# EDGAR Filing Document

**Accession Number:** 0001445930
**File Stem:** 0001193125-23-062017
**Filing Date:** 2023-3
**Character Count:** 1287395
**Document Hash:** 664ae68e8017cd666344ac7ce3f9aa2f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-062017.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001193125-23-062017

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20230307

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KB Financial Group Inc.
- **CENTRAL INDEX KEY:** 0001445930
- **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:** 000-53445
- **FILM NUMBER:** 23710973

**BUSINESS ADDRESS:**
- **STREET 1:** 141, UISADANG-DAERO
- **STREET 2:** YEONGDEUNGPO-GU
- **CITY:** SEOUL
- **STATE:** M5
- **ZIP:** 07332
- **BUSINESS PHONE:** 822-2073-2845

**MAIL ADDRESS:**
- **STREET 1:** 141, UISADANG-DAERO
- **STREET 2:** YEONGDEUNGPO-GU
- **CITY:** SEOUL
- **STATE:** M5
- **ZIP:** 07332

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

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**Form 6-K** 

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**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: 000-53445** 

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

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**26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea** 

**(Address of principal executive office)** 

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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 submitted to furnish a report or other document that the registrant 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.

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##### [**Table of Contents**](#toc)
**Audit Report of KB Financial Group Inc. for Fiscal Year 2022** 

On March 7, 2023, KB Financial Group Inc. ("KB Financial Group") disclosed audit reports for fiscal year 2022 based on the International Financial Reporting Standards as adopted by the Republic of Korea (including the consolidated and separate financial statements of KB Financial Group as of and for the years ended December 31, 2022 and 2021 and related notes) received from KPMG Samjong Accounting Corp., its independent auditor. The financial statements in such reports have not been approved by the shareholders of KB Financial Group and remain subject to change.

KB Financial Group is furnishing the following documents as exhibits to this Form 6-K filing:

Exhibit 99.1: [An English-language translation of the Consolidated Audit Report of KB Financial Group for FY 2022.](#tx474003_101)

Exhibit 99.2: [An English-language translation of the Separate Audit Report of KB Financial Group for FY 2022.](#tx474003_102)

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

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| | | |
|:---|:---|:---|
|  | KB Financial Group Inc. | KB Financial Group Inc. |
|  | (Registrant) | (Registrant) |
| Date: March 7, 2023 | By: | /s/ Scott Y. H. Seo |
|  | (Signature) | (Signature) |
|  | Name: Scott Y. H. Seo | Name: Scott Y. H. Seo |
|  | Title: Senior Executive Vice President and Chief Finance Officer | Title: Senior Executive Vice President and Chief Finance Officer |

---

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

**KB Financial Group Inc. and Subsidiaries** 

**Consolidated Interim Financial Statements** 

**Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

(With Independent Auditors' Report Thereon)

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

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| | | |
|:---|:---|:---|
|  | **Page** | **Page** |
|  [Independent Auditors' Report](#ex99_1474003_1) |  | 1 |
|  [Consolidated Statements of Financial Position](#ex99_1474003_2) |  | 5 |
|  [Consolidated Statements of Comprehensive Income](#ex99_1474003_3) |  | 6 |
|  [Consolidated Statements of Changes in Equity](#ex99_1474003_4) |  | 8 |
|  [Consolidated Statements of Cash Flows](#ex99_1474003_5) |  | 9 |
|  [Notes to the Consolidated Financial Statements](#ex99_1474003_6) |  | 11 |

---

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##### [**Table of Contents**](#toc)
**<u>Independent Auditors' Report</u>**

Based on a report originally issued in Korean

The Board of Directors and Stockholders

KB Financial Group Inc.:

*Opinion* 

We have audited the consolidated financial statements of KB Financial Group Inc. and its subsidiaries ("the Group"), which comprise the consolidated statements of financial position as of December 31, 2022 and 2021, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising significant accounting policies and other explanatory information.

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

*Basis for Opinion* 

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

*Key Audit Matters* 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statement as of and for the year ended December 31, 2022. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

**(1) Assessment of the allowances for credit losses for loans** 

As discussed in Notes 3.6, 4.2, 10 and 11 to the consolidated financial statements, the Group recognized an allowance for credit losses using the Expected Credit Loss (ECL) impairment model for loans at amortized cost amounting to KRW 4,158,625 million as of December 31, 2022. A lifetime ECL is recognized for those loans that have experienced a Significant Increase in Credit Risk (SICR) since initial recognition or are credit impaired, otherwise a 12-month ECL is recognized. The Group measures ECL allowances on an individual basis for individually significant corporate loans which are credit impaired and for those which have experienced a SICR and demonstrate certain other high risk indicators (for example, debt restructuring). The individual assessment involves judgment by the Group in estimating the future cash flows expected from collateral. The allowance for credit losses for other loans are measured on a collective basis. For these loans, the Group measures ECL based on its estimates of the Probability of Default (PD), the Loss Given Default (LGD) and the Exposure at Default (EAD) as well as the impact of Forward-Looking Information (FLI). For the corporate loans measured on a collective basis, one of the relevant inputs for determining PD is the internal credit risk rating of the borrower. The internal credit risk rating of the borrower is defined by the Group using quantitative and qualitative factors. The evaluation of the qualitative factors involves a high level of judgment by the Group.

We identified the following risks in accordance with the assessment of the allowances for credit losses for loans as a key audit matter, considering likelihood of error, management judgement, and risk of material misstatement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risk that the Group's estimation of future cash flows for the corporate loans to be individually assessed
for ELC is inappropriate due to over or under estimation of assets held as collateral by the Group

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks that (i) the analysis of the qualitative factors in determining the internal credit risk ratings of
the corporate loans to be collectively assessed for ELC is inappropriate; (ii) the calculation of 12 month and lifetime PD, the calculation of LGD, and the evaluation if FLI incorporated in the measurement of collective ECL is inappropriate due
to fraud or error

The following are the primary procedures we performed to address this key audit matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We evaluated the design and tested the operating effectiveness of certain internal controls related to:
(i) the estimates of future cash flows for individually assessed corporate loans, including controls over the work of external valuation professionals engaged by the Group to assess the value of collateral; (ii) the validation of the
models used to determine the inputs to the collective ECL calculation and the impact of FLI; (iii) the assessment of qualitative factors in the process of determining the internal credit risk rating of the loans; (iv) the completeness and
accuracy of quantitative data used in the credit risk ratings; and (v) the process that the qualitative factors and quantitative data are applied to the internal credit risk rating by involving information technology professionals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We assessed the estimates of future cash flows expected from collateral on a sample of individually assessed
corporate loans by (i) comparing assumptions made with information obtained from internal and external sources; and (ii) assessing the reliability of information used in the estimates, including the qualification of external valuation
professionals engaged by the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We involved credit risk professionals with specialized skills, industry knowledge and relevant experience who
assisted in: (i) evaluating the methodology and key judgments used in determining the PD and LGD parameters; (ii) evaluating how FLI was incorporated in the collective ECL model; and (iii) recalculating forward-looking PD, and a
sample of LGD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We evaluated whether, for a sample of corporate loans with ECL measured on a collective basis, Group policy was
applied in the internal credit risk rating process.

**(2) Internally measured fair value of level 3 derivatives, and level 3 derivative-linked securities** 

As discussed in Notes 3.3.2 and 6.1.2 to the consolidated financial statements, the Group classifies financial instruments measured at fair value using valuation techniques where one or more significant inputs are not based on observable market data as level 3 in the fair value hierarchy. Those financial instruments measured at fair value classified as level 3 include derivatives and derivative-linked securities both held and issued by KB Securities Co., Ltd. (a subsidiary of the Group), of which fair value is measured by the internally developed valuation models. The fair value of such derivative assets and liabilities as of December 31, 2022 was KRW 120,775 million and KRW 777,542 million, respectively. Also, the fair value of such derivative-linked securities held (presented as 'financial assets at fair value through profit or loss – debt securities') and issued (presented as 'financial liabilities designated at fair value through profit or loss') as of December 31, 2022 was KRW 404,334 million and KRW 8,241,509 million, respectively. In order to measure the fair value of these financial instruments, the Group uses valuation models such as discounted cash flow models and option models. These models use various inputs and assumptions, depending on the nature of the financial instruments.

We identified the following risks in accordance with the measurement of fair value of the derivatives and derivative-linked securities as a key audit matter considering the level of judgement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks that (i) the models used by the Group to value the level 3 financial instruments are inappropriate;
(ii) the models' significant inputs which are not directly observable in financial markets, (such as volatility of underlying assets, correlations, regression coefficients, discount rates, etc.) are inappropriate

The following are the primary procedures we performed to address this key audit matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We evaluated the design and tested the operating effectiveness of certain internal controls related to the
measurement of fair value of the derivatives and derivative-linked securities. This included controls related to (i) the development, validation and changes in the models used to value derivatives and derivative-linked securities, (ii) the
development and application of the significant unobservable inputs and assumptions used in the measurement of fair values, and (iii) the monitoring of changes to these inputs and assumptions.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We involved valuation professionals with specialized skills and knowledge, who assisted in: (i) evaluating
the valuation techniques and significant unobservable inputs on a selection of the derivatives and derivative-linked securities; and (ii) developing models and significant unobservable inputs independently for a selection of the derivatives and
derivative-linked securities and comparing the resulting fair value estimates to the Group's fair value measurements.

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

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

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

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

*Auditors' Responsibilities for the Audit of the Consolidated Financial Statements* 

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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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 the internal controls 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 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 consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' 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 auditors' report is Young-Min Kwon.

/s/ KPMG Samjong Accounting Corp.

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 consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Consolidated Statements of Financial Position** 

**December 31, 2022 and 2021** 

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*(in millions of Korean won)* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Notes** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 467839 | W | 32063421 | W | 31009374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 46812 |  | 64935344 |  | 66005815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 469 |  | 9446134 |  | 3721370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 461011 |  | 436530502 |  | 417900273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments | 46812 |  | 116588575 |  | 104847871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in associates and joint ventures | 13 |  | 682670 |  | 448718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment | 14 |  | 4991467 |  | 5239898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment property | 14 |  | 3148340 |  | 2514944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 15 |  | 3200399 |  | 3266357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit assets | 25 |  | 478934 |  | 100083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax assets |  |  | 204690 |  | 98798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets | 1734 |  | 251085 |  | 159093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held for sale | 18 |  | 211758 |  | 237318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets of a disposal group held for sale | 18 |  |  |  | 171749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 4619 |  | 28437529 |  | 28174173 |
|  **Total assets** |  | W | 701170848 | W | 663895834 |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 4620 | W | 12271604 | W | 12088980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 469 |  | 9506709 |  | 3682258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 4621 |  | 388888452 |  | 372023918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 4622 |  | 71717366 |  | 56912374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 4623 |  | 68698203 |  | 67430188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions | 24 |  | 968819 |  | 808604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit liabilities | 25 |  | 85745 |  | 225521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax liabilities |  |  | 997675 |  | 662672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities | 1734 |  | 22693 |  | 1470981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance liabilities | 38 |  | 58230303 |  | 57165936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 4626 |  | 40140365 |  | 43130482 |
|  **Total liabilities** |  |  | 651527934 |  | 615601914 |
|  **Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share capital |  |  | 2090558 |  | 2090558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities |  |  | 4434251 |  | 2838221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus |  |  | 16940731 |  | 16940231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income(loss) | 36 |  | (2713053) |  | 1047274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income relating to assets of a disposal group held for sale | 18, 36 |  |  |  | 7671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  |  | 28446513 |  | 25672815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury shares |  |  | (836188) |  | (1136188) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Equity attributable to shareholders of the Parent Company** | 27 |  | 48362812 |  | 47460582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  | 1280102 |  | 833338 |
|  **Total equity** |  |  | 49642914 |  | 48293920 |
|  **Total liabilities and equity** |  | W | 701170848 | W | 663895834 |

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The above consolidated statements of financial position should be read in conjunction with the accompanying notes.

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**KB Financial Group Inc. and Subsidiaries** 

**Consolidated Statements of Comprehensive Income** 

**Years Ended December 31, 2022 and 2021** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Korean won, except per share amounts)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  Interest income |  | W | 20788518 | W | 15210878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at fair value through other comprehensive income and amortized cost |  |  | 19912128 |  | 14620490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at fair value through profit or loss |  |  | 876390 |  | 590388 |
|  Interest expense |  |  | (7675584) |  | (3981306) |
|  **Net interest income** | 528 |  | 13112934 |  | 11229572 |
|  Fee and commission income |  |  | 5121520 |  | 5323606 |
|  Fee and commission expense |  |  | (1799888) |  | (1698023) |
|  **Net fee and commission income** | 529 |  | 3321632 |  | 3625583 |
|  Insurance income |  |  | 17136842 |  | 16107858 |
|  Insurance expense |  |  | (16440329) |  | (15551147) |
|  **Net insurance income** | 538 |  | 696513 |  | 556711 |
|  Net gains on financial instruments at fair value through profit or loss before applying overlay approach |  |  | (359158) |  | 1160981 |
|  Losses on overlay adjustments |  |  | 606515 |  | (165677) |
|  **Net gains on financial instruments at fair value through profit or loss** | 530 |  | 247357 |  | 995304 |
|  **Net other operating expenses** | 531 |  | (2365791) |  | (1923567) |
|  **General and administrative expenses** | 532 |  | (7537802) |  | (7200853) |
|  **Operating income before provision for credit losses** | 5 |  | 7474843 |  | 7282750 |
|  **Provision for credit losses** | 5711121924 |  | (1835988) |  | (1185133) |
|  **Net operating income** |  |  | 5638855 |  | 6097617 |
|  Share of profit (loss) of associates and joint ventures | 13 |  | (28758) |  | 93526 |
|  Net other non-operating income (expenses) | 33 |  | 185529 |  | (109537) |
|  **Net non-operating income (expenses)** |  |  | 156771 |  | (16011) |
|  **Profit before income tax expense** |  |  | 5795626 |  | 6081606 |
|  **Income tax expense** | 34 |  | (1622387) |  | (1697225) |
|  **Profit for the year** | 5 |  | 4173239 |  | 4384381 |

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(Continued)

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Consolidated Statements of Comprehensive Income** 

**Years Ended December 31, 2022 and 2021 (cont'd)** 

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*(in millions of Korean won, except per share amounts)* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  Items that will not be reclassified to profit or loss: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities | 25 | W | 239702 | W | (45510) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income (loss) of associates and joint ventures |  |  | 183 |  | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on equity securities at fair value through other comprehensive income |  |  | (931731) |  | 903398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |  |  | 38867 |  | 13715 |
|  |  |  | (652979) |  | 871654 |
|  Items that may be reclassified subsequently to profit or loss: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  | 164530 |  | 255907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on debt securities at fair value through other comprehensive income |  |  | (2375084) |  | (924698) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income (loss) of associates and joint ventures |  |  | (545) |  | 498 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on cash flow hedging instruments | 9 |  | 31474 |  | 20864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on hedging instruments of net investments in foreign operations | 9 |  | (79085) |  | (57935) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive loss arising from separate account |  |  | (159619) |  | (63814) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on overlay adjustment | 38 |  | (440129) |  | 120282 |
|  |  |  | (2858458) |  | (648896) |
|  **Other comprehensive income for the year, net of tax** |  |  | (3511437) |  | 222758 |
|  **Total comprehensive income for the year** |  | W | 661802 | W | 4607139 |
|  **Profit attributable to:** | 5 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders of the Parent Company |  | W | 4394830 | W | 4409543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  |  | (221591) |  | (25162) |
|  |  | W | 4173239 | W | 4384381 |
|  **Total comprehensive income for the year attributable to:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders of the Parent Company |  | W | 869854 | W | 4610549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  |  | (208052) |  | (3410) |
|  |  | W | 661802 | W | 4607139 |
|  **Earnings per share** | 37 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share |  | W | 10955 | W | 11134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share |  |  | 10705 |  | 10890 |

---

The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Consolidated Statements of Changes in Equity** 

**Years Ended December 31, 2022 and 2021** 

------

*(in millions of Korean won)* 

---

| | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | **Equity attributable to shareholders of the Parent Company** | | | | |
|  |<br>**Notes** | **Share<br>capital** | **Share<br>capital** | **Hybrid<br>securities** | **Hybrid<br>securities** | **Capital<br>surplus** | **Capital<br>surplus** | **Accumulated<br>other<br>comprehensive<br>income** | **Accumulated<br>other<br>comprehensive<br>income** | **Accumulated other<br>comprehensive<br>income relating to<br>assets of a disposal<br>group held for sale** | **Accumulated other<br>comprehensive<br>income relating to<br>assets of a disposal<br>group held for sale** | **Retained<br>earnings** | **Retained<br>earnings** | **Treasury<br>shares** | **Treasury<br>shares** | **Non-controlling<br>interests** | **Non-controlling<br>interests** | **Total**<br>**equity** | **Total**<br>**equity** |
|  **Balance as of January 1, 2021** |  | W | 2090558 | W | 1695988 | W | 16723589 | W | 630011 | W |  | W | 22540616 | W | (1136188) | W | 857783 | W | 43402357 |
|  **Comprehensive income for the year** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  |  |  |  |  |  |  |  |  |  |  |  | 4409543 |  |  |  | (25162) |  | 4384381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  |  | (45742) |  |  |  |  |  |  |  | 232 |  | (45510) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  |  |  |  |  |  |  | 241273 |  |  |  |  |  |  |  | 14634 |  | 255907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings |  |  |  |  |  |  |  |  | 201697 |  |  |  | (223928) |  |  |  | 931 |  | (21300) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive loss of associates and joint ventures |  |  |  |  |  |  |  |  | 549 |  |  |  |  |  |  |  |  |  | 549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on cash flow hedging instruments |  |  |  |  |  |  |  |  | 20864 |  |  |  |  |  |  |  |  |  | 20864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on hedging instruments of net investments in foreign operations |  |  |  |  |  |  |  |  | (57935) |  |  |  |  |  |  |  |  |  | (57935) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive loss arising from separate account |  |  |  |  |  |  |  |  | (63814) |  |  |  |  |  |  |  |  |  | (63814) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |  |  |  |  |  |  |  |  | 13715 |  |  |  |  |  |  |  |  |  | 13715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on overlay adjustments |  |  |  |  |  |  |  |  | 120282 |  |  |  |  |  |  |  |  |  | 120282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer within equity |  |  |  |  |  |  |  |  | (7671) |  | 7671 |  |  |  |  |  |  |  |  |
|  **Total comprehensive income for the year** |  |  |  |  |  |  |  |  | 423218 |  | 7671 |  | 4185615 |  |  |  | (9365) |  | 4607139 |
|  **Transactions with shareholders** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual dividends paid to shareholders of the Parent Company |  |  |  |  |  |  |  |  |  |  |  |  | (689653) |  |  |  |  |  | (689653) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quarterly dividends paid to shareholders of the Parent Company |  |  |  |  |  |  |  |  |  |  |  |  | (292226) |  |  |  |  |  | (292226) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  |  |  | 1142233 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1142233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  |  |  |  | (71537) |  |  |  | (24145) |  | (95682) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests changes in business combination |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1994 |  | 1994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transactions with non-controlling interests |  |  |  |  |  |  | 216853 |  | (5955) |  |  |  |  |  |  |  | (18306) |  | 192592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  | (211) |  |  |  |  |  |  |  |  |  | 25377 |  | 25166 |
|  **Total transactions with shareholders** |  |  |  |  | 1142233 |  | 216642 |  | (5955) |  |  |  | (1053416) |  |  |  | (15080) |  | 284424 |
|  **Balance as of December 31, 2021** |  | W | 2090558 | W | 2838221 | W | 16940231 | W | 1047274 | W | 7671 | W | 25672815 | W | (1136188) | W | 833338 | W | 48293920 |
|  **Balance as of January 1, 2022** |  | W | 2090558 | W | 2838221 | W | 16940231 | W | 1047274 | W | 7671 | W | 25672815 | W | (1136188) | W | 833338 | W | 48293920 |
|  **Comprehensive income for the year** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  |  |  |  |  |  |  |  |  |  |  |  | 4394830 |  |  |  | (221591) |  | 4173239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  |  | 239624 |  |  |  |  |  |  |  | 78 |  | 239702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  |  |  |  |  |  |  | 157281 |  | (7671) |  |  |  |  |  | 14920 |  | 164530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on financial instruments at fair value through other <br>comprehensive income and transfer to retained earnings |  |  |  |  |  |  |  |  | (3548378) |  |  |  | 243021 |  |  |  | (1458) |  | (3306815) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income of associates and joint ventures |  |  |  |  |  |  |  |  | (362) |  |  |  |  |  |  |  |  |  | (362) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on cash flow hedging instruments |  |  |  |  |  |  |  |  | 31474 |  |  |  |  |  |  |  |  |  | 31474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on hedging instruments of net investments in foreign operations |  |  |  |  |  |  |  |  | (79085) |  |  |  |  |  |  |  |  |  | (79085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive loss arising from separate account |  |  |  |  |  |  |  |  | (159619) |  |  |  |  |  |  |  |  |  | (159619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value changes of financial liabilities designated at fair value <br>through profit or loss due to own credit risk |  |  |  |  |  |  |  |  | 38867 |  |  |  |  |  |  |  |  |  | 38867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on overlay adjustments |  |  |  |  |  |  |  |  | (440129) |  |  |  |  |  |  |  |  |  | (440129) |
|  **Total comprehensive income for the year** |  |  |  |  |  |  |  |  | (3760327) |  | (7671) |  | 4637851 |  |  |  | (208051) |  | 661802 |
|  **Transactions with shareholders** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual dividends paid to shareholders of the Parent Company |  |  |  |  |  |  |  |  |  |  |  |  | (853299) |  |  |  |  |  | (853299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quarterly dividends paid to shareholders of the Parent Company |  |  |  |  |  |  |  |  |  |  |  |  | (584452) |  |  |  |  |  | (584452) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  |  |  | 1596030 |  |  |  |  |  |  |  |  |  |  |  | 431807 |  | 2027837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  |  |  |  | (126402) |  |  |  | (36094) |  | (162496) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; retirement of treasury shares |  |  |  |  |  |  |  |  |  |  |  |  | (300000) |  | 300000 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  | 500 |  |  |  |  |  |  |  |  |  | 259102 |  | 259602 |
|  **Total transactions with shareholders** |  |  |  |  | 1596030 |  | 500 |  |  |  |  |  | (1864153) |  | 300000 |  | 654815 |  | 687192 |
|  **Balance as of December 31, 2022** |  | W | 2090558 | W | 4434251 | W | 16940731 | W | (2713053) | W |  | W | 28446513 | W | (836188) | W | 1280102 | W | 49642914 |

---

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Consolidated Statements of Cash Flows** 

**Years Ended December 31, 2022 and 2021** 

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Korean won)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  **Cash flows from operating activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  | W | 4173239 | W | 4384381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for non-cash items |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains on financial assets at fair value through profit or loss |  |  | (437347) |  | (274515) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net losses (gains) on derivative financial instruments for hedging purposes |  |  | 141759 |  | 213996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses |  |  | 1835988 |  | 1185133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net losses (gains) on financial investments |  |  | 236685 |  | 97813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of loss (profit) of associates and joint ventures |  |  | 28758 |  | (93526) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense |  |  | 878841 |  | 850614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization expense of VOBA |  |  | 137617 |  | 156074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net losses (gains) on property and equipment/intangible assets |  |  | (251858) |  | 1974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments |  |  | 58275 |  | 101935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for policy reserves |  |  | 1046300 |  | 2761135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits |  |  | 249874 |  | 237315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income |  |  | (89588) |  | 256736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on foreign currency translation |  |  | 669989 |  | (665282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on a bargain purchase |  |  |  |  | (288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses |  |  | 800935 |  | 721459 |
|  |  |  | 5306228 |  | 5550573 |
| &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; Financial asset at fair value through profit or loss |  |  | 3121774 |  | (6149781) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial instruments |  |  | 546095 |  | 39343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through other comprehensive income |  |  | (49352) |  | (24618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | (21129553) |  | (41457544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax assets |  |  | (105892) |  | 10581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets |  |  | (91429) |  | (92967) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 2, 39 |  | (1222952) |  | 950313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss |  |  | 1252561 |  | 759989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  | 16566047 |  | 32497922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax liabilities |  |  | 335003 |  | (102273) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities |  |  | (152767) |  | 294130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  |  | (2862918) |  | 1314561 |
|  |  |  | (3793383) |  | (11960344) |
|  **Net cash outflow from operating activities** |  |  | 5686084 |  | (2025390) |

---

(Continued)

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Consolidated Statements of Cash Flows** 

**Years Ended December 31, 2022 and 2021 (cont'd)** 

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Korean won)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  **Cash flows from investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instruments for hedging purposes |  |  | (166066) |  | 427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial asset at fair value through profit or loss |  |  | 9513537 |  | 13788604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial asset at fair value through profit or loss |  |  | (12807238) |  | (12298792) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial investments |  |  | 25993266 |  | 50825909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial investments |  |  | (43612269) |  | (56633996) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investments in associates and joint ventures |  |  | 167690 |  | 678636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of investments in associates and joint ventures |  |  | (430400) |  | (261881) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of property and equipment |  |  | 31181 |  | 7016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and equipment |  |  | (296937) |  | (286613) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investment property |  |  | 1292114 |  | 177033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of investment property |  |  | (649961) |  | (118961) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of intangible assets |  |  | 5654 |  | 8203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets |  |  | (237258) |  | (191696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from changes in ownership of subsidiaries |  |  | 932428 |  | 374992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | (21456) |  | 75105 |
|  **Net cash outflow from investing activities** |  |  | (20285715) |  | (3856014) |
|  **Cash flows from financing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instruments for hedging purposes |  |  | 33402 |  | 5870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in borrowings |  |  | 14669649 |  | 7321582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in debentures |  |  | 107607314 |  | 121767039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in debentures |  |  | (106631213) |  | (117509585) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in other payables to trust accounts |  |  | (1225402) |  | (509106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to shareholders of the Parent Company |  |  | (1437751) |  | (981879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid on hybrid securities |  |  | (126402) |  | (71537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  | 1596030 |  | 1142233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in non-controlling interests |  |  | 395713 |  | (24145) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of principal of lease liabilities |  |  | (257570) |  | (253248) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 694473 |  | (65826) |
|  **Net cash inflow from financing activities** |  |  | 15318243 |  | 10821398 |
|  **Effect of exchange rate changes on cash and cash equivalents** | 2, 39 |  | 170639 |  | 241544 |
|  **Net increase in cash and cash equivalents** |  |  | 889251 |  | 5181538 |
|  **Cash and cash equivalents at the beginning of the year** | 2, 39 |  | 25273273 |  | 20091735 |
|  **Cash and cash equivalents at the end of the year** | 2, 39 | W | 26162524 | W | 25273273 |

---

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**1. The Parent Company** 

KB Financial Group Inc. (the "Parent Company") was incorporated on September 29, 2008, under the Financial Holding Companies Act of Korea. KB Financial Group Inc. and its subsidiaries (the "Group") derive substantially all of their revenue and income from providing a broad range of banking and related financial services to consumers and corporations. The Parent Company's main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The Parent Company's headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd. and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Group established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Group acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Group included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Group included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022.

The Parent Company's share capital as of December 31, 2022, is W 2,090,558 million. The Parent Company has been listed on the Korea Exchange ("KRX") since October 10, 2008, and on the New York Stock Exchange ("NYSE") for its American Depositary Shares ("ADS") since September 29, 2008. Number of shares authorized in its Articles of Incorporation is 1,000 million.

**2. Basis of Preparation** 

**2.1 Application of Korean IFRS** 

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

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

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

2.1.1 The Group has applied the following amended standards for the first time for its annual reporting period commencing January 1, 2022.

*- Amendments to Korean IFRS No.1116 Leases - COVID-19-Related Rent Concessions, etc. beyond June 30, 2021* 

The application of the practical expedient, a lessee may elect not to assess whether a rent concession occurring as a direct consequence of the COVID-19 pandemic is a lease modification, is extended to lease payments originally due on or before 30 June 2022. A lessee shall apply the practical expedient consistently to eligible contracts with similar characteristics and in similar circumstances. These amendments do not have a significant impact on the consolidated financial statements.

*- Amendments to Korean IFRS No.1103 Business Combination – Reference to the Conceptual Framework* 

The amendments update a reference of definition of assets and liabilities to 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 Korean IFRS No.1037 *Provisions, Contingent Liabilities and Contingent Assets*, and Korean IFRS No.2121 *Levies*. The amendments also confirm that contingent assets should not be recognized at the acquisition date. These amendments do not have a significant impact on the consolidated financial statements.

*- Amendments to Korean IFRS No.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, as profit or loss. These amendments do not have a significant impact on the consolidated financial statements.

*- Amendments to Korean IFRS No.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. These amendments do not have a significant impact on the consolidated financial statements.

*- Annual improvements to Korean IFRS 2018-2020* 

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

• Korean IFRS No.1101 First-time Adoption of Korean International Financial Reporting Standards – Subsidiary
as a first-time adopter

• Korean IFRS No.1109 *Financial Instruments – Fees in the ' 10 per cent ' test for derecognition of financial liabilities*  

• *Korean IFRS No.1116 Leases – Lease incentives* 

• Korean IFRS No.1041 *Agricultur* e – Measuring fair value

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

2.1.2 The Group has changed the following accounting policy for its annual reporting period commencing January 1, 2022.

The Group had classified due from financial institutions with restriction to use, such as reserve requirement deposits, as due from financial institutions measured at amortized cost rather than cash and cash equivalents; however, following the IFRS Interpretations Committee's decision that cash and cash equivalents include restricted demand deposits, some classified due from financial institutions with restriction to use, such as reserve requirement deposits, the Group has retrospectively classified these accounts as cash and cash equivalents from January 1, 2022. The comparative consolidated financial statements have been restated to reflect the changes made to retrospective application.

The application of these accounting policy changes has no effect on the consolidated statements of financial position as of December 31, 2022 and 2021, and the consolidated statements of comprehensive income for the years ended December 31, 2022 and 2021. The effects on the consolidated statements of cash flows for the years ended December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2021** | **2021** |
|  Increase in changes in other assets | W | 175012 | W | 4674874 |
|  Increase in effect of exchange rate changes on cash and cash equivalents in foreign currency |  | 88082 |  | 83297 |
|  Increase in beginning balance of cash and cash equivalents |  | 16164814 |  | 11406643 |
|  Increase in ending balance of cash and cash equivalents |  | 16427908 |  | 16164814 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group.

*- Amendments to Korean IFRS No.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 the right to defer settlement of the liability or the management's expectations thereof. Also, the settlement of liability includes the transfer of the entity's own equity instruments; however, it would be excluded if an option to settle the liability by the transfer of the entity's own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

*- Issuance of Korean IFRS No.1117 Insurance Contracts* 

(a) Major changes in accounting policy

Korean IFRS No.1117 *Insurance Contracts* will replace Korean IFRS No.1104 *Insurance Contracts*. This standard requires an entity to estimate future cash flows of an insurance contract and measure insurance liabilities using discount rates applied with assumptions and risks at the measurement date and recognize insurance revenue on an accrual basis including services (insurance coverage) provided to the policyholder by each annual reporting period. In addition, investment components (refunds due to termination and maturity) repaid to a policyholder even if an insured event does not occur, are excluded from insurance revenue, and net insurance income and net investment income are presented separately to enable users of the information to understand the sources of net income. This standard should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted for entities that applied Korean IFRS No.1109 *Financial Instruments*. The Group is scheduled to apply this standard for annual reporting period beginning on January 1, 2023. If the Group prepares consolidated financial statements by applying Korean IFRS No.1117, the following parts are expected to make significant differences with the current consolidated financial statements. It does not mean to include all differences that are arising in the future and can be changed based on the future additional analysis results.

(Measurement of Insurance liabilities, etc.)

Under Korean IFRS No.1117, the Group estimates all cash flows from insurance contracts and measures the insurance liabilities using discount rate that reflects assumptions and risks at the reporting date.

In details, the Group identifies a portfolio of insurance contracts that comprises contracts exposed to similar risks and managed together, then separates the contracts with similar profitability within the portfolio as groups of insurance contracts. The groups of insurance contracts are measured as the sum of the estimate of future cash flows (including cash flows related to policy loans and reflecting time value of money, etc.), risk adjustment, and the contractual service margin. With the adoption of Korean IFRS No.1117, account of the contractual service margin will be introduced, which means unearned profit that would be recognized by providing insurance service in the future.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

Meanwhile, reinsurance contracts mean insurance contracts issued by a reinsurance company to compensate claims arising from original insurance contracts issued by other insurance companies. The groups of insurance contracts also apply assumptions consistent with the groups of original insurance contracts when estimating the present value of future cash flows for the groups of insurance contracts ceded.

(Recognition and measurement of financial performance)

Under Korean IFRS No.1117, the Group recognizes insurance revenue on an accrual basis for services (insurance coverage) provided to the policyholder by each annual reporting period, excluding investment component (refunds due to termination and maturity) to be paid to the policyholder regardless of the insured event. In addition, net insurance income and net investment income are presented separately to enable users of the information to understand the sources of net income.

The Group also includes the time value of money, financial risk and effects of their fluctuations related to the group of insurance contracts and the Group should select accounting policy whether the insurance finance income or expenses for the periods are divided to profit or loss, or other comprehensive income.

(Accounting policy for transition of insurance contracts)

Under transition requirements of Korean IFRS No.1117, the Group shall adjust the original cost-based measurement to current measurement by applying the fully retrospective approach, modified retrospective approach or fair value approach, for the group of insurance contracts issued before the transition date (the beginning of the annual reporting period immediately preceding initial application date of January 1, 2022).

In principle, the Group shall identify, recognize and measure each group of insurance contracts as if Korean IFRS No.1117 had always applied before the transition date. If this method is impracticable, the Group can apply the modified retrospective approach or the fair value approach. However, the fair value approach can be applied even though it is possible to apply the fully retrospective approach for the group of insurance contracts with direct participation features that meet specific requirements.

Meanwhile, the modified retrospective approach is a way to obtain results very close to the fully retrospective approach by using all reasonable and supportable information available without undue cost or effort. The fair value approach is a way to measure group of insurance contracts using fair value measurements based on Korean IFRS No.1113 *Fair Value Measurements*. When applying the fair value approach, contractual service margin or loss component of the liability for remaining coverage at the transition date are measured as the difference between the fair value of a group of insurance contracts at that date and the fulfilment cash flows measured at that date.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

Key changes in accounting policies expected by adopting Korean IFRS No.1117 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Korean IFRS No.1104** | **Korean IFRS No.1117** |
|  Insurance liability measurement | Measure at cost using the past information | Measure at current value using information at the reporting date<br>|
|  Insurance liability measurement | Measure at cost using the past information | Need to choose transition method to adjust the existing group of insurance contracts to current measurement at the transition date (among the fully retrospective approach, modified retrospective approach or fair value approach)<br>|
|  Recognition of insurance revenue | Apply cash basis to recognize the received premium as insurance revenue | Recognize revenue by reflecting services provided to the policyholder by each annual reporting period (accrual basis)<br>|
|  Recognition of insurance revenue | Include investment component, such as refunds due to termination and maturity, to insurance revenue | Exclude investment component (refunds due to termination and maturity) from insurance revenue<br>Net insurance income and net investment income (financial income) are presented separately<br>|
|  Deferred acquisition cost | Recognize deferred acquisition cost as a separate asset<br>| Do not recognize deferred acquisition cost as a separate asset<br>|
|  Deferred acquisition cost | Estimate insurance liability based on net insurance premium (excluding administration expenses) | Estimate insurance liability based on operating insurance premium (including administration expenses) |

---

(b) Status of preparation for Korean IFRS No.1117 adoption

In order for the Group to smoothly adopt Korean IFRS No.1117, it is necessary to prepare a separate implementation department, implement an accounting system, train executives and employees, and analyze financial impact and etc.

Above all, for the adequacy of insurance liability evaluation, the stability of the accounting system and the conformity of system calculations must be secured, and accounting policies and actuarial assumptions must be established reasonably and applied consistently every period. For this, the Group needs to verify the system continually, and prepare various internal control procedures. In particular, the Group shall implement and comply with an internal control over financial reporting suitable for the changed accounting environment so that reliable accounting information can be prepared and disclosed after the adoption of the new accounting standard.

The adoption of Korean IFRS No.1117 will not only change accounting standard, but will also affect insurance product development, sales strategies, and long-term business strategies. Accordingly, it is necessary for the Group to re-establish various business strategies after the adoption of the new accounting standard, provide continual training for related executives and employees and report preparations for adoption and future plans to management.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

The detailed preparations for adoption and future plans are as follows:

(KB Insurance Co., Ltd.)

---

| | | |
|:---|:---|:---|
| **Key activity** | **Progress (at the reporting date)** | **Future plan** |
|  Implementation department | (Feb. 2017) Organize the implementation department of Korean IFRS No.1117<br>|  |
|  Implementation department | (Apr. 2018) Expand the implementation department of Korean IFRS No.1117 (currently, total 14 personnel who are fully in charge of) |  |
|  Implementation of accounting system | (Feb. 2017) Start implementation of the integrated actuarial system<br>(Jun. 2018) Complete implementation of the system |  |
|  Implementation of accounting system | (Sep. 2018) Start implementation of the accounting system<br>(Nov. 2020) Complete implementation of the system |  |
|  Implementation of accounting system | Currently, pilot operation |  |
|  Training for executives and employees | Prepare and implement training for executives/head of departments and employees in related departments |  |
|  Reporting to management | Report implementation of the system, financial effects, etc. |  |

---

(KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.))

---

| | | |
|:---|:---|:---|
| **Key activity** | **Progress (at the reporting date)** | **Future plan** |
|  Implementation department | (Apr. 2016) Organize the implementation department of Korean IFRS No.1117 (currently, total 10 personnel who are fully in charge of) |  |
|  Implementation of accounting system | (Nov. 2017) Start implementation of the integrated actuarial system<br> (Nov. 2018) Complete implementation of the system | Advancement of the internal control over financial reporting |
|  Implementation of accounting system | (Nov. 2020) Start implementation of the accounting system<br> (Dec. 2021) Complete implementation of the system | Advancement of the internal control over financial reporting |
|  Training for executives and employees | Implement training for employees |  |
|  Reporting to management | Report the implementation of the system, financial effect of insurance supervisory accounting for adoption of Korean IFRS No.1117 |  |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

(KB Life Insurance Co., Ltd)

---

| | | |
|:---|:---|:---|
| **Key activity** | **Progress (at the reporting date)** | **Future plan** |
|  Implementation department | (Jul. 2018) Organize the responsive team for Korean IFRS No.1117<br>(Mar. 2019) Organize and operate TF for Korean IFRS No.1117 |  |
|  Implementation of accounting system | (Mar. 2019) Start implementation of the accounting system<br>(Dec. 2020) Complete implementation of the system Currently, pilot operation |  |
|  Training for executives and employees | Prepare and implement training for executives/head of departments and employees in related departments (total 20 trainings)<br>(Nov. 2020) Open online training<br>(Dec. 2021) Implement non-face-to-face training | Plan to expand training target |
|  Reporting to management | Report implementation of the system, financial effects, etc. |  |

---

(c) Financial effect evaluation

As the adoption of Korean IFRS No.1117 changes the measurement method of insurance liability and insurance revenue recognition, financial volatility is expected to occur in the consolidated financial statements for 2023.

In order to analyze the financial impact of the initial application of Korean IFRS No.1117, the Group assessed the impact on the consolidated financial statements based on the information available and the current circumstances as of December 31, 2022.

Therefore, the results of financial impact assessment as of December 31, 2022 are subject to change depending on economic conditions and additional information available to the Group in the future.

(Changes in amounts in the consolidated statement of financial position and the consolidated statement of comprehensive income)

The results of the financial impact assessment of the initial application of Korean IFRS No.1117 to the consolidated financial statement using the implemented accounting system as of December 31, 2022 are as follows:

Under Korean IFRS No.1117, on a consolidated basis, total assets, total liabilities and total equity as of December 31, 2022 are expected to be W 688,440,673 million, W 634,539,933 million and W 53,900,740 million, respectively, and net income and total comprehensive income for the year ended December 31, 2022 are expected to be W 3,876,614 million and W 3,546,046 million, respectively.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

Compared to Korean IFRS No.1104, on a consolidated basis, the total assets of W 12,730,175 million and total liabilities of W 16,988,001 million decreased, respectively, and the total equity of W 4,257,826 million increased. Net income of W 296,625 million and profit attributable to shareholders of the Parent company of W 296,625 million decreased, and total comprehensive income of W 2,884,244 million increased. The results of this analysis may change by economic conditions and additional information available to the Group in the future.

1) Effects on consolidated statement of financial position

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
| **Korean IFRS No.1104** | **Korean IFRS No.1104** | **Korean IFRS No.1104** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Net increase**<br>**(decrease)** | **Net increase**<br>**(decrease)** |
|  **Assets** |  |  | **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets | W | 659563977 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets | W | 660455971 | W | 891994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets |  | 3200399 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets |  | 1858470 |  | (1341929) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets |  | 251085 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets |  | 8066 |  | (243019) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  | 28437529 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  | 14813071 |  | (13624458) |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance contract assets |  | 83988 |  | 83988 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance contract assets |  | 1503740 |  | 1503740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 9717858 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 9717367 |  | (491) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | W | 701170848 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | W | 688440673 | W | (12730175) |
|  **Liabilities** |  |  | **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities |  | 551082334 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities |  | 556125846 |  | 5043512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance contract liabilities |  | 58230303 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance contract liabilities |  | 46348942 |  | (11881361) |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance contract liabilities |  | 32141 |  | 32141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities |  | 22693 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities |  | 1307303 |  | 1284610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  | 40140365 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  | 28707574 |  | (11432791) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2052239 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2018127 |  | (34112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | W | 651527934 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | W | 634539933 | W | (16988001) |
|  **Equity** |  |  | **Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share capital and capital adjustments |  | 22629352 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share capital and capital adjustments |  | 22629352 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income |  | (2713053) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income |  | 1095485 |  | 3808538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  | 28446513 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  | 28896713 |  | 450200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | 1280102 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | 1279190 |  | (912) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity | W | 49642914 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity | W | 53900740 | W | 4257826 |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

2) Effects on consolidated statement of comprehensive income

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
| **Korean IFRS No.1104** | **Korean IFRS No.1104** | **Korean IFRS No.1104** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Net increase**<br>**(decrease)** | **Net increase**<br>**(decrease)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income | W | 13112934 | Net interest income | W | 12994671 | W | (118263) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net fee and commission income |  | 3321632 | Net fee and commission income |  | 3521504 |  | 199872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net insurance income |  | 696513 | Net insurance income |  | 1314109 |  | 617596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance income |  | 17136842 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance income |  | 9532085 |  | (7604757) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance expense |  | (16440329) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance expense |  | (7968600) |  | 8471729 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance income |  | 523140 |  | 523140 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance expense |  | (772516) |  | (772516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains on financial instruments at fair value through profit or loss |  | 247357 | Net gains on financial instruments at fair value through profit or loss |  | (1134009) |  | (1381366) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance finance income |  |  | Insurance finance income |  | (727321) |  | (727321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net other operating expenses |  | (2365791) | Net other operating expenses |  | (2262310) |  | 103481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses |  | (7537802) | General and administrative expenses |  | (6643917) |  | 893885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses |  | (1835988) | Provision for credit losses |  | (1847714) |  | (11726) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net other non-operating income (expenses) |  | 156771 | Net other non-operating income (expenses) |  | 160367 |  | 3596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit before income tax expense |  | 5795626 | Profit before income tax expense |  | 5375380 |  | (420246) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense |  | (1622387) | Income tax expense |  | (1498766) |  | 123621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  | 4173239 | Profit for the year |  | 3876614 |  | (296625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | (221591) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | (221591) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders of the Parent Company |  | 4394830 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders of the Parent Company |  | 4098205 |  | (296625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income for the year, net of tax |  | (3511437) | Other comprehensive income for the year, net of tax |  | (330568) |  | 3180869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total comprehensive income for the year | W | 661802 | Total comprehensive income for the year | W | 3546046 | W | 2884244 |

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(Financial impact due to the transition methods to Korean IFRS No.1117)

The expected impact of the transition methods on the valuation of insurance contract liabilities as of the transition date of January 1, 2022 is as follows:

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

1) KB Insurance Co., Ltd.

The Group adjusted the original cost-based measurement to current measurement by applying the fully retrospective approach for the group of insurance contract issued from 2018 to 2021 (within immediately preceding 4 years prior to the transition date of January 1, 2022), and by applying the fair value approach for the group of insurance contracts issued before 2018 (for the periods prior to the year beginning January 1, 2018).

In applying the fair value approach, the fair value of insurance contracts (Korean IFRS No.1113 Fair Value Measurements) was calculated by reflecting some of adjustments based on the valuation amount of insurance contract liabilities calculated under the Korean-Insurance Capital Standards. As a result of analyzing the financial impact related to accounting for transition applying Korean IFRS No.1117, as of January 1, 2022, the insurance contract assets and insurance contract liabilities are expected to be W 1,646,501 million and W 25,805,262 million, respectively.

The impact of the transition method on the valuation of KB Insurance Co., Ltd.'s insurance contract liabilities included in the Group's consolidated financial statements is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** |
| **Transition method** | **Period** | **Insurance contract<br>assets <sup>1</sup>** | **Insurance contract<br>assets <sup>1</sup>** | **Insurance contract<br>liabilities <sup>1</sup>** | **Insurance contract<br>liabilities <sup>1</sup>** | **Contractual<br>service margin <sup>2</sup>** | **Contractual<br>service margin <sup>2</sup>** |
|  Fully retrospective approach | From 2018 to 2021 | W | 1360578 | W | 4760647 | W | 5059205 |
|  Fair value approach | Before 2018 |  | 285923 |  | 21044615 |  | 2127218 |
|  |  | W | 1646501 | W | 25805262 | W | 7186423 |

---

<sup>1</sup> Insurance contract assets and insurance contract liabilities are the total amounts, including reinsurance contract assets and reinsurance contract liabilities, respectively. 

<sup>2</sup> The contractual service margin is presented as net amount by offsetting the amounts included in the insurance contract assets and insurance contract liabilities. 

2) KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.)

The Group has control over KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) as it holds the 100% ownership interests on KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) through stock purchases on August 31, 2020, after the approval obtained from the Financial Services Commission for inclusion the company as a subsidiary on August 26, 2020. Accordingly, the Group adjusted the original cost-based measurement to current measurement by applying the fully retrospective approach for the group of insurance contract issued by KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.)

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

In applying the fully retrospective approach, the contractual service margin on initial recognition for the group of insurance contract as of the acquisition date, was measured based on applying the fair value of the business combination under measurement on initial recognition of insurance contracts acquired in a business combination of Korean IFRS No.1117. As a result of analyzing the financial impact related to accounting for transition applying Korean IFRS No.1117, as of January 1, 2022, the insurance contract liabilities are expected to be W 20,140,367 million.

The impact of the transition method on the valuation of KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.)'s insurance contract liabilities included in the Group's consolidated financial statements is as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** |
| **Transition method** | **Period** | **Insurance contract<br>assets <sup>1</sup>** | **Insurance contract<br>liabilities <sup>1</sup>** | **Insurance contract<br>liabilities <sup>1</sup>** | **Contractual<br>service margin <sup>2</sup>** | **Contractual<br>service margin <sup>2</sup>** |
|  Fully retrospective approach | For the entire period | W | W | 20140367 | W | 3606629 |
|  |  | W | W | 20140367 | W | 3606629 |

---

<sup>1</sup> Insurance contract assets and insurance contract liabilities are the total amounts, including reinsurance contract assets and reinsurance contract liabilities, respectively. 

