# EDGAR Filing Document

**Accession Number:** 0001264136
**File Stem:** 0001193125-23-062735
**Filing Date:** 2023-3
**Character Count:** 821185
**Document Hash:** 9b26a6bc20380c31d0bfcc162f7e67ca
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-062735.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001193125-23-062735

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20230307

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WOORI FINANCIAL GROUP INC.
- **CENTRAL INDEX KEY:** 0001264136
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** M5
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31811
- **FILM NUMBER:** 23711805

**BUSINESS ADDRESS:**
- **STREET 1:** 51, SOGONG-RO, JUNG-GU,
- **CITY:** SEOUL KOREA
- **STATE:** M5
- **ZIP:** 04632
- **BUSINESS PHONE:** 000-000-0000

**MAIL ADDRESS:**
- **STREET 1:** 51, SOGONG-RO, JUNG-GU,
- **CITY:** SEOUL KOREA
- **STATE:** M5
- **ZIP:** 04632

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WOORI BANK
- **DATE OF NAME CHANGE:** 20141015

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WOORI FINANCE HOLDINGS CO LTD
- **DATE OF NAME CHANGE:** 20030917

------

------

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

------

**Form 6-K** 

------

**REPORT OF FOREIGN PRIVATE ISSUER** 

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

**UNDER THE SECURITIES EXCHANGE ACT OF 1934** 

**For the month of March 2023** 

**Commission File Number: 001-31811** 

------

## Woori Financial Group Inc.
**(Translation of registrant's name into English)** 

------

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

**(Address of principal executive office)** 

------

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

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

*Note:* Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

*Note:* Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

------

**\*** 

**Submission of Audit Reports of Woori Financial Group Inc.** 

On March 7, 2023, Woori Financial Group Inc. disclosed audit reports for the fiscal year 2022 based on the International Financial Reporting Standards as adopted by the Republic of Korea.

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

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

------

**SIGNATURES** 

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

---

| | | |
|:---|:---|:---|
|  | Woori Financial Group Inc. | Woori Financial Group Inc. |
|  | (Registrant) | (Registrant) |
| Date: March 7, 2023 | By: /s/ Sang-Wook Chun | By: /s/ Sang-Wook Chun |
|  | (Signature) | (Signature) |
|  | Name: | Sang-Wook Chun |
|  | Title: | President |

---

## Exhibit 99.1

##### [**Table of Contents**](#toc)
**Exhibit 99.1** 

**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES**

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2022 AND 2021

**WOORI FINANCIAL GROUP INC.** 

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
|  | **Page(s)** |
|  [**Independent Auditor's Report**](#ex99_1473977_1) | 1-5 |
| **Consolidated Financial Statements** |  |
|  [Consolidated Statements of Financial Position](#ex99_1473977_2) | 7 |
|  [Consolidated Statements of Comprehensive Income](#ex99_1473977_3) | 8-9 |
|  [Consolidated Statements of Changes in Equity](#ex99_1473977_4) | 10 |
|  [Consolidated Statements of Cash Flows](#ex99_1473977_5) | 11-12 |
|  [**Notes to the Consolidated Financial Statements**](#ex99_1473977_6) | 13-195 |

---

------

##### [**Table of Contents**](#toc)
![LOGO](g473977sp3aa3.jpg)

**Independent Auditor's Report** 

(English Translation of a Report Originally Issued in Korean)

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

**Opinion** 

We have audited the accompanying consolidated financial statements of Woori Financial Group Inc. and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated statements of financial position as at December 31, 2022 and 2021, and the consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

**Basis for Opinion** 

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

**Key Audit Matter** 

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

Expected Credit Losses on Loans Measured at Amortized Cost

Why it is determined to be a key audit matter:

The impairment guidance under Korean IFRS 1109 *Financial Instruments* requires determination of significant increases in credit risk and measurement of expected credit losses using forward-looking information and others. Accordingly, the Group developed a measurement model that encompasses probability of default, loss given default and forward looking information utilizing various types of information, which requires a higher level of management's interpretation and judgment.

Samil PricewaterhouseCoopers, 100 Hangang-daero, Yongsan-gu, Seoul 04386, Korea, www.samil.com

------

##### [**Table of Contents**](#toc)
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 estimation of future forecast cash flow with a relatively high degree of management's estimation and judgment, and collective assessment of expected credit losses involves a variety of complex variables and assumptions that require management's estimation and judgment. Due to these facts, expected credit losses of loans measured at amortized costs are determined as a key audit matter.

As described in Note 10, loans measured at amortized cost subject to individual or collective assessments amount to 346,252,713 million won, with allowances for credit losses of 2,334,153 million won as of December 31, 2022. Significantly affected subsidiary is Woori Bank.

How our audit addressed the key audit matter:

(1) Assessment of expected credit losses on an individual basis

We obtained an understanding and evaluated the processes and controls relating to the assessment of expected credit losses on an individual basis. In particular, we focused our effort on the assumptions used in estimating future cash flows. We evaluated whether management's estimation was reasonable and we assessed the key assumptions in the cash flow projection including growth rate of entities subject to individual assessment and collateral valuation. As part of these procedures, we assessed whether sales growth rate, operating income ratio, and assumptions on investment activities were consistent with historical operating performance and current market conditions. Additionally, we assessed the appropriateness of collateral valuation by conducting our own research on recent property prices and engaged independent appraisal specialists in assessing reasonableness of appraisal reports, models and methodologies used by management.

(2) Assessment of expected credit losses on a collective basis

We obtained an understanding and evaluated the processes and controls relating to management's calculation of expected credit losses on a collective basis in accordance with impairment requirements under Korean IFRS 1109 *Financial Instruments*. As explained in Note 2, management assessed credit ratings to recognize lifetime expected credit losses on loans with significant increase in credit risk and impaired loans. Other than these cases, management recognized 12-months of expected credit losses. To calculate expected credit losses, management applied forward-looking information, probability of default and loss given default, etc., estimated through its internal procedures and controls implemented for various assumptions.

We assessed the design and operating effectiveness of controls relating to credit ratings that reasonably reflected both qualitative and quantitative information. Our testing over the accuracy and reliability of the information included agreeing qualitative and quantitative information with relevant evidence.

We reviewed the appropriateness of management policies and procedures to determine significant increases in credit risk, and tested reasonableness of expected credit loss model applied by each of the three stages(Stage 1, 2 and 3) depending on how significantly credit risk was increased.

------

##### [**Table of Contents**](#toc)
We used risk specialists to test the appropriateness of management's methodologies of reflecting forward-looking information in the estimation of expected credit loss by adjusting the probability of default and loss given default after statistically analyzing the correlation between forward-looking information and probability of default or loss given default. Moreover, we tested the reasonableness and mathematical accuracy of the result through recalculation and examination of supporting data.

We reviewed the methodologies used by management to verify that probability of default and loss given default were calibrated using sufficient and reasonable historical data. We determined that the default and loss data used were appropriately gathered and applied in accordance with internal control procedures. In addition, we tested reasonableness and accuracy of probability of default and loss given default through procedures including recalculation, and tested management's default and loss data by agreeing them with relevant evidence.

Furthermore, we tested reasonableness of stage allocation of loans subject to COVID-19 payment relief attributable to significant increase in credit risk. We also tested key assumptions used in calculation of probability of default and required disclosures. We verified accuracy and completeness of aggregation of loans subject to the deferral, and accuracy of calculation of loss allowances.

**Other Matter** 

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.

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

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

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations.

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

------

##### [**Table of Contents**](#toc)
**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements** 

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

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

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

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

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

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

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

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

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

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

------

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

The engagement partner on the audit resulting in this independent auditor's report is Sung-jae Lim, Certified Public Accountant.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 7, 2023

&nbsp;&nbsp;&nbsp;This report is effective as of March 7, 2023, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may a to be revised to reflect the impact of such subsequent events or circumstances, if any.

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2022 AND 2021

The accompanying consolidated financial statements including all footnote disclosures were

prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

**Tae Seung Son** 

**President and Chief Executive Officer** 

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

(Phone Number) 02-2125-2000

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION** 

**AS OF DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2022 | December 31,<br>2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
| **ASSETS** |  |  |
|  Cash and cash equivalents (Note 2 and 6) | 34219148 | 20613073 |
|  Financial assets at fair value through profit or loss ("FVTPL")<br>(Notes 4, 7, 11, 12, 18 and 26) | 19860573 | 13497234 |
|  Financial assets at fair value through other comprehensive income ("FVTOCI")<br>(Notes 4, 8, 11, 12, and 18) | 33085080 | 39119789 |
|  Securities at amortized cost (Notes 4, 9, 11, 12 and 18) | 28268516 | 17086274 |
|  Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 41) | 355760729 | 348885617 |
|  Investments in joint ventures and associates (Note 13) | 1305636 | 1335167 |
|  Investment properties (Notes 14 and 18) | 387707 | 389495 |
|  Premises and equipment (Notes 15 and 18) | 3142930 | 3174720 |
|  Intangible assets (Note 16) | 849114 | 785386 |
|  Assets held for sale (Note 17) | 13772 | 26327 |
|  Net defined benefit asset (Note 24) | 319280 | 21346 |
|  Current tax assets (Note 38) | 53274 | 22598 |
|  Deferred tax assets (Note 38) | 109299 | 31131 |
|  Derivative assets (Designated for hedging) (Notes 4,11,12 and 26) | 37786 | 106764 |
|  Other assets (Notes 19 and 41) | 3061552 | 2088950 |
|  Total assets | 480474396 | 447183871 |
| **LIABILITIES** |  |  |
|  Financial liabilities at fair value through profit or loss ("FVTPL")<br>(Notes 4, 11, 12, 20 and 26) | 8952399 | 4873458 |
|  Deposits due to customers (Notes 4,11,21 and 41) | 342105209 | 317899871 |
|  Borrowings (Notes 4, 6, 11, 12 and 22) | 28429603 | 24755459 |
|  Debentures (Notes 4, 6, 11 and 22) | 44198486 | 44653864 |
|  Provisions (Notes 23, 40 and 41) | 545865 | 576134 |
|  Net defined benefit liability (Note 24) | 35202 | 47986 |
|  Current tax liabilities (Note 38) | 843555 | 584491 |
|  Deferred tax liabilities (Note 38) | 31799 | 186946 |
|  Derivative liabilities (Designated for hedging) (Notes 4,11,12 and 26) | 202911 | 27584 |
|  Other financial liabilities (Notes 4, 6, 11, 12, 25 and 41) | 22811868 | 24171030 |
|  Other liabilities (Notes 6, 25 and 41) | 690157 | 556853 |
|  Total liabilities | 448847054 | 418333676 |
| **EQUITY** |  |  |
|  Owners' equity (Note 28) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital stock | 3640303 | 3640303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | 3112449 | 2294381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus | 682385 | 682385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other equity | (2423392) | (2167614) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 23750152 | 21392564 |
|  | 28761897 | 25842019 |
|  Non-controlling interests | 2865445 | 3008176 |
|  Total equity | 31627342 | 28850195 |
|  Total liabilities and equity | 480474396 | 447183871 |

---

The accompanying notes are part of this consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
|  Interest income | 14654549 | 9894749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTPL | 106698 | 45803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI | 632615 | 381814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 13915236 | 9467132 |
|  Interest expense | (5957970) | (2909028) |
|  **Net interest income** (Notes 11, 30 and 41) | **8696579** | **6985721** |
|  Fees and commissions income | 2499700 | 2171705 |
|  Fees and commissions expense | (789530) | (700930) |
|  **Net fees and commissions income** (Notes 11, 31 and 41) | **1710170** | **1470775** |
|  Dividend income (Notes 11, 32 and 41) | 159982 | 309211 |
|  Net gain on financial instruments at FVTPL (Notes 11, 33 and 41) | 238502 | 325751 |
|  Net gain(loss) on financial assets at FVTOCI (Notes 11 and 34) | (21498) | 32624 |
|  Net gain arising on financial assets at amortized cost (Note 11) | 74204 | 107317 |
|  Impairment losses due to credit loss (Notes 35 and 41) | (885272) | (536838) |
|  General and administrative expense (Notes 36 and 41) | (4529890) | (4147411) |
|  Other net operating expense (Notes 11, 26, 36 and 41) | (1012253) | (887401) |
|  **Operating income** | **4430524** | **3659749** |
|  Share of gain of joint ventures and associates (Note 13) | 69996 | 62196 |
|  Other non-operating expense | (15146) | 27296 |
|  **Non-operating expense** (Note 37) | **54850** | **89492** |
|  **Net income before income tax expense** | **4485374** | **3749241** |
|  Income tax expense (Note 38) | (1161392) | (941870) |
|  **Net income** | **3323982** | **2807371** |
|  Net gain(loss) on valuation of equity securities at FVTOCI | (30146) | 34069 |
|  Changes in capital due to equity method | (4527) | (2607) |
|  Remeasurement gain(loss) related to defined benefit plan | 251440 | 65067 |
|  **Items that will not be reclassified to profit or loss:** | **216767** | **96529** |
|  Net gain(loss) on valuation of debt securities at FVTOCI | (463725) | (184396) |
|  Changes in capital due to equity method | 5139 | 4133 |
|  Net gain(loss) on foreign currency translation of foreign operations | 32536 | 246808 |
|  Net gain(loss) on valuation of hedges of net investments in foreign operations | (20701) |  |
|  Net gain(loss) on valuation of cash flow hedge | (9835) | 7107 |
|  **Items that may be reclassified to profit or loss:** | **(456586)** | **73652** |
|  **Other comprehensive income (loss), net of tax** | **(239819)** | **170181** |
|  **Total comprehensive income** | **3084163** | **2977552** |

---

(Continued)

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
|  **Net income attributable to:** | **3323982** | **2807371** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to owners | 3141680 | 2587936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to non-controlling interests | 182302 | 219435 |
|  **Total comprehensive income attributable to:** | **3084163** | **2977552** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income attributable to owners | &nbsp;&nbsp;&nbsp;&nbsp;2909053 | 2745764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income attributable to non-controlling interests | 175110 | 231788 |
|  **Earnings per share (Note 39)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted earnings per share (Unit: In Korean Won) | 4191 | 3481 |

---

The accompanying notes are part of this consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Capital<br>Stock | Hybrid<br>securities | Capital<br>surplus | Other<br>equity | Retained<br>earnings | Owners'<br>equity in<br>total | Non-<br>controlling<br>interests | Total<br>equity |
|  | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) |
|  **January 1, 2021** | 3611338 | 1895366 | 626111 | (2347472) | 19268265 | 23053608 | 3672237 | 26725845 |
|  Total comprehensive income |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income |  |  |  |  | 2587936 | 2587936 | 219435 | 2807371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain(loss) on valuation of financial instruments at FVTOCI |  |  |  | (150470) |  | (150470) | 143 | (150327) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain(loss) due to disposal of equity securities at FVTOCI |  |  |  | (2220) | 2220 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in capital due to equity method |  |  |  | 2472 | (946) | 1526 |  | 1526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on foreign currency translation of foreign operations |  |  |  | 234583 |  | 234583 | 12225 | 246808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on valuation of cash flow hedge |  |  |  | 6938 |  | 6938 | 169 | 7107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital related to non-current assets held for sale |  |  |  | (947) | 947 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurement gain related to defined benefit plan |  |  |  | 65251 |  | 65251 | (184) | 65067 |
|  Transactions with owners |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive stock exchange | 28965 |  | 35197 |  |  | 64162 |  | 64162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends to common stocks |  |  |  |  | (368357) | (368357) | (9391) | (377748) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of treasury stocks |  |  |  | (3819) |  | (3819) |  | (3819) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  | 399015 |  |  |  | 399015 |  | 399015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends to hybrid securities |  |  |  |  | (66250) | (66250) | (144923) | (211173) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of hybrid securities |  |  |  | (27365) |  | (27365) | (549904) | (577269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in subsidiaries' capital |  |  | 9382 | 32445 | (31251) | 10576 | (11296) | (720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 11695 | 22990 |  | 34685 | (180335) | (145650) |
|  **December 31, 2021** | 3640303 | 2294381 | 682385 | (2167614) | 21392564 | 25842019 | 3008176 | 28850195 |
|  **January 1, 2022** | 3640303 | 2294381 | 682385 | (2167614) | 21392564 | 25842019 | 3008176 | 28850195 |
|  Total comprehensive income |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income |  |  |  |  | 3141680 | 3141680 | 182302 | 3323982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss on valuation of financial instruments at FVTOCI |  |  |  | (493462) |  | (493462) | (409) | (493871) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain(loss) due to disposal of equity securities at FVTOCI |  |  |  | 10254 | (10254) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in capital due to equity method |  |  |  | 612 |  | 612 |  | 612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain(loss) on foreign currency translation of foreign operations |  |  |  | 39579 |  | 39579 | (7043) | 32536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of hedges of net investments in foreign operations |  |  |  | (20701) |  | (20701) |  | (20701) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of cash flow hedge |  |  |  | (9835) |  | (9835) |  | (9835) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital related to non-current assets held for sale |  |  |  | (279) | 279 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurement gain related to defined benefit plan |  |  |  | 251180 |  | 251180 | 260 | 251440 |
|  Transactions with owners |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends to common stocks |  |  |  |  | (654996) | (654996) | (9949) | (664945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  | 818068 |  |  |  | 818068 | 349215 | 1167283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends to hybrid securities |  |  |  |  | (91756) | (91756) | (113995) | (205751) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of hybrid securities |  |  |  | (60491) |  | (60491) | (559565) | (620056) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in subsidiaries' capital |  |  |  | 27365 | (27365) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in non-controlling interests related to business combinations |  |  |  |  |  |  | 16453 | 16453 |
|  **December 31, 2022** | 3640303 | 3112449 | 682385 | (2423392) | 23750152 | 28761897 | 2865445 | 31627342 |

---

The accompanying notes are part of this consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
|  **Cash flows from operating activities (Note 2):** |  |  |
|  Net income | 3323982 | 2807371 |
|  Adjustments to net income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 1161392 | 941870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | (14654549) | (9894749) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 5957970 | 2909028 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | (159982) | (309211) |
|  | (7695169) | (6353062) |
|  Additions of expenses not involving cash outflows: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on financial instruments at FVTPL | 815706 | 16869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on financial assets at FVTOCI | 23836 | 15812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss due to credit loss | 885272 | 536838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on other provisions | 37493 | 85690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit | 165063 | 177303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 929311 | 791896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss on foreign currency translation |  | 109668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on derivatives (designated for hedge) | 250268 | 93084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on fair value hedge |  | 1947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of investments in joint ventures and associates | 28861 | 19816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of investments in joint ventures and associates | 3690 | 174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of premises and equipment, intangible assets and other assets | 3177 | 3354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on premises and equipment, intangible assets and other assets | 260 | 656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other loss | 62196 |  |
|  | 3205133 | 1853107 |
|  Deductions of income not involving cash inflows: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on financial assets at FVTOCI | 2338 | 48436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on other provisions | 55327 | 1591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net profit on foreign currency translation | 3180 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on derivatives (designated for hedge) | 71179 | 61271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on fair value hedge | 257910 | 106253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on valuation of investments in joint ventures and associates | 98858 | 82012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of investments in joint ventures and associates | 599 | 70834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of premises and equipment, intangible assets and other assets | 55852 | 51083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of impairment loss on premises and equipment, intangible assets and other assets | 310 | 166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 15879 | 35717 |
|  | 561432 | 457363 |
|  Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments at FVTPL | (1647572) | 42498 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost | (5986828) | (32419399) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (1314877) | (983680) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers | 23536088 | 23830469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions | (24041) | (12278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit liability | (133421) | (109778) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | (2514238) | 9456310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 83559 | 67802 |
|  | 11998670 | (128056) |
|  Interest income received | 14189016 | 9351055 |
|  Interest expense paid | (4965594) | (3016841) |
|  Dividends received | 159993 | 309071 |
|  Income tax paid | (1030480) | (565539) |
|  | 8352935 | 6077746 |
|  Net cash inflow from operating activities | 18624119 | 3799743 |

---

(Continued)

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (CONTINUED)** 

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
|  **Cash flows from investing activities** |  |  |
|  Cash in-flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial instruments at FVTPL | 9502271 | 10361751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial assets at FVTOCI | 21717266 | 21645907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of securities at amortized cost | 5872961 | 6425062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investments in joint ventures and associates | 249763 | 195758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investment properties | 2061 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of premises and equipment | 44839 | 2890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of intangible assets | 978 | 846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of assets held for sale | 52417 | 93756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase of other assets | 62386 | 66305 |
|  | 37504942 | 38792275 |
|  Cash out-flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash out-flows from obtaining control | 378394 | 1638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial instruments at FVTPL | 10274187 | 11840524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial assets at FVTOCI | 16110501 | 30522971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of securities at amortized cost | 16873194 | 6435692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of investments in joint ventures and associates | 143345 | 400172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of premises and equipment | 172876 | 119255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets | 174749 | 138882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in subsidiaries | 346386 |  |
|  | 44473632 | 49459134 |
|  Net cash outflow from investing activities | (6968690) | (10666859) |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash in-flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash in-flows from hedging activities | 54569 | 6987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in borrowings | 2881675 | 3199712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debentures | 23402694 | 32674966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase of other liabilities | 513 | 3488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities | 1167283 | 399016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital increase on non-controlling interests |  | 1623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in non-controlling equity liabilities | 1847 | 10685 |
|  | 27508581 | 36296477 |
|  Cash out-flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of debentures | 23887568 | 25781305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of lease liabilities | 187531 | 177593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New stock issue cost |  | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of treasury stocks |  | 3757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid | 654996 | 368357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of hybrid stocks | 643000 | 587650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to hybrid securities | 205751 | 211173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | 9949 | 9391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in non-controlling interests |  | 81410 |
|  | 25588795 | 27220776 |
|  Net cash inflow from financing activities | 1919786 | 9075701 |
|  Effects of exchange rate changes on cash and cash equivalents | 30860 | 1061251 |
|  **Net increase in cash and cash equivalents** | 13606075 | 3269836 |
|  **Cash and cash equivalents, beginning of the period** | 20613073 | 17343237 |
|  **Cash and cash equivalents, end of the Period (Note 6)** | 34219148 | 20613073 |

---

The accompanying notes are part of this consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**AS OF DECEMBER 31, 2022 AND 2021** 

**1.** **GENERAL** 

(1) Summary of the Parent company

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

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

---

| | | | |
|:---|:---|:---|:---|
| Stock transfer company | Total number of<br>issued shares | Exchange ratio<br>per share | Number of Parent<br>company's stocks |
|  Woori Bank | 676000000 | 1.0000000 | 676000000 |
|  Woori FIS Co., Ltd. | 4900000 | 0.2999708 | 1469857 |
|  Woori Finance Research Institute Co., Ltd. | 600000 | 0.1888165 | 113289 |
|  Woori Credit Information Co., Ltd. | 1008000 | 1.1037292 | 1112559 |
|  Woori Fund Service Co., Ltd. | 2000000 | 0.4709031 | 941806 |
|  Woori Private Equity Asset Management Co., Ltd. | 6000000 | 0.0877992 | 526795 |

---

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

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

As of December 30, 2019, the Parent company acquired a 67.2% interest (excluding treasury stocks, 51% interest including treasury stocks) in Woori Asset Trust Co., Ltd. (formerly Kukje Asset Trust Co., Ltd.) and added it as a consolidated subsidiary at the end of 2019.

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

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

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

------

##### [**Table of Contents**](#toc)
(2) Details of the Parent company and subsidiaries (hereinafter 'Group') as of December 31, 2022 and
2021 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership<br>(%) | Percentage of ownership<br>(%) | Location | Financial<br>statements date<br> of use |
| Subsidiaries | Main business | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements date<br> of use |
|  Held by Woori Financial Group Inc. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Bank | Bank | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card Co., Ltd. | Finance | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Financial Capital Co., Ltd. | Finance | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Investment Bank Co., Ltd. | Other credit finance business | 58.7 | 58.7 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Asset Trust Co., Ltd. | Real estate trust | 67.2 | 67.2 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Savings Bank (\*7) | Mutual saving bank | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Asset Management Corp. | Finance | 73.0 | 73.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Financial F&I Co., Ltd. | Finance | 100.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Credit Information Co., Ltd. | Credit information | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Fund Service Co., Ltd. | Financial support service business | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Private Equity Asset Management Co., Ltd. | Finance | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Global Asset Management Co., Ltd. | Finance | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori FIS Co., Ltd. | System software development & maintenance | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Finance Research Institute Co., Ltd. | Other service business | 100.0 | 100.0 | Korea | December 31 |
|  Held by Woori Bank |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori America Bank (\*1) | Finance | 100.0 | 100.0 | America | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Global Markets Asia Limited | Finance | 100.0 | 100.0 | Hong Kong | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Bank China Limited | Finance | 100.0 | 100.0 | China | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AO Woori Bank (\*10) | Finance | 100.0 | 100.0 | Russia | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank Woori Saudara Indonesia 1906 Tbk (\*1) | Finance | 84.2 | 84.2 | Indonesia | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banco Woori Bank do Brasil S.A. | Finance | 100.0 | 100.0 | Brazil | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea BTL Infrastructure Fund | Finance | 99.9 | 99.9 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Finance Myanmar Co., Ltd. | Finance | 100.0 | 100.0 | Myanmar | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wealth Development Bank | Finance | 51.0 | 51.0 | Philippines | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Bank Vietnam Limited | Finance | 100.0 | 100.0 | Vietnam | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Bank (Cambodia) PLC (\*9) | Finance | 100.0 | 100.0 | Cambodia | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Bank Europe(\*1) | Finance | 100.0 | 100.0 | Germany | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kumho Trust First Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asiana Saigon Inc. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KAMCO Value Recreation First Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 15.0 | 15.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deogi Dream Fourth Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeonju Iwon Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wonju I one Inc. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heitz Third Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woorihansoop 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori International First Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wibihansoop 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori QS 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Display 1st Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tiger Eyes 2nd Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Display 2nd Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Dream 2nd Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori H 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori K 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori S 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Display 3rd Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TY 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori-HJ 3rd Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership<br>(%) | Percentage of ownership<br>(%) | Location | Financial<br>statements date<br> of use |
| Subsidiaries | Main business | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements date<br> of use |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori K 2nd Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori KC No.1 Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quantum Jump the 2nd Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quantum Jump the 1st Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori BK the 1st Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori-HC 1st Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wivi Synergy 1st Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ATLANTIC TRANSPORTATION 1 S.A. (\*2) | Asset securitization | 0.0 | 0.0 | Marshall islands | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Gongdeok First Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HD Project Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HW 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HC 2nd Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Dream 3rd Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori SJS 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Steel 1st Co., Ltd (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SPG the 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori-HWC 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HC 3rd Co., Ltd. (\*2). | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Park I 1st co., Ltd (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori DS 1st co., Ltd (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HC 4th Co., Ltd. (\*2). | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori SKR 1st Co., Ltd. (\*2). | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori H chemical 1st Co.,Ltd (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HE the 1st Co.,Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Hub The 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori K The 3rd Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori KF 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WooriI TS 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori H Square 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori L Yongsan 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HC 5th Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Ladena 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HR 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Lotte Dongtan 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HC 6th Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori ECO 1st Co., Ltd. (\*2) | Asset securitization | 0.0 | 0.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HO 1th Co., Ltd. (\*2) | Asset securitization | 0.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori ESG 1st Co.,Ltd. (\*2) | Asset securitization | 0.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Osiria 1st Co.,Ltd. (\*2) | Asset securitization | 0.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Eco 2nd Co.,Ltd. (\*2) | Asset securitization | 0.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gangnam Landmark 2nd Co., Ltd (\*2) | Asset securitization | 0.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori HP the 1st co.,Ltd. (\*2) | Asset securitization | 0.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G5 Pro Short-term Bond Investment Fund 13 (\*3)(\*5) | Securities investment and others |  | 100.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heungkuk Global Private Placement Investment Trust No. 1 (\*3) | Securities investment and others | 98.8 | 98.8 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AI Partners UK Water Supply Private Placement Investment Trust No.2 (\*3) | Securities investment and others | 97.3 | 97.3 | England | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Multi Asset Global Real Estate Investment Trust No. 5-2 (\*3) | Securities investment and others | 99.0 | 99.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGIS Australia Investment Trust No. 209-1 (\*3) | Securities investment and others | 99.4 | 99.4 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (\*3) | Securities investment and others | 97.7 | 97.7 | Korea | December 31 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership<br>(%) | Percentage of ownership<br>(%) | Location | Financial<br>statements date<br> of use |
| Subsidiaries | Main business | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements date<br> of use |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Japan General Type Private Real Estate Feeder Investment Trust No.1-2 (\*3) | Securities investment and others | 98.8 | 98.8 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGIS Global Private Placement Real Estate Fund No. 316-1 (\*3) | Securities investment and others | 99.3 | 99.3 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Secondary Private Placement Investment Trust No. 1 (\*3) | Securities investment and others | 98.3 | 98.1 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (\*3) | Securities investment and others | 99.9 | 99.8 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JB Airline Private Placement Investment Trust No.8 (\*3) | Securities investment and others | 97 | 97 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kiwoom Harmony Private Placement Investment Trust No. 2 (\*3) | Securities investment and others | 97.1 | 97.1 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kiwoom Harmony Private Placement Investment Trust No. 1 (\*3) | Securities investment and others | 97.2 | 96 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kiwoom Frontier Private Investment Trust No.23[Bond] (\*3) | Securities investment and others | 99.8 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal Guaranteed Trust (\*4) | Trust | 0 | 0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal and Interest Guaranteed Trust (\*4) | Trust | 0 | 0 | Korea | December 31 |
|  Held by Multi Asset Global Real Estate Investment Trust No. 5-2 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MAGI No.5 LuxCo S.a.r.l. | Asset securitization | 54.6 | 54.6 | Luxembourg | December 31 |
|  Held by MAGI No.5 LuxCo S.a.r.l. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ADP 16 Brussels | Asset securitization | 99.9 | 99.9 | Belgium | December 31 |
|  Held by Woori Card Co., Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TUTU Finance –WCI Myanmar Co., Ltd. | Finance | 100 | 100 | Myanmar | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Woori Finance Indonesia Tbk. | Finance | 82 |  | Indonesia | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card 2018-1 Securitization Specialty Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.5 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card 2019-1 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 0.5 | 0.5 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card 2020-1 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 0.5 | 0.5 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card 2021-1 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 0.5 | 0.5 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card 2022-1 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 0.5 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card 2022-2 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 0.5 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Card 2023-1 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 0.5 |  | Korea | December 31 |
|  Held by Woori Financial Capital Co., Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ACE Auto Invest the 48th Securitization Specialty Co., Ltd. (\*2)(\*5) | Asset securitization |  | 1 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ACE Auto Invest the 49th Securitization Specialty Co., Ltd. (\*2)(\*5) | Asset securitization |  | 1 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Specified Money Market Trust | Trust | 100 |  | Korea | December 31 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership<br>(%) | Percentage of ownership<br>(%) | Location | Financial<br>statements date<br>of use |
| Subsidiaries | Main business | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements date<br>of use |
|  Held by Woori Investment Bank Co., Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Seari First Securitization Specialty Co., Ltd. (\*2)(\*5) | Asset securitization |  | 5.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Seari Second Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Namjong 1st Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bukgeum First Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bukgeum Second Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WS1909 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WS2003 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WS2006 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ2008 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WH2103 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WN2103 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WH2106 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 | 5.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One Punch Korea the 1st Co., Ltd. (\*2)(\*5). | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One Punch blue the 1<sup>st</sup> Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One Punch red the 1<sup>st</sup> Co., Ltd. (\*2)(\*5) | Asset securitization |  | 0.0 | Korea |  |
|  Held by Woori Asset Management Corp. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori China Convertible Bond Hedging feeder Investment Trust H (debt-oriented hybrid) (\*3) | Securities investment and others | 88.0 | 93.6 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2025 (\*3)(\*5) | Securities investment and others |  | 34.1 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2030 (\*3)(\*5) | Securities investment and others |  | 32.3 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2035 (\*3) | Securities investment and others | 57.1 | 56.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2040 (\*3) | Securities investment and others | 58.3 | 55.7 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2045 (\*3) | Securities investment and others | 69.3 | 65.2 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2050 (\*3) | Securities investment and others | 66.3 | 63.6 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Star50 Feeder Fund(H) (\*3)(\*5) | Securities investment and others |  | 44.8 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori BIG2 Plus Securities Investment Trust (Balanced Bond) (\*3)(\*5) | Securities investment and others |  | 40.8 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Franklin Technology Master Fund (USD) (\*3)(\*11) | Securities investment and others | 91.1 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Franklin Technology Feeder Fund (H) (\*3) | Securities investment and others | 71.8 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together OCIO Target Return Master fund (\*3) (\*11) | Securities investment and others | 100.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together OCIO Target Return Feeder fund (\*3) | Securities investment and others | 81.2 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori High Graded Bond Target Return Fund 1 (\*3) | Securities investment and others | 77.0 |  | Korea | December 31 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership<br>(%) | Percentage of ownership<br>(%) | Location | Financial<br>statements date<br>of use |
| Subsidiaries | Main business | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements date<br>of use |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Multi Return Private Equity 2 (\*3) | Securities investment and others | 30.9 |  | Korea | December 31 |
|  Held by Woori Financial F&I Co., Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WI2203 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WM2203 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WNI2206 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WI2209 Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WN2212 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WK2212 Asset Securitization Specialty Co., Ltd. (\*2) | Asset securitization | 5.0 |  | Korea | December 31 |
|  Held by Woori Financial Capital Co., Ltd., Woori Private Equity Asset Management Co., Ltd. and Woori Investment Bank Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese Hotel Real Estate Private Equity Fund 1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
|  Held by Woori Global Asset Management Co., Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Global Multi Asset Income Private Placement Investment Trust_Class Cs (\*3) | Securities investment and others | 37.9 | 37.9 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Happy Retirement Lifetime Income TIF Mixed Asset Investment Trust[FoF] C(Y) (\*3) | Securities investment and others | 99.3 |  | Korea | December 31 |
|  Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd., Woori Savings Bank and Woori Private Equity Asset Management Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Innovative Growth Professional Investment Type Private Investment Trust No.1 (\*3) | Securities investment and others | 90.0 | 90.0 | Korea | December 31 |
|  Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Innovative Growth Professional Investment Type Private Investment Trust No.2 (\*3) | Securities investment and others | 85.0 | 85.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Innovative Growth New Deal Private Investment Trust No.3 (\*3) | Securities investment and others | 94.3 | 94.3 | Korea | December 31 |
|  Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Investment Bank Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G GP Commitment Loan General Type Private Investment Trust No.1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Equity Bridge Loan General Type Private Investment Trust No.1 (\*3) | Securities investment and others | 80.0 | 80.0 | Korea | December 31 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership<br>(%) | Percentage of ownership<br>(%) | Location | Financial<br>statements date<br>of use |
| Subsidiaries | Main business | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements date<br>of use |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G GP Commitment Loan General Type Private Investment Trust No.2 (\*3) | Securities investment and others | 100.0 |  | Korea | December 31 |
|  Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Global Asset Management Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G New Deal(Infrastructure) Policy Fund No.1 (\*3) | Securities investment and others | 70.0 |  | Korea | December 31 |
|  Held by Woori bank and Woori Investment Bank Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heungkuk Woori Tech Company Private Placement Investment Trust No. 1 (\*3)(\*5) | Securities investment and others |  | 100.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust No.1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G NorthAmerica Infra Private Placement Investment Trust No. 1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Infrastructure New Deal Specialized Investment Private Equity Investment Trust No. 1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G General Type Private Real Estate Investment Trust No.2 (\*3) | Securities investment and others | 30.1 | 30.1 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G ESG Infrastructure Development General Type Private Investment Trust No.1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
|  Held by Woori bank (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G WooriBank Partners General Type Private Investment Trust No.1 (\*3) | Securities investment and others | 92.6 | 92.6 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G General Type Private Real Estate Investment Trust No.1 (\*3) | Securities investment and others | 80.0 | 80.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Global Mid-market Secondary General Type Private Investment Trust No.1(EUR) (\*3) | Securities investment and others | 80.0 | 80.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Woori Bank Partners Professional Type Private Investment Trust No. 2 (\*3) | Securities investment and others | 90.9 | 90.9 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G General Type Private Real Estate Investment Trust No.5 (\*3) | Securities investment and others | 86.8 | 87.0 | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Senior Loan General Type Private Investment Trust No.2(\*3) | Securities investment and others | 50.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Government Bond MMF C/I (\*3) | Securities investment and others | 46.0 |  | Korea | December 31 |
|  Held by Woori Bank and Woori Financial Capital Co., Ltd.(\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Renewable New Deal Fund No.1 (\*3) | Securities investment and others | 60.0 |  | Korea | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Equity Investment General Type Private Investment Trust No.1 (\*3) | Securities investment and others | 100.0 |  | Korea | December 31 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership<br>(%) | Percentage of ownership<br>(%) | Location | Financial<br>statements date<br>of use |
| Subsidiaries | Main business | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements date<br>of use |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (\*3) | Securities investment and others | 100.0 |  | Korea | December 31 |
|  Held by Woori Financial Capital Co., Ltd. (\*6) |  |  |  |  | December 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Japan Private Placement Real Estate Feeder Investment Trust No.1-1 (\*3) | Securities investment and others | 63.2 | 63.2 | Korea | December 31 |
|  Held by Woori Bank, Woori Card Co., Woori Financial Capital Co., Ltd. and Woori Investment Bank Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori FG Digital Investment Fund 1st (\*3) | Securities investment and others | 100.0 |  | Korea | December 31 |
|  Held by Woori G Japan Private Placement Real Estate Feeder Investment Trust No.1-1 and Woori G Japan Investment Trust No. 1-2 (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Japan Private Placement Real Estate Master Investment Trust No.1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
|  Held by Woori Financial Capital Co., Ltd. and Woori Investment Bank Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Japan Private Placement Real Estate Master Investment Trust No.2-1 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
|  Held by Woori G Japan Private Placement Real Estate Master Investment Trust No.1 and Woori G Japan Private Placement Real Estate Master Investment Trust No.2-1 (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Japan Private Placement Real Estate Master Investment Trust No.2 (\*3) | Securities investment and others | 100.0 | 100.0 | Korea | December 31 |
|  Held by Woori G Japan Private Placement Real Estate Master Investment Trust No.1 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GK OK Chatan (\*3) | Other financial services | 99.9 | 99.9 | Japan | October 31 (\*8) |
|  Held by Woori G Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Private Placement Investment Trust No. 3 (\*3) | Securities investment and others | 76.5 |  | Korea | December 31 |
|  Held by Woori G Private Placement Investment Trust No. 3 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GK Woorido | Other financial services | 100.0 |  | Japan | December 31 |
|  Held by Woori G Infrastructure New Deal General Type Private Investment Trust (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Seoul- Chuncheon Highway Private Placement Special Asset Investment Trust No.1 (\*3) | Securities investment and others | 48.0 |  | Korea | December 31 |

---

(\*1) Additional investment occurred made for year ended December 31, 2021.

------

##### [**Table of Contents**](#toc)

---

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

---

---

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

---

---

| | |
|:---|:---|
| (\*4) | The entity is a 'money trust' under the Financial Investment Services and Capital Markets Act. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.  |

---

(\*5) Companies are excluded from the consolidation as of December 31, 2022.

---

| | |
|:---|:---|
| (\*6) | Determined that the Group controls the investees, considering the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns, by two or more subsidiaries' investment or operation.  |

---

---

| | |
|:---|:---|
| (\*7) | During March 2021, the Parent company acquired a 100% equity of Woori Financial Savings Bank from the Parent company's subsidiary Woori Financial Capital Co., Ltd.  |

---

(\*8) As the financial statements for the end of the reporting period were not available, the most recent financial statements available from the date of settlement were used.

(\*9) The Parent company's subsidiary WB Finance Co., Ltd. has changed the name to WOORI BANK (CAMBODIA) PLC.

---

| | |
|:---|:---|
| (\*10) | The Russia – Ukraine conflict has been escalated in February 2022, Russia is imposed to the international sanctions. Due to the sanctions, the lack of liquidity in the Russian foreign exchange market as well as the significant decline in value of the Rubles and the decline in value of Russian companies' securities are in progress. As a result, the Group may experience situations such as a decrease in value of financial assets or operating assets owned by the Group regarding the conflict, an increase in receivable payment terms, limitation to transfer funds, decrease in the profit. As of December 31, 2022, the Group expects such conflict and sanctions would have financial impacts on the business of AO Woori Bank, one of the subsidiaries, in the future. However, the Group cannot reasonably predict the financial impacts because it is very uncertain to estimate the impact on the Group's financial position and business performance.  |

---

---

| | |
|:---|:---|
| (\*11) | As a master-feeder fund, it is the percentage of the feeder fund's ownership in the master fund.  |

---

------

##### [**Table of Contents**](#toc)
(3) The Group has not consolidated the following entities as of December 31, 2022 and 2021 despite having more
than 50% ownership interest:

---

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

---

---

| | |
|:---|:---|
| (\*1) | The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager's delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund's activities even though it holds more than 50% of ownership interest.  |

---

---

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

---

---

| | |
|:---|:---|
| (\*3) | The Group does not have power over the stock market stabilization fund as the fund's relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund's activities even though it holds more than 50% of ownership interest.  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | As of December 31, 2021 | As of December 31, 2021 | As of December 31, 2021 |
| Subsidiaries | Location | Main Business | Percentage of<br>ownership (%) |
|  Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (\*1) | Korea | Securities Investment | 59.7 |
|  Kiwoom Yonsei Private Equity Investment Trust (\*1) | Korea | Securities Investment | 88.9 |
|  IGIS Europe Private Placement Real Estate Fund No. 163-2 (\*2)(\*4) | Korea | Securities Investment | 97.9 |
|  IGIS Global Private Placement Real Estate Fund No. 148-1 (\*1)(\*4) | Korea | Securities Investment | 75.0 |
|  IGIS Global Private Placement Real Estate Fund No. 148-2 (\*1)(\*4) | Korea | Securities Investment | 75.0 |
|  Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (\*1)(\*4) | Korea | Securities Investment | 66.7 |
|  Hangkang Sewage Treatment Plant Fund (\*1)(\*4) | Korea | Securities Investment | 55.6 |
|  Korea Investment Pocheon Hwado Expressway Professional Investment Fund (\*1)(\*4) | Korea | Securities Investment | 55.2 |
|  Midas Global Private Placement Real Estate Investment Trust No. 7-2 (\*1)(\*4) | Korea | Securities Investment | 58.3 |
|  Together-Korea Government Private Pool Private Securities Investment Trust No.3 (\*3)(\*4) | Korea | Securities Investment | 100.0 |
|  INMARK France Private Placement Investment Trust No. 18-1 (\*1)(\*4) | Korea | Securities Investment | 93.8 |
|  Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (\*2)(\*4) | Korea | Securities Investment | 99.5 |
|  KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (\*2) | Korea | Securities Investment | 99.7 |
|  Hana UBS Class One Private Equity No. 3 C2 (\*1) | Korea | Securities Investment | 51.0 |
|  Consus Gyeongju Green Private Equity Investment Trust No. 1 (\*1) (\*4) | Korea | Securities Investment | 50.0 |
|  Kiwoom Harmony Private Placement Investment Trust No. 3 (\*1) (\*4) | Korea | Securities Investment | 77.4 |
|  Consus Solar Energy Private Placement Investment Truns No.1(\*1) | Korea | Securities Investment | 50.0 |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| (\*1) | The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager's delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund's activities even though it holds more than 50% of ownership interest.  |

---

---

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

---

---

| | |
|:---|:---|
| (\*3) | The Group does not have power over the stock market stabilization fund as the fund's relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund's activities even though it holds more than 50% of ownership interest.  |

---

(\*4) In accordance with the amendment to the Capital Market Act, a specialized investment type private equity fund has been changed to a general private equity fund during the prior period.

------

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | As of and for the year ended December 31, 2022 | As of and for the year ended December 31, 2022 | As of and for the year ended December 31, 2022 | As of and for the year ended December 31, 2022 | As of and for the year ended December 31, 2022 |
| Subsidiaries | Assets | Liabilities | Operating<br>revenue | Net income<br>(loss)<br> attributable to<br>owners | Comprehensive<br>income (loss)<br>attributable to<br>owners |
|  Woori Bank | 443340979 | 417583793 | 38656623 | 2892165 | 2651873 |
|  Woori Card Co., Ltd. | 16118967 | 13692456 | 1845296 | 204385 | 199397 |
|  Woori Financial Capital Co., Ltd. | 12581473 | 11040754 | 1323574 | 183328 | 189765 |
|  Woori Investment Bank Co., Ltd. | 5657191 | 4982410 | 406157 | 91794 | 92379 |
|  Woori Asset Trust Co., Ltd. | 322098 | 94573 | 137114 | 60319 | 60316 |
|  Woori Savings Bank | 1786495 | 1556679 | 110868 | 10607 | 10998 |
|  Woori Asset Management Corp. | 185389 | 62568 | 35019 | 1259 | 1314 |
|  Woori Financial F&I Co., Ltd. | 336141 | 135562 | 8086 | 867 | 867 |
|  Woori Credit Information Co., Ltd. | 42832 | 9240 | 38549 | 1784 | 2083 |
|  Woori Fund Service Co., Ltd. | 25094 | 2691 | 16337 | 3917 | 3917 |
|  Woori Private Equity Asset Management Co., Ltd | 94434 | 4672 | 7830 | 1902 | 1872 |
|  Woori Global Asset Management Co., Ltd. | 34988 | 7090 | 13711 | 211 | 211 |
|  Woori FIS Co., Ltd. | 112117 | 54645 | 296235 | 1069 | 11559 |
|  Woori Finance Research Institute Co., Ltd. | 6456 | 2604 | 7006 | 46 | 245 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | As of and for the year ended December 31, 2021 | As of and for the year ended December 31, 2021 | As of and for the year ended December 31, 2021 | As of and for the year ended December 31, 2021 | As of and for the year ended December 31, 2021 |
| Subsidiaries | Assets | Liabilities | Operating<br>revenue | Net income<br>(loss)<br>attributable to<br>owners | Comprehensive<br>income (loss)<br>attributable to<br>owners |
|  Woori Bank | 415976627 | 391315108 | 24311964 | 2375525 | 2523846 |
|  Woori Card Co., Ltd. | 14116832 | 11858065 | 1528680 | 200726 | 210316 |
|  Woori Financial Capital Co., Ltd. | 10259868 | 9073104 | 997655 | 140579 | 141275 |
|  Woori Investment Bank Co., Ltd. | 5159742 | 4559856 | 303253 | 79924 | 79747 |
|  Woori Asset Trust Co., Ltd. | 254773 | 86418 | 94228 | 40300 | 40263 |
|  Woori Asset Management Corp. | 151651 | 30144 | 33343 | 8244 | 8458 |
|  Woori Savings Bank | 1444508 | 1222888 | 85813 | 15315 | 14926 |
|  Woori Credit Information Co., Ltd. | 40510 | 8532 | 37507 | 1563 | 1513 |
|  Woori Fund Service Co., Ltd. | 22168 | 2582 | 15618 | 3570 | 3570 |
|  Woori Private Equity Asset Management Co., Ltd. | 42790 | 4652 | 4230 | 2209 | 2113 |
|  Woori Global Asset Management Co., Ltd. | 35265 | 7579 | 11785 | (441) | (441) |
|  Woori FIS Co., Ltd. | 105138 | 59225 | 270393 | 1587 | 8010 |
|  Woori Finance Research Institute Co., Ltd. | 5864 | 2257 | 6812 | 57 | 64 |

---

------

##### [**Table of Contents**](#toc)
(5) The financial support that the Group provides to consolidated structured entities is as follows:

- Structured entity for asset securitization

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

- Structured entity for the investments in securities

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

- Money trust under the Financial Investment Services and Capital Markets Act

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

As of December 31, 2022 and 2021, the Group provides 231,309 million won and 2,480,131 million won of credit facilities, respectively, for the structured entities mentioned above. As of December 31, 2022 and 2021, the purchase commitment amounts to 2,545,164 million won and 2,263,387 million won, respectively.

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

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

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

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

------

##### [**Table of Contents**](#toc)
Unconsolidated structured entities classified as 'investment funds' include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds finances money required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit distributed to the investors. The Group recognizes pro rata amount of dividend income as an investor in the same way as 'structured finance', and may be exposed to losses due to reduction in investment value. Investments in MMF(Money Market Funds) as of December 31, 2022 and 2021 are 875,470 million won and 853,140 million won, respectively, and there is no additional commitments for MMF.

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

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

------

##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | (unit: Korean Won in millions)) | (unit: Korean Won in millions)) | (unit: Korean Won in millions)) | (unit: Korean Won in millions)) |
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Asset<br>securitization | Structured<br>Finance | Investment<br>Fund | Real-estate<br>trust |
|  Total asset of the unconsolidated structured entities | 14856750 | 82724618 | 132264383 | 1316930 |
|  Assets recognized in the consolidated financial statements related to the unconsolidated structured entities | 8051144 | 5537836 | 4964712 | 40073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTPL | 258552 | 6642 | 4397416 | 10480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI | 3213331 | 45735 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 4579261 | 5485336 | 31124 | 29593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in joint ventures and associates |  |  | 535427 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets |  | 123 | 745 |  |
|  Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities | 824 | 6606 | 2091 | 5760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 729 | 4975 | 2091 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities (provisions) | 95 | 1631 |  | 5760 |
|  The maximum exposure to risks | 8153111 | 6086831 | 9322308 | 92856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment assets | 8051144 | 5537836 | 4964712 | 40073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase commitment |  |  | 4352518 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit offerings and others | 101967 | 548995 | 5078 | 52783 |
|  Loss recognized on unconsolidated structured entities |  | 17388 | 113976 | 1040 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | (unit: Korean Won in millions)) | (unit: Korean Won in millions)) | (unit: Korean Won in millions)) | (unit: Korean Won in millions)) |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Asset<br>securitization | Structured<br>Finance | Investment<br>Fund | Real-estate<br>trust |
|  Total asset of the unconsolidated structured entities | 15640521 | 94969317 | &nbsp;&nbsp;&nbsp;&nbsp;94675732 | 1398508 |
|  Assets recognized in the consolidated financial statements related to the unconsolidated structured entities | 8518101 | 4633475 | 4214747 | 54662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTPL | 374423 | 5021 | 3550532 | 10665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI | 3878882 | 46478 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 4264626 | 4579367 | 71662 | 43997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in joint ventures and associates |  |  | 592553 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 170 | 2609 |  |  |
|  Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities | 677 | 1536 |  | 2964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities |  | 673 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities (provisions) | 677 | 863 |  | 2964 |
|  The maximum exposure to risks | 8739034 | 5728977 | 4221072 | 115212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment assets | 8518101 | 4633475 | 4214747 | 54662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit offerings and others | 220933 | 1095502 | 6325 | 60550 |
|  Loss recognized on unconsolidated structured entities | 183 | 11872 | 71309 | 282 |

---

------

##### [**Table of Contents**](#toc)
(7) As of December 31, 2022 and 2021, the share of non-controlling interests on the net income and equity of subsidiaries in which non-controlling interests are significant are as follows: (Unit: Korean Won in millions):

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

---

| | | |
|:---|:---|:---|
|  | December 31, <br>2022 | December 31, <br>2021 |
|  Woori Bank (\*) | 2344816 | 2555166 |
|  Woori Investment Bank Co., Ltd. | 283221 | 251879 |
|  Woori Asset Trust Co., Ltd. | 78434 | 60726 |
|  Woori Asset Management Corp | 34073 | 33768 |
|  PT Bank Woori Saudara Indonesia 1906 Tbk | 92118 | 87741 |
|  Wealth Development Bank | 20759 | 20835 |
|  PT Woori Finance Indonesia Tbk. | 13964 |  |

---

(\*) Hybrid securities issued by Woori Bank

2) Net income attributable to non-controlling interests

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Woori Bank (\*) | &nbsp;&nbsp;&nbsp;&nbsp;113995 | &nbsp;&nbsp;&nbsp;&nbsp;144923 |
|  Woori Financial Capital Co., Ltd. |  | 17949 |
|  Woori Investment Bank Co., Ltd. | 38319 | 33274 |
|  Woori Asset Trust Co., Ltd. | 18074 | 11366 |
|  Woori Asset Management Corp | 290 | 2341 |
|  PT Bank Woori Saudara Indonesia 1906 Tbk | 10806 | 8619 |
|  Wealth Development Bank | 401 | 928 |
|  PT Woori Finance Indonesia Tbk. | 379 |  |

---

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

3) Dividends to non-controlling interests

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2022 | 2021 | 2021 |
|  Woori Bank (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;113,995 |  | &nbsp;&nbsp;&nbsp;&nbsp;144,923 |
|  Woori Financial Capital Co., Ltd. |  |  |  | 4121 |
|  Woori Investment Bank Co., Ltd. |  | 7219 |  | 3610 |
|  Woori Asset Trust Co., Ltd |  | 365 |  | 365 |
|  PT Bank Woori Saudara Indonesia 1906 Tbk |  | 2330 |  | 1262 |

---

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

------

##### [**Table of Contents**](#toc)
**2.** **BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES** 

(1) Basis of presentation

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

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

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

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

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

Meanwhile, the consolidated financial statements of the Group were initially approved by the Board of Directors on February 8, 2023, and were revised and approved on March 3, 2023, and the final approval will be made in the annual general shareholders' meeting on March 24, 2023.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) K-IFRS 1007' *Statement of cash flow* ' - Cash and cash equivalents

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Impact on the statements of financial position

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 | January 1, 2021 |
|  Increase in cash and cash equivalents | 22965162 | 13047255 | 7352253 |
|  Decrease in loans and other financial assets at amortized cost | (22965162) | (13047255) | (7352253) |

---

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Impact on the statements of cash flow

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Increase in cash flows from operating activities | 9981310 | 5600710 |
|  Increase in exchange rate changes on cash and cash equivalents denominated in foreign currencies | (63403) | 94292 |
|  Net increase in cash and cash equivalents | 9981310 | 5600710 |
|  Increase in cash and cash equivalents, the beginning of the year | 13047255 | 7352253 |
|  Increase in cash and cash equivalents, the end of the year | 22965162 | 13047255 |

---

ii) Amendments to K-IFRS 1103 *'Business Combination' –*Reference to the Conceptual Framework

The amendments update a reference of definition of assets and liabilities qualify for recognition in revised Conceptual Framework for Financial Reporting. However, the amendments add an exception for the recognition of liabilities and contingent liabilities within the scope of K-IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets, and K-IFRS 2121 Levies. The amendments also confirm that contingent assets should not be recognized at the acquisition date. The amendment does not have a significant impact on the financial statements.

iii) Amendments to K-IFRS 1037 *'Provisions, Contingent Liabilities and Contingent Assets'* – Onerous Contracts: Cost of Fulfilling a Contract'

The amendments clarify that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts when assessing whether the contract is onerous. The amendment does not have a significant impact on the financial statements.

iv) Amendments to K-IFRS 1016 *'Property, Plant and Equipment'* – Proceeds before intended use

The amendments prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while the entity is preparing the asset for its intended use. Instead, the entity will recognize the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendment does not have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) Annual Improvements to K-IFRS 2018-2020

The annual improvement includes some amendments to K-IFRS 1101 'First time Adoption of Korean International Financial Reporting Standards', K-IFRS 1109 'Financial Instrument's, K-IFRS 1116 'Lease', K-IFRS 1041 'Agriculture'.

