,775,543
Loans measured at amortized cost		—		78,800		493,627,326		493,706,126
Securities measured at amortized cost 2		3,728,583		30,729,485		25,371		34,483,439
Other financial assets 2		—		—		19,069,696		19,069,696

	￦	6,171,760	￦	61,318,258	￦	514,544,786	￦	582,034,804

Financial liabilities
Deposits 1	￦	—	￦	189,727,760	￦	272,900,778	￦	462,628,538
Borrowings 3		—		3,063,522		67,595,566		70,659,088
Debentures		—		70,382,029		9,819,728		80,201,757
Other financial liabilities 2		—		—		40,469,257		40,469,257

	￦	—	￦	263,173,311	￦	390,785,329	￦	653,958,640

1	The amounts included in Level 2 are the carrying amounts which are reasonable approximations of fair value.

2	The amounts included in Level 3 are the carrying amounts which are reasonable approximations of fair value.

3	Borrowings of ￦ 15,155 million and ￦ 731 million included in Level 2 are the carrying amounts which are reasonable approximations of fair value as of December 31, 2024 and 2025, respectively.

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6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)

For financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, valuation techniques and inputs are not disclosed.

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)

December 31, 2024

Fair value

Valuation techniques

Inputs

Financial assets

Loans measured at amortized cost

￦

106,823

DCF Model

Discount rate

Securities measured at amortized cost

31,799,265

DCF Model, MonteCarlo
Simulation

Discount rate,
Interest rate

￦

31,906,088

Financial liabilities

Borrowings

￦

4,426,457

DCF Model

Discount rate

Debentures

67,455,577

DCF Model

Discount rate

￦

71,882,034

(In millions of Korean won)

December 31, 2025

Fair value

Valuation techniques

Inputs

Financial assets

Loans measured at amortized cost

￦

78,800

DCF Model

Discount rate

Securities measured at amortized cost

30,729,485

DCF Model, MonteCarlo
Simulation

Discount rate,
Interest rate

￦

30,808,285

Financial liabilities

Borrowings

￦

3,062,791

DCF Model

Discount rate

Debentures

70,382,029

DCF Model

Discount rate

￦

73,444,820

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6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 3, and whose fair value is disclosed as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Fair value		Valuation techniques	Inputs

Financial assets
Cash and due from financial institutions	￦	2,784,741	DCF Model	Credit spread, Other spread, Interest rate, Discount rate
Loans measured at amortized cost		473,127,450	DCF Model	Credit spread, Other spread, Prepayment rate, Interest rate, Discount rate, and others

	￦	475,912,191

Financial liabilities
Deposits	￦	261,424,016	DCF Model	Other spread, Prepayment rate, Interest rate, Discount rate
Borrowings		63,604,584	DCF Model	Other spread, Contractual cash flows, Discount rate
Debentures		9,127,815	DCF Model	Contractual cash flows, Discount rate, and others

	￦	334,156,415


(In millions of Korean won)	December 31, 2025
	Fair value		Valuation techniques	Inputs

Financial assets
Cash and due from financial institutions	￦	1,822,393	DCF Model	Credit spread, Other spread, Interest rate, Discount rate
Loans measured at amortized cost		493,627,326	DCF Model	Credit spread, Other spread, Prepayment rate, Interest rate, Discount rate, and others

	￦	495,449,719

Financial liabilities
Deposits	￦	272,900,778	DCF Model	Other spread, Prepayment rate, Interest rate, Discount Rate
Borrowings		67,595,566	DCF Model	Other spread, Contractual cash flows, Discount rate, Interest rate
Debentures		9,819,728	DCF Model	Contractual cash flows, Discount rate, and others

	￦	350,316,072

6.2 Disclosure of Fair Value Hierarchy Level 3

6.2.1 Valuation policy and process of Level 3 fair value

The Group uses external, independent and qualified valuation service in addition to internal valuation models to determine the fair value of financial instruments at the end of every reporting period.

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6.2.1 Valuation policy and process of Level 3 fair value (cont’d)

If the changes in situation and events which cause transfers between the fair value hierarchy level for a financial asset or liability occur, the Group’s policy is to recognize such transfers as having occurred at the beginning of the reporting period.

6.2.2 Changes in fair value (Level 3) measured using valuation technique based on unobservable inputs in the market

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Financial assets at fair value through profit or loss								Financial investments			Financial liabilities at fair value through profit or loss			Net derivative financial instruments
	Due from financial institutions measured at fair value through profit or loss		Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss			Equity securities measured at fair value through other comprehensive income			Financial liabilities designated at fair value through profit or loss			Derivatives held for trading

Beginning	￦	53,791	￦	17,986,748		￦	183,490		￦	1,450,908		￦	(7,028,486	)	￦	(666,734	)
Total gains or losses:
Profit or loss		6,047		488,988			44,863			—			(268,251	)		(256,240	)
Other comprehensive income (loss)		—		2			—			(197,070	)		(10,816	)		—
Purchases		—		3,820,317			1,493,924			246,560			—			5,042
Sales		—		(3,280,871	)		(534,676	)		(411	)		—			(5,362	)
Issues		—		—			—			—			(4,200,664	)		(2,960	)
Settlements		—		—			—			—			5,335,699			579,732
Transfers into Level 3 *		—		6,142			162			—			—			—
Transfers out of Level 3 *		—		(141,844	)		—			—			—			—

Ending	￦	59,838	￦	18,879,482		￦	1,187,763		￦	1,499,987		￦	(6,172,518	)	￦	(346,522	)

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6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Financial assets at fair value through profit or loss								Financial investments			Financial liabilities at fair value through profit or loss			Net derivative financial instruments
	Due from financial institutions measured at fair value through profit or loss		Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss			Equity securities measured at fair value through other comprehensive income			Financial liabilities designated at fair value through profit or loss			Derivatives held for trading

Beginning	￦	59,838	￦	18,879,482		￦	1,187,763		￦	1,499,987		￦	(6,172,518	)	￦	(346,522	)
Total gains or losses:
Profit or loss		4,600		481,169			(27,174	)		—			(399,502	)		28,130
Other comprehensive income (loss)				—						183,810			(2,871	)		—
Purchases				4,833,317			3,182,684			219,861			—			11
Sales				(3,554,084	)		(3,112,261	)		(87,718	)		—			(100	)
Issues				—						—			(4,566,704	)		(6,709	)
Settlements				—						—			5,059,632			117,965
Transfers into Level 3 *				7,518						—			—			—
Transfers out of Level 3 *				(57,987	)					(7,791	)		—			(4,410	)

Ending	￦	64,438	￦	20,589,415		￦	1,231,012		￦	1,808,149		￦	(6,081,963	)	￦	(211,635	)

*	Transfers into or out of Level 3 of the fair value hierarchy occurred due to the change in the availability of observable market data.

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6.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the years ended December 31, 2023, 2024 and 2025, are as follows:

(In millions of Korean won)


	2023							2024
	Net gains on financial instruments at fair value through profit or loss			Other operating income (expense)		Net interest income		Net gains on financial instruments at fair value through profit or loss		Other operating income (expense)		Net interest income

Total gains (losses) recognized in profit or loss for the period	￦	(107,729	)	￦	38,196	￦	—	￦	(364,765)	￦	380,172	￦	—
Total gains (losses) recognized in profit or loss from financial instruments held at the end of the reporting period		267,666			56,810		—		(45,787)		322,839		—

(In millions of Korean won)


	2025
	Net gains on financial instruments at fair value through profit or loss		Other operating income (expense)			Net interest income


Total gains(losses) recognized in profit or loss for the period	￦	125,170	￦	(37,947	)	￦	—
Total gains (losses) recognized in profit or loss from financial instruments held at the end of the reporting period		283,938		(24,367	)		—

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6.2.3 Sensitivity analysis of changes in unobservable inputs

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)

December 31, 2024

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of unobservable inputs to
fair value

Financial assets

Financial assets at fair value through profit or loss:

Due from financial institutions

￦

59,838

Hull-white Model

Volatility

0.46 ~ 0.62

The higher the volatility, the higher the fair value

Debt securities

17,362,499

DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others

Growth rate

1.00 ~ 3.00

The higher the growth rate, the higher the fair value

Volatility

0.46 ~ 76.22

The higher the volatility, the higher the fair value fluctuation

Discount rate

0.00 ~ 15.53

The lower the discount rate, the higher the fair value

Volatility of Stock price

10.00 ~ 29.90

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

90.00

The higher the correlation coefficient, the higher the fair value fluctuation

Liquidation value

-1.00 ~ 1.00

The higher the liquidation value, the higher the fair value

Recovery rate

40.00

The higher the recovery rate, the higher the fair value

Rate of real estate price fluctuation

-1.00 ~ 1.00

The higher the sale price of real estate, the higher the fair value

Equity securities

1,516,983

Income Approach, Market Value Approach, Asset Value Approach, DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Dividend Discount Model, Usage of Past Transactions, Binomial Model, and others

Growth rate

0.00 ~ 1.00

The higher the growth rate, the higher the fair value

Discount rate

5.90 ~ 33.90

The lower the discount rate, the higher the fair value

Volatility

0.50 ~ 0.71

The higher the volatility, the higher the fair value fluctuation

Loans

1,187,763

DCF Model

Discount rate

8.54

The lower the discount rate, the higher the fair value

Derivatives held for trading:

Stock and index

￦

30,246

DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model, Net Asset Value Method

Volatility of underlying asset

18.85 ~ 65.13

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-58.46 ~ 74.20

The higher the correlation coefficient, the higher the fair value fluctuation

F-94

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6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)

December 31, 2024

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of unobservable inputs to
fair value

Currency, interest rate, and others

221,269

DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form

Volatility

0.57 ~ 25.22

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-58.46 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

Financial assets at fair value through other comprehensive income:

Equity securities

1,499,987

DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, IMV Model, Income Approach, Net Asset Value Method, Market Approach, Tree Model, Monte Carlo Simulation, and others

Growth rate

0.00 ~ 1.00

The higher the growth rate, the higher the fair value

Discount rate

6.01 ~ 16.00

The lower the discount rate, the higher the fair value

Volatility

0.50 ~ 31.79

The higher the volatility, the higher the fair value fluctuation

￦

21,878,585

F-95

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6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)

December 31, 2024

Fair value

Valuation techniques

Unobservable inputs

Range of

unobservable

inputs (%)

Relationship of unobservable inputs to
fair value

Financial liabilities

Financial liabilities designated at fair value through profit or loss:

Derivative-linked securities

￦

6,172,518

DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others

Volatility of underlying asset

0.51 ~ 65.13

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-58.46 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

Derivatives held for trading:

Stock and index

159,769

DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others

Volatility of underlying asset

0.57 ~ 58.87

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-58.46 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

Others

438,267

DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form

Discount rate

3.70 ~ 3.74

The lower the discount rate, the higher the fair value

Volatility of underlying asset

0.51 ~ 57.61

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-26.22 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

￦

6,770,554

F-96

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6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)

December 31, 2025

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of unobservable inputs to
fair value

Financial assets

Financial assets at fair value through profit or loss:

Due from financial institutions

￦

64,438

Hull-white Model

Volatility

0.50

The higher the volatility, the higher the fair value

Debt securities

18,952,188

DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Income Approach, Market Value Approach, and others

Growth rate

1.00 ~ 3.00

The higher the growth rate, the higher the fair value

Volatility

0.50 ~ 63.60

The higher the volatility, the higher the fair value fluctuation

Discount rate

1.86 ~ 12.88

The lower the discount rate, the higher the fair value

Volatility of Stock price

10.00 ~ 34.17

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-57.80 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

Liquidation value

-1.00 ~ 1.00

The higher the liquidation value, the higher the fair value

Recovery rate

40.00

The higher the recovery rate, the higher the fair value

Rate of real estate price fluctuation

0.00

The higher the sale price of real estate, the higher the fair value

Equity securities

1,637,227

Growth rate

0.00 ~ 1.00

The higher the growth rate, the higher the fair value

Discount rate

7.22 ~ 14.92

The lower the discount rate, the higher the fair value

Volatility

0.46 ~ 78.10

The higher the volatility, the higher the fair value fluctuation

Loans

1,231,012

DCF Model

Discount rate

5.27 ~ 8.93

The lower the discount rate, the higher the fair value

F-97

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6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)

December 31, 2025

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of unobservable inputs to fair value

Derivatives held for trading:

Stock and index

￦

191,383

DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model, Net Asset Value Method

Volatility of underlying asset

3.00 ~ 59.38

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-57.80 ~ 74.14

The higher the correlation coefficient, the higher the fair value fluctuation

Currency, interest rate, and others

21,795

DCF Model, Hull-white Model, MonteCarlo Simulation, Closed form

Volatility

0.54 ~ 0.80

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

14.91 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

Financial assets at fair value through other comprehensive income:

Equity securities

1,808,149

DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, IMV Model, Income Approach, Net Asset Value Method, Market Value Approach, Tree Model, Monte Carlo Simulation, and others

Growth rate

0.00 ~ 1.00

The higher the growth rate, the higher the fair value

Discount rate

4.82 ~ 17.33

The lower the discount rate, the higher the fair value

Volatility

0.50 ~ 26.47

The higher the volatility, the higher the fair value fluctuation

￦

23,906,192

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6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)

December 31, 2025

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of unobservable inputs to fair value

Financial liabilities

Financial liabilities designated at fair value through profit or loss:

Derivative-linked securities

￦

6,081,963

DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others

Volatility of underlying asset

0.54 ~ 60.16

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-57.80 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

Derivatives held for trading:

Stock and index

45,370

DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others

Volatility of underlying asset

22.48 ~ 60.16

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-57.80 ~ 74.14

The higher the correlation coefficient, the higher the fair value fluctuation

Others

379,443

DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form

Discount rate

3.20

The lower the discount rate, the higher the fair value

Volatility of underlying asset

0.54 ~ 23.36

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-24.89 ~ 100.00

The higher the correlation coefficient, the higher the fair value fluctuation

￦

6,506,776

F-99

6.2.3.2 Sensitivity analysis of changes in unobservable inputs (cont’d)


(In millions of Korean won)	December 31, 2025
	Profit or loss					Other comprehensive income or loss
	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss: 1
Due from financial institutions	￦	11	￦	(11	)	￦	—	￦	—
Debt securities 4		108,191		(107,444	)		—		—
Equity securities 3		38,454		(24,736	)		—		—
Loans 5		4,467		(3,416	)		—		—
Derivatives held for trading 2		6,820		(7,209	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities 3		—		—			57,358		(38,779	)

	￦	157,943	￦	(142,816	)	￦	57,358	￦	(38,779	)

Financial liabilities
Financial liabilities designated at fair value through profit or loss 1	￦	14,921	￦	(13,977	)	￦	—	￦	—
Derivatives held for trading 2		9,346		(10,111	)		—		—

	￦	24,267	￦	(24,088	)	￦	—	￦	—

For financial instruments at fair value through profit or loss, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate, recovery rate, liquidation value, growth rate by ±1%p and volatility of underlying asset by ±1%p or ±10% and correlation coefficient by ±10%.

2	For derivative financial instruments, changes in fair value are calculated by shifting principal unobservable input parameters such as price of underlying asset and volatility by +3% or ± 10%.

3	For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p) and growth rate (-1%p~1%p).

For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting rate of real estate price fluctuation by -1%p~1%p, and for beneficiary certificates whose underlying assets are equity investments, changes in fair value are calculated by shifting principal unobservable input parameters such as liquidation value by -1%p~1%p and discount rate by -1%p~1%p. There is no significant correlation among major unobservable inputs.

5	For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate by -1%p~1%p.

6.2.4 Day one gains or losses

When the Group measures the fair value of OTC derivatives using inputs that are not based on observable market data, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price, and the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. When the fair value of the financial instruments is subsequently determined using observable market inputs, the remaining deferred amount is recognized in profit or loss.

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6.2.4 Day one gains or losses (cont’d)

Changes in deferred day one gains or losses for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024			2025
Balance at the beginning of the year	￦	23,430		￦	12,141
New transactions		49,078			78,864
Changes during the year		(60,367	)		(58,271	)

Balance at the end of the year	￦	12,141		￦	32,734

6.3 Carrying Amount of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortized cost. Carrying amount of financial assets and liabilities by category as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total

Financial assets
Cash and due from financial institutions	￦	—	￦	—	￦	—	￦	29,869,111	￦	—	￦	29,869,111
Financial assets at fair value through profit or loss		79,450,093		—		—		—		—		79,450,093
Derivative financial assets		10,954,870		—		—		—		775,897		11,730,767
Loans measured at amortized cost		—		—		—		472,071,840		—		472,071,840
Financial investments		—		90,182,623		3,713,289		37,113,552		—		131,009,464
Other financial assets		—		—		—		14,404,227		—		14,404,227

	￦	90,404,963	￦	90,182,623	￦	3,713,289	￦	553,458,730	￦	775,897	￦	738,535,502

(

In millions of Korean won)


	December 31, 2024
	Financial instruments at fair value through profit or loss		Financial instruments designated at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	2,717,732	￦	8,002,499	￦	—	￦	—	￦	10,720,231
Derivative financial liabilities		11,409,695		—		—		373,799		11,783,494
Deposits		—		—		435,687,897		—		435,687,897
Borrowings		—		—		68,077,012		—		68,077,012
Debentures		—		—		76,171,257		—		76,171,257
Other financial liabilities*		—		—		33,594,883		—		33,594,883

	￦	14,127,427	￦	8,002,499	￦	613,531,049	￦	373,799	￦	636,034,774

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6.3 Carrying Amount of Financial Instruments by Category (cont’d)

(In millions of Korean won)


	December 31, 2025
	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total

Financial assets
Cash and due from financial institutions	￦	—	￦	—	￦	—	￦	34,776,877	￦	—	￦	34,776,877
Financial assets at fair value through profit or loss		89,862,530		—		—		—		—		89,862,530
Derivative financial assets		7,748,371		—		—		—		429,685		8,178,056
Loans measured at amortized cost		—		—		—		491,978,044		—		491,978,044
Financial investments		—		95,307,502		4,611,983		35,067,192		—		134,986,677
Other financial assets		—		—		—		19,069,696		—		19,069,696

	￦	97,610,901	￦	95,307,502	￦	4,611,983	￦	580,891,809	￦	429,685	￦	778,851,880

(In millions of Korean won)


	December 31, 2025
	Financial instruments at fair value through profit or loss		Financial instruments designated at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total

Financial liabilities
Financial liabilities at fair value through profit or loss	￦	3,339,572	￦	7,981,018	￦	—	￦	—	￦	11,320,590
Derivative financial liabilities		7,687,305		—		—		546,984		8,234,289
Deposits		—		—		462,397,026		—		462,397,026
Borrowings		—		—		70,728,396		—		70,728,396
Debentures		—		—		80,049,270		—		80,049,270
Other financial liabilities*		—		—		40,469,257		—		40,469,257

	￦	11,026,877	￦	7,981,018	￦	653,643,949	￦	546,984	￦	673,198,828

*	Other financial liabilities include lease liabilities and other liabilities that are not included in the category of financial instruments measured at amortized cost.

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6.4 Transfer of Financial Assets

6.4.1 Transferred financial assets that are derecognized in their entirety

The Group transferred loans and other financial assets to companies specialized in asset-backed securitization and derecognized them from the consolidated financial statement, while the maximum exposure to loss (carrying amount) from its continuing involvement and fair value of its continuing involvement of the derecognized financial assets as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)

December 31, 2024

Type of continuing
involvement

Classification of financial
instruments

Carrying amount
of continuing
involvement

Fair value of
continuing
involvement

Discovery 2

Securitization Specialty Co., Ltd.

Subordinated bond

Financial assets at fair value through profit or loss

￦

564

￦

564

AP 4D ABS Ltd.

Subordinated bond

Financial assets at fair value through profit or loss

￦

603

￦

603

(In millions of Korean won)

December 31, 2025

Type of continuing
involvement

Classification of financial
instruments

Carrying amount
of continuing
involvement

Fair value of
continuing
involvement

Discovery 2

Securitization Specialty Co., Ltd.

Subordinated bond

Financial assets at fair value through profit or loss

￦

564

￦

564

AP 4D ABS Ltd.

Subordinated bond

Financial assets at fair value through profit or loss

￦

600

￦

600

6.4.2 Transferred financial assets that are not derecognized in their entirety

The Group issued securitized debentures using loans as underlying assets. Details of underlying assets and senior debentures in relation to securitization as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Carrying amount of underlying assets		Fair value of underlying assets		Carrying amount of senior debentures		Fair value of senior debentures
KB Kookmin Card 8 th Securitization Co., Ltd. 1	￦	472,066	￦	469,890	￦	99,987	￦	99,614
KB Kookmin Card 9 th Securitization Co., Ltd. 1		524,464		521,961		249,894		240,491
KB Kookmin Card 10 th Securitization Co., Ltd. 1		882,641		878,117		586,517		579,432
KB Kookmin Card 11 th Securitization Co., Ltd. 1		677,194		673,664		399,932		390,463
KB Kookmin Card 12 th Securitization Co., Ltd. 1		1,196,421		1,190,160		732,558		719,230
KB Kookmin Card 13 th Securitization Co., Ltd. 1		935,938		931,006		586,980		570,700
KB Auto Fifth Asset Securitization Specialty Co., Ltd. 2		383,856		381,391		209,594		217,115

	￦	5,072,580	￦	5,046,189	￦	2,865,462	￦	2,817,045

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6.4.2 Transferred financial assets that are not derecognized in their entirety (cont’d)


(In millions of Korean won)	December 31, 2025
	Carrying amount of underlying assets		Fair value of underlying assets		Carrying amount of senior debentures		Fair value of senior debentures

KB Kookmin Card 9 th Securitization Co., Ltd. 1	￦	498,031	￦	495,938	￦	249,898	￦	247,071
KB Kookmin Card 10 th Securitization Co., Ltd. 1		832,813		829,069		286,754		286,743
KB Kookmin Card 11 th Securitization Co., Ltd. 1		636,665		633,826		399,976		397,641
KB Kookmin Card 12 th Securitization Co., Ltd. 1		1,124,943		1,119,857		716,236		713,045
KB Kookmin Card 13 th Securitization Co., Ltd. 1		875,541		871,600		573,473		568,123
KB Kookmin Card 14 th Securitization Co., Ltd. 1		1,170,261		1,165,362		571,787		552,528
KB Auto Fifth Asset Securitization Specialty Co., Ltd. 2		170,183		169,608		132,256		135,500

	￦	5,308,437	￦	5,285,260	￦	2,930,380	￦	2,900,651

The Group has an obligation to early redeem the securitized debentures in the event of situations prescribed by the asset securitization contract, such as the remaining balance of the eligible underlying assets in trust-type asset securitization is below the solvency ratio (minimum ratio: 104.5%) of the beneficiary interest in the trust. To avoid such early redemption, the Group entrusts credit card accounts and deposits in addition to the previously entrusted credit card accounts.

2	The Group has an obligation to early redeem the securitized debentures in the event of situations prescribed by the asset securitization contract, such as when the trusted assets do not meet the eligibility requirements.

6.4.3 Bonds sold under repurchase agreements and loaned securities

The Group continues to recognize the financial assets related to bonds sold under repurchase agreements and securities lending transactions in the consolidated statement of financial position since those transactions are not qualified for derecognition even though the Group transfers the financial assets. Bonds sold under repurchase agreements are sold on the condition that they will be repurchased at a fixed price and loaned securities will be returned at the expiration of the loan period. Thus, the Group retains substantially all the risks and rewards of ownership of the financial assets.

The carrying amount of transferred assets and related liabilities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Carrying amount of transferred assets		Carrying amount of related liabilities
Bonds sold under repurchase agreements	￦	9,520,281	￦	9,287,665
Loaned securities:
Government and public bonds		3,854,697		—
Stock		6,046		—
Others		75,293		—

	￦	13,456,317	￦	9,287,665

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6.4.3 Bonds sold under repurchase agreements and loaned securities (cont’d)


(In millions of Korean won)	December 31, 2025
	Carrying amount of transferred assets		Carrying amount of related liabilities
Bonds sold under repurchase agreements	￦	9,678,686	￦	9,400,196
Loaned securities:
Government and public bonds		11,958,428		—
Stock		632		—
Others		—		—

	￦	21,637,746	￦	9,400,196

6.4.4 Purchase commitments of securitized debentures

The Group provided additional credit enhancement, such as purchase commitments, for the underlying assets of subsidiaries established for asset-backed securitization. Details of carrying amounts of the underlying assets and the associated liabilities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)		December 31, 2024		December 31, 2025
Underlying assets	Financial assets at fair value through profit or loss	￦	93,804	￦	319,913
Underlying assets	Loans measured at amortized cost *		3,007,341		2,605,512

			3,101,145		2,925,425

Associated liabilities	Debentures	￦	3,149,021	￦	2,850,790

* Before netting of allowance

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6.5 Offsetting Financial Assets and Financial Liabilities

The Group enters into International Swaps and Derivatives Association (“ISDA”) master netting agreements and other similar arrangements with the Group’s OTC derivative and spot exchange counterparties. Similar netting agreements are also entered into with the Group’s (a) sales or purchases of bonds under repurchase agreements and (b) securities lending and borrowing transactions, etc. Pursuant to these agreements, in the event of a credit event, including default, by one party, contracts are to be terminated and receivables and payables are to be offset. Domestic exchange settlement debits and domestic exchange settlement credits are recognized in its net settlement balance in the consolidated statement of financial position because the Group has the legal right of offset and settles in net amount.

6.5.1 Details of financial assets subject to enforceable master netting agreements or similar arrangements as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	December 31, 2024
	Gross assets		Gross liabilities offset			Net amount in the statement of financial position		Non-offsetting amount						Net amount
	Gross assets		Gross liabilities offset			Net amount in the statement of financial position		Financial instruments			Cash collateral			Net amount
Derivatives held for trading and derivative-linked securities	￦11,227,882		￦ —			￦11,227,882		￦(6,621,613)			￦(195,584)			￦5,186,582
Derivatives held for hedging		775,897		—			775,897
Unsettled spot exchange receivable		6,287,655		—			6,287,655		(6,213,292	)		—			74,363
Bonds purchased under repurchase agreements		5,405,878		—			5,405,878		(4,910,653	)		—			495,225
Securities borrowing agreements		75,293		—			75,293		(75,293	)		—			—
Domestic exchange settlement debits		63,055,082		(62,577,496	)		477,586		(3,315	)		—			474,271
Other financial instruments		1,719,547		(1,687,731	)		31,816		—			—			31,816

	￦	88,547,234	￦	(64,265,227	)	￦	24,282,007	￦	(17,824,166	)	￦	(195,584	)	￦	6,262,257


(In millions of Korean won)
	December 31, 2025
	Gross assets		Gross liabilities offset			Net amount in the statement of financial position		Non-offsetting amount						Net amount
	Gross assets		Gross liabilities offset			Net amount in the statement of financial position		Financial instruments			Cash collateral			Net amount
Derivatives held for trading and derivative-linked securities	￦	7,988,214	￦	—		￦	7,988,214
Derivatives held for hedging		429,685		—			429,685	￦	(4,801,687	)	￦	(177,871	)	￦	3,438,341
Unsettled spot exchange receivable		6,887,996		—			6,887,996		(6,778,593	)		—			109,403
Bonds purchased under repurchase agreements		10,175,247		—			10,175,247		(10,175,247	)		—			—
Domestic exchange settlement debits		73,785,133		(72,456,156	)		1,328,977		(768	)		—			1,328,209
Other financial instruments		4,936,397		(4,350,832	)		585,565		—			—			585,565

	￦	104,202,672	￦	(76,806,988	)	￦	27,395,684	￦	(21,756,295	)	￦	(177,871	)	￦	5,461,518

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6.5.2 Details of financial liabilities subject to enforceable master netting agreements or similar arrangements as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	December 31, 2024
	Gross liabilities		Gross assets offset			Net amount in the statement of financial position		Non-offsetting amount						Net amount
	Gross liabilities		Gross assets offset			Net amount in the statement of financial position		Financial instruments			Cash collateral			Net amount
Derivatives held for trading and derivative-linked securities	￦	12,543,672	￦	—		￦	12,543,672
Derivatives held for hedging		373,799		—			373,799	￦	(10,689,585	)	￦	(76,853	)	￦	2,151,033
Unsettled spot exchange payable		6,289,630		—			6,289,630		(6,213,292	)		—			76,338
Bonds sold under repurchase agreements *		12,794,534		—			12,794,534		(12,794,534	)		—			—
Securities borrowing agreements		2,558,520		—			2,558,520		(2,558,520	)		—			—
Domestic exchange settlement credits		62,872,822		(62,577,496	)		295,326		(292,699	)		—			2,627
Other financial instruments		1,784,437		(1,687,731	)		96,706		—			—			96,706

	￦	99,217,414	￦	(64,265,227	)	￦	34,952,187	￦	(32,548,630	)	￦	(76,853	)	￦	2,326,704


(In millions of Korean won)
	December 31, 2025
	Gross liabilities		Gross assets offset			Net amount in the statement of financial position		Non-offsetting amount						Net amount
	Gross liabilities		Gross assets offset			Net amount in the statement of financial position		Financial instruments			Cash collateral			Net amount
Derivatives held for trading and derivative-linked securities	￦	8,896,951	￦	—		￦	8,896,951
Derivatives held for hedging		546,985		—			546,985	￦	(7,752,738	)	￦	(66,028	)	￦	1,625,170
Unsettled spot exchange payable		6,893,312		—			6,893,312		(6,731,054	)		—			162,258
Bonds sold under repurchase agreements *		13,425,697		—			13,425,697		(13,425,697	)		—			—
Securities borrowing agreements		2,923,691		—			2,923,691		(2,915,160	)		—			8,531
Domestic exchange settlement credits		72,554,289		(72,456,156	)		98,133		(94,681	)		—			3,452
Other financial instruments		4,539,658		(4,350,832	)		188,826		—			—			188,826

	￦	109,780,583	￦	(76,806,988	)	￦	32,973,595	￦	(30,919,330	)	￦	(66,028	)	￦	1,988,237

*	Includes bonds sold under repurchase agreements to customers.

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7. Due from Financial Institutions Measured at Amortized Cost

7.1 Details of due from financial institutions as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)		Financial institutions	Interest rate (%) as of December 31, 2025		December 31, 2024		December 31, 2025
Due from financial institutions in Korean won	Due from the Bank of Korea	The Bank of Korea		—	￦	11,635,481	￦	13,939,438
	Due from banks	KEB Hana Bank and others		0.00 ~ 4.16		3,342,114		4,141,440
	Due from others	Korea Securities Finance Corporation and others		0.00 ~ 3.33		1,473,585		1,696,282

						16,451,180		19,777,160

Due from financial institutions in foreign currencies	Due from banks in foreign currencies	The Bank of Korea. and others		0.00 ~ 4.75		7,767,797		9,115,862
	Time deposits in foreign currencies	Industrial and Commercial Bank of China and others		0.00 ~ 6.75		634,903		405,700
	Due from others	Yuanta Bank (Taiwan) and others		0.00 ~ 6.70		2,937,813		3,270,336

						11,340,513		12,791,898

					￦	27,791,693	￦	32,569,058

*	Before netting of allowance

7.2 Details of restricted due from financial institutions as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)

Financial institutions

December 31,

2024

December 31,
2025

Reasons of restriction

Due from financial institutions in Korean won

Due from the Bank of Korea

The Bank of Korea

￦

11,635,481

￦

13,939,438

Bank of Korea Act

Due from banks

KEB Hana Bank and others

106,500

130,640

Net settlement and others

Due from others

Korea Securities Finance Corporation and others

1,254,615

1,630,914

Derivatives margin account and others

12,996,596

15,700,992

Due from financial institutions in foreign currencies

Due from banks in foreign currencies

The Bank of Korea and others

2,736,871

3,392,616

Bank of Korea Act and others

Time deposits in foreign currencies

Industrial and Commercial Bank of China and others

98,264

81,983

Bank Act of the State of New York and others

Due from others

Yuanta Bank (Taiwan) and others

2,709,177

3,002,267

Derivatives margin account and others

5,544,312

6,476,866

￦

18,540,908

￦

22,177,858

*	Before netting of allowance.

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7.3 Changes in allowances for credit losses of due from financial institutions for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired		Impaired
Beginning	￦	1,021		￦	—	￦	—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—		—
Transfer to lifetime expected credit losses		—			—		—
Impairment		—			—		—
Provision (reversal) of credit losses		472			—		—
Business Combination		—			—		—
Others		79			—		—

Ending	￦	1,572		￦	—	￦	—


(In millions of Korean won)	2025
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired		Impaired
Beginning	￦	1,572		￦	—	￦	—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—		—
Transfer to lifetime expected credit losses		—			—		—
Impairment		—			—		—
Provision (reversal) of credit losses		(172	)		—		—
Business Combination		—			—		—
Others		(50	)		—		—

Ending	￦	1,350		￦	—	￦	—

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8. Assets Pledged as Collateral

8.1 Details of assets pledged as collateral as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
		December 31, 2024
Assets pledged	Pledgee	Carrying amount		Reasons of pledge
Due from financial institutions	KEB Hana Bank and others	￦	651,988	Performance guarantee for loan transactions
Financial assets at fair value through profit or loss	The Korea Securities Depository and others		4,366,425	Repurchase agreements
	The Korea Securities Depository and others		9,908,291	Securities borrowing transactions
	Samsung Futures Inc. and others		1,644,059	Derivatives transactions

			15,918,775

Financial assets at fair value through other comprehensive income	The Bank of Korea and others		4,058,186	Repurchase agreements
	The Korea Securities Depository and others		2,510,368	Securities borrowing transactions
	The Bank of Korea		2,237,952	Borrowings from the Bank of Korea
	The Bank of Korea		994,678	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		2,511,706	Derivatives transactions
	Others		662,227	Others

			12,975,117

Securities measured at amortized cost	The Bank of Korea and others		1,031,256	Repurchase agreements
	The Bank of Korea		2,802,901	Borrowings from the Bank of Korea
	The Bank of Korea		7,627,587	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		1,065,109	Derivatives transactions
	The Bank of Korea and others		818,270	Others

			13,345,123

Loans	Others		14,572,142	Covered bond and others
Real estate	Hanwha Life Insurance Co., Ltd. and others		1,223,346	Borrowings from bank and others

		￦	58,686,491

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8.1 Details of assets pledged as collateral as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		December 31, 2025
Assets pledged	Pledgee	Carrying amount		Reasons of pledge
Due from financial institutions	KEB Hana Bank and others	￦	839,641	Performance guarantee for loan transactions
Financial assets at fair value through profit or loss	The Korea Securities Depository and others		4,227,877	Repurchase agreements
	The Korea Securities Depository and others		11,148,996	Securities borrowing transactions
	The Bank of Korea		3,314,236	Borrowings from the Bank of Korea
	Korea Exchange (“KRX”) and others		1,775,290	Derivatives transactions
	Others		6,531	Others

			20,472,930

Financial assets at fair value through other comprehensive income	The Korea Securities Depository and others		4,310,743	Repurchase agreements
	The Korea Securities Depository and others		4,041,764	Securities borrowing transactions
	The Bank of Korea		2,045,260	Borrowings from the Bank of Korea
	The Bank of Korea		975,999	Settlement risk of the Bank of Korea
	The Korea Securities Depository and others		2,774,232	Derivatives transactions
	Mitsui Sumitomo Bank, Seoul Branch and others		586,089	Others

			14,734,087

Securities measured at amortized cost	The Bank of Korea and others		1,140,066	Repurchase agreements
Securities measured at amortized cost	The Bank of Korea		2,440,585	Borrowings from the Bank of Korea
	The Bank of Korea		7,625,707	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		488,326	Derivatives transactions
	The Bank of Korea and others		660,079	Others

			12,354,763

Loans	Others		12,250,820	Covered bond and others
Real estate	Shinhan Bank and others		1,009,578	Borrowings from bank and others

		￦	61,661,819

In addition, the Group provided ￦

8,027,229

million and ￦

10,485,363 million debt securities among its borrowed securities and other assets held as collateral to Korea Securities Finance Corporation and others as collateral as of December 31, 2024 and 2025, respectively.

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8.2 Fair value of collateral available to sell or repledge, and collateral sold or repledged, regardless of debtor’s default as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)

December 31, 2024

Fair value of collateral
held

Fair value of collateral
sold or repledged

Total

Securities

￦

4,933,491

￦

—

￦

4,933,491

(In millions of Korean won)

December 31, 2025

Fair value of collateral

held

Fair value of collateral
sold or repledged

Total

Securities

￦

10,723,045

￦

—

￦

10,723,045

9. Derivative Financial Instruments and Hedge Accounting

The Group’s derivative operations focus on addressing the needs of the Group’s corporate clients to hedge their risk exposure and hedging the Group’s risk exposure that results from such client contracts. The Group also engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Group’s own assets and liabilities. In addition, the Group engages in proprietary trading of derivatives within the predetermined transaction limit.

The Group provides and trades a range of derivative financial instruments, including:

•

Interest rate swaps relating to interest rate risk in Korean won

•

Cross-currency swaps, forwards, and options relating to currency risk

•

Stock index options linked with the Korea Composite Stock Price Index (“KOSPI”)

In particular, the Group applies fair value hedge accounting using interest rate swaps, currency forwards, and others to hedge the risk of changes in fair value due to the changes in interest rate and foreign exchange rate of structured debentures in Korean won, debentures in foreign currencies, structured deposits in foreign currencies, and others. The Group applies cash flow hedge accounting using interest rate swaps, currency swaps, and others to hedge the risk of changes in cash flows of floating rate debt securities in Korean won, borrowings in foreign currencies, group of loans measured at amortized cost, and others. In addition, the Group applies net investments in foreign operations hedge accounting by designating debentures in foreign currencies and cross currency forwards as hedging instruments to hedge the currency risk of net investments in foreign operations.

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9.1 Details of derivative financial instruments held for trading as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	December 31, 2024						December 31, 2025
	Notional amount		Assets		Liabilities		Notional amount		Assets		Liabilities
Interest rate
Forwards	￦	18,253,487	￦	577,037	￦	736,622	￦	24,101,504	￦	963,680	￦	629,846
Futures*		6,388,783		1,178		5,407		5,703,719		458		1,340
Swaps		334,595,285		405,611		552,316		266,475,478		447,025		632,389
Options		7,108,100		152,220		146,648		6,376,000		185,054		149,207

		366,345,655		1,136,046		1,440,993		302,656,701		1,596,217		1,412,782

Currency
Forwards		136,815,645		5,848,876		3,326,427		137,979,537		3,320,819		1,774,894
Futures*		723,795		1,694		234		825,744		728		20
Swaps		82,498,194		3,587,141		5,960,622		70,367,044		2,316,840		3,679,947
Options		1,999,773		23,808		25,374		1,741,288		10,700		11,361

		222,037,407		9,461,519		9,312,657		210,913,613		5,649,087		5,466,222

Stock and index
Futures*		2,151,606		3,260		7,963		3,577,413		396		6,881
Swaps		4,963,174		278,278		156,825		6,129,959		237,117		380,095
Options		2,641,003		15,331		171,368		2,518,452		209,753		162,989

		9,755,783		296,869		336,156		12,225,824		447,266		549,965

Credit
Swaps		4,797,110		37,123		27,397		5,265,645		35,971		26,470

		4,797,110		37,123		27,397		5,265,645		35,971		26,470

Commodity
Futures*		42,764		1,191		1,012		81,631		1,056		1,949
Swaps		1,297,183		12,390		11,781		568,778		10,572		10,185
Options		292,290		3,018		3,130		101,737		3,072		3,109

		1,632,237		16,599		15,923		752,146		14,700		15,243

Others		891,012		6,715		276,569		824,241		5,130		216,623

	￦	605,459,204	￦	10,954,871	￦	11,409,695	￦	532,638,170	￦	7,748,371	￦	7,687,305

*	Gains or losses arising from some daily mark-to-market futures are reflected in the margin accounts.

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9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument	￦	5,071,561	￦	1,674,709	￦	444,487	￦	189,448	￦	941,835	￦	1,998,080	￦	10,320,120
Average price condition (%)		4.58		4.65		4.71		5.74		6.69		3.81		4.68
Average price condition (USD/KRW)		1,341.52		1,298.73		1,276.69		—		—		—		1,325.95
Average price condition (EUR/KRW)		1,464.04		1,469.25		1,447.53		—		—		—		1,464.60
Average price condition (AUD/KRW)		891.13		885.60		—		—		—		—		890.56
Average price condition (GBP/KRW)		1,539.22		—		—		—		—		—		1,539.22
Cash flow hedge
Nominal amount of the hedging instrument	￦	2,385,743	￦	3,059,818	￦	2,779,439	￦	981,453	￦	545,140	￦	—	￦	9,751,593
Average price condition (%)		3.05		4.14		4.98		4.91		3.71		—		4.43
Average price condition (USD/KRW)		1,228.80		1,250.67		1,331.02		1,254.81		1,373.85		—		1,282.82
Average price condition (EUR/KRW)		1,374.73		1,501.00		—		1,392.00		—		—		1,423.08
Average price condition (AUD/KRW)		851.50		889.00		932.60		—		—		—		885.25
Hedge of net investments in foreign operations
Nominal amount of the hedging instrument	￦	15,876	￦	236,670	￦	—	￦	—	￦	—	￦	—	￦	252,546
Average price condition (USD/KRW)		1,071.00		1,178.91		—		—		—		—		1,172.13

(In millions of Korean won)	December 31, 2025
	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument	￦	5,146,871	￦	402,995	￦	94,321	￦	880,581	￦	1,531,878	￦	570,923	￦	8,627,569
Average price condition (%)		3.67		4.31		4.85		5.92		2.96		3.73		3.86
Average price condition (USD/KRW)		1,362.39		1,356.40		—		—		—		—		1,362.03
Average price condition (EUR/KRW)		1,556.92		1,481.21		—		—		—		—		1,541.37
Average price condition (AUD/KRW)		911.05		—		—		—		—		—		911.05
Average price condition (GBP/KRW)		1,862.01		—		—		—		—		—		1,862.01
Cash flow hedge
Nominal amount of the hedging instrument	￦	3,715,273	￦	3,779,416	￦	3,059,931	￦	1,172,452	￦	578,761	￦	—	￦	12,305,833
Average price condition (%)		3.46		4.37		3.96		3.47		—		—		3.94
Average price condition (USD/KRW)		1,264.42		1,433.62		1,344.27		1,353.74		1,411.82		—		1,351.96
Average price condition (EUR/KRW)		1,501.00		1,560.67		1,505.50		—		—		—		1,526.90
Average price condition (AUD/KRW)		896.73		932.6		—		—		—		—		905.35
Hedge of net investments in foreign operations
Nominal amount of the hedging instrument	￦	242,498	￦	—	￦	—	￦	—	￦	—	￦	—	￦	242,498
Average price condition (USD/KRW)		1,173.81		—		—		—		—		—		1,173.81

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9.3 Fair Value Hedge

9.3.1 Details of fair value hedged items as of December 31, 2024 and 2025 and changes in fair value for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)		December 31, 2024										2024
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair value
		Assets		Liabilities		Assets			Liabilities			Changes in fair value
Hedge accounting
Interest rate	Debt securities in Korean won	￦	2,062,063	￦	—	￦	(15,065	)	￦	—		￦	27,699
	Debt securities in foreign currencies		1,699,241		—		(44,081	)		—			21,357
	Deposits in Korean won		—		246,258		—			6,258			(6,272	)
	Deposits in foreign currencies		—		301,107		—			(7,593	)		926
	Debentures in Korean won		—		2,320,923		—			(109,077	)		(35,453	)
	Debentures in foreign currencies		—		1,523,883		—			(63,717	)		(4,989	)

			3,761,304		4,392,171		(59,146	)		(174,129	)		3,268

Currency	Debt securities in foreign currencies		1,798,273		—		301,740			—			217,776

			1,798,273		—		301,740			—			217,776

		￦	5,559,577	￦	4,392,171	￦	242,594		￦	(174,129)		￦	221,044


(In millions of Korean won)		December 31, 2025										2025
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair value
		Assets		Liabilities		Assets			Liabilities			Changes in fair value
Hedge accounting
Interest rate	Debt securities in Korean won	￦	1,516,538	￦	—	￦	(5,529	)	￦	—		￦	(13,622	)
	Debt securities in foreign currencies		1,285,924		—		(628	)		—			39,119
	Deposits in Korean won		—		196,865		—			6,865			(3,624	)
	Deposits in foreign currencies		—		1,044,993		—			(1,334	)		(6,254	)
	Debentures in Korean won		—		1,342,625		—			(117,375	)		8,310
	Debentures in foreign currencies		—		809,157		—			(23,085	)		(29,794	)

			2,802,462		3,393,640		(6,157	)		(134,929	)		(5,865	)

Currency	Debt securities in foreign currencies		1,539,305		—		365,464			—			(1,292	)

			1,539,305		—		365,464			—			(1,292	)

		￦	4,341,767	￦	3,393,640	￦	359,307		￦	(134,929)		￦	(7,157)

F-116

9.3.2 Details of derivative instruments designated as fair value hedge as of December 31, 2024 and 2025 and changes in fair value for the years ended December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024						2024
	Notional amount		Assets		Liabilities		Changes in fair value
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Futures	￦	720,000	￦	—	￦	—	￦	1,787
Swaps		7,648,200		84,530		62,666		(3,658	)

	￦	8,368,200	￦	84,530	￦	62,666	￦	(1,871	)
Currency
Forwards		1,951,920		62		119,228		(190,426	)

	￦	10,320,120	￦	84,592	￦	181,894	￦	(192,297	)

(In millions of Korean won)


	December 31, 2025						2025
	Notional amount		Assets		Liabilities		Changes in fair value
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Futures	￦	1,007,300	￦	—	￦	—	￦	21,890
Swaps		5,336,065		89,917		17,610		(16,491	)

	￦	6,343,365	￦	89,917	￦	17,610	￦	5,399
Currency
Forwards		2,284,204		4,563		107,590		(66,011	)

	￦	8,627,569	￦	94,480	￦	125,200	￦	(60,612	)

9.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the years ended December 31, 2023, 2024 and 2025, are as follows:

(In millions of Korean won)


	2023			2024		2025
Hedge accounting
Interest rate	￦	6,513		￦	1,397	￦	(466	)
Currency		(2,112	)		27,351		(67,303	)

	￦	4,401		￦	28,748	￦	(67,769	)

9.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Gains (losses) on hedging instruments	￦	(36,372	)	￦	(192,297	)	￦	(60,612	)
Gains (losses) on hedged items attributable to the hedged risk		35,011			223,358			(14,818	)

	￦	(1,361	)	￦	31,061		￦	(75,430	)

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9.4 Cash Flow Hedge

9.4.1 Details of cash flow hedged items as of December 31, 2024 and 2025 and changes in fair value for the years ended December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	Cash flow hedge reserve						Changes in fair value
	December 31, 2024			December 31, 2025			2024			2025
Hedge accounting
Interest rate risk	￦	160,165		￦	(102,432	)	￦	(62,558	)	￦	344,686
Currency risk		(51,847	)		(55,080	)		(154,144	)		150,381

	￦	108,318		￦	(157,512	)	￦	(216,702	)	￦	495,067

9.4.2 Details of derivative instruments designated as cash flow hedge as of December 31, 2024 and 2025 and changes in fair value for the years ended December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024						2024
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Forwards	￦	1,705,449	￦	179,580	￦	8	￦	75,162
Swaps		2,988,310		48,738		5,760		(10,122	)

	￦	4,693,759	￦	228,318	￦	5,768	￦	65,040
Currency
Swaps		5,057,834		462,986		181,828		278,039

	￦	9,751,593	￦	691,304	￦	187,596	￦	343,079

(In millions of Korean won)


	December 31, 2025						2025
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Forwards	￦	3,947,019	￦	37,218	￦	234,722	￦	(314,412	)
Swaps		2,849,228		25,753		13,343		(28,878	)

	￦	6,796,247	￦	62,971	￦	248,065	￦	(343,290	)
Currency
Swaps		5,509,586		272,234		170,808		(142,175	)

	￦	12,305,833	￦	335,205	￦	418,873	￦	(485,465	)

9.4.3 Gains or losses on cash flow hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023		2024		2025
Gains (losses) on hedging instruments:	￦	8,831	￦	343,079	￦	(485,465	)
Effective portion of gains (losses) on cash flow hedging instruments (recognized in other comprehensive income or loss)		7,328		341,834		(488,324	)
Ineffective portion of gains (losses) on cash flow hedging instruments (recognized in profit or loss)		1,503		1,245		2,859

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9.4.4 Amounts recognized in other comprehensive income (loss) and reclassified from equity to profit or loss related to derivative instruments designated as cash flow hedge for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Other comprehensive income (loss)	￦	7,328		￦	341,834		￦	(488,324	)
Reclassification to profit or loss		48,508			(294,592	)		169,361
Income tax effect		(1,913	)		(12,501	)		29,455

	￦	53,923		￦	34,741		￦	(289,508	)

9.5 Hedge of Net Investments in Foreign Operations

9.5.1 Details of net investments in foreign operations hedged items as of December 31, 2024 and 2025 and changes in fair value for the years ended December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	Foreign currency translation reserve						Changes in fair value
	December 31, 2024			December 31, 2025			2024		2025
Hedge accounting
Currency risk	￦	(316,109	)	￦	(276,478	)	￦	253,679	￦	(46,601	)

9.5.2 Details of financial instruments designated as hedge of net investments in foreign operations as of December 31, 2024 and 2025 and changes in fair value for the years ended December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024						2024
	Notional amount		Assets		Liabilities		Changes in fair value
Currency
Forwards	￦	15,876	￦	—	￦	4,309	￦	998
Debentures in foreign currencies		2,077,155		—		2,077,155		(254,677	)

	￦	2,093,031	￦	—	￦	2,081,464	￦	(253,679	)

(In millions of Korean won)


	December 31, 2025						2025
	Notional amount		Assets		Liabilities		Changes in fair value
Currency
Forwards	￦	11,479	￦	—	￦	2,911	￦	1,398
Debentures in foreign currencies		2,203,306		—		2,203,005		45,203

	￦	2,214,785	￦	—	￦	2,205,916	￦	46,601

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9.5.3 Fair value of

non-derivative

financial instruments designated as hedge of net investments in foreign operations as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Debentures in foreign currencies	￦	2,180,537	￦	2,186,490

9.5.4 Gains or losses on net investments in foreign operations hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Gains (losses) on hedging instruments:	￦	(19,590	)	￦	(253,679	)	￦	46,601
Effective portion of gains (losses) on hedge of net investments in foreign operations (recognized in other comprehensive income or loss)		(19,590	)		(253,679	)		46,601
Ineffective portion of gains (losses) on hedge of net investments in foreign operations (recognized in profit or loss)		—			—			—

9.5.5 Effective portion of gains or losses on net investments in foreign operations hedging instruments recognized in other comprehensive income (loss) for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Other comprehensive income (loss)	￦	(19,590	)	￦	(253,679	)	￦	46,601
Reclassification to profit or loss		—			—			1,546
Income tax effect		4,931			66,971			(8,516	)

	￦	(14,659	)	￦	(186,708	)	￦	39,631

10. Loans Measured at Amortized Cost

10.1 Details of loans as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Loans measured at amortized cost	￦	477,066,990		￦	496,800,668
Deferred loan origination fees and costs		638,230			583,572
Less: Allowances for credit losses		(5,633,380	)		(5,406,196	)

	￦	472,071,840		￦	491,978,044

10.2 Details of loans to banks as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Loans measured at amortized cost	￦	9,830,773		￦	8,761,115
Less: Allowances for credit losses		(31,158	)		(2,039	)

	￦	9,799,615		￦	8,759,076

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10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Retail			Corporate			Credit card			Total
Loans in Korean won	￦	188,109,614		￦	203,391,791		￦	—		￦	391,501,405
Loans in foreign currencies		5,978,891			26,954,295			—			32,933,186
Domestic import usance bills		—			3,790,808			—			3,790,808
Off-shore funding loans		—			626,058			—			626,058
Bills bought in Korean won		—			1,862			—			1,862
Bills bought in foreign currencies		—			2,379,270			—			2,379,270
Guarantee payments under acceptances and guarantees		—			16,930			—			16,930
Credit card receivables in Korean won		—			—			23,436,170			23,436,170
Credit card receivables in foreign currencies		—			—			42,304			42,304
Bonds purchased under repurchase agreements		—			4,967,067			—			4,967,067
Privately placed bonds		—			389,783			—			389,783
Factored receivables		7			62,602			—			62,609
Lease receivables		406,844			194,057			—			600,901
Loans for installment credit		6,327,692			798,402			—			7,126,094

		200,823,048			243,572,925			23,478,474			467,874,447

Proportion (%)		42.92			52.06			5.02			100.00
Less: Allowances for credit losses		(1,587,817	)		(3,137,665	)		(876,740	)		(5,602,222	)

	￦	199,235,231		￦	240,435,260		￦	22,601,734		￦	462,272,225


(In millions of Korean won)	December 31, 2025
	Retail			Corporate			Credit card			Total
Loans in Korean won	￦	195,458,599		￦	213,386,102		￦	—		￦	408,844,701
Loans in foreign currencies		6,139,413			26,054,287			—			32,193,700
Domestic import usance bills		—			3,576,639			—			3,576,639
Off-shore funding loans		—			959,102			—			959,102
Call Loans		—			450,000			—			450,000
Bills bought in Korean won		—			1,691			—			1,691
Bills bought in foreign currencies		—			2,611,182			—			2,611,182
Guarantee payments under acceptances and guarantees		—			5,414			—			5,414
Credit card receivables in Korean won		—			—			23,103,760			23,103,760
Credit card receivables in foreign currencies		—			—			31,326			31,326
Bonds purchased under repurchase agreements		—			8,084,671			—			8,084,671
Privately placed bonds		—			390,175			—			390,175
Factored receivables		3,563			77,811			—			81,374
Lease receivables		429,444			82,883			—			512,327
Loans for installment credit		6,853,732			923,331			—			7,777,063

		208,884,751			256,603,288			23,135,086			488,623,125

Proportion (%)		42.75			52.52			4.73			100
Less: Allowances for credit losses		(1,500,254	)		(3,187,999	)		(715,904	)		(5,404,157	)

	￦	207,384,497		￦	253,415,289		￦	22,419,182		￦	483,218,968

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10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	2024
	Beginning		Increase		Decrease			Others			Ending
Deferred loan origination costs
Loans in Korean won	￦	623,493	￦	464,364	￦	(406,506	)	￦	—		￦	681,351
Others		76,997		73,259		(57,159	)		3,886			96,983

		700,490		537,623		(463,665	)		3,886			778,334

Deferred loan origination fees
Loans in Korean won		37,002		44,345		(27,267	)		—			54,080
Others		72,244		42,950		(38,031	)		8,861			86,024

		109,246		87,295		(65,298	)		8,861			140,104

	￦	591,244	￦	450,328	￦	(398,367	)	￦	(4,975	)	￦	638,230

(In millions of Korean won)


	2025
	Beginning		Increase		Decrease			Others			Ending
Deferred loan origination costs
Loans in Korean won	￦	681,351	￦	341,642	￦	(374,539	)	￦	—		￦	648,454
Others		96,983		75,892		(81,149	)		(2,661	)		89,065

		778,334		417,534		(455,688	)		(2,661	)		737,519

Deferred loan origination fees
Loans in Korean won		54,080		29,801		(28,075	)		—			55,806
Others		86,024		64,839		(50,861	)		(1,861	)		98,141

		140,104		94,640		(78,936	)		(1,861	)		153,947

	￦	638,230	￦	322,894	￦	(376,752	)	￦	(800	)	￦	583,572

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11. Allowances for Credit Losses

11.1 Changes in allowances for credit losses of loans measured at amortized cost for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Retail									Corporate									Credit card
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non-impaired			Impaired
Beginning	￦	584,650		￦	283,382		￦	501,049		￦	939,640		￦	935,715		￦	1,282,544		￦	206,525		￦	328,152		￦	401,148
Transfer between stages:
Transfer to 12-month expected credit losses		130,047			(122,955	)		(7,092	)		365,392			(306,167	)		(59,225	)		55,076			(53,048	)		(2,028	)
Transfer to lifetime expected credit losses		(117,019	)		237,066			(120,047	)		(273,328	)		340,311			(66,983	)		(27,518	)		34,364			(6,846	)
Impairment		(11,838	)		(166,139	)		177,977			(54,667	)		(191,344	)		246,011			(3,753	)		(23,914	)		27,667
Write-offs		—			—			(684,223	)		—			(2	)		(593,492	)		—			—			(706,501	)
Sales		(4,177	)		(1,668	)		(56,116	)		—			(499	)		(102,759	)		—			—			(136,344	)
Provision (reversal) for credit losses 1,2		23,910			101,072			824,942			(56,320	)		123,219			585,169			10,142			87,067			715,149
Others (exchange differences, etc.)		1,778			677			12,541			(7,577	)		22,331			40,854			(38	)		19			(28,579	)

Ending	￦	607,351		￦	331,435		￦	649,031		￦	913,140		￦	923,564		￦	1,332,119		￦	240,434		￦	372,640		￦	263,666

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11.1 Changes in allowances for credit losses of loans measured at amortized cost for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Retail									Corporate									Credit card
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired			Impaired			12-month expected credit losses			Non-impaired			Impaired			12-month expected credit losses			Non-impaired			Impaired
Beginning	￦	607,351		￦	331,435		￦	649,031		￦	913,140		￦	923,564		￦	1,332,119		￦	240,434		￦	372,640		￦	263,666
Transfer between stages:
Transfer to 12-month expected credit losses		159,823			(151,174	)		(8,649	)		221,777			(217,285	)		(4,492	)		34,654			(34,519	)		(135	)
Transfer to lifetime expected credit losses		(134,669	)		163,519			(28,850	)		(248,185	)		305,680			(57,495	)		(50,226	)		50,683			(457	)
Impairment		(13,672	)		(75,950	)		89,622			(8,477	)		(194,671	)		203,148			(2,702	)		(6,678	)		9,380
Write-offs		—			(1	)		(886,368	)		—			(13	)		(776,283	)		—			—			(646,045	)
Sales		(1,219	)		(1,254	)		(62,265	)		(37	)		(798	)		(173,263	)		—			(7,596	)		(168,436	)
Provision (reversal) for credit losses 1,2		(24,749	)		6,356			920,421			64,363			93,234			910,344			(36,615	)		(4,887	)		733,095
Others (exchange differences, etc.)		(13,538	)		(457	)		(24,489	)		(7,294	)		(2,004	)		(87,034	)		(72	)		(67	)		(30,213	)

Ending	￦	579,327		￦	272,474		￦	648,453		￦	935,287		￦	907,707		￦	1,347,044		￦	185,473		￦	369,576		￦	160,855

Provision for credit losses in the consolidated statements of comprehensive income also includes provision (reversal) for credit losses of due from financial institutions (Note 7.3), provision (reversal) for credit losses of financial investments (Note 12.5), provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note 24.2), provision (reversal) for credit losses of financial guarantee contracts (Note 24.3), and provision (reversal) for credit losses of other financial assets (Note 19.2).