<sup>2</sup> The contractual service margin is presented as net amount by offsetting the amounts included in the insurance contract assets and insurance contract liabilities. 

3) KB Life Insurance Co., Ltd.

The Group adjusted the original cost-based measurement to current measurement by applying the fully retrospective approach for the group of insurance contract issued from 2019 to 2021 (within immediately preceding 3 years prior to the transition date of January 1, 2022), and by applying the fair value approach for the group of insurance contracts issued before 2019 (for the periods prior to the year beginning January 1, 2019).

In applying the fair value approach, the fair value of insurance contracts (Korean IFRS No.1113 Fair Value Measurements) was calculated by reflecting some of adjustments based on the valuation amount of insurance contract liabilities calculated under the Korean-Insurance Capital Standards. As a result of analyzing the financial impact related to accounting for transition applying Korean IFRS No.1117, as of January 1, 2022, the insurance contract assets and insurance contract liabilities are expected to be W 4,180 million and W 8,539,606 million, respectively.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

The impact of the transition method on the valuation of KB Life Insurance Co., Ltd.'s insurance contract liabilities included in the Group's consolidated financial statements is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
| **Transition**<br> **method** | **Period** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** | **Korean IFRS No.1117** |
| **Transition**<br> **method** | **Period** | **Insurance contract<br>assets <sup>1</sup>** | **Insurance contract<br>assets <sup>1</sup>** | **Insurance contract<br>liabilities <sup>1</sup>** | **Insurance contract<br>liabilities <sup>1</sup>** | **Contractual<br>service margin <sup>2</sup>** | **Contractual<br>service margin <sup>2</sup>** |
|  Fully retrospective approach | From 2019 to 2021 | W | 3959 | W | 2060252 | W | 345946 |
|  Fair value approach | Before 2019 |  | 221 |  | 6479354 |  | 99297 |
|  |  | W | 4180 | W | 8539606 | W | 445243 |

---

<sup>1</sup> Insurance contract assets and insurance contract liabilities are the total amounts, including reinsurance contract assets and reinsurance contract liabilities, respectively. 

<sup>2</sup> The contractual service margin is presented as net amount by offsetting the amounts included in the insurance contract assets and insurance contract liabilities. 

(Financial effect related to insurance liabilities)

If the Group applies Korean IFRS No.1117 to insurance liabilities as of December 31, 2022, the insurance (reinsurance) contract assets and insurance (reinsurance) contract liabilities are expected to be W 1,587,728 million and W 46,381,083 million, respectively.

The estimated composition of applicable assets and liabilities under Korean IFRS No.1117 is as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **Assets under Korean IFRS No.1117** | **Assets under Korean IFRS No.1117** |
|  Insurance contract assets | W | 83988 |
|  Contractual service margin |  | (315339) |
|  Reinsurance contract assets |  | 1503740 |
|  Contractual service margin on reinsurance contract |  | (76906) |
|  | W | 1587728 |
| *(In millions of Korean won)* | **Liabilities under Korean IFRS No.1117** | **Liabilities under Korean IFRS No.1117** |
|  Insurance contract liabilities | W | 46348942 |
|  Contractual service margin |  | 12548409 |
|  Reinsurance contract liabilities |  | 32141 |
|  Contractual service margin on reinsurance contract |  | (868) |
|  | W | 46381083 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

(Financial impact of reclassifications of business models)

The Group will re-evaluate the business models according to the facts and circumstances as of the initial application date of Korean IFRS No.1117 for financial assets held in relation to activities related to contracts within the scope of Korean IFRS No.1117. If the business model changes as a result of the re-evaluation, it is expected that the measurement categories of financial instruments will be reclassified and the carrying amount will change accordingly.

The expected impact of the measurement categories of financial instruments due to the re-evaluation of business models is as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)*<br>|  |  |  |  |  |
| **Measurement categories**<br> **before the re-evaluation**<br> **of the business models** | **Measurement categories<br>after the re-evaluation of<br>the business models** | **Carrying amount before<br>the re-evaluation of the<br>business models** | **Carrying amount before<br>the re-evaluation of the<br>business models** | **Carrying amount after<br>the re-evaluation of<br>the business models** | **Carrying amount after<br>the re-evaluation of<br>the business models** |
|  Financial assets at fair value through profit or loss | Financial assets at fair value through other comprehensive income | W | 106412 | W | 106412 |
|  Loans measured at amortized cost | Financial assets at fair value through other comprehensive income |  | 134811 |  | 126674 |
|  Securities measured at amortized cost | Financial assets at fair value through other comprehensive income |  | 22389536 |  | 18068804 |

---

\* The Group re-evaluated business model evaluation units, management performance reporting, compensation, and risk management for financial assets held in relation to activities related to contracts within the scope of Korean IFRS No.1117. Following the re-evaluation of the business models, the Group will reclassify the financial assets as financial assets at fair value through other comprehensive income if both of the following conditions are met: (a) financial assets are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and (b) where the assets' cash flows represent solely payments of principal and interest on the principal amount outstanding. 

*- Amendments to Korean IFRS No.1001 Presentation of Financial Statements – Accounting Policy Disclosure* 

The amendments require an entity to define and disclose their material accounting policy information. IFRS Practice Statement 2 *Making Materiality Judgements* was amended to explain and demonstrate how to apply the concept of materiality. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

*- Amendments to Korean IFRS No.1008 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Accounting Estimates* 

The amendments introduce the definition of accounting estimates and clarify how to distinguish changes in accounting estimates from changes in accounting policies. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Group. (cont'd)

*- Amendments to Korean IFRS No.1012 Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction* 

The amendments narrow the scope of the deferred tax recognition exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

*- Amendments to Korean IFRS No.1001 Presentation of Financial Statements - Disclosure of gains or losses on valuation of financial liabilities with exercise price adjustment conditions* 

The amendments require disclosures about gains or losses on valuation occurred for the reporting period (but are limited to those included in profit or loss) for the conversion options or warrants (or financial liabilities with warrants), if all or part of the financial instrument whose exercise price is adjusted due to the issuers' stock price fluctuations, are classified as financial liabilities according to paragraph 11 of Korean IFRS No.1032 *Financial Instruments: Presentation*. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

**2.2 Measurement Basis** 

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

**2.3 Functional and Presentation Currency** 

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**2.4 Critical Accounting Estimates** 

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

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

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

2.4.1 Income taxes

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

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

2.4.2 Fair value of financial instruments

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

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

2.4.3 Allowances and provisions for credit losses

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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2.4.4 Net defined benefit assets(liabilities)

The present value of the net defined benefit assets(liabilities) is affected by changes in the various factors determined by the actuarial method.

2.4.5 Impairment of goodwill

The recoverable amounts of cash-generating units are determined based on value-in-use calculations to test whether impairment of goodwill has occurred.

2.4.6 Estimated claims for Incurred But Not Reported ("IBNR")

An amount of IBNR is the total sum of estimated insurance claims that shall be paid for accidents that occurred but have not been reported to the Group and estimated insurance claims that shall be additionally paid upon resumption of payment claims. The Group calculates IBNR by applying statistical methods in risk units prescribed in Detailed Regulations on Supervision of Insurance Business, and records IBNR in reserve for outstanding claims of insurance liability. IBNR based on statistical methods requires significant accounting estimates in determining the application methodology for each accident year (PLDM, ILDM, BFM, and others) and determining the loss development factor.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3. Significant Accounting Policies** 

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

For the comparative purpose, certain information in the notes for the year ended December 31, 2021 have been reclassified to conform to the presentation for the year ended December 31, 2022.

**3.1 Consolidation** 

3.1.1 Subsidiaries

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

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

Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests, if any. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions (i.e., transactions with owners in their capacity as owners). The difference between fair value of any consideration paid and carrying amount of the subsidiary's net assets attributable to the additional interests acquired, is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the Group loses control, any investment retained in the former subsidiary is recognized at its fair value at the date when control is lost, with the resulting difference recognized in profit or loss. This fair value will be the fair value on initial recognition of a financial asset in accordance with Korean IFRS No.1109 or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture. In addition, all amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for on the same basis as would be required if the Group had directly disposed of the related assets or liabilities. Therefore, amounts previously recognized in other comprehensive income are reclassified to profit or loss.

The Group accounts for each business combination by applying the acquisition method. The consideration transferred is measured at fair value, and identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are initially measured at acquisition-date fair values. For each business combination, the Group measures non-controlling interests in the acquiree that entitle their holders to a proportionate share of the acquiree's net assets in the event of liquidation at either (a) fair value or (b) the proportionate share in the recognized amounts of the acquiree's identifiable net assets. Acquisition-related costs are expensed in the periods in which the costs are incurred.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.1.1 Subsidiaries (cont'd)

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

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

3.1.2 Associates and joint ventures

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

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

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

If associates or joint ventures use accounting policies other than those of the Group for like transactions and events in similar circumstances, if necessary, adjustments shall be made to make the associates or joint ventures' accounting policies conform to those of the Group when the associates or joint ventures' financial statements are used by the Group in applying the equity method.

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

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.1.3 Structured entity

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

3.1.4 Funds management

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

3.1.5 Intragroup transactions

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

**3.2 Foreign Currency** 

3.2.1 Foreign currency transactions

A foreign currency transaction is recorded, at initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate which is the spot exchange rate at the end of the reporting period. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was measured and non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Except for the exchange differences for the net investment in a foreign operation and the financial liability designated as a hedging instrument of net investment, exchange differences arising on the settlement of monetary items or on translating monetary items are recognized in profit or loss. When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income, conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

3.2.2 Foreign operations

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.2.2 Foreign operations (cont'd)

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

On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss (as a reclassification adjustment) when the gain or loss on disposal is recognized. On the partial disposal of a subsidiary that includes a foreign operation, the Group re-attributes the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income to the non-controlling interests in that foreign operation. In any other partial disposal of a foreign operation, the Group reclassifies to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income.

3.2.3 Translation of the net investment in a foreign operation

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

**3.3 Recognition and Measurement of Financial Instruments** 

3.3.1 Initial recognition

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

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

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

3.3.2 Subsequent measurement

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.3.2.1 Amortized cost

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

3.3.2.2 Fair value

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

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

The Group uses valuation models that are commonly used by market participants and customized for the Group to determine fair values of common over-the-counter ("OTC") derivatives such as options, interest rate swaps, and currency swaps which are based on the inputs observable in markets. However, for some complex financial instruments that require fair value measurement by valuation techniques based on certain assumptions because some or all inputs used in the model are not observable in the market, the Group uses internal valuation models developed from general valuation models or valuation results from independent external valuation institutions.

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

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

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

Level 3 : Unobservable inputs for the asset or liability

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

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.3.2.2 Fair value (cont'd)

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

3.3.3 Derecognition

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

3.3.3.1 Derecognition of financial assets

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

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

The Group writes off a financial asset when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. In general, the Group considers write-off when it is determined that the debtor does not have sufficient funds or income to cover the principal and interest. The write-off decision is made in accordance with internal regulations. After the write-off, the Group can continue to collect the written-off loans according to the internal policy. Recovered amounts from financial assets previously written-off are recognized in profit or loss.

3.3.3.2 Derecognition of financial liabilities

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

3.3.4 Offsetting

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.4 Cash and Due from Financial Institutions** 

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

**3.5 Non-derivative Financial Assets** 

3.5.1 Financial assets at fair value through profit or loss

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

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

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

3.5.2 Financial assets at fair value through other comprehensive income

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

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

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

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

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.5.3 Financial assets at amortized cost

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

**3.6 Expected Credit Losses of Financial Assets (Debt Instruments)** 

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Simplified approach: for trade receivables, contract assets, and lease receivables

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

Application of general approach is differentiated depending on whether credit risk has increased significantly after initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures loss allowances for that financial instrument at an amount equal to 12-month expected credit losses, whereas if the credit risk on a financial instrument has increased significantly since initial recognition, the Group measures loss allowances for a financial instrument at an amount equal to the lifetime expected credit losses. Lifetime is the period until the contractual maturity date of financial instruments and means the expected life.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• More than 30 days past due

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subsequent managing ratings below certain level in the early warning system

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt restructuring (except for impaired financial assets) and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Credit delinquency information of Korea Federation of Banks, etc.

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 90 days or more past due

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legal proceedings related to collection

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A borrower registered on the credit management list of Korea Federation of Banks

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A corporate borrower with the credit rating C and D

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Refinancing and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt restructuring, etc.

3.6.1 Forward-looking information

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

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

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

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| | |
|:---|:---|
| **Key macroeconomic variables** | **Correlation between the major<br>macroeconomic variables and the credit risk** |
|  Domestic GDP growth rate | (-) |
|  Composite stock index | (-) |
|  Rate of change of construction investment | (-) |
|  Rate of change of housing transaction price index | (-) |
|  Interest rate spread | (+) |
|  Private consumption growth rate | (-) |
|  Change of call rate compared to the previous year (%p) | (+) |
|  Rate of change of household loan | (-) |

---

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.6.1 Forward-looking information (cont'd)

As of December 31, 2022, the Group measures expected credit losses to the financial assets by applying both the worse scenario and the crisis scenario, etc. taking into consideration the uncertain financial environment internally and externally and the potential credit risk resulting from the rapid economic recession.

3.6.2 Measuring expected credit losses on financial assets at amortized cost

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

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

3.6.2.1 Individual assessment of impairment

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

3.6.2.2 Collective assessment of impairment

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

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

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.7 Derivative Financial Instruments** 

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

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

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

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

3.7.1 Derivative financial instruments held for trading

All derivative financial instruments, except for derivatives that are designated and qualify for hedge accounting, are measured at fair value. Gains or losses arising from changes in fair value are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.2 Derivative financial instruments for fair value hedges

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.7.3 Derivative financial instruments for cash flow hedges

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

3.7.4 Derivative and non-derivative financial instruments designated for net investments hedges

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

3.7.5 Embedded derivatives

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

3.7.6 Day one gains or losses

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.8 Property and Equipment** 

3.8.1 Recognition and measurement

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

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

Subsequent expenditures are capitalized only when they prolong the useful life or enhance values of the assets but the costs of the day-to-day servicing of the assets such as repair and maintenance costs are recognized in profit or loss as incurred. When part of an item of property and equipment has a useful life different from that of the entire asset, it is recognized as a separate asset.

3.8.2 Depreciation

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

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

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

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

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The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.9 Investment Properties** 

3.9.1 Recognition and measurement

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

3.9.2 Depreciation

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

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

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

---

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

**3.10 Intangible Assets** 

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

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

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| | | |
|:---|:---|:---|
| **Intangible assets** | **Amortization method** | **Estimated useful life** |
| Industrial property rights | Straight-line | 3 ~ 19 years |
| Software | Straight-line | 3 ~ 5 years |
| Value of business acquired | Declining-balance | 30, 60 years |
| Others | Straight-line / Declining-balance | 1 ~ 13 years |

---

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Where an intangible asset is not being amortized because its useful life is indefinite, the Group carries out a review in each accounting period to confirm whether events and circumstances still support an indefinite useful life assessment. If they do not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate.

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.10.1 Value of business acquired ("VOBA")

In the case of acquisition of insurance company, the Group recognizes the difference amount as VOBA in intangible assets, if the fair value of the acquired insurance liability is less than the carrying amount based on the acquiree's accounting policy. In the opposite case, the difference amount is recognized as negative VOBA and included in premium reserve. VOBA is an estimated present value of profits inherent in the future cash flow of insurance contracts at the acquisition date. VOBA is amortized over the above estimated useful life using declining balance method, and the amortization is recognized as insurance expense.

3.10.2 Goodwill

3.10.2.1 Recognition and measurement

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

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

For each business combination, the Group decides at the acquisition date whether the non-controlling interests in the acquiree are initially measured at fair value or at the non-controlling interests' proportionate share in the recognized amounts of the acquiree's identifiable net assets.

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

3.10.2.2 Additional acquisitions of non-controlling interests

Additional acquisitions of non-controlling interests are accounted for as equity transactions. Therefore, no additional goodwill is recognized.

3.10.2.3 Subsequent measurement

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

3.10.3 Subsequent expenditures

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.11 Impairment of Non-financial Assets** 

The Group assesses at the end of each reporting period whether there is any indication that a non-financial asset, except for (a) deferred income tax assets, (b) assets arising from employee benefits and (c) non-current assets (or group of assets to be sold) classified as held for sale, may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. However, irrespective of whether there is any indication of impairment, the Group tests (a) goodwill acquired in a business combination, (b) intangible assets with an indefinite useful life and (c) intangible assets not yet available for use for impairment annually by comparing their carrying amount with their recoverable amount.

The recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit that are discounted by a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

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

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

**3.12 Non-current Assets Held for Sale** 

A non-current asset or disposal group is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be highly probable. A non-current asset (or disposal group) classified as held for sale is measured at the lower of (a) its carrying amount measured in accordance with the applicable Korean IFRS, immediately before the initial classification of the asset (or disposal group) as held for sale and (b) fair value less costs to sell.

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.13 Financial Liabilities** 

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

3.13.1 Financial liabilities at fair value through profit or loss

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

In relation to securities lending or borrowing transactions, when the Group borrows securities from the Korea Securities Depository and others, these transactions are managed as off-balance sheet items. The borrowed securities are treated as financial liabilities at fair value through profit or loss when they are sold. Changes in fair value at the end of the reporting period and difference between carrying amount at redemption and purchased amount are recognized in profit or loss.

In addition, the change in fair value of the financial liability designated at fair value through profit or loss that is attributable to change in the credit risk of that liability, the Group presents this change in other comprehensive income, and does not recycle this to profit or loss in accordance with Korean IFRS No.1109. However, if this treatment creates or enlarges an accounting mismatch, the Group recognizes this change in profit or loss.

3.13.2 Other financial liabilities

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.14 Insurance Contracts** 

KB Insurance Co., Ltd. KB Life Insurance Co., Ltd. and KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) the subsidiaries of the Group, issue insurance contracts.

Insurance contracts are defined as "a contract under which one party (the insurer) accepts significant insurance risk from another party by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder". A contract that qualifies as an insurance contract remains an insurance contract until all rights and obligations are extinguished or expire. Such a contract that does not contain significant insurance risk is classified as an investment contract and is within the scope of Korean IFRS No.1109 *Financial Instruments* to the extent that it gives rise to a financial asset or financial liability, except if the investment contract contains a Discretionary Participation Features (DPF). If the contract has a DPF, the contract is subject to Korean IFRS No.1104 *Insurance Contracts*. The Group recognizes assets and liabilities relating to insurance contracts as other assets and insurance liabilities in the consolidated statement of financial position, and income and expense relating to insurance contracts as insurance income and expenses in the consolidated statement of comprehensive income, respectively.

3.14.1 Insurance premiums

The Group recognizes collected premiums as revenue on the due date of collection of premiums from insurance contracts and the collected premium which is not earned at the end of the reporting period is recognized as unearned premium.

3.14.2 Insurance liabilities

The Group recognizes a liability for future claims, refunds, dividends to policyholders, and related expenses as follows:

3.14.2.1 Premium reserve

The Group accumulates the amount calculated based on the net insurance premium already received for future claim payments for insurance contracts maintained at the end of the reporting period. It is calculated as the greater of the amount using standard interest rate and standard risk ratio defined by director of the Financial Supervisory Services and the amount using the basic ratios that have been used in premium calculation.

3.14.2.2 Reserve for outstanding claims

When the insured event has occurred before the end of the reporting period, but the claim amount is not confirmed, reserve for outstanding claims is calculated based on the estimated amount to be paid.

3.14.2.3 Unearned premium reserve

Unearned premium reserve is the premium which is to be allocated to the following period among the premium which is due before the end of the reporting period.

3.14.2.4 Reserve for dividend to policyholders

Reserve for dividend to policyholders including dividend of interest rate differential, rate of risk differential, and business expenses differential is recognized for the purpose of provisioning for policyholders' dividends in the future in accordance with statutes or insurance terms and conditions.

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.14.3 Liability adequacy test ("LAT")

The Group conducts a liability adequacy test for all contracts to which Korean IFRS No.1104 *Insurance Contracts* apply, in consideration of current estimates of all cash inflows and cash outflows from the insurance contracts at the end of the reporting period including options, guarantees, claims handling costs, and policy loans. If the assessment shows that the carrying amount of its insurance liabilities is inadequate in the light of the estimated future cash flows, the entire deficiency is recognized in profit or loss.

Future cash flows from long-term insurance are discounted at interest rate scenario, which is a risk-free rate scenario adjusted by liquidity premium, whereas future cash flows from general insurance are not discounted to present value. In the case of insurance premium and unearned premium reserve, all future cash flows such as payment of claims, administration expenses, and premium received from policyholders are considered for the liability adequacy test. And in the case of reserve for outstanding claims, the adequacy of individually estimated claims is evaluated by applying models among various statistical methods that are considered appropriate for claim development trend.

3.14.4 Deferred acquisition costs

The Group recognizes acquisition cost incurred by the long-term insurance contract as an asset and amortizes it evenly over the premium payment period. If the premium payment period exceeds seven years, the amortization period shall be seven years. If the insurance contract is surrendered or lapsed due to payment overdue, the remaining balances of deferred acquisition cost are fully amortized in the period in which the contract is surrendered or lapsed.

**3.15 Provisions** 

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

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

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.16 Financial Guarantee Contracts** 

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount determined in accordance with Korean IFRS No.1109 *Financial Instruments* and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance
with Korean IFRS No.1115 *Revenue from Contracts with Customers.* 

**3.17 Equity Instrument Issued by the Group** 

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

3.17.1 Ordinary shares

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

3.17.2 Hybrid securities

The financial instruments can be classified as either financial liabilities or equity in accordance with the terms of the contract. The Group classifies hybrid securities as an equity if the Group has the unconditional right to avoid any contractual obligation to deliver cash or another financial asset in relation to the financial instruments. However, hybrid securities issued by subsidiaries are classified as non-controlling interests, dividends are recognized in the consolidated statement of comprehensive income as profit attributable to non-controlling interests.

3.17.3 Treasury shares

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

3.17.4 Compound financial instruments

A compound financial instrument is classified as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. The liability component of the compound financial instrument is measured at fair value of the similar liability without conversion option at initial recognition and subsequently measured at amortized cost using effective interest method until it is extinguished by conversion or matured. Equity component is initially measured at fair value of compound financial instrument in its entirety less fair value of liability component net of tax effect, and it is not remeasured subsequently.

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.18 Revenue Recognition** 

The Group recognizes revenues in accordance with the following steps determined in accordance with Korean IFRS No.1115 *Revenue from Contracts with Customers*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 1: Identify the contract with a customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 2: Identify the performance obligations in the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 3: Determine the transaction price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 4: Allocate the transaction price to the performance obligations in the contract.

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

3.18.1 Interest income and expense

Interest income and expense on debt securities at fair value through profit or loss (excluding beneficiary certificates, equity investments, and other debt instruments), loans, financial instruments at amortized cost, and debt securities at fair value through other comprehensive income are recognized in the consolidated statement of comprehensive income using the effective interest method in accordance with Korean IFRS No.1109 *Financial Instruments*. The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or interest expense over the relevant period.

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

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

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

3.18.2 Fee and commission income

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

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.18.2.2 Fees related to performance obligations satisfied over time

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

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

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

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

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

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

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

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

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

3.18.4 Dividend income

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.19 Employee Compensation and Benefits** 

3.19.1 Post-employment benefits

3.19.1.1 Defined contribution plans

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

3.19.1.2 Defined benefit plans

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

The present value of the defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the reporting period on high quality corporate bonds. The currency and term of the corporate bonds are consistent with the currency and estimated term of the post-employment benefit obligations. Actuarial gains and losses resulted from changes in actuarial assumptions and experience adjustments are recognized in other comprehensive income.

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

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

3.19.2 Short-term employee benefits

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

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

3.19.3 Share-based payment

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.19.3 Share-based payment (cont'd)

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

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

3.19.4 Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or an employee's decision to accept an offer of benefits in exchange for the termination of employment. The Group recognizes a liability and expense for termination benefits at the earlier of the following dates; when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring that is within the scope of Korean IFRS No.1037 and involves the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, then the termination benefits are discounted to present value.

**3.20 Income Tax Expense** 

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

3.20.1 Current income tax

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

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

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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3.20.2 Deferred income tax

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

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

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

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

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

3.20.3 Uncertain tax positions

Uncertain tax positions arise from tax treatments applied by the Group which may be challenged by the tax authorities due to the complexity of the transaction or different interpretation of the tax laws, such as a claim for rectification, a claim for a refund related to additional tax or a tax investigation by the tax authorities. The Group recognizes its uncertain tax positions in the consolidated financial statements in accordance with Korean IFRS No.1012 and Interpretation of Korean IFRS No.2123. The income tax asset is recognized if a tax refund is probable for taxes levied by the tax authority, and the amount to be paid as a result of the tax investigation and others is recognized as the current tax payable. However, penalty tax and additional refund on tax are regarded as penalty or interest and are accounted for in accordance with Korean IFRS No.1037.

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.21 Earnings per Share** 

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

**3.22 Lease** 

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fixed payments (including in-substance fixed payments), less any lease
incentives receivable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Variable lease payments that depend on an index or a rate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amounts expected to be payable by the lessee under residual value guarantees

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

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

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

Right-of-use assets are measured at cost comprising the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount of the initial measurement of the lease liability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any lease payments made at or before the commencement date, less any lease incentives received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any initial direct costs incurred by the lessee, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An estimate of restoration costs

However, the Group can elect not to apply the requirements of Korean IFRS No.1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under USD 5,000).

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**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**3.22 Lease (cont'd)** 

The right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

For sale and leaseback transactions, the Group applies the requirements of Korean IFRS No.1115 *Revenue from Contracts with Customers*, to determine whether the transfer of an asset is accounted for as a sale of that asset.

**3.23 Operating Segments** 

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

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

**3.24 Overlay Approach** 

The Group applies the overlay approach in accordance with Korean IFRS No.1104 and a financial asset is eligible for designation for the overlay approach if, and only if, the following criteria are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is measured at fair value through profit or loss applying Korean IFRS No.1109 but would not have been measured
at fair value through profit or loss in its entirety applying Korean IFRS No.1039 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is not held in respect of an activity that is unconnected with contracts within the scope of Korean IFRS
No.1104.

The Group reclassifies between profit or loss and other comprehensive income, and the amount reclassified is equal to the difference between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount reported in profit or loss for the designated financial assets applying Korean IFRS No.1109 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount that would have been reported in profit or loss for the designated financial assets if the insurer had
applied Korean IFRS No.1039.

The Group is permitted to apply the overlay approach either at initial recognition or it may subsequently designate financial assets that newly meet criterion of not being held in respect of an activity that is unconnected with insurance contract, having previously not met that criterion.

The Group continues to apply the overlay approach to a designated financial asset until that financial asset is derecognized. However, the Group de-designates a financial asset when the financial asset no longer meets the criterion. In this case, the Group reclassifies from accumulated other comprehensive income to profit or loss as a reclassification adjustment any balance relating to that financial asset.

At the beginning of any annual period, the Group may stop applying the overlay approach to all designated financial assets, and cannot subsequently apply the overlay approach, if it stops using this approach because it is no longer an insurer.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**4. Financial Risk Management** 

4.1 Summary

4.1.1 Overview of financial risk management policy

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

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

The Group's risk management system focuses on efficiently supporting long-term strategy and management decisions of the Group by increasing risk transparency, preventing risk transfer between subsidiaries and preemptive response to rapidly changing financial environments. Credit risk, market risk, operational risk, interest rate risk, insurance risk, liquidity risk, credit concentration risk, strategy risk, and reputation risk are recognized as the Group's significant risks and measured and managed by quantifying them in the form of internal capital or Value at Risk ("VaR") using statistical methods.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

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

4.1.2.2 Risk Management Council

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

4.1.2.3 Risk Management Department

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2 Credit Risk

4.2.1 Overview of credit risk

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

4.2.2 Credit risk management

The Group measures the expected loss and internal capital for the assets subject to credit risk management, including on-balance and off-balance assets, and uses them as management indicators. The Group allocates and manages credit risk internal capital limits.

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

All of the Kookmin Bank's loan customers (individuals and corporates) are assigned a credit rating and managed by a comprehensive internal credit evaluation system. For individuals, the credit rating is evaluated by utilizing personal information, income and job information, asset information, and bank transaction information. For corporates, the credit rating is evaluated by analyzing and utilizing financial and non-financial information which measures current and future corporate value and ability to repay the debt. Also, the extent to which corporates have the ability to meet debt obligations is comprehensively considered.

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

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

In order to establish a credit risk management system, the Group manages credit risk by forming a separate risk management organization. In particular, independently of the Sales Group, the Credit Management & Analysis Group of Kookmin Bank, a subsidiary, is in charge of loan policy, loan system, credit rating, credit analysis, follow-up management, and corporate restructuring. The Risk Management Group of Kookmin Bank is responsible for establishing policies on credit risk management, measuring and limiting internal capital of credit risk, setting credit limits, credit review, and verification of credit rating models.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.3 Maximum exposure to credit risk

The Group's maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at amortized cost \* | W | 29500768 | W | 28362387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at fair value through profit or loss |  | 69469 |  | 200742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through profit or loss |  | 61787727 |  | 63002692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through profit or loss |  | 493562 |  | 269296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments indexed to the price of gold |  | 90006 |  | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives |  | 9446134 |  | 3721370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost \* |  | 436530502 |  | 417900273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through other comprehensive income |  | 55610319 |  | 56259511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost \* |  | 58288734 |  | 44471628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through other comprehensive income |  | 363144 |  | 313604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets \* |  | 11209350 |  | 10755350 |
|  |  | 663389715 |  | 625370475 |
|  **Off-balance sheet items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts |  | 12425753 |  | 10199689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts |  | 8297042 |  | 6892464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments |  | 188168340 |  | 170218143 |
|  |  | 208891135 |  | 187310296 |
|  | W | 872280850 | W | 812680771 |

---

\* After netting of allowance

4.2.4 Credit risk of loans

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

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.4.1 Credit risk exposure

Credit qualities of loans as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** |
| *(In millions of Korean won)* | **12-month**<br>**expected credit**<br>**losses** | **12-month**<br>**expected credit**<br>**losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying**<br>**expected credit**<br>**losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month**<br>**expected credit**<br>**losses** | **12-month**<br>**expected credit**<br>**losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **Not applying**<br>**expected credit**<br>**losses** | **Total** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 134487020 | W | 5877660 | W | 3372 | W | W | 140368052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 65627866 |  | 8585346 |  | 4480 |  |  | 74217692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 4054715 |  | 3221267 |  | 14693 |  |  | 7290675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 570670 |  | 922748 |  | 34298 |  |  | 1527716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 11910 |  | 419058 |  | 1959706 |  |  | 2390674 |
|  |  | 204752181 |  | 19026079 |  | 2016549 |  |  | 225794809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 168460089 |  | 4240281 |  | 11286 |  |  | 172711656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 7697699 |  | 3846756 |  | 32877 |  |  | 11577332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 4319404 |  | 1477076 |  | 25599 |  |  | 5822079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 293828 |  | 313999 |  | 32330 |  |  | 640157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 25672 |  | 670642 |  | 837187 |  |  | 1533501 |
|  |  | 180796692 |  | 10548754 |  | 939279 |  |  | 192284725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 11547014 |  | 1316136 |  |  |  |  | 12863150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 4390211 |  | 1214946 |  |  |  |  | 5605157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 1142362 |  | 1925145 |  |  |  |  | 3067507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 2227 |  | 302736 |  |  |  |  | 304963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 666 |  | 173049 |  | 595101 |  |  | 768816 |
|  |  | 17082480 |  | 4932012 |  | 595101 |  |  | 22609593 |
|  |  | 402631353 |  | 34506845 |  | 3550929 |  |  | 440689127 |
|  **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade1 |  | 303317 |  |  |  |  |  |  | 303317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade2 |  | 59827 |  |  |  |  |  |  | 59827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade3 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade4 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade5 |  |  |  |  |  |  |  |  |  |
|  |  | 363144 |  |  |  |  |  |  | 363144 |
|  |  | 363144 |  |  |  |  |  |  | 363144 |
|  | W | 402994497 | W | 34506845 | W | 3550929 | W | W | 441052271 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.4.1 Credit risk exposure (cont'd)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 111284284 | W | 5345956 | W | 3705 | W | W | 116633945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 68050042 |  | 7847126 |  | 4338 |  |  | 75901506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 5323745 |  | 2850266 |  | 2949 |  |  | 8176960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 586857 |  | 1037461 |  | 7570 |  |  | 1631888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 12877 |  | 352046 |  | 2143708 |  |  | 2508631 |
|  |  | 185257805 |  | 17432855 |  | 2162270 |  |  | 204852930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 170810128 |  | 4593302 |  | 11609 |  |  | 175415039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 9093868 |  | 4209451 |  | 35097 |  |  | 13338416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 3410624 |  | 1414439 |  | 23467 |  |  | 4848530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 235150 |  | 400029 |  | 17998 |  |  | 653177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 495987 |  | 445588 |  | 710341 |  |  | 1651916 |
|  |  | 184045757 |  | 11062809 |  | 798512 |  |  | 195907078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 10640412 |  | 1113400 |  |  |  |  | 11753812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 3919053 |  | 1027546 |  |  |  |  | 4946599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 1360908 |  | 1412951 |  |  |  |  | 2773859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 82565 |  | 608250 |  |  |  |  | 690815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 1267 |  | 130712 |  | 527256 |  |  | 659235 |
|  |  | 16004205 |  | 4292859 |  | 527256 |  |  | 20824320 |
|  |  | 385307767 |  | 32788523 |  | 3488038 |  |  | 421584328 |
|  **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade1 |  | 233868 |  |  |  |  |  |  | 233868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade2 |  | 79736 |  |  |  |  |  |  | 79736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade3 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade4 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade5 |  |  |  |  |  |  |  |  |  |
|  |  | 313604 |  |  |  |  |  |  | 313604 |
|  |  | 313604 |  |  |  |  |  |  | 313604 |
|  | W | 385621371 | W | 32788523 | W | 3488038 | W | W | 421897932 |

---

\* Before netting of allowance

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.4.1 Credit risk exposure (cont'd)

Credit qualities of loans graded according to internal credit ratings as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Range of**<br>**probability of default (%)** | **Retail** | **Corporate** |
|  Grade 1 | 0.0 ~ 1 | 1 ~ 5 grade | AAA ~ BBB+ |
|  Grade 2 | 1.0 ~ 5 | 6 ~ 8 grade | BBB ~ BB |
|  Grade 3 | 5.0 ~ 15 | 9 ~ 10 grade | BB- ~ B |
|  Grade 4 | 15.0 ~ 30 | 11 grade | B- ~ CCC |
|  Grade 5 | 30.0 ~ | 12 grade or under | CC or under |

---

4.2.4.2 Quantification of the extent to which collateral and other credit enhancements mitigate credit risk of loans as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **Total** | **Total** |
|  Guarantees | W | 100396614 | W | 7060738 | W | 301688 | W | 107759040 |
|  Deposits and savings |  | 6206646 |  | 141016 |  | 51297 |  | 6398959 |
|  Property and equipment |  | 14648523 |  | 1002291 |  | 180103 |  | 15830917 |
|  Real estate |  | 190604649 |  | 15720019 |  | 1706308 |  | 208030976 |
|  | W | 311856432 | W | 23924064 | W | 2239396 | W | 338019892 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **Total** | **Total** |
|  Guarantees | W | 90696507 | W | 6604758 | W | 396097 | W | 97697362 |
|  Deposits and savings |  | 5723090 |  | 98389 |  | 79229 |  | 5900708 |
|  Property and equipment |  | 13205822 |  | 597251 |  | 319697 |  | 14122770 |
|  Real estate |  | 182139890 |  | 13736634 |  | 1990847 |  | 197867371 |
|  | W | 291765309 | W | 21037032 | W | 2785870 | W | 315588211 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.5 Credit risk of securities

Credit qualities of securities exposed to credit risk other than equity securities among financial investments as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
|  **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 56448267 | W |  | W | W | W | 56448267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 1845339 |  |  |  |  |  | 1845339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 1288 |  |  |  |  |  | 1288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |  |
|  |  | 58294894 |  |  |  |  |  | 58294894 |
|  **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 51281790 |  |  |  |  |  | 51281790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 4180121 |  | 53861 |  |  |  | 4233982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 66797 |  | 9169 |  |  |  | 75966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 13941 |  | 4640 |  |  |  | 18581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |  |
|  |  | 55542649 |  | 67670 |  |  |  | 55610319 |
|  | W | 113837543 | W | 67670 | W | W | W | 113905213 |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
|  **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 43427028 | W |  | W | W | W | 43427028 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 1039757 |  |  |  |  |  | 1039757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 1371 |  | 7641 |  |  |  | 9012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |  |
|  |  | 44468156 |  | 7641 |  |  |  | 44475797 |
|  **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 51490960 |  |  |  |  |  | 51490960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 4682582 |  |  |  |  |  | 4682582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 42861 |  | 3973 |  |  |  | 46834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 39135 |  |  |  |  |  | 39135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |  |
|  |  | 56255538 |  | 3973 |  |  |  | 56259511 |
|  | W | 100723694 | W | 11614 | W | W | W | 100735308 |

---

\* Before netting of allowance

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.5 Credit risk of securities (cont'd)

Credit qualities of securities other than equity securities, according to the credit ratings by external credit rating agencies as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit**<br> **quality** | **Domestic** | **Domestic** | **Domestic** | **Domestic** | **Foreign** | **Foreign** | **Foreign** |
| **Credit**<br> **quality** | **KIS** | **NICE P&I** | **KAP** | **FnPricing Inc.** | **S&P** | **Fitch-IBCA** | **Moody's** |
|  Grade 1 | AA0 to AAA | AA0 to AAA | AA0 to AAA | AA0 to AAA | A- to AAA | A- to AAA | A3 to Aaa |
|  Grade 2 | A- to AA- | A- to AA- | A- to AA- | A- to AA- | BBB- to BBB+ | BBB- to BBB+ | Baa3 to Baa1 |
|  Grade 3 | BBB0 to BBB+ | BBB0 to BBB+ | BBB0 to BBB+ | BBB0 to BBB+ | BB to BB+ | BB to BB+ | Ba2 to Ba1 |
|  Grade 4 | BB0 to BBB- | BB0 to BBB- | BB0 to BBB- | BB0 to BBB- | B+ to BB- | B+ to BB- | B1 to Ba3 |
|  Grade 5 | BB- or under | BB- or under | BB- or under | BB- or under | B or under | B or under | B2 or under |

---

Credit qualities of debt securities denominated in Korean won are based on the lowest credit rating by the domestic credit rating agencies above, and those denominated in foreign currencies are based on the lowest credit rating by the foreign credit rating agencies above.

4.2.6 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Impaired** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
|  **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 27612549 | W | W | W | W | 27612549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 1428663 |  |  |  |  | 1428663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 462299 |  |  |  |  | 462299 |
|  | W | 29503511 | W | W | W | W | 29503511 |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Impaired** | **Not applying<br>expected credit<br>losses** | **Total** | **Total** |
|  **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 26548145 | W | W | W | W | 26548145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 1305539 |  |  |  |  | 1305539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 61177 |  |  |  |  | 61177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 450495 |  |  |  |  | 450495 |
|  | W | 28365356 | W | W | W | W | 28365356 |

---

\* Before netting of allowance

The classification criteria of the credit qualities of due from financial institutions as of December 31, 2022 and 2021, are the same as the criteria for securities other than equity securities.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.7 Credit risk mitigation of derivative financial instruments

Quantification of the extent to which collateral mitigates credit risk of derivative financial instruments as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Deposits, savings, securities, and others | W | 2966923 | W | 834175 |

---

4.2.8 Credit risk concentration analysis

4.2.8.1 Classifications of loans by country as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **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 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** |
|  | **Retail** | **Retail** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Total** | **Total** | **%** | **Allowances** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Korea | W | 186948909 | W | 198853096 | W | 22562372 | W | 408364377 | 92.49 | W | (3030906) | W | 405333471 |
|  Europe |  |  |  | 4671790 |  |  |  | 4671790 | 1.06 |  | (25689) |  | 4646101 |
|  China |  | 140060 |  | 6901682 |  | 363 |  | 7042105 | 1.59 |  | (39025) |  | 7003080 |
|  Japan |  |  |  | 1150151 |  | 46 |  | 1150197 | 0.26 |  | (1755) |  | 1148442 |
|  United States |  |  |  | 5130629 |  |  |  | 5130629 | 1.16 |  | (18229) |  | 5112400 |
|  Cambodia |  | 2610472 |  | 3768170 |  |  |  | 6378642 | 1.44 |  | (73723) |  | 6304919 |
|  Indonesia |  | 1735571 |  | 2896037 |  | 43023 |  | 4674631 | 1.06 |  | (795309) |  | 3879322 |
|  Others |  | 849713 |  | 3279960 |  | 3789 |  | 4133462 | 0.94 |  | (173989) |  | 3959473 |
|  | W | 192284725 | W | 226651515 | W | 22609593 | W | 441545833 | 100.00 | W | (4158625) | W | 437387208 |
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **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 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** |
|  | **Retail** | **Retail** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Total** | **Total** | **%** | **Allowances** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Korea | W | 191601232 | W | 183222201 | W | 20766535 | W | 395589968 | 93.70 | W | (2653256) | W | 392936712 |
|  Europe |  |  |  | 2673817 |  |  |  | 2673817 | 0.63 |  | (29015) |  | 2644802 |
|  China |  | 34982 |  | 6743756 |  | 327 |  | 6779065 | 1.61 |  | (34316) |  | 6744749 |
|  Japan |  | 86 |  | 1039453 |  | 8 |  | 1039547 | 0.25 |  | (2227) |  | 1037320 |
|  United States |  |  |  | 3555723 |  |  |  | 3555723 | 0.84 |  | (28113) |  | 3527610 |
|  Cambodia |  | 1985808 |  | 3115992 |  |  |  | 5101800 | 1.21 |  | (70660) |  | 5031140 |
|  Indonesia |  | 1666850 |  | 3710586 |  | 55520 |  | 5432956 | 1.29 |  | (841145) |  | 4591811 |
|  Others |  | 618120 |  | 1374302 |  | 1930 |  | 1994352 | 0.47 |  | (25323) |  | 1969029 |
|  | W | 195907078 | W | 205435830 | W | 20824320 | W | 422167228 | 100.00 | W | (3684055) | W | 418483173 |

---

\* Amount includes loans measured at fair value through profit or loss, other comprehensive income, and amortized cost. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.8.2 Classifications of corporate loans by industry as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Loans** | **Loans** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  Financial institutions | W | 23603384 | 10.41 | W | (52108) | W | 23551276 |
|  Manufacturing |  | 53301044 | 23.52 |  | (575227) |  | 52725817 |
|  Service |  | 98306161 | 43.37 |  | (479440) |  | 97826721 |
|  Wholesale and retail |  | 29665900 | 13.09 |  | (352211) |  | 29313689 |
|  Construction |  | 6909315 | 3.06 |  | (228782) |  | 6680533 |
|  Public sector |  | 1903185 | 0.84 |  | (84423) |  | 1818762 |
|  Others |  | 12962526 | 5.71 |  | (213204) |  | 12749322 |
|  | W | 226651515 | 100.00 | W | (1985395) | W | 224666120 |
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Loans** | **Loans** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  Financial institutions | W | 22059895 | 10.74 | W | (32856) | W | 22027039 |
|  Manufacturing |  | 49149918 | 23.92 |  | (510762) |  | 48639156 |
|  Service |  | 86926095 | 42.31 |  | (450272) |  | 86475823 |
|  Wholesale and retail |  | 26862247 | 13.08 |  | (257541) |  | 26604706 |
|  Construction |  | 5683471 | 2.77 |  | (228803) |  | 5454668 |
|  Public sector |  | 2070960 | 1.01 |  | (95053) |  | 1975907 |
|  Others |  | 12683244 | 6.17 |  | (311629) |  | 12371615 |
|  | W | 205435830 | 100.00 | W | (1886916) | W | 203548914 |