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

- K-IFRS 1101 '*First time Adoption of Korean International Financial Reporting Standards'*- Subsidiaries that are first-time adopters

K-IFRS 1109 '*Financial Instrument's* - Fees related to the 10% test for derecognition of financial liabilities <br>

K-IFRS 1116 *'Lease'*- Delete the contents of the lease improvement reimbursement amount. <br>

- K-IFRS 1041 '*Agriculture'* - Measuring fair value

------

##### [**Table of Contents**](#toc)
2) The details of K-IFRSs that have been issued and published as of December 31, 2022 but have not yet reached the effective date, and which the Group have not been early adopted by the Group are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Amendments to K-IFRS 1001 'Presentation of Financial
Statements' – Classification of Liabilities as Current or Non-current

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

ii) Amendments to K-IFRS 1001 *'Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements'* - Disclosure of 'Accounting Policy

'IFRS Practice Statement 2' has been amended to define and disclose important accounting policies and to provide guidance on how to apply the concept of importance. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Group does not expect that these amendments have a significant impact on the financial statements.

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

The amendments require disclosure of valuation gains or losses (limited to those recognized in the profit or loss) of the conversion options or warrants (or financial liabilities including them), if all or part of the financial instrument with exercise price that is adjusted depending on the issuer's share price change is classified as financial liability as defined in paragraph 11 (2) of K-IFRS 1032. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Group does not expect that these amendments have a significant impact on the financial statements.

iv) Amendments to K-IFRS 1008 *'Accounting Policies, Changes in Accounting Estimates and Errors'*– Definition of Accounting Estimates

The amendments have defined accounting estimates and clarified how to distinguish them from changes in accounting policies. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Group does not expect that these amendments have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) Amendments to K-IFRS 1012 *'Income Taxes'* –
deferred tax related to assets and liabilities arising from a single transaction

Additional phrase 'the temporary difference to be added and the temporary difference to be deducted do not occur in the same amount' has been added to initial recognition exception for a transaction in which an asset or liability is initially recognized. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Group does not expect that these amendments have a significant impact on the financial statements.

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

------

##### [**Table of Contents**](#toc)
(2) Basis of consolidated financial statement presentation

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

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

The relative size of the Group's holding of voting rights and dispersion of holdings of the other vote holders; <br>

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

- Rights arising from other contractual arrangements;

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

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
(3) Business combinations

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

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

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

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

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

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

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

The subsidiary's non-controlling interests are identified separately from the Group's equity. If the element of the non-controlling interest in the acquiree is the current interest at the acquisition date and the holder is entitled to a proportional share of the entity's net assets, the non-controlling interest can be measured in 1) fair value or 2) proportionate share of the current equity instrument of the amount recognized for the acquiree's identifiable net assets at the acquisition date. The selection of these metrics is made for each acquisition transaction. All other non-controlling interests are measured at fair value at the acquisition date. The carrying amount of the non-controlling interest after acquisition reflects the proportional interest of the non-controlling interest in changes in equity after acquisition in the initial recognition amount. Even if the non-controlling interest is a negative (-) balance, total comprehensive income is attributed to the non-controlling interest.

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

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

------

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

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

------

##### [**Table of Contents**](#toc)
(4) Investments in joint ventures and associates

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

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

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

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

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

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

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

------

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

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

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

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

(5) Investment in joint operation

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

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

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

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

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

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
(6) Revenue recognition

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

1) Revenues from contracts with customers

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Fees and commission received for brokerage

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Fees and commission received related to credit

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Fees and commission received for electronic finance

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ Fees and commission received on foreign exchange handling

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

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑤ Fees and commission received on foreign exchange

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑥ Fees and commission received for guarantee

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑦ Fees and commission received on credit card

The fees and commission received on credit card consist mainly of merchant account fees and annual fees.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑧ Fees and commission received on securities business

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑨ Fees and commission from trust management

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑩ Fees and commission received on credit Information

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

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| ![LOGO](g473977g57i81.jpg) | Other fees  |

---

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

2) Revenues from sources other than contracts with customers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Interest income

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Loan origination fees and costs

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

3) Dividend income

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

------

##### [**Table of Contents**](#toc)
(7) Accounting for foreign currencies

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

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

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

(8) Cash and cash equivalents

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

------

##### [**Table of Contents**](#toc)
(9) Financial assets and financial liabilities

1) Financial assets

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Business model

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Contractual cash flows

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

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

Conditions that lead to modification of timing or amount of cash flows <br>

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

- Early payment features and maturity extension features

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

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Financial assets at FVTPL

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Financial assets at FVTOCI

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Financial assets at amortized cost

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

------

##### [**Table of Contents**](#toc)
2) Financial liabilities

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

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

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

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

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

3) Reclassification

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

4) Derecognition

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

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

------

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

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

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

5) Fair value of financial instruments

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Financial assets at FVTPL and Financial assets at FVTOCI

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Derivatives

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Adjustment of valuation amount

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

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

------

##### [**Table of Contents**](#toc)
6) Expected credit losses on financial assets

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

- Financial assets at amortized cost

- Debt instruments measured at FVTOCI

- Contract assets as defined by K-IFRS 1115

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Measurement of expected credit losses on financial asset at amortized cost

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Measurement of expected credit losses on financial asset at FVTOCI(Debt instruments)

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

------

##### [**Table of Contents**](#toc)
(10) Offsetting financial instruments

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

(11) Investment properties

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

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

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

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

(12) Premises and equipment

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

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

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

---

| | | |
|:---|:---|:---|
|  | Useful life | Useful life |
|  Buildings used for business purpose |  | 26 to 57 years |
|  Structures in leased office |  | 4 to 5 years |
|  Properties for business purpose |  | 4 to 7 years |

---

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

------

##### [**Table of Contents**](#toc)
(13) Intangible assets and goodwill

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

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

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

---

| | | |
|:---|:---|:---|
|  | Useful life | Useful life |
|  Industrial property rights |  | 5 to 10 years |
|  Development costs |  | 5 years |
|  Software and others |  | 1 to 10 years |

---

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

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

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

(14) Impairment of non-monetary assets

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

------

##### [**Table of Contents**](#toc)
(15) Leases

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① The Group as a lessee

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

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

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

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

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

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

- Fixed payments (including in-substance fixed payments)

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

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

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

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

------

##### [**Table of Contents**](#toc)
When remeasuring a lease liability, the related right-of-use asset is adjusted and if the carrying amount of the right-of-use asset decreases to zero, the remeasurement amount is recognized in profit or loss.

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

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

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

Lease liabilities and right-of-use-asset increased by 1,650 million won, reflecting the exercise impact of the extension and termination options during the current term.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② The Group as a lessor

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

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

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
(16) Derivative instruments

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

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

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

1) Embedded derivatives

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

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

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

2) Hedge accounting

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

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

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

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

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

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

------

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

3) Fair value hedge

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

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

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

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

4) Cash flow hedge

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

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

------

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

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

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

(18) Provisions

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

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

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

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

(19) Equity instruments issued by the Group

1) Capital and compound financial instruments

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

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

------

##### [**Table of Contents**](#toc)
2) Hybrid securities

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

(20) Financial guarantee contracts

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

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

- Loss allowance in accordance with K-IFRS 1109

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

(21) Employee benefits and pensions

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

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
(22) Income taxes

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

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

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

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

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

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

(23) Criteria of calculating earnings per share ("EPS")

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

(24) Share-based payment

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

------

##### [**Table of Contents**](#toc)
**3.** **SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS** 

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

1) COVID-19 effect review

The diffusion of COVID-19 has had a significant impact on the global economy including Korea. Financial and economic shocks may have negative impacts on the Group's financial condition and results of operations in various forms both domestically and internationally, however, the Korean government is providing unprecedented financial and economic relief measures such as extension of maturity of loans. Despite the announcement of these various forms of government support policies, the negative impact of the COVID-19 on the global economy continues.

The Group determined that the credit risk of loan affected by the loan deferment has significantly increased and evaluated that the possibility of default is high. The Group will continue to assess the adequacy of forward-looking information related to the duration of the impact of COVID-19 on economy and government policies.

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

---

| | | | |
|:---|:---|:---|:---|
| | | December 31,<br>2022 | December 31,<br>2021 |
|  Total loans (loan receivables, payment guarantees) that are subject to loan deferment and interest deferment. | Corporate | 1960524 | 2428496 |
|  Total loans (loan receivables, payment guarantees) that are subject to loan deferment and interest deferment. | Retail | 216487 | 167146 |
|  Total loans (loan receivables, payment guarantees) that are subject to loan deferment and interest deferment. | Total | 2177011 | 2595642 |
|  Total loans changed its stage from 12-month to lifetime (Stage 2) expected credit losses. | Corporate | 1777108 | 2125492 |
|  Total loans changed its stage from 12-month to lifetime (Stage 2) expected credit losses. | Retail | 169851 | 134920 |
|  Total loans changed its stage from 12-month to lifetime (Stage 2) expected credit losses. | Total | 1946959 | 2260412 |
|  The expected credit loss allowances that are additionally recognized. | Corporate | 312371 | 275057 |
|  The expected credit loss allowances that are additionally recognized. | Retail | 12643 | 9657 |
|  The expected credit loss allowances that are additionally recognized. | Total | 325014 | 284714 |

---

In addition, as of December 31, 2022 and 2021, the Group applied the overlay in consideration of the potential for insolvency due to market interest rate hikes and the increase in economic uncertainty due to the prolonged spread of COVID-19 when forecasting the future economy.

As of December 31, 2022 and 2021, the monetary effect of the provision for expected credit loss due to the application of the forecast of future economic conditions overlay is as follows. (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2022 | December 31,<br>2021 |
|  Corporate | 347801 | 48583 |
|  Retail | 16256 | 6237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 364057 | 54820 |

---

------

##### [**Table of Contents**](#toc)
Woori Card Co., Ltd. determined that the credit risk of obligors receiving financial support due to COVID-19 significantly increased, and transferred the loss allowance at the amount equivalent to lifetime expected credit loss. As of December 31, 2022, the balance of amortised cost of a financial asset of the obligors who need financial support amounts to 6,670 million won, and the additional provisioned loss allowance is 177 million won.

Woori Financial Capital Co., Ltd. determined that the credit risk of obligors receiving financial support due to COVID-19 significantly increased, and evaluated that the possibility of default is high. As a result, as of December 31, 2022 and 2021, the amortized cost of a financial asset of the obligors subject to the deferment of redemption and interest deferment due to COVID-19 amounts to 52,611 million won and 80,291 million won, and the expected credit loss provisions recognized in relation to them are 10,606 million won and 15,575 million won.

------

##### [**Table of Contents**](#toc)
2) Income taxes

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

3) Valuation of financial instruments

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

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

4) Impairment of financial instruments

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

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

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

5) Defined benefit plan

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

------

##### [**Table of Contents**](#toc)
**4.** **RISK MANAGEMENT** 

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

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

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

(1) Credit risk

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

1) Credit risk management

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

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

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

------

##### [**Table of Contents**](#toc)
2) Measurement of expected credit loss

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

---

| | | | |
|:---|:---|:---|:---|
| Classification | Stage 1 | Stage 2 | Stage 3 |
| Definition | No significant increase in credit risk<br>after initial recognition (\*) | Significant increase in credit risk<br>after initial recognition | Credit-impaired |
|  Loss allowance | 12-month expected credit losses: | Lifetime expected credit losses: | Lifetime expected credit losses: |
|  Loss allowance | Expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date | Expected credit losses that result from all possible default events over the life of the financial instrument | Expected credit losses that result from all possible default events over the life of the financial instrument |

---

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

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

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

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

---

| | |
|:---|:---|
| Corporate Exposures | Retail Exposures |
| Asset quality level 'Precautionary' or lower | Asset quality level 'Precautionary' or lower |
| More than 30 days past due | More than 30 days past due |
| 'Warning' level in early warning system | Significant decrease in credit rating(\*) |
|  Debtor experiencing financial difficulties<br>(Capital impairment, Adverse opinion or Disclaimer of opinion by external auditors) | Deferment of repayment of principal and interest |
| Significant decrease in credit rating (\*) | Deferment of interest |
| Deferment of repayment of principal and interest |  |
| Deferment of interest |  |

---

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

---

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

---

------

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

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

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

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

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

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

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

In measuring the expected credit losses, the Group is also using reasonable and supportable macroeconomic indicators such as GDP growth rate, Personal consumption expenditures increase/decrease rate, consumer price index change rate in order to forecast future economic conditions.

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

- Development of estimation models through regression analysis of corporate retail/year-by-year default rate and macroeconomic indicator data by year

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

- Forecast of macroeconomic variables

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Probability weight

As of December 31, 2022, the probability weights applied to the scenarios of the forecasts of macroeconomic variables is as follows (Unit: %):

<u>Basic Scenario</u> <u>Upside Scenario</u> <u>Downside Scenario</u> <br> Probability weight 52.57 12.52 34.91

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Economic forecast of each major macroeconomic variables by scenario (prospect period: 2023)

As of December 31, 2022, the forecasts of major macroeconomic variables by scenario is as follows (Unit: %)

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Basic Scenario | Basic Scenario | Upside Scenario | Upside Scenario | Downside Scenario | Downside Scenario |
|  GDP growth rate |  | 1.70 |  | 1.89 |  | 1.36 |
|  Personal consumption expenditures increase/decrease rate |  | 2.70 |  | 3.11 |  | 1.97 |
|  Consumer price index change rate |  | 3.60 |  | 3.39 |  | 3.97 |

---

------

##### [**Table of Contents**](#toc)
The results of Woori Bank's sensitivity analysis on expected credit loss provisions due to changes in macroeconomic indicators as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | December 31,<br>2022 |
|  Corporate | Personal consumption expenditures increase/decrease rate | Increase by 1% point | (59987) |
|  |  | Decrease by 1% point | 68036 |
|  Retail | Consumer price index change rate | Increase by 1% point | (24164) |
|  |  | Decrease by 1% point | 28042 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | December 31,<br>2021 |
|  Corporate | GDP growth rate | Increase by 1% point | (68140) |
|  |  | Decrease by 1% point | 74495 |
|  | Personal consumption expenditures increase/decrease rate | Increase by 1% point | (40654) |
|  |  | Decrease by 1% point | 43028 |
|  Retail | GDP growth rate | Increase by 1% point | (8798) |
|  |  | Decrease by 1% point | 9163 |
|  | Consumer price index change rate | Increase by 1% point | (29469) |
|  |  | Decrease by 1% point | 34352 |

---

(\*) The sensitivity of the effect of the GDP growth rate on banks' ECLs is not significant.

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

------

##### [**Table of Contents**](#toc)
3) Maximum exposure

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

The maximum exposure to credit risk as of December 31, 2022 and 2021 is as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  |  | December 31, 2022 | December 31, 2021 |
|  Loans and other financial assets at amortized cost (\*1) | Korean treasury and government agencies | 2877685 | 2207893 |
|  | Banks | 21571097 | 24412685 |
|  | Corporates | 143507852 | 131027256 |
|  | Consumers | 187804095 | 191237783 |
|  | Sub-total | 355760729 | 348885617 |
|  Financial assets at FVTPL (\*2) | Deposits | 34995 | 65072 |
|  | Debt securities | 4270532 | 2743239 |
|  | Loans | 899228 | 667467 |
|  | Derivative assets | 8206181 | 4803131 |
|  | Others | 1505 | 1518 |
|  | Sub-total | 13412441 | 8280427 |
|  Financial assets at FVTOCI | Debt securities | 32145758 | 38126977 |
|  Securities at amortized cost | Debt securities | 28268516 | 17086274 |
|  Derivative assets | Derivative assets (Designated for hedging) | 37786 | 106764 |
|  Off-balance accounts | Payment guarantees (\*3) | 11921586 | 12987809 |
|  | Loan commitments | 118172070 | 114414462 |
|  | Sub-total | 130093656 | 127402271 |
|  Total |  | 559718886 | 539888330 |

---

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

(\*2) Puttable financial instruments are not included.

---

| | |
|:---|:---|
| (\*3) | As of December 31, 2022 and 2021, the financial guarantee amount of 3,095,091 million won and 3,960,383 million won are included, respectively.  |

---

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Credit risk exposure by geographical areas

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Korea | China | USA | UK | Japan | Others (\*) | Total |
|  Loans and other financial assets at amortized cost | 331572328 | 5188826 | 4721440 | 215174 | 719301 | 13343660 | 355760729 |
|  Securities at amortized cost | 26883967 | 642089 | 421248 | 16658 |  | 304554 | 28268516 |
|  Financial assets at FVTPL | 9272673 | 2607 | 2210580 | 318322 | 168013 | 1440246 | 13412441 |
|  Financial assets at FVTOCI | 27780323 | 806320 | 2297076 | 1726 | 41421 | 1218892 | 32145758 |
|  Derivative assets (Designated for hedging) | 37786 |  |  |  |  |  | 37786 |
|  Off-balance accounts | 126531020 | 981139 | 380209 | 25644 | 16987 | 2158657 | 130093656 |
|  Total | 522078097 | 7620981 | 10030553 | 577524 | 945722 | 18466009 | 559718886 |

---

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Korea | China | USA | UK | Japan | Others (\*) | Total |
|  Loans and other financial assets at amortized cost | 325947526 | 5620622 | 3742331 | 212821 | 635939 | 12726378 | 348885617 |
|  Securities at amortized cost | 16785265 | 92880 | 27018 |  |  | 181111 | 17086274 |
|  Financial assets at FVTPL | 6150464 | 1330 | 1188358 | 195048 | 61315 | 683912 | 8280427 |
|  Financial assets at FVTOCI | 34242133 | 808359 | 1713435 | 1755 | 23193 | 1338102 | 38126977 |
|  Derivative assets (Designated for hedging) | 11678 |  | 95086 |  |  |  | 106764 |
|  Off-balance accounts | 123375839 | 1001430 | 375929 | 31116 | 32402 | 2585555 | 127402271 |
|  Total | 506512905 | 7524621 | &nbsp;&nbsp;&nbsp;&nbsp;7142157 | 440740 | 752849 | 17515058 | 539888330 |

---

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

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Credit risk exposure by industries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and
insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of December 31, 2022 and 2021 (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Service | Manufacturing | Finance and<br>insurance | Construction | Individuals | Others | Total |
|  Loans and other financial assets at amortized cost | 78173716 | 37013486 | 31485795 | 5613480 | 183167572 | 20306680 | 355760729 |
|  Securities at amortized cost | 239141 |  | 16198175 | 199924 |  | 11631276 | 28268516 |
|  Financial assets at FVTPL | 200678 | 184019 | 9776234 | 51244 | 1167 | 3199099 | 13412441 |
|  Financial assets at FVTOCI | 417877 | 231132 | 22249839 | 48225 |  | 9198685 | 32145758 |
|  Derivative assets (Designated for hedging) |  |  | 37786 |  |  |  | 37786 |
|  Off-balance accounts | 18661383 | 22492863 | 10523731 | 3143673 | 69404456 | 5867550 | 130093656 |
|  Total | 97692795 | 59921500 | 90271560 | 9056546 | 252573195 | 50203290 | 559718886 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Service | Manufacturing | Finance and<br>insurance | Construction | Individuals | Others | Total |
|  Loans and other financial assets at amortized cost | 67895018 | 37679784 | 32493347 | 4303491 | 185972844 | 20541133 | 348885617 |
|  Securities at amortized cost | 479291 |  | 7061770 | 250607 |  | 9294606 | 17086274 |
|  Financial assets at FVTPL | 115346 | 146277 | 6646922 | 13623 | 1836 | 1356423 | 8280427 |
|  Financial assets at FVTOCI | 376998 | 258866 | 29444989 | 131967 |  | 7914157 | 38126977 |
|  Derivative assets (Designated for hedging) |  |  | 79369 | 27395 |  |  | 106764 |
|  Off-balance accounts | 18565570 | 18994662 | 11763667 | 3900766 | 67966826 | 6210780 | 127402271 |
|  Total | 87432223 | 57079589 | 87490064 | 8627849 | 253941506 | 45317099 | 539888330 |

---

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② The detailed industries of financial assets and corporate loans that might get affected by the spread of COVID-19 as of December 31, 2022 and 2021 are as follow and the industries that can be affected may change by future economic conditions. (Unit: Korean Won in millions):

< Woori Bank >

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  |  |  | Loans and other<br>financial assets at<br>amortized cost | Financial assets at<br>FVTPL | Financial assets at<br>FVTOCI |
|  Service business | Distribution business | General retail business | 1157537 | 824 | 6296 |
|  |  | General wholesale business | 1801361 | 1659 |  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 2958898 | 2483 | 6296 |
|  | Accommodation business |  | 1434456 | 2228 | 24121 |
|  | Travel business |  | 48655 |  |  |
|  | Art/sports, leisure service |  | 1780739 | 1012 |  |
|  | Food business |  | 1520098 | 426 |  |
|  | Transportation business |  | 357940 | 181 |  |
|  | Education Business |  | 425779 | 169 |  |
|  | Others |  | 1560457 | 773 |  |
|  | Sub-total | Sub-total | 10087022 | 7272 | 30417 |
|  Manufacturing | Textile |  | 2361092 | 767 | 8898 |
|  | Metal |  | 1579004 | 191 |  |
|  | Non-metal |  | 796671 | 1529 | 7629 |
|  | Chemical |  | 3649189 | 158 |  |
|  | Electronics |  | 1409475 | 58 |  |
|  | Others |  | 3280434 | 1287 | 11452 |
|  | Sub-total | Sub-total | 13075865 | 3990 | 27979 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Total |  | 23162887 | 11262 | 58396 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2022 | December 31, 2022 |
|  |  |  | Off-balance accounts | Total |
|  Service business | Distribution business | General retail business | 496830 | 1661487 |
|  |  | General wholesale business | 533368 | 2336388 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 1030198 | 3997875 |
|  | Accommodation business |  | 161573 | 1622378 |
|  | Travel business |  | 16369 | 65024 |
|  | Art/sports, leisure service |  | 104065 | 1885816 |
|  | Food business |  | 179977 | 1700501 |
|  | Transportation business | Transportation business | 248801 | 606922 |
|  | Education Business | Education Business | 40891 | 466839 |
|  | Others |  | 301343 | 1862573 |
|  | Sub-total | Sub-total | 2083217 | 12207928 |
|  Manufacturing | Textile |  | 1076002 | 3446759 |
|  | Metal |  | 1225601 | 2804796 |
|  | Non-metal |  | 381014 | 1186843 |
|  | Chemical |  | 3627183 | 7276530 |
|  | Electronics |  | 1202758 | 2612291 |
|  | Others |  | 2530964 | 5824137 |
|  | Sub-total | Sub-total | 10043522 | 23151356 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Total |  | 12126739 | 35359284 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  |  |  | Loans and other<br>financial assets at<br>amortized cost | Financial assets at<br>FVTPL | Financial assets at<br>FVTOCI |
|  Service business | Distribution business | General retail business | 754850 | 274 |  |
|  |  | General wholesale business | 809893 | 221 |  |
|  |  | Sub-total | 1564743 | 495 |  |
|  | Accommodation business |  | 1441185 | 625 | 23840 |
|  | Travel business |  | 53302 |  |  |
|  | Art/sports, leisure service |  | 600746 | 503 |  |
|  | Food business |  | 1279128 | 216 |  |
|  | Transportation business |  | 404120 | 77 |  |
|  | Others |  | 1050229 | 599 |  |
|  | Sub-total | Sub-total | 6393453 | 2515 | 23840 |
|  Manufacturing | Textile |  | 2626493 | 724 | 10718 |
|  | Metal |  | 199877 | 10 |  |
|  | Non-metal |  | 148471 | 24 |  |
|  | Chemical |  | 904563 | 1994 |  |
|  | Electronics |  | 103510 | 31 |  |
|  | Others |  | 191865 |  |  |
|  | Sub-total | Sub-total | 4174779 | 2783 | 10718 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 10568232 | 5298 | 34558 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2021 | December 31, 2021 |
|  |  |  | Off-balance accounts | Total |
|  Service business | Distribution business | General retail business | 299064 | 1054188 |
|  |  | General wholesale business | 237678 | 1047792 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 536742 | 2101980 |
|  | Accommodation business |  | 181563 | 1647213 |
|  | Travel business |  | 12455 | 65757 |
|  | Art/sports, leisure service |  | 63660 | 664909 |
|  | Food business |  | 179799 | 1459143 |
|  | Transportation business |  | 167883 | 572080 |
|  | Others |  | 191837 | 1242665 |
|  | Sub-total | Sub-total | 1333939 | 7753747 |
|  Manufacturing | Textile |  | 1012989 | 3650924 |
|  | Metal |  | 9704 | 209591 |
|  | Non-metal |  | 48171 | 196666 |
|  | Chemical |  | 689895 | 1596452 |
|  | Electronics |  | 33389 | 136930 |
|  | Others |  | 87587 | 279452 |
|  | Sub-total | Sub-total | 1881735 | 6070015 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 3215674 | 13823762 |

---

------

##### [**Table of Contents**](#toc)
< Woori Card Co., Ltd. >

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Loans and other<br>financial assets at<br>amortized cost | Financial assets at<br>FVTPL | Financial assets at<br>FVTOCI | Off-balance<br>accounts | Total |
|  Accommodation business | 5562 |  |  | 9762 | 15324 |
|  Travel business | 7927 |  |  | 15182 | 23109 |
|  Aviation | 1072 |  |  | 3760 | 4832 |
|  Cosmetics industry | 11364 |  |  | 9766 | 21130 |
|  Distribution business | 30904 |  |  | 36190 | 67094 |
|  Food industry | 134006 |  |  | 115695 | 249701 |
|  Art/sports, leisure service | 24614 |  |  | 41003 | 65617 |
|  Total | 215449 |  |  | 231358 | 446807 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Loans and other<br>financial assets at<br>amortized cost | Financial assets at<br>FVTPL | Financial assets at<br>FVTOCI | Off-balance<br>accounts | Total |
|  Accommodation business | 2341 |  |  | 11472 | 13813 |
|  Travel business | 3334 |  |  | 20056 | 23390 |
|  Aviation | 983 |  |  | 4025 | 5008 |
|  Cosmetics industry | 3187 |  |  | 10692 | 13879 |
|  Distribution business | 7582 |  |  | 38741 | 46323 |
|  Food industry | 30267 |  |  | 122793 | 153060 |
|  Art/sports, leisure service | 8336 |  |  | 44286 | 52622 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;56030 |  |  | 252065 | 308095 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  |  |  | Loans and other<br> financial assets at<br>amortized cost | Financial assets at<br> FVTPL | Financial assets at<br>FVTOCI |
|  Service business | Distribution business | General retail business | 363655 |  |  |
|  |  | General wholesale business | 266515 |  |  |
|  |  | Sub-total | 630170 |  |  |
|  | Accommodation business | Accommodation business | 40237 |  |  |
|  | Travel business | Travel business | 5880 |  |  |
|  | Art/sports, leisure service | Art/sports, leisure service | 66388 |  |  |
|  | Food business | Food business | 228254 |  |  |
|  | Transportation business | Transportation business | 367311 |  |  |
|  | Education business | Education business | 52652 |  |  |
|  | Others | Others | 1997073 |  |  |
|  | Sub-total | Sub-total | 3387965 |  |  |
|  Manufacturing | Textile | Textile | 15204 |  |  |
|  | Metal | Metal | 25274 |  |  |
|  | Non-metal | Non-metal | 4067 |  |  |
|  | Chemical | Chemical | 14071 |  |  |
|  | Transportation | Transportation | 2867 |  |  |
|  | Electronics | Electronics | 28202 |  |  |
|  | Cosmetics | Cosmetics | 1192 |  |  |
|  | Others | Others | 235972 |  |  |
|  | Sub-total | Sub-total | 326849 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business |  | 3714814 |  |  |
|  Other business | Others | Others | 5337618 | 21652 |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 9052432 | 21652 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2022 | December 31, 2022 |
|  |  |  | Off-balance accounts | Total |
|  Service business | Distribution business | General retail business |  | 363655 |
|  |  | General wholesale business |  | 266515 |
|  |  | Sub-total |  | 630170 |
|  | Accommodation business | Accommodation business |  | 40237 |
|  | Travel business | Travel business |  | 5880 |
|  | Art/sports, leisure service | Art/sports, leisure service |  | 66388 |
|  | Food business | Food business |  | 228254 |
|  | Transportation business | Transportation business |  | 367311 |
|  | Education business | Education business |  | 52652 |
|  | Others | Others | 206191 | 2203264 |
|  | Sub-total | Sub-total | 206191 | 3594156 |
|  Manufacturing | Textile | Textile |  | 15204 |
|  | Metal | Metal |  | 25274 |
|  | Non-metal | Non-metal |  | 4067 |
|  | Chemical | Chemical |  | 14071 |
|  | Transportation | Transportation |  | 2867 |
|  | Electronics | Electronics |  | 28202 |
|  | Cosmetics | Cosmetics |  | 1192 |
|  | Others | Others | 19892 | 255864 |
|  | Sub-total | Sub-total | 19892 | 346741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business |  | 226083 | 3940897 |
|  Other business | Others | Others | 347025 | 5706295 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 573108 | 9647192 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  |  |  | Loans and other<br>financial assets at<br>amortized cost | Financial assets at<br>FVTPL | Financial assets at<br>FVTOCI |
|  Service business | Distribution business | General retail business | 77841 |  |  |
|  |  | General wholesale business | 292832 |  |  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 370673 |  |  |
|  | Accommodation business |  | 7338 |  |  |
|  | Travel business |  | 57 |  |  |
|  | Art/sports, leisure service |  | 8544 |  |  |
|  | Food business |  | 125075 |  |  |
|  | Transportation business |  | 598972 |  |  |
|  | Education business |  | 22118 |  |  |
|  | Others |  | 102787 |  |  |
|  | Sub-total | Sub-total | 1235564 |  |  |
|  Manufacturing | Textile |  | 727 |  |  |
|  | Metal |  | 2824 |  |  |
|  | Non-metal |  | 698 |  |  |
|  | Chemical |  | 172 |  |  |
|  | Transportation |  | 438 |  |  |
|  | Electronics |  | 3993 |  |  |
|  | Cosmetics |  | 685 |  |  |
|  | Others |  | 108540 |  |  |
|  | Sub-total | Sub-total | 118077 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business |  | 1353641 |  |  |
|  Other business | Others |  | 6489394 | 28222 |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 7843035 | 28222 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2021 | December 31, 2021 |
|  |  |  | Off-balance accounts | Total |
|  Service business | Distribution business | General retail business |  | 77841 |
|  |  | General wholesale business |  | 292832 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total |  | 370673 |
|  | Accommodation business | Accommodation business |  | 7338 |
|  | Travel business | Travel business |  | 57 |
|  | Art/sports, leisure service | Art/sports, leisure service |  | 8544 |
|  | Food business | Food business |  | 125075 |
|  | Transportation business | Transportation business |  | 598972 |
|  | Education business | Education business |  | 22118 |
|  | Others | Others | 140549 | 243336 |
|  | Sub-total | Sub-total | 140549 | 1376113 |
|  Manufacturing | Textile | Textile |  | 727 |
|  | Metal | Metal |  | 2824 |
|  | Non-metal | Non-metal |  | 698 |
|  | Chemical | Chemical |  | 172 |
|  | Transportation | Transportation |  | 438 |
|  | Electronics | Electronics |  | 3993 |
|  | Cosmetics | Cosmetics |  | 685 |
|  | Others | Others | 13432 | 121972 |
|  | Sub-total | Sub-total | 13432 | 131509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total COVID-19 vulnerable business |  | 153981 | 1507622 |
|  Other business | Others |  | 812597 | 7330213 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 966578 | 8837835 |

---

------

##### [**Table of Contents**](#toc)
< Woori Investment Bank Co., Ltd. >

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Loans and other<br>financial assets at<br>amortized cost | Financial assets at<br>FVTPL | Financial assets at<br>FVTOCI | Off-balance<br>accounts | Total |
|  Accommodation business | 19323 |  |  |  | 19323 |
|  Distribution business | 10084 | 19774 |  |  | 29858 |
|  Art/sports, leisure service | 59160 |  |  |  | 59160 |
|  Total | 88567 | 19774 |  |  | 108341 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Loans and other<br>financial assets at<br>amortized cost | Financial assets at<br>FVTPL | Financial assets at<br>FVTOCI | Off-balance<br>accounts | Total |
|  Accommodation business | 57142 |  |  |  | 57142 |
|  Distribution business | 12885 |  |  |  | 12885 |
|  Art/sports, leisure service | 31772 |  |  |  | 31772 |
|  Total | 101799 |  |  |  | 101799 |

---

------

##### [**Table of Contents**](#toc)
4) Credit risk exposure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Financial assets

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL and derivative asset (designated for hedging) as of December 31, 2022 and 2021 is as follows (Unit: Korean Won in millions):

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Stage 1 | Stage 1 | Stage 2 | Stage 2 | Stage 3 | Credit<br>impairment<br>model | Total | Loss<br>allowance | Total, net |
|  | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Stage 3 | Credit<br>impairment<br>model | Total | Loss<br>allowance | Total, net |
|  Loans and other financial assets at amortized cost | 308498799 | 23391187 | 13061081 | 11533632 | 1447967 | 313717 | 358246383 | (2485654) | 355760729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean treasury and government agencies | 2879057 | 39 |  |  |  |  | 2879096 | (1411) | 2877685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banks | 21182445 | 393181 | 2125 |  | 18053 |  | 21595804 | (24707) | 21571097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 120407588 | 16680863 | 2556885 | 4429148 | 637187 | 313717 | 145025388 | (1517536) | 143507852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General business | 74939770 | 9291691 | 1754620 | 3083232 | 421659 |  | 89490972 | (1016039) | 88474933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Small- and medium-sized enterprise | 34965279 | 6751297 | 754668 | 1257741 | 173818 |  | 43902803 | (400328) | 43502475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project financing and others | 10502539 | 637875 | 47597 | 88175 | 41710 | 313717 | 11631613 | (101169) | 11530444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumers | 164029709 | 6317104 | 10502071 | 7104484 | 792727 |  | 188746095 | (942000) | 187804095 |
|  Securities at amortized cost | 28276901 |  |  |  |  |  | 28276901 | (8385) | 28268516 |
|  Financial assets at FVTOCI (\*3) | 31914193 | 231565 |  |  |  |  | 32145758 | (11805) | 32145758 |
|  Total | 368689893 | 23622752 | 13061081 | 11533632 | 1447967 | 313717 | 418669042 | (2505844) | 416175003 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Collateral value | Collateral value | Collateral value | Collateral value | Collateral value |
|  | Stage1 | Stage2 | Stage3 | Credit<br>impairment<br>model | Total |
|  Loans and other financial assets at amortized cost | 213228740 | 19354919 | 607614 | 313717 | 233504990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean treasury and government agencies | 24276 |  |  |  | 24276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banks | 1858595 |  |  |  | 1858595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 82314488 | 4982087 | 316085 | 313717 | 87926377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General business | 44465799 | 3390139 | 194597 |  | 48050535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Small- and medium-sized enterprise | 32503289 | 1537173 | 84798 |  | 34125260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project financing and others | 5345400 | 54775 | 36690 | 313717 | 5750582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumers | 129031381 | 14372832 | 291528 |  | 143695741 |
|  Securities at amortized cost |  |  |  |  |  |
|  Financial assets at FVTOCI (\*3) |  |  |  |  |  |
|  Total | 213228740 | 19354919 | 607614 | 313717 | 233504990 |

---

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

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

---

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

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Stage 1 | Stage 1 | Stage 2 | Stage 2 | Stage 3 | Total | Loss<br>allowance | Total, net |
|  | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Stage 3 | Total | Loss<br>allowance | Total, net |
|  Loans and other financial assets at amortized cost | 303317270 | 22734430 | 13270491 | 10190307 | 1332644 | 350845142 | (1959525) | 348885617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean treasury and government agencies | 2211798 | 9 | 9 |  |  | 2211816 | (3923) | 2207893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banks | 23865911 | 492447 | 46373 |  | 23509 | 24428240 | (15555) | 24412685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 108917062 | 15952017 | 2698907 | 3963782 | 658923 | 132190691 | (1163435) | 131027256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General business | 68767641 | 9010115 | 1886740 | 2597136 | 438537 | 82700169 | (785908) | 81914261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Small- and medium-sized enterprise | 33306787 | 6459338 | 790750 | 1353313 | 156440 | 42066628 | (322635) | 41743993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project financing and others | 6842634 | 482564 | 21417 | 13333 | 63946 | 7423894 | (54892) | 7369002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumers | 168322499 | 6289957 | 10525202 | 6226525 | 650212 | 192014395 | (776612) | 191237783 |
|  Securities at amortized cost | 17091509 |  |  |  |  | 17091509 | (5235) | 17086274 |
|  Financial assets at FVTOCI (\*3) | 37917922 | 209055 |  |  |  | 38126977 | (12146) | 38126977 |
|  Total | 358326701 | 22943485 | 13270491 | 10190307 | 1332644 | 406063628 | (1976906) | 404098868 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Collateral value | Collateral value | Collateral value | Collateral value |
|  | Stage1 | Stage2 | Stage3 | Total |
|  Loans and other financial assets at amortized cost | 208188057 | 18098940 | 643183 | 226930180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean treasury and government agencies | 20679 |  |  | 20679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banks | 1287055 |  |  | 1287055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 74403502 | 4796510 | 351837 | 79551849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General business | 40288663 | 3120790 | 220792 | 43630245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Small- and medium-sized enterprise | 30852567 | 1675720 | 80830 | 32609117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project financing and others | 3262272 |  | 50215 | 3312487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumers | 132476821 | 13302430 | 291346 | 146070597 |
|  Securities at amortized cost |  |  |  |  |
|  Financial assets at FVTOCI (\*3) |  |  |  |  |
|  Total | 208188057 | 18098940 | 643183 | 226930180 |

---

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

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

---

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

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Payment Guarantees and commitments

The credit quality of the payment guarantees and loan commitments as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
| Financial assets | Stage 1 | Stage 1 | Stage 2 | Stage 2 | Stage3 | Total |
| Financial assets | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Stage3 | Total |
|  Off-balance accounts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment Guarantees | 10790470 | 846997 | 25826 | 245061 | 13232 | 11921586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan Commitments | 113169542 | 2610173 | 1638982 | 753139 | 234 | 118172070 |
|  Total | 123960012 | 3457170 | 1664808 | 998200 | 13466 | 130093656 |

---

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

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

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| Financial assets | Stage 1 | Stage 1 | Stage 2 | Stage 2 | Stage3 | Total |
| Financial assets | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Above<br>appropriate<br>credit rating<br>(\*1) | Less than a<br>limited<br>credit rating<br>(\*2) | Stage3 | Total |
|  Off-balance accounts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment Guarantees | 11560908 | 1037142 | 47549 | 275166 | 67044 | 12987809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan Commitments | 107916434 | 3591413 | 2072348 | 832173 | 2094 | 114414462 |
|  Total | 119477342 | 4628555 | 2119897 | 1107339 | 69138 | 127402271 |

---

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

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

5) Collateral and other credit enhancements

For the years ended December 31, 2022 and 2021, there have been no significant changes in the value of collateral or other credit enhancements held by the Group and there have been no significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Group.

6) Among financial assets that measured loss allowance at lifetime expected credit losses, amortized costs before changes in contractual cash flows as of December 31, 2022 and 2021 are 149,511 million won and 145,594 million won, respectively, with net losses recognized along with the changes 8,474 million won and 11,734 million won, respectively. 

7) The Group determines which loan is subject to write-off in accordance with internal guidelines and writes off loan receivables when it is determined that the loans are practically irrecoverable. For example, loans are practically irrecoverable when application is made for rehabilitation under the Debtor Rehabilitation and Bankruptcy Act and loans are confirmed as irrecoverable by the court's decision to waive debtor's obligation, or when it is impossible to recover the loan amount through legal means such as auctioning of debtor's assets or through any other means of recovery available. 

As the Group manages receivables that have not lost the right of claim to the debtor for the grounds of incomplete statute limitation and uncollected receivables under the related laws as receivable charge-offs, the balance as of December 31, 2022 and 2021 are 9,825,284 million won and 10,107,413 million won. In addition, the contractual non-recoverable amount of financial assets amortized for the year ended December 31, 2022, but still in the process of recovery is 1,382,281 million won.

(2) Market risk

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

1) Market risk management

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Trading activities

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

------

##### [**Table of Contents**](#toc)
Woori Bank, a subsidiary of the Group, uses the internal model approved by the Financial Supervisory Service to measure the VaR using the Historical Simulation Method based on a 99% confidence level and a 10-day retention period, and calculates equity capital required for market risk for calculating the BIS ratio. For internal management purposes, limit management is performed on a daily basis measuring VaR based on a 99% confidence and 1 day retention period. In addition, Woori Bank perform a daily verification that compares VaR measurement and profit and loss to verify the suitability of the model.

The minimum, maximum and average VaR of the Bank for the year December 31, 2022 and 2021, and the VaR of the Bank as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31,<br>2022 | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2022 | December 31,<br>2021 | For the year ended<br>December 31, 2021 | For the year ended<br>December 31, 2021 | For the year ended<br>December 31, 2021 |
| Risk factor | December 31,<br>2022 | Average | Maximum | Minimum | December 31,<br>2021 | Average | Maximum | Minimum |
|  Interest rate | 11800 | 8847 | 11987 | 4298 | 4177 | 4681 | 14017 | 2405 |
|  Stock price | 7055 | 6590 | 12448 | 1806 | 2972 | 3637 | 6676 | 1609 |
|  Foreign currencies | 17608 | 14002 | 22251 | 5421 | 5904 | 6745 | 13144 | 4747 |
|  Diversification | (17354) | (12725) | (19640) | (4201) | (6072) | (7300) | (20006) | (3627) |
|  Total VaR(\*) | 19109 | 16714 | 27046 | 7324 | 6981 | 7763 | 13831 | 5134 |

---

---

| | |
|:---|:---|
| (\*) | VaR (Value at Risk): Retention period of 1 day, Maximum expected losses under 99% level of confidence.  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Non-trading activities

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

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

------

##### [**Table of Contents**](#toc)
△EVE and △NII calculated on interest risk in banking book(IRRBB) basis for assets and liabilities by subsidiary as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  | △EVE (\*1) | △NII (\*2) | △EVE (\*1) | △NII (\*2) |
|  Woori Bank | 411447 | 448509 | 920290 | 195186 |
|  Woori Card Co., Ltd. | 139005 | 185637 | 126576 | 59114 |
|  Woori Financial Capital Co., Ltd. | 43098 | 13814 | 58794 | 1384 |
|  Woori Investment Bank Co., Ltd. | 26311 | 8229 | 17607 | 5556 |
|  Woori Asset Trust Co., Ltd. | 1137 | 6736 | 820 | 1709 |
|  Woori Asset Management Corp. | 913 | 1299 | 1411 | 504 |
|  Woori Savings Bank | 6618 | 10348 | 15175 | 949 |
|  Woori Private Equity Asset Management Co., Ltd. | 547 | 886 | 32 | 59 |
|  Woori Global Asset Management Co., Ltd. | 251 | 538 | 246 | 143 |
|  Woori Financial F&I Co., Ltd. | 26069 | 219 |  |  |

---

(\*1) △EVE: change in Economic Value of Equity

(\*2) △NII: change in Net Interest Income

------

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over 5<br>years | Total |
|  Asset: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost | 224863400 | 56669335 | 15469920 | 15108779 | 59454649 | 5963926 | 377530009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTPL | 1888996 | 119725 | 1364 | 4670 | 71620 | 13129 | 2099504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI | 6093805 | 4224460 | 3014625 | 3550982 | 15409527 | 584203 | 32877602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities at amortized cost | 2749432 | 1806804 | 1768936 | 1427736 | 20126354 | 2100203 | 29979465 |
|  Total | 235595633 | 62820324 | 20254845 | 20092167 | 95062150 | 8661461 | 442486580 |
|  Liability: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers | 167237029 | 49107093 | 33506265 | 40006233 | 55855781 | 69861 | 345782262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 14829024 | 4159096 | 1542340 | 1183331 | 6654602 | 472325 | 28840718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 9068737 | 4905727 | 4633137 | 4962350 | 19621659 | 3298581 | 46490191 |
|  Total | 191134790 | 58171916 | 39681742 | 46151914 | 82132042 | 3840767 | 421113171 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over 5<br>years | Total |
|  Asset: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost | 205915030 | 58661091 | 14461769 | 12840318 | 62337321 | 5204605 | 359420134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTPL | 1725063 | 52361 | 49843 | 17817 | 223107 | 13501 | 2081692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI | 5489649 | 4741319 | 3915011 | 4139102 | 19962071 | 634111 | 38881263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities at amortized cost | 1297865 | 847134 | 813405 | 949475 | 11990559 | 2116986 | 18015424 |
|  Total | 214427607 | 64301905 | 19240028 | 17946712 | 94513058 | 7969203 | 418398513 |
|  Liability: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers | 145744829 | 47792440 | 33334918 | 28615157 | 62635705 | 59155 | 318182204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 11422868 | 4168941 | 1788597 | 1540533 | 5119291 | 428660 | 24468890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 8325421 | 3035764 | 3203743 | 3174902 | 25036943 | 3342284 | 46119057 |
|  Total | 165493118 | 54997145 | 38327258 | 33330592 | 92791939 | 3830099 | 388770151 |

---

2) Currency risk

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

Financial instruments in foreign currencies exposed to currency risk as of December 31, 2022 and 2021 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | | USD | USD | JPY | JPY | CNY | CNY | EUR | EUR | Others | Total |
|  | | Foreign<br>currency | Korean<br>Won<br>equivalent | Foreign<br>currency | Korean<br>Won<br>equivalent | Foreign<br>currency | Korean<br>Won<br>equivalent | Foreign<br>currency | Korean<br>Won<br>equivalent | Korean<br>Won<br>equivalent | Korean<br>Won<br>equivalent |
|  Asset | Cash and cash equivalents | 9041 | 11457194 | 64824 | 617888 | 1542 | 279779 | 484 | 653870 | 1022909 | 14031640 |
|  | Loans and other financial assets at amortized cost | 24361 | 30872442 | 116298 | 1108529 | 24637 | 4470059 | 2510 | 3391155 | 4952002 | 44794187 |
|  | Financial assets at FVTPL | 970 | 1229059 | 25416 | 242260 |  |  | 358 | 484172 | 176057 | 2131548 |
|  | Financial assets at FVTOCI | 3307 | 4191383 |  |  | 3999 | 725511 | 2 | 2573 | 725271 | 5644738 |
|  | Securities at amortized cost | 576 | 729811 |  |  | 3540 | 642214 | 69 | 93250 | 206497 | 1671772 |
|  | Total | 38255 | 48479889 | 206538 | 1968677 | 33718 | 6117563 | 3423 | 4625020 | 7082736 | 68273885 |
|  Liability | Financial liabilities at FVTPL | 415 | 526553 | 26766 | 255128 |  |  | 322 | 434590 | 274895 | 1491166 |
|  | Deposits due to customers | 24569 | 31135881 | 227260 | 2166196 | 28125 | 5102886 | 2108 | 2847863 | 5008487 | 46261313 |
|  | Borrowings | 6894 | 8737229 | 44365 | 422876 | 1023 | 185652 | 431 | 582034 | 2179085 | 12106876 |
|  | Debentures | 4174 | 5289246 |  |  |  |  | 195 | 263187 | 339188 | 5891621 |
|  | Other financial liabilities | 3040 | 3852255 | 8685 | 82783 | 4295 | 779233 | 380 | 513285 | 200249 | 5427805 |
|  | Total | 39092 | 49541164 | 307076 | 2926983 | 33443 | 6067771 | 3436 | 4640959 | 8001904 | 71178781 |
|  Off-balance accounts | Off-balance accounts | 6698 | 8488374 | 34512 | 328964 | 1141 | 207012 | 787 | 1063680 | 868470 | 10956500 |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | | USD | USD | JPY | JPY | CNY | CNY | EUR | EUR | Others | Total |
|  | | Foreign<br>currency | Korean<br>Won<br>equivalent | Foreign<br>currency | Korean<br>Won<br>equivalent | Foreign<br>currency | Korean<br>Won<br>equivalent | Foreign<br>currency | Korean<br>Won<br>equivalent | Korean<br>Won<br>equivalent | Korean<br>Won<br>equivalent |
|  Asset | Cash and cash equivalents | 3176 | 3765800 | 32829 | 338222 | 1236 | 230188 | 94 | 125513 | 971774 | 5431497 |
|  | Loans and other financial assets at amortized cost | 28771 | 34107769 | 147981 | 1504891 | 23733 | 4420551 | 2329 | 3126363 | 5604781 | 48764355 |
|  | Financial assets at FVTPL | 468 | 556296 | 14618 | 150596 |  |  | 327 | 438662 | 71369 | 1216923 |
|  | Financial assets at FVTOCI | 3195 | 3787466 |  |  | 3899 | 726310 | 33 | 44638 | 741348 | 5299762 |
|  | Securities at amortized cost | 240 | 283935 |  |  | 499 | 92917 | 29 | 39142 | 138422 | 554416 |
|  | Total | 35850 | 42501266 | 195428 | 1993709 | 29367 | 5469966 | 2812 | 3774318 | 7527694 | 61266953 |
|  Liability | Financial liabilities at FVTPL | 274 | 324420 | 16384 | 168798 |  |  | 239 | 321354 | 203523 | 1018095 |
|  | Deposits due to customers | 19803 | 23476384 | 219514 | 2261520 | 26342 | 4906441 | 1640 | 2201233 | 4798322 | 37643900 |
|  | Borrowings | 5766 | 6835191 | 31601 | 325745 |  |  | 349 | 469124 | 1395597 | 9025657 |
|  | Debentures | 3566 | 4228055 |  |  |  |  |  |  | 341621 | 4569676 |
|  | Other financial liabilities | 2739 | 3247454 | 10673 | 109958 | 2658 | 495125 | 335 | 449897 | 211392 | 4513826 |
|  | Total | 32148 | 38111504 | 278172 | 2866021 | 29000 | 5401566 | 2563 | 3441608 | 6950455 | 56771154 |
|  Off-balance accounts | Off-balance accounts | 8047 | 9540185 | 32777 | 337685 | 2533 | 471852 | 598 | 803357 | 1250186 | 12403265 |

---

------

##### [**Table of Contents**](#toc)
3) Interest Rate Benchmark Reform Risk Management

The Group closely monitors the outputs and markets of various industrial working groups that manage the transition to new interest rate benchmark, which includes announcements by LIBOR regulators.

A fundamental shift in interest rate indicators (hereinafter referred to as "interest rate benchmark reform") is taking place around the world, and some Interbank Offered Rates ("IBORs") are being replaced by new risk-free rates. In particular, for the case of LIBOR, except for USD LIBOR for overnight rate, 1, 3, 6, and 12 month rates, all of the calculations were suspended as of December 31, 2021, and the aforementioned 5 USD LIBORs will also be suspended as of June 30, 2023.

The Group established a LIBOR-related response plan consisting of the business flow of risk management, accounting, tax, law, computerization and customer management. The purpose of the plan is to identify the impact and risks associated with interest rate benchmark reform within the business, and to prepare and implement an action plan to ensure a smooth transition to alternative interest rates. The Group aims to close the response plan in line with the supervisory authority's response guidelines.

The details of Woori Bank's financial instruments that have not completed the conversion to the LIBOR-related interest rates benchmark at the end of the year are as follows: Non-derivative financial instrument is presented at the carrying amount, while the derivative financial instrument is presented at the nominal amount.

---

| | | | |
|:---|:---|:---|:---|
|  |  | December 31.2022 | December 31.2022 |
|  |  | USD (\*1) | USD (\*1) |
|  |  | Total Amount<br>(\*2) | Interest Rate<br>Provision |
|  Non-derivative financial assets | Financial assets at FVTOCI | 514935 | 355247 |
|  | Financial assets at amortized cost | 4214876 | 3237567 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 4729811 | 3592814 |
|  Non-derivative financial liabilities | Financial liabilities at amortized cost | 89326 | 89326 |
|  Derivatives | Interest rate(trading) | 26210037 | 26208438 |
|  | Currency(trading) | 33886969 | 33598769 |
|  | Interest rate(hedging) | 2344505 | 2344505 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 62441511 | 62151712 |

---

(\*1) Financial instruments related to USD Libor (overnight rate, 1, 3, 6, 12 month rates) that are expired before June 30, 2023 are excluded.

(\*2) For contracts that do not have an interest rate alternative clause, The Group is in the process of negotiating to add an interest rate alternative clause.

The KRW CD rates are planned to be replaced by the Korea Overnight Financing Repo Rate (KOFR) in the long run, but when the CD rates will be ceased or the policy response directions to activate alternative rates are not clear.

< Woori Card Co., Ltd. >

The hedging relationship in which Woori Card applies cash flow risk hedge is affected by interest rate indicators related to interest rate benchmark reform. The interest rate benchmarks for which the hedging relationship is exposed are USD 1M LIBOR and USD 3M LIBOR. The nominal amounts of hedging instruments associated with 1M LIBOR and 3M LIBOR among the hedging relationships of Woori Card are USD 270,000,000 and USD 100,000,000, respectively. Woori Card is closely monitoring market and industry discussions regarding applicable alternative benchmark interest rates for exposed interest rate benchmarks, and believes that this uncertainty will no longer appear when exposed interest benchmarks are replaced by applicable interest rates.

------

##### [**Table of Contents**](#toc)
The hedging relationship in which Woori Financial Capital applies cash flow risk hedge accounting is affected by interest rate benchmarks related to interest rate benchmark reform. The interest rate benchmark with the corresponding hedging relationship exposed is the KRW 3M CD. The nominal amount of the hedging instrument associated with the KRW 3M CD of Woori Financial Capital's hedging relationship is KRW 40 billion. Woori Financial Capital is closely watching market and industry discussions regarding applicable alternative benchmark interest rates for exposed interest rate benchmarks, and believes that this uncertainty will no longer appear when exposed interest benchmarks are replaced by applicable interest rates.