2	Includes ￦ 317,140 million and ￦ 385,145 million of collections from written-off loans for the years ended December 31, 2024 and 2025, respectively.

The amount of financial assets that the Group wrote off during the prior and the current year but is continuing recovery activities is ￦

1,984,218

million and ￦

2,270,706 million for the years ended December 31, 2024 and 2025, respectively. Also, the Group manages the

written-off

loans that their legal extinctive prescriptions have not been completed, and that have not been collected.

The balances of those loans are ￦

11,468,928

million and ￦

11,292,023 million as of December 31, 2024 and 2025, respectively.

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11.2 Changes in gross carrying amount of loans for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired			Impaired
Beginning	￦	408,283,402		￦	37,076,587		￦	4,908,103
Transfer between stages:
Transfer to 12-month expected credit losses		29,092,806			(28,622,325	)		(470,481	)
Transfer to lifetime expected credit losses (non-impaired)		(36,987,630	)		38,887,946			(1,900,316	)
Transfer to lifetime expected credit losses (impaired)		(1,489,772	)		(4,423,007	)		5,912,779
Write-offs		—			(2	)		(1,984,216	)
Sales		(3,563,046	)		(98,684	)		(1,028,807	)
Net increase (decrease) (execution, repayment, and others)		36,418,238			(1,879,924	)		(426,431	)

Ending	￦	431,753,998		￦	40,940,591		￦	5,010,631


(In millions of Korean won)	2025
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired			Impaired
Beginning	￦	431,753,998		￦	40,940,591		￦	5,010,631
Transfer between stages:
Transfer to 12-month expected credit losses		31,009,972			(30,953,536	)		(56,436	)
Transfer to lifetime expected credit losses (non-impaired)		(45,366,268	)		46,542,340			(1,176,072	)
Transfer to lifetime expected credit losses (impaired)		(942,693	)		(4,001,107	)		4,943,800
Write-offs		—			(14	)		(2,308,696	)
Sales		(663,793	)		(110,914	)		(1,930,763	)
Net increase (decrease) (execution, repayment, and others)		30,098,904			(5,450,159	)		44,455

Ending	￦	445,890,120		￦	46,967,201		￦	4,526,919

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12. Financial Assets at Fair Value through Profit or Loss and Financial Investments

12.1 Details of financial assets at fair value through profit or loss and financial investments as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Financial assets at fair value through profit or loss
Debt securities:
Government and public bonds	￦	13,389,804		￦	12,700,497
Financial bonds		11,601,280			13,649,186
Corporate bonds		7,323,299			8,116,539
Asset-backed securities		39,444			30,000
Beneficiary certificates		20,644,681			24,898,393
Derivative-linked securities		1,924,109			2,161,288
Other debt securities		18,846,019			18,997,445
Equity securities:
Stocks		3,964,021			7,258,897
Other equity securities		311,316			342,556
Loans:
Privately placed bonds		208,856			227,391
Other loans		978,907			1,003,621
Due from financial institutions:
Other due from financial institutions		59,838			64,438
Others		158,519			412,279

	￦	79,450,093		￦	89,862,530

Financial investments
Financial assets at fair value through other comprehensive income
Debt securities:
Government and public bonds	￦	38,108,213		￦	43,782,588
Financial bonds		26,091,249			23,991,331
Corporate bonds		22,059,099			23,215,390
Asset-backed securities		2,366,140			2,163,313
Other debt securities		111,295			159,797
Equity securities:
Stocks		1,643,898			1,808,906
Equity investments		9,410			16,144
Other equity securities		2,059,980			2,786,933
Loans:
Privately placed bonds		1,446,628			1,995,083

		93,895,912			99,919,485

Financial assets at amortized cost
Debt securities:
Government and public bonds		6,029,059			4,944,116
Financial bonds		12,761,712			13,817,271
Corporate bonds		8,946,009			8,698,069
Asset-backed securities		9,321,199			7,551,248
Other debt securities		72,969			73,785
Less: Allowances for credit losses		(17,396	)		(17,297	)

		37,113,552			35,067,192

	￦	131,009,464		￦	134,986,677

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12.2 Dividend income from equity securities designated at fair value through other comprehensive income for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)		2024				2025
		From the equity securities derecognized		From the equity securities held		From the equity securities derecognized		From the equity securities held
Equity securities measured at fair value through other comprehensive income:
Stocks	Listed	￦	—	￦	3,597	￦	2,211	￦	10,491
Stocks	Unlisted		—		19,724		124		19,479
Equity investments			—		—		—		496
Other equity securities			699		62,505		735		115,418

		￦	699	￦	85,826	￦	3,070	￦	145,884

12.3 Derecognized equity securities measured at fair value through other comprehensive income for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)		2024					2025
		Disposal price		Accumulated other comprehensive income (loss) as of disposal date			Disposal price		Accumulated other comprehensive income (loss) as of disposal date
Equity securities measured at fair value through other comprehensive income:
Stocks	Listed	￦	8,054	￦	(5,586	)	￦	44,537	￦	(10,440	)
Stocks	Unlisted		—		—			47,713		23,446
Other equity securities			131,788		1,937			176,243		232

		￦	139,842	￦	(3,649	)	￦	268,493	￦	13,238

12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023
	Provision		Reversal			Total
Securities measured at fair value through other comprehensive income	￦	17,104	￦	(2,547	)	￦	14,557
Loans measured at fair value through other comprehensive income		920		(3	)		917
Securities measured at amortized cost		15,184		(1,475	)		13,709

	￦	33,208	￦	(4,025	)	￦	29,183


(In millions of Korean won)	2024
	Provision		Reversal			Total
Securities measured at fair value through other comprehensive income	￦	6,913	￦	(6,433	)	￦	480
Loans measured at fair value through other comprehensive income		1,039		(241	)		798
Securities measured at amortized cost		2,300		(4,267	)		(1,967	)

	￦	10,252	￦	(10,941	)	￦	(689	)

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12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Provision		Reversal			Total
Securities measured at fair value through other comprehensive income	￦	7,094	￦	(6,251	)	￦	843
Loans measured at fair value through other comprehensive income		559		(29	)		530
Securities measured at amortized cost		4,454		(4,504	)		(50	)

	￦	12,107	￦	(10,784	)	￦	1,323

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


(In millions of Korean won)	2024
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired		Impaired
Beginning	￦	44,465		￦	—	￦	77
Transfer between stages:
Transfer to 12-month expected credit losses		—			—		—
Transfer to lifetime expected credit losses		—			—		—
Sales		(2,065	)		—		—
Provision (reversal) for credit losses		(694	)		—		5
Others (exchange differences, etc.)		1,325			—		—

Ending	￦	43,031		￦	—	￦	82


(In millions of Korean won)	2025
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired		Impaired
Beginning	￦	43,031		￦	—	￦	82
Transfer between stages:
Transfer to 12-month expected credit losses		—			—		—
Transfer to lifetime expected credit losses		—			—		—
Sales		(3,225	)		—		—
Provision (reversal) for credit losses		1,324			—		(1	)
Others (exchange differences, etc.)		21			—		—

Ending	￦	41,151		￦	—	￦	81

F-128

13. Investments in Associates and Joint Ventures

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
KB-KDBC Pre-IPO New Technology Business Investment Fund 2		66.66	￦	3,001	￦	5,203		￦	5,203	Investment finance	Korea
Balhae Infrastructure Company 1		16.37		138,678		139,015			139,015	Investment finance	Korea
Aju Good Technology Venture Fund		38.46		343		9,313			9,313	Investment finance	Korea
Incheon Bridge Co., Ltd. 1		14.99		9,158		(535	)		—	Operation of highways and related facilities	Korea
Big Dipper Co., Ltd. 1		17.77		440		32			32	Research, consulting, and big data	Korea
Food Factory Co., Ltd.		22.22		1,000		684			1,541	Farm product distribution	Korea
KBSP Private Equity Fund No.4 1		14.95		6,100		3,995			3,995	Investment finance	Korea
Korea Credit Bureau Co., Ltd. 1		9.00		4,500		7,948			7,948	Credit information	Korea
KB Social Impact Investment Fund		30.00		4,500		3,514			3,514	Investment finance	Korea
KB-Solidus Global Healthcare Fund 2		43.33		17,217		16,829			17,525	Investment finance	Korea
POSCO-KB Shipbuilding Fund		31.25		1,826		3,223			3,223	Investment finance	Korea
KB-TS Technology Venture Private Equity Fund 2		56.00		6,608		11,129			11,129	Investment finance	Korea
KB-SJ Tourism Venture Fund 1		18.52		568		1,781			1,781	Investment finance	Korea
UNION Media Commerce Fund		28.99		1,000		946			946	Investment finance	Korea
KB-Stonebridge Secondary Private Equity Fund 1		14.56		16,171		16,867			16,867	Investment finance	Korea
KB SPROTT Renewable Private Equity Fund No.1 2		37.69		9,216		5,764			7,640	Investment finance	Korea
KB-UTC Inno-Tech Venture Fund 2		44.29		18,849		11,730			15,482	Investment finance	Korea
WJ Private Equity Fund No.1		26.95		10,000		9,423			9,423	Investment finance	Korea
All Together Korea Fund No.2 3		99.99		10,000		10,847			10,847	Asset management	Korea
KB-NAU Special Situation Corporate Restructuring Private Equity Fund 1		12.00		10,758		16,043			16,043	Asset management	Korea
2020 KB Fintech Renaissance Fund 1		5.05		550		1,077			1,077	Investment finance	Korea
FineKB Private Equity Fund No.1		25.00		15,940		13,712			13,712	Investment finance	Korea
G payment Joint Stock Company		43.84		7,445		1,504			2,521	Investment advisory and securities trading	Vietnam
KB-GeneN Medical Venture Fund No.1		22.52		2,000		1,880			1,880	Investment finance	Korea
DA-Friend New Technology Investment Fund No.2		27.40		988		906			906	Investment finance	Korea
Cornerstone Pentastone Fund No.4		21.05		818		764			764	Investment finance	Korea
Star-Lord General Investors Private Real Estate Investment Company No.10		26.24		46,700		24,452			—	Real estate investment	Korea
KB-Badgers Future Mobility ESG Fund No.1		40.91		18,076		13,109			13,109	Investment finance	Korea
JS Private Equity Fund No.3		20.48		945		742			742	Investment finance	Korea
Mirae Asset Mobility Investment Fund No.1		22.99		2,000		1,918			1,918	Investment finance	Korea
KB-FT Green Growth 1st Technology Investment Association 1		10.34		2,000		1,889			1,889	Investment finance	Korea
Glenwood Credit Private Equity Fund No.2		29.89		42,000		44,380			44,380	Investment finance	Korea
THE CHAEUL FUND NO.1		31.25		1,000		954			954	Investment finance	Korea
Smart Korea KB Future9-Sejong Venture Fund		38.46		2,366		2,325			2,325	Investment finance	Korea
KB-KTB Technology Venture Fund 2		50.90		28,001		25,446			25,448	Investment finance	Korea
KB-SOLIDUS Healthcare Investment Fund 2		90.40		65,810		62,383			62,282	Investment finance	Korea
Paramark KB Fund No.1 1		17.34		23,671		23,219			23,219	Investment finance	Korea

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13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	December 31, 2024
	Ownership (%)		Acquisition cost		Share of net asset amount		Carrying amount		Industry	Location
KB Co-Investment Private Equity Fund No.1 1		7.12	￦	15,509	￦	15,968	￦	15,968	Investment finance	Korea
POSITIVE Sobujang Venture Fund No.1		44.00		879		869		869	Investment finance	Korea
History 2022 Fintech Fund		34.80		2,000		1,896		1,896	Investment finance	Korea
KB-NP Green ESG New Technology Venture Capital Fund		29.85		40,249		38,592		38,592	Investment finance	Korea
TMAP Mobility Co., Ltd. 1		8.25		199,981		52,287		182,000	Application software development and supply	Korea
Nextrade Co., Ltd. 1		6.64		9,700		8,180		8,180	Investment finance	Korea
Shinhan Global Mobility Fund No.1		24.56		1,345		1,294		1,294	Investment finance	Korea
SKB Next Unicorn K-Battery Fund No.1		24.84		1,908		1,850		1,850	Investment finance	Korea
MW-Pyco NewWave New Technology Investment Fund 4th 2		51.30		2,000		1,922		1,922	Investment finance	Korea
Bitgoeul Cheomdan Green 1st Co., Ltd. 1		19.00		342		241		241	Electricity	Korea
KB-SUSUNG 1st Investment Fund 1		15.00		1,614		2,188		2,188	Investment finance	Korea
Shinhan-Eco Venture Fund 2nd		20.00		2,050		1,973		1,973	Investment finance	Korea
Leading H2O Fund 1		48.20		1,500		1,455		1,455	Investment finance	Korea
2023 JB Newtech No.2 Fund		25.70		1,406		1,705		1,705	Investment finance	Korea
U-KB Credit No.1S Private Equity		33.33		7,300		8,006		8,006	Investment finance	Korea
KB-BridgePole Venture Investment Fund No.2 1		14.29		1,500		1,463		1,463	Investment finance	Korea
Sirius Silicon Valley I New Technology Fund		23.81		500		474		474	Investment finance	Korea
FineKB Private Equity Fund No.2 1		0.85		250		248		248	Investment finance	Korea
Timefolio Athleisure Investment Fund		48.19		4,000		3,923		3,923	Investment finance	Korea
VIG Private Equity Fund V-3		39.60		1,636		4,126		1,636	Investment finance	Korea
COMPA Global Scale-Up Fund No.3		30.00		1,000		980		980	Investment finance	Korea
AKK Robotech Valueup New Technology Investment Fund 1		5.00		1,000		1,127		1,127	Investment finance	Korea
YG MCE PROJECT NO.1 Fund		27.80		1,500		1,477		1,477	Investment finance	Korea
HI YG Win-win Fund No.2		20.62		2,000		1,973		1,973	Investment finance	Korea
KB-CJ Venture Fund 1st		40.00		1,800		1,733		1,733	Investment finance	Korea
Elohim-Bilanx aerospace No.1 Fund		20.94		2,000		1,978		1,978	Investment finance	Korea
KB-SUSUNG 2st Investment Fund 1		12.66		2,000		1,981		1,981	Investment finance	Korea
IMM global Secondary 1-1 Equity Private Fund		41.65		2,819		3,754		3,754	Investment finance	Korea
LIB Material Investment Fund		25.49		4,098		1,475		1,475	Investment finance	Korea
NOVORSEC-SJG Consumer Secondary Fund		24.30		1,700		1,688		1,688	Investment finance	Korea
Allra Fintech Corp. 1		15.77		8,532		1,638		8,684	System software development and supply	Korea
Reboot Private Equity Fund		21.50		7,000		6,946		6,946	Investment finance	Korea
KB-SBI Global Strategic Capital Fund		36.39		11,299		10,782		10,784	Investment finance	Korea
KB-Cyrus Tourism Venture Fund 1		18.52		1,000		977		977	Investment finance	Korea
IBKS Design Fund		46.51		2,000		1,996		1,996	Investment finance	Korea
NICE DATA INTELLIGENCE VENTURE FUND		23.53		1,000		998		998	Investment finance	Korea
Pectus Hanhwa Fund 2		29.41		2,000		1,950		1,950	Investment finance	Korea
KB-IMM New Star Real Estate Private Fund I 2		61.67		31,563		33,074		33,074	Investment finance	Korea

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13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	December 31, 2024
	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Korea Environment Technology Co.,Ltd.		24.31	￦	107,428	￦	43,156		￦	107,428	Non-designated waste treatment	Korea
Others				2,841		2,367			1,911

			￦	1,020,492	￦	765,121		￦	947,390


(In millions of Korean won)	December 31, 2025
	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
KB-KDBC Pre-IPO New Technology Business Investment Fund 2		66.66	￦	—	￦	5,624		￦	2,812	Investment finance	Korea
Balhae Infrastructure Company 1		14.35		123,479		106,822			106,823	Investment finance	Korea
Aju Good Technology Venture Fund		38.46		343		9,093			9,093	Investment finance	Korea
Incheon Bridge Co., Ltd. 1		14.99		9,158		7,383			7,383	Operation of highways and related facilities	Korea
Big Dipper Co., Ltd. 1		17.77		440		(11	)		—	Research, consulting, and big data	Korea
Food Factory Co., Ltd.		22.22		1,000		919			330	Farm product distribution	Korea
Korea Credit Bureau Co., Ltd. 1		9.00		4,500		10,992			10,992	Credit information	Korea
KB Social Impact Investment Fund		30.00		4,500		3,898			3,898	Investment finance	Korea
KB-Solidus Global Healthcare Fund 2		43.33		16,047		1,303			1,999	Investment finance	Korea
POSCO-KB Shipbuilding Fund		31.25		1,576		2,366			2,366	Investment finance	Korea
KB-TS Technology Venture Private Equity Fund 2		56.00		6,608		9,536			9,536	Investment finance	Korea
KB-SJ Tourism Venture Fund 1		18.52		378		1,518			1,518	Investment finance	Korea
UNION Media Commerce Fund		28.99		1,000		941			941	Investment finance	Korea
KB-Stonebridge Secondary Private Equity Fund 1		14.56		11,802		12,008			12,008	Investment finance	Korea
KB SPROTT Renewable Private Equity Fund No.1 2		7.69		4,628		—			822	Investment finance	Korea
KB-UTC Inno-Tech Venture Fund 2		44.29		18,849		7,398			8,724	Investment finance	Korea
WJ Private Equity Fund No.1		26.95		10,000		9,525			9,525	Investment finance	Korea
All Together Korea Fund No.2 3		99.99		10,000		11,026			11,026	Asset management	Korea
KB-NAU Special Situation Corporate Restructuring Private Equity Fund 1		12.00		10,956		19,939			19,939	Asset management	Korea
2020 KB Fintech Renaissance Fund 1		5.05		384		891			891	Investment finance	Korea
FineKB Private Equity Fund No.1		25.00		6,400		9,858			9,858	Investment finance	Korea
G payment Joint Stock Company		43.84		7,445		1,910			2,386	Investment advisory and securities trading	Vietnam
KB-GeneN Medical Venture Fund No.1		22.52		2,000		1,838			1,838	Investment finance	Korea
DA-Friend New Technology Investment Fund No.2		27.40		988		902			902	Investment finance	Korea
Cornerstone Pentastone Fund No.4		21.05		818		763			763	Investment finance	Korea
Star-Lord General Investors Private Real Estate Investment Company No.10		26.24		46,700		—			—	Real estate investment	Korea
KB-Badgers Future Mobility ESG Fund No.1		40.91		19,426		13,286			13,286	Investment finance	Korea
JS Private Equity Fund No.3		20.48		196		411			411	Investment finance	Korea
Mirae Asset Mobility Investment Fund No.1		22.99		2,000		1,885			1,885	Investment finance	Korea
KB-FT Green Growth 1st Technology Investment Association 1		10.34		2,000		1,847			1,847	Investment finance	Korea
Glenwood Credit Private Equity Fund No.2		29.89		42,000		43,887			43,887	Investment finance	Korea

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13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	December 31, 2025
	Ownership (%)		Acquisition cost		Share of net asset amount		Carrying amount		Industry	Location
Smart Korea KB Future9-Sejong Venture Fund		38.46	￦	4,366	￦	4,317	￦	4,317	Investment finance	Korea
KB-KTB Technology Venture Fund 2		50.90		28,001		14,750		24,585	Investment finance	Korea
KB-SOLIDUS Healthcare Investment Fund 2		90.40		89,378		90,279		89,188	Investment finance	Korea
Paramark KB Fund No.1 1		17.34		27,927		27,381		27,381	Investment finance	Korea
KB Co-Investment Private Equity Fund No.1 1		7.12		16,522		16,522		17,359	Investment finance	Korea
KB-NP Green ESG New Technology Venture Capital Fund		29.85		46,109		46,655		46,655	Investment finance	Korea
TMAP Mobility Co., Ltd. 1		8.25		199,981		53,838		182,457	Application software development and supply	Korea
Nextrade Co., Ltd. 1		6.64		9,700		8,374		8,374	Investment finance	Korea
Shinhan Global Mobility Fund No.1		24.56		1,345		1,265		1,265	Investment finance	Korea
SKB Next Unicorn K-Battery Fund No.1		24.84		1,908		1,810		1,810	Investment finance	Korea
MW-Pyco NewWave New Technology Investment Fund 4th 2		51.30		2,000		—		—	Investment finance	Korea
Bitgoeul Cheomdan Green 1st Co., Ltd. 1		19.00		342		240		240	Electricity	Korea
KB-SUSUNG 1st Investment Fund 1		15.00		195		833		833	Investment finance	Korea
Shinhan-Eco Venture Fund 2nd		20.00		1,885		1,807		1,807	Investment finance	Korea
Leading H2O Fund 1		48.20		1,500		1,421		1,421	Investment finance	Korea
U-KB Credit No.1S Private Equity		33.33		24,433		21,743		21,740	Investment finance	Korea
KB-BridgePole Venture Investment Fund No.2 1		14.29		1,500		1,432		1,432	Investment finance	Korea
Sirius Silicon Valley I New Technology Fund		23.81		500		463		463	Investment finance	Korea
FineKB Private Equity Fund No.2 1		0.85		250		245		245	Investment finance	Korea
Timefolio Athleisure Investment Fund		48.19		4,000		3,750		3,750	Investment finance	Korea
VIG Private Equity Fund V-3		39.60		4,484		15,127		4,268	Investment finance	Korea
COMPA Global Scale-Up Fund No.3		30.00		1,000		957		957	Investment finance	Korea
YG MCE PROJECT NO.1 Fund		27.80		1,500		—		—	Investment finance	Korea
HI YG Win-win Fund No.2		20.62		2,000		2,154		2,154	Investment finance	Korea
KB-CJ Venture Fund 1st		40.00		1,800		1,869		1,869	Investment finance	Korea
Elohim-Bilanx aerospace No.1 Fund		20.94		2,000		1,937		1,937	Investment finance	Korea
KB-SUSUNG 2st Investment Fund 1		12.66		2,000		1,959		1,959	Investment finance	Korea
IMM global Secondary 1-1 Equity Private Fund		41.65		3,413		4,975		4,975	Investment finance	Korea
LIB Material Investment Fund		25.49		4,098		829		829	Investment finance	Korea
Allra Fintech Corp. 1		14.98		8,547		2,119		8,813	System software development and supply	Korea
Reboot Private Equity Fund		21.50		7,000		6,839		6,839	Investment finance	Korea

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13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	December 31, 2025
	Ownership (%)		Acquisition cost		Share of net asset amount		Carrying amount		Industry	Location
KB-SBI Global Strategic Capital Fund		36.39	￦	34,112	￦	32,708	￦	32,711	Investment finance	Korea
KB-Cyrus Tourism Venture Fund 1		18.52		2,000		1,855		1,855	Investment finance	Korea
IBKS Design Fund		46.51		2,000		4,811		4,811	Investment finance	Korea
KB-IMM New Star Real Estate Private Fund I 2		61.67		60,845		63,022		63,022	Investment finance	Korea
KB-LB Middle Market Enterprises Innovation Private Equity Fund		36.20		8,137		7,075		7,073	Investment finance	Korea
YG AI Industrial Automation Solutions FUND		28.20		2,000		1,992		1,992	Investment finance	Korea
Semicolon Susong REITs Co., Ltd.		49.87		86,292		85,335		85,331	Investment finance	Korea
KB-Novus Genesis Private Equity Fund 1		9.40		2,300		2,267		2,267	Investment finance	Korea
ATP TP VC Fund No.1		39.60		2,000		1,976		1,976	Investment finance	Korea
AIM-KB-DOUBLE Connected Future Investment Fund 1		8.33		1,000		984		984	Investment finance	Korea
KB-IMM New Star Real Estate Private Fund II 2		60.91		26,337		16,525		26,361	Investment finance	Korea
K-1 23rd yeoksam Real Estate Investment Trust company Ltd.		41.30		61,901		62,424		62,424	Investment finance	Korea
IMM Korea Beauty Co-Invest Private Equity Fund 2		51.00		50,000		49,633		49,633	Investment finance	Korea
VP Inc. 1		10.80		14,312		12,659		14,312	Other financial support service	Korea
DAILY Fountainhead Blind Private Equity Fund II		49.02		11,250		5,360		10,746	Investment finance	Korea
KB-ANDA Deep Tech Venture Fund		30.00		1,250		1,250		1,250	Investment finance	Korea
Others				1,668		14,861		2,825

			￦	1,232,709	￦	998,385	￦	1,137,184

1	As of December 31, 2024 and 2025, the Group can exercise significant influence on the decision-making processes of the associate’s financial and business policies through participation in governing bodies.

2	In order to direct relevant activities, it is necessary to obtain the consent of the two co-operative members; the Group has applied the equity method as the Group cannot control the investee by itself.

3	As of December 31, 2024 and 2025, the Group participates in the investment management committee but cannot exercise control.

In accordance with IAS No.28

Investments in Associates and Joint Ventures

, the Group elected an exemption from applying the equity method for 68 associates, including New Daegu Busan Expressway Co., Ltd., and for an associate that the Group determined it does not have substantive access to returns associated with its ownership interest, namely Meritz Hyundai Investment Real Estate Strategy No.1 PEF, and classified them as financial assets at fair value through profit or loss.

Although the Group holds 20% or more of the ownership, investment trusts with limited influence on related activities according to trust contracts, and companies with limited influence on related activities due to bankruptcy and corporate rehabilitation proceedings are excluded from associates.

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13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	December 31, 2024*
	Total assets		Total liabilities		Paid-in capital		Equity			Share of net asset amount			Unrealized gains (losses) and others			Consolidated carrying amount
KB-KDBC Pre-IPO New Technology Business Investment Fund	￦	7,804	￦	—	￦	4,500	￦	7,804		￦	5,203		￦	—		￦	5,203
Balhae Infrastructure Company		971,597		122,393		882,264		849,204			139,015			—			139,015
Aju Good Technology Venture Fund		24,214		—		900		24,214			9,313			—			9,313
Incheon Bridge Co., Ltd.		517,004		520,577		61,096		(3,573	)		(535	)		535			—
Big Dipper Co., Ltd.		1,527		1,345		495		182			32			—			32
Food Factory Co., Ltd.		8,330		5,253		450		3,077			684			857			1,541
KBSP Private Equity Fund No.4		22,631		560		33,700		22,071			3,995			—			3,995
Korea Credit Bureau Co., Ltd.		150,657		62,343		10,000		88,314			7,948			—			7,948
KB Social Impact Investment Fund		11,965		253		15,000		11,712			3,514			—			3,514
KB-Solidus Global Healthcare Fund		38,836		—		3,000		38,836			16,829			696			17,525
POSCO-KB Shipbuilding Fund		10,316		1		5,840		10,315			3,223			—			3,223
KB-TS Technology Venture Private Equity Fund		26,460		6,587		11,800		19,873			11,129			—			11,129
KB-SJ Tourism Venture Fund		9,893		276		3,078		9,617			1,781			—			1,781
UNION Media Commerce Fund		3,318		56		3,450		3,262			946			—			946
KB-Stonebridge Secondary Private Equity Fund		115,993		193		111,020		115,800			16,867			—			16,867
KB SPROTT Renewable Private Equity Fund No.1		24,548		251		29,313		24,297			5,764			1,876			7,640
KB-UTC Inno-Tech Venture Fund		26,935		448		42,418		26,487			11,730			3,752			15,482
WJ Private Equity Fund No.1		35,435		475		37,100		34,960			9,423			—			9,423
All Together Korea Fund No.2		10,849		1		10,001		10,848			10,847			—			10,847
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		123,434		408		82,500		123,026			16,043			—			16,043
2020 KB Fintech Renaissance Fund		21,377		38		10,900		21,339			1,077			—			1,077
FineKB Private Equity Fund No.1		55,144		294		63,760		54,850			13,712			—			13,712
G payment Joint Stock Company		10,253		2,994		2,950		7,259			1,504			1,017			2,521
KB-GeneN Medical Venture Fund No.1		8,526		178		8,880		8,348			1,880			—			1,880
DA-Friend New Technology Investment Fund No.2		3,500		151		3,650		3,349			906			—			906
Cornerstone Pentastone Fund No.4		3,553		3		3,800		3,550			764			—			764
Star-Lord General Investors Private Real Estate Investment Company No.10		514,425		421,241		178,000		93,184			24,452			(24,452	)		—
KB-Badgers Future Mobility ESG Fund No.1		32,051		—		44,198		32,051			13,109			—			13,109
JS Private Equity Fund No.3		3,625		—		4,614		3,625			742			—			742
Mirae Asset Mobility Investment Fund No.1		8,417		75		8,700		8,342			1,918			—			1,918
KB-FT Green Growth 1st Technology Investment Association		18,271		—		19,345		18,271			1,889			—			1,889
Glenwood Credit Private Equity Fund No.2		148,970		508		140,500		148,462			44,380			—			44,380
THE CHAEUL FUND NO.1		3,053		—		3,200		3,053			954			—			954
Smart Korea KB Future9-Sejong Venture Fund		6,044		—		6,152		6,044			2,325			—			2,325
KB-KTB Technology Venture Fund		50,673		687		55,000		49,986			25,446			2			25,448
KB-SOLIDUS Healthcare Investment Fund		69,004		3		72,930		69,001			62,383			(101	)		62,282
Paramark KB Fund No.1		133,926		28		136,324		133,898			23,219			—			23,219
KB Co-Investment Private Equity Fund No.1		224,659		417		217,807		224,242			15,968			—			15,968
POSITIVE Sobujang Venture Fund No.1		2,003		26		2,000		1,977			869			—			869
History 2022 Fintech Fund		5,507		55		5,750		5,452			1,896			—			1,896
KB-NP Green ESG New Technology Venture Capital Fund		133,929		775		138,872		133,154			38,592			—			38,592
TMAP Mobility Co., Ltd.		797,292		163,070		8,681		634,222			52,287			129,713			182,000
Nextrade Co., Ltd.		125,776		2,563		146,100		123,213			8,180			—			8,180
Shinhan Global Mobility Fund No.1		5,320		51		5,700		5,269			1,294			—			1,294

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(In millions of Korean won)
	December 31, 2024*
	Total assets		Total liabilities		Paid-in capital		Equity		Share of net asset amount		Unrealized gains (losses) and others			Consolidated carrying amount
SKB Next Unicorn K-Battery Fund No.1	￦	7,446	￦	—	￦	7,700	￦	7,446	￦	1,850	￦	—		￦	1,850
MW-Pyco NewWave New Technology Investment Fund 4th		3,747		—		3,900		3,747		1,922		—			1,922
Bitgoeul Cheomdan Green 1st Co., Ltd.		1,274		5		1,800		1,269		241		—			241
KB-SUSUNG 1st Investment Fund		14,590		—		10,760		14,590		2,188		—			2,188
Shinhan-Eco Venture Fund 2nd		9,868		3		10,250		9,865		1,973		—			1,973
Leading H2O Fund 1		3,018		1		3,110		3,017		1,455		—			1,455
2023 JB Newtech No.2 Fund		6,634		3		5,466		6,631		1,705		—			1,705
U-KB Credit No.1 Private Equity		24,988		974		21,900		24,014		8,006		—			8,006
KB-BridgePole Venture Investment Fund No.2		10,244		—		10,500		10,244		1,463		—			1,463
Sirius Silicon Valley I New Technology Fund		1,994		1		2,100		1,993		474		—			474
FineKB Private Equity Fund No.2		29,324		78		29,501		29,246		248		—			248
Timefolio Athleisure Investment Fund		8,140		—		8,300		8,140		3,923		—			3,923
VIG Private Equity Fund V-3		4,131		5		4,131		4,126		4,126		(2,490	)		1,636
COMPA Global Scale-Up Fund No.3		3,266		—		3,334		3,266		980		—			980
AKK Robotech Valueup New Technology Investment Fund		22,651		6		20,100		22,645		1,127		—			1,127
YG MCE PROJECT NO.1 Fund		5,317		—		5,400		5,317		1,477		—			1,477
HI YG Win-win Fund No.2		9,568		—		9,700		9,568		1,973		—			1,973
KB-CJ Venture Fund 1st		4,333		1		4,500		4,332		1,733		—			1,733
Elohim-Bilanx aerospace No.1 Fund		9,451		5		9,550		9,446		1,978		—			1,978
KB-SUSUNG 2st Investment Fund		15,649		—		15,800		15,649		1,981		—			1,981
IMM global Secondary 1-1 Equity Private Fund		9,503		490		6,769		9,013		3,754		—			3,754
LIB Material Investment Fund		5,787		—		31,387		5,787		1,475		—			1,475
NOVORSEC-SJG Consumer Secondary Fund		6,949		—		7,000		6,949		1,688		—			1,688
Allra Fintech Corp.		185,699		175,310		174		10,389		1,638		7,046			8,684
Reboot Private Equity Fund		32,376		127		32,500		32,249		6,946		—			6,946
KB-SBI Global Strategic Capital Fund		30,205		575		31,046		29,630		10,782		2			10,784
KB-Cyrus Tourism Venture Fund		5,277		—		5,400		5,277		977		—			977
IBKS Design Fund		4,292		—		4,300		4,292		1,996		—			1,996
NICE DATA INTELLIGENCE VENTURE FUND		4,241		—		4,250		4,241		998		—			998
Pectus Hanhwa Fund 2		6,631		—		6,800		6,631		1,950		—			1,950
KB-IMM New Star Real Estate Private Fund I		53,736		110		51,177		53,626		33,074		—			33,074
Korea Environment Technology Co.,Ltd.		232,104		54,581		25,000		177,523		43,156		64,272			107,428


(In millions of Korean won)
	2024*
	Operating revenue		Net profit (loss)			Other comprehensive income (loss)		Total comprehensive income (loss)			Dividends
KB-KDBC Pre-IPO New Technology Business Investment Fund	￦	398	￦	(541	)	￦	—	￦	(541	)	￦	—
Balhae Infrastructure Company		63,727		70,486			—		70,486			1,541
Aju Good Technology Venture Fund		3,396		(7,447	)		—		(7,447	)		2,120
Incheon Bridge Co., Ltd.		171,687		66,701			—		66,701			—
Big Dipper Co., Ltd.		251		(346	)		—		(346	)		—
Food Factory Co., Ltd.		8,804		428			—		428			—
KBSP Private Equity Fund No.4		8,363		8,143			—		8,143			—
Korea Credit Bureau Co., Ltd.		175,338		26,589			—		26,589			90
KB Social Impact Investment Fund		476		(4,465	)		—		(4,465	)		—
KB-Solidus Global Healthcare Fund		11,049		(114	)		—		(114	)		910

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(In millions of Korean won)
	2024*
	Operating revenue		Net profit (loss)			Other comprehensive income (loss)			Total comprehensive income (loss)			Dividends
POSCO-KB Shipbuilding Fund	￦	944	￦	(4,848	)	￦	—		￦	(4,848	)	￦	—
KB-TS Technology Venture Private Equity Fund		1,832		946			—			946			—
KB-SJ Tourism Venture Fund		26,720		22,068			—			22,068			1,517
UNION Media Commerce Fund		—		(23	)		—			(23	)		—
KB-Stonebridge Secondary Private Equity Fund		6,646		(8,923	)		—			(8,923	)		52
KB SPROTT Renewable Private Equity Fund No.1		1		(681	)		—			(681	)		—
KB-UTC Inno-Tech Venture Fund		963		(2,620	)		(561	)		(3,181	)		—
WJ Private Equity Fund No.1		425		(222	)		—			(222	)		—
All Together Korea Fund No.2		313		307			—			307			—
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		24,534		(28,117	)		—			(28,117	)		—
2020 KB Fintech Renaissance Fund		868		714			—			714			—
FineKB Private Equity Fund No.1		4,809		3,028			—			3,028			32
G payment Joint Stock Company		1,411		(944	)		—			(944	)		—
KB-GeneN Medical Venture Fund No.1		—		(187	)		—			(187	)		—
DA-Friend New Technology Investment Fund No.2		—		(79	)		—			(79	)		—
Cornerstone Pentastone Fund No.4		—		(50	)		—			(50	)		—
Star-Lord General Investors Private Real Estate Investment Company No.10		18,279		(4,135	)		—			(4,135	)		—
KB-Badgers Future Mobility ESG Fund No.1		954		(8,304	)		—			(8,304	)		2
JS Private Equity Fund No.3		309		(1,778	)		—			(1,778	)		—
Mirae Asset Mobility Investment Fund No.1		14		(135	)		—			(135	)		—
KB-FT Green Growth 1st Technology Investment Association		12		(379	)		—			(379	)		—
Glenwood Credit Private Equity Fund No.2		10,374		9,632			—			9,632			2,430
THE CHAEUL FUND NO.1		1		(58	)		—			(58	)		—
Smart Korea KB Future9-Sejong Venture Fund		37		(190	)		—			(190	)		—
KB-KTB Technology Venture Fund		693		(3,031	)		—			(3,031	)		—
KB-SOLIDUS Healthcare Investment Fund		40		(1,284	)		—			(1,284	)		—
Paramark KB Fund No.1		12,737		8,329			—			8,329			—
KB Co-Investment Private Equity Fund No.1		24,679		23,302			—			23,302			—
POSITIVE Sobujang Venture Fund No.1		5,742		4,900			—			4,900			2,129
History 2022 Fintech Fund		1		(120	)		—			(120	)		—
KB-NP Green ESG New Technology Venture Capital Fund		767		(2,197	)		—			(2,197	)		—
TMAP Mobility Co., Ltd.		321,542		(58,287	)		—			(58,287	)		—
Nextrade Co., Ltd.		3,856		(15,737	)		—			(15,737	)		—
Shinhan Global Mobility Fund No.1		—		(120	)		—			(120	)		—
SKB Next Unicorn K-Battery Fund No.1		—		(162	)		—			(162	)		—
MW-Pyco NewWave New Technology Investment Fund 4th		1		(84	)		—			(84	)		—
Bitgoeul Cheomdan Green 1st Co., Ltd.		1		(396	)		—			(396	)		—
KB-SUSUNG 1st Investment Fund		5,164		4,140			—			4,140			—
Shinhan-Eco Venture Fund 2nd		—		(260	)		—			(260	)		—
Leading H2O Fund 1		3		(71	)		—			(71	)		—
2023 JB Newtech No.2 Fund		2,533		1,804			—			1,804			150
U-KB Credit No.1 Private Equity		4,487		2,263			—			2,263			—
KB-BridgePole Venture Investment Fund No.2		4		(216	)		—			(216	)		—
Sirius Silicon Valley I New Technology Fund		10		(45	)		—			(45	)		—
FineKB Private Equity Fund No.2		4		(255	)		—			(255	)		—
Timefolio Athleisure Investment Fund		6		(160	)		—			(160	)		—
VIG Private Equity Fund V-3		—		(5	)		—			(5	)		—
COMPA Global Scale-Up Fund No.3		9		(68	)		—			(68	)		—

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(In millions of Korean won)
	2024*
	Operating revenue		Net profit (loss)			Other comprehensive income (loss)		Total comprehensive income (loss)			Dividends
AKK Robotech Valueup New Technology Investment Fund	￦	2,976	￦	2,545		￦	—	￦	2,545		￦	—
YG MCE PROJECT NO.1 Fund		2		(83	)		—		(83	)		—
HI YG Win-win Fund No.2		4		(132	)		—		(132	)		—
KB-CJ Venture Fund 1st		34		(168	)		—		(168	)		—
Elohim-Bilanx aerospace No.1 Fund		2		(104	)		—		(104	)		—
KB-SUSUNG 2st Investment Fund		43		(151	)		—		(151	)		—
IMM global Secondary 1-1 Equity Private Fund		2,318		2,245			—		2,245			—
LIB Material Investment Fund		—		(19,096	)		—		(19,096	)		—
NOVORSEC-SJG Consumer Secondary Fund		7		(51	)		—		(51	)		—
Allra Fintech Corp.		6,475		966			—		966			—
Reboot Private Equity Fund		1		(251	)		—		(251	)		—
KB-SBI Global Strategic Capital Fund		2		(1,416	)		—		(1,416	)		—
KB-Cyrus Tourism Venture Fund		5		(123	)		—		(123	)		—
IBKS Design Fund		—		(8	)		—		(8	)		—
NICE DATA INTELLIGENCE VENTURE FUND		—		(9	)		—		(9	)		—
Pectus Hanhwa Fund 2		—		(169	)		—		(169	)		—
KB-IMM New Star Real Estate Private Fund I		2,681		2,449			—		2,449			—
Korea Environment Technology Co.,Ltd.		63,024		21,181			—		21,181			—


(In millions of Korean won)
	December 31, 2025*
	Total assets		Total liabilities		Paid-in capital		Equity			Share of net asset amount			Unrealized gains (losses) and others			Consolidated carrying amount
KB-KDBC Pre-IPO New Technology Business Investment Fund	￦	8,436	￦	—	￦	—	￦	8,436		￦	5,624		￦	(2,812	)	￦	2,812
Balhae Infrastructure Company		912,236		167,829		825,006		744,407			106,822			1			106,823
Aju Good Technology Venture Fund		23,643		—		900		23,643			9,093			—			9,093
Incheon Bridge Co., Ltd.		511,041		461,785		61,096		49,256			7,383			—			7,383
Big Dipper Co., Ltd.		1,579		1,640		495		(61	)		(11	)		11			—
Food Factory Co., Ltd.		10,525		6,389		450		4,136			919			(589	)		330
Korea Credit Bureau Co., Ltd.		160,778		38,645		10,000		122,133			10,992			—			10,992
KB Social Impact Investment Fund		13,197		203		15,000		12,994			3,898			—			3,898
KB-Solidus Global Healthcare Fund		9,882		6,876		300		3,006			1,303			696			1,999
POSCO-KB Shipbuilding Fund		7,572		1		5,040		7,571			2,366			—			2,366
KB-TS Technology Venture Private Equity Fund		23,948		6,920		11,800		17,028			9,536			—			9,536
KB-SJ Tourism Venture Fund		8,354		155		2,052		8,199			1,518			—			1,518
UNION Media Commerce Fund		3,318		73		3,450		3,245			941			—			941
KB-Stonebridge Secondary Private Equity Fund		82,582		140		81,020		82,442			12,008			—			12,008
KB SPROTT Renewable Private Equity Fund No.1		8,890		815		13,795		8,075			—			822			822
KB-UTC Inno-Tech Venture Fund		16,914		210		42,418		16,704			7,398			1,326			8,724
WJ Private Equity Fund No.1		35,436		99		37,100		35,337			9,525			—			9,525
All Together Korea Fund No.2		11,028		1		10,001		11,027			11,026			—			11,026
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		150,638		502		82,500		150,136			19,939			—			19,939
2020 KB Fintech Renaissance Fund		17,657		1		7,630		17,656			891			—			891
FineKB Private Equity Fund No.1		39,454		23		25,600		39,431			9,858			—			9,858
G payment Joint Stock Company		12,589		5,714		3,505		6,875			1,910			476			2,386
KB-GeneN Medical Venture Fund No.1		8,517		354		8,880		8,163			1,838			—			1,838

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(In millions of Korean won)
	December 31, 2025*
	Total assets		Total liabilities		Paid-in capital		Equity		Share of net asset amount		Unrealized gains (losses) and others			Consolidated carrying amount
DA-Friend New Technology Investment Fund No.2	￦	3,500	￦	168	￦	3,650	￦	3,332	￦	902	￦	—		￦	902
Cornerstone Pentastone Fund No.4		3,550		3		3,800		3,547		763		—			763
Star-Lord General Investors Private Real Estate Investment Company No.10		550,993		418,340		178,000		132,653		—		—			—
KB-Badgers Future Mobility ESG Fund No.1		32,486		—		47,498		32,486		13,286		—			13,286
JS Private Equity Fund No.3		2,006		—		956		2,006		411		—			411
Mirae Asset Mobility Investment Fund No.1		8,276		74		8,700		8,202		1,885		—			1,885
KB-FT Green Growth 1st Technology Investment Association		17,868		—		19,345		17,868		1,847		—			1,847
Glenwood Credit Private Equity Fund No.2		147,382		570		140,500		146,812		43,887		—			43,887
Smart Korea KB Future9-Sejong Venture Fund		11,223		—		11,352		11,223		4,317		—			4,317
KB-KTB Technology Venture Fund		49,093		802		55,000		48,291		14,750		9,835			24,585
KB-SOLIDUS Healthcare Investment Fund		99,859		3		99,000		99,856		90,279		(1,091	)		89,188
Paramark KB Fund No.1		157,927		30		160,873		157,897		27,381		—			27,381
KB Co-Investment Private Equity Fund No.1		244,227		440		232,032		243,787		16,522		837			17,359
KB-NP Green ESG New Technology Venture Capital Fund		164,620		3,650		159,089		160,970		46,655		—			46,655
TMAP Mobility Co., Ltd.		704,504		83,910		8,682		620,594		53,838		128,619			182,457
Nextrade Co., Ltd.		129,215		3,091		146,100		126,124		8,374		—			8,374
Shinhan Global Mobility Fund No.1		5,317		165		5,700		5,152		1,265		—			1,265
SKB Next Unicorn K-Battery Fund No.1		7,283		—		7,700		7,283		1,810		—			1,810
Bitgoeul Cheomdan Green 1st Co., Ltd.		1,270		5		1,800		1,265		240		—			240
KB-SUSUNG 1st Investment Fund		5,550		—		1,300		5,550		833		—			833
Shinhan-Eco Venture Fund 2nd		9,043		6		9,425		9,037		1,807		—			1,807
Leading H2O Fund 1		2,947		1		3,110		2,946		1,421		—			1,421
U-KB Credit No.1S Private Equity		70,559		1,018		73,300		69,541		21,743		(3	)		21,740
KB-BridgePole Venture Investment Fund No.2		10,027		—		10,500		10,027		1,432		—			1,432
Sirius Silicon Valley I New Technology Fund		1,946		1		2,100		1,945		463		—			463
FineKB Private Equity Fund No.2		28,345		78		28,822		28,267		245		—			245
Timefolio Athleisure Investment Fund		7,782		—		8,300		7,782		3,750		—			3,750
VIG Private Equity Fund V-3		15,140		13		15,892		15,127		15,127		(10,859	)		4,268
COMPA Global Scale-Up Fund No.3		3,191		—		3,334		3,191		957		—			957
HI YG Win-win Fund No.2		10,446		—		9,700		10,446		2,154		—			2,154
KB-CJ Venture Fund 1st		4,732		58		4,500		4,674		1,869		—			1,869
Elohim-Bilanx aerospace No.1 Fund		9,249		—		9,550		9,249		1,937		—			1,937
KB-SUSUNG 2st Investment Fund		15,475		—		15,800		15,475		1,959		—			1,959
IMM global Secondary 1-1 Equity Private Fund		12,152		206		8,195		11,946		4,975		—			4,975
LIB Material Investment Fund		3,042		—		29,342		3,042		829		—			829
Allra Fintech Corp.		55,722		41,573		183		14,149		2,119		6,694			8,813
Reboot Private Equity Fund		31,880		128		32,500		31,752		6,839		—			6,839
KB-SBI Global Strategic Capital Fund		90,337		455		93,732		89,882		32,708		3			32,711
KB-Cyrus Tourism Venture Fund		10,019		—		10,800		10,019		1,855		—			1,855
IBKS Design Fund		10,344		—		4,300		10,344		4,811		—			4,811
KB-IMM New Star Real Estate Private Fund I		101,364		4,334		93,677		97,030		63,022		—			63,022
KB-LB Middle Market Enterprises Innovation Private Equity Fund		20,062		515		22,491		19,547		7,075		(2	)		7,073
YG AI Industrial Automation Solutions FUND		7,073		—		7,100		7,073		1,992		—			1,992
Semicolon Susong REITs Co., Ltd.		597,991		408,961		39,100		189,030		85,335		(4	)		85,331
KB-Novus Genesis Private Equity Fund		24,245		93		24,500		24,152		2,267		—			2,267
ATP TP VC Fund No.1		4,994		4		5,051		4,990		1,976		—			1,976

F-138


(In millions of Korean won)
	December 31, 2025*
	Total assets		Total liabilities		Paid-in capital		Equity		Share of net asset amount		Unrealized gains (losses) and others		Consolidated carrying amount
AIM-KB-DOUBLE Connected Future Investment Fund	￦	11,868	￦	63	￦	12,000	￦	11,805	￦	984	￦	—	￦	984
KB-IMM New Star Real Estate Private Fund II		43,969		690		43,240		43,279		16,525		9,836		26,361
K-1 23rd yeoksam Real Estate Investment Trust company Ltd.		294,284		169,062		15,350		125,222		62,424		—		62,424
IMM Korea Beauty Co-Invest Private Equity Fund		97,550		269		98,000		97,281		49,633		—		49,633
VP Inc.		100,680		17,997		3,703		82,683		12,659		1,653		14,312
DAILY Fountainhead Blind Private Equity Fund II		21,938		23		23,000		21,915		5,360		5,386		10,746
KB-ANDA Deep Tech Venture Fund		4,435		270		4,165		4,165		1,250		—		1,250


(In millions of Korean won)	2025*
	Operating revenue		Net profit (loss)			Other comprehensive income (loss)		Total comprehensive income (loss)			Dividends
KB-KDBC Pre-IPO New Technology Business Investment Fund	￦	275	￦	(406	)	￦	—	￦	(406	)	￦	60
Balhae Infrastructure Company		67,036		(24,054	)		—		(24,054	)		13,039
Aju Good Technology Venture Fund		1,801		1,456			—		1,456			780
Incheon Bridge Co., Ltd.		164,260		70,592			—		70,592			—
Big Dipper Co., Ltd.		268		(260	)		—		(260	)		—
Food Factory Co., Ltd.		5,093		323			—		323			—
Korea Credit Bureau Co., Ltd.		202,976		36,559			—		36,559			90
KB Social Impact Investment Fund		1,544		1,282			—		1,282			—
KB-Solidus Global Healthcare Fund		19,856		6,671			—		6,671			17,247
POSCO-KB Shipbuilding Fund		293		(1,944	)		—		(1,944	)		—
KB-TS Technology Venture Private Equity Fund		2		(582	)		—		(582	)		—
KB-SJ Tourism Venture Fund		6,009		1,411			—		1,411			334
UNION Media Commerce Fund		—		(17	)		—		(17	)		—
KB-Stonebridge Secondary Private Equity Fund		2,349		(1,531	)		—		(1,531	)		217
KB SPROTT Renewable Private Equity Fund No.1		—		(704	)		—		(704	)		—
KB-UTC Inno-Tech Venture Fund		25		(328	)		—		(328	)		—
WJ Private Equity Fund No.1		570		375			—		375			—
All Together Korea Fund No.2		241		235			—		235			—
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		10,187		27,110			—		27,110			—
2020 KB Fintech Renaissance Fund		792		(413	)		—		(413	)		—
FineKB Private Equity Fund No.1		23,909		22,868			—		22,868			32
G payment Joint Stock Company		5,072		1			—		1			—
KB-GeneN Medical Venture Fund No.1		—		(186	)		—		(186	)		—
DA-Friend New Technology Investment Fund No.2		—		(17	)		—		(17	)		—
Cornerstone Pentastone Fund No.4		—		(2	)		—		(2	)		—
Star-Lord General Investors Private Real Estate Investment Company No.10		37,751		39,470			—		39,470			—
KB-Badgers Future Mobility ESG Fund No.1		154		(2,858	)		—		(2,858	)		3
JS Private Equity Fund No.3		2,152		2,039			—		2,039			—
Mirae Asset Mobility Investment Fund No.1		8		(140	)		—		(140	)		—
KB-FT Green Growth 1st Technology Investment Association		—		(403	)		—		(403	)		—

F-139

Table of Contents


(In millions of Korean won)	2025*
	Operating revenue		Net profit (loss)			Other comprehensive income (loss)		Total comprehensive income (loss)			Dividends
Glenwood Credit Private Equity Fund No.2	￦	10,374	￦	9,632		￦	—	￦	9,632		￦	2,425
Smart Korea KB Future9-Sejong Venture Fund		6		(4	)		—		(4	)		—
KB-KTB Technology Venture Fund		135		(4,682	)		—		(4,682	)		—
KB-SOLIDUS Healthcare Investment Fund		2,985		1,522			3,263		4,785			—
Paramark KB Fund No.1		8,369		(550	)		—		(550	)		—
KB Co-Investment Private Equity Fund No.1		9,480		7,699			—		7,699			472
KB-NP Green ESG New Technology Venture Capital Fund		7,955		7,600			—		7,600			—
TMAP Mobility Co., Ltd.		283,545		24,832			—		24,832			—
Nextrade Co., Ltd.		39,766		2,910			—		2,910			—
Shinhan Global Mobility Fund No.1		—		(117	)		—		(117	)		—
SKB Next Unicorn K-Battery Fund No.1		—		(163	)		—		(163	)		—
Bitgoeul Cheomdan Green 1st Co., Ltd.		—		(4	)		—		(4	)		—
KB-SUSUNG 1st Investment Fund		1,652		420			—		420			—
Shinhan-Eco Venture Fund 2nd		257		(4	)		—		(4	)		—
Leading H2O Fund 1		2		(71	)		—		(71	)		—
U-KB Credit No.1S Private Equity		591		(5,873	)		—		(5,873	)		—
KB-BridgePole Venture Investment Fund No.2		3		(217	)		—		(217	)		—
Sirius Silicon Valley I New Technology Fund		7		(48	)		—		(48	)		—
FineKB Private Equity Fund No.2		1		(300	)		—		(300	)		—
Timefolio Athleisure Investment Fund		81		(358	)		—		(358	)		—
VIG Private Equity Fund V-3		—		(760	)		—		(760	)		—
COMPA Global Scale-Up Fund No.3		4		(75	)		—		(75	)		—
HI YG Win-win Fund No.2		6		878			—		878			—
KB-CJ Venture Fund 1st		726		341			—		341			—
Elohim-Bilanx aerospace No.1 Fund		3		(197	)		—		(197	)		—
KB-SUSUNG 2st Investment Fund		458		(173	)		—		(173	)		—
IMM global Secondary 1-1 Equity Private Fund		1,555		1,515			—		1,515			4
LIB Material Investment Fund		—		(700	)		—		(700	)		—
Allra Fintech Corp.		20,431		946			—		946			—
Reboot Private Equity Fund		6		(497	)		—		(497	)		—
KB-SBI Global Strategic Capital Fund		99		(2,433	)		—		(2,433	)		—
KB-Cyrus Tourism Venture Fund		18		(657	)		—		(657	)		—
IBKS Design Fund		6,114		6,052			—		6,052			—
KB-IMM New Star Real Estate Private Fund I		8,460		5,307			—		5,307			2,824
KB-LB Middle Market Enterprises Innovation Private Equity Fund		—		(2,944	)		—		(2,944	)		—
YG AI Industrial Automation Solutions FUND		75		(27	)		—		(27	)		—
Semicolon Susong REITs Co., Ltd.		13,974		(17	)		—		(17	)		961
KB-Novus Genesis Private Equity Fund		4		(348	)		—		(348	)		—
ATP TP VC Fund No.1		1		(61	)		—		(61	)		—
AIM-KB-DOUBLE Connected Future Investment Fund		1		(195	)		—		(195	)		—
KB-IMM New Star Real Estate Private Fund II		840		401			—		401			220
K-1 23rd yeoksam Real Estate Investment Trust company Ltd.		3,915		3,857			—		3,857			2,334
IMM Korea Beauty Co-Invest Private Equity Fund		1		(719	)		—		(719	)		—
DAILY Fountainhead Blind Private Equity Fund II		150		(974	)		—		(975	)		19

*	The condensed financial information of the associates and joint ventures is adjusted to reflect adjustments, such as fair value adjustments recognized at the time of acquisition and adjustments for differences in accounting policies.