---

4.2.8.3 Classifications of retail loans and credit card receivables as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Loans** | **Loans** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  Housing loan | W | 94625388 | 44.03 | W | (162446) | W | 94462942 |
|  General loan |  | 97659337 | 45.45 |  | (1172942) |  | 96486395 |
|  Credit card |  | 22609593 | 10.52 |  | (837842) |  | 21771751 |
|  | W | 214894318 | 100.00 | W | (2173230) | W | 212721088 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Loans** | **Loans** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  Housing loan | W | 93695479 | 43.23 | W | (71424) | W | 93624055 |
|  General loan |  | 102211599 | 47.16 |  | (933571) |  | 101278028 |
|  Credit card |  | 20824320 | 9.61 |  | (792144) |  | 20032176 |
|  | W | 216731398 | 100.00 | W | (1797139) | W | 214934259 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.8.4 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Amount** | **Amount** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  **Due from financial institutions measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | W | 29503511 | 100.00 | W | (2743) | W | 29500768 |
|  |  | 29503511 | 100.00 |  | (2743) |  | 29500768 |
|  **Due from financial institutions measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 69469 | 100.00 |  |  |  | 69469 |
|  |  | 69469 | 100.00 |  |  |  | 69469 |
|  **Securities measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 15523407 | 25.12 |  |  |  | 15523407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 35904941 | 58.11 |  |  |  | 35904941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 10359379 | 16.77 |  |  |  | 10359379 |
|  |  | 61787727 | 100.00 |  |  |  | 61787727 |
|  **Derivative financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 58060 | 0.61 |  |  |  | 58060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 8987835 | 95.15 |  |  |  | 8987835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 400239 | 4.24 |  |  |  | 400239 |
|  |  | 9446134 | 100.00 |  |  |  | 9446134 |
|  **Securities measured at fair value through other comprehensive income** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 25001019 | 44.96 |  |  |  | 25001019 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 21034862 | 37.83 |  |  |  | 21034862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 9574438 | 17.21 |  |  |  | 9574438 |
|  |  | 55610319 | 100.00 |  |  |  | 55610319 |
|  **Securities measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 37167849 | 63.76 |  | (31) |  | 37167818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 18624970 | 31.95 |  | (5306) |  | 18619664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2502075 | 4.29 |  | (823) |  | 2501252 |
|  |  | 58294894 | 100.00 |  | (6160) |  | 58288734 |
|  | W | 214712054 |  | W | (8903) | W | 214703151 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.8.4 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Amount** | **Amount** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  **Due from financial institutions measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | W | 28365356 | 100.00 | W | (2969) | W | 28362387 |
|  |  | 28365356 | 100.00 |  | (2969) |  | 28362387 |
|  **Due from financial institutions measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 200742 | 100.00 |  |  |  | 200742 |
|  |  | 200742 | 100.00 |  |  |  | 200742 |
|  **Securities measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 16101187 | 25.56 |  |  |  | 16101187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 35025800 | 55.59 |  |  |  | 35025800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 11875705 | 18.85 |  |  |  | 11875705 |
|  |  | 63002692 | 100.00 |  |  |  | 63002692 |
|  **Derivative financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 6985 | 0.19 |  |  |  | 6985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 3554783 | 95.52 |  |  |  | 3554783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 159602 | 4.29 |  |  |  | 159602 |
|  |  | 3721370 | 100.00 |  |  |  | 3721370 |
|  **Securities measured at fair value through other comprehensive income** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 24609458 | 43.74 |  |  |  | 24609458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 22669379 | 40.29 |  |  |  | 22669379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 8980674 | 15.97 |  |  |  | 8980674 |
|  |  | 56259511 | 100.00 |  |  |  | 56259511 |
|  **Securities measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions |  | 31996180 | 71.94 |  | (34) |  | 31996146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance |  | 10450497 | 23.50 |  | (3337) |  | 10447160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2029120 | 4.56 |  | (798) |  | 2028322 |
|  |  | 44475797 | 100.00 |  | (4169) |  | 44471628 |
|  | W | 196025468 |  | W | (7138) | W | 196018330 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Amount** | **Amount** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  **Due from financial institutions measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | W | 21765088 | 73.77 | W | (484) | W | 21764604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 2248004 | 7.62 |  | (28) |  | 2247976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 5490419 | 18.61 |  | (2231) |  | 5488188 |
|  |  | 29503511 | 100.00 |  | (2743) |  | 29500768 |
|  **Due from financial institutions measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 69469 | 100.00 |  |  |  | 69469 |
|  |  | 69469 | 100.00 |  |  |  | 69469 |
|  **Securities measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 56691217 | 91.75 |  |  |  | 56691217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 2934339 | 4.75 |  |  |  | 2934339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2162171 | 3.50 |  |  |  | 2162171 |
|  |  | 61787727 | 100.00 |  |  |  | 61787727 |
|  **Derivative financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 4830565 | 51.14 |  |  |  | 4830565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 1351969 | 14.31 |  |  |  | 1351969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France |  | 1281270 | 13.56 |  |  |  | 1281270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Singapore |  | 212710 | 2.25 |  |  |  | 212710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan |  | 435592 | 4.61 |  |  |  | 435592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 1334028 | 14.13 |  |  |  | 1334028 |
|  |  | 9446134 | 100.00 |  |  |  | 9446134 |
|  **Securities measured at fair value through other comprehensive income** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 51039864 | 91.78 |  |  |  | 51039864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 1459063 | 2.63 |  |  |  | 1459063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 3111392 | 5.59 |  |  |  | 3111392 |
|  |  | 55610319 | 100.00 |  |  |  | 55610319 |
|  **Securities measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 51832992 | 88.92 |  | (4046) |  | 51828946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 3919413 | 6.72 |  | (1263) |  | 3918150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2542489 | 4.36 |  | (851) |  | 2541638 |
|  |  | 58294894 | 100.00 |  | (6160) |  | 58288734 |
|  | W | 214712054 |  | W | (8903) | W | 214703151 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Amount** | **Amount** | **%** | **Allowances** | **Allowances** | **Carrying amount** | **Carrying amount** |
|  **Due from financial institutions measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | W | 21051229 | 74.21 | W | (574) | W | 21050655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 2875884 | 10.14 |  | (136) |  | 2875748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 4438243 | 15.65 |  | (2259) |  | 4435984 |
|  |  | 28365356 | 100.00 |  | (2969) |  | 28362387 |
|  **Due from financial institutions measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 200742 | 100.00 |  |  |  | 200742 |
|  |  | 200742 | 100.00 |  |  |  | 200742 |
|  **Securities measured at fair value through profit or loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 56920225 | 90.35 |  |  |  | 56920225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 3334888 | 5.29 |  |  |  | 3334888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2747579 | 4.36 |  |  |  | 2747579 |
|  |  | 63002692 | 100.00 |  |  |  | 63002692 |
|  **Derivative financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 1639657 | 44.06 |  |  |  | 1639657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 753896 | 20.26 |  |  |  | 753896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France |  | 370787 | 9.96 |  |  |  | 370787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Singapore |  | 117964 | 3.17 |  |  |  | 117964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan |  | 96438 | 2.59 |  |  |  | 96438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 742628 | 19.96 |  |  |  | 742628 |
|  |  | 3721370 | 100.00 |  |  |  | 3721370 |
|  **Securities measured at fair value through other comprehensive income** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 51484332 | 91.51 |  |  |  | 51484332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 1417898 | 2.52 |  |  |  | 1417898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 3357281 | 5.97 |  |  |  | 3357281 |
|  |  | 56259511 | 100.00 |  |  |  | 56259511 |
|  **Securities measured at amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea |  | 41912154 | 94.24 |  | (3183) |  | 41908971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States |  | 1188427 | 2.67 |  | (466) |  | 1187961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 1375216 | 3.09 |  | (520) |  | 1374696 |
|  |  | 44475797 | 100.00 |  | (4169) |  | 44471628 |
|  | W | 196025468 |  | W | (7138) | W | 196018330 |

---

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

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

4.3.2 Liquidity risk management and indicator

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

The Group calculates and manages liquidity ratio and others for all transactions and off-balance transactions related to liquidity, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **On demand** | **On demand** | **Up to 1 month** | **Up to 1 month** | **1-3 months** | **1-3 months** | **3-12 months** | **3-12 months** | **1-5 years** | **1-5 years** | **Over 5 years** | **Over 5 years** | **Total** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss <sup>1</sup> | W | 2193210 | W |  | W |  | W |  | W |  | W |  | W | 2193210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss <sup>1</sup> |  | 10078394 |  |  |  |  |  |  |  |  |  |  |  | 10078394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup> |  | 9209537 |  |  |  |  |  |  |  |  |  |  |  | 9209537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging <sup>2</sup> |  |  |  | 11106 |  | 8886 |  | 39174 |  | 221551 |  | 3502 |  | 284219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>3</sup> |  | 170489726 |  | 29911835 |  | 45245496 |  | 131765097 |  | 17979299 |  | 1129024 |  | 396520477 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 7831474 |  | 23821330 |  | 7676952 |  | 19120861 |  | 12839302 |  | 1159432 |  | 72449351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 11117 |  | 4011679 |  | 8353663 |  | 20995587 |  | 33216320 |  | 6485136 |  | 73073502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  | 164 |  | 28079 |  | 45200 |  | 171449 |  | 376159 |  | 2839 |  | 623890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 179241 |  | 17938781 |  | 368218 |  | 447898 |  | 907643 |  | 428310 |  | 20270091 |
|  | W | 199992863 | W | 75722810 | W | 61698415 | W | 172540066 | W | 65540274 | W | 9208243 | W | 584702671 |
|  **Off-balance sheet items** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments <sup>4</sup> | W | 188168340 | W |  | W |  | W |  | W |  | W |  | W | 188168340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts |  | 12425753 |  |  |  |  |  |  |  |  |  |  |  | 12425753 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts <sup>5</sup> |  | 8297042 |  |  |  |  |  |  |  |  |  |  |  | 8297042 |
|  | W | 208891135 | W |  | W |  | W |  | W |  | W |  | W | 208891135 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **On demand** | **On demand** | **Up to 1 month** | **Up to 1 month** | **1-3 months** | **1-3 months** | **3-12 months** | **3-12 months** | **1-5 years** | **1-5 years** | **Over 5 years** | **Over 5 years** | **Total** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss <sup>1</sup> | W | 2939584 | W |  | W |  | W |  | W |  | W |  | W | 2939584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss <sup>1</sup> |  | 9149396 |  |  |  |  |  |  |  |  |  |  |  | 9149396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup> |  | 3509789 |  |  |  |  |  |  |  |  |  |  |  | 3509789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging <sup>2</sup> |  |  |  | 11355 |  | 9993 |  | 31135 |  | 31640 |  | 1423 |  | 85546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>3</sup> |  | 204616202 |  | 16556213 |  | 31123968 |  | 111140222 |  | 10157238 |  | 1329120 |  | 374922963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 8504084 |  | 17807785 |  | 5825350 |  | 13861238 |  | 10380171 |  | 1003369 |  | 57381997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 14528 |  | 3438621 |  | 5318699 |  | 20496869 |  | 34863044 |  | 6509966 |  | 70641727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  | 139 |  | 23387 |  | 42406 |  | 157536 |  | 334359 |  | 50555 |  | 608382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 217874 |  | 22953515 |  | 203897 |  | 354876 |  | 934389 |  | 372745 |  | 25037296 |
|  | W | 228951596 | W | 60790876 | W | 42524313 | W | 146041876 | W | 56700841 | W | 9267178 | W | 544276680 |
|  **Off-balance sheet items** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments <sup>4</sup> | W | 170218143 | W |  | W |  | W |  | W |  | W |  | W | 170218143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts |  | 10199689 |  |  |  |  |  |  |  |  |  |  |  | 10199689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts <sup>5</sup> |  | 6892464 |  |  |  |  |  |  |  |  |  |  |  | 6892464 |
|  | W | 187310296 | W |  | W |  | W |  | W |  | W |  | W | 187310296 |

---

<sup>1</sup> Financial liabilities measured or designated at fair value through profit or loss and derivatives held for trading are not managed by contractual maturity because they are expected to be traded or redeemed before maturity. Therefore, the carrying amounts of those financial instruments are included in the 'On demand' category. 

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

<sup>3</sup> Deposits that are contractually repayable on demand or on short notice are included in the 'On demand' category.

<sup>4</sup> Commitments are included in the 'On demand' category because payments can be requested at any time.

<sup>5</sup> Cash flows under financial guarantee contracts are classified based on the earliest period that the contract can be executed.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.3.3.2 Contractual cash flows of derivatives held for cash flow hedge as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2022** | **December 31, 2022** |
|  | **Up to 1 month** | **Up to 1 month** | **1-3 months** | **1-3 months** | **3-12 months** | **3-12 months** | **1-5 years** | **1-5 years** | **Over 5 years** | **Over 5 years** | **Total** | **Total** |
|  Cash flow to be received (paid) of net-settled derivatives | W | 1534 | W | 10994 | W | 25749 | W | 119179 | W | 3526 | W | 160982 |
|  Cash flow to be received of gross-settled derivatives |  | 10932 |  | 30311 |  | 1003755 |  | 2894502 |  |  |  | 3939500 |
|  Cash flow to be paid of gross-settled derivatives |  | (10357) |  | (54794) |  | (1007950) |  | (2255613) |  |  |  | (3328714) |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2021** | **December 31, 2021** |
|  | **Up to 1 month** | **Up to 1 month** | **1-3 months** | **1-3 months** | **3-12 months** | **3-12 months** | **1-5 years** | **1-5 years** | **Over 5 years** | **Over 5 years** | **Total** | **Total** |
|  Cash flow to be received (paid) of net-settled derivatives | W | (102) | W | (2647) | W | (252) | W | 24812 | W | (11) | W | 21800 |
|  Cash flow to be received of gross-settled derivatives |  | 126429 |  | 325664 |  | 619100 |  | 2084618 |  |  |  | 3155811 |
|  Cash flow to be paid of gross-settled derivatives |  | (130919) |  | (329546) |  | (630023) |  | (1428759) |  |  |  | (2519247) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc., which arise from securities, derivatives, and others. The most significant risks associated with trading positions are interest rate risk, currency risk, and additional risks include stock price risk. The non-trading position is also exposed to interest rate risk. The Group manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position. The above market risks are measured and managed by each subsidiary.

4.4.2 Risk management

The Group sets and monitors internal capital limits for market risk and interest rate risk to manage the risks of trading and non-trading positions. In order to manage market risk efficiently, the Group maintains risk management systems and procedures such as trading policies and procedures, market risk management guidelines for trading positions, and interest rate risk management guidelines for non-trading positions. The entire process is carried out through consultation with the Risk Management Council and approval by the Risk Management Committee of the Group.

In the case of Kookmin Bank, a major subsidiary, the Risk Management Council establishes and enforces overall market risk management policies for market risk management and decides to establish position limits, loss limits, VaR limits, and approves non-standard new products. In addition, the Market Risk Management Subcommittee, chaired by Chief Risk Officer ("CRO"), is a practical decision-making body for market risk management and determines position limits, loss limits, VaR limits, sensitivity limits, and scenario loss limits for each department of the business group.

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

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.2 Risk management (cont'd)

Details of financial instruments that have not been converted to alternative interest rate benchmark as of December 31, 2022, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** |
|  | **Exposure amount \*** | **Exposure amount \*** |
|  | **USD LIBOR** | **USD LIBOR** |
|  Measured at fair value: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | W |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  | 22800 |
|  Measured at amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 1954327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings and debentures |  | 531334 |
|  Others: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial instruments |  | 290423 |

---

\* Financial instruments to be expired before transition to alternative interest rate benchmark are excluded, and non-derivative financial instruments are the carrying amount and others are the nominal amount. 

4.4.3 Trading position

4.4.3.1 Definition of a trading position

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The target positions should be periodically reported to management for risk management of the Group.

4.4.3.2 Observation method of market risk arising from trading positions

Subsidiaries of the Group measure market risk by calculating VaR through the market risk management system for all trading positions. Generally, the Group manages market risk arising from trading positions at the portfolio level. In addition, the Group controls and manages the risk of derivative financial instrument transactions in accordance with the Financial Supervisory Service regulations and guidelines.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.3 VaR

(a) VaR

Kookmin Bank, a major subsidiary, uses the risk-based valuation method (VaR) to measure the market risk of the trading position. Kookmin Bank uses the 10-day VaR, which represents the maximum amount of possible loss of 10 business days based on the historical simulation model of the full valuation method. The distribution of value changes in the portfolio is estimated based on data from the past 250 business days, and 10-day VaR is calculated by the difference between the value of the portfolio at a 99% confidence level of distribution of value changes in the portfolio and the current market value.

VaR is a commonly used market risk measurement technique. However, this approach has some limitations. VaR estimates possible losses under a certain confidence level based on historical market change data. However, since past market changes cannot reflect all future conditions and circumstances, the timing and magnitude of actual losses may vary depending on assumptions in the calculation process. If one day or ten days of the holding period which is generally used for the normal period of liquidating the position, is not sufficient or too long, the VaR result may underestimate or overestimate the potential loss.

When a subsidiary with a trading position measures market risk for trading position, it uses an internal model (VaR) for general risk and a standard method for individual risks. Standard method is used if the internal model is not authorized for certain market risk. Therefore, disclosed market risk VaR does not reflect the market risk for individual risks and for some positions. In addition, non-bank subsidiaries use the same standard method as the regulatory capital calculation method in order to enhance the effectiveness of market risk VaR management (improving the link with regulatory capital).

(b) Back-Testing

To verify the appropriateness of the VaR model, back-testing is performed by comparing actual and hypothetical gains and losses with the VaR calculation results.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.3 VaR (cont'd)

(c) Stress Testing

The Group carries out stress testing of the trading and available-for-sale portfolio to reflect changes in individual risk factors such as interest rate, stock price, foreign exchange rate, and implied volatility of derivatives that have a significant impact on portfolio value in a crisis. The Group carries out stress testing through historical and hypothetical scenarios. This stress testing is carried out at least twice a year.

Ten-day VaR at a 99% confidence level of interest rate risk, stock price risk, and currency risk for trading positions of Kookmin Bank for the years ended December 31, 2022 and 2021, are as follows:

**Kookmin Bank** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Interest rate risk | W | 34923 | W | 16541 | W | 64356 | W | 47093 |
|  Stock price risk |  | 8606 |  | 5142 |  | 11061 |  | 9407 |
|  Currency risk |  | 24054 |  | 14428 |  | 41815 |  | 41189 |
|  Diversification effect |  |  |  |  |  |  |  | (5140) |
|  Total VaR | W | 49701 | W | 22144 | W | 99436 | W | 92549 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Interest rate risk | W | 20051 | W | 6372 | W | 55670 | W | 16534 |
|  Stock price risk |  | 9067 |  | 4537 |  | 24824 |  | 5513 |
|  Currency risk |  | 27886 |  | 17820 |  | 49264 |  | 21522 |
|  Diversification effect |  |  |  |  |  |  |  | (13039) |
|  Total VaR | W | 40915 | W | 15986 | W | 115347 | W | 30530 |

---

Meanwhile, the positions which are not measured by VaR as of December 31, 2022 and 2021 and required equity capital of non-bank subsidiaries using the standard method for the years ended December 31, 2022 and 2021, are as follows:

**Kookmin Bank** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk | W | 18545 | W | 25432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock price risk |  | 4686 |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency risk |  | 70757 |  | 46173 |
|  | W | 93988 | W | 71611 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.3 VaR (cont'd)

**KB Securities Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Interest rate risk | W | 828772 | W | 755379 | W | 873861 | W | 755379 |
|  Stock price risk |  | 212679 |  | 150149 |  | 297812 |  | 171592 |
|  Currency risk |  | 24002 |  | 14938 |  | 34109 |  | 34109 |
|  Commodity risk |  | 116 |  | 41 |  | 229 |  | 41 |
|  | W | 1065569 | W | 920507 | W | 1206011 | W | 961121 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Interest rate risk | W | 724482 | W | 657094 | W | 821864 | W | 821864 |
|  Stock price risk |  | 249320 |  | 207425 |  | 299221 |  | 278356 |
|  Currency risk |  | 14275 |  | 6808 |  | 22543 |  | 22543 |
|  Commodity risk |  | 88 |  | 3 |  | 210 |  | 19 |
|  | W | 988165 | W | 871330 | W | 1143838 | W | 1122782 |

---

**KB Insurance Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Interest rate risk | W | 4728 | W | 3159 | W | 6450 | W | 3159 |
|  Currency risk |  | 28413 |  | 14768 |  | 39701 |  | 14768 |
|  | W | 33141 | W | 17927 | W | 46151 | W | 17927 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Interest rate risk | W | 5445 | W | 3854 | W | 6553 | W | 5906 |
|  Currency risk |  | 34560 |  | 28035 |  | 40853 |  | 40853 |
|  | W | 40005 | W | 31889 | W | 47406 | W | 46759 |

---

**KB Kookmin Card Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Currency risk | W | 18430 | W | 16483 | W | 21890 | W | 21341 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Currency risk | W | 13029 | W | 7744 | W | 16094 | W | 15637 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.3 VaR (cont'd)

**KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea Ltd.)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Currency risk | W | 4253 | W | 853 | W | 8931 | W | 8931 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Currency risk | W | 4676 | W | 1337 | W | 7211 | W | 6963 |

---

**KB Asset Management Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Currency risk | W | 2426 | W | 1607 | W | 2823 | W | 2455 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Currency risk | W | 2151 | W | 1053 | W | 3085 | W | 2405 |

---

**KB Capital Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Currency risk | W | 1905 | W | 1298 | W | 2128 | W | 2045 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Currency risk | W | 1121 | W | 867 | W | 1280 | W | 1280 |

---

**KB Life Insurance Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Interest rate risk | W | 545 | W |  | W | 1476 | W |  |
|  Currency risk |  | 4355 |  | 993 |  | 6799 |  | 993 |
|  | W | 4900 | W | 993 | W | 8275 | W | 993 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Interest rate risk | W | 2095 | W | 1072 | W | 2932 | W | 1072 |
|  Currency risk |  | 4216 |  | 1725 |  | 6651 |  | 6378 |
|  | W | 6311 | W | 2797 | W | 9583 | W | 7450 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.3 VaR (cont'd)

**KB Investment Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Stock price risk | W | 9406 | W | 8002 | W | 10685 | W | 8438 |
|  Currency risk |  | 21993 |  | 18883 |  | 24384 |  | 21727 |
|  | W | 31399 | W | 26885 | W | 35069 | W | 30165 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Stock price risk | W | 5114 | W | 3518 | W | 10518 | W | 10518 |
|  Currency risk |  | 13706 |  | 11269 |  | 18452 |  | 18301 |
|  | W | 18820 | W | 14787 | W | 28970 | W | 28819 |

---

**KB Data System Co., Ltd.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Average** | **Minimum** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2022** | **Dec. 31, 2022** |
|  Stock price risk | W | 198 | W | 155 | W | 228 | W | 155 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Average** | **Minimum** | **Maximum** | **Maximum** | **Dec. 31, 2021** | **Dec. 31, 2021** |
|  Stock price risk | W | 177 | W | W | 231 | W | 231 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.4 Details of risk factors

(a) Interest rate risk

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

(b) Stock price risk

Stock price risk occurs mainly in trading stocks denominated in Korean won. The portfolio of trading stocks denominated in Korean won consists of stocks listed on the exchange and derivatives linked to stocks and is managed by strict distributed investment limits.

(c) Currency risk

Currency risk arises from holding assets and liabilities which are denominated in foreign currency, and currency-related derivatives. Most of the net foreign currency exposures occur in the US dollars and the Chinese Yuan. The Group also manages net foreign exchange exposures across trading and non-trading portfolios by setting a net foreign currency exposure limit at the same time setting a loss limit.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.4 Non-trading position (Interest Rate Risk of Banking Book ("IRRBB"))

4.4.4.1 Qualitative disclosure

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

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

(b) Overall interest rate risk management and mitigation strategy

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

(c) Specific methodologies used to calculate interest rate risk measurement cycles and sensitivity

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

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

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

• Scenario 1 : Parallel shock up

• Scenario 2 : Parallel shock down

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

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

• Scenario 5 : Short rates shock up

• Scenario 6 : Short rates shock down

(e) Key modeling assumptions used separately

The Group calculates interest rate risk for internal management purpose, assuming a historical-simulation based on interest rate volatility during the past financial crisis (FY2008-FY2009), distribution of assets/liabilities portfolio, and 27 interest rate gaps considering management strategy direction.

(f) Interest rate risk hedging methodology and related accounting

Subsidiaries which are subject to interest rate risk measurement hedges interest rate risk through back-to-back interest rate swap transactions, which are the same as interest payment cash flows and officially document and manage the risk management strategy for hedge accounting, risk management objectives, hedging relationship, and assessment method for hedge effectiveness.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.4.1 Qualitative disclosure (cont'd)

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

Subsidiaries which are subject to interest rate risk measurement calculate interest rate risk, including all cash flow of interest-sensitive assets and liabilities, and off-balance sheet items. The main assumptions of the IRRBB standard method for calculating ΔEVE, ΔNII are as follows:

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

---

| | |
|:---|:---|
|  | **Time bucket intervals (D:Day M:Months Y:Years t<sup>cf</sup>:Repricing date)** |
|  Short-term rates | 1D<br> (0.0028Y)<br> 1D< t<sup>cf</sup><br> ≤1M<br> (0.0417Y)<br> 1M< t<sup>cf</sup><br> ≤3M<br> (0.1667Y)<br> 3M< t<sup>cf</sup><br> ≤6M<br> (0.375Y)<br> 6M< t<sup>cf</sup><br> ≤9M<br> (0.625Y)<br> 9M< t<sup>cf</sup><br> ≤1Y<br> (0.875Y)<br> 1Y<<br>t<sup>cf</sup> ≤1.5Y<br> (1.25Y)<br> 1.5Y< t<sup>cf</sup><br> ≤2Y<br> (1.75Y) |
|  Medium-term rates | 2Y< t<sup>cf</sup><br> ≤3Y<br> (2.5Y)<br> 3Y< t<sup>cf</sup><br> ≤4Y<br> (3.5Y)<br> 4Y< t<sup>cf</sup><br> ≤5Y<br> (4.5Y)<br> 5Y< t<sup>cf</sup><br> ≤6Y<br> (5.5Y)<br> 6Y< t<sup>cf</sup><br> ≤7Y<br> (6.5Y) |
|  Long-term rates | 7Y< t<sup>cf</sup><br> ≤8Y<br> (7.5Y)<br> 8Y< t<sup>cf</sup><br> ≤9Y<br> (8.5Y)<br> 9Y< t<sup>cf</sup><br> ≤10Y<br> (9.5Y)<br> 10Y< t<sup>cf</sup><br> ≤15Y<br> (12.5Y)<br> 15Y< t<sup>cf</sup><br> ≤20Y<br> (17.5Y)<br> t<sup>cf</sup> >20Y<br> (25Y) |

---

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

(Caps on core deposit and average maturity by category for non-maturity deposits)

---

| | | |
|:---|:---|:---|
|  | **Cap on proportion of**<br>**core deposits (%)** | **Cap on average maturity of**<br>**core deposits (years)** |
|  Retail/transactional | 90 | 5 |
|  Retail/non-transactional | 70 | 4.5 |
|  Wholesale | 50 | 4 |

---

4.4.4.2 Quantitative disclosure

The average repricing maturity of non-maturity deposits is 2.5 years for core deposits, 1 day for non-core deposits, and the longest repricing maturity is five years.

(a) Kookmin Bank

ΔEVE is calculated by applying six interest rate shock and stress scenarios, and ΔNII is calculated by applying parallel shock up and parallel shock down scenarios. Results as of December 31, 2022 and 2021, are as follows:

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.4.2 Quantitative disclosure (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **changes in<br>the<br>economic<br>value of<br>equity<br>capital**<br>Δ**EVE** | **changes in<br>the<br>economic<br>value of<br>equity<br>capital**<br>Δ**EVE** | **Changes in<br>net interest<br>income**<br>Δ**NII** | **changes in<br>the<br>economic<br>value of<br>equity<br>capital**<br>Δ**EVE** | **changes in<br>the<br>economic<br>value of<br>equity<br>capital**<br>Δ**EVE** | **Changes in<br>net interest<br>income**<br>Δ**NII** | **Changes in<br>net interest<br>income**<br>Δ**NII** |
|  Scenario 1 (Parallel shock up) | W | 165634 | 162959 | W | 936965 | W | 564771 |
|  Scenario 2 (Parallel shock down) |  | 290330 |  |  |  |  |  |
|  Scenario 3 (Short rates down, long rates up) |  | 266737 |  |  | 273951 |  |  |
|  Scenario 4 (Short rates up, long rates down) |  | 268261 |  |  | 311497 |  |  |
|  Scenario 5 (Short rates shock up) |  | 288737 |  |  | 568246 |  |  |
|  Scenario 6 (Short rates shock down) |  | 132998 |  |  | 345987 |  |  |
|  Maximum out of six scenarios |  | 290330 | 162959 |  | 936965 |  | 564771 |
|  Basic capital |  | 31176032 | 31176032 |  | 30491173 | 30491173 | 30491173 |

---

(b) Non-bank subsidiaries

ΔEVE is maximum out of six interest rate shock and stress scenarios, and ΔNII is maximum of parallel shock up and parallel shock down scenarios. Results as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | Δ**EVE** | Δ**EVE** | Δ**NII** | Δ**NII** | Δ**EVE** | Δ**EVE** | Δ**NII** | Δ**NII** |
|  KB Securities Co., Ltd. | W | 37498 | W | 242200 | W | 173199 | W | 272676 |
|  KB Insurance Co., Ltd. |  | 182310 |  | 44405 |  | 939720 |  | 37119 |
|  KB Kookmin Card Co., Ltd. |  | 96282 |  | 244602 |  | 93232 |  | 225581 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) |  | 354982 |  | 24609 |  | 611930 |  | 24135 |
|  KB Capital Co., Ltd. |  | 126535 |  | 50800 |  | 105728 |  | 41112 |
|  KB Life Insurance Co., Ltd. |  | 73277 |  | 35645 |  | 143393 |  | 33942 |
|  KB Savings Bank Co., Ltd. |  | 5320 |  | 14976 |  | 20077 |  | 786 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.5 Financial assets and liabilities denominated in foreign currencies

Details of financial instruments denominated in foreign currencies and translated into Korean won as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **USD** | **USD** | **JPY** | **JPY** | **EUR** | **EUR** | **GBP** | **GBP** | **CNY** | **CNY** | **Others** | **Others** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | W | 6334501 | W | 461826 | W | 456888 | W | 97502 | W | 645271 | W | 2324691 | W | 10320679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss |  | 6098956 |  | 2443 |  | 601726 |  | 59263 |  | 7110 |  | 330779 |  | 7100277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 636456 |  | 159 |  | 10412 |  | 10 |  | 19053 |  | 167796 |  | 833886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 251522 |  |  |  |  |  |  |  |  |  | 22522 |  | 274044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 32995825 |  | 683705 |  | 2813855 |  | 755912 |  | 1944500 |  | 6596283 |  | 45790080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income |  | 5326003 |  |  |  | 9091 |  | 5677 |  | 556052 |  | 972787 |  | 6869610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost |  | 5841305 |  |  |  | 322755 |  | 37816 |  | 60013 |  | 1316707 |  | 7578596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 1878542 |  | 292727 |  | 360469 |  | 25289 |  | 116049 |  | 368272 |  | 3041348 |
|  | W | 59363110 | W | 1440860 | W | 4575196 | W | 981469 | W | 3348048 | W | 12099837 | W | 81808520 |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | W | 1143413 | W |  | W |  | W |  | W |  | W |  | W | 1143413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 893781 |  | 9016 |  | 81119 |  | 17072 |  | 6868 |  | 264833 |  | 1272689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 130784 |  |  |  |  |  |  |  |  |  |  |  | 130784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 25706364 |  | 1339119 |  | 1429567 |  | 344824 |  | 2307068 |  | 5238485 |  | 36365427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 19700039 |  | 458856 |  | 446968 |  | 588324 |  | 266727 |  | 2442313 |  | 23903227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 7771068 |  |  |  | 2041517 |  |  |  | 36288 |  | 975891 |  | 10824764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 3615838 |  | 266569 |  | 190103 |  | 14521 |  | 126752 |  | 435606 |  | 4649389 |
|  | W | 58961287 | W | 2073560 | W | 4189274 | W | 964741 | W | 2743703 | W | 9357128 | W | 78289693 |
|  **Off-balance sheet items** | W | 23777728 | W |  | W | 243431 | W | 102232 | W | 220890 | W | 774154 | W | 25118435 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **USD** | **USD** | **JPY** | **JPY** | **EUR** | **EUR** | **GBP** | **GBP** | **CNY** | **CNY** | **Others** | **Others** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | W | 6995653 | W | 420964 | W | 482144 | W | 96951 | W | 570186 | W | 1646253 | W | 10212151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss |  | 7217843 |  | 12047 |  | 514047 |  | 11024 |  | 16113 |  | 261029 |  | 8032103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 222759 |  | 221 |  | 44384 |  | 534 |  | 5549 |  | 21762 |  | 295209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 104091 |  |  |  |  |  |  |  |  |  | 4541 |  | 108632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 26605737 |  | 597413 |  | 1777967 |  | 234612 |  | 1774589 |  | 6518650 |  | 37508968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income |  | 6604010 |  | 5152 |  | 121573 |  | 6272 |  | 536747 |  | 405391 |  | 7679145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost |  | 2267233 |  |  |  | 300856 |  |  |  | 48435 |  | 710950 |  | 3327474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 1893691 |  | 37036 |  | 100041 |  | 7082 |  | 69307 |  | 252337 |  | 2359494 |
|  | W | 51911017 | W | 1072833 | W | 3341012 | W | 356475 | W | 3020926 | W | 9820913 | W | 69523176 |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | W | 1496712 | W |  | W |  | W |  | W |  | W |  | W | 1496712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 376230 |  | 6099 |  | 61941 |  | 19833 |  | 18223 |  | 117217 |  | 599543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 42470 |  |  |  |  |  |  |  |  |  |  |  | 42470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 21324104 |  | 900044 |  | 1873026 |  | 106456 |  | 1943015 |  | 5402000 |  | 31548645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 15597440 |  | 456029 |  | 386023 |  | 496084 |  |  |  | 2176532 |  | 19112108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 6366475 |  |  |  | 1338391 |  |  |  | 102443 |  | 708353 |  | 8515662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 1834429 |  | 23158 |  | 140779 |  | 16543 |  | 93933 |  | 211516 |  | 2320358 |
|  | W | 47037860 | W | 1385330 | W | 3800160 | W | 638916 | W | 2157614 | W | 8615618 | W | 63635498 |
|  **Off-balance sheet items** | W | 19149581 | W | 353 | W | 262116 | W | 2991 | W | 250239 | W | 844384 | W | 20509664 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.5 Operational Risk

4.5.1 Concept

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

4.5.2 Risk management

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

4.6 Capital Management

The Group complies with the capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements ("BIS") in June 2011 and was implemented in Korea in December 2013. According to this standard, the Group is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 8.0%, Tier 1 Capital ratio of 9.5%, and Total Capital ratio of 11.5%) as of December 31, 2022.

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

• Common Equity Tier 1 Capital: Common equity Tier 1 Capital is the first to take losses of the Group and is the
last to be compensated in liquidation of the Group and not repaid except for liquidation. It includes capital, capital surplus, retained earnings, non-controlling interests of the consolidated subsidiaries,
accumulated other comprehensive income, and other capital surplus, etc.

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

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

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

4.6 Capital Management (cont'd)

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

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

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

Details of the Group's capital adequacy ratio in accordance with Basel III requirements as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Total Capital: | W | 48969952 | W | 45882765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital |  | 45032020 |  | 42305442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital |  | 40103660 |  | 39144259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional Tier 1 Capital |  | 4928360 |  | 3161183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 2 Capital |  | 3937932 |  | 3577323 |
|  Risk-Weighted Assets: |  | 302967993 |  | 290913570 |
|  Total Capital ratio (%): |  | 16.16 |  | 15.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital ratio (%) |  | 14.86 |  | 14.54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital ratio (%) |  | 13.24 |  | 13.46 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**5. Segment Information** 

5.1 Overall Segment Information and Business Segments

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

---

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

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

Financial information by business segment as of and for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
|  | **Corporate<br>banking** | **Corporate<br>banking** | **Retail banking** | **Retail banking** | **Other banking<br>services** | **Other banking<br>services** | **Sub-total** | **Sub-total** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
|  Net operating revenues (expenses) from external customers | W | 4981702 | W | 4472888 | W | (188422) | W | 9266168 | W | 1126925 | W | 1423684 | W | 1781135 | W | 501983 | W | 912750 | W |  | W | 15012645 |
|  Intersegment net operating revenues (expenses) |  | 16366 |  |  |  | 371576 |  | 387942 |  | (38909) |  | (29335) |  | (150464) |  | (29827) |  | 205463 |  | (344870) |  |  |
|  |  | 4998068 |  | 4472888 |  | 183154 |  | 9654110 |  | 1088016 |  | 1394349 |  | 1630671 |  | 472156 |  | 1118213 |  | (344870) |  | 15012645 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income |  | 4720718 |  | 3936872 |  | 633431 |  | 9291021 |  | 538275 |  | 693193 |  | 1474209 |  | 555188 |  | 559468 |  | 1580 |  | 13112934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income |  | 7831383 |  | 5763852 |  | 1763466 |  | 15358701 |  | 1156586 |  | 717558 |  | 1983828 |  | 566271 |  | 1064529 |  | (58955) |  | 20788518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  | (3110665) |  | (1826980) |  | (1130035) |  | (6067680) |  | (618311) |  | (24365) |  | (509619) |  | (11083) |  | (505061) |  | 60535 |  | (7675584) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net fee and commission income (expenses) |  | 385884 |  | 261350 |  | 449374 |  | 1096608 |  | 784748 |  | (190354) |  | 519501 |  | (39059) |  | 1145309 |  | 4879 |  | 3321632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission income |  | 546634 |  | 415858 |  | 567666 |  | 1530158 |  | 979215 |  | 17889 |  | 1617446 |  | 508 |  | 1301765 |  | (325461) |  | 5121520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission expense |  | (160750) |  | (154508) |  | (118292) |  | (433550) |  | (194467) |  | (208243) |  | (1097945) |  | (39567) |  | (156456) |  | 330340 |  | (1799888) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net insurance income |  |  |  |  |  |  |  |  |  |  |  | 655452 |  | 10593 |  | 39160 |  |  |  | (8692) |  | 696513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance income |  |  |  |  |  |  |  |  |  |  |  | 13424848 |  | 19702 |  | 3736166 |  |  |  | (43874) |  | 17136842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance expense |  |  |  |  |  |  |  |  |  |  |  | (12769396) |  | (9109) |  | (3697006) |  |  |  | 35182 |  | (16440329) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net gains(losses) on financial instruments at fair value through profit or loss |  | 73680 |  |  |  | 136901 |  | 210581 |  | (210589) |  | 339698 |  | 1724 |  | 66865 |  | 21844 |  | (182766) |  | 247357 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net other operating income (expenses) |  | (182214) |  | 274666 |  | (1036552) |  | (944100) |  | (24418) |  | (103640) |  | (375356) |  | (149998) |  | (608408) |  | (159871) |  | (2365791) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
|  | **Corporate<br>banking** | **Corporate<br>banking** | **Retail banking** | **Retail banking** | **Other banking<br>services** | **Other banking<br>services** | **Sub-total** | **Sub-total** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | W | (1972147) | W | (2092770) | W | (633034) | W | (4697951) | W | (822409) | W | (849452) | W | (597158) | W | (224968) | W | (466510) | W | 120646 | W | (7537802) |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating income (expenses) before provision for credit losses |  | 3025921 |  | 2380118 |  | (449880) |  | 4956159 |  | 265607 |  | 544897 |  | 1033513 |  | 247188 |  | 651703 |  | (224224) |  | 7474843 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal (provision) of credit losses |  | (778260) |  | (281868) |  | (61042) |  | (1121170) |  | (28425) |  | (6066) |  | (500453) |  | 1264 |  | (178172) |  | (2966) |  | (1835988) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net operating income (expenses) |  | 2247661 |  | 2098250 |  | (510922) |  | 3834989 |  | 237182 |  | 538831 |  | 533060 |  | 248452 |  | 473531 |  | (227190) |  | 5638855 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share of profit (loss) of associates and joint ventures |  |  |  |  |  | 12666 |  | 12666 |  | 3039 |  | 1104 |  | 1583 |  |  |  | (7966) |  | (39184) |  | (28758) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net other non-operating income (expenses) |  | (13317) |  |  |  | (24548) |  | (37865) |  | 12994 |  | 190263 |  | (7197) |  | (379) |  | (4717) |  | 32430 |  | 185529 |
| &nbsp;&nbsp;&nbsp;&nbsp; Segment profit (loss) before income tax expense |  | 2234344 |  | 2098250 |  | (522804) |  | 3809790 |  | 253215 |  | 730198 |  | 527446 |  | 248073 |  | 460848 |  | (233944) |  | 5795626 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax benefit (expense) |  | (732211) |  | (522478) |  | 173206 |  | (1081483) |  | (64300) |  | (172169) |  | (144443) |  | (61810) |  | (113458) |  | 15276 |  | (1622387) |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit (loss) for the year | W | 1502133 | W | 1575772 | W | (349598) | W | 2728307 | W | 188915 | W | 558029 | W | 383003 | W | 186263 | W | 347390 | W | (218668) | W | 4173239 |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit (loss) attributable to shareholders of the Parent Company |  | 1505240 |  | 1575772 |  | (84997) |  | 2996015 |  | 187784 |  | 557680 |  | 378592 |  | 186263 |  | 343859 |  | (255363) |  | 4394830 |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit (loss) attributable to non-controlling interests |  | (3107) |  |  |  | (264601) |  | (267708) |  | 1131 |  | 349 |  | 4411 |  |  |  | 3531 |  | 36695 |  | (221591) |
|  Total assets \* |  | 211989036 |  | 165273848 |  | 140506628 |  | 517769512 |  | 53824245 |  | 42736747 |  | 29721017 |  | 34846987 |  | 60219661 |  | (37947321) |  | 701170848 |
|  Total liabilities \* |  | 205382625 |  | 191786626 |  | 86877002 |  | 484046253 |  | 47946933 |  | 39397168 |  | 24998214 |  | 33097892 |  | 25973896 |  | (3932422) |  | 651527934 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
|  | **Corporate<br>banking** | **Corporate<br>banking** | **Retail banking** | **Retail banking** | **Other banking<br>services** | **Other banking<br>services** | **Sub-total** | **Sub-total** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net operating revenues from external customers | W | 3589404 | W | 2958198 | W | 1585192 | W | 8132794 | W | 1675977 | W | 1285593 | W | 1773989 | W | 631065 | W | 984185 | W |  | W | 14483603 |
| &nbsp;&nbsp;&nbsp;&nbsp; Intersegment net operating revenues (expenses) |  | 34771 |  |  |  | 271887 |  | 306658 |  | 11002 |  | (53017) |  | (158545) |  | (7273) |  | 98215 |  | (197040) |  |  |
|  |  | 3624175 |  | 2958198 |  | 1857079 |  | 8439452 |  | 1686979 |  | 1232576 |  | 1615444 |  | 623792 |  | 1082400 |  | (197040) |  | 14483603 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income |  | 3802477 |  | 3541539 |  | 384460 |  | 7728476 |  | 556386 |  | 625228 |  | 1390753 |  | 519609 |  | 411874 |  | (2754) |  | 11229572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income |  | 5317800 |  | 4437930 |  | 918631 |  | 10674361 |  | 824775 |  | 634816 |  | 1768215 |  | 523882 |  | 816515 |  | (31686) |  | 15210878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  | (1515323) |  | (896391) |  | (534171) |  | (2945885) |  | (268389) |  | (9588) |  | (377462) |  | (4273) |  | (404641) |  | 28932 |  | (3981306) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net fee and commission income (expenses) |  | 390619 |  | 392060 |  | 405202 |  | 1187881 |  | 1014801 |  | (173348) |  | 546022 |  | (26895) |  | 1068648 |  | 8474 |  | 3625583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission income |  | 534749 |  | 535530 |  | 516665 |  | 1586944 |  | 1201670 |  | 10418 |  | 1644806 |  | 433 |  | 1187661 |  | (308326) |  | 5323606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission expense |  | (144130) |  | (143470) |  | (111463) |  | (399063) |  | (186869) |  | (183766) |  | (1098784) |  | (27328) |  | (119013) |  | 316800 |  | (1698023) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net insurance income |  |  |  |  |  |  |  |  |  |  |  | 493271 |  | 11589 |  | 56871 |  |  |  | (5020) |  | 556711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance income |  |  |  |  |  |  |  |  |  |  |  | 12722178 |  | 21711 |  | 3406145 |  |  |  | (42176) |  | 16107858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance expense |  |  |  |  |  |  |  |  |  |  |  | (12228907) |  | (10122) |  | (3349274) |  |  |  | 37156 |  | (15551147) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net gains on financial instruments at fair value through profit or loss |  | 29407 |  |  |  | 313427 |  | 342834 |  | 123183 |  | 369864 |  | 3431 |  | 137343 |  | 184467 |  | (165818) |  | 995304 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net other operating income (expenses) |  | (598328) |  | (975401) |  | 753990 |  | (819739) |  | (7391) |  | (82439) |  | (336351) |  | (63136) |  | (582589) |  | (31922) |  | (1923567) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Banking business** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
|  | **Corporate<br>banking** | **Corporate<br>banking** | **Retail banking** | **Retail banking** | **Other banking<br>services** | **Other banking<br>services** | **Sub-total** | **Sub-total** | **Securities** | **Securities** | **Non-life**<br>**insurance** | **Non-life**<br>**insurance** | **Credit card** | **Credit card** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Consolidation**<br>**adjustments** | **Consolidation**<br>**adjustments** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | W | (1831948) | W | (2036855) | W | (533928) | W | (4402731) | W | (855142) | W | (833597) | W | (577734) | W | (203198) | W | (438170) | W | 109719 | W | (7200853) |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating income before provision for credit losses |  | 1792227 |  | 921343 |  | 1323151 |  | 4036721 |  | 831837 |  | 398979 |  | 1037710 |  | 420594 |  | 644230 |  | (87321) |  | 7282750 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal (provision) of credit losses |  | (392956) |  | (125876) |  | (3896) |  | (522728) |  | (18438) |  | (5476) |  | (465342) |  | 1677 |  | (175568) |  | 742 |  | (1185133) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net operating income |  | 1399271 |  | 795467 |  | 1319255 |  | 3513993 |  | 813399 |  | 393503 |  | 572368 |  | 422271 |  | 468662 |  | (86579) |  | 6097617 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share of profit (loss) of associates and joint ventures |  |  |  |  |  | 57156 |  | 57156 |  | 14484 |  | (143) |  | 785 |  |  |  | 9411 |  | 11833 |  | 93526 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net other non-operating income (expenses) |  | (9237) |  |  |  | (70368) |  | (79605) |  | (18307) |  | 17446 |  | (7378) |  | (158) |  | 2408 |  | (23943) |  | (109537) |
| &nbsp;&nbsp;&nbsp;&nbsp; Segment profit before income tax expense |  | 1390034 |  | 795467 |  | 1306043 |  | 3491544 |  | 809576 |  | 410806 |  | 565775 |  | 422113 |  | 480481 |  | (98689) |  | 6081606 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax expense |  | (368577) |  | (218753) |  | (366185) |  | (953515) |  | (215424) |  | (108715) |  | (144611) |  | (132510) |  | (148044) |  | 5594 |  | (1697225) |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit for the year | W | 1021457 | W | 576714 | W | 939858 | W | 2538029 | W | 594152 | W | 302091 | W | 421164 | W | 289603 | W | 332437 | W | (93095) | W | 4384381 |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to shareholders of the Parent Company |  | 1022699 |  | 576714 |  | 991351 |  | 2590764 |  | 594301 |  | 301836 |  | 418898 |  | 289603 |  | 330563 |  | (116422) |  | 4409543 |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit (loss) attributable to non-controlling interests |  | (1242) |  |  |  | (51493) |  | (52735) |  | (149) |  | 255 |  | 2266 |  |  |  | 1874 |  | 23327 |  | (25162) |
|  Total assets \* |  | 189310448 |  | 169513344 |  | 124741106 |  | 483564898 |  | 55493984 |  | 41472227 |  | 27349561 |  | 36921678 |  | 52929567 |  | (33836081) |  | 663895834 |
|  Total liabilities \* |  | 197834530 |  | 180815013 |  | 72026442 |  | 450675985 |  | 50008422 |  | 37328955 |  | 22793919 |  | 34166882 |  | 23191051 |  | (2563300) |  | 615601914 |

---

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

5.2 Services and Geographical Segments

5.2.1 Services information

Net operating revenues from external customers by service for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Banking service | W | 9266168 | W | 8132794 |
|  Securities service |  | 1126925 |  | 1675977 |
|  Non-life insurance service |  | 1423684 |  | 1285593 |
|  Credit card service |  | 1781135 |  | 1773989 |
|  Life insurance service |  | 501983 |  | 631065 |
|  Others |  | 912750 |  | 984185 |
|  | W | 15012645 | W | 14483603 |

---

5.2.2 Geographical information

Geographical net operating revenues from external customers for the years ended December 31, 2022 and 2021, and major non-current assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Net operating revenues**<br>**from external customers** | **Net operating revenues**<br>**from external customers** | **Net operating revenues**<br>**from external customers** | **Net operating revenues**<br>**from external customers** | **Major non-current assets** | **Major non-current assets** | **Major non-current assets** | **Major non-current assets** |
|  | **2022** | **2022** | **2021** | **2021** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Domestic | W | 13778598 | W | 13525769 | W | 9699637 | W | 9853970 |
|  United States |  | 112743 |  | 112388 |  | 53214 |  | 45530 |
|  New Zealand |  | 12378 |  | 12857 |  | 1382 |  | 1932 |
|  China |  | 172547 |  | 127939 |  | 19715 |  | 21416 |
|  Cambodia |  | 546258 |  | 410482 |  | 46060 |  | 35668 |
|  United Kingdom |  | 31685 |  | 29764 |  | 5808 |  | 86361 |
|  Indonesia |  | 234878 |  | 166683 |  | 422024 |  | 437088 |
|  Others |  | 123558 |  | 97721 |  | 536794 |  | 20446 |
|  Consolidation adjustments |  |  |  |  |  | 555572 |  | 518788 |
|  | W | 15012645 | W | 14483603 | W | 11340206 | W | 11021199 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**6. Financial Assets and Financial Liabilities** 