------

##### [**Table of Contents**](#toc)
(3) Liquidity risk

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

1) Liquidity risk management

Liquidity risk management is to prevent potential cash shortages as a result of mismatching maturity of assets and liabilities or unexpected cash outflows. The the consolidated financial liabilities that are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives instruments are excluded from those financial liabilities as they reflect expected cash flows for a pre-determined period.

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

The information on early repayment related to asset securitization is described in NOTE 40. CONTINGENT LIABILITIES AND COMMITMENTS (4) 3).

2) Maturity analysis of non-derivative financial liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Financial liabilities at FVTPL | 35161 |  |  |  |  | 12113 | 47274 |
|  Deposits due to customers | 228890427 | 36851103 | 24091740 | 42652679 | 14999516 | 1522830 | 349008295 |
|  Borrowings | 8969648 | 5734715 | 3210812 | 3156211 | 7457240 | 484909 | 29013535 |
|  Debentures | 6348064 | 6841379 | 5211032 | 5214942 | 19621659 | 3298581 | 46535657 |
|  Lease liabilities | 68279 | 36724 | 35136 | 29646 | 151379 | 33007 | 354171 |
|  Other financial liabilities | 14409376 | 113049 | 19370 | 20315 | 765870 | 3037563 | 18365543 |
|  Total | 258720955 | 49576970 | 32568090 | 51073793 | 42995664 | 8389003 | 443324475 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Financial liabilities at FVTPL | 100976 | 10397 | 91785 | 107230 |  |  | 310388 |
|  Deposits due to customers | 224881863 | 32559199 | 20290566 | 31768748 | 9213279 | 1615198 | 320328853 |
|  Borrowings | 9477536 | 4366223 | 2415548 | 2494732 | 5800815 | 440506 | 24995360 |
|  Debentures | 3068600 | 4201926 | 5316672 | 5371869 | 24982746 | 3342284 | 46284097 |
|  Lease liabilities | 41731 | 53245 | 30148 | 25494 | 156228 | 38275 | 345121 |
|  Other financial liabilities | 17614313 | 228388 | 12190 | 11894 | 610514 | 1999198 | 20476497 |
|  Total | 255185019 | 41419378 | 28156909 | 39779967 | 40763582 | 7435461 | 412740316 |

---

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Financial liabilities at FVTPL | 35161 |  |  |  |  | 12113 | 47274 |
|  Deposits due to customers | 242132680 | 41113768 | 24269363 | 29670943 | 10490993 | 56013 | 347733760 |
|  Borrowings | 8969648 | 5734715 | 3210812 | 3156211 | 7457240 | 484909 | 29013535 |
|  Debentures | 6348064 | 6841379 | 5211032 | 5214942 | 19621659 | 3298581 | 46535657 |
|  Lease liabilities | 68344 | 36729 | 35377 | 29948 | 157361 | 38584 | 366343 |
|  Other financial liabilities | 14409376 | 113049 | 19370 | 20315 | 765870 | 3037563 | 18365543 |
|  Total | 271963273 | 53839640 | 32745954 | 38092359 | 38493123 | 6927763 | 442062112 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Financial liabilities at FVTPL | 100976 | 10397 | 91785 | 107230 |  |  | 310388 |
|  Deposits due to customers | 230823884 | 33705990 | 20107790 | 27331774 | 7871688 | 89643 | 319930769 |
|  Borrowings | 9477536 | 4366223 | 2415548 | 2494732 | 5800815 | 440506 | 24995360 |
|  Debentures | 3068600 | 4201926 | 5316672 | 5371869 | 24982746 | 3342284 | 46284097 |
|  Lease liabilities | 41716 | 53260 | 30216 | 25653 | 162092 | 41814 | 354751 |
|  Other financial liabilities | 17614313 | 228388 | 12190 | 11894 | 610514 | 1999198 | 20476497 |
|  Total | 261127025 | 42566184 | 27974201 | 35343152 | 39427855 | 5913445 | 412351862 |

---

3) Maturity analysis of derivative financial liabilities

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

The cash flow by the maturity of derivative financial liabilities as of December 31, 2022 and 2021 is as follows (Unit: Korean Won in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Remaining maturity | Remaining maturity | Remaining maturity | Remaining maturity | Remaining maturity | Remaining maturity | Remaining maturity |
|  |  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over 5<br>years | Total |
|  December 31, 2022 | Cash flow risk hedge | 856 | 905 | 915 | 1255 | 50682 |  | 54613 |
|  December 31, 2022 | Fair value risk hedge | 25048 | 16175 | 31974 | 18540 | 118027 | (3615) | 206149 |
|  December 31, 2022 | Trading purpose | 8905125 |  |  |  |  |  | 8905125 |
|  December 31, 2021 | Cash flow risk hedge | 246 | (206) | (502) | (717) | (2744) | (4053) | (7976) |
|  December 31, 2021 | Fair value risk hedge | (1656) | 598 | (940) | 1392 | 21552 |  | 20946 |
|  December 31, 2021 | Trading purpose | 4566443 |  |  |  |  |  | 4566443 |

---

------

##### [**Table of Contents**](#toc)
4) Maturity analysis of off-balance accounts (Payment guarantees, commitments, and etcs)

A payment guarantee represents an irrevocable undertaking that the Group should meet a customer's obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Group has promised a credit to the customer. Loan commitments include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for payment guarantees, such as financial guarantees for debentures issued or loans, unused loan commitments, and other credits, however, under the terms of the guarantees and unused loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Payment guarantees |  | 11921586 |  | 12987809 |
|  Loan commitments |  | 118172070 |  | 114414462 |
|  Other commitments |  | 4602429 |  | 3427331 |

---

------

##### [**Table of Contents**](#toc)
(4) Operational risk

The Group defines the operational risk that could cause a negative effect on capital resulting from inadequate internal process, labor work and systematic problem or external factors.

1) Operational risk management

The Group has established and operated an operating risk management system to strengthen external competitiveness, reduce risk capital volume, enhance operational risk management capacity and prevent accidents through compliance with Basel II, and has obtained approval from the Financial Supervisory Service for "Advanced Measurement Approaches"(AMA) based on self-compliance verification and independent third-party inspection results.

2) Operational risk measurement

The Group is applying the basic indicator method for the purpose of calculating the regulatory capital of operation risk, and the Bank is applying the Advanced Measurement Approaches. The Bank applies AMA using internal and external loss data, business environment and internal control factors, and scenario analysis.

(5) Capital management

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

According to the above regulations, the Group is required to meet the following minimum requirements: Tier 1 common capital ratio of 8.0%, a Tier 1 capital ratio of 9.5%, and a total capital ratio of 11.5% as of December 31, 2022 and 2021

Details of the Group's capital adequacy ratio as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
| Details(\*) | December 31,<br>2022 | December 31,<br>2021 |
|  Tier 1 capital | 23757296 | 21994047 |
|  Other Tier 1 capital | 4208994 | 3590212 |
|  Tier 2 capital | 3437735 | 3395989 |
|  Total risk-adjusted capital | 31404025 | 28980248 |
|  Risk-weighted assets for credit risk | 182028062 | 171199840 |
|  Risk-weighted assets for market risk | 6759527 | 6388428 |
|  Risk-weighted assets for operational risk | 16519885 | 14914801 |
|  Total risk-weighted assets | 205307474 | 192503069 |
|  Common Equity Tier 1 ratio | 11.57% | 11.43% |
|  Tier 1 capital ratio | 13.62% | 13.29% |
|  Total capital ratio | 15.30% | 15.05% |

---

(\*) The capital ratio at the end of the current period is provisional

------

##### [**Table of Contents**](#toc)
**5.** **OPERATING SEGMENTS** 

In evaluating the results of the Group and allocating resources, the Group's Chief Operation Decision Maker ("CODM") utilizes the information per type of customers. With the establishment of Woori Financial Group Inc. during the prior term, the Group reports to the CODM according to the organizational sectors below. This financial information of the segments is regularly reviewed by the CODM to make decisions about resources to be allocated to each segment and evaluate its performance.

(1) Segment by type of organization

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

---

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

---

------

##### [**Table of Contents**](#toc)
(2) The composition of each organization's sectors for the years ended December 31, 2022 and 2021 are as
follows (Unit: Korean Won in millions):

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Banking | Credit card | Capital | Investment<br>banking | Others (\*1) | Sub-total | Other<br>adjustments<br>(\*2) | Internal<br>adjustments<br>(\*3) | Consolidated<br>Adjustments<br>(\*4) | Total |
|  Net interest income | 6603834 | 675250 | 376133 | 117867 | 73800 | 7846884 | 34307 | 817543 | (2155) | 8696579 |
|  Non-interest income(expense) | 1520576 | 110888 | 83428 | 82885 | 1750203 | 3547980 | 17498 | (761029) | (1655342) | 1149107 |
|  Impairment losses due to credit loss | (426552) | (238607) | (107906) | (16491) | (38319) | (827875) |  | (57992) | 595 | (885272) |
|  General and administrative expense | (3914672) | (262525) | (99872) | (61631) | (493502) | (4832202) | (409) |  | 302721 | (4529890) |
|  Net operating income(expense) | 3783186 | 285006 | 251783 | 122630 | 1292182 | 5734787 | 51396 | (1478) | (1354181) | 4430524 |
|  Share of gain of associates | 73958 |  | 1430 | 334 | 2173 | 77895 | (182) |  | (7717) | 69996 |
|  Other non-operating expense | 5563 | (6373) | (1835) | (1399) | (2386) | (6430) | 2371 | 1478 | (12565) | (15146) |
|  Non-operating income(expense) | 79521 | (6373) | (405) | (1065) | (213) | 71465 | 2189 | 1478 | (20282) | 54850 |
|  Net income(expense) before tax | 3862707 | 278633 | 251378 | 121565 | 1291969 | 5806252 | 53585 |  | (1374463) | 4485374 |
|  Tax expense | (959298) | (73869) | (68050) | (29771) | (26739) | (1157727) |  |  | (3665) | (1161392) |
|  Net income(loss) | 2903409 | 204764 | 183328 | 91794 | 1265230 | 4648525 | 53585 |  | (1378128) | 3323982 |
|  Total assets | 443340979 | 16118967 | 12581473 | 5657191 | 28059619 | 505758229 | 2019322 |  | (27303155) | 480474396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in associate | 917581 |  | 40987 | 6548 | 22427853 | 23392969 | 29658 |  | (22116991) | 1305636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 442423398 | 16118967 | 12540486 | 5650643 | 5631766 | 482365260 | 1989664 |  | (5186164) | 479168760 |
|  Total liabilities | 417583793 | 13692456 | 11040754 | 4982410 | 4146997 | 451446410 | 50762 |  | (2650118) | 448847054 |

---

---

| | |
|:---|:---|
| (\*1) | Other segments include gains and losses from Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute.  |

---

(\*2) Other segments includes the funds subject to Group's consolidated not included in the reporting segment.

---

| | |
|:---|:---|
| (\*3) | Internal reconciliation includes the adjustment of deposit insurance premiums of KRW 423,834 million and fund contribution fees of KRW 402,057 million from net interest income expenses to non-interest income expenses in order to present the profit and loss adjustment between reporting divisions in accordance with management accounting standards as profit and loss in accordance with accounting standards  |

---

---

| | |
|:---|:---|
| (\*4) | Consolidation adjustments include the elimination of KRW 300,297 million of internal transactions between Woori FIS Co., Ltd., the group's IT service agency, and affiliates, and the removal of KRW 1,272,393 million of dividends received by the holding company from its subsidiaries.  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Banking | Credit card | Capital | Investment<br>banking | Others (\*1) | Sub-total | Other<br>adjustments<br>(\*2) | Internal<br>adjustments<br>(\*3) | consolidated<br>adjustments<br>(\*4) | Total |
|  Net interest income | 5158078 | 606506 | 315600 | 108321 | 29515 | 6218020 | 9938 | 758559 | (796) | 6985721 |
|  Non-interest income(expense) | 1661903 | 63839 | 95297 | 49419 | 1111422 | 2981880 | 16431 | (670230) | (969804) | 1358277 |
|  Impairment losses due to credit loss | (140574) | (164097) | (122089) | (1885) | (19601) | (448246) |  | (89683) | 1091 | (536838) |
|  General and administrative expense | (3606715) | (225175) | (99048) | (51490) | (440601) | (4423029) | (256) |  | 275874 | (4147411) |
|  Net operating income(expense) | 3072692 | 281073 | 189760 | 104365 | 680735 | 4328625 | 26113 | (1354) | (693635) | 3659749 |
|  Share of gain of associates | 60049 |  | 1000 | 750 | 4390 | 66189 | 51 |  | (4044) | 62196 |
|  Other non-operating expense | 42542 | (7936) | (16943) | (660) | (1071) | 15932 | 2956 | 1354 | 7054 | 27296 |
|  Non-operating income(expense) | 102591 | (7936) | (15943) | 90 | 3319 | 82121 | 3007 | 1354 | 3010 | 89492 |
|  Net income(expense) before tax | 3175283 | 273137 | 173817 | 104455 | 684054 | 4410746 | 29120 |  | (690625) | 3749241 |
|  Tax expense | (790177) | (72411) | (33238) | (24531) | (16799) | (937156) |  |  | (4714) | (941870) |
|  Net income(loss) | 2385106 | 200726 | 140579 | 79924 | 667255 | 3473590 | 29120 |  | (695339) | 2807371 |
|  Total assets | 415976627 | 14116832 | 10259868 | 5159742 | 25627649 | 471140718 | 1101162 |  | (25058009) | 447183871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in associate | 858706 |  | 12403 | 8846 | 22165895 | 23045850 | 35134 |  | (21745817) | 1335167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 415117921 | 14116832 | 10247465 | 5150896 | 3461754 | 448094868 | 1066028 |  | (3312192) | 445848704 |
|  Total liabilities | 391315108 | 11858065 | 9073104 | 4559856 | 3284269 | 420090402 | 54595 |  | (1811321) | 418333676 |

---

---

| | |
|:---|:---|
| (\*1) | Other segments include gains and losses from Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute.  |

---

(\*2) Other segments includes the funds subject to Group's consolidated not included in the reporting segment.

---

| | |
|:---|:---|
| (\*3) | Internal reconciliation includes the adjustment of deposit insurance premiums of KRW 406,276 million and fund contribution fees of KRW 367,961 million from net interest income expenses to non-interest income expenses in order to present the profit and loss adjustment between reporting divisions in accordance with management accounting standards as profit and loss in accordance with accounting standards  |

---

---

| | |
|:---|:---|
| (\*4) | Consolidation adjustments include the elimination of KRW 274,768 million of internal transactions between Woori FIS Co., Ltd., the group's IT service agency, and affiliates, and the removal of KRW 692,605 million of dividends received by the holding company from its subsidiaries.  |

---

------

##### [**Table of Contents**](#toc)
(3) Operating profit or loss from external customers for the years ended December 31, 2022 and 2021 are as
follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
| Details | 2022 | 2021 |
|  Domestic | 3835809 | 3288341 |
|  Foreign | 594715 | 371408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 4430524 | 3659749 |

---

(4) Major non-current assets as of December 31, 2022 and 2021 are as
follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
| Details (\*) | December 31, 2022 (\*) | December 31, 2021 (\*) |
|  Domestic | 5152033 | 5201838 |
|  Foreign | 533354 | 482930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 5685387 | 5684768 |

---

(\*) Major non-current assets included joint ventures and related business investments, investment properties, premises equipment, and intangible assets.

(5) Information about major customers

The Group does not have any single customer that generates 10% or more of the Group's total revenue for the years ended December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
**6.** **STATEMENTS OF CASH FLOWS** 

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Cash | 1771316 | 1742449 |
|  Foreign currencies | 628590 | 503205 |
|  Demand deposits | 31729228 | 18208784 |
|  Fixed deposits | 90014 | 158635 |
|  Total | 34219148 | 20613073 |

---

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

---

| | | | |
|:---|:---|:---|:---|
|  | Counterparty | December 31, 2022 | Reason of restriction |
|  Due from banks in local currency: | Due from banks in local currency: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from BOK | BOK | 16527445 | Reserve deposits<br> under the BOK Act |
|  Due from banks in foreign currencies: | Due from banks in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks on demand | BOK and others | 6437717 | Reserve deposits under the BOK Act and others |
|  Total | Total | 22965162 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Counterparty | December 31, 2021 | Reason of restriction |
|  Due from banks in local currency: | Due from banks in local currency: |  |  |
|  Due from BOK | BOK | 9619055 | Reserve deposits<br> under the BOK Act |
|  Due from banks in foreign currencies: | Due from banks in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks on demand | BOK and others | 3428200 | Reserve deposits under the BOK Act and others |
|  Total | Total | 13047255 |  |

---

(3) Significant transactions of investing activities and financing activities not involving cash inflows and
outflows are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Changes in other comprehensive income related to valuation of financial assets at FVTOCI | (493871) | (150327) |
|  Changes in other comprehensive income related to valuation of assets of associate | 612 | 1526 |
|  Changes in other comprehensive income related to valuation profit or loss on cash flow hedge | (9835) | 7107 |
|  Changes in financial assets measure at FVTOCI due to debt-for-equity swap | 14594 | 79 |
|  Changes in the investment assets of associates due to the transfer of assets held-for-sale |  | (52) |
|  Changes in the property, plant and equipment due to the transfer of assets held-for-sale | (13109) | (12852) |
|  Transfer of investment properties and premises and equipment | 7154 | 6095 |

---

------

##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Changes in account payables related to premises and equipment | 281 |  |
|  Changes in account payables related to intangible assets | (11530) | (11640) |
|  Changes in right-of-use assets and lease liabilities | 194236 | 150644 |
|  Comprehensive stock exchange |  | 64301 |
|  Changes in other comprehensive income related to foreign operation translation | &nbsp;&nbsp;&nbsp;&nbsp;28746 | 246808 |

---

(4) Adjustments of liabilities from financing activities in current and prior year are as follows (Unit: Korean Won
in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning<br>balance | Cash flow | Not involving cash inflows and outflows | Not involving cash inflows and outflows | Not involving cash inflows and outflows | Ending<br>balance |
|  | Beginning<br>balance | Cash flow | Foreign<br>Exchange | Variation of<br>gain(loss) on<br>valuation of<br>hedged<br>items | Others (\*) | Ending<br>balance |
|  Borrowings | 24755459 | 2881675 | 760918 |  | 31551 | 28429603 |
|  Debentures | 44653864 | (484874) | 297861 | (257910) | (10455) | 44198486 |
|  Lease liabilities | 343213 | (187531) | 4645 |  | 158834 | 319161 |
|  Other liabilities | 26907 | 513 |  |  | (36) | 27384 |
|  Total | 69779443 | 2209783 | 1063424 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(257910) | 179894 | 72974634 |

---

(\*) The change in lease liabilities due to the new contract includes 235,215 million won.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning<br>balance | Cash flow | Not involving cash inflows and outflows | Not involving cash inflows and outflows | Not involving cash inflows and outflows | Ending<br>balance |
|  | Beginning<br>balance | Cash flow | Foreign<br>Exchange | Variation of<br>gains on<br>valuation of<br>hedged<br>items | Others (\*) | Ending<br>balance |
|  Borrowings | 20745466 | 3199712 | 804649 |  | 5632 | 24755459 |
|  Debentures | 37479358 | 6893661 | 392077 | (104306) | (6926) | 44653864 |
|  Lease liabilities | 407431 | (177593) | 10950 |  | 102425 | 343213 |
|  Other liabilities | 26354 | 14173 |  |  | (13620) | 26907 |
|  Total | 58658609 | 9929953 | 1207676 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(104306) | 87511 | 69779443 |

---

(\*) The change in lease liabilities due to the new contract includes 189,660 million won.

------

##### [**Table of Contents**](#toc)
**7.** **FINANCIAL ASSETS AT FVTPL** 

(1) Details of financial assets at FVTPL as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in
millions):

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Financial assets at fair value through profit or loss measured at fair value 19,860,573 13,497,234

(2) Financial assets at fair value through profit or loss measured at fair value as of December 31, 2022 and
2021 are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gold banking asset | 34995 | 65072 |
|  Securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean treasury and government agencies | 2754442 | 995713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial institutions | 620311 | 925474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 721573 | 751636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 174206 | 70416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 383883 | 329864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contributions | 1976474 | 1287723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | 3902762 | 3504547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 143334 | 94673 |
| Sub-total | 10676985 | 7960046 |
|  Loans | 899228 | 667467 |
|  Derivatives assets | 8206181 | 4803131 |
|  Other financial assets | 43184 | 1518 |
|  Total | 19860573 | 13497234 |

---

The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
**8.** **FINANCIAL ASSETS AT FVTOCI** 

(1) Details of financial assets at FVTOCI as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in
millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Debt securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean treasury and government agencies | 5487983 | 4728085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial institutions | 16870619 | 22909615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 4044446 | 5091035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bond denominated in foreign currencies | 5644684 | 5299707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 98026 | 98535 |
| Sub-total | 32145758 | 38126977 |
|  Equity securities | 939322 | 992812 |
|  Total | 33085080 | 39119789 |

---

(2) Details of equity securities designated as financial assets at FVTOCI as of December 31, 2022 and 2021 are
as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| Purpose of acquisition | December 31, 2022 | December 31, 2021 | Remarks |
|  Investment for strategic business partnership purpose | 776199 | 796835 |  |
|  Debt-equity swap | 157216 | 195971 |  |
|  Others | 5907 | 6 | Insurance for mutual aid association, etc. |
|  Total | 939322 | 992812 |  |

---

(3) Changes in the loss allowance and gross carrying amount of financial assets at FVTOCI are as follows (Unit:
Korean Won in millions):

1) Allowance for credit losses

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (12146) |  |  | (12146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of loss allowance | 827 |  |  | 827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal | 714 |  |  | 714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | (1200) |  |  | (1200) |
|  Ending balance | (11805) |  |  | (11805) |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (9631) |  |  | (9631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net provision of loss allowance | (4909) |  |  | (4909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal | 2378 |  |  | 2378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 16 |  |  | 16 |
|  Ending balance | (12146) |  |  | (12146) |

---

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

------

##### [**Table of Contents**](#toc)
2) Gross carrying amount 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 38126977 |  |  | 38126977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition | 16108426 |  |  | 16108426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal / Recovery | (21670160) |  |  | (21670160) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on valuation | (669936) |  |  | (669936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization based on effective interest method | 41813 |  |  | 41813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 208638 |  |  | 208638 |
|  Ending balance | 32145758 |  |  | 32145758 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 28948141 |  |  | 28948141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition | 30522426 |  |  | 30522426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal / Recovery | (21533360) |  |  | (21533360) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on valuation | (213517) |  |  | (213517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization based on effective interest method | 31641 |  |  | 31641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 371646 |  |  | 371646 |
|  Ending balance | 38126977 |  |  | 38126977 |

---

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

(4) During the years ended December 31, 2022 and 2021, the Group sold its equity securities., designated as
financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 3,567 million won and 138,511 million won, respectively and cumulative gains and losses at disposal dates were
14,444 million won in gain and 3,062 million won in loss, respectively.

------

##### [**Table of Contents**](#toc)
**9.** **SECURITIES AT AMORTIZED COST** 

(1) Details of securities at amortized cost as of December 31, 2022 and 2021 are as follows (Unit: Korean Won
in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Korean treasury and government agencies | 10083951 | 8882500 |
|  Financial institutions | 10283631 | 1835947 |
|  Corporates | 6237547 | 5818646 |
|  Bond denominated in foreign currencies | 1671772 | 554416 |
|  Allowance for credit losses | (8385) | (5235) |
|  Total | 28268516 | 17086274 |

---

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

1) Loss allowance

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (5235) |  |  | (5235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net provision of loss allowance | (3151) |  |  | (3151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 1 |  |  | 1 |
|  Ending balance | (8385) |  |  | (8385) |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (4566) |  |  | (4566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net provision of loss allowance | (664) |  |  | (664) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | (5) |  |  | (5) |
|  Ending balance | (5235) |  |  | (5235) |

---

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

------

##### [**Table of Contents**](#toc)
2) Gross carrying amount 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 17091509 |  |  | 17091509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition | 16873194 |  |  | 16873194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal / Recovery | (5871234) |  |  | (5871234) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization based on effective interest method | 86212 |  |  | 86212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 97220 |  |  | 97220 |
|  Ending balance | 28276901 |  |  | 28276901 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 17025405 |  |  | 17025405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition | 6435692 |  |  | 6435692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal / Recovery | (6425408) |  |  | (6425408) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization based on effective interest method | 14810 |  |  | 14810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 41010 |  |  | 41010 |
|  Ending balance | 17091509 |  |  | 17091509 |

---

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

------

##### [**Table of Contents**](#toc)
**10.** **LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST** 

(1) Details of loans and other financial assets at amortized cost as of December 31, 2022 and 2021 are as
follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Due from banks | 2994672 | 2866884 |
|  Loans | 343918560 | 336799510 |
|  Other financial assets | 8847497 | 9219223 |
|  Total | 355760729 | 348885617 |

---

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Due from banks in local currency: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from The Bank of Korea ("BOK") | 160000 | 600000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from depository banks | 170006 | 159264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from non-depository institutions | 183 | 14146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from the Korea Exchange | 2440 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 421318 | 191501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss allowance | (116) | (2452) |
|  Sub-total | 753831 | 962513 |
|  Due from banks in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks on demand | 199671 | 194781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks on time | 466963 | 205351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1586408 | 1507821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss allowance | (12201) | (3582) |
|  Sub-total | 2240841 | 1904371 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2994672 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2866884 |

---

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

---

| | | | |
|:---|:---|:---|:---|
|  | Counterparty | December 31, 2022 | Reason of restriction |
|  Due from banks in local currency: | Due from banks in local currency: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from BOK | BOK | 160000 | Reserve deposits<br> under BOK Act |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from KSFC | The Korea Securities | 2419 | Customer deposits return reserve |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Korea Exchange and others | 223705 | Korean Won CCP margin and others |
| Sub-total | Sub-total | 386124 |  |
|  Due from banks in foreign currencies: | Due from banks in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks on demand | BOK and others | 193507 | Reserve deposits under BOK Act and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks on time | National Bank Cambodia | 253 | Reserve deposits and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Korea Investment & Securities and others | 1581298 | Overseas futures and options trade deposits and others |
| Sub-total | Sub-total | 1775058 |  |
|  Total | Total | 2161182 |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
|  | Counterparty | December 31, 2021 | Reason of restriction |
|  Due from banks in local currency: | Due from banks in local currency: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from BOK | The BOK | 600000 | Reserve deposits<br> under the BOK Act |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from KSFC | KB Securities Co. Ltd. | 54 | Futures trading margin |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Korea Federation of Savings Banks and others | 75897 | Guarantees, mortgage of domestic exchange transactions and others |
|  Sub-total | Sub-total | 675951 |  |
|  Due from banks in foreign currencies: | Due from banks in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks on demand | The BOK and others | 128492 | Reserve deposits under the BOK Act and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency deposits on time | National Bank Cambodia | 237 | Reserve deposits and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Korea Investment & Securities and others | 1502474 | Overseas futures and options trade deposits and others |
|  Sub-total | Sub-total | 1631203 |  |
|  Total | Total | 2307154 |  |

---

(4) Changes in the loss allowance and gross carrying amount of due from banks are as follows (Unit: Korean Won in
millions):

1) Allowance for credit losses

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (6034) |  |  | (6034) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for allowance for credit loss | (7702) |  |  | (7702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 1419 |  |  | 1419 |
|  Ending balance | (12317) |  |  | (12317) |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (4366) |  |  | (4366) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for allowance for credit loss | (1477) |  |  | (1477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | (191) |  |  | (191) |
|  Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;(6034) |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(6034) |

---

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

------

##### [**Table of Contents**](#toc)
2) Gross carrying amount 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 2872918 |  |  | 2872918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net decrease | 166693 |  |  | 166693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | (32622) |  |  | (32622) |
|  Ending balance | 3006989 |  |  | 3006989 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 2515273 |  |  | 2515273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net decrease | 282987 |  |  | 282987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 74658 |  |  | 74658 |
|  Ending balance | 2872918 |  |  | 2872918 |

---

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

(5) Details of loans are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Loans in local currency | 282686620 | 273283542 |
|  Loans in foreign currencies (\*) | 26988360 | 24508250 |
|  Domestic banker's usance | 2877079 | 3403021 |
|  Credit card accounts | 10370362 | 9757115 |
|  Bills bought in foreign currencies | 3650792 | 5310080 |
|  Bills bought in local currency | 533879 | 265275 |
|  Factoring receivables | 25469 | 17406 |
|  Advances for customers on guarantees | 25698 | 26766 |
|  Private placement bonds | 485519 | 519150 |
|  Securitized loans | 2990937 | 2874480 |
|  Call loans | 3626226 | 3481219 |
|  Bonds purchased under resale agreements | 6849038 | 10332858 |
|  Financial lease receivables | 1467858 | 1173751 |
|  Installment financial bond | 2832972 | 2882396 |
|  Others | 140 | 159 |
|  Loan origination costs and fees | 852002 | 858051 |
|  Discounted present value- | (10238) | (7299) |
|  Allowance for credit losses | (2334153) | (1886710) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 343918560 | 336799510 |

---

------

##### [**Table of Contents**](#toc)
(6) Changes in the loss allowance of loans are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Consumers | Consumers | Consumers | Corporates | Corporates | Corporates | Corporates |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | Credit<br>impairment<br>model |
|  Beginning balance | (136520) | (97604) | (206617) | (362766) | (576740) | (251233) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | (21684) | 21210 | 474 | (74402) | 68546 | 5856 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | 10211 | (11568) | 1357 | 18678 | (21502) | 2824 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | 3960 | 8975 | (12935) | 2217 | 12769 | (14986) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net reversal(provision) of allowance for credit losses | (734) | (49398) | (156286) | (22646) | (303198) | (107038) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery |  |  | (70077) |  |  | (55743) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | 161850 |  |  | 140744 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  | 62 | 21862 | 280 | 128 | 37722 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from impaired loans |  |  | 11805 |  |  | 9576 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (4350) | (495) | (948) | (479) | (84) | (97) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes due to business combinations | 1241 | 729 | 7573 | (14503) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1847 | (9090) |  |
|  Ending balance | (147876) | (128089) | (241942) | (453621) | (818234) | (241465) | (27) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Credit card accounts | Credit card accounts | Credit card accounts | Total | Total | Total | Total |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | Credit<br>impairment<br>model |
|  Beginning balance | (68814) | (115489) | (70927) | (568100) | (789833) | (528777) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | (31360) | 31284 | 76 | (127446) | 121040 | 6406 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | 7576 | (7694) | 118 | 36465 | (40764) | 4299 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | 642 | 2190 | (2832) | 6819 | 23934 | (30753) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net reversal(provision) of allowance for credit losses | &nbsp;&nbsp;&nbsp;&nbsp;20820 | (38105) | (204569) | (2560) | (390701) | (467893) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery |  |  | (53988) |  |  | (179808) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | 220280 |  |  | 522874 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | 7896 |  | 190 | 67480 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from impaired loans |  |  |  |  |  | 21381 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  | (4829) | (579) | (1045) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes due to business combinations | (3) |  |  | (13265) | 2576 | (1517) |  |
|  Ending balance | (71139) | (127814) | (103946) | (672636) | (1074137) | (587353) | (27) |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Consumers | Consumers | Consumers | Corporates | Corporates | Corporates |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
|  Beginning balance | (121527) | (84463) | (205693) | (327460) | (521907) | (388744) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | (23328) | &nbsp;&nbsp;&nbsp;&nbsp;19736 | 3592 | (80803) | 49902 | 30901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | 9201 | (11466) | 2265 | 14106 | (35706) | 21600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | 2752 | 9918 | (12670) | 1562 | 18741 | (20303) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net reversal(provision) of loss allowance | (4456) | (32764) | (130424) | 49562 | (91981) | (168323) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery |  |  | (75058) |  |  | (55108) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | 174012 |  |  | 233507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | 14890 |  |  | 64078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from impaired loans |  |  | 13743 |  |  | 12672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 838 | 1435 | 8726 | (19733) | 4211 | 18487 |
|  Ending balance | (136520) | (97604) | (206617) | (362766) | (576740) | (251233) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Credit card accounts | Credit card accounts | Credit card accounts | Total | Total | Total |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
|  Beginning balance | (62712) | (90481) | (105537) | (511699) | (696851) | (699974) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | (26846) | 26581 | 265 | (130977) | 96219 | 34758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | 7497 | (8151) | 654 | 30804 | (55323) | 24519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | 356 | 925 | (1281) | 4670 | 29584 | (34254) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net reversal(provision) of loss allowance | &nbsp;&nbsp;&nbsp;&nbsp;12894 | (44363) | (145336) | 58000 | (169108) | (444083) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery |  |  | (65620) |  |  | (195786) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | 220352 |  |  | 627871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | 25576 |  |  | 104544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from impaired loans |  |  |  |  |  | 26415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (3) |  |  | (18898) | 5646 | 27213 |
|  Ending balance | (68814) | (115489) | (70927) | (568100) | (789833) | (528777) |

---

------

##### [**Table of Contents**](#toc)
(7) Changes in the gross carrying amount of loans are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Consumers | Consumers | Consumers | Corporates | Corporates | Corporates | Corporates |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | Credit<br>impairment<br>model |
|  Beginning balance | 135139685 | 13500783 | 499969 | 170795255 | 8458279 | 541732 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 4651157 | (4637460) | (13697) | 1784684 | (1768655) | (16029) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (6284951) | 6303526 | (18575) | (3773713) | 3792473 | (18760) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (157808) | (102097) | 259905 | (242421) | (123225) | 365646 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | (161850) |  |  | (140744) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  | (259) | (57052) | (48472) | (391) | (134732) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase(decrease) | (2082449) | (1046885) | 47727 | 11005551 | (873200) | 28198 | 313717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes due to business combinations | 57743 | 2974 | 7630 | 31551 | 1016 | 687 |  |
|  Ending balance | 131323377 | 14020582 | 564057 | 179552435 | &nbsp;&nbsp;&nbsp;&nbsp;9486297 | &nbsp;&nbsp;&nbsp;&nbsp;625998 | 313717 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Credit card accounts | Credit card accounts | Credit card accounts | Total | Total | Total | Total |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | Credit<br>impairment<br>model |
|  Beginning balance | 8239303 | 1395139 | 116075 | 314174243 | 23354201 | 1157776 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 542021 | (541913) | (108) | 6977862 | (6948028) | (29834) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (403398) | 403598 | (200) | (10462062) | 10499597 | (37535) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (31780) | (21244) | 53024 | (432009) | (246566) | 678575 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | (220280) |  |  | (522874) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | (17082) | (48472) | (650) | (208866) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase(decrease) | 769314 | (169200) | 247981 | 9697416 | (2089285) | 323906 | 313717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes due to business combinations |  |  |  | 89294 | 3990 | 8317 |  |
|  Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9115460 | &nbsp;&nbsp;&nbsp;&nbsp;1066380 | 179410 | 319996272 | 24573259 | 1369465 | 313717 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Consumers | Consumers | Consumers | Corporates | Corporates | Corporates |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
|  Beginning balance | 125990038 | 12016711 | 537106 | 149574932 | &nbsp;&nbsp;&nbsp;&nbsp;7328741 | &nbsp;&nbsp;&nbsp;&nbsp;717909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 4377247 | (4357347) | (19900) | 1610541 | (1575157) | (35384) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (6104417) | 6127477 | (23060) | (3627800) | 3670808 | (43008) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (108717) | (79746) | 188463 | (244236) | (132986) | 377222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | (174012) |  |  | (233507) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | (48795) |  |  | (187571) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 10985534 | (206312) | 40167 | 23481818 | (833127) | (53929) |
|  Ending balance | 135139685 | 13500783 | 499969 | 170795255 | 8458279 | 541732 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Credit card accounts | Credit card accounts | Credit card accounts | Total | Total | Total |
|  | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
|  Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7278975 | &nbsp;&nbsp;&nbsp;&nbsp;1078220 | 180074 | 282843945 | 20423672 | 1435089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 359101 | (358776) | (325) | 6346889 | (6291280) | (55609) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (513635) | 514369 | (734) | (10245852) | 10312654 | (66802) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (17416) | (9253) | 26669 | (370369) | (221985) | 592354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | (220352) |  |  | (627871) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | (56520) |  |  | (292886) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1132278 | 170579 | 187263 | 35599630 | (868860) | 173501 |
|  Ending balance | 8239303 | 1395139 | 116075 | 314174243 | 23354201 | 1157776 |

---

------

##### [**Table of Contents**](#toc)
(8) Details of other financial assets are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Cash Management Account asset (CMA asset) | 157000 | 140000 |
|  Receivables | 5438469 | 6852139 |
|  Accrued income | 1667397 | 1049857 |
|  Telex and telephone subscription rights and refundable deposits | 801536 | 870707 |
|  Domestic exchange settlement debit | 577919 | 82555 |
|  Other assets (\*) | 344356 | 290746 |
|  Allowance for credit losses | (139180) | (66781) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 8847497 | 9219223 |

---

---

| | |
|:---|:---|
| (\*) | The Group became aware of employee embezzlement incidents that occurred before the end of April 2022, and the Financial Supervisory Service conducted on-site inspections from April 28 to May 30, 2022. An accusation of embezzlement and provisional seizure of found property were made, and an investigation by an investigative agency is currently underway. The related amount included in other assets amounted to 62,196 million Won, which was treated as a loss in its entirety because its recoverability was uncertain.  |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | &nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | &nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | &nbsp;&nbsp;&nbsp;&nbsp;Total |
|  Beginning balance | (3675) | (5580) | (57526) | (66781) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | (261) | 246 | 15 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | 209 | (225) | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | 981 | 1134 | (2115) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal (provision) of loss allowance | (1749) | (4707) | (6329) | (12785) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | 2223 | 2223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | 751 | 751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 317 | (1) | (62904) | (62588) |
|  Ending balance | (4178) | (9133) | (125869) | (139180) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | &nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | &nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | &nbsp;&nbsp;&nbsp;&nbsp;Total |
|  Beginning balance | (3666) | (5450) | (74179) | (83295) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | (228) | 217 | 11 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | 147 | (174) | 27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | 167 | 288 | (455) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal (provision) of loss allowance | 511 | (464) | 4664 | 4711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | 9965 | 9965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | 1400 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (606) | 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1041 | 438 |
|  Ending balance | (3675) | (5580) | (57526) | (66781) |

---

------

##### [**Table of Contents**](#toc)
(10) Changes in the gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 9004539 | 106597 | 174868 | 9286004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 9765 | (9749) | (16) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (38248) | 38265 | (17) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (1484) | (2824) | 4308 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | 24 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal | (5) |  | (917) | (922) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (88214) | (110835) | (99748) | (298797) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes due to business combinations | 368 |  |  | 368 |
|  Ending balance | 8886721 | 21454 | 78502 | 8986677 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 7267426 | 76418 | 188187 | 7532031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 8909 | (8894) | (15) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (27369) | 27399 | (30) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (1877) | (1638) | 3515 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-off |  |  | (9965) | (9965) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal |  |  | (1716) | (1716) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1757450 | 13312 | (5108) | 1765654 |
|  Ending balance | 9004539 | 106597 | 174868 | 9286004 |

---

------

##### [**Table of Contents**](#toc)
**11.** **FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES** 

(1) The fair value hierarchy

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2— fair value measurements are those derived from inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in
active markets and derivatives traded in OTC but not required significant judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3— fair value measurements are those derived from valuation technique that include inputs for the
assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and
derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

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

------

##### [**Table of Contents**](#toc)
(2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean
Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Level 1 (\*) | Level 2 (\*) | Level 3 | Total |
|  Financial assets: |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 34995 |  |  | 34995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 2580563 | 1654591 | 1078 | 4236232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 76007 | 25 | 307851 | 383883 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contributions |  |  | 1976474 | 1976474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | 45394 | 2398592 | 1458776 | 3902762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 794723 | 104505 | 899228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 69316 | 8042895 | 93970 | 8206181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets in foreign currency |  |  | 41679 | 41679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 34299 |  | 144840 | 179139 |
|  Sub-total | 2840574 | 12890826 | 4129173 | 19860573 |
|  Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 9895456 | 22250302 |  | 32145758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 382257 |  | 557065 | 939322 |
|  Sub-total | 10277713 | 22250302 | 557065 | 33085080 |
|  Derivative assets (designated for hedging) |  | 37786 |  | 37786 |
|  Total | 13118287 | 35178914 | 4686238 | 52983439 |
|  Financial liabilities: |  |  |  |  |
|  Financial liabilities at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers | 35161 |  |  | 35161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 11700 | 8883976 | 9449 | 8905125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold | 12113 |  |  | 12113 |
|  Sub-total | 58974 | 8883976 | 9449 | 8952399 |
|  Derivative liabilities (designated for hedging) |  | 202911 |  | 202911 |
|  Total | 58974 | 9086887 | 9449 | 9155310 |

---

---

| | |
|:---|:---|
| (\*) | Among financial assets and financial liabilities measured at fair value, the amount transferred from Level 2 to Level 1 is 2,835,187 million Won. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed. A change in the judgement of the active market where the financial product was traded resulted the transfer between levels.  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Level 1 (\*) | Level 2 (\*) | Level 3 | Total |
|  Financial assets: |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 65072 |  |  | 65072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 817584 | 1923538 | 2117 | 2743239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 25879 |  | 303985 | 329864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contributions |  |  | 1287723 | 1287723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | 74271 | 2326202 | 1104074 | 3504547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 453832 | 213635 | 667467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 10911 | 4762872 | 29348 | 4803131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 96191 | 96191 |
|  Sub-total | 993717 | 9466444 | 3037073 | 13497234 |
|  Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 5578455 | 32548522 |  | 38126977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 411357 |  | 581455 | 992812 |
|  Sub-total | 5989812 | 32548522 | 581455 | 39119789 |
|  Derivative assets (Designated for hedging) |  | 106764 |  | 106764 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;6983529 | 42121730 | 3618528 | 52723787 |
|  Financial liabilities: |  |  |  |  |
|  Financial liabilities at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers | 65016 |  |  | 65016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 10259 | 4552368 | 4641 | 4567268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold | 211408 | 29766 |  | 241174 |
|  Sub-total | 286683 | 4582134 | 4641 | 4873458 |
|  Derivative liabilities (Designated for hedging) |  | 27584 |  | 27584 |
|  Total | 286683 | 4609718 | 4641 | 4901042 |

---

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

------

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

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

1) Valuation methods and input variables for each type of financial instrument classified into level 2 in December 31, 2022 and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | Valuation methods | Input variables |
|  Debt securities | Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread. | Risk-free market rate and credit spread |
|  Beneficiary certificates | The beneficiary certificates classified as Level 2 are MMF and are measured at the standard price. | Values of underlying assets such as bond |
|  Derivatives | Fair value is measured by models such as option model (Closed form), DCF model, FDM and Monte Carlo Simulation. | Discount rate, values of underlying assets such as foreign exchange rate and stock prices, volatility, risk-free market rate, forward rate, etc. |
|  Loans | The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor. | Risk-free market rate and credit spread |

---

2) Valuation methods and input variables for each type of financial instrument classified into level 3 in December 31, 2022 and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | Valuation methods | Input variables |
|  Loans | Fair value is calculated by using Binomial Tree, LSMC and Discounted Cash Flow Model which is a valuation technique commonly used in the market taking into account value of underlying assets, volatility, discount rate. | Value of underlying assets, Volatility, Discount rate |
|  Debt securities | The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to debt securities issuers. Fair value is measured by models such as LSMC(Least-Squares Monte Carlo), Hull-white. | Risk-free market rate, credit spread, discount rate originated credit grade, volatility of stock price, volatility of interest rate |
|  Equity securities, capital contributions and Beneficiary certificates | Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Net Asset Value Method, LSMC, and Binomial Tree, Imputed Market Value Model more than one method is used given the characteristic of the subject of fair value measurement. | Risk-free market rate, market risk premium, corporate Beta, discount rate originated credit grade, stock prices, volatility of underlying asset, net asset value, volatility of stock price, volatility of interest rate, Capital increase amount, Fluctuation rate of real estate sale price, etc |
|  Derivatives | Fair value is measured by models such as option model (Closed form), DCF model, FDM and Monte Carlo Simulation. | Discount rate, values of underlying assets such as foreign exchange rate and stock prices, volatility, etc. |
|  Others | The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the binomial tree and least-squares Monte Carlo simulation (LSMC), which are commonly used valuation techniques in the market. | Stock prices, volatility of underlying assets, etc. |

---

------

##### [**Table of Contents**](#toc)
Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Fair value measurement<br>technique | Type | Significant<br> unobservable<br>inputs | Range(%) | Impact of changes in significant<br> unobservable inputs on fair value measurement |
|  Loans | Binomial Tree |  | Stock prices | 46.53% | Variation of fair value increases as volatility of underlying asset and stock price increases. |
|  | DCF model |  | Discount rate | 1.98%~2.18% | Fair value decreases as discount rate increases. |
|  Derivative assets | Option valuation model and others | Equity related | Correlation coefficient | 0.21~0.67 | Variation of fair value increases as correlation coefficient increases. |
|  Derivative liabilities | Option valuation model and others | Equity related | Correlation coefficient | 0.21~0.67 | Variation of fair value increases as correlat<br> ion coefficient increases. |
|  |  |  | Volatility of underlying asset | 11.74%~97.16% | Variation of fair value increases as volatility of underlying assets increases. |
|  Equity securities, capital contributions, and beneficiary certificates | Binomial Tree |  | Stock prices, Volatility of underlying asset | 28.40% | Variation of fair value increases as volatility of underlying asset and stock price increases. |
|  Equity securities, capital contributions, and beneficiary certificates | DCF model and others |  | Discount rate | 0.00%~19.14% | Fair value increases as discount rate decreases. |
|  |  |  | Terminal growth rate | 0.00%, 1.00% | Fair value increases as terminal growth rate increases. |
|  |  |  | Liquidation value | 0.00% | Fair value increases as liquidation value increases. |
|  Others | Binomial Tree |  | Stock prices, Volatility of underlying asset | 20.15%~36.19% | Variation of fair value increases as volatility of underlying asset and stock price increases. |

---

Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.

------

##### [**Table of Contents**](#toc)
(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows
(Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning<br>balance | Net<br>income<br>(loss) (\*1) | Other<br>comprehensive<br>income | Purchases/<br>issuances | Disposals /<br>settlements | Transfer to<br>or out of<br>Level 3 (\*2) | Ending<br>balance |
|  Financial assets: |  |  |  |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 2117 | (40) |  |  | (999) |  | 1078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 303985 | 697 |  | 20175 | (16974) | (32) | 307851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contributions | 1287723 | 103376 |  | 703160 | (117785) |  | 1976474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | 1104074 | (2922) |  | 98420 | 259204 |  | 1458776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 213635 | 17544 |  | 802092 | (928766) |  | 104506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 29348 | 64359 |  | 582 | (319) |  | 93970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other foreign currency financial assets |  |  |  | 41679 |  |  | 41679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 96191 | 16744 |  | 40836 | (8931) |  | 144840 |
|  Sub-total | 3037073 | 199758 |  | 1706944 | &nbsp;&nbsp;&nbsp;&nbsp;(814570) | (32) | 4129173 |
|  Financial assets at FVTOCI |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 581455 |  | 2084 | 2357 | (28831) |  | 557065 |
|  Total | 3618528 | 199758 | &nbsp;&nbsp;&nbsp;&nbsp;2084 | 1709301 | (843401) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32) | 4686238 |
|  Financial liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 4641 | 8058 |  | (351) | (2899) |  | 9449 |
|  Total | 4641 | 8058 |  | (351) | (2899) |  | 9449 |

---

---

| | |
|:---|:---|
| (\*1) | For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounting to 2,770 million Won for the year ended December 31, 2022, which is from financial assets and liabilities that the Group holds as at the end of the year.  |

---

(\*2) There were transfers between levels as the availability of observable market data for these financial instruments changed. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning<br>balance | Net income<br>(loss) (\*1) | Other<br>comprehensive<br>income | Purchases/<br>issuances | Disposals /<br>settlements | Transfer to<br>or out of<br>Level 3 (\*2) | Ending<br>balance |
|  Financial assets: |  |  |  |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 4618 | (431) |  | 1000 | (4070) | 1000 | 2117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 450371 | (24501) |  | 33570 | (154455) | (1000) | 303985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contributions | 865685 | 82596 |  | 575643 | (236201) |  | 1287723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | 1917811 | 10347 |  | 86224 | (910308) |  | 1104074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 209062 | 16975 |  | 761045 | (773447) |  | 213635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 7872 | 22256 |  | 5058 |  | (5838) | 29348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 84979 | 12245 |  | 14982 | (16548) | 533 | 96191 |
|  Sub-total | 3540398 | 119487 |  | 1477522 | (2095029) | (5305) | 3037073 |
|  Financial assets at FVTOCI |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 570715 |  | 11362 | 645 | (1267) |  | 581455 |
|  Total | 4111113 | 119487 | 11362 | 1478167 | (2096296) | (5305) | 3618528 |
|  Financial liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 20136 | 4926 |  | (3979) | (10188) | (6254) | 4641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at FVTPL designated as upon initial recognition |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity-linked securities | 19630 | (102) |  |  | (19528) |  |  |
|  Total | 39766 | 4824 |  | (3979) | (29716) | (6254) | 4641 |

---

---

| | |
|:---|:---|
| (\*1) | For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounting to 2,634 million Won for the year ended December 31, 2021, which is from financial assets and liabilities that the Group holds as at the end of the year.  |

---

(\*2) There were transfers between levels as the availability of observable market data for these financial instruments changed. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

------

##### [**Table of Contents**](#toc)
(4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the
fair value of Level 3 financial instruments are as follows.

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

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 4,695,688 million won and 3,623,168 million won as of December 31, 2022 and 2021 respectively, equity instruments of 3,196,703 million won and 3,030,775 million won whose carrying amount are considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis.

The sensitivity on fluctuation of input variables by financial instruments as of December 31, 2022 and 2021 is as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Net income (loss) | Net income (loss) | Other comprehensive<br>income (loss) | Other comprehensive<br>income (loss) |
|  | Favorable | Unfavorable | Favorable | Unfavorable |
|  Financial assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets (\*1) | 2453 | (1993) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans (\*2) | 203 | (200) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 1 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities (\*2) (\*3) (\*4) | 10146 | (8079) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates (\*4) | 737 | (737) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*2) | 2860 | (2790) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities (\*3) (\*4) |  |  | 24370 | (17579) |
|  Total | 16400 | (13799) | 24370 | (17579) |
|  Financial liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities (\*1) | 41 | (39) |  |  |
|  Total | 41 | (39) |  |  |

---

---

| | |
|:---|:---|
| (\*1) | Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable variables, by 10%.  |

---

---

| | |
|:---|:---|
| (\*2) | Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10~10%). The stock prices and volatility are major unobservable variables.  |

---

---

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

---

---

| | |
|:---|:---|
| (\*4) | Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Net income (loss) | Net income (loss) | Other comprehensive<br>income (loss) | Other comprehensive<br>income (loss) |
|  | Favorable | Unfavorable | Favorable | Unfavorable |
|  Financial assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets (\*1) | 1668 | (1191) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans (\*2) | 682 | (671) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 13 | (12) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities (\*2) (\*3) (\*4) | 6348 | (5331) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates (\*4) | 1305 | (1171) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*2) | 921 | (876) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities (\*3) (\*4) |  |  | 30391 | (23865) |
|  Total | 10937 | &nbsp;&nbsp;&nbsp;&nbsp;(9252) | 30391 | (23865) |
|  Financial liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities (\*1) | 205 | (264) |  |  |
|  Total | 205 | (264) |  |  |

---

---

| | |
|:---|:---|
| (\*1) | Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable variables, by 10%.  |

---

---

| | |
|:---|:---|
| (\*2) | Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10~10%). The stock prices and volatility are major unobservable variables.  |

---

---

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

---

---

| | |
|:---|:---|
| (\*4) | Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.  |

---

------

##### [**Table of Contents**](#toc)
(5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as
follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Fair value | Fair value | Fair value | Fair value | Carrying<br>amount |
|  | Level 1 | Level 2 | Level 3 | Total | Carrying<br>amount |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities at amortized cost | 2652449 | 24623369 |  | 27275818 | 28268516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost |  | 6238724 | 345952544 | 352191268 | 355760730 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers |  | 343931576 |  | 343931576 | 342105209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 26063256 | 2135047 | 28198303 | 28429603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 42918411 |  | 42918411 | 44198486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 21244664 | 536209 | 21780873 | 22492705 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Fair value | Fair value | Fair value | Fair value | Carrying<br>amount |
|  | Level 1 | Level 2 | Level 3 | Total | Carrying<br>amount |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities at amortized cost | 2122401 | 14921119 |  | 17043520 | 17086274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost |  | 3 | 346871245 | 346871248 | 348885617 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers |  | 318070829 |  | 318070829 | 317899871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 23393520 | 1270305 | 24663825 | 24755459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 44500963 |  | 44500963 | 44653864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 23154733 | 379534 | 23534267 | 23827821 |

---

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

---

| | | |
|:---|:---|:---|
|  | Valuation methods | Input variables |
|  Securities at amortized cost | The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread. | Risk-free market rate and credit spread |
|  Loans and other financial assets at amortized cost | The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor. | Risk-free market rate, credit spread and prepayment rate |
|  Deposits due to customers, borrowings, debentures and other financial liabilities | The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group. | Risk-free market rate, credit spread and forward rate |

---

------

##### [**Table of Contents**](#toc)
(6) Financial instruments by category

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
| Financial assets | Financial asset<br>at FVTPL | Financial assets<br>at FVTOCI | Financial assets at<br>amortized cost | Derivatives assets<br>(Designated for hedging) | Total |
|  Deposits | 34995 |  | 2994672 |  | 3029667 |
|  Securities | 10676985 | 33085080 | 28268516 |  | 72030581 |
|  Loans | 899228 |  | 343918560 |  | 344817788 |
|  Derivative assets | 8206181 |  |  | 37786 | 8243967 |
|  Other financial assets | 43184 |  | 8847497 |  | 8890681 |
|  Total | 19860573 | 33085080 | 384029245 | 37786 | 437012684 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
| Financial liabilities | Financial liabilities<br>at FVTPL | Financial liabilities at<br>amortized cost | Derivatives<br>liabilities<br>(Designated for<br>hedging) | Total |
|  Deposits due to customers | 35161 | 342105209 |  | 342140370 |
|  Borrowings | 12113 | 28429603 |  | 28441716 |
|  Debentures |  | 44198486 |  | 44198486 |
|  Derivative liabilities | 8905125 |  | 202911 | 9108036 |
|  Other financial liabilities |  | 22492707 |  | 22492707 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;8952399 | 437226005 | 202911 | 446381315 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| Financial assets | Financial asset<br>at FVTPL | Financial assets at<br>FVTOCI | Financial assets at<br>amortized cost | Derivatives<br>assets<br>(Designated for<br>hedging) | Total |
|  Deposits | 65072 |  | 2866884 |  | 2931956 |
|  Securities | 7960046 | 39119789 | 17086274 |  | 64166109 |
|  Loans | 667467 |  | 336799510 |  | 337466977 |
|  Derivative assets | 4803131 |  |  | 106764 | 4909895 |
|  Other financial assets | 1518 |  | 9219223 |  | 9220741 |
|  Total | 13497234 | 39119789 | 365971891 | 106764 | 418695678 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| Financial liabilities | Financial liabilities<br>at FVTPL | Financial liabilities at<br>amortized cost | Derivatives<br>liabilities<br>(Designated for<br>hedging) | Total |
|  Deposits due to customers | 65016 | 317899871 |  | 317964887 |
|  Borrowings | 241174 | 24755459 |  | 24996633 |
|  Debentures |  | 44653864 |  | 44653864 |
|  Derivative liabilities | 4567268 |  | 27584 | 4594852 |
|  Other financial liabilities |  | 23827821 |  | 23827821 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;4873458 | 411137015 | &nbsp;&nbsp;&nbsp;&nbsp;27584 | 416038057 |

---

------

##### [**Table of Contents**](#toc)
(7) Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category during the years ended December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Interest Income<br>(expense) | Fees and<br>Commissions<br>Income<br>(expense) | Reversal<br>(provision) of<br>credit loss | Gain or loss<br>on<br>transactions<br>and valuation | Dividends,<br>etc. | Total |
|  Financial assets at FVTPL | 106698 | (134) |  | 238502 | 136136 | 481202 |
|  Financial assets at FVTOCI | 632615 | 1606 | 827 | (21498) | 23846 | 637396 |
|  Securities at amortized cost | 515246 |  | (3151) |  |  | 512095 |
|  Loans and other financial assets at amortized cost | 13399990 | 600902 | (881668) | 74204 |  | 13193428 |
|  Financial liabilities at amortized cost | (5950277) | 2094 |  |  |  | (5948183) |
|  Net derivatives (designated for hedging) |  |  |  | 78822 |  | 78822 |
|  Total | 8704272 | 604468 | (883992) | 370030 | 159982 | 8954760 |
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Interest Income<br>(expense) | Fees and<br>Commissions<br>Income<br>(expense) | Reversal<br>(provision) of<br>credit loss | Gain or loss<br>on<br>transactions<br>and valuation | Dividends,<br>etc. | Total |
|  Financial assets at FVTPL | 45803 | (156) |  | 325751 | 284683 | 656081 |
|  Financial assets at FVTOCI | 381814 | 1343 | (4909) | 32624 | 24528 | 435400 |
|  Securities at amortized cost | 324920 |  | (664) |  |  | 324256 |
|  Loans and other financial assets at amortized cost | 9142212 | 494296 | (551957) | 107317 |  | 9191868 |
|  Financial liabilities at amortized cost | (2901592) | 2205 |  |  |  | (2899387) |
|  Net derivatives (designated for hedging) |  |  |  | 72493 |  | 72493 |
|  Total | 6993157 | 497688 | (557530) | 538185 | 309211 | 7780711 |

---

------

##### [**Table of Contents**](#toc)
**12.** **DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS** 

(1) Derecognition of financial instruments

Transferred financial assets that do not meet the condition of derecognition in their entirety.