F-140

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024*
	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other compre- hensive income (loss)			Others		Ending

KB-KDBC Pre-IPO New Technology Business Investment Fund	￦	6,063	￦	—	￦	(600	)	￦	—		￦	(260	)	￦	—		￦	—	￦	5,203
Balhae Infrastructure Company		93,766		48,051		(4,810	)		(1,541	)		3,549			—			—		139,015
Aju Good Technology Venture Fund		14,296		—		—			(2,120)			(2,863	)		—			—		9,313
Big Dipper Co., Ltd.		94		—		—			—			(62	)		—			—		32
Food Factory Co., Ltd.		1,483		—		—			—			57			1			—		1,541
KBSP Private Equity Fund No.4		2,494		—		—			—			832			668			—		3,994
Korea Credit Bureau Co., Ltd.		5,617		—		—			(90	)		2,422			—			—		7,949
KB Social Impact Investment Fund		4,853		—		—			—			(1,340	)		—			—		3,513
KB-Solidus Global Healthcare Fund		18,485		—		—			(910	)		(50	)		—			—		17,525
POSCO-KB Shipbuilding Fund		4,738		—		—			—			(1,515	)		—			—		3,223
KB-TS Technology Venture Private Equity Fund		12,372		—		(2,464	)		—			1,221			—			—		11,129
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		5,395		—		(2,460	)		(3,152	)		217			—			—		—
KB-SJ Tourism Venture Fund		3,242		—		(4,031	)		(1,517	)		4,087			—			—		1,781
UNION Media Commerce Fund		952		—		—			—			(7	)		—			—		945
KB-Stonebridge Secondary Private Equity Fund		18,885		—		(666	)		(52	)		(1,300	)		—			—		16,867
KB SPROTT Renewable Private Equity Fund No.1		15,910		—		(8,350	)		—			80			—			—		7,640
KB-UTC Inno-Tech Venture Fund		17,977		—		(275	)		—			(2,054	)		(166	)		—		15,482
WJ Private Equity Fund No.1		9,482		—		—			—			(60	)		—			—		9,422
All Together Korea Fund No.2		10,541		—		—			—			307			—			—		10,848
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		17,810		8,964		(7,778	)		—			(2,952	)		—			—		16,044
2020 KB Fintech Renaissance Fund		1,041		—		—			—			36			—			—		1,077
KB Material and Parts No.1 PEF		3,300		—		(3,300	)		—			—			—			—		—
FineKB Private Equity Fund No.1		7,697		6,790		(1,500	)		(32	)		757			—			—		13,712
G payment Joint Stock Company		8,966		—		(1,505	)		—			(5,373	)		—			433		2,521
KB-GeneN Medical Venture Fund No.1		1,923		—		—			—			(42	)		—			—		1,881
KB-BridgePole Venture Investment Fund		863		—		(863	)		—			—			—			—		—
KB-Kyobo New Mobility Power Fund		2,622		—		(2,622	)		—			—			—			—		—
DA-Friend New Technology Investment Fund No.2		928		—		—			—			(21	)		—			—		907
Cornerstone Pentastone Fund No.4		775		—		—			—			(11	)		—			—		764
KB-Badgers Future Mobility ESG Fund No.1		6,105		10,401		—			(2	)		(3,396	)		—			—		13,108
JS Private Equity Fund No.3		1,862		—		(755	)		—			(364	)		—			—		743
Mirae Asset Mobility Investment Fund No.1		1,949		—		—			—			(31	)		—			—		1,918
KB-FT Green Growth 1st Technology Investment Association		1,928		—		—			—			(39	)		—			—		1,889
Glenwood Credit Private Equity Fund No.2		43,922		—		—			(2,430	)		2,888			—			—		44,380
THE CHAEUL FUND NO.1		972		—		—			—			(18	)		—			—		954
Smart Korea KB Future9-Sejong Venture Fund		2,398		—		—			—			(73	)		—			—		2,325
KB-KTB Technology Venture Fund		21,391		5,600		—			—			(1,543	)		—			—		25,448
KB-SOLIDUS Healthcare Investment Fund		40,172		23,270		—			—			(1,160	)		—			—		62,282

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Table of Contents

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024*
	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other compre- hensive income (loss)			Others		Ending

Paramark KB Fund No.1	￦	13,645	￦	8,130	￦	—		￦	—		￦	1,444		￦	—		￦	—	￦	23,219
KB Co-Investment Private Equity Fund No.1		9,376		9,131		(3,098	)		—			558			—			—		15,967
POSITIVE Sobujang Venture Fund No.1		1,965		—		(1,121	)		(2,129	)		2,154			—			—		869
History 2022 Fintech Fund		1,938		—		—			—			(42	)		—			—		1,896
KB-NP Green ESG New Technology Venture Capital Fund		19,429		19,800		—			—			(637	)		—			—		38,592
TMAP Mobility Co., Ltd.		183,572		—		—			—			(1,385	)		(187	)		—		182,000
Nextrade Co., Ltd.		9,225		—		—			—			(1,045	)		—			—		8,180
Shinhan Global Mobility Fund No.1		1,324		—		—			—			(30	)		—			—		1,294
SKB Next Unicorn K-Battery Fund No.1		1,890		—		—			—			(40	)		—			—		1,850
Lakewood-AVES Fund No.1		1,977		—		(1,977	)		—			—			—			—		—
MW-Pyco NewWave New Technology Investment Fund 4th		1,965		—		—			—			(43	)		—			—		1,922
Bitgoeul Cheomdan Green 1st Co., Ltd.		165		152		—			—			(75	)		(1	)		—		241
KB-SUSUNG 1st Investment Fund		2,953		—		(1,386	)		—			621			—			—		2,188
Friend 55 New Technology Business Investment Fund		1,182		—		(1,182	)		—			—			—			—		—
KY Global Cell & Gene Private Equity Fund 2nd		26,969		—		(26,969	)		—			—			—			—		—
DSIP-Pharos Bioenergy Fund		16,458		—		(16,458	)		—			—			—			—		—
Shinhan-Eco Venture Fund 2nd		1,800		225		—			—			(52	)		—			—		1,973
Leading H2O Fund 1		1,489		—		—			—			(34	)		—			—		1,455
2023 JB Newtech No.2 Fund		1,786		—		(394	)		(150)			464			—			—		1,706
U-KB Credit No.1 Private Equity		6,850		400		—			—			754			—			—		8,004
KB-BridgePole Venture Investment Fund No.2		1,494		—		—			—			(31	)		—			—		1,463
Sirius Silicon Valley I New Technology Fund		485		—		—			—			(11	)		—			—		474
FineKB Private Equity Fund No.2		—		250		—			—			(2	)		—			—		248
Timefolio Athleisure Investment Fund		—		4,000		—			—			(77	)		—			—		3,923
VIG Private Equity Fund V-3		—		1,636		—			—			—			—			—		1,636
COMPA Global Scale-Up Fund No.3		—		1,000		—			—			(20	)		—			—		980
AKK Robotech Valueup New Technology Investment Fund		—		1,000		—			—			127			—			—		1,127
YG MCE PROJECT NO.1 Fund		—		1,500		—			—			(23	)		—			—		1,477
HI YG Win-win Fund No.2		—		2,000		—			—			(27	)		—			—		1,973
KB-CJ Venture Fund 1st		—		1,800		—			—			(67)			—			—		1,733
Elohim-Bilanx aerospace No.1 Fund		—		2,000		—			—			(22	)		—			—		1,978
KB-SUSUNG 2st Investment Fund		—		2,000		—			—			(19	)		—			—		1,981
IMM global Secondary 1-1 Equity Private Fund		—		2,819		—			—			935			—			—		3,754
LIB Material Investment Fund		—		4,098		—			—			(2,623	)		—			—		1,475
NOVORSEC-SJG Consumer Secondary Fund		—		1,700		—			—			(12	)		—			—		1,688
Allra Fintech Corp.		—		8,532		—			—			152			—			—		8,684
Reboot Private Equity Fund		—		7,000		—			—			(54	)		—			—		6,946
KB-SBI Global Strategic Capital Fund		—		11,299		—			—			(515	)		—			—		10,784
KB-Cyrus Tourism Venture Fund		—		1,000		—			—			(23	)		—			—		977
IBKS Design Fund		—		2,000		—			—			(4	)		—			—		1,996

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13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024*
	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other compre- hensive income (loss)		Others		Ending

NICE DATA INTELLIGENCE VENTURE FUND	￦	—	￦	1,000	￦	—		￦	—		￦	(2	)	￦	—	￦	—	￦	998
Pectus Hanhwa Fund 2		—		2,000		—			—			(50	)		—		—		1,950
KB-IMM New Star Real Estate Private Fund I		—		31,563		—			—			1,510			—		—		33,073
Korea Environment Technology Co.,Ltd.		—		107,428		—			—			—			—		—		107,428
Others		1,016		930		(67	)		—			(5	)		21		18		1,913

	￦	722,222	￦	339,469	￦	(94,631	)	￦	(14,125	)	￦	(6,332	)	￦	336	￦	451	￦	947,390


(In millions of Korean won)	2025*
	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other compre- hensive income (loss)		Others			Ending
KB-KDBC Pre-IPO New Technology Business Investment Fund	￦	5,203	￦	—	￦	(4,101	)	￦	(60	)	￦	1,770		￦	—	￦	—		￦	2,812
Balhae Infrastructure Company		139,015		—		(15,199	)		(13,039	)		(3,954	)		—		—			106,823
Aju Good Technology Venture Fund		9,313		—		—			(780	)		560			—		—			9,093
Incheon Bridge Co., Ltd.		—		—		—			—			7,383			—		—			7,383
Big Dipper Co., Ltd.		32		—		—			—			(32	)		—		—			—
Food Factory Co., Ltd.		1,541		—		—			—			—			—		(1,211	)		330
KBSP Private Equity Fund No.4		3,994		—		(3,994	)		—			—			—		—			—
Korea Credit Bureau Co., Ltd.		7,949		—		—			(90	)		3,133			—		—			10,992
KB Social Impact Investment Fund		3,513		—		—			—			385			—		—			3,898
KB-Solidus Global Healthcare Fund		17,525		—		(1,170	)		(17,247	)		2,891			—		—			1,999
VIG Private Equity Fund V-3		1,636		2,848		—			—			(216	)		—		—			4,268
KB-Badgers Future Mobility ESG Fund No.1		13,108		1,350		—			(3	)		(1,169	)		—		—			13,286
POSCO-KB Shipbuilding Fund		3,223		—		(250	)		—			(607	)		—		—			2,366
KB-TS Technology Venture Private Equity Fund		11,129		—		—			—			(1,593	)		—		—			9,536
KB-KTB Technology Venture Fund		25,448		—		—			—			(863	)		—		—			24,585
KB-SOLIDUS Healthcare Investment Fund		62,282		23,568		—			—			1,377			1,961		—			89,188
KB Co-Investment Private Equity Fund No.1		15,967		3,887		(2,874	)		(472	)		851			—		—			17,359
KB-SJ Tourism Venture Fund		1,781		—		(190	)		(334	)		261			—		—			1,518
UNION Media Commerce Fund		945		—		—			—			(4	)		—		—			941
KB-Stonebridge Secondary Private Equity Fund		16,867		—		(4,369	)		(217	)		(273	)		—		—			12,008
KB SPROTT Renewable Private Equity Fund No.1		7,640		—		(4,588	)		—			(2,230	)		—		—			822
KB-UTC Inno-Tech Venture Fund		15,482		—		—			—			(4,333	)		—		(2,425	)		8,724
WJ Private Equity Fund No.1		9,422		—		—			—			103			—		—			9,525
All Together Korea Fund No.2		10,848		—		—			—			178			—		—			11,026
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		16,044		3,600		(3,402	)		—			3,697			—		—			19,939
2020 KB Fintech Renaissance Fund		1,077		—		(166	)		—			(20	)		—		—			891
FineKB Private Equity Fund No.1		13,712		2,335		(11,875	)		(32	)		5,718			—		—			9,858
FineKB Private Equity Fund No.2		248		—		—			—			(3	)		—		—			245
Paramark KB Fund No.1		23,219		5,490		(1,234	)		—			(94	)		—		—			27,381

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13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025*
	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other compre- hensive income (loss)		Others			Ending
G payment Joint Stock Company	￦	2,521	￦	—	￦	—		￦	—		￦	—		￦	—	￦	(135	)	￦	2,386
TMAP Mobility Co., Ltd.		182,000		—		—			—			(882	)		1,339		—			182,457
KB-GeneN Medical Venture Fund No.1		1,881		—		—			—			(43	)		—		—			1,838
DA-Friend New Technology Investment Fund No.2		907		—		—			—			(5	)		—		—			902
Cornerstone Pentastone Fund No.4		764		—		—			—			(1	)		—		—			763
JS Private Equity Fund No.3		743		—		(749	)		—			417			—		—			411
Mirae Asset Mobility Investment Fund No.1		1,918		—		—			—			(33	)		—		—			1,885
KB-FT Green Growth 1st Technology Investment Association		1,889		—		—			—			(42	)		—		—			1,847
THE CHAEUL FUND NO.1		954		—		(954	)		—			—			—		—			—
Glenwood Credit Private Equity Fund No.2		44,380		—		—			(2,425	)		1,932			—		—			43,887
POSITIVE Sobujang Venture Fund No.1		869		—		(869	)		—			—			—		—			—
History 2022 Fintech Fund		1,896		—		(1,896	)		—			—			—		—			—
Nextrade Co., Ltd.		8,180		—		—			—			194			—		—			8,374
KB-NP Green ESG New Technology Venture Capital Fund		38,592		8,700		(2,840	)		—			2,203			—		—			46,655
MW-Pyco NewWave New Technology Investment Fund 4th		1,922		—		—			—			(1,922	)		—		—			—
KB-SUSUNG 1st Investment Fund		2,188		—		(1,419	)		—			64			—		—			833
Bitgoeul Cheomdan Green 1st Co., Ltd.		241		—		—			—			(1	)		—		—			240
Shinhan-Eco Venture Fund 2nd		1,973		25		(190	)		—			(1	)		—		—			1,807
Leading H2O Fund 1		1,455		—		—			—			(34	)		—		—			1,421
2023 JB Newtech No.2 Fund		1,706		—		(1,705	)		—			(1	)		—		—			—
KB-BridgePole Venture Investment Fund No.2		1,463		—		—			—			(31	)		—		—			1,432
Sirius Silicon Valley I New Technology Fund		474		—		—			—			(11	)		—		—			463
Timefolio Athleisure Investment Fund		3,923		—		—			—			(173	)		—		—			3,750
COMPA Global Scale-Up Fund No.3		980		—		—			—			(23	)		—		—			957
AKK Robotech Valueup New Technology Investment Fund		1,127		—		(1,127	)		—			—			—		—			—
YG MCE PROJECT NO.1 Fund		1,477		—		—			—			(1,477	)		—		—			—
HI YG Win-win Fund No.2		1,973		—		—			—			181			—		—			2,154
KB-CJ Venture Fund 1st		1,733		—		—			—			136			—		—			1,869
Elohim-Bilanx aerospace No.1 Fund		1,978		—		—			—			(41	)		—		—			1,937
KB-SUSUNG 2st Investment Fund		1,981		—		—			—			(22	)		—		—			1,959
IMM global Secondary 1-1 Equity Private Fund		3,754		756		(162	)		(4	)		631			—		—			4,975
LIB Material Investment Fund		1,475		—		—			—			(646	)		—		—			829
NOVORSEC-SJG Consumer Secondary Fund		1,688		—		(1,688	)		—			—			—		—			—
U-KB Credit No.1S Private Equity		8,004		17,133		—			—			(3,397	)		—		—			21,740
Smart Korea KB Future9-Sejong Venture Fund		2,325		2,000		—			—			(8	)		—		—			4,317
Allra Fintech Corp.		8,684		15		—			—			114			—		—			8,813
Shinhan Global Mobility Fund No.1		1,294		—		—			—			(29	)		—		—			1,265
SKB Next Unicorn K-Battery Fund No.1		1,850		—		—			—			(40	)		—		—			1,810
Reboot Private Equity Fund		6,946		—		—			—			(107	)		—		—			6,839

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13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025*
	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other compre- hensive income (loss)			Others			Ending
KB-SBI Global Strategic Capital Fund	￦	10,784	￦	22,813	￦	—		￦	—		￦	(886	)	￦	—		￦	—		￦	32,711
KB-Cyrus Tourism Venture Fund		977		1,000		—			—			(122	)		—			—			1,855
IBKS Design Fund		1,996		—		—			—			2,815			—			—			4,811
NICE DATA INTELLIGENCE VENTURE FUND		998		—		(998	)		—			—			—			—			—
Pectus Hanhwa Fund 2		1,950		—		(1,950	)		—			—			—			—			—
KB-IMM New Star Real Estate Private Fund I		33,073		29,282		—			(2,824	)		3,491			—			—			63,022
Korea Environment Technology Co.,Ltd.		107,428		—		(107,428	)		—			—			—			—			—
KB-LB Middle Market Enterprises Innovation Private Equity Fund		—		8,137		—			—			(1,064	)		—			—			7,073
YG AI Industrial Automation Solutions FUND		—		2,000		—			—			(8	)		—			—			1,992
Semicolon Susong REITs Co., Ltd.		—		86,292		—			(961	)		—			—			—			85,331
KB-Novus Genesis Private Equity Fund		—		2,300		—			—			(33	)		—			—			2,267
ATP TP VC Fund No.1		—		2,000		—			—			(24	)		—			—			1,976
AIM-KB-DOUBLE Connected Future Investment Fund		—		1,000		—			—			(16	)		—			—			984
KB-IMM New Star Real Estate Private Fund II		—		26,337		—			(220	)		244			—			—			26,361
K-1 23rd yeoksam Real Estate Investment Trust company Ltd.		—		61,901		—			(2,334	)		2,857			—			—			62,424
IMM Korea Beauty Co-Invest Private Equity Fund		—		50,000		—			—			(367	)		—			—			49,633
VP Inc.		—		14,312		—			—			—			—			—			14,312
DAILY Fountainhead Blind Private Equity Fund II		—		11,250		—			(19	)		(485	)		—			—			10,746
KB-ANDA Deep Tech Venture Fund		—		1,250		—			—			—			—			—			1,250
E&I Holdings		—		27,300		(27,300	)		—			—			—			—			—
Others		1,913		780		(41	)		—			153			(5	)		25			2,825

	￦	947,390	￦	419,661	￦	(204,728	)	￦	(41,061	)	￦	16,373		￦	3,295		￦	(3,746	)	￦	1,137,184

*	Gains (losses) on disposal of investments in associates and joint ventures amount to ￦ (10,552) million and ￦ 12,041 million for the years ended December 31, 2024 and 2025, respectively.

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13.4 Unrecognized share of losses of investments in associates and joint ventures due to the discontinuation of recognizing share of losses, for the years ended December 31, 2024 and 2025, and accumulated amount of unrecognized losses as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	Unrecognized losses (gains) for the period						Accumulated unrecognized losses
	2024			2025			December 31, 2024		December 31, 2025
DSMETAL Co., Ltd.	￦	—		￦	—		￦	103	￦	103
Incheon Bridge Co., Ltd.		(12,105	)		—			535		—
Jaeyang Industry Co., Ltd.		—			—			30		—
Terra Corporation		—			—			14		14
Jungdo Co., Ltd.		—			—			423		423
Korea NM Tech Co., Ltd.		7			6			41		47
Chongil Machine & Tools Co., Ltd.		—			—			75		75
Skydigital Inc.		(3	)		(3	)		194		191
Imt Technology Co., Ltd.		2			17			2		19
Jo Yang Industrial Co., Ltd.		127			2			276		278
MJT&I Corp.		1			3			153		156
Dae-A Leisure Co., Ltd.		286			310			885		1,195
Il-Kwang Electronic Materials Co., Ltd.		—			—			158		158
Dongjo Co., Ltd.		(26	)		(34	)		523		489
Iwon Alloy Co., Ltd.		4			4			22		26
Chunsung-meat co., ltd.		—			—			33		33
ALTSCS CO., LTD.		(15	)		(16	)		381		365
E-won Chemical Co.,Ltd.		8			(2	)		12		10
TKDS Co., Ltd		69			16			177		193
TAEYEONG PRECISION IND. Co., Ltd		42			—			42		—
MJ K Trading Co.		36			6			36		42
DNGV Co.,Ltd.		46			(46	)		46		—
Alpa Information&Communication Co.,Ltd.		77			1			77		78
JC TECHNO Co.,Ltd.		243			334			243		577
RAND Bio Science Co., Ltd.		150			—			877		—
Star-Lord General Investors Private Real Estate Investment Company No.10		5,643			3,595			23,075		26,670
SD Speed Co.,Ltd.		—			43			—		43
Seokwang T&I Co., Ltd		—			7			—		7
Big Dipper Co., Ltd.		—			(11	)		—		(11	)

	￦	(5,408	)	￦	4,232		￦	28,433	￦	31,181

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14. Property and Equipment, and Investment Properties

14.1 Property and Equipment

14.1.1 Details of property and equipment as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land	￦	2,471,259	￦	—		￦	(4	)	￦	2,471,255
Buildings		2,481,041		(962,953	)		(5,746	)		1,512,342
Leasehold improvements		1,107,922		(1,025,640	)		—			82,282
Equipment and vehicles		2,148,574		(1,850,044	)		—			298,530
Construction in-progress		65,941		—			—			65,941
Right-of-use assets		2,241,126		(1,280,489	)		(972	)		959,665

	￦	10,515,863	￦	(5,119,126	)	￦	(6,722	)	￦	5,390,015


(In millions of Korean won)	December 31, 2025
	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land	￦	2,294,337	￦	—		￦	(4	)	￦	2,294,333
Buildings		2,555,740		(989,391	)		(5,746	)		1,560,603
Leasehold improvements		1,136,679		(1,065,888	)		—			70,791
Equipment and vehicles		2,191,181		(1,885,832	)		—			305,349
Construction in-progress		30,924		—			—			30,924
Right-of-use assets		2,344,415		(1,471,642	)		(972	)		871,801

	￦	10,553,276	￦	(5,412,753	)	￦	(6,722	)	￦	5,133,801

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

(In millions of Korean won)


	2024
	Beginning		Acquisition		Transfer 1			Disposal			Depreciation 2			Others		Ending

Land	￦	2,442,182	￦	66	￦	15,892		￦	(806	)	￦	—		￦	13,921	￦	2,471,255
Buildings		1,543,808		6,229		31,602			(3,498	)		(68,707	)		2,908		1,512,342
Leasehold improvements		76,030		17,211		39,857			(710	)		(51,790	)		1,684		82,282
Equipment and vehicles		252,992		153,309		16,972			(1,933	)		(139,788	)		16,978		298,530
Construction in-progress		56,971		124,419		(114,761	)		(1,402	)		—			714		65,941
Right-of-use assets		573,716		1,285,013		(12,759	)		(552,340	)		(360,401	)		26,436		959,665

	￦	4,945,699	￦	1,586,247	￦	(23,197	)	￦	(560,689	)	￦	(620,686	)	￦	62,641	￦	5,390,015

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14.1.2 Changes in property and equipment for the years ended December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)


	2025
	Beginning		Acquisition		Transfer 1			Disposal			Depreciation 2			Others			Ending

Land	￦	2,471,255	￦	2,247	￦	(149,318	)	￦	(19,548	)	￦	—		￦	(10,303	)	￦	2,294,333
Buildings		1,512,342		25,316		93,753			(1,444	)		(69,749	)		385			1,560,603
Leasehold improvements		82,282		12,536		25,222			(389	)		(48,021	)		(839	)		70,791
Equipment and vehicles		298,530		151,423		5,405			(250	)		(147,237	)		(2,522)			305,349
Construction in-progress		65,941		142,017		(175,212	)		(2,635	)		—			813			30,924
Right-of-use assets		959,665		379,219		(15,800	)		(69,975	)		(378,022	)		(3,286	)		871,801

	￦	5,390,015	￦	712,758	￦	(215,950	)	￦	(94,241	)	￦	(643,029	)	￦	(15,752	)	￦	5,133,801

1	Includes transfers with investment properties and assets held for sale.

2	Includes depreciation expenses amounting to ￦ 65,452 million and ￦ 67,770 million recorded as insurance service expenses, other operating expenses and others for the years ended December 31, 2024 and 2025, respectively.

14.1.3 Changes in accumulated impairment losses of property and equipment for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning			Impairment			Reversal		Disposal and others		Ending
Accumulated impairment losses of property and equipment	￦	(5,751	)	￦	(971	)	￦	—	￦	—	￦	(6,722	)


(In millions of Korean won)	2025
	Beginning			Impairment			Reversal		Disposal and others		Ending
Accumulated impairment losses of property and equipment	￦	(6,722	)	￦	(627	)	￦	—	￦	627	￦	(6,722	)

14.2 Investment Properties

14.2.1 Details of investment properties as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land	￦	1,990,096	￦	—		￦	(13,226	)	￦	1,976,870
Buildings		1,998,943		(186,500	)		(30,137	)		1,782,306

	￦	3,989,039	￦	(186,500	)	￦	(43,363	)	￦	3,759,176

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14.2.1 Details of investment properties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	December 31, 2025
	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land	￦	1,866,468	￦	—		￦	(50,024	)	￦	1,816,444
Buildings		1,696,772		(176,140	)		(112,896	)		1,407,736

	￦	3,563,240	￦	(176,140	)	￦	(162,920	)	￦	3,224,180

14.2.2 Valuation techniques and inputs used to measure the fair value of investment properties as of December 31, 2025, are as follows:


(In millions of Korean won)	December 31, 2025
	Fair value		Valuation techniques	Inputs

Land and buildings	￦	268,459	Cost approach method	- Officially assessed value - Replacement cost
		2,291,991	Market comparison method	- Price per square meter
		1,431,108	Discounted cash flow method	- Prospective rental market growth rate - Period of vacancy - Rental ratio - Discount rate and others

Fair value of investment properties amounts to ￦

3,276,822

million and ￦

3,991,558 million as of December 31, 2024 and 2025, respectively. Investment properties are measured by qualified independent appraisers with recent experience in valuing similar properties in the same area. In addition, all investment properties are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

Rental income from above investment properties amounts to ￦

147,151

million and ￦

190,077 million for the years ended December 31, 2024 and 2025, respectively.

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

(In millions of Korean won)


	2024
	Beginning		Acquisition		Transfer*		Disposal			Depreciation			Others		Ending
Land	￦	2,236,544	￦	48,931	￦	2,792	￦	(324,787	)	￦	—		￦	13,390	￦	1,976,870
Buildings		1,873,240		39,825		10,084		(118,174	)		(50,426	)		27,757		1,782,306

	￦	4,109,784	￦	88,756	￦	12,876	￦	(442,961	)	￦	(50,426	)	￦	41,147	￦	3,759,176

(In millions of Korean won)


	2025
	Beginning		Acquisition		Transfer*		Disposal			Depreciation			Others			Ending
Land	￦	1,976,870	￦	73,455	￦	9,998	￦	(221,627	)	￦	—		￦	(22,252	)	￦	1,816,444
Buildings		1,782,306		110,048		3,186		(188,514	)		(47,150	)		(252,140	)		1,407,736

	￦	3,759,176	￦	183,503	￦	13,184	￦	(410,141	)	￦	(47,150	)	￦	(274,392	)	￦	3,224,180

*	Includes transfers with property and equipment and assets held for sale.

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15. Intangible Assets

15.1 Details of intangible assets as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Others		Carrying amount
Goodwill	￦	922,959	￦	—		￦	(137,937	)	￦	89,026	￦	874,048
Other intangible assets		3,766,460		(2,630,665	)		(43,159	)		—		1,092,636

	￦	4,689,419	￦	(2,630,665	)	￦	(181,096	)	￦	89,026	￦	1,966,684

(In millions of Korean won)


	December 31, 2025
	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Others		Carrying amount
Goodwill	￦	922,959	￦	—		￦	(368,168	)	￦	78,874	￦	633,665
Other intangible assets		3,706,043		(2,686,277	)		(44,004	)		—		975,762

	￦	4,629,002	￦	(2,686,277	)	￦	(412,172	)	￦	78,874	￦	1,609,427

15.2 Details of goodwill as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024				December 31, 2025
	Acquisition cost		Carrying amount 1		Acquisition cost		Carrying amount 1
Housing & Commercial Bank	￦	65,288	￦	65,288	￦	65,288	￦	65,288
KB Securities Co., Ltd.		70,265		58,889		70,265		58,889
KB Capital Co., Ltd.		79,609		79,609		79,609		79,609
KB Savings Bank Co., Ltd.		115,343		57,403		115,343		57,404
KB Securities Vietnam Joint Stock Company		13,092		14,988		13,092		14,183
KB DAEHAN SPECIALIZED BANK PLC. 2		6,189		—		6,189		—
KB PRASAC Bank PLC.		398,144		419,918		398,144		185,725
PT Sunindo Kookmin Best Finance		2,963		3,172		2,963		1,367
PT Bank KB Bukopin Tbk		89,220		94,162		89,220		88,477
PT. KB Finansia Multi Finance		51,820		57,853		51,820		54,360
PT. KB Valbury Sekurita		11,070		12,063		11,070		11,334
Others		19,956		10,703		19,956		17,029

	￦	922,959	￦	874,048	￦	922,959	￦	633,665

1	Includes the effect of exchange differences and others.

2	KB DAEHAN SPECIALIZED BANK PLC. and I-Finance Leasing merged on December 19, 2024.

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15.3 Changes in accumulated impairment losses of goodwill for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning			Impairment			Others			Ending
Accumulated impairment losses of goodwill	￦	(76,785	)	￦	(60,273	)	￦	(879	)	￦	(137,937	)

(In millions of Korean won)	2025
	Beginning			Impairment			Others			Ending
Accumulated impairment losses of goodwill	￦	(137,937	)	￦	(223,871	)	￦	(6,360	)	￦	(368,168	)

15.4 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2025 are as follows:


(In millions of Korean won)		December 31, 2025
		Carrying amount of goodwill		Recoverable amount exceeding carrying amount*			Discount rate (%)		Permanent growth rate (%)
Housing & Commercial Bank	Retail banking	￦	49,315	￦	4,204,235			18.08		1.00
	Corporate banking		15,973		10,031,341			14.33		1.00
KB Securities Co., Ltd.			58,889		503,529			11.31		1.00
KB Capital Co., Ltd.			79,609		1,913,364			8.44		1.00
KB Savings Bank Co., Ltd. and Yehansoul Savings Bank Co., Ltd.			57,404		116,891			13.08		1.00
KB Securities Vietnam Joint Stock Company			13,794		18,189			17.81		1.00
PT Bank KB Bukopin Tbk			86,927		694,511			21.78		3.00
KB PRASAC Bank Plc			400,551		(219,059	)		22.93		4.00
PT Sunindo Kookmin Best Finance			2,928		(1,706	)		20.05		0.00
PT. KB Finansia Multi Finance			53,408		96,187			15.47		1.00
PT. KB Valbury Sekurita			11,136		48,087			11.50		1.00
Others			17,029		23,227			—		—

		￦	846,963	￦	17,428,796

*	The recoverable amount exceeding carrying amount is the amount at the time of impairment testing.

For impairment testing, goodwill is allocated to cash-generating units that are expected to benefit from the synergies of the business combination, and cash-generating units consist of an operating segment or units which are not larger than an operating segment.

Cash-generating units to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired, by comparing the carrying amount of the unit including the goodwill with the recoverable amount of the unit.

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15.4 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2025 are as follows (cont’d):

The recoverable amount of a cash-generating unit is measured at the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal is the amount obtainable from the disposal in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. If it is difficult to measure the amount obtainable from the disposal of the cash-generating unit, the disposal amount of a similar cash-generating unit in the past transaction is used by reflecting the characteristics of the cash-generating unit to be measured. If it is not possible to obtain reliable information to measure the fair value less costs of disposal, the Group uses the asset’s value in use as its recoverable amount. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The estimated future cash flows are based on the most recent financial budget approved by management with maximum period of 5 years. In relation to subsequent cash flows, it is assumed that cash flows will grow at a certain permanent growth rate. The key assumptions used for the estimation of the future cash flows are based on the market size and the Group’s market share. The discount rate is a

pre-tax

rate that reflects assumptions regarding risk-free interest rate, market risk premium, and the risks specific to the cash-generating unit.

15.5 Details of intangible assets other than goodwill as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Industrial property rights	￦	2,632	￦	(1,971	)	￦	—		￦	661
Software		2,718,892		(2,022,510	)		(1,476	)		694,906
Other intangible assets		1,009,809		(571,645	)		(41,683	)		396,481
Right-of-use assets		35,127		(34,539	)		—			588

	￦	3,766,460	￦	(2,630,665	)	￦	(43,159	)	￦	1,092,636


(In millions of Korean won)	December 31, 2025
	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Industrial property rights	￦	2,694	￦	(2,117	)	￦	—		￦	577
Software		2,582,445		(1,955,811	)		(415	)		626,219
Other intangible assets		1,085,777		(693,222	)		(43,589	)		348,966
Right-of-use assets		35,127		(35,127	)		—			—

	￦	3,706,043	￦	(2,686,277	)	￦	(44,004	)	￦	975,762

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15.6 Changes in intangible assets other than goodwill for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	2024
	Beginning		Acquisition & transfer		Disposal			Amortization 1			Others			Ending
Industrial property rights	￦	1,086	￦	164	￦	(431	)	￦	(158	)	￦	—		￦	661
Software		566,354		419,582		(3,144	)		(292,596	)		4,710			694,906
Other intangible assets 2		514,849		3,548		(6,533	)		(105,206	)		(10,177	)		396,481
Right-of-use assets		1,595		—		—			(1,007	)		—			588

	￦	1,083,884	￦	423,294	￦	(10,108	)	￦	(398,967	)	￦	(5,467	)	￦	1,092,636


(In millions of Korean won)
	2025
	Beginning		Acquisition & transfer		Disposal			Amortization 1			Others			Ending
Industrial property rights	￦	661	￦	187	￦	—		￦	(198	)	￦	(73	)	￦	577
Software		694,906		202,743		(6	)		(268,258	)		(3,166	)		626,219
Other intangible assets 2		396,481		65,054		(11,366	)		(97,708	)		(3,495	)		348,966
Right-of-use assets		588		—		—			(588	)		—			—

	￦	1,092,636	￦	267,984	￦	(11,372	)	￦	(366,752	)	￦	(6,734	)	￦	975,762

1	Includes ￦ 37,906 million and ￦ 27,325 million recorded as insurance service expenses, other operating expenses and others for the years ended December 31, 2024 and 2025, respectively.

2	Impairment losses for membership right with indefinite useful life among other intangible assets are recognized when its recoverable amount is lower than its carrying amount, and reversal of impairment losses are recognized when its recoverable amount is higher than its carrying amount.

15.7 Changes in accumulated impairment losses of other intangible assets for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning			Impairment			Reversal		Disposal and others		Ending
Accumulated impairment losses of other intangible assets	￦	(31,645	)	￦	(15,468	)	￦	1,020	￦	2,934	￦	(43,159	)


(In millions of Korean won)	2025
	Beginning			Impairment			Reversal		Disposal and others		Ending
Accumulated impairment losses of other intangible assets	￦	(43,159	)	￦	(1,905	)	￦	500	￦	560	￦	(44,004	)

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16. Lease

16.1 The Group as a Lessee

16.1.1 Amounts recognized in the consolidated statements of financial position related to lease as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Right-of-use property and equipment:*
Real estate	￦	937,887	￦	853,940
Vehicles		17,770		15,575
Others		4,008		2,286

		959,665		871,801

Right-of-use intangible assets*		588		—

	￦	960,253	￦	871,801

Lease liabilities*	￦	964,399	￦	901,113

*	Included in property and equipment, intangible assets, and other liabilities.

16.1.2 Amounts recognized in the consolidated statements of comprehensive income related to lease for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024		2025
Depreciation and amortization of right-of-use assets:
Real estate	￦	304,882	￦	321,490
Vehicles		18,531		17,320
Others		1,882		2,318
Intangible assets		1,007		588

	￦	326,302	￦	341,716

Interest expenses on the lease liabilities	￦	40,454	￦	33,185
Expense relating to short-term lease		3,960		3,669
Expense relating to lease of low-value assets that are not short-term lease		4,682		4,096
Expense relating to variable lease payments not included in lease liabilities (included in administrative expenses)		147		159

Total cash outflows for lease for the years ended December 31, 2024 and 2025 are ￦ 326,821 million and ￦ 374,877 million, respectively.

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16.2 The Group as a Lessor

16.2.1 The Group as a finance lessor

16.2.1.1 Gross investment in the lease and present value of minimum lease payments as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024				December 31, 2025
	Gross investment in the lease		Present value of minimum lease payments		Gross investment in the lease		Present value of minimum lease payments
Up to 1 year	￦	291,341	￦	218,942	￦	191,385	￦	139,903
1-5 years		348,909		264,617		363,689		246,308
Over 5 years		6,038		6,038		11,501		7,460

	￦	646,288	￦	489,597	￦	566,575	￦	393,671

16.2.1.2 Unearned finance income on finance lease as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Gross investment in the lease	￦	646,288	￦	566,575
Net investment in the lease:
Present value of minimum lease payments		489,597		393,671
Present value of unguaranteed residual value		104,846		109,023

		594,443		502,694

Unearned finance income	￦	51,845	￦	63,881

16.2.2 The Group as an operating lessor

Future minimum lease payments to be received from the

non-cancellable

lease contracts as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Minimum lease payments to be received:
Up to 1 year	￦	876,011	￦	884,866
1-5 years		1,710,770		1,934,480
Over 5 years		205,095		156,546

	￦	2,791,876	￦	2,975,892

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17. Deferred Income Tax Assets and Liabilities

17.1 Details of deferred income tax assets and liabilities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Assets			Liabilities			Net amount
Other provisions	￦	219,460		￦	—		￦	219,460
Allowances for credit losses		17,060			—			17,060
Impairment losses of property and equipment		10,543			(1,359	)		9,184
Share-based payments		36,962			—			36,962
Provisions for acceptances and guarantees		16,172			(163	)		16,009
Gains or losses on valuation of derivatives		296,164			(225,773	)		70,391
Present value discount		11,952			(14	)		11,938
Gains or losses on fair value hedge		—			(45,741	)		(45,741	)
Accrued interest		1,679			(262,437	)		(260,758	)
Deferred loan origination fees and costs		16,278			(189,207	)		(172,929	)
Advanced depreciation provision		—			(4,003	)		(4,003	)
Gains or losses on revaluation		313			(290,227	)		(289,914	)
Investments in subsidiaries and others		77,426			(248,692	)		(171,266	)
Gains or losses on valuation of security investment		489,018			(448,460	)		40,558
Defined benefit liabilities		619,544			—			619,544
Accrued expenses		365,702			—			365,702
Retirement insurance expense		—			(590,749	)		(590,749	)
Adjustments to the prepaid contributions		—			(49,134	)		(49,134	)
Derivative-linked securities		6,883			(86,112	)		(79,229	)
Others*		1,244,462			(2,391,015	)		(1,146,553	)

		3,429,618			(4,833,086	)		(1,403,468	)

Offsetting of deferred income tax assets and liabilities		(3,150,794	)		3,150,794			—

	￦	278,824		￦	(1,682,292	)	￦	(1,403,468	)

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17.1 Details of deferred income tax assets and liabilities as of December 31, 2024 and 2025, are as

follows (cont’d):


(In millions of Korean won)	December 31, 2025
	Assets			Liabilities			Net amount
Other provisions	￦	233,337		￦	—		￦	233,337
Allowances for credit losses		44,300			(2,355	)		41,945
Impairment losses of property and equipment		10,614			(1,164	)		9,450
Interest on equity index-linked deposits		362			—			362
Share-based payments		49,752			—			49,752
Provisions for acceptances and guarantees		14,464			(164	)		14,300
Gains or losses on valuation of derivatives		324,878			(341,168	)		(16,290	)
Present value discount		11,439			(239	)		11,200
Gains or losses on fair value hedge		—			(36,979	)		(36,979	)
Accrued interest		(14	)		(290,542	)		(290,556	)
Deferred loan origination fees and costs		16,103			(200,328	)		(184,225	)
Advanced depreciation provision		—			(4,170	)		(4,170	)
Gains or losses on revaluation		326			(284,230	)		(283,904	)
Investments in subsidiaries and others		89,649			(298,302	)		(208,653	)
Gains or losses on valuation of security investment		1,045,397			(444,901	)		600,496
Defined benefit liabilities		651,974			—			651,974
Accrued expenses		403,784			—			403,784
Retirement insurance expense		—			(666,714	)		(666,714	)
Adjustments to the prepaid contributions		—			(79,010	)		(79,010	)
Derivative-linked securities		9,051			(43,669	)		(34,618	)
Others*		1,221,261			(3,058,788	)		(1,837,527	)

		4,126,677			(5,752,723	)		(1,626,046	)

Offsetting of deferred income tax assets and liabilities		(3,933,643	)		3,933,643			—

	￦	193,034		￦	(1,819,080	)	￦	(1,626,046	)

*	Includes Purchase Price Allocation (“PPA”) amount arising from the acquisition of KB Life Insurance Co., Ltd., KB Insurance Co., Ltd..

17.2 Unrecognized Deferred Income Tax Assets

17.2.1 No deferred income tax assets have been recognized for the deductible temporary differences of ￦

3,868,075 million associated with investments in subsidiaries as of December 31, 2025, because it is not probable that these temporary differences will reverse in the foreseeable future.

17.2.2 No deferred income tax assets have been recognized for the deductible temporary differences of ￦

333,405 million related to other provisions

and ￦

92,618 million associated with others as of December 31, 2025, due to the uncertainty that these temporary differences will be realized in the future.

17.3 Unrecognized Deferred Income Tax Liabilities

17.3.1 No deferred income tax liabilities have been recognized for the taxable temporary differences of ￦

816,745 million associated with investments in subsidiaries as of December 31, 2025, due to the following reasons:

•

The Group is able to control the timing of the reversal of the temporary differences.

•

It is probable that these temporary differences will not reverse in the foreseeable future.

17.3.2 No deferred income tax liabilities have been recognized as of December 31, 2025, for the taxable temporary differences of ￦

65,288 million related to the initial recognition of goodwill arising from the merger of Housing and Commercial Bank in 2001.

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17.4 Changes in cumulative temporary differences for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions	￦	1,202,725		￦	1,173,243		￦	800,375		￦	829,857
Allowances for credit losses		113,157			114,700			66,566			65,023
Impairment losses of property and equipment		30,774			21,585			29,263			38,452
Deferred loan origination fees and costs		55,278			11,323			17,705			61,660
Share-based payments		92,146			81,835			129,695			140,006
Provisions for acceptances and guarantees		185,290			185,290			60,642			60,642
Gains or losses on valuation of derivatives		904,830			904,830			1,122,015			1,122,015
Present value discount		54,815			54,815			45,274			45,274
Investments in subsidiaries and others		3,112,619			102,105			1,173,735			4,184,249
Gains or losses on valuation of security investment		3,456,456			3,450,487			1,848,240			1,854,209
Defined benefit liabilities		2,174,727			306,292			478,321			2,346,756
Accrued expenses		1,225,697			1,220,348			1,381,574			1,386,923
Derivative-linked securities		21,725			21,725			26,070			26,070
Others 1		3,052,860			1,222,782			2,076,926			3,907,004

		15,683,099			8,871,360			9,256,401			16,068,140

Unrecognized deferred income tax assets
Other provisions		404									404
Investments in subsidiaries and others		2,948,424									3,914,339
Others		85,346									98,004

		12,648,925									12,055,393
Tax rate (%)		26.4									26.4

Total deferred income tax assets	￦	3,637,726								￦	3,429,618

Taxable temporary differences
Gains or losses on fair value hedge	￦	(216,460	)	￦	(43,200	)	￦	—		￦	(173,260	)
Accrued interest		(809,501	)		(718,384	)		(902,961	)		(994,078	)
Impairment losses of property and equipment		(3,288	)		(179	)		—			(3,109	)
Deferred loan origination fees and costs		(666,878	)		(666,878	)		(716,693	)		(716,693	)
Advanced depreciation provision		(15,163	)		(9,097	)		(9,097	)		(15,163	)
Gains or losses on valuation of derivatives		(698,745	)		(698,745	)		(855,200	)		(855,200	)
Present value discount		(2,745	)		(2,745	)		(3,719	)		(3,719	)
Goodwill arising from the merger		(65,288	)		—			—			(65,288	)
Gains or losses on revaluation		(1,100,555	)		(38,949	)		(37,738	)		(1,099,344	)
Investments in subsidiaries and others		(2,134,355	)		(146,755	)		(680,823	)		(2,668,423	)
Gains or losses on valuation of security investment		(1,282,875	)		(1,240,160	)		(1,648,762	)		(1,691,477	)
Defined benefit liabilities		(97	)		(97	)		—			—
Retirement insurance expense		(2,371,534	)		(326,432	)		(192,585	)		(2,237,687	)
Adjustments to the prepaid contributions		(125,019	)		(125,019	)		(186,113	)		(186,113	)
Derivative-linked securities		(994,405	)		(994,405	)		(326,181	)		(326,181	)
Others 1		(11,042,857	)		(2,848,140	)		(282,927	)		(8,477,644	)

		(21,529,765	)		(7,859,185	)		(5,842,799	)		(19,513,379	)

Unrecognized deferred income tax liabilities
Goodwill arising from the merger		(65,288	)								(65,288	)
Investments in subsidiaries and others		(1,220,925	)								(1,744,044	)
Others		(446	)								(522	)

		(20,243,106	)								(17,703,525	)
Tax rate (%)		26.4									26.4

Total deferred income tax liabilities	￦	(5,458,413	)							￦	(4,833,086	)

1	Includes PPA amount arising from the acquisition of KB Life Insurance Co., Ltd., KB Insurance Co., Ltd..

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17.4 Changes in cumulative temporary differences for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions	￦	829,857		￦	806,030		￦	1,156,244		￦	1,180,071
Allowances for credit losses		65,023			52,046			148,519			161,496
Impairment losses of property and equipment		38,452			25,506			25,241			38,187
Deferred loan origination fees and costs		61,660			13,802			10,698			58,556
Interest on equity index-linked deposits		—			—			1,317			1,317
Share-based payments		140,006			125,469			166,378			180,915
Provisions for acceptances and guarantees		60,642			60,642			52,000			52,000
Gains or losses on valuation of derivatives		1,122,015			1,122,015			1,181,547			1,181,547
Present value discount		45,274			45,274			41,596			41,596
Investments in subsidiaries and others		4,184,249			61,624			77,520			4,200,145
Gains or losses on valuation of security investment		1,854,209			1,844,634			3,791,454			3,801,029
Defined benefit liabilities		2,346,756			348,897			372,956			2,370,815
Accrued expenses		1,386,923			1,380,332			1,461,345			1,467,936
Derivative-linked securities		26,070			26,070			32,913			32,913
Others 1		3,907,004			1,752,786			1,416,838			3,571,056

		16,068,140			7,665,127			9,936,566			18,339,579

Unrecognized deferred income tax assets
Other provisions		404									333,405
Investments in subsidiaries and others		3,914,339									3,868,075
Others		98,004									92,618

		12,055,393									14,045,481
Tax rate (%) 2		26.4									27.5

Total deferred income tax assets	￦	3,429,618								￦	4,126,677

Taxable temporary differences
Gains or losses on fair value hedge	￦	(173,260	)	￦	(173,260	)	￦	(134,469	)	￦	(134,469	)
Accrued interest		(994,078	)		(916,788	)		(979,229	)		(1,056,519	)
Allowances for credit losses		—			—			(8,563	)		(8,563	)
Impairment losses of property and equipment		(3,109	)		(1,713	)		102			(1,294	)
Deferred loan origination fees and costs		(716,693	)		(716,708	)		(728,480	)		(728,465	)
Advanced depreciation provision		(15,163	)		(9,097	)		(9,097	)		(15,163	)
Gains or losses on valuation of derivatives		(855,200	)		(883,359	)		(1,248,314	)		(1,220,155	)
Present value discount		(3,719	)		(3,719	)		(26,382	)		(26,382	)
Goodwill arising from the merger		(65,288	)		—			—			(65,288	)
Gains or losses on revaluation		(1,099,344	)		(98,214	)		(32,435	)		(1,033,565	)
Investments in subsidiaries and others		(2,668,423	)		(259,981	)		467,200			(1,941,242	)
Gains or losses on valuation of security investment		(1,691,477	)		(1,652,548	)		(1,561,787	)		(1,600,716	)
Retirement insurance expense		(2,237,687	)		(177,945	)		(364,671	)		(2,424,413	)
Adjustments to the prepaid contributions		(186,113	)		(186,113	)		(287,309	)		(287,309	)
Derivative-linked securities		(326,181	)		(326,181	)		(158,793	)		(158,793	)
Others 1		(8,477,644	)		(523,001	)		(2,467,103	)		(10,421,746	)

		(19,513,379	)		(5,928,627	)		(7,539,330	)		(21,124,082	)

Unrecognized deferred income tax liabilities
Goodwill arising from the merger		(65,288	)								(65,288	)
Investments in subsidiaries and others		(1,744,044	)								(816,745	)
Others		(522	)								(28,537	)

		(17,703,525	)								(20,213,512	)
Tax rate (%) 2		26.4									27.5

Total deferred income tax liabilities	￦	(4,833,086	)							￦	(5,752,723	)

1	Includes PPA amount arising from the acquisition of KB Life Insurance Co., Ltd., KB Insurance Co., Ltd..

2	Deferred tax assets (liabilities) expected to be realized after 2026 have been measured at 27.5%.

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18. Assets Held for Sale and Disposal group classified as held for sale

18.1.1 Details of assets held for sale as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Acquisition cost *		Accumulated impairment losses			Carrying amount		Fair value less costs to sell

Land held for sale	￦	82,878	￦	(48,986	)	￦	33,892	￦	44,906
Buildings held for sale		179,430		(76,908	)		102,522		124,095
Other assets held for sale		2,664		(2,241	)		423		423

	￦	264,972	￦	(128,135	)	￦	136,837	￦	169,424


(In millions of Korean won)	December 31, 2025
	Acquisition cost *		Accumulated impairment losses			Carrying amount		Fair value less costs to sell

Land held for sale	￦	121,182	￦	(45,627	)	￦	75,555	￦	125,973
Buildings held for sale		168,014		(68,650	)		99,364		118,454
Other assets held for sale		1,865		(1,865	)		—		—

	￦	291,061	￦	(116,142	)	￦	174,919	￦	244,427

*	Acquisition cost of buildings held for sale is net of accumulated depreciation amount immediately before the initial classification of the assets as held for sale.

18.1.2 Valuation techniques and inputs used to measure the fair value of assets held for sale as of December 31, 2025 are as follows:

(In millions of Korean won)

December 31, 2025

Fair value

Valuation
techniques

Unobservable
inputs

Estimated range of
unobservable
inputs (%)

Effect of
unobservable
inputs to fair value

Land and buildings

￦

244,427

Sales comparison
approach model
and others

Adjustment index

0.33~2.90

Fair value increases
as the adjustment
index rises

1	The appraisal value is adjusted by the adjustment ratio in the event the public sale is unsuccessful.

2	Adjustment index is calculated using the time factor correction or local factors or individual factors and others.

Among assets held for sale, real estate was measured by independent appraisers with professional qualifications and recent experience in evaluating similar properties in the area of the property to be assessed. All assets held for sale are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

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18.1.3 Changes in accumulated impairment losses of assets held for sale for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning			Provision			Reversal		Others			Ending
Accumulated impairment losses of assets held for sale	￦	(64,658	)	￦	(49,259	)	￦	2	￦	(14,220	)	￦	(128,135	)


(In millions of Korean won)	2025
	Beginning			Provision			Reversal		Others		Ending
Accumulated impairment losses of assets held for sale	￦	(128,135	)	￦	(35,536	)	￦	1	￦	47,528	￦	(116,142	)

18.1.4 As of December 31, 2025, assets held for sale consist of 34 real estates of closed offices, and 297 foreclosure assets on loans of PT Bank KB Indonesia Tbk, which were determined to sell by management, but not yet sold as of December 31, 2025. The remaining 331 assets are being actively marketed.

18.2 Disposal group classified as held for sale

Kookmin Bank(a subsidiary of the Group) decided to dispose of its entire equity interest in PT KB Bukopin Finance held by its consolidated subsidiary, PT Bank KB Indonesia Tbk. Accordingly, as of December 31, 2025, the bank classified the assets and liabilities of PT KB Bukopin Finance as a disposal group held for sale and a disposal group of liabilities directly associated with assets held for sale, respectively. As of December 31, 2025, the bank has entered into a share purchase agreement with a third party for the sale of its equity interest in its subsidiary, PT KB Bukopin Finance, and is currently in the process of completing the disposal.