6.1 Classification and Fair Value of Financial Instruments

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Carrying**<br>**amount** | **Carrying**<br>**amount** | **Fair value** | **Fair value** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | W | 32063421 | W | 31992401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  | 64935344 |  | 64935344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  | 69469 |  | 69469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 61787727 |  | 61787727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 2494580 |  | 2494580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 493562 |  | 493562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 90006 |  | 90006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 8984171 |  | 8984171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 461963 |  | 461963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 436530502 |  | 433885302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 58288734 |  | 54291992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  | 58299841 |  | 58299841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 55610319 |  | 55610319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 2326378 |  | 2326378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 363144 |  | 363144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 11209350 |  | 11209350 |
|  | W | 670773326 | W | 664060364 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | W | 2193210 | W | 2193210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss |  | 10078394 |  | 10078394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 9209537 |  | 9209537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 297172 |  | 297172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 388888452 |  | 388417827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 71717366 |  | 71187130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 68698203 |  | 66432790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 26705247 |  | 26705247 |
|  | W | 577787581 | W | 574521307 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Carrying**<br>**amount** | **Carrying**<br>**amount** | **Fair value** | **Fair value** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | W | 31009374 | W | 31081231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  | 66005815 |  | 66005815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  | 200742 |  | 200742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 63002692 |  | 63002692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 2419463 |  | 2419463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 269296 |  | 269296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 113622 |  | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 3532542 |  | 3532542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 188828 |  | 188828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 417900273 |  | 417775260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 44471628 |  | 44392419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  | 60376243 |  | 60376243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 56259511 |  | 56259511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 3803128 |  | 3803128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 313604 |  | 313604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 10755350 |  | 10755350 |
|  | W | 634240053 | W | 634107688 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | W | 2939584 | W | 2939584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss |  | 9149396 |  | 9149396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 3509789 |  | 3509789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 172469 |  | 172469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 372023918 |  | 371936631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 56912374 |  | 56805938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 67430188 |  | 67288409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 29494402 |  | 29494402 |
|  | W | 541632120 | W | 541296618 |

---

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2022 and 2021, are as follows: (cont'd)

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

---

| | |
|:---|:---|
|  **Cash and due from financial institutions** | Fair value of cash is same as carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable on demand. Fair value of general deposit is measured using Discounted Cash Flow ("DCF") Model. |
|  **Securities** | Fair value of securities and others that are traded in an active market is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments among DCF Model, Free Cash Flow to Equity Model, Comparable Company Analysis, Dividend Discount Model, Risk Adjusted Discount Rate Method, and Net Asset Value Method. |
|  **Loans measured at amortized cost** | Fair value of loans is determined using DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate. |
|  **Derivatives and financial instruments at fair value through profit or loss** | Fair value of exchange traded derivatives is determined using quoted price in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Group uses internally developed valuation models that are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including Finite Difference Method ("FDM"), MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Closed Form, and Tree Model or valuation results from independent external professional valuation institutions. |
|  **Deposits** | Carrying amount of demand deposits is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of time deposits is determined using DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate. |
|  **Borrowings** | Carrying amount of overdrafts in foreign currency is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of other borrowings is determined using DCF Model. |
|  **Debentures** | Fair value is determined using valuation results of external professional valuation institutions, which are calculated using market inputs. |
|  **Other financial assets and other financial liabilities** | Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions and their maturities are relatively short or not defined. |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.1.2 Fair value hierarchy

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

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** |  |  |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 2** | **Level 3 \*** | **Level 3 \*** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |
|  Financial assets at fair value through profit or loss: | W | 15494273 | W | 33958689 | W | 15482382 | W | 64935344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  |  |  | 24444 |  | 45025 |  | 69469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 14550359 |  | 33175465 |  | 14061903 |  | 61787727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 853908 |  | 414291 |  | 1226381 |  | 2494580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  |  | 344489 |  | 149073 |  | 493562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 90006 |  |  |  |  |  | 90006 |
|  Derivatives held for trading |  | 182019 |  | 8678896 |  | 123256 |  | 8984171 |
|  Derivatives held for hedging |  |  |  | 461963 |  |  |  | 461963 |
|  Financial assets at fair value through other comprehensive income: |  | 19540964 |  | 37281814 |  | 1477063 |  | 58299841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 18928038 |  | 36682281 |  |  |  | 55610319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 612926 |  | 236389 |  | 1477063 |  | 2326378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  |  | 363144 |  |  |  | 363144 |
|  | W | 35217256 | W | 80381362 | W | 17082701 | W | 132681319 |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |
|  Financial liabilities at fair value through profit or loss | W | 2193210 | W |  | W |  | W | 2193210 |
|  Financial liabilities designated at fair value through profit or loss |  | 35687 |  | 1811404 |  | 8231303 |  | 10078394 |
|  Derivatives held for trading |  | 442042 |  | 7984424 |  | 783071 |  | 9209537 |
|  Derivatives held for hedging |  |  |  | 297172 |  |  |  | 297172 |
|  | W | 2670939 | W | 10093000 | W | 9014374 | W | 21778313 |

---

\* Includes KB Securities Co., Ltd.'s OTC derivatives consisting of W 404,334 million of financial assets at fair value through profit or loss (debt instruments), W 8,241,509 million of financial liabilities designated at fair value through profit or loss, W 120,775 million of derivative financial assets, and W 777,542 million of derivative financial liabilities. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Total** | **Total** |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 2** | **Level 3 \*** | **Level 3 \*** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |
|  Financial assets at fair value through profit or loss: | W | 13108985 | W | 40205783 | W | 12691047 | W | 66005815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  |  |  | 128726 |  | 72016 |  | 200742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 12146181 |  | 39300923 |  | 11555588 |  | 63002692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 849182 |  | 600768 |  | 969513 |  | 2419463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  |  | 175366 |  | 93930 |  | 269296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 113622 |  |  |  |  |  | 113622 |
|  Derivatives held for trading |  | 81408 |  | 3241129 |  | 210005 |  | 3532542 |
|  Derivatives held for hedging |  |  |  | 188828 |  |  |  | 188828 |
|  Financial assets at fair value through other comprehensive income: |  | 20027158 |  | 38900548 |  | 1448537 |  | 60376243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 17706456 |  | 38553055 |  |  |  | 56259511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 2320702 |  | 47859 |  | 1434567 |  | 3803128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  |  | 299634 |  | 13970 |  | 313604 |
|  | W | 33217551 | W | 82536288 | W | 14349589 | W | 130103428 |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |
|  Financial liabilities at fair value through profit or loss | W | 2939584 | W |  | W |  | W | 2939584 |
|  Financial liabilities designated at fair value through profit or loss |  | 36938 |  | 1294944 |  | 7817514 |  | 9149396 |
|  Derivatives held for trading |  | 211132 |  | 3124057 |  | 174600 |  | 3509789 |
|  Derivatives held for hedging |  |  |  | 172469 |  |  |  | 172469 |
|  | W | 3187654 | W | 4591470 | W | 7992114 | W | 15771238 |

---

\* Includes KB Securities Co., Ltd.'s OTC derivatives consisting of W 128,083 million of financial assets at fair value through profit or loss (debt instruments), W 7,829,041 million of financial liabilities designated at fair value through profit or loss, W 209,809 million of derivative financial assets, and W 168,464 million of derivative financial liabilities. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the consolidated statements of financial position as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | W | 33958689 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  | 24444 | DCF Model, Hull-white Model | Projected cash flow, Discount rate, Volatility, Correlation coefficient |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 33175465 | DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, Binomial Model, and others | Projected cash flow, Fair value of underlying asset, Dividend yield, Price of underlying asset, Interest rate, Discount rate, Volatility, Correlation coefficient, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 414291 | DCF Model | Interest rate, Discount rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 344489 | DCF Model | Interest rate, Discount rate, and others |
|  Derivatives held for trading |  | 8678896 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, Option Model, and others | Price of underlying asset, Underlying asset index, Interest rate, Dividend yield, Volatility, Foreign exchange rate, Discount rate, and others |
|  Derivatives held for hedging |  | 461963 | DCF Model, Closed Form, FDM | Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange rate, CRS interest rate, and others |
|  Financial assets at fair value through other comprehensive income: |  | 37281814 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 36682281 | DCF Model, Option Model | Underlying asset index, Discount rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 236389 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 363144 | DCF Model | Discount rate |
|  | W | 80381362 |  |  |
|  **Financial liabilities** |  |  |  |  |
|  Financial liabilities designated at fair value through profit or loss | W | 1811404 | DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, Net Asset Value Method | Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate, Foreign exchange rate |
|  Derivatives held for trading |  | 7984424 | DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, and others | Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate, Volatility, and others |
|  Derivatives held for hedging |  | 297172 | DCF Model, Closed Form, FDM | Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange rate, Risk free interest rate, and others |
|  | W | 10093000 |  |  |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

*(In millions of Korean won)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
|  Financial assets at fair value through profit or loss: | W | 40205783 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  | 128726 | DCF Model, Hull-white Model | Projected cash flow, Discount rate, Volatility, Correlation coefficient |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 39300923 | DCF Model, Hull-white Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Net Asset Value Method, Binomial Model, and others | Projected cash flow, Fair value of underlying asset, Dividend yield, Price of underlying asset, Interest rate, Discount rate, Volatility, Correlation coefficient, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 600768 | DCF Model | Interest rate, Discount rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 175366 | DCF Model | Interest rate, Discount rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 3241129 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, and others | Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate, Volatility, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 188828 | DCF Model, Closed Form, FDM | Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  | 38900548 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 38553055 | DCF Model, Market Value Approach, Option Model | Underlying asset index, Interest rate, Discount rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 47859 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 299634 | DCF Model | Discount rate |
|  | W | 82536288 |  |  |
|  **Financial liabilities** |  |  |  |  |
|  Financial liabilities designated at fair value through profit or loss | W | 1294944 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model | Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate |
|  Derivatives held for trading |  | 3124057 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, and others | Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate, Volatility, and others |
|  Derivatives held for hedging |  | 172469 | DCF Model, Closed Form, FDM | Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange rate, and others |
|  | W | 4591470 |  |  |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Total** | **Total** |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 2** | **Level 3** | **Level 3** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | W | 2517470 | W | 26734157 | W | 2740774 | W | 31992401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  | 190458 |  | 433694844 |  | 433885302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost <sup>2</sup> |  | 20626701 |  | 33646001 |  | 19290 |  | 54291992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>2</sup> |  |  |  |  |  | 11209350 |  | 11209350 |
|  | W | 23144171 | W | 60570616 | W | 447664258 | W | 531379045 |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>1</sup> | W |  | W | 168864349 | W | 219553478 | W | 388417827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings <sup>3</sup> |  |  |  | 6088123 |  | 65099007 |  | 71187130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  |  | 58668855 |  | 7763935 |  | 66432790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>2</sup> |  |  |  |  |  | 26705247 |  | 26705247 |
|  | W |  | W | 233621327 | W | 319121667 | W | 552742994 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Total** | **Total** |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 2** | **Level 3** | **Level 3** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | W | 3330920 | W | 25791556 | W | 1958755 | W | 31081231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  | 260101 |  | 417515159 |  | 417775260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost <sup>2</sup> |  | 18263895 |  | 26125391 |  | 3133 |  | 44392419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>2</sup> |  |  |  |  |  | 10755350 |  | 10755350 |
|  | W | 21594815 | W | 52177048 | W | 430232397 | W | 504004260 |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>1</sup> | W |  | W | 204299174 | W | 167637457 | W | 371936631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings <sup>3</sup> |  |  |  | 3137427 |  | 53668511 |  | 56805938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  |  | 60824743 |  | 6463666 |  | 67288409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>2</sup> |  |  |  |  |  | 29494402 |  | 29494402 |
|  | W |  | W | 268261344 | W | 257264036 | W | 525525380 |

---

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

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

<sup>3</sup> Borrowings of W 18,266 million and W 2,143 million included in Level 2 are the carrying amounts which are reasonable approximations of fair value as of December 31, 2022 and 2021, respectively. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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

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

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation<br>techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | W | 190458 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 33646001 | DCF Model,<br> MonteCarlo<br>Simulation | Discount<br>rate, Interest<br>rate |
|  | W | 33836459 |  |  |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | W | 6069857 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 58668855 | DCF Model | Discount rate |
|  | W | 64738712 |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Fair value** | **Valuation<br>techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | W | 260101 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 26125391 | DCF Model,<br> MonteCarlo<br>Simulation | Discount<br>rate, Interest<br>rate |
|  | W | 26385492 |  |  |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | W | 3135284 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 60824743 | DCF Model | Discount rate |
|  | W | 63960027 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

Valuation techniques and inputs of financial assets and liabilities classified as Level 3, and whose fair value is disclosed as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation<br>techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
|  Cash and due from financial institutions | W | 2740774 | DCF Model | Credit spread, Other spread, Interest rate |
|  Loans measured at amortized cost |  | 433694844 | DCF Model | Credit spread, Other spread, Prepayment rate, Interest rate |
|  | W | 436435618 |  |  |
|  **Financial liabilities** |  |  |  |  |
|  Deposits | W | 219553478 | DCF Model | Other spread, Prepayment rate, Interest rate |
|  Borrowings |  | 65099007 | DCF Model | Other spread, Interest rate |
|  Debentures |  | 7763935 | DCF Model | Other spread, Interest rate |
|  | W | 292416420 |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Fair value** | **Valuation<br>techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
|  Cash and due from financial institutions | W | 1958755 | DCF Model | Credit spread, Other spread, Interest rate |
|  Loans measured at amortized cost |  | 417515159 | DCF Model | Credit spread, Other spread, Prepayment rate, Interest rate |
|  | W | 419473914 |  |  |
|  **Financial liabilities** |  |  |  |  |
|  Deposits | W | 167637457 | DCF Model | Other spread, Prepayment rate, Interest rate |
|  Borrowings |  | 53668511 | DCF Model | Other spread, Interest rate |
|  Debentures |  | 6463666 | DCF Model | Other spread, Interest rate |
|  | W | 227769634 |  |  |

---

**6.2 Disclosure of Fair Value Hierarchy Level 3** 

6.2.1 Valuation policy and process of Level 3 fair value

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

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Financial assets at fair value through profit<br>or loss** | **Financial assets at fair value through profit<br>or loss** | **Financial assets at fair value through profit<br>or loss** | **Financial assets at fair value through profit<br>or loss** | **Financial assets at fair value through profit<br>or loss** | **Financial assets at fair value through profit<br>or loss** | **Financial investments** | **Financial investments** | **Financial investments** | **Financial investments** | **Financial<br>liabilities at<br>fair value<br>through profit<br>or loss** | **Financial<br>liabilities at<br>fair value<br>through profit<br>or loss** | **Net<br>derivative<br>financial<br>instruments** | **Net<br>derivative<br>financial<br>instruments** |
|  | **Due from<br>financial<br>institutions<br>measured at fair<br>value through<br>profit or loss** | **Due from<br>financial<br>institutions<br>measured at fair<br>value through<br>profit or loss** | **Securities<br>measured at<br>fair value<br>through profit<br>or loss** | **Securities<br>measured at<br>fair value<br>through profit<br>or loss** | **Loans<br>measured at<br>fair value<br>through<br>profit or<br>loss** | **Loans<br>measured at<br>fair value<br>through<br>profit or<br>loss** | **Equity<br>securities<br>measured at<br>fair value<br>through other<br>comprehensive<br>income** | **Equity<br>securities<br>measured at<br>fair value<br>through other<br>comprehensive<br>income** | **Loans<br>measured at<br>fair value<br>through other<br>comprehensive<br>income** | **Loans<br>measured at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>liabilities<br>designated at<br>fair value<br>through profit<br>or loss** | **Financial<br>liabilities<br>designated at<br>fair value<br>through profit<br>or loss** | **Derivatives<br>held for<br>trading** | **Derivatives<br>held for<br>trading** |
|  Beginning | W | 72016 | W | 12525101 | W | 93930 | W | 1434567 | W | 13970 | W | (7817514) | W | 35405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gains or losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit or loss |  | (74) |  | 129390 |  | 20306 |  |  |  |  |  | 561996 |  | (663229) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) |  | (6917) |  | (304847) |  |  |  | (3004) |  | 130 |  | 60520 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases |  |  |  | 4409579 |  | 45485 |  | 46041 |  |  |  |  |  | 23526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (20000) |  | (1368002) |  | (10648) |  | (541) |  | (14100) |  |  |  | (59177) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issues |  |  |  |  |  |  |  |  |  |  |  | (5222820) |  | (14796) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlements |  |  |  | (61055) |  |  |  |  |  |  |  | 4186515 |  | 18456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers into Level 3 \* |  |  |  | 27120 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers out of Level 3 \* |  |  |  | (69002) |  |  |  |  |  |  |  |  |  |  |
|  Ending | W | 45025 | W | 15288284 | W | 149073 | W | 1477063 | W |  | W | (8231303) | W | (659815) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ****<br> *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Financial assets at fair value through profit or<br>loss** | **Financial assets at fair value through profit or<br>loss** | **Financial assets at fair value through profit or<br>loss** | **Financial assets at fair value through profit or<br>loss** | **Financial assets at fair value through profit or<br>loss** | **Financial assets at fair value through profit or<br>loss** | **Financial investments** | **Financial investments** | **Financial investments** | **Financial investments** | **Financial<br>liabilities at fair<br>value through<br>profit or loss** | **Financial<br>liabilities at fair<br>value through<br>profit or loss** | **Net derivative<br>financial<br>instruments** | **Net derivative<br>financial<br>instruments** |
|  | **Due from<br>financial<br>institutions<br>measured at fair<br>value through<br>profit or loss** | **Due from<br>financial<br>institutions<br>measured at fair<br>value through<br>profit or loss** | **Securities<br>measured at<br>fair value<br>through profit<br>or loss** | **Securities<br>measured at<br>fair value<br>through profit<br>or loss** | **Loans<br>measured at fair<br>value through<br>profit or loss** | **Loans<br>measured at fair<br>value through<br>profit or loss** | **Equity<br>securities<br>measured at<br>fair value<br>through other<br>comprehensive<br>income** | **Equity<br>securities<br>measured at<br>fair value<br>through other<br>comprehensive<br>income** | **Loans<br>measured at fair<br>value through<br>other<br>comprehensive<br>income** | **Loans<br>measured at fair<br>value through<br>other<br>comprehensive<br>income** | **Financial<br>liabilities<br>designated at fair<br>value through<br>profit or loss** | **Financial<br>liabilities<br>designated at fair<br>value through<br>profit or loss** | **Derivatives<br>held for trading** | **Derivatives<br>held for trading** |
|  Beginning | W | 90083 | W | 11099923 | W | 38756 | W | 2419908 | W | 27983 | W | (9201431) | W | 300420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gains or losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit or loss |  | 212 |  | 346982 |  | (431) |  |  |  |  |  | 61756 |  | (66116) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) |  | 1720 |  | 223545 |  |  |  | (101876) |  | 87 |  | (5446) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases |  |  |  | 3567937 |  | 55605 |  | 74602 |  |  |  |  |  | 3954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (19999) |  | (2360801) |  |  |  | (5618) |  | (14100) |  |  |  | (170055) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issues |  |  |  |  |  |  |  |  |  |  |  | (8233128) |  | (32516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlements |  |  |  |  |  |  |  |  |  |  |  | 9560735 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers into Level 3 \* |  |  |  | 4307 |  |  |  |  |  |  |  |  |  | (282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers out of Level 3 \* |  |  |  | (356792) |  |  |  | (952449) |  |  |  |  |  |  |
|  Ending | W | 72016 | W | 12525101 | W | 93930 | W | 1434567 | W | 13970 | W | (7817514) | W | 35405 |

---

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

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Net gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or<br>loss** | **Net gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or<br>loss** | **Other<br>operating<br>income** | **Other<br>operating<br>income** | **Net**<br>**interest<br>income** | **Net gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Net gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Other<br>operating<br>income** | **Other<br>operating<br>income** | **Net**<br>**interest<br>income** |
|  Total gains (losses) recognized in profit or loss for the period | W | (75653) | W | 124042 | W | W | 256167 | W | 86236 | W |
|  Total gains (losses) recognized in profit or loss from financial instruments held at the end of the reporting period |  | 88483 |  | 73711 |  |  | 126516 |  | 85256 |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3 Sensitivity analysis of changes in unobservable inputs

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Unobservable inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of**<br> **unobservable inputs to fair<br>value** |
| **Financial assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions | W | 45025 | Hull-white Model | &nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 0.86 | The lower the interest rate, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  |  | DCF Model, Closed Form, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others | &nbsp;&nbsp;&nbsp;&nbsp; Growth rate | 0.00 ~ 3.00 | The higher the growth rate, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  |  | DCF Model, Closed Form, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others | &nbsp;&nbsp;&nbsp;&nbsp; Volatility | 0.24 ~ 37.39 | The higher the volatility, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  |  | DCF Model, Closed Form, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others | &nbsp;&nbsp;&nbsp;&nbsp; Discount rate | 1.54 ~ 15.75 | The lower the discount rate, the higher the fair value |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; Correlation coefficient between underlying assets | -60.10 ~ 93.32 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; Liquidation value | -1.00 ~ 1.00 | The higher the liquidation value, the higher the fair value |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; Recovery rate | 40.00 | The higher the recovery rate, the higher the fair value |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; Rate of real estate price fluctuation | -1.00 ~ 1.00 | The higher the sale price of real estate, the higher the fair value |
|  |  | 14061903 |  | &nbsp;&nbsp;&nbsp;&nbsp; Volatility of Stock price | 18.87 ~ 19.48 | The higher the volatility, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1226381 | Income Approach, Market Value Approach, Asset Value Approach, DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Dividend Discount Model, Usage of Past Transactions, Binomial Model, and others | &nbsp;&nbsp;&nbsp;&nbsp; Growth rate | 0.00 ~ 4.00 | The higher the growth rate, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1226381 | Income Approach, Market Value Approach, Asset Value Approach, DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Dividend Discount Model, Usage of Past Transactions, Binomial Model, and others | &nbsp;&nbsp;&nbsp;&nbsp; Discount rate | 8.00 ~ 23.00 | The lower the discount rate, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1226381 |  | &nbsp;&nbsp;&nbsp;&nbsp; Volatility | 16.80 ~ 25.50 | The higher the volatility, the higher the fair value fluctuation |
|  Loans |  | 149073 | DCF Model | &nbsp;&nbsp;&nbsp;&nbsp; Discount rate | 9.91 | The lower the discount rate, the higher the fair value |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Unobservable inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of**<br> **unobservable inputs to fair<br>value** |
|  Derivatives held for trading: | Derivatives held for trading: | Derivatives held for trading: | Derivatives held for trading: | Derivatives held for trading: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock and index | W | 79297 | DCF Model, Closed Form, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model, Net Asset Value Method | Volatility of underlying asset | 10.00 ~ 58.84 | The higher the volatility, the higher the fair value fluctuation |
|  |  |  |  | Correlation coefficient | -60.10 ~ 79.72 | The higher the correlation coefficient, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency, interest rate, and others |  | 43959 | DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form | Volatility | 9.77 ~ 32.92 | The higher the volatility, the higher the fair value fluctuation |
|  |  |  |  | Correlation coefficient | 8.42 ~ 93.32 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  Financial assets at fair value through other comprehensive income: | Financial assets at fair value through other comprehensive income: | Financial assets at fair value through other comprehensive income: | Financial assets at fair value through other comprehensive income: | Financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1477063 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, IMV Model, Income Approach, Net Asset Value Method, Market Value Approach, and others | Growth rate | 0.00 ~ 2.00 | The higher the growth rate, the higher the fair value |
|  |  |  |  | Discount rate | 7.96 ~ 19.14 | The lower the discount rate, the higher the fair value |
|  |  |  |  | Volatility of Stock price | 23.36 ~ 25.49 | The higher the volatility, the higher the fair value fluctuation |
|  |  |  |  | Volatility of interest rate | 56.32~121.17 | The higher the volatility, the higher the fair value fluctuation |
|  | W | 17082701 |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Unobservable inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of**<br> **unobservable inputs to fair<br>value** |
| **Financial liabilities** |  |  |  |  |  |  |
|  Financial liabilities designated at fair value through profit or loss: | Financial liabilities designated at fair value through profit or loss: | Financial liabilities designated at fair value through profit or loss: | Financial liabilities designated at fair value through profit or loss: | Financial liabilities designated at fair value through profit or loss: |  |  |
|  Derivative-linked securities | W | 8231303 | DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others | Volatility of underlying asset | 1.00 ~ 119.27 | The higher the volatility, the higher the fair value fluctuation |
|  |  |  |  | Correlation coefficient | -60.10 ~ 93.32 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  Derivatives held for trading: |  |  |  |  |  |  |
|  Stock and index |  | 370093 | DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others | Volatility of underlying asset | 0.09 ~ 119.27 | The higher the volatility, the higher the fair value fluctuation |
|  |  |  |  | Correlation coefficient | -60.10 ~ 79.72 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  Others |  | 412978 | DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form | Discount rate | 4.83 ~ 6.85 | The lower the discount rate, the higher the fair value |
|  |  |  |  | Volatility of underlying asset | 8.68 ~ 119.27 | The higher the volatility, the higher the fair value fluctuation |
|  |  |  |  | Correlation coefficient between underlying assets | -50.43 ~ 93.32 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  | W | 9014374 |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Unobservable inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of**<br> **unobservable inputs to fair<br>value** |
| **Financial assets** |  |  |  |  |  |  |
|  Financial assets at fair value through profit or loss: |  |  |  |  |  |  |
|  Due from financial institutions | W | 72016 | MonteCarlo Simulation, Hull-white Model | Volatility of underlying asset | 14.30 ~ 39.66 | The higher the volatility of underlying asset, the higher the fair value fluctuation |
|  |  |  |  | Correlation coefficient | -3.36 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  Debt securities |  | 11555588 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others | Growth rate | 0.00 ~ 2.00 | The higher the growth rate, the higher the fair value |
|  |  |  |  | Volatility | 13.87 ~ 58.39 | The higher the volatility, the higher the fair value fluctuation |
|  |  |  |  | Discount rate | 0.60 ~ 21.37 | The lower the discount rate, the higher the fair value |
|  |  |  |  | Stock price | 18.87 ~ 19.48 | The higher the stock price, the higher the fair value |
|  |  |  |  | Correlation coefficient between underlying assets | -60.35 ~ 100.00 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  |  |  |  | Liquidation value | -1.00 ~ 1.00 | The higher the liquidation value, the higher the fair value |
|  |  |  |  | Recovery rate | 40.00 | The higher the recovery rate, the higher the fair value |
|  |  |  |  | Rate of real estate price fluctuation | -1.00 ~ 1.00 | The higher the sale price of real estate, the higher the fair value |
|  Equity securities |  | 969513 | Income Approach, Market Value Approach, Asset Value Approach, DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Dividend Discount Model, Usage of Past Transactions, Binomial Model, and others | Growth rate | 0.50 ~ 2.00 | The higher the growth rate, the higher the fair value |
|  |  |  |  | Discount rate | 8.80 ~ 24.60 | The lower the discount rate, the higher the fair value |
|  |  |  |  | Stock price | 23.36 ~ 25.49 | The higher the stock price, the higher the fair value |
|  Loans |  | 93930 | DCF Model | Discount rate | 8.21 | The lower the discount rate, the higher the fair value |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Unobservable inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of**<br> **unobservable inputs to fair<br>value** |
| Derivatives held for trading: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock and index | W | 184165 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model | Volatility of<br>underlying asset | 15.07 ~ 80.58 | The higher the volatility, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock and index | W | 184165 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model | Correlation<br>coefficient | -60.35 ~ 88.17 | The higher the correlation coefficient, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock and index | W | 184165 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model | Stock price | -10.00 ~ 10.00 | The higher the stock price, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency, interest rate, and others |  | 25840 | DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form | Volatility | 2.67 ~ 81.32 | The higher the volatility, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency, interest rate, and others |  | 25840 | DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form | Correlation coefficient | -48.31 ~ 90.16 | The higher the correlation coefficient, the higher the fair value fluctuation |
| Financial assets at fair value through other comprehensive income: | Financial assets at fair value through other comprehensive income: | Financial assets at fair value through other comprehensive income: | Financial assets at fair value through other comprehensive income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1434567 | Risk Adjusted Discount Rate Method, IMV Model, DCF Model, Comparable Company Analysis, Dividend Discount Model, Net Asset Value Method, Market Value Approach, Hull-white Model, and others | Growth rate | 0.00 ~ 2.00 | The higher the growth rate, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1434567 | Risk Adjusted Discount Rate Method, IMV Model, DCF Model, Comparable Company Analysis, Dividend Discount Model, Net Asset Value Method, Market Value Approach, Hull-white Model, and others | Discount rate | 8.80 ~ 18.02 | The lower the discount rate, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1434567 | Risk Adjusted Discount Rate Method, IMV Model, DCF Model, Comparable Company Analysis, Dividend Discount Model, Net Asset Value Method, Market Value Approach, Hull-white Model, and others | Volatility | 23.36 ~ 31.65 | The higher the volatility, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 13970 | DCF Model | Discount rate | 2.87 ~ 4.87 | The lower the discount rate, the higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  |  |  |  |  |
|  | W | 14349589 |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Unobservable<br>inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of**<br> **unobservable inputs to fair<br>value** |
| **Financial liabilities** |  |  |  |  |  |  |
|  Financial liabilities designated at fair value through profit or loss: | Financial liabilities designated at fair value through profit or loss: | Financial liabilities designated at fair value through profit or loss: | Financial liabilities designated at fair value through profit or loss: |  |  |  |
|  Derivative-linked securities | W | 7817514 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model | Volatility<br>of<br>underlying<br>asset | 1.00 ~ 81.32 | The higher the volatility, the higher the fair value fluctuation |
|  Derivative-linked securities | W | 7817514 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model | Correlation<br>coefficient<br>between<br>underlying<br>assets | -60.35 ~ 90.16 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  Derivatives held for trading: |  |  |  |  |  |  |
|  Stock and index |  | 92757 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model | Volatility<br>of<br>underlying<br>asset | 15.07 ~ 80.58 | The higher the volatility, the higher the fair value fluctuation |
|  Stock and index |  | 92757 | DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model | Correlation<br>coefficient<br>between<br>underlying<br>assets | -60.35 ~ 88.17 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  Others |  | 81843 | DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form | Discount<br>rate | 1.46 ~ 2.83 | The lower the discount rate, the higher the fair value |
|  Others |  | 81843 | DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form | Volatility<br>of<br>underlying<br>asset | 5.29 ~ 53.57 | The higher the volatility, the higher the fair value fluctuation |
|  Others |  | 81843 | DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form | Correlation<br>coefficient<br>between<br>underlying<br>assets | -48.31 ~ 90.16 | The higher the correlation coefficient, the higher the fair value fluctuation |
|  | W | 7992114 |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. Level 3 financial instruments subject to sensitivity analysis are (a) equity-related derivatives, currency-related derivatives, and interest rate related derivatives whose fair value changes are recognized in profit or loss, (b) financial liabilities designated at fair value through profit or loss, and (c) due from financial institutions, debt securities (including beneficiary certificates), equity securities, and loans whose fair value changes are recognized in profit or loss or other comprehensive income or loss. If the overlay approach is applied in accordance with Korean IFRS No.1104, changes in fair value of financial assets at fair value through profit or loss are recognized in other comprehensive income.

Results of the sensitivity analysis of changes in unobservable inputs as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
|  | **Favorable**<br>**changes** | **Favorable**<br>**changes** | **Unfavorable**<br>**changes** | **Unfavorable**<br>**changes** | **Favorable**<br>**changes** | **Favorable**<br>**changes** | **Unfavorable**<br>**changes** | **Unfavorable**<br>**changes** |
|  **Financial assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: <sup>1</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions | W |  | W |  | W | 221 | W | (247) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities <sup>4</sup> |  | 17392 |  | (17896) |  | 1642 |  | (1869) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>3</sup> |  | 34564 |  | (25586) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>5</sup> |  | 2276 |  | (2055) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>2</sup> |  | 18076 |  | (19034) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>3</sup> |  |  |  |  |  | 179307 |  | (82595) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>6</sup> |  |  |  |  |  |  |  |  |
|  | W | 72308 | W | (64571) | W | 181170 | W | (84711) |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss <sup>1</sup> | W | 94001 | W | (97663) | W |  | W |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>2</sup> |  | 48768 |  | (46427) |  |  |  |  |
|  | W | 142769 | W | (144090) | W |  | W |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.2 Sensitivity analysis of changes in unobservable inputs (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
|  | **Favorable**<br>**changes** | **Favorable**<br>**changes** | **Unfavorable**<br>**changes** | **Unfavorable**<br>**changes** | **Favorable**<br>**changes** | **Favorable**<br>**changes** | **Unfavorable**<br>**changes** | **Unfavorable**<br>**changes** |
|  **Financial assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: <sup>1</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions | W |  | W |  | W | 19 | W | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities <sup>4</sup> |  | 13149 |  | (12562) |  | 1458 |  | (1402) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>3</sup> |  | 11259 |  | (8192) |  | 1049 |  | (813) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>5</sup> |  | 3062 |  | (2742) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>2</sup> |  | 19328 |  | (20005) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>3</sup> |  | 6495 |  | (5145) |  | 95599 |  | (71171) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>6</sup> |  |  |  |  |  | 133 |  | (131) |
|  | W | 53293 | W | (48646) | W | 98258 | W | (73535) |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss <sup>1</sup> | W | 78355 | W | (82797) | W | 78356 | W | (82797) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>2</sup> |  | 31310 |  | (29309) |  | 31114 |  | (29105) |
|  | W | 109665 | W | (112106) | W | 109470 | W | (111902) |

---

<sup>1</sup> For financial instruments at fair value through profit or loss, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate, recovery rate, liquidation value by ±1%p and volatility of underlying asset, growth rate by ±1%p or ±10% and correlation coefficient by ±10%. 

<sup>2</sup> For derivative financial instruments, changes in fair value are calculated by shifting principal unobservable input parameters such as price of underlying asset and volatility by ± 10%. 

<sup>3</sup> For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as correlation between discount rate (-1%p~1%p) and growth rate (0%p~1%p). 

<sup>4</sup> For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting rate of real estate price fluctuation by -1%p~1%p, and for beneficiary certificates whose underlying assets are equity investments, changes in fair value are calculated by shifting principal unobservable input parameters such as liquidation value by -1%p~1%p and discount rate by -1%p~1%p. There is no significant correlation among major unobservable inputs. 

<sup>5</sup> For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate by -1%p~1%p. 

<sup>6</sup> For loans measured at fair value through other comprehensive income, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate and growth rate by ±1%p. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.4 Day one gains or losses

When the Group measures the fair value of OTC derivatives using inputs that are not based on observable market data, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price, and the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. When the fair value of the financial instruments is subsequently determined using observable market inputs, the remaining deferred amount is recognized in profit or loss.

Changes in deferred day one gains or losses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Balance at the beginning of the year | W | 77208 | W | 61393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New transactions |  | 113504 |  | 166443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes during the year |  | (119208) |  | (150628) |
|  Balance at the end of the year | W | 71504 | W | 77208 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.3 Carrying Amount of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortized cost. Carrying amount of financial assets and liabilities by category as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2022** | **December 31, 2022** |
|  | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments at<br>amortized cost** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Derivatives<br>held for<br>hedging** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | W |  | W |  | W |  | W | 32063421 | W |  | W | 32063421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss |  | 64935344 |  |  |  |  |  |  |  |  |  | 64935344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  | 8984171 |  |  |  |  |  |  |  | 461963 |  | 9446134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  |  |  |  |  | 436530502 |  |  |  | 436530502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  |  |  | 55973463 |  | 2326378 |  | 58288734 |  |  |  | 116588575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  |  |  |  |  | 11209350 |  |  |  | 11209350 |
|  | W | 73919515 | W | 55973463 | W | 2326378 | W | 538092007 | W | 461963 | W | 670773326 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments<br>designated at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments<br>designated at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>amortized cost** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Derivatives<br>held for<br>hedging** | **Total** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | W | 2193210 | W | 10078394 | W |  | W |  | W | 12271604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  | 9209537 |  |  |  |  |  | 297172 |  | 9506709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  |  |  |  | 388888452 |  |  |  | 388888452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  |  |  |  |  | 71717366 |  |  |  | 71717366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  |  |  |  | 68698203 |  |  |  | 68698203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  |  |  |  |  | 26705247 |  |  |  | 26705247 |
|  | W | 11402747 | W | 10078394 | W | 556009268 | W | 297172 | W | 577787581 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.3 Carrying Amount of Financial Instruments by Category (cont'd)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2021** | **December 31, 2021** |
|  | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments at<br>amortized cost** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Derivatives<br>held for<br>hedging** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | W |  | W |  | W |  | W | 31009374 | W |  | W | 31009374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss |  | 66005815 |  |  |  |  |  |  |  |  |  | 66005815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  | 3532542 |  |  |  |  |  |  |  | 188828 |  | 3721370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  |  |  |  |  | 417900273 |  |  |  | 417900273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  |  |  | 56573115 |  | 3803128 |  | 44471628 |  |  |  | 104847871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  |  |  |  |  | 10755350 |  |  |  | 10755350 |
|  | W | 69538357 | W | 56573115 | W | 3803128 | W | 504136625 | W | 188828 | W | 634240053 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Financial<br>instruments at<br>fair value<br>through profit or<br>loss** | **Financial<br>instruments at<br>fair value<br>through profit or<br>loss** | **Financial<br>instruments<br>designated at<br>fair value<br>through profit or<br>loss** | **Financial<br>instruments<br>designated at<br>fair value<br>through profit or<br>loss** | **Financial<br>instruments at<br>amortized cost** | **Financial<br>instruments at<br>amortized cost** | **Derivatives held<br>for hedging** | **Derivatives held<br>for hedging** | **Total** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | W | 2939584 | W | 9149396 | W |  | W |  | W | 12088980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  | 3509789 |  |  |  |  |  | 172469 |  | 3682258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  |  |  |  | 372023918 |  |  |  | 372023918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  |  |  |  |  | 56912374 |  |  |  | 56912374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  |  |  |  | 67430188 |  |  |  | 67430188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  |  |  |  |  | 29494402 |  |  |  | 29494402 |
|  | W | 6449373 | W | 9149396 | W | 525860882 | W | 172469 | W | 541632120 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.4 Transfer of Financial Assets

6.4.1 Transferred financial assets that are derecognized in their entirety

The Group transferred loans and other financial assets to companies specialized in asset-backed securitization and derecognized them from the consolidated financial statement, while the maximum exposure to loss (carrying amount) from its continuing involvement and fair value of its continuing involvement of the derecognized financial assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Type of**<br>**continuing<br>involvement** | **Classification of<br>financial**<br> **instruments** | **Carrying amount<br>of continuing<br>involvement** | **Carrying amount<br>of continuing<br>involvement** | **Fair value of<br>continuing<br>involvement** | **Fair value of<br>continuing<br>involvement** |
|  Discovery 2<sup>nd</sup> Securitization Specialty Co., Ltd. | Subordinated bond | Financial assets at fair value through profit or loss | W | 564 | W | 564 |
|  AP 4D ABS Ltd. | Subordinated bond | Financial assets at fair value through profit or loss |  | 541 |  | 541 |
|  |  |  | W | 1105 | W | 1105 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Type of**<br>**continuing<br>involvement** | **Classification of<br>financial**<br> **instruments** | **Carrying amount<br>of continuing<br>involvement** | **Carrying amount<br>of continuing<br>involvement** | **Fair value of<br>continuing<br>involvement** | **Fair value of<br>continuing<br>involvement** |
|  Discovery 2<sup>nd</sup> Securitization Specialty Co., Ltd. | Subordinated bond | Financial assets at fair value through profit or loss | W | 5189 | W | 5189 |
|  AP 4D ABS Ltd. | Subordinated bond | Financial assets at fair value through profit or loss |  | 5463 |  | 5463 |
|  |  |  | W | 10652 | W | 10652 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.4.2 Transferred financial assets that are not derecognized in their entirety

The Group issued securitized debentures using loans as underlying assets. Details of underlying assets and senior debentures in relation to securitization as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Carrying<br>amount of<br>underlying<br>assets** | **Carrying<br>amount of<br>underlying<br>assets** | **Fair value of<br>underlying<br>assets** | **Fair value of<br>underlying<br>assets** | **Carrying<br>amount of<br>senior<br>debentures** | **Carrying<br>amount of<br>senior<br>debentures** | **Fair value of<br>senior<br>debentures** | **Fair value of<br>senior<br>debentures** |
|  KB Kookmin Card 7<sup>th</sup> Securitization Co., Ltd. <sup>1</sup>  | W | 963756 | W | 958207 | W | 641780 | W | 628274 |
|  KB Kookmin Card 8<sup>th</sup> Securitization Co., Ltd. <sup>1</sup>  |  | 556487 |  | 553729 |  | 299878 |  | 285111 |
|  KB Kookmin Card 9<sup>th</sup> Securitization Co., Ltd. <sup>1</sup> |  | 615565 |  | 612543 |  | 349829 |  | 372724 |
|  KB Kookmin Card 10<sup>th</sup> Securitization Co., Ltd. <sup>1</sup>  |  | 1138578 |  | 1132170 |  | 503392 |  | 503644 |
|  KB Auto Fifth Asset Securitization Specialty Co., Ltd. <sup>2</sup> |  | 441080 |  | 429626 |  | 299705 |  | 299705 |
|  | W | 3715466 | W | 3686275 | W | 2094584 | W | 2089458 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Carrying<br>amount of<br>underlying<br>assets** | **Carrying<br>amount of<br>underlying<br>assets** | **Fair value of<br>underlying<br>assets** | **Fair value of<br>underlying<br>assets** | **Carrying<br>amount of<br>senior<br>debentures** | **Carrying<br>amount of<br>senior<br>debentures** | **Fair value of<br>senior<br>debentures** | **Fair value of<br>senior<br>debentures** |
|  KB Kookmin Card 5<sup>th</sup> Securitization Co., Ltd. <sup>1</sup>  | W | 492108 | W | 490113 | W | 299881 | W | 302564 |
|  KB Kookmin Card 6<sup>th</sup> Securitization Co., Ltd. <sup>1</sup>  |  | 726803 |  | 723835 |  | 474000 |  | 474766 |
|  KB Kookmin Card 7<sup>th</sup> Securitization Co., Ltd. <sup>1</sup> |  | 948129 |  | 943689 |  | 598180 |  | 596272 |
|  KB Kookmin Card 8<sup>th</sup> Securitization Co., Ltd. <sup>1</sup>  |  | 545750 |  | 543982 |  | 299844 |  | 306264 |
|  KB Auto Second Asset Securitization Specialty Co., Ltd. <sup>2</sup> |  | 129867 |  | 129385 |  | 59968 |  | 59935 |
|  | W | 2842657 | W | 2831004 | W | 1731873 | W | 1739801 |

---

<sup>1</sup> The Group has an obligation to early redeem the securitized debentures in the event of situations prescribed by the asset securitization contract, such as the remaining balance of the eligible underlying assets in trust-type asset securitization is below the solvency ratio (minimum ratio: 104.5%) of the beneficiary interest in the trust. To avoid such early redemption, the Group entrusts credit card accounts and deposits in addition to the previously entrusted credit card accounts. 

<sup>2</sup> The Group has an obligation to early redeem the securitized debentures in the event of situations prescribed by the asset securitization contract, such as when the trusted assets do not meet the eligibility requirements.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.4.3 Bonds sold under repurchase agreements and loaned securities

The Group continues to recognize the financial assets related to bonds sold under repurchase agreements and securities lending transactions in the consolidated statement of financial position since those transactions are not qualified for derecognition even though the Group transfers the financial assets. Bonds sold under repurchase agreements are sold on the condition that they will be repurchased at a fixed price and loaned securities will be returned at the expiration of the loan period. Thus, the Group retains substantially all the risks and rewards of ownership of the financial assets.

The carrying amount of transferred assets and related liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Carrying amount of<br>transferred assets** | **Carrying amount of<br>transferred assets** | **Carrying amount of<br>related liabilities** | **Carrying amount of<br>related liabilities** |
|  Bonds sold under repurchase agreements \* | W | 11418820 | W | 10610882 |
|  Loaned securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds |  | 1661550 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock |  | 52098 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 94766 |  |  |
|  | W | 13227234 | W | 10610882 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Carrying amount of<br>transferred assets** | **Carrying amount of<br>transferred assets** | **Carrying amount of<br>related liabilities** | **Carrying amount of<br>related liabilities** |
|  Bonds sold under repurchase agreements \* | W | 11273036 | W | 10978971 |
|  Loaned securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds |  | 1035736 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock |  | 253 |  |  |
|  | W | 12309025 | W | 10978971 |

---

\* Bonds sold under repurchase agreements using borrowed securities as collateral amount to W 100,768 million and W 2,050,635 million as of December 31, 2022 and 2021, respectively. 

6.4.4 Purchase commitments of securitized debentures

The Group provided additional credit enhancement, such as purchase commitments, for the underlying assets of subsidiaries established for asset-backed securitization. Details of carrying amounts of the underlying assets and the associated liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won***)** | *(In millions of Korean won***)** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Underlying assets | Financial assets at fair value through profit or loss | W | 324456 | W | 289188 |
|  | Loans measured at amortized cost \* |  | 3050471 |  | 3724204 |
|  |  | W | 3374927 | W | 4013392 |
|  Associated liabilities | Debentures | W | 3222237 | W | 4010436 |

---

\* Before netting of allowance

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.5 Offsetting Financial Assets and Financial Liabilities

The Group enters into International Swaps and Derivatives Association ("ISDA") master netting agreements and other similar arrangements with the Group's OTC derivative and spot exchange counterparties. Similar netting agreements are also entered into with the Group's (a) sales or purchases of bonds under repurchase agreements and (b) securities lending and borrowing transactions, etc. Pursuant to these agreements, in the event of default by one party, contracts are to be terminated and receivables and payables are to be offset. Domestic exchange settlement debits and domestic exchange settlement credits are recognized in its net settlement balance in the consolidated statement of financial position because the Group has the legal right of offset and settles in net amount.