1) Bonds sold under repurchase agreements

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

---

| | | | |
|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2021 |
|  Assets transferred | Financial assets at FVTPL | 214577 | 248009 |
|  | Financial assets at FVTOCI | 583198 | 127065 |
|  | Securities at amortized cost | 1171300 | 38995 |
|  | Total | 1969075 | 414069 |
|  Related liabilities | Bonds sold under repurchase agreements | 1898744 | 749976 |

---

2) Securities loaned

When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred; however, they should be returned at the end of lending period. Therefore, the Group does not derecognize them from the consolidated financial statements as it owns majority of risks and benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying amount of the securities loaned are as follows (Unit: Korean Won in millions):

 <u>December 31, 2022</u> <u>December 31, 2021</u> <u> Loaned to</u> <br> Financial assets at FVTOCI Korean treasury and government bonds 98,027 98,535 Korea Securities Finance Corporation

3) Liquidity of financial assets

As of December 31, 2022 and 2021, the consolidated structured companies issued asset-backed securities with loans and corporate bonds held by the Group as liquid assets, and the Group bear related risks through the purchase agreements or credit contributions. The transaction details of the transfer of the financial instrument are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | | December 31, 2022 | December 31, 2021 |
| | | Carrying amount | Carrying amount |
|  Assets transferred | Financial assets at FVPL | 49808 | 151930 |
|  | Loans at amortized cost | 4640182 | 4682882 |
|  Related liabilities | Asset-backed borrowings | 231800 | 2424080 |
|  | Asset-backed bonds | 1209364 | 978274 |

---

---

| | |
|:---|:---|
| (\*) | The carrying amount is the amount before the allowance for bad debts.  |

---

On the other hand, the details of transferred financial assets that have not been removed, such as bonds sold under the repurchase agreement and loan securities, are also described in Note 18. The Group does not have financial instruments that are continuously involved.

------

##### [**Table of Contents**](#toc)
(2) The offset of financial assets and liabilities

The Group possesses both the uncollected domestic exchange receivables and the unpaid domestic exchange payable, which satisfy offsetting criteria of K-IFRS 1032. Therefore, the total number of uncollected domestic exchange receivables has been offset with a part of unpaid domestic exchange payables, and they have been disclosed in loans at amortized cost and other financial assets and other financial liabilities of the Group's statements of financial position respectively.

The Group possesses the derivative assets, derivative liabilities, receivable spot exchange and payable spot exchange that do not satisfy the offsetting criteria of K-IFRS 1032, but provide the Group under the circumstances of the trading party's defaults, insolvency or bankruptcy, with the right of offsetting. Items such as cash collateral cannot satisfy the offsetting criteria of K-IFRS 1032, but in accordance with the collateral arrangements and under the circumstances of the trading party's default, insolvency or bankruptcy, the net amount of derivative assets and derivative liabilities, receivable spot exchange and payable spot exchange can be offset.

The Group has entered into a resale and repurchase agreement and accounted it as a collateralized borrowing. The Group has also entered into a resale and purchase agreement and accounted it as a secured loans. The Group under the repurchase agreements has an offsetting right only upon the counterparty's default, insolvency or bankruptcy; thus, the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement, which does not satisfy the offsetting criteria of K-IFRS 1032. The Group disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loan at amortized cost and other financial assets.

As of December 31, 2022 and 2021, the financial instruments to be offset and may be covered by master netting agreements and similar agreements are as follows (Unit: Korean Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Gross<br>amounts of<br>recognized<br>financial<br>assets | Gross<br>amounts of<br>recognized<br>financial<br>assets setoff | Net<br>amounts of<br>consolidated<br>financial<br>assets<br>presented | Related amounts not setoff<br>in the consolidated<br>statement of financial<br>position | Related amounts not setoff<br>in the consolidated<br>statement of financial<br>position | Net<br>amounts |
|  | Gross<br>amounts of<br>recognized<br>financial<br>assets | Gross<br>amounts of<br>recognized<br>financial<br>assets setoff | Net<br>amounts of<br>consolidated<br>financial<br>assets<br>presented | Netting<br>agreements<br>and others | Cash<br>collateral<br>received<br>and<br>others | Net<br>amounts |
|  Financial assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets (\*1) | 7032465 |  | 7032465 | 9175416 | 748981 | 1616779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable spot exchange (\*2) | 4508711 |  | 4508711 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds purchased under resale agreements (\*2) | 6793938 |  | 6793938 | 6793938 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement debits (\*2) (\*5) | 39787371 | 39209452 | 577919 |  |  | 577919 |
|  Total | 58122485 | 39209452 | 18913033 | 15969354 | 748981 | 2194698 |
|  Financial liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities (\*1) | 7652440 |  | 7652440 | 10043092 | 145268 | 1972695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable spot exchange (\*3) | 4508615 |  | 4508615 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds sold under repurchase agreements (\*4) | 2313044 |  | 2313044 | 2313044 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement credits (\*3) (\*5) | 43841373 | 39209452 | 4631921 | 2504062 |  | 2127859 |
|  Total | 58315472 | 39209452 | 19106020 | 14860198 | 145268 | 4100554 |

---

(\*1) The items include derivative assets and liabilities held for trading and designated for hedging.

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

(\*3) The items are included in other financial liabilities.

(\*4) The items are included in borrowings.

---

| | |
|:---|:---|
| (\*5) | Certain financial assets and liabilities are presented as net amounts.  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Gross<br>amounts of<br>recognized<br>financial<br>assets | Gross<br>amounts of<br>recognized<br>financial<br>assets setoff | Net<br>amounts of<br>consolidated<br>financial<br>assets<br>presented | Related amounts not setoff<br>in the consolidated<br>statement of financial<br>position | Related amounts not setoff<br>in the consolidated<br>statement of financial<br>position | Net<br>amounts |
|  | Gross<br>amounts of<br>recognized<br>financial<br>assets | Gross<br>amounts of<br>recognized<br>financial<br>assets setoff | Net<br>amounts of<br>consolidated<br>financial<br>assets<br>presented | Netting<br>agreements<br>and others | Cash<br>collateral<br>received<br>and<br>others | Net<br>amounts |
|  Financial assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets (\*1) | 4172737 |  | 4172737 | 8260784 | 552071 | 1275186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable spot exchange (\*2) | 5915304 |  | 5915304 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds purchased under resale agreements (\*2) | 10332858 |  | 10332858 | 10332858 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement debits (\*2) (\*5) | 42358138 | 42275583 | 82555 |  |  | 82555 |
|  Total | 62779037 | 42275583 | 20503454 | 18593642 | 552071 | 1357741 |
|  Financial liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities (\*1) | 3708263 |  | 3708263 | 8755492 | 114716 | 754855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable spot exchange (\*3) | 5916800 |  | 5916800 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds sold under repurchase agreements (\*4) | 749976 |  | 749976 | 749976 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement credits (\*3) (\*5) | 48982056 | 42275583 | 6706473 | 3401251 |  | 3305222 |
|  Total | 59357095 | 42275583 | 17081512 | 12906719 | 114716 | 4060077 |

---

(\*1) The items include derivative assets and liabilities held for trading and designated for hedging.

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

(\*3) The items are included in other financial liabilities.

(\*4) The items are included in borrowings.

---

| | |
|:---|:---|
| (\*5) | Certain financial assets and liabilities are presented as net amounts.  |

---

------

##### [**Table of Contents**](#toc)
**13.** **INVESTMENTS IN JOINT VENTURES AND ASSOCIATES** 

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership (%) | Percentage of ownership (%) | | |  |
| Joint ventures and associates (\*4) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Main business  | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements<br>as of |  |
|  Woori Bank |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; W Service Networks Co., Ltd. (\*1) | Freight & staffing services | 4.9 | 4.9 | Korea | 2022.11.30 | (\*5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. (\*2) | Credit information | 9.9 | 9.9 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Finance Security Co., Ltd. (\*1) | Security service | 15 | 15 | Korea | 2022.11.30 | (\*5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wongwang Co., Ltd. (\*3) | Wholesale and real estate | 29 | 29 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sejin Construction Co., Ltd. (\*3) | Construction | 29.6 | 29.6 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ARES-TECH Co., Ltd. (\*3) | Electronic component manufacturing | 23.4 | 23.4 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reading Doctors Co., Ltd. (\*3)(\*11) | Other services |  | 35.4 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cultizm Korea LTD Co., Ltd. (\*3) (\*11) | Wholesale and retail sales |  | 31.3 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NK Eng Co., Ltd. (\*3) | Manufacturing | 23.1 | 23.1 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beomgyo., Ltd. (\*3) | Telecommunication equipment retail sales | 23.1 | 23.1 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Growth Partnerships New Technology Private Equity Fund | Other financial services | 23.1 | 23.1 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2016KIF-IMM Woori Bank Technology Venture Fund | Other financial services | 20 | 20 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; K BANK Co., Ltd. (\*2) | Finance | 12.6 | 12.6 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Bank-Company K Korea Movie Asset Fund (\*9) | Other financial services | 25 | 25 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partner One Value Up I Private Equity Fund | Other financial services | 23.3 | 23.3 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | Other financial services | 20 | 20 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | Other financial services | 25 | 25 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LOTTE CARD Co., Ltd. | Credit card and installment financing | 20 | 20 | Korea | 2022.9.30 | (\*5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Together-Korea Government Private Pool Private Securities Investment Trust No. 3 | Other financial services | 100 | 100 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Genesis Environmental Energy Company 1st Private Equity Fund(\*8) | Trust and collective investment |  | 24.8 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Union Technology Finance Investment Association | Trust and collective investment | 29.7 | 29.7 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dicustody Co., Ltd.(\*2) | Other information technology and computer operation related services | 1 | 1 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Orient Shipyard Co., Ltd.(\*3) | Manufacture of sections for ships | 22.7 |  | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joongang Network Solution Co., Ltd.(\*3) | Other information technology and computer operation related services | 25.3 |  | Korea |  |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership (%) | Percentage of ownership (%) | | |
| Joint ventures and associates (\*4) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Main business  | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements<br>as of |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BTS 2nd Private Equity Fund | Other financial services | 20.0 |  | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; STASSETS FUND III | Other financial services | 28.3 |  | Korea | 2022.12.31 |
|  Woori Bank (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese Hotel Real Estate Private Equity Fund No.2 | Other financial services | 19.9 | 19.9 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Seoul Beltway Private Special Asset Fund No.1 | Trust and collective investment | 25.0 | 25.0 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Multi-Return Securities Investment Trust 3 (Balanced Bond) (\*8) | Collective investment business |  | 20.0 | Korea |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F | Collective investment business | 27.9 | 14.5 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Safe Plus General Type Private Investment Trust S-8(Bond) | Collective investment business | 9.2 |  | Korea | 2022.12.31 |
|  Woori Financial Capital Co., Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WOORI TAERIM 1st Fund | Other financial services | 25.6 | 25.6 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portone-Cape Fund No.1 | Other financial services | 20.0 | 20.0 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KIWOOM WOORI Financial 1st Fund (\*7) | Other financial services | 9.1 | 9.1 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DeepDive WOORI 2021-1 Financial Investment Fund (\*7) | Other financial services | 11.9 | 11.9 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Darwin Green Packaging Private Equity Fund | Other financial services | 20.4 | 20.4 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DS Power Semicon Private Equity Fund | Other financial services | 21.0 |  | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Koreawide partners 2nd Private Equity Fund | Other financial services | 26.7 |  | Korea | 2022.12.31 |
|  Woori Investment Bank Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori FirstValue Private Real Estate Fund No.2 | Real estate business | 12.0 | 12.0 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WooriG Real Infrastructure Blind General Type Private Placement Investment Trust | Investment trust and discretionary investment business | 0.1 | 0.3 | Korea | 2022.12.31 |
|  Woori Asset Management Co. Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori BIG2 Plus Securities Investment Trust(Balanced Bond) (\*12) | Collective investment business | 23.1 |  | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2025 (\*12) | Collective investment business | 23.6 |  | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Together TDF 2030 (\*12) | Collective investment business | 23.8 |  | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Star50 feeder fund(H) (\*12) | Collective investment business | 17.9 |  | Korea | 2022.12.31 |
|  Woori Private Equity Asset Management Co., Ltd. |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Hanhwa Eureka Private Equity Fund (\*10) | Other financial services |  | 0.8 | Korea |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership (%) | Percentage of ownership (%) | | |  |
| Joint ventures and associates (\*4) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Main business  | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements<br>as of |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aarden Woori Apparel 1st Private Equity Fund (\*2) | Other financial services | 0.5 | 0.5 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Dyno 1st Private Equity Fund (\*2) | Other financial services | 19.6 |  | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Australia Green Energy 1st PEF (\*2) | Other financial services | 4.0 |  | Korea | 2022.12.31 |  |
|  Japanese Hotel Real Estate Private Equity Fund 1 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Godo Kaisha Oceanos 1 | Other financial services | 47.8 | 47.8 | Japan | 2022.10.31 | (\*5) |
|  Woori G Japan Private Placement Real Estate Master Investment Trust No.2 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Zip 1 | Other financial services | 64.0 | 63.9 | Japan | 2022.9.30 | (\*5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori Zip 2 | Other financial services | 64.0 | 63.8 | Japan | 2022.9.30 | (\*5) |
|  Woori bank and Woori card Co., Ltd. (\*6) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dongwoo C & C Co., Ltd. (\*3) | Construction | 24.5 | 24.5 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SJCO Co., Ltd. (\*3) | Aggregate transportation and wholesale | 29.8 | 29.7 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G2 Collection Co., Ltd. (\*3) | Wholesale and retail sales | 29.2 | 29.2 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Base Enterprise Co., Ltd. (\*3) (\*11) | Manufacturing |  | 48.4 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kyesan Engineering Co., Ltd. (\*3) | Construction | 23.3 | 23.3 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Good Software Lap Co., Ltd. (\*3) | Service | 29.4 | 29.4 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QTS Shipping Co., Ltd. (\*3)(\*11) | Complex transportation brokerage |  | 49.8 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DAEA SNC Co., Ltd. (\*3) | Wholesale and retail sales | 25.5 | 25.5 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Force TEC Co., Ltd. | Manufacturing | 24.5 | 24.5 | Korea | 2022.9.30 | (\*5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PREXCO Co., Ltd. (\*3) | Manufacturing | 28.1 | 28.1 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JiWon Plating Co., Ltd. (\*3) | Plating | 20.8 | 20.8 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Youngdong Sea Food Co., Ltd. (\*3) | Processed sea food manufacturing | 24.5 | 24.5 | Korea |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KUM HWA Co., Ltd. | Telecommunication equipment retail sales | 20.1 | 20.1 | Korea | 2022.09.30 | (\*5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jinmyung Plus Co., Ltd. | Manufacturing | 21.3 | 21.3 | Korea | 2022.09.30 | (\*5) |
|  Woori bank and Woori Financial Capital Co., Ltd. (\*6) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JC Assurance No.2 Private Equity Fund | Other financial services | 23.5 | 24.4 | Korea | 2022.09.30 | (\*5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dream Company Growth no.1 PEF | Other financial services | 27.8 | 27.8 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HMS-Oriens 1st Fund | Other financial services | 22.8 | 22.8 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori G Senior Loan Private Placement Investment Trust No.1 | Collective investment business | 21.7 | 21.7 | Korea | 2022.12.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Genesis Eco No.1 Private Equity Fund | Other financial services | 29.0 | 29.0 | Korea | 2022.12.31 |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Percentage of ownership (%) | Percentage of ownership (%) | | |
| Joint ventures and associates (\*4) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Main business  | December 31,<br>2022 | December 31,<br>2021 | Location | Financial<br>statements<br>as of |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paratus Woori Material Component Equipment joint venture company | Other financial services | 29.9 | 29.9 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midas No. 8 Private Equity Joint Venture Company | Other financial services | 28.5 | 28.5 | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Orchestra Private Equity Fund IV | Other financial services | 28.2 |  | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synaptic Green No.1 PEF | Other financial services | 21.1 |  | Korea | 2022.12.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGEN2022No. 1 Private Equity Fund | Other financial services | 24.8 |  | Korea | 2022.12.31 |
|  Woori Bank and Woori Investment Bank Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC-Woori LP Secondary Fund | Other financial services | 38.8 | 38.8 | Korea | 2022.12.31 |
|  Woori bank and Woori Asset Management Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 (\*10) | Collective investment business |  | 27.5 | Korea |  |
|  Woori Bank and Woori Private Equity Asset Management Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori-Q Corporate Restructuring Private Equity Fund | Other financial services | 35.6 | 38.1 | Korea | 2022.12.31 |
|  Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (\*6) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori-Shinyoung Growth-Cap Private Equity Fund I | Other financial services | 35.0 | 35.0 | Korea | 2022.12.31 |

---

(\*1) Most of the significant business transactions of associates are with the Group as of December 31, 2022 and 2021.

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

(\*3) There is no investment balance as of December 31, 2022 and 2021.

(\*4) Woori G Oncorp Corporate support of Major Industry General Type Private Placement Investment Trust (Type 2) and other 13 joint ventures and associates can exercise significant influence but was classified as an item measured at fair value through profit or loss.

---

| | |
|:---|:---|
| (\*5) | The equity method was applied using the most recent financial statements available from the settlement date because no financial statements were available at the end of the reporting period and the significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the subsidiary were duly reflected.  |

---

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

(\*7) The Group can participate as a co-operator to exert significant influence.

(\*8) It was excluded due to liquidation.

(\*9) It was dissoluted and will be liquidated.

(\*10) It was excluded from associates during the period.

(\*11) It was excluded as Woori Bank sold its shares during the period.

---

| | |
|:---|:---|
| (\*12) | It was reclassified to associate from subsidiary resulted from the loss of control along with the changes in percentage of ownership.  |

---

------

##### [**Table of Contents**](#toc)
(2) Changes in the carrying value of investments in associates accounted for using the equity method of accounting
are as follows (Unit: Korean Won in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Acquisition<br>cost | January 1,<br>2022 | Share of<br>profits(losses)<br>and others | Acquisition | Disposal/<br>Reclassification | Dividends | Change in<br>capital | December 31,<br>2022 |
|  W Service Networks Co., Ltd. | 108 | 183 | 29 |  |  | (4) |  | 208 |
|  Korea Credit Bureau Co., Ltd. | 3313 | 9423 | (3714) |  |  |  |  | 5709 |
|  Korea Finance Security Co., Ltd. | 3267 | 3101 | (727) |  |  |  |  | 2374 |
|  Woori Growth Partnerships New Technology Private Equity Fund | 12942 | 12448 | 490 |  | (2049) |  |  | 10889 |
|  2016KIF-IMM Woori Bank Technology Venture Fund | 7594 | 12630 | (1619) |  | (801) | (736) |  | 9474 |
|  K BANK Co., Ltd. | 236232 | 239493 | 11854 |  |  |  | (3558) | 247789 |
|  Woori Bank-Company K Korea Movie Asset Fund |  | 345 | 71 |  |  | (177) |  | 239 |
|  Partner One Value Up I Private Equity Fund | 5039 | 6576 | (2298) |  |  |  |  | 4278 |
|  IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | 7556 | 11153 | 1312 |  | (2180) |  |  | 10285 |
|  Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | 4355 | 4254 | 1 | 100 |  |  |  | 4355 |
|  LOTTE CARD Co.,Ltd. | 346810 | 458295 | 58400 |  |  | (12960) | 10396 | &nbsp;&nbsp;&nbsp;&nbsp;514131 |
|  Together-Korea Government Private Pool Private Securities Investment Trust No. 3 | 10000 | 10070 | 173 |  |  |  |  | 10243 |
|  Genesis Environmental Energy Company 1st Private Equity Fund |  | 4126 | (41) |  | (3738) | (347) |  |  |
|  Union Technology Finance Investment Association | 14637 | 12388 | 187 | 2250 | (363) |  |  | 14462 |
|  Dicustody Co., Ltd. | 1 | 1 |  |  |  |  |  | 1 |
|  Orient Shipyard Co., Ltd. |  |  |  |  |  |  |  |  |
|  BTS 2nd Private Equity Fund | 3026 |  | (145) | 3026 |  |  |  | 2881 |
|  STASSETS FUND III | 1500 |  | (270) | 1500 |  |  |  | 1230 |
|  Japanese Hotel Real Estate Private Equity Fund No.2 | 3174 | 3196 | 194 |  |  | (299) | (236) | 2855 |
|  Woori Seoul Beltway Private Special Asset Fund No.1 | 9791 | 7551 | 246 | 2312 |  | (235) |  | 9874 |
|  Woori Multi-Return Securities Investment Trust 3 (Balanced Bond) |  | 10023 |  |  | (9950) | (73) |  |  |
|  Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F | &nbsp;&nbsp;&nbsp;&nbsp;110000 | &nbsp;&nbsp;&nbsp;&nbsp;151822 | 2312 | 50000 | (90137) | (1972) |  | 112025 |
|  Woori Safe Plus General Type Private Investment Trust S-8(Bond) | 10000 |  | 230 | 10000 |  | (48) |  | 10182 |
|  WOORI TAERIM 1st Fund | 1100 | 991 | (3) |  |  |  |  | 988 |
|  Portone-Cape Fund No.1 | 340 | 489 | (25) |  |  |  |  | 464 |
|  KIWOOM WOORI Financial 1st Investment Fund | 1000 | 973 | (20) |  |  |  |  | 953 |
|  DeepDive WOORI 2021-1 Financial Investment Fund | 900 | 993 | (12) |  | (100) | (3) |  | 878 |
|  Darwin Green Packaging Private Equity Fund | 4000 | 3957 | 388 |  |  | (400) |  | 3945 |
|  DS Power Semicon Private Equity Fund | 3000 |  | 245 | 3000 |  | (269) |  | 2976 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Acquisition<br>cost | January 1,<br>2022 | Share of<br>profits(losses)<br>and others | Acquisition | Disposal/<br>Reclassification | Dividends | Change in<br>capital | December 31,<br>2022 |
|  Koreawide partners 2nd Private Equity Fund | 20000 |  |  | 20000 |  |  |  | 20000 |
|  Woori FirstValue Private Real Estate Fund No.2 | 9000 | 763 | (6) |  | (199) |  |  | 558 |
|  WooriG Real Infrastructure Blind General Type Private Placement Investment Trust | 100 | 100 | 2 |  |  |  |  | 102 |
|  Woori BIG2 Plus Securities Investment Trust(Balanced Bond) | 1200 |  | (161) |  | 1235 |  |  | 1074 |
|  Woori Together TDF 2025 | 2000 |  | (202) |  | 2192 |  |  | 1990 |
|  Woori Together TDF 2030 | 2000 |  | (214) |  | 2247 |  |  | 2033 |
|  WOORI Star50 feeder fund(H) | 200 |  | (5) |  | 131 |  |  | 126 |
|  Woori Hanhwa Eureka Private Equity Fund |  | 327 | (48) |  | (164) | (115) |  |  |
|  Aarden Woori Apparel 1st Private Equity Fund | 100 | 99 | (2) |  |  |  |  | 97 |
|  Woori Dyno 1st Private Equity Fund | 2000 |  | (6) | 2000 |  |  |  | 1994 |
|  Australia Green Energy 1st PEF | 4913 |  | (55) | 4913 |  |  |  | 4858 |
|  Godo Kaisha Oceanos 1 | 10800 | 9905 | 84 |  |  | (1049) | (152) | 8788 |
|  Woori Zip 1 | 9254 | 10496 | (138) |  | (873) |  | (795) | 8690 |
|  Woori Zip 2 | 12928 | 14732 | (127) |  | (1309) |  | (1116) | 12180 |
|  Force TEC Co., Ltd. (\*) |  |  | 56 |  |  |  | (56) |  |
|  KUM HWA Co., Ltd. (\*) |  |  |  |  |  |  |  |  |
|  Jinmyung Plus Co., Ltd. |  |  | 10 |  |  |  |  | 10 |
|  JC Assurance No.2 Private Equity Fund | 29349 | 17728 | (17728) |  |  |  |  |  |
|  Dream Company Growth no.1 PEF | 7412 | 7914 | 418 |  |  | (471) |  | 7861 |
|  HMS-Oriens 1st Fund | 12000 | 12007 | 1245 |  |  |  |  | 13252 |
|  WooriG Senior Loan General Type Private Investment Trust No.1 | 80268 | 88029 | 3788 | 14073 | (20322) | (3707) |  | 81861 |
|  Genesis Eco No.1 Private Equity Fund | 12000 | 11120 | (99) | 195 |  |  |  | 11216 |
|  Paratus Woori Material Component Equipment joint venture company | 17700 | 17493 | (243) |  |  |  |  | 17250 |
|  Midas No. 8 Private Equity Joint Venture Company | 18735 | 18968 | 275 |  |  | (530) |  | 18713 |
|  Orchestra Private Equity Fund IV | 9878 |  | 197 | 10000 | (122) | (377) |  | 9698 |
|  Synaptic Green No.1 PEF | 8000 |  | (207) | 8000 |  |  |  | 7793 |
|  IGEN2022No. 1 Private Equity Fund | 7822 |  | 650 | 8000 | (475) | (165) |  | 8010 |
|  PCC-Woori LP Secondary Fund | 10440 | 12350 | 674 | 3440 | (3480) |  |  | 12984 |
|  Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 |  | 73787 |  |  | (73598) | (189) |  |  |
|  Woori-Q Corporate Restructuring Private Equity Fund | 27063 | 46155 | (288) | 536 | (18867) |  |  | 27536 |
|  Woori-Shinyoung Growth-Cap Private Equity Fund I | 17018 | 28713 | 14561 |  |  |  |  | 43274 |
|  | 1131865 | 1335167 | 69689 | 143345 | (222922) | (24126) | 4483 | 1305636 |

---

---

| | |
|:---|:---|
| (\*) | As a result of discontinuation of the equity method, related companies' losses amount not recognized is 665 million Won for Force TEC Co., Ltd. 3,743 million Won for Orient Shipyard Co., Ltd. and 0.2 million Won for KUM HWA Co., Ltd. and cumulated amount is 1,462 million Won for Force TEC Co., Ltd. 3,743 million Won for Orient Shipyard Co., Ltd. and 2 million Won for KUM HWA Co., Ltd.  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Acquisition<br>cost | January 1,<br>2021 | Share of<br>profits(losses)<br>and others | Acquisition | Disposal/<br>Reclassification | Dividends | Change in<br>capital | December 31,<br>2021 |
|  W Service Networks Co., Ltd. | 108 | 191 | (4) |  |  | (4) |  | 183 |
|  Korea Credit Bureau Co., Ltd. | 3313 | 8125 | 1388 |  |  | (90) |  | 9423 |
|  Korea Finance Security Co., Ltd. | 3267 | 3066 | 35 |  |  |  |  | 3101 |
|  Woori Growth Partnerships New Technology Private Equity Fund | 14991 | 15032 | (637) |  | (1947) |  |  | 12448 |
|  2016KIF-IMM Woori Bank Technology Venture Fund | 8396 | 13238 | 3520 |  | (3497) | (631) |  | 12630 |
|  K BANK Co., Ltd. (\*1) | 236232 | 174097 | 67553 |  |  |  | (2157) | 239493 |
|  Smart Private Equity Fund No.2 |  | 1481 | (797) |  | (684) |  |  |  |
|  Woori Bank-Company K Korea Movie Asset Fund |  | 2788 | 137 |  | (2100) | (480) |  | 345 |
|  Partner One Value Up I Private Equity Fund | 5039 | 9816 | 2521 |  | (4961) | (800) |  | 6576 |
|  IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | 9736 | 9756 | 1417 | 5040 | (5060) |  |  | 11153 |
|  Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | 4255 | 4129 |  | 125 |  |  |  | 4254 |
|  LOTTE CARD Co.,Ltd. | 346810 | 422832 | 39301 |  |  | (10374) | 6536 | 458295 |
|  Together-Korea Government Private Pool Private Securities Investment Trust No. 3 | 10000 | 10023 | 47 |  |  |  |  | 10070 |
|  Genesis Environmental Energy Company 1st Private Equity Fund | 3738 | 3979 | 147 |  |  |  |  | 4126 |
|  Union Technology Finance Investment Association | 12750 | 4485 | (347) | 8250 |  |  |  | 12388 |
|  Dicustody Co., Ltd. | 1 |  |  | 1 |  |  |  | 1 |
|  Japanese Hotel Real Estate Private Equity Fund No.2 | 3291 | 3234 | 237 |  |  | (201) | (74) | 3196 |
|  Woori G Clean Energy No.1 |  | 1024 |  | 1462 | (2338) | (148) |  |  |
|  Woori Goseong Power EBL Private Special Asset Fund |  | 15118 | 227 |  | (15118) | (370) | 143 |  |
|  Woori Seoul Beltway Private Special Asset Fund No.1 | 7513 | 5613 | 124 | 1935 |  | (121) |  | 7551 |
|  Woori Corporate Private Securities Fund 1 (Bond) |  |  |  | 10000 | (10000) |  |  |  |
|  Woori G Star Private Placement Investment Trust No.33 [FI] |  |  |  | 20000 | (20000) |  |  |  |
|  Woori Multi-Return Securities Investment Trust 3 (Balanced Bond) | 10000 |  | 23 | 10000 |  |  |  | 10023 |
|  Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F | &nbsp;&nbsp;&nbsp;&nbsp;150000 |  | 1822 | 150000 |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;151822 |
|  WOORI TAERIM 1st Fund | 1100 | 283 | 708 |  |  |  |  | 991 |
|  Portone-Cape Fund No.1 | 340 | 960 | 189 |  | (660) |  |  | 489 |
|  KIWOOM WOORI Financial 1st Investment Fund | 1000 | 994 | (21) |  |  |  |  | 973 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Acquisition<br>cost | January 1,<br>2021 | Share of<br>profits(losses)<br>and others | Acquisition | Disposal/<br>Reclassification | Dividends | Change in<br>capital | December 31,<br>2021 |
|  DeepDive WOORI 2021-1 Financial Investment Fund | 1000 |  | (7) | 1000 |  |  |  | 993 |
|  Darwin Green Packaging Private Equity Fund | 4000 |  | (43) | 4000 |  |  |  | 3957 |
|  Woori FirstValue Private Real Estate Fund No.2 | 9000 | 2130 | (637) |  |  | (730) |  | 763 |
|  WooriG Real Infrastructure Blind General Type Private Placement Investment Trust | 100 |  |  | 100 |  |  |  | 100 |
|  Woori High plus G.B. Securities Feeder Fund1(G.B.) |  | 6076 |  |  | (6076) |  |  |  |
|  Woori Star50 Master Fund ClassC-F |  | 184 | (4) |  | (180) |  |  |  |
|  Woori Hanhwa Eureka Private Equity Fund | 164 | 403 | 138 |  | (214) |  |  | 327 |
|  Aarden Woori Apparel 1st Private Equity Fund | 100 |  | (1) | 100 |  |  |  | 99 |
|  Godo Kaisha Oceanos 1 | 10800 | 10193 | 127 |  |  | (370) | (45) | 9905 |
|  Woori Zip 1 | 10143 |  | (26) | 16380 | (6237) |  | 379 | 10496 |
|  Woori Zip 2 | 14254 |  | (50) | 22883 | (8628) |  | 527 | 14732 |
|  Force TEC Co., Ltd. (\*2) |  | 393 | (393) |  |  |  |  |  |
|  KUM HWA Co., Ltd. (\*2) |  |  |  |  |  |  |  |  |
|  Jinmyung Plus Co., Ltd. |  |  |  |  |  |  |  |  |
|  JC Assurance No.2 Private Equity Fund | 29349 | 29050 | (11621) | 299 |  |  |  | 17728 |
|  Dream Company Growth no.1 PEF | 7706 | 7705 | 680 |  |  | (471) |  | 7914 |
|  HMS-Oriens 1st Fund | 12000 | 12000 | 7 |  |  |  |  | 12007 |
|  WooriG Senior Loan General Type Private Investment Trust No.1 | 87382 | 52045 | 2959 | 38757 | (3060) | (2672) |  | 88029 |
|  Genesis Eco No.1 Private Equity Fund | 11805 |  | (685) | 11805 |  |  |  | 11120 |
|  Paratus Woori Material Component Equipment joint venture company | 17700 |  | (207) | 17700 |  |  |  | 17493 |
|  Midas No. 8 Private Equity Joint Venture Company | 19000 |  | (32) | 19000 |  |  |  | 18968 |
|  PCC-Woori LP Secondary Fund | 10100 | 8128 | 1697 | 2525 |  |  |  | 12350 |
|  Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 | 70988 | 93474 | 921 | 20765 | (38870) | (2503) |  | 73787 |
|  Woori-Q Corporate Restructuring Private Equity Fund | 45394 | 22904 | 1002 | 25246 | (2997) |  |  | 46155 |
|  Woori-Shinyoung Growth-Cap Private Equity Fund I | 17218 | 38342 | 20813 | 12799 | (32415) | (10826) |  | 28713 |
|  | 1210083 | 993291 | 132228 | 400172 | (165042) | (30791) | 5309 | 1335167 |

---

---

| | |
|:---|:---|
| (\*1) | Included 70,120 million won of deemed gain on disposal in accordance with the decrease in percentage of ownership from disproportionate contribution for the year ended December 31, 2021.  |

---

---

| | |
|:---|:---|
| (\*2) | As a result of discontinuation of the equity method, related companies' losses amount not recognized is 797 million Won for Force TEC Co., Ltd. and 2 million won for KUM HWA Co., Ltd.  |

---

------

##### [**Table of Contents**](#toc)
(3) Summary financial information relating to investments in associates accounted for using the equity method of
accounting is as follows (Unit: Korean Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Assets | Liabilities | Operating<br>revenue | Net<br>income<br>(loss) | Other<br> comprehensive <br>income(loss) | Total<br>comprehensive<br>income(loss) |
|  W Service Networks Co., Ltd. | 7052 | 2825 | 19697 | 1215 |  | 1215 |
|  Korea Credit Bureau Co., Ltd. | 155165 | 100065 | 144907 | 13809 |  | 13809 |
|  Korea Finance Security Co., Ltd. | 28792 | 12964 | 47043 | (3856) |  | (3856) |
|  Woori Growth Partnerships New Technology Private Equity Fund | 47394 | 208 | 2978 | 2185 |  | 2185 |
|  2016KIF-IMM Woori Bank Technology Venture Fund | 47979 | 609 | 665 | (7839) |  | (7839) |
|  K BANK Co., Ltd. | 16694289 | 14896426 | 491880 | 91059 | (32156) | 58903 |
|  Woori Bank-Company K Korea Movie Asset Fund (\*1) | 989 | 33 | 462 | 324 |  | 324 |
|  Partner One Value Up I Private Equity Fund | 18395 |  | (9431) | (9831) |  | (9831) |
|  IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | 51804 | 385 | 8092 | 7288 |  | 7288 |
|  Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | 15811 | 95 | 1 | (383) |  | (383) |
|  LOTTE CARD Co., Ltd. (\*2) | 19983059 | 17179093 | 1925577 | 268096 | 43162 | 311258 |
|  Together-Korea Government Private Pool Private Securities Investment Trust No. 3 | 10246 | 1 | 218 | 170 |  | 170 |
|  Union Technology Finance Investment Association | 48991 | 299 | 2300 | 632 |  | 632 |
|  Dicustody Co., Ltd. | 95 |  |  | (3) |  | (3) |
|  Orient Shipyard Co., Ltd. | 10832 | 27225 |  | (16467) |  | (16467) |
|  BTS 2nd Private Equity Fund | 15012 | 608 | 1 | (725) |  | (725) |
|  STASSETS FUND III | 4660 | 313 | 37 | (953) |  | (953) |
|  Japanese Hotel Real Estate Private Equity Fund 2 | 14387 | 13 | 1050 | 968 | (1186) | (218) |
|  Woori Seoul Beltway Private Special Asset Fund No.1 | 39497 | 2 | 1028 | 984 |  | 984 |
|  Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F | 468357 | 67022 | 14189 | 11804 |  | 11804 |
|  Woori Safe Plus General Type Private Investment Trust S-8(Bond) | 115781 | 4508 | 1899 | 1763 |  | 1763 |
|  WOORI TAERIM 1st Fund | 4047 | 185 |  | (13) |  | (13) |
|  Portone-Cape Fund No.1 | 2344 | 26 |  | (129) |  | (129) |
|  KIWOOM WOORI Financial 1st Investment Fund | 10597 | 111 | 1 | (222) |  | (222) |
|  DeepDive WOORI 2021-1 Financial Investment Fund | 7412 | 37 | 57 | (103) |  | (103) |
|  Darwin Green Packaging Private Equity Fund | 19332 |  | 2215 | 1904 |  | 1904 |
|  DS Power Semicon Private Equity Fund | 14230 | 44 | 1185 | 937 |  | 937 |
|  Koreawide partners 2nd Private Equity Fund | 77039 | 2038 | 3020 | 1 |  | 1 |
|  Woori FirstValue Private Real Estate Fund No.2 | 67005 | 62357 | 3 | (54) |  | (54) |
|  WooriG Real Infrastructure Blind General Type Private Placement Investment Trust | 73064 | 56 | 3140 | 2874 |  | 2874 |
|  Woori BIG2 Plus Securities Investment Trust(Balanced Bond) | 4667 | 12 | 389 | (636) |  | (636) |
|  Woori Together TDF 2025 | 8513 | 16 | 1287 | (1018) |  | (1018) |
|  Woori Together TDF 2030 | 8615 |  | 1352 | (1108) |  | (1108) |
|  WOORI Star50 feeder fund(H) | 709 |  | 48 | (480) |  | (480) |
|  Aarden Woori Apparel 1st Private Equity Fund | 20750 | 89 | 8 | (325) |  | (325) |
|  Woori Dyno 1st Private Equity Fund | 10212 | 43 | 200 | (31) |  | (31) |
|  Australia Green Energy 1st PEF | 122634 | 14 | 30 | (1380) |  | (1380) |
|  Godo Kaisha Oceanos 1 | 63741 | 45358 | 2942 | 176 |  | 176 |
|  Woori Zip 1 | 48309 | 34346 | 2085 | (215) |  | (215) |
|  Woori Zip 2 | 68388 | 48927 | 3069 | (198) |  | (198) |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Assets | Liabilities | Operating<br>revenue | Net<br>income<br>(loss) | Other<br> comprehensive <br>income(loss) | Total<br>comprehensive<br>income(loss) |
|  Force TEC Co., Ltd. | 10489 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24804 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25182 | (2664) |  | (2664) |
|  KUM HWA Co., Ltd. | 4 | 159 |  | (8) |  | (8) |
|  Jinmyung Plus Co.,Ltd. | 696 | 649 | 177 | (9) |  | (9) |
|  JC Assurance No.2 Private Equity Fund | 122015 | 3 |  | (929) |  | (929) |
|  Dream Company Growth no.1 PEF | 28351 | 50 | 1695 | 1506 |  | 1506 |
|  HMS-Oriens 1st Fund | 58095 | 6 | 3829 | 3279 |  | 3279 |
|  Woori G Senior Loan Private Placement Investment Trust No.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;378145 | 23 | 18584 | &nbsp;&nbsp;&nbsp;&nbsp;17496 |  | 17496 |
|  Genesis Eco No.1 Private Equity Fund | 38700 | 5 | 48 | (593) |  | (593) |
|  Paratus Woori Material Component Equipment joint venture company | 58311 | 617 | 7 | (812) |  | (812) |
|  Midas No. 8 Private Equity Joint Venture Company | 65936 | 242 | 1928 | 977 |  | 977 |
|  Orchestra Private Equity Fund IV | 34427 |  | 1580 | 878 |  | 878 |
|  Synaptic Green No.1 PEF | 37017 |  | 4 | (983) |  | (983) |
|  IGEN2022No. 1 Private Equity Fund | 32362 | 122 | 3166 | 2616 |  | 2616 |
|  PCC-Woori LP Secondary Fund | 33591 | 168 | 6127 | 1152 |  | 1152 |
|  Woori-Q Corporate Restructuring Private Equity Fund | 75973 | 418 | 3019 | (4696) |  | (4696) |
|  Woori-Shinyoung Growth-Cap Private Equity Fund I | 123824 | 312 | 41780 | 40544 |  | &nbsp;&nbsp;&nbsp;&nbsp;40544 |

---

(\*1) It was dissoluted for the year ended December 31, 2021 and will be liquidated.

---

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

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Assets | Liabilities | Operating<br>revenue | Net<br>income<br>(loss) | Other<br> comprehensive <br>income(loss) | Total<br>comprehensive<br>income(loss) |
|  W Service Networks Co., Ltd. | 6208 | 2504 | 17019 | 840 |  | 840 |
|  Korea Credit Bureau Co., Ltd. | 113859 | 21284 | 127751 | 20486 |  | 20486 |
|  Korea Finance Security Co., Ltd. | 34957 | 14286 | 57462 | 249 |  | 249 |
|  Woori Growth Partnerships New Technology Private Equity Fund | 54173 | 231 | 3807 | (2228) |  | (2228) |
|  2016KIF-IMM Woori Bank Technology Venture Fund | 63983 | 837 | 23010 | 21119 |  | 21119 |
|  K BANK Co., Ltd. | 14021789 | 12291131 | 250502 | 19348 | (32072) | (12724) |
|  Woori Bank-Company K Korea Movie Asset Fund | 1383 | 2 | 1075 | 543 |  | 543 |
|  Partner One Value Up I Private Equity Fund | 28273 |  | 11972 | 10914 |  | 10914 |
|  IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | 56363 | 597 | 11422 | 10077 |  | 10077 |
|  Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | 15799 | 5 |  | (332) |  | (332) |
|  LOTTE CARD Co.,Ltd (\*) | 15980312 | 13460156 | 1499867 | 184919 | 25612 | 210531 |
|  Together-Korea Government Private Pool Private Securities Investment Trust No. 3 | 10073 | 1 | 41 | 37 |  | 37 |
|  Genesis Environmental Energy Company 1st Private Equity Fund | 20610 | 3941 | 11347 | 694 |  | 694 |
|  Union Technology Finance Investment Association | 41996 | 290 | 13 | (1168) |  | (1168) |
|  Dicustody Co., Ltd. | 98 |  |  | (2) |  | (2) |
|  Japanese Hotel Real Estate Private Equity Fund 2 | 16104 | 14 | 911 | 1196 | (373) | 823 |
|  Woori Seoul Beltway Private Special Asset Fund No.1 | 30206 | 1 | 536 | 500 |  | 500 |
|  Woori Multi-Return Securities Investment Trust 3 (Balanced Bond) | 101644 | 51530 | 5 | 2 |  | 2 |
|  Woori Short-term Bond Securities Investment Trust(Bond)<br>ClassC-F | 1209228 | 158524 | 89 | 79 |  | 79 |
|  WOORI TAERIM 1st Fund | 4047 | 172 |  | 2770 |  | 2770 |
|  Portone-Cape Fund No.1 | 2447 |  | 1050 | 947 |  | 947 |
|  KIWOOM WOORI Financial 1st Investment Fund | 10818 | 111 | 1 | (221) |  | (221) |
|  DeepDive WOORI 2021-1 Financial Investment Fund | 8340 |  |  | (60) |  | (60) |
|  Darwin Green Packaging Private Equity Fund | 19387 |  |  | (213) |  | (213) |
|  Woori FirstValue Private Real Estate Fund No.2 | 69672 | 63309 |  | (5303) |  | (5303) |
|  WooriG Real Infrastructure Blind General Type Private Placement Investment Trust | 35796 | 1 | (34) | (35) |  | (35) |
|  Woori Hanhwa Eureka Private Equity Fund | 40817 | 133 | 20193 | 19821 |  | 19821 |
|  Aarden Woori Apparel 1st Private Equity Fund | 21075 | 89 |  | (214) |  | (214) |
|  Godo Kaisha Oceanos 1 | 66087 | 45367 | 3141 | 267 |  | 267 |
|  Woori Zip 1 | 52259 | 35833 | 1106 | (26) |  | (26) |
|  Woori Zip 2 | 74033 | 50951 | 1536 | (50) |  | (50) |
|  Force TEC Co., Ltd. | 11904 | 23508 | 20941 | (9188) |  | (9188) |
|  KUM HWA Co., Ltd. | 20 | 176 | 58 | (10) |  | (10) |
|  Jinmyung Plus Co.,Ltd. | 568 | 445 | 209 | 5 |  | 5 |
|  JC Assurance No.2 Private Equity Fund | 118397 |  |  | (1040) |  | (1040) |
|  Dream Company Growth no.1 PEF | 28533 | 44 |  | 1500 |  | 1500 |
|  HMS-Oriens 1st Fund | 52659 | 28 | 2750 | 2179 |  | 2179 |
|  Woori G Senior Loan Private Placement Investment Trust No.1 | 406634 | 25 | 14553 | 13669 |  | 13669 |
|  Genesis Eco No.1 Private Equity Fund | 38369 | 4 | 308 | (377) |  | (377) |
|  Paratus Woori Material Component Equipment joint venture company | 58507 |  | 7 | (693) |  | (693) |
|  Midas No. 8 Private Equity Joint Venture Company | 66699 | 112 | 1 | (113) |  | (113) |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Assets | Liabilities | Operating<br>revenue | Net<br>income<br>(loss) | Other<br> comprehensive <br>income(loss) | Total<br>comprehensive<br>income(loss) |
|  PCC-Woori LP Secondary Fund | 31585 |  | 5720 | 4162 |  | 4162 |
|  Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;257891 |  | 3239 | 3239 |  | 3239 |
|  Woori-Q Corporate Restructuring Private Equity Fund | 121057 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;555 | 327 | (1547) |  | (1547) |
|  Woori-Shinyoung Growth-Cap Private Equity Fund I | 82087 | 314 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83143 | &nbsp;&nbsp;&nbsp;&nbsp;81550 |  | &nbsp;&nbsp;&nbsp;&nbsp;81550 |

---

---

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

---

------

##### [**Table of Contents**](#toc)
(4) The entities that the Group has not applied equity method of accounting although the Group's ownership
interest is more than 20% as of December 31, 2022 and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 |
| Associate (\*) | Number of shares owned | Ownership (%) |
|  CL Tech Co., Ltd. | 10191 | 28.6 |

---

---

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

---

---

| | | |
|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 |
| Associate (\*) | Number of shares owned | Ownership (%) |
|  Orient Shipyard Co., Ltd. | 464812 | 21.4 |
|  Yuil PESC Co., Ltd. | 8642 | 24.0 |
|  CL Tech Co., Ltd. | 13759 | 38.6 |
|  S.WIN Co., Ltd. | 20301 | 20.0 |

---

---

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

---

------

##### [**Table of Contents**](#toc)
(5) As of December 31, 2022 and 2021, the reconciliations from the net assets of the associates to the
carrying amount of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won in millions except for ownership):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Total net<br>asset | Ownership<br>(%) | Ownership<br>portion of net<br>assets | Basis<br>difference | Impairment | Intercompany<br>transaction | Book<br>value |
|  W Service Networks Co., Ltd. | 4227 | 4.9 | 209 |  |  | (1) | 208 |
|  Korea Credit Bureau Co., Ltd. | 55100 | 9.9 | 5462 | 246 |  | 1 | 5709 |
|  Korea Finance Security Co., Ltd. | 15828 | 15 | 2374 |  |  |  | 2374 |
|  Woori Growth Partnerships New Technology Private Equity Fund | 47185 | 23.1 | 10889 |  |  |  | 10889 |
|  2016KIF-IMM Woori Bank Technology Venture Fund | 47370 | 20 | 9474 |  |  |  | 9474 |
|  K BANK Co., Ltd. (\*) | 1796269 | 12.6 | 225894 | 21894 |  | 1 | 247789 |
|  Woori Bank-Company K Korea Movie Asset Fund | 957 | 25 | 239 |  |  |  | 239 |
|  Partner One Value Up Ist Private Equity Fund | 18395 | 23.3 | 4278 |  |  |  | 4278 |
|  IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | 51419 | 20 | 10284 |  |  | 1 | 10285 |
|  Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | 15716 | 25 | 3929 |  |  | 426 | 4355 |
|  LOTTE CARD Co., Ltd. (\*) | 2570656 | 20 | 514131 |  |  |  | 514131 |
|  Together-Korea Government Private Pool Private Securities Investment Trust No.3 | 10245 | 100 | 10244 |  |  | (1) | 10243 |
|  Union Technology Finance Investment Association | 48692 | 29.7 | 14463 |  |  | (1) | 14462 |
|  Dicustody Co., Ltd. | 95 | 1 | 1 |  |  |  | 1 |
|  Orient Shipyard Co., Ltd. | (16393) | 22.7 | (3721) |  |  | 3721 |  |
|  BTS 2nd Private Equity Fund | 14405 | 20 | 2881 |  |  |  | 2881 |
|  STASSETS FUND III | 4347 | 28.3 | 1230 |  |  |  | 1230 |
|  Japanese Hotel Real Estate Private Equity Fund No.2 | 14374 | 19.9 | 2855 |  |  |  | 2855 |
|  Woori Seoul Beltway Private Special Asset Fund No.1 | 39495 | 25 | 9874 |  |  |  | 9874 |
|  Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F | 401335 | 27.9 | 112025 |  |  |  | 112025 |
|  Woori Safe Plus General Type Private Investment Trust S-8(Bond) | 111273 | 9.2 | 10182 |  |  |  | 10182 |
|  WOORI TAERIM 1st Fund | 3862 | 25.6 | 988 |  |  |  | 988 |
|  Portone-Cape Fund No.1 | 2318 | 20 | 464 |  |  |  | 464 |
|  KIWOOM WOORI Financial 1st Investment Fund | 10486 | 9.1 | 953 |  |  |  | 953 |
|  DeepDive WOORI 2021-1 Financial Investment Fund | 7375 | 11.9 | 878 |  |  |  | 878 |
|  Darwin Green Packaging Private Equity Fund | 19332 | 20.4 | 3945 |  |  |  | 3945 |
|  DS Power Semicon Private Equity Fund | 14186 | 21 | 2976 |  |  |  | 2976 |
|  Koreawide partners 2nd Private Equity Fund | 75001 | 26.7 | 20000 |  |  |  | 20000 |
|  Woori FirstValue Private Real Estate Fund No.2 | 4648 | 12 | 558 |  |  |  | 558 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Total net<br>asset | Ownership<br>(%) | Ownership<br>portion of net<br>assets | Basis<br>difference | Impairment | Intercompany<br>transaction | Book<br>value |
|  Woori G Real Infrastructure Blind General Type Private Placement Investment Trust | 73008 | 0.1 | 102 |  |  |  | 102 |
|  Woori BIG2 Plus Securities Investment Trust(Balanced Bond) | 4655 | 23.1 | 1074 |  |  |  | 1074 |
|  Woori Together TDF 2025 | 8497 | 23.6 | 1990 |  |  |  | 1990 |
|  Woori Together TDF 2030 | 8615 | 23.8 | 2033 |  |  |  | 2033 |
|  WOORI Star50 feeder fund(H) | 709 | 17.9 | 126 |  |  |  | 126 |
|  Aarden Woori Apparel 1st Private Equity Fund | 20661 | 0.5 | 97 |  |  |  | 97 |
|  Woori Dyno 1st Private Equity Fund | 10169 | 19.6 | 1994 |  |  |  | 1994 |
|  Australia Green Energy 1st PEF | &nbsp;&nbsp;&nbsp;&nbsp;122620 | 4.0 | 4858 |  |  |  | 4858 |
|  Godo Kaisha Oceanos 1 | 18383 | 47.8 | 8788 |  |  |  | 8788 |
|  Woori Zip 1 | 13963 | &nbsp;&nbsp;&nbsp;&nbsp;64.0 | 8690 |  |  |  | 8690 |
|  Woori Zip 2 | 19461 | 64.0 | &nbsp;&nbsp;&nbsp;&nbsp;12180 |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;12180 |
|  Force TEC | (14315) | 24.5 | (3513) |  |  | 3513 |  |
|  KUM HWA Co., Ltd. | (155) | 20.1 | (31) |  |  | 31 |  |
|  Jinmyung Plus Co.,Ltd. | 47 | 21.3 | 10 |  |  |  | 10 |
|  JC Assurance No.2 Private Equity Fund | 122012 | 23.5 | 17728 |  | (17728) |  |  |
|  Dream Company Growth no.1 PEF | 28301 | 27.8 | 7861 |  |  |  | 7861 |
|  HMS-Oriens 1st Fund | 58089 | 22.8 | 13252 |  |  |  | 13252 |
|  Woori G Senior Loan General Type Private Investment Trust No.1 | 378122 | 21.7 | 81861 |  |  |  | 81861 |
|  Genesis Eco No.1 Private Equity Fund | 38695 | 29.0 | 11216 |  |  |  | 11216 |
|  Paratus Woori Material Component Equipment joint venture company | 57694 | 29.9 | 17250 |  |  |  | 17250 |
|  Midas No. 8 Private Equity Joint Venture Company | 65694 | 28.5 | 18713 |  |  |  | 18713 |
|  Orchestra Private Equity Fund IV | 34427 | 28.2 | 9698 |  |  |  | 9698 |
|  Synaptic Green No.1 PEF | 37017 | 21.1 | 7793 |  |  |  | 7793 |
|  IGEN2022No. 1 Private Equity Fund | 32240 | 24.8 | 8010 |  |  |  | 8010 |
|  PCC-Woori LP Secondary Fund | 33423 | 38.8 | 12984 |  |  |  | 12984 |
|  Woori-Q Corporate Restructuring Private Equity Fund | 75555 | 35.6 | 27536 |  |  |  | 27536 |
|  Woori-Shinyoung Growth-Cap Private Equity Fund I | 123512 | 35.0 | 43274 |  |  |  | 43274 |