18.2.1 The major components of assets classified as a disposal group held for sale as of December 31, 2025 are as follows:


(In millions of Korean won)	December 31, 2025
Other financial assets
Cash and deposits	￦	5,858
Loans measured at amortized cost		85,572
Property and equipment		131
Intangible assets		17
Deferred tax assets		16
Other assets		2,621

	￦	94,215

18.2.2 The major components of liabilities classified as a disposal group held for sale as of December 31, 2025 are as follows:


(In millions of Korean won)	December 31, 2025
Other financial liabilities
Borrowings	￦	58,590
Net defined benefit liabilities		13
Other liabilities		9,627
Current income tax liabilities		60

	￦	68,290

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20. Financial Liabilities at Fair Value through Profit or Loss

20.1 Details of financial liabilities at fair value through profit or loss and financial liabilities designated at fair value through profit or loss as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Financial liabilities at fair value through profit or loss
Borrowed securities sold	￦	2,558,520	￦	2,923,691
Others		159,212		415,881

		2,717,732		3,339,572

Financial liabilities designated at fair value through profit or loss
Derivative-linked securities		8,002,499		7,981,018

		8,002,499		7,981,018

	￦	10,720,231	￦	11,320,590

20.2 Difference between the amount contractually required to pay at maturity and carrying amount of financial liabilities designated at fair value through profit or loss as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Amount contractually required to pay at maturity	￦	7,947,236		￦	7,900,807
Carrying amount		8,002,499			7,981,018

Difference	￦	(55,263	)	￦	(80,211	)

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21. Deposits

Details of deposits as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Demand deposits
Demand deposits in Korean won	￦	156,242,487		￦	169,324,051
Demand deposits in foreign currencies		13,667,783			16,531,638

		169,910,270			185,855,689

Time deposits
Time deposits in Korean won		221,342,787			224,427,609
Fair value adjustments of fair value hedged time deposits in Korean won		6,258			6,865

		221,349,045			224,434,474

Time deposits in foreign currencies		28,299,460			27,711,278
Fair value adjustments of fair value hedged time deposits in foreign currencies		(7,593	)		(1,334	)

		28,291,867			27,709,944

		249,640,912			252,144,418

Certificates of deposits		9,805,371			13,749,293

Investment contract liabilities		6,331,344			10,647,626

	￦	435,687,897		￦	462,397,026

22. Borrowings

22.1 Details of borrowings as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
General borrowings	￦	52,433,193	￦	53,070,565
Bonds sold under repurchase agreements and others		12,803,106		13,430,104
Call money		2,840,713		4,227,727

	￦	68,077,012	￦	70,728,396

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23.2 Changes in debentures based on par value for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Beginning		Issue		Repayment			Others			Ending
Debentures in Korean won
Structured debentures	￦	20,560	￦	70,000	￦	(150	)	￦	—		￦	90,410
Subordinated fixed rate debentures		4,445,150		600,000		—			—			5,045,150
Fixed rate debentures		54,370,733		86,011,300		(84,394,568	)		—			55,987,465
Floating rate debentures		1,250,000		1,360,000		(230,000	)		—			2,380,000

		60,086,443		88,041,300		(84,624,718	)		—			63,503,025

Debentures in foreign currencies
Floating rate debentures		3,122,201		1,409,480		(841,190	)		(53,584	)		3,636,907
Fixed rate debentures		13,229,773		3,779,076		(4,021,182	)		191,501			13,179,168

		16,351,974		5,188,556		(4,862,372	)		137,917			16,816,075

	￦	76,438,417	￦	93,229,856	￦	(89,487,090	)	￦	137,917		￦	80,319,100

24. Provisions

24.1 Details of provisions as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Provisions for credit losses of unused loan commitments	￦	297,855	￦	274,488
Provisions for credit losses of acceptances and guarantees		56,097		49,025
Provisions for credit losses of financial guarantee contracts		7,378		6,024
Provisions for restoration costs		180,590		171,649
Others		385,712		763,204

	￦	927,632	￦	1,264,390

24.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	2024
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired
Beginning	￦	232,674		￦	136,318		￦	10,674		￦	30,849		￦	148,197		￦	4,408
Transfer between stages:
Transfer to 12-month expected credit losses		90,484			(84,851	)		(5,633	)		87,306			(87,306	)		—
Transfer to lifetime expected credit losses		(19,576	)		20,367			(791	)		(464	)		464			—
Impairment		(720	)		(2,150	)		2,870			(52	)		(85	)		137
Provision (reversal) for credit losses		(88,390	)		9,139			(5,210	)		(90,285	)		(58,819	)		9,309
Others (exchange differences, etc.)		2,523			152			(25	)		12,111			36			291

Ending	￦	216,995		￦	78,975		￦	1,885		￦	39,465		￦	2,487		￦	14,145

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24.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
	2025
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired
Beginning	￦	216,995		￦	78,975		￦	1,885		￦	39,465		￦	2,487		￦	14,145
Transfer between stages:
Transfer to 12-month expected credit losses		24,364			(24,268	)		(96	)		116			(116	)		—
Transfer to lifetime expected credit losses		(22,180	)		24,123			(1,943	)		(826	)		862			(36	)
Impairment		(1,502	)		(3,375	)		4,877			(47	)		(172	)		219
Provision (reversal) for credit losses		(29,070	)		8,761			(2,441	)		(6,320	)		2,279			(2,653	)
Others (exchange differences, etc.)		(604	)		7			(20	)		(317	)		(4	)		(57	)

Ending	￦	188,003		￦	84,223		￦	2,262		￦	32,071		￦	5,336		￦	11,618

24.3 Changes in provisions for credit losses of financial guarantee contracts for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024			2025
Beginning	￦	6,500		￦	7,378
Provision (reversal)		15,779			(529	)
Others		(14,901	)		(825	)

Ending	￦	7,378		￦	6,024

24.4 Changes in provisions for restoration costs for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024			2025
Beginning	￦	155,214		￦	180,590
Provision		7,846			8,275
Reversal		(1,422	)		(4,515	)
Used		(4,632	)		(14,925	)
Unwinding of discount		5,221			5,075
Effect of changes in discount rate		18,363			(2,851	)

Ending	￦	180,590		￦	171,649

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

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


	2024
	Membership rewards program			Dormant accounts			Litigations			Others 1, 2, 3			Total
Beginning	￦	47		￦	3,359		￦	185,667		￦	530,511		￦	719,584
Increase		80			2,803			53,125			806,860			862,868
Decrease		(54	)		(3,009	)		(84,490	)		(1,115,767	)		(1,203,320	)
Others		—			—			1,912			4,668			6,580

Ending 1, 2, 3	￦	73		￦	3,153		￦	156,214		￦	226,272		￦	385,712


(In millions of Korean won)
	2025
	Membership rewards program			Dormant accounts			Litigations			Others 1, 2, 3, 4			Total
Beginning	￦	73		￦	3,153		￦	156,214		￦	226,272		￦	385,712
Increase		108			12,642			59,444			496,648			568,842
Decrease		(90	)		(10,061	)		(73,044	)		(107,629	)		(190,824	)
Others		—			—			(524	)		(2	)		(526	)

Ending 1, 2, 3 , 4	￦	91		￦	5,734		￦	142,090		￦	615,289		￦	763,204

1	Includes other provisions of ￦ 17,064 million and ￦ 6,577 million related to the Livelihood finance support program as of December 31, 2024 and 2025, respectively.

2	Includes other provisions of ￦ 55,182 million and ￦ 28,396 million related to the voluntary compensation for the performance of the Hang Seng China Enterprise Index as of December 31, 2024 and 2025, respectively.

3	Includes other provisions of ￦ 33,776 million and ￦ 144,246 million related to the completion guarantee management-type land trust business agreement of KB Real Estate Trust Co., Ltd. as of December 31, 2024 and 2025, respectively.

4	As of December 31, 2025, other provisions include ￦ 333,002 million related to ELS and LTV penalties, among others, and such amount may change depending on future developments and the outcome of related matters.

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25. Net Defined Benefit Liabilities

25.1 Defined Benefit Plan

The Group operates defined benefit plans which have the following characteristics:

•

The Group has the obligation to pay the agreed benefits to all its current and former employees.

•

The Group assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities recognized in the consolidated statement of financial position are calculated by the independent actuary in accordance with actuarial valuation method. The defined benefit obligation is calculated using the projected unit credit method. Assumptions based on market data and historical data such as discount rate, future salary increase rate, mortality, and consumer price index are used which are updated annually.

Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends which may affect net defined benefit liabilities and future payments. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in the period incurred through other comprehensive income.

25.2 Changes in net defined benefit liabilities for the years ended December 31, 2024 and 2025, are as follows:


	2024
(In millions of Korean won)	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities(assets)
Beginning	￦	2,362,952		￦	(2,655,173	)	￦	(292,221	)
Current service cost		216,612			—			216,612
Gains on settlement		(1,751	)		—			(1,751	)
Interest expense (income)		94,050			(107,712	)		(13,662	)
Remeasurements:
Actuarial gains and losses by changes in demographic assumptions		(2,786	)		—			(2,786	)
Actuarial gains and losses by changes in financial assumptions		145,060			—			145,060
Actuarial gains and losses by experience adjustments		2,670			—			2,670
Return on plan assets (excluding amounts included in interest income)		—			(27,251	)		(27,251	)
Contributions by the Group		—			(131,400	)		(131,400	)
Payments from plans (settlement)		(457	)		457			—
Payments from plans (benefit payments)		(225,551	)		225,551			—
Payments from the Group		(54,902	)		—			(54,902	)
Transfer in (out)		952			(201	)		751
Effect of exchange differences		613			(76	)		537
Others		72			(42	)		30

Ending*	￦	2,537,534		￦	(2,695,847	)	￦	(158,313	)

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25.2 Changes in net defined benefit liabilities for the years ended December 31, 2024 and 2025, are as follows (cont’d):


	2025
(In millions of Korean won)	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities(assets)
Beginning	￦	2,537,534		￦	(2,695,847	)	￦	(158,313	)
Current service cost		228,415			—			228,415
Past service cost		410			—			410
Gains on settlement		(184	)		—			(184	)
Interest expense (income)		86,257			(93,357	)		(7,100	)
Remeasurements:
Actuarial gains and losses by changes in demographic assumptions		(1,718	)		—			(1,718	)
Actuarial gains and losses by changes in financial assumptions		(25,489	)		—			(25,489	)
Actuarial gains and losses by experience adjustments		32,440			—			32,440
Return on plan assets (excluding amounts included in interest income)		—			(43,680	)		(43,680	)
Contributions by the Group		—			(213,439	)		(213,439	)
Payments from plans (settlement)		(3,841	)		3,841			—
Payments from plans (benefit payments)		(230,683	)		230,683			—
Payments from the Group		(64,187	)		—			(64,187	)
Transfer in (out)		833			(422	)		411
Effect of exchange differences		(804	)		9			(795	)
Others		(49	)		—			(49	)

Ending*	￦	2,558,934		￦	(2,812,212	)	￦	(253,278	)

The net defined benefit assets of ￦ 158,313

million is calculated by subtracting ￦ 100,187 million of net defined benefit liabilities from ￦ 258,500 million of net defined benefit assets as of December 31, 2024. The net defined benefit assets of ￦ 253,278 million is calculated by subtracting ￦ 100,088 million of net defined benefit liabilities from ￦ 353,366 million of net defined benefit assets as of December 31, 2025.

25.3 Details of net defined benefit liabilities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Present value of defined benefit obligation	￦	2,537,534		￦	2,558,934
Fair value of plan assets		(2,695,847	)		(2,812,212	)

Net defined benefit liabilities (assets)	￦	(158,313	)	￦	(253,278	)

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25.4 Details of post-employment benefits recognized in profit or loss for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Current service cost	￦	199,882		￦	216,612		￦	228,415
Past service cost		—			—			410
Net interest expense (income) on net defined benefit liabilities		(23,046	)		(13,662	)		(7,100	)
Losses (gains) on settlement		55			(1,751	)		(184	)

Post-employment benefits *	￦	176,891		￦	201,199		￦	221,541

Includes post-employment benefits amounting to ￦ 18,308 million, ￦ 20,326 million and ￦ 24,972 million recognized as insurance service expenses for the years ended December 31, 2023, 2024 and 2025 and ￦ 2,824 million, ￦ 3,302 million, ￦ 3,654 million recognized as other expenses for the years ended December 31, 2023, 2024 and 2025 and ￦ 189 million, ￦ 90 million, ￦ 128 million recognized as prepayment for the years ended December 31, 2023, 2024 and 2025.

25.5 Details of remeasurements of net defined benefit liabilities recognized in other comprehensive income (loss) for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Remeasurements:
Return on plan assets (excluding amounts included in interest income)	￦	18,228		￦	27,251		￦	43,680
Actuarial gains and losses		(120,846	)		(144,944	)		(5,233	)
Income tax effect		25,895			31,076			(9,791	)
Effect of exchange differences		4,553			1,242			(639	)

Remeasurements after income tax expense	￦	(72,170	)	￦	(85,375	)	￦	28,017

25.6 Details of fair value of plan assets as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Assets quoted in an active market		Assets not quoted in an active market		Total
Cash and due from financial institutions	￦	—	￦	2,601,582	￦	2,601,582
Debt securities		—		93,416		93,416
Investment fund		—		849		849

	￦	—	￦	2,695,847	￦	2,695,847


(In millions of Korean won)	December 31, 2025
	Assets quoted in an active market		Assets not quoted in an active market		Total
Cash and due from financial institutions	￦	—	￦	2,670,983	￦	2,670,983
Debt securities		—		118,108		118,108
Investment fund		—		23,121		23,121

	￦	—	￦	2,812,212	￦	2,812,212

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25.7 Details of significant actuarial assumptions used as of December 31, 2024 and 2025, are as follows:


	December 31, 2024		December 31, 2025
Discount rate (%)		3.10~3.70		3.00~4.00
Salary increase rate (%)		0.00~7.00		0.00~7.00
Turnover rate (%)		0.00~38.60		0.00~47.65

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2023.

25.8 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2025, are as follows:

Changes in
assumptions

Effect on defined benefit obligation

Increase in assumptions

Decrease in assumptions

Discount rate

0.5

3.25% decrease

3.43% increase

Salary increase rate

0.5

3.43% increase

3.28% decrease

Turnover rate

0.5

0.19% decrease

0.19% increase

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. But in practice, changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the consolidated statement of financial position.

25.9 Expected maturity analysis of undiscounted pension benefit payments (including expected future benefit) as of December 31, 2025, are as follows:

(In millions of Korean won)

Up to 1 year

1~2 years

2~5 years

5~10 years

Over 10 years

Total

Pension benefits *

￦

260,746

￦

298,747

￦

877,376

￦

1,381,543

￦

3,695,296

￦

6,513,708

*	Amount determined under the promotion compensation type defined contribution plan is excluded.

The weighted average duration of the defined benefit obligation is 1 ~ 11 years

25.10 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2025 is

￦

233,390 million.

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26. Other Liabilities

Details of other liabilities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Other financial liabilities
Other payables	￦	15,229,554	￦	19,797,372
Prepaid card and debit card payables		36,125		38,214
Accrued expenses		5,862,874		5,548,330
Financial guarantee contracts liabilities		31,668		61,811
Deposits for letter of guarantees and others		1,079,417		812,595
Domestic exchange settlement credits		295,326		98,133
Foreign exchange settlement credits		268,794		266,026
Borrowings of other accounting businesses		4,404		18,849
Due to trust accounts		8,232,002		11,137,898
Liabilities incurred from agency relationships		794,661		765,269
Account for agency business		733,654		925,566
Dividend payables		1,836		2,218
Lease liabilities		964,399		901,113
Others		60,169		95,863

		33,594,883		40,469,257

Other non-financial liabilities
Other payables		395,951		439,658
Unearned revenue		367,468		376,310
Accrued expenses		1,153,956		1,329,545
Deferred revenue on credit card points		238,584		233,455
Withholding taxes		286,435		356,720
Others		392,385		446,518

		2,834,779		3,182,206

	￦	36,429,662	￦	43,651,463

27. Equity

27.1 Share Capital

27.1.1 Details of share capital as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won and in number of shares)	December 31, 2024		December 31, 2025
Type of share	Ordinary share		Ordinary share
Number of authorized shares		1,000,000,000		1,000,000,000
Par value per share (In Korean won)	￦	5,000	￦	5,000
Number of issued shares		393,528,423		381,462,103
Share capital*	￦	2,090,558	￦	2,090,558

*	Due to the retirement of shares deducted through retained earnings, it is different from the total par value of the shares issued.

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27.1.2 Changes in outstanding shares for the years ended December 31, 2024 and 2025, are as follows:


(In number of shares)	2024			2025
Beginning		378,663,825			373,600,719
Increase		5,000,000			—
Decrease		(10,063,106	)		(15,012,997	)

Ending		373,600,719			358,587,722

27.2 Hybrid Securities

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


(In millions of Korean won)
Hybrid securities	Issuance date		Maturity		Interest rate (%) as of December 31, 2025		December 31, 2024		December 31, 2025
Series 1-2		May 2, 2019		Perpetual bond		3.44	￦	49,896	￦	49,896
Series 2-1*		May 8, 2020		Perpetual bond		3.30		324,099		—
Series 2-2		May 8, 2020		Perpetual bond		3.43		74,812		74,812
Series 3-1*		Jul. 14, 2020		Perpetual bond		3.17		369,099		—
Series 3-2		Jul. 14, 2020		Perpetual bond		3.38		29,922		29,922
Series 4-1*		Oct. 20, 2020		Perpetual bond		3.00		433,996		—
Series 4-2		Oct. 20, 2020		Perpetual bond		3.28		64,855		64,855
Series 5-1		Feb. 19, 2021		Perpetual bond		2.67		419,071		419,071
Series 5-2		Feb. 19, 2021		Perpetual bond		2.87		59,862		59,862
Series 5-3		Feb. 19, 2021		Perpetual bond		3.28		119,727		119,727
Series 6-1		May 28, 2021		Perpetual bond		3.20		165,563		165,563
Series 6-2		May 28, 2021		Perpetual bond		3.60		109,708		109,708
Series 7-1		Oct. 8, 2021		Perpetual bond		3.57		208,468		208,468
Series 7-2		Oct. 8, 2021		Perpetual bond		3.80		59,834		59,834
Series 8-1		Feb. 16, 2022		Perpetual bond		4.00		442,970		442,970
Series 8-2		Feb. 16, 2022		Perpetual bond		4.30		155,626		155,626
Series 9-1		May 12, 2022		Perpetual bond		4.68		478,829		478,829
Series 9-2		May 12, 2022		Perpetual bond		4.97		19,906		19,906
Series 10-1		Aug. 26, 2022		Perpetual bond		4.90		407,936		407,936
Series 10-2		Aug. 26, 2022		Perpetual bond		5.15		70,819		70,819
Series 10-3		Aug. 26, 2022		Perpetual bond		5.30		19,944		19,944
Series 11-1		Feb. 03, 2023		Perpetual bond		4.90		548,681		548,681
Series 11-2		Feb. 03, 2023		Perpetual bond		5.03		49,871		49,871
Series 12		Feb. 28, 2024		Perpetual bond		4.39		399,084		399,060
Series 13		Jan. 22, 2025		Perpetual bond		4.00		—		404,028

							￦	5,082,578	￦	4,359,388

The Parent Company early redeemed in full its

2-1

Additional Tier 1 capital securities amounting to ￦ 325,000 million on May 8, 2025, and its

3-1

Additional Tier 1 capital securities amounting to ￦ 370,000 million on July 14, 2025, following the exercise of the respective call options. In addition, the

4-1

Additional Tier 1 capital securities amounting to ￦ 435,000 million were fully redeemed on October 20, 2025, upon the exercise of the call option.

The above hybrid securities are early redeemable by the Group after 5 or 7 or 10 years from the issuance date. On the other hand, hybrid securities of ￦

1,065,613

million issued by Kookmin Bank, hybrid securities of ￦

232,672

million issued by KB Securities Co., Ltd. and hybrid securities of ￦

49,800

million issued by KB Life Insurance Co., Ltd., hybrid securities of ￦

249,150

million issued by KB Kookmin Card Co., Ltd. and hybrid securities of ￦

19,993 million issued by KB Real Estate Trust. Co., Ltd. are recognized as

non-controlling

interests and are early redeemable after 5 years from the issuance date and each interest payment date thereafter.

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27.3 Capital Surplus

Details of capital surplus as of December 31, 2024 and 2025, are as follows


(In millions of Korean won)	December 31, 2024			December 31, 2025
Paid-in capital in excess of par value	￦	13,190,274		￦	13,190,274
Losses on sales of treasury shares		(477,358	)		(477,358	)
Other capital surplus		3,933,818			3,920,602

	￦	16,646,734		￦	16,633,518

27.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Remeasurements of net defined benefit liabilities	￦	(247,241	)	￦	(218,626	)
Currency translation differences		809,089			761,727
Gains (losses) on financial instruments at fair value through other comprehensive income		(1,518,990	)		(3,396,899	)
Share of other comprehensive loss of associates and joint ventures		(3,153	)		(1,135	)
Gains (losses) on cash flow hedging instruments		108,318			(157,512	)
Losses on hedging instruments of net investments in foreign operations		(316,109	)		(276,478	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		(17,314	)		(20,536	)
Finance gains or losses on insurance contract assets (liabilities)		1,682,322			2,842,003

	￦	496,922		￦	(467,456	)

27.5 Retained Earnings

Details of retained earnings as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Legal reserves 1	￦	1,219,810	￦	1,436,870
Voluntary reserves		982,000		982,000
Retained earnings 2		32,606,410		35,914,871

	￦	34,808,220	￦	38,333,741

With respect to the allocation of net profit earned in a fiscal term, the Parent Company must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its

paid-in

capital in accordance with Article 53 of the Financial Holding Company Act. This reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce accumulated deficit.

2	The regulatory reserve for credit losses the Group appropriated in retained earnings is ￦ 4,370,051 million and ￦ 4,190,070 million for the years ended December 31, 2024 and 2025, respectively.

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27.6 Treasury Shares

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

(In millions of Korean won and in number of shares)


	2024
	Beginning		Acquisition		Disposal			Retirement			Ending
Number of treasury shares*		24,847,247		10,063,106		(5,000,000	)		(9,982,649	)		19,927,704

Carrying amount	￦	1,165,837	￦	820,000	￦	(234,600	)	￦	(515,177	)	￦	1,236,060

(In millions of Korean won and in number of shares)


	2025
	Beginning		Acquisition		Disposal		Retirement			Ending
Number of treasury shares		19,927,704		15,012,997		—		(12,066,320	)		22,874,381

Carrying amount	￦	1,236,060	￦	1,480,000	￦	—	￦	(814,522	)	￦	1,901,538

*	5 million treasury shares deposited at the Korea Securities Depository for the exchange of exchangeable bonds were disposed on February 14, 2024, due to the exercise of exchange right.

On May 15, 2025, the Parent Company retired 4,575,874

treasury shares (￦

400,000 million) acquired pursuant to the Board resolution dated July 23, 2024, 1,089,097

treasury shares (￦

100,000 million) acquired pursuant to the Board resolution dated October 24, 2024, and 6,401,349

treasury shares (￦

520,000 million) acquired pursuant to the Board resolution dated February 5, 2025. In addition, the Parent Company retired 3,047,395

treasury shares (￦

300,000 million) acquired pursuant to the Board resolution dated April 24, 2025, and 5,564,253

treasury shares (￦

660,000 million) acquired pursuant to the Board resolution dated July 24, 2025, on January 15, 2026.

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28. Net Interest Income

Details of interest income, interest expense, and net interest income for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023		2024		2025
Interest income
Due from financial institutions measured at fair value through profit or loss	￦	1,746	￦	2,889	￦	2,598
Securities measured at fair value through profit or loss		1,400,912		1,422,251		1,380,773
Loans measured at fair value through profit or loss		12,708		33,372		52,781
Securities measured at fair value through other comprehensive income		2,225,549		2,693,188		2,794,599
Loans measured at fair value through other comprehensive income		39,084		55,314		72,062
Due from financial institutions measured at amortized cost		351,797		395,886		356,944
Securities measured at amortized cost		1,123,957		1,236,448		1,113,363
Loans measured at amortized cost		23,439,034		24,006,088		22,673,204
Insurance finance income		20,899		31,317		37,205
Others		526,338		614,632		672,571

		29,142,024		30,491,385		29,156,100

Interest expense
Deposits		10,052,830		10,379,055		9,097,941
Borrowings		2,519,463		2,548,842		2,141,511
Debentures		2,306,823		2,623,198		2,635,724
Insurance finance expense		1,534,458		1,477,757		1,504,488
Others		547,590		635,819		703,343

		16,961,164		17,664,671		16,083,007

Net interest income	￦	12,180,860	￦	12,826,714	￦	13,073,093

Interest income recognized on impaired loans is ￦

73,543

million, ￦

92,741

and ￦

76,193 million for the years ended December 31, 2023, 2024 and 2025, respectively.

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29. Net Fee and Commission Income

Details of fee and commission income, fee and commission expense, and net fee and commission income for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023		2024		2025
Fee and commission income
Banking activity fees	￦	181,841	￦	187,563	￦	198,799
Lending activity fees		96,469		113,553		96,611
Credit card and debit card related fees		1,598,964		1,661,516		1,570,928
Agent activity fees		198,402		215,382		258,501
Trust and other fiduciary fees		375,007		288,097		339,684
Fund management related fees		133,027		140,107		198,378
Acceptances and guarantees fees		77,291		95,588		81,563
Foreign currency related fees		308,747		362,449		450,349
Securities agency fees		113,476		123,833		169,495
Other business account commission on consignment		33,873		34,453		30,096
Commissions received on securities business		656,424		663,054		774,028
Lease fees		1,096,933		1,120,384		1,078,431
Others		497,620		475,864		526,658

		5,368,074		5,481,843		5,773,521

Fee and commission expense
Trading activity related fees *		56,331		49,631		55,548
Lending activity fees		34,040		35,312		43,996
Credit card and debit card related fees		861,639		824,532		815,743
Outsourcing related fees		167,927		149,810		135,254
Foreign currency related fees		93,277		118,475		127,540
Others		481,336		454,456		497,153

		1,694,550		1,632,216		1,675,234

Net fee and commission income	￦	3,673,524	￦	3,849,627	￦	4,098,287

*	Fees from financial instruments at fair value through profit or loss

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30. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

30.1 Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments at fair value through profit or loss for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023		2024		2025
Gains on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities	￦	3,904,088	￦	3,571,736	￦	4,415,446
Equity securities		818,610		750,633		3,130,422

		4,722,698		4,322,369		7,545,868

Derivatives held for trading:
Interest rate		7,195,387		5,053,285		5,127,237
Currency		9,230,401		17,434,391		9,818,150
Stock or stock index		2,027,294		2,394,867		2,840,047
Credit		41,234		46,619		63,269
Commodity		30,829		63,666		134,685
Others		173,215		64,960		85,409

		18,698,360		25,057,788		18,068,797

Financial liabilities at fair value through profit or loss		192,334		356,827		164,479
Other financial instruments		502		522		477

		23,613,894		29,737,506		25,779,621

Losses on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		1,106,981		1,491,166		2,093,258
Equity securities		372,969		917,182		518,373

		1,479,950		2,408,348		2,611,631

Derivatives held for trading:
Interest rate		7,439,802		5,170,159		4,480,618
Currency		9,271,983		18,093,278		9,559,853
Stock or stock index		2,164,455		2,120,380		4,194,702
Credit		44,971		43,821		60,622
Commodity		42,150		57,086		112,210
Others		166,403		155,760		72,498

		19,129,764		25,640,484		18,480,503

Financial liabilities at fair value through profit or loss		509,835		358,441		792,923
Other financial instruments		387		692		1,551

		21,119,936		28,407,965		21,886,608

Net gains (losses) on financial instruments at fair value through profit or loss	￦	2,493,958	￦	1,329,541	￦	3,893,013

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30.2 Net Gains or Losses on Financial Instruments Designated at Fair Value through Profit or Loss

Net gains or losses on financial instruments designated at fair value through profit or loss include gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments designated at fair value through profit or loss for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Gains on financial instruments designated at fair value through profit or loss
Financial liabilities designated at fair value through profit or loss	￦	726,277		￦	323,412		￦	144,141

		726,277			323,412			144,141

Losses on financial instruments designated at fair value through profit or loss
Financial liabilities designated at fair value through profit or loss		1,057,170			640,872			656,949

		1,057,170			640,872			656,949

Net gains (losses) on financial instruments designated at fair value through profit or loss	￦	(330,893	)	￦	(317,460	)	￦	(512,808	)

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31. Net Other Operating Income and Expenses

Details of other operating income and expenses for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Other operating income
Gains on securities at fair value through other comprehensive income:
Gains on redemption of securities at fair value through other comprehensive income	￦	7,326		￦	9,738		￦	2,939
Gains on disposal of securities at fair value through other comprehensive income		59,666			128,169			254,985

		66,992			137,907			257,924

Gains on financial assets at amortized cost:
Gains on sale of loans measured at amortized cost		99,942			136,706			177,608
Gains on disposal of securities measured at amortized cost		174			1,019			1,039

		100,116			137,725			178,647

Gains on hedge accounting		361,281			480,584			267,782
Gains on foreign exchange transactions		6,480,621			6,070,151			6,317,310
Dividend income		47,769			86,524			148,954
Others		593,871			673,191			830,162

		7,650,650			7,586,082			8,000,779

Other operating expenses
Losses on securities at fair value through other comprehensive income:
Losses on redemption of securities at fair value through other comprehensive income		8			66			8
Losses on disposal of securities at fair value through other comprehensive income		323,147			242,846			158,909

		323,155			242,912			158,917

Losses on financial assets at amortized cost:
Losses on sale of loans measured at amortized cost		49,534			115,318			567,474
Losses on disposal of securities measured at amortized cost		—			—			4

		49,534			115,318			567,478

Losses on hedge accounting		379,343			425,612			343,860
Losses on foreign exchange transactions		6,130,076			5,375,351			6,318,078
Deposit insurance fee		570,465			590,148			622,074
Credit guarantee fund fee		327,764			362,234			414,449
Depreciation expenses of operating lease assets		713,056			701,917			662,825
Others		1,870,246			1,645,601			1,796,173

		10,363,639			9,459,093			10,883,854

Net other operating expenses	￦	(2,712,989	)	￦	(1,873,011	)	￦	(2,883,075	)

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32.2 Share-based Payments

32.2.1 Stock grants

The Group changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of

pre-set

performance targets over the vesting period.

32.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2025, are as follows:


(In number of shares)	Grant date	Number of granted shares 1		Vesting conditions 2
KB Financial Group Inc.
Series 38	Nov. 21, 2023		55,547	Services fulfillment, market performance 3 35%, and non-market performance 5 65%
Series 39	Jan. 1, 2024		47,839	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 40	Feb. 1, 2024		489	Services fulfillment, market performance 3 30%, and non-market performance 4 70%
Series 41	Apr. 6, 2024		6,450	Services fulfillment, market performance 3 30%, and non-market performance 4 70%
Series 43	Jan. 1, 2025		33,538	Services fulfillment, market performance 3 0%, and non-market performance 4 100%
Series 44	Apr. 7, 2025		5,540	Services fulfillment, market performance 3 0%, and non-market performance 4 100%
Deferred grant in 2015			1,063	Satisfied
Deferred grant in 2020			40	Satisfied
Deferred grant in 2022			13,239	Satisfied
Deferred grant in 2023			46,315	Satisfied
Deferred grant in 2024			25,541	Satisfied

			235,601


Kookmin Bank
Series 96	Jan. 1, 2024		220,113	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100% Services fulfillment, market performance 3 30%, and non-market performance 6 70%
Series 97	Feb. 1, 2024		2,045	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 98	Apr. 22, 2024		2,962	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 99	July. 5, 2024		4,929	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 101	Aug. 24, 2024		4,453	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 102	Jan. 1, 2025		179,314	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100% Services fulfillment, market performance 3 30%, and non-market performance 6 70%
Series 103	Jan. 9, 2025		4,633	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Deferred grant in 2022			29,628	Satisfied
Deferred grant in 2023			93,891	Satisfied
Deferred grant in 2024			118,288	Satisfied

			660,256

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32.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2025, are as follows (cont’d):


(In number of shares)	Grant date	Number of granted shares 1		Vesting conditions 2
Other subsidiaries
Stock granted in 2012			160	Services fulfillment, market performance 3 0~50%, and non-market performance 4 50~100%
Stock granted in 2013			219
Stock granted in 2014			1,028
Stock granted in 2015			1,155
Stock granted in 2017			3,955
Stock granted in 2018			11,044
Stock granted in 2019			13,255
Stock granted in 2020			25,783
Stock granted in 2021			18,692
Stock granted in 2022			79,498
Stock granted in 2023			119,878
Stock granted in 2024			453,356
Stock granted in 2025			248,205

			976,228

			1,872,085

1	Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of December 31, 2025 (Deferred grants are residual shares vested as of December 31, 2025).

Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.

3	Relative TSR (Total Shareholder Return): [(Fair value at the end of the contract—Fair value at the beginning of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract

4	Performance results of company and employee

5	EPS (Earnings Per Share), Asset Quality, HCROI (Human Capital Return On Investment), Non-bank segment profit

6	EPS, Asset Quality

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32.2.1.2 Details of stock grants linked to short-term performance as of December 31, 2025, are as follows:


(In number of shares)	Estimated number of vested shares*	Vesting conditions
KB Financial Group Inc.
Stock granted in 2015	541	Satisfied
Stock granted in 2016	1,558	Satisfied
Stock granted in 2020	78	Satisfied
Stock granted in 2022	14,653	Satisfied
Stock granted in 2023	26,317	Satisfied
Stock granted in 2024	23,462	Satisfied
Stock granted in 2025	15,312	Proportional to service period
Kookmin Bank
Stock granted in 2022	54,211	Satisfied
Stock granted in 2023	118,021	Satisfied
Stock granted in 2024	97,412	Satisfied
Stock granted in 2025	57,301	Proportional to service period
Other subsidiaries
Stock granted in 2015	1,289	Satisfied
Stock granted in 2016	7,290	Satisfied
Stock granted in 2017	20,121	Satisfied
Stock granted in 2018	51,583	Satisfied
Stock granted in 2019	41,130	Satisfied
Stock granted in 2020	48,423	Satisfied
Stock granted in 2021	81,625	Satisfied
Stock granted in 2022	202,086	Satisfied
Stock granted in 2023	409,430	Satisfied
Stock granted in 2024	421,073	Satisfied
Stock granted in 2025	90,545	Proportional to service period

	1,783,461

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32.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2025, are as follows:

(In Korean won)

Risk-free

rate (%)

Fair value

(market
performance
condition)

Fair value

(non-market

performance
condition)

Linked to long-term performance

(KB Financial Group Inc.)

Series 38

2.56

99,026~110,857

107,743~120,615

Series 39

2.56

111,412~125,944

Series 40

2.56

111,412~125,944

Series 41

2.56

107,266~120,094

Series 43

2.56

98,255~115,478

107,266~125,944

Series 44

2.56

102,397~114,527

103,317~115,556

Deferred grant in 2015

2.56

—

125,944

Deferred grant in 2020

2.56

—

125,944

Deferred grant in 2022

2.56

—

120,094~125,944

Deferred grant in 2023

2.56

—

52,755~125,944

Deferred grant in 2024

2.56

—

115,556~125,944

(Kookmin Bank)

Series 96

2.56

111,412~125,944

Series 97

2.56

107,266~120,094

Series 98

2.56

107,266~120,094

Series 99

2.56

105,560~118,184

107,266~120,094

Series 101

2.56

107,266~120,094

Series 102

2.56

88,430~110,006

99,417~120,094

Series 103

2.56

94,586~105,791

103,317~115,556

Grant deferred in 2022

2.56

—

115,556~125,944

Grant deferred in 2023

2.56

—

115,556~120,094

Grant deferred in 2024

2.56

—

115,556

(Other subsidiaries)

Stock granted in 2012

2.56

—

125,944

Stock granted in 2013

2.56

—

125,944

Stock granted in 2014

2.56

—

52,755~125,944

Stock granted in 2015

2.56

—

47,631~125,944

Stock granted in 2017

2.56

—

45,096~125,944

Stock granted in 2018

2.56

—

45,096~125,944

Stock granted in 2019

2.56

—

45,096~125,944

Stock granted in 2020

2.56

—

45,096~125,944

Stock granted in 2021

2.56

—

111,412~125,944

Stock granted in 2022

2.56

—

52,755~125,944

Stock granted in 2023

2.56

102,345~125,944

61,294~125,944

Stock granted in 2024

2.56

103,576~125,944

87,156~125,944

Stock granted in 2025

2.56

92,561~118,840

80,274~125,944

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32.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2025, are as follows (cont’d):


(In Korean won)	Risk-free rate (%)		Fair value (market performance condition)		Fair value (non-market performance condition)
Linked to short-term performance
(KB Financial Group Inc.)
Stock granted in 2015		2.56		—		125,944
Stock granted in 2016		2.56		—		115,556~125,944
Stock granted in 2020		2.56		—		125,944
Stock granted in 2022		2.56		—		125,944
Stock granted in 2023		2.56		—		120,094~125,944
Stock granted in 2024		2.56		—		111,412~125,944
Stock granted in 2025		2.56		—		111,412~120,094
(Kookmin Bank)
Stock granted in 2022		2.56		—		114,461~125,944
Stock granted in 2023		2.56		—		62,951~125,944
Stock granted in 2024		2.56		—		80,206~125,944
Stock granted in 2025		2.56		—		99,417~120,094
(Other subsidiaries)
Stock granted in 2015		2.56		—		120,094~125,944
Stock granted in 2016		2.56		—		47,631~125,944
Stock granted in 2017		2.56		—		45,096~125,944
Stock granted in 2018		2.56		—		45,096~125,944
Stock granted in 2019		2.56		—		45,096~125,944
Stock granted in 2020		2.56		—		50,973~125,944
Stock granted in 2021		2.56		—		87,156~125,944
Stock granted in 2022		2.56		—		52,755~125,944
Stock granted in 2023		2.56		—		87,156~125,944
Stock granted in 2024		2.56		—		87,156~125,944
Stock granted in 2025		2.56		—		103,317~123,506

The Group uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses

one-year

risk-free rate of Korea Treasury Bond in order to measure the fair value.

32.2.1.4 The accrued expenses for share-based payments related to stock grants are ￦

295,867

million and ￦

395,692

million as of December 31, 2024 and 2025, respectively, and the compensation costs amounting to ￦

162,406

million and ￦

184,910 million were recognized for the years ended December 31, 2024 and 2025, respectively.

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32.2.2 Mileage stock

32.2.2.1 Details of mileage stock as of December 31, 2025, are as follows:


(In number of shares)
Grant date		Number of granted shares 1		Expected exercise period (years) 2		Remaining shares
Stock granted in 2021	Jan. 15, 2021		28,156		0.00~0.04		8,439
	Apr. 5, 2021		89		0.00~0.26		53
	Jul. 1, 2021		54		0.00~0.50		18
	Jul. 2, 2021		11		0.00~0.50		8
	Jul. 27, 2021		70		0.00~0.57		25
	Nov. 1, 2021		71		0.00~0.83		53
	Nov. 16, 2021		53		0.00~0.87		3
	Dec. 3, 2021		91		0.00~0.92		39
	Dec. 6, 2021		87		0.00~0.93		25
	Dec. 30, 2021		76		0.00~0.99		38
Stock granted in 2022	Jan. 14, 2022		20,909		0.00~1.04		9,025
	Apr. 4, 2022		65		0.00~1.25		33
	Apr. 19, 2022		33		0.00~1.30		20
	Aug. 3, 2022		62		0.00~1.59		6
	Aug. 9, 2022		80		0.00~1.60		17
	Oct. 19, 2022		55		0.00~1.80		5
	Nov. 1, 2022		177		0.00~1.83		52
	Dec. 1, 2022		49		0.00~1.92		48
	Dec. 6, 2022		88		0.00~1.93		8
	Dec. 12, 2022		114		0.00~1.95		48
	Dec. 15, 2022		42		0.00~1.95		23
	Dec. 30, 2022		114		0.00~1.99		25
Stock granted in 2023	Jan. 9, 2023		23,071		0.00~2.02		8,063
	Jan. 14, 2023		742		0.00~2.04		313
	Mar. 27, 2023		58		0.00~2.23		37
	Mar. 31, 2023		97		0.00~2.24		39
	May 4, 2023		105		0.00~2.34		22
	Jul. 3, 2023		63		0.00~2.50		21
	Jul. 26, 2023		38		0.00~2.56		24
	Jul. 31, 2023		220		0.00~2.58		62
	Oct. 20, 2023		80		0.00~2.80		42
	Nov. 1, 2023		78		0.00~2.83		39
	Dec. 1, 2023		49		0.00~2.92		36
	Dec. 13, 2023		115		0.00~2.95		29
	Dec. 14, 2023		57		0.00~2.95		50
	Dec. 27, 2023		19		0.00~2.99		14
	Dec. 28, 2023		162		0.00~2.99		71
	Dec. 29, 2023		95		0.00~2.99		76
Stock granted in 2024	Jan. 13, 2024		17,523		0.00~3.03		10,717
	Jan. 31, 2024		297		0.00~3.08		215
	Apr. 1, 2024		89		0.00~3.25		50
	Jul. 1, 2024		38		0.00~3.50		38
	Aug. 1, 2024		141		0.00~3.58		91
	Sep. 2, 2024		14		0.00~3.67		8
	Nov. 1, 2024		55		0.00~3.84		44
	Dec. 4, 2024		26		0.00~3.93		26
	Dec. 19, 2024		88		0.00~3.97		88
	Dec. 30, 2024		73		0.00~4.00		72

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32.2.2.1 Details of mileage stock as of December 31, 2025, are as follows (cont’d):


(In number of shares)
Grant date		Number of granted shares 1		Expected exercise period (years) 2	Remaining shares
Stock granted in 2025	Jan. 11, 2025		11,977	0.00~4.03		11,358
	Feb. 6, 2025		162	0.00~4.10		162
	Apr. 1, 2025		38	0.00~4.25		25
	May. 9, 2025		13	0.00~4.35		13
	Jul. 1, 2025		18	0.00~4.50		18
	Nov. 3, 2025		26	0.00~4.84		26
	Dec. 5, 2025		21	0.00~4.93		21
	Dec. 26, 2025		68	0.00~4.99		68
	Dec. 29, 2025		16	0.00~4.99		16

		106,278			50,005

Mileage stock is exercisable for four years after one year from the grant date at the closing price of the end of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a

one-year

lock-up

period.

2	Assessed based on the stock price as of December 31, 2025. These shares are vested immediately at grant date.

32.2.2.2 The accrued expenses for share-based payments related to mileage stock are ￦

5,067

million and ￦

6,236 million as of December 31, 2024 and 2025, respectively. The compensation costs

amounting to ￦

3,183

million and ￦

3,276 million were recognized as expenses for the years ended December 31, 2024 and 2025, respectively.

33. Net Other

Non-Operating

Income and Expenses

Details of other

non-operating

income and expenses for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Other non-operating income
Gains on disposal of property and equipment	￦	1,790		￦	29,515		￦	304,115
Rental income		23,682			26,023			25,863
Others		131,995			128,794			352,472

		157,467			184,332			682,450

Other non-operating expenses
Losses on disposal of property and equipment		1,839			5,080			2,061
Donation		120,560			152,037			168,515
Restoration costs		3,642			2,922			2,602
Management cost for written-off loans		3,769			3,888			4,902
Impairment losses on goodwill		6,268			60,273			223,871
Others*		319,369			1,003,262			641,916

		455,447			1,227,462			1,043,867

Net other non-operating income (expenses)	￦	(297,980	)	￦	(1,043,130	)	￦	(361,417	)

Expenses of

￦333,002

million were recognized as other provisions in relation to ELS, LTV penalties, and other matters for the year ended December 31, 2025, and expenses of

￦744,764

million were recognized in connection with voluntary compensation for the performance of Hang Seng China Enterprises Index for the year ended December 31, 2024. Such amounts may change depending on future developments and the resolution of the related matters.

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34. Income Tax Expense

34.1 Details of income tax expense for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023			2024			2025
Income tax payable
Current income tax expense	￦	1,468,269		￦	1,594,917		￦	2,007,206
Adjustments of income tax of prior years recognized in current tax		(35,326	)		(27,266	)		(110,464	)

		1,432,943			1,567,651			1,896,742

Changes in deferred income tax assets and liabilities*		557,002			(417,219	)		222,578

Income tax recognized directly in equity and others
Remeasurements of net defined benefit liabilities		25,895			31,076			(9,791	)
Currency translation differences		(11,866	)		(12,919	)		1,632
Net gains or losses on financial assets at fair value through other comprehensive income		(1,198,075	)		(421,425	)		680,947
Share of other comprehensive income or loss of associates and joint ventures		(7	)		(170	)		(1,390	)
Gains or losses on cash flow hedging instruments		(1,913	)		(12,501	)		29,455
Gains or losses on hedging instruments of net investments in foreign operations		4,931			66,971			(8,516	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		19,038			1,979			1,581
Finance gains or losses on insurance contract assets (liabilities)		772,435			1,139,335			(474,560	)

		(389,562	)		792,346			219,358

Others		(6,566	)		13,863			3,753

Income tax expense	￦	1,593,817		￦	1,956,641		￦	2,342,431

*	Following the tax law amendment enacted at the end of 2025, the corporate tax rate was changed. Accordingly, deferred tax assets (liabilities) expected to be realized after 2026 have been measured using the 27.5% tax rate.

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34.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023						2024						2025
	Tax rate (%)			Amount			Tax rate (%)			Amount			Tax rate (%)			Amount
Profit before income tax expense				￦	6,120,151					￦	6,985,247					￦	8,183,146
Income tax at the applicable tax rate 1		26.23			1,605,358			26.25			1,833,743			26.27			2,149,988
Non-taxable income		(0.72	)		(44,197	)		(0.98	)		(68,560	)		(0.43	)		(35,019	)
Non-deductible expenses		0.35			21,133			0.34			23,879			0.23			18,923
Tax credit and tax exemption		(0.03	)		(2,006	)		(0.03	)		(2,067	)		(0.03	)		(2,072	)
Temporary difference for which no deferred tax is recognized		(0.07	)		(4,312	)		(1.08	)		(75,701	)		1.19			97,171
Changes in recognition and measurement of deferred tax		1.12			68,362			3.32			231,943			0.91			74,437
Income tax refund for tax of prior years		(0.70	)		(42,952	)		(1.11	)		(77,423	)		(1.13	)		(92,273	)
Income tax expense of overseas branches		0.92			56,285			0.81			56,373			0.72			59,291
Tax rate change effect 2		0.01			622			0.00			—			1.04			85,286
Others		(1.05	)		(64,476	)		0.50			34,454			(0.15	)		(13,301	)

Average effective tax rate and income tax expense		26.04		￦	1,593,817			28.01		￦	1,956,641			28.63		￦	2,342,431

1	Applicable income tax rate for ￦ 200 million and below is 9.9%, for over ￦ 200 million to ￦ 20,000 million is 20.9%, for over ￦ 20,000 million to ￦ 300,000 million is 23.1% and for over ￦ 300,000 million is 26.4% for the years ended December 31, 2023 and 2024 and 2025 respectively.

2	As a result of the tax law amendment enacted at the end of 2025, the corporate income tax rate has changed. Deferred tax assets (liabilities) expected to be realized after 2026 have been measured at 27.5%.

34.3 The impact of the global minimum tax

The Group is required to pay an additional tax amount on the difference between the GloBE effective tax rate of each subsidiary’s jurisdiction and the minimum tax rate of 15%, in accordance with the Pillar 2 legislation.

The Group expects to recognize the related effects in its financial statements and to pay additional tax with respect to the shortfall to the 15% minimum tax rate arising from its subsidiary in China.

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35. Dividends

The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2024, amounting to ￦

298,285

million (￦

804 per share) were declared at the annual general shareholders’ meeting held on March 26, 2025 and paid on April 15, 2025.

According to the resolution of the Board of Directors on April 24, 2025, the quarterly dividend amounting to ￦

334,339

million (￦

912 per share) with a dividend record date of May 12, 2025 was paid on May 22, 2025; according to the resolution of the Board of Directors on July 24, 2025, the quarterly

dividend amounting to ￦

334,651

million (￦

920 per share) with a dividend record date of August 11, 2025 was paid on August 22, 2025; and according to the resolution of the Board of Directors on October 30, 2025, the quarterly dividend

amounting to ￦

335,016

million (￦

930 per share) with a dividend record date of November 14, 2025 was paid on November 27, 2025.

The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2025, amounting to ￦

573,768

million (￦

1,605 per share), are to be proposed at the annual general shareholders’ meeting scheduled for March 26, 2026. The consolidated financial statements as of and for the year ended December 31, 2025 do not reflect this dividend payable.

Meanwhile, the annual dividends to the shareholders of the Parent Company for the year ended December 31, 2023, amounting to ￦

587,006

million (￦

1,530 per share), were paid in 2024, and quarterly dividends paid in 2024

amounted to ￦

899,972 million.

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36. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning			Changes except for reclassification			Reclassification to profit or loss			Transfer within equity		Tax effect			Ending
Remeasurements of net defined benefit liabilities	￦	(161,295	)	￦	(117,022	)	￦	—		￦	—	￦	31,076		￦	(247,241	)
Currency translation differences		261,752			560,256			—			—		(12,919	)		809,089
Gains (losses) on financial instruments at fair value through other comprehensive income		(2,735,499	)		1,462,875			171,410			3,649		(421,425	)		(1,518,990	)
Share of other comprehensive income (loss) of associates and joint ventures		(3,318	)		336			(1	)		—		(170	)		(3,153	)
Gains (losses) on cash flow hedging instruments		73,555			341,856			(294,592	)		—		(12,501	)		108,318
Gains (losses) on hedging instruments of net investments in foreign operations		(129,401	)		(253,679	)		—			—		66,971			(316,109	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		(11,800	)		(7,493	)		—			—		1,979			(17,314	)
Finance gains or losses on insurance contract assets (liabilities)		4,858,650			(4,315,663	)		—			—		1,139,335			1,682,322

	￦	2,152,644		￦	(2,328,534	)	￦	(123,183	)	￦	3,649	￦	792,346		￦	496,922

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36. Accumulated Other Comprehensive Income (Loss) (cont’d)


(In millions of Korean won)	2025
	Beginning			Changes except for reclassification			Reclassification to profit or loss			Transfer within equity			Tax effect			Ending
Remeasurements of net defined benefit liabilities	￦	(247,241	)	￦	38,406		￦	—		￦	—		￦	(9,791	)	￦	(218,626	)
Currency translation differences		809,089			(43,718	)		(5,276	)		—			1,632			761,727
Gains (losses) on financial instruments at fair value through other comprehensive income		(1,518,990	)		(2,457,981	)		(88,610	)		(12,265	)		680,947			(3,396,899	)
Share of other comprehensive income (loss) of associates and joint ventures		(3,153	)		3,408			—			—			(1,390	)		(1,135	)
Gains (losses) on cash flow hedging instruments		108,318			(464,646	)		169,361			—			29,455			(157,512	)
Gains (losses) on hedging instruments of net investments in foreign operations		(316,109	)		46,601			1,546			—			(8,516	)		(276,478	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		(17,314	)		(4,803	)		—			—			1,581			(20,536	)
Finance gains or losses on insurance contract assets (liabilities)		1,682,322			1,634,241			—			—			(474,560	)		2,842,003

	￦	496,922		￦	(1,248,492	)	￦	77,021		￦	(12,265	)	￦	219,358		￦	(467,456	)

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37. Earnings per Share

37.1 Basic Earnings per Share

Basic earnings per share is calculated by dividing profit attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding.

37.1.1 Weighted average number of ordinary shares outstanding


(In number of shares)	2023						2024						2025
	Number of shares			Accumulated number of shares			Number of shares			Accumulated number of shares			Number of shares			Accumulated number of shares
Number of issued ordinary shares		403,511,072			147,787,824,904			393,528,423			146,287,481,492			381,462,103			140,850,554,475
Number of treasury shares*		(24,847,247	)		(7,617,096,867	)		(19,927,704	)		(7,659,481,944	)		(22,874,381	)		(7,483,617,685	)

Average number of ordinary shares outstanding		378,663,825			140,170,728,037			373,600,719			138,627,999,548			358,587,722			133,366,936,790

Number of days					365						366						365
Weighted average number of ordinary shares outstanding					384,029,392						378,765,026						365,388,868

*	Treasury shares retired during the year ended December 31, 2024 and 2025 were deducted from August 14, 2024 and May 15, 2025, respectively.

37.1.2 Basic earnings per share


(In Korean won and in number of shares)	2023			2024			2025
Profit attributable to shareholders of the Parent Company	￦	4,594,834,837,385		￦	5,078,220,543,511		￦	5,833,161,872,989
Deduction: Dividends on hybrid securities		(184,915,050,000	)		(199,798,800,000	)		(202,391,550,000	)

Profit attributable to ordinary equity holders of the Parent Company (A)		4,409,919,787,385			4,878,421,743,511			5,630,770,322,989
Weighted average number of ordinary shares outstanding (B)		384,029,392			378,765,026			365,388,868
Basic earnings per share (A/B)	￦	11,483		￦	12,880		￦	15,410

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37.2 Diluted Earnings per Share

Diluted earnings per share is calculated through increasing the weighted average number of ordinary shares outstanding by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Group has dilutive potential ordinary shares such as stock grants and ordinary share exchange right of exchangeable bonds.

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price for the year) based on the monetary value of stock grants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the settlement of stock grants.

Exchangeable bonds are included in potential ordinary shares from the exercisable date of the exchange right, and interest expense after tax for the period is added to profit for diluted earnings per share.

37.2.1 Adjusted profit for diluted earnings per share


(In Korean won)	2023			2024			2025
Profit attributable to shareholders of the Parent Company	￦	4,594,834,837,385		￦	5,078,220,543,511		￦	5,833,161,872,989
Deduction: Dividends on hybrid securities		(184,915,050,000	)		(199,798,800,000	)		(202,391,550,000	)

Profit attributable to ordinary equity holders of the Parent Company*		4,409,919,787,385			4,878,421,743,511			5,630,770,322,989
Adjustments: Interest expense on exchangeable bonds		2,451,851,049			306,631,690			—

Adjusted profit for diluted earnings per share	￦	4,412,371,638,434		￦	4,878,728,375,201		￦	5,630,770,322,989

*	The amount is after deducting dividends on hybrid securities.