6.5.1 Details of financial assets subject to enforceable master netting agreements or similar arrangements as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2022** | **December 31, 2022** |
|  | **Gross assets** | **Gross assets** | **Gross**<br>**liabilities**<br>**offset** | **Gross**<br>**liabilities**<br>**offset** | **Net amount**<br>**in the**<br>**statement**<br>**of financial<br>position** | **Net amount**<br>**in the**<br>**statement**<br>**of financial<br>position** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** | **Net amount** |
|  | **Gross assets** | **Gross assets** | **Gross**<br>**liabilities**<br>**offset** | **Gross**<br>**liabilities**<br>**offset** | **Net amount**<br>**in the**<br>**statement**<br>**of financial<br>position** | **Net amount**<br>**in the**<br>**statement**<br>**of financial<br>position** | **Financial<br>instruments** | **Financial<br>instruments** | **Cash<br>collateral** | **Cash<br>collateral** | **Net amount** | **Net amount** |
|  Derivatives held for trading and derivative-linked securities | W | 9380420 | W |  | W | 9380420 |  |  |  |  |  |  |
|  Derivatives held for hedging |  | 461964 |  |  |  | 461964 | W | (7710408) | W | (195224) | W | 1936752 |
|  Unsettled spot exchange receivable |  | 3374369 |  |  |  | 3374369 |  | (3360673) |  |  |  | 13696 |
|  Bonds purchased under repurchase agreements |  | 3328657 |  |  |  | 3328657 |  | (3328657) |  |  |  |  |
|  Domestic exchange settlement debits |  | 55491085 |  | (54611238) |  | 879847 |  |  |  |  |  | 879847 |
|  Other financial instruments |  | 2010671 |  | (1912964) |  | 97707 |  | (3169) |  |  |  | 94538 |
|  | W | 74047166 | W | (56524202) | W | 17522964 | W | (14402907) | W | (195224) | W | 2924833 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2021** | **December 31, 2021** |
|  | **Gross assets** | **Gross assets** | **Gross liabilities<br>offset** | **Gross liabilities<br>offset** | **Net amount in<br>the statement of<br>financial<br>position** | **Net amount in<br>the statement of<br>financial<br>position** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** | **Net amount** |
|  | **Gross assets** | **Gross assets** | **Gross liabilities<br>offset** | **Gross liabilities<br>offset** | **Net amount in<br>the statement of<br>financial<br>position** | **Net amount in<br>the statement of<br>financial<br>position** | **Financial<br>instruments** | **Financial<br>instruments** | **Cash<br>collateral** | **Cash<br>collateral** | **Net amount** | **Net amount** |
|  Derivatives held for trading and derivative-linked securities | W | 3673348 | W |  | W | 3673348 |  |  |  |  |  |  |
|  Derivatives held for hedging |  | 188828 |  |  |  | 188828 | W | (2352365) | W | (235749) | W | 1274062 |
|  Unsettled spot exchange receivable |  | 2384503 |  |  |  | 2384503 |  | (2380556) |  |  |  | 3947 |
|  Bonds purchased under repurchase agreements |  | 5955194 |  |  |  | 5955194 |  | (5955194) |  |  |  |  |
|  Domestic exchange settlement debits |  | 43497849 |  | (42482911) |  | 1014938 |  |  |  |  |  | 1014938 |
|  Other financial instruments |  | 2341992 |  | (2327904) |  | 14088 |  | (3209) |  |  |  | 10879 |
|  | W | 58041714 | W | (44810815) | W | 13230899 | W | (10691324) | W | (235749) | W | 2303826 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

6.5.2 Details of financial liabilities subject to enforceable master netting agreements or similar arrangements as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2022** | **December 31, 2022** |
|  | **Gross**<br>**liabilities** | **Gross**<br>**liabilities** | **Gross**<br>**assets offset** | **Gross**<br>**assets offset** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** | **Net amount** |
|  | **Gross**<br>**liabilities** | **Gross**<br>**liabilities** | **Gross**<br>**assets offset** | **Gross**<br>**assets offset** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Financial<br>instruments** | **Financial<br>instruments** | **Cash<br>collateral** | **Cash<br>collateral** | **Net amount** | **Net amount** |
|  Derivatives held for trading and derivative-linked securities | W | 10500353 | W |  | W | 10500353 |  |  |  |  |  |  |
|  Derivatives held for hedging |  | 297173 |  |  |  | 297173 | W | (2302059) | W | (83837) | W | 8411630 |
|  Unsettled spot exchange payable |  | 3374230 |  |  |  | 3374230 |  | (3360673) |  |  |  | 13557 |
|  Bonds sold under repurchase agreements \* |  | 11769694 |  |  |  | 11769694 |  | (11769694) |  |  |  |  |
|  Securities borrowing agreements |  | 2102537 |  |  |  | 2102537 |  | (2102537) |  |  |  |  |
|  Domestic exchange settlement credits |  | 56349727 |  | (54611238) |  | 1738489 |  | (1738489) |  |  |  |  |
|  Other financial instruments |  | 1973123 |  | (1912964) |  | 60159 |  | (3169) |  |  |  | 56990 |
|  | W | 86366837 | W | (56524202) | W | 29842635 | W | (21276621) | W | (83837) | W | 8482177 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2021** | **December 31, 2021** |
|  | **Gross liabilities** | **Gross liabilities** | **Gross**<br>**assets offset** | **Gross**<br>**assets offset** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** | **Net amount** |
|  | **Gross liabilities** | **Gross liabilities** | **Gross**<br>**assets offset** | **Gross**<br>**assets offset** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Net amount in<br>the statement**<br>**of financial<br>position** | **Financial<br>instruments** | **Financial<br>instruments** | **Cash<br>collateral** | **Cash<br>collateral** | **Net amount** | **Net amount** |
|  Derivatives held for trading and derivative-linked securities | W | 4132915 | W |  | W | 4132915 |  |  |  |  |  |  |
|  Derivatives held for hedging |  | 172470 |  |  |  | 172470 | W | (3069591) | W | (75253) | W | 1160541 |
|  Unsettled spot exchange payable |  | 2383399 |  |  |  | 2383399 |  | (2380556) |  |  |  | 2843 |
|  Bonds sold under repurchase agreements \* |  | 14372761 |  |  |  | 14372761 |  | (14372761) |  |  |  |  |
|  Securities borrowing agreements |  | 2826885 |  |  |  | 2826885 |  | (2826885) |  |  |  |  |
|  Domestic exchange settlement credits |  | 47608341 |  | (42482911) |  | 5125430 |  | (5125430) |  |  |  |  |
|  Other financial instruments |  | 2738984 |  | (2327904) |  | 411080 |  | (3209) |  |  |  | 407871 |
|  | W | 74235755 | W | (44810815) | W | 29424940 | W | (27778432) | W | (75253) | W | 1571255 |

---

\* Includes bonds sold under repurchase agreements to customers.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**7. Due from Financial Institutions Measured at Amortized Cost** 

7.1 Details of due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **Financial**<br> **institutions** | **Interest rate (%)**<br>**as of**<br>**December 31,<br>2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea |  | W | 15169704 | W | 15317033 |
|  | Due from banks | Hana Bank and others | 0.00 ~ 6.00 |  | 3606033 |  | 3390521 |
|  | Due from others | NH Investment & Securities Co., Ltd. and others | 0.00 ~ 3.48 |  | 1298879 |  | 686236 |
|  |  |  |  |  | 20074616 |  | 19393790 |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | The Bank of Korea and others | 0.00 ~ 4.00 |  | 5669702 |  | 6329310 |
|  | Time deposits in foreign currencies | Industrial and Commercial Bank of China and others | 0.00 ~ 6.80 |  | 587218 |  | 587782 |
|  | Due from others | Societe Generale (Paris) and others | 0.00 ~ 8.00 |  | 3171975 |  | 2054474 |
|  |  |  |  |  | 9428895 |  | 8971566 |
|  |  |  |  | W | 29503511 | W | 28365356 |

---

\* Before netting of allowance

7.2 Details of restricted due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **Financial**<br> **institutions** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** | **Reasons of restriction** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea | W | 15169704 | W | 15317033 | Bank of Korea Act |
|  | Due from banks | Shinhan Bank and others |  | 522306 |  | 803445 | Net settlement and others |
|  | Due from others | NH Investment & Securities Co., Ltd. and others |  | 1029631 |  | 528642 | Derivatives margin account and others |
|  |  |  |  | 16721641 |  | 16649120 |  |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | Bank of Indonesia and others |  | 2350933 |  | 2262610 | Indonesian law and others |
|  | Time deposits in foreign currencies | Agricultural Bank of China and others |  | 72437 |  | 68588 | Bank Act of the State of New York and others |
|  | Due from others | Societe Generale (Paris) and others |  | 2092656 |  | 1774388 | Derivatives margin account and others |
|  |  |  |  | 4516026 |  | 4105586 |  |
|  |  |  | W | 21237667 | W | 20754706 |  |

---

\* Before netting of allowance

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

7.3 Changes in allowances for credit losses of due from financial institutions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** |
|  | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** |
|  | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Impaired** |
|  Beginning | W | 2969 | W | W |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of credit losses |  | (392) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 166 |  |  |
|  Ending | W | 2743 | W | W |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** |
|  | **12-month<br>expected credit<br>losses** | **12-month<br>expected credit<br>losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 2947 | W | 34 | W | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of credit losses |  | (51) |  | (35) |  | (282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 73 |  | 1 |  |  |
|  Ending | W | 2969 | W |  | W |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**8. Assets Pledged as Collateral** 

8.1 Details of assets pledged as collateral as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| **Assets pledged** | **Pledgee** | **Carrying<br>amount** | **Carrying<br>amount** | **Reasons of pledge** |
|  Due from financial institutions | KEB Hana Bank and others | W | 1263167 | Borrowings from bank and others |
|  Financial assets at fair value through profit or loss | The Korea Securities Depository and others |  | 3841536 | Repurchase agreements |
|  | The Korea Securities Depository and others |  | 7063541 | Securities borrowing transactions |
|  | The Bank of Korea |  | 34071 | Borrowings from the Bank of Korea |
|  | The Bank of Korea |  | 236832 | Settlement risk of the Bank of Korea |
|  | Samsung Futures Inc. and others |  | 1131217 | Derivatives transactions |
|  |  |  | 12307197 |  |
|  Financial assets at fair value through other comprehensive income | MERITZ Securities Co., LTD and others |  | 5625270 | Repurchase agreements |
|  | The Korea Securities Depository and others |  | 1592460 | Securities borrowing transactions |
|  | The Bank of Korea |  | 5495686 | Borrowings from the Bank of Korea |
|  | The Bank of Korea |  | 1782507 | Settlement risk of the Bank of Korea |
|  | Samsung Futures Inc. and others |  | 1121999 | Derivatives transactions |
|  |  |  | 15617922 |  |
|  Securities measured at amortized cost | The Korea Securities Depository and others |  | 2307499 | Repurchase agreements |
|  | The Bank of Korea |  | 4020539 | Borrowings from the Bank of Korea |
|  | The Bank of Korea |  | 5047277 | Settlement risk of the Bank of Korea |
|  | Samsung Futures Inc. and others |  | 327684 | Derivatives transactions |
|  | Korea Exchange and others |  | 896896 | Others |
|  |  |  | 12599895 |  |
|  Loans | Others |  | 12863079 | Covered bond and others |
|  Real estate | LGIM COMMERCIAL LENDING Ltd. and others |  | 834003 | Borrowings from bank and others |
|  |  | W | 55485263 |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

8.1 Details of assets pledged as collateral as of December 31, 2021 and 2020, are as follows: (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| **Assets pledged** | **Pledgee** | **Carrying<br>amount** | **Carrying<br>amount** | **Reasons of pledge** |
|  Due from financial institutions | Shinhan Banks and others | W | 1163138 | Borrowings from bank and others |
|  Financial assets at fair value through profit or loss | The Korea Securities Depository and others |  | 8689639 | Repurchase agreements |
|  | The Korea Securities Depository and others |  | 9294924 | Securities borrowing transactions |
|  | Samsung Futures Inc. and others |  | 1039656 | Derivatives transactions |
|  |  |  | 19024219 |  |
|  Financial assets at fair value through other comprehensive income | The Korea Securities Depository and others |  | 2048029 | Repurchase agreements |
|  | The Korea Securities Depository and others |  | 1523593 | Securities borrowing transactions |
|  | The Bank of Korea |  | 2843426 | Borrowings from the Bank of Korea |
|  | The Bank of Korea |  | 1249049 | Settlement risk of the Bank of Korea |
|  | Samsung Futures Inc. and others |  | 709390 | Derivatives transactions |
|  |  |  | 8373487 |  |
|  Securities measured at amortized cost | The Korea Securities Depository and others |  | 494973 | Repurchase agreements |
|  | The Bank of Korea |  | 4847855 | Borrowings from the Bank of Korea |
|  | The Bank of Korea |  | 3948622 | Settlement risk of the Bank of Korea |
|  | Samsung Futures Inc. and others |  | 144014 | Derivatives transactions |
|  | Others |  | 268767 | Others |
|  |  |  | 9704231 |  |
|  Loans | Others |  | 9659575 | Covered bond and others |
|  Real estate | LGIM COMMERCIAL LENDING Ltd. and others |  | 1598553 | Borrowings from bank and others |
|  |  | W | 49523203 |  |

---

In addition, the Group provided W 4,986,339 million and W 6,165,555 million of debt securities among its borrowed securities and other assets held as collateral to Korea Securities Finance Corporation and others as collateral as of December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

8.2 Fair value of collateral available to sell or repledge, and collateral sold or repledged, regardless of debtor's default as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value of**<br>**collateral held** | **Fair value of**<br>**collateral held** | **Fair value of collateral<br>sold or repledged** | **Total** | **Total** |
|  Securities | W | 3344424 | W | W | 3344424 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value of**<br>**collateral held** | **Fair value of**<br>**collateral held** | **Fair value of collateral<br>sold or repledged** | **Total** | **Total** |
|  Securities | W | 6451850 | W | W | 6451850 |

---

**9. Derivative Financial Instruments and Hedge Accounting** 

The Group's derivative operations focus on addressing the needs of the Group's corporate clients to hedge their risk exposure and hedging the Group's risk exposure that results from such client contracts. The Group also engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Group's own assets and liabilities. In addition, the Group engages in proprietary trading of derivatives within the predetermined transaction limit.

The Group provides and trades a range of derivative financial instruments, including:

• Interest rate swaps relating to interest rate risk in Korean won

• Cross-currency swaps, forwards, and options relating to currency risk

• Stock index options linked with the Korea Composite Stock Price Index ("KOSPI")

In particular, the Group applies fair value hedge accounting using interest rate swaps, currency forwards, and others to hedge the risk of changes in fair value due to the changes in interest rate and foreign exchange rate of structured debentures in Korean won, debentures in foreign currencies, structured deposits in foreign currencies, and others. The Group applies cash flow hedge accounting using interest rate swaps, currency swaps, and others to hedge the risk of changes in cash flows of floating rate debt securities in Korean won, borrowings in foreign currencies, group of loans measured at amortized cost, and others. In addition, the Group applies net investments in foreign operations hedge accounting by designating debentures in foreign currencies and cross currency forwards as hedging instruments to hedge the currency risk of net investments in foreign operations.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.1 Details of derivative financial instruments held for trading as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Notional**<br>**amount** | **Notional**<br>**amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Notional**<br>**amount** | **Notional**<br>**amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** |
|  **Interest rate** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | W | 8261663 | W | 821603 | W | 431002 | W | 4037717 | W | 140126 | W | 126610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures \* |  | 4450505 |  | 765 |  | 256 |  | 6479692 |  | 1903 |  | 2464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 359581194 |  | 859670 |  | 694713 |  | 334721395 |  | 354686 |  | 397046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 10508000 |  | 274596 |  | 272284 |  | 12547000 |  | 176274 |  | 199567 |
|  |  | 382801362 |  | 1956634 |  | 1398255 |  | 357785804 |  | 672989 |  | 725687 |
|  **Currency** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards |  | 115682577 |  | 2813603 |  | 2472119 |  | 105509405 |  | 1296083 |  | 934944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures \* |  | 413960 |  | 36 |  | 2364 |  | 361791 |  | 464 |  | 877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 91646725 |  | 3525458 |  | 4049390 |  | 65028025 |  | 1082873 |  | 1331597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 1852065 |  | 27258 |  | 13025 |  | 1885064 |  | 7643 |  | 11044 |
|  |  | 209595327 |  | 6366355 |  | 6536898 |  | 172784285 |  | 2387063 |  | 2278462 |
|  **Stock and index** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures \* |  | 1828302 |  | 37455 |  | 89624 |  | 1612965 |  | 14338 |  | 6530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 6649735 |  | 377840 |  | 492275 |  | 5207198 |  | 322888 |  | 132619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 7257715 |  | 168311 |  | 359274 |  | 7617703 |  | 95338 |  | 241371 |
|  |  | 15735752 |  | 583606 |  | 941173 |  | 14437866 |  | 432564 |  | 380520 |
|  **Credit** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 3006114 |  | 32860 |  | 17468 |  | 2602382 |  | 18979 |  | 7409 |
|  |  | 3006114 |  | 32860 |  | 17468 |  | 2602382 |  | 18979 |  | 7409 |
|  **Commodity** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures \* |  | 28577 |  | 1970 |  | 941 |  | 6370 |  | 43 |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 131500 |  | 887 |  | 885 |  |  |  |  |  |  |
|  |  | 160077 |  | 2857 |  | 1826 |  | 6370 |  | 43 |  | 82 |
|  **Others** |  | 1003301 |  | 41859 |  | 313917 |  | 1695540 |  | 20904 |  | 117629 |
|  | W | 612301933 | W | 8984171 | W | 9209537 | W | 549312247 | W | 3532542 | W | 3509789 |

---

\* Gains or losses arising from some daily mark-to-market futures are reflected in the margin accounts.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **1 year** | **1 year** | **2 years** | **2 years** | **3 years** | **3 years** | **4 years** | **4 years** | **5 years** | **5 years** | **Over**<br>**5 years** | **Over**<br>**5 years** | **Total** | **Total** |
|  **Fair value hedge** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | W | 5612378 | W | 1921072 | W | 2701675 | W | 1883332 | W | 426551 | W | 2147846 | W | 14692854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%) |  | 4.17 |  | 4.52 |  | 4.64 |  | 4.56 |  | 4.36 |  | 4.64 |  | 4.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (USD/KRW) |  | 1197.01 |  | 1262.56 |  | 1276.70 |  |  |  |  |  |  |  | 1240.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (EUR/KRW) |  | 1363.42 |  | 1373.32 |  |  |  | 1436.86 |  |  |  |  |  | 1387.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (AUD/KRW) |  | 886.23 |  | 895.76 |  |  |  |  |  |  |  |  |  | 890.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (GBP/KRW) |  | 1617.02 |  |  |  | 1535.25 |  |  |  |  |  |  |  | 1537.85 |
|  **Cash flow hedge** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | W | 3033420 | W | 892720 | W | 1846139 | W | 771585 | W | 1078676 | W | 210000 | W | 7832540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%) |  | 2.90 |  | 2.60 |  | 4.42 |  | 4.62 |  | 4.95 |  | 3.99 |  | 3.54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (USD/KRW) |  | 1178.13 |  | 1196.80 |  | 1166.24 |  | 1225.35 |  | 1252.61 |  |  |  | 1202.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (EUR/KRW) |  | 1321.00 |  | 1364.00 |  | 1374.73 |  |  |  |  |  |  |  | 1362.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (AUD/KRW) |  |  |  | 856.40 |  | 851.50 |  |  |  |  |  |  |  | 853.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (SGD/KRW) |  | 866.14 |  |  |  |  |  |  |  |  |  |  |  | 866.14 |
|  **Hedge of net investments in foreign operations** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | W | 65012 | W | 27499 | W |  | W |  | W |  | W |  | W | 92511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (USD/KRW) |  | 1071.00 |  |  |  |  |  |  |  |  |  |  |  | 1071.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (GBP/KRW) |  |  |  | 1465.26 |  |  |  |  |  |  |  |  |  | 1465.26 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **1 year** | **1 year** | **2 years** | **2 years** | **3 years** | **3 years** | **4 years** | **4 years** | **5 years** | **5 years** | **Over**<br>**5 years** | **Over**<br>**5 years** | **Total** | **Total** |
|  **Fair value hedge** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | W | 2223113 | W | 1423760 | W | 967376 | W | 2153200 | W | 1428673 | W | 2419230 | W | 10615352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%) |  | 0.94 |  | 1.23 |  | 1.04 |  | 1.16 |  | 1.06 |  | 1.39 |  | 1.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (USD/KRW) |  | 1144.74 |  | 1154.78 |  | 1169.72 |  |  |  |  |  |  |  | 1150.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (EUR/KRW) |  | 1359.59 |  | 1363.95 |  | 1394.84 |  |  |  | 1458.92 |  |  |  | 1409.23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (AUD/KRW) |  | 859.41 |  |  |  |  |  |  |  |  |  |  |  | 859.41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (GBP/KRW) |  | 1554.65 |  |  |  |  |  | 1620.05 |  |  |  |  |  | 1557.47 |
|  **Cash flow hedge** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | W | 4150546 | W | 1763372 | W | 322735 | W | 641733 | W | 580128 | W | 150000 | W | 7608514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%) |  | 1.01 |  | 1.51 |  | 2.06 |  | 1.87 |  | 1.84 |  | 2.12 |  | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (USD/KRW) |  | 1159.92 |  | 1178.13 |  | 1145.05 |  | 1139.40 |  | 1123.13 |  |  |  | 1152.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (EUR/KRW) |  | 1312.75 |  | 1321.00 |  | 1364.00 |  | 1374.73 |  |  |  |  |  | 1351.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (AUD/KRW) |  |  |  |  |  | 856.40 |  | 851.50 |  |  |  |  |  | 853.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (SGD/KRW) |  |  |  | 866.14 |  |  |  |  |  |  |  |  |  | 866.14 |
|  **Hedge of net investments in foreign operations** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | W | 91636 | W |  | W |  | W |  | W |  | W |  | W | 91636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (USD/KRW) |  | 1071.00 |  |  |  |  |  |  |  |  |  |  |  | 1071.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (GBP/KRW) |  | 1465.26 |  |  |  |  |  |  |  |  |  |  |  | 1465.26 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.3 Fair Value Hedge

9.3.1 Details of fair value hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
|  |  | **Carrying amount** | **Carrying amount** | **Carrying amount** | **Carrying amount** | **Accumulated amount of<br>hedge adjustments** | **Accumulated amount of<br>hedge adjustments** | **Accumulated amount of<br>hedge adjustments** | **Accumulated amount of<br>hedge adjustments** | **Changes in** | **Changes in** |
|  |  | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **fair value** | **fair value** |
|  **Hedge accounting** | **Hedge accounting** |  |  |  |  |  |  |  |  |  |  |
|  **Interest rate** | Debt securities in Korean won | W | 2467171 | W |  | W | (107444) | W |  | W | (86757) |
|  | Debt securities in foreign currencies |  | 3142973 |  |  |  | (232085) |  |  |  | (215183) |
|  | Deposits in foreign currencies |  |  |  | 29429 |  |  |  | (8591) |  | 6976 |
|  | Debentures in Korean won |  |  |  | 5690371 |  |  |  | (249629) |  | 171841 |
|  | Debentures in foreign currencies |  |  |  | 1196781 |  |  |  | (95865) |  | 123817 |
|  |  |  | 5610144 |  | 6916581 |  | (339529) |  | (354085) |  | 694 |
|  **Currency** | Debt securities in foreign currencies |  | 1596049 |  |  |  | 82284 |  |  |  | 151303 |
|  |  |  | 1596049 |  |  |  | 82284 |  |  |  | 151303 |
|  |  | W | 7206193 | W | 6916581 | W | (257245) | W | (354085) | W | 151997 |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
|  |  | **Carrying amount** | **Carrying amount** | **Carrying amount** | **Carrying amount** | **Accumulated amount of<br>hedge adjustments** | **Accumulated amount of<br>hedge adjustments** | **Accumulated amount of<br>hedge adjustments** | **Accumulated amount of<br>hedge adjustments** | **Changes in** | **Changes in** |
|  |  | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **fair value** | **fair value** |
|  **Hedge accounting** | **Hedge accounting** |  |  |  |  |  |  |  |  |  |  |
|  **Interest rate** | Debt securities in Korean won | W | 1627228 | W |  | W | (20272) | W |  | W | (26247) |
|  | Debt securities in foreign currencies |  | 3567662 |  |  |  | (22384) |  |  |  | (71246) |
|  | Deposits in foreign currencies |  |  |  | 93521 |  |  |  | (1319) |  | 3222 |
|  | Debentures in Korean won |  |  |  | 2470123 |  |  |  | (79877) |  | 70308 |
|  | Debentures in foreign currencies |  |  |  | 1154178 |  |  |  | 27953 |  | 45132 |
|  |  |  | 5194890 |  | 3717822 |  | (42656) |  | (53243) |  | 21169 |
|  **Currency** | Debt securities in foreign currencies |  | 2443893 |  |  |  | 133268 |  |  |  | 180676 |
|  |  |  | 2443893 |  |  |  | 133268 |  |  |  | 180676 |
|  |  | W | 7638783 | W | 3717822 | W | 90612 | W | (53243) | W | 201845 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.3.2 Details of derivative instruments designated as fair value hedge as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
|  | **Notional amount** | **Notional amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | W | 13290183 | W | 186258 | W | 104856 | W | (1244) |
|  **Currency** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards |  | 1402671 |  | 36567 |  | 26008 |  | (129451) |
|  | W | 14692854 | W | 222825 | W | 130864 | W | (130695) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
|  | **Notional amount** | **Notional amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | W | 8910139 | W | 127290 | W | 38253 | W | (33227) |
|  **Currency** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards |  | 1705213 |  | 2436 |  | 54855 |  | (174707) |
|  | W | 10615352 | W | 129726 | W | 93108 | W | (207934) |

---

9.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Hedge accounting** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate | W | (550) | W | (12058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  | 21852 |  | 5969 |
|  | W | 21302 | W | (6089) |

---

9.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Gains (losses) on hedging instruments | W | (101281) | W | (187364) |
|  Gains (losses) on hedged items attributable to the hedged risk |  | 122552 |  | 188556 |
|  | W | 21271 | W | 1192 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.4 Cash Flow Hedge

9.4.1 Details of cash flow hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Cash flow hedge reserve** | **Cash flow hedge reserve** | **Cash flow hedge reserve** | **Cash flow hedge reserve** | **Changes in fair value** | **Changes in fair value** | **Changes in fair value** | **Changes in fair value** |
|  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** | **2022** | **2022** | **2021** | **2021** |
|  **Hedge accounting** |  |  |  |  |  |  |  |  |
|  Interest rate risk | W | 46229 | W | 4864 | W | (107134) | W | (36428) |
|  Currency risk |  | (22488) |  | (12597) |  | 14289 |  | 12605 |
|  | W | 23741 | W | (7733) | W | (92845) | W | (23823) |

---

9.4.2 Details of derivative instruments designated as cash flow hedge as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
|  | **Notional amount** | **Notional amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | W | 1079652 | W | 20202 | W | 56753 | W | (36372) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 3231288 |  | 101975 |  | 124 |  | 111902 |
|  **Currency** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 3521600 |  | 116961 |  | 98237 |  | (6379) |
|  | W | 7832540 | W | 239138 | W | 155114 | W | 69151 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
|  | **Notional amount** | **Notional amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | W | 4553250 | W | 12575 | W | 9532 | W | 36164 |
|  **Currency** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 3055264 |  | 46527 |  | 61331 |  | 60327 |
|  | W | 7608514 | W | 59102 | W | 70863 | W | 96491 |

---

9.4.3 Gains or losses on cash flow hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Gains (losses) on hedging instruments: | W | 69151 | W | 96491 |
|  Effective portion of gains (losses) on cash flow hedging instruments (recognized in other comprehensive income or loss) |  | 71692 |  | 95478 |
|  Ineffective portion of gains (losses) on cash flow hedging instruments (recognized in profit or loss) |  | (2541) |  | 1013 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.4.4 Amounts recognized in other comprehensive income (loss) and reclassified from equity to profit or loss related to derivative instruments designated as cash allow hedge for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Other comprehensive income (loss) | W | 71692 | W | 95478 |
|  Reclassification to profit or loss |  | (13288) |  | (53080) |
|  Income tax effect |  | (26930) |  | (21534) |
|  | W | 31474 | W | 20864 |

---

9.5 Hedge of Net Investments in Foreign Operations

9.5.1 Details of net investments in foreign operations hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Foreign currency**<br>**translation reserve** | **Foreign currency**<br>**translation reserve** | **Foreign currency**<br>**translation reserve** | **Foreign currency**<br>**translation reserve** | **Changes in fair value** | **Changes in fair value** | **Changes in fair value** | **Changes in fair value** |
|  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** | **2022** | **2022** | **2021** | **2021** |
|  **Hedge accounting** |  |  |  |  |  |  |  |  |
|  Currency risk | W | (114743) | W | (35658) | W | 104021 | W | 88729 |

---

9.5.2 Details of financial instruments designated as hedge of net investments in foreign operations as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
|  | **Notional**<br>**amount** | **Notional**<br>**amount** | **Assets** | **Liabilities** | **Liabilities** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** |
|  **Currency** |  |  |  |  |  |  |  |
|  Forwards | W | 92511 | W | W | 11194 | W | (16168) |
|  Debentures in foreign currencies |  | 1361080 |  |  | 1361080 |  | (87853) |
|  | W | 1453591 | W | W | 1372274 | W | (104021) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
|  | **Notional**<br>**amount** | **Notional**<br>**amount** | **Assets** | **Liabilities** | **Liabilities** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** |
|  **Currency** |  |  |  |  |  |  |  |
|  Forwards | W | 91636 | W | W | 8498 | W | (8494) |
|  Debentures in foreign currencies |  | 1273227 |  |  | 1273227 |  | (80235) |
|  | W | 1364863 | W | W | 1281725 | W | (88729) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

9.5.3 Fair value of non-derivative financial instruments designated as hedge of net investments in foreign operations as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Debentures in foreign currencies | W | 1211215 | W | 1275291 |

---

9.5.4 Gains or losses on net investments in foreign operations hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Gains (losses) on hedging instruments: | W | (104021) | W | (88729) |
|  Effective portion of gains (losses) on hedge of net investments in foreign operations (recognized in other comprehensive income or loss) |  | (104021) |  | (88729) |
|  Ineffective portion of gains (losses) on hedge of net investments in foreign operations (recognized in profit or loss) |  |  |  |  |

---

9.5.5 Effective portion of gains or losses on net investments in foreign operations hedging instruments recognized in other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Other comprehensive income (loss) | W | (104021) | W | (88729) |
|  Reclassification to profit or loss |  |  |  | 5195 |
|  Income tax effect |  | 24936 |  | 25599 |
|  | W | (79085) | W | (57935) |

---

9.6 Interest Rate Benchmark Reform

The USD LIBOR interest rate will be replaced by the Secured Overnight Financing Rate ("SOFR") based on actual transactions. In the case of KRW, the Korean government bond/monetary stabilization bond RP rate has been finally decided as the Risk-Free Reference Rate ("RFR") and will replace the Certificate of Deposit ("CD") rate in the mid to long-term. Within the corresponding hedging relationship of related significant interest rate benchmark, the Group assumed that the spread to be changed on the RFR basis including SOFR would be similar to that included in the interest rate swap used as a hedging instrument, and no other changes were assumed.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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Details of the Group's exposure to hedging relationships related to the interest rate benchmark reform as of December 31, 2022, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won and millions of US dollars)* |  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| **Interest rate**<br> **benchmark** | **Currency** | **Carrying amount**<br>**of non-derivative<br>assets** | **Carrying amount**<br>**of non-derivative<br>liabilities** | **Notional amount**<br>**of hedging<br>instruments** |
|  CD#3M | KRW | 2760791 | 5690371 | 6440000 |
|  USD#LIBOR#3M | USD | 1895 | 1385 | 3753 |
|  USD#LIBOR#6M | USD | 167 |  | 182 |

---

**10. Loans Measured at Amortized Cost** 

10.1 Details of loans as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Loans measured at amortized cost | W | 440137603 | W | 420910259 |
|  Deferred loan origination fees and costs |  | 551524 |  | 674069 |
|  Less: Allowances for credit losses |  | (4158625) |  | (3684055) |
|  | W | 436530502 | W | 417900273 |

---

10.2 Details of loans to banks as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Loans measured at amortized cost | W | 9751737 | W | 8325177 |
|  Less: Allowances for credit losses |  | (1951) |  | (443) |
|  | W | 9749786 | W | 8324734 |

---

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Retail** | **Retail** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Total** | **Total** |
|  Loans in Korean won | W | 181125018 | W | 177396151 | W |  | W | 358521169 |
|  Loans in foreign currencies |  | 4668207 |  | 26052080 |  |  |  | 30720287 |
|  Domestic import usance bills |  |  |  | 4499072 |  |  |  | 4499072 |
|  Off-shore funding loans |  |  |  | 908266 |  |  |  | 908266 |
|  Call loans |  |  |  | 119066 |  |  |  | 119066 |
|  Bills bought in Korean won |  |  |  | 285727 |  |  |  | 285727 |
|  Bills bought in foreign currencies |  |  |  | 1780873 |  |  |  | 1780873 |
|  Guarantee payments under acceptances and guarantees |  | 1 |  | 18459 |  |  |  | 18460 |
|  Credit card receivables in Korean won |  |  |  |  |  | 22562217 |  | 22562217 |
|  Credit card receivables in foreign currencies |  |  |  |  |  | 47376 |  | 47376 |
|  Bonds purchased under repurchase agreements |  |  |  | 3028657 |  |  |  | 3028657 |
|  Privately placed bonds |  |  |  | 853986 |  |  |  | 853986 |
|  Factored receivables |  | 111 |  | 4 |  |  |  | 115 |
|  Lease receivables |  | 576165 |  | 558318 |  |  |  | 1134483 |
|  Loans for installment credit |  | 5915223 |  | 542413 |  |  |  | 6457636 |
|  |  | 192284725 |  | 216043072 |  | 22609593 |  | 430937390 |
|  Proportion (%) |  | 44.62 |  | 50.13 |  | 5.25 |  | 100.00 |
|  Less: Allowances for credit losses |  | (1335388) |  | (1983444) |  | (837842) |  | (4156674) |
|  | W | 190949337 | W | 214059628 | W | 21771751 | W | 426780716 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Retail** | **Retail** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Total** | **Total** |
|  Loans in Korean won | W | 184872384 | W | 162081901 | W |  | W | 346954285 |
|  Loans in foreign currencies |  | 3990253 |  | 20865495 |  |  |  | 24855748 |
|  Domestic import usance bills |  |  |  | 3311142 |  |  |  | 3311142 |
|  Off-shore funding loans |  |  |  | 1064623 |  |  |  | 1064623 |
|  Call loans |  |  |  | 902301 |  |  |  | 902301 |
|  Bills bought in Korean won |  |  |  | 2209 |  |  |  | 2209 |
|  Bills bought in foreign currencies |  |  |  | 2001046 |  |  |  | 2001046 |
|  Guarantee payments under acceptances and guarantees |  | 7 |  | 20773 |  |  |  | 20780 |
|  Credit card receivables in Korean won |  |  |  |  |  | 20766340 |  | 20766340 |
|  Credit card receivables in foreign currencies |  |  |  |  |  | 57980 |  | 57980 |
|  Bonds purchased under repurchase agreements |  |  |  | 4855194 |  |  |  | 4855194 |
|  Privately placed bonds |  |  |  | 758557 |  |  |  | 758557 |
|  Factored receivables |  | 113 |  | 458 |  |  |  | 571 |
|  Lease receivables |  | 778425 |  | 513714 |  |  |  | 1292139 |
|  Loans for installment credit |  | 6265896 |  | 150340 |  |  |  | 6416236 |
|  |  | 195907078 |  | 196527753 |  | 20824320 |  | 413259151 |
|  Proportion (%) |  | 47.40 |  | 47.56 |  | 5.04 |  | 100.00 |
|  Less: Allowances for credit losses |  | (1004995) |  | (1886473) |  | (792144) |  | (3683612) |
|  | W | 194902083 | W | 194641280 | W | 20032176 | W | 409575539 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Increase** | **Increase** | **Decrease** | **Decrease** | **Others** | **Others** | **Ending** | **Ending** |
|  **Deferred loan origination costs** |  |  |  |  |  |  |  |  |  |  |
|  Loans in Korean won | W | 667904 | W | 291342 | W | (380718) | W |  | W | 578528 |
|  Others <sup>1</sup> |  | 76695 |  | 38913 |  | (47445) |  | 4 |  | 68167 |
|  |  | 744599 |  | 330255 |  | (428163) |  | 4 |  | 646695 |
|  **Deferred loan origination fees** |  |  |  |  |  |  |  |  |  |  |
|  Loans in Korean won |  | 17501 |  | 23780 |  | (13117) |  |  |  | 28164 |
|  Others <sup>2</sup> |  | 53029 |  | 49245 |  | (37730) |  | 2463 |  | 67007 |
|  |  | 70530 |  | 73025 |  | (50847) |  | 2463 |  | 95171 |
|  | W | 674069 | W | 257230 | W | (377316) | W | (2459) | W | 551524 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Increase** | **Increase** | **Decrease** | **Decrease** | **Others** | **Others** | **Ending** | **Ending** |
|  **Deferred loan origination costs** |  |  |  |  |  |  |  |  |  |  |
|  Loans in Korean won | W | 673957 | W | 418732 | W | (424785) | W |  | W | 667904 |
|  Others <sup>1</sup> |  | 95590 |  | 44728 |  | (63619) |  | (4) |  | 76695 |
|  |  | 769547 |  | 463460 |  | (488404) |  | (4) |  | 744599 |
|  **Deferred loan origination fees** |  |  |  |  |  |  |  |  |  |  |
|  Loans in Korean won |  | 9148 |  | 11909 |  | (3556) |  |  |  | 17501 |
|  Others <sup>2</sup> |  | 44072 |  | 32667 |  | (27332) |  | 3622 |  | 53029 |
|  |  | 53220 |  | 44576 |  | (30888) |  | 3622 |  | 70530 |
|  | W | 716327 | W | 418884 | W | (457516) | W | (3626) | W | 674069 |

---

<sup>1</sup> Includes deferred loan origination costs related to credit card receivables, loans for installment credit, and finance lease receivables.

<sup>2</sup> Includes deferred loan origination fees related to loans in foreign currencies executed by PT Bank KB Bukopin Tbk and PRASAC Microfinance Institution Plc.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

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**11. Allowances for Credit Losses** 

11.1 Changes in allowances for credit losses of loans measured at amortized cost for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Retail** | **Retail** | **Retail** | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Credit card** | **Credit card** | **Credit card** |
|  | **12-month<br>expected**<br>**credit losses** | **12-month<br>expected**<br>**credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** |
|  | **12-month<br>expected**<br>**credit losses** | **12-month<br>expected**<br>**credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Non-**<br>**impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 473983 | W | 241871 | W | 289141 | W | 447798 | W | 478154 | W | 960964 | W | 175168 | W | 322649 | W | 294327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  | 129975 |  | (122881) |  | (7094) |  | 127679 |  | (120619) |  | (7060) |  | 57128 |  | (50836) |  | (6292) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  | (102988) |  | 122804 |  | (19816) |  | (93169) |  | 125031 |  | (31862) |  | (23042) |  | 24324 |  | (1282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment |  | (6042) |  | (52137) |  | 58179 |  | (13524) |  | (48220) |  | 61744 |  | (2129) |  | (19219) |  | 21348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  |  |  | (1) |  | (448376) |  |  |  | (3) |  | (617332) |  |  |  |  |  | (450389) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (810) |  | (163) |  | (5689) |  | (103) |  | (145) |  | (70603) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses <sup>1,2</sup> |  | 108300 |  | 94535 |  | 595991 |  | 49789 |  | 126627 |  | 690534 |  | (43497) |  | 77418 |  | 480849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) |  | (1332) |  | (647) |  | (11415) |  | 3701 |  | 1111 |  | (85097) |  | (443) |  | (21) |  | (18219) |
|  Ending | W | 601086 |  | 283381 |  | 450921 |  | 522171 |  | 561936 |  | 901288 |  | 163185 |  | 354315 |  | 320342 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

11.1 Changes in allowances for credit losses of loans measured at amortized cost for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Retail** | **Retail** | **Retail** | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Credit card** | **Credit card** | **Credit card** |
|  | **12-month<br>expected**<br>**credit losses** | **12-month<br>expected**<br>**credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** |
|  | **12-month<br>expected**<br>**credit losses** | **12-month<br>expected**<br>**credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Non-**<br>**impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 403805 | W | 240578 | W | 265705 | W | 368782 | W | 410937 | W | 892061 | W | 205157 | W | 234219 | W | 262119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  | 125634 |  | (120132) |  | (5502) |  | 133798 |  | (71772) |  | (62026) |  | 45938 |  | (44858) |  | (1080) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  | (97040) |  | 115427 |  | (18387) |  | (71902) |  | 92245 |  | (20343) |  | (34208) |  | 35846 |  | (1638) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment |  | (6312) |  | (49244) |  | 55556 |  | (2942) |  | (42158) |  | 45100 |  | (2228) |  | (12580) |  | 14808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  |  |  | 12 |  | (411083) |  |  |  | (3) |  | (239815) |  |  |  |  |  | (440721) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (1112) |  | (53) |  | (3592) |  | (179) |  |  |  | (16257) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses <sup>1,2</sup> |  | 40616 |  | 52528 |  | 397492 |  | 14299 |  | 88230 |  | 338746 |  | (39533) |  | 110022 |  | 474041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business combination |  | 8315 |  | 2223 |  | 7194 |  |  |  |  |  | 1654 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) |  | 77 |  | 532 |  | 1758 |  | 5942 |  | 675 |  | 21844 |  | 42 |  |  |  | (13202) |
|  Ending | W | 473983 | W | 241871 | W | 289141 | W | 447798 | W | 478154 | W | 960964 | W | 175168 | W | 322649 | W | 294327 |

---

<sup>1</sup> Provision for credit losses in the consolidated statements of comprehensive income also includes provision (reversal) for credit losses of due from financial institutions (Note 7.3), provision (reversal) for credit losses of financial investments (Note 12.5), provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note 24.2), provision (reversal) for credit losses of financial guarantee contracts (Note 24.3), and provision (reversal) for credit losses of other financial assets (Note 19.2). 

<sup>2</sup> Includes W 415,998 million and W 387,860 million of collections from written-off loans for the years ended December 31, 2022 and 2021, respectively.