---

---

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

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Total net<br>asset | Ownership<br>(%) | Ownership<br>portion of net<br>assets | Basis<br>difference | Impairment | Intercompany<br>transaction | Book<br>value |
|  W Service Networks Co., Ltd. | 3704 | 4.9 | 183 |  |  |  | 183 |
|  Korea Credit Bureau Co., Ltd. | 92575 | 9.9 | 9177 | 246 |  |  | 9423 |
|  Korea Finance Security Co., Ltd. | 20671 | 15 | 3101 |  |  |  | 3101 |
|  Woori Growth Partnerships New Technology Private Equity Fund | 53942 | 23.1 | 12448 |  |  |  | 12448 |
|  2016KIF-IMM Woori Bank Technology Venture Fund | 63146 | 20 | 12630 |  |  |  | 12630 |
|  K BANK Co., Ltd. (\*) | 1730307 | 12.6 | 217599 | 21894 |  |  | 239493 |
|  Woori Bank-Company K Korea Movie Asset Fund | 1381 | 25 | 345 |  |  |  | 345 |
|  Partner One Value Up Ist Private Equity Fund | 28273 | 23.3 | 6576 |  |  |  | 6576 |
|  IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | 55767 | 20 | 11153 |  |  |  | 11153 |
|  Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | 15794 | 25 | 3949 |  |  | 305 | 4254 |
|  LOTTE CARD Co., Ltd (\*1) | 2291474 | 20 | 458295 |  |  |  | 458295 |
|  Together-Korea Government Private Pool Private Securities Investment Trust No.3 | 10071 | 100 | 10070 |  |  |  | 10070 |
|  Genesis Environmental Energy Company 1st Private Equity Fund | 16669 | 24.8 | 4126 |  |  |  | 4126 |
|  Union Technology Finance Investment Association | 41706 | 29.7 | 12388 |  |  |  | 12388 |
|  Dicustody Co., Ltd. | 98 | 1 | 1 |  |  |  | 1 |
|  Japanese Hotel Real Estate Private Equity Fund No.2 | 16090 | 19.9 | 3196 |  |  |  | 3196 |
|  Woori Seoul Beltway Private Special Asset Fund No.1 | 30205 | &nbsp;&nbsp;&nbsp;&nbsp;25 | 7551 |  |  |  | 7551 |
|  Woori Multi Return Private Securities Investment Trust 3(Balanced Bond) | 50114 | 20 | 10023 |  |  |  | 10023 |
|  Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F | 1050704 | 14.5 | 151822 |  |  |  | 151822 |
|  WOORI TAERIM 1st Fund | 3875 | 25.6 | 991 |  |  |  | 991 |
|  Portone-Cape Fund No.1 | 2447 | 20 | 489 |  |  |  | 489 |
|  KIWOOM WOORI Financial 1st Investment Fund | 10707 | 9.1 | 973 |  |  |  | 973 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Total net<br>asset | Ownership<br>(%) | Ownership<br>portion of net<br>assets | Basis<br>difference | Impairment | Intercompany<br>transaction | Book<br>value |
|  DeepDive WOORI 2021-1 Financial Investment Fund | 8340 | 11.9 | 993 |  |  |  | 993 |
|  Darwin Green Packaging Private Equity Fund | 19387 | 20.4 | 3957 |  |  |  | 3957 |
|  Woori FirstValue Private Real Estate Fund No.2 | 6363 | 12.0 | 763 |  |  |  | 763 |
|  WooriG Real Infrastructure Blind General Type Private Placement Investment Trust | 35795 | 0.3 | 100 |  |  |  | 100 |
|  Woori Hanhwa Eureka Private Equity Fund | 40684 | 0.8 | 327 |  |  |  | 327 |
|  Aarden Woori Apparel 1st Private Equity Fund | 20986 | 0.5 | 99 |  |  |  | 99 |
|  Godo Kaisha Oceanos 1 | 20720 | 47.8 | 9905 |  |  |  | 9905 |
|  Woori Zip 1 | 16426 | 63.9 | &nbsp;&nbsp;&nbsp;&nbsp;10496 |  |  |  | 10496 |
|  Woori Zip 2 | 23082 | &nbsp;&nbsp;&nbsp;&nbsp;63.8 | 14732 |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;14732 |
|  Force TEC | (11604) | 24.5 | (2843) |  |  | 2843 |  |
|  KUM HWA Co., Ltd. | (156) | 20.1 | (31) |  |  | 31 |  |
|  Jinmyung Plus Co.,Ltd. | 123 | 21.3 | 25 |  |  | (25) |  |
|  JC Assurance No.2 Private Equity Fund | 118397 | 24.4 | 29349 |  | (11621) |  | 17728 |
|  Dream Company Growth no.1 PEF | 28489 | 27.8 | 7914 |  |  |  | 7914 |
|  HMS-Oriens 1st Fund | 52631 | 22.8 | 12007 |  |  |  | 12007 |
|  WooriG Senior Loan General Type Private Investment Trust No.1 | &nbsp;&nbsp;&nbsp;&nbsp;406609 | 21.7 | 88029 |  |  |  | 88029 |
|  Genesis Eco No.1 Private Equity Fund | 38365 | 29.0 | 11120 |  |  |  | 11120 |
|  Paratus Woori Material Component Equipment joint venture company | 58507 | 29.9 | 17493 |  |  |  | 17493 |
|  Midas No. 8 Private Equity Joint Venture Company | 66587 | 28.5 | 18968 |  |  |  | 18968 |
|  PCC-Woori LP Secondary Fund | 31585 | 38.8 | 12350 |  |  |  | 12350 |
|  Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 | 257891 | 27.5 | 73787 |  |  |  | 73787 |
|  Woori-Q Corporate Restructuring Private Equity Fund | 120502 | 38.1 | 46155 |  |  |  | 46155 |
|  Woori-Shinyoung Growth-Cap Private Equity Fund I | 81773 | 35.0 | 28713 |  |  |  | 28713 |

---

---

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

---

------

##### [**Table of Contents**](#toc)
**14.** **INVESTMENT PROPERTIES** 

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Acquisition cost | 418775 | 415163 |
|  Accumulated depreciation | (30982) | (25582) |
|  Accumulated impairment losses | (86) | (86) |
|  Net carrying value | 387707 | 389495 |

---

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

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Beginning balance | 389495 | 387464 |
|  Disposal | (1206) |  |
|  Depreciation | (3925) | (2809) |
|  Transfer | 7153 | 6095 |
|  Foreign currencies translation adjustments | (3810) | (1255) |
|  Ending balance | 387707 | 389495 |

---

(3) Fair value of investment properties amounted to 647,072 million won and 665,710 million won as of
December 31, 2022 and 2021, respectively. The fair value of investment properties has been assessed on the basis of recent similar real estate market price and officially assessed land price in the area of the investment properties, is
classified as level 3 on the fair value hierarchy.

(4) Rental fee earned from investment properties is amounting to 22,798 million won and 15,056 million
won for the years ended December 31, 2022 and 2021, respectively. Operating expenses directly related to the investment properties where rental fee was earned is amounting to 4,093 million won and 2,941 million won.

(5) The lease payments expected to be received in the future under lease contracts relating to investment
properties as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Lease payments: |  |  |
|  Within a year | 12368 | 13769 |
|  More than 1 year and within 2 years | 8481 | 10770 |
|  More than 2 years and within 3 years | 5320 | 7743 |
|  More than 3 years and within 4 years | 3201 | 5009 |
|  More than 4 years and within 5 years | 2634 | 2953 |
|  More than 5 years | 2568 | 2603 |
|  Total | 34572 | 42847 |

---

------

##### [**Table of Contents**](#toc)
**15.** **PREMISES AND EQUIPMENT** 

(1) Details of premises and equipment as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in
millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Land | Building | Equipment<br>and vehicles | Leasehold<br>improvement | Construction<br>in progress | &nbsp;&nbsp;&nbsp;&nbsp;Structures | Total |
|  Premises and equipment (owned) | 1695357 | 730676 | 261278 | 58352 | 32184 |  | 2777847 |
|  Right-of-use asset |  | 349494 | 15589 |  |  |  | 365083 |
|  Carrying value | 1695357 | 1080170 | 276867 | 58352 | 32184 |  | 3142930 |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Land | Building | Equipment<br>and vehicles | Leasehold<br>improvement | Construction<br>in progress | Structures | Total |
|  Premises and equipment (owned) | 1719325 | 756964 | 258361 | 51354 | 3171 | 1 | 2789176 |
|  Right-of-use asset |  | 367480 | 18064 |  |  |  | 385544 |
|  Carrying value | 1719325 | 1124444 | &nbsp;&nbsp;&nbsp;&nbsp;276425 | &nbsp;&nbsp;&nbsp;&nbsp;51354 | &nbsp;&nbsp;&nbsp;&nbsp;3171 | &nbsp;&nbsp;&nbsp;&nbsp;1 | 3174720 |
| (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): | (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): | (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): | (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): | (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): | (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): | (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): | (2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions): |
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Land | Building | Equipment<br>and vehicles | Leasehold<br>improvement | Construction<br>in progress | &nbsp;&nbsp;&nbsp;&nbsp;Structures | Total |
|  Acquisition cost | 1696017 | 1078385 | 1179928 | 470513 | 32184 | 20 | 4457047 |
|  Accumulated depreciation |  | (347709) | (918650) | (412161) |  | (20) | (1678540) |
|  Accumulated impairment losses | (660) |  |  |  |  |  | (660) |
|  Net carrying value | 1695357 | 730676 | 261278 | 58352 | 32184 |  | 2777847 |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Land | Building | Equipment<br>and vehicles | Leasehold<br>improvement | Construction<br>in progress | Structures | Total |
|  Acquisition cost | 1719985 | 1076091 | 1156479 | 475195 | 3171 | 20 | 4430941 |
|  Accumulated depreciation |  | (319127) | (898118) | (423841) |  | (19) | (1641105) |
|  Accumulated impairment losses | (660) |  |  |  |  |  | (660) |
|  Net carrying value | 1719325 | 756964 | 258361 | 51354 | 3171 | 1 | 2789176 |

---

------

##### [**Table of Contents**](#toc)
(3) Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Land | Building | Equipment<br>and vehicles | Leasehold<br>improvement | Construction<br>in progress | Structures | Total |
|  Beginning balance | 1719325 | 756964 | 258361 | 51354 | 3171 | 1 | 2789176 |
|  Acquisitions | 24 | 14524 | 98620 | 28178 | 31810 |  | 173156 |
|  Disposals | (20024) | (788) | (1003) | (656) |  |  | (22471) |
|  Depreciation |  | (32290) | (97600) | (21185) |  | (1) | (151076) |
|  Classification of assets held for sale | (6405) | (6704) |  |  |  |  | (13109) |
|  Transfer | (3040) | (4113) |  |  |  |  | (7153) |
|  Foreign currencies translation adjustments | (855) | (428) | 392 | 549 | 225 |  | (117) |
|  Business combination | 5917 | 3523 | 2586 |  |  |  | 12026 |
|  Others | 415 | (12) | (78) | 112 | (3022) |  | (2585) |
|  Ending balance | 1695357 | 730676 | 261278 | 58352 | 32184 |  | 2777847 |
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Land | Building | Equipment<br>and vehicles | Leasehold<br>improvement | Construction<br>in progress | Structures | Total |
|  Beginning balance | 1726045 | 787040 | 268225 | 50085 | 8246 | 2 | 2839643 |
|  Acquisitions |  | 15750 | 68069 | 23347 | 11637 |  | 118803 |
|  Disposals |  | (1994) | (1663) | (979) |  |  | (4636) |
|  Depreciation |  | (33523) | (93921) | (22293) |  | (1) | (149738) |
|  Classification of assets held for sale | (7157) | (5695) |  |  |  |  | (12852) |
|  Transfer | (3649) | (2446) | 15399 |  | (15399) |  | (6095) |
|  Foreign currencies translation adjustments | 991 | 712 | 2868 | 1580 | 153 |  | 6304 |
|  Others | 3095 | (2880) | (616) | (386) | (1466) |  | (2253) |
|  Ending balance | 1719325 | 756964 | 258361 | 51354 | 3171 | 1 | 2789176 |

---

(4) Details of right-of-use assets
as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Building | Equipment and vehicles | Total |
|  Acquisition cost | 643484 | 32700 | 676184 |
|  Accumulated depreciation | (293990) | (17111) | (311101) |
|  Net carrying value | 349494 | 15589 | 365083 |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Building | Equipment and vehicles | Total |
|  Acquisition cost | 650906 | 30559 | 681465 |
|  Accumulated depreciation | (283426) | (12495) | (295921) |
|  Net carrying value | 367480 | 18064 | 385544 |

---

------

##### [**Table of Contents**](#toc)
(5) Details of changes in right-of-use assets for the years ended December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Building | Equipment and vehicles | Total |
|  Beginning balance | 367480 | 18064 | 385544 |
|  New contracts | 225396 | 9819 | 235215 |
|  Changes in contract | 3514 | (26) | 3488 |
|  Termination | (43597) | (870) | (44467) |
|  Depreciation | (211175) | (11406) | (222581) |
|  Business combination | 819 |  | 819 |
|  Others | 7057 | 8 | 7065 |
|  Ending balance | 349494 | 15589 | 365083 |
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Building | Equipment and vehicles | Total |
|  Beginning balance | 435132 | 12423 | 447555 |
|  New contracts | 172812 | 16848 | 189660 |
|  Changes in contract | 9064 | 225 | 9289 |
|  Termination | (46563) | (1742) | (48305) |
|  Depreciation | (228403) | (10665) | (239068) |
|  Business combination |  |  |  |
|  Others | 25438 | 975 | 26413 |
|  Ending balance | 367480 | 18064 | 385544 |

---

**16.** **INTANGIBLE ASSETS** 

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Goodwill | Industrial<br>property rights | Development<br>cost | Other<br>intangible<br>assets | Membership<br>deposit | Construction<br>in progress | Total |
|  Acquisition cost | 397527 | 2219 | 754031 | 1244516 | 46231 | 3027 | 2447551 |
|  Accumulated amortization |  | (1576) | (541404) | (1018591) |  |  | (1561571) |
|  Accumulated impairment losses |  |  |  | (33552) | (3314) |  | (36866) |
|  Net carrying value | 397527 | 643 | 212627 | 192373 | 42917 | 3027 | 849114 |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Goodwill | Industrial<br>property rights | Development<br>cost | Other<br>intangible<br>assets | Membership<br>deposit | Construction<br>in progress | Total |
|  Acquisition cost | 345449 | 2057 | 661959 | 1174565 | 40955 | 717 | 2225702 |
|  Accumulated amortization |  | (1334) | (454251) | (947830) |  |  | (1403415) |
|  Accumulated impairment losses |  |  |  | (33553) | (3348) |  | (36901) |
|  Net carrying value | 345449 | 723 | 207708 | 193182 | 37607 | 717 | 785386 |

---

------

##### [**Table of Contents**](#toc)
(2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Goodwill | Industrial<br>property rights | Development<br>cost | Other<br>intangible<br>assets | Membership<br>deposit | Construction<br>in progress | Total |
|  Beginning balance | 345449 | 723 | 207708 | 193182 | 37607 | 717 | 785386 |
|  Acquisitions |  | 162 | 91992 | 62073 | 6571 | 2421 | 163219 |
|  Disposal |  |  |  | (2) | (1295) |  | (1297) |
|  Amortization (\*) |  | (242) | (87294) | (75299) |  |  | (162835) |
|  Impairment losses |  |  |  |  | 88 |  | 88 |
|  Transfer |  |  | 300 | 182 |  | (482) |  |
|  Business combination | 57670 |  |  | 7795 |  |  | 65465 |
|  Foreign currencies translation adjustments | (5592) |  | (5) | (865) | (42) | (53) | (6557) |
|  Others |  |  | (74) | 5307 | (12) | 424 | 5645 |
|  Ending balance | 397527 | 643 | 212627 | 192373 | 42917 | 3027 | 849114 |

---

(\*) Amortization of other intangible assets amounting to 14,664 million won is included in other operating expenses.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Goodwill | Industrial<br>property rights | Development<br>cost | Other<br>intangible<br>assets | Membership<br>deposit | Construction<br>in progress | Total |
|  Beginning balance | 334290 | 709 | 208873 | 205445 | 36091 | 6669 | 792077 |
|  Acquisitions |  | 247 | 74444 | 49137 | 2437 | 977 | 127242 |
|  Disposal |  |  |  |  | (347) |  | (347) |
|  Amortization (\*) |  | (233) | (80128) | (68950) |  |  | (149311) |
|  Impairment losses |  |  |  | (18) | (93) |  | (111) |
|  Transfer |  |  | 4518 | 2946 |  | (7464) |  |
|  Foreign currencies translation adjustments | 11159 |  |  | 2952 | 232 |  | 14343 |
|  Others |  |  | 1 | 1670 | (713) | 535 | 1493 |
|  Ending balance | 345449 | 723 | 207708 | 193182 | 37607 | 717 | 785386 |

---

---

| | |
|:---|:---|
| (\*) | Amortization of other intangible assets amounting to 13,963 million won is included in other operating expenses.  |

---

(3) Goodwill

1) Details of allocated goodwill based on each cash-generating unit as of December 31, 2022 and 2021 are as follows (Unit: Korean won in million):

---

| | | |
|:---|:---|:---|
| Cash-generating unit (\*1) | December 31, 2022 | December 31, 2021 |
|  Woori Asset Management Corp. | 43036 | 43036 |
|  Woori Global Asset Management Co., Ltd. | 2030 | 2030 |
|  Woori Asset Trust Co., Ltd. | 141780 | 141780 |
|  PT Bank Woori Saudara Indonesia 1906 Tbk (\*2) | 97029 | 99667 |
|  WOORI BANK (CAMBODIA) PLC (\*3) | 55570 | 52082 |
|  PT Woori Finance Indonesia Tbk. | 51382 |  |
|  Others | 6700 | 6854 |
|  Total | 397527 | 345449 |

---

(\*1) Allocated to the cash-generating unit that will benefit from the synergy effect of the business combination, and the cash-generating unit is generally comprised of the operating segment or sub-sectors.

(\*2) The Group has acquired Saudara Bank to expand retail sales in Indonesia, and recognized the goodwill as it is expected to strengthen the competitiveness by securing a local sales network in Indonesia.

(\*3) The Group has acquired VisionFund Cambodia to expand Cambodian retail sales, and recognized goodwill based on the economies of scale and acquired customer base.

------

##### [**Table of Contents**](#toc)
2) Impairment test

The recoverable amount of the cash-generating unit is measured at larger amount among the fair value less costs to sell or the value to use.

The net fair value is calculated by deducting costs of disposal from the amount received from the sale of the cash-generating unit in an arm's length transaction between the parties with reasonable judgment and willingness to negotiate. In case of difficulty in measuring this amount, the sale amount of a similar cash-generating unit in the past market is calculated by reflecting the characteristics of the cash-generating unit. If reliable information related to fair value less costs to sell is not available, value in use is considered as recoverable amount. Value in use is the present value of future cash flows expected to be generated by the cash-generating unit. Future cash flows are estimated based on the latest financial budget approved by the management, with an estimated period of up to five years. The Group applied 0.0% - 1.0% growth rate to estimate future cash flow for the period over five years. The main assumptions used to estimate cash flows are about the size of the market and the share of the group. The appropriate discount rate for discounting future cash flows is the pre-tax discount rate, including assumptions about risk-free interest rates, market risk premium, and systemic risk of cash-generating units. The impairment test, which compares the carrying amount and recoverable amount of the cash-generating unit to which goodwill has been allocated, is conducted every year and every time an impairment sign occurs.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Category | Woori Asset<br>Trust Co., Ltd. | Woori Asset<br>Management<br>Corp. | Woori<br>Global Asset<br>Management<br>Co., Ltd | PT Bank<br>Woori<br>Saudara<br>Indonesia<br>1906 Tbk | WB Finance<br>Co., Ltd |
|  Discount rate (%). | 14.55 | 13.36 | 13.47 | 15.98 | 16.88 |
|  Terminal growth rate (%) | 1 | 1 | 1 | 0.00 | 0.00 |
|  Recoverable amount. | 431777 | 162772 | 42083 | 784787 | 544693 |
|  Carrying amount | 300023 | 134073 | 29917 | 739878 | 499823 |

---

As a result of the impairment test on goodwill, it is determined that the carrying amount of the cash-generating unit to which the goodwill has been allocated will not exceed the recoverable amount.

3) Sensitivity analysis

The sensitivity of the fair value measurement to changes in significant but unobservable inputs used in measuring fair value is as follows (Unit: Korean Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Category |  | Woori Asset<br>Trust Co., Ltd. | Woori Asset<br>Management<br>Corp. | Woori<br>Global Asset<br>Management<br>Co., Ltd. | PT Bank<br>Woori<br>Saudara<br>Indonesia<br>1906 Tbk | WB Finance<br>Co., Ltd. |
|  Discount rate (%). | Increase by 1.0% point | (39501) | (8680) | (2553) | (61030) | (38845) |
|  | Decrease by 1.0% point | 48345 | 10686 | 3169 | 71658 | 45066 |
|  Terminal growth rate (%) | Increase by 1.0% point | 30344 | 6699 | 2034 | 43855 | 26515 |
|  | Decrease by 1.0%<br>point(\*) | (25010) | (5464) | (1650) |  |  |

---

---

| | |
|:---|:---|
| (\*) | In the case of PT Bank Woori Saudara Indonesia 1906 Tbk and WOORI BANK (CAMBODIA) PLC, declining cases are excluded from the analysis as the permanent growth rate was assumed to be 0%.  |

---

------

##### [**Table of Contents**](#toc)
**17.** **ASSETS HELD FOR SALE** 

Assets held for distribution (sale) are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
| Assets (\*) | December 31, 2022 | December 31, 2021 |
|  Premises and equipment | 9589 | 8900 |
|  Investments of associates |  | 11472 |
|  Others | 4183 | 5955 |
|  Total | 13772 | 26327 |

---

(\*) The Group classifies assets as held for sale that are highly likely to be sold within one year from December 31, 2022 and December 31, 2021.

The Group measured assets held for sale at the lower of their net fair value or carrying amount.

The Group has decided to sell some of the premises and equipment through internal consultation during the current year and classifies the premises as non-current assets held for sale. The asset is expected to be sold within 12 months, and the premises and equipment that was scheduled to be sold at the end of the prior year has been sold and removed. On the other hand, other assets that are expected to be sold as of the end of the current year are classified as assets that are expected to be sold within one year due to the possibility of being sold as buildings and land acquired through auction.

------

##### [**Table of Contents**](#toc)
**18.** **ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES** 

(1) Assets subjected to lien are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  |  | Collateral given to | Amount | Reason for collateral |
|  Financial assets at FVTPL | Korean treasury and government bonds, etc. | KOREA SECURITIES FINANCE CORPORATION, etc. | 198377 | Related to bonds sold under repurchase agreements (\*1) |
|  | Korean treasury and government bonds, etc. | Korea Securities Depository | 659050 | Securities borrowing collateral |
|  | Korean treasury and government bonds, etc. | SHINHAN SECURITIES CO, etc | 6939 | Future trading collateral |
|  | Korean financial institutions' debt securities, etc. | SC FIRST BANK KOREA, SEOUL, etc | 245876 | Variable margin deposit for CSA, etc |
|  | Korean financial institutions' debt securities, etc. | SHINHAN ASSET MANAGEMENT, etc | 16200 | Related to bonds sold under repurchase agreements (\*1) |
|  | Korean capital contributions, etc. | Korea Software Financial Cooperative | 104 | Bid guarantee, etc. |
|  Financial assets at FVTOCI | Korean treasury and government bonds | Korea Securities Depository | 460 | Related to bonds sold under repurchase agreements (\*1) |
|  | Korean financial institutions' debt securities, etc. | The BOK, etc | 6394890 | Settlement risk, etc. |
|  | Debt securities in foreign currencies | BNP-PARIBAS, etc | 1060120 | Variable margin deposit for CSA, etc |
|  | Debt securities in foreign currencies | SC BANK, H.K, etc | 582738 | Related to bonds sold under repurchase agreements (\*1) |
|  Securities at amortized cost | Korean treasury and government bonds | Korea Securities Depository | 1100351 | Related to bonds sold under repurchase agreements (\*1) |
|  | Korean treasury and government bonds | The BOK, etc | 10820136 | Settlement risk, etc. |
|  | Debt securities in foreign currencies | NATIXIS, etc | 70949 | Related to bonds sold under repurchase agreements (\*1) |
|  | Debt securities in foreign currencies | FHLB ADVANCE, etc | 10570 | Related to the borrowing limit |
|  Loan at amortized cost and other financial assets | Due from banks in local currency | Daishin AMC Co.,Ltd. and others | 1500 | Right of pledge |
|  | Other due from banks in local currency | The Korea Exchange, etc | 133539 | Margin deposit for CCP |
|  | Other due from banks in foreign currency | Korea Investment &<br> Securities, etc | 1142784 | Overseas futures option deposit, etc. |
|  | Mortgage loan | Public offering | 1892723 | Related to covered bonds |
|  Premises and equipment | Land and building | Gakorea Co., Ltd , etc | 1851 | Right to collateral and others (\*2) |
|  Investment properties | Land and building | Gakorea Co., Ltd., etc | 5365 | Right to collateral and others (\*2) |
|  |  | Total | 24344522 |  |

---

---

| | |
|:---|:---|
| (\*1) | The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.  |

---

---

| | |
|:---|:---|
| (\*2) | The maximum pledge amount is 522 million Won.  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  |  | Collateral given to | Amount | Reason for collateral |
|  Financial assets at FVTPL | Korean treasury and government bonds, etc | Nonghyup bank and others | 248009 | Related to bonds sold under repurchase agreements (\*) |
|  | Korean treasury and government bonds, etc | Korea Securities Depository | 179079 | Securities borrowing collateral |
|  | Korean treasury and government bonds, etc | VI Investment, etc. | 3008 | Future trading collateral |
|  | Korean financial institutions' debt securities, etc | Korea Securities Depository | 205783 | Securities borrowing collateral |
|  | Korean financial institutions' debt securities, etc | KOREA SECURITIES FINANCE CORPORATION | 54419 | Collateral for securities lending purposes |
|  | Korean financial institutions' debt securities, etc | Shinhan Investment Corp. | 5352 | Collateral for futures transaction |
|  | Korean corporate bonds | Korea Securities Depository | 299161 | Securities borrowing collateral |
|  | Korean capital contributions | Korea Software Financial Cooperative | 101 | Bid guarantee, etc. |
|  Financial assets at FVTOCI | Korean treasury and government bonds | Korea Securities Depository | 470 | Related to bonds sold under repurchase agreements (\*) |
|  | Korean financial institutions' debt securities, etc | The BOK and others | 3666849 | Settlement risk and others |
|  | Foreign financial institutions' debt securities | STANDARD BANKLONDON LTD | 126595 | Related to bonds sold under repurchase agreements (\*) |
|  Securities at amortized cost | Korean treasury and government bonds | The BOK and others | 8977748 | Settlement risk and others |
|  | Foreign financial institutions' debt securities | NATIXIS and others | 38995 | Related to bonds sold under repurchase agreements (\*) |
|  | Foreign financial institutions' debt securities | FHLB ADVANCE and others | 10375 | Related to the borrowing limit |
|  Loan at amortized cost and other financial assets | Due from banks in local currency | Daishin AMC Co.,Ltd. and others | 1500 | Right of pledge |
|  | Other due from banks in local currency | Samsung Securities Co., Ltd. and others | 25338 | Margin deposit for futures or option |
|  | Other due from banks in foreign currency | Yuanta Securities Korea Co., Ltd., etc. | 1051006 | Overseas futures option deposit, etc. |
|  | Mortgage loan | Public offering | 2494333 | Related to covered bonds |
|  Premises and equipment | Land and building | Credit Counselling & Recovery Service and others | 1910 | Right to collateral and others |
|  Investment properties | Land and building | Credit Counselling & Recovery Service and others | 5520 | Right to collateral and others |
|  |  | Total | 17395551 |  |

---

---

| | |
|:---|:---|
| (\*) | The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.  |

---

------

##### [**Table of Contents**](#toc)
(2) As of December 31, 2022 and 2021 there is no asset acquired through foreclosures.

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Investment properties |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 6404 | 2185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Building | 165 | 181 |
|  Sub-total | 6569 | 2366 |
|  Other assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land for non-business use | 21302 | 21156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Building for non-business use (\*1) | 3049 | 1526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Movables for non-business use (\*2) | 165 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate assessment provision for non-business use | (1176) | (1129) |
|  Sub-total | 23340 | 21673 |
|  Assets held for sale |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 2351 | 2980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Building | 1832 | 2557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 418 |
|  Sub-total | 4183 | 5955 |
|  Total | 34092 | 29994 |

---

---

| | |
|:---|:---|
| (\*1) | The cumulative depreciation amount as of December 31, 2022 and 2021 is 1,055 million Won and 716 million Won, respectively.  |

---

---

| | |
|:---|:---|
| (\*2) | The cumulative depreciation amount as of December 31, 2022 and 2021 is 882 million Won and 907 million Won, respectively.  |

---

(3) Securities loaned are as follows (Unit: Korean Won in millions):

<u> December 31, 2022</u> <u> December 31, 2021</u> <u> Loaned to</u> <br> Financial assets at FVTOCI Korean treasury and government bonds 98,027 98,535 Korea Securities Finance Corporation

Securities loaned are lending of specific securities to borrowers who agree to return the same amount of the same security at the end of lending period. As the Group does not derecognize these securities.

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

Fair values of collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 |
|  | Fair values of collaterals | Fair values of collaterals were disposed or re-subjected to lien |
|  Securities | 7109933 |  |

---

---

| | | |
|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 |
|  | Fair values of collaterals | Fair values of collaterals were disposed or re-subjected to lien |
|  Securities | 10785412 |  |

---

------

##### [**Table of Contents**](#toc)
**19.** **OTHER ASSETS** 

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Lease assets | 2593578 | 1782887 |
|  Prepaid expenses | 287323 | 189808 |
|  Advance payments | 99772 | 61042 |
|  Non-operational assets | 23340 | 16248 |
|  Others | 57539 | 38965 |
|  Total | 3061552 | 2088950 |

---

**20.** **FINANCIAL LIABILITIES AT FVTPL** 

(1) Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Financial instruments at fair value through profit or loss measured at fair value | 8952399 | 4873458 |
|  Total | 8952399 | 4873458 |

---

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Deposits |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gold banking liabilities | 35161 | 65016 |
|  Borrowings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold | 12113 | 241174 |
|  Derivative liabilities | 8905125 | 4567268 |
|  Total | 8952399 | 4873458 |

---

------

##### [**Table of Contents**](#toc)
**21.** **DEPOSITS DUE TO CUSTOMERS** 

Details of deposits due to customers by type are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Deposits in local currency: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits on demand | 15627300 | 18029136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits at termination | 270092855 | 254319473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mutual installment | 22995 | 24620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits on notes payables | 3675596 | 2954066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits on CMA | 60079 | 92360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certificate of deposits | 5255889 | 3586423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other deposits | 1196486 | 1286719 |
| Sub-total | 295931200 | 280292797 |
|  Deposits in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits in foreign currencies | 46263943 | 37643900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount | (92352) | (36826) |
| Sub-total | 46171591 | 37607074 |
|  Customers' deposits for beneficiary | 2418 |  |
|  Total | 342105209 | 317899871 |

---

**22.** **BORROWINGS AND DEBENTURES** 

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

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Lenders | Interest rate (%) | Amount |
|  Borrowings in local currency: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from The BOK | The BOK | 0.3 ~ 1.8 | 3040877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from government funds | Small Enterprise And Market Service and others | 0.0 ~ 3.5 | 2021049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | The Korea Development Bank and others | 0.0 ~ 6.7 | 9562082 |
|  Sub-total |  |  | 14624008 |
|  Borrowings in foreign currencies: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings in foreign currencies | The Export-Import Bank of Korea and others | (0.1) ~ 10.6 | 11161294 |
|  Bills sold | Others | 0.0 ~ 2.4 | 7308 |
|  Call money | Bank and others | 1.6 ~ 5.5 | 400071 |
|  Bonds sold under repurchase agreements | Other financial institutions | 0.2 ~ 6.4 | 2313044 |
|  Present value discount |  |  | (76122) |
|  Total |  |  | 28429603 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Lenders | Interest rate (%) | Amount |
|  Borrowings in local currency: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from The BOK | The BOK | 0.3 | 3144897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from government funds | Small Enterprise And Market Service and others | 0.0 ~ 2.4 | 2053611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | The Korea Development Bank and others | 0.0 ~ 3.1 | 9984518 |
|  Sub-total |  |  | 15183026 |
|  Borrowings in foreign currencies: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings in foreign currencies | JPMorgan Chase & Co. and others | (0.5) ~ 7.3 | 8545077 |
|  Bills sold | Others | 0.0 ~ 1.3 | 9111 |
|  Call money | Bank and others | (0.5) ~ 2.6 | 317961 |
|  Bonds sold under repurchase agreements | Other financial institutions | (0.5) ~ 10.6 | 749976 |
|  Present value discount |  |  | (49692) |
|  Total |  |  | 24755459 |

---

---

| | |
|:---|:---|
| (\*) | As of December 31, 2021, foreign currency borrowings subject to fair value hedges were included in the amount of 35,694 million Won.  |

---

(2) Details of debentures are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  | Interest rate (%) | Amount | Interest rate (%) | Amount |
|  Face value of bond (\*): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ordinary bonds | 0.8 ~ 7.5 | 37132334 | 0.7 ~ 3.6 | 37004942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated bonds | 1.9 ~ 5.1 | 5835325 | 1.9 ~ 5.1 | 6767442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other bonds | 0.8 ~ 17.0 | 1271364 | 0.8 ~ 17.0 | 911190 |
| Sub-total |  | 44239023 |  | 44683574 |
|  Discounts on bonds |  | (40537) |  | (29710) |
|  Total |  | 44198486 |  | 44653864 |

---

---

| | |
|:---|:---|
| (\*) | Included debentures under fair value hedge amounting to 3,076,983 million won and 2,366,724 million won as of December 31, 2022 and 2021 respectively. Also, debentures under cash flow hedge amounting to 1,324,812 million won and 819,298 million won are included as of December 31, 2022 and 2021 respectively.  |

---

------

##### [**Table of Contents**](#toc)
**23.** **PROVISIONS** 

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Asset retirement obligation | 82717 | 80777 |
|  Provisions for guarantees (\*1) | 76508 | 74866 |
|  Provisions for unused loan commitments | 106033 | 112296 |
|  Other provisions (\*2) | 280607 | 308195 |
|  Total | 545865 | 576134 |

---

(\*1) Provisions for guarantees includes provision for financial guarantee of 47,969 million won and 53,321 million won as of December 31, 2022 and 2021, respectively.

(\*2) Other provisions consist of provision for litigation, loss compensation and others.

(2) Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won in millions):

1) Provisions for guarantees

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage1 | Stage2 | Stage3 | Total |
|  Beginning balance | 52830 | 15269 | 6767 | 74866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit loss | 1206 | (1206) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to expected credit loss for the entire period | (119) | 119 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (3) | (338) | 341 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions used |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net provision (reversal) of unused amount | (3449) | 10483 | 577 | 7611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | (5969) |  |  | (5969) |
|  Ending balance | 44496 | 24327 | 7685 | 76508 |

---

(\*) Recognized as a result of new financial guarantee contract valued at initial fair value.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage1 | Stage2 | Stage3 | Total |
|  Beginning balance | 64804 | 16745 | 8043 | 89592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit loss | 2146 | (2144) | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to expected credit loss for the entire period | (162) | 193 | (31) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (3) | (162) | 165 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions used | (6964) |  |  | (6964) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net provision (reversal) of unused amount | (9929) | 636 | (1408) | (10701) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*) | 2938 | 1 |  | 2939 |
|  Ending balance | 52830 | 15269 | 6767 | 74866 |

---

(\*) Recognized as a result of new financial guarantee contract valued at initial fair value.

------

##### [**Table of Contents**](#toc)
2) Provisions for unused loan commitment

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage1 | Stage2 | &nbsp;&nbsp;&nbsp;&nbsp;Stage3 | Total |
|  Beginning balance | 67440 | 44536 | 320 | 112296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit loss | 14349 | (14217) | (132) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to expected credit loss for the entire period | (2619) | 2648 | (29) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (197) | (306) | 503 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net provision (reversal) of unused amount | (11402) | 5527 | (457) | (6332) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 69 |  |  | 69 |
|  Ending balance | 67640 | 38188 | &nbsp;&nbsp;&nbsp;&nbsp;205 | 106033 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage1 | Stage2 | Stage3 | Total |
|  Beginning balance | 63240 | 55726 | 3189 | 122155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit loss | 15522 | (14965) | (557) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to expected credit loss for the entire period | (2338) | 3129 | (791) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired financial assets | (110) | (226) | 336 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net provision (reversal) of unused amount | (9005) | 871 | (1857) | (9991) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 131 | 1 |  | 132 |
|  Ending balance | 67440 | 44536 | 320 | 112296 |

---

(3) Changes in asset retirement obligation for the years ended December 31, 2022 and 2021, are as follows
(Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Beginning balance | 80777 | 68402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions provided | 4082 | 3235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions used | (7400) | (5066) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provisions unused | (21) | (947) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unwinding of discount | 909 | 495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) of restoration expense, etc. | 4370 | 14658 |
|  Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;82717 | &nbsp;&nbsp;&nbsp;&nbsp;80777 |

---

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased premises as of December 31, 2022, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each premise's lease period, and the Group has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost.

------

##### [**Table of Contents**](#toc)
(4) Changes in other provisions for the years ended December 31, 2022 and 2021, are as follows (Unit: Korean
Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Beginning balance | 308195 | 221494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions provided | 36284 | 85706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions used | (8540) | (10375) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provisions unused (\*) | (54893) | (718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation adjustments | (621) | 11957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 182 | 131 |
|  Ending balance | 280607 | 308195 |

---

---

| | |
|:---|:---|
| (\*) | The Group provided Korean won settlement services for trading transaction settlement between Korea and Iran, investigated by U.S. prosecutors (federal prosecutors, New York state prosecutors) and New York State Department of Financial Services for violations of U.S. sanctions against Iran, Sudan, Syria and Cuba. In this regard, the Office of Foreign Assets Control concluded its investigation in December 2020 urging the bank's attention without taking any additional sanctions, and New York State Department of Financial Services concluded its investigation in February 2022 without taking any additional sanctions. Meanwhile, in June 2022, the Group reversed the provision related to the investigation of the U.S. Prosecutors, which have not been completed yet, in consideration of the opinion of an independent legal expert that the probability of sanctions by the U.S. Prosecutors in this case is low.  |

---

(5) Others

1) The Group recognized the provision of the estimated compensation amount related to the miss-selling of the Derivative Linked Fund (DLF) incurred during 2019 and a fine expected to be imposed by the Financial Supervisory Service as the best estimate for the expenditure required to meet its obligations at the end of the reporting period. 

2) For the year ended December 31, 2020, the Group recognized the provisions as the best estimate due to the expected losses of clients arising from the delay in the redemption of funds by Lime Asset Management and the dispute settlement by the Financial Supervisory Service. As of December 31, 2022, the provision for this case is 122.1 billion won. 

3) On October 22, 2021, the Group made a resolution to pay in advance for Platform Asia funds, etc., which are delayed in redemption at the Board of Directors Meeting of Woori Bank, the subsidiary. Provisions for estimated compensation amounts related to the prepayment was recognized as the best estimate of the expenditure. As of December 31, 2022, the sales revenue for Platform Asia, Heritage DLS, and Gen2 DLS sold 85 billion won, 22.3 billion won, and 90.2 billion won, respectively, and provisions is 35.7 billion won, 22.3 billion won, and 12.6 billion won, respectively. 

------

##### [**Table of Contents**](#toc)
**24.** **NET DEFINED BENEFIT LIABILITY(ASSET)** 

The Group's pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

---

| | |
|:---|:---|
|  Volatility of asset | The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate. |
|  Decrease in profitability of blue chip bonds | A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation. |
|  Risk of inflation | Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases. |

---

(1) Details of net defined benefit liability are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2022 | December 31,<br>2021 |
|  Present value of defined benefit obligation | 1377545 | 1618098 |
|  Fair value of plan assets | (1661623) | (1591458) |
|  Net defined benefit liabilities (\*) | (284078) | 26640 |

---

(\*) Net defined benefit assets of 284,078 million won as of December 31, 2022 are the subtracted amount of the net defined benefit liability of 35,202 million won from the net defined benefit assets of 319,280. Net defined benefit liability of 26,640 million won as of December 31, 2021 are the subtracted amount of the net defined benefit asset of 21,346 million won from the net defined benefit liability of 47,986.

(2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | For the years ended December 31 | For the years ended December 31 |
| | | &nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;2021 |
|  Beginning balance | Beginning balance | 1618098 | 1610680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | 166741 | 178416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | 48238 | 39814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements | Financial assumption | (356344) | (92367) |
|  | Demographic assumptions | (9) | (251) |
|  | Experience adjustments | (3838) | (12155) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit paid | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit paid | (92914) | (106050) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation adjustments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation adjustments | (69) | 165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (2358) | (154) |
|  Ending balance | Ending balance | 1377545 | 1618098 |

---

------

##### [**Table of Contents**](#toc)
(3) Changes in the plan assets are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;2021 |
|  Beginning balance | 1591458 | 1564101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 49916 | 40927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements | (18095) | (15022) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employer's contributions | 127979 | 103251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit paid | (87472) | (99523) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (2163) | (2276) |
|  Ending balance | 1661623 | 1591458 |

---

(4) The fair value of the plan assets by composition is as follows as of December 31, 2022 and 2021.

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Cash and due from banks 1,661,623 1,591,458

Meanwhile, Among plan assets, realized returns on plan assets amount to 31,821 million won and 25,905 million won for the years ended December 31, 2022 and 2021, respectively. The contribution expected to be paid in the next accounting year amounts to 123,043 million won.

(5) Amounts related to the defined benefit plan that are recognized in the consolidated statements of comprehensive
income are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Current service cost | 166741 | &nbsp;&nbsp;&nbsp;&nbsp;178416 |
|  Net interest expense | (1678) | (1113) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost recognized in net income | &nbsp;&nbsp;&nbsp;&nbsp;165063 | 177303 |
|  Remeasurements (\*) | (342096) | (89751) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost recognized in total comprehensive income | (177033) | 87552 |

---

---

| | |
|:---|:---|
| (\*) | Amount before tax  |

---

Retirement benefits related to defined contribution plans recognized as expenses are 4,240 million won, and 4,494 million won for the years ended December 31, 2022 and 2021, respectively.

(6) Key actuarial assumptions used in net defined benefit liability measurement are as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
| Discount rate | 5.25% ~ 5.99% | 2.40% ~ 3.49% |
|  Future wage growth rate | 2.1% ~ 5.84% | 2.03% ~ 5.56% |
| Mortality rate | Issued by Korea Insurance Development Institute | Issued by Korea Insurance Development Institute |
|  Retirement rate | Experience rate for each employment classification | Experience rate for each employment classification |

---

The weighted average maturity of defined benefit liability is a minimum of 5.38 to a maximum 10.71 years.

------

##### [**Table of Contents**](#toc)
(7) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows
(Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  |  | December 31, 2022 | December 31, 2021 |
|  Discount rate | Increase by 1% point | (146319) | (161428) |
|  | Decrease by 1% point | 170529 | 189630 |
|  Future wage growth rate | Increase by 1% point | 174546 | 188392 |
|  | Decrease by 1% point | (153712) | (163431) |

---

**25.** **OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES** 

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Other financial liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 6001858 | 6969170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 3219349 | 2070639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from trust accounts | 3475118 | 3107456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agency business revenue | 213845 | 433041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange payables | 822446 | 782176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement credits | 4631921 | 6708220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 319161 | 343213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other miscellaneous financial liabilities | 4148621 | 3772437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount | (20451) | (15322) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 22811868 | 24171030 |
|  Other liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned income | 351633 | 291147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other miscellaneous liabilities | 338524 | 265706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 690157 | 556853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 23502025 | 24727883 |

---

------

##### [**Table of Contents**](#toc)
**26.** **DERIVATIVES** 

(1) Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | | Assets | Assets | Assets | Liabilities | Liabilities | Liabilities |
|  |<br>Nominal<br>amount | For cash<br>flow hedge | For fair value<br>hedge | For<br>trading | For cash<br>flow hedge | For fair value<br>hedge | For<br>trading |
|  Interest rate: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 42545 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 2620000 |  |  | 249356 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 136550518 | 2041 |  | 440540 |  | 193831 | 474158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase options | 170000 |  |  | 9308 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 310000 |  |  |  |  |  | 16752 |
|  Currency: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 51136 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 90134257 |  |  | 3083082 |  |  | 1360535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 97197309 | 35745 |  | 3105901 | 9080 |  | 5500970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase options | 487852 |  |  | 23182 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 570982 |  |  |  |  |  | 7929 |
|  Equity: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 958589 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 183 |  |  | 100 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 568835 |  |  | 90237 |  |  | 673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase options | 29801478 |  |  | 1204475 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 29874836 |  |  |  |  |  | 1544108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 389338520 | 37786 |  | 8206181 | 9080 | 193831 | 8905125 |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  |  | Assets | Assets | Assets | Liabilities | Liabilities | Liabilities |
|  | Nominal<br>amount | For cash<br>flow hedge | For fair value<br>hedge | For<br>trading | For cash<br>flow hedge | For fair value<br>hedge | For trading |
|  Interest rate: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 118423 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 340000 |  |  | 16434 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 134196188 | 351 | 95103 | 136185 |  | 20287 | 305443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase options | 170000 |  |  | 3959 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 340000 |  |  |  |  |  | 8552 |
|  Currency: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 7445 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 114072910 |  |  | 2466893 |  |  | 993823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 101117559 | 11310 |  | 1444634 | 7297 |  | 2345735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase options | 1079610 |  |  | 10968 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 1686787 |  |  |  |  |  | 8952 |
|  Equity: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 337916 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 233 |  |  | 64 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 642963 |  |  | 27031 |  |  | 3784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase options | 17503553 |  |  | 696963 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 19106573 |  |  |  |  |  | 900979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 390720160 | 11661 | 95103 | 4803131 | 7297 | 20287 | 4567268 |

---

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

------

##### [**Table of Contents**](#toc)
(2) Overview of the Group's hedge accounting

The hedging relationships the entity applies fair value hedge accounting and cash flow hedge accounting to are affected by interest rate which is related with Interest Rate Benchmark Reform. The interest rates to which the hedging relationships are exposed are USD 3M LIBOR, Compounding SOFR, AUD 3M BBSW, and CD 3M. The nominal amounts of hedging instruments related to USD 3M LIBOR, Compounding SOFR, AUD 3M BBSW, and CD 3M in the hedging relationships of the Group are USD 2,120,000,000, USD 525,000,000, AUD 150,000,000, and 150,000 million Won, respectively. The entity pays close attention to discussions in the market and industry regarding the applicable alternative benchmark interest rates for the exposed interest rate. The entity judges related uncertainty is expected to be no longer present when the exposed interest rates are replaced by the applicable benchmark interest rates.

1) Fair value hedge

As of December 31, 2022, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 2,928,127 million Won, and foreign currency loans amounting to 148,856 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign currency denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments.

Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is hedged as the foreign currency denominated debentures fixed interest rate terms are converted to floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value of hedging instrument to the face value of the hedged item.

In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument.

The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Group expects the fair value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction.

The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is USD Libor 3M plus spread, AUD BBSW 3M plus spread and EURIBOR 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate and pays interest at a variable interest rate.

------

##### [**Table of Contents**](#toc)
2) Cash Flow Hedge

As of the December 31, 2022, the Group has applied cash flow hedge on local currency denominated debentures amounting to 229,892 million won and debentures on foreign currency amounting to 1,094,920 million won The Group's hedging strategies are to ① Mitigate risks of cash flow fluctuation from variable interest rate debentures on local currency due to changes in market interest rate by entering into an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of cash flow fluctuation from principal and interest of variable interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and interest rates by entering into a currency swap contract and thereby designating it as hedging instrument; ③ Mitigate the risks of cash flow fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency due to changes in foreign exchange rates by entering into a currency swap contract and thereby designating it as hedging instrument.

This means exchanging a predetermined nominal amount as set forth in the interest rate swap contract adjusted by the differences between the fixed and variable interest rates, which results in the conversion of interest rates of debentures in local currency from variable interest into fixed interest, eliminating the cash flow fluctuation risk.

In addition, this also means a payment of predetermined principal amount as set forth in the currency swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest rate to USD or applying fixed interest rate to SGD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest.

The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face amount of the hedged item in accordance with interest rate swap and currency swap.

Only interest rate and foreign exchange rate fluctuation risk, which is the most significant factor in the cash flow fluctuation of the hedged item, is addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging.

Thus, there could be hedge ineffectiveness arising from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction.

The interest rate swap, currency swap contract and the hedged item are all affected by the changes in market interest rate and foreign exchange rates which are basic factors of the derivative. The Group expects that the value of interest rate swap contract, currency swap contract and value of the hedged item will generally fluctuate in opposite direction.

3) Hedges of Net Investment in Foreign Operations

Foreign currency exposure arises from the Group's net investments in Woori America Bank, Woori Cambodia Bank and Hong Kong Woori Investment Bank, and overseas branches, which use USD as their functional currency. The risk arises from fluctuations in the spot exchange rate between USD and KRW. This may result in different net investment amounts.

The risk hedged in the net investment hedging is the weakness of KRW against USD, which may reduce the carrying amount of the Group's net investments in Woori America Bank, Woori Cambodia Bank and Hong Kong Woori Investment Bank.

A portion of the Group's net investments in Woori America Bank, Woori Cambodia Bank and Hong Kong Woori Investment Bank are hedged in USD denominated foreign currency bonds(Carrying amount as of December 31, 2022: USD 864,390,437) and mitigate foreign exchange risk arising from the net assets of subsidiaries.

The bonds was designated as a hedging instrument for changes in the value of net investment resulting from fluctuations in the USD/KRW spot exchange rate.

------

##### [**Table of Contents**](#toc)
To assess the effectiveness of the hedging instrument, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing (offsetting) changes in the carrying amount of the liability due to changes in the spot exchange rate with changes. The Group's policy is to hedge the net investment only within the principal range of the liability.