37.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share


(In number of shares)	2023		2024		2025
Weighted average number of ordinary shares outstanding		384,029,392		378,765,026		365,388,868
Adjustment:
Stock grants		4,300,774		4,001,803		3,583,701
Exchangeable bonds		5,000,000		601,093		—

Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share		393,330,166		383,367,922		368,972,569

37.2.3 Diluted earnings per share


(In Korean won and in number of shares)	2023		2024		2025
Adjusted profit for diluted earnings per share	￦	4,412,371,638,434	￦	4,878,728,375,201	￦	5,630,770,322,989
Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share		393,330,166		383,367,922		368,972,569

Diluted earnings per share	￦	11,218	￦	12,726	￦	15,261

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38. Insurance Contracts

38.1 Details of insurance contract assets and insurance contract liabilities as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)


	December 31, 2024
	Life insurance												Non-life insurance
	Death			Health			Pension		Variables		Compound		Long-term		General		Automobile		Overseas
Insurance contract assets	￦	—		￦	—		￦	—	￦	—	￦	—	￦	265,762	￦	10,429	￦	—	￦	—
Insurance contract liabilities		14,687,315			579,725			7,431,564		6,644,117		—		22,838,534		1,327,191		2,145,366		209,889

Net insurance contract liabilities	￦	14,687,315		￦	579,725		￦	7,431,564	￦	6,644,117	￦	—	￦	22,572,772	￦	1,316,762	￦	2,145,366	￦	209,889

Reinsurance contract assets	￦	81		￦	—		￦	—	￦	—	￦	2,442	￦	492,051	￦	831,272	￦	6,953	￦	164,348
Reinsurance contract liabilities		18,022			16,265			—		—		—		122		21,857		—		—

Net reinsurance contract assets (liabilities)	￦	(17,941	)	￦	(16,265	)	￦	—	￦	—	￦	2,442	￦	491,929	￦	809,415	￦	6,953	￦	164,348

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38.1 Details of insurance contract assets and insurance contract liabilities as of December 31, 2024 and 2025, are as follows (cont’d):

(In millions of Korean won)


	December 31, 2025
	Life insurance												Non-life insurance
	Death			Health			Pension		Variables		Compound		Long-term		General		Automobile		Overseas
Insurance contract assets	￦	—		￦	—		￦	—	￦	—	￦	—	￦	259,907	￦	11,245	￦	—	￦	—
Insurance contract liabilities		15,003,063			559,250			7,744,119		7,238,057		—		22,447,953		1,506,831		2,155,573		135,184

Net insurance contract liabilities	￦	15,003,063		￦	559,250		￦	7,744,119	￦	7,238,057	￦	—	￦	22,188,046	￦	1,495,586	￦	2,155,573	￦	135,184

Reinsurance contract assets	￦	643		￦	1,230		￦	—	￦	—	￦	6,799	￦	451,419	￦	953,663	￦	5,777	￦	96,323
Reinsurance contract liabilities		18,064			16,030			—		—		—		41		25,513		—		—

Net reinsurance contract assets (liabilities)	￦	(17,421	)	￦	(14,800	)	￦	—	￦	—	￦	6,799	￦	451,378	￦	928,150	￦	5,777	￦	96,323

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38.2 Changes in insurance and reinsurance contract liabilities

38.2.1 Changes in insurance contract liabilities (assets) not applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Liability for Remaining Coverage									Total
	Other than Loss Component			Loss Component			Liability for Incurred Claims			Total
Beginning	￦	43,732,306		￦	540,113		￦	2,130,278		￦	46,402,697
Insurance revenue		(6,771,649	)		—			—			(6,771,649	)
Insurance service expenses
Insurance claims and expenses		—			(44,783	)		4,939,938			4,895,155
Amortization of insurance acquisition cash flows		294,733			—			—			294,733
Changes in fulfillment cash flows relating to incurred claims		—			—			(190,946	)		(190,946	)
Losses on onerous contracts and reversals		—			174,282			—			174,282
Other insurance service expenses		129			—			—			129
Insurance service result		(6,476,787	)		129,499			4,748,992			(1,598,296	)
Insurance finance income and expenses		6,091,991			20,987			54,062			6,167,040
Investment components		(5,265,357	)		—			5,265,357			—
Cashflow
Premiums received		13,777,045			—			—			13,777,045
Insurance acquisition cash flows		(2,815,098	)		—			—			(2,815,098	)
Incurred claims and expenses		—			—			(7,017,862	)		(7,017,862	)
Other cashflow		—			—			(3,000,166	)		(3,000,166	)
Total cashflow		10,961,947			—			(10,018,028	)		943,919
Other		134			—			—			134

Ending	￦	49,044,234		￦	690,599		￦	2,180,661		￦	51,915,494

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38.2.2 Changes in insurance contract liabilities (assets) applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Liability for Remaining Coverage					Liability for Incurred Claims
	Other than Loss Component			Loss Component		Present value of estimated future cashflow			Risk adjustment for non-financial risks			Total
Beginning	￦	1,933,331		￦	2,107	￦	1,953,780		￦	96,435		￦	3,985,653
Insurance revenue		(4,245,506	)		—		—			—			(4,245,506	)
Insurance service expenses
Insurance claims and expenses		—			—		3,370,974			32,254			3,403,228
Amortization of insurance acquisition cash flows		468,844			—		—			—			468,844
Changes in fulfillment cash flows relating to incurred claims		—			—		(123,122	)		(45,089	)		(168,211	)
Losses on onerous contracts and reversals		—			3,673		—			—			3,673
Other insurance service expenses		3,281			—		—			—			3,281
Insurance service result		(3,773,381	)		3,673		3,247,852			(12,835	)		(534,691	)
Insurance finance income and expenses		13,011			—		48,140			4,948			66,099
Investment components		(15,439	)		—		15,439			—			—
Cashflow
Premiums received		4,255,795			—		—			—			4,255,795
Insurance acquisition cash flows		(478,578	)		—		—			—			(478,578	)
Incurred claims and expenses		—			—		(3,659,534	)		—			(3,659,534	)
Other cashflow		—			—		—			—			—
Total cashflow		3,777,217			—		(3,659,534	)		—			117,683
Other		12,930			—		22,579			1,763			37,272

Ending	￦	1,947,669		￦	5,780	￦	1,628,256		￦	90,311		￦	3,672,016

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38.2.2 Changes in insurance contract liabilities (assets) applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Liability for Remaining Coverage					Liability for Incurred Claims
	Other than Loss Component			Loss Component		Present value of estimated future cashflow			Risk adjustment for non-financial risks			Total
Beginning	￦	1,947,669		￦	5,780	￦	1,628,256		￦	90,311		￦	3,672,016
Insurance revenue		(4,316,509	)		—		—			—			(4,316,509	)
Insurance service expenses
Insurance claims and expenses		—			—		3,630,127			29,868			3,659,995
Amortization of insurance acquisition cash flows		475,363			—		—			—			475,363
Changes in fulfillment cash flows relating to incurred claims		—			—		161,237			(52,022	)		109,215
Losses on onerous contracts and reversals		—			5,904		—			—			5,904
Other insurance service expenses		2,909			—		—			—			2,909
Insurance service result		(3,838,237	)		5,904		3,791,364			(22,154	)		(63,123	)
Insurance finance income and expenses		(3,666	)		—		23,392			1,880			21,606
Investment components		—			—		—			—			—
Cashflow
Premiums received		4,398,915			—		—			—			4,398,915
Insurance acquisition cash flows		(483,180	)		—		—			—			(483,180	)
Incurred claims and expenses		—			—		(3,763,677	)		—			(3,763,677	)
Other cashflow		—			—		—			—			—
Total cashflow		3,915,735			—		(3,763,677	)		—			152,058
Other		8,151			—		(3,997	)		(368	)		3,786

Ending	￦	2,029,652		￦	11,684	￦	1,675,338		￦	69,669		￦	3,786,343

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Table of Contents

38.2.4 Changes in reinsurance contract assets (liabilities) applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Liability for Remaining Coverage					Liability for Incurred Claims
	Other than Loss-recovery Component			Loss-recovery Component		Present value of estimated future cashflow			Risk adjustment for non-financial risks			Total
Beginning	￦	112,534		￦	380	￦	1,033,601		￦	46,776		￦	1,193,291
Reinsurance service expenses		(703,809	)		—		—			—			(703,809	)
Reinsurance service income
Reinsurance claims and expenses		2,816			—		329,207			8,854			340,877
Changes in fulfillment cash flows relating to incurred claims		—			—		(76,406	)		(23,188	)		(99,594	)
Recovery from loss recovery component and reversals		—			574		—			—			574
Reinsurance service result		(700,993	)		574		252,801			(14,334	)		(461,952	)
Reinsurance finance income and expenses		425			—		(78,147	)		3,108			(74,614	)
Effect of changes in exchange rate		8,161			—		41,005			20			49,186
Effect of changes in credit default risk of reinsurer		18			—		24,009			—			24,027
Total reinsurance finance income and expenses		8,604			—		(13,133	)		3,128			(1,401	)
Investment components		(16,003	)		—		16,003			—			—
Cashflow
Reinsurance Premiums Paid		678,583			—		—			—			678,583
Amounts recovered from reinsurer		—			—		(441,280	)		—			(441,280	)
Total cashflow		678,583			—		(441,280	)		—			237,303
Other		6,723			—		8,128			750			15,601

Ending	￦	89,448		￦	954	￦	856,120		￦	36,320		￦	982,842

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38.2.4 Changes in reinsurance contract assets (liabilities) applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Liability for Remaining Coverage					Liability for Incurred Claims
	Other than Loss-recovery Component			Loss-recovery Component		Present value of estimated future cashflow			Risk adjustment for non-financial risks			Total
Beginning	￦	89,448		￦	954	￦	856,120		￦	36,320		￦	982,842
Reinsurance service expenses		(661,646	)		—		—			—			(661,646	)
Reinsurance service income
Reinsurance claims and expenses		2,446			—		437,300			4,604			444,350
Changes in fulfillment cash flows relating to incurred claims		—			—		125,741			(18,866	)		106,875
Recovery from loss recovery component and reversals		—			437		—			—			437
Reinsurance service result		(659,200	)		437		563,041			(14,262	)		(109,984	)
Reinsurance finance income and expenses		3,479			—		46,073			835			50,387
Effect of changes in exchange rate		(2,609	)		—		(2,942	)		(5	)		(5,556	)
Effect of changes in credit default risk of reinsurer		(10	)		—		179			—			169
Total reinsurance finance income and expenses		860			—		43,310			830			45,000
Investment components		(5,675	)		—		5,675			—			—
Cashflow
Reinsurance Premiums Paid		673,892			—		—			—			673,892
Amounts recovered from reinsurer		—			—		(553,828	)		—			(553,828	)
Total cashflow		673,892			—		(553,828	)		—			120,064
Other		(4,783	)		—		(1,495	)		(199	)		(6,477	)

Ending	￦	94,542		￦	1,391	￦	912,823		￦	22,689		￦	1,031,445

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Table of Contents

38.3.2 Changes in components of reinsurance contract assets (liabilities) not applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Present value of estimated future cashflow			Risk adjustment for non-financial risks			Contractual service margin			Total
Beginning	￦	335,494		￦	73,397		￦	4,220		￦	413,111
Future service related changes
Changes in estimations adjusting contractual service margin		(8,865	)		(15,731	)		24,596			—
Losses on onerous contracts and reversals		16,719			5,663			—			22,382
Effect of new contracts		10,913			14,625			(25,525	)		13
Current period service related changes
Contractual service margin recognized in profit or loss for the services provided		—			—			291			291
Changes in risk adjustment due to release of risk		—			(6,850	)		—			(6,850	)
Experience adjustment		(20,157	)		—			—			(20,157	)
Past period service related changes
Changes in fulfillment cash flows relating to incurred claims		(14,070	)		(2,883	)		—			(16,953	)
Reinsurance service result		(15,460	)		(5,176	)		(638	)		(21,274	)
Reinsurance finance income and expenses		24,832			8,152			815			33,799
Effect of changes in exchange rate		(48	)		9			(55	)		(94	)
Effect of changes in credit default risk of reinsurer		150			—			—			150
Total reinsurance finance income and expenses		24,934			8,161			760			33,855
Cashflow for the period
Reinsurance Premiums Paid		666,604			—			—			666,604
Amounts recovered from reinsurer		(634,257	)		—			—			(634,257	)
Other cashflow		—			—			—			—
Total cashflow		32,347			—			—			32,347
Other		—			—			—			—

Ending	￦	377,315		￦	76,382		￦	4,342		￦	458,039

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38.3.2 Changes in components of reinsurance contract assets (liabilities) not applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Present value of estimated future cashflow			Risk adjustment for non-financial risks			Contractual service margin			Total
Beginning	￦	377,315		￦	76,382		￦	4,342		￦	458,039
Future service related changes
Changes in estimations adjusting contractual service margin		(114,760	)		(5,557	)		120,317			—
Losses on onerous contracts and reversals		(5,191	)		(2,137	)		—			(7,328	)
Effect of new contracts		(3,262	)		1,446			1,817			1
Current period service related changes
Contractual service margin recognized in profit or loss for the services provided		—			—			(9,241	)		(9,241	)
Changes in risk adjustment due to release of risk		—			(5,968	)		—			(5,968	)
Experience adjustment		(5,397	)		—			—			(5,397	)
Past period service related changes
Changes in fulfillment cash flows relating to incurred claims		5,415			(2,807	)		—			2,608
Reinsurance service result		(123,195	)		(15,023	)		112,893			(25,325	)
Reinsurance finance income and expenses		13,791			(705	)		2,323			15,409
Effect of changes in exchange rate		11			(1	)		(7	)		3
Effect of changes in credit default risk of reinsurer		1,309			—			—			1,309
Total reinsurance finance income and expenses		15,111			(706	)		2,316			16,721
Cashflow for the period
Reinsurance Premiums Paid		569,824			—			—			569,824
Amounts recovered from reinsurer		(594,498	)		—			—			(594,498	)
Other cashflow		—			—			—			—
Total cashflow		(24,674	)		—			—			(24,674	)
Other		—			—			—			—

Ending	￦	244,557		￦	60,653		￦	119,551		￦	424,761

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Table of Contents

38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023
	Life insurance														Non-life insurance								Total
	Death			Health			Pension			Variables			Compound		Long-term		General		Automobile		Overseas		Total
Insurance revenue:
Insurance contracts not applying the premium allocation approach:
Expected insurance claims and expenses	￦	254,876		￦	33,177		￦	35,907		￦	85,464		￦	—	￦	4,138,267	￦	—	￦	—	￦	—	￦	4,547,691
Changes in risk adjustment due to release of risk		18,099			2,846			4,720			4,992			—		184,724		—		—		—		215,381
Contractual service margin recognized in profit or loss for the services provided		287,724			19,960			35,629			116,255			—		812,094		—		—		—		1,271,662
Experience adjustments on premium related to current and past services		—			—			—			—					—		—		—		—		—
Recovery of insurance acquisition cash flows		18,996			2,835			6,167			5,339			—		170,819		—		—		—		204,156
Other insurance revenues		(3,444	)		(228	)		(2,409	)		(674	)		—		—		—		—		—		(6,755	)

Insurance revenue for insurance contracts not applying the premium allocation approach		576,251			58,590			80,014			211,376			—		5,305,904		—		—		—		6,232,135
Insurance revenue for insurance contracts applying the premium allocation approach		—			—			—			—			—		—		1,291,887		2,714,974		83,360		4,090,221

Total insurance revenue	￦	576,251		￦	58,590		￦	80,014		￦	211,376		￦	—	￦	5,305,904	￦	1,291,887	￦	2,714,974	￦	83,360	￦	10,322,356

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Table of Contents

38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2023
	Life insurance														Non-life insurance												Total
	Death			Health			Pension			Variables			Compound		Long-term			General			Automobile			Overseas			Total
Insurance service expenses:
Incurred claims and expenses	￦	(255,897	)	￦	(36,962	)	￦	(36,344	)	￦	(89,211	)	￦	—	￦	(4,074,815	)	￦	(1,058,394	)	￦	(2,388,765	)	￦	(159,369	)	￦	(8,099,757	)
Amortization of insurance acquisition cash flows		(18,996	)		(2,835	)		(6,167	)		(5,339	)		—		(173,030	)		(131,289	)		(314,720	)		(3,054	)		(655,430	)
Changes in fulfillment cash flows relating to incurred claims		12,947			(650	)		(1,595	)		1,823			—		35,466			204,283			61,059			—			313,333
Losses on onerous contracts and reversals		(10,570	)		(13,678	)		(9,537	)		5,804			—		(246,136	)		(807	)		—			—			(274,924	)
Other insurance service expenses		2,359			79			(4,453	)		(1,775	)		—		—			—			—			—			(3,790	)

Insurance service expenses for insurance contracts not applying the premium allocation approach		(270,157	)		(54,046	)		(58,096	)		(88,698	)		—		(4,458,515	)		—			—			—			(4,929,512	)
Insurance service expenses for insurance contracts applying the premium allocation approach		—			—			—			—			—		—			(986,207	)		(2,642,426	)		(162,423	)		(3,791,056	)

Total insurance service expenses	￦	(270,157	)	￦	(54,046	)	￦	(58,096	)	￦	(88,698	)	￦	—	￦	(4,458,515	)	￦	(986,207	)	￦	(2,642,426	)	￦	(162,423	)	￦	(8,720,568	)

Reinsurance income:
Recovery of incurred reinsurance claims and expenses	￦	437		￦	1,759		￦	—		￦	—		￦	2,233	￦	127,608		￦	566,668		￦	825		￦	128,534		￦	828,064
Changes in fulfillment cash flows relating to incurred claims		(203	)		(198	)		—			—			410		1,979			(196,236	)		(1,193	)		—			(195,441	)
Recognition and reversal of loss-recovery component		242			148			—			—			1,651		48,300			151			—			—			50,492
Other reinsurance income		—			—			—			—			—		—			—			—			—			—

Reinsurance income for reinsurance contracts not applying the premium allocation approach		476			1,709			—			—			4,294		176,626			—			—			—			183,105
Reinsurance income for reinsurance contracts applying the premium allocation approach		—			—			—			—			—		1,261			370,583			(368	)		128,534			500,010

Total reinsurance income	￦	476		￦	1,709		￦	—		￦	—		￦	4,294	￦	177,887		￦	370,583		￦	(368	)	￦	128,534		￦	683,115

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38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2023
	Life insurance													Non-life insurance												Total
	Death			Health			Pension		Variables		Compound			Long-term			General			Automobile			Overseas			Total
Reinsurance expense:
Reinsurance contracts not applying the premium allocation approach:
Expected recovery of incurred claims and expenses	￦	(951	)	￦	(2,081	)	￦	—	￦	—	￦	(1,318	)	￦	(149,313	)	￦	—		￦	—		￦	—		￦	(153,663	)
Changes in risk adjustment due to release of risk		(126	)		(120	)		—		—		(47	)		(7,865	)		—			—			—			(8,158	)
Contractual service margin recognized in profit or loss for the services received		(1,280	)		(369	)		—		—		(2,784	)		9,409			—			—			—			4,976
Experience adjustments on reinsurance premium related to current and past services		—			—			—		—		—			(2,951	)		—			—			—			(2,951	)
Other reinsurance expenses		14			8			—		—		1,075			—			—			—			—			1,097

		(2,343	)		(2,562	)		—		—		(3,074	)		(150,720	)		—			—			—			(158,699	)
Reinsurance expenses for reinsurance contracts applying the premium allocation approach		—			—			—		—		—			(1,812	)		(602,471	)		(9,478	)		(65,591	)		(679,352	)

Total reinsurance expense		(2,343	)		(2,562	)		—		—		(3,074	)		(152,532	)		(602,471	)		(9,478	)		(65,591	)		(838,051	)

Total insurance service result	￦	304,227		￦	3,691		￦	21,918	￦	122,678	￦	1,220		￦	872,744		￦	73,792		￦	62,702		￦	(16,120	)	￦	1,446,852

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Table of Contents

38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024
	Life insurance														Non-life insurance								Total
	Death			Health			Pension			Variables			Compound		Long-term		General		Automobile		Overseas		Total
Insurance revenue:
Insurance contracts not applying the premium allocation approach:
Expected insurance claims and expenses	￦	265,682		￦	35,551		￦	46,448		￦	90,456		￦	—	￦	4,565,702	￦	—	￦	—	￦	—	￦	5,003,839
Changes in risk adjustment due to release of risk		17,924			2,715			7,207			5,795			—		179,271		—		—		—		212,912
Contractual service margin recognized in profit or loss for the services provided		268,784			17,205			54,498			101,106			—		837,664		—		—		—		1,279,257
Experience adjustments on premium related to current and past services		—			—			—			—			—		—		—		—		—		—
Recovery of insurance acquisition cash flows		29,544			3,495			19,204			10,855			—		217,639		—		—		—		280,737
Other insurance revenues		(2,936	)		(713	)		(896	)		(551	)		—		—		—		—		—		(5,096	)

Insurance revenue for insurance contracts not applying the premium allocation approach		578,998			58,253			126,461			207,661			—		5,800,276		—		—		—		6,771,649
Insurance revenue for insurance contracts applying the premium allocation approach		—			—			—			—			—		—		1,362,030		2,820,406		63,070		4,245,506

Total insurance revenue	￦	578,998		￦	58,253		￦	126,461		￦	207,661		￦	—	￦	5,800,276	￦	1,362,030	￦	2,820,406	￦	63,070	￦	11,017,155

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38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024
	Life insurance															Non-life insurance												Total
	Death			Health			Pension			Variables			Compound			Long-term			General			Automobile			Overseas			Total
Insurance service expenses:
Incurred claims and expenses	￦	(219,260	)	￦	(36,144	)	￦	(36,385	)	￦	(89,201	)	￦	—		￦	(4,519,263	)	￦	(850,413	)	￦	(2,537,651	)	￦	(18,445	)	￦	(8,306,762	)
Amortization of insurance acquisition cash flows		(29,544	)		(3,495	)		(19,204	)		(10,855	)		—			(231,635	)		(146,582	)		(318,873	)		(3,389	)		(763,577	)
Changes in fulfillment cash flows relating to incurred claims		802			1,370			(1,648	)		(133	)		—			190,555			103,682			64,529			—			359,157
Losses on onerous contracts and reversals		(473	)		10,935			(4,242	)		(7,481	)		—			(167,924	)		(3,673	)		—			—			(172,858	)
Other insurance service expenses		1,766			1,634			(1,464	)		(2,064	)		—			—			—			—			—			(128	)

Insurance service expenses for insurance contracts not applying the premium allocation approach		(246,709	)		(25,700	)		(62,943	)		(109,734	)		—			(4,728,267	)		—			—			—			(5,173,353	)
Insurance service expenses for insurance contracts applying the premium allocation approach		—			—			—			—			—			—			(896,986	)		(2,791,995	)		(21,834	)		(3,710,815	)

Total insurance service expenses	￦	(246,709	)	￦	(25,700	)	￦	(62,943	)	￦	(109,734	)	￦	—		￦	(4,728,267	)	￦	(896,986	)	￦	(2,791,995	)	￦	(21,834	)	￦	(8,884,168	)

Reinsurance income:
Recovery of incurred reinsurance claims and expenses	￦	8,886		￦	12,465		￦	—		￦	—		￦	13,569		￦	162,127		￦	291,179		￦	201		￦	44,816		￦	533,243
Changes in fulfillment cash flows relating to incurred claims		1,044			884			—			—			2,017			(25,781	)		(94,031	)		(679	)		—			(116,546	)
Recognition and reversal of loss-recovery component		162			(120	)		—			—			(2,042	)		23,765			574			—			—			22,339
Other reinsurance income		—			—			—			—			—			—			—			—			—			—

Reinsurance income for reinsurance contracts not applying the premium allocation approach		10,092			13,229			—			—			13,544			160,316			—			—			—			197,181
Reinsurance income for reinsurance contracts applying the premium allocation approach		—			—			—			—			—			(205	)		197,722			(478	)		44,816			241,855

Total reinsurance income	￦	10,092		￦	13,229		￦	—		￦	—		￦	13,544		￦	160,111		￦	197,722		￦	(478	)	￦	44,816		￦	439,036

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38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024
	Life insurance													Non-life insurance												Total
	Death			Health			Pension		Variables		Compound			Long-term			General			Automobile			Overseas			Total
Reinsurance expense:
Reinsurance contracts not applying the premium allocation approach:
Expected recovery of incurred claims and expenses	￦	(9,577	)	￦	(10,893	)	￦	—	￦	—	￦	(11,195	)	￦	(188,354	)	￦	—		￦	—		￦	—		￦	(220,019	)
Changes in risk adjustment due to release of risk		(169	)		(86	)		—		—		(37	)		(9,232	)		—			—			—			(9,524	)
Contractual service margin recognized in profit or loss for the services received		(1,640	)		121			—		—		(403	)		2,211			—			—			—			289
Experience adjustments on reinsurance premium related to current and past services		—			—			—		—		—			16,785			—			—			—			16,785
Other reinsurance expenses		507			(1,471	)		—		—		(5,021	)		—			—			—			—			(5,985	)

		(10,879	)		(12,329	)		—		—		(16,656	)		(178,590	)		—			—			—			(218,454	)
Reinsurance expenses for reinsurance contracts applying the premium allocation approach		—			—			—		—		—			(1,625	)		(605,882	)		(7,206	)		(89,095	)		(703,808	)

Total reinsurance expense		(10,879	)		(12,329	)		—		—		(16,656	)		(180,215	)		(605,882	)		(7,206	)		(89,095	)		(922,262	)

Total insurance service result	￦	331,502		￦	33,453		￦	63,518	￦	97,927	￦	(3,112	)	￦	1,051,905		￦	56,884		￦	20,727		￦	(3,043	)	￦	1,649,761

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38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Life insurance														Non-life insurance								Total
	Death			Health			Pension			Variables			Compound		Long-term		General		Automobile		Overseas		Total
Insurance revenue:
Insurance contracts not applying the premium allocation approach:
Expected insurance claims and expenses	￦	263,319		￦	37,554		￦	55,355		￦	84,758		￦	—	￦	4,992,525	￦	—	￦	—	￦	—	￦	5,433,511
Changes in risk adjustment due to release of risk		17,228			3,087			9,030			6,213			—		205,030		—		—		—		240,588
Contractual service margin recognized in profit or loss for the services provided		266,560			19,013			59,199			106,798			—		853,436		—		—		—		1,305,006
Experience adjustments on premium related to current and past services		—			—			—			—			—		—		—		—		—		—
Recovery of insurance acquisition cash flows		33,686			4,773			34,412			11,326			—		273,822		—		—		—		358,019
Other insurance revenues		(489	)		(396	)		(306	)		(562	)		—		—		—		—		—		(1,753	)

Insurance revenue for insurance contracts not applying the premium allocation approach		580,304			64,031			157,690			208,533			—		6,324,813		—		—		—		7,335,371
Insurance revenue for insurance contracts applying the premium allocation approach		—			—			—			—			—		—		1,419,000		2,834,504		63,006		4,316,510

Total insurance revenue	￦	580,304		￦	64,031		￦	157,690		￦	208,533		￦	—	￦	6,324,813	￦	1,419,000	￦	2,834,504	￦	63,006	￦	11,651,881

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38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Life insurance															Non-life insurance												Total
	Death			Health			Pension			Variables			Compound			Long-term			General			Automobile			Overseas			Total
Insurance service expenses:
Incurred claims and expenses	￦	(229,359	)	￦	(54,703	)	￦	(48,641	)	￦	(84,454	)	￦	—		￦	(5,186,489	)	￦	(1,001,479	)	￦	(2,634,445	)	￦	(26,981	)	￦	(9,266,551	)
Amortization of insurance acquisition cash flows		(33,686	)		(4,773	)		(34,412	)		(11,326	)		—			(308,134	)		(161,239	)		(311,288	)		(2,836	)		(867,694	)
Changes in fulfillment cash flows relating to incurred claims		10,534			(87	)		(855	)		1,034			—			87,661			(133,728	)		24,514			—			(10,927	)
Losses on onerous contracts and reversals		(12,666	)		(688	)		(30,812	)		21,785			—			(48,267	)		(5,904	)		—			—			(76,552	)
Other insurance service expenses		(355	)		2,541			9,290			(2,951	)		—			—			—			—			—			8,525

Insurance service expenses for insurance contracts not applying the premium allocation approach		(265,532	)		(57,710	)		(105,430	)		(75,912	)		—			(5,455,229	)		—			—			—			(5,959,813	)
Insurance service expenses for insurance contracts applying the premium allocation approach		—			—			—			—			—			—			(1,302,350	)		(2,921,219	)		(29,817	)		(4,253,386	)

Total insurance service expenses	￦	(265,532	)	￦	(57,710	)	￦	(105,430	)	￦	(75,912	)	￦	—		￦	(5,455,229	)	￦	(1,302,350	)	￦	(2,921,219	)	￦	(29,817	)	￦	(10,213,199	)

Reinsurance income:
Recovery of incurred reinsurance claims and expenses	￦	871		￦	2,535		￦	—		￦	—		￦	2,679		￦	172,686		￦	409,737		￦	944		￦	32,701		￦	622,153
Changes in fulfillment cash flows relating to incurred claims		2,247			266			—			—			(664	)		1,228			106,485			(79	)		—			109,483
Recognition and reversal of loss-recovery component		185			214			—			—			109			(7,916	)		437			—			—			(6,971	)
Other reinsurance income		—			—			—			—			—			—			—			—			—			—

Reinsurance income for reinsurance contracts not applying the premium allocation approach		3,303			3,015			—			—			2,124			164,562			—			—			—			173,004
Reinsurance income for reinsurance contracts applying the premium allocation approach		—			—			—			—			—			1,436			516,659			865			32,701			551,661

Total reinsurance income	￦	3,303		￦	3,015		￦	—		￦	—		￦	2,124		￦	165,998		￦	516,659		￦	865		￦	32,701		￦	724,665

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38.4 Details of insurance service results for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Life insurance													Non-life insurance												Total
	Death			Health			Pension		Variables		Compound			Long-term			General			Automobile			Overseas			Total
Reinsurance expense:
Reinsurance contracts not applying the premium allocation approach:
Expected recovery of incurred claims and expenses	￦	(1,569	)	￦	(2,050	)	￦	—	￦	—	￦	(2,329	)	￦	(159,641	)	￦	—		￦	—		￦	—		￦	(165,589	)
Changes in risk adjustment due to release of risk		(212	)		(160	)		—		—		(162	)		(8,336	)		—			—			—			(8,870	)
Contractual service margin recognized in profit or loss for the services received		(1,782	)		(725	)		—		—		(2,077	)		(4,657	)		—			—			—			(9,241	)
Experience adjustments on reinsurance premium related to current and past services		(273	)		1,316			—		—		1,069			(16,823	)		—			—			—			(14,711	)
Other reinsurance expenses		41			19			—		—		23			—			—			—			—			83

		(3,795	)		(1,600	)		—		—		(3,476	)		(189,457	)		—			—			—			(198,328	)
Reinsurance expenses for reinsurance contracts applying the premium allocation approach		—			—			—		—		—			(1,594	)		(577,986	)		(6,732	)		(75,334	)		(661,646	)

Total reinsurance expense		(3,795	)		(1,600	)		—		—		(3,476	)		(191,051	)		(577,986	)		(6,732	)		(75,334	)		(859,974	)

Total insurance service result	￦	314,280		￦	7,736		￦	52,260	￦	132,621	￦	(1,352	)	￦	844,531		￦	55,323		￦	(92,582	)	￦	(9,444	)	￦	1,303,373

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38.5 The effect of new insurance contracts not applying the premium allocation approach for the years ended December 31, 2024 and 2025, are as follows:

38.5.1 Insurance contract


(In millions of Korean won)	2024
	Issued contract
	Other than onerous contract			Onerous contract			Total
Estimated Present Value of Future Cash Outflows	￦	15,805,702		￦	1,196,403		￦	17,002,105
Insurance Acquisition Cash Flow		2,900,605			160,020			3,060,625
Insurance Claims and Service Expenses		12,905,097			1,036,383			13,941,480
Estimated Present Value of Future Cash Inflows		(18,547,325	)		(1,137,642	)		(19,684,967	)
Risk Adjustment for Non-Financial Risks		307,999			15,078			323,077
Contractual service margin		2,433,624			—			2,433,624

Effect on financial statements of initial recognition of contracts	￦	—		￦	73,839		￦	73,839


(In millions of Korean won)	2025
	Issued contract
	Other than onerous contract			Onerous contract			Total
Estimated Present Value of Future Cash Outflows	￦	16,730,970		￦	1,442,034		￦	18,173,004
Insurance Acquisition Cash Flow		2,913,901			176,438			3,090,339
Insurance Claims and Service Expenses		13,817,069			1,265,596			15,082,665
Estimated Present Value of Future Cash Inflows		(19,280,168	)		(1,407,555	)		(20,687,723	)
Risk Adjustment for Non-Financial Risks		302,613			13,019			315,632
Contractual service margin		2,246,585			—			2,246,585

Effect on financial statements of initial recognition of contracts	￦	—		￦	47,498		￦	47,498

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38.5.2 Reinsurance contract


(In millions of Korean won)	2024
	Purchased contract
	Net cost contract			Net gain contract			Total
Estimated Present Value of Future Cash Inflows	￦	72,931		￦	977,258		￦	1,050,189
Estimated Present Value of Future Cash Outflows		(76,259	)		(963,017	)		(1,039,276	)
Risk Adjustment for Non-Financial Risks		831			13,794			14,625
Contractual service margin		2,510			(28,035	)		(25,525	)

Effect on financial statements of initial recognition of contracts	￦	13		￦	—		￦	13


(In millions of Korean won)	2025
	Purchased contract
	Net cost contract			Net gain contract			Total
Estimated Present Value of Future Cash Inflows	￦	84,259		￦	160,674		￦	244,933
Estimated Present Value of Future Cash Outflows		(89,008	)		(159,187	)		(248,195	)
Risk Adjustment for Non-Financial Risks		1,031			415			1,446
Contractual service margin		3,719			(1,902	)		1,817

Effect on financial statements of initial recognition of contracts	￦	1		￦	—		￦	1

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38.6 The annual expected amortization schedule of contractual service margin of insurance contracts and reinsurance contracts not applying the premium allocation approach as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
		December 31, 2024
		Less than a year			1 ~ 2 years			2 ~ 3 years			3 ~ 4 years			4 ~ 5 years			5 ~ 10 years			10 ~ 20 years			20 ~ 30 years			Over 30 years
Insurance contract issued
Life insurance	Death	￦	146,413		￦	137,161		￦	130,082		￦	123,783		￦	117,286		￦	518,904		￦	800,072		￦	621,889		￦	606,390
	Health		10,289			9,391			8,712			8,140			7,620			31,118			34,523			22,563			40,050
	Pension		34,533			30,178			26,981			24,871			22,681			91,418			151,649			105,300			61,326
	Variables		61,000			57,634			54,830			52,244			50,011			216,644			295,763			221,994			210,052
Non-life insurance			484,976			433,328			381,336			339,983			309,393			1,274,043			1,908,588			1,333,457			2,355,379

Total insurance contract issued		￦	737,211		￦	667,692		￦	601,941		￦	549,021		￦	506,991		￦	2,132,127		￦	3,190,595		￦	2,305,203		￦	3,273,197

Reinsurance contract held
Life insurance	Death	￦	1,032		￦	902		￦	798		￦	721		￦	652		￦	2,243		￦	1,653		￦	1,200		￦	938
	Health		(40	)		(41	)		(53	)		(77	)		(88	)		(885	)		(1,784	)		(1,556	)		(2,975	)
	Compound		172			128			99			78			67			176			192			147			142
Non-life insurance			(2,468	)		(1,566	)		(1,051	)		(733	)		(486	)		36			4,797			6,300			(4,328	)

Total reinsurance contract held		￦	(1,304	)	￦	(577	)	￦	(207	)	￦	(11	)	￦	145		￦	1,570		￦	4,858		￦	6,091		￦	(6,223	)

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(In millions of Korean won)
		December 31, 2025
		Less than a year		1 ~ 2 years		2 ~ 3 years		3 ~ 4 years		4 ~ 5 years		5 ~ 10 years		10 ~ 20 years		20 ~ 30 years			Over 30 years
Insurance contract issued
Life insurance	Death	￦	158,730	￦	149,105	￦	139,319	￦	130,427	￦	122,533	￦	540,433	￦	798,331	￦	585,870		￦	554,980
	Health		14,201		12,880		11,685		10,718		9,943		41,004		51,708		33,447			52,926
	Pension		33,175		29,721		27,308		25,543		23,823		101,677		142,020		76,865			41,723
	Variables		119,074		108,646		99,977		91,733		84,054		325,701		343,954		162,174			75,489
Non-life insurance			501,947		442,544		383,223		341,588		305,996		1,249,910		1,880,938		1,420,549			2,758,338

Total insurance contract issued		￦	827,127	￦	742,896	￦	661,512	￦	600,009	￦	546,349	￦	2,258,725	￦	3,216,951	￦	2,278,905		￦	3,483,456

Reinsurance contract held
Life insurance	Death	￦	1,435	￦	1,288	￦	1,178	￦	1,092	￦	959	￦	3,741	￦	4,461	￦	2,878		￦	2,685
	Health		560		455		369		291		232		704		449		(170	)		(1,658	)
	Compound		1,183		1,028		910		835		779		3,297		4,395		2,805			2,764
Non-life insurance			3,709		4,109		3,858		3,422		3,209		14,421		25,276		15,889			6,713

Total reinsurance contract held		￦	6,887	￦	6,880	￦	6,315	￦	5,640	￦	5,179	￦	22,163	￦	34,581	￦	21,402		￦	10,504

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38.8 Details of other insurance finance income and expenses for the year ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2023
	Life insurance								Non-life insurance											Total
	Retirement		Variables			Others			Long-term			General and Automobile			Overseas			Others		Total
Insurance finance income (expenses)
Insurance finance income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	—	￦	(103	)	￦	(744,571	)	￦	(778,717	)	￦	(3,875	)	￦	—		￦	—	￦	(1,527,266	)
Effect of changes in discount rates and financial assumptions		—		1,121			4,100			—			—			—			—		5,221
Effect of exchange rate fluctuations		—		(2,792	)		(1,702	)		—			(5,416	)		—			—		(9,910	)
Changes in the fair value of the underlying assets of insurance contract with direct participation features		—		(547,352	)		—			—			—			—			—		(547,352	)
Other insurance finance income (expenses)		—		—			—			4,228			(686	)		(41	)		—		3,501

		—		(549,126	)		(742,173	)		(774,489	)		(9,977	)		(41	)		—		(2,075,806	)
Insurance finance income (expenses) recognized in other comprehensive income		—		(44	)		(1,296,970	)		(1,630,155	)		(2,882	)		—			—		(2,930,051	)

Total insurance finance income (expenses)	￦	—	￦	(549,170	)	￦	(2,039,143	)	￦	(2,404,644	)	￦	(12,859	)	￦	(41	)	￦	—	￦	(5,005,857	)

Reinsurance finance income (expenses)
Reinsurance finance income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	—	￦	—		￦	(1,031	)	￦	12,180		￦	2,558		￦	—		￦	—	￦	13,707
Effect of changes in discount rates and financial assumptions		—		—			—			—			—			—			—		—
Effect of exchange rate fluctuations		—		—			(8	)		—			4,297			—			—		4,289
Other reinsurance finance income (expenses)		—		—			(3	)		359			(28,312	)		(269	)		—		(28,225	)

		—		—			(1,042	)		12,539			(21,457	)		(269	)		—		(10,229	)
Reinsurance finance income (expenses) recognized in other comprehensive income		—		—			(3,311	)		39,381			1,755			—			—		37,825

Total reinsurance finance income (expenses)		—		—			(4,353	)		51,920			(19,702	)		(269	)		—		27,596

Net investment income (expenses)	￦	10,510	￦	31,750		￦	257,963		￦	(357,682	)	￦	479,700		￦	6,287		￦	154,506	￦	583,034

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38.8 Details of other insurance finance income and expenses for the year ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024
	Life insurance									Non-life insurance												Total
	Retirement			Variables			Others			Long-term			General and Automobile			Overseas			Others			Total
Investment income (expenses)
Investment income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	14,139		￦	83,095		￦	539,964		￦	580,215		￦	134,613		￦	5,803		￦	(21,354	)	￦	1,336,475
Dividend income		—			21,037			13,172			11,667			13,028			8			5,518			64,430
Gains (losses) on valuation and disposal of securities		6,317			136,200			(72,391	)		(48,289	)		(15,083	)		(409	)		1,228			7,573
Gains (losses) on valuation and disposal of loans and receivables		—			—			—			5,183			(3,644	)		—			(758	)		781
Gains (losses) on derivatives		(5,464	)		(47,360	)		(192,899	)		(255,227	)		(249,021	)		—			—			(749,971	)
Gains (losses) on investments in subsidiaries		—			—			(259	)		(704	)		—			—			—			(963	)
Foreign exchange gains (losses)		4,821			113,507			213,545			242,021			215,968			168			—			790,030
Other investment income (expenses)		(25,554	)		35,326			90,607			(74,543	)		306,342			(877	)		14,930			346,231

		(5,741	)		341,805			591,739			460,323			402,203			4,693			(436	)		1,794,586
Investment income (expenses) recognized in other comprehensive income		8,747			—			937,243			715,023			32,901			219			69,601			1,763,734

Total investment income (expenses)	￦	3,006		￦	341,805		￦	1,528,982		￦	1,175,346		￦	435,104		￦	4,912		￦	69,165		￦	3,558,320

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38.8 Details of other insurance finance income and expenses for the year ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024
	Life insurance								Non-life insurance											Total
	Retirement		Variables			Others			Long-term			General and Automobile			Overseas			Others		Total
Insurance finance income (expenses)
Insurance finance income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	—	￦	(895	)	￦	(741,055	)	￦	(715,762	)	￦	(3,806	)	￦	—		￦	—	￦	(1,461,518	)
Effect of changes in discount rates and financial assumptions		—		—			(616	)		—			—			—			—		(616	)
Effect of exchange rate fluctuations		—		(15,470	)		(35,568	)		—			(50,526	)		—			—		(101,564	)
Changes in the fair value of the underlying assets of insurance contract with direct participation features		—		(329,336	)		—			—			—			—			—		(329,336	)
Other insurance finance income (expenses)		—		—			—			7,754			(1,410	)		(426	)		—		5,918

		—		(345,701	)		(777,239	)		(708,008	)		(55,742	)		(426	)		—		(1,887,116	)
Insurance finance income (expenses) recognized in other comprehensive income		—		(138	)		(2,091,444	)		(2,244,510	)		(9,932	)		—			—		(4,346,024	)

Total insurance finance income (expenses)	￦	—	￦	(345,839	)	￦	(2,868,683	)	￦	(2,952,518	)	￦	(65,674	)	￦	(426	)	￦	—	￦	(6,233,140	)

Reinsurance finance income (expenses)
Reinsurance finance income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	—	￦	—		￦	(1,020	)	￦	14,269		￦	1,829		￦	—		￦	—	￦	15,078
Effect of changes in discount rates and financial assumptions		—		—			(13	)		—			—			—			—		(13	)
Effect of exchange rate fluctuations		—		—			(112	)		—			49,186			—			—		49,074
Other reinsurance finance income (expenses)		—		—			7			(5,017	)		(55,516	)		62			—		(60,464	)

		—		—			(1,138	)		9,252			(4,501	)		62			—		3,675
Reinsurance finance income (expenses) recognized in other comprehensive income		—		—			(5,201	)		30,943			3,038			—			—		28,780

Total reinsurance finance income (expenses)		—		—			(6,339	)		40,195			(1,463	)		62			—		32,455

Net investment income (expenses)	￦	3,006	￦	(4,034	)	￦	(1,346,040	)	￦	(1,736,977	)	￦	367,967		￦	4,548		￦	69,165	￦	(2,642,365	)

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38.8 Details of other insurance finance income and expenses for the year ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Life insurance									Non-life insurance												Total
	Retirement			Variables			Others			Long-term			General and Automobile			Overseas			Others			Total
Investment income (expenses)
Investment income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	15,331		￦	87,328		￦	587,402		￦	620,114		￦	142,230		￦	6,446		￦	(45,133	)	￦	1,413,718
Dividend income		714			21,847			20,086			13,925			17,078			4			28,624			102,278
Gains (losses) on valuation and disposal of securities		(18	)		940,264			(87,331	)		49,149			80,980			613			27,666			1,011,323
Gains (losses) on valuation and disposal of loans and receivables		—			—			—			(24,107	)		11,010			(1,224	)		(4,020	)		(18,341	)
Gains (losses) on derivatives		(652	)		11,554			(26,148	)		(31,136	)		(6,347	)		—			(14,096	)		(66,825	)
Gains (losses) on investments in subsidiaries		—			—			(146	)		(799	)		—			—			28			(917	)
Foreign exchange gains (losses)		(397	)		(17,970	)		(16,026	)		(3,940	)		(28,299	)		177			11,279			(55,176	)
Other investment income (expenses)		(20,768	)		38,984			94,958			(76,557	)		343,252			(689	)		(5,020	)		374,160

		(5,790	)		1,082,007			572,795			546,649			559,904			5,327			(672	)		2,760,220
Investment income (expenses) recognized in other comprehensive income		(4,884	)		—			(1,116,525	)		(1,577,881	)		(40,451	)		1,220			(7,286	)		(2,745,807	)

Total investment income (expenses)	￦	(10,674	)	￦	1,082,007		￦	(543,730	)	￦	(1,031,232	)	￦	519,453		￦	6,547		￦	(7,958	)	￦	14,413

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38.8 Details of other insurance finance income and expenses for the year ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Life insurance									Non-life insurance											Total
	Retirement			Variables			Others			Long-term			General and Automobile			Overseas		Others			Total

Insurance finance income (expenses)
Insurance finance income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	—		￦	(686	)	￦	(763,412	)	￦	(695,925	)	￦	(29,294	)	￦	—	￦	—		￦	(1,489,317	)
Effect of changes in discount rates and financial assumptions		—			—			1,097			—			—			—		—			1,097
Effect of exchange rate fluctuations		—			1,907			5,882			—			3,994			—		—			11,783
Changes in the fair value of the underlying assets of insurance contract with direct participation features		—			(1,081,894	)		—			—			—			—		—			(1,081,894	)
Other insurance finance income (expenses)		—			—			—			2,002			(201	)		359		—			2,160

		—			(1,080,673	)		(756,433	)		(693,923	)		(25,501	)		359		—			(2,556,171	)
Insurance finance income (expenses) recognized in other comprehensive income		—			(40	)		888,129			743,062			3,536			—		—			1,634,687

Total insurance finance income (expenses)	￦	—		￦	(1,080,713	)	￦	131,696		￦	49,139		￦	(21,965	)	￦	359	￦	—		￦	(921,484	)

Reinsurance finance income (expenses)
Reinsurance finance income (expenses) recognized in profit or loss:
Net Interest Income (expense)	￦	—		￦	—		￦	(1,036	)	￦	15,597		￦	7,473		￦	—	￦	—		￦	22,034
Effect of changes in discount rates and financial assumptions		—			—			(1	)		—			—			—		—			(1	)
Effect of exchange rate fluctuations		—			—			11			—			(5,556	)		—		—			(5,545	)
Other reinsurance finance income (expenses)		—			—			(6	)		4,038			41,430			217		—			45,679

		—			—			(1,032	)		19,635			43,347			217		—			62,167
Reinsurance finance income (expenses) recognized in other comprehensive income		—			—			9,876			(11,758	)		1,435			—		—			(447	)

Total reinsurance finance income (expenses)		—			—			8,844			7,877			44,782			217		—			61,720

Net investment income (expenses)	￦	(10,674	)	￦	1,294		￦	(403,190	)	￦	(974,216	)	￦	542,270		￦	7,123	￦	(7,958	)	￦	(845,351	)

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38.9 Insurance income and changes in contractual service margin of insurance contracts not applying the premium allocation approach by transition approaches for the year ended December 31, 2024 and 2025, are as follows:

38.9.1 Insurance contract


(In millions of Korean won)	2024
	Contracts applying the fair value approach			All other contracts			Total
Insurance income	￦	2,765,232		￦	4,006,417		￦	6,771,649

Beginning contractual service margin		2,833,819			11,024,603			13,858,422
Current period service related changes
Profit or loss recognized related to service provided		(201,832	)		(1,077,426	)		(1,279,258	)
Future service related changes
Changes in estimations adjusting contractual service margin		322,158			(1,859,892	)		(1,537,734	)
Effect of new contracts		—			2,433,624			2,433,624

Insurance service result		120,326			(503,694	)		(383,368	)
Insurance finance income and expenses		87,773			401,151			488,924

Ending contractual service margin	￦	3,041,918		￦	10,922,060		￦	13,963,978


(In millions of Korean won)	2025
	Contracts applying the fair value approach			All other contracts			Total
Insurance income	￦	2,801,298		￦	4,534,074		￦	7,335,372

Beginning contractual service margin		3,041,918			10,922,060			13,963,978
Current period service related changes
Profit or loss recognized related to service provided		(226,119	)		(1,078,886	)		(1,305,005	)
Future service related changes
Changes in estimations adjusting contractual service margin		86,091			(835,624	)		(749,533	)
Effect of new contracts		—			2,246,585			2,246,585

Insurance service result		(140,028	)		332,075			192,047
Insurance finance income and expenses		100,410			359,495			459,905

Ending contractual service margin	￦	3,002,300		￦	11,613,630		￦	14,615,930

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38.9.2 Reinsurance contract


(In millions of Korean won)	2024
	Contracts applying the fair value approach			All other contracts			Total
Allocation of Reinsurance Premiums	￦	(70,095	)	￦	(148,358	)	￦	(218,453	)

Beginning contractual service margin		182,636			(178,416	)		4,220
Current period service related changes
Profit or loss recognized related to service received		(15,284	)		15,575			291
Future service related changes
Changes in estimations adjusting contractual service margin		(3,191	)		27,787			24,596
Effect of new contracts		—			(25,525	)		(25,525	)

Reinsurance service result		(18,475	)		17,837			(638	)
Reinsurance finance income and expenses		5,813			(5,053	)		760

Ending contractual service margin	￦	169,974		￦	(165,632	)	￦	4,342


(In millions of Korean won)	2025
	Contracts applying the fair value approach			All other contracts			Total
Allocation of Reinsurance Premiums	￦	(55,816	)	￦	(142,512	)	￦	(198,328	)

Beginning contractual service margin		169,974			(165,632	)		4,342
Current period service related changes
Profit or loss recognized related to service received		(17,244	)		8,004			(9,240	)
Future service related changes
Changes in estimations adjusting contractual service margin		21,113			99,203			120,316
Effect of new contracts		—			1,817			1,817

Reinsurance service result		3,869			109,024			112,893
Reinsurance finance income and expenses		5,823			(3,507	)		2,316

Ending contractual service margin	￦	179,666		￦	(60,115	)	￦	119,551

38.10 Changes in other comprehensive income of financial instruments related to insurance contract groups that applied the modified retrospective approach or the fair value approach at the transition date

Changes in other comprehensive income of financial instruments related to insurance contract groups for the year ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024			2025
Beginning	￦	(545,629	)	￦	(424,129	)
Changes due to fair value measurement		153,390			(274,199	)
Changes due to reclassification to profit or loss		11,691			15,311
Income tax effect		(43,581	)		77,533

Ending	￦	(424,129	)	￦	(605,484	)

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38.11 Risk Management of KB Insurance Co., Ltd.

38.11.1 Overview of insurance risk

Insurance risk is the risk that arises from a primary operation of insurance companies that is associated with underwriting of insurance contracts and payment of claims, which has the risk of greater loss incurring than anticipated by the Group. The Group manages insurance risk in different categories of long-term insurance, general insurance, and automobile insurance.

38.11.1.1 Key items of Long-term insurance


Mortality Risk		Risk of unexpected losses due to premature death compared to the insured’s expectations.

Longevity Risk		Risk of unexpected losses due to delayed death compared to the insured’s expectations.

Disability/Illness Risk		Risk of unexpected losses related to the insured’s disability and illness.

Long-term Property/Other Risks		Risk of unexpected losses related to property, expenses, indemnities, and other collateral in long-term insurance.

Termination Risk		Risk of losses due to unexpected exercise of legal rights or contractual options by policyholders.

Expense Risk		Risk of losses due to fluctuations in future costs and expenditure variations caused by inflation in relation to insurance contract costs.

Catastrophic Risk		Risk of extreme, exceptional losses (e.g., epidemics, major accidents) not considered in mortality risk, etc.

38.11.1.2 Key items of general and automobile insurance


Price Risk		Risk of losses exceeding the expected mortality rate and expense ratio calculated when determining insurance premiums.

Reserve Risk		Risk of being unable to cover future insurance payments reserved for incurred but not reported insurance accidents.

Catastrophic Risk		Risk of losses due to extreme, exceptional risks not considered in insurance price risk and reserve risk.

38.11.2 Purposes, policies, and procedures to manage risk arising from insurance contracts

The risks associated with insurance contracts that the Group faces are insurance actuarial risk and underwriting risk. Each risk occurs due to insurance contract’s pricing and conditions of underwriting. In order to minimize the possibility of acquiring a bad contract, the Group has established and operated detailed underwriting guidelines and underwriting procedures by insurance type that specify detailed underwriting conditions according to the type of risk covered through

pre-analysis

of insured property. In addition, the Group is making efforts to reduce insurance actuarial risk by

follow-up

measures such as adjustments of premium rate, changes of sales conditions, termination of selling specific product, development of new product, and others

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38.11.2 Purposes, policies, and procedures to manage risk arising from insurance contracts (cont’d)

through comparing and analyzing the expected risk level at the date of pricing and actual risk level after the acceptance. The Group has prepared a process to minimize management risk other than insurance actuarial risk and underwriting risk by operating a committee that shares opinions on underwriting policies and premium rate policies and decides important matters.

In addition, by establishing a reinsurance operating strategy according to the reinsurance operating standards, the Group is preparing for the possibility of incurring high claim expenses at once due to unexpected catastrophic accidents while maintaining an appropriate holding level considering the solvency of the Group. The Group supports the protection and stable interests of policyholders, and comprehensively manages risks to maximize corporate value in the mid to long term.

38.11.3 Concentration of insurance risk

The Group is selling various insurance contracts such as general

non-life

insurances (fire, maritime, injury, technology, liability, package, title, guarantee, and other special type insurances), automobile insurances (for private use, for business use, for commercial use, bicycle, and others), long-term insurances (long-term

non-life,

property damage, injury, driver, savings, illness, nursing, and pension), and others. The Group’s risk is distributed through reinsurance, joint acceptance, and sales of diversified insurance products. In addition, insurances such as storm and flood insurance, which have a very low probability of occurrence but cover severe levels of risk, are controlled through acceptance limit and joint acquisition. The Group classifies concentration of insurance risk by type of insurance product and region.