The Group manages the written-off loans that their legal extinctive prescriptions have not been completed, and that have not been collected. The balances of those loans are W 9,830,171 million and W 9,945,130 million as of December 31, 2022 and 2021, respectively.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

11.2 Changes in gross carrying amount of loans for the years ended December 31, 2022 and 2021, are as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 385317491 | W | 32778737 | W | 3488100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  | 34445894 |  | (34282273) |  | (163621) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) |  | (38397090) |  | 38818713 |  | (421623) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) |  | (1127437) |  | (1478968) |  | 2606405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  |  |  | (4) |  | (1516097) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (3182398) |  | (15961) |  | (270541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease)<br> (execution, repayment, and others) |  | 25587528 |  | (1325731) |  | (171997) |
|  Ending | W | 402643988 | W | 34494513 | W | 3550626 |
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 348518780 | W | 28504202 | W | 3427365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  | 31046440 |  | (30615747) |  | (430693) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) |  | (36815970) |  | 37276737 |  | (460767) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) |  | (668120) |  | (1486835) |  | 2154955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  |  |  | 9 |  | (1091619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (2892774) |  | (8541) |  | (151714) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business combination |  | 116067 |  | 3924 |  | 12808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease)<br> (execution, repayment, and others) |  | 46013068 |  | (895012) |  | 27765 |
|  Ending | W | 385317491 | W | 32778737 | W | 3488100 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**12. Financial Assets at Fair Value through Profit or Loss and Financial Investments** 

12.1 Details of financial assets at fair value through profit or loss and financial investments as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Financial assets at fair value through profit or loss** |  |  |  |  |
| &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; Government and public bonds | W | 8405662 | W | 8294084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds |  | 12121116 |  | 16887594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 4289284 |  | 5433010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities |  | 164543 |  | 197865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates |  | 18320226 |  | 15849129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative-linked securities |  | 1713779 |  | 1543188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities |  | 16773117 |  | 14797822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks |  | 1880611 |  | 1804507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other equity securities |  | 613969 |  | 614956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Privately placed bonds |  | 158731 |  | 230006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other loans |  | 334831 |  | 39290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other due from financial institutions |  | 69469 |  | 200742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 90006 |  | 113622 |
|  | W | 64935344 | W | 66005815 |
|  **Financial investments** | **Financial investments** | **Financial investments** | **Financial investments** | **Financial investments** |
|  Financial assets at fair value through other comprehensive income | Financial assets at fair value through other comprehensive income | Financial assets at fair value through other comprehensive income | Financial assets at fair value through other comprehensive income | Financial assets at fair value through other comprehensive income |
| &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; Government and public bonds | W | 15974281 | W | 14317477 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds |  | 20632077 |  | 21928735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 18282144 |  | 18986005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities |  | 436840 |  | 996428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities |  | 284977 |  | 30866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks |  | 1907737 |  | 3588415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity investments |  | 17096 |  | 27211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other equity securities |  | 401545 |  | 187502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Privately placed bonds |  | 363144 |  | 299634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other loans |  |  |  | 13970 |
|  |  | 58299841 |  | 60376243 |
|  Financial assets at amortized cost |  |  |  |  |
| &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; Government and public bonds |  | 23180348 |  | 21447622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds |  | 11325479 |  | 3850954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 15770225 |  | 12246441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities |  | 7654857 |  | 6899675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities |  | 363985 |  | 31105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses |  | (6160) |  | (4169) |
|  |  | 58288734 |  | 44471628 |
|  | W | 116588575 | W | 104847871 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

12.2 Dividend income from equity securities designated at fair value through other comprehensive income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
|  |  | **From the**<br>**equity<br>securities<br>derecognized** | **From the**<br>**equity<br>securities**<br>**held** | **From the**<br>**equity<br>securities**<br>**held** | **From the**<br>**equity securities<br>derecognized** | **From the**<br>**equity securities<br>derecognized** | **From the**<br>**equity securities**<br>**held** | **From the**<br>**equity securities**<br>**held** |
|  Equity securities measured at fair value through other comprehensive income: | Equity securities measured at fair value through other comprehensive income: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | Listed | W | W | 976 | W | 7106 | W | 300 |
|  | Unlisted |  |  | 20658 |  | 372 |  | 19035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity investments |  |  |  |  |  |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other equity securities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other equity securities |  |  | 15041 |  |  |  | 6877 |
|  |  | W | W | 36675 | W | 7478 | W | 26326 |

---

12.3 Derecognized equity securities measured at fair value through other comprehensive income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
|  |  | **Disposal**<br>**price** | **Disposal**<br>**price** | **Accumulated<br>other<br>comprehensive<br>income (loss)**<br>**as of**<br>**disposal date** | **Accumulated<br>other<br>comprehensive<br>income (loss)**<br>**as of**<br>**disposal date** | **Disposal**<br>**price** | **Disposal**<br>**price** | **Accumulated<br>other<br>comprehensive**<br>**income as of**<br>**disposal date** | **Accumulated<br>other<br>comprehensive**<br>**income as of**<br>**disposal date** |
|  Equity securities measured at fair value through other comprehensive income: | Equity securities measured at fair value through other comprehensive income: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | Listed | W | 425736 | W | 335203 | W | 575288 | W | (313427) |
|  | Unlisted |  |  |  |  |  | 5577 |  | 4559 |
|  |  | W | 425736 | W | 335203 | W | 580865 | W | (308868) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Provision** | **Provision** | **Reversal** | **Reversal** | **Total** | **Total** |
|  Securities measured at fair value through other comprehensive income | W | 2009 | W | (4896) | W | (2887) |
|  Loans measured at fair value through other comprehensive income |  | 72 |  | (260) |  | (188) |
|  Securities measured at amortized cost |  | 2808 |  | (828) |  | 1980 |
|  | W | 4889 | W | (5984) | W | (1095) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Provision** | **Provision** | **Reversal** | **Reversal** | **Total** | **Total** |
|  Securities measured at fair value through other comprehensive income | W | 7466 | W | (385) | W | 7081 |
|  Loans measured at fair value through other comprehensive income |  | 237 |  | (15) |  | 222 |
|  Securities measured at amortized cost |  | 1892 |  | (691) |  | 1201 |
|  | W | 9595 | W | (1091) | W | 8504 |

---

12.5 Changes in allowances for credit losses of financial investments for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 16820 | W | 28 | W | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (533) |  | (20) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses |  | (1358) |  | 263 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 255 |  |  |  |  |
|  Ending | W | 15184 | W | 271 | W | 76 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **12-month expected**<br>**credit losses** | **12-month expected**<br>**credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 9908 | W | 39 | W | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  | (1568) |  | (4) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses |  | 8512 |  | (11) |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (32) |  | 4 |  |  |
|  Ending | W | 16820 | W | 28 | W | 76 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**13. Investments in Associates and Joint Ventures** 

13.1 Details of investments in associates and joint ventures as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Ownership<br>(%)** | **Acquisition<br>cost** | **Acquisition<br>cost** | **Share of<br>net asset<br>amount** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund <sup>2</sup> | 66.66 | W | 3601 | W | 5978 | W | 5978 | Investment finance | Korea |
|  Balhae Infrastructure Company <sup>1</sup> | 12.61 |  | 96516 |  | 90653 |  | 90617 | Investment finance | Korea |
|  Aju Good Technology Venture Fund | 38.47 |  | 8143 |  | 19840 |  | 19836 | Investment finance | Korea |
|  SY Auto Capital Co., Ltd. | 49.00 |  | 9800 |  | 20250 |  | 19162 | Auto loans | Korea |
|  Incheon Bridge Co., Ltd. <sup>1</sup> | 14.99 |  | 9158 |  | (15963) |  |  | Operation of<br>highways and<br>related facilities | Korea |
|  Big Dipper Co., Ltd. <sup>1</sup> | 17.86 |  | 440 |  | 60 |  | 60 | Research,<br>consulting, and big<br>data | Korea |
|  Paycoms Co., Ltd. <sup>3</sup> | 12.24 |  | 800 |  | 201 |  | 213 | System software<br>publishing | Korea |
|  Food Factory Co., Ltd. <sup>4</sup> | 22.22 |  | 1000 |  | 696 |  | 1399 | Farm product<br>distribution | Korea |
|  KBSP Private Equity Fund No.4 <sup>1</sup> | 14.95 |  | 6100 |  | 1892 |  | 1892 | Investment finance | Korea |
|  Korea Credit Bureau Co., Ltd. <sup>1</sup> | 9.00 |  | 4500 |  | 4959 |  | 4959 | Credit information | Korea |
|  KB Social Impact Investment Fund | 30.00 |  | 4500 |  | 4266 |  | 4266 | Investment finance | Korea |
|  KB-Solidus Global Healthcare Fund <sup>2</sup> | 43.33 |  | 25927 |  | 21735 |  | 22432 | Investment finance | Korea |
|  POSCO-KB Shipbuilding Fund | 31.25 |  | 1826 |  | 4798 |  | 4798 | Investment finance | Korea |
|  KB-TS Technology Venture Private Equity Fund <sup>2</sup> | 56.00 |  | 9744 |  | 13794 |  | 13794 | Investment finance | Korea |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund <sup>2</sup> | 42.55 |  | 12450 |  | 17801 |  | 17051 | Investment finance | Korea |
|  KB-SJ Tourism Venture Fund <sup>1</sup> | 18.52 |  | 4599 |  | 3773 |  | 3773 | Investment finance | Korea |
|  UNION Media Commerce Fund | 28.99 |  | 1000 |  | 957 |  | 957 | Investment finance | Korea |
|  KB-Stonebridge Secondary Private Equity Fund <sup>1</sup> | 14.56 |  | 23801 |  | 25144 |  | 25144 | Investment finance | Korea |
|  KB SPROTT Renewable Private Equity Fund No.1 <sup>2</sup> | 37.69 |  | 18041 |  | 16539 |  | 16539 | Investment finance | Korea |
|  KB-UTC Inno-Tech Venture Fund <sup>2</sup> | 44.29 |  | 21375 |  | 19180 |  | 19180 | Investment finance | Korea |
|  WJ Private Equity Fund No.1 | 26.95 |  | 10000 |  | 9542 |  | 9542 | Investment finance | Korea |
|  All Together Korea Fund No.2 <sup>5</sup> | 99.99 |  | 10000 |  | 10244 |  | 10244 | Asset management | Korea |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and joint ventures as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Ownership<br>(%)** | **Acquisition<br>cost** | **Acquisition<br>cost** | **Share of net<br>asset<br>amount** | **Share of net<br>asset<br>amount** | **Carrying<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| KB-NAU Special Situation Corporate Restructuring Private Equity Fund <sup>1</sup> | 12.00 | W | 10006 | W | 12554 | W | 12554 | Asset<br>management | Korea |
| December & Company Inc. <sup>1</sup> | 16.78 |  | 29951 |  | 3735 |  | 16029 | Investment<br>finance | Korea |
| 2020 KB Fintech Renaissance Fund <sup>1</sup> | 5.05 |  | 550 |  | 630 |  | 630 | Investment<br>finance | Korea |
| KB Material and Parts No.1 PEF <sup>1</sup> | 14.47 |  | 3400 |  | 3321 |  | 3321 | Investment<br>finance | Korea |
| FineKB Private Equity Fund No.1 | 25.00 |  | 12775 |  | 10483 |  | 10483 | Investment<br>finance | Korea |
| G payment Joint Stock Company | 43.84 |  | 9029 |  | 2917 |  | 9281 | Investment<br>advisory<br>and<br>securities<br>trading | Vietnam |
| KB-GeneN Medical Venture Fund No.1 | 22.52 |  | 2000 |  | 1965 |  | 1965 | Investment<br>finance | Korea |
| KB-BridgePole Venture Investment Fund <sup>1</sup> | 6.30 |  | 850 |  | 835 |  | 835 | Investment<br>finance | Korea |
| KB-Kyobo New Mobility Power Fund | 28.57 |  | 3000 |  | 2826 |  | 2826 | Investment<br>finance | Korea |
| DA-Friend New Technology Investment Fund No.2 | 27.06 |  | 988 |  | 949 |  | 949 | Investment<br>finance | Korea |
| Cornerstone Pentastone Fund No.4 | 21.52 |  | 818 |  | 792 |  | 792 | Investment<br>finance | Korea |
| SKS-VLP New Technology Investment Fund No.2 | 23.11 |  | 1156 |  | 1121 |  | 1121 | Investment<br>finance | Korea |
| Star-Lord General Investors Private Real Estate Investment Company No.10 | 26.24 |  | 46700 |  | 45157 |  |  | Real estate<br>investment | Korea |
| KB-Badgers Future Mobility ESG Fund No.1 | 40.91 |  | 2137 |  | 1475 |  | 1475 | Investment<br>finance | Korea |
| JS Private Equity Fund No.3 | 20.48 |  | 1700 |  | 1664 |  | 1664 | Investment<br>finance | Korea |
| Mirae Asset Mobility Investment Fund No.1 | 22.99 |  | 2000 |  | 1979 |  | 1979 | Investment<br>finance | Korea |
| KB-FT 1st Green Growth Investment Fund <sup>1</sup> | 10.34 |  | 2000 |  | 1970 |  | 1970 | Investment<br>finance | Korea |
| Glenwood Credit Private Equity Fund No.2 | 29.89 |  | 42000 |  | 43468 |  | 43468 | Investment<br>finance | Korea |
| THE CHAEUL FUND NO.1 | 31.25 |  | 1000 |  | 989 |  | 989 | Investment<br>finance | Korea |
| Smart Korea KB Future9-Sejong Venture Fund | 38.46 |  | 2000 |  | 1870 |  | 1870 | Investment<br>finance | Korea |
|  KB-KTB Technology Venture Fund <sup>2</sup> | 50.90 |  | 16800 |  | 16256 |  | 16256 | Investment<br>finance | Korea |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and joint ventures as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Ownership<br>(%)** | **Acquisition<br>cost** | **Acquisition<br>cost** | **Share of net<br>asset<br>amount** | **Share of net<br>asset<br>amount** | **Carrying<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| KB-SOLIDUS Healthcare Investment Fund <sup>2</sup> | 88.23 | W | 19800 | W | 18651 | W | 18651 | Investment<br>finance | Korea |
| Paramark KB Fund No.1 | 17.34 |  | 12199 |  | 10966 |  | 10966 | Investment<br>finance | Korea |
| KB Co-Investment Private Equity Fund No.1 <sup>1</sup> | 7.12 |  | 7268 |  | 7269 |  | 7233 | Investment<br>finance | Korea |
| POSITIVE Sobujang Venture Fund No.1 | 43.96 |  | 2000 |  | 1977 |  | 1977 | Investment<br>finance | Korea |
| History 2022 Fintech Fund | 34.78 |  | 2000 |  | 1981 |  | 1981 | Investment<br>finance | Korea |
| PEBBLES-MW M.C.E New Technology Investment Fund 1st | 23.26 |  | 2000 |  | 1982 |  | 1982 | Investment<br>finance | Korea |
| KB-NP Green ESG New Technology Venture Capital Fund | 29.85 |  | 9350 |  | 9043 |  | 9043 | Investment<br>finance | Korea |
| TMAP Mobility Co., Ltd. <sup>1</sup> | 8.25 |  | 200000 |  | 61518 |  | 194455 | Application<br>software<br>development<br>and supply | Korea |
| Nextrade Co., Ltd. <sup>1</sup> | 6.64 |  | 9700 |  | 9700 |  | 9700 | Investment<br>finance | Korea |
| Shinhan Global Mobility Fund1 | 24.56 |  | 1345 |  | 1345 |  | 1345 | Investment<br>finance | Korea |
| SKB Next Unicorn K-Battery Fund No.1 | 24.84 |  | 1995 |  | 1995 |  | 1995 | Investment<br>finance | Korea |
| Others |  |  | 2029 |  | (741) |  | 1049 |  |  |
|  |  | W | 743867 | W | 558981 | W | 682670 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and joint ventures as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Ownership<br>(%)** | **Acquisition<br>cost** | **Acquisition<br>cost** | **Share of net<br>asset<br>amount** | **Share of net<br>asset<br>amount** | **Carrying<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| KB Pre IPO Secondary Venture Fund No.1 <sup>1</sup> | 15.19 | W | 259 | W | 1622 | W | 1622 | Investment<br>finance | Korea |
| KB-KDBC Pre-IPO New Technology Business Investment Fund <sup>2</sup> | 66.66 |  | 8801 |  | 11789 |  | 11789 | Investment<br>finance | Korea |
| KB Star Office Private Real Estate Master Fund No.1 | 21.05 |  | 20000 |  | 26240 |  | 26240 | Investment<br>finance | Korea |
| Balhae Infrastructure Company <sup>1</sup> | 12.61 |  | 105924 |  | 99785 |  | 99785 | Investment<br>finance | Korea |
| Aju Good Technology Venture Fund | 38.46 |  | 12343 |  | 22921 |  | 22921 | Investment<br>finance | Korea |
| SY Auto Capital Co., Ltd. | 49.00 |  | 9800 |  | 19835 |  | 18222 | Auto loans | Korea |
| Incheon Bridge Co., Ltd. <sup>1</sup> | 14.99 |  | 9158 |  | (19481) |  |  | Operation<br>of<br>highways<br>and related<br>facilities | Korea |
| Big Dipper Co., Ltd. <sup>1</sup> | 25.14 |  | 440 |  | (147) |  |  | Research,<br>consulting,<br>and big<br>data | Korea |
| Paycoms Co., Ltd. <sup>3</sup> | 11.05 |  | 800 |  | 181 |  | 525 | System<br>software<br>publishing | Korea |
| Food Factory Co., Ltd. <sup>4</sup> | 22.22 |  | 1000 |  | 633 |  | 1320 | Farm<br>product<br>distribution | Korea |
| KBSP Private Equity Fund No.4 <sup>1</sup> | 14.95 |  | 6100 |  | 5628 |  | 5628 | Investment<br>finance | Korea |
| Korea Credit Bureau Co., Ltd. <sup>1</sup> | 9.00 |  | 4500 |  | 4497 |  | 4497 | Credit<br>information | Korea |
| KB Social Impact Investment Fund | 30.00 |  | 4500 |  | 4282 |  | 4282 | Investment<br>finance | Korea |
| KB-Solidus Global Healthcare Fund <sup>2</sup> | 43.33 |  | 45557 |  | 48201 |  | 48898 | Investment<br>finance | Korea |
| POSCO-KB Shipbuilding Fund | 31.25 |  | 2776 |  | 5413 |  | 5413 | Investment<br>finance | Korea |
| KB-TS Technology Venture Private Equity Fund <sup>2</sup> | 56.00 |  | 14280 |  | 16828 |  | 16828 | Investment<br>finance | Korea |
| KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund <sup>2</sup> | 42.55 |  | 25250 |  | 29669 |  | 28919 | Investment<br>finance | Korea |
| KB-SJ Tourism Venture Fund <sup>1</sup> | 18.52 |  | 4999 |  | 4146 |  | 4146 | Investment<br>finance | Korea |
| UNION Media Commerce Fund | 28.99 |  | 1000 |  | 959 |  | 959 | Investment<br>finance | Korea |
| KB-Stonebridge Secondary Private Equity Fund <sup>1</sup> | 14.56 |  | 21641 |  | 21948 |  | 21948 | Investment<br>finance | Korea |
| KB SPROTT Renewable Private Equity Fund No.1 <sup>2</sup> | 37.69 |  | 5795 |  | 4680 |  | 4680 | Investment<br>finance | Korea |
|  KB-UTC Inno-Tech Venture Fund <sup>2</sup> | 44.29 |  | 21375 |  | 20972 |  | 20972 | Investment<br>finance | Korea |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and joint ventures as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Ownership<br>(%)** | **Acquisition<br>cost** | **Acquisition<br>cost** | **Share of net<br>asset<br>amount** | **Share of net<br>asset<br>amount** | **Carrying<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| WJ Private Equity Fund No.1 | 26.95 | W | 10000 | W | 9604 | W | 9604 | Investment<br>finance | Korea |
| All Together Korea Fund No.2 <sup>5</sup> | 99.99 |  | 10000 |  | 10070 |  | 10070 | Asset<br>management | Korea |
| KB-NAU Special Situation Corporate Restructuring Private Equity Fund <sup>1</sup> | 12.00 |  | 13392 |  | 15254 |  | 15254 | Asset<br>management | Korea |
| Project Vanilla Co., Ltd. | 49.00 |  | 2450 |  | 525 |  | 525 | Investment<br>finance | Korea |
| December & Company Inc. <sup>1</sup> | 16.78 |  | 25330 |  | 9054 |  | 21388 | Investment<br>finance | Korea |
| 2020 KB Fintech Renaissance Fund <sup>1</sup> | 5.05 |  | 550 |  | 618 |  | 618 | Investment<br>finance | Korea |
| KB Material and Parts No.1 PEF <sup>1</sup> | 14.47 |  | 3400 |  | 3343 |  | 3343 | Investment<br>finance | Korea |
| FineKB Private Equity Fund No.1 | 25.00 |  | 8375 |  | 8067 |  | 8067 | Investment<br>finance | Korea |
| KB Bio Private Equity No.3 Ltd. <sup>1</sup> | 12.20 |  | 10000 |  | 9950 |  | 9950 | Investment<br>finance | Korea |
| G payment Joint Stock Company | 43.84 |  | 9029 |  | 3175 |  | 9350 | Investment<br>advisory<br>and<br>securities<br>trading | Vietnam |
| 498 Seventh Owners LLC <sup>6</sup> | 49.90 |  | 166851 |  |  |  |  | Real estate<br>investment | United<br>States |
| Smart Korea KB Future9-Sejong Venture Fund | 38.46 |  | 1000 |  | 962 |  | 962 | Investment<br>finance | Korea |
| KB-KTB Technology Venture Fund <sup>2</sup> | 50.50 |  | 5600 |  | 5503 |  | 5554 | Investment<br>finance | Korea |
| KB-SOLIDUS Healthcare Investment Fund <sup>2</sup> | 88.23 |  | 1800 |  | 1800 |  | 1800 | Investment<br>finance | Korea |
| Paramark KB Fund No.1 | 20.69 |  | 2040 |  | 1850 |  | 1850 | Investment<br>finance | Korea |
| Others |  |  | 2475 |  | 81 |  | 789 |  |  |
|  |  | W | 598590 | W | 410457 | W | 448718 |  |  |

---

<sup>1</sup> As of December 31, 2022 and 2021, the Group can exercise significant influence on the decision-making processes of the associate's financial and business policies through participation in governing bodies.

<sup>2</sup> In order to direct relevant activities, it is necessary to obtain the consent of the two co-operative members; the Group has applied the equity method as the Group cannot control the investee by itself.

<sup>3</sup> The ownership of Paycoms Co., Ltd. would be 21.68% and 21.84% as of December 31, 2022 and 2021, respectively, considering the potential voting rights of convertible bonds. 

<sup>4</sup> The ownership of Food Factory Co., Ltd. would be 30.00% and 30.00% as of December 31, 2022 and 2021, respectively, considering the potential voting rights of convertible bonds. 

<sup>5</sup> As of December 31, 2022 and 2021, the Group participates in the investment management committee but cannot exercise control.

<sup>6</sup> The investment was classified as assets of a disposal group held for sale as of December 31, 2021.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and joint ventures as of December 31, 2022 and 2021, are as follows: (cont'd)

In accordance with Korean IFRS No.1028 *Investments in Associates and Joint Ventures*, the Group elected an exemption from applying the equity method for 46 companies including Banksalad Co., Ltd. and classified them as financial assets at fair value through profit or loss.

Although the Group holds 20% or more of the ownership, investment trusts with limited influence on related activities according to trust contracts, and companies with limited influence on related activities due to bankruptcy and corporate rehabilitation proceedings are excluded from associates.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** |
|  | **Total**<br>**assets** | **Total**<br>**assets** | **Total<br>liabilities** | **Total<br>liabilities** | **Paid-in<br>capital** | **Paid-in<br>capital** | **Equity** | **Equity** | **Share of**<br>**net asset<br>amount** | **Share of**<br>**net asset<br>amount** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Consolidated<br>carrying**<br>**amount** | **Consolidated<br>carrying**<br>**amount** |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | W | 9226 | W | 260 | W | 5400 | W | 8966 | W | 5978 | W |  | W | 5978 |
|  Balhae Infrastructure Company |  | 781317 |  | 62422 |  | 765686 |  | 718895 |  | 90653 |  | (36) |  | 90617 |
|  Aju Good Technology Venture Fund |  | 58749 |  | 7171 |  | 21180 |  | 51578 |  | 19840 |  | (4) |  | 19836 |
|  SY Auto Capital Co., Ltd. |  | 85077 |  | 43749 |  | 20000 |  | 41328 |  | 20250 |  | (1088) |  | 19162 |
|  Incheon Bridge Co., Ltd. |  | 554738 |  | 661227 |  | 61096 |  | (106489) |  | (15963) |  | 15963 |  |  |
|  Big Dipper Co., Ltd. |  | 642 |  | 308 |  | 493 |  | 334 |  | 60 |  |  |  | 60 |
|  Paycoms Co., Ltd. |  | 3781 |  | 2032 |  | 926 |  | 1749 |  | 201 |  | 12 |  | 213 |
|  Food Factory Co., Ltd. |  | 8599 |  | 5468 |  | 450 |  | 3131 |  | 696 |  | 703 |  | 1399 |
|  KBSP Private Equity Fund No.4 |  | 13432 |  | 776 |  | 40800 |  | 12656 |  | 1892 |  |  |  | 1892 |
|  Korea Credit Bureau Co., Ltd. |  | 155165 |  | 100065 |  | 10000 |  | 55100 |  | 4959 |  |  |  | 4959 |
|  KB Social Impact Investment Fund |  | 14658 |  | 439 |  | 15000 |  | 14219 |  | 4266 |  |  |  | 4266 |
|  KB-Solidus Global Healthcare Fund |  | 50796 |  | 639 |  | 23100 |  | 50157 |  | 21735 |  | 697 |  | 22432 |
|  POSCO-KB Shipbuilding Fund |  | 15675 |  | 321 |  | 5840 |  | 15354 |  | 4798 |  |  |  | 4798 |
|  KB-TS Technology Venture Private Equity Fund |  | 30346 |  | 5714 |  | 17400 |  | 24632 |  | 13794 |  |  |  | 13794 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 42538 |  | 705 |  | 31020 |  | 41833 |  | 17801 |  | (750) |  | 17051 |
|  KB-SJ Tourism Venture Fund |  | 20926 |  | 551 |  | 24840 |  | 20375 |  | 3773 |  |  |  | 3773 |
|  UNION Media Commerce Fund |  | 3319 |  | 18 |  | 3450 |  | 3301 |  | 957 |  |  |  | 957 |
|  KB-Stonebridge Secondary Private Equity Fund |  | 172979 |  | 349 |  | 163413 |  | 172630 |  | 25144 |  |  |  | 25144 |
|  KB SPROTT Renewable Private Equity Fund No.1 |  | 44880 |  | 996 |  | 47868 |  | 43884 |  | 16539 |  |  |  | 16539 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** |
|  | **Total**<br>**assets** | **Total**<br>**assets** | **Total<br>liabilities** | **Total<br>liabilities** | **Paid-in<br>capital** | **Paid-in<br>capital** | **Equity** | **Equity** | **Share of<br>net asset<br>amount** | **Share of<br>net asset<br>amount** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Consolidated<br>carrying**<br>**amount** | **Consolidated<br>carrying**<br>**amount** |
|  KB-UTC Inno-Tech Venture Fund | W | 44111 | W | 809 | W | 48260 | W | 43302 | W | 19180 | W |  | W | 19180 |
|  WJ Private Equity Fund No.1 |  | 35561 |  | 161 |  | 37100 |  | 35400 |  | 9542 |  |  |  | 9542 |
|  All Together Korea Fund No.2 |  | 10246 |  | 1 |  | 10001 |  | 10245 |  | 10244 |  |  |  | 10244 |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund |  | 102827 |  | 498 |  | 81100 |  | 102329 |  | 12554 |  |  |  | 12554 |
|  December & Company Inc. |  | 35602 |  | 13271 |  | 37367 |  | 22331 |  | 3735 |  | 12294 |  | 16029 |
|  2020 KB Fintech Renaissance Fund |  | 12529 |  | 38 |  | 10900 |  | 12491 |  | 630 |  |  |  | 630 |
|  KB Material and Parts No.1 PEF |  | 22953 |  | 2 |  | 23500 |  | 22951 |  | 3321 |  |  |  | 3321 |
|  FineKB Private Equity Fund No.1 |  | 43759 |  | 1828 |  | 51100 |  | 41931 |  | 10483 |  |  |  | 10483 |
|  G payment Joint Stock Company |  | 10177 |  | 3523 |  | 2950 |  | 6654 |  | 2917 |  | 6364 |  | 9281 |
|  KB-GeneN Medical Venture Fund No.1 |  | 8770 |  | 48 |  | 8880 |  | 8722 |  | 1965 |  |  |  | 1965 |
|  KB-BridgePole Venture Investment Fund |  | 13331 |  | 73 |  | 13500 |  | 13258 |  | 835 |  |  |  | 835 |
|  KB-Kyobo New Mobility Power Fund |  | 9932 |  | 40 |  | 10500 |  | 9892 |  | 2826 |  |  |  | 2826 |
|  DA-Friend New Technology Investment Fund No.2 |  | 3527 |  | 21 |  | 3650 |  | 3506 |  | 949 |  |  |  | 949 |
|  Cornerstone Pentastone Fund No.4 |  | 3704 |  | 23 |  | 3800 |  | 3681 |  | 792 |  |  |  | 792 |
|  SKS-VLP New Technology Investment Fund No.2 |  | 4855 |  | 2 |  | 5001 |  | 4853 |  | 1121 |  |  |  | 1121 |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 |  | 585401 |  | 413283 |  | 178000 |  | 172118 |  | 45157 |  | (45157) |  |  |
|  KB-Badgers Future Mobility ESG Fund No.1 |  | 3607 |  |  |  | 5225 |  | 3607 |  | 1475 |  |  |  | 1475 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** |
|  | **Total**<br>**assets** | **Total**<br>**assets** | **Total<br>liabilities** | **Total<br>liabilities** | **Paid-in<br>capital** | **Paid-in<br>capital** | **Equity** | **Equity** | **Share of<br>net asset<br>amount** | **Share of<br>net asset<br>amount** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Consolidated<br>carrying**<br>**amount** | **Consolidated<br>carrying**<br>**amount** |
|  JS Private Equity Fund No.3 | W | 8126 | W | 1 | W | 8300 | W | 8125 | W | 1664 | W |  | W | 1664 |
|  Mirae Asset Mobility Investment Fund No.1 |  | 8683 |  | 73 |  | 8700 |  | 8610 |  | 1979 |  |  |  | 1979 |
|  KB-FT 1st Green Growth Investment Fund 1 |  | 19051 |  |  |  | 19345 |  | 19051 |  | 1970 |  |  |  | 1970 |
|  Glenwood Credit Private Equity Fund No.2 |  | 145787 |  | 376 |  | 140500 |  | 145411 |  | 43468 |  |  |  | 43468 |
|  THE CHAEUL FUND NO.1 |  | 3166 |  |  |  | 3200 |  | 3166 |  | 989 |  |  |  | 989 |
|  Smart Korea KB Future9-Sejong Venture Fund |  | 4862 |  |  |  | 5200 |  | 4862 |  | 1870 |  |  |  | 1870 |
|  KB-KTB Technology Venture Fund |  | 32214 |  | 280 |  | 33000 |  | 31934 |  | 16256 |  |  |  | 16256 |
|  KB-SOLIDUS Healthcare Investment Fund |  | 21483 |  | 345 |  | 22440 |  | 21138 |  | 18651 |  |  |  | 18651 |
|  Paramark KB Fund No.1 |  | 63260 |  | 22 |  | 70169 |  | 63238 |  | 10966 |  |  |  | 10966 |
|  KB Co-Investment Private Equity Fund No.1 |  | 101771 |  | 198 |  | 102067 |  | 101573 |  | 7269 |  | (36) |  | 7233 |
|  POSITIVE Sobujang Venture Fund No.1 |  | 4521 |  | 23 |  | 4550 |  | 4498 |  | 1977 |  |  |  | 1977 |
|  History 2022 Fintech Fund |  | 5695 |  |  |  | 5750 |  | 5695 |  | 1981 |  |  |  | 1981 |
|  PEBBLES-MW M.C.E New Technology Investment Fund 1<sup>st</sup> |  | 8562 |  | 40 |  | 8600 |  | 8522 |  | 1982 |  |  |  | 1982 |
|  KB-NP Green ESG New Technology Venture Capital Fund |  | 31838 |  | 638 |  | 32260 |  | 31200 |  | 9043 |  |  |  | 9043 |
|  TMAP Mobility Co., Ltd. |  | 920597 |  | 174696 |  | 8677 |  | 745901 |  | 61518 |  | 132937 |  | 194455 |
|  Nextrade Co., Ltd. |  | 146100 |  |  |  | 146100 |  | 146100 |  | 9700 |  |  |  | 9700 |
|  Shinhan Global Mobility Fund1 |  | 5474 |  |  |  | 5700 |  | 5474 |  | 1345 |  |  |  | 1345 |
|  SKB Next Unicorn K-Battery Fund No.1 |  | 5705 |  | 14 |  | 5691 |  | 5691 |  | 1995 |  |  |  | 1995 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** |
|  | **Operating**<br>**revenue** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Net profit**<br>**(loss)** | **Other**<br>**comprehensive**<br>**income (loss)** | **Other**<br>**comprehensive**<br>**income (loss)** | **Total**<br>**comprehensive**<br>**income (loss)** | **Total**<br>**comprehensive**<br>**income (loss)** | **Dividends** | **Dividends** |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | W | 1699 | W | (917) | W |  | W | (917) | W |  |
|  Balhae Infrastructure Company |  | 100720 |  | 133964 |  |  |  | 133964 |  | 16646 |
|  Aju Good Technology Venture Fund |  | 22381 |  | 6018 |  |  |  | 6018 |  | 1200 |
|  SY Auto Capital Co., Ltd. |  | 11569 |  | 474 |  | 374 |  | 848 |  |  |
|  Incheon Bridge Co., Ltd. |  | 130456 |  | 23754 |  |  |  | 23754 |  |  |
|  Big Dipper Co., Ltd. |  | 834 |  | (672) |  |  |  | (672) |  |  |
|  Paycoms Co., Ltd. |  | 1266 |  | 399 |  |  |  | 399 |  |  |
|  Food Factory Co., Ltd. |  | 9059 |  | 605 |  |  |  | 605 |  |  |
|  KBSP Private Equity Fund No.4 |  | 6 |  | (24985) |  |  |  | (24985) |  |  |
|  Korea Credit Bureau Co., Ltd. |  | 144906 |  | 13809 |  |  |  | 13809 |  |  |
|  KB Social Impact Investment Fund |  | 240 |  | (55) |  |  |  | (55) |  |  |
|  KB-Solidus Global Healthcare Fund |  | 2952 |  | (15775) |  |  |  | (15775) |  |  |
|  POSCO-KB Shipbuilding Fund |  | 1721 |  | 1072 |  |  |  | 1072 |  |  |
|  KB-TS Technology Venture Private Equity Fund |  | 1043 |  | 2682 |  |  |  | 2682 |  |  |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 11851 |  | 1541 |  |  |  | 1541 |  |  |
|  KB-SJ Tourism Venture Fund |  | 719 |  | 145 |  |  |  | 145 |  |  |
|  UNION Media Commerce Fund |  |  |  | (8) |  |  |  | (8) |  |  |
|  KB-Stonebridge Secondary Private Equity Fund |  | 22445 |  | 20887 |  |  |  | 20887 |  | 2006 |
|  KB SPROTT Renewable Private Equity Fund No.1 |  |  |  | (1020) |  |  |  | (1020) |  |  |
|  KB-UTC Inno-Tech Venture Fund |  |  |  | (905) |  | (1647) |  | (2552) |  |  |
|  WJ Private Equity Fund No.1 |  | 430 |  | (229) |  |  |  | (229) |  |  |
|  All Together Korea Fund No.2 |  | 179 |  | 173 |  |  |  | 173 |  |  |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund |  | 21470 |  | 5713 |  |  |  | 5713 |  |  |
|  December & Company Inc. |  | 868 |  | (32002) |  |  |  | (32002) |  |  |
|  2020 KB Fintech Renaissance Fund |  | 395 |  | 243 |  |  |  | 243 |  |  |
|  KB Material and Parts No.1 PEF |  | 451 |  | 83 |  |  |  | 83 |  | 34 |
|  FineKB Private Equity Fund No.1 |  | 14244 |  | (7938) |  |  |  | (7938) |  |  |
|  G payment Joint Stock Company |  | 3401 |  | (831) |  |  |  | (831) |  |  |
|  KB-GeneN Medical Venture Fund No.1 |  | 1 |  | (158) |  |  |  | (158) |  |  |
|  KB-BridgePole Venture Investment Fund |  | 4 |  | (242) |  |  |  | (242) |  |  |
|  KB-Kyobo New Mobility Power Fund |  | 2 |  | (608) |  |  |  | (608) |  |  |
|  DA-Friend New Technology Investment Fund No.2 |  |  |  | (144) |  |  |  | (144) |  |  |
|  Cornerstone Pentastone Fund No.4 |  |  |  | (119) |  |  |  | (119) |  |  |
|  SKS-VLP New Technology Investment Fund No.2 |  | 1 |  | (148) |  |  |  | (148) |  |  |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 |  | 16792 |  | (4254) |  |  |  | (4254) |  |  |
|  KB-Badgers Future Mobility ESG Fund No.1 |  |  |  | (1618) |  |  |  | (1618) |  |  |
|  JS Private Equity Fund No.3 |  |  |  | (175) |  |  |  | (175) |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** |
|  | **Operating**<br>**revenue** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Net profit**<br>**(loss)** | **Other**<br>**comprehensive**<br>**income (loss)** | **Total**<br>**comprehensive**<br>**income (loss)** | **Total**<br>**comprehensive**<br>**income (loss)** | **Dividends** |
|  Mirae Asset Mobility Investment Fund No.1 | W | 9 | W | (90) | W | W | (90) | W |
|  KB-FT 1st Green Growth Investment Fund 1 |  | 5 |  | (294) |  |  | (294) |  |
|  Glenwood Credit Private Equity Fund No.2 |  | 5286 |  | 4911 |  |  | 4911 |  |
|  THE CHAEUL FUND NO.1 |  |  |  | (34) |  |  | (34) |  |
|  Smart Korea KB Future9-Sejong Venture Fund |  | 13 |  | (236) |  |  | (236) |  |
|  KB-KTB Technology Venture Fund |  | 134 |  | (973) |  |  | (973) |  |
|  KB-SOLIDUS Healthcare Investment Fund |  | 14 |  | (1302) |  |  | (1302) |  |
|  Paramark KB Fund No.1 |  | 581 |  | (6010) |  |  | (6010) |  |
|  KB Co-Investment Private Equity Fund No.1 |  | 14 |  | (494) |  |  | (494) |  |
|  POSITIVE Sobujang Venture Fund No.1 |  | 1 |  | (52) |  |  | (52) |  |
|  History 2022 Fintech Fund |  |  |  | (55) |  |  | (55) |  |
|  PEBBLES-MW M.C.E New Technology Investment Fund 1<sup>st</sup> |  |  |  | (78) |  |  | (78) |  |
|  KB-NP Green ESG New Technology Venture Capital Fund |  | 19 |  | (1059) |  |  | (1059) |  |
|  TMAP Mobility Co., Ltd. |  | 139792 |  | (132476) |  |  | (132476) |  |
|  Nextrade Co., Ltd. |  |  |  |  |  |  |  |  |
|  Shinhan Global Mobility Fund1 |  |  |  | (226) |  |  | (226) |  |
|  SKB Next Unicorn K-Battery Fund No.1 |  | 1 |  |  |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(***In millions of Korean won)* | **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 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** |
|  | **Total**<br>**assets** | **Total**<br>**assets** | **Total<br>liabilities** | **Total<br>liabilities** | **Paid-in<br>capital** | **Paid-in<br>capital** | **Equity** | **Equity** | **Share of**<br>**net asset<br>amount** | **Share of**<br>**net asset<br>amount** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Consolidated<br>carrying**<br>**amount** | **Consolidated<br>carrying**<br>**amount** |
|  KB Pre IPO Secondary Venture Fund No.1 | W | 10678 | W | 3 | W | 4015 | W | 10675 | W | 1622 | W |  | W | 1622 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 18069 |  | 385 |  | 13200 |  | 17684 |  | 11789 |  |  |  | 11789 |
|  KB Star Office Private Real Estate Master Fund No.1 |  | 247259 |  | 122620 |  | 95000 |  | 124639 |  | 26240 |  |  |  | 26240 |
|  Balhae Infrastructure Company |  | 853961 |  | 62336 |  | 840323 |  | 791625 |  | 99785 |  |  |  | 99785 |
|  Aju Good Technology Venture Fund |  | 64303 |  | 4703 |  | 32100 |  | 59600 |  | 22921 |  |  |  | 22921 |
|  SY Auto Capital Co., Ltd. |  | 88144 |  | 47665 |  | 20000 |  | 40479 |  | 19835 |  | (1613) |  | 18222 |
|  Incheon Bridge Co., Ltd. |  | 560570 |  | 690530 |  | 61096 |  | (129960) |  | (19481) |  | 19481 |  |  |
|  Big Dipper Co., Ltd. |  | 143 |  | 748 |  | 1750 |  | (605) |  | (147) |  | 147 |  |  |
|  Paycoms Co., Ltd. |  | 3597 |  | 1960 |  | 855 |  | 1637 |  | 181 |  | 344 |  | 525 |
|  Food Factory Co., Ltd. |  | 8332 |  | 5482 |  | 450 |  | 2850 |  | 633 |  | 687 |  | 1320 |
|  KBSP Private Equity Fund No.4 |  | 37646 |  | 5 |  | 40800 |  | 37641 |  | 5628 |  |  |  | 5628 |
|  Korea Credit Bureau Co., Ltd. |  | 128297 |  | 78328 |  | 10000 |  | 49969 |  | 4497 |  |  |  | 4497 |
|  KB Social Impact Investment Fund |  | 14431 |  | 157 |  | 15000 |  | 14274 |  | 4282 |  |  |  | 4282 |
|  KB-Solidus Global Healthcare Fund |  | 112358 |  | 1126 |  | 68400 |  | 111232 |  | 48201 |  | 697 |  | 48898 |
|  POSCO-KB Shipbuilding Fund |  | 17754 |  | 432 |  | 8880 |  | 17322 |  | 5413 |  |  |  | 5413 |
|  KB-TS Technology Venture Private Equity Fund |  | 35279 |  | 5228 |  | 25500 |  | 30051 |  | 16828 |  |  |  | 16828 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 69943 |  | 221 |  | 61100 |  | 69722 |  | 29669 |  | (750) |  | 28919 |
|  KB-SJ Tourism Venture Fund |  | 22947 |  | 557 |  | 27000 |  | 22390 |  | 4146 |  |  |  | 4146 |
|  UNION Media Commerce Fund |  | 3318 |  | 10 |  | 3450 |  | 3308 |  | 959 |  |  |  | 959 |
|  KB-Stonebridge Secondary Private Equity Fund |  | 151004 |  | 316 |  | 148587 |  | 150688 |  | 21948 |  |  |  | 21948 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** |
|  | **Total**<br>**assets** | **Total**<br>**assets** | **Total<br>liabilities** | **Total<br>liabilities** | **Paid-in<br>capital** | **Paid-in<br>capital** | **Equity** | **Equity** | **Share of**<br>**net asset<br>amount** | **Share of**<br>**net asset<br>amount** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Unrealized**<br>**gains (losses)**<br>**and others** | **Consolidated<br>carrying**<br>**amount** | **Consolidated<br>carrying**<br>**amount** |
|  KB SPROTT Renewable Private Equity Fund No.1 | W | 13886 | W | 1467 | W | 15376 | W | 12419 | W | 4680 | W |  | W | 4680 |
|  KB-UTC Inno-Tech Venture Fund |  | 47848 |  | 497 |  | 48260 |  | 47351 |  | 20972 |  |  |  | 20972 |
|  WJ Private Equity Fund No.1 |  | 35799 |  | 170 |  | 37100 |  | 35629 |  | 9604 |  |  |  | 9604 |
|  All Together Korea Fund No.2 |  | 10073 |  | 1 |  | 10002 |  | 10072 |  | 10070 |  |  |  | 10070 |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund |  | 127960 |  | 844 |  | 111600 |  | 127116 |  | 15254 |  |  |  | 15254 |
|  Project Vanilla Co., Ltd. |  | 1283 |  | 211 |  | 5000 |  | 1072 |  | 525 |  |  |  | 525 |
|  December & Company Inc. |  | 71219 |  | 17276 |  | 37241 |  | 53943 |  | 9054 |  | 12334 |  | 21388 |
|  2020 KB Fintech Renaissance Fund |  | 12252 |  | 5 |  | 10900 |  | 12247 |  | 618 |  |  |  | 618 |
|  KB Material and Parts No.1 PEF |  | 23104 |  |  |  | 23500 |  | 23104 |  | 3343 |  |  |  | 3343 |
|  FineKB Private Equity Fund No.1 |  | 32583 |  | 315 |  | 33500 |  | 32268 |  | 8067 |  |  |  | 8067 |
|  KB Bio Private Equity No.3 Ltd. |  | 81691 |  | 101 |  | 82000 |  | 81590 |  | 9950 |  |  |  | 9950 |
|  G payment Joint Stock Company |  | 7797 |  | 557 |  | 2950 |  | 7240 |  | 3175 |  | 6175 |  | 9350 |
|  Smart Korea KB Future9-Sejong Venture Fund |  | 2581 |  | 81 |  | 2600 |  | 2500 |  | 962 |  |  |  | 962 |
|  KB-KTB Technology Venture Fund |  | 11008 |  | 101 |  | 11000 |  | 10907 |  | 5503 |  | 51 |  | 5554 |
|  KB-SOLIDUS Healthcare Investment Fund |  | 2040 |  |  |  | 2040 |  | 2040 |  | 1800 |  |  |  | 1800 |
|  Paramark KB Fund No.1 |  | 8943 |  | 3 |  | 9860 |  | 8940 |  | 1850 |  |  |  | 1850 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** |
|  | **Operating**<br>**revenue** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Net profit**<br>**(loss)** | **Other**<br>**comprehensive**<br>**income (loss)** | **Other**<br>**comprehensive**<br>**income (loss)** | **Total**<br>**comprehensive**<br>**income (loss)** | **Total**<br>**comprehensive**<br>**income (loss)** | **Dividends** | **Dividends** |
|  KB Pre IPO Secondary Venture Fund No.1 | W | 4594 | W | 4180 | W |  | W | 4180 | W |  |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 530 |  | 120 |  |  |  | 120 |  |  |
|  KB Star Office Private Real Estate Master Fund No.1 |  | 18 |  | (127) |  |  |  | (127) |  | 963 |
|  Balhae Infrastructure Company |  | 97833 |  | 19559 |  |  |  | 19559 |  | 9121 |
|  Aju Good Technology Venture Fund |  | 22486 |  | 15407 |  |  |  | 15407 |  |  |
|  SY Auto Capital Co., Ltd. |  | 14316 |  | 2193 |  | 104 |  | 2297 |  |  |
|  Incheon Bridge Co., Ltd. |  | 84068 |  | (16219) |  |  |  | (16219) |  |  |
|  Big Dipper Co., Ltd. |  | 939 |  | (583) |  |  |  | (583) |  |  |
|  Paycoms Co., Ltd. |  | 1515 |  | 857 |  |  |  | 857 |  |  |
|  Food Factory Co., Ltd. |  | 8853 |  | 354 |  |  |  | 354 |  |  |
|  KBSP Private Equity Fund No.4 |  | (1358) |  | (2154) |  |  |  | (2154) |  |  |
|  Korea Credit Bureau Co., Ltd. |  | 128150 |  | (27327) |  |  |  | (27327) |  | 90 |
|  KB Social Impact Investment Fund |  | 7 |  | (306) |  |  |  | (306) |  |  |
|  KB-Solidus Global Healthcare Fund |  | 18782 |  | 13396 |  |  |  | 13396 |  |  |
|  POSCO-KB Shipbuilding Fund |  | 1880 |  | 376 |  |  |  | 376 |  |  |
|  KB-TS Technology Venture Private Equity Fund |  | 2094 |  | (1151) |  |  |  | (1151) |  |  |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 14244 |  | 8495 |  |  |  | 8495 |  |  |
|  KB-SJ Tourism Venture Fund |  | 170 |  | (2631) |  |  |  | (2631) |  |  |
|  UNION Media Commerce Fund |  |  |  | (3) |  |  |  | (3) |  |  |
|  KB-Stonebridge Secondary Private Equity Fund |  | 55572 |  | 54053 |  |  |  | 54053 |  | 9895 |
|  KB SPROTT Renewable Private Equity Fund No.1 |  |  |  | (983) |  |  |  | (983) |  |  |
|  KB-UTC Inno-Tech Venture Fund |  | 1080 |  | 32 |  |  |  | 32 |  |  |
|  WJ Private Equity Fund No.1 |  | 291 |  | (398) |  |  |  | (398) |  |  |
|  All Together Korea Fund No.2 |  | 53 |  | 47 |  |  |  | 47 |  |  |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund |  | 20594 |  | 16252 |  |  |  | 16252 |  |  |
|  Project Vanilla Co., Ltd. |  |  |  | (3231) |  |  |  | (3231) |  |  |
|  December & Company Inc. |  | 3982 |  | (20767) |  |  |  | (20767) |  |  |
|  2020 KB Fintech Renaissance Fund |  | 1566 |  | 1411 |  |  |  | 1411 |  |  |
|  KB Material and Parts No.1 PEF |  | 451 |  | 42 |  |  |  | 42 |  | 34 |
|  FineKB Private Equity Fund No.1 |  | 2 |  | (1155) |  |  |  | (1155) |  |  |
|  KB Bio Private Equity No.3 Ltd. |  | 4 |  | (410) |  |  |  | (410) |  |  |
|  G payment Joint Stock Company |  | 819 |  | (762) |  |  |  | (762) |  |  |
|  Smart Korea KB Future9-Sejong Venture Fund |  | 2 |  | (100) |  |  |  | (100) |  |  |
|  KB-KTB Technology Venture Fund |  | 8 |  | (93) |  |  |  | (93) |  |  |
|  KB-SOLIDUS Healthcare Investment Fund |  |  |  |  |  |  |  |  |  |  |
|  Paramark KB Fund No.1 |  |  |  | (920) |  |  |  | (920) |  |  |