(3) The nominal amounts of the hedging instrument are as follows (Unit: USD, AUD, EUR, and Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | 1 year or less | 1 year to 5 years | More than 5<br>years | Total |
|  Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (USD) |  | 2075000000 | 300000000 | 2375000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (AUD) | 150000000 |  |  | 150000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (KRW) | 150000 |  |  | 150000 |
|  Cash flow hedge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (KRW) | 50000 | 140000 |  | 190000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk and interest rate risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) |  | 270000000 |  | 270000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) | 80000000 | 100000000 |  | 180000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (EUR) |  | 194780000 |  | 194780000 |
|  Hedges of net investment in foreign operations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency bond (USD) | 272390437 | 592000000 |  | 864390437 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | 1 year or less | 1 year to 5 years | More than 5<br>years | Total |
|  Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (USD) |  | 1550000000 | 300000000 | 1850000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (AUD) |  | 150000000 |  | 150000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (EUR) |  | 26591163 |  | 26591163 |
|  Cash flow hedge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (KRW) |  | 50000 |  | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk and interest rate risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) | 200000000 | 270000000 |  | 470000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) |  | 180000000 |  | 180000000 |

---

------

##### [**Table of Contents**](#toc)
(4) The average interest rate and average currency rate of the hedging instrument as of December 31, 2022 and
2021 are as follows:

---

| | |
|:---|:---|
|  | December 31, 2022 |
|  | Average interest rate and average exchange rate |
|  Fair value hedge |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (USD) | Fixed 3.62% receipt and Libor 3M+1.45% floating paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (USD) | Fixed 2.05% receipt and (C.SOFR)+0.65% paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (AUD) | Fixed 0.84% receipt and BBSW 3M+0.72% paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (KRW) | Fixed 3.13% receipt and CD 3M paid |
|  Cash flow hedge |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (KRW) | KRW CMS 5Y+0.46% receipt, 3.65% paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (KRW) | KRW CD+0.33% receipt, 1.68% paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk and interest rate risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) | USD 1M Libor+0.79% receipt, KRW 0.80% paid, KRW/USD = 1,226.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) | USD 1.50% receipt, KRW 1.57% paid, KRW/USD = 1,140.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (EUR) | EUR 1.98% receipt, KRW 3.68% paid, KRW/EUR = 1,344.08 |
|  Hedges of net investment |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchanging rate risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency denominated debentures(KRW/USD) | 1344.37 |

---

---

| | |
|:---|:---|
|  | December 31, 2021 |
|  | Average interest rate and average exchange rate |
|  Fair value hedge |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (USD) | Fixed 3.62% receipt and Libor 3M + 1.45% floating paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (AUD) | Fixed 0.84% receipt and BBSW 3M+0.72% paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (EUR) | EURIBOR 3M + 0.09% receipt and 1.5% fixed paid |
|  Cash flow hedge |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap (KRW) | KRW CD+0.33% receipt, 1.68% paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk and interest rate risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) | USD 1M Libor+0.70% receipt, KRW 0.93% paid, KRW/USD = 1,206.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap (USD) | USD 1.50% receipt, KRW 1.57% paid, KRW/USD = 1,140.50 |

---

------

##### [**Table of Contents**](#toc)
(5) The amounts related to items designated as hedging instruments are as follows (Unit: USD, AUD, EUR, and Korean
Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Nominal amounts of the<br>hedging instrument | Carrying amounts of the hedging<br>instrument | Carrying amounts of the hedging<br>instrument | Line item in the<br>statement of financial<br>position where the hedging<br>instrument is located | Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness |
|  | Nominal amounts of the<br>hedging instrument | Assets | Liabilities | Line item in the<br>statement of financial<br>position where the hedging<br>instrument is located | Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness |
|  Fair value hedge |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate Swap(USD) | 2375000000 |  | 193831 | Derivative assets<br> (designated for hedging)  | (247765) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate Swap(AUD) | 150000000 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate Swap(KRW) | 150000 |  |  | Derivative liabilities<br> (designated for hedging)  |  |
|  Cash flow hedge |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap(KRW) | 190000 | 2041 |  | Derivative liabilities<br> (designated for hedging)  | 1690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation risk and interest rate risk |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap(USD) | 270000000 | 17909 |  | Derivative liabilities<br> (designated for hedging)  | 58253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation risk |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap(USD) | 180000000 | 17836 |  | Derivative liabilities<br> (designated for hedging)  | 9317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap(EUR) | 194780000 |  | 9080 | Derivative liabilities<br> (designated for hedging)  | (10286) |
|  Hedges of net investment in foreign operations |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange rate risk |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency bond(USD) | 864390437 |  | 1095442 | Foreign currency bond | (28553) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Nominal amounts of the<br>hedging instrument | Nominal amounts of the<br>hedging instrument | Carrying amounts of the hedging<br>instrument | Carrying amounts of the hedging<br>instrument | Line item in the<br>statement of financial<br>position where the hedging<br>instrument is located | Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness |
|  | Nominal amounts of the<br>hedging instrument | Nominal amounts of the<br>hedging instrument | Assets | Liabilities | Line item in the<br>statement of financial<br>position where the hedging<br>instrument is located | Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness |
|  Fair value hedge |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap | USD | 1850000000 | 95086 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20287 | Derivative assets<br> (designated for hedging)  | (83821) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap | AUD | 150000000 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap | EUR | 26591163 | 17 |  | Derivative liabilities<br> (designated for hedging)  | 17 |
|  Cash flow hedge |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap | KRW | 50000 | 351 |  | Derivative liabilities<br> (designated for hedging)  | 1896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation risk and interest rate risk |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap | USD | 470000000 | 3631 | 7297 | Derivative liabilities<br> (designated for hedging)  | 60564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation risk |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swap | USD | 180000000 | 7679 |  | Derivative liabilities<br> (designated for hedging)  | 8218 |

---

------

##### [**Table of Contents**](#toc)
(6) Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in
millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Carrying amounts of<br>the hedged item | Carrying amounts of<br>the hedged item | Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of the<br>hedged item | Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of the<br>hedged item | Line item in the<br>statement of<br>financial position<br>in which the<br>hedged item is<br>included | Changing in<br>fair value used<br>for calculating<br>hedge<br>ineffectiveness | Cash flow<br>hedge<br>reserve (\*) |
|  | Assets | Liabilities | Assets | Liabilities | Line item in the<br>statement of<br>financial position<br>in which the<br>hedged item is<br>included | Changing in<br>fair value used<br>for calculating<br>hedge<br>ineffectiveness | Cash flow<br>hedge<br>reserve (\*) |
|  Fair value hedge |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 3076983 |  | (199804) | Debentures | 257911 |  |
|  Cash flow hedge |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 229892 |  |  | Debentures | (3742) | 2531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk and interest rate risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 342019 |  |  | Debentures | (23296) | 8648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 752901 |  |  | Debentures | 11256 | (24600) |
|  Hedges of net investment in foreign operations |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange rate risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign operations net asset |  | 1095442 |  |  | Foreign<br>operations<br>net asset | 28553 | (38797) |

---

(\*) After tax amount

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Carrying amounts of<br>the hedged item | Carrying amounts of<br>the hedged item | Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of the<br>hedged item | Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of the<br>hedged item | Line item in the<br>statement of<br>financial position<br>in which the<br>hedged item is<br>included | Changing in<br>fair value used<br>for calculating<br>hedge<br>ineffectiveness | Cash flow<br>hedge<br>reserve (\*) |
|  | Assets | Liabilities | Assets | Liabilities | Line item in the<br>statement of<br>financial position<br>in which the<br>hedged item is<br>included | Changing in<br>fair value used<br>for calculating<br>hedge<br>ineffectiveness | Cash flow<br>hedge<br>reserve (\*) |
|  Fair value hedge |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 2366724 |  | 53160 | Debentures | 100343 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency borrowing |  | 35694 |  |  | Foreign<br>currency<br>borrowings | (17) | (17) |
|  Cash flow hedge |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 49977 |  |  | Debentures | (1760) | 281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk and interest rate risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 556607 |  |  | Debentures | (53832) | 5859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies translation risk |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 212715 |  |  | Debentures | (7609) | (305) |

---

(\*) After tax amount

------

##### [**Table of Contents**](#toc)
(7) Amounts recognized in profit or loss due to the ineffective portion of fair value hedges during the current
period are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  |  | Hedge ineffectiveness<br>recognized in profit or loss | Line item in the profit or loss that includes hedge<br>ineffectiveness |
|  Fair value hedge | Interest rate risk | 10146 | Other net operating income(expense) |
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  |  | Hedge ineffectiveness<br>recognized in profit or loss | Line item in the profit or loss that includes hedge<br>ineffectiveness |
|  Fair value hedge | Interest rate risk | 16522 | Other net operating income(expense) |

---

(8) Reclassification of profit or loss from other comprehensive income and equity related to cash flow hedges are
as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  |  | Changes in<br>the value<br>of hedging<br>instruments<br>recognized<br>in OCI | Hedge<br>ineffectiveness<br>recognized in<br>profit or loss | Changes in<br>the value<br>of foreign<br>basis<br>spread<br>recognized<br>in OCI | Line item<br>recognized<br>in the profit<br>or loss | Amounts<br>reclassified<br>from cash<br>flow hedge<br>reserve to<br>profit or<br>loss | Line item<br>affected in profit<br>or loss due to<br>reclassification |
|  Cash flow hedge | Interest rate risk | 1653 | 37 |  | Other net<br>operating<br>income<br>(expense) | 220 | Other net<br>operating<br>income<br>(expense) |
|  | Foreign currencies translation risk<br>and interest rate risk | 58253 |  | (1721) | Other net<br>operating<br>income<br>(expense) | (53743) | Other net<br>operating<br>income<br>(expense) |
|  | Foreign currencies translation<br>risk | (969) |  | 2046 | Other net<br>operating<br>income<br>(expense) | (16111) | Other net<br>operating<br>income<br>(expense) |
|  |  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  |  | Changes in<br>the value<br>of hedging<br>instruments<br>recognized<br>in OCI | Hedge<br>ineffectiveness<br>recognized in<br>profit or loss | Changes in<br>the value<br>of foreign<br>basis<br>spread<br>recognized<br>in OCI | Line item<br>recognized<br>in the profit<br>or loss | Amounts<br>reclassified<br>from cash<br>flow hedge<br>reserve to<br>profit or<br>loss | Line item<br>affected in profit<br>or loss due to<br>reclassification |
|  Cash flow hedge | Interest rate risk | 1641 | 256 |  | Other net<br>operating<br>income<br>(expense) |  | Other net<br>operating<br>income<br>(expense) |
|  | Foreign currencies translation risk<br>and interest rate risk | 60394 | 169 | (2300) | Other net<br>operating<br>income<br>(expense) | (52126) | Other net<br>operating<br>income<br>(expense) |
|  | Foreign currencies translation<br>risk | 8476 | (258) | 416 | Other net<br>operating<br>income<br>(expense) | (9045) | Other net<br>operating<br>income<br>(expense) |

---

------

##### [**Table of Contents**](#toc)
(9) The amounts recognized in profit or loss and other comprehensive income related to the hedging of net
investments in foreign operations are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | | Profit or loss<br>recognized in OCI | Hedge ineffectiveness<br>recognized in profit or loss | Line item which recognized the hedge<br>ineffectiveness |
|  Hedges of net investment in foreign operation | Exchange rate risk | (38797) |  |  |

---

------

##### [**Table of Contents**](#toc)
**27.** **DEFERRED DAY 1 PROFITS OR LOSSES** 

Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Beginning balance | 29111 | 6939 |
|  New transactions | 21656 | 49523 |
|  Amounts recognized in losses | (32803) | (27351) |
|  Ending balance | 17964 | 29111 |

---

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded the transaction price as at the time of acquisition, even though there are difference noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or losses as of December 31, 2022 and 2021.

**28.** **EQUITY** 

(1) Details of equity as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Capital |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock capital | 3640303 | 3640303 |
|  Hybrid securities | 3112449 | 2294381 |
|  Capital surplus |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in capital in excess of par | 643544 | 643544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 38841 | 38841 |
|  Sub-total | 682385 | 682385 |
|  Capital adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stocks | (3819) | (3819) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other adjustments (\*1) | (1780367) | (1747242) |
|  Sub-total | (1784186) | (1751061) |
|  Accumulated other comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI | (645731) | (162522) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in capital due to equity method | 475 | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on foreign currency translation of foreign operations | (24202) | (63781) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on hedges of net investment in foreign operations | (20701) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit plan | 55235 | (195944) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on valuation of cash flow hedge | (4282) | 5553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital related to non-current assets held for sale |  | 279 |
|  Sub-total | (639206) | (416553) |
|  Retained earnings (\*2) (\*3) | 23750152 | 21392564 |
|  Non-controlling interest (\*4) | 2865445 | 3008176 |
|  Total | 31627342 | 28850195 |

---

(\*1) Included 178,060 million Won in capital transaction gains and losses recognized by Woori Bank and (formerly) Woori Financial Group in 2014 and 2,238,228 million Won due to the spin-off of Gyeongnam Bank and Gwangju Bank.

---

| | |
|:---|:---|
| (\*2) | The regulatory reserve for credit losses in retained earnings amounted to 2,966,960 million Won and 2,568,367 million Won as of December 31, 2022 and 2021, respectively in accordance with the relevant article.  |

---

---

| | |
|:---|:---|
| (\*3) | The earned surplus reserve in retained earnings amounted to 181,860 million Won and 122,370 million Won as of December 31, 2022 and 2021 in accordance with the Article 53 of the Financial Holding Company Act.  |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| (\*4) | The hybrid securities issued by Woori Bank amounting to 2,344,816 million Won and 2,555,166 million Won as of December 31, 2022 and 2021, respectively, are recognized as non-controlling interests. 113,995 million Won and 144,923 million Won of dividends for the hybrid securities issued by Woori Bank are allocated to net profit and loss of the non-controlling interests for the years ended December 31, 2022 and 2021, respectively.  |

---

(2) The number of authorized shares and others of the Group are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Shares of common stock authorized |  | 4,000,000,000 Shares |  | 4,000,000,000 Shares |
|  Par value |  | 5,000 Won |  | 5,000 Won |
|  Shares of common stock issued |  | 728,060,549 Shares |  | 728,060,549 Shares |
|  Capital stock |  | 3,640,303 million Won |  | 3,640,303 million Won |

---

(3) Hybrid securities

The bond-type hybrid securities classified as owner's equity are as follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Issue date | Maturity | Interest<br>rate (%) | December 31,<br>2022 | December 31,<br>2021 |
|  Securities in local currency | 2019-07-18 |  | 3.49 | 500000 | 500000 |
|  Securities in local currency | 2019-10-11 |  | 3.32 | 500000 | 500000 |
|  Securities in local currency | 2020-02-06 |  | 3.34 | 400000 | 400000 |
|  Securities in local currency | 2020-06-12 |  | 3.23 | 300000 | 300000 |
|  Securities in local currency | 2020-10-23 |  | 3.00 | 200000 | 200000 |
|  Securities in local currency | 2021-04-08 |  | 3.15 | 200000 | 200000 |
|  Securities in local currency | 2021-10-14 |  | 3.60 | 200000 | 200000 |
|  Securities in local currency | 2022-02-17 |  | 4.10 | 300000 |  |
|  Securities in local currency | 2022-07-28 |  | 4.99 | 300000 |  |
|  Securities in local currency | 2022-10-25 |  | 5.97 | 220000 |  |
|  Issuance cost | Issuance cost | Issuance cost | Issuance cost | (7551) | (5619) |
|  Total |  |  |  | 3112449 | 2294381 |

---

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date of issuance.

------

##### [**Table of Contents**](#toc)
(4) Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning<br>balance | Increase<br>(decrease)<br>(\*) | Reclassification<br>adjustments | Income<br>tax<br>effect | Ending<br>balance |
|  Net gain (loss) on valuation of financial assets at FVTOCI | (162522) | (659906) | 21498 | 155199 | (645731) |
|  Changes in capital due to equity method | (138) | 6563 |  | (5950) | 475 |
|  Gain (loss) on foreign currency translation of foreign operations | (63781) | 33368 |  | 6211 | (24202) |
|  Gain (loss) on hedges of net investment in foreign operations |  | (28553) |  | 7852 | (20701) |
|  Remeasurement gain (loss) related to defined benefit plan | (195944) | 346553 |  | (95374) | 55235 |
|  Gain (loss) on valuation of cash flow hedge | 5553 | (10373) | (220) | 758 | (4282) |
|  Capital related to non-current assets held for sale | 279 | (385) |  | 106 |  |
|  Total | (416553) | (312733) | 21278 | 68802 | (639206) |

---

---

| | |
|:---|:---|
| (\*) | The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income and non-current assets held for sale are changes due to the period evaluation, and the reclassification adjustments amounting to (10254) million Won and 279 million Won are due to disposal of equity securities and non-current assets held for sale, respectively during the period.  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning<br>balance | Increase<br>(decrease)<br>(\*) | Reclassification<br>adjustments | Income<br>tax<br>effect | Ending<br>balance |
|  Net gain (loss) on valuation of financial assets at FVTOCI | (9833) | (174113) | (32624) | 54048 | (162522) |
|  Changes in capital due to equity method | (2609) | 3885 |  | (1414) | (138) |
|  Gain (loss) on foreign currency translation of foreign operations | (298363) | 239614 |  | (5032) | (63781) |
|  Remeasurement gain (loss) related to defined benefit plan | (261195) | 90337 |  | (25086) | (195944) |
|  Gain (loss) on valuation of derivatives designated as cash flow hedges | (1386) | 6416 | 1221 | (698) | 5553 |
|  Capital related to noncurrent assets held for sale | 1226 | (1306) |  | 359 | 279 |
|  Total | (572160) | 164833 | (31403) | 22177 | (416553) |

---

---

| | |
|:---|:---|
| (\*) | The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income and non-current assets held for sale are changes due to the period evaluation, and the reclassification adjustments amounting to (2220) million Won, 946 million Won and (947) million Won are due to disposal of equity securities, equity method investments and non-current assets held for sale, respectively during the period.  |

---

------

##### [**Table of Contents**](#toc)
(5) Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Group calculates and discloses the regulatory reserve for credit loss.

1) Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Beginning balance | 2966960 | 2568367 |
|  Planned provision of regulatory reserve (reversal) for credit loss | (127485) | 398593 |
|  Ending balance | 2839475 | 2966960 |

---

2) Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Net income before regulatory reserve | 3323982 | 2807371 |
|  Provision of regulatory reserve (reversal) for credit loss | (127485) | 398593 |
|  Adjusted net income after the provision of regulatory reserve | 3451467 | 2408778 |
|  Dividends to hybrid securities | (91756) | (66250) |
|  Adjusted net income after regulatory reserve and dividends to hybrid securities | 3359711 | 2342528 |
|  Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won) | 4615 | 3234 |

---

(6) Treasury stock

Details of treasury stocks are as follows (Unit: Shares, Korean Won in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Number of shares | Number of shares | Carrying amount | Carrying amount | Number of shares | Number of shares | Carrying amount | Carrying amount |
|  Beginning balance |  | 343991 |  | 3819 |  | 2 |  |  |
|  Acquisition |  |  |  |  |  | 343989 |  | 3819 |
|  Ending balance |  | 343991 |  | 3819 |  | 343991 |  | 3819 |

---

------

##### [**Table of Contents**](#toc)
**29.** **DIVIDENDS** 

(1) Dividends per share and the total dividends for the fiscal year ending December 31, 2021 were 750 Won and
546,044 million Won, respectively, and the dividends were approved at the regular general shareholders' meeting held on March 25, 2022 and were paid in April 2022.

(2) On July 22, 2022, in accordance with a resolution of the Board of Directors, the Group declared the
interim dividend of 150 Won per share (total dividend of 109,209 million Won) with June 30, 2022 as base date, and the dividends were paid in August 2022.

(3) A dividend in respect of the year ended December 31, 2022, of 980 won per share, amounting to a total
dividend of 713,497 million won, is to be proposed to shareholders at the annual general meeting on March 24, 2023. These financial statements do not include this dividend payable.

**30.** **NET INTEREST INCOME** 

(1) Interest income recognized is as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Financial assets at FVTPL | 106698 | 45803 |
|  Financial assets at FVTOCI | 632615 | 381814 |
|  Financial assets at amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities at amortized cost | 515246 | 324920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on due from banks | 244331 | 46600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on loans | 13109022 | 9065074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest of other receivables | 46637 | 30538 |
|  Subtotal | 13399990 | 9142212 |
|  Total | 14654549 | 9894749 |

---

(2) Details of interest expense recognized are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Interest on deposits due to customers | 4120811 | 1906858 |
|  Interest on borrowings | 598185 | 219994 |
|  Interest on debentures | 1036191 | 727093 |
|  Other interest expense | 195090 | 47647 |
|  Interest on lease liabilities | 7693 | 7436 |
|  Total | 5957970 | 2909028 |

---

------

##### [**Table of Contents**](#toc)
**31.** **NET FEES AND COMMISSIONS INCOME** 

(1) Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Fees and commission received for brokerage | 185545 | 182794 |
|  Fees and commission received related to credit | 189856 | 197125 |
|  Fees and commission received for electronic finance | 130712 | 131941 |
|  Fees and commission received on foreign exchange handling | 56812 | 56210 |
|  Fees and commission received on foreign exchange | 96713 | 73894 |
|  Fees and commission received for guarantee | 85340 | 76428 |
|  Fees and commission received on credit card | 594897 | 573048 |
|  Fees and commission received on securities business | 111211 | 100991 |
|  Fees and commission from trust management | 266447 | 216203 |
|  Fees and commission received on credit information | 10190 | 10220 |
|  Fees and commission received related to lease | 572563 | 374900 |
|  Other fees | 199414 | 177951 |
|  Total | 2499700 | 2171705 |

---

(2) Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended<br>December 31 | For the years ended<br>December 31 |
|  | 2022 | 2021 |
|  Fees and commissions paid | 325536 | 261734 |
|  Credit card commission | 446885 | 425796 |
|  Securities business commission | 1414 | 1605 |
|  Others | 15695 | 11795 |
|  Total | 789530 | 700930 |

---

**32.** **DIVIDEND INCOME** 

(1) Details of dividend income recognized are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended<br>December 31 | For the years ended<br>December 31 |
|  | 2022 | 2021 |
|  Dividend income related to financial assets at FVTPL | 136136 | 284683 |
|  Dividend income related to financial assets at FVTOCI | 23846 | 24528 |
|  Total | 159982 | 309211 |

---

(2) Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the years ended<br>December 31 | For the years ended<br>December 31 | For the years ended<br>December 31 | For the years ended<br>December 31 |
|  | 2022 | 2022 | 2021 | 2021 |
|  Dividend income recognized from assets held: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 23846 |  | 24528 |

---

------

##### [**Table of Contents**](#toc)
**33.** **NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE** 

(1) Details of gains or losses related to net gain or loss on financial instruments at FVTPL are as follows (Unit:
Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended<br>December 31 | For the years ended<br>December 31 |
|  | 2022 | 2021 |
|  Gain on financial instruments at fair value through profit or loss measured at fair value | 238502 | 325649 |
|  Gain on financial instruments at fair value through profit or loss designated as upon initial recognition |  | 102 |
|  Total | 238502 | 325751 |

---

(2) Details of net gain or loss on financial instruments at fair value through profit or loss measured at fair
value and financial instruments held for trading are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | For the years ended December 31 | For the years ended December 31 |
|  |  |  | 2022 | 2021 |
|  Financial assets at FVTPL | Securities | Gain on transactions and valuation | 294667 | 249803 |
|  |  | Loss on transactions and valuation | (553093) | (197172) |
|  |  | Sub-total | (258426) | 52631 |
|  | Loans | Gain on transactions and valuation | 24005 | 24674 |
|  |  | Loss on transactions and valuation | (2219) | (6770) |
|  |  | Sub-total | 21786 | 17904 |
|  | Other<br>financial<br>assets | Gain on transactions and valuation | 21602 | 17034 |
|  |  | Loss on transactions and valuation | (12314) | (12370) |
|  |  | Sub-total | 9288 | 4664 |
|  | Sub-total |  | (227352) | 75199 |
|  Derivatives<br> (Held for trading) | Interest<br>rates<br>derivatives | Gain on transactions and valuation | 5216543 | 2020004 |
|  |  | Loss on transactions and valuation | (3625834) | (1746752) |
|  |  | Sub-total | 1590709 | 273252 |
|  | Currency<br>derivatives | Gain on transactions and valuation | 14601674 | 9685798 |
|  |  | Loss on transactions and valuation | (15713074) | (9715260) |
|  |  | Sub-total | (1111400) | (29462) |
|  | Equity<br>derivatives | Gain on transactions and valuation | 2836843 | 1754671 |
|  |  | Loss on transactions and valuation | (2850334) | (1744294) |
|  |  | Sub-total | (13491) | 10377 |
|  | Other<br>derivatives | Gain on transactions and valuation | 49 | 64 |
|  |  | Loss on transactions and valuation | (13) | (3781) |
|  |  | Sub-total | 36 | (3717) |
|  | Sub-total |  | 465854 | 250450 |
|  Net, total | Net, total | Net, total | 238502 | 325649 |

---

(3) Details of net gain (loss) on financial instruments at fair value through profit or loss designated as upon
initial recognition are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 | 2021 |
|  Gain (loss) on equity-linked securities |  |  | 102 |

---

------

##### [**Table of Contents**](#toc)
**34.** **NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI** 

Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in millions) :

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Gain (Loss) on redemption of securities | (7) | (23) |
|  Gain (Loss) on transactions of securities | (21491) | 32647 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;(21498) | &nbsp;&nbsp;&nbsp;&nbsp;32624 |

---

**35.** **REVERSAL OF (PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS** 

Reversal of (provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Reversal(provision) due to credit loss on financial assets measured at FVTOCI | 827 | (4909) |
|  Provision for impairment loss due to credit loss on securities at amortized cost | (3151) | (664) |
|  Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost | (881668) | (551957) |
|  Provision for(reversal of) provision on guarantee | (7611) | 10701 |
|  Reversal of unused loan commitment | 6332 | 9991 |
|  Total | (885271) | (536838) |

---

------

##### [**Table of Contents**](#toc)
**36.** **GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME (EXPENSES)** 

(1) Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | For the years ended December 31 | For the years ended December 31 |
| | | | 2022 | 2021 |
|  Employee benefits | Short-term employee benefits | Salaries | 1980363 | 1775018 |
|  | Short-term employee benefits | Employee fringe benefits | 590255 | 545534 |
|  | Share based payment | Share based payment | 9632 | 17774 |
|  | Retirement benefit service costs | Retirement benefit service costs | 169303 | 181797 |
|  | Termination | Termination | 162019 | 180872 |
|  | Subtotal | Subtotal | 2911572 | 2700995 |
|  Depreciation and amortization | Depreciation and amortization | Depreciation and amortization | 521827 | 524154 |
|  Other general and administrative expenses | Rent | Rent | 80130 | 83879 |
|  | Taxes and public dues | Taxes and public dues | 157905 | 135015 |
|  | Service charges | Service charges | 233495 | 231852 |
|  | Computer and IT related | Computer and IT related | 127186 | 117875 |
|  | Telephone and communication | Telephone and communication | 84204 | 79145 |
|  | Operating promotion | Operating promotion | 53733 | 44248 |
|  | Advertising | Advertising | 160464 | 101384 |
|  | Printing | Printing | 6799 | 6449 |
|  | Traveling | Traveling | 10716 | 7449 |
|  | Supplies | Supplies | 8309 | 7642 |
|  | Insurance premium | Insurance premium | 20670 | 10692 |
|  | Maintenance | Maintenance | 23266 | 20808 |
|  | Water, light, and heating | Water, light, and heating | 16165 | 14520 |
|  | Vehicle maintenance | Vehicle maintenance | 14831 | 11590 |
|  | Others | Others | 98618 | 49714 |
|  | Sub-total | Sub-total | 1096491 | 922262 |
|  Total | Total | Total | 4529890 | 4147411 |

---

(2) Details of other operating income recognized are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Gain on transactions of foreign exchange | 1403083 | 562935 |
|  Gain related to derivatives (Designated for hedging) | 71179 | 61271 |
|  Gain on fair value hedged items | 257910 | 106253 |
|  Others | 249509 | 172044 |
|  Total | 1981681 | 902503 |

---

------

##### [**Table of Contents**](#toc)
(3) Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Losses on transactions of foreign exchange | 1181663 | 450698 |
|  KDIC deposit insurance premium | 423834 | 406276 |
|  Contribution to miscellaneous funds | 402057 | 367961 |
|  Losses related to derivatives (Designated for hedging) | 250268 | 93084 |
|  Losses on fair value hedged items |  | 1947 |
|  Others (\*) | 736112 | 469938 |
|  Total | 2993934 | 1789904 |

---

(\*) Other expense includes 14,664 million Won and 13,963 million Won for intangible asset amortization cost and 388,895 million Won and 250,971 million Won for lease depreciation cost for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
(4) Share-based payment

Details of performance condition share-based payment granted to executives as of December 31, 2022 and 2021 are as follows.

1) Performance condition share-based payment

---

| | | |
|:---|:---|:---|
| Subject to |  | Shares granted for the year 2019 |
| Type of payment |  | Cash-settled |
| Vesting period |  | January 1, 2019 ~ December 31, 2022 |
| Date of payment |  | 2023-01-01 |
| Fair value (\*1) |  | 12,406 Won |
| Valuation method |  | Black-Scholes Model |
| Expected dividend rate |  | 5.05% |
| Expected maturity date |  |  |
| Number of shares remaining | As of December 31, 2022 | 602,474 shares |
| Number of shares remaining | As of December 31, 2021 | 602,474 shares |
| Number of shares granted (\*2) | As of December 31, 2022 | 602,474 shares |
| Number of shares granted (\*2) | As of December 31, 2021 | 602,474 shares |
| Subject to |  | Shares granted for the year 2020 |
| Type of payment |  | Cash-settled |
| Vesting period |  | January 1, 2020 ~ December 31, 2023 |
| Date of payment |  | 2024-01-01 |
| Fair value (\*1) |  | 11,796 Won |
| Valuation method |  | Black-Scholes Model |
| Expected dividend rate |  | 5.05% |
| Expected maturity date |  | 1 year |
| Number of shares remaining | As of December 31, 2022 | 944,343 shares |
|  | As of December 31, 2021 | 944,343 shares |
| Number of shares granted (\*2) | As of December 31, 2022 | 944,343 shares |
|  | As of December 31, 2021 | 944,343 shares |
| Subject to |  | Shares granted for the year 2021 |
| Type of payment |  | Cash-settled |
| Vesting period |  | January 1, 2021 ~ December 31, 2024 |
| Date of payment |  | 2025-01-01 |
| Fair value (\*1) |  | 11,215 Won |
| Valuation method |  | Black-Scholes Model |
| Expected dividend rate |  | 5.05% |
| Expected maturity date |  | 2 years |
| Number of shares remaining | As of December 31, 2022 | 1,105,515 shares |
|  | As of December 31, 2021 | 1,105,515 shares |
| Number of shares granted (\*2) | As of December 31, 2022 | 1,105,515 shares |
|  | As of December 31, 2021 | 1,105,515 shares |
| Subject to |  | Shares granted for the year 2022 |
| Type of payment |  | Cash-settled |
| Vesting period |  | January 1, 2022 ~ December 31, 2025 |
| Date of payment |  | 2026-01-01 |
| Fair value (\*1) |  | 10,662 Won |
| Valuation method |  | Black-Scholes Model |
| Expected dividend rate |  | 5.05% |
| Expected maturity date |  | 3 years |
| Number of shares remaining | As of December 31, 2022 | 968,119 shares |
|  | As of December 31, 2021 |  |
| Number of shares granted (\*2) | As of December 31, 2022 | 968,119 shares |
|  | As of December 31, 2021 |  |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| (\*1) | As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated to measure the liability according to the Black Scholes model based on the base price at the time of each settlement.  |

---

---

| | |
|:---|:---|
| (\*2) | It is a system in which the amount of stock payable is determined at the beginning, and the payment rate is determined in accordance with the degree of achievement of the pre-set performance target. Performance is evaluated by long-term performance indicators such as relative shareholder return, net profit, return on equity (ROE), non-performing loan ratio, and job performance.  |

---

2) The Group accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of December 31, 2022 and 2021, the carrying amount of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 41,334 million won and 31,597 million won, respectively, including the carrying amount of liabilities related to key management of 17,494 million Won and 13,319 million Won, respectively. 

------

##### [**Table of Contents**](#toc)
**37.** **NON-OPERATING INCOME (EXPENSES)** 

(1) Details of gains or losses on valuation of investments in joint ventures and associates are as follows (Unit:
Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Gains on valuation of investments in joint ventures and associates | 98858 | 80268 |
|  Reversal of impairment losses of investments in joint ventures and associates |  | 1744 |
|  Losses on valuation of investments in joint ventures and associates | (11133) | (7405) |
|  Impairment losses of investments in joint ventures and associates | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17728) | (12411) |
|  Total | 69997 | &nbsp;&nbsp;&nbsp;&nbsp;62196 |

---

(2) Details of other non-operating income and expenses recognized are as
follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Other non-operating incomes | 158778 | 188129 |
|  Other non-operating expenses | &nbsp;&nbsp;&nbsp;&nbsp;(173924) | (160833) |
|  Total | (15146) | 27296 |

---

(3) Details of other non-operating income recognized are as follows (Unit:
Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Rental fee income | 22798 | 15056 |
|  Gains on disposal of investments in joint ventures and associates | 599 | 70834 |
|  Gains on disposal of premises and equipment, intangible assets and other assets | 55852 | 51083 |
|  Reversal of impairment loss of premises and equipment, intangible assets and other assets | 310 | 166 |
|  Others (\*) | 79219 | 50990 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;158778 | 188129 |

---

(\*) 'Others' for the year ended December 31, 2022 include 46,536 million Won of other special gain related to other provisions.

(4) Details of other non-operating expenses recognized are as follows
(Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Depreciation on investment properties | 3925 | 2809 |
|  Operating expenses on investment properties | 1448 | 1174 |
|  Losses on disposal of investments in joint ventures and associates | 3690 | 174 |
|  Losses on disposal of premises and equipment, intangible assets and other assets | 3177 | 3354 |
|  Impairment losses of premises and equipment, intangible assets and other assets | 260 | 656 |
|  Donation | 50547 | 39335 |
|  Others (\*) | 110877 | 113331 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;173924 | 160833 |

---

---

| | |
|:---|:---|
| (\*) | 'Others' for the year ended December 31, 2022 include 63,354 million Won of other special loss related to embezzlement incidents and 18,458 million Won of other special loss related to other provisions. 'Others' for the year ended December 31, 2021 include 75,921 million Won of other special loss related to other provisions.  |

---

------

##### [**Table of Contents**](#toc)
**38.** **INCOME TAX EXPENSE** 

(1) Details of income tax expenses are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Current tax expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current tax expense with respect to the current period | 1332636 | 884843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments recognized in the current period in relation to the tax expense of prior periods | (13982) | 2074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense directly attributable to other equity | 7852 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 1326506 | 886917 |
|  Deferred tax expense |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in deferred tax assets (liabilities) due to temporary differences | (234909) | 32776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense(income) directly attributable to equity | 68802 | 22177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 993 |  |
|  Sub-total | (165114) | 54953 |
|  Income tax expense | 1161392 | 941870 |

---

(2) Income tax expense reconciled to net income before income tax expense is as follows (Unit: Korean Won in
millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Net income before income tax expense | 4485374 | 3749241 |
|  Tax calculated at statutory tax rate (\*) | 1154285 | 960095 |
|  Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of income that is exempt from taxation | (73488) | (41335) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of expenses that are not deductible in determining taxable income | 26793 | 18933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments recognized in the current period in relation to the current tax of prior periods | (14088) | 3078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 67890 | 1099 |
|  Sub-total | 7107 | (18225) |
|  Income tax expense | 1161392 | 941870 |
|  Effective tax rate | 25.90% | 25.10% |

---

---

| | |
|:---|:---|
| (\*) | The applicable income tax rate: % up to 200 million Won in tax basis, 22% over 200 million Won to 20 billion Won, 24.2% over 20 billion Won to 300 billion Won and 27.5% over 300 billion Won.  |

---

------

##### [**Table of Contents**](#toc)
(3) Changes in deferred tax assets and liabilities for the years ended December 31, 2022 and 2021, are as
follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning<br>balance | Business<br>combination | Recognized<br>as income<br>(expense) | Recognized as<br>other<br>comprehensive<br>income<br>(expense) | Ending<br>Balance |
|  Gain (loss) on financial assets | 273356 |  | (55410) | 155199 | 373145 |
|  Gain on valuation using the equity method of accounting | 15260 |  | 11139 | (5844) | 20555 |
|  Gain (loss) on valuation of derivatives | (149805) |  | 159664 | 758 | 10617 |
|  Accrued income | (82482) |  | (7848) |  | (90330) |
|  Provision for loan losses | (34625) |  | 14520 |  | (20105) |
|  Loan and receivables written off | 8244 |  | (318) |  | 7926 |
|  Loan origination costs and fees | (194463) |  | 25370 |  | (169093) |
|  Defined benefit liability | 449615 |  | 15760 | (95590) | 369785 |
|  Deposits with employee retirement insurance trust | (432001) |  | (18437) | 216 | (450222) |
|  Provision for guarantee | 7424 |  | 904 |  | 8328 |
|  Other provision | 100571 |  | (13342) |  | 87229 |
|  Others (\*) | (116907) | (1473) | (33982) | 14063 | (70335) |
|  Net deferred tax assets | (155813) | (1473) | 165984 | 68802 | 77500 |

---

---

| | |
|:---|:---|
| (\*) | Among the deferred tax assets and liabilities classified as 'Others,' the deferred tax asset arising from unused tax losses amounts to 3,536 million won.  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning<br>balance | Recognized<br>as income<br>(expense) | Recognized as<br>other<br>comprehensive<br>income<br>(expense) | Ending<br>Balance |
|  Gain (loss) on financial assets | 276495 | (57187) | 54048 | 273356 |
|  Gain on valuation using the equity method of accounting | 33597 | (17282) | (1055) | 15260 |
|  Gain (loss) on valuation of derivatives | (142352) | (6755) | (698) | (149805) |
|  Accrued income | (66228) | (16254) |  | (82482) |
|  Provision for loan losses | (46495) | 11870 |  | (34625) |
|  Loan and receivables written off | 8221 | 23 |  | 8244 |
|  Loan origination costs and fees | (170196) | (24267) |  | (194463) |
|  Defined benefit liability | 442007 | 32890 | (25282) | 449615 |
|  Deposits with employee retirement insurance trust | (424906) | (7291) | 196 | (432001) |
|  Provision for guarantee | 9485 | (2061) |  | 7424 |
|  Other provision | 85173 | 15398 |  | 100571 |
|  Others (\*) | (118964) | 7089 | (5032) | (116907) |
|  Net deferred tax assets | (114163) | (63827) | 22177 | (155813) |

---

---

| | |
|:---|:---|
| (\*) | Among the deferred tax assets and liabilities classified as 'Others,' the deferred tax asset arising from unused tax losses amounts to 8,838 million won.  |

---

------

##### [**Table of Contents**](#toc)
(4) Unrealizable temporary differences are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Deductible temporary differences | 330376 | 303067 |
|  Tax loss carry forward | 49405 | 63908 |
|  Taxable temporary differences | (8898834) | (8025672) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | (8519053) | (7658697) |

---

No deferred income tax asset has been recognized for the deductible temporary difference of 325,601 million Won associated with investments in subsidiaries as of December 31, 2022, because it is not probable that the temporary differences will be reversed in the foreseeable future 4,775 million won associated with others, respectively, as of December 31, 2022, due to the uncertainty that these will be realized in the future.

No deferred income tax liability has been recognized for the taxable temporary difference of 8,898,835 million won associated with investment in subsidiaries as of December 31, 2022, due to the following reasons:

- The Group is able to control the timing of the reversal of the temporary difference.

- It is probable that the temporary difference will not be reversed in the foreseeable future.

As of December 31, 2022, the expected extinctive date of tax loss carry forward that are not recognized as deferred tax assets are as follows (Unit: Korean Won in millions):

<u>1 year or less</u> <u>1 – 2 years</u> <u>2 – 3 years</u> <u>More than 3 years</u> <br> Tax loss carry forward 36,967 10,828 — 1,610

(5) Details of accumulated deferred tax charged directly to other equity are as follows (Unit: Korean Won in
millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Gain on valuation of financial assets at FVTOCI | 213876 | 58677 |
|  Gain on valuation of equity method investments | (3766) | 2078 |
|  Gain on foreign currency translation of foreign operations | 9938 | 5689 |
|  Gain on valuation of hedge accounting of the net investment in foreign operations | 9815 |  |
|  Remeasurements of the net defined benefit liability | (20584) | 74790 |
|  Gain on derivatives designated as cash flow hedge | (86) | (843) |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;209193 | &nbsp;&nbsp;&nbsp;&nbsp;140391 |

---

(6) Current tax assets and liabilities are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Current tax assets |  | 53274 |  | 22598 |
|  Current tax liabilities |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;843,555 |  | &nbsp;&nbsp;&nbsp;&nbsp;584,491 |

---

------

##### [**Table of Contents**](#toc)
**39.** **EARNINGS PER SHARE ("EPS")** 

(1) Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number
of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | 2022 | 2021 |
|  Net income attributable to common shareholders | 3141680 | 2587936 |
|  Dividends to hybrid securities | (91756) | (66250) |
|  Net income attributable to common shareholders | 3049924 | 2521686 |
|  Weighted average number of common shares outstanding (Unit: million shares) | 728 | 724 |
|  Basic EPS (Unit: Korean Won) | 4191 | 3481 |

---

(2) The weighted average number of common shares outstanding is as follows (Unit: number of shares, days):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Period | Number of<br>shares | Dates<br>(Unit:<br>Day) | Accumulated number<br>of shares outstanding<br>during period |
|  Common shares issued at the beginning of the period | 2022-01-01 ~ 2022-12-31 | 728060549 | 365 | 265742100385 |
|  Treasury stocks | 2022-01-01 ~ 2022-12-31 | (343991) | 365 | (125556715) |
|  Sub-total (①) | Sub-total (①) | Sub-total (①) | Sub-total (①) | 265616543670 |
|  Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | 727716558 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Period | Number of<br>shares | Dates<br>(Unit:<br>Day) | Accumulated number<br>of shares outstanding<br>during period |
|  Common shares issued at the beginning of the period | 2021-01-01 ~ 2021-12-31 | 722267683 | 365 | 263627704295 |
|  Treasury stocks | 2021-01-01 ~ 2021-12-31 | (2) | 365 | (730) |
|  Issuance of new shares (comprehensive share exchange) | 2021-08-10 ~ 2021-12-31 | 5792866 | 144 | 834172704 |
|  Acquisition of treasury stocks | 2021-08-10 ~ 2021-12-31 | (343989) | 144 | (49534416) |
|  Sub-total (①) | Sub-total (①) | Sub-total (①) | Sub-total (①) | 264412341853 |
|  Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | 724417375 |

---

Diluted EPS is equal to basic EPS because there is no dilution effect for the years ended December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
**40.** **CONTINGENT LIABILITIES AND COMMITMENTS** 

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Confirmed guarantees |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee for loans | 39684 | 38897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances | 501921 | 622758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees in acceptances of imported goods | 97920 | 111195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other confirmed guarantees | 6847713 | 7215557 |
|  Sub-total | 7487238 | 7988407 |
|  Unconfirmed guarantees |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Local letters of credit | 150075 | 243072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letters of credit | 3014228 | 3186513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other unconfirmed guarantees | 1144498 | 778088 |
|  Sub-total | 4308801 | 4207673 |
|  Commercial paper purchase commitments and others | 125547 | 791729 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;11921586 | &nbsp;&nbsp;&nbsp;&nbsp;12987809 |

---

(\*) Includes financial guarantees of 3,095,091 million won and 3,960,383 million won as of December 31, 2022 and 2021, respectively.

(2) Details of unused loan commitments and others are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Loan commitments |  | 118172070 |  | 114414462 |
|  Other commitments (\*) |  | 7107828 |  | 5652557 |

---

---

| | |
|:---|:---|
| (\*) | As of December 31, 2022 and 2021, the amount of unsecured bills (purchase note sales) and discounts on electronic short-term bond sales (purchase) are 2,505,399 million won and 2,225,226 million won, respectively.  |

---

(3) Litigation case

Litigation case that the key Group is a defendant in a lawsuit pending (excluding fraud lawsuits and those lawsuits that are filed only to extend the statute of limitation, etc.) are 531 cases (litigation value of 577,128 million Won) and 475 cases (litigation value of 578,505 million Won) as of December 31, 2022 and 2021 respectively, and provisions for litigations are 33,877 million Won and 24,823 million Won.

------

##### [**Table of Contents**](#toc)
(4) Other commitments

1) The Group decided to enter into a stock sales agreement with a major shareholder of Woori Asset Trust Co., Ltd. (formerly, Kukje Asset Trust Co., Ltd.) to acquire 44.5% of interest (58.6% of voting rights) in July 2019, and to acquire additional 21.3% of interest (28.0% of voting rights) after a certain period. As a result, the Group acquired the interest of the first sales agreement in December 2019 and will acquire the second transaction stake at the end of March 2023. 

In regard to this acquisition, the Group recognized 174,780 million Won as other financial liabilities for the second sales agreement.

2) As of December 31, 2022, Woori Asset Trust Co., Ltd., a subsidiary, has agreed to carry out construction completion obligations for 87 constructions, which includes the construction of residential and commercial complexes in Busan (U-dong, Haeundae-gu). Land Trust responsible for Construction and Management is a trust that bears the obligation to fulfill the responsibility of the constructor and to compensate the loan financial institution for damages if the Group fails to fulfill the construction completion obligation. As of December 31, 2022, the total PF loan amount of PF loan institutions invested in the project of the Land Trust responsible for Construction and Management is 3,607,592 million Won. Although additional losses may occur in relation to the construction completion obligations, the financial statements as of December 31, 2022 do not reflect these effects since losses are unlikely and the amount cannot be estimated reliably. 

3) Pursuant to some contracts related to asset securitization, the Group utilizes various prerequisites as triggering events causing early redemption, limiting risks that investors bear due to change in asset quality. Breach of such triggering clause leads to an early redemption of the securitized bonds. 

4) As of December 31, 2022, Woori Asset Trust Co., Ltd, a subsidiary, is able to borrow part of its total business expense related to its 13 development trust contracts including Boutique Terrace Haeundae Hotel from trust accounts, and the maximum amount of additional loan amount (unused loan commitment) is 52,783 million Won. In relation to those projects, the Group's trust accounts loan is not unconditional payment obligation, and it would be judged by considering all related matters such as its own account and the fund balance plan for each trust projects. 

------

##### [**Table of Contents**](#toc)
**41.** **RELATED PARTY TRANSACTIONS** 

Related parties of the Group as of December 31, 2022 and 2021, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the years ended December 31, 2022 and 2021 are as follows. Please refer to Note 13 for the details of joint ventures and associates.

(1) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| Related parties | Related parties | Account title | December 31,<br>2022 | December 31,<br>2021 |
|  Associates | W Service Networks Co., Ltd. | Loans | 120 | 20 |
|  |  | Deposits due to customers | 3298 | 2832 |
|  |  | Accrued expenses | 7 | 6 |
|  |  | Other liabilities | 109 | 425 |
|  | Korea Credit Bureau Co., Ltd. | Loans | 2 | 2 |
|  |  | Deposits due to customers | 4450 | 1557 |
|  |  | Other liabilities | 40 |  |
|  | Korea Finance Security Co., Ltd. | Loans | 3433 | 3425 |
|  |  | Loss allowance | (46) | (6) |
|  |  | Deposits due to customers | 1764 | 1887 |
|  |  | Other liabilities | 6 | 2 |
|  | LOTTE CARD Co. Ltd. | Loans | 50000 | 3750 |
|  |  | Account receivables | 16 |  |
|  |  | Loss allowance | (30) | (39) |
|  |  | Other assets |  | 10 |
|  |  | Deposits due to customers | 35986 | 13482 |
|  |  | Other liabilities | 74 | 91 |
|  | K BANK Co., Ltd. | Loans | 3 | 99 |
|  |  | Account receivables | 31 | 29 |
|  |  | Other liabilities | 108156 | 84935 |
|  | Others (\*1) | Loans | 68660 | 73940 |
|  |  | Loss allowance | (34) | (124) |
|  |  | Other assets | 768 | 739 |
|  |  | Deposits due to customers | 3622 | 1063 |
|  |  | Other liabilities | 119 | 3 |

---

(\*1) Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, Woori Growth Partnerships New Technology Private Equity Fund, Partner One Value Up I Private Equity Fund, and etc., as of December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
(2) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | For the year December 31 | For the year December 31 |
| Related parties | Related parties | Account title | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |
|  Associates | W Service Network Co., Ltd. | Other income |  | 30 |
|  |  | Interest expenses | 14 | 7 |
|  |  | Fees expenses | 543 | 612 |
|  |  | Other expenses | 1907 | 1878 |
|  | Korea Credit Bureau Co., Ltd. | Interest expenses | 40 | 4 |
|  |  | Fees expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3730 | 3503 |
|  |  | Other expenses | 139 | 68 |
|  | Korea Finance Security Co., Ltd. | Interest income | 141 | 80 |
|  |  | Interest expenses | 3 | 2 |
|  |  | Provision of impairment losses due to credit loss | 44 | 1 |
|  |  | Other expenses | 52 | 92 |
|  | LOTTE CARD Co., Ltd. | Interest income | 83 | 196 |
|  |  | Fees income | 7701 | 10248 |
|  |  | Interest expenses | 1902 | 462 |
|  |  | Reveral of impairment losses due to credit loss | 27 | 59 |
|  | K BANK Co., Ltd. | Fees income | 698 | 1952 |
|  |  | Fees expenses | 937 | 636 |
|  | Others (\*) | Interest income | 713 | 679 |
|  |  | Fees income | 7138 | 5546 |
|  |  | Interest expenses | 10 | 17 |
|  |  | Reversal of impairment losses due to credit loss | 92 | 2 |
|  |  | Provision of impairment losses due to credit loss | 1 |  |

---

(\*) Others include Woori Growth Partnerships New Technology Private Equity Fund, Partner One Value Up I Private Equity Fund, and etc., as of December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
(3) Major loan transactions with related parties for the years ended December 31, 2022 and 2021 are as follows
(Unit: Korean Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
| Related parties | Related parties | Beginning<br>balance | Loan | Collection | Others | Ending<br>balance (\*) |
|  Associates | W Service Network Co., Ltd. | 20 | 352 | 252 |  | 120 |
|  | Korea Credit Bureau Co., Ltd. | 2 | 15 | 15 |  | 2 |
|  | Korea Finance Security Co., Ltd. | 3425 | 2407 | 2399 |  | 3433 |
|  | LOTTE CARD Co., Ltd. | 3750 | 50000 | 3750 |  | 50000 |
|  | K BANK Co., Ltd. | 99 | 315 | 411 |  | 3 |
|  | Godo Kaisha Oceanos 1 | 43033 | 41467 | 43033 | (1653) | 39814 |
|  | Woori Zip 1 | 12775 |  |  | (956) | 11819 |
|  | Woori Zip 2 | 18132 |  |  | (1356) | 16776 |
|  | Central Network Solutions Co., Ltd. |  | 251 |  |  | 251 |

---

(\*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
| Related parties | Related parties | Beginning<br>balance | Loan | Collection | Others | Ending<br>balance (\*) |
|  Associates | W Service Network Co., Ltd. | 21 | 248 | 249 |  | 20 |
|  | Korea Credit Bureau Co., Ltd. | 1 | 11 | 10 |  | 2 |
|  | Korea Finance Security Co., Ltd. | 3440 | 333 | 348 |  | 3425 |
|  | LOTTE CARD Co., Ltd. | 7500 |  | 3750 |  | 3750 |
|  | K BANK Co., Ltd. | 104 | 1769 | 1774 |  | 99 |
|  | Godo Kaisha Oceanos 1 | 44036 |  |  | (1003) | 43033 |
|  | Woori Zip 1 |  | 13121 |  | (346) | 12775 |
|  | Woori Zip 2 |  | 18624 |  | (492) | 18132 |

---

(\*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.

------

##### [**Table of Contents**](#toc)
(4) Details of changes in major deposits due to customers with related parties for the years ended
December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
| Related parties | Related parties | Beginning<br>balance | Increase | Decrease | Ending<br>balance (\*) |
|  Associates | W Service Networks Co., Ltd | 1180 | 1200 | 1180 | 1200 |
|  | Partner One Value Up I Private Equity Fund | 329 | 550 | 779 | 100 |
|  | Korea Credit Bureau Co., Ltd. |  | 3000 |  | 3000 |

---

(\*) Details of payment between related parties, demand deposit due to customers and etc. are excluded.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
| Related parties | Related parties | Beginning<br>balance | Increase | Decrease | Ending<br>balance (\*) |
|  Associates | W Service Networks Co., Ltd | 1180 | 1180 | 1180 | 1180 |
|  | Partner One Value Up I Private Equity Fund | 863 | 637 | 1171 | 329 |
|  | Korea Credit Bureau Co., Ltd. | 1000 |  | 1000 |  |

---

(\*) Details of payment between related parties, demand deposit due to customers and etc. are excluded.

(5) There are no major borrowing transactions with related parties for the years ended December 31, 2022 and
2021. (6) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| Warrantee | December 31,<br>2022 | December 31,<br>2021 | Warranty |
|  Korea Finance Security Co., Ltd. | 627 | 835 | Unused loan commitment |
|  Korea Credit Bureau Co., Ltd. | 33 | 33 | Unused loan commitment |
|  W Service Network Co., Ltd. | 60 | 180 | Unused loan commitment |
|  K BANK Co., Ltd. | 297 | 201 | Unused loan commitment |
|  LOTTE CARD Co. Ltd. | 450000 | 500000 | Unused loan commitment |
|  D-Custody Co., Ltd. | 10 |  | Unused loan commitment |

---

As of December 31, 2022 and 2021, the recognized payment guarantee provisions are 80 million won and 93 million won, respectively, in relation to the guarantees provided to the related parties above.