38.11.3.1 Before reinsurance mitigation


(In millions of Korean won)	December 31, 2024
	Domestic			United States		China		Others
General insurance
Fire	￦	14,775		￦	—	￦	—	￦	—
Maritime		41,674			—		—		—
Others		1,282,134			105,543		63,516		40,830
Long-term insurance
Injury, illness, and property		17,963,247			—		—		—
Pension		4,873,238			—		—		—
Others		(263,714	)		—		—		—
Automobile insurance		2,145,366			—		—		—

Total	￦	26,056,720		￦	105,543	￦	63,516	￦	40,830


(In millions of Korean won)	December 31, 2025
	Domestic			United States		China		Others
General insurance
Fire	￦	8,334		￦	—	￦	—	￦	—
Maritime		91,946			—		—		—
Others		1,417,768			72,462		30,581		32,141
Long-term insurance
Injury, illness, and property		17,918,617			—		—		—
Pension		4,527,963			—		—		—
Others		(258,534	)		—		—		—
Automobile insurance		2,155,573			—		—		—

Total	￦	25,861,667		￦	72,462	￦	30,581	￦	32,141

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38.11.3.2 After reinsurance mitigation


(In millions of Korean won)	December 31, 2024
	Domestic			United States		China		Others
General insurance
Fire	￦	18,764		￦	—	￦	—	￦	—
Maritime		25,310			—		—		—
Others		486,222			2,854		25,842		16,845
Long-term insurance
Injury, illness, and property		17,471,358			—		—		—
Pension		4,873,238			—		—		—
Others		(263,754	)		—		—		—
Automobile insurance		2,138,413			—		—		—

Total	￦	24,749,551		￦	2,854	￦	25,842	￦	16,845


(In millions of Korean won)	December 31, 2025
	Domestic			United States		China		Others
General insurance
Fire	￦	12,202		￦	—	￦	—	￦	—
Maritime		22,594			—		—		—
Others		556,148			7,453		19,868		11,540
Long-term insurance
Injury, illness, and property		17,467,245			—		—		—
Pension		4,527,963			—		—		—
Others		(258,540	)		—		—		—
Automobile insurance		2,149,796			—		—		—

Total	￦	24,477,408		￦	7,453	￦	19,868	￦	11,540

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38.11.4 Claims development tables

The Group verifies and evaluates the adequacy of reserve for outstanding claims for general, automobile, and long-term insurance with methods such as paid loss development trend and incurred loss development trend. If the individually estimated claims are insufficient, the Group recognizes additional reserves. Claims development tables as of December 31, 2024 and 2025, are as follows:

38.11.4.1 Claims development tables as of December 31, 2024

38.11.4.1.1 Before reinsurance mitigation

General Insurance


(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	￦	559,484		￦	839,279		￦	926,787		￦	918,732		￦	984,418		￦	814,504		￦	—
2 years		567,735			1,035,332			923,424			846,577			902,960			—			—
3 years		592,403			954,050			834,723			826,232			—			—			—
4 years		598,698			970,065			863,696			—			—			—			—
5 years		587,100			985,358			—			—			—			—			—
6 years		596,022			—			—			—			—			—			—

Estimated final loss	￦	596,022		￦	985,358		￦	863,696		￦	826,232		￦	902,960		￦	814,504		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(566,989	)	￦	(926,208	)	￦	(736,614	)	￦	(734,104	)	￦	(661,452	)	￦	(401,239	)	￦	—
Difference between estimated final loss and claim payments		29,033			59,150			127,082			92,128			241,508			413,265			962,166
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			35,214
Incurred claims over 6 years ago		—			—			—			—			—			—			55,738
Incurred claims settled but not yet paid		—			—			—			—			—			—			(59,440	)
Discount rate effect		—			—			—			—			—			—			(50,183	)
Risk adjustment		—			—			—			—			—			—			66,819
Others		—			—			—			—			—			—			160,175

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	1,170,489

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38.11.4.1.1 Before reinsurance mitigation (cont’d)

Automobile Insurance


(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	￦	1,626,553		￦	1,639,258		￦	1,758,406		￦	1,853,766		￦	1,958,153		￦	2,103,927		￦	—
2 years		1,639,692			1,645,744			1,766,713			1,865,422			1,985,790			—			—
3 years		1,645,194			1,642,418			1,754,773			1,850,203			—			—			—
4 years		1,648,516			1,633,491			1,746,422			—			—			—			—
5 years		1,642,245			1,627,590			—			—			—			—			—
6 years		1,635,591			—			—			—			—			—			—

Estimated final loss	￦	1,635,591		￦	1,627,590		￦	1,746,422		￦	1,850,203		￦	1,985,790		￦	2,103,927		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(1,625,412	)	￦	(1,612,431	)	￦	(1,725,037	)	￦	(1,815,770	)	￦	(1,929,233	)	￦	(1,785,195	)	￦	—
Difference between estimated final loss and claim payments		10,179			15,159			21,385			34,433			56,557			318,732			456,445
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			17,293
Incurred claims over 6 years ago		—			—			—			—			—			—			30,525
Incurred claims settled but not yet paid		—			—			—			—			—			—			40,596
Discount rate effect		—			—			—			—			—			—			(25,779	)
Risk adjustment		—			—			—			—			—			—			23,493
Others		—			—			—			—			—			—			5,506

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	548,079

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38.11.4.1.1 Before reinsurance mitigation (cont’d)

Long-term Insurance


(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	￦	2,314,936		￦	2,593,514		￦	3,003,522		￦	3,159,835		￦	3,485,979		￦	3,865,301		￦	—
2 years		2,322,571			2,551,274			2,965,954			3,180,537			3,481,470			—			—
3 years		2,332,331			2,554,205			2,972,948			3,176,257			—			—			—
4 years		2,339,839			2,557,951			2,960,640			—			—			—			—
5 years		2,339,712			2,535,147			—			—			—			—			—
6 years		2,331,162			—			—			—			—			—			—

Estimated final loss	￦	2,331,162		￦	2,535,147		￦	2,960,640		￦	3,176,257		￦	3,481,470		￦	3,865,301		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(2,323,338	)	￦	(2,521,506	)	￦	(2,934,570	)	￦	(3,112,639	)	￦	(3,315,239	)	￦	(2,753,646	)	￦	—
Difference between estimated final loss and claim payments		7,824			13,641			26,070			63,618			166,231			1,111,655			1,389,039
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			58,757
Incurred claims over 6 years ago		—			—			—			—			—			—			10,042
Incurred claims settled but not yet paid		—			—			—			—			—			—			488,491
Discount rate effect		—			—			—			—			—			—			(34,095	)
Risk adjustment		—			—			—			—			—			—			25,696
Others		—			—			—			—			—			—			73

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	1,938,003

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38.11.4.1.2 After reinsurance mitigation

General Insurance


(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	￦	304,171		￦	332,137		￦	463,207		￦	512,812		￦	501,574		￦	534,363		￦	—
2 years		308,785			344,149			449,737			499,457			486,350			—			—
3 years		316,601			343,707			447,047			494,871			—			—			—
4 years		321,173			347,312			446,223			—			—			—			—
5 years		320,026			348,238			—			—			—			—			—
6 years		322,928			—			—			—			—			—			—

Estimated final loss	￦	322,928		￦	348,238		￦	446,223		￦	494,871		￦	486,350		￦	534,363		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(314,636	)	￦	(329,592	)	￦	(408,592	)	￦	(440,061	)	￦	(381,368	)	￦	(271,173	)	￦	—
Difference between estimated final loss and claim payments		8,292			18,646			37,631			54,810			104,982			263,190			487,551
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			26,568
Incurred claims over 6 years ago		—			—			—			—			—			—			25,963
Incurred claims settled but not yet paid		—			—			—			—			—			—			(265,804	)
Discount rate effect		—			—			—			—			—			—			(20,346	)
Risk adjustment		—			—			—			—			—			—			30,498
Others		—			—			—			—			—			—			3,587

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	288,017

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38.11.4.1.2 After reinsurance mitigation (cont’d)

Automobile Insurance


(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	￦	1,581,086		￦	1,615,387		￦	1,745,376		￦	1,849,405		￦	1,958,153		￦	2,103,927		￦	—
2 years		1,594,400			1,621,647			1,753,171			1,861,151			1,985,790			—			—
3 years		1,599,550			1,618,230			1,741,566			1,845,928			—			—			—
4 years		1,602,565			1,609,312			1,733,214			—			—			—			—
5 years		1,596,518			1,603,558			—			—			—			—			—
6 years		1,590,109			—			—			—			—			—			—

Estimated final loss	￦	1,590,109		￦	1,603,558		￦	1,733,214		￦	1,845,928		￦	1,985,790		￦	2,103,927		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(1,580,312	)	￦	(1,588,824	)	￦	(1,712,162	)	￦	(1,811,664	)	￦	(1,929,233	)	￦	(1,785,195	)	￦	—
Difference between estimated final loss and claim payments		9,797			14,734			21,052			34,264			56,557			318,732			455,136
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			17,243
Incurred claims over 6 years ago		—			—			—			—			—			—			28,972
Incurred claims settled but not yet paid		—			—			—			—			—			—			40,422
Discount rate effect		—			—			—			—			—			—			(25,708	)
Risk adjustment		—			—			—			—			—			—			23,493
Others		—			—			—			—			—			—			695

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	540,253

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38.11.4.1.2 After reinsurance mitigation (cont’d)

Long-term Insurance


(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	￦	1,947,243		￦	2,171,401		￦	2,514,713		￦	2,664,628		￦	2,932,961		￦	3,270,270		￦	—
2 years		1,954,658			2,138,663			2,492,911			2,691,880			2,940,423			—			—
3 years		1,963,266			2,141,754			2,499,670			2,688,097			—			—			—
4 years		1,970,030			2,145,240			2,487,607			—			—			—			—
5 years		1,970,227			2,122,645			—			—			—			—			—
6 years		1,961,657			—			—			—			—			—			—

Estimated final loss	￦	1,961,657		￦	2,122,645		￦	2,487,607		￦	2,688,097		￦	2,940,423		￦	3,270,270		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(1,954,871	)	￦	(2,110,823	)	￦	(2,464,887	)	￦	(2,633,216	)	￦	(2,796,696	)	￦	(2,315,921	)	￦	—
Difference between estimated final loss and claim payments		6,786			11,822			22,720			54,881			143,727			954,349			1,194,285
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			51,640
Incurred claims over 6 years ago		—			—			—			—			—			—			8,799
Incurred claims settled but not yet paid		—			—			—			—			—			—			324,142
Discount rate effect		—			—			—			—			—			—			(29,354	)
Risk adjustment		—			—			—			—			—			—			22,645
Others		—			—			—			—			—			—			(1,997	)

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	1,570,160

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38.11.4.2 Claims development tables as of December 31, 2025

38.11.4.2.1 Before reinsurance mitigation

General Insurance


(In millions of Korean won)	Accident year
	2020			2021			2022			2023			2024			2025			Total
Estimated final loss undiscounted
Development year
1 year	￦	839,279		￦	926,787		￦	918,732		￦	984,418		￦	814,504		￦	927,454		￦	—
2 years		1,035,332			923,424			846,577			902,960			909,283			—			—
3 years		954,050			834,723			826,232			896,256			—			—			—
4 years		970,065			863,696			839,935			—			—			—			—
5 years		985,358			867,635			—			—			—			—			—
6 years		1,007,378			—			—			—			—			—			—

Estimated final loss	￦	1,007,378		￦	867,635		￦	839,935		￦	896,256		￦	909,283		￦	927,454		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(963,631	)	￦	(814,162	)	￦	(775,120	)	￦	(751,912	)	￦	(693,101	)	￦	(378,737	)	￦	—
Difference between estimated final loss and claim payments		43,747			53,473			64,815			144,344			216,182			548,717			1,071,278
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			39,308
Incurred claims over 6 years ago		—			—			—			—			—			—			58,712
Incurred claims settled but not yet paid		—			—			—			—			—			—			(66,572	)
Discount rate effect		—			—			—			—			—			—			(28,446	)
Risk adjustment		—			—			—			—			—			—			45,098
Others		—			—			—			—			—			—			124,073

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	1,243,451

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38.11.4.2.1 Before reinsurance mitigation (cont’d)

Automobile Insurance


(In millions of Korean won)	Accident year
	2020			2021			2022			2023			2024			2025			Total
Estimated final loss undiscounted
Development year
1 year	￦	1,639,258		￦	1,758,406		￦	1,853,766		￦	1,958,153		￦	2,103,927		￦	2,182,754		￦	—
2 years		1,645,744			1,766,713			1,865,422			1,985,790			2,127,236			—			—
3 years		1,642,418			1,754,773			1,850,203			1,977,756			—			—			—
4 years		1,633,491			1,746,422			1,845,598			—			—			—			—
5 years		1,627,590			1,742,751			—			—			—			—			—
6 years		1,623,593			—			—			—			—			—			—

Estimated final loss	￦	1,623,593		￦	1,742,751		￦	1,845,598		￦	1,977,756		￦	2,127,236		￦	2,182,754		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(1,617,927	)	￦	(1,732,847	)	￦	(1,831,284	)	￦	(1,952,674	)	￦	(2,079,289	)	￦	(1,866,676	)	￦	—
Difference between estimated final loss and claim payments		5,666			9,904			14,314			25,082			47,947			316,078			418,991
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			15,259
Incurred claims over 6 years ago		—			—			—			—			—			—			21,860
Incurred claims settled but not yet paid		—			—			—			—			—			—			31,314
Discount rate effect		—			—			—			—			—			—			(14,944	)
Risk adjustment		—			—			—			—			—			—			24,572
Others		—			—			—			—			—			—			4,505

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	501,557

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38.11.4.2.1 Before reinsurance mitigation (cont’d)

Long-term Insurance


(In millions of Korean won)	Accident year
	2020			2021			2022			2023			2024			2025			Total
Estimated final loss undiscounted
Development year
1 year	￦	2,593,514		￦	3,003,522		￦	3,159,835		￦	3,485,979		￦	3,865,301		￦	4,503,006		￦	—
2 years		2,551,274			2,965,954			3,180,537			3,481,470			3,835,808			—			—
3 years		2,554,205			2,972,948			3,176,257			3,488,177			—			—			—
4 years		2,557,951			2,960,640			3,178,678			—			—			—			—
5 years		2,535,147			2,960,038			—			—			—			—			—
6 years		2,535,669			—			—			—			—			—			—

Estimated final loss	￦	2,535,669		￦	2,960,038		￦	3,178,678		￦	3,488,177		￦	3,835,808		￦	4,503,006		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(2,526,965	)	￦	(2,944,643	)	￦	(3,149,494	)	￦	(3,417,292	)	￦	(3,649,865	)	￦	(3,234,395	)	￦	—
Difference between estimated final loss and claim payments		8,704			15,395			29,184			70,885			185,943			1,268,611			1,578,722
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			69,297
Incurred claims over 6 years ago		—			—			—			—			—			—			10,099
Incurred claims settled but not yet paid		—			—			—			—			—			—			537,786
Discount rate effect		—			—			—			—			—			—			(37,695	)
Risk adjustment		—			—			—			—			—			—			28,691
Others		—			—			—			—			—			—			—

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	2,186,900

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38.11.4.2.2 After reinsurance mitigation

General Insurance


(In millions of Korean won)	Accident year
	2020			2021			2022			2023			2024			2025			Total
Estimated final loss undiscounted
Development year
1 year	￦	332,137		￦	463,207		￦	512,812		￦	501,574		￦	534,363		￦	556,028		￦	—
2 years		344,149			449,737			499,457			486,350			540,022			—			—
3 years		343,707			447,047			494,871			480,219			—			—			—
4 years		347,312			446,223			498,015			—			—			—			—
5 years		348,238			447,169			—			—			—			—			—
6 years		354,598			—			—			—			—			—			—

Estimated final loss	￦	354,598		￦	447,169		￦	498,015		￦	480,219		￦	540,022		￦	556,028		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(338,885	)	￦	(419,344	)	￦	(464,227	)	￦	(423,533	)	￦	(449,958	)	￦	(276,214	)	￦	—
Difference between estimated final loss and claim payments		15,713			27,825			33,788			56,686			90,064			279,814			503,890
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			28,596
Incurred claims over 6 years ago		—			—			—			—			—			—			29,923
Incurred claims settled but not yet paid		—			—			—			—			—			—			(263,096	)
Discount rate effect		—			—			—			—			—			—			(13,310	)
Risk adjustment		—			—			—			—			—			—			22,407
Others		—			—			—			—			—			—			7,165

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	315,575

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38.11.4.2.2 After reinsurance mitigation (cont’d)

Automobile Insurance


(In millions of Korean won)	Accident year
	2020			2021			2022			2023			2024			2025			Total
Estimated final loss undiscounted
Development year
1 year	￦	1,615,387		￦	1,745,376		￦	1,849,405		￦	1,958,153		￦	2,103,927		￦	2,182,754		￦	—
2 years		1,621,647			1,753,171			1,861,151			1,985,790			2,127,236			—			—
3 years		1,618,230			1,741,566			1,845,928			1,977,756			—			—			—
4 years		1,609,312			1,733,214			1,841,338			—			—			—			—
5 years		1,603,558			1,729,529			—			—			—			—			—
6 years		1,599,515			—			—			—			—			—			—

Estimated final loss	￦	1,599,515		￦	1,729,529		￦	1,841,338		￦	1,977,756		￦	2,127,236		￦	2,182,754		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(1,594,113	)	￦	(1,719,867	)	￦	(1,827,127	)	￦	(1,952,674	)	￦	(2,079,289	)	￦	(1,866,676	)	￦	—
Difference between estimated final loss and claim payments		5,402			9,662			14,211			25,082			47,947			316,078			418,382
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			15,259
Incurred claims over 6 years ago		—			—			—			—			—			—			20,874
Incurred claims settled but not yet paid		—			—			—			—			—			—			28,580
Discount rate effect		—			—			—			—			—			—			(15,162	)
Risk adjustment		—			—			—			—			—			—			24,572
Others		—			—			—			—			—			—			2,626

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	495,131

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38.11.4.2.2 After reinsurance mitigation (cont’d)

Long-term Insurance


(In millions of Korean won)	Accident year
	2020			2021			2022			2023			2024			2025			Total
Estimated final loss undiscounted
Development year
1 year	￦	2,171,401		￦	2,514,713		￦	2,664,628		￦	2,932,961		￦	3,270,270		￦	3,816,401		￦	—
2 years		2,138,663			2,492,911			2,691,880			2,940,423			3,234,653			—			—
3 years		2,141,754			2,499,670			2,688,097			2,944,644			—			—			—
4 years		2,145,240			2,487,607			2,690,195			—			—			—			—
5 years		2,122,645			2,486,817			—			—			—			—			—
6 years		2,123,030			—			—			—			—			—			—

Estimated final loss	￦	2,123,030		￦	2,486,817		￦	2,690,195		￦	2,944,644		￦	3,234,653		￦	3,816,401		￦	—

Gross cumulative claim payments
Total gross cumulative claim payments	￦	(2,115,384	)	￦	(2,473,284	)	￦	(2,664,876	)	￦	(2,883,076	)	￦	(3,073,128	)	￦	(2,727,365	)	￦	—
Difference between estimated final loss and claim payments		7,646			13,533			25,319			61,568			161,525			1,089,036			1,358,627
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			61,019
Incurred claims over 6 years ago		—			—			—			—			—			—			8,923
Incurred claims settled but not yet paid		—			—			—			—			—			—			295,267
Discount rate effect		—			—			—			—			—			—			(32,550	)
Risk adjustment		—			—			—			—			—			—			25,260
Others		—			—			—			—			—			—			(1,074	)

Liability for incurred claims book value	￦	—		￦	—		￦	—		￦	—		￦	—		￦	—		￦	1,715,472

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38.11.5 Sensitivity analysis of insurance risk

The Group manages insurance risk by performing sensitivity analysis based on loss ratio, expense ratio, discount rate, and others which are considered to have significant influence on future cash flow, timing, and uncertainty.

Sensitivity analysis of insurance risk results of December 31, 2024 and 2025, are as follows:

38.11.5.1 Before reinsurance mitigation


(In millions of Korean won)		December 31, 2024
		Baseline amount								Variance amount												Impact on profit or equity (before tax)
	Shock level	Fulfillment Cashflow				CSM				Fulfillment Cashflow						CSM						Profit or loss						OCI
	Shock level	Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features
Mortality rate	3.27% increase	￦	3,401,945	￦	8,406,081	￦	7,540	￦	8,812,942	￦	40		￦	79,740		￦	(36	)	￦	(77,504	)	￦	(5	)	￦	(3,032	)	￦	1		￦	797
Disability/illness (fixed compensation)	3.40% increase										93			1,052,913			(86	)		(949,179	)		(8	)		(85,651	)		1			(18,083	)
Disability/illness (actual expense compensation)	2.62% increase										93			1,052,913			(86	)		(949,179	)		(8	)		(85,651	)		1			(18,083	)
Long-term property/other risks	4.19% increase										—			42,239			—			(37,387	)		—			(4,875	)		—			22
Lapse rate (increase)	9.16% increase										1,360			521,112			(1,167	)		(530,501	)		(205	)		(24,806	)		13			34,194
Lapse rate (decrease)	9.16% decrease										(1,419	)		(565,513	)		1,217			581,448			216			20,330			(14	)		(36,265	)
Expense ratio (level)	2.62% increase										698			240,775			(585	)		(221,198	)		(119	)		(16,839	)		7			(2,739	)
Expense ratio (inflation)	0.26%p increase										698			240,775			(585	)		(221,198	)		(119	)		(16,839	)		7			(2,739	)

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38.11.5.1 Before reinsurance mitigation (cont’d)


(In millions of Korean won)		December 31, 2025
		Baseline amount								Variance amount												Impact on profit or equity (before tax)
	Shock level	Fulfillment Cashflow				CSM				Fulfillment Cashflow						CSM						Profit or loss						OCI
	Shock level	Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features
Mortality rate	3.27% increase	￦	3,251,318	￦	7,458,760	￦	7,836	￦	9,277,197	￦	37		￦	76,370		￦	(32	)	￦	(77,695	)	￦	(5	)	￦	(3,105	)	￦	—		￦	4,430
Disability/illness (fixed compensation)	3.40% increase										79			1,054,906			(75	)		(986,568	)		(7	)		(85,523	)		3			17,185
Disability/illness (actual expense compensation)	2.62% increase										79			1,054,906			(75	)		(986,568	)		(7	)		(85,523	)		3			17,185
Long-term property/other risks	4.19% increase										—			48,390			—			(42,473	)		—			(6,841	)		—			924
Lapse rate (increase)	9.16% increase										1,228			581,399			(1,028	)		(587,112	)		(183	)		(34,584	)		(17	)		40,297
Lapse rate (decrease)	9.16% decrease										(1,279	)		(631,737	)		1,074			649,765			190			27,128			15			(45,155	)
Expense ratio (level)	2.62% increase										660			241,094			(566	)		(229,666	)		(122	)		(17,467	)		28			6,039
Expense ratio (inflation)	0.26%p increase										660			241,094			(566	)		(229,666	)		(122	)		(17,467	)		28			6,039

38.11.5.2 After reinsurance mitigation


(In millions of Korean won)		December 31, 2024
		Baseline amount								Variance amount												Impact on profit or equity (before tax)
	Shock level	Fulfillment Cashflow				CSM				Fulfillment Cashflow						CSM						Profit or loss						OCI
	Shock level	Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features
Mortality rate	3.27% increase	￦	3,401,945	￦	8,111,836	￦	7,540	￦	8,812,446	￦	40		￦	79,623		￦	(36	)	￦	(77,385	)	￦	(5	)	￦	(2,687	)	￦	1		￦	449
Disability/illness (fixed compensation)	3.40% increase										93			1,121,235			(86	)		(1,015,818	)		(8	)		(71,338	)		1			(34,079	)
Disability/illness (actual expense compensation)	2.62% increase										93			1,121,235			(86	)		(1,015,818	)		(8	)		(71,338	)		1			(34,079	)
Long-term property/other risks	4.19% increase										—			45,498			—			(40,649	)		—			(4,440	)		—			(409	)
Lapse rate (increase)	9.16% increase										1,360			511,355			(1,167	)		(520,973	)		(205	)		(25,781	)		13			35,398
Lapse rate (decrease)	9.16% decrease										(1,419	)		(555,004	)		1,217			571,189			216			21,512			(14	)		(37,697	)
Expense ratio (level)	2.62% increase										698			242,302			(585	)		(222,692	)		(119	)		(14,262	)		7			(5,349	)
Expense ratio (inflation)	0.26%p increase										698			242,302			(585	)		(222,692	)		(119	)		(14,262	)		7			(5,349	)

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38.11.5.2 After reinsurance mitigation (cont’d)


(In millions of Korean won)		December 31, 2025
		Baseline amount								Variance amount												Impact on profit or equity (before tax)
	Shock level	Fulfillment Cashflow				CSM				Fulfillment Cashflow						CSM						Profit or loss						OCI
	Shock level	Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features		Insurance contracts without participation features		Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features			Insurance contracts with participation features			Insurance contracts without participation features
Mortality rate	3.27% increase									￦	37		￦	76,432		￦	(32	)	￦	(77,728	)	￦	(5	)	￦	(2,870	)	￦	—		￦	4,166
Disability/illness (fixed compensation)	3.40% increase										79			1,171,381			(75	)		(1,101,808	)		(7	)		(76,018	)		3			6,446
Disability/illness (actual expense compensation)	2.62% increase
Long-term property/other risks	4.19% increase	￦	3,251,318	￦	7,275,463	￦	7,836	￦	9,196,596		—			51,755			—			(45,905	)		—			(6,322	)		—			472
Lapse rate (increase)	9.16% increase										1,228			577,063			(1,028	)		(582,437	)		(183	)		(35,316	)		(17	)		40,690
Lapse rate (decrease)	9.16% decrease										(1,279	)		(627,099	)		1,074			644,766			190			27,978			15			(45,645	)
Expense ratio (level)	2.62% increase
Expense ratio (inflation)	0.26%p increase										660			242,348			(566	)		(230,938	)		(122	)		(15,645	)		28			4,234

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38.11.6 Liquidity risk of insurance contracts

Liquidity risk arising from insurance contracts arises from the increase in refunds at maturity caused by concentrations of maturity, the excessive increase in surrender values caused by unexpected mass cancelation, and the increase in payments of claims caused by major accidents. The Group manages payment of refunds at maturity by analyzing remaining maturity of insurance contracts.

38.11.6.1 Maturity structure of insurance contract group as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	December 31, 2024
	1 year		1 year ~ 2 years			2 years ~ 3 years			3 years ~ 4 years			4 years ~ 5 years			5 years ~ 10 years			Over 10 years		Total
Net insurance contract liabilities with participation features	￦	195,213	￦	207,186		￦	207,028		￦	234,497		￦	218,826		￦	1,125,604		￦	3,090,912	￦	5,279,266
Net insurance contract liabilities without participation features		1,141,340		(1,585,201	)		(1,277,219	)		(1,330,184	)		(1,000,711	)		(2,175,895	)		56,473,438		50,245,568

(In millions of Korean won)
	December 31, 2025
	1 year		1 year ~ 2 years			2 years ~ 3 years			3 years ~ 4 years			4 years ~ 5 years			5 years ~ 10 years			Over 10 years		Total
Net insurance contract liabilities with participation features	￦	195,598	￦	217,206		￦	227,960		￦	240,527		￦	241,119		￦	1,160,224		￦	2,902,340	￦	5,184,974
Net insurance contract liabilities without participation features		1,293,177		(1,566,389	)		(1,547,055	)		(1,306,654	)		(1,045,575	)		(2,188,858	)		60,148,121		53,786,767

The net outflow amount is represented as positive numbers, while the net inflow amount is represented as negative numbers.

38.11.6.2 The amount payable upon demand as of December 31, 2024 and 2025, are ￦

26,374,280

million and ￦

27,627,111 million, respectively.

38.11.7 Credit risk of insurance contract

Credit risk of an insurance contract refers to economic losses in which the reinsurer, the counterparty, is unable to fulfill its contract obligations due to a decline in credit ratings or default or others. Through an internal review, only the insurers rated

BBB-

or higher of S&P rating or corresponding rating are selected as reinsurance companies.

38.11.7.1 Concentration and credit ratings for top three reinsurance companies as of December 31, 2025, are as follows:


Reinsurance company	Ratio			Credit rating
KOREANRE		33.29	%		AA+
MUNICHRE		5.16	%		AAA
SWISSREINSURANCE		3.79	%		AAA

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38.11.7.2 Exposure to credit risk arising from reinsurance contract as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)

December 31, 2024			December 31, 2025
Reference	Amount		Reference	Amount
Reinsurance contract assets	￦	1,493,495	Reinsurance contract assets	￦	1,506,136
Reinsurance contract liabilities		21,978	Reinsurance contract liabilities		25,554

38.11.8 Interest rate risk of insurance contract

The Group measures interest rate risk for insurance contract liabilities exposed to interest rate risk, which include long-term, automobile, and general insurance.

The Group calculates the exposure of insurance contract liabilities for long-term liability for remaining coverage and liability for incurred claims that apply the general model in accordance with IFRS. The interest rate risk exposure as of December 31, 2024 and 2025 is as follows:

38.11.8.1 Status of interest rate risk exposure of insurance contract


(In millions of Korean won)	December 31, 2024		December 31, 2025
Net insurance contract liabilities	￦	24,291,340	￦	23,933,054
Net insurance contract liabilities with participation features		3,649,339		3,501,385
Net insurance contract liabilities without participation features		20,642,001		20,431,669
Net reinsurance contract assets		1,382,244		1,385,696

Net liability effect	￦	22,909,096	￦	22,547,358

38.11.8.2 Interest rate Sensitivities


(In millions of Korean won)	December 31, 2024
	Equity
	1% increase			1% decrease
Net insurance contract liabilities	￦	2,883,974		￦	(3,493,031	)
Net insurance contract liabilities with participation features		4,728			(38,055	)
Net insurance contract liabilities without participation features		2,879,246			(3,454,976	)
Net reinsurance contract assets		(47,015	)		55,147
Net equity effect	￦	2,836,959		￦	(3,437,884	)


(In millions of Korean won)	December 31, 2025
	Equity
	1% increase			1% decrease
Net insurance contract liabilities	￦	3,016,754		￦	(3,791,246	)
Net insurance contract liabilities with participation features		(245	)		(12,307	)
Net insurance contract liabilities without participation features		3,016,999			(3,778,939	)
Net reinsurance contract assets		(31,957	)		37,610
Net equity effect	￦	2,984,797		￦	(3,753,636	)

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38.12 Risk Management of KB Life Insurance Co., Ltd.

38.12.1 Overview of insurance risk

Insurance risk arises from the core activities of an insurance company, particularly the underwriting of insurance contracts and the payment of claims, which may result in greater losses than the Group has anticipated.

The Group manages potential economic loss risks arising from various risk factors associated with life insurance contracts. These risks are categorized into six subcategories: mortality risk, longevity risk, disability/illness risk, termination risk, expense risk, and catastrophic risk. The Group measures these risks individually.

Except for catastrophic risk, which is assessed using a risk coefficient method, all other types of risks are evaluated using shock scenario methods. The definitions of each risks are as follows:


Mortality Risk		Risk of unexpected losses due to premature death compared to the insured’s expectations.

Longevity Risk		Risk of unexpected losses due to delayed death compared to the insured’s expectations.

Disability/Illness Risk		Risk of unexpected losses related to the insured’s disability and illness.

Termination Risk		Risk of losses due to unexpected exercise of legal rights or contractual options by policyholders.

Expense Risk		Risk of losses due to fluctuations in future costs and expenditure variations caused by inflation in relation to insurance contract costs.

Catastrophic Risk		Risk of extreme, exceptional losses (e.g., epidemics, major accidents) not considered in mortality risk, etc.

38.12.2 Management of insurance risk

The Group measures and manages insurance risk in accordance with internally developed models and the

K-Insurance

Capital Standard

(K-ICS).

Insurance risks, excluding catastrophic risk, are managed under

K-ICS,

as well as being managed under IFRS 17 through sensitivity analysis.

In addition, the Group considers insurance risks inherent in insurance products during the product development stage and continues to measure and mitigate such risks through various methods after the product launch. Risks related to mortality and illness are mitigated through reinsurance. The Group selects appropriate reinsurers based on credit risk assessment and also determines the appropriate level of risk exposure for each reinsurer before making contract with reinsurers. For amounts exceeding

pre-determined

risk limits, the Group manages risk through facultative reinsurance.

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38.12.3 Exposure by risk type

38.12.3.1 Insurance risk exposure

The Group sells life insurance products including death, health, pension, asset-linked, and variable contracts. Along with the sale of various products, the Group also diversifies risk through reinsurance cessions.

Insurance risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	Exposure
	December 31, 2024			December 31, 2025
Insurance contract liabilities	￦	23,706,824		￦	24,727,079
Death		11,313,508			11,645,736
Health		302,911			225,999
Pension		6,682,897			7,041,563
Asset-linked		38,021			34,658
Variable death		1,854,208			2,077,480
Variable pension		3,515,279			3,701,643
Reinsurance contract assets*		(40,641	)		(68,418	)
Death		(29,579	)		(37,619	)
Health		(10,078	)		(17,175	)
Compound		(984	)		(13,624	)

*	Reinsurance contract assets is the net amount after deducting reinsurance contract liabilities

38.12.3.2 Interest rate risk exposure

Interest rate risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	Exposure
	December 31, 2024			December 31, 2025
Insurance contracts	￦	23,706,824		￦	24,727,079
Fixed-rate		13,080,288			13,571,048
Interest rate-linked		5,257,050			5,376,908
Variable		5,369,486			5,779,123
Reinsurance contract assets*		(40,641	)		(68,418	)

*	Reinsurance contract assets is the net amount after deducting reinsurance contract liabilities

38.12.3.3 Equity risk exposure

Equity risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	Exposure
	December 31, 2024		December 31, 2025
Variable	￦	5,369,486	￦	5,779,123

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38.12.3.4 Foreign exchange risk exposure

Foreign exchange risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	Exposure
	December 31, 2024		December 31, 2025
Foreign currency liability	￦	707,517	￦	706,795

38.12.3.5 Credit risk exposure

Credit risk exposure of reinsurance contracts assets and liabilities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	AAA~AA+			AA~A+			A~BBB+			Under BBB		Unrated		Total
Reinsurance contract assets	￦	—		￦	2,401		￦	122		￦	—	￦	—	￦	2,523
Reinsurance contract liabilities		(14,083	)		(15,851	)		(4,353	)		—		—		(34,287	)

(In millions of Korean won)	December 31, 2025
	AAA~AA+			AA~A+			A~BBB+			Under BBB		Unrated		Total
Reinsurance contract assets	￦	—		￦	8,672		￦	—		￦	—	￦	—	￦	8,672
Reinsurance contract liabilities		(13,276	)		(20,818	)		—			—		—		(34,094	)

38.12.4 Reinsurance policy

38.12.4.1 Summary

The purpose of reinsurance transactions is to ensure the Group’s ability to fulfill insurance claim obligations to policyholders and maintain the stability of the Group’s financial structure by ceding contracts that require diversification or risk transfer which could arise from the underwriting of insurance contracts. The Group adheres to the fundamental principle of operating an efficient and stable reinsurance framework by considering the scale of reinsurance transactions, the complexity of reinsurance products, risk exposure levels, profitability, and the credit ratings of reinsurers.

Based on insurance premium, since most of the retained contracts are concentrated in guarantee-type life insurance products, the Group manages insurance risk by securing reinsurance for life insurance policies exceeding a certain coverage amount. Additionally, reinsurance transactions are made when risk mitigation is deemed necessary for specific products or coverages. The Group currently holds contracts with eight reinsurers, and in addition to life insurance, risk for health insurance products such as cancer insurance are mitigated through reinsurance.

As of December 31, 2025, the eight reinsurers contracted by the Group hold credit ratings of

AA-

or higher, based on the criteria outlined in Annex 22 of the Korean DETAILED REGULATIONS ON SUPERVISION OF INSURANCE BUSINESS, indicating a stable financial position.

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38.12.4.2 Concentration on top 5 reinsurers

the status of concentration among the top five reinsurers as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
1	Above AA-		A+ ~ A-		Below BBB+		Others
Reinsurance premiums 3	￦	16,955	￦	—	￦	—	￦	—
Ratio 2		91.7		—		—		—

(In millions of Korean won)	December 31, 2025
1	Above AA-		A+ ~ A-		Below BBB+		Others
Reinsurance premiums 3	￦	18,568	￦	—	￦	—	￦	—
Ratio 2		92.2		—		—		—

1	Credit ratings from foreign credit rating agencies are converted to domestic credit ratings based on the criteria outlined in Annex 22 of the Korean DETAILED REGULATIONS ON SUPERVISION OF INSURANCE BUSINESS.

2	The proportion of ceded insurance premiums represents the percentage relative to total insurance premiums

3	Based on the gross amount before deduction of reinsurance commissions.

38.12.4.3 Reinsurance premium by reinsurer group

The status of reinsurance premiums by reinsurer group as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Credit ratings
	Above AA-		A+ ~ A-		BBB+ Below		Others		Total
Reinsurance premiums *	￦	18,497	￦	—	￦	—	￦	—	￦	18,497
Ratio		100.0		—		—		—		100.0

(In millions of Korean won)	December 31, 2025
	Credit ratings
	Above AA-		A+ ~ A-		BBB+ Below		Others		Total
Reinsurance premiums *	￦	20,128	￦	—	￦	—	￦	—	￦	20,128
Ratio		100.0		—		—		—		100.0

*	Based on the gross amount before deduction of reinsurance commissions.

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38.12.5 Liquidity risk of insurance contracts

Liquidity risk in insurance contracts arises from the increase in maturity refunds due to the concentration of insurance contract maturities at a certain point in time, the excessive increase in surrender refunds due to unexpected mass surrenders, and the increase in insurance payments due to large-scale accidents. Additionally, the Group manages the payment of maturity refunds through the analysis of the maturity of insurance contracts. The maturity structure of insurance liabilities based on net cash flow as of December 31, 2024 and 2025, are as follows.


(In millions of Korean won)
	December 31, 2024
	1 year			1 year ~ 2 years			2 years ~ 3 years			3 years ~ 4 years		4 years ~ 5 years		5 years ~ 10 years		10 years ~ 20 years			Over 20 years
Insurance contract	￦	(53,417	)	￦	(69,388	)	￦	305,581		￦	603,797	￦	1,255,863	￦	4,958,494	￦	11,992,714		￦	35,343,913
Asset portfolio		—			—			—			—		—		—		—			—
Liability portfolio		(53,417	)		(69,388	)		305,581			603,797		1,255,863		4,958,494		11,992,714			35,343,913
Reinsurance contract		9,278			1,462			676			1,678		1,705		8,170		16,996			52,162
Asset portfolio		1,445			(121	)		(555	)		42		108		224		(163	)		(351	)
Liability portfolio		7,833			1,583			1,231			1,636		1,597		7,946		17,159			52,513


(In millions of Korean won)
	December 31, 2025
	1 year		1 year ~ 2 years		2 years ~ 3 years			3 years ~ 4 years		4 years ~ 5 years		5 years ~ 10 years		10 years ~ 20 years		Over 20 years
Insurance contract	￦	412,314	￦	238,500	￦	866,967		￦	954,939	￦	1,120,218	￦	6,130,350	￦	13,123,050	￦	31,922,925
Asset portfolio		—		—		—			—		—		—		—		—
Liability portfolio		412,314		238,500		866,967			954,939		1,120,218		6,130,350		13,123,050		31,922,925
Reinsurance contract		9,022		1,649		752			1,576		1,439		10,906		32,999		129,561
Asset portfolio		2,261		376		(265	)		432		634		5,109		10,977		50,736
Liability portfolio		6,761		1,273		1,017			1,144		805		5,797		22,022		78,825

38.12.6 The amount payable upon demand

The Group’s amount payable upon demand for insurance contracts as of December 31, 2024 and 2025, are as follows:


	December 31, 2024				December 31, 2025
	Amount payable upon demand		Book value		Amount payable upon demand		Book value
Insurance contracts	￦	28,595,855	￦	29,100,070	￦	31,384,939	￦	30,275,011
Death		14,296,802		14,593,909		15,622,704		14,902,195
Health		766,471		566,979		833,313		536,887
Pension		7,255,197		7,281,490		8,066,027		7,591,499
Asset-linked		40,436		40,232		37,683		36,523
Variable death		2,439,175		2,945,814		2,863,686		3,369,460
Variable pension		3,797,775		3,671,647		3,961,526		3,838,447

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38.12.7 Assumption sensitivity

The result of sensitivity analysis as of December 31, 2024 and 2025, are as follows:

38.12.7.1 Insurance sensitivity

Before reinsurance mitigation:


(In millions of Korean won)
			December 31, 2024
		Sensitivit 1	Baseline amount				Change amount						Impact on profit and equity (before tax)
			Fulfillment		Insurance		Fulfillment			Insurance			Profit or loss 2			OCI
			Cash flows		CSM		Cash flow 3			CSM			Profit or loss 2			OCI
Loss rate	Mortality rate	Increase by 3.27%		23,706,824		5,143,498	￦	106,984		￦	(97,865	)	￦	(589	)	￦	(8,530	)
	Disability/illness (fixed benefit)	Increase by 3.40%						102,301			(105,373	)		(1,108	)		4,180
	Disability/illness (indemnity benefit)	Increase by 2.62%						531			(529	)		(3	)		1
	Long-term property/other risks	Increase by 4.19%
Lapse rate	Lapse rate (increase)	Increase by 9.16%						362,584			(268,566	)		(20,353	)		(73,665	)
Lapse rate	Lapse rate (decrease)	Decrease by 9.16%						(412,005	)		314,825			17,415			79,765
Expense ratio	Expense ratio (level)	Increase by 2.62%						92,193			(92,815	)		(4,889	)		5,511
Expense ratio	Expense ratio (inflation)	0.26%p

After reinsurance mitigation:


(In millions of Korean won)
			December 31, 2024
		Sensitivity 1	Baseline amount				Change amount						Impact on profit and equity (before tax)
			Fulfillment		Insurance		Fulfillment			Insurance			Profit or loss 2			OCI
			Cash flows		CSM		Cash flow 3			CSM			Profit or loss 2			OCI
Loss rate	Mortality rate	Increase by 3.27%		23,747,465		5,139,655	￦	105,168		￦	(95,875	)	￦	(545	)	￦	(8,748	)
	Disability/illness (fixed benefit)	Increase by 3.40%						101,554			(104,644	)		(1,038	)		4,128
	Disability/illness (indemnity benefit)	Increase by 2.62%						511			(508	)		(3	)		—
	Long-term property/other risks	Increase by 4.19%
Lapse rate	Lapse rate (increase)	Increase by 9.16%						360,412			(266,198	)		(20,196	)		(74,018	)
Lapse rate	Lapse rate (decrease)	Decrease by 9.16%						(409,644	)		312,241			17,266			80,137
Expense ratio	Expense ratio (level)	Increase by 2.62%						92,186			(92,864	)		(4,832	)		5,510
Expense ratio	Expense ratio (inflation)	0.26%p

1	The sensitivity analysis is on liability for remaining coverage of insurance, and the shock levels of actuarial assumptions are based on supervisory criteria for calculating the risk adjustment (confidence level of 75%).

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38.12.7.1 Insurance sensitivity (cont’d)

2	The impact on profit or loss represents the increase in the best estimate liability that exceeds the carrying amount of the contractual service margin due to changes in assumptions.

3	No shocks were applied to the risk adjustment within the fulfillment cash flows.

Before reinsurance mitigation:


(In millions of Korean won)
	December 31, 2025
		Sensitivity 1	Baseline amount				Change amount						Impact on profit and equity (before tax)
			Fulfillment		Insurance		Fulfillment			Insurance			Profit or loss 2			OCI
			Cash flows		CSM		Cash flow 3			CSM			Profit or loss 2			OCI
Loss rate	Mortality rate	Increase by 3.27%		24,727,079		5,330,899	￦	96,436		￦	(92,643	)	￦	(987	)	￦	(2,806	)
	Disability/illness (fixed benefit)	Increase by 3.40%						107,696			(113,961	)		(1,539	)		7,805
	Disability/illness (indemnity benefit)	Increase by 2.62%
	Long-term property/other risks	Increase by 4.19%
Lapse rate	Lapse rate (increase)	Increase by 9.16%						420,275			(287,951	)		(36,064	)		(96,261	)
Lapse rate	Lapse rate (decrease)	Decrease by 9.16%						(474,860	)		350,995			21,691			102,174
Expense ratio	Expense ratio (level)	Increase by 2.62%						84,853			(88,286	)		(4,850	)		8,282
Expense ratio	Expense ratio (inflation)	0.26%p

After reinsurance mitigation:


(In millions of Korean won)
	December 31, 2025
		Sensitivity 1	Baseline amount				Change amount						Impact on profit and equity (before tax)
			Fulfillment		Insurance		Fulfillment			Insurance			Profit or loss 2			OCI
			Cash flows		CSM		Cash flow 3			CSM			Profit or loss 2			OCI
Loss rate	Mortality rate	Increase by 3.27%		24,795,497		5,291,953	￦	92,581		￦	(88,513	)	￦	(847	)	￦	(3,221	)
	Disability/illness (fixed benefit)	Increase by 3.40%						105,964			(112,468	)		(1,016	)		7,520
	Disability/illness (indemnity benefit)	Increase by 2.62%
	Long-term property/other risks	Increase by 4.19%
Lapse rate	Lapse rate (increase)	Increase by 9.16%						414,086			(281,288	)		(35,125	)		(97,673	)
Lapse rate	Lapse rate (decrease)	Decrease by 9.16%						(467,856	)		343,030			21,037			103,789
Expense ratio	Expense ratio (level)	Increase by 2.62%						84,843			(88,589	)		(4,534	)		8,280
Expense ratio	Expense ratio (inflation)	0.26%p

1	The sensitivity analysis is on liability for remaining coverage of insurance, and the shock levels of actuarial assumptions are based on supervisory criteria for calculating the risk adjustment (confidence level of 75%).

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38.12.7.1 Insurance sensitivity (cont’d)

2	The impact on profit or loss represents the increase in the best estimate liability that exceeds the carrying amount of the contractual service margin due to changes in assumptions.

3	No shocks were applied to the risk adjustment within the fulfillment cash flows.

38.12.7.2 Interest rate risk


(In millions of Korean won)
	December 31, 2024
		Profit or loss (before tax)			OCI (before tax)
100bp increase	Insurance contracts *	￦	220,772		￦	3,062,364
100bp increase	Reinsurance contracts *	(149		)	6,480
100bp decrease	Insurance contracts *		(575,881	)		(4,227,958	)
100bp decrease	Reinsurance contracts *	254			(8,498)


(In millions of Korean won)
	December 31, 2025
		Profit or loss (before tax)			OCI (before tax)
100bp increase	Insurance contracts *	￦	203,182		￦	2,796,438
100bp increase	Reinsurance contracts *	6			12,520
100bp decrease	Insurance contracts *		(230,613	)		(3,410,414	)
100bp decrease	Reinsurance contracts *	213			(15,470)

1	For insurance contracts (original insurance and accepted reinsurance) and reinsurance contracts, the impacts are on liability for remaining coverage.

2	No shocks were applied to the risk adjustment within the fulfillment cash flows.

38.12.7.3 Foreign exchange rate risk


(In millions of Korean won)
	December 31, 2024
		Profit or loss (before tax)			OCI (before tax)
100won increase	Insurance contracts *	￦	(61,733	)	￦	14,977
100won increase	Reinsurance contracts *	(35		)	7
100won decrease	Insurance contracts *		61,733			(14,977	)
100won decrease	Reinsurance contracts *	35			(7)


(In millions of Korean won)
	December 31, 2025
		Profit or loss (before tax)			OCI (before tax)
100won increase	Insurance contracts *	￦	(58,895	)	￦	11,959
100won increase	Reinsurance contracts *	(24		)	5
100won decrease	Insurance contracts *		58,895			(11,959	)
100won decrease	Reinsurance contracts *	24			(5)

1	For insurance contracts (original insurance and accepted reinsurance) and reinsurance contracts, the impacts are on liability for remaining coverage.

2	No shocks were applied to the risk adjustment within the fulfillment cash flows.

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38.12.7.4 Stock price risk


(In millions of Korean won)
	December 31, 2024
		Profit or loss (before tax)			OCI (before tax)
10% increase	Insurance contracts *	￦	(157,555	)	￦	—
10% increase	Reinsurance contracts *	88			—
10% decrease	Insurance contracts *		155,996			—
10% decrease	Reinsurance contracts *	(89)			—


(In millions of Korean won)
	December 31, 2025
		Profit or loss (before tax)			OCI (before tax)
10% increase	Insurance contracts *	￦	(223,814	)	￦	—
10% increase	Reinsurance contracts *	—			—
10% decrease	Insurance contracts *		223,814			—
10% decrease	Reinsurance contracts *	—			—

1	For insurance contracts (original insurance and accepted reinsurance) and reinsurance contracts, the impacts are on liability for remaining coverage.

2	No shocks were applied to the risk adjustment within the fulfillment cash flows.

38.12.8 Claims development tables

Claims development tables of the Group as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Accident year
	2020			2021			2022			2023			2024			Total
Development year
Estimated final loss undiscounted	￦	179,051		￦	203,001		￦	210,219		￦	213,227		￦	229,657		￦	—
Claims paid
Current year		(139,994	)		(161,496	)		(168,229	)		(165,924	)		(185,249	)		—
After 1 year		(27,947	)		(29,568	)		(30,338	)		(35,275	)		—			—
After 2 years		(4,061	)		(5,152	)		(4,877	)		—			—			—
After 3 years		(2,158	)		(2,375	)		—			—			—			—
After 4 years		(1,796	)		—			—			—			—			—

Total gross cumulative claim payments	￦	(175,956	)	￦	(198,591	)	￦	(203,444	)	￦	(201,199	)	￦	(185,249	)	￦	—
Difference between estimated final loss and claim payments.		3,095			4,410			6,775			12,028			44,408			70,716
Discount rate effect		—			—			—			—			—			(3,471	)
Future claims expense		—			—			—			—			—			843
Incurred claims settled but not yet paid		—			—			—			—			—			164,482
Risk adjustment		—			—			—			—			—			10,088
Reinsurance effects*		—			—			—			—			—			(9,879	)

Total Liability for incurred claims	￦	—		￦	—		￦	—		￦	—		￦	—		￦	232,779

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38.12.8 Claims development tables (cont’d)


(In millions of Korean won)	December 31, 2025
	Accident year
Development year	2021			2022			2023			2024			2025			Total
Estimated final loss undiscounted	￦	203,759		￦	212,391		￦	214,611		￦	235,653		￦	247,894		￦	—
Claims paid
Current year		(161,464	)		(167,992	)		(166,118	)		(184,435	)		(196,574	)		—
After 1 year		(29,553	)		(31,371	)		(34,912	)		(37,470	)		—			—
After 2 years		(5,152	)		(4,313	)		(5,067	)		—			—			—
After 3 years		(2,269	)		(3,177	)		—			—			—			—
After 4 years		(1,873	)		—			—			—			—			—

Total gross cumulative claim payments	￦	(200,311	)	￦	(206,853	)	￦	(206,097	)	￦	(221,905	)	￦	(196,574	)	￦	—
Difference between estimated final loss and claim payments.		3,448			5,538			8,514			13,748			51,320			82,568
Discount rate effect		—			—			—			—			—			(4,233	)
Future claims expense		—			—			—			—			—			1,135
Incurred claims settled but not yet paid		—			—			—			—			—			178,649
Risk adjustment		—			—			—			—			—			11,365
Reinsurance effects*		—			—			—			—			—			(8,997	)

Total Liability for incurred claims	￦	—		￦	—		￦	—		￦	—		￦	—		￦	260,487

*	The reinsurance effect is presented as a total amount.

39. Statement of Cash Flows

39.1 Details of cash and cash equivalents as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024			December 31, 2025
Cash	￦	1,954,624		￦	2,074,714
Checks issued by other banks		124,366			134,454
Due from the Bank of Korea		14,372,352			17,332,054
Due from other financial institutions		13,417,769			15,235,655
Disposal group held for sale 1		—			5,858

		29,869,111			34,782,735

Due from financial institutions measured at fair value through profit or loss		59,838			64,437

		29,928,949			34,847,172

Deduction:
Restricted due from financial institutions 2		(4,338,818	)		(4,843,682	)
Due from financial institutions with original maturities over three months		(981,264	)		(982,926	)

		(5,320,082	)		(5,826,608	)

	￦	24,608,867		￦	29,020,564

1	The cash and deposits classified as a disposal group held for sale as of December 31, 2025 are included, as described in Note 18

2	Items meeting the definition of cash are excluded.

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39.1 Details of cash and cash equivalents as of December 31, 2024 and 2025, are as follows (cont’d):

Items meeting the definition of cash among due from financial institutions with restriction to use as of December 31, 2024 and 2025, are as follows:

(In millions of Korean won)

Financial institutions

December 31,

2024

December 31,

2025

Due from financial institutions in Korean won

Due from the Bank of Korea

The Bank of Korea

￦

11,635,481

￦

13,939,438

Due from others

Korea Development Bank and others

25,928

27,555

Due from financial institutions in foreign currencies

Due from banks in foreign currencies

Bank Indonesia and others

2,540,681

3,367,183

￦

14,202,090

￦

17,334,176

39.2 Significant

non-cash

transactions for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023		2024		2025
Write-offs of loans	￦	1,757,920	￦	1,984,218	￦	2,308,709
Changes in accumulated other comprehensive income from valuation of financial instruments at fair value through other comprehensive income		3,346,010		1,216,436		(1,877,833	)
Changes in accumulated other comprehensive income from valuation of investments in associates		24		165		2,018

39.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	Activities		2023		2024		2025
Income tax paid		Operating	￦	2,189,111	￦	1,158,212	￦	1,171,542
Interest received		Operating		28,550,486		30,279,240		29,151,695
Interest paid		Operating		13,119,057		15,354,968		14,044,238
Dividends received		Operating		330,350		482,012		610,307
Dividends paid		Financing		1,336,816		1,686,777		1,504,682

39.4 Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	2024
							Non-cash changes
	Beginning			Net cash flows			Acquisition (disposal)		Exchange differences			Changes in fair value			Subsidiaries			Others		Ending
Derivatives held for hedging*	￦	(93,003	)	￦	(216,883	)	￦	—	￦	(238,486	)	￦	(128,072	)	￦	—		￦	314,589	￦	(361,855	)
Borrowings and debentures		138,760,229			825,087			—		4,045,394			39,945			(22,909	)		600,523		144,248,269
Due to trust accounts		8,142,102			89,900			—		—			—			—			—		8,232,002
Others		1,149,587			(339,514	)		630,785		—			—			—			107,777		1,548,635

	￦	147,958,915		￦	358,590		￦	630,785	￦	3,806,908		￦	(88,127	)	￦	(22,909	)	￦	1,022,889	￦	153,667,051

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39.4 Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
	2025
							Non-cash changes
	Beginning			Net cash flows			Acquisition (disposal)		Exchange differences			Changes in fair value			Subsidiaries			Others			Ending
Derivatives held for hedging*	￦	(361,855	)	￦	(276,837	)	￦	—	￦	(24,485	)	￦	(58,683	)	￦	—		￦	961,561		￦	239,701
Borrowings and debentures		144,248,269			7,603,382			—		(534,276	)		21,484			(269,727	)		(291,467	)		150,777,665
Due to trust accounts		8,232,002			2,905,896			—		—			—			—			—			11,137,898
Others		1,548,635			(620,139	)		136,693		—			—			—			133,240			1,198,429

	￦	153,667,051		￦	9,612,302		￦	136,693	￦	(558,761	)	￦	(37,199	)	￦	(269,727	)	￦	803,334		￦	163,353,693

*	Derivatives held for hedging purposes are the net amount after offsetting liabilities and assets.

39.5 The net cash flow associated with the changes in the subsidiaries for the years ended December 31, 2024 and 2025 are

￦

88,528

million of cash inflow and

￦

264,868 million of cash outflow, respectively.

40. Contingent Liabilities and Commitments

40.1 Details of acceptances and guarantees as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Confirmed acceptances and guarantees
Confirmed acceptances and guarantees in Korean won:
Acceptances and guarantees for KB purchasing loan	￦	152,129	￦	110,728
Others		900,237		1,028,783

		1,052,366		1,139,511

Confirmed acceptances and guarantees in foreign currencies:
Acceptances of letter of credit		331,423		215,808
Letter of guarantees		45,274		76,496
Bid bond		12,782		2,253
Performance bond		1,927,572		2,039,924
Refund guarantees		4,644,429		3,277,694
Others		4,594,667		4,787,138

		11,556,147		10,399,313

Financial guarantee contracts:
Acceptances and guarantees for mortgage		20,790		19,673
Overseas debt guarantees		588,019		406,900
International financing guarantees in foreign currencies		842,838		1,138,481
Other financial guarantees		—		263,823

		1,451,647		1,828,877

		14,060,160		13,367,701

Unconfirmed acceptances and guarantees
Guarantees of letter of credit		2,268,081		2,537,195
Refund guarantees		1,373,649		1,427,424

		3,641,730		3,964,619

	￦	17,701,890	￦	17,332,320

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40.2 Credit qualities of acceptances and guarantees as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Total
	12-month expected credit losses		Non-impaired		Impaired		Total
Confirmed acceptances and guarantees
Grade 1	￦	12,022,664	￦	—	￦	—	￦	12,022,664
Grade 2		1,870,438		23,840		—		1,894,278
Grade 3		98,224		16,147		—		114,371
Grade 4		8,291		2,975		457		11,723
Grade 5		—		230		16,894		17,124

		13,999,617		43,192		17,351		14,060,160

Unconfirmed acceptances and guarantees
Grade 1		2,281,647		2,441		—		2,284,088
Grade 2		1,306,932		15,349		—		1,322,281
Grade 3		13,982		14,781		—		28,763
Grade 4		1,171		2,652		21		3,844
Grade 5		—		175		2,579		2,754

		3,603,732		35,398		2,600		3,641,730

	￦	17,603,349	￦	78,590	￦	19,951	￦	17,701,890


(In millions of Korean won)	December 31, 2025
	12-month expected credit losses		Lifetime expected credit losses				Total
	12-month expected credit losses		Non-impaired		Impaired		Total
Confirmed acceptances and guarantees
Grade 1	￦	11,052,820	￦	201,686	￦	—	￦	11,254,506
Grade 2		1,914,728		35,378		—		1,950,106
Grade 3		105,144		16,615		180		121,939
Grade 4		10,207		5,410		503		16,120
Grade 5		8,404		3,674		12,952		25,030

		13,091,303		262,763		13,635		13,367,701

Unconfirmed acceptances and guarantees
Grade 1		3,509,754		4,180		—		3,513,934
Grade 2		403,592		20,047		—		423,639
Grade 3		4,526		12,319		—		16,845
Grade 4		794		7,809		20		8,623
Grade 5		—		404		1,174		1,578

		3,918,666		44,759		1,194		3,964,619

	￦	17,009,969	￦	307,522	￦	14,829	￦	17,332,320

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40.3 Classifications of acceptances and guarantees by counterparty as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Large companies	￦	13,215,006	￦	2,972,146	￦	16,187,152		91.45
Small and medium-sized companies		747,170		423,299		1,170,469		6.61
Public sector and others		97,984		246,285		344,269		1.94

	￦	14,060,160	￦	3,641,730	￦	17,701,890		100.00


(In millions of Korean won)	December 31, 2025
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Large companies	￦	12,415,691	￦	3,031,523	￦	15,447,214		89.12
Small and medium-sized companies		813,807		373,420		1,187,227		6.85
Public sector and others		138,203		559,676		697,879		4.03

	￦	13,367,701	￦	3,964,619	￦	17,332,320		100.00

40.4 Classifications of acceptances and guarantees by industry as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Financial institutions	￦	1,810,426	￦	1,244	￦	1,811,670		10.24
Manufacturing		8,139,583		2,709,623		10,849,206		61.29
Service		926,446		48,709		975,155		5.51
Wholesale and retail		2,410,725		594,407		3,005,132		16.98
Construction		334,561		73,389		407,950		2.30
Public sector		24,929		101,456		126,385		0.71
Others		413,490		112,902		526,392		2.97

	￦	14,060,160	￦	3,641,730	￦	17,701,890		100.00


(In millions of Korean won)	December 31, 2025
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Financial institutions	￦	1,822,127	￦	1,916	￦	1,824,043		10.52
Manufacturing		7,730,095		2,790,672		10,520,767		60.70
Service		985,539		92,110		1,077,649		6.22
Wholesale and retail		2,111,297		573,783		2,685,080		15.49
Construction		298,186		28,042		326,228		1.88
Public sector		25,665		362,831		388,496		2.24
Others		394,792		115,265		510,057		2.94

	￦	13,367,701	￦	3,964,619	￦	17,332,320		100.00

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40.5 Details of commitments as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024		December 31, 2025
Commitments
Corporate loan commitments	￦	57,510,280	￦	56,218,691
Retail loan commitments		59,100,288		58,406,337
Credit line of credit cards		87,204,864		89,718,829
Purchase of other securities		8,880,563		9,133,299

		212,695,995		213,477,156

Financial guarantee contracts
Credit line		4,747,946		3,689,143
Purchase of securities		475,147		1,691,300

		5,223,093		5,380,443

	￦	217,919,088	￦	218,857,599

40.6 Other Matters (including litigation)

a) As of December 31, 2025, the Group involved in 123 legal cases as a plaintiff in connection with its operating activities (excluding simple cases related to loan recovery and administrative activities), with a total

claim amount of ￦

536,144 million. The Group also involved in 361 legal cases as a defendant (excluding simple cases related to loan recovery or administrative activities) with a total

claim amount of ￦

978,726 million. The amount of any additional losses that may arise, depending on the outcome of these proceedings, cannot be predicted at this time. Details of major pending lawsuits in which the Group is a defendant are as follows:

(In number of cases, in millions of Korean won)

Company

Lawsuits

No. of
cases

Amount

Description of the lawsuits

Status of the lawsuits

Kookmin Bank

Request for a return of redemption amount

￦

60,281

Kookmin Bank invested the assets entrusted by OO Invest Trust Management in the Fairfield Sentry Limited and Fairfield Sentry Limited reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff. (Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses.)

Bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit against Kookmin Bank seeking to return the amount of redemptions received by Kookmin Bank through Fairfield Sentry Limited.

Application for dismissal by the defendant has been denied, and further proceedings are scheduled. [Related litigation is pending at the New York Southern District Federal Bankruptcy Court

(10-3777)]

The financial impact on Kookmin Bank is not significant because the likelihood of winning the lawsuit is high

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40.6 Other Matters (including litigation) (cont’d)

Company

Lawsuits

No. of
cases

Amount

Description of the lawsuits

Status of the lawsuits

Return of unjust enrichment

156,755

As MTS Bank, which was trading with Kookmin Bank through a foreign exchange account, was listed on the SDN (Specifically Designated Nationals) list of the Office of Foreign Assets Control (OFAC) under the U.S. Treasury Department, Kookmin Bank froze the foreign currency account in the name of MTS Bank.

Accordingly, MTS Bank filed a lawsuit seeking the return of the account balance to the Moscow City Commercial Court in Russia

Responding in accordance with the schedule of the local court proceedings (following the first-instance judgment rendered against the Bank on December 2, 2025, the Bank is currently responding to the appellate proceedings).

Due to compliance with U.S. OFAC regulations, it is difficult to predict the likelihood of success in the litigation being conducted before the Russian courts. However, the amount in dispute can be covered by the balance in the plaintiff’s account, and a financial impact equivalent to delayed interest is expected for the Bank.

KB Securities Co., Ltd.

Request for the return of unjust enrichment and transaction amount (Australian fund)

59,927

As an investment broker for a private fund that lends money to a corporation (borrower) investing in Australian disability apartment rental business, KB Securities Co., Ltd. brokered investments of ￦326,500 million in trust products and funds to individual and institutional investors. However, due to the local Australian borrower’s breach of contract, the fund management was suspended, and related to this, a lawsuit was filed against KB Securities Co., Ltd. for the return of unjust enrichment and transaction amount.

No.1 case: The third trial is in progress (The first trial: On February 7, 2023, a ruling was made to pay the principal investment of ￦ 29,800 million and the delayed interest on it. The second trial: On January 29, 2024, the conclusion was different; a ruling was made to pay the principal investment of ￦ 12,000 million and the delayed interest on it.)

No. 2 case: The second trial is in progress (The first trial: On February 14, 2024, a ruling was made to pay the principal investment of ￦ 12,200 million and the delayed interest on it.)

No. 3 case: The third trial is in progress (The first trial: On October 26, 2023, a ruling was made to pay the remaining principal and interest of ￦ 8,460 million and the delayed interest on the principal of ￦ 8,290 million. The second trial: On January 16, 2025, a ruling was made ordering the return of ￦ 4,400 million, which represents a portion of the ￦ 8,070 million paid following the first-instance judgment.)

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40.6 Other Matters (including litigation) (cont’d)

Meanwhile, the Group has recognized a provision for litigation amounting to ￦

142,090 million in the financial statements in relation to the pending lawsuit in which it is a defendant as of December 31, 2025 (Note 24.5).

b) As of December 31, 2025, there are a total of seven pending lawsuits related to the wage peak system, amounting to ￦

12,551 million. This includes five cases for Kookmin Bank with a total claim

amount of ￦

12,175 million, one case for KB Life Insurance Co., Ltd. with a claim

amount of ￦

136 million, and one case for KB Asset Management Co., Ltd. with a claim

amount of ￦

240 million. The amount and timing of potential outflows of resources are currently unpredictable.

c) As of December 31, 2025, KB Real Estate Trust Co., Ltd. is undertaking 14 completion-guaranteed land trust projects (including Busan Kyungbo Industrial Development project), under which it assumes the obligations to complete construction of the contractor fails to fulfill its completion obligations, and is liable to compensate the lending financial institutions for any losses arising from any failure to fulfill such obligations.

The total PF loan commitment limit related to these completion-guarantee land trust projects amounted to ￦

1,240,200

million, of which ￦

927,300 million represents outstanding balance (including unpaid interest) as of December 31, 2025.

In connection with these projects, the Group recognized provisions totaling ￦

4,200 million as of December 31, 2025 for the expected losses associated with trust-account exposures arising from the completion obligations. In addition, the Group recognized additional provisions

totaling ￦

140,100 million as of December 31, 2025 for the estimated losses related to potential liability for damages that may arise if the completion obligations are not fulfilled.

As of December 31, 2025, a total of 12 projects (all of which have been completed) remain where completion obligations were not fulfilled within the contractual period. The PF loan commitment limits for these projects amount to ￦

1,090,100 million, and outstanding balance (including unpaid interest)

amount to ￦

851,900 million. Of these, eight completed projects are subject to ongoing litigation, involving a total of 11 legal cases with an aggregate

claim amount of ￦

251,700 million; the PF loan commitment limits and outstanding balance (including unpaid interest) for these projects

amount to ￦

716,600

million and ￦

492,800 million, respectively.

d) During the year ended December 31, 2024, the Financial Supervisory Service conducted regular inspections covering the overall operations of the subsidiaries, Kookmin Bank and KB Life Insurance Co., Ltd., and during the year ended December 31, 2025, a regular inspection covering the overall operations of the subsidiary, KB Securities Co., Ltd., was conducted. As of December 31, 2025, the results of these inspections and any required corrective actions have not yet been notified and are expected to be communicated in the future.

e) Kookmin Bank and KB Securities Co., Ltd. are currently under investigation by the Fair-Trade Commission regarding alleged collusive conduct among financial institutions. The outcome of the investigation cannot be predicted at this time.

f) As of December 31, 2025, KB PRASAC BANK PLC. is currently undergoing a tax audit by the tax authorities. The outcome of the tax audit cannot be predicted at this time.

g) On April 7, 2023, Kookmin Bank entered into a share subscription right transfer agreement with STIC Eugene Star Holdings Inc. (hereinafter referred to as “STIC”), under which STIC agreed to acquire 31,900,000,000 newly issued shares at a price of IDR 3.19 trillion to be issued in a capital increase by PT Bank KB Indonesia Tbk, a subsidiary of Kookmin Bank.

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40.6 Other Matters (including litigation) (cont’d)

As a result of the agreement, after STIC’s acquisition of the shares, Kookmin Bank holds a call option to purchase the shares held by STIC for a

six-month

period commencing 2 years and 6 months after the acquisition date. If Kookmin Bank does not exercise the call option during the exercise period, STIC holds a put option to sell the shares to Kookmin Bank within one year following the expiration of the call option period.

h) As of December 31, 2025, KB Real Estate Trust Co., Ltd. may lend up to ￦

4,475,500 million to trust accounts, which represents a portion of the total project cost related to borrowing-type land trust contracts (including maintenance and redevelopment projects). Whether KB Real Estate Trust Co., Ltd. provides such trust account loans does not constitute an unconditional payment obligation and is determined after comprehensively considering various factors, including the funding plan of its own accounts and the cash flow projections of the trust business.

i) On July 1, 2025, Kookmin Bank entered into a share purchase agreement with a third party for the sale of its equity interest in its subsidiary, PT KB Bukopin Finance, and is currently in the process of carrying out the procedures necessary to complete the disposal. Upon completion of the transaction as planned, Kookmin Bank will lose control over PT KB Bukopin Finance.

41. Subsidiaries

41.1 Details of major consolidated subsidiaries as of December 31, 2025, are as follows:

Investor

Investee

Ownership
(%)

Location

Date of
financial
statements

Industry

KB Financial Group Inc.

Kookmin Bank

100.00

Korea

Dec. 31

Banking and foreign exchange transaction

KB Kookmin Card Co., Ltd.

100.00

Korea

Dec. 31

Credit card and installment financing

KB Asset Management Co., Ltd.

100.00

Korea

Dec. 31

Collective investment and advisory

KB Capital Co., Ltd.

100.00

Korea

Dec. 31

Financial Leasing

KB Savings Bank Co., Ltd.

100.00

Korea

Dec. 31

Savings banking

KB Real Estate Trust Co., Ltd.

100.00

Korea

Dec. 31

Real estate trust management

KB Investment Co., Ltd.

100.00

Korea

Dec. 31

Capital investment

KB Data System Co., Ltd.

100.00

Korea

Dec. 31

Software advisory, development, and supply

KB Securities Co., Ltd.

100.00

Korea

Dec. 31

Financial investment

KB Insurance Co., Ltd.

100.00

Korea

Dec. 31

Non-life insurance

KB Life Insurance Co., Ltd.

100.00

Korea

Dec. 31

Life insurance

Kookmin Bank

KB PRASAC Bank Plc.

100.00

Cambodia

Dec. 31

Banking and foreign exchange transaction

Kookmin Bank (China) Ltd.

100.00

China

Dec. 31

Banking and foreign exchange transaction

KB Microfinance Myanmar Co., Ltd.

100.00

Myanmar

Dec. 31

Microfinance services

PT Bank KB Bukopin Syariah

95.92

Indonesia

Dec. 31

Banking

PT KB Bukopin Finance

6 8

99.24

Indonesia

Dec. 31

Installment financing

KB Bank Myanmar Co., Ltd.

100.00

Myanmar

Dec. 31

Banking and foreign exchange transaction

KB FUND PARTNERS Co., Ltd.

100.00

Korea

Dec. 31

Other unclassified financial services

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41.1 Details of major consolidated subsidiaries as of December 31, 2025, are as follows (cont’d):

Investor

Investee

Ownership
(%)

Location

Date of
financial
statements

Industry

Kookmin Bank, KB Kookmin Card Co., Ltd., KB Securities Co., Ltd., KB Insurance Co., Ltd., KB Capital Co., Ltd.

PT Bank KB Indonesia,Tbk.

67.57

Indonesia

Dec. 31

Banking and foreign exchange transaction

KB Securities Co., Ltd.

KBFG Securities America Inc.

100.00

United States

Dec. 31

Investment advisory and securities trading

KB Securities Hong Kong Ltd.

100.00

China

Dec. 31

Investment advisory and securities trading

KB Securities Vietnam Joint Stock Company

99.81

Vietnam

Dec. 31

Investment advisory and securities trading

KB FINA COMPANY LIMITED

100.00

Vietnam

Dec. 31

Investment advisory and securities trading

PT KB VALBURY SEKURITAS

65.00

Indonesia

Dec. 31

Investment advisory and securities trading

KB Insurance Co., Ltd.

Leading Insurance Services, Inc.

100.00

United States

Dec. 31

Management service

KBFG Insurance (China) Co., Ltd.

100.00

China

Dec. 31

Non-life

insurance

PT. KB Insurance Indonesia

70.00

Indonesia

Dec. 31

Non-life

insurance

KB Claims Survey & Adjusting

100.00

Korea

Dec. 31

Claim service

KB Sonbo CNS

100.00

Korea

Dec. 31

Management service

KB Healthcare Co., Ltd.

100.00

Korea

Dec. 31

Information and communication

KB Life Insurance Co., Ltd.

KB Life Partners Co., Ltd.

100.00

Korea

Dec. 31

Insurance agent

KB Golden Life Care Co., Ltd.

100.00

Korea

Dec. 31

Service

KB Kookmin Card Co., Ltd.

KB Credit Information Co., Ltd.

100.00

Korea

Dec. 31

Collection of receivables or credit investigation

KB Daehan Specialized Bank Plc.

97.50

Cambodia

Dec. 31

Auto Installment finance

PT. KB Finansia Multi Finance

85.00

Indonesia

Dec. 31

Auto Installment finance

KB J Capital Co., Ltd.

77.40

Thailand

Dec. 31

Service

KB Capital Co., Ltd.

PT Sunindo Kookmin Best Finance

85.00

Indonesia

Dec. 31

Auto Installment finance

KBFintech Inc.

95.95

Korea

Dec. 31

E-commerce

KB Kookmin Card Co., Ltd., KB Capital Co., Ltd.

KB KOLAO Leasing Co., Ltd.

80.00

Laos

Dec. 31

Auto Installment finance

Kookmin Bank, KB Data System Co., Ltd.

PT KB Data Systems Indonesia

100.00

Indonesia

Dec. 31

Service

KB Asset Management Co., Ltd.

KBAM Shanghai Advisory Services Co., Ltd.

100.00

China

Dec. 31

General advisory

PT KB Valbury Asset Management

70.00

Indonesia

Dec. 31

Collective investment

KB Asset Management Singapore PTE. LTD.

100.00

Singapore

Dec. 31

Collective investment

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41.1 Details of major consolidated subsidiaries as of December 31, 2025, are as follows (cont’d):

1	During the first quarter of 2024, PT Valbury Capital Management was changed from a sub-subsidiary of KB Securities Co., Ltd. to a subsidiary of KB Asset Management Co., Ltd., and its name was changed to PT KB Valbury Asset Management during the second quarter of 2024.

2	KB DAEHAN SPECIALIZED BANK PLC. (merging entity) merged with i-Finance Leasing PLC. (merged entity) on December 19, 2024.

3	On October 14, 2024, Teamwink Co., Ltd. changed its name to KB Fintech Co., Ltd.

4	During the first quarter of 2025, KB FINA Joint Stock Company changed its name to KB FINA COMPANY LIMITED.

5	During the third quarter of 2025, PT Bank Syariah Bukopin changed its name to PT Bank KB Bukopin Syariah.

6	During the third quarter of 2025, PT Bukopin Finance changed its name to PT KB Bukopin Finance.

7	During the third quarter of 2025, PT Bank KB Bukopin,Tbk. changed its name to PT Bank KB Indonesia,Tbk.

8	The disposal group was classified as held for sale, as of December 31, 2025.

41.2 Details of consolidated structured entities as of December 31, 2025, are as follows:


	Consolidated structured entities	Reasons for consolidation
Trusts	Kookmin Bank (development trust) and 10 others	The Group controls the trust because it has power to determine management performance of the trust and is significantly exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of principal and fixed rate of return.

Asset-backed securitization	Taejon Samho The First Co., Ltd. and 82 others	The Group controls these investees because it has power over relevant activities in the event of default, is significantly exposed to variable returns by providing lines of credit, ABCP purchase commitments or acquisition of subordinated debt and has ability to affect those returns through its power.

Investment funds and others	KB Global Platform Fund No.2 and 237 others	Funds are consolidated if the Group, as a collective investor or operating manager (member), etc., can manage fund assets on behalf of other investors, or dismiss the collective investor and operating manager, and is substantially exposed to significant variable returns or has such rights.

If the Group holds more than half of the ownership interests but does not have the power over relevant activities of structured entities in accordance with agreements with trust and other related parties, those structured entities are excluded from the consolidation.

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41.3 Condensed financial information of major subsidiaries as of and for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)
	December 31, 2024						2024
	Assets		Liabilities		Equity		Operating revenue		Profit (loss) attributable to shareholders of the Parent Company			Total comprehensive income (loss) attributable to shareholders of the Parent Company
Kookmin Bank 1	￦	562,887,180	￦	524,859,860	￦	38,027,320	￦	51,497,328	￦	3,251,759		￦	3,408,978
KB Securities Co., Ltd. 1,2		63,384,389		56,498,405		6,885,984		10,736,175		585,682			630,103
KB Insurance Co., Ltd. 1,2		40,776,375		34,982,351		5,794,024		12,818,501		839,494			(125,414	)
KB Kookmin Card Co., Ltd. 1		30,541,628		25,236,827		5,304,801		4,428,688		402,715			437,030
KB Life Insurance Co., Ltd. 1,2		34,047,554		30,984,400		3,063,154		2,821,601		164,272			(906,210	)
KB Asset Management Co., Ltd. 1		414,942		120,224		294,718		246,184		66,500			67,757
KB Capital Co., Ltd. 1,2		18,115,495		15,654,177		2,461,318		2,620,487		222,041			225,609
KB Real Estate Trust Co., Ltd. 1		1,113,466		627,898		485,568		139,656		(113,332	)		(113,652	)
KB Savings Bank Co., Ltd.		2,575,739		2,393,523		182,216		225,173		(11,366	)		(11,560	)
KB Investment Co., Ltd. 1		1,529,823		1,245,883		283,940		215,834		4,368			4,466
KB Data System Co., Ltd. 1		62,270		40,219		22,051		241,652		1,978			1,149


(In millions of Korean won)
	December 31, 2025						2025
	Assets		Liabilities		Equity		Operating revenue		Profit (loss) attributable to shareholders of the Parent Company			Total comprehensive income (loss) attributable to shareholders of the Parent Company
Kookmin Bank 1	￦	584,934,967	￦	545,979,326	￦	38,955,641	￦	42,528,587	￦	3,852,166		￦	3,636,551
KB Securities Co., Ltd. 1,2		76,461,426		69,572,471		6,888,955		14,139,480		673,856			670,815
KB Insurance Co., Ltd. 1,2		45,377,597		39,725,458		5,652,139		13,758,177		778,228			160,977
KB Kookmin Card Co., Ltd. 1		30,235,710		24,597,933		5,637,777		4,326,397		330,226			355,777
KB Life Insurance Co., Ltd. 1,2		35,585,902		32,795,927		2,789,975		3,402,468		139,329			(20,379	)
KB Asset Management Co., Ltd. 1		697,405		302,373		395,032		325,721		120,203			121,056
KB Capital Co., Ltd. 1,2		18,163,063		15,483,517		2,679,546		2,714,031		235,219			246,223
KB Real Estate Trust Co., Ltd. 1		1,124,017		730,006		394,011		177,039		(78,685	)		(78,296	)
KB Savings Bank Co., Ltd.		2,219,824		2,042,573		177,251		202,415		(4,834	)		(4,950	)
KB Investment Co., Ltd. 1		1,675,994		1,334,136		341,858		353,212		57,918			57,917
KB Data System Co., Ltd. 1		85,289		55,304		29,985		295,401		7,586			7,930

1	Financial information is based on its consolidated financial statements.

2	Includes fair value adjustments arising from the acquisition.

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41.4 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

41.4.1 The Group has provided payment guarantees of ￦3,724,216 million to KBD TOWER 1ST LLC and other consolidated structured entities.

41.4.2 The Group has provided capital commitment to 86 consolidated structured entities including KB Sinansan Line Private Special Asset Fund (SOC). The unexecuted amount of the capital commitment is ￦2,188,449 million. Based on the capital commitment, the Group is subject to increase its investment upon the request of the asset management company or the additional agreement among investors.

41.4.3 The Group has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

41.5 Changes in Subsidiaries

41.5.1 Subsidiaries newly included in consolidation for the year ended December 31, 2025, are as follows:


Company				Reasons for obtaining control
IM Asset General Private Securities Investment Trust No.55(Bond) and 21 others				Holds more than half of the ownership interests
KB Great On 1st.L.L.C. and 44 others				Holds the power in the event of default and is exposed to significant variable returns by providing lines of credit, ABCP purchase commitments or acquisition of subordinated debt
KB HL Infra Private Special Asset Fund 1(FOFs) and 45 others				Holds the power as a general partner and is exposed to variable returns by holding significant amount of ownership interests

41.5.2 Subsidiaries excluded from consolidation for the year ended December 31, 2025, are as follows:


Company				Reasons for losing control
Able Eunhwasam 2nd Co., Ltd. and 36 others				Termination of the commitments
KB High-tech Company Investment Fund and 20 others				Liquidation
Black Sappahire Holdings Co., Ltd. and 1 other				Disposal
KB RISE Global AI Value Chain ETF Moa Dream Securities Fund (FoFs) and 23 others				Decrease in ownership interests to less than majority

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42. Unconsolidated Structured Entities

42.1 Nature, purpose, and activities of the unconsolidated structured entities and how the structured entities are financed, are as follows:


Nature	Purpose	Activity	Method of financing
Structured financing	Granting PF loans to SOC and real estate Granting loans to ships/aircrafts SPC	Construction of SOC and real estate Building ships, construction and purchase of aircrafts	Loan commitments through credit line, providing credit line, and investment agreements

Investment funds	Investment in beneficiary certificates Investment in PEF and partnerships	Management of fund assets Payment of fund fees and allocation of fund profits	Sales of beneficiary certificate instruments Investment from general partners and limited partners

Trusts	Management of financial trusts; — Development trust — General unspecified money trust — Trust whose principal is not guaranteed — Other trusts	Management of trusted financial assets Payment of trust fees and allocation of trust profits.	Sales of trusted financial assets

Asset-backed securitization	Early cash generation through transfer of securitized assets Fees earned through services to SPC, such as providing lines of credit and ABCP purchase commitments	Fulfillment of asset-backed securitization plan Purchase and collection of securitized assets Issuance and repayment of ABS and ABCP	Issuance of ABS and ABCP based on securitized assets

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42.2 Details of scale of unconsolidated structured entities and nature of the risks associated with the Group’s interests in unconsolidated structured entities as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
	Structured financing		Investment funds		Trusts		Asset-backed securitization and others		Total
Total assets of unconsolidated structured entities	￦	157,770,828	￦	1,934,544,704	￦	6,013,014	￦	160,056,159	￦	2,258,384,705
Carrying amount in the financial statements
Assets:
Financial assets at fair value through profit or loss	￦	61,079	￦	17,801,830	￦	152,629	￦	4,432,933	￦	22,448,471
Derivative financial assets		—		4,111		—		7,742		11,853
Loans measured at amortized cost		11,508,337		528,738		100,087		2,998,984		15,136,146
Financial investments		—		—		—		10,438,641		10,438,641
Investments in associates		—		489,021		—		—		489,021
Other assets		4,796		41,398		1,154,232		11,114		1,211,540

	￦	11,574,212	￦	18,865,098	￦	1,406,948	￦	17,889,414	￦	49,735,672

Liabilities:
Deposits	￦	2,512,650	￦	117,624	￦	—	￦	355,442	￦	2,985,716
Derivative financial liabilities		—		8,788		—		—		8,788
Other liabilities		5,302		764		—		1,465		7,531

	￦	2,517,952	￦	127,176	￦	—	￦	356,907	￦	3,002,035

Maximum exposure *
Assets held	￦	11,574,212	￦	18,865,098	￦	1,406,948	￦	17,889,414	￦	49,735,672
Purchase and investment commitments		36,332		6,300,397		27,130		1,046,568		7,410,427
Unused credit		1,554,565		30,568		573		3,788,715		5,374,421
Acceptances and guarantees and loan commitments		974,869		—		—		527,677		1,502,546

	￦	14,139,978	￦	25,196,063	￦	1,434,651	￦	23,252,374	￦	64,023,066

Methods of determining the maximum exposure		Loan commitments / investment agreements / purchase commitments and acceptances and guarantees		Investments / loans and Investment agreements		Trust paying dividends by results: Total amount of trust exposure		Providing credit lines/ purchase commitments/ loan commitments and acceptances and guarantees

*	Maximum exposure includes the asset amounts, after deducting loss (provisions for credit losses, impairment losses, and others), recognized in the consolidated financial statements of the Group.

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(In millions of Korean won)	December 31, 2025
	Structured financing		Investment funds		Trusts		Asset-backed securitization and others		Total
Total assets of unconsolidated structured entities	￦	172,510,235	￦	1,877,784,511	￦	7,173,093	￦	210,559,474	￦	2,268,027,313
Carrying amount in the financial statements
Assets:
Financial assets at fair value through profit or loss	￦	94,366	￦	18,414,039	￦	231,866	￦	4,363,220	￦	23,103,491
Derivative financial assets		—		545		—		—		545
Loans measured at amortized cost		12,622,160		688,991		327,621		3,577,076		17,215,848
Financial investments		—		—		—		9,031,801		9,031,801
Investments in associates		—		793,913		—		—		793,913
Other assets		6,237		4,565		1,189,630		18,499		1,218,931

	￦	12,722,763	￦	19,902,053	￦	1,749,117	￦	16,990,596	￦	51,364,529

Liabilities:
Deposits	￦	2,696,094	￦	6,461	￦	—	￦	460,470	￦	3,163,025
Derivative financial liabilities		—		—		—		—		—
Other liabilities		7,441		52		—		5,514		13,007

	￦	2,703,535	￦	6,513	￦	—	￦	465,984	￦	3,176,032

Maximum exposure *
Assets held	￦	12,722,763	￦	19,902,053	￦	1,749,117	￦	16,990,596	￦	51,364,529
Purchase and investment commitments		15,112		6,025,252		35,815		2,317,179		8,393,358
Unused credit		2,006,957		10,445		573		2,802,632		4,820,607
Acceptances and guarantees and loan commitments		3,121,835		—		—		389,441		3,511,276

	￦	17,866,667	￦	25,937,750	￦	1,785,505	￦	22,499,848	￦	68,089,770

Methods of determining the maximum exposure		Loan commitments / investment agreements / purchase commitments and acceptances and guarantees		Investments / loans and Investment agreements		Trust paying dividends by results: Total amount of trust exposure		Providing credit lines/ purchase commitments/ loan commitments and acceptances and guarantees

*	Maximum exposure includes the asset amounts, after deducting loss (provisions for credit losses, impairment losses, and others), recognized in the consolidated financial statements of the Group.

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43. Related Party Transactions

According to IAS No.24, the Group includes investments in associates, key management personnel (including family members), and post-employment benefit plans of the Group and its related party companies in the scope of related parties. The Group discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the consolidated financial statements. Refer to Note 13 for details of investments in associates and joint ventures.

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)
		2023		2024		2025
Associates and joint ventures
Balhae Infrastructure Company	Fee and commission income	￦	5,101	￦	5,337	￦	7,312
	Interest income		—		—		101
	Provision for credit losses		—		—		200
Korea Credit Bureau Co., Ltd.	Interest expense		1		1		12
	Fee and commission income		776		727		671
	Fee and commission expense		8,444		10,203		11,981
	Insurance income		3		3		4
	Reversal of credit losses		—		2		—
	Provision for credit losses		1		—		—
	Other operating expenses		15		11		9
Incheon Bridge Co., Ltd.	Interest income		10,420		14,006		8,125
	Interest expense		979		986		973
	Fee and commission income		28		34		45
	Fee and commission expense		7		9		12
	Insurance income		219		222		261
	Gains on financial instruments at fair value through profit or loss		334		2,129		—
	Losses on financial instruments at fair value through profit or loss		—		—		1,203
	Reversal of credit losses		—		9		6
	Provision for credit losses		54		—		—
Aju Good Technology Venture Fund	Interest expense		111		3		—
Taeyoungjungkong Co.,Ltd.	Interest income		2		—		—
Star-Lord General Investors Private Real Estate Investment Company No.10	Insurance income		137		116		86
	Interest income		5,934		5,939		5,716
	Interest expense		543		260		767
	Fee and commission income		20		—		—
	Provision for credit losses		4		1		1
	General and administrative expenses		9,720		9,055		11,776
	Other income		—		363		926
	Other expense		—		—		59
KG Capital Co., Ltd. *	Interest income		293		—		—
	Fee and commission income		18		—		—
	Fee and commission expense		1		—		—
	Insurance income		13		—		—
	Other operating expenses		11		—		—
	Reversal of credit losses		55		—		—

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023			2024		2025
Food Factory Co., Ltd.	Interest income		62			317		50
	Interest expense		1			1		1
	Insurance income		9			3		4
	Gains on financial instruments at fair value through profit or loss		43			—		—
	Losses on financial instruments at fair value through profit or loss		—			238		—
	Reversal of credit losses		2			—		—
	Provision for credit losses		—			—		3
Dongjo Co., Ltd.	Interest income		36			34		74
POSCO-KB Shipbuilding Fund	Fee and commission income		(99	)		—		(34	)
Paycoms Co., Ltd. *	Interest income		154			—		—
Big Dipper Co., Ltd.	Fee and commission income		—			—		1
	Fee and commission expense		266			243		263
	Reversal of credit losses		—			—		2
	Provision for credit losses		—			4		—
KB-KDBC Pre-IPO New Technology Business Investment Fund	Interest expense		—			—		1
KB-TS Technology Venture Private Equity Fund	Fee and commission income		324			175		170
KB-SJ Tourism Venture Fund	Fee and commission income		312			272		454
Banksalad Co., Ltd. *	Gains on financial instruments at fair value through profit or loss		—			—		426
	Losses on financial instruments at fair value through profit or loss		—			5,489		—
	Fee and commission income		37			36		57
	Fee and commission expense		11			4		—
Iwon Alloy Co., Ltd.	Insurance income		1			—		—
Bioprotect Ltd.	Gains on financial instruments at fair value through profit or loss		—			627		51
Bioprotect Ltd.	Losses on financial instruments at fair value through profit or loss		—			473		111
RMGP Bio-Pharma Investment Fund, L.P.	Fee and commission income		40			59		46
	Gains on financial instruments at fair value through profit or loss		—			911		—
	Losses on financial instruments at fair value through profit or loss		—			872		3,910
RMGP Bio-Pharma Investment, L.P.	Gains on financial instruments at fair value through profit or loss		—			3		—
RMGP Bio-Pharma Investment, L.P.	Losses on financial instruments at fair value through profit or loss		—			—		1
KB-MDI Centauri Fund L.P.	Fee and commission income		491			452		398
	Gains on financial instruments at fair value through profit or loss		—			2,602		2,459
	Losses on financial instruments at fair value through profit or loss		—			537		669

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024		2025
Hibiscus Fund L.P.	Fee and commission income		928		491		301
	Gains on financial instruments at fair value through profit or loss		—		2,302		1,824
	Losses on financial instruments at fair value through profit or loss		—		500		—
RMG-KB BP Management Ltd.	Gains on financial instruments at fair value through profit or loss		—		36		—
RMG-KB BP Management Ltd.	Losses on financial instruments at fair value through profit or loss		—		—		5
RMG-KB BioAccess Fund L.P.	Fee and commission income		326		344		361
	Gains on financial instruments at fair value through profit or loss		—		824		581
	Losses on financial instruments at fair value through profit or loss		—		1,333		95
S&E Bio Co., Ltd.	Interest income		—		44		76
	Interest expense		43		16		8
	Provision for credit losses		—		16		—
	Reversal of credit losses		—		—		1
Contents First Inc.	Interest income		346		482		388
	Interest expense		73		36		13
	Fee and commission income		2		2		1
	Gains on financial instruments at fair value through profit or loss		—		5,936		—
	Losses on financial instruments at fair value through profit or loss		—		—		1,546
	Provision for credit losses		8		5		12
	Reversal of credit losses		—		1		—
December & Company Inc. *	Insurance income		187		—		—
Pin Therapeutics Inc.	Interest expense		101		154		130
	Provision for credit losses		—		4		—
	Reversal of credit losses		—		—		1
Wyatt Co., Ltd. *	Interest income		—		378		—
	Gains on financial instruments at fair value through profit or loss		—		2,739		1,152
	Insurance income		102		138		40
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund *	Interest expense		4		4		—
	Fee and commission income		209		—		—
Spark Biopharma Inc.	Interest expense		468		293		64
	Provision for credit losses		—		13		—
	Reversal of credit losses		—		—		2
	Gains on financial instruments at fair value through profit or loss		—		3,823		327
	Losses on financial instruments at fair value through profit or loss		—		1,639		411

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024		2025
Skydigital Inc.	Fee and commission income		3		2		3
Il-Kwang Electronic Materials Co., Ltd.	Other non-operating expenses		—		—		1
SO-MYUNG Recycling Co., Ltd.	Insurance income		—		1		1
KB No.21 Special Purpose Acquisition Company *	Gains on financial instruments at fair value through profit or loss		28		136		—
KB No.21 Special Purpose Acquisition Company *	Interest expense		68		75		(1	)
KB No.22 Special Purpose Acquisition Company *	Gains on financial instruments at fair value through profit or loss		1,013		—		—
KB No.22 Special Purpose Acquisition Company *	Interest expense		2		1		—
KB No.23 Special Purpose Acquisition Company *	Losses on financial instruments at fair value through profit or loss		1,483		—		—
KB No.23 Special Purpose Acquisition Company *	Interest expense		46		—		—
KB No.24 Special Purpose Acquisition Company *	Interest expense		7		—		—
KB No.25 Special Purpose Acquisition Company	Interest expense		39		53		38
	Gains on financial instruments at fair value through profit or loss		1,130		—		65
	Losses on financial instruments at fair value through profit or loss		—		175		—
KB No.26 Special Purpose Acquisition Company *	Interest expense		38		57		(29	)
	Gains on financial instruments at fair value through profit or loss		1,209		—		—
	Losses on financial instruments at fair value through profit or loss		—		54		—
KB No.27 Special Purpose Acquisition Company	Interest expense		65		158		136
	Gains on financial instruments at fair value through profit or loss		3,059		—		405
	Losses on financial instruments at fair value through profit or loss		—		177		—
KB No.28 Special Purpose Acquisition Company *	Interest expense		—		45		9
	Fee and commission income		—		175		—
	Gains on financial instruments at fair value through profit or loss		—		1,118		—
KB No.29 Special Purpose Acquisition Company	Fee and commission income		—		210		—
	Gains on financial instruments at fair value through profit or loss		—		1,525		144
	Interest expense		—		43		51
KB No.30 Special Purpose Acquisition Company	Interest expense		—		21		36
	Fee and commission income		—		175		—
	Gains on financial instruments at fair value through profit or loss		—		1,445		58
KB No.31 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		—		2,111		177
	Interest expense		—		13		48
KB No.32 Special Purpose Acquisition Company	Interest expense		—		—		35

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024		2025
KB No.33 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		—		—		2,214
	Interest expense		—		—		26
KB SPROTT Renewable Private Equity Fund No.1	Fee and commission income		320		255		78
KB-Stonebridge Secondary Private Equity Fund	Fee and commission income		582		402		303
	Other operating income		113		—		—
COSES GT Co., Ltd. *	Gains on financial instruments at fair value through profit or loss		—		20		—
	Losses on financial instruments at fair value through profit or loss		4,910		—		—
	Interest income		30		—		—
	Reversal of credit losses		5		—		—
TeamSparta Inc. *	Fee and commission income		11		54		3
	Provision for credit losses		2		—		—
	Reversal of credit losses		—		1		—
	Interest expense		212		165		87
Newavel Co., Ltd.	Fee and commission income		—		—		1
	Losses on financial instruments at fair value through profit or loss		—		3,000		—
SuperNGine Co., Ltd.	Interest income		25		43		29
	Fee and commission income		1		—		—
	Provision for credit losses		6		33		—
	Reversal of credit losses		—		—		40
Desilo Inc.	Interest income		13		14		13
	Provision for credit losses		3		—		—
	Reversal of credit losses		—		—		5
Turing Co., Ltd.	Interest expense		7		29		—
	Interest income		24		61		40
	Provision for credit losses		14		—		—
	Reversal of credit losses		—		8		—
IGGYMOB Co., Ltd.	Losses on financial instruments at fair value through profit or loss		—		5,000		—
ZIPDOC Inc. *	Losses on financial instruments at fair value through profit or loss		—		2,000		—
Grinergy Co., Ltd.	Provision for credit losses		1		2		—
	Reversal of credit losses		—		—		1
	Gains on financial instruments at fair value through profit or loss		—		1,288		—
	Losses on financial instruments at fair value through profit or loss		—		119		357
	Interest expense		1		—		—

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024		2025
Chabot Mobility Co., Ltd. *	Fee and commission income		—		1		1
	Interest expense		—		1		5
	Fee and commission expense		2,154		2,364		2,212
	Gains on financial instruments at fair value through profit or loss		—		579		—
Wemade Connect Co., Ltd.	Insurance income		2		2		6
	Interest expense		316		270		148
	Fee and commission income		—		5		—
	Reversal of credit losses		—		—		17
	Provision for credit losses		9		10		—
	Gains on financial instruments at fair value through profit or loss		—		—		4,391
	Losses on financial instruments at fair value through profit or loss		—		4,827		—
TMAP Mobility Co., Ltd.	Interest expense		1,460		3,077		2,204
	Fee and commission income		2		5		2
	Fee and commission expense		998		1,292		754
	Provision for credit losses		—		3		—
Chabot Mobility Co., Ltd. *	Reversal of credit losses		9		—		—
TMAP Mobility Co., Ltd.	Insurance income		209		1,200		1,744
Nextrade Co., Ltd.	Fee and commission income		—		—		2
	Interest expense		2,911		2,481		685
WJ Private Equity Fund No.1	Fee and commission income		7		7		7
UPRISE, Inc.	Gains on financial instruments at fair value through profit or loss		—		—		163
	Losses on financial instruments at fair value through profit or loss		—		3,893		45
Channel Corporation	Interest expense		67		10		—
	Losses on financial instruments at fair value through profit or loss		—		103		—
	Gains on financial instruments at fair value through profit or loss		—		4,837		8,812
CWhy Inc.	Insurance income		2		9		—
CellinCells Co., Ltd. *	Provision for credit losses		—		2		—
KB Social Impact Investment Fund	Fee and commission income		284		250		200
KB-UTC Inno-Tech Venture Fund	Fee and commission income		431		230		147
	Other operating income		3		—		—
KB-SP Private Equity Fund IV *	Fee and commission income		—		—		63
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Fee and commission income		1,052		619		800
2020 KB Fintech Renaissance Fund	Fee and commission income		147		147		70
KB Material and Parts No.1 PEF *	Fee and commission income		705		175		—
	Other operating income		34		—		—

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024		2025
FineKB Private Equity Fund No.1	Fee and commission income		378		569		340
	Gains on financial instruments at fair value through profit or loss		16		32		—
	Interest expense		—		—		4
Paramark KB Fund No.1	Fee and commission income		129		118		134
KB-Badgers Future Mobility ESG Fund No.1	Fee and commission income		1,300		1,300		1,252
	Gains on financial instruments at fair value through profit or loss		—		1		—
KB-KTB Technology Venture Fund	Fee and commission income		669		342		399
Bluepointpartners Inc.	Gains on financial instruments at fair value through profit or loss		—		—		31
	Losses on financial instruments at fair value through profit or loss		—		237		—
KB-Solidus Global Healthcare Fund	Fee and commission income		284		17		3,781
	Gains on financial instruments at fair value through profit or loss		8,400		700		—
ASSEMBLE CORPORATION	Interest income		88		117		131
	Fee and commission income		1		2		1
	Insurance income		1		2		2
	Provision for credit losses		49		—		—
	Reversal of credit losses		—		20		14
KB Cape No.1 Private Equity Fund *	Fee and commission income		217		37		—
	Gains on financial instruments at fair value through profit or loss		—		82		—
	Losses on financial instruments at fair value through profit or loss		16		—		—
KB-GeneN Medical Venture Fund No.1	Fee and commission income		89		89		89
KB-BridgePole Venture Investment Fund *	Fee and commission income		135		101		—
	Other operating income		638		—		—
KB-BridgePole Venture Investment Fund No.2	Fee and commission income		20		105		105
KB-Kyobo New Mobility Power Fund *	Fee and commission income		79		76		—
KB Co-Investment Private Equity Fund No.1	Fee and commission income		904		1,434		1,900
KB-NP Green ESG New Technology Venture Capital Fund	Fee and commission income		1,173		1,134		1,095
KB-FT Green Growth 1st Technology Investment Association	Fee and commission income		135		136		135
	Interest expense		14		12		—
Spoonlabs Co., Ltd. *	Losses on financial instruments at fair value through profit or loss		—		911		—

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023			2024			2025
Gushcloud Talent Agency	Gains on financial instruments at fair value through profit or loss		—			228			—
KB-SUSUNG 1st Investment Fund	Fee and commission income		129			192			142
KB-SUSUNG 2nd Investment Fund	Fee and commission income		—			78			155
Youngwon Corporation *	Insurance income		1			—			—
Seokwang T&I Co., Ltd.	Insurance income		1			2			1
3D Interactive Co., Ltd.	Fee and commission income		7			1			—
	Interest expense		10			1			—
	Provision for credit losses		2			—			—
	Reversal of credit losses		—			—			1
	Losses on financial instruments at fair value through profit or loss		—			—			2,141
Bigwave Robotics Corp.	Fee and commission income		—			1			—
	Interest income		(1	)		—			—
	Interest expense		1			6			(5	)
	Provision for credit losses		—			—			8
	Gains on financial instruments at fair value through profit or loss		—			—			1,540
U-KB Credit No.1 Private Equity	Fee and commission income		228			970			968
KY Global Cell & Gene Private Equity Fund 2nd *	Interest expense		42			(38	)		—
KB-SOLIDUS Healthcare Investment Fund	Fee and commission income		—			768			860
AKK Robotech Valueup New Technology Investment Fund *	Fee and commission income		—			101			235
New Daegu Busan Expressway Co., Ltd.	Interest income		—			2,458			346
	Reversal of credit losses		—			3			—
	Interest expense		—			3,680			1,797
	Insurance income		—			257			413
AIM FUTURE, Inc.	Interest income		—			44			41
	Interest expense		—			48			1
	Insurance income		—			1			—
	Provision for credit losses		—			3			2
ADP Holdings Co., Ltd.	Interest expense		—			61			45
ADPGREEN	Interest expense		—			26			107
	Provision for credit losses		—			11			—
	Reversal of credit losses		—			—			7
	Insurance income		—			73			169
KB-CJ Venture Fund 1st	Fee and commission income		—			80			150
OKXE Inc.	Gains on financial instruments at fair value through profit or loss		—			1,922			—
Ascent Global Fund III	Gains on financial instruments at fair value through profit or loss		—			261			—
	Losses on financial instruments at fair value through profit or loss		—			—			90

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024			2025
Elev8-Capital Fund I	Gains on financial instruments at fair value through profit or loss		—		1,143			—
Elev8-Capital Fund I	Losses on financial instruments at fair value through profit or loss		—		2,450			2,373
H Energy Co., Ltd *	Gains on financial instruments at fair value through profit or loss		—		3,106			—
XL8 INC.	Gains on financial instruments at fair value through profit or loss		—		721			—
XL8 INC.	Losses on financial instruments at fair value through profit or loss		—		—			140
SDT Inc.	Interest expense		—		13			—
	Gains on financial instruments at fair value through profit or loss		—		527			172
	Losses on financial instruments at fair value through profit or loss		—		—			473
DYNE MEDICAL GROUP Inc.	Interest income		—		26			60
	Interest expense		—		118			33
	Fee and commission income		—		1			1
	Insurance income		—		4			4
	Provision for credit losses		—		22			1
	Reversal of credit losses		—		—			2
Bitgoeul Cheomdan Green 1st Co., Ltd.	Interest expense		—		1			1
Logpresso Inc.	Fee and commission income		—		—			1
Logpresso Inc.	Interest expense		—		3			11
Onheal Co., Ltd.	Interest expense		—		(20	)		—
Onheal Co., Ltd.	Fee and commission income		—		8			—
TriOar Inc.	Interest expense		—		235			98
Blinkers Inc. *	Losses on financial instruments at fair value through profit or loss		—		508			—
KB-VEP Contact Fund	Fee and commission income		—		44			60
SD Speed Co., Ltd.	Insurance income		—		1			1
Xpanner Inc.	Insurance income		—		—			1
	Gains on financial instruments at fair value through profit or loss		—		—			597
	Losses on financial instruments at fair value through profit or loss		—		—			362
KB-Cyrus Tourism Venture Fund	Fee and commission income		—		64			338
Qoala *	Gains on financial instruments at fair value through profit or loss		—		1,097			—
FineKB Private Equity Fund No.2 GCSM Holdings Limited	Fee and commission income		—		122			139
	Gains on financial instruments at fair value through profit or loss		—		5,590			—
	Losses on financial instruments at fair value through profit or loss		—		—			674
MitoImmune Therapeutics	Losses on financial instruments at fair value through profit or loss		—		5,426			1,574

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024		2025
Honest Fund, Inc.	Losses on financial instruments at fair value through profit or loss		—		3,556		60
KB Rejuvenation Fund	Fee and commission income		—		3		150
Allra Fintech Corp.	Provision for credit losses		—		2		2
Allra Fintech Corp.	Interest expense		—		17		4
Yeoulhyulgangho	Interest expense		—		1		8
KB-IMM New Star Real Estate Private Fund I	Fee and commission income		—		—		408
KB-LB Middle Market Enterprises Innovation Private Equity Fund	Fee and commission income		—		—		1,200
Semicolon Susong REITs Co., Ltd.	Interest income		—		—		607
	Fee and commission income		—		—		4,793
	Provision for credit losses		—		—		5
	Insurance income		—		—		20
KB-Novus Genesis Private Equity Fund	Fee and commission income		—		—		104
AIM-KB-DOUBLE Connected Future Investment Fund	Fee and commission income		—		—		30
E&I Holdings *	Fee and commission income		—		—		3,446
WhaTap Laps Inc.	Interest income		—		—		6
	Interest expense		—		—		100
	Gains on financial instruments at fair value through profit or loss		—		—		165
	Losses on financial instruments at fair value through profit or loss		—		—		54
	Provision for credit losses		—		—		28
Streami Inc.	Gains on financial instruments at fair value through profit or loss		—		—		576
ANTIGRAVITY	Losses on financial instruments at fair value through profit or loss		—		—		526
	Interest income		—		—		3
	Provision for credit losses		—		—		1
KB a2z 2025 Fund	Fee and commission income		—		—		24
IMBiologics Corp.	Gains on financial instruments at fair value through profit or loss		—		—		13,144
IMBiologics Corp.	Provision for credit losses		—		—		1
Aculys Pharma, Inc.	Gains on financial instruments at fair value through profit or loss		—		—		3,321
Koru Pharma Co., Ltd.	Interest expense		—		—		2
Koru Pharma Co., Ltd.	Insurance income		—		—		3
Aldaver	Interest expense		—		—		24
K-1 23rd yeoksam Real Estate Investment Trust company Ltd.	Insurance income		—		—		4
Novorex Inc.	Interest expense		—		—		18
Novorex Inc.	Provision for credit losses		—		—		6
Xenohelix Co., Ltd.	Interest income		—		—		27
Xenohelix Co., Ltd.	Provision for credit losses		—		—		7

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43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)
		2023		2024		2025
Al Spera Inc.	Interest expense		—		—		26
enParticle Co., Ltd	Interest expense		—		—		3
Emocog Inc.	Interest expense		—		—		49
Lemontree Inc.	Fee and commission income		—		—		211
	Interest expense		—		—		1
	Fee and commission expense		—		—		64
	Provision for credit losses		—		—		2
ByL	Interest expense		—		—		56
eRoun & company Co., Ltd	Interest expense		—		—		7
Others
Retirement pension	Fee and commission income		1,567		1,720		1,553
Retirement pension	Interest expense		27		47		28

*	Excluded from the Group’s related party as of December 31, 2025.

Meanwhile, the Group purchased installment financial assets, etc. from KG Capital Co., Ltd. amounting to ￦373,044 million for the year ended December 31 2023.