---

\* The condensed financial information of the associates and joint ventures is adjusted to reflect adjustments, such as fair value adjustments recognized at the time of acquisition and adjustments for differences in accounting policies.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** |
|  | **Beginning** | **Beginning** | **Acquisition**<br>**and others** | **Acquisition**<br>**and others** | **Disposal**<br>**and others** | **Disposal**<br>**and others** | **Dividends** | **Dividends** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Ending** | **Ending** |
|  KB Pre IPO Secondary Venture Fund No.1 | W | 1622 | W |  | W | (1429) | W |  | W | (193) | W |  | W |  |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 11789 |  |  |  | (5200) |  |  |  | (611) |  |  |  | 5978 |
|  KB Star Office Private Real Estate Master Fund No.1 |  | 26240 |  |  |  | (5960) |  | (20280) |  |  |  |  |  |  |
|  Balhae Infrastructure Company |  | 99785 |  |  |  | (9408) |  | (16646) |  | 16886 |  |  |  | 90617 |
|  Incheon Bridge Co., Ltd. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Aju Good Technology Venture Fund |  | 22921 |  |  |  | (4200) |  | (1200) |  | 2315 |  |  |  | 19836 |
|  SY Auto Capital Co., Ltd. |  | 18222 |  |  |  |  |  |  |  | 757 |  | 183 |  | 19162 |
|  Big Dipper Co., Ltd. |  |  |  | 291 |  |  |  |  |  | (231) |  |  |  | 60 |
|  Paycoms Co., Ltd. |  | 525 |  |  |  |  |  |  |  | (312) |  |  |  | 213 |
|  Food Factory Co., Ltd. |  | 1320 |  |  |  |  |  |  |  | 132 |  | (53) |  | 1399 |
|  KBSP Private Equity Fund No.4 |  | 5628 |  |  |  |  |  |  |  | (3736) |  |  |  | 1892 |
|  Korea Credit Bureau Co., Ltd. |  | 4497 |  |  |  |  |  |  |  | 462 |  |  |  | 4959 |
|  KB Social Impact Investment Fund |  | 4282 |  |  |  |  |  |  |  | (16) |  |  |  | 4266 |
|  KB-Solidus Global Healthcare Fund |  | 48898 |  |  |  | (19630) |  |  |  | (6836) |  |  |  | 22432 |
|  POSCO-KB Shipbuilding Fund |  | 5413 |  |  |  | (950) |  |  |  | 335 |  |  |  | 4798 |
|  KB-TS Technology Venture Private Equity Fund |  | 16828 |  |  |  | (4536) |  |  |  | 1502 |  |  |  | 13794 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 28919 |  |  |  | (12800) |  |  |  | 932 |  |  |  | 17051 |
|  KB-SJ Tourism Venture Fund |  | 4146 |  |  |  | (400) |  |  |  | 27 |  |  |  | 3773 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** |
|  | **Beginning** | **Beginning** | **Acquisition**<br>**and others** | **Acquisition**<br>**and others** | **Disposal**<br>**and others** | **Disposal**<br>**and others** | **Dividends** | **Dividends** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Ending** | **Ending** |
|  UNION Media Commerce Fund | W | 959 | W |  | W |  | W |  | W | (2) | W |  | W | 957 |
|  KB-Stonebridge Secondary Private Equity Fund |  | 21948 |  | 4370 |  | (2210) |  | (2006) |  | 3042 |  |  |  | 25144 |
|  KB SPROTT Renewable Private Equity Fund No.1 |  | 4680 |  | 12246 |  |  |  |  |  | (387) |  |  |  | 16539 |
|  KB-UTC Inno-Tech Venture Fund |  | 20972 |  |  |  |  |  |  |  | (1306) |  | (486) |  | 19180 |
|  WJ Private Equity Fund No.1 |  | 9604 |  |  |  |  |  |  |  | (62) |  |  |  | 9542 |
|  All Together Korea Fund No.2 |  | 10070 |  |  |  |  |  |  |  | 174 |  |  |  | 10244 |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund |  | 15254 |  | 1320 |  | (4706) |  |  |  | 686 |  |  |  | 12554 |
|  Project Vanilla Co., Ltd. |  | 525 |  |  |  | (525) |  |  |  |  |  |  |  |  |
|  December & Company Inc. |  | 21388 |  |  |  | (49) |  |  |  | (5353) |  | 43 |  | 16029 |
|  2020 KB Fintech Renaissance Fund |  | 618 |  |  |  |  |  |  |  | 12 |  |  |  | 630 |
|  KB Material and Parts No.1 PEF |  | 3343 |  |  |  |  |  | (34) |  | 12 |  |  |  | 3321 |
|  FineKB Private Equity Fund No.1 |  | 8067 |  | 7500 |  | (3100) |  |  |  | (1984) |  |  |  | 10483 |
|  KB Bio Private Equity No.3 Ltd. |  | 9950 |  |  |  | (3922) |  | (6028) |  |  |  |  |  |  |
|  G payment Joint Stock Company |  | 9350 |  | 295 |  |  |  |  |  | (364) |  |  |  | 9281 |
|  Apollo REIT PropCo LLC |  |  |  | 19968 |  | (19968) |  |  |  |  |  |  |  |  |
|  KB-GeneN Medical Venture Fund No.1 |  |  |  | 2000 |  |  |  |  |  | (35) |  |  |  | 1965 |
|  KB-BridgePole Venture Investment Fund |  |  |  | 850 |  |  |  |  |  | (15) |  |  |  | 835 |
|  KB-Kyobo New Mobility Power Fund |  |  |  | 3000 |  |  |  |  |  | (174) |  |  |  | 2826 |
|  DA-Friend New Technology Investment Fund No.2 |  |  |  | 988 |  |  |  |  |  | (39) |  |  |  | 949 |
|  Cornerstone Pentastone Fund No.4 |  |  |  | 818 |  |  |  |  |  | (26) |  |  |  | 792 |
|  SKS-VLP New Technology Investment Fund No.2 |  |  |  | 1156 |  |  |  |  |  | (35) |  |  |  | 1121 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** |
|  | **Beginning** | **Beginning** | **Acquisition**<br>**and others** | **Acquisition**<br>**and others** | **Disposal**<br>**and others** | **Disposal**<br>**and others** | **Dividends** | **Dividends** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Other<br>comrehensive**<br>**income**<br>**(loss)** | **Other<br>comrehensive**<br>**income**<br>**(loss)** | **Ending** | **Ending** |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 | W |  | W | 46700 | W |  | W |  | W | (46700) | W |  | W |  |
|  KB-Badgers Future Mobility ESG Fund No.1 |  |  |  | 2137 |  |  |  |  |  | (662) |  |  |  | 1475 |
|  JS Private Equity Fund No.3 |  |  |  | 1700 |  |  |  |  |  | (36) |  |  |  | 1664 |
|  Mirae Asset Mobility Investment Fund No.1 |  |  |  | 2000 |  |  |  |  |  | (21) |  |  |  | 1979 |
|  KB-FT 1st Green Growth Investment Fund 1 |  |  |  | 2000 |  |  |  |  |  | (30) |  |  |  | 1970 |
|  Glenwood Credit Private Equity Fund No.2 |  |  |  | 42000 |  |  |  |  |  | 1468 |  |  |  | 43468 |
|  THE CHAEUL FUND NO.1 |  |  |  | 1000 |  |  |  |  |  | (11) |  |  |  | 989 |
|  Smart Korea KB Future9-Sejong Venture Fund |  | 962 |  | 1000 |  |  |  |  |  | (92) |  |  |  | 1870 |
|  KB-KTB Technology Venture Fund |  | 5554 |  | 11200 |  |  |  |  |  | (498) |  |  |  | 16256 |
|  KB-SOLIDUS Healthcare Investment Fund |  | 1800 |  | 18000 |  |  |  |  |  | (1149) |  |  |  | 18651 |
|  Paramark KB Fund No.1 |  | 1850 |  | 12444 |  | (2285) |  |  |  | (1043) |  |  |  | 10966 |
|  KB Co-Investment Private Equity Fund No.1 |  |  |  | 7268 |  |  |  |  |  | (35) |  |  |  | 7233 |
|  POSITIVE Sobujang Venture Fund No.1 |  |  |  | 2000 |  |  |  |  |  | (23) |  |  |  | 1977 |
|  History 2022 Fintech Fund |  |  |  | 2000 |  |  |  |  |  | (19) |  |  |  | 1981 |
|  PEBBLES-MW M.C.E New Technology Investment Fund 1<sup>st</sup> |  |  |  | 2000 |  |  |  |  |  | (18) |  |  |  | 1982 |
|  KB-NP Green ESG New Technology Venture Capital Fund |  |  |  | 9350 |  |  |  |  |  | (307) |  |  |  | 9043 |
|  TMAP Mobility Co., Ltd. |  |  |  | 200000 |  |  |  |  |  | (5797) |  | 252 |  | 194455 |
|  Nextrade Co., Ltd. |  |  |  | 9700 |  |  |  |  |  |  |  |  |  | 9700 |
|  Shinhan Global Mobility Fund1 |  |  |  | 1345 |  |  |  |  |  |  |  |  |  | 1345 |
|  SKB Next Unicorn K-Battery Fund No.1 |  |  |  | 1995 |  |  |  |  |  |  |  |  |  | 1995 |
|  Others |  | 789 |  | 50 |  | (43) |  |  |  | 75 |  | 178 |  | 1049 |
|  | W | 448718 | W | 430691 | W | (101321) | W | (46194) | W | (49341) | W | 117 | W | 682670 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** |
|  | **Beginning** | **Beginning** | **Acquisition**<br>**and others** | **Acquisition**<br>**and others** | **Disposal**<br>**and others** | **Disposal**<br>**and others** | **Dividends** | **Dividends** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Ending** | **Ending** |
|  KB Pre IPO Secondary Venture Fund No.1 | W | 1279 | W |  | W | (292) | W |  | W | 635 | W |  | W | 1622 |
|  KB GwS Private Securities Investment Trust |  | 141359 |  |  |  | (141359) |  |  |  |  |  |  |  |  |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 16042 |  |  |  | (4800) |  |  |  | 547 |  |  |  | 11789 |
|  KB Star Office Private Real Estate Master Fund No.1 |  | 20066 |  |  |  |  |  | (963) |  | 7137 |  |  |  | 26240 |
|  Balhae Infrastructure Company |  | 106624 |  | 280 |  | (463) |  | (9121) |  | 2465 |  |  |  | 99785 |
|  Aju Good Technology Venture Fund |  | 21348 |  |  |  | (4770) |  |  |  | 6343 |  |  |  | 22921 |
|  SY Auto Capital Co., Ltd. |  | 16144 |  |  |  |  |  |  |  | 2027 |  | 51 |  | 18222 |
|  Incheon Bridge Co., Ltd. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Big Dipper Co., Ltd. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Paycoms Co., Ltd. |  | 198 |  |  |  |  |  |  |  | 327 |  |  |  | 525 |
|  Food Factory Co., Ltd. |  | 1281 |  |  |  |  |  |  |  | 7 |  | 32 |  | 1320 |
|  KBSP Private Equity Fund No.4 |  | 5950 |  |  |  |  |  |  |  | (322) |  |  |  | 5628 |
|  KB Private Equity Fund No.3 |  | 94 |  |  |  | (13) |  | (81) |  |  |  |  |  |  |
|  Korea Credit Bureau Co., Ltd. |  | 7153 |  |  |  |  |  | (90) |  | (2566) |  |  |  | 4497 |
|  KoFC POSCO Hanwha KB Shared Growth Private Equity Fund No.2 |  | 9845 |  |  |  | (9725) |  | (2120) |  | 2000 |  |  |  |  |
|  Keystone-Hyundai Securities No.1 Private Equity Fund |  | 1556 |  |  |  | (1044) |  | (512) |  |  |  |  |  |  |
|  KB Social Impact Investment Fund |  | 2874 |  | 1500 |  |  |  |  |  | (92) |  |  |  | 4282 |
|  KB-Solidus Global Healthcare Fund |  | 46213 |  |  |  | (3120) |  |  |  | 5805 |  |  |  | 48898 |
|  POSCO-KB Shipbuilding Fund |  | 12895 |  |  |  | (7599) |  |  |  | 117 |  |  |  | 5413 |
|  KB-TS Technology Venture Private Equity Fund |  | 17630 |  | 3080 |  | (5376) |  |  |  | 1494 |  |  |  | 16828 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 26763 |  | 10000 |  | (10800) |  |  |  | 2956 |  |  |  | 28919 |
|  KB-SJ Tourism Venture Fund |  | 4133 |  | 499 |  |  |  |  |  | (486) |  |  |  | 4146 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** |
|  | **Beginning** | **Beginning** | **Acquisition**<br>**and others** | **Acquisition**<br>**and others** | **Disposal**<br>**and others** | **Disposal**<br>**and others** | **Dividends** | **Dividends** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Gains**<br>**(losses)**<br>**on equity-**<br>**method**<br>**accounting** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Other<br>comprehensive**<br>**income**<br>**(loss)** | **Ending** | **Ending** |
|  UNION Media Commerce Fund | W | 960 | W |  | W |  | W |  | W | (1) | W |  | W | 959 |
|  KB-Stonebridge Secondary Private Equity Fund |  | 16636 |  | 13257 |  | (5924) |  | (9895) |  | 7874 |  |  |  | 21948 |
|  KB SPROTT Renewable Private Equity Fund No.1 |  | 5049 |  |  |  |  |  |  |  | (369) |  |  |  | 4680 |
|  KB-UTC Inno-Tech Venture Fund |  | 16999 |  | 5085 |  | (1126) |  |  |  | 14 |  |  |  | 20972 |
|  WJ Private Equity Fund No.1 |  | 9711 |  |  |  |  |  |  |  | (107) |  |  |  | 9604 |
|  All Together Korea Fund No.2 |  | 10023 |  |  |  |  |  |  |  | 47 |  |  |  | 10070 |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund |  | 5611 |  | 7692 |  |  |  |  |  | 1951 |  |  |  | 15254 |
|  JR Global REIT |  | 215854 |  |  |  | (209250) |  | (6604) |  |  |  |  |  |  |
|  Project Vanilla Co., Ltd. |  | 2151 |  |  |  |  |  |  |  | (1626) |  |  |  | 525 |
|  December & Company Inc. |  | 24402 |  | 481 |  |  |  |  |  | (3507) |  | 12 |  | 21388 |
|  2020 KB Fintech Renaissance Fund |  | 547 |  |  |  |  |  |  |  | 71 |  |  |  | 618 |
|  KB Material and Parts No.1 PEF |  | 3371 |  |  |  |  |  | (34) |  | 6 |  |  |  | 3343 |
|  FineKB Private Equity Fund No.1 |  |  |  | 8375 |  |  |  |  |  | (308) |  |  |  | 8067 |
|  KB Bio Private Equity No.3 Ltd. |  |  |  | 10000 |  |  |  |  |  | (50) |  |  |  | 9950 |
|  K The 15th REIT Co., Ltd. |  |  |  | 8600 |  | (8600) |  |  |  |  |  |  |  |  |
|  G payment Joint Stock Company |  |  |  | 9684 |  |  |  |  |  | (334) |  |  |  | 9350 |
|  498 Seventh Owners LLC <sup>2</sup> |  |  |  | 172907 |  | (169424) |  | (3483) |  |  |  |  |  |  |
|  Smart Korea KB Future9-Sejong Venture Fund |  |  |  | 1000 |  |  |  |  |  | (38) |  |  |  | 962 |
|  KB-KTB Technology Venture Fund |  |  |  | 5601 |  |  |  |  |  | (47) |  |  |  | 5554 |
|  KB-SOLIDUS Healthcare Investment Fund |  |  |  | 1800 |  |  |  |  |  |  |  |  |  | 1800 |
|  Paramark KB Fund No.1 |  |  |  | 2040 |  |  |  |  |  | (190) |  |  |  | 1850 |
|  Others |  | 674 |  |  |  |  |  |  |  | (303) |  | 418 |  | 789 |
|  | W | 771435 | W | 261881 | W | (583685) | W | (32903) | W | 31477 | W | 513 | W | 448718 |

---

<sup>1</sup> Gains on disposal of investments in associates and joint ventures amount to W 20,585 million W 62,048 million for the years ended December 31, 2022 and 2021, respectively. 

<sup>2</sup> The investment was classified as assets of a disposal group held for sale as of December 31, 2021.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

13.4 Unrecognized share of losses of investments in associates and joint ventures due to the discontinuation of recognizing share of losses, for the years ended December 31, 2022 and 2021, and accumulated amount of unrecognized losses as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Unrecognized losses**<br>**for the period** | **Unrecognized losses**<br>**for the period** | **Unrecognized losses**<br>**for the period** | **Unrecognized losses**<br>**for the period** | **Accumulated**<br>**unrecognized losses** | **Accumulated**<br>**unrecognized losses** | **Accumulated**<br>**unrecognized losses** | **Accumulated**<br>**unrecognized losses** |
|  | **2022** | **2022** | **2021** | **2021** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  DSMETAL Co., Ltd. | W |  | W | 38 | W | 103 | W | 103 |
|  Incheon Bridge Co., Ltd. |  | (3518) |  | 1381 |  | 15963 |  | 19481 |
|  Jungdong Steel Co., Ltd. |  |  |  |  |  | 489 |  | 489 |
|  Shinla Construction Co., Ltd. |  |  |  |  |  | 183 |  | 183 |
|  Jaeyang Industry Co., Ltd. |  |  |  |  |  | 30 |  | 30 |
|  Terra Corporation |  |  |  |  |  | 14 |  | 14 |
|  Jungdo Co., Ltd. |  | (8) |  | 239 |  | 543 |  | 551 |
|  Jinseung Tech Co., Ltd. |  | (15) |  | 12 |  | 18 |  | 33 |
|  Korea NM Tech Co., Ltd. |  | 3 |  |  |  | 31 |  | 28 |
|  Chongil Machine & Tools Co., Ltd. |  | 7 |  | 49 |  | 75 |  | 68 |
|  Skydigital Inc. |  | 3 |  | 68 |  | 177 |  | 174 |
|  Imt Technology Co., Ltd. |  |  |  | (3) |  |  |  |  |
|  Jo Yang Industrial Co., Ltd. |  | 8 |  | 9 |  | 113 |  | 105 |
|  IDTECK Co., Ltd. |  | (144) |  | (72) |  |  |  | 144 |
|  MJT&I Corp. |  | 1 |  | 152 |  | 153 |  | 152 |
|  Dae-A Leisure Co., Ltd. |  | 310 |  | 202 |  | 512 |  | 202 |
|  Il-Kwang Electronic Materials Co., Ltd. |  | (2) |  | 160 |  | 158 |  | 160 |
|  Inter Shipping Co., Ltd. |  | 1022 |  | 117 |  | 1139 |  | 117 |
|  Dongjo Co., Ltd |  | 696 |  |  |  | 696 |  |  |
|  Iwon Alloy Co., Ltd. |  | 19 |  |  |  | 19 |  |  |
|  Chunsung-meat co., ltd. |  | 24 |  |  |  | 24 |  |  |
|  ALTSCS CO., LTD. |  | 1 |  |  |  | 1 |  |  |
|  RAND Bio Science Co., Ltd. |  | 231 |  | 309 |  | 540 |  | 309 |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 |  | 9741 |  |  |  | 9741 |  |  |
|  | W | 8379 | W | 2661 | W | 30722 | W | 22343 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**14. Property and Equipment, and Investment Properties** 

14.1 Property and Equipment

14.1.1 Details of property and equipment as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>depreciation** | **Accumulated<br>depreciation** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Land | W | 2416730 | W |  | W | (4) | W | 2416726 |
|  Buildings |  | 2426317 |  | (839137) |  | (5747) |  | 1581433 |
|  Leasehold improvements |  | 1020095 |  | (943711) |  |  |  | 76384 |
|  Equipment and vehicles |  | 2070374 |  | (1766036) |  |  |  | 304338 |
|  Construction in-progress |  | 28045 |  |  |  |  |  | 28045 |
|  Right-of-use assets |  | 1440686 |  | (856145) |  |  |  | 584541 |
|  | W | 9402247 | W | (4405029) | W | (5751) | W | 4991467 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>depreciation** | **Accumulated<br>depreciation** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Land | W | 2548185 | W |  | W | (4) | W | 2548181 |
|  Buildings |  | 2534134 |  | (851730) |  | (5747) |  | 1676657 |
|  Leasehold improvements |  | 977853 |  | (889602) |  |  |  | 88251 |
|  Equipment and vehicles |  | 2093461 |  | (1782278) |  |  |  | 311183 |
|  Construction in-progress |  | 39579 |  |  |  |  |  | 39579 |
|  Right-of-use assets |  | 1301864 |  | (725817) |  |  |  | 576047 |
|  | W | 9495076 | W | (4249427) | W | (5751) | W | 5239898 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

14.1.2 Changes in property and equipment for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Transfer <sup>1</sup>** | **Transfer <sup>1</sup>** | **Disposal** | **Disposal** | **Depreciation <sup>2</sup>** | **Depreciation <sup>2</sup>** | **Business**<br>**combination** | **Business**<br>**combination** | **Others** | **Others** | **Ending** | **Ending** |
|  Land | W | 2548181 | W | 678 | W | (117290) | W | (7223) | W |  | W |  | W | (7620) | W | 2416726 |
|  Buildings |  | 1676657 |  | 12867 |  | (39460) |  | (7860) |  | (66044) |  |  |  | 5273 |  | 1581433 |
|  Leasehold improvements |  | 88251 |  | 12533 |  | 36379 |  | (455) |  | (60129) |  | 8 |  | (203) |  | 76384 |
|  Equipment and vehicles |  | 311183 |  | 159109 |  | 1899 |  | (1795) |  | (170529) |  | 30 |  | 4441 |  | 304338 |
|  Construction in-progress |  | 39579 |  | 110378 |  | (121306) |  | (397) |  |  |  |  |  | (209) |  | 28045 |
|  Right-of-use assets |  | 576047 |  | 682393 |  | (2640) |  | (416712) |  | (296509) |  |  |  | 41962 |  | 584541 |
|  | W | 5239898 | W | 977958 | W | (242418) | W | (434442) | W | (593211) | W | 38 | W | 43644 | W | 4991467 |

---

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Transfer <sup>1</sup>** | **Transfer <sup>1</sup>** | **Disposal** | **Disposal** | **Depreciation <sup>2</sup>** | **Depreciation <sup>2</sup>** | **Business**<br>**combination** | **Business**<br>**combination** | **Others** | **Others** | **Ending** | **Ending** |
|  Land | W | 2610586 | W | 1106 | W | (81690) | W | (11399) | W |  | W |  | W | 29578 | W | 2548181 |
|  Buildings |  | 1771582 |  | 2412 |  | (79802) |  | 6213 |  | (69118) |  |  |  | 45370 |  | 1676657 |
|  Leasehold improvements |  | 95827 |  | 13079 |  | 40148 |  | (891) |  | (61294) |  |  |  | 1382 |  | 88251 |
|  Equipment and vehicles |  | 340658 |  | 153459 |  | 2488 |  | (1819) |  | (187918) |  | 537 |  | 3778 |  | 311183 |
|  Construction in-progress |  | 44190 |  | 129682 |  | (99763) |  | (8435) |  |  |  |  |  | (26095) |  | 39579 |
|  Right-of-use assets |  | 570711 |  | 614069 |  | (9) |  | (324104) |  | (288980) |  | 20 |  | 4340 |  | 576047 |
|  | W | 5433554 | W | 913807 | W | (218628) | W | (340435) | W | (607310) | W | 557 | W | 58353 | W | 5239898 |

---

**<sup>1</sup>** Includes transfers with investment properties and assets held for sale. 

**<sup>2</sup>** Includes depreciation expenses amounting to W 255 million and W 196 million recorded as other operating expenses and others for the years ended December 31, 2022 and 2021, respectively. 

14.1.3 Changes in accumulated impairment losses of property and equipment for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Impairment** | **Reversal** | **Disposal<br>and others** | **Ending** | **Ending** |
|  Accumulated impairment losses of property and equipment | W | (5751) | W | W | W | W | (5751) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Impairment** | **Reversal** | **Disposal<br>and others** | **Disposal<br>and others** | **Ending** | **Ending** |
|  Accumulated impairment losses of property and equipment | W | (6877) | W | W | W | 1126 | W | (5751) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

14.2 Investment Properties

14.2.1 Details of investment properties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>depreciation** | **Accumulated<br>depreciation** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Land | W | 1496007 | W |  | W | (478) | W | 1495529 |
|  Buildings |  | 1783438 |  | (125428) |  | (5199) |  | 1652811 |
|  | W | 3279445 | W | (125428) | W | (5677) | W | 3148340 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>depreciation** | **Accumulated<br>depreciation** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Land | W | 1577800 | W |  | W | (447) | W | 1577353 |
|  Buildings |  | 1089761 |  | (147307) |  | (4863) |  | 937591 |
|  | W | 2667561 | W | (147307) | W | (5310) | W | 2514944 |

---

14.2.2 Valuation techniques and inputs used to measure the fair value of investment properties as of December 31, 2022, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Inputs** |
|  Land and buildings | W | 194157 | Cost approach method | - Price per square meter<br> - Replacement cost |
|  |  | 1514800 | Market comparison method | - Price per square meter |
|  |  | 1527096 | Discounted cash flow method | - Prospective rental market growth rate<br> - Period of vacancy<br> - Rental ratio<br> - Discount rate and others |
|  |  | 233850 | Income approach method | - Discount rate<br> - Capitalization rate<br> - Vacancy rate |

---

Fair value of investment properties amounts to W 3,469,903 million and W 2,712,402 million as of December 31, 2022 and 2021, respectively. Investment properties are measured by qualified independent appraisers with recent experience in valuing similar properties in the same area. In addition, all investment properties are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

Rental income from above investment properties amounts to W 136,493 million and W 123,313 million for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

14.2.3 Changes in investment properties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Transfer \*** | **Transfer \*** | **Disposal** | **Disposal** | **Depreciation** | **Depreciation** | **Others** | **Others** | **Ending** | **Ending** |
|  Land | W | 1577353 | W | 387282 | W | (64630) | W | (414335) | W |  | W | 9859 | W | 1495529 |
|  Buildings |  | 937591 |  | 880545 |  | (62186) |  | (153562) |  | (38156) |  | 88579 |  | 1652811 |
|  | W | 2514944 | W | 1267827 | W | (126816) | W | (567897) | W | (38156) | W | 98438 | W | 3148340 |

---

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Transfer \*** | **Transfer \*** | **Disposal** | **Disposal** | **Depreciation** | **Depreciation** | **Others** | **Others** | **Ending** | **Ending** |
|  Land | W | 1568098 | W | 28568 | W | 22410 | W | (63546) | W |  | W | 21823 | W | 1577353 |
|  Buildings |  | 965441 |  | 90393 |  | 1802 |  | (112159) |  | (28933) |  | 21047 |  | 937591 |
|  | W | 2533539 | W | 118961 | W | 24212 | W | (175705) | W | (28933) | W | 42870 | W | 2514944 |

---

\* Includes transfers with property and equipment and assets held for sale.

**15. Intangible Assets** 

15.1 Details of intangible assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |
|  | **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** |
|  | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>amortization** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Others** | **Others** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Goodwill | W | 903003 | W |  | W | (70517) | W | 12669 | W | 845155 |
|  Other intangible assets |  | 5537835 |  | (3149825) |  | (32766) |  |  |  | 2355244 |
|  | W | 6440838 | W | (3149825) | W | (103283) | W | 12669 | W | 3200399 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |
|  | **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** |
|  | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>amortization** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Others** | **Others** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Goodwill | W | 887259 | W |  | W | (70517) | W | (10335) | W | 806407 |
|  Other intangible assets |  | 5227231 |  | (2732394) |  | (34887) |  |  |  | 2459950 |
|  | W | 6114490 | W | (2732394) | W | (105404) | W | (10335) | W | 3266357 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

15.2 Details of goodwill as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition<br>cost** | **Acquisition<br>cost** | **Carrying<br>amount \*** | **Carrying<br>amount \*** | **Acquisition<br>cost** | **Acquisition<br>cost** | **Carrying<br>amount \*** | **Carrying<br>amount \*** |
|  Housing & Commercial Bank | W | 65288 | W | 65288 | W | 65288 | W | 65288 |
|  Kookmin Bank Cambodia Plc. |  | 1202 |  |  |  | 1202 |  |  |
|  KB Securities Co., Ltd. |  | 70265 |  | 58889 |  | 70265 |  | 58889 |
|  KB Capital Co., Ltd. |  | 79609 |  | 79609 |  | 79609 |  | 79609 |
|  KB Savings Bank Co., Ltd. |  | 115343 |  | 57404 |  | 115343 |  | 57404 |
|  KB Securities Vietnam Joint Stock Company |  | 13092 |  | 13947 |  | 13092 |  | 13533 |
|  KB Daehan Specialized Bank Plc. |  | 1515 |  | 1712 |  | 1515 |  | 1601 |
|  PRASAC Microfinance Institution Plc. |  | 396942 |  | 415332 |  | 396942 |  | 388524 |
|  PT Sunindo Kookmin Best Finance |  | 2963 |  | 2817 |  | 2963 |  | 2894 |
|  PT Bank KB Bukopin Tbk |  | 89220 |  | 83619 |  | 89220 |  | 85893 |
|  PT. KB Finansia Multi Finance |  | 51820 |  | 51376 |  | 51820 |  | 52772 |
|  PT. KB Valbury Sekurita |  | 11070 |  | 10713 |  |  |  |  |
|  I-Finance Leasing |  | 4674 |  | 4449 |  |  |  |  |
|  | W | 903003 | W | 845155 | W | 887259 | W | 806407 |

---

\* Includes the effect of exchange differences and others.

15.3 Changes in accumulated impairment losses of goodwill for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Impairment** | **Others** | **Ending** | **Ending** |
|  Accumulated impairment losses of goodwill | W | (70517) | W | W | W | (70517) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Impairment** | **Others** | **Ending** | **Ending** |
|  Accumulated impairment losses of goodwill | W | (70517) | W | W | W | (70517) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

15.4 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2022 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  |  | **Carrying<br>amount of<br>goodwill** | **Carrying<br>amount of<br>goodwill** | **Recoverable<br>amount<br>exceeding<br>carrying<br>amount \*** | **Recoverable<br>amount<br>exceeding<br>carrying<br>amount \*** | **Discount<br>rate (%)** | **Permanent<br>growth<br>rate (%)** |
|  Housing & Commercial Bank | Retail banking | W | 49315 | W | 5778171 | 16.60 | 1.00 |
|  | Corporate banking |  | 15973 |  | 2905282 | 17.01 | 1.00 |
|  KB Securities Co., Ltd. | KB Securities Co., Ltd. |  | 58889 |  | 29096 | 17.86 | 1.00 |
|  KB Capital Co., Ltd. | KB Capital Co., Ltd. |  | 79609 |  | 1019677 | 16.74 | 1.00 |
|  KB Savings Bank Co., Ltd. and Yehansoul Savings Bank Co., Ltd. | KB Savings Bank Co., Ltd. and Yehansoul Savings Bank Co., Ltd. |  | 57404 |  | 730113 | 12.16 | 1.00 |
|  KB Securities Vietnam Joint Stock Company | KB Securities Vietnam Joint Stock Company |  | 13947 |  | 69658 | 19.66 | 1.00 |
|  KB Daehan Specialized Bank Plc. | KB Daehan Specialized Bank Plc. |  | 1712 |  | 23981 | 21.84 | 1.00 |
|  PT Bank KB Bukopin Tbk | PT Bank KB Bukopin Tbk |  | 83619 |  | 582823 | 20.16 | 3.00 |
|  PRASAC Microfinance Institution Plc. | PRASAC Microfinance Institution Plc. |  | 415332 |  | 122207 | 30.40 | 3.00 |
|  PT Sunindo Kookmin Best Finance | PT Sunindo Kookmin Best Finance |  | 2817 |  | 10699 | 18.55 |  |
|  PT. KB Finansia Multi Finance | PT. KB Finansia Multi Finance |  | 51376 |  | 128087 | 16.35 | 1.00 |
|  PT. KB Valbury Sekurita | PT. KB Valbury Sekurita |  | 10713 |  | 67989 | 13.95 | 1.00 |
|  |  | W | 840706 | W | 11467783 |  |  |

---

\* The recoverable amount exceeding carrying amount is the amount at the time of impairment testing. 

For impairment testing, goodwill is allocated to cash-generating units that are expected to benefit from the synergies of the business combination, and cash-generating units consist of an operating segment or units which are not larger than an operating segment.

Cash-generating units to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired, by comparing the carrying amount of the unit including the goodwill with the recoverable amount of the unit.

The recoverable amount of a cash-generating unit is measured at the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal is the amount obtainable from the disposal in an arm's length transaction between knowledgeable, willing parties, after deducting the costs of disposal. If it is difficult to measure the amount obtainable from the disposal of the cash-generating unit, the disposal amount of a similar cash-generating unit in the past transaction is used by reflecting the characteristics of the cash-generating unit to be measured. If it is not possible to obtain reliable information to measure the fair value less costs of disposal, the Group uses the asset's value in use as its recoverable amount. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The estimated future cash flows are based on the most recent financial budget approved by management with maximum period of 5 years. In relation to subsequent cash flows, it is assumed that cash flows will grow at a certain permanent growth rate. The key assumptions used for the estimation of the future cash flows are based on the market size and the Group's market share. The discount rate is a pre-tax rate that reflects assumptions regarding risk-free interest rate, market risk premium, and the risks specific to the cash-generating unit.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

15.4 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2022 are as follows: (cont'd)

The Group acquired a 100% stake in I-Finance Leasing on December 26, 2022 as the business combination date, and goodwill acquired from this business combination was W 4,449 million as of December 31, 2022. The Group conducts an impairment test annually and whenever there is an indication of impairment and No indication of impairment of goodwill has been observed as of December 31, 2022.

15.5 Details of intangible assets other than goodwill as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>amortization** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Industrial property rights | W | 4740 | W | (2913) | W | (716) | W | 1111 |
|  Software |  | 2260879 |  | (1640631) |  |  |  | 620248 |
|  Other intangible assets |  | 841785 |  | (420381) |  | (32050) |  | 389354 |
|  VOBA |  | 2395291 |  | (1053362) |  |  |  | 1341929 |
|  Right-of-use assets |  | 35140 |  | (32538) |  |  |  | 2602 |
|  | W | 5537835 | W | (3149825) | W | (32766) | W | 2355244 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>amortization** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Industrial property rights | W | 3056 | W | (1953) | W |  | W | 1103 |
|  Software |  | 1996646 |  | (1417705) |  |  |  | 578941 |
|  Other intangible assets |  | 797107 |  | (365473) |  | (34887) |  | 396747 |
|  VOBA |  | 2395291 |  | (915746) |  |  |  | 1479545 |
|  Right-of-use assets |  | 35131 |  | (31517) |  |  |  | 3614 |
|  | W | 5227231 | W | (2732394) | W | (34887) | W | 2459950 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

15.6 Changes in intangible assets other than goodwill for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Acquisition &<br>transfer** | **Acquisition &<br>transfer** | **Disposal** | **Disposal** | **Amortization <sup>1</sup>** | **Amortization <sup>1</sup>** | **Others** | **Others** | **Ending** | **Ending** |
|  Industrial property rights | W | 1103 | W | 254 | W |  | W | (246) | W |  | W | 1111 |
|  Software |  | 578941 |  | 290229 |  | (332) |  | (249050) |  | 460 |  | 620248 |
|  Other intangible assets <sup>2</sup> |  | 396747 |  | 69596 |  | (10192) |  | (62270) |  | (4527) |  | 389354 |
|  VOBA |  | 1479545 |  |  |  |  |  | (137616) |  |  |  | 1341929 |
|  Right-of-use assets |  | 3614 |  |  |  |  |  | (1012) |  |  |  | 2602 |
|  | W | 2459950 | W | 360079 | W | (10524) | W | (450194) | W | (4067) | W | 2355244 |

---

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Acquisition &<br>transfer** | **Acquisition &<br>transfer** | **Disposal** | **Disposal** | **Amortization <sup>1</sup>** | **Amortization <sup>1</sup>** | **Business**<br>**combination** | **Business**<br>**combination** | **Others** | **Others** | **Ending** | **Ending** |
|  Industrial property rights | W | 2347 | W | 207 | W | (1080) | W | (371) | W |  | W |  | W | 1103 |
|  Software |  | 573186 |  | 219128 |  | (838) |  | (216073) |  | 8742 |  | (5204) |  | 578941 |
|  Other intangible assets <sup>2</sup> |  | 371773 |  | 100460 |  | (16907) |  | (59761) |  |  |  | 1182 |  | 396747 |
|  VOBA |  | 1635619 |  |  |  |  |  | (156074) |  |  |  |  |  | 1479545 |
|  Right-of-use assets |  | 4626 |  |  |  |  |  | (1012) |  |  |  |  |  | 3614 |
|  | W | 2587551 | W | 319795 | W | (18825) | W | (433291) | W | 8742 | W | (4022) | W | 2459950 |

---

<sup>1</sup> Includes W 164,308 million and W 189,791 million recorded as insurance expenses and other operating expenses for the years ended December 31, 2022 and 2021, respectively.

<sup>2</sup> Impairment losses for membership right with indefinite useful life among other intangible assets are recognized when its recoverable amount is lower than its carrying amount, and reversal of impairment losses are recognized when its recoverable amount is higher than its carrying amount. 

15.7 Changes in accumulated impairment losses of other intangible assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Impairment** | **Impairment** | **Reversal** | **Reversal** | **Disposal**<br>**and<br>others** | **Disposal**<br>**and<br>others** | **Ending** | **Ending** |
|  Accumulated impairment losses of other intangible assets | W | (34887) | W | (1301) | W | 425 | W | 2997 | W | (32766) |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Impairment** | **Impairment** | **Reversal** | **Reversal** | **Disposal**<br>**and others** | **Disposal**<br>**and others** | **Ending** | **Ending** |
|  Accumulated impairment losses of other intangible assets | W | (36264) | W | (5306) | W | 2939 | W | 3744 | W | (34887) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**16. Lease** 

16.1 The Group as a Lessee

16.1.1 Amounts recognized in the consolidated statements of financial position related to lease as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  Right-of-use property and equipment: \* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | W | 557122 | W | 544075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles |  | 20281 |  | 18416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 7138 |  | 13556 |
|  |  | 584541 |  | 576047 |
|  Right-of-use intangible assets \* |  | 2602 |  | 3614 |
|  | W | 587143 | W | 579661 |
|  Lease liabilities \* | W | 592697 | W | 578808 |

---

\* Included in property and equipment, intangible assets, and other liabilities.

16.1.2 Amounts recognized in the consolidated statements of comprehensive income related to lease for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Depreciation and amortization of right-of-use assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | W | 271703 | W | 262240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles |  | 17661 |  | 17796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 7145 |  | 8944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets |  | 1012 |  | 1012 |
|  | W | 297521 | W | 289992 |
|  Interest expenses on the lease liabilities | W | 17849 | W | 14678 |
|  Expense relating to short-term lease |  | 4388 |  | 5920 |
|  Expense relating to lease of low-value assets that are not short-term lease |  | 10089 |  | 8434 |
|  Expense relating to variable lease payments not included in lease liabilities (included in administrative expenses) |  | 3 |  | 262 |

---

Total cash outflows for lease for the years ended December 31, 2022 and 2021 are W 272,050 million and W 267,864 million, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

16.2 The Group as a Lessor

16.2.1 The Group as a finance lessor

16.2.1.1 Gross investment in the lease and present value of minimum lease payments as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Gross<br>investment in<br>the lease** | **Gross<br>investment in<br>the lease** | **Present value of<br>minimum lease<br>payments** | **Present value of<br>minimum lease<br>payments** | **Gross<br>investment in<br>the lease** | **Gross<br>investment in<br>the lease** | **Present value of<br>minimum lease<br>payments** | **Present value of<br>minimum lease<br>payments** |
|  Up to 1 year | W | 509316 | W | 363085 | W | 559569 | W | 379439 |
|  1-5 years |  | 679773 |  | 516701 |  | 808256 |  | 540219 |
|  Over 5 years |  | 10166 |  | 10167 |  |  |  |  |
|  | W | 1199255 | W | 889953 | W | 1367825 | W | 919658 |

---

16.2.1.2 Unearned finance income on finance lease as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Gross investment in the lease | W | 1199255 | W | 1367825 |
|  Net investment in the lease: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value of minimum lease payments |  | 889953 |  | 919658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value of unguaranteed residual value |  | 232047 |  | 349478 |
|  |  | 1122000 |  | 1269136 |
|  Unearned finance income | W | 77255 | W | 98689 |

---

16.2.2 The Group as an operating lessor

Future minimum lease payments to be received from the non-cancellable lease contracts as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Minimum lease payments to be received: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Up to 1 year | W | 919299 | W | 918640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1-5 years |  | 1576352 |  | 1797551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over 5 years |  | 227946 |  | 299984 |
|  | W | 2723597 | W | 3016175 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**17. Deferred Income Tax Assets and Liabilities** 

17.1 Details of deferred income tax assets and liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Net amount** | **Net amount** |
|  Other provisions | W | 195191 | W |  | W | 195191 |
|  Allowances for credit losses |  | 2151 |  | (12259) |  | (10108) |
|  Impairment losses of property and equipment |  | 6088 |  | (1476) |  | 4612 |
|  Share-based payments |  | 21406 |  |  |  | 21406 |
|  Provisions for acceptances and guarantees |  | 39787 |  |  |  | 39787 |
|  Gains or losses on valuation of derivatives |  | 135985 |  | (207778) |  | (71793) |
|  Present value discount |  | 20247 |  | (2571) |  | 17676 |
|  Gains or losses on fair value hedge |  |  |  | (93833) |  | (93833) |
|  Accrued interest |  |  |  | (168068) |  | (168068) |
|  Deferred loan origination fees and costs |  | 13675 |  | (185723) |  | (172048) |
|  Advanced depreciation provision |  |  |  | (4018) |  | (4018) |
|  Gains or losses on revaluation |  | 315 |  | (292373) |  | (292058) |
|  Investments in subsidiaries and others |  | 48693 |  | (203130) |  | (154437) |
|  Gains or losses on valuation of security investment |  | 1040989 |  | (278334) |  | 762655 |
|  Defined benefit liabilities |  | 497982 |  | (799) |  | 497183 |
|  Accrued expenses |  | 268529 |  |  |  | 268529 |
|  Retirement insurance expense |  |  |  | (583156) |  | (583156) |
|  Adjustments to the prepaid contributions |  |  |  | (27986) |  | (27986) |
|  Derivative-linked securities |  | 10102 |  | (283840) |  | (273738) |
|  Others \* |  | 1224029 |  | (951433) |  | 272596 |
|  |  | 3525169 |  | (3296777) |  | 228392 |
|  Offsetting of deferred income tax assets and liabilities |  | (3274084) |  | 3274084 |  |  |
|  | W | 251085 | W | (22693) | W | 228392 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

17.1 Details of deferred income tax assets and liabilities as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Net amount** | **Net amount** |
|  Other provisions | W | 178027 | W |  | W | 178027 |
|  Allowances for credit losses |  | 28770 |  | (3008) |  | 25762 |
|  Impairment losses of property and equipment |  | 9198 |  | (1833) |  | 7365 |
|  Share-based payments |  | 24249 |  |  |  | 24249 |
|  Provisions for acceptances and guarantees |  | 33091 |  |  |  | 33091 |
|  Gains or losses on valuation of derivatives |  | 41289 |  | (139281) |  | (97992) |
|  Present value discount |  | 14254 |  | (5929) |  | 8325 |
|  Gains or losses on fair value hedge |  |  |  | (14642) |  | (14642) |
|  Accrued interest |  |  |  | (140852) |  | (140852) |
|  Deferred loan origination fees and costs |  | 10473 |  | (223170) |  | (212697) |
|  Advanced depreciation provision |  |  |  | (1703) |  | (1703) |
|  Gains or losses on revaluation |  |  |  | (318539) |  | (318539) |
|  Investments in subsidiaries and others |  | 42547 |  | (159411) |  | (116864) |
|  Gains or losses on valuation of security investment |  | 104168 |  | (1192004) |  | (1087836) |
|  Defined benefit liabilities |  | 608471 |  |  |  | 608471 |
|  Accrued expenses |  | 281983 |  |  |  | 281983 |
|  Retirement insurance expense |  |  |  | (573895) |  | (573895) |
|  Adjustments to the prepaid contributions |  |  |  | (29273) |  | (29273) |
|  Derivative-linked securities |  | 2241 |  | (46895) |  | (44654) |
|  Others \* |  | 1031411 |  | (871625) |  | 159786 |
|  |  | 2410172 |  | (3722060) |  | (1311888) |
|  Offsetting of deferred income tax assets and liabilities |  | (2251079) |  | 2251079 |  |  |
|  | W | 159093 | W | (1470981) | W | (1311888) |

---

\* Includes Purchase Price Allocation ("PPA") amount arising from the acquisition of KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea Ltd.), KB Insurance Co., Ltd. and others. 

17.2 Unrecognized Deferred Income Tax Assets

17.2.1 No deferred income tax assets have been recognized for the deductible temporary differences of W 1,148,089 million associated with investments in subsidiaries and others as of December 31, 2022, because it is not probable that these temporary differences will reverse in the foreseeable future.

17.2.2 No deferred income tax assets have been recognized for the deductible temporary differences of W 96,750 million associated with others as of December 31, 2022, due to the uncertainty that these temporary differences will be realized in the future.

17.3 Unrecognized Deferred Income Tax Liabilities

17.3.1 No deferred income tax liabilities have been recognized for the taxable temporary differences of W 565,035 million associated with investments in subsidiaries and others as of December 31, 2022, due to the following reasons:

• The Group is able to control the timing of the reversal of the temporary differences.

• It is probable that these temporary differences will not reverse in the foreseeable future.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

17.3.2 No deferred income tax liabilities have been recognized as of December 31, 2022, for the taxable temporary differences of W 65,288 million related to the initial recognition of goodwill arising from the merger of Housing and Commercial Bank in 2001.

17.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Decrease** | **Decrease** | **Increase** | **Increase** | **Ending** | **Ending** |
|  **Deductible temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions | W | 649447 | W | 625770 | W | 715694 | W | 739371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowances for credit losses |  | 100178 |  | 99713 |  | 326 |  | 791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment |  | 33445 |  | 22725 |  | 12255 |  | 22975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs |  | 38086 |  | 19556 |  | 33075 |  | 51605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments |  | 85308 |  | 74120 |  | 69589 |  | 80777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for acceptances and guarantees |  | 120332 |  | 120332 |  | 150140 |  | 150140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives |  | 149817 |  | 149817 |  | 513151 |  | 513151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount |  | 51832 |  | 51586 |  | 76153 |  | 76399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | 514340 |  | 59444 |  | 863317 |  | 1318213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment |  | 368079 |  | 368079 |  | 3872016 |  | 3872016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities |  | 2376629 |  | 467454 |  | 118171 |  | 2027346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 1026651 |  | 1026591 |  | 1013263 |  | 1013323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative-linked securities |  | 8147 |  | 8147 |  | 38123 |  | 38123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others <sup>1</sup> |  | 3194675 |  | 2306121 |  | 2950445 |  | 3838999 |
|  |  | 8716966 |  | 5399455 |  | 10425718 |  | 13743229 |
|  **Unrecognized deferred income tax assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions |  | 404 |  |  |  |  |  | 3880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | 372410 |  |  |  |  |  | 1148089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 107067 |  |  |  |  |  | 96750 |
|  |  | 8237085 |  |  |  |  |  | 12494510 |
|  Tax rate (%) |  | 27.5 |  |  |  |  |  | 26.5 |
|  **Total deferred income tax assets** | W | 2410172 |  |  |  |  | W | 3525169 |
|  **Taxable temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge | W | (53243) | W | (53243) | W | (354085) | W | (354085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest |  | (512188) |  | (475840) |  | (597870) |  | (634218) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowances for credit losses |  | (10939) |  | (10939) |  | (46262) |  | (46262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment |  | (3731) |  | (283) |  |  |  | (3448) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs |  | (802237) |  | (802237) |  | (690979) |  | (690979) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advanced depreciation provision |  | (6192) |  | (126) |  | (9097) |  | (15163) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives |  | (506476) |  | (498609) |  | (747674) |  | (755541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount |  | (21469) |  | (21469) |  | (9703) |  | (9703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger |  | (65288) |  |  |  |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on revaluation |  | (1158322) |  | (92944) |  | (37914) |  | (1103292) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | (964530) |  | (87129) |  | (434311) |  | (1311712) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment |  | (4267575) |  | (4263845) |  | (988618) |  | (992348) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities |  |  |  |  |  | (3014) |  | (3014) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement insurance expense |  | (2080645) |  | (324513) |  | (437492) |  | (2193624) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to the prepaid contributions |  | (106446) |  | (106446) |  | (105608) |  | (105608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative-linked securities |  | (170526) |  | (170526) |  | (1071093) |  | (1071093) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others <sup>1</sup> |  | (3095313) |  | (1832328) |  | (2218485) |  | (3481470) |
|  |  | (13825120) |  | (8740477) |  | (7752205) |  | (12836848) |
|  **Unrecognized deferred income tax liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger |  | (65288) |  |  |  |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | (404147) |  |  |  |  |  | (565035) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (446) |  |  |  |  |  | (446) |
|  |  | (13355239) |  |  |  |  |  | (12206079) |
|  Tax rate (%) <sup>2</sup> |  | 27.5 |  |  |  |  |  | 26.5 |
|  **Total deferred income tax liabilities** | W | (3722060) |  |  |  |  | W | (3296777) |

---

<sup>1</sup> Includes PPA amount arising from the acquisition of KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.), KB Insurance Co., Ltd. and others. 