------

##### [**Table of Contents**](#toc)
(7) Amount of commitments with the related parties

---

| | | | |
|:---|:---|:---|:---|
| Warrantee | December 31,<br>2022 | December 31,<br>2021 | Warranty |
|  IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership | 4664 | 4664 | Securities purchase commitment |
|  WooriG Senior Loan General Type Private Investment Trust No.1 |  | 14284 | Securities purchase commitment |
|  Woori Seoul Beltway Private Special Asset Fund No.1 | 37146 | 39458 | Securities purchase commitment |
|  Woori-Q Corporate Restructuring Private Equity Fund | 12555 | 11109 | Securities purchase commitment |
|  Union Technology Finance Investment Association |  | 2250 | Securities purchase commitment |
|  Genesis Eco No.1 Private Equity Fund |  | 195 | Securities purchase commitment |
|  Genesis Environmental Energy Company 1st Private Equity Fund |  | 916 | Securities purchase commitment |
|  JC Assurance No.2 Private Equity Fund | 1351 | 1351 | Securities purchase commitment |
|  Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund | 325 | 425 | Securities purchase commitment |
|  WooriG Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2) | 39 | 669 | Securities purchase commitment |
|  BTS 2nd Private Equity Fund | 6974 |  | Securities purchase commitment |
|  STASSETS FUND III | 13500 |  | Securities purchase commitment |
|  Together Korea Government Private Securities Investment Trust No.3 | 990000 |  | Securities purchase commitment |

---

(8) Major investment and Recovery transactions

The details of major investment and recovery transactions with related parties for the year ended December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
| Related parties | Investment and<br>others (\*) | Recovery and<br>others (\*) |
|  Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 |  | 21606 |
|  Woori High Plus Bond Sec Feeder Inv Trust 3(USD) |  | 1052 |
|  Woori BANKPLUS IPO 10 FEEDER FUND 2(BALANCED BOND) | 200 |  |
|  Woori Two-year Bond Securities Investment Trust 2(Bond) |  | 213 |
|  Woori China Mainland Stock Securities Investment Trust H(Securities) |  | 443 |
|  Woori Long-term government bond securities Investment Trust No.1 |  | 1951 |
|  Woori Republic of Korea Treasury Bond Active ETF(Bond) | 3000 |  |
|  Woori K-New Opening Target Return Securities Investment Trust(Equity) | 200 |  |
|  Woori 2023 Maturity Securities Investment Trust(Bond) | 200 |  |
|  Woori 2024 Maturity Securities Investment Trust 1(Bond) | 200 |  |
|  Woori BIG SATISFACTION SHINJONG MMF 3RD | 320000 |  |
|  Woori MULTI RETURN PRIVATE EQUITY 1 |  | 8559 |
|  Woori 2024 December Maturity Securities Investment Trust 1(Bond) | 200 |  |
|  Woori Two-year Bond Securities Investment Trust 3(Bond) |  | 209 |
|  Woori G Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2) | 630 |  |

---

(\*) Investment and recovery transactions of associates are described in Note 13.(2)

------

##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
| Related parties | Investment and<br>others (\*) | Recovery and<br>others (\*) |
|  Woori China Mainland Stock Securities Investment Trust |  | 568 |
|  Woori Long-term government bond securities Investment Trust No.1 | 2000 |  |
|  Woori New MMF No.3 |  | 20105 |
|  Woori Multi-Return Securities Investment Trust 1 | 8000 |  |
|  Woori Multi-Return Securities Investment Trust 2 (Balanced Bond) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8000 |  |
|  Woori Short term Plus Securities Investment Trust | 200 |  |
|  Woori Smart New Deal 30 Target Conversion Securities Investment trust No.3 | 200 |  |
|  Woori Smart Balance Securities Investment Trust (Stock) | 500 |  |
|  Woori ACE Public Offering stock Alpha Securities Investment Trust (Bond Mixed) | 200 |  |
|  WooriG Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2) | 831 |  |
|  WooriG Public Offering stock 10 securities Investment Trust [Bond mixed] C(F) |  | 1064 |
|  WooriG IGIS Securities Investment Trust [Bond] C(F) |  | 1306 |

---

(\*) Investment and recovery transactions of associates are described in Note 13.(2)

(9) Compensation for key management is as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended<br>December 31 | For the years ended<br>December 31 |
|  | 2022 | 2021 |
|  Short-term employee salaries | 21990 | 20742 |
|  Retirement benefit service costs | 937 | 815 |
|  Share-based compensation | 4234 | 6970 |
|  Total | 27161 | 28527 |

---

Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 3,620 million won and 3,821 million won, as of December 31, 2022 and 2021 respectively and with respect to the assets, the Group has not recognized any allowance nor related impairment loss due to credit losses. Also, liabilities from transaction with key management amount to 12,660 million won and 11,542 million won, respectively, as of December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
**42.** **TRUST ACCOUNTS** 

(1) Trust accounts of the Woori Bank are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Total assets | Total assets | Operating income | Operating income |
|  | December 31,<br>2022 | December 31,<br>2021 | For the years ended December 31 | For the years ended December 31 |
|  | December 31,<br>2022 | December 31,<br>2021 | 2022 | 2021 |
|  Trust accounts | 71677258 | 69472846 | 1121069 | 876800 |

---

(2) Receivables and payables between the Woori Bank and trust accounts are as follows (Unit: Korean Won in
millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Receivables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust fees receivables | 42337 | 35448 |
|  Payables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits due to customers | 170417 | 234136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from trust accounts | 1804847 | 1621209 |
|  Total | 1975264 | 1855345 |

---

(3) Significant transactions between the Woori Bank and trust accounts are as follows (Unit: Korean Won in
millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended December 31 | For the years ended December 31 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |
|  Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust fees | 131656 | 117459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Termination fees | 1158 | 10599 |
|  Total | 132814 | 128058 |
|  Expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses on deposits due to customers | 619 | 503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses on borrowings from trust accounts | 38583 | 11391 |
|  Total | 39202 | 11894 |

---

------

##### [**Table of Contents**](#toc)
(4) Principal guaranteed trusts and principal and interest guaranteed trusts are as follows;

1) The carrying amount of principal guaranteed trusts and principal and interest guaranteed trusts that Woori Bank provides are as follows (Unit: Korean Won in millions): 

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Partial principal guaranteed trusts |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal trust | 8230 | 8932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate trust | 446 | 627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit purpose | 1551 | 1558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 10227 | 11117 |
|  Principal guaranteed trusts |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Old-age pension trusts | 2790 | 3004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal pension trusts | 460839 | 486203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension trusts | 687971 | 749317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement trusts | 26563 | 28354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New personal pension trusts | 6792 | 7282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New old-age pension trusts | 950 | 1076 |
|  Sub-total | 1185905 | 1275236 |
|  Principal and interest guaranteed trusts |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Development trusts | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unspecified money trusts | 335 | 348 |
|  Sub-total | 354 | 367 |
|  Total | 1196486 | 1286720 |

---

2) The amounts that the Woori Bank must pay by the operating results of the principal guaranteed trusts or the principal and interest guaranteed trusts are as follows (Unit: Korean Won in millions): 

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Liabilities for the account (subsidy for Trust account adjustment) — 2

------

##### [**Table of Contents**](#toc)
**43.** **LEASES** 

(1) Lessor

1) Finance lease

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① The total investment in finance lease and the present value of the minimum lease payments to be recovered are
as follows: (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 |
|  | Total investment in lease | Net investment in lease |
|  Within one year | 160181 | 146749 |
|  After one year but within two years | 231075 | 215497 |
|  After two years but within three years | 366599 | 338709 |
|  After three years but within four years | 501034 | 452099 |
|  After four years but within five years | 368420 | 314696 |
|  After five years | 19 | 18 |
|  Total | 1627328 | 1467768 |
|  | December 31, 2021 | December 31, 2021 |
|  | Total investment in lease | Net investment in lease |
|  Within one year | 70740 | 69030 |
|  After one year but within two years | 133398 | 124904 |
|  After two years but within three years | 239895 | 218911 |
|  After three years but within four years | 367991 | 331685 |
|  After four years but within five years | 486490 | 429034 |
|  After five years | 2 | 1 |
|  Total | 1298516 | 1173565 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② The unrealized interest income of the finance lease is as follows. (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Total investment in lease | 1627328 | &nbsp;&nbsp;&nbsp;&nbsp;1298516 |
|  Net investment in lease | 1467768 | 1173565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value of minimum lease payments | 1467768 | 1173565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value of unguaranteed residual value |  |  |
|  Unearned interest income | 159560 | 124951 |

---

------

##### [**Table of Contents**](#toc)
2) Operating lease

①The details of operating lease assets are as follows: (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Prepaid lease assets | 3121 | 4579 |
|  Operating lease assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition cost | 3320275 | 2299968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated depreciation | (729818) | (521660) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net carrying value | 2590457 | 1778308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 2593578 | 1782887 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② The details of changes in operating lease assets as of December 31, 2022 are as follows and there is no
details of changes in operating lease assets as of December 31, 2021 (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Beginning balance | 1778308 | 1116175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition | 1321251 | 984093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal | (138189) | (93138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation | (388895) | (250971) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 17982 | 22149 |
|  Ending balance | 2590457 | 1778308 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ The future lease payments to be received under the lease contracts are as follows (Unit: Korean Won in
millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Within one year | 567998 | 377153 |
|  After one year but within two years | 526899 | 347539 |
|  After two years but within three years | 420244 | 262176 |
|  After three years but within four years | 275080 | 170391 |
|  After four years but within five years | 86606 | 79555 |
|  Total | 1876827 | 1236814 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ There is no adjusted lease payments recognized as profit or loss for the years ended December 31, 2022 and
2021. - 193 -

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Lessee

1) The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Lease payments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Within one year | 170781 | 151259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After one year but within five years | 152145 | 155707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After five years | 33007 | 38275 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;355933 | &nbsp;&nbsp;&nbsp;&nbsp;345241 |

---

2) Total cash outflows from lease are as follows (Unit: Korean Won in millions): 

---

| | | |
|:---|:---|:---|
|  | For the years ended<br>December 31 | For the years ended<br>December 31 |
|  | 2022 | s2021 |
|  Total cash outflows from lease | 192540 | 180884 |

---

3) Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the years ended<br>December 31 | For the years ended<br>December 31 |
|  | 2022 | 2021 |
|  Lease payments for short-term leases | 1469 | 1598 |
|  Lease payments for which the underlying asset is of low value | 1316 | 1488 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2785 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3086 |

---

Variable lease payments that were not included in the measurement of lease liabilities for the years ended December 31, 2022 were 5,470 million Won.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Group uses a practical expedient that does not assess whether it is a lease change to the rend discount
incurred directly as a result of COVID-19. Accordingly, the amount recognized in profit or loss during the reporting period is 15,880 million Won, to reflect changes in lease payments arising from the
rent concession.

------

##### [**Table of Contents**](#toc)
**44.** **BUSINESS COMBINATION** 

The Group acquired 2,193,552,006 shares, equivalent to 82.03% of the total issued shares of PT Batavia Prosperindo Finance Tbk, an Indonesian listed company, of 2,673,995,362 shares on August 31, 2022 as the acquisition date for the purpose of entering the local financial industry in Indonesia , and changed its name to PT Woori Finance Indonesia Tbk.

1) As of the acquisition date, the transfer price, acquisition assets, liabilities, and non-controlling interests related to the business combination are as follows (Unit: Korean Won in millions):

---

| | |
|:---|:---|
|  | Amount |
|  Fair value of transfer price |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash | 130424 |
|  Amount recognized as assets and liabilities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 5607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 95587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 24096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 25932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 10150 |
|  Fair value of identifiable net assets | 89208 |
|  Non-controlling interests (\*1) | 16454 |
|  Goodwill | 57670 |

---

---

| | |
|:---|:---|
| (\*1) | Represent amount of proportionate interest of the fair value of indentifiable net assets.  |

---

2) Assuming that the acquisition date of PT Woori Finance Indonesia Tbk by the Group is the commencement date of the financial statements, the consolidated income and consolidated net income are KRW 1,856,941 million and KRW 207,495 million, respectively.

**45.** **EVENTS AFTER THE REPORTING PERIOD** 

On February 27, 2023, the Group signed a stock sale contract to acquire a 52% stake in Daol Investment Co., Ltd. and will be included into a subsidiary in March 2023.

## Exhibit 99.2

**Exhibit 99.2** 

**WOORI FINANCIAL GROUP INC.** 

SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021

------

---

| | |
|:---|:---|
|  | **Page(s)** |
|  **WOORI FINANCIAL GROUP INC.** |  |
|  [**Independent Auditor's Report**](#ex99_2473977_1) | 1-3 |
|  Separate Financial Statements |  |
|  [Separate Statements of Financial Position](#ex99_2473977_2) | 5 |
|  [Separate Statements of Comprehensive Income](#ex99_2473977_3) | 6 |
|  [Separate Statements of Changes in Equity](#ex99_2473977_4) | 7 |
|  [Separate Statements of Cash Flows](#ex99_2473977_5) | 8-9 |
|  [Notes to the Separate Financial Statements](#ex99_2473977_6) | 10-66 |
|  **[Report on Independent Auditor's Audit of Internal Control over Financial Reporting](#ex99_2473977_7)** | 67-68 |
|  **[Operating Status Report of Internal Control over Financial Reporting](#ex99_2473977_8)** | 69 |

---

------

![LOGO](g473977dsp3.jpg)

**Independent Auditor's Report** 

(English Translation of a Report Originally Issued in Korean)

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

**Opinion** 

We have audited the accompanying separate financial statements of Woori Financial Group Inc. (the Company), which comprise the separate statements of financial position as of December 31, 2022 and 2021, and the statements of comprehensive income, separate statements of changes in equity and separate statements of cash flows for the years then ended, and notes to the separate financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of Woori Financial Group Inc. as of December 31, 2022 and 2021, and its separate financial performance and its separate cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

We also have audited, in accordance with Korean Standards on Auditing, the Company's Internal Control over Financial Reporting as of December 31, 2022, based on *Conceptual Framework for Designing and Operating Internal Control over Financial Reporting,* and our report dated March 7, 2023, expressed an unqualified opinion.

**Basis for Opinion** 

We conducted our audits in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the *Auditor's Responsibilities for the Audit of the Financial Statements* section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Key Audit Matter** 

No key audit matter is identified to be described in this audit report.

**Other Matter** 

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied in other countries.

![LOGO](g473977dsp3a.jpg)

------

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

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

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

**Auditor's Responsibilities for the Audit of the Financial Statements** 

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

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

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

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

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

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

------

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

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

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

The engagement partner on the audit resulting in this independent auditor's report is Sung-Jae Lim, Certified Public Accountant.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 7, 2023

This report is effective as of March 7, 2023, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances,

------

**WOORI FINANCIAL GROUP INC.** 

SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022 AND 2021 AND FOR THE YEAR ENDED DECEMBER 31, 2022 AND 2021

The accompanying separate financial statements including all footnote disclosures were

prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

**Tae Seung Son** 

**President and Chief Executive Officer** 

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

(Phone Number) 02-2125-2000

------

**WOORI FINANCIAL GROUP INC.** 

**SEPARATE STATEMENTS OF FINANCIAL POSITION** 

**AS OF DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2022 | December 31,<br>2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
| **ASSETS** |  |  |
|  Cash and cash equivalents (Notes 5 and 32) | 313361 | 578725 |
|  Financial assets at fair value through profit or loss ("FVTPL") (Notes 4, 6, 9 and 19) | 689 |  |
|  Financial assets at fair value through other comprehensive income ("FVTOCI") (Notes 4, 7 and 9) | 312771 | 146294 |
|  Loans and other financial assets at amortized cost (Notes 4, 8, 9 and 32) | 2041877 | 633110 |
|  Investments in subsidiaries (Notes 10 and 32) | 22394915 | 22144915 |
|  Premises and equipment (Notes 11 and 32) | 11052 | 7790 |
|  Intangible assets (Note 12) | 4859 | 5171 |
|  Net defined benefit asset (Note 17) | 5947 | 1516 |
|  Current tax assets (Note 29) | 14350 | 856 |
|  Deferred tax assets (Note 29) | 13433 | 6454 |
|  Other assets (Note 13) | 322 | 151 |
|  Total assets | 25113576 | 23524982 |
| **LIABILITIES** |  |  |
|  Financial liabilities at fair value through profit or loss ("FVTPL") (Notes 4, 9, 14 and 19) |  | 329 |
|  Debentures (Notes 4, 9 and 15) | 1447762 | 1367429 |
|  Provisions (Note 16) | 487 | 394 |
|  Current tax liabilities (Note 29) | 721795 | 468305 |
|  Other financial liabilities (Notes 4, 9, 18, 32 and 33) | 46039 | 22988 |
|  Other liabilities (Note 18) | 591 | 548 |
|  Total liabilities | 2216674 | 1859993 |
|  **EQUITY (Note 20)** |  |  |
|  Capital stock | 3640303 | 3640303 |
|  Hybrid securities | 3112273 | 2294288 |
|  Capital surplus | 10909281 | 10909281 |
|  Other equity | (26186) | (3874) |
|  Retained earnings | 5261231 | 4824991 |
|  Total equity | 22896902 | 21664989 |
|  Total liabilities and equity | 25113576 | 23524982 |

---

The accompanying notes are part of this financial statements.

------

**WOORI FINANCIAL GROUP INC.** 

**SEPARATE STATEMENTS OF COMPREHENSIVE INCOME** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
|  Interest income | 25614 | 4236 |
|  Interest expense | (30644) | (26481) |
|  **Net interest loss** (Notes 9, 22 and 32) | **(5030)** | **(22245)** |
|  Fees and commissions income | 1596 | 1306 |
|  Fees and commissions expense | (16655) | (13891) |
|  **Net fees and commissions loss** (Notes 23 and 32) | **(15059)** | **(12585)** |
|  Dividend income (Notes 24 and 32) | 1272393 | 692605 |
|  Net gain (loss) on financial instruments at FVTPL (Notes 9 and 25) | 1018 | (7576) |
|  Reversal (Provision) of impairment losses due to credit loss (Notes 26 and 32) | (244) | 76 |
|  General and administrative expenses (Notes 27 and 32) | (67451) | (59725) |
|  **Operating income** | **1185627** | **590550** |
|  **Non-operating expense** (Note 28) | **(1363)** | **(305)** |
|  **Net income before income tax expense** | **1184264** | **590245** |
|  Income tax income (expense) (Note 29) | (1015) | 4607 |
|  **Net income** | **1183249** | **594852** |
|  Net loss on valuation of equity securities at FVTOCI | (24676) | (2408) |
|  Remeasurement loss related to defined benefit plan | 2364 | 78 |
|  **Items that will not be reclassified to profit or loss:** | **(22312)** | **(2330)** |
|  **Other comprehensive loss, net of tax** | **(22312)** | **(2330)** |
|  **Total comprehensive income** | **1160937** | **592522** |
|  **Earnings per share** (Note 30) |  |  |
|  Basic and diluted earnings per share (Unit: In Korean Won) | **1499** | **730** |

---

The accompanying notes are part of this financial statements.

------

**WOORI FINANCIAL GROUP INC.** 

**SEPARATE STATEMENTS OF CHANGES IN EQUITY** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Capital<br>stock | Capital<br>surplus | Hybrid<br>securities | Other<br>equity | Retained<br>earnings | Total<br>equity |
|  | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) | (Korean Won in millions) |
|  **January 1, 2021** | 3611338 | 14874084 | 1895322 | (1518) | 664746 | 21043972 |
|  Total comprehensive income |  |  |  |  |  |  |
|  Net income |  |  |  |  | 594852 | 594852 |
|  Net loss on valuation of equity securities at FVTOCI |  |  |  | (2408) |  | (2408) |
|  Remeasurement gain related to defined benefit plan |  |  |  | 78 |  | 78 |
|  Transactions with owners |  |  |  |  |  |  |
|  Comprehensive stock exchange | 28965 | 35197 |  |  |  | 64162 |
|  Acquisition of treasury stock |  |  |  | (26) |  | (26) |
|  Dividends to common stocks |  |  |  |  | (368357) | (368357) |
|  Issuance of hybrid securities |  |  | 398966 |  |  | 398966 |
|  Dividends to hybrid securities |  |  |  |  | (66250) | (66250) |
|  Transfer of capital surplus to retained earnings |  | (4000000) |  |  | 4000000 |  |
|  **December 31, 2021** | 3640303 | 10909281 | 2294288 | (3874) | 4824991 | 21664989 |
|  **January 1, 2022** | 3640303 | 10909281 | 2294288 | (3874) | 4824991 | 21664989 |
|  Total comprehensive income |  |  |  |  |  |  |
|  Net income |  |  |  |  | 1183249 | 1183249 |
|  Net loss on valuation of equity securities at FVTOCI |  |  |  | (24676) |  | (24676) |
|  Remeasurement gain related to defined benefit plan |  |  |  | 2364 |  | 2364 |
|  Transactions with owners |  |  |  |  |  |  |
|  Dividends to common stocks |  |  |  |  | (655252) | (655252) |
|  Issuance of hybrid securities |  |  | 817985 |  |  | 817985 |
|  Dividends to hybrid securities |  |  |  |  | (91757) | (91757) |
|  **December 31, 2022** | 3640303 | 10909281 | 3112273 | (26186) | 5261231 | 22896902 |

---

The accompanying notes are part of this financial statements.

------

**WOORI FINANCIAL GROUP INC.** 

**SEPARATE STATEMENTS OF CASH FLOWS** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 1183249 | 594852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to net income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (income) | 1015 | (4607) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | (25614) | (4236) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 30644 | 26481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | (1272393) | (692605) |
|  | (1266348) | (674967) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments for profit/loss items not involving cash flows: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (Reversal) of impairment losses due to credit loss | 244 | (76) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (Gain) on valuation of financial instruments at FVTPL | (1018) | 7576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit | 2450 | 2306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 6517 | 5809 |
|  | 8193 | 15615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost | (2007) | (393) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Assets | (171) | (151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit liability | (3665) | (206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | 7879 | 3113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 42 | (21) |
|  | 2078 | 2342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income received | 13192 | 3946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense paid | (29831) | (25371) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends received | 1271276 | 692605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax paid | (1413) | (795) |
|  | 1253224 | 670385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash inflow from operating activities | 1180396 | 608227 |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net decrease (increase) on other investment assets | (1140000) | 240000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of investments in subsidiaries | (250000) | (518384) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial assets at FVTOCI | (200000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of premises and equipment | (2210) | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets | (977) | (1061) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase on guarantee deposits for leases | (241) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash outflow from investing activities | (1593428) | (279496) |

---

(Continued)

------

**WOORI FINANCIAL GROUP INC.** 

**SEPARATE STATEMENTS OF CASH FLOWS** 

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |
|  | (Korean Won in millions) | (Korean Won in millions) |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debentures | 79764 | 219489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities | 817985 | 398966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of treasury stock |  | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of lease liabilities | (3072) | (2864) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New stock issuance cost |  | (140) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to hybrid securities | (91757) | (66250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid | (655252) | (368357) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash inflow from financing activities | 147668 | 180818 |
|  **Net increase in cash and cash equivalents** | (265364) | 509549 |
|  **Cash and cash equivalents, beginning of the period** | 578725 | 69176 |
|  **Cash and cash equivalents, end of the period (Note 5)** | 313361 | 578725 |

---

The accompanying notes are part of this financial statements.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**AS OF DECEMBER 31, 2022 AND 2021** 

**1.** **GENERAL** 

(1) Summary of the parent company

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

The details of stock transfer from the Company and subsidiaries as of incorporation are as follows (Unit: Number of shares):

---

| | | | |
|:---|:---|:---|:---|
| Stock transfer company | Total number of<br>issued shares | Exchange ratio<br>per share | Number of Parent<br>company's stocks |
|  Woori Bank | 676000000 | 1.0000000 | 676000000 |
|  Woori FIS Co., Ltd. | 4900000 | 0.2999708 | 1469857 |
|  Woori Finance Research Institute Co., Ltd. | 600000 | 0.1888165 | 113289 |
|  Woori Credit Information Co., Ltd. | 1008000 | 1.1037292 | 1112559 |
|  Woori Fund Service Co., Ltd. | 2000000 | 0.4709031 | 941806 |
|  Woori Private Equity Asset Management Co., Ltd. | 6000000 | 0.0877992 | 526795 |

---

As of August 1, 2019, the Company acquired a 73% interest in Woori Asset Management Co. (Formerly Tongyang Asset Management Corp.). The remaining payment was completed in August 1, 2019 after the request for the change of major shareholder was approved by the Financial Service Commission in July, 2019 and the Company gained 100% control of Woori Global Asset Management Co., Ltd. (formerly ABL Global Asset Management Co., Ltd), and included it as a consolidated subsidiary.

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

As of December 30, 2019, the Company acquired 67.2% interests (excluding treasury stock, 51.0% when including treasury stock) in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.)

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

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

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

As of January 7, 2022, Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies, was established (100% stake, 200 billion won in stock payments) and incorporated as a subsidiary.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**2.** **BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES** 

(1) Basis of presentation

The Company's separate financial statements are prepared in accordance with Korean International Financial Reporting Standards ("K-IFRS"). Significant accounting policies applied in the preparation of the financial statements are described below.

The Company is preparing its financial statements in accordance with the K-IFRS, and the separate financial statements are prepared in accordance with K-IFRS 1027 *'Separate Financial Statements'*. The financial statements of the parent, associate or joint venture represent the investment assets in a manner that is based on direct equity investments, not based on the reported performance and net assets of the investee.

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

Meanwhile, the financial statements of the Company were initially approved by the Board of Directors on February 8, 2023, were revised and approved on March 3, 2023 and the final approval will be made in the annual general shareholders' meeting on March 24, 2023.

1) The new standards and interpretations introduced from the current term and the resulting changes in accounting policies are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Amendments to K-IFRS 1103 ' *Business Combination'* – Reference to the Conceptual Framework

The amendments update a reference of definition of assets and liabilities qualify for recognition in revised Conceptual Framework for Financial Reporting. However, the amendments add an exception for the recognition of liabilities and contingent liabilities within the scope of K-IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets, and K-IFRS 2121 Levies. The amendments also confirm that contingent assets should not be recognized at the acquisition date. The amendment does not have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Amendments to K-IFRS 1016 ' *Property, Plant and Equipment'* – Proceeds before intended use

The amendments prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while the entity is preparing the asset for its intended use. Instead, the entity will recognize the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendment does not have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Amendments to K-IFRS 1037 ' *Provisions, Contingent Liabilities and Contingent Assets* ' – Onerous Contracts: Cost of Fulfilling a Contract

The amendments clarify that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts when assessing whether the contract is onerous. The amendment does not have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Annual Improvements to K-IFRS 2018-2020

Annual improvements of K-IFRS 2018-2020 Cycle should be applied for annual periods beginning on or after January 1, 2022, and earlier application is permitted. The annual improvement includes some amendments to K-IFRS 1101 'First time Adoption of Korean International Financial Reporting Standards', K-IFRS 1109 'Financial Instrument's, K-IFRS 1116 'Lease', K-IFRS 1041 'Agriculture'.

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

- K-IFRS 1101 '*First time Adoption of Korean International Financial Reporting Standards'*- Subsidiaries that are first-time adopters

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

K-IFRS 1109 '*Financial Instrument's* - Fees related to the 10% test for derecognition of financial liabilities <br>

- K-IFRS 1116 *'Leases'*- Lease Incentive

- K-IFRS 1041 '*Agriculture'* - Measuring fair value

2) The details of K-IFRS that have been issued and published as of December 31, 2022 but have not yet reached the effective date, and have not been early adopted by the group are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Amendments to K-IFRS 1001 *'Presentation of Financial Statements'* – Classification of Liabilities as Current or Non-current

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Amendments to K-IFRS 1001 *'Presentation of Financial Statements'* - Disclosure of Accounting Policy

To define and disclose material accounting policies has been amended. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Amendments to K-IFRS 1001 ' *Presentation of Financial Statements'* - Disclosure of valuation gains or losses on financial liabilities with condition to adjust exercise price

The amendments require disclosure of valuation gains or losses (limited to those recognized in the profit or loss) of the conversion options or warrants (or financial liabilities including them), if all or part of the financial instrument with exercise price that is adjusted depending on the issuer's share price change is classified as financial liability as defined in paragraph 11 (2) of K-IFRS 1032. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Amendments to K-IFRS 1008 *'Accounting Policies, Changes in Accounting Estimates and Errors'* - Definition of Accounting Estimates

The amendments have defined accounting estimates and clarified how to distinguish them from changes in accounting policies. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Amendments to K-IFRS 1012 *'Income Taxes'* - deferred
tax related to assets and liabilities arising from a single transaction

Additional phrase 'the temporary difference to be added and the temporary difference to be deducted do not occur in the same amount' has been added to initial recognition exception for a transaction in which an asset or liability is initially recognized. These amendments apply for annual periods beginning on or after January 1, 2023, and early application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(2) Investments in subsidiaries and associates in separate financial statements

The Company selects and processes the cost method in accordance with K-IFRS 1027 for investments in subsidiaries, associates and jointly controlled entities, except for those classified as held for sale in accordance with K-IFRS 1105 *'Non-current Assets Held for Sale and Discontinued Operations'*. Dividends received from subsidiaries, associates and jointly controlled entities are recognized in profit or loss as dividend income when the right to receive dividends is established.

(3) Revenue recognition

K-IFRS 1115 requires the recognition of revenues based on transaction price allocated to the performance obligation when or as the Company performs the obligation to the customer. Revenues other than those from contracts with customers, such as interest revenue, are measured through the effective interest rate method.

1) Revenues from contracts with customers

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

2) Revenues from sources other than contracts with customers

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

The effective interest method is a method of calculating the amortized cost of debt securities (or group of financial assets) and of allocating the interest income over the expected life of the asset. The effective interest rate is the rate that exactly discounts estimated future cash flows to the instrument's initial total carrying amount over the expected period, or shorter if appropriate. Future cash flows include commissions and cost of reward points (limited to the primary component of effective interest rate) and other premiums or discounts that are paid or received between the contractual parties, and future cash flows exclude expected credit loss when calculating the effective interest rate. All contractual terms of a financial instrument are considered when estimating future cash flows.

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

3) Dividend income

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

(4) Accounting for foreign currencies

The Company's separate financial statements are presented in Korean Won, which is the functional currency of the Company. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at its prevailing exchange rates at the date.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(5) Cash and cash equivalents

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

(6) Financial assets and financial liabilities

1) Financial assets

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Business model

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Contractual cash flows

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

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

Conditions that lead to modification of timing or amount of cash flows <br>

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

- Early payment features and maturity extension features

- Contractual terms that limit the Company's claim on cash flows arising from certain assets

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Financial assets at FVTPL

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Financial assets at FVTOCI

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Financial assets at amortized cost

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

2) Financial liabilities

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

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

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

Financial liabilities not classified as financial liabilities at FVTPL are measured at amortized cost. The Company is classifying liabilities such as borrowings etc. as financial liabilities at amortized cost.

3) Reclassification

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

4) Derecognition

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

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

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

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

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

5) Fair value of financial instruments

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

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

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

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

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

Derivatives and equity securities without marketability are generally recognized at an amount computed by an independent appraiser. The Company uses the amount determined by the independent appraiser. The Company verifies the prices obtained from appraisers in various ways, including the evaluation of independent appraisers' competency, indirect verification through comparison between appraisers' price and other available market information, and reperformed by employees who have knowledge of valuation models and assumptions that appraisers used.

6) Expected credit losses on financial assets

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

- Financial assets at amortized cost

- Debt instruments measured at FVTOCI

- Contract assets as defined by K-IFRS 1115

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

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

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Measurement of expected credit losses on financial asset at amortized cost

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Measurement of expected credit losses on financial asset at FVTOCI

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

(7) Offsetting financial instruments

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

(8) Premises and equipment

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

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

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

---

| | | |
|:---|:---|:---|
|  | Useful life | Useful life |
|  Leasehold Improvement |  | 5 years |
|  Equipment and Vehicles |  | 5 years |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

(9) Intangible assets and goodwill

The Company is recognizing intangible assets measured at the manufacturing cost or acquisition cost plus additional incidental expenses less accumulated amortization and accumulated impairment losses. The Company's intangible asset are amortized over the following economic lives using the straight-line method. However, for some intangible assets, the period of time that is expected to be available is not predictable, so the useful life of some intangible assets is assessed as indefinite and not depreciated.

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

---

| | | |
|:---|:---|:---|
|  | Useful life | Useful life |
|  Software |  | 1~5 years |
|  Development cost |  | 5 years |

---

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

(10) Impairment of non-monetary assets

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

(11) Derivative instruments

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

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

Derivatives with a positive fair value(+) are recognized as financial assets, and derivatives with a negative fair value(-) are recognized as financial liabilities. Derivatives in financial statements are not offset unless they have a legally enforceable right to set-off or intend to set-off.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(12) Provisions

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

The Company recognizes the expenses incurred in recovering the leased asset to its original state, under the terms of the lease, as a provision at the commencement date of lease or at a specific period of time when the asset is liable as a result of its use. The provision is measured as the best estimate of the expenditure required to recover the asset and is regularly reviewed and adapted to the new circumstances.

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

The balance of provisions is reviewed at the end of each reporting period and adjusted to reflect the best estimate as of the end of the reporting period.

(13) Equity instruments issued by the Company

1) Capital and compound financial instruments

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

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

2) Hybrid securities

In case of hybrid securities that have the unconditional right to avoid contractual obligations, such as to deliver cash or other financial assets related to financial instruments, they are classifies as equity instruments and presented as part of equity.

(14) Employee benefits and pensions

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

The Company is operating defined benefit plans. For defined benefit plans, the defined benefit liability is calculated through an actuarial assessment using the projected unit credit method every end of the reporting period, conducted by professional actuaries. Remeasurement, comprising actuarial gains and losses, the return on plan assets (excluding interest), and the effect of the changes to the asset ceiling (if applicable) is reflected immediately in the separate statement of financial position with a charge or credit recognized in other comprehensive income in the period in which they occur.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

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

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

Liabilities for termination benefits are recognized at the earlier of either 1) the date when the Company is no longer able to cancel its proposal for termination benefits or 2) the date when the Company has recognized the cost of restructuring that accompanies the payment of termination benefits.

(15) Income taxes

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

The Company, as a consolidation group for its wholly-owned subsidiaries applies consolidated tax return approach, in which the Company and its subsidiaries are consolidated into a single tax base and tax amount. The Company determined whether temporary differences are realizable by considering the Company and each subsidiary's future taxable income. For the changes in deferred income tax asset (liability), the Company recognized income tax expense (benefit), excluding the amounts that are directly adjusted from equity. Also, as the Company became the consolidation entity for tax filings and tax returns, it recognized the total amount of income tax payables as liabilities and individual tax amounts to be received from each of its wholly-owned subsidiaries as receivables.

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

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

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

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

(16) Earnings per share ("EPS")

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

(17) Share-based payments

For cash-settled share-based payment transactions that provide cash in return for the goods or services received, the Company measures the goods or services received, and the corresponding liability at the fair value and recognizes as employee benefit expenses and liabilities during the vesting period.

The fair value of the liability is remeasured at the end of each reporting period and the settlement date until the liability is settled, and changes in fair value are recognized as employee benefits.

(18) Leases

1) The Company determines whether the contract is, or contains, a lease at the date of initial application. A contract is or contains a lease if the right to control the use of an identified asset is transferred in exchange for the consideration received for a period of time. In determining whether a contract transfers control of the use of the identified asset, the Company uses the definition of lease in K-IFRS 1116. 

2) Lessee 

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

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

At the commencement date, a lease liability is measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if the rate can be readily determined. If the rate cannot be readily determined, the Company's incremental borrowing rate can be used. Generally, the Company uses incremental borrowing rate as a discount rate.

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

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

- Fixed payments (including in-substance fixed payments)

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

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

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

A lease liability is subsequently measured by increasing the carrying amount to reflect interest rate on the lease liability and reducing the carrying amount to reflect the lease payments made. A lease liability is remeasured when future lease payments change, depending on the changes in an index or a rate, change in amounts expected to be payable due to residual value guarantees, assessment of whether the Company is reasonably certain to exercise the purchase option and extension option, the Company is not reasonably certain to exercise the termination options.

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

The company consider all relevant facts and circumstances that lead to economic incentives not to exercise the extension option or not exercising the termination option. The period of the extension option (or the period of the termination option) is included in the lease period only when it is reasonably certain that the lessee will exercise the extension option (or will not).

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

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

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**3.** **SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS** 

The outbreak of COVID-19 has had a significant impact on the global economy including Korea. Financial and economic shocks may have negative impacts on the Company's financial condition and results of operations in various forms both domestically and internationally. The Company will continue to evaluate future prospects related to the duration of COVID-19's economic impact and the government's policies.

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

(1) Income taxes

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

(2) Valuation of financial instruments

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

As described in Note 2, (6) 5), 'Fair value of financial instruments', when valuation techniques are used to determine the fair value of a financial instrument, various general techniques are used, and various types of assumptions and variables are incorporated during the process.

(3) Impairment of financial instruments

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

---

| | | | |
|:---|:---|:---|:---|
| | Stage 1 | Stage 2 | Stage 3 |
| | Credit risk has not significantly increased since initial<br>recognition(\*) | Credit risk has significantly increased since initial<br>recognition | Credit has been impaired |
|  Allowance for expected credit losses | Expected 12-month credit losses:<br> Expected credit losses due to possible defaults on financial instruments within a 12-month period from the end of reporting period. | Expected lifetime credit losses:<br> Expected credit losses from all possible defaults during the expected lifetime of the financial instruments. | Expected lifetime credit losses:<br> Expected credit losses from all possible defaults during the expected lifetime of the financial instruments. |

---

(\*) Credit risk may be considered to not have been significantly increased when credit risk is low at the end of reporting period.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

(4) Defined benefit plan

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**4.** **RISK MANAGEMENT** 

The Company is exposed to various risks that may arise from its operating activities and credit risk, market risk and liquidity risk are the main types of risks. In order to manage such risks, the Risk Management Department analyzes, assesses, and establishes risk management standards, including policies, guidelines, management systems and decision-making to ensure sound management of the Company.

The Risk Management Committee, Chief Risk Officer ("CRO") and the Risk Management Department are operated as risk management organizations. The board of directors operates the Risk Management Committee, composed of nonexecutive directors for professional risk management. The Risk Management Committee performs as the top decision-making body for risk management by establishing fundamental risk management policies that are consistent with the Company's management strategy and by determining the Company's acceptable level of risk.

CRO assists the Risk Management Committee and operates the Group Risk Management Council, which is composed of the risk management managers of the subsidiaries, to periodically check and improve the external environment and the Group's risk burden. The Risk Management Department which is independently structured, controls the risk management matter of the Group and reports key risks and assists decision-making.

(1) Credit risk

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

1) Credit risk management

The Company measures expected loss on assets subject to credit risk management and uses it as a management indicator.

2) Maximum exposure

The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | December 31, 2022 | December 31, 2021 |
|  Loans and other financial assets at amortized cost (\*) | Banks |  | 1946609 | 585006 |
|  | Corporates |  | 95268 | 48104 |
|  | Sub-total |  | 2041877 | 633110 |
|  Financial assets at FVTPL | Derivative assets |  | 689 |  |
|  |  | Total | 2042566 | 633110 |

---

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Credit risk exposure by geographical areas

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  | Korea | Korea |
| Loans and other financial assets at amortized cost | 2041877 | 633110 |
| Financial assets at FVTPL | 689 |  |
|  Total | 2042566 | 633110 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are finance and insurance, and others in accordance with the Korea Standard Industrial Classification Code as of December 31, 2022 and December 31, 2021 (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Finance and<br>insurance | Others | Total |
|  Loans and other financial assets at amortized cost | 2039388 | 2489 | 2041877 |
|  Financial assets at FVTPL | 689 |  | 689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 2040077 | 2489 | 2042566 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Finance and<br>insurance | Others | Total |
|  Loans and other financial assets at amortized cost | 631591 | 1519 | 633110 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

3) Credit risk exposure

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL as of December 31, 2022 and 2021 is as follows (Unit: Korean Won in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Stage 1 | Stage 1 | Stage 2 | Stage 2 | Stage 3 | Total | Loss<br>allowance | Total, net |
| Financial assets | Above<br>appropriate<br>credit rating (\*1) | Less than a<br>limited<br>credit<br>rating (\*2) | Above<br>appropriate<br>credit rating (\*1) | Less than a<br>limited<br>credit rating (\*2) | Stage 3 | Total | Loss<br>allowance | Total, net |
|  Loans and other financial assets at amortized cost | 2042192 |  |  |  |  | 2042192 | (315) | 2041877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banks | 1946924 |  |  |  |  | 1946924 | (315) | 1946609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 95268 |  |  |  |  | 95268 |  | 95268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General business | 95268 |  |  |  |  | 95268 |  | 95268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 2042192 |  |  |  |  | 2042192 | (315) | 2041877 |

---

(\*1) Credit grade of corporates are AAA ~ BBB.

(\*2) Credit grade of corporates are BBB- ~ C.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Stage 1 | Stage 1 | Stage 2 | Stage 2 | Stage 3 | Total | Loss<br>allowance | Total, net |
| Financial assets | Above<br>appropriate<br>credit rating (\*1) | Less than a<br>limited<br>credit<br>rating (\*2) | Above<br>appropriate<br>credit rating (\*1) | Less than a<br>limited<br>credit rating (\*2) | Stage 3 | Total | Loss<br>allowance | Total, net |
|  Loans and other financial assets at amortized cost | 633182 |  |  |  |  | 633182 | (72) | 633110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banks | 585078 |  |  |  |  | 585078 | (72) | 585006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | 48104 |  |  |  |  | 48104 |  | 48104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General business | 48104 |  |  |  |  | 48104 |  | 48104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 633182 |  |  |  |  | 633182 | (72) | 633110 |

---

(\*1) Credit grade of corporates are AAA ~ BBB.

(\*2) Credit grade of corporates are BBB- ~ C.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(2) Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates, and the Company's main market risk is interest rate risk.

The Company estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Within 3<br>months (\*1) | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over 5<br>years | Total |
|  Asset: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost (\*1) | 315632 | 406445 | 913995 |  |  |  | 1636072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI (\*2) |  |  |  |  |  | 312771 | 312771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 315632 | 406445 | 913995 |  |  | 312771 | 1948843 |
|  Liability: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 7843 | 7843 | 267698 | 7011 | 382167 | 949275 | 1621837 |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Within 3<br>months (\*1) | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over 5<br>years | Total |
|  Asset: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost (\*1) | 589536 | 151050 |  |  |  |  | 740586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at FVTOCI (\*2) |  |  |  |  |  | 146294 | 146294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 589536 | 151050 |  |  |  | 146294 | 886880 |
|  Liability: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 7072 | 7072 | 7072 | 7072 | 458230 | 1072004 | 1558522 |

---

(\*1) The principal and interest cash flows of cash and cash equivalents are included in the cash flows within three months, with 315,632 million won and 579,486 million won as of December 31, 2022 and 2021, respectively.

(\*2) Due to the uncertain timing of the sale, it is included in the section for over 5 years in accordance with the expiration of the remaining contract.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(3) Liquidity risk

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

1) Liquidity risk management

Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk management that could arise from mismatching the maturity of assets and liabilities or unexpected cash outflows. The financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated within the scope of risk management.

The Company manages liquidity risk through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.).

2) Maturity analysis of non-derivative financial liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Debentures | 7843 | 7843 | 267698 | 7011 | 382167 | 949275 | 1621837 |
|  Lease liabilities | 797 | 770 | 767 | 764 | 3070 |  | 6168 |
|  Other financial liabilities | 10720 | 21087 |  | 348 | 8000 |  | 40155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 19360 | 29700 | 268465 | 8123 | 393237 | 949275 | 1668160 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Debentures | 7072 | 7072 | 7072 | 7072 | 458230 | 1072004 | 1558522 |
|  Lease liabilities | 684 | 681 | 680 | 677 | 252 |  | 2974 |
|  Other financial liabilities | 8495 | 3872 |  | 1192 | 6474 |  | 20033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 16251 | 11625 | 7752 | 8941 | 464956 | 1072004 | 1581529 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over 5<br>years | Total |
|  Debentures | 7843 | 7843 | 267698 | 7011 | 382167 | 949275 | 1621837 |
|  Lease liabilities | 797 | 770 | 767 | 764 | 3070 |  | 6168 |
|  Other financial liabilities | 10720 | 21087 |  | 348 | 8000 |  | 40155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 19360 | 29700 | 268465 | 8123 | 393237 | 949275 | 1668160 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over 5<br>years | Total |
|  Debentures | 7072 | 7072 | 7072 | 7072 | 458230 | 1072004 | 1558522 |
|  Lease liabilities | 684 | 681 | 680 | 677 | 252 |  | 2974 |
|  Other financial liabilities | 8495 | 3872 |  | 1192 | 6474 |  | 20033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 16251 | 11625 | 7752 | 8941 | 464956 | 1072004 | 1581529 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

3) Maturity analysis of derivative financial liabilities

The cash flow by the remaining contractual maturities of derivative financial liabilities as of December 31, 2022 and 2021 is as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Financial liabilities at FVTPL |  |  |  |  |  |  |  |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Within 3<br>months | 4 to 6<br>months | 7 to 9<br>months | 10 to 12<br>months | 1 to 5<br>years | Over<br>5 years | Total |
|  Financial liabilities at FVTPL |  |  |  |  | 329 |  | 329 |

---

(4) Capital management

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

According to the above regulations, the Company is required to meet the following minimum requirements: Common Equity Tier 1 capital ratio of 8.0%, a Tier 1 capital ratio of 9.5%, and a Total capital ratio of 11.5%.

Details of the Company's capital adequacy ratio calculated based on the consolidated financial statements are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
| Details (\*) | December 31, 2022 | December 31, 2021 |
|  Tier 1 capital | 23757296 | 21994047 |
|  Other Tier 1 capital | 4208994 | 3590212 |
|  Tier 2 capital | 3437735 | 3395989 |
|  Total risk-adjusted capital | 31404025 | 28980248 |
|  Risk-weighted assets for credit risk | 182028062 | 171199840 |
|  Risk-weighted assets for market risk | 6759527 | 6388428 |
|  Risk-weighted assets for operational risk | 16519885 | 14914801 |
|  Total risk-weighted assets | 205307474 | 192503069 |
|  Common Equity Tier 1 ratio | 11.57% | 11.43% |
|  Tier 1 capital ratio | 13.62% | 13.29% |
|  Total capital ratio | 15.30% | 15.05% |

---

(\*) The capital ratio at the end of the current period is provisional.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**5.** **CASH AND CASH EQUIVALENTS** 

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Demand deposits | 18361 | 218725 |
|  Fixed deposits | 295000 | 360000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 313361 | 578725 |

---

(2) Significant transactions of investing activities and financing activities not involving cash inflows and
outflows are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Changes in other comprehensive income related to valuation of financial assets at FVTOCI | (24676) | (2407) |
|  Changes in right-of-use assets due to new contract | 893 | 291 |
|  Changes in right-of-use assets due to renewal of contract | 5463 |  |
|  Changes in lease liabilities due to new contract | 803 | 291 |
|  Changes in lease liabilities due to renewal of contract | 5251 |  |
|  Comprehensive stock transfer |  | 64301 |
|  Changes in Hybrid securities outstanding dividends | 1117 |  |
|  Change in bond discount issuance differences due to bond issuance | 236 | 511 |

---

(3) Adjustments of liabilities from financing activities for the year ended December 31, 2022 and 2021 are as
follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning | Cash flow | Not involving cash inflows and outflows | Not involving cash inflows and outflows | Ending |
|  | Beginning | Cash flow | Amortization | Others (\*) | Ending |
|  Debentures | 1367429 | 79764 | 569 |  | 1447762 |
|  Lease liabilities | 2954 | (3072) | 32 | 5970 | 5884 |
|  Total | 1370383 | 76692 | 601 | 5970 | 1453646 |

---

(\*) Changes in lease liabilities due to new contracts and renewed include 6,054 million won.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning | Cash flow | Not involving cash inflows and outflows | Not involving cash inflows and outflows | Ending |
|  | Beginning | Cash flow | Amortization | Others (\*) | Ending |
|  Debentures | 1147503 | 219489 | 437 |  | 1367429 |
|  Lease liabilities | 5539 | (2864) | 50 | 229 | 2954 |
|  Total | 1153042 | 216625 | 487 | 229 | 1370383 |

---

(\*) Changes in lease liabilities due to new contracts include 291 million won.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**6.** **FINANCIAL ASSETS AT FVTPL** 

(1) Details of financial assets at FVTPL as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in
millions):

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Financial assets at FVTPL mandatorily measured at fair value 689 —

(2) Financial assets at FVTPL mandatorily measured at fair value are as follows (Unit: Korean Won in millions):

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Derivatives assets 689 —

(3) Financial assets at FVTPL designated as upon initial recognition is nil among financial assets at FVTPL as of
December 31, 2022 and 2021.

**7.** **FINANCIAL ASSETS AT FVTOCI** 

(1) Details of financial assets at FVTOCI as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in
millions):

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Hybrid securities 312,771 146,294

(2) Details of equity securities designated as financial assets at FVTOCI as of December 31, 2022 and
December 31, 2021 are as follows (Unit: Korean Won in millions):

Purpose of acquisition <u>December 31, 2022</u> <u>December 31, 2021</u> <br> Investment for political purpose 312,771 146,294

**8.** **LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST** 

(1) Details of loans and other financial assets at amortized cost as of December 31, 2022 and 2021 are as
follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Due from banks | 1299687 | 159928 |
|  Other financial assets | 742190 | 473182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 2041877 | 633110 |

---

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Due from banks in local currency: |  |  |
|  Due from depository banks | 1300000 | 160000 |
|  Loss allowance | (313) | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 1299687 | 159928 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(3) Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows (Unit:
Korean Won in millions):

1) Allowance for credit losses

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (72) |  |  | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision of allowance for credit loss | (241) |  |  | (241) |
|  Ending balance | (313) |  |  | (313) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | (147) |  |  | (147) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of allowance for credit loss | 75 |  |  | 75 |
|  Ending balance | (72) |  |  | (72) |

---

2) Gross carrying amount 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 160000 |  |  | 160000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1140000 |  |  | 1140000 |
|  Ending balance | 1300000 |  |  | 1300000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 400000 |  |  | 400000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (240000) |  |  | (240000) |
|  Ending balance | 160000 |  |  | 160000 |

---

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

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Receivables | 724101 | 468920 |
|  Accrued income | 15991 | 2188 |
|  Lease deposits | 2101 | 2049 |
|  Other assets |  | 25 |
|  Loss allowance | (3) |  |
|  Total | 742190 | 473182 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(5) Changes in the allowances for credit losses and gross carrying amount of other financial assets are as follows
(Unit: Korean Won in millions):

1) Allowance for credit losses

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision of allowance for credit loss | (3) |  |  | (3) |
|  Ending balance | (3) |  |  | (3) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of allowance for credit loss |  |  |  |  |
|  Ending balance |  |  |  |  |

---

2) Gross carrying amount 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 473182 |  |  | 473182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 269011 |  |  | 269011 |
|  Ending balance | 742193 |  |  | 742193 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Stage 1 | Stage 2 | Stage 3 | Total |
|  Beginning balance | 219264 |  |  | 219264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 253918 |  |  | 253918 |
|  Ending balance | 473182 |  |  | 473182 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**9.** **FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES** 

(1) The fair value hierarchy

The fair value hierarchy is determined by the levels of judgment involved in estimating fair values of financial assets and liabilities. The specific financial instruments characteristics and market condition such as volume of transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Company's own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2— fair value measurements are those derived from inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in
active markets and derivatives traded in OTC but not required significant judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3— fair value measurements are those derived from valuation technique that include inputs for the
assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and
derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Level 1 | Level 2 | Level 3 | Total |
|  Financial assets: |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets |  |  | 689 | 689 |
|  Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities |  |  | 312771 | 312771 |
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Level 1 | Level 2 | Level 3 | Total |
|  Financial assets: |  |  |  |  |
|  Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities |  |  | 146294 | 146294 |
|  Financial liabilities: |  |  |  |  |
|  Financial liabilities at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities |  |  | 329 | 329 |

---

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

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

---

| | | |
|:---|:---|:---|
|  | Valuation methods | Input variables |
| Derivatives | As the transaction price of the forward contract is tentatively determined, the discounted cash flow method is used to calculate the fair values of the underlying asset, and based on this, the fair value of derivative is calculated. | Values of underlying assets |
| Hybrid securities | The fair value is measured using the Hull and White model and the Monte Carlo Simulations. | YTM Matrix, Additive spread by grade, Risk spread by entity, Effective Credit rating, Issuing information by item, Interest rate volatility estimate |

---

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Fair value<br> measurement<br>technique | Type | Significant<br>unobservable<br>inputs | Range | Impact of changes in significant unobservable<br>inputs on fair value measurement |
|  Derivative assets | The discounted<br> cash flow<br> method | Equity related | Discount rate | 9.25% ~ 11.25% | Variation of fair value and derivative assets decrease as discount rate increase. |
|  Hybrid securities | Hull and White model and others | Hybrid securities related | Interest rate (YTM), Market rate | Interest rate 3.63%~ 3.78%<br> Market rate<br> 5.32% ~ 7.05% | Variation of fair value increases as variation of interest rate (YTM) increases. |

---

The fair value of financial assets classified as level 3 uses external valuation figures.

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning<br>balance | Net<br>Income | Other<br>comprehensive<br>income | Purchases/<br>Issuances | Disposals/<br>Settlements | Transfer to or<br>out of Level 3 | Ending<br>balance |
|  Financial assets: |  |  |  |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets |  | 689 |  |  |  |  | 689 |
|  Financial assets at FVTOCI |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | 146294 |  | (33523) | 200000 |  |  | 312771 |
|  Financial liabilities: |  |  |  |  |  |  |  |
|  Financial liabilities at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 329 | (329) |  |  |  |  |  |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning<br>balance | Net<br>Income | Other<br>comprehensive<br>income | Purchases/<br>Issuances | Disposals/<br>Settlements | Transfer to or<br>out of Level 3 | Ending<br>balance |
|  Financial assets: |  |  |  |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 7247 | (7247) |  |  |  |  |  |
|  Financial assets at FVTOCI |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | 149614 |  | (3320) |  |  |  | 146294 |
|  Financial liabilities: |  |  |  |  |  |  |  |
|  Financial liabilities at FVTPL |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities |  | 329 |  |  |  |  | 329 |

---

(4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the
fair value of Level 3 financial instruments are as follows.

The sensitivity analysis on financial instruments shows how changes in unobservable inputs affect changes in fair value of the instruments through favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for equity related derivatives of which fair value changes are recognized as net income and hybrid securities of which fair value changes are recognized as other comprehensive income among level 3 financial instruments.

The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility.(Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Net income | Net income | Other comprehensive income (loss) | Other comprehensive income (loss) |
|  | Favorable | Unfavorable | Favorable | Unfavorable |
|  Financial assets: |  |  |  |  |
|  Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets (\*1) | 16523 | (13279) |  |  |
|  Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities (\*2) |  |  | 10347 | (9988) |

---

---

| | |
|:---|:---|
| (\*1) | Fair value changes of equity related derivatives are calculated by increasing or decreasing stock price volatility rate of underlying assets and correlation, which are major unobservable variables, by 1%, respectively.  |

---

---

| | |
|:---|:---|
| (\*2) | Fair value changes of hybrid securities are calculated by increasing or decreasing market rate, which is the major unobservable variable, by 1%, respectively.  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Net income | Net income | Other comprehensive<br>income (loss) | Other comprehensive<br>income (loss) |
|  | Favorable | Unfavorable | Favorable | Unfavorable |
|  Financial assets: |  |  |  |  |
|  Financial assets at FVTOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities (\*1) |  |  | 5078 | (4910) |
|  Financial liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities (\*2) | 33 | (33) |  |  |

---

---

| | |
|:---|:---|
| (\*1) | Fair value changes of hybrid securities are calculated by increasing or decreasing market rate, which is the major unobservable variable, by 1%, respectively.  |

---

---

| | |
|:---|:---|
| (\*2) | Fair value changes of equity related derivatives are calculated by increasing or decreasing stock price volatility rate of underlying assets and correlation, which are major unobservable variables, by 10%, respectively.  |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Fair value | Fair value | Fair value | Fair value | Carrying<br>amount |
|  | Level 1 | Level 2 | Level 3 | Total | Carrying<br>amount |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost (\*) |  |  | 2041877 | 2041877 | 2041877 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 1277164 |  | 1277164 | 1447762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities (\*) |  |  | 40155 | 40155 | 40155 |

---

---

| | |
|:---|:---|
| (\*) | The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Fair value | Fair value | Fair value | Fair value | Carrying<br>amount |
|  | Level 1 | Level 2 | Level 3 | Total | Carrying<br>amount |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and other financial assets at amortized cost (\*) |  |  | 633110 | 633110 | 633110 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 1361369 |  | 1361369 | 1367429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities (\*) |  |  | 20033 | 20033 | 20033 |

---

---

| | |
|:---|:---|
| (\*) | The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.  |

---

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Company determines the fair value using valuation methods. For the disclosed items in which book value is considered to be the approximate value of fair value, valuation techniques and input variables are not disclosed. Valuation techniques and input variables for the fair value of financial liabilities that are recorded at amortized cost are as follows:

<u> Valuation methods</u> <u> Input variables</u> <br> Debentures The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Company. Risk-free market rate, etc.