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)		December 31, 2024		December 31, 2025
Associates and joint ventures
Balhae Infrastructure Company	Other assets	￦	1,431	￦	2,596
	Loans measured at amortized cost (gross amount)		—		85,000
	Allowances for credit losses		—		200
	Provisions		—		109
	Other liabilities		—		9
Korea Credit Bureau Co., Ltd.	Loans measured at amortized cost (gross amount)		36		41
	Deposits		40,570		36,968
	Insurance liabilities		1		1
	Other liabilities		—		10
Incheon Bridge Co., Ltd.	Financial assets at fair value through profit or loss		35,411		34,208
	Loans measured at amortized cost (gross amount)		70,012		59,515
	Allowances for credit losses		31		27
	Other assets		389		297
	Deposits		43,867		70,470
	Provisions		40		38
	Insurance liabilities		89		114
	Other liabilities		442		608
Jungdo Co., Ltd.	Deposits		4		4
Aju Good Technology Venture Fund	Deposits		1,809		39
Star-Lord General Investors Private Real Estate Investment Company No.10	Loans measured at amortized cost (gross amount)		149,898		149,597
	Allowances for credit losses		5		7
	Property and equipment		4,356		31,089
	Other assets		8,860		8,330
	Insurance liabilities		35		29
	Other liabilities		5,107		31,053
WJ Private Equity Fund No.1	Other assets		2		2
WJ Private Equity Fund No.1	Deposits		46		36
RAND Bio Science Co., Ltd. *	Deposits		4		—
Food Factory Co., Ltd.	Loans measured at amortized cost (gross amount)		1,764		2,941
	Allowances for credit losses		1		5
	Other assets		4		13
	Deposits		907		604
	Insurance liabilities		8		6
	Other liabilities		1		1
Big Dipper Co., Ltd.	Loans measured at amortized cost (gross amount)		43		23
	Allowances for credit losses		3		1
	Deposits		123		51
	Other assets		—		42
	Other liabilities		8		10

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		39		270
Iwon Alloy Co., Ltd.	Deposits		2		—
RMGP Bio-Pharma Investment Fund, L.P.	Financial assets at fair value through profit or loss		7,205		2,432
	Other assets		—		15
	Other liabilities		3		—
RMGP Bio-Pharma Investment, L.P.	Financial assets at fair value through profit or loss		25		22
Wyatt Co., Ltd. *	Financial assets at fair value through profit or loss		3,000		—
	Deposits		1		—
	Insurance liabilities		78		—
Skydigital Inc.	Deposits		30		1
Banksalad Co., Ltd. *	Financial assets at fair value through profit or loss		2,059		—
Spark Biopharma Inc.	Financial assets at fair value through profit or loss		4,634		4,549
	Loans measured at amortized cost (gross amount)		15		23
	Deposits		4,759		1,145
	Other liabilities		22		2
	Allowances for credit losses		7		8
	Provisions		6		3
UPRISE, Inc.	Financial assets at fair value through profit or loss		1,817		1,934
Stratio, Inc.	Financial assets at fair value through profit or loss		1,000		1,000
Honest Fund, Inc.	Financial assets at fair value through profit or loss		442		382
CellinCells Co., Ltd. *	Financial assets at fair value through profit or loss		2,000		—
	Loans measured at amortized cost (gross amount)		1		3
	Allowances for credit losses		—		1
	Deposits		13		—
	Provisions		1		—
Channel Corporation	Financial assets at fair value through profit or loss		20,141		15,719
Channel Corporation	Deposits		6		—
KB No.21 Special Purpose Acquisition Company *	Financial assets at fair value through profit or loss		3,122		—
	Deposits		2,247		—
	Other liabilities		36		—

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
KB No.25 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		1,850		1,915
	Deposits		1,545		1,604
	Other liabilities		39		2
KB No.26 Special Purpose Acquisition Company *	Financial assets at fair value through profit or loss		2,150		—
	Deposits		1,763		—
	Other liabilities		31		—
KB No.27 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		5,877		6,282
	Deposits		4,613		4,675
	Other liabilities		55		41
KB No.28 Special Purpose Acquisition Company *	Financial assets at fair value through profit or loss		2,113		—
	Deposits		1,910		—
	Other liabilities		45		—
KB No.29 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		3,015		3,159
	Deposits		2,338		2,348
	Other liabilities		43		36
KB No.30 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		2,835		2,893
	Deposits		1,786		1,788
	Other liabilities		20		15
KB No.31 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		4,301		4,478
	Deposits		2,352		2,310
	Other liabilities		13		10
KB No.32 Special Purpose Acquisition Company	Deposits		—		2,315
KB No.32 Special Purpose Acquisition Company	Other liabilities		—		35
KB No.33 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		—		4,304
	Deposits		—		2,835
	Other liabilities		—		25
MitoImmune Therapeutics	Financial assets at fair value through profit or loss		1,574		—
KB-Solidus Global Healthcare Fund	Other assets		—		3,781
Bioprotect Ltd.	Financial assets at fair value through profit or loss		4,628		5,606

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
ASSEMBLE CORPORATION	Financial assets at fair value through profit or loss		4,000		4,000
	Loans measured at amortized cost (gross amount)		2,021		1,862
	Allowances for credit losses		43		30
	Other assets		11		1
	Deposits		18		19
	Other liabilities		1		1
	Provisions		1		—
	Insurance liabilities		1		2
SO-MYUNG Recycling Co., Ltd.	Insurance liabilities		1		3
Go2joy Co., Ltd.	Financial assets at fair value through profit or loss		1,200		1,200
S&E Bio Co., Ltd.	Financial assets at fair value through profit or loss		4,000		4,000
	Loans measured at amortized cost (gross amount)		2,016		2,009
	Other assets		3		3
	Deposits		772		224
	Other liabilities		3		2
	Allowances for credit losses		15		12
	Provisions		2		2
Bluepointpartners Inc.	Financial assets at fair value through profit or loss		1,636		1,667
4N Inc.	Deposits		4		—
Xenohelix Co., Ltd.	Financial assets at fair value through profit or loss		3,100		3,100
	Loans measured at amortized cost (gross amount)		4		555
	Other assets		—		1
	Allowances for credit losses		—		7
	Deposits		302		40
Contents First Inc.	Financial assets at fair value through profit or loss		13,213		11,667
	Loans measured at amortized cost (gross amount)		10,065		10,020
	Allowances for credit losses		12		22
	Other assets		3		3
	Deposits		729		133
	Provisions		—		2
	Other liabilities		4		4
KB-MDI Centauri Fund L.P.	Financial assets at fair value through profit or loss		21,058		19,026
2020 KB Fintech Renaissance Fund	Other assets		37		—
OKXE Inc.	Financial assets at fair value through profit or loss		2,722		2,722

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
Newavel Co., Ltd.	Loans measured at amortized cost (gross amount)		20		—
Newavel Co., Ltd.	Deposits		—		1
Pin Therapeutics Inc.	Loans measured at amortized cost (gross amount)		29		20
	Financial assets at fair value through profit or loss		7,000		7,000
	Deposits		11,133		850
	Other liabilities		117		—
	Allowances for credit losses		3		2
	Provisions		—		1
IMBiologics Corp.	Loans measured at amortized cost (gross amount)		2		1
IMBiologics Corp.	Financial assets at fair value through profit or loss		7,000		13,144
SuperNGine Co., Ltd.	Loans measured at amortized cost (gross amount)		482		16
	Deposits		217		151
	Allowances for credit losses		39		—
	Other assets		1		—
	Financial assets at fair value through profit or loss		1,996		1,996
Desilo Inc.	Financial assets at fair value through profit or loss		3,168		3,168
	Loans measured at amortized cost (gross amount)		300		—
	Allowances for credit losses		5		—
	Deposits		3		2
Turing Co., Ltd.	Financial assets at fair value through profit or loss		3,000		3,000
	Loans measured at amortized cost (gross amount)		900		900
	Allowances for credit losses		6		6
	Other assets		2		2
	Deposits		819		887
Kukka Co., Ltd. *	Financial assets at fair value through profit or loss		2,490		—
Kukka Co., Ltd. *	Insurance liabilities		1		—
ZIPDOC Inc. *	Deposits		1		—
TeamSparta Inc. *	Loans measured at amortized cost (gross amount)		5		—
	Financial assets at fair value through profit or loss		4,001		—
	Provisions		1		—
	Deposits		18,635		—
	Other liabilities		34		—

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
Chabot Mobility Co., Ltd. *	Financial assets at fair value through profit or loss		2,580		—
Chabot Mobility Co., Ltd. *	Deposits		631		—
Wemade Connect Co., Ltd.	Financial assets at fair value through profit or loss		7,466		11,857
	Loans measured at amortized cost (gross amount)		29		2
	Allowances for credit losses		9		—
	Provisions		14		6
	Deposits		5,465		5,525
	Insurance liabilities		4		2
	Other liabilities		38		22
Nextrade Co., Ltd.	Loans measured at amortized cost (gross amount)		—		131
	Deposits		15,281		278
	Other liabilities		1,579		—
TMAP Mobility Co., Ltd.	Loans measured at amortized cost (gross amount)		73		116
	Allowances for credit losses		1		2
	Deposits		100,010		1
	Insurance liabilities		235		1
	Other liabilities		548		178
	Provisions		5		5
FutureConnect Co., Ltd. *	Financial assets at fair value through profit or loss		1,499		—
Grinergy Co., Ltd.	Loans measured at amortized cost (gross amount)		1		2
	Financial assets at fair value through profit or loss		—		7,297
	Allowances for credit losses		—		2
	Provisions		2		—
NexThera Co., Ltd.	Financial assets at fair value through profit or loss		3,000		3,000
FineKB Private Equity Fund No.1	Other assets		144		10
Paramark KB Fund No.1	Other liabilities		45		50
KB Social Impact Investment Fund	Other assets		250		200
Checkmate Therapeutics Inc.	Financial assets at fair value through profit or loss		3,200		3,200
Checkmate Therapeutics Inc.	Insurance liabilities		3		8
Hibiscus Fund L.P.	Financial assets at fair value through profit or loss		14,717		16,540
Hibiscus Fund L.P.	Other assets		210		316
RMG-KB BioAccess Fund L.P.	Financial assets at fair value through profit or loss		9,379		15,709
RMG-KB BP Management Ltd.	Financial assets at fair value through profit or loss		344		494

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
KB Co-Investment Private Equity Fund No.1	Other assets		302		500
Spoonlabs Co., Ltd. *	Financial assets at fair value through profit or loss		15,006		—
Neuroptika Inc.	Financial assets at fair value through profit or loss		5,879		5,879
Bitgoeul Cheomdan Green 1st Co., Ltd.	Deposits		1,239		1,242
Bigwave Robotics Corp.	Loans measured at amortized cost (gross amount)		39		60
	Financial assets at fair value through profit or loss		2,750		4,290
	Allowances for credit losses		—		7
	Deposits		501		364
	Provisions		—		2
	Other liabilities		6		—
3D Interactive Co., Ltd.	Loans measured at amortized cost (gross amount)		6		2
	Provisions		2		—
	Financial assets at fair value through profit or loss		2,300		159
	Deposits		1,779		48
XL8 INC.	Financial assets at fair value through profit or loss		5,869		5,729
Elev8-Capital Fund I	Financial assets at fair value through profit or loss		16,250		13,877
New Daegu Busan Expressway Co., Ltd.	Loans measured at amortized cost (gross amount)		24,264		15
	Allowances for credit losses		4		4
	Other assets		22		—
	Deposits		150,007		115,401
	Other liabilities		1,928		43
	Insurance liabilities		22		27
AIM FUTURE, Inc.	Financial assets at fair value through profit or loss		2,000		2,000
	Loans measured at amortized cost (gross amount)		908		906
	Allowances for credit losses		5		5
	Other assets		1		1
	Deposits		760		140
	Provisions		—		2
Novorex Inc.	Financial assets at fair value through profit or loss		2,000		4,000
	Loans measured at amortized cost (gross amount)		8		14
	Allowances for credit losses		—		4
	Other liabilities		—		4
	Provisions		—		2
	Deposits		6		9,674

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
Seokwang T&I Co., Ltd	Insurance liabilities		2		2
ADP Holdings Co., Ltd.	Deposits		2,058		263
ADP Holdings Co., Ltd.	Other liabilities		7		1
ADPGREEN	Loans measured at amortized cost (gross amount)		25		23
	Deposits		1,802		5,302
	Other liabilities		8		33
	Allowances for credit losses		8		3
	Provisions		3		1
	Insurance liabilities		101		94
Logpresso Inc.	Financial assets at fair value through profit or loss		3,000		9,000
	Loans measured at amortized cost (gross amount)		31		40
	Deposits		457		7,576
	Other liabilities		—		10
Onheal Co., Ltd.	Financial assets at fair value through profit or loss		10,000		10,000
Onheal Co., Ltd.	Deposits		5,001		—
Ascent Global Fund III	Financial assets at fair value through profit or loss		3,767		3,677
DYNE MEDICAL GROUP Inc.	Financial assets at fair value through profit or loss		3,001		3,001
	Loans measured at amortized cost (gross amount)		2,022		2,033
	Allowances for credit losses		16		16
	Provisions		6		5
	Other assets		1		1
	Deposits		3,813		356
	Other liabilities		23		6
	Insurance liabilities		1		1
TriOar Inc.	Financial assets at fair value through profit or loss		3,000		5,000
	Loans measured at amortized cost (gross amount)		16		12
	Deposits		6,054		4,088
	Other liabilities		73		20
Coxwave Co., Ltd.	Financial assets at fair value through profit or loss		3,000		3,000
SDT Inc.	Financial assets at fair value through profit or loss		3,105		3,873
Yeoulhyulgangho	Financial assets at fair value through profit or loss		500		500
	Deposits		456		783
	Other liabilities		—		2
KB-VEP Contact Fund	Other assets		15		15

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
Xpanner Inc.	Financial assets at fair value through profit or loss		9,673		9,908
Xpanner Inc.	Insurance liabilities		1		10
SD Speed Co., Ltd.	Insurance liabilities		1		1
Allra Fintech Corp.	Loans measured at amortized cost (gross amount)		—		26
	Allowances for credit losses		—		3
	Deposits		1,671		33
	Other liabilities		1		—
	Provisions		2		—
GCSM Holdings Limited	Financial assets at fair value through profit or loss		9,506		8,833
KB Rejuvenation Fund	Other assets		3		38
Qoala *	Financial assets at fair value through profit or loss		6,554		—
FineKB Private Equity Fund No.2	Other assets		35		35
Koru Pharma Co., Ltd.	Financial assets at fair value through profit or loss		—		7,890
	Deposits		—		197
	Insurance liabilities		—		12
WhaTap Laps Inc.	Loans measured at amortized cost (gross amount)		—		1,091
	Financial assets at fair value through profit or loss		—		6,259
	Other assets		—		1
	Allowances for credit losses		—		16
	Provisions		—		11
	Deposits		—		2,814
	Other liabilities		—		75
Streami Inc.	Financial assets at fair value through profit or loss		—		3,047
Lemontree Inc.	Financial assets at fair value through profit or loss		—		999
	Deposits		—		536
	Provisions		—		2
GAME TALES	Financial assets at fair value through profit or loss		—		3,000
HyperAccel Co., Ltd.	Financial assets at fair value through profit or loss		—		8,500
Aldaver	Financial assets at fair value through profit or loss		—		2,000
	Deposits		—		821
	Other liabilities		—		4
enParticle Co., Ltd	Financial assets at fair value through profit or loss		—		2,000
enParticle Co., Ltd	Deposits		—		1,696

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43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)		December 31, 2024		December 31, 2025
ALL ROUND DOCTORS Inc.	Financial assets at fair value through profit or loss		—		2,000
Emocog Inc.	Financial assets at fair value through profit or loss		—		4,000
Emocog Inc.	Deposits		—		704
ANTIGRAVITY	Financial assets at fair value through profit or loss		—		374
	Loans measured at amortized cost (gross amount)		—		38
	Allowances for credit losses		—		1
	Deposits		—		82
ByL	Financial assets at fair value through profit or loss		—		14,967
	Deposits		—		8,968
	Other liabilities		—		55
KB a2z 2025 Fund	Other assets		—		24
Semicolon Susong REITs Co., Ltd.	Loans measured at amortized cost (gross amount)		—		24,933
	Allowances for credit losses		—		5
	Other assets		—		173
	Insurance liabilities		—		9
K-1 23rd yeoksam Real Estate Investment Trust company Ltd.	Insurance liabilities		—		3
IMT TECHNOLOGY CO., LTD.	Insurance liabilities		—		1
VP Inc.	Loans measured at amortized cost (gross amount)		—		2
	Other liabilities		—		109
	Insurance liabilities		—		1
	Deposits		—		51
eRoun & company Co., Ltd	Deposits		—		1,127
eRoun & company Co., Ltd	Other liabilities		—		7
RUMIKEU Holdings Inc.	Deposits		—		11
Key management personnel
Key management personnel	Loans measured at amortized cost (gross amount)		7,125		9,248
	Allowances for credit losses		3		24
	Other assets		8		9
	Deposits		15,365		12,740
	Provisions		1		1
	Insurance liabilities		2,308		2,927
	Other liabilities		555		362
Others
Retirement pension	Other assets		739		632
	Other liabilities		1,215		1,154

*	Excluded from the Group’s related party as of December 31, 2025, therefore, the remaining outstanding balances with those entities are not disclosed.

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43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning		Loan		Collection			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	￦	37	￦	36	￦	(37	)	￦	36
Incheon Bridge Co., Ltd.		113,794		2,141		(10,512	)		105,423
Star-Lord General Investors Private Real Estate Investment Company No.10		149,590		308		—			149,898
KB Cape No.1 Private Equity Fund *		1,935		—		(1,935	)		—
RAND Bio Science Co., Ltd. *		1		—		(1	)		—
Food Factory Co., Ltd.		2,875		9		(1,120	)		1,764
Big Dipper Co., Ltd.		14		43		(14	)		43
RMGP Bio-Pharma Investment Fund, L.P.		5,938		1,267		—			7,205
RMGP Bio-Pharma Investment, L.P.		20		5		—			25
Wyatt Co., Ltd. *		6,000		—		(3,000	)		3,000
Banksalad Co., Ltd. *		9,148		—		(7,089	)		2,059
UPRISE, Inc.		5,710		—		(3,893	)		1,817
Stratio, Inc.		1,000		—		—			1,000
Honest Fund, Inc.		3,999		—		(3,557	)		442
CellinCells Co., Ltd. *		2,003		1		(3	)		2,001
KB No.21 Special Purpose Acquisition Company *		2,987		135		—			3,122
KB No.22 Special Purpose Acquisition Company *		2,985		—		(2,985	)		—
KB No.25 Special Purpose Acquisition Company		2,025		—		(175	)		1,850
KB No.26 Special Purpose Acquisition Company *		2,204		—		(54	)		2,150
KB No.27 Special Purpose Acquisition Company		6,054		—		(177	)		5,877
KB No.28 Special Purpose Acquisition Company *		—		2,113		—			2,113
KB No.29 Special Purpose Acquisition Company		—		3,015		—			3,015
KB No.30 Special Purpose Acquisition Company		—		2,835		—			2,835
KB No.31 Special Purpose Acquisition Company		—		4,301		—			4,301
COSES GT Co., Ltd. *		1		—		(1	)		—
Channel Corporation		16,906		3,235		—			20,141
MitoImmune Therapeutics		7,000		—		(5,426	)		1,574
Bioprotect Ltd.		4,474		154		—			4,628
ASSEMBLE CORPORATION		6,155		21		(155	)		6,021
Go2joy Co., Ltd.		1,200		—		—			1,200
S&E Bio Co., Ltd.		4,013		2,016		(13	)		6,016
Bluepointpartners Inc.		1,874		—		(238	)		1,636
Xenohelix Co., Ltd.		3,100		4		—			3,104
Contents First Inc.		17,642		7,001		(1,365	)		23,278
KB-MDI Centauri Fund L.P.		18,993		2,065		—			21,058
OKXE Inc.		800		1,922		—			2,722
Checkmate Therapeutics Inc.		3,200		—		—			3,200
Newavel Co., Ltd.		3,013		20		(3,013	)		20
IMBiologics Corp.		7,005		2		(5	)		7,002
Spark Biopharma Inc.		7,467		15		(2,833	)		4,649
Pin Therapeutics Inc.		5,011		2,029		(11	)		7,029
Hibiscus Fund L.P.		12,915		1,802		—			14,717
SuperNGine Co., Ltd.		2,599		2		(123	)		2,478
Desilo Inc.		3,468		—		—			3,468

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43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024
	Beginning		Loan		Collection			Ending
RMG-KB BioAccess Fund L.P.		5,036		4,343		—			9,379
RMG-KB BP Management Ltd.		174		170		—			344
IGGYMOB Co., Ltd.		5,007		—		(5,007	)		—
Turing Co., Ltd.		4,901		—		(1,001	)		3,900
Kukka Co., Ltd. *		2,490		—		—			2,490
ZIPDOC Inc. *		2,000		—		(2,000	)		—
Gushcloud Talent Agency		3,688		—		(3,688	)		—
Grinergy Co., Ltd.		6,486		1		(6,486	)		1
NexThera Co., Ltd.		3,000		—		—			3,000
Chabot Mobility Co., Ltd. *		2,000		580		—			2,580
TeamSparta Inc. *		4,308		5		(307	)		4,006
FutureConnect Co., Ltd. *		1,499		—		—			1,499
Wemade Connect Co., Ltd.		12,337		29		(4,871	)		7,495
TMAP Mobility Co., Ltd.		106		73		(106	)		73
Spoonlabs Co., Ltd. *		19,506		—		(4,500	)		15,006
Neuroptika Inc.		5,879		—		—			5,879
Bigwave Robotics Corp.		2,781		39		(31	)		2,789
Blinkers Inc. *		999		—		(999	)		—
3D Interactive Co., Ltd.		2,342		6		(42	)		2,306
XL8 INC.		5,148		721		—			5,869
Elev8-Capital Fund I		6,656		9,594		—			16,250
AIM FUTURE, Inc.		2,900		8		—			2,908
New Daegu Busan Expressway Co., Ltd.		72,742		27		(48,505	)		24,264
Novorex Inc.		2,000		8		—			2,008
Logpresso Inc.		—		3,031		—			3,031
Onheal Co., Ltd.		—		10,000		—			10,000
Ascent Global Fund III		—		3,767		—			3,767
DYNE MEDICAL GROUP Inc.		—		5,023		—			5,023
TriOar Inc.		—		3,016		—			3,016
Coxwave Co., Ltd.		—		3,000		—			3,000
SDT Inc.		—		3,105		—			3,105
Yeoulhyulgangho		—		500		—			500
ADPGREEN		—		25		—			25
Xpanner Inc.		—		9,673		—			9,673
GCSM Holdings Limited		—		9,506		—			9,506
Qoala *		—		6,554		—			6,554
Key management personnel
Key management personnel		5,490		7,245		(5,610	)		7,125

*	Excluded from the Group’s related party as of December 31, 2024.

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43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Beginning		Loan		Collection			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	￦	36	￦	41	￦	(36	)	￦	41
Incheon Bridge Co., Ltd.		105,423		15		(11,715	)		93,723
Star-Lord General Investors Private Real Estate Investment Company No.10		149,898		150,000		(150,301	)		149,597
Food Factory Co., Ltd.		1,764		1,514		(337	)		2,941
Big Dipper Co., Ltd.		43		23		(43	)		23
RMGP Bio-Pharma Investment Fund, L.P.		7,205		—		(4,773	)		2,432
RMGP Bio-Pharma Investment, L.P.		25		—		(3	)		22
Wyatt Co., Ltd. *		3,000		—		(3,000	)		—
Banksalad Co., Ltd. *		2,059		—		(2,059	)		—
UPRISE, Inc.		1,817		117		—			1,934
Stratio, Inc.		1,000		—		—			1,000
Honest Fund, Inc.		442		—		(60	)		382
CellinCells Co., Ltd. *		2,001		3		(2,001	)		3
KB No.21 Special Purpose Acquisition Company *		3,122		—		(3,122	)		—
KB No.25 Special Purpose Acquisition Company		1,850		65		—			1,915
KB No.26 Special Purpose Acquisition Company *		2,150		—		(2,150	)		—
KB No.27 Special Purpose Acquisition Company		5,877		405		—			6,282
KB No.28 Special Purpose Acquisition Company *		2,113		—		(2,113	)		—
KB No.29 Special Purpose Acquisition Company		3,015		144		—			3,159
KB No.30 Special Purpose Acquisition Company		2,835		58		—			2,893
KB No.31 Special Purpose Acquisition Company		4,301		177		—			4,478
KB No.33 Special Purpose Acquisition Company		—		4,304		—			4,304
Channel Corporation		20,141		—		(4,422	)		15,719
MitoImmune Therapeutics		1,574		—		(1,574	)		—
Bioprotect Ltd.		4,628		978		—			5,606
ASSEMBLE CORPORATION		6,021		12		(171	)		5,862
Go2joy Co., Ltd.		1,200		—		—			1,200
S&E Bio Co., Ltd.		6,016		9		(16	)		6,009
Bluepointpartners Inc.		1,636		31		—			1,667
Xenohelix Co., Ltd.		3,104		555		(4	)		3,655
Contents First Inc.		23,278		20		(1,611	)		21,687
KB-MDI Centauri Fund L.P.		21,058		—		(2,032	)		19,026
OKXE Inc.		2,722		—		—			2,722
Checkmate Therapeutics Inc.		3,200		—		—			3,200
Newavel Co., Ltd.		20		—		(20	)		—
IMBiologics Corp.		7,002		6,145		(2	)		13,145
Spark Biopharma Inc.		4,649		23		(100	)		4,572
Pin Therapeutics Inc.		7,029		20		(29	)		7,020
Hibiscus Fund L.P.		14,717		1,823		—			16,540
SuperNGine Co., Ltd.		2,478		16		(482	)		2,012
Desilo Inc.		3,468		—		(300	)		3,168
RMG-KB BioAccess Fund L.P.		9,379		6,330		—			15,709
RMG-KB BP Management Ltd.		344		150		—			494
Turing Co., Ltd.		3,900		—		—			3,900

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43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Beginning		Loan		Collection			Ending
Kukka Co., Ltd. *		2,490		—		(2,490	)		—
Grinergy Co., Ltd.		1		7,298		—			7,299
NexThera Co., Ltd.		3,000		—		—			3,000
Chabot Mobility Co., Ltd. *		2,580		—		(2,580	)		—
TeamSparta Inc. *		4,006		—		(4,006	)		—
FutureConnect Co., Ltd. *		1,499		—		(1,499	)		—
Wemade Connect Co., Ltd.		7,495		4,393		(29	)		11,859
TMAP Mobility Co., Ltd.		73		116		(73	)		116
Spoonlabs Co., Ltd. *		15,006		—		(15,006	)		—
Neuroptika Inc.		5,879		—		—			5,879
Bigwave Robotics Corp.		2,789		1,600		(39	)		4,350
3D Interactive Co., Ltd.		2,306		2		(2,147	)		161
XL8 INC.		5,869		—		(140	)		5,729
Elev8-Capital Fund I		16,250		—		(2,373	)		13,877
AIM FUTURE, Inc.		2,908		6		(8	)		2,906
New Daegu Busan Expressway Co., Ltd.		24,264		18		(24,267	)		15
Novorex Inc.		2,008		2,014		(8	)		4,014
Logpresso Inc.		3,031		6,040		(31	)		9,040
Onheal Co., Ltd.		10,000		—		—			10,000
Ascent Global Fund III		3,767		—		(90	)		3,677
DYNE MEDICAL GROUP Inc.		5,023		33		(22	)		5,034
TriOar Inc.		3,016		2,012		(16	)		5,012
Coxwave Co., Ltd.		3,000		—		—			3,000
SDT Inc.		3,105		768		—			3,873
Yeoulhyulgangho		500		—		—			500
ADPGREEN		25		23		(25	)		23
Xpanner Inc.		9,673		235		—			9,908
GCSM Holdings Limited		9,506		—		(673	)		8,833
Qoala *		6,554		—		(6,554	)		—
Koru Pharma Co., Ltd.		—		7,890		—			7,890
WhaTap Laps Inc.		—		7,350		—			7,350
Lemontree Inc.		—		999		—			999
GAME TALES		—		3,000		—			3,000
Streami Inc.		—		3,047		—			3,047
ANTIGRAVITY		—		419		(7	)		412
HyperAccel Co., Ltd.		—		8,500		—			8,500
Aldaver		—		2,000		—			2,000
enParticle Co., Ltd		—		2,000		—			2,000
ALL ROUND DOCTORS Inc.		—		2,000		—			2,000
Emocog Inc.		—		4,000		—			4,000
ByL		—		14,967		—			14,967
Allra Fintech Corp.		—		26		—			26
Nextrade Co., Ltd.		—		131		—			131
VP Inc.		—		2		—			2
Balhae Infrastructure Company		—		85,000		—			85,000
Semicolon Susong REITs Co., Ltd.		—		25,000		(67	)		24,933
Key management personnel
Key management personnel		7,125		6,710		(4,587	)		9,248

*	Excluded from the Group’s related party as of December 31, 2025.

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43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024
	Beginning		Borrowing		Repayment			Others 1			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	￦	17,003	￦	—	￦	—		￦	23,567		￦	40,570
Incheon Bridge Co., Ltd.		40,992		72,000		(74,300	)		5,175			43,867
Jungdo Co., Ltd.		4		—		—			—			4
Dae-A Leisure Co., Ltd.		150		—		—			(150	)		—
Iwon Alloy Co., Ltd.		1		—		—			1			2
Skydigital Inc.		65		—		—			(35	)		30
Aju Good Technology Venture Fund		1,202		—		—			607			1,809
KB-KDBC Pre-IPO New Technology Business Investment Fund		46		—		—			(7	)		39
WJ Private Equity Fund No.1		103		—		—			(57	)		46
KB No.21 Special Purpose Acquisition Company 2		2,261		2,115		(2,050	)		(79	)		2,247
KB No.22 Special Purpose Acquisition Company 2		1,848		—		—			(1,848	)		—
KB No.25 Special Purpose Acquisition Company		1,586		1,545		(1,500	)		(86	)		1,545
KB No.26 Special Purpose Acquisition Company 2		1,761		1,724		(1,670	)		(52	)		1,763
KB No.27 Special Purpose Acquisition Company		4,497		4,532		(4,390	)		(26	)		4,613
KB No.28 Special Purpose Acquisition Company 2		—		1,890		—			20			1,910
KB No.29 Special Purpose Acquisition Company		—		2,100		—			238			2,338
KB No.30 Special Purpose Acquisition Company		—		1,500		—			286			1,786
KB No.31 Special Purpose Acquisition Company		—		2,000		—			352			2,352
RAND Bio Science Co., Ltd. 2		4		—		—			—			4
Food Factory Co., Ltd.		629		—		—			278			907
Big Dipper Co., Ltd.		40		—		—			83			123
Wyatt Co., Ltd. 2		1		—		—			—			1
CellinCells Co., Ltd. 2		37		—		—			(24	)		13
COSES GT Co., Ltd. 2		1		—		—			(1	)		—
ASSEMBLE CORPORATION		78		—		—			(60	)		18
S&E Bio Co., Ltd.		2,342		990		(1,490	)		(1,070	)		772
4N Inc.		49		—		—			(45	)		4
Contents First Inc.		1,072		—		—			(343	)		729
Newavel Co., Ltd.		46		—		—			(46	)		—
Pin Therapeutics Inc.		265		14,000		(4,000	)		868			11,133
Spark Biopharma Inc.		11,419		32,649		(38,908	)		(401	)		4,759
SuperNGine Co., Ltd.		69		—		—			148			217
Desilo Inc.		3		—		—			—			3
Turing Co., Ltd.		1,726		1,000		(1,700	)		(207	)		819
TMAP Mobility Co., Ltd.		80,016		360,000		(340,000	)		(6	)		100,010
KY Global Cell & Gene Private Equity Fund 2nd 2		3,790		2,910		(308	)		(6,392	)		—
Nextrade Co., Ltd.		56,203		6,000		(47,200	)		278			15,281
ZIPDOC Inc. 2		181		—		—			(180	)		1
TeamSparta Inc. 2		7,672		3,000		(6,000	)		13,963			18,635
Chabot Mobility Co., Ltd. 2		164		300		—			167			631
Wemade Connect Co., Ltd.		8,843		24,056		(27,556	)		122			5,465
Channel Corporation		2,030		—		(2,000	)		(24	)		6
Bitgoeul Cheomdan Green 1st Co., Ltd.		833		—		—			406			1,239

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43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024
	Beginning		Borrowing		Repayment			Others 1			Ending
KB-FT Green Growth 1st Technology Investment Association		700		—		(700	)		—			—
Bigwave Robotics Corp.		4		501		—			(4	)		501
3D Interactive Co., Ltd.		1,501		—		—			278			1,779
AIM FUTURE, Inc.		3,393		1,000		(4,000	)		367			760
New Daegu Busan Expressway Co., Ltd.		146,169		104,500		(93,932	)		(6,730	)		150,007
Novorex Inc.		7		—		—			(1	)		6
Xenohelix Co., Ltd.		904		—		—			(602	)		302
ADP Holdings Co., Ltd.		—		6,094		(4,037	)		1			2,058
ADPGREEN		—		10,551		(9,001	)		252			1,802
Logpresso Inc.		—		100		(200	)		557			457
DYNE MEDICAL GROUP Inc.		—		5,150		(7,800	)		6,463			3,813
Onheal Co., Ltd.		—		—		—			5,001			5,001
TriOar Inc.		—		10,500		(8,500	)		4,054			6,054
Yeoulhyulgangho		—		200		—			256			456
SDT Inc.		—		—		(1,000	)		1,000			—
Allra Fintech Corp.		—		12,500		(19,500	)		8,671			1,671
Key management personnel
Key management personnel		15,902		26,709		(22,264	)		(4,982	)		15,365

1	Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount.

2	Excluded from the Group’s related party as of December 31, 2024.

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43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Beginning		Borrowing		Repayment			Others 1			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	￦	40,570	￦	1,000	￦	—		￦	(4,602	)	￦	36,968
Incheon Bridge Co., Ltd.		43,867		66,100		(39,500	)		3			70,470
Jungdo Co., Ltd.		4		—		—			—			4
Iwon Alloy Co., Ltd.		2		—		—			(2	)		—
Skydigital Inc.		30		—		—			(29	)		1
Aju Good Technology Venture Fund		1,809		—		—			(1,770	)		39
KB-KDBC Pre-IPO New Technology Business Investment Fund		39		—		—			231			270
WJ Private Equity Fund No.1		46		—		—			(10	)		36
KB No.21 Special Purpose Acquisition Company 2		2,247		—		(2,115	)		(132	)		—
KB No.25 Special Purpose Acquisition Company		1,545		3,016		(3,045	)		88			1,604
KB No.26 Special Purpose Acquisition Company 2		1,763		—		(110	)		(1,653	)		—
KB No.27 Special Purpose Acquisition Company		4,613		4,600		(4,532	)		(6	)		4,675
KB No.28 Special Purpose Acquisition Company 2		1,910		—		—			(1,910	)		—
KB No.29 Special Purpose Acquisition Company		2,338		2,148		(2,100	)		(38	)		2,348
KB No.30 Special Purpose Acquisition Company		1,786		1,535		(1,500	)		(33	)		1,788
KB No.31 Special Purpose Acquisition Company		2,352		2,000		(2,000	)		(42	)		2,310
KB No.32 Special Purpose Acquisition Company		—		2,000		—			315			2,315
KB No.33 Special Purpose Acquisition Company		—		2,400		—			435			2,835
RAND Bio Science Co., Ltd. 2		4		—		—			(4	)		—
Food Factory Co., Ltd.		907		—		—			(303	)		604
Big Dipper Co., Ltd.		123		—		—			(72	)		51
Wyatt Co., Ltd. 2		1		—		—			(1	)		—
CellinCells Co., Ltd. 2		13		—		—			(13	)		—
ASSEMBLE CORPORATION		18		—		—			1			19
S&E Bio Co., Ltd.		772		1,180		(1,180	)		(548	)		224
4N Inc.		4		—		—			(4	)		—
Contents First Inc.		729		—		—			(596	)		133
Newavel Co., Ltd.		—		—		—			1			1
Pin Therapeutics Inc.		11,133		2,000		(12,000	)		(283	)		850
Spark Biopharma Inc.		4,759		10,016		(13,113	)		(517	)		1,145
SuperNGine Co., Ltd.		217		—		—			(66	)		151
Desilo Inc.		3		—		(1	)		—			2
Turing Co., Ltd.		819		—		—			68			887
TMAP Mobility Co., Ltd.		100,010		344,626		(445,626	)		991			1
Nextrade Co., Ltd.		15,281		—		(15,000	)		(3	)		278
ZIPDOC Inc. 2		1		—		—			(1	)		—

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43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2025
	Beginning		Borrowing		Repayment			Others 1			Ending
TeamSparta Inc. 2		18,635		—		(1,000	)		(17,635	)		—
Chabot Mobility Co., Ltd. 2		631		—		(300	)		(331	)		—
Wemade Connect Co., Ltd.		5,465		9,069		(10,000	)		991			5,525
Channel Corporation		6		—		—			(6	)		—
Bitgoeul Cheomdan Green 1st Co., Ltd.		1,239		—		—			3			1,242
Bigwave Robotics Corp.		501		—		(501	)		364			364
3D Interactive Co., Ltd.		1,779		—		—			(1,731	)		48
AIM FUTURE, Inc.		760		—		—			(620	)		140
New Daegu Busan Expressway Co., Ltd.		150,007		61,000		(130,500	)		34,894			115,401
Novorex Inc.		6		—		—			9,668			9,674
Xenohelix Co., Ltd.		302		—		—			(262	)		40
ADP Holdings Co., Ltd.		2,058		10,496		(12,293	)		2			263
ADPGREEN		1,802		12,200		(8,650	)		(50	)		5,302
Logpresso Inc.		457		8,374		(974	)		(281	)		7,576
DYNE MEDICAL GROUP Inc.		3,813		3,800		(6,300	)		(957	)		356
Onheal Co., Ltd.		5,001		—		—			(5,001	)		—
TriOar Inc.		6,054		4,000		(7,000	)		1,034			4,088
Yeoulhyulgangho		456		1,860		(1,560	)		27			783
Allra Fintech Corp.		1,671		2,000		(3,000	)		(638	)		33
Koru Pharma Co., Ltd.		—		300		(200	)		97			197
Emocog Inc.		—		4,000		(4,000	)		704			704
WhaTap Laps Inc.		—		—		—			2,814			2,814
Aldaver		—		1,638		(1,632	)		815			821
Lemontree Inc.		—		—		—			536			536
enParticle Co., Ltd		—		—		—			1,696			1,696
ANTIGRAVITY		—		—		—			82			82
FineKB Private Equity Fund No.1		—		1,000		(1,000	)		—			—
ByL		—		5,000		(2,000	)		5,968			8,968
eRoun & company Co., Ltd		—		—		—			1,127			1,127
VP Inc.		—		—		—			51			51
RUMIKEU Holdings Inc.		—		—		—			11			11
Key management personnel
Key management personnel		15,365		26,948		(28,201	)		(1,372	)		12,740

1	Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount.

2	Excluded from the Group’s related party as of December 31, 2025.

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43.5 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	2024				2025
	Equity investment and others		Withdrawal and others		Equity investment and others		Withdrawal and others
Balhae Infrastructure Company	￦	—	￦	6,350	￦	—	￦	9,321
POSCO-KB Shipbuilding Fund		—		—		—		250
KB-KDBC Pre-IPO New Technology Business Investment Fund		—		600		—		3,060
KB-SJ Tourism Venture Fund		—		4,030		—		190
Korea Credit Bureau Co., Ltd.		—		90		—		90
KB-UTC Inno-Tech Venture Fund		—		338		—		3,786
KB-Solidus Global Healthcare Fund		—		700		—		14,437
KB-Stonebridge Secondary Private Equity Fund		—		1,004		—		4,944
KB SPROTT Renewable Private Equity Fund No.1		—		8,349		—		8,309
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		8,964		9,629		3,820		3,918
2020 KB Fintech Renaissance Fund		—		—		—		165
KB Material and Parts No.1 PEF *		—		3,400		—		—
KB-TS Technology Venture Private Equity Fund		125		2,464		41		—
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund *		—		3,915		—		—
Aju Good Technology Venture Fund		—		2,120		—		780
G payment Joint Stock Company		—		6,445		—		135
KB-KTB Technology Venture Fund		5,600		1		—		224
KB-SOLIDUS Healthcare Investment Fund		23,270		65		24,067		—
Paramark KB Fund No.1		8,130		—		5,490		411
FineKB Private Equity Fund No.1		6,790		1,500		2,335		11,875
FineKB Private Equity Fund No.2		500		250		—		—
KB No.21 Special Purpose Acquisition Company *		—		—		—		10
KB No.22 Special Purpose Acquisition Company *		—		10		—		—
KB-SP Private Equity Fund IV *		—		—		—		2,495
KB-BridgePole Venture Investment Fund *		—		136		—		—
KB-Kyobo New Mobility Power Fund *		—		3,000		—		—
JS Private Equity Fund No.3		—		755		—		749
Star-Lord General Investors Private Real Estate Investment Company No.10		—		358		—		—
KB Co-Investment Private Equity Fund No.1		9,131		3,173		3,887		3,273
POSITIVE Sobujang Venture Fund No.1		—		1,121		—		879
History 2022 Fintech Fund		—		—		—		2,000
KB-NP Green ESG New Technology Venture Capital Fund		19,800		—		9,626		2,840
KB-Badgers Future Mobility ESG Fund No.1		10,404		1,071		1,350		248
Lakewood-AVES Fund No.1 *		—		2,000		—		—
MW-Pyco NewWave New Technology Investment Fund 4th		—		—		—		2,000
KB No.26 Special Purpose Acquisition Company *		—		—		—		5
Bitgoeul Cheomdan Green 1st Co., Ltd.		152		—		—		—
KB-SUSUNG 1st Investment Fund		—		1,386		—		1,419
KB-SUSUNG 2nd Investment Fund		2,000		—		—		—
Friend 55 New Technology Business Investment Fund *		—		1,200		—		—
DSIP-Pharos Bioenergy Fund *		—		4,000		—		—

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43.5 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024				2025
	Equity investment and others		Withdrawal and others		Equity investment and others		Withdrawal and others
Shinhan-Eco Venture Fund 2nd	￦	225	￦	—	￦	25	￦	190
2023 JB Newtech No.2 Fund		—		394		—		1,406
U-KB Credit No.1 Private Equity		591		—		17,133		191
KB No.28 Special Purpose Acquisition Company *		5		—		—		5
Timefolio Athleisure Investment Fund		4,000		—		—		—
COMPA Global Scale-Up Fund No.3		1,000		—		—		—
AKK Robotech Valueup New Technology Investment Fund *		1,000		—		—		1,000
YG MCE PROJECT NO.1 Fund		1,500		—		—		1,500
KB No.29 Special Purpose Acquisition Company		10		—		—		—
KB No.30 Special Purpose Acquisition Company		10		—		—		—
KB No.31 Special Purpose Acquisition Company		10		—		—		—
KB No.32 Special Purpose Acquisition Company		—		—		10		—
KB No.33 Special Purpose Acquisition Company		—		—		160		—
THE CHAEUL FUND NO.1 *		—		—		—		1,000
IMM global Secondary 1-1 Equity Private Fund		2,819		—		756		162
Elohim-Bilanx aerospace No.1 Fund		2,000		—		—		—
KB-CJ Venture Fund 1st		1,800		—		—		—
HI YG Win-win Fund No.2		2,000		—		—		—
KB-VEP Contact Fund		395		47		—		—
Reboot Private Equity Fund		7,000		—		—		—
LIB Material Investment Fund		4,098		—		—		3,221
NOVORSEC-SJG Consumer Secondary Fund *		1,700		—		—		1,700
Allra Fintech Corp.		8,532		—		128		—
KB Global Commerce Private Equity Investment Fund *		—		7,000		—		—
KB-SBI Global Strategic Capital Fund		11,298		—		22,830		—
KB-Cyrus Tourism Venture Fund		1,000		—		1,000		—
IBKS Design Fund		2,000		—		—		—
NICE DATA INTELLIGENCE VENTURE FUND *		1,000		—		—		1,000
Pectus Hanhwa Fund 2 *		2,000		—		—		2,000
KB-IMM New Star Real Estate Private Fund I		31,672		—		29,281		2,627
KB Rejuvenation Fund		500		—		—		—
VIG Private Equity Fund V-3		1,636		—		3,179		319
KOENTEC Co. Ltd. *		107,428		—		—		107,428
E&I Holdings *		—		—		27,300		27,300
YG AI Industrial Automation Solutions FUND		—		—		2,000		—
KB-Novus Genesis Private Equity Fund		—		—		2,300		—
Semicolon Susong REITs Co., Ltd.		—		—		88,552		857
KB-LB Middle Market Enterprises Innovation Private Equity Fund		—		—		8,140		69
ATP TP VC Fund No.1		—		—		2,000		—
AIM-KB-DOUBLE Connected Future Investment Fund		—		—		1,000		—
KB-IMM New Star Real Estate Private Fund II		—		—		26,337		37
K-1 23rd yeoksam Real Estate Investment Trust company Ltd.		—		—		16,050		—

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43.5 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won)	2024				2025
	Equity investment and others		Withdrawal and others		Equity investment and others		Withdrawal and others
IMM Korea Beauty Co-Invest Private Equity Fund	￦	—	￦	—	￦	50,000	￦	—
KB-GVA Premier Mezzanine Investment Fund		—		—		500		—
KB-ANDA Deep Tech Venture Fund		—		—		1,250		—
KB a2z 2025 Fund		—		—		110		—
DAILY Fountainhead Blind Private Equity Fund II		—		—		11,250		—
Meritz-Hyundai Investment Real Estate Strategy No.1 Private Equity Fund		—		—		92,647		—
Smart Korea KB Future9-Sejong Venture Fund		—		—		2,000		8

*	Excluded from the Group’s related party as of December 31, 2025.

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43.6 Unused commitments provided to related parties as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won or in a US Dollar or the Indonesian Rupiah)		December 31, 2024		December 31, 2025
Associates and joint ventures
Balhae Infrastructure Company	Purchase of securities	￦	6,154	￦	6,154
Balhae Infrastructure Company	Loan commitments in Korean won		—		65,000
Korea Credit Bureau Co., Ltd.	Unused lines of credit for credit card		565		559
Incheon Bridge Co., Ltd.	Loan commitments in Korean won		20,000		20,000
Incheon Bridge Co., Ltd.	Unused lines of credit for credit card		88		85
TeamSparta Inc. *	Loan commitments in Korean won		1,000		—
TeamSparta Inc. *	Unused lines of credit for credit card		696		1
3D Interactive Co., Ltd.	Unused lines of credit for credit card		44		23
Food Factory Co., Ltd.	Unused lines of credit for credit card		50		45
CellinCells Co., Ltd. *	Unused lines of credit for credit card		11		9
RAND Bio Science Co., Ltd. *	Unused lines of credit for credit card		25		—
Big Dipper Co., Ltd.	Unused lines of credit for credit card		12		21
ASSEMBLE CORPORATION	Unused lines of credit for credit card		29		3
COSES GT Co., Ltd. *	Unused lines of credit for credit card		12		—
Spark Biopharma Inc.	Unused lines of credit for credit card		35		27
Newavel Co., Ltd.	Unused lines of credit for credit card		10		—
IMBiologics Corp.	Unused lines of credit for credit card		21		10
SuperNGine Co., Ltd.	Unused lines of credit for credit card		38		24
IGGYMOB Co., Ltd.	Unused lines of credit for credit card		50		—
Pin Therapeutics Inc.	Unused lines of credit for credit card		21		30
Grinergy Co., Ltd.	Unused lines of credit for credit card		9		4
S&E Bio Co., Ltd.	Unused lines of credit for credit card		34		41
Wemade Connect Co., Ltd.	Unused lines of credit for credit card		121		68
TMAP Mobility Co., Ltd.	Unused lines of credit for credit card		744		701
Contents First Inc.	Unused lines of credit for credit card		35		80
Allra Fintech Corp.	Unused lines of credit for credit card		49		24
Bigwave Robotics Corp.	Unused lines of credit for credit card		61		40
New Daegu Busan Expressway Co., Ltd.	Unused lines of credit for credit card		4		3
AIM FUTURE, Inc.	Unused lines of credit for credit card		35		37
Novorex Inc.	Unused lines of credit for credit card		28		22
Xenohelix Co., Ltd.	Unused lines of credit for credit card		6		5
ADPGREEN	Unused lines of credit for credit card		25		27
Logpresso Inc.	Unused lines of credit for credit card		29		20
DYNE MEDICAL GROUP Inc.	Unused lines of credit for credit card		135		117
TriOar Inc.	Unused lines of credit for credit card		34		38
KB-CJ Venture Fund 1st	Purchase of securities		4,200		4,200
KB-Stonebridge Secondary Private Equity Fund	Purchase of securities		173		173
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Purchase of securities		4,524		924
All Together Korea Fund No.2	Purchase of securities		990,000		990,000
KB-SOLIDUS Healthcare Investment Fund	Purchase of securities		23,569		—
KB Co-Investment Private Equity Fund No.1	Purchase of securities		4,393		1,285
KB-Badgers Future Mobility ESG Fund No.1	Purchase of securities		26,920		25,569
KB-NP Green ESG New Technology Venture Capital Fund	Purchase of securities		9,750		1,050
FineKB Private Equity Fund No.1	Purchase of securities		2,335		—
KB-Solidus Global Healthcare Fund	Commitments on loss absorption priority		4,500		4,500
Paramark KB Fund No.1	Purchase of securities		6,360		870
Smart Korea KB Future9-Sejong Venture Fund	Purchase of securities		2,000		—
Shinhan-Eco Venture Fund 2nd	Purchase of securities		450		425
U-KB Credit No.1 Private Equity	Purchase of securities		35,700		18,566

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43.6 Unused commitments provided to related parties as of December 31, 2024 and 2025, are as follows (cont’d):


(In millions of Korean won or in a US Dollar or the Indonesian Rupiah)		December 31, 2024		December 31, 2025
Associates and joint ventures
KB-Cyrus Tourism Venture Fund	Purchase of securities	￦	4,000	￦	3,000
KB-SBI Global Strategic Capital Fund	Purchase of securities		55,702		32,888
KB-IMM New Star Real Estate Private Fund I	Purchase of securities		42,442		13,164
VIG Private Equity Fund V-3	Purchase of securities		8,364		5,503
KB-IMM New Star Real Estate Private Fund II	Purchase of securities		—		40,663
IMM global Secondary 1-1 Equity Private Fund	Purchase of securities		—		10,847
KB-LB Middle Market Enterprises Innovation Private Equity Fund	Purchase of securities		—		18,073
KB-ANDA Deep Tech Venture Fund	Purchase of securities		—		6,251
DAILY Fountainhead Blind Private Equity Fund II	Purchase of securities		—		28,056
Meritz-Hyundai Investment Real Estate Strategy No.1 Private Equity Fund	Purchase of securities		—		57,353
Nextrade Co., Ltd.	Unused lines of credit for credit card		—		369
Aldaver	Unused lines of credit for credit card		—		10
ANTIGRAVITY	Unused lines of credit for credit card		—		4
Lemontree Inc.	Unused lines of credit for credit card		—		49
Lemontree Inc.	Loan commitments in Korean won		—		450
WhaTap Laps Inc.	Unused lines of credit for credit card		—		59
WhaTap Laps Inc.	Loan commitments in Korean won		—		2,000
VP Inc.	Unused lines of credit for credit card		—		8
RMGP Bio-Pharma Investment Fund, L.P.	Purchase of securities	USD	2,693,142	USD	2,693,142
RMGP Bio-Pharma Investment, L.P.	Purchase of securities	USD	8,470	USD	8,470
RMG-KB BP Management Ltd.	Purchase of securities	USD	556,617	USD	446,888
RMG-KB BioAccess Fund L.P.	Purchase of securities	USD	21,113,820	USD	16,951,197
Elev8-Capital Fund I	Purchase of securities	IDR	1,787,096,277	IDR	1,787,096,277
Ascent Global Fund III	Purchase of securities	USD	32,437,479	USD	22,437,479
Key management personnel
Key management personnel	Loan commitments in Korean won		3,011		1,898

*	Excluded from the Group’s related party as of December 31, 2025.

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43.7 Details of compensation to key management personnel for the years ended December 31, 2023, 2024 and 2025, are as follows:


(In millions of Korean won)	2023
	Short-term employee benefits		Post-employment benefits		Share-based payments		Total
Registered directors (executive)	￦	7,874	￦	930	￦	8,654	￦	17,458
Registered directors (non-executive)		1,092		—		—		1,092
Non-registered directors		18,087		707		15,816		34,610

	￦	27,053	￦	1,637	￦	24,470	￦	53,160


(In millions of Korean won)	2024
	Short-term employee benefits		Post-employment benefits		Share-based payments		Total
Registered directors (executive)	￦	7,196	￦	915	￦	14,726	￦	22,837
Registered directors (non-executive)		1,081		—		—		1,081
Non-registered directors		18,451		480		29,236		48,167

	￦	26,728	￦	1,395	￦	43,962	￦	72,085


(In millions of Korean won)	2025
	Short-term employee benefits		Post-employment benefits		Share-based payments		Total
Registered directors (executive)	￦	7,002	￦	1,041	￦	18,478	￦	26,521
Registered directors (non-executive)		1,094		—		—		1,094
Non-registered directors		14,857		577		30,107		45,541

	￦	22,953	￦	1,618	￦	48,585	￦	73,156

43.8 Details of collateral provided by related parties as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	Assets held as collateral	December 31, 2024		December 31, 2025
Key management personnel	Time deposits and others	￦	1,437	￦	693
	Real estate		8,092		8,486

As of December 31, 2025, Incheon Bridge Co., Ltd. a related party, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to ￦

611,000

million to the project financing group consisting of the Group and 5 other institutions, and as subordinated collateral amounting to ￦

384,800 million to subordinated debt holders consisting of the Group and 2 other institutions. Also, it provides certificate of credit guarantee

amounting to ￦

400,000 million as collateral to the project financing group consisting of the Group and 5 other institutions.

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44. Events after the reporting period

Pursuant to the Board resolution dated February 5, 2026, the Group plans to acquire treasury shares amounting to ￦

600,000 million on the Stock Exchange market and cancel them by April 20, 2026.

45. Approval of Issuance of the Consolidated Financial Statements

The issuance of the Group’s consolidated financial statements as of and for the year ended December 31, 2025, was certified by management on April 28, 2026.

46. Parent Company Informations

The following tables present the Parent Company Only financial information:

Condensed Statements of Financial Position


(In millions of Korean won)	December 31, 2024		December 31, 2025
Assets
Cash and due from financial institutions	￦	398,391	￦	974,585
Financial assets at fair value through profit or loss		1,243,471		1,251,607
Loans at amortized cost		359,054		349,112
Investments in subsidiaries *
Banking subsidiaries		14,821,721		14,821,721
Nonbanking subsidiaries.		12,046,096		12,046,096
Other assets		938,090		1,410,019

Total assets	￦	29,806,823	￦	30,853,140

Liabilities and shareholders’ equity
Borrowings	￦	965,000	￦	—
Debentures		2,962,032		4,520,297
Other liabilities		891,233		1,397,607
Shareholders’ equity		24,988,558		24,935,236

Total liabilities and shareholders’ equity	￦	29,806,823	￦	30,853,140

*	Investments in subsidiaries were accounted at cost method in accordance with IAS No.27.

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Condensed Statements of Comprehensive Income


(In millions of Korean won)	2023			2024			2025
Income
Dividends from subsidiaries	￦	2,192,380		￦	2,243,250		￦	3,778,446
Interest from subsidiaries		31,257			33,822			26,046
Other income		120,699			101,594			89,115

Total income		2,344,336			2,378,666			3,893,607

Expense
Interest expense		99,980			101,073			118,080
Non-interest expense		107,355			106,938			117,208

Total expense		207,335			208,011			235,288

Profit before income tax expense		2,137,001			2,170,655			3,658,319

Income tax benefit		(15,757	)		(58	)		(686	)

Profit for the year		2,121,244			2,170,597			3,657,633

Other comprehensive gain(loss) for the year, net of tax		(962	)		(1,507	)		(285	)

Total comprehensive income for the year	￦	2,120,282		￦	2,169,090		￦	3,657,348

Condensed Statements of Cash Flows


(In millions of Korean won)	2023			2024			2025
Operating activities
Net income	￦	2,121,244		￦	2,170,597		￦	3,657,633
Reconciliation of net income to net cash provided by operating activities:
Other operating activities, net		(66,265	)		36,135			108,152

Net cash inflow from operating activities		2,054,979			2,206,732			3,765,785

Investing activities
Net payments from (to) subsidiaries		27,539			(150,000	)		—
Other investing activities, net		103,294			414,742			10,531

Net cash outflow from investing activities		130,833			264,742			10,531

Financing activities
Net increase (decrease) in borrowings		100,000			865,000			(965,000	)
Increases in debentures		—			398,945			2,236,135
Repayments of debentures and lease liabilities		(1,090,617	)		(1,075,644	)		(680,619	)
Issuance of hybrid securities		598,537			399,045			404,013
Redemption of hybrid securities		—			(350,000	)		(1,130,000	)
Cash dividends paid		(1,336,815	)		(1,686,776	)		(1,504,683	)
Acquisition of treasury shares		(571,745	)		(820,000	)		(1,480,000	)
Other financing activities		109			10			32

Net cash inflow (outflow) from financing activities		(2,300,531	)		(2,269,420	)		(3,120,122	)

Net increase (decrease) in cash and cash equivalents		(114,719	)		202,054			656,194
Cash and cash equivalents as of January 1		231,053			116,334			318,388

Cash and cash equivalents as of December 31	￦	116,334		￦	318,388		￦	974,582

F-3


(In millions of Korean won)
	December 31, 2024*
	Retail		Corporate	Credit card		Total		%		Allowances			Carrying amount
Korea	￦	193,803,826	￦225,393,574	￦	23,436,170	￦	442,633,570		92.15	￦	(4,119,163	)	￦	438,514,407
Europe		—	5,473,894		—		5,473,894		1.14		(61,124	)		5,412,770
China		181,539	7,095,199		776		7,277,514		1.52		(30,204	)		7,247,310
Japan		—	1,183,745		100		1,183,845		0.25		(2,947	)		1,180,898
United States		—	5,350,298		—		5,350,298		1.11		(116,741	)		5,233,557
Cambodia		3,575,153	4,315,485		1,114		7,891,752		1.64		(362,314	)		7,529,438
Indonesia		1,968,896	4,003,127		34,642		6,006,665		1.25		(596,496	)		5,410,169
Others		1,293,634	3,222,768		5,672		4,522,074		0.94		(344,392	)		4,177,682

	￦	200,823,048	￦256,038,090	￦	23,478,474	￦	480,339,612		100.00	￦	(5,633,381	)	￦	474,706,231


(In millions of Korean won)
	December 31, 2025*
	Retail	Corporate		Credit card		Total		%		Allowances			Carrying amount
Korea	￦201,645,600	￦	240,962,803	￦	23,103,760	￦	465,712,163		93.03	￦	(3,980,768	)	￦	461,731,395
Europe	—		5,154,308		—		5,154,308		1.03		(43,112	)		5,111,196
China	215,176		6,163,073		532		6,378,781		1.27		(16,091	)		6,362,690
Japan	—		1,401,963		107		1,402,070		0.28		(3,668	)		1,398,402
United States	—		4,147,154		—		4,147,154		0.83		(43,868	)		4,103,286
Cambodia	3,844,218		3,917,299		726		7,762,243		1.55		(505,687	)		7,256,556
Indonesia	1,618,552		3,783,985		23,768		5,426,305		1.08		(504,272	)		4,922,033
Others	1,561,205		3,059,913		6,193		4,627,311		0.93		(308,730	)		4,318,581

	￦208,884,751	￦	268,590,498	￦	23,135,086	￦	500,610,335		100.00	￦	(5,406,196	)	￦	495,204,139


	December 31, 2024
	Loans		%		Allowances			Carrying amount
Financial institutions	￦	29,395,390		11.48	￦	(258,612	)	￦	29,136,778
Manufacturing		55,635,406		21.73		(602,712	)		55,032,694
Service		113,938,671		44.50		(1,132,799	)		112,805,872
Wholesale and retail		31,112,210		12.15		(552,209	)		30,560,001
Construction		6,782,310		2.65		(279,959	)		6,502,351
Public sector		2,460,655		0.96		(66,475	)		2,394,180
Others		16,713,448		6.53		(276,057	)		16,437,391

	￦	256,038,090		100.00	￦	(3,168,823	)	￦	252,869,267


	December 31, 2025
	Loans		%		Allowances			Carrying amount
Financial institutions	￦	34,869,986		12.99	￦	(341,248	)	￦	34,528,738
Manufacturing		59,136,193		22.02		(549,071	)		58,587,122
Service		117,185,024		43.63		(1,098,958	)		116,086,066
Wholesale and retail		31,816,635		11.85		(554,985	)		31,261,650
Construction		6,399,017		2.38		(258,485	)		6,140,532
Public sector		2,653,414		0.98		(60,287	)		2,593,127
Others		16,530,229		6.15		(327,004	)		16,203,225

	￦	268,590,498		100.00	￦	(3,190,038	)	￦	265,400,460


(In millions of Korean won)	2024
	Other financial assets			Other non-financial assets			Total
Beginning	￦	304,567		￦	12,769		￦	317,336
Write-offs		(13,552	)		(142	)		(13,694	)
Provision (reversal)		155,770			1,987			157,757
Others		72,079			52			72,131

Ending	￦	518,864		￦	14,666		￦	533,530


(In millions of Korean won)		Lenders	Interest rate (%) as of December 31, 2025	December 31, 2024		December 31, 2025
Borrowings in Korean won	Borrowings from the Bank of Korea	The Bank of Korea	1.00	￦	4,618,026	￦	6,958,623
	Borrowings from the government	SEMAS and others	0.00 ~ 3.50		2,409,409		2,402,107
	Borrowings from banks	The Korea Development Bank and others	2.20 ~ 5.92		1,267,487		1,556,717
	Borrowings from non-banking financial institutions	Korea Securities Finance Corporation and others	0.55 ~ 6.50		3,014,113		2,674,329
	Other borrowings	The Korea Development Bank and others	0.00 ~ 6.94		22,294,928		22,050,728

					33,603,963		35,642,504

Borrowings in foreign currencies	Due to banks	Hana Bank and others	—		15,155		731
	Borrowings from banks	Citicorp International Ltd. and others	0.00 ~ 9.51		15,914,710		14,412,057
	Borrowings from other financial institutions	The Export-Import Bank of Korea and others	4.19 ~ 4.42		6,027		5,883
	Other borrowings	Standard Chartered Bank (Hong Kong) and others	0.00 ~ 4.33		2,893,338		3,009,390

					18,829,230		17,428,061

				￦	52,433,193	￦	53,070,565