(6) Financial instruments by category

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

1) Financial assets

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
| Financial assets | Financial assets<br>at FVTPL | Financial assets<br>at FVTOCI | Financial assets at<br>amortized cost | Total |
|  Deposits |  |  | 1299687 | 1299687 |
|  Hybrid securities |  | 312771 |  | 312771 |
|  Derivative assets | 689 |  |  | 689 |
|  Other financial assets |  |  | 742190 | 742190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 689 | 312771 | 2041877 | 2355337 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| Financial assets | Financial assets<br>at FVTPL | Financial assets<br>at FVTOCI | Financial assets at<br>amortized cost | Total |
|  Deposits |  |  | 159928 | 159928 |
|  Hybrid securities |  | 146294 |  | 146294 |
|  Other financial assets |  |  | 473182 | 473182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 146294 | 633110 | 779404 |

---

2) Financial liabilities

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
| Financial liabilities | Financial liabilities<br>at FVTPL | Financial liabilities at<br>amortized cost | Financial liabilities<br>at FVTPL | Financial liabilities<br>at amortized cost |
|  Debentures |  | 1447762 |  | 1367429 |
|  Derivative liabilities |  |  | 329 |  |
|  Other financial liabilities |  | 40155 |  | 20033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 1487917 | 329 | 1387462 |

---

(7) Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category for the year ended December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Interest<br>Income(expense) | Provision of<br>credit loss | Others | Total |
|  Financial assets at FVTPL |  |  | 1018 | 1018 |
|  Financial assets at FVTOCI |  |  | 12967 | 12967 |
|  Loans and other financial assets at amortized cost (\*) | 25614 | (244) |  | 25370 |
|  Financial liabilities at amortized cost | (30606) |  |  | (30606) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | (4992) | (244) | 13985 | 8749 |

---

(\*) 9,138 million won interest income of cash and cash equivalents are included.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Interest<br>Income(expense) | Reversal of<br>credit loss | Others | Total |
|  Financial assets at FVTPL |  |  | (7576) | (7576) |
|  Financial assets at FVTOCI |  |  | 5160 | 5160 |
|  Loans and other financial assets at amortized cost (\*) | 4236 | 76 |  | 4312 |
|  Financial liabilities at amortized cost | (26426) |  |  | (26426) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | (22190) | 76 | (2416) | (24530) |

---

(\*) 2,229 million won interest income of cash and cash equivalents are included.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**10.** **INVESTMENTS IN SUBSIDIARIES** 

(1) Details of Investments in subsidiaries are as follows (Unit: Korean Won in millions and number of shares):

---

| | | | |
|:---|:---|:---|:---|
| Subsidiaries | Location | Capital stock | Main business |
|  Woori Bank | Korea | 3581400 | Finance |
|  Woori Card Co., Ltd. | Korea | 896300 | Finance |
|  Woori Financial Capital Co., Ltd. | Korea | 373800 | Finance |
|  Woori Investment Bank Co., Ltd. | Korea | 437100 | Other credit finance |
|  Woori Asset Trust Co., Ltd | Korea | 15300 | Finance |
|  Woori Savings Bank | Korea | 124000 | Savings bank business |
|  Woori Asset Management Corp. | Korea | 20000 | Finance |
|  Woori F&I Co., Ltd. | Korea | 20000 | Finance |
|  Woori Credit Information Co., Ltd. | Korea | 5000 | Credit information |
|  Woori Fund Service Co., Ltd. | Korea | 10000 | Finance |
|  Woori Private Equity Asset Management Co., Ltd. | Korea | 80000 | Finance |
|  Woori Global Asset Management Co., Ltd. | Korea | 20000 | Finance |
|  Woori FIS Co., Ltd. | Korea | 24500 | System software development<br> & maintenance |
|  Woori Finance Research Institute Co., Ltd. | Korea | 3000 | Other service business |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| Subsidiaries (\*1) | Number of<br>shares | Percentage of<br>ownership<br>(%) (\*2) | Financial statements<br>date of use | Number of<br>shares | Percentage of<br>ownership<br>(%) (\*2) | Financial statements<br>date of use |
|  Woori Bank | 716000000 | 100 | December 31, 2022 | 716000000 | 100 | December 31, 2021 |
|  Woori Card Co., Ltd. | 179266200 | 100 | December 31, 2022 | 179266200 | 100 | December 31, 2021 |
|  Woori Financial Capital Co., Ltd. | 74757594 | 100 | December 31, 2022 | 74757594 | 100 | December 31, 2021 |
|  Woori Investment Bank Co., Ltd. | 513162392 | 58.7 | December 31, 2022 | 513162392 | 58.7 | December 31, 2021 |
|  Woori Asset Trust Co., Ltd | 1560000 | 67.2 | December 31, 2022 | 1560000 | 67.2 | December 31, 2021 |
|  Woori Savings Bank | 24802623 | 100 | December 31, 2022 | 24802623 | 100 | December 31, 2021 |
|  Woori Asset Management Corp. | 2920000 | 73 | December 31, 2022 | 2920000 | 73 | December 31, 2021 |
|  Woori F&I Co., Ltd. | 4000000 | 100 | December 31, 2022 |  |  |  |
|  Woori Credit Information Co., Ltd. | 1008000 | 100 | December 31, 2022 | 1008000 | 100 | December 31, 2021 |
|  Woori Fund Service Co., Ltd. | 2000000 | 100 | December 31, 2022 | 2000000 | 100 | December 31, 2021 |
|  Woori Private Equity Asset Management Co., Ltd. | 16000000 | 100 | December 31, 2022 | 6000000 | 100 | December 31, 2021 |
|  Woori Global Asset Management Co., Ltd. | 4000000 | 100 | December 31, 2022 | 4000000 | 100 | December 31, 2021 |
|  Woori FIS Co., Ltd. | 4900000 | 100 | December 31, 2022 | 4900000 | 100 | December 31, 2021 |
|  Woori Finance Research Institute Co., Ltd. | 600000 | 100 | December 31, 2022 | 600000 | 100 | December 31, 2021 |

---

(\*1) Only subsidiaries invested directly by the Company are included.

---

| | |
|:---|:---|
| (\*2) | The percentage is based on the effective shareholding rate relative to the number of stocks outstanding.  |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(2) Changes in the carrying value of investments in subsidiaries are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning<br>balance | Acquisition | Disposal | Ending<br>balance |
|  Woori Bank | 18921151 |  |  | 18921151 |
|  Woori Card Co., Ltd. | 1118367 |  |  | 1118367 |
|  Woori Financial Capital Co., Ltd. | 1003206 |  |  | 1003206 |
|  Woori Investment Bank Co., Ltd. | 447673 |  |  | 447673 |
|  Woori Asset Trust Co., Ltd | 224198 |  |  | 224198 |
|  Woori Savings Bank | 213238 |  |  | 213238 |
|  Woori Asset Management Corp. | 122449 |  |  | 122449 |
|  Woori F&I Co., Ltd.(\*1) |  | 200000 |  | 200000 |
|  Woori Credit Information Co., Ltd. | 16466 |  |  | 16466 |
|  Woori Fund Service Co., Ltd. | 13939 |  |  | 13939 |
|  Woori Private Equity Asset Management Co., Ltd.(\*2) | 7797 | 50000 |  | 57797 |
|  Woori Global Asset Management Co., Ltd. | 33000 |  |  | 33000 |
|  Woori FIS Co., Ltd. | 21754 |  |  | 21754 |
|  Woori Finance Research Institute Co., Ltd. | 1677 |  |  | 1677 |
|  Total | 22144915 | 250000 |  | 22394915 |

---

---

| | |
|:---|:---|
| (\*1) | On January 7, 2022, Woori Financial F&I Co., Ltd. was established (100% stake, 200 billion won in stock payments) and included as a subsidiary.  |

---

---

| | |
|:---|:---|
| (\*2) | The Capital increase amount of 50,000 million Won was made in June 2022.  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning<br>balance | Acquisition | Disposal | Ending<br>balance |
|  Woori Bank | 18921151 |  |  | 18921151 |
|  Woori Card Co., Ltd. | 1118367 |  |  | 1118367 |
|  Woori Financial Capital Co., Ltd. (\*1) | 633758 | 369448 |  | 1003206 |
|  Woori Investment Bank Co., Ltd. | 447673 |  |  | 447673 |
|  Woori Asset Trust Co., Ltd | 224198 |  |  | 224198 |
|  Woori Asset Management Corp. | 122449 |  |  | 122449 |
|  Woori Savings Bank (\*2) |  | 213238 |  | 213238 |
|  Woori Credit Information Co., Ltd. | 16466 |  |  | 16466 |
|  Woori Fund Service Co., Ltd. | 13939 |  |  | 13939 |
|  Woori Private Equity Asset Management Co., Ltd. | 7797 |  |  | 7797 |
|  Woori Global Asset Management Co., Ltd. | 33000 |  |  | 33000 |
|  Woori FIS Co., Ltd. | 21754 |  |  | 21754 |
|  Woori Finance Research Institute Co., Ltd. | 1677 |  |  | 1677 |
|  Total | 21562229 | 582686 |  | 22144915 |

---

---

| | |
|:---|:---|
| (\*1) | After the Company acquiring 76.8% interests of Aju Capital Co., Ltd. in December 2020, Aju Capital Co. changed its name to Woori Financial Capital Co., Ltd. The Company acquired an additional 13.7% interests in April 2021 and acquired residual interest(9.5%) in August 2021 to make Woori Financial Capital Co., Ltd. a wholly owned subsidiary. In addition, the capital increase of 200,000 million Won was made in November 2021.  |

---

---

| | |
|:---|:---|
| (\*2) | The Company acquired 100.0% interests of Woori Savings Bank from its subsidiary, Woori Financial Capital Co., Ltd. in March 2021, and the capital increase of 100,000 million Won was made in May 2021.  |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**11.** **PREMISES AND EQUIPMENT** 

(1) Details of premises and equipment as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in
millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Building | Equipment and<br>Vehicles | Leasehold<br>improvements | Total |
|  Premises and equipment(owned) |  | 1944 | 3125 | 5069 |
|  Right-of-use asset | 5462 | 521 |  | 5983 |
|  Total | 5462 | 2465 | 3125 | 11052 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Building | Equipment and<br>Vehicles | Leasehold<br>improvements | Total |
|  Premises and equipment(owned) |  | 2676 | 2411 | 5087 |
|  Right-of-use asset | 2272 | 431 |  | 2703 |
|  Total | 2272 | 3107 | 2411 | 7790 |

---

(2) Details of premises and equipment (owned) as of December 31, 2022 and 2021 are as follows (Unit: Korean
Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Equipment and Vehicles | Leasehold improvements | Total |
|  Acquisition cost | 6012 | 6107 | 12119 |
|  Accumulated depreciation | (4068) | (2982) | (7050) |
|  Net carrying amount | 1944 | 3125 | 5069 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Equipment and Vehicles | Leasehold improvements | Total |
|  Acquisition cost | 5583 | 4323 | 9906 |
|  Accumulated depreciation | (2907) | (1912) | (4819) |
|  Net carrying amount | 2676 | 2411 | 5087 |

---

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

---

| | | | |
|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Equipment and Vehicles | Leasehold improvements | Total |
|  Beginning balance | 2676 | 2411 | 5087 |
|  Acquisitions | 429 | 1783 | 2212 |
|  Depreciation | (1161) | (1069) | (2230) |
|  Ending balance | 1944 | 3125 | 5069 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Equipment and Vehicles | Leasehold improvements | Total |
|  Beginning balance | 3779 | 3233 | 7012 |
|  Acquisitions | 12 | 39 | 51 |
|  Depreciation | (1115) | (861) | (1976) |
|  Ending balance | 2676 | 2411 | 5087 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(4) Details of right-of-use assets
as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Building | Equipment and Vehicles | Total |
|  Acquisition cost | 10320 | 1191 | 11511 |
|  Accumulated depreciation | (4858) | (670) | (5528) |
|  Net carrying amount | 5462 | 521 | 5983 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Building | Equipment and Vehicles | Total |
|  Acquisition cost | 4544 | 1178 | 5722 |
|  Accumulated depreciation | (2272) | (747) | (3019) |
|  Net carrying amount | 2272 | 431 | 2703 |

---

(5) Details of changes in right-of-use assets for the year ended December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Building | Equipment and Vehicles | Total |
|  Beginning balance | 2272 | 431 | 2703 |
|  New contracts | 5777 | 579 | 6356 |
|  Termination |  | (78) | (78) |
|  Depreciation | (2587) | (411) | (2998) |
|  Ending balance | 5462 | 521 | 5983 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Building | Equipment and Vehicles | Total |
|  Beginning balance | 4936 | 590 | 5526 |
|  New contracts |  | 291 | 291 |
|  Termination |  | (60) | (60) |
|  Depreciation | (2272) | (390) | (2662) |
|  Others | (392) |  | (392) |
|  Ending balance | 2272 | 431 | 2703 |

---

**12.** **INTANGIBLE ASSETS** 

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 |
|  | Software | Development cost | Membership<br>deposit | Total |
|  Acquisition cost | 3866 | 3500 | 2371 | 9737 |
|  Accumulated amortization | (3162) | (1716) |  | (4878) |
|  Net carrying amount | 704 | 1784 | 2371 | 4859 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Software | Development cost | Membership<br>deposit | Total |
|  Acquisition cost | 3389 | 3000 | 2371 | 8760 |
|  Accumulated amortization | (2507) | (1082) |  | (3589) |
|  Net carrying amount | 882 | 1918 | 2371 | 5171 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Software | Development cost | Membership<br>deposit | Construction<br>in progress | Total |
|  Beginning balance | 882 | 1918 | 2371 |  | 5171 |
|  Acquisitions | 477 | 200 |  | 300 | 977 |
|  Amortization | (655) | (634) |  |  | (1289) |
|  Transfer |  | 300 |  | (300) |  |
|  Ending balance | 704 | 1784 | 2371 |  | 4859 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Software | Development cost | Membership<br>deposit | Construction<br>in progress | Total |
|  Beginning balance | 1265 | 1646 | 2371 |  | 5282 |
|  Acquisitions | 266 |  |  | 795 | 1061 |
|  Amortization | (675) | (497) |  |  | (1172) |
|  Transfer | 26 | 769 |  | (795) |  |
|  Ending balance | 882 | 1918 | 2371 |  | 5171 |

---

**13.** **OTHER ASSETS** 

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

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Prepaid expenses 322 151

**14.** **FINANCIAL LIABILITIES AT FVTPL** 

(1) Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Financial liabilities at FVTPL — 329

(2) Financial liabilities at FVTPL value are as follows (Unit: Korean Won in millions):

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Derivative liabilities — 329

(3) There are no financial liabilities designated as FVTPL among financial liabilities at FVTPL as of
December 31, 2022 and 2021.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**15.** **DEBENTURES** 

Details of debentures are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  | Interest rate (%) | Amount | Interest rate (%) | Amount |
|  Face value of bonds: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General bonds | 1.23~3.90 | 500000 | 1.23~2.19 | 420000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated bonds | 2.13~2.55 | 950000 | 2.13~2.55 | 950000 |
|  Sub-total |  | 1450000 |  | 1370000 |
|  Deducted item: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discounts on bonds |  | (2238) |  | (2571) |
|  Total |  | 1447762 |  | 1367429 |

---

**16.** **PROVISIONS** 

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

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Asset retirement obligation 487 394

(2) Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Beginning balance | 394 | 782 |
| Increase | 87 |  |
| Amortization | 6 | 4 |
| Reversal of unused amount, etc. |  | (392) |
|  Ending balance | 487 | 394 |

---

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased assets used as offices as of December 31, 2022, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of the lease period of each office, and the Company used the average amount of the major subsidiaries' actual recovery cost and the inflation rate for the past 3 years in order to estimate future recovery cost.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**17.** **NET DEFINED BENEFIT ASSET** 

The Company's pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes into account of projected earnings' increase, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Company is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

---

| | |
|:---|:---|
| Volatility of asset | The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate. |
| Decrease in profitability of blue chip bonds | A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation. |
| Risk of inflation | Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases. |

---

(1) Details of net defined benefit asset are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Present value of defined benefit obligation | (18660) | (20966) |
|  Fair value of plan assets | 24607 | 22482 |
|  Net defined benefit asset | 5947 | 1516 |

---

(2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Beginning balance | Beginning balance | 20966 | 20083 |
|  Transfer-in / out | Transfer-in / out | (625) | (553) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | 2527 | 2420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | 608 | 486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements | Financial assumption | (4443) | (1028) |
|  | Experience adjustment | 917 | 604 |
|  Retirement benefit paid | Retirement benefit paid | (941) | (827) |
|  Others | Others | (349) | (219) |
|  Ending balance | Ending balance | 18660 | 20966 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(3) Changes in the plan assets are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Beginning balance | 22482 | 23592 |
|  Transfer-in / out | 644 | (2709) |
|  Interest income | 685 | 600 |
|  Remeasurements | (310) | (317) |
|  Employer's contributions | 2070 | 2420 |
|  Retirement benefit paid | (964) | (1104) |
|  Ending balance | 24607 | 22482 |

---

(4) The fair value of plan assets as of December 31, 2022 and 2021 is as follows (Unit: Korean Won in
millions):

<u>December 31, 2022</u> <u>December 31, 2021</u> <br> Cash and due from banks 24,607 22,482

Meanwhile, the actual revenue of the current and prior term plan assets is 375 million won and 283 million won, respectively. The contribution expected to be paid in the fiscal year beginning after the reporting period is 1,773 million won.

(5) The amount recognized in profit or loss and total comprehensive income related to the defined benefit plan for
the year ended December 31, 2022 and 2021 is as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Current service cost | 2527 | 2420 |
|  Net interest expense | (77) | (114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost recognized in net income | 2450 | 2306 |
|  Remeasurements (\*) | (3216) | (108) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost recognized in total comprehensive income | (766) | 2198 |

---

---

| | |
|:---|:---|
| (\*) | The amount is before income tax effect.  |

---

(6) Key actuarial assumptions used in defined benefit liability measurement are as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
| Discount rate | 5.34% | 2.98% |
|  Future wage growth rate | 5.50% | 5.50% |
| Mortality rate | Issued by Korea<br>Insurance Development Institute | Issued by Korea Insurance<br>Development Institute |
|  Retirement rate | Issued by Korea Insurance<br>Development Institute | Issued by Korea Insurance<br>Development Institute |

---

The weighted average maturity of the defined benefit obligation is 9.54 years.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(7) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows
(Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
|  |  | December 31, 2022 | December 31, 2021 |
|  Discount rate | Increase by 1% point | (1487) | (1864) |
|  Discount rate | Decrease by 1% point | 1701 | 2152 |
|  Future wage growth rate | Increase by 1% point | 1683 | 2078 |
|  Future wage growth rate | Decrease by 1% point | (1499) | (1840) |

---

**18.** **OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES** 

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Other financial liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 20243 | 4118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 19912 | 15915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 5884 | 2955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sub-total | 46039 | 22988 |
|  Other liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other miscellaneous liabilities | 591 | 548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 46630 | 23536 |

---

**19.** **DERIVATIVES** 

Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Nominal amount | Nominal amount | Assets (Liabilities)<br>For trading | Assets (Liabilities)<br>For trading | Nominal<br>amount | Nominal<br>amount | Assets (Liabilities)<br>For trading | Assets (Liabilities)<br>For trading |
|  Equity Forwards |  | 176720 |  | 689 |  | 124350 |  | 329 |

---

Derivatives held for trading are classified into financial assets at FVTPL in the statements of financial position (seeing Note 6 and Note 14).

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**20.** **EQUITY** 

(1) Details of equity as of December 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | December 31, 2022 | December 31, 2021 |
|  Capital | Capital | 3640303 | 3640303 |
|  Hybrid securities | Hybrid securities | 3112273 | 2294288 |
|  Capital surplus | Capital surplus | 10909281 | 10909281 |
|  Other equity | Treasury stock | (26) | (26) |
|  | Accumulated other comprehensive income | (26160) | (3848) |
|  | Sub-total | (26186) | (3874) |
|  Retained earnings (\*1) (\*2) | Retained earnings (\*1) (\*2) | 5261231 | 4824991 |
|  Total | Total | 22896902 | 21664989 |

---

---

| | |
|:---|:---|
| (\*1) | The regulatory reserve for credit loss in retained earnings amounted to 2,356 million won and 1,086 million won as of December 31, 2022 and 2021 in accordance with the relevant regulation.  |

---

---

| | |
|:---|:---|
| (\*2) | The earned surplus reserve in retained earnings amounted to 181,860 million won and 122,370 million won as of December 31, 2022 and 2021 in accordance with the Article 53 of the Financial Holding Company Act.  |

---

(2) The number of authorized shares and others of the Company are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Shares of common stock authorized |  | 4,000,000,000 Shares |  | 4,000,000,000 Shares |
|  Par value |  | 5,000 Won |  | 5,000 Won |
|  Shares of common stock issued |  | 728,060,549 Shares |  | 728,060,549 Shares |
|  Capital stock |  | 3,640,303 million won |  | 3,640,303 million won |

---

(3) Hybrid securities

The bond-type hybrid securities classified as owner's equity are as follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Issue date | Maturity | Interest rate (%) | December 31, 2022 | December 31, 2021 |
|  Securities in local currency | 2019-07-18 |  | 3.49 | 500000 | 500000 |
|  Securities in local currency | 2019-10-11 |  | 3.32 | 500000 | 500000 |
|  Securities in local currency | 2020-02-06 |  | 3.34 | 400000 | 400000 |
|  Securities in local currency | 2020-06-12 |  | 3.23 | 300000 | 300000 |
|  Securities in local currency | 2020-10-23 |  | 3.00 | 200000 | 200000 |
|  Securities in local currency | 2021-04-08 |  | 3.15 | 200000 | 200000 |
|  Securities in local currency | 2021-10-14 |  | 3.60 | 200000 | 200000 |
|  Securities in local currency | 2022-02-17 |  | 4.10 | 300000 |  |
|  Securities in local currency | 2022-07-28 |  | 4.99 | 300000 |  |
|  Securities in local currency | 2022-10-25 |  | 5.97 | 220000 |  |
|  Issuance cost | Issuance cost |  |  | (7727) | (5712) |
|  Total | Total |  |  | 3112273 | 2294288 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from the date of issuance.

(4) Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning<br>balance | Increase<br>(decrease) | Income tax<br>effect | Ending<br>balance |
|  Net gain (loss) on valuation of financial assets at FVTOCI | (2688) | (33522) | 8846 | (27364) |
|  Remeasurements of defined benefit plan | (1160) | 3216 | (852) | 1204 |
|  Total | (3848) | (30306) | 7994 | (26160) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning<br>balance | Increase<br>(decrease) | Income tax<br>effect | Ending<br>balance |
|  Net gain (loss) on valuation of financial assets at FVTOCI | (280) | (3321) | 913 | (2688) |
|  Remeasurements of defined benefit plan | (1238) | 108 | (30) | (1160) |
|  Total | (1518) | (3213) | 883 | (3848) |

---

(5) Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Company calculates and discloses the regulatory reserve for credit loss.

1) Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Beginning balance |  | 2356 |  | 1086 |
|  Planned provision of regulatory reserve for credit loss |  | 1341 |  | 1270 |
|  Ending balance |  | 3697 |  | 2356 |

---

2) Provision of regulatory reserve for credit loss, adjusted net income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Net income before regulatory reserve | 1183249 | 594852 |
|  Provision of regulatory reserve for credit loss | 1341 | 1270 |
|  Adjusted net income after the provision of regulatory reserve | 1181908 | 593582 |
|  Dividends to hybrid securities | (91757) | (66250) |
|  Adjusted net income after regulatory reserve and dividends to hybrid securities | 1090151 | 527332 |
|  Adjusted EPS after regulatory reserve and dividends to hybrid securities (Unit: Korean Won) | 1497 | 728 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(6) Statements of appropriations of retained earnings are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended December 31, 2022<br>(Expected date of disposal March 24, 2023) | For the year ended December 31, 2021<br>(Confirmed date of disposal March 25, 2022) |
|  Unappropriated retained earnings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unappropriated retained earnings carried over from prior years | 4094731 | 281274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer of capital surplus to retained earnings |  | 4000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interim dividend (dividend per share (%))<br> (2022: 150 won (3.0%))<br> (2021: 150 won (3.0%)) | (109209) | (108341) |
|  Dividend to hybrid equity securities | (91757) | (66250) |
|  Net income | 1183249 | 594852 |
|  | 5077014 | 4701535 |
|  Appropriation of retained earnings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earned profit reserves | 118330 | 59490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulatory reserve for credit loss | 1341 | 1270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividend (dividend per share (%))<br> (2022: 980 won (19.6%))<br> (2021: 750 won (15.0%)) | 713497 | 546044 |
|  | 833168 | 606804 |
|  Unappropriated retained earnings to be carried forward | 4243846 | 4094731 |

---

The appropriation of retained earnings for the year ended December 31, 2022, is expected to be appropriated at the shareholders' meeting on March 24, 2023. The appropriation date for the year ended December 31, 2021, was March 25, 2022.

(7) Changes in treasury stocks are as follows (Unit: Shares, Korean Won in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | Number of shares | Number of shares | Book value | Book value | Number of shares | Number of shares | Book value | Book value |
|  Beginning balance |  | 2324 |  | 26 |  | 2 |  |  |
|  Acquisition |  |  |  |  |  | 2322 |  | 26 |
|  Ending balance |  | 2324 |  | 26 |  | 2324 |  | 26 |

---

**21.** **DIVIDENDS** 

(1) Dividends per share and the total dividends for the fiscal year ending December 31, 2021 were 750 Won and
546,044 million Won, respectively, approved at the regular general shareholder's meeting held on March 25, 2022, and were paid in April 2022.

(2) On July 22, 2022, the Board of Directors has declared an interim dividend of 150 Won per share
(109,209 million Won in total) with June 30, 2022 as a record date, and were paid in August 2022.

(3) Dividends per share and the total dividends for the fiscal year ending December 31, 2022 were 980 Won and
713,497 million Won, respectively, will be approved at the regular general shareholders' meeting held on March 24, 2023. The current financial statements do not include such outstanding dividends.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**22.** **NET INTEREST INCOME** 

(1) Interest income recognized is as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Interest on due from banks | 25587 | 4213 |
|  Other interest income | 27 | 23 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;25614 | 4236 |

---

(2) Details of interest expense recognized are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Interest on borrowings | 30606 | 26427 |
|  Other interest expense | 6 | 4 |
|  Interest on lease liabilities | 32 | 50 |
|  Total | 30644 | 26481 |

---

**23.** **NET FEES AND COMMISSIONS INCOME** 

(1) Details of fees and commissions income incurred are as follows (Unit: Korean Won in millions):

<u>For the year ended<br>December 31, 2022</u> <u>For the year ended<br>December 31, 2021</u> <br> Fees and commissions income 1,596 1,306

(2) Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Fees and commissions paid | 7837 | 5681 |
|  Others | 8818 | 8210 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;16655 | &nbsp;&nbsp;&nbsp;&nbsp;13891 |

---

**24.** **DIVIDEND INCOME** 

Details of dividend income recognized are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Dividend income recognized from investments in subsidiaries | 1259426 | 687445 |
|  Dividend income recognized from FVTOCI | 12967 | 5160 |
|  Total | 1272393 | 692605 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**25.** **NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL** 

(1) Details of gain or loss related to net gain or loss on financial instruments at FVTPL are as follows (Unit:
Korean Won in millions):

<u>For the year ended<br>December 31, 2022</u> <u>For the year ended<br>December 31, 2021</u> <br> Gains and losses on financial instruments at FVTPL mandatorily measured at fair value 1,018 (7,576)

(2) Details of net gain or loss on financial instrument at FVTPL are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Derivatives (Held for trading) | Equity<br> derivatives | Gain on<br>transactions and<br>valuation | 1018 |  |
|  |  | Loss on<br>transactions and<br>valuation |  | (7576) |
|  |  |  | 1018 | (7576) |

---

**26.** **REVERSAL (PROVISION) FOR IMPAIRMENT LOSSES DUE TO CREDIT LOSS** 

Details of reversal for impairment losses due to credit loss recognized are as follows (Unit: Korean Won in millions):

<u>For the year ended<br>December 31, 2022</u> <u>For the year ended<br>December 31, 2021</u> <br> Reversal (Provision) for impairment losses due to credit loss on loans and other financial assets at amortized cost (244) 76

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**27.** **GENERAL AND ADMINISTRATIVE EXPENSES** 

(1) Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Employee benefits | Short-term employee benefits | Salaries | 30661 | 26993 |
|  |  | Employee fringe<br>benefits | 9978 | 7564 |
|  | Retirement benefit service costs | Retirement benefit service costs | 2450 | 2306 |
|  | Share based payments | Share based payments | 2157 | 3627 |
|  | Sub-total | Sub-total | 45246 | 40490 |
|  Depreciation and amortization | Depreciation and amortization | Depreciation and amortization | 6517 | 5809 |
|  Other general and administrative expenses | Rent | Rent | 1602 | 1420 |
|  | Taxes and public dues | Taxes and public dues | 400 | 435 |
|  | Service charges | Service charges | 3038 | 2991 |
|  | Computer and IT related | Computer and IT related | 6040 | 4894 |
|  | Telephone and communication | Telephone and communication | 754 | 647 |
|  | Operating promotion | Operating promotion | 1307 | 1184 |
|  | Advertising | Advertising | 168 | 190 |
|  | Printing | Printing | 52 | 59 |
|  | Traveling | Traveling | 588 | 65 |
|  | Supplies | Supplies | 157 | 135 |
|  | Insurance premium | Insurance premium | 195 | 43 |
|  | Reimbursement | Reimbursement | 1081 | 1077 |
|  | Vehicle maintenance | Vehicle maintenance | 282 | 257 |
|  | Others | Others | 24 | 29 |
|  | Sub-total | Sub-total | 15688 | 13426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 67451 | 59725 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(2) Share-based payment

Details of performance condition share-based payment granted to executives as of December 31, 2022 and 2021 are as follows.

1) Performance condition share-based payment

---

| | | |
|:---|:---|:---|
|  Subject to |  | Shares granted for the year 2019 |
|  Type of payment |  | Cash-settled |
|  Vesting period |  | January 11, 2019 ~ December 31, 2022 |
|  Date of payment |  | 2023-01-01 |
|  Fair value (\*1) |  | 12,406 Won |
|  Valuation method |  | Black-Scholes Model |
|  Expected dividend rate |  | 5.05% |
|  Expected maturity date |  | 0 years |
|  Number of shares remaining | As of December 31, 2022 | 77,728 shares |
|  | As of December 31, 2021 | 77,728 shares |
|  Number of shares granted (\*2) | As of December 31, 2022 | 77,728 shares |
|  | As of December 31, 2021 | 77,728 shares |
|  Subject to |  | Shares granted for the year 2020 |
|  Type of payment |  | Cash-settled |
|  Vesting period |  | January 1, 2020 ~ December 31, 2023 |
|  Date of payment |  | 2024-01-01 |
|  Fair value (\*1) |  | 11,796 won |
|  Valuation method |  | Black-Scholes Model |
|  Expected dividend rate |  | 5.05% |
|  Expected maturity date |  | 1 years |
|  Number of shares remaining | As of December 31, 2022 | 189,270 shares |
|  | As of December 31, 2021 | 189,270 shares |
|  Number of shares granted (\*2) | As of December 31, 2022 | 189,270 shares |
|  | As of December 31, 2021 | 189,270 shares |
|  Subject to |  | Shares granted for the year 2021 |
|  Type of payment |  | Cash-settled |
|  Vesting period |  | January 1, 2021 ~ December 31, 2024 |
|  Date of payment |  | 2025-01-01 |
|  Fair value (\*1) |  | 11,215 won |
|  Valuation method |  | Black-Scholes Model |
|  Expected dividend rate |  | 5.05% |
|  Expected maturity date |  | 2 years |
|  Number of shares remaining | As of December 31, 2022 | 239,798 shares |
|  | As of December 31, 2021 | 239,798 shares |
|  Number of shares granted (\*2) | As of December 31, 2022 | 239,798 shares |
|  | As of December 31, 2021 | 239,798 shares |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  Subject to |  | Shares granted for the year 2022 |
|  Type of payment |  | Cash-settled |
|  Vesting period |  | January 1, 2022 ~ December 31, 2025 |
|  Date of payment |  | 2026-01-01 |
|  Fair value (\*1) |  | 10,662 Won |
|  Valuation method |  | Black-Scholes Model |
|  Expected dividend rate |  | 5.05% |
|  Expected maturity date |  | 3 years |
|  Number of shares remaining | As of December 31, 2022 | 223,176 shares |
|  | As of December 31, 2021 |  |
|  Number of shares granted (\*2) | As of December 31, 2022 | 223,176 shares |
|  | As of December 31, 2021 |  |

---

---

| | |
|:---|:---|
| (\*1) | As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated and used to measure the liability according to the Black Shawls model based on the base price at the time of each settlement.  |

---

---

| | |
|:---|:---|
| (\*2) | The number of payable stocks is granted at the initial contract date and the payment rate is determined based on the achievement of the pre-determined performance targets. Performance is evaluated as long-term performance indication including relative shareholder return, net income, return on equity (ROE), non-performing loan ratio and job performance.  |

---

2) The Company accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of December 31, 2022 and 2021 the book value of the liabilities related to the performance condition share-based payments recognized by the Company is 8,266 million Won and 6,003 million Won. 

**28.** **NON-OPERATING INCOME (EXPENSES)** 

(1) Details of non-operating income and expenses recognized are as follows
(Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Other non-operating income | 61 | 126 |
|  Other non-operating expense | (1424) | (431) |
|  Total | (1363) | (305) |

---

(2) Details of other non-operating income recognized are as follows (Unit:
Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Lease change cancellation income | 5 | 1 |
|  Others | 56 | 125 |
|  Total | 61 | 126 |

---

(3) Details of other non-operating expenses recognized are as follows
(Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Donations | 1420 | 430 |
|  Lease change cancellation loss | 1 |  |
|  Others | 3 | 1 |
|  Total | 1424 | 431 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**29.** **INCOME TAX EXPENSE (INCOME) AND DEFERRED TAX** 

(1) Details of income tax expense (income) are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |  |
| | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 | Current tax expense: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current tax expense with respect to the current period |  |  |  |
|  Sub-total |  |  |  |
|  Deferred tax expense income |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in deferred tax liabilities (assets) due to temporary differences | (6979) | (5490) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense directly attributable to equity | 7994 | 883 |  |
|  Sub-total | 1015 | (4607) |  |
|  Income tax expense (income) | 1015 | (4607) |  |

---

(2) The relationship between income before income tax expense deduction and income tax expense in the current
comprehensive income statement is as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Net income before income tax expense | 1184264 | 590245 |
|  Tax calculated at statutory tax rate (\*1) | 315311 | 151955 |
|  Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effects of income that is exempt from taxation | (340038) | (181897) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of expenses that are not deductible in determining taxable profit | 750 | 441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of corporate tax due to consolidate tax plans | 23348 | 25016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1644 | (122) |
|  Sub-total | (314296) | (156562) |
|  Income tax expense (income) | 1015 | (4607) |
|  Effective tax rate (\*2) | 0.09% |  |

---

---

| | |
|:---|:---|
| (\*1) | The corporate tax rate is 11% up to 200 million won in tax basis, 22% over 200 million won to 20 billion Won, 24.2% over 20 billion Won to 300 billion Won and 27.5% over 300 billion Won.  |

---

(\*2) It is tax income for the year ended December 31, 2021, so the annual effective tax rate was not calculated.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(3) Details of changes in deferred income tax assets and liabilities are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Beginning balance | Recognized as<br>income (expense) | Recognized as<br>other comprehensive<br>income (expense) | Ending Balance |
|  Gain (loss) related to securities | 1019 |  | 8847 | 9866 |
|  Gain (loss) on valuation of derivatives | 90 | (90) |  |  |
|  Provision for loan losses | 20 | 63 |  | 83 |
|  Defined benefit liability | 2637 | (272) | (935) | 1430 |
|  Deposits with employee retirement insurance trust | (1186) | (1536) | 82 | (2640) |
|  Provisions | 108 | 21 |  | 129 |
|  Share based payment | 1650 | 539 |  | 2189 |
|  Others | 2116 | 260 |  | 2376 |
|  Net deferred tax assets (liabilities) in total | 6454 | (1015) | 7994 | 13433 |
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Beginning balance | Recognized as<br>income (expense) | Recognized as other<br>comprehensive<br>income (expense) | Ending Balance |
|  Gain (loss) related to securities | 106 |  | 913 | 1019 |
|  Gain (loss) on valuation of derivatives | (1993) | 2083 |  | 90 |
|  Provision for loan losses | 40 | (20) |  | 20 |
|  Defined benefit liability | 1770 | 984 | (117) | 2637 |
|  Deposits with employee retirement insurance trust | (1541) | 268 | 87 | (1186) |
|  Provisions | 215 | (107) |  | 108 |
|  Share based payment | 653 | 997 |  | 1650 |
|  Others | 1714 | 402 |  | 2116 |
|  Net deferred tax assets (liabilities) in total | 964 | 4607 | 883 | 6454 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(4) Unrealizable temporary differences are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Deductible temporary differences | 5639 | 5307 |
|  Taxable temporary differences | (7917618) | (7917618) |
|  Total | (7911979) | (7912311) |

---

No deferred income tax asset has been recognized for the deductible temporary difference of 5,639 million won associated with investments in subsidiaries as of December 31, 2022, because it is not probable that the temporary differences will be reversed in the foreseeable future.

No deferred income tax liability has been recognized for the taxable temporary difference of 7,917,618 million won associated with investment in subsidiaries as of December 31, 2022, due to the following reasons:

- The Company is able to control the temporary difference of extinguishment.

- It is probable that the temporary difference will not be reversed in the foreseeable future.

(5) Details of accumulated deferred tax charged directly to other equity are as follows (Unit: Korean Won in
millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Net gain (loss) on valuation of financial assets at FVTOCI | 9866 | 1019 |
|  Remeasurements of defined benefit plan | (412) | 441 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9454 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1460 |

---

(6) Current tax assets and liabilities are as follows (Unit: Korean Won in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Current tax assets |  | 14350 |  | 856 |
|  Current tax liabilities |  | 721795 |  | 468305 |

---

**30.** **EARNINGS PER SHARE ("EPS")** 

(1) Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number
of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

---

| | | |
|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Net income | 1183249 | 594852 |
|  Dividends to hybrid securities | (91757) | (66250) |
|  Net income attributable to common shareholders | 1091492 | 528602 |
|  Weighted average number of common shares outstanding (Unit: million shares) | 728 | 725 |
|  Basic EPS (Unit: Korean Won) | 1499 | 730 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(2) The weighted average number of common shares outstanding is as follows: (Unit: number of shares, days)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
|  | Period | Number of<br>shares | Dates | Accumulated<br>number of shares<br>outstanding during<br>period |
|  Common shares issued at the beginning of the period | 2022-01-01 ~ 2022-12-31 | 728060549 | 365 | 265742100385 |
|  Treasury stock | 2022-01-01 ~ 2022-12-31 | (2324) | 365 | (848260) |
|  Sub-total (①) | Sub-total (①) | Sub-total (①) | Sub-total (①) | 265741252125 |
|  Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | 728058225 |
|  | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
|  | Period | Number of<br>shares | Dates | Accumulated<br>number of shares<br>outstanding during<br>period |
|  Common shares issued at the beginning of the period | 2021-01-01 ~ 2021-12-31 | 722267683 | 365 | 263627704295 |
|  Treasury stock | 2021-01-01 ~ 2021-12-31 | (2) | 365 | (730) |
|  Acquisition of treasury stock | 2021-08-10 ~ 2021-12-31 | (2322) | 144 | (334368) |
|  Issuance of new shares (Comprehensive stock exchange) | 2021-08-10 ~ 2021-12-31 | 5792866 | 144 | 834172704 |
|  Sub-total (①) | Sub-total (①) | Sub-total (①) | Sub-total (①) | 264461541901 |
|  Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | Weighted average number of common shares outstanding (②=(①/365)) | 724552170 |

---

Diluted EPS is equal to basic EPS because there is no dilution effect for the year ended December 31, 2022 and 2021.

**31.** **CONTINGENT LIABILITIES AND COMMITMENTS** 

(1) Litigation case

As of December 31, 2022 and 2021, the Company has no litigation case in progress.

(2) Details of loan commitments with financial institutions are as follows (Unit: Korean Won in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | <br>Financial institutions | Line of<br>credit | Line of<br>credit | Loan<br>balance | Line of<br>credit | Line of<br>credit | Loan<br>balance |
|  Loans | Standard Chartered Bank Korea Ltd. |  | 100000 |  |  | 100000 |  |

---

(3) The Company decided to enter into a stock sales agreement with a major shareholder of Woori Asset Trust Co.,
Ltd (formerly Kukje Asset Trust Co., Ltd) to acquire 44.5% interest (58.6% of voting rights) during July, 2019, and to acquire additional 21.3% interest (28.0% of voting rights) after a certain period. As a result, the Company acquired the interest
of the first sales agreement in December 2019 and will acquire the second transaction stake at the end of March 2023.

In regards to this acquisition, the Company recognized 689 million won as derivative liabilities and 329 million won as derivative assets as of December 31, 2022 and 2021, respectively (seeing Note 19).

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**32.** **RELATED PARTY TRANSACTIONS** 

Related parties of the Company as of December 31, 2022 and 2021, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the year ended December 31, 2022 and 2021 are as follows:

(1) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| Related parties | Title of account | December 31, 2022 | December 31, 2021 |
|  Subsidiaries |  |  |  |
|  Woori Bank | Cash and cash equivalents | 313361 | 578725 |
|  | Other financial assets | 1945807 | 585052 |
|  | Allowance for credit losses | (315) | (72) |
|  | Other financial liabilities | 21242 | 3344 |
|  Woori Card Co., Ltd. | Other financial assets | 46920 | 45267 |
|  | Other financial liabilities | 281 | 276 |
|  Woori Financial Capital Co., Ltd. | Other financial assets | 46487 |  |
|  Woori Savings Bank | Other financial assets | 389 |  |
|  Woori Financial F&I Co., Ltd. | Other financial liabilities | 564 |  |
|  Woori Credit Information Co., Ltd. | Other financial assets | 535 | 52 |
|  | Other financial liabilities | 0 |  |
|  Woori Fund Service Co., Ltd. | Other financial assets | 834 | 931 |
|  | Other financial liabilities | 0 |  |
|  Woori Private Equity Asset Management Co. Ltd. | Other financial assets |  | 387 |
|  | Other financial liabilities | 127 |  |
|  Woori Global Asset Management Co., Ltd | Other financial assets | 101 |  |
|  Woori FIS Co., Ltd. | Other financial assets | 1054 | 1451 |
|  | Other financial liabilities | 480 | 436 |
|  Woori Finance Research Institute Co., Ltd. | Other financial assets | 66 | 15 |
|  | Other financial liabilities | 2160 | 1859 |
|  Associates of subsidiaries |  |  |  |
|  W Service Networks Co., Ltd. | Other financial liabilities | 90 | 96 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(2) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

---

| | | | |
|:---|:---|:---|:---|
| Related parties | Title of account | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |
|  Subsidiaries |  |  |  |
|  Woori Bank | Interest income | 25614 | 4236 |
|  | Fees and commissions income | 1596 | 1306 |
|  | Dividend income | 1175672 | 680200 |
|  | Interest expenses (\*2) | 17 | 41 |
|  | Fees and commissions expense | 12 | 13 |
|  | Provision (Reversal) of impairment loss due to credit loss | 244 | (76) |
|  | General and administrative expenses (\*2) | 4087 | 3632 |
|  Woori Card Co., Ltd. | Dividend income | 45617 | 5160 |
|  Woori Financial Capital Co., Ltd. | Dividend income | 35690 |  |
|  Woori Investment Bank Co., Ltd. (\*1) | Dividend income | 10263 | 5132 |
|  Woori Asset Trust Co., Ltd | Dividend income | 780 | 780 |
|  Woori Savings Bank | Dividend income | 2803 |  |
|  Woori Credit Information Co., Ltd. | Dividend income | 469 | 564 |
|  Woori Fund Service Co., Ltd. | Dividend income | 1100 | 769 |
|  Woori FIS Co., Ltd. | General and administrative expenses | 5469 | 4422 |
|  Woori Finance Research Institute Co., Ltd. | Fees and commissions expenses | 6960 | 6790 |
|  Associates of subsidiaries |  |  |  |
|  W Service Networks Co., Ltd. | General and administrative expenses | 1078 | 1169 |

---

---

| | |
|:---|:---|
| (\*1) | Of the 820,000 million Won of hybrid securities issued during the current period, 55,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the Company paid 83 million Won as an acquisition fee which is included in the issuance cost of hybrid securities. Also, Of the 80,000 million Won of debentures issued during the current period, 10,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the Company paid 10 million Won as an acquisition fee which is included in the discount on debentures issued. Of the 220,000 million Won of debentures issued during the prior period, 19,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the Company paid 19 million Won as an acquisition fee which is included in the discount on debentures issued. Also, of the 400,000 million Won of hybrid securities issued during the prior period, 33,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the Company paid 50 million Won as an acquisition fee which is included in the issuance cost of hybrid securities.  |

---

(\*2) The depreciation of right-of-use assets and interest expense of lease liabilities arising from lease transactions during the current term and prior term are included.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

(3) The details of the right-of-use assets and lease liabilities due to lease transactions with related parties as of December 31, 2022 and 2021 are as follows (Unit: Korea Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Related parties | Related parties | Title of account | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 |
|  Subsidiaries | Woori Bank | Right-of-use assets |  | 5462 |  | 2272 |
|  |  | Lease liabilities (\*) |  | 5325 |  | 2493 |

---

(\*) Cash outflows of lease liabilities redemption for the years ended December 31, 2022 and 2021 are 2,658 million won and 2,467 million won, respectively.

(4) The details of loan and borrowing transactions with related parties for the years ended December 31, 2022
and 2021 are as follows (Unit: Korea Won in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Related parties (\*1) | Related parties (\*1) | Title of account | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
| Related parties (\*1) | Related parties (\*1) | Title of account | Beginning<br>balance | Increase | Decrease | Ending<br>balance |
|  Subsidiaries | Woori Bank | Due from banks (\*2) | 520000 | 3930000 | 2855000 | 1595000 |

---

---

| | |
|:---|:---|
| (\*1) | Of the 820,000 million Won of hybrid securities issued during the current period, 55,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the entire amount was sold to the market on the date of issuance. Of the 80,000 million Won of debentures issued during the current period, 10,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the entire amount was sold to the market on the date of issuance.  |

---

(\*2) Excludes due from banks without withdrawal limitations.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Related parties (\*1) | Related parties (\*1) | Title of account | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
| Related parties (\*1) | Related parties (\*1) | Title of account | Beginning<br>balance | Increase | Decrease | Ending<br>balance |
|  Subsidiaries | Woori Bank | Due from banks (\*2) | 450000 | 2250000 | 2180000 | 520000 |

---

---

| | |
|:---|:---|
| (\*1) | Of the 220,000 million Won of debentures issued during the prior period, 19,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the entire amount was sold to the market on the date of issuance. Of the 400,000 million Won of hybrid securities issued during the prior period, 33,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the entire amount was sold to the market on the date of issuance.  |

---

(\*2) Excludes due from banks without withdrawal limitations.

(5) The details of equity-related transactions with related parties are as follows (Unit: Korean Won in million)

---

| | | | |
|:---|:---|:---|:---|
| | | For the year ended December 31, 2022 | For the year ended December 31, 2022 |
| Related parties | Related parties | Investment (\*1) | Acquisition of hybrid<br>securities |
|  Subsidiaries | Woori Financial F&I Co., Ltd. | 200000 |  |
|  Subsidiaries | Woori Financial Capital Co., Ltd. |  | 200000 |
|  Subsidiaries | Woori Private Equity Asset Management Co. Ltd. | 50000 |  |

---

---

| | |
|:---|:---|
| (\*1) | During the current period, Woori Financial F&I Co., Ltd. was established (100% share ratio, 200 billion won in stock payments) and included as a subsidiary.  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | For the year ended December 31, 2021 | For the year ended December 31, 2021 | For the year ended December 31, 2021 |
| Related parties | Related parties | Interest of Woori Savings<br>Bank (\*1) | Interest of Woori Financial<br>Capital Co., Ltd (\*2) | Investment |
|  Subsidiaries | Woori Financial Capital Co., Ltd. | 113238 | 88011 | 200000 |
|  | Woori Savings Bank |  |  | 100000 |

---

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

---

| | |
|:---|:---|
| (\*1) | The Company acquired 100% interest of Woori Savings Bank from its subsidiary, Woori Financial Capital Co., Ltd. during the prior period.  |

---

(\*2) During the prior period, the Company acquired treasury stocks held by Woori Financial Capital Co., Ltd. and the remaining interest thereof.

(6) There are no guarantees provided to the related parties as of December 31, 2022 and 2021. The unused
commitments and payment guarantees provided from the related parties are as follows (Unit: Korean Won in millions):

Related parties <u>December 31, 2022</u> <u>December 31, 2021</u> <u>Warranty</u> <br> Subsidiaries Woori Card Co., Ltd. 741 174 Unused loan commitment

(7) Compensation for key management is as follows (Unit: Korean Won in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |  |  |  |
| | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 | Short-term employee salaries | 7432.0 | 6698.0 |
|  Retirement benefit service costs | 213 | 212 |  |  |  |
|  Share-based compensation | 1836 | 2657 |  |  |  |
|  Total | 9481 | 9567 |  |  |  |

---

Key management includes registered executives and non-registered executives. The Company has not recognized any outstanding assets, allowance and related impairment loss due to credit losses from transaction with key management as of December 31, 2022 and 2021. Liabilities related to key management compensation are 10,272 million won and 7,550 million won as of December 31, 2022 and 2021, respectively.

------

**WOORI FINANCIAL GROUP INC.** 

**NOTES TO SEPARATE FINANCIAL STATEMENTS** 

**DECEMBER 31, 2022 AND 2021** 

**33.** **LEASES** 

(1) The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):

---

| | | |
|:---|:---|:---|
|  | December 31, 2022 | December 31, 2021 |
|  Lease payments: |  |  |
|  Within one year | 3098 | 2044 |
|  After one year but within five years | 3070 | 930 |
|  Total | 6168 | 2974 |

---

(2) Total cash outflows from lease are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 |  |  |  |
| For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 | Cash outflows from lease | 3239.0 | 2996.0 |

---

(3) Details of lease payments that are not included in the measurement of lease liabilities due to the fact that
they are leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2022 | For the year ended<br>December 31, 2021 | For the year ended<br>December 31, 2021 |
|  Lease payments for which the underlying short-term lease payments |  | 10 |  |  |
|  Lease payments for which the underlying asset is of low value |  | 157 |  | 132 |

---

There are no lease payments not included in the lease liabilities measurement, resulting from short-term leases for the years ended December 31, 2022 and 2021.

**34.** **EVENTS AFTER THE REPORTING PERIOD** 

On February 27, 2023, the Company signed a stock sale contract to acquire a 52% stake in Daol Investment Co., Ltd. and will be included as a subsidiary in March 2023.

------

![LOGO](g473977dsp3.jpg)

**Report on Independent Auditor's** 

**Audit of Internal Control over Financial Reporting** 

(English Translation of a Report Originally Issued in Korean)

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

**Opinion on Internal Control over Financial Reporting** 

We have audited Woori Financial Group Inc. (the Company)'s Internal Control over Financial Reporting as at December 31, 2022, based on *Conceptual Framework for Designing and Operating Internal Control over Financial Reporting*.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as at December 31, 2022, based on *Conceptual Framework for Designing and Operating Internal Control over Financial Reporting*.

We also have audited, in accordance with Korean Standards on Auditing, the separate financial statements of the Company, which comprise the separate statement of financial position as at December 31, 2022, and the separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flow for the year then ended, and notes to the separate financial statements including a summary of significant accounting policies, and our report dated March 07, 2023 expressed unqualified opinion.

**Basis for Opinion on Internal Control over Financial Reporting** 

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibility under these standards are further described in the *Auditor's Responsibilities for the Audit of Internal Control over Financial Reporting* section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of internal control over financial reporting and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management and Those Charged with Governance for Internal Control over Financial Reporting** 

Management is responsible for designing, implementing and maintaining effective internal control over financial reporting, and for its assessment about the effectiveness of internal control over financial reporting, included in the accompanying Operating Status Report of Internal Control over Financial Reporting.

Those charged with governance have the responsibilities for overseeing internal control over financial reporting.

**Auditor's Responsibilities for the Audit of Internal Control over Financial Reporting** 

Our responsibility is to express opinion on the Company's internal control over financial reporting based on our audit. We conducted the audit in accordance with Korean Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

An audit of internal control over financial reporting involves performing procedures to obtain audit evidence about whether a material weakness exists. The procedures selected depend on the auditor's judgment, including the assessment of the risks that a material weakness exists. An audit includes obtaining an understanding of internal control over financial reporting and testing and evaluating the design and operating effectiveness of internal control over financial reporting based on the assessed risk.

![LOGO](g473977dsp3a.jpg)

------

**Definition and Inherent Limitations of Internal Control over Financial Reporting** 

An entity's internal control over financial reporting is a process effected by those charged with governance, management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. An entity's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, and that receipts and expenditures of the entity are being made only in accordance with authorizations of management and those charged with governance; and (3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the entity'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 and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor's report is Sung-Jae Lim, Certified Public Accountant.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 7, 2023

This report is effective as of March 7, 2023, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the Company's internal control over financial reporting thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

------

**Operating Status Report of** 

**Internal Control over Financial Reporting** 

To the Shareholders, Board of Directors and Audit Committee of

Woori Financial Group Inc.

We, as the Chief Executive Officer ("CEO") and Internal Control over Financial Reporting ("ICFR") Officer of Woori Financial Group Inc. (the "Company"), assessed operating status of the Company's Internal Control over Financial Reporting for the year ended December 31, 2022.

The Company's management, including ourselves, is responsible for designing and operating ICFR.

We assessed whether the Company effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in financial statements to ensure preparation and disclosure of reliable financial information.

We used the 'Conceptual Framework for Designing and Operating Internal Control over Financial Reporting' established by the Operating Committee of Internal Control over Financial Reporting in Korea (the "ICFR Committee") as the criteria for design and operation of the Company's ICFR. We also conducted an assessment of ICFR based on the 'Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting' established by the ICFR Committee.

Based on our assessment, we concluded that the Company's ICFR is designed and operated effectively as of December 31, 2022, in all material respects, in accordance with the 'Conceptual Framework for Designing and Operating Internal Control over Financial Reporting'.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings, and we have reviewed and verified this report with sufficient care.

February 24, 2023

---

| |
|:---|
| Tae Seung Son, Chief Executive Officer |
| Sung Wook Lee, Internal Control over Financial Reporting Officer |

---