<sup>2</sup> The corporate tax rate was changed due to the amendment of corporate tax law in 2022. Accordingly, the rate of 26.5% has been applied for the deferred tax assets and liabilities expected to be utilized in periods after December 31, 2022. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

17.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Decrease** | **Decrease** | **Increase** | **Increase** | **Ending** | **Ending** |
|  **Deductible temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge | W | 76583 | W | 76583 | W |  | W |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions |  | 544705 |  | 527058 |  | 631800 |  | 649447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowances for credit losses |  | 93749 |  | 69023 |  | 75452 |  | 100178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment |  | 14516 |  | 4361 |  | 23290 |  | 33445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs |  | 26269 |  | 13719 |  | 25536 |  | 38086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments |  | 62085 |  | 55002 |  | 78225 |  | 85308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for acceptances and guarantees |  | 61984 |  | 61984 |  | 120332 |  | 120332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives |  | 76238 |  | 76238 |  | 149817 |  | 149817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount |  | 62029 |  | 61783 |  | 51586 |  | 51832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | 371001 |  | 203470 |  | 346809 |  | 514340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment |  | 251690 |  | 252497 |  | 368886 |  | 368079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities |  | 2299159 |  | 315719 |  | 393189 |  | 2376629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 1220283 |  | 1220283 |  | 1026651 |  | 1026651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative-linked securities |  | 284370 |  | 284370 |  | 8147 |  | 8147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others \* |  | 3648764 |  | 554628 |  | 100539 |  | 3194675 |
|  |  | 9093425 |  | 3776718 |  | 3400259 |  | 8716966 |
|  **Unrecognized deferred income tax assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions |  | 3054 |  |  |  |  |  | 404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | 242875 |  |  |  |  |  | 372410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 75831 |  |  |  |  |  | 107067 |
|  |  | 8771665 |  |  |  |  |  | 8237085 |
|  Tax rate (%) |  | 27.5 |  |  |  |  |  | 27.5 |
|  **Total deferred income tax assets** | W | 2478283 |  |  |  |  | W | 2410172 |
|  **Taxable temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge | W |  | W |  | W | (53243) | W | (53243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest |  | (457626) |  | (442101) |  | (496663) |  | (512188) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowances for credit losses |  | (12203) |  | (12203) |  | (10939) |  | (10939) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment |  | (3935) |  | (204) |  |  |  | (3731) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs |  | (820223) |  | (820223) |  | (802237) |  | (802237) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advanced depreciation provision |  | (6192) |  |  |  |  |  | (6192) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives |  | (812662) |  | (804383) |  | (498197) |  | (506476) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount |  | (10916) |  | (10916) |  | (21469) |  | (21469) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger |  | (65288) |  |  |  |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on revaluation |  | (1162538) |  | (48981) |  | (44765) |  | (1158322) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | (646676) |  | (150480) |  | (468334) |  | (964530) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment |  | (4425922) |  | (2552447) |  | (2394100) |  | (4267575) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement insurance expense |  | (1963061) |  | (228784) |  | (346368) |  | (2080645) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to the prepaid contributions |  | (102768) |  | (102768) |  | (106446) |  | (106446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative-linked securities |  | (112293) |  | (112293) |  | (170526) |  | (170526) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others \* |  | (2706386) |  | (1819652) |  | (2208579) |  | (3095313) |
|  |  | (13308689) |  | (7105435) |  | (7621866) |  | (13825120) |
|  **Unrecognized deferred income tax liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger |  | (65288) |  |  |  |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others |  | (260739) |  |  |  |  |  | (404147) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (1042) |  |  |  |  |  | (446) |
|  |  | (12981620) |  |  |  |  |  | (13355239) |
|  Tax rate (%) |  | 27.5 |  |  |  |  |  | 27.5 |
|  **Total deferred income tax liabilities** | W | (3591024) |  |  |  |  | W | (3722060) |

---

\* Includes PPA amount arising from the acquisition of KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.), KB Insurance Co., Ltd. and others. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**18. Assets Held for Sale and Assets of a Disposal Group Held for Sale** 

18.1 Assets Held for Sale

18.1.1 Details of assets held for sale as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition<br>cost \*** | **Acquisition<br>cost \*** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** | **Fair value less<br>costs to sell** | **Fair value less<br>costs to sell** |
|  Land held for sale | W | 106349 | W | (20395) | W | 85954 | W | 104990 |
|  Buildings held for sale |  | 162973 |  | (38869) |  | 124104 |  | 137706 |
|  Other assets held for sale |  | 4547 |  | (2847) |  | 1700 |  | 1699 |
|  | W | 273869 | W | (62111) | W | 211758 | W | 244395 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition<br>cost \*** | **Acquisition<br>cost \*** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** | **Fair value less<br>costs to sell** | **Fair value less<br>costs to sell** |
|  Land held for sale | W | 115099 | W | (16528) | W | 98571 | W | 135192 |
|  Buildings held for sale |  | 170892 |  | (36923) |  | 133969 |  | 149569 |
|  Other assets held for sale |  | 10142 |  | (5364) |  | 4778 |  | 4778 |
|  | W | 296133 | W | (58815) | W | 237318 | W | 289539 |

---

\* Acquisition cost of buildings held for sale is net of accumulated depreciation amount immediately before the initial classification of the assets as held for sale. 

18.1.2 Valuation techniques and inputs used to measure the fair value of assets held for sale as of December 31, 2022 are as follows:

*(In millions of Korean won)* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Valuation<br>techniques <sup>1</sup>** | **Unobservable inputs<br><sup>2</sup>** | **Estimated range<br>of unobservable<br>inputs (%)** | **Effect of<br>unobservable<br>inputs to fair<br>value** |
|  Land and buildings | W 244,395 | Sales<br>comparison<br>approach<br>model and<br>others | Adjustment index | 0.68 ~ 1.95 | Fair value<br>increases as the<br>adjustment<br>index rises |

---

<sup>1</sup> The appraisal value is adjusted by the adjustment ratio in the event the public sale is unsuccessful.

<sup>2</sup> Adjustment index is calculated using the time factor correction or local factors or individual factors.

Among assets held for sale, real estate was measured by independent appraisers with professional qualifications and recent experience in evaluating similar properties in the area of the property to be assessed. All assets held for sale are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

18.1.3 Changes in accumulated impairment losses of assets held for sale for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Provision** | **Provision** | **Reversal** | **Reversal** | **Others** | **Others** | **Ending** | **Ending** |
|  Accumulated impairment losses of assets held for sale | W | (58815) | W | (7587) | W | 242 | W | 4049 | W | (62111) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Provision** | **Provision** | **Reversal** | **Others** | **Others** | **Ending** | **Ending** |
|  Accumulated impairment losses of assets held for sale | W | (46115) | W | (15490) | W | W | 2790 | W | (58815) |

---

18.1.4 As of December 31, 2022, assets held for sale consist of 11 real estates of closed offices and 438 foreclosure assets on loans of PT Bank KB Bukopin Tbk, which were determined to sell by management, but not yet sold as of December 31, 2022. The remaining 438 assets are being actively marketed.

18.2 Assets of a Disposal Group Held for Sale

The Group decided to sell all of its shares in 498 Seventh KOR Holdco LP held by Hanwha US Equity Strategy Private Real Estate Fund No.3, which is a subsidiary and 498 Seventh KOR LLC held by 498 Seventh KOR Holdco LP. The Group classified assets of 498 Seventh KOR Holdco LP and 498 Seventh KOR LLC as assets of a disposal group held for sale, and classified currency translation differences as accumulated other comprehensive income relating to assets of a disposal group held for sale and has entered into a share transfer contract with JR REIT No.28 in 2021, and completed the sale process in January 2022. Accordingly, there are no assets, liabilities, and accumulated other comprehensive income relating to a disposal group held for sale as of December 31, 2022

18.2.1 There is no liabilities of a disposal group held for sale and details of assets of a disposal group held for sale as of December 31, 2021 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **498 seventh Holdco LP** | **498 seventh Holdco LP** | **498 seventh KOR LLC** | **498 seventh KOR LLC** | **Total** | **Total** |
|  Cash | W | 556 | W | 512 | W | 1068 |
|  Investments in associates |  |  |  | 169424 |  | 169424 |
|  Other assets |  |  |  | 1257 |  | 1257 |
|  | W | 556 | W | 171193 | W | 171749 |

---

There is no impairment loss recognized as for the assets of a disposal group held for sale as of December 31, 2021.

18.2.2 Details of accumulated other comprehensive income relating to assets of a disposal group held for sale as of December 31, 2021 are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** |
| Currency translation differences | W | 7671 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**19. Other Assets** 

19.1 Details of other assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Other financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | W | 6648187 | W | 6732917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income |  | 2507324 |  | 1916667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee deposits |  | 984176 |  | 1035522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement debits |  | 879847 |  | 1014938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 352955 |  | 204940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses |  | (155404) |  | (143205) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Present value discount |  | (7735) |  | (6429) |
|  |  | 11209350 |  | 10755350 |
|  **Other non-financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables |  | 5653 |  | 1764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses |  | 471258 |  | 254990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee deposits |  | 3157 |  | 7268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance assets |  | 3248548 |  | 2924698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Separate account assets |  | 9820673 |  | 10556935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 3697420 |  | 3689340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses |  | (18530) |  | (16172) |
|  |  | 17228179 |  | 17418823 |
|  | W | 28437529 | W | 28174173 |

---

19.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Other**<br>**financial assets** | **Other**<br>**financial assets** | **Other**<br>**non-financial assets** | **Other**<br>**non-financial assets** | **Total** | **Total** |
|  Beginning | W | 143205 | W | 16172 | W | 159377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | (10028) |  | (70) |  | (10098) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision |  | 15224 |  | 2182 |  | 17406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business combination |  | 267 |  |  |  | 267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 6736 |  | 246 |  | 6982 |
|  Ending | W | 155404 | W | 18530 | W | 173934 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Other**<br>**financial assets** | **Other**<br>**financial assets** | **Other**<br>**non-financial assets** | **Other**<br>**non-financial assets** | **Total** | **Total** |
|  Beginning | W | 119762 | W | 17520 | W | 137282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | (3504) |  | (380) |  | (3884) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) |  | 25387 |  | (447) |  | 24940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business combination |  | 227 |  |  |  | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 1333 |  | (521) |  | 812 |
|  Ending | W | 143205 | W | 16172 | W | 159377 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**20. Financial Liabilities at Fair Value through Profit or Loss** 

20.1 Details of financial liabilities at fair value through profit or loss and financial liabilities designated at fair value through profit or loss as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  **Financial liabilities at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowed securities sold | W | 2102537 | W | 2826885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 90673 |  | 112699 |
|  |  | 2193210 |  | 2939584 |
|  **Financial liabilities designated at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative-linked securities |  | 10078394 |  | 9149396 |
|  |  | 10078394 |  | 9149396 |
|  | W | 12271604 | W | 12088980 |

---

20.2 Difference between the amount contractually required to pay at maturity and carrying amount of financial liabilities designated at fair value through profit or loss as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Amount contractually required to pay at maturity | W | 9973340 | W | 8957602 |
|  Carrying amount |  | 10078394 |  | 9149396 |
|  Difference | W | (105054) | W | (191794) |

---

**21. Deposits** 

Details of deposits as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Demand deposits** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits in Korean won | W | 152079457 | W | 180560022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits in foreign currencies |  | 12844385 |  | 15955246 |
|  |  | 164923842 |  | 196515268 |
|  **Time deposits** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits in Korean won |  | 194117692 |  | 155799563 |
|  |  | 194117692 |  | 155799563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits in foreign currencies |  | 23529633 |  | 15594718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged time deposits in foreign currencies |  | (8591) |  | (1319) |
|  |  | 23521042 |  | 15593399 |
|  |  | 217638734 |  | 171392962 |
|  **Certificates of deposits** |  | 6325876 |  | 4115688 |
|  | W | 388888452 | W | 372023918 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**22. Borrowings** 

22.1 Details of borrowings as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  General borrowings | W | 55789869 | W | 40859845 |
|  Bonds sold under repurchase agreements and others |  | 11773494 |  | 14374863 |
|  Call money |  | 4154003 |  | 1677666 |
|  | W | 71717366 | W | 56912374 |

---

22.2 Details of general borrowings as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Lenders** | **Interest rate**<br> **(%) as of<br>December 31,<br>2022** | **December 31,**<br> **2022** | **December 31,**<br> **2021** |
|  **Borrowings in Korean won** | Borrowings from the Bank of Korea | The Bank of Korea | 0.25~1.75 | W8,282,289 | W7,131,019 |
|  | Borrowings from the government | SEMAS and others | 0.00~3.23 | 2670867 | 2683056 |
|  | Borrowings from banks | Shinhan Bank and others | 2.49~6.53 | 914360 | 171482 |
|  | Borrowings from non-banking financial institutions | Korea Securities Finance Corporation and others | 1.39~6.96 | 2189510 | 1935906 |
|  | Other borrowings | The Korea Development Bank and others | 0.00~8.79 | 19806869 | 13292759 |
|  |  |  |  | 33863895 | 25214222 |
|  **Borrowings in foreign currencies** | Due to banks | Bank of China Seoul Branch and others |  | 18266 | 2143 |
|  | Borrowings from banks | Central Bank of Uzbekistan and others | 0.00~14.00 | 16296725 | 13396379 |
|  | Borrowings from other financial institutions | The Export-Import Bank of Korea and others | 5.07~5.89 | 38249 | 24867 |
|  | Other borrowings | Standard Chartered Bank and others | 0.00~8.00 | 5572734 | 2222234 |
|  |  |  |  | 21925974 | 15645623 |
|  |  |  |  | W55,789,869 | W40,859,845 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

22.3 Details of bonds sold under repurchase agreements and others as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Lenders** | **Interest rate (%)**<br>**as of**<br>**December 31,<br>2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Bonds sold under repurchase agreements | Individuals, groups, and corporations | 0.00~9.75 | W | 11769694 | W | 14372761 |
|  Bills sold | Counter sale | 1.55~2.00 |  | 3800 |  | 2102 |
|  |  |  | W | 11773494 | W | 14374863 |

---

22.4 Details of call money as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Lenders** | **Interest rate (%)**<br>**as of**<br>**December 31,<br>2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Call money in Korean won | Samsung Asset Management and others | 2.90~5.05 | W | 2943500 | W | 40000 |
|  Call money in foreign currencies | BANK CIMB NIAGA and others | 0.00~7.80 |  | 1210503 |  | 1637666 |
|  |  |  | W | 4154003 | W | 1677666 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**23. Debentures** 

23.1 Details of debentures as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Interest rate (%)**<br>**as of**<br>**December 31,<br>2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Debentures in Korean won** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | 5.65~8.62 | W | 710 | W | 910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchangeable bonds \* | 0.00 |  | 240000 |  | 240000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures | 2.02~7.86 |  | 5354890 |  | 6241957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 0.99~13.70 |  | 45424094 |  | 44124235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1.54~6.36 |  | 5455000 |  | 6893782 |
|  |  |  | 56474694 |  | 57500884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged debentures in Korean won |  |  | (249629) |  | (79877) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Discount on debentures in Korean won |  |  | (29166) |  | (38976) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Adjustment for exchange right of exchangeable bonds in Korean won |  |  | (8435) |  | (11719) |
|  |  |  | 56187464 |  | 57370312 |
|  **Debentures in foreign currencies** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 2.42~5.98 |  | 2168341 |  | 2749174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 0.05~12.00 |  | 10482244 |  | 7312966 |
|  |  |  | 12650585 |  | 10062140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged debentures in foreign currencies |  |  | (95865) |  | 27953 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Discount on debentures in foreign currencies |  |  | (43981) |  | (30217) |
|  |  |  | 12510739 |  | 10059876 |
|  |  | W | 68698203 | W | 67430188 |

---

\* Fair value of the liability component of exchangeable bonds is calculated by using market interest rate of bonds under the same conditions without the exchange right. The residual amount after deducting the liability component from the issuance amount, represents the value of the exchange right and is recorded in equity. Shares to be exchanged are 5 million treasury shares of KB Financial Group Inc. with the exchange price of W 48,000. Exercise period for exchange right is from the 60th day of the issuance date to 10 days before the maturity date. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

23.2 Changes in debentures based on par value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Issue** | **Issue** | **Repayment** | **Repayment** | **Others** | **Others** | **Ending** | **Ending** |
|  **Debentures in Korean won** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | W | 910 | W |  | W | (200) | W |  | W | 710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchangeable bonds |  | 240000 |  |  |  |  |  |  |  | 240000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures |  | 6241957 |  | 286000 |  | (1173067) |  |  |  | 5354890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures |  | 44124235 |  | 96782415 |  | (95482556) |  |  |  | 45424094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures |  | 6893782 |  | 5350000 |  | (6788782) |  |  |  | 5455000 |
|  |  | 57500884 |  | 102418415 |  | (103444605) |  |  |  | 56474694 |
|  **Debentures in foreign currencies** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures |  | 2749174 |  | 1286016 |  | (2072615) |  | 205766 |  | 2168341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures |  | 7312966 |  | 3940693 |  | (1113993) |  | 342578 |  | 10482244 |
|  |  | 10062140 |  | 5226709 |  | (3186608) |  | 548344 |  | 12650585 |
|  | W | 67563024 | W | 107645124 | W | (106631213) | W | 548344 | W | 69125279 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Issue** | **Issue** | **Repayment** | **Repayment** | **Others** | **Others** | **Ending** | **Ending** |
|  **Debentures in Korean won** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | W | 1960 | W |  | W | (1050) | W |  | W | 910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchangeable bonds |  | 240000 |  |  |  |  |  |  |  | 240000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures |  | 4834407 |  | 1409000 |  | (1450) |  |  |  | 6241957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures |  | 47229619 |  | 110295448 |  | (113400832) |  |  |  | 44124235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures |  | 3190000 |  | 6085064 |  | (2381282) |  |  |  | 6893782 |
|  |  | 55495986 |  | 117789512 |  | (115784614) |  |  |  | 57500884 |
|  **Debentures in foreign currencies** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures |  | 2232938 |  | 810920 |  | (500901) |  | 206217 |  | 2749174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures |  | 5030580 |  | 3195539 |  | (1224070) |  | 310917 |  | 7312966 |
|  |  | 7263518 |  | 4006459 |  | (1724971) |  | 517134 |  | 10062140 |
|  | W | 62759504 | W | 121795971 | W | (117509585) | W | 517134 | W | 67563024 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**24. Provisions** 

24.1 Details of provisions as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Provisions for credit losses of unused loan commitments | W | 342182 | W | 308640 |
|  Provisions for credit losses of acceptances and guarantees |  | 153529 |  | 121104 |
|  Provisions for credit losses of financial guarantee contracts |  | 2955 |  | 5351 |
|  Provisions for restoration costs |  | 159033 |  | 152186 |
|  Others |  | 311120 |  | 221323 |
|  | W | 968819 | W | 808604 |

---

24.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **12-month<br>expected<br>credit**<br>**losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **12-month<br>expected<br>credit<br>losses** | **12-month<br>expected<br>credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **12-month<br>expected<br>credit**<br>**losses** | **Non-**<br>**impaired** | **Non-**<br>**impaired** | **Impaired** | **Impaired** | **12-month<br>expected<br>credit<br>losses** | **12-month<br>expected<br>credit<br>losses** | **Non-**<br>**impaired** | **Non-**<br>**impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 153997 | W | 146619 | W | 8024 | W | 27397 | W | 82170 | W | 11537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  | 41314 |  | (40375) |  | (939) |  | 1144 |  | (1144) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  | (19232) |  | 19848 |  | (616) |  | (355) |  | 1016 |  | (661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment |  | (338) |  | (1705) |  | 2043 |  | (9) |  | (142) |  | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses |  | 2587 |  | 25743 |  | 2738 |  | (1689) |  | 33983 |  | (3262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) |  | 1557 |  | 937 |  | (20) |  | 418 |  | 2841 |  | 134 |
|  Ending | W | 179885 | W | 151067 | W | 11230 | W | 26906 | W | 118724 | W | 7899 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

24.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of unused<br>loan commitments** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **12-month<br>expected<br>credit**<br>**losses** | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | **12-month<br>expected<br>credit<br>losses** | **12-month<br>expected<br>credit<br>losses** | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **12-month<br>expected<br>credit**<br>**losses** | **Non-**<br>**impaired** | **Non-**<br>**impaired** | **Impaired** | **Impaired** | **12-month<br>expected<br>credit<br>losses** | **12-month<br>expected<br>credit<br>losses** | **Non-**<br>**impaired** | **Non-**<br>**impaired** | **Impaired** | **Impaired** |
|  Beginning | W | 162721 | W | 127463 | W | 8569 | W | 33088 | W | 14838 | W | 14328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  | 38831 |  | (37595) |  | (1236) |  | 3958 |  | (203) |  | (3755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  | (27308) |  | 28203 |  | (895) |  | (3973) |  | 3982 |  | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment |  | (457) |  | (1002) |  | 1459 |  | (10) |  | (85) |  | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses |  | (22543) |  | 29145 |  | 127 |  | (7425) |  | 64178 |  | 711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business combination |  | 813 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) |  | 1940 |  | 405 |  |  |  | 1759 |  | (540) |  | 167 |
|  Ending | W | 153997 | W | 146619 | W | 8024 | W | 27397 | W | 82170 | W | 11537 |

---

24.3 Changes in provisions for credit losses of financial guarantee contracts for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Beginning | W | 5351 | W | 6348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) |  | (2396) |  | (830) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  | (167) |
|  Ending | W | 2955 | W | 5351 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

24.4 Changes in provisions for restoration costs for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Beginning | W | 152186 | W | 151696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision |  | 17270 |  | 11350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal |  | 210 |  | (2075) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Used |  | (23916) |  | (15739) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unwinding of discount |  | 2725 |  | 1589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of changes in discount rate |  | 10558 |  | 5365 |
|  Ending | W | 159033 | W | 152186 |

---

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

24.5 Changes in other provisions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Membership<br>rewards<br>program** | **Membership<br>rewards<br>program** | **Dormant<br>accounts** | **Dormant<br>accounts** | **Litigations** | **Litigations** | **Others** | **Others** | **Total** | **Total** |
|  Beginning | W | 22902 | W | 3062 | W | 55168 | W | 140191 | W | 221323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase |  | 84 |  | 2666 |  | 62611 |  | 89179 |  | 154540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease |  | (22940) |  | (2934) |  | (4252) |  | (34617) |  | (64743) |
|  Ending | W | 46 | W | 2794 | W | 113527 | W | 194753 | W | 311120 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Membership<br>rewards<br>program** | **Membership<br>rewards<br>program** | **Dormant<br>accounts** | **Dormant<br>accounts** | **Litigations** | **Litigations** | **Others** | **Others** | **Total** | **Total** |
|  Beginning | W | 19501 | W | 3007 | W | 40517 | W | 132827 | W | 195852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase |  | 77384 |  | 3429 |  | 18670 |  | 71972 |  | 171455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease |  | (73983) |  | (3374) |  | (4190) |  | (64614) |  | (146161) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  | 171 |  | 6 |  | 177 |
|  Ending | W | 22902 | W | 3062 | W | 55168 | W | 140191 | W | 221323 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**25. Net Defined Benefit Liabilities** 

25.1 Defined Benefit Plan

The Group operates defined benefit plans which have the following characteristics:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Group has the obligation to pay the agreed benefits to all its current and former employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Group assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities recognized in the consolidated statement of financial position are calculated by the independent actuary in accordance with actuarial valuation method. The defined benefit obligation is calculated using the projected unit credit method. Assumptions based on market data and historical data such as discount rate, future salary increase rate, mortality, and consumer price index are used which are updated annually.

Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends which may affect net defined benefit liabilities and future payments. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in the period incurred through other comprehensive income.

25.2 Changes in net defined benefit liabilities for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Present value of<br>defined<br>benefit obligation** | **Present value of<br>defined<br>benefit obligation** | **Fair value of**<br>**plan assets** | **Fair value of**<br>**plan assets** | **Net defined<br>benefit<br>liabilities** | **Net defined<br>benefit<br>liabilities** |
|  Beginning | W | 2572517 | W | (2447079) | W | 125438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost |  | 249099 |  |  |  | 249099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Past service cost |  | 3669 |  |  |  | 3669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on settlement |  | (1859) |  |  |  | (1859) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) |  | 65357 |  | (62872) |  | 2485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions |  | 33078 |  |  |  | 33078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions |  | (479797) |  |  |  | (479797) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments |  | 47086 |  |  |  | 47086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  |  |  | 68550 |  | 68550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Group |  |  |  | (400689) |  | (400689) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the employees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (settlement) |  | (78) |  |  |  | (78) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) |  | (234192) |  | 232994 |  | (1198) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Group |  | (43763) |  | 494 |  | (43269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in |  | 13982 |  | (13285) |  | 697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out |  | (13340) |  | 13299 |  | (41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange differences |  | 1218 |  | 69 |  | 1287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of business acquisition and disposal |  | 2635 |  |  |  | 2635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (282) |  |  |  | (282) |
|  Ending \* | W | 2215330 | W | (2608519) | W | (393189) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

25.2 Changes in net defined benefit liabilities for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Present value of<br>defined benefit<br>obligation** | **Present value of<br>defined benefit<br>obligation** | **Fair value of**<br>**plan assets** | **Fair value of**<br>**plan assets** | **Net defined benefit<br>liabilities** | **Net defined benefit<br>liabilities** |
|  Beginning | W | 2491923 | W | (2302953) | W | 188970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost |  | 241448 |  |  |  | 241448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Past service cost |  | 451 |  |  |  | 451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on settlement |  | (4311) |  |  |  | (4311) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) |  | 47481 |  | (44560) |  | 2921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions |  | 27611 |  |  |  | 27611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions |  | 52684 |  |  |  | 52684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments |  | (24592) |  |  |  | (24592) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  |  |  | 9438 |  | 9438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Group |  |  |  | (319601) |  | (319601) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the employees |  |  |  | (17574) |  | (17574) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (settlement) |  | (6961) |  | 6944 |  | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) |  | (221276) |  | 221274 |  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Group |  | (34242) |  |  |  | (34242) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in |  | 9854 |  | (9292) |  | 562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out |  | (9292) |  | 9292 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange differences |  | 1670 |  | (47) |  | 1623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of business acquisition and disposal |  | 21 |  |  |  | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 48 |  |  |  | 48 |
|  Ending \* | W | 2572517 | W | (2447079) | W | 125438 |

---

\* The net defined benefit assets of W 393,189 million is calculated by subtracting W 85,745 million of net defined benefit liabilities from W 478,934 million of net defined benefit assets as of December 31, 2022. The net defined benefit liabilities of W 125,438 million is calculated by subtracting W 100,083 million of net defined benefit assets from W 225,521 million of net defined benefit liabilities as of December 31, 2021. 

25.3 Details of net defined benefit liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Present value of defined benefit obligation | W | 2215330 | W | 2572517 |
|  Fair value of plan assets |  | (2608519) |  | (2447079) |
|  Net defined benefit liabilities | W | (393189) | W | 125438 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

25.4 Details of post-employment benefits recognized in profit or loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Current service cost | W | 249099 | W | 241448 |
|  Past service cost |  | 3669 |  | 451 |
|  Net interest expense on net defined benefit liabilities |  | 2485 |  | 2921 |
|  Gains on settlement |  | (1859) |  | (4311) |
|  Post-employment benefits \* | W | 253394 | W | 240509 |

---

\* Includes post-employment benefits amounting to W 3,383 million recognized as other operating expenses and W 137 million recognized as prepayment for the year ended December 31, 2022, and post-employment benefits amounting to W 3,194 million recognized as other operating expenses for the year ended December 31, 2021. 

25.5 Details of remeasurements of net defined benefit liabilities recognized in other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Remeasurements: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) | W | (68550) | W | (9438) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses |  | 399633 |  | (55703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effect |  | (91150) |  | 18638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange differences |  | (231) |  | 993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements after income tax expense | W | 239702 | W | (45510) |

---

25.6 Details of fair value of plan assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Assets quoted in an<br>active market** | **Assets not quoted<br>in an active market** | **Assets not quoted<br>in an active market** | **Total** | **Total** |
|  Cash and due from financial institutions | W | W | 2571508 | W | 2571508 |
|  Debt securities |  |  | 33434 |  | 33434 |
|  Investment fund |  |  | 3577 |  | 3577 |
|  | W | W | 2608519 | W | 2608519 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Assets quoted in an<br>active market** | **Assets not quoted<br>in an active market** | **Assets not quoted<br>in an active market** | **Total** | **Total** |
|  Cash and due from financial institutions | W | W | 2441324 | W | 2441324 |
|  Derivative instruments |  |  | 3427 |  | 3427 |
|  Investment fund |  |  | 2328 |  | 2328 |
|  | W | W | 2447079 | W | 2447079 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

25.7 Details of significant actuarial assumptions used as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Discount rate (%) | 4.90~5.20 | 1.80~2.70 |
|  Salary increase rate (%) | 0.00~7.00 | 0.00~7.50 |
|  Turnover rate (%) | 0.00~38.60 | 0.00~50.00 |

---

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2019.

25.8 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Changes in<br>assumptions** | **Effect on defined benefit obligation** | **Effect on defined benefit obligation** |
| | **Changes in<br>assumptions** | **Increase in**<br>**assumptions** | **Decrease in**<br>**assumptions** |
|  Discount rate | 0.5%p | 3.12% decrease | 3.31% increase |
|  Salary increase rate | 0.5%p | 3.27% increase | 3.10% decrease |
|  Turnover rate | 0.5%p | 0.14% increase | 0.15% decrease |

---

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the consolidated statement of financial position.

25.9 Expected maturity analysis of undiscounted pension benefit payments (including expected future benefit) as of December 31, 2022, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **Up to**<br>**1 year** | **Up to**<br>**1 year** | **1~2 years** | **1~2 years** | **2~5 years** | **2~5 years** | **5~10 years** | **5~10 years** | **Over**<br>**10 years** | **Over**<br>**10 years** | **Total** | **Total** |
|  Pension benefits \* | W | 211591 | W | 279808 | W | 849878 | W | 1557212 | W | 7553530 | W | 10452019 |

---

\* Amount determined under the promotion compensation type defined contribution plan is excluded. 

The weighted average duration of the defined benefit obligation is 1 ~ 11 years**.**

25.10 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2022 is W 409,391 million.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**26. Other Liabilities** 

Details of other liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Other financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables | W | 11730583 | W | 11175682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid card and debit card payables |  | 35259 |  | 33972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 3950605 |  | 2620819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts liabilities |  | 46467 |  | 52603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits for letter of guarantees and others |  | 1762482 |  | 1093680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement credits |  | 1738489 |  | 5125430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange settlement credits |  | 250138 |  | 169264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to trust accounts |  | 5808446 |  | 7033849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities incurred from agency relationships |  | 513621 |  | 739276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account for agency business |  | 241910 |  | 423798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend payables |  | 3425 |  | 474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  | 592697 |  | 578808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 31124 |  | 446747 |
|  |  | 26705246 |  | 29494402 |
|  **Other non-financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables |  | 400407 |  | 348003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue |  | 759308 |  | 656375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 900141 |  | 956461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue on credit card points |  | 243131 |  | 214053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholding taxes |  | 228119 |  | 164333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Separate account liabilities |  | 10513553 |  | 11071159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 390460 |  | 225696 |
|  |  | 13435119 |  | 13636080 |
|  | W | 40140365 | W | 43130482 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**27. Equity** 

27.1 Share Capital

27.1.1 Details of share capital as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won and in number of shares)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
| Type of share | Ordinary share | Ordinary share | Ordinary share | Ordinary share |
|  Number of authorized shares |  | 1000000000 |  | 1000000000 |
|  Par value per share *(In Korean won)* | W | 5000 | W | 5000 |
|  Number of issued shares |  | 408897068 |  | 415807920 |
|  Share capital \* | W | 2090558 | W | 2090558 |

---

\* Due to the retirement of shares deducted through retained earnings, it is different from the total par value of the shares issued. 

27.1.2 Changes in outstanding shares for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In number of shares)* | **2022** | **2022** | **2021** | **2021** |
|  Beginning |  | 389634335 |  | 389634335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease |  |  |  |  |
|  Ending |  | 389634335 |  | 389634335 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

27.2 Hybrid Securities

Details of hybrid securities classified as equity as of December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hybrid**<br> **securities** | **Issuance date** | **Maturity** | **Interest rate (%)**<br>**as of**<br>**December 31, 2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  The 1-1<sup>st</sup>  | May 2, 2019 | Perpetual bond | 3.23 | W | 349309 | W | 349309 |
|  The 1-2<sup>nd</sup>  | May 2, 2019 | Perpetual bond | 3.44 |  | 49896 |  | 49896 |
|  The 2-1<sup>st</sup>  | May 8, 2020 | Perpetual bond | 3.30 |  | 324099 |  | 324099 |
|  The 2-2<sup>nd</sup>  | May 8, 2020 | Perpetual bond | 3.43 |  | 74812 |  | 74812 |
|  The 3-1<sup>st</sup>  | Jul. 14, 2020 | Perpetual bond | 3.17 |  | 369099 |  | 369099 |
|  The 3-2<sup>nd</sup>  | Jul. 14, 2020 | Perpetual bond | 3.38 |  | 29922 |  | 29922 |
|  The 4-1<sup>st</sup>  | Oct. 20, 2020 | Perpetual bond | 3.00 |  | 433996 |  | 433996 |
|  The 4-2<sup>nd</sup>  | Oct. 20, 2020 | Perpetual bond | 3.28 |  | 64855 |  | 64855 |
|  The 5-1<sup>st</sup>  | Feb. 19, 2021 | Perpetual bond | 2.67 |  | 419071 |  | 419071 |
|  The 5-2<sup>nd</sup>  | Feb. 19, 2021 | Perpetual bond | 2.87 |  | 59862 |  | 59862 |
|  The 5-3<sup>rd</sup>  | Feb. 19, 2021 | Perpetual bond | 3.28 |  | 119727 |  | 119727 |
|  The 6-1<sup>st</sup>  | May 28, 2021 | Perpetual bond | 3.20 |  | 165563 |  | 165563 |
|  The 6-2<sup>nd</sup>  | May 28, 2021 | Perpetual bond | 3.60 |  | 109708 |  | 109708 |
|  The 7-1<sup>st</sup>  | Oct. 8, 2021 | Perpetual bond | 3.57 |  | 208468 |  | 208468 |
|  The 7-2<sup>nd</sup>  | Oct. 8, 2021 | Perpetual bond | 3.80 |  | 59834 |  | 59834 |
|  The 8-1<sup>st</sup>  | Feb. 16, 2022 | Perpetual bond | 4.00 |  | 442970 |  |  |
|  The 8-2<sup>nd</sup>  | Feb. 16, 2022 | Perpetual bond | 4.30 |  | 155626 |  |  |
|  The 9-1<sup>st</sup>  | May 12, 2022 | Perpetual bond | 4.68 |  | 478829 |  |  |
|  The 9-2<sup>nd</sup>  | May 12, 2022 | Perpetual bond | 4.97 |  | 19906 |  |  |
|  The 10-1<sup>st</sup>  | Aug. 26, 2022 | Perpetual bond | 4.90 |  | 407936 |  |  |
|  The 10-2<sup>nd</sup>  | Aug. 26, 2022 | Perpetual bond | 5.15 |  | 70819 |  |  |
|  The 10-3<sup>rd</sup>  | Aug. 26, 2022 | Perpetual bond | 5.30 |  | 19944 |  |  |
|  |  |  |  | W | 4434251 | W | 2838221 |

---

The above hybrid securities are early redeemable by the Group after 5 or 7 or 10 years from the issuance date. On the other hand, hybrid securities of W 873,908 million issued by Kookmin Bank, hybrid securities of W 82,679 million issued by KB Securities Co., Ltd. and hybrid securities of W 49,800 million issued by KB Life Insurance Co., Ltd. are recognized as non-controlling interests and are early redeemable after 5 years from the issuance date and each interest payment date thereafter.

27.3 Capital Surplus

Details of capital surplus as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Paid-in capital in excess of par value | W | 13190274 | W | 13190274 |
|  Losses on sales of treasury shares |  | (481332) |  | (481332) |
|  Other capital surplus |  | 4219856 |  | 4219356 |
|  Consideration for exchange right of exchangeable bonds |  | 11933 |  | 11933 |
|  | W | 16940731 | W | 16940231 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

27.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Remeasurements of net defined benefit liabilities | W | (88768) | W | (328392) |
|  Currency translation differences |  | 253815 |  | 96534 |
|  Gains(losses) on financial instruments at fair value through other comprehensive income |  | (2629451) |  | 918927 |
|  Share of other comprehensive loss of associates and joint ventures |  | (3342) |  | (2980) |
|  Gains(Losses) on cash flow hedging instruments |  | 23741 |  | (7733) |
|  Losses on hedging instruments of net investments in foreign operations |  | (114743) |  | (35658) |
|  Other comprehensive loss arising from separate account |  | (214735) |  | (55116) |
|  Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |  | 41075 |  | 2208 |
|  Gains on overlay adjustment |  | 19355 |  | 459484 |
|  Assets of a disposal group held for sale |  |  |  | 7671 |
|  | W | (2713053) | W | 1054945 |

---

27.5 Retained Earnings

27.5.1 Details of retained earnings as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Legal reserves <sup>1</sup> | W | 839235 | W | 695347 |
|  Voluntary reserves |  | 982000 |  | 982000 |
|  Unappropriated retained earnings <sup>2</sup> |  | 26625278 |  | 23995468 |
|  | W | 28446513 | W | 25672815 |

---

<sup>1</sup> With respect to the allocation of net profit earned in a fiscal term, the Parent Company must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 53 of the Financial Holding Company Act. This reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce accumulated deficit. 

<sup>2</sup> The regulatory reserve for credit losses the Group appropriated in retained earnings is W 4,355,734 million and W 4,116,579 million for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

27.5.2 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 26 through 28 of Regulations on Supervision of Financial Holding Companies.

27.5.2.1 Details of regulatory reserve for credit losses as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Regulatory reserve for credit losses attributable to: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders of the Parent Company | W | 4355734 | W | 4116579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | 89214 |  | 67042 |
|  | W | 4444948 | W | 4183621 |

---

27.5.2.2 Regulatory reserve for credit losses estimated to be appropriated and adjusted profit after provision of regulatory reserve for credit losses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won, except for earnings per share)* | **2022** | **2022** | **2021** | **2021** |
|  Provision of regulatory reserve for credit losses | W | 239155 | W | 529140 |
|  Adjusted profit after provision of regulatory reserve for credit losses <sup>1,2</sup> |  | 4029271 |  | 3808865 |
|  Adjusted basic earnings per share after provision of regulatory reserve for credit losses <sup>1</sup> |  | 10341 |  | 9775 |
|  Adjusted diluted earnings per share after provision of regulatory reserve for credit losses <sup>1</sup> |  | 10106 |  | 9562 |

---

<sup>1</sup> Adjusted profit after provision of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision of regulatory reserve for credit losses before tax to the net profit attributable to shareholders of the Parent Company.

<sup>2</sup> After deducting dividends on hybrid securities

27.6 Treasury Shares

Changes in treasury shares for the years ended December 31, 2022 and 2021, are as follows:

*(In millions of Korean won and in number of shares)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Acquisition** | **Disposal** | **Disposal** | **Ending** | **Ending** |
|  Number of treasury shares \* |  | 26173585 |  |  | (6910852) |  | 19262733 |
|  Carrying amount | W | 1136188 | W | W | (300000) | W | 836188 |

---

*(In millions of Korean won and in number of shares)* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Acquisition** | **Disposal** | **Ending** | **Ending** |
|  Number of treasury shares \* |  | 26173585 |  |  |  | 26173585 |
|  Carrying amount | W | 1136188 | W | W | W | 1136188 |

---

\* 5 million treasury shares are deposited at the Korea Securities Depository for the exchange of exchangeable bonds.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**28. Net Interest Income** 

Details of interest income, interest expense, and net interest income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Interest income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at fair value through profit or loss | W | 3186 | W | 1723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through profit or loss |  | 860271 |  | 579128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through profit or loss |  | 12933 |  | 9537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through other comprehensive income |  | 1079548 |  | 784980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through other comprehensive income |  | 10612 |  | 4618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at amortized cost |  | 157913 |  | 66375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 1120608 |  | 765656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 17191116 |  | 12745780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 352331 |  | 253081 |
|  |  | 20788518 |  | 15210878 |
|  **Interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 4536373 |  | 2218556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 1291380 |  | 510385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 1640773 |  | 1169708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 207058 |  | 82657 |
|  |  | 7675584 |  | 3981306 |
|  **Net interest income** | W | 13112934 | W | 11229572 |

---

Interest income recognized on impaired loans is W 53,215 million and W 52,638 million for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**29. Net Fee and Commission Income** 

Details of fee and commission income, fee and commission expense, and net fee and commission income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Fee and commission income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banking activity fees | W | 180749 | W | 178412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending activity fees |  | 80700 |  | 82184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit card and debit card related fees |  | 1491666 |  | 1526911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agent activity fees |  | 243740 |  | 205206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust and other fiduciary fees |  | 337171 |  | 408834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund management related fees |  | 130629 |  | 178090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees fees |  | 66827 |  | 49782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency related fees |  | 285380 |  | 245299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities agency fees |  | 124771 |  | 174709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other business account commission on consignment |  | 36211 |  | 39178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions received on securities business |  | 628449 |  | 881407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease fees |  | 1004670 |  | 897983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 510557 |  | 455611 |
|  |  | 5121520 |  | 5323606 |
|  **Fee and commission expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading activity related fees \* |  | 44200 |  | 54857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending activity fees |  | 42086 |  | 42981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit card and debit card related fees |  | 815252 |  | 831724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outsourcing related fees |  | 255899 |  | 210480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency related fees |  | 75078 |  | 51931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 567373 |  | 506050 |
|  |  | 1799888 |  | 1698023 |
|  **Net fee and commission income** | W | 3321632 | W | 3625583 |

---

\* Fees from financial instruments at fair value through profit or loss

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**30. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss** 

30.1 Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments at fair value through profit or loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Gains on financial instruments at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | W | 2045436 | W | 1804112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 494723 |  | 733823 |
|  |  | 2540159 |  | 2537935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate |  | 11772927 |  | 4820712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  | 15020553 |  | 7492806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock or stock index |  | 1983900 |  | 1603501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit |  | 78638 |  | 20147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity |  | 33576 |  | 21864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 101097 |  | 145879 |
|  |  | 28990691 |  | 14104909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss |  | 114525 |  | 72585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial instruments |  | 252 |  | 6753 |
|  |  | 31645627 |  | 16722182 |
|  **Losses on financial instruments at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 2733891 |  | 1280960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 546036 |  | 426431 |
|  |  | 3279927 |  | 1707391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate |  | 10747221 |  | 4669893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  | 15160772 |  | 7422604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock or stock index |  | 2482044 |  | 1604027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit |  | 68324 |  | 14051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity |  | 30167 |  | 14815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 323704 |  | 175411 |
|  |  | 28812232 |  | 13900801 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss |  | 63571 |  | 80790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial instruments |  | 205 |  | 6839 |
|  |  | 32155935 |  | 15695821 |
|  **Net gains(losses) on financial instruments at fair value through profit or loss** | W | (510308) | W | 1026361 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

30.2 Net Gains or Losses on Financial Instruments Designated at Fair Value through Profit or Loss

Net gains or losses on financial instruments designated at fair value through profit or loss include gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments designated at fair value through profit or loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Gains on financial instruments designated at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss | W | 1186908 | W | 623929 |
|  |  | 1186908 |  | 623929 |
|  **Losses on financial instruments designated at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at fair value through profit or loss |  | 429243 |  | 654986 |
|  |  | 429243 |  | 654986 |
|  **Net gains(losses) on financial instruments designated at fair value through profit or loss** | W | 757665 | W | (31057) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**31. Net Other Operating Income and Expenses** 

Details of other operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Other operating income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on financial instruments at fair value through other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption of financial instruments at fair value through other comprehensive income | W | 24 | W | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of financial instruments at fair value through other comprehensive income |  | 24735 |  | 126710 |
|  |  | 24759 |  | 126712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on financial assets at amortized cost: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sale of loans measured at amortized cost |  | 83552 |  | 136620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption of securities measured at amortized cost |  |  |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of securities measured at amortized cost |  | 110 |  | 41 |
|  |  | 83662 |  | 136787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on loans measured at fair value through other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sale of loans measured at fair value through other comprehensive income |  |  |  | 226 |
|  |  |  |  | 226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on hedge accounting |  | 858305 |  | 386398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on foreign exchange transactions |  | 11514706 |  | 3878089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income |  | 36675 |  | 33805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 498412 |  | 367177 |
|  |  | 13016519 |  | 4929194 |
|  **Other operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on financial instruments at fair value through other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption of financial instruments at fair value through other comprehensive income |  | 3049 |  | 2172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of financial instruments at fair value through other comprehensive income |  | 258505 |  | 222512 |
|  |  | 261554 |  | 224684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on financial assets at amortized cost: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on sale of loans measured at amortized cost |  | 78089 |  | 14669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption of securities measured at amortized cost |  |  |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of securities measured at amortized cost |  |  |  | 2 |
|  |  | 78089 |  | 14677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on hedge accounting |  | 877512 |  | 473091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on foreign exchange transactions |  | 11173168 |  | 3570783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit insurance fee |  | 598548 |  | 550677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit guarantee fund fee |  | 283912 |  | 263297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation expenses of operating lease assets |  | 682783 |  | 602908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 1426744 |  | 1152644 |
|  |  | 15382310 |  | 6852761 |
|  **Net other operating expenses** | W | (2365791) | W | (1923567) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**32. General and Administrative Expenses** 

32.1 Details of general and administrative expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Expenses related to employee** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - salaries | W | 3070840 | W | 3007439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - others |  | 988778 |  | 927665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined benefit plans |  | 249874 |  | 237315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined contribution plans |  | 45655 |  | 37731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Termination benefits |  | 319794 |  | 322970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments |  | 58275 |  | 101935 |
|  |  | 4733216 |  | 4635055 |
|  **Depreciation and amortization** |  | 878841 |  | 850614 |
|  **Other general and administrative expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental expense |  | 121577 |  | 112902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax and dues |  | 310853 |  | 268383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communication |  | 63871 |  | 60221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity and utilities |  | 35987 |  | 36565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Publication |  | 11991 |  | 13417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repairs and maintenance |  | 56221 |  | 53218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicle |  | 19815 |  | 16901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Travel |  | 23585 |  | 13271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Training |  | 36890 |  | 34056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service fees |  | 264854 |  | 260298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electronic data processing expenses |  | 397315 |  | 314511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising |  | 227991 |  | 210187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 354795 |  | 321254 |
|  |  | 1925745 |  | 1715184 |
|  | W | 7537802 | W | 7200853 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2 Share-based Payments

32.2.1 Stock grants

The Group changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

32.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* | **Grant date** | **Number of<br>granted shares <sup>1</sup>** | **Vesting conditions <sup>2</sup>**  |
|  **KB Financial Group Inc.** | **KB Financial Group Inc.** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 27 | Jun. 16, 2020 | 184 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 28 | Nov. 21, 2020 | 68135 | Services fulfillment, market performance <sup>3</sup> 35%, and non-market performance <sup>5</sup> 65% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 29 | Jan. 1, 2021 | 79840 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 30 | Apr. 1, 2021 | 3069 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 33 | Jan. 01, 2022 | 62991 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 34 | Feb. 01, 2022 | 654 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 35 | May 27, 2022 | 6126 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2015 |  | 4243 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2016 |  | 3533 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2017 |  | 1127 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2018 |  | 1766 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2019 |  | 7598 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2020 |  | 27956 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2021 |  | 27204 | Satisfied |
|  |  | 294426 |  |
|  **Kookmin Bank** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 80 | Mar. 1, 2020 | 7982 | Services fulfillment, market performance <sup>3</sup> 30~50%, and non-market performance <sup>4</sup> 50~70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 81 | Jan. 1, 2021 | 139783 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 83 | Apr. 1, 2021 | 15278 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 85 | Jan. 1, 2022 | 292777 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100%<br> Services fulfillment, market performance <sup>3</sup> 30%, and EPS & Asset Quality <sup>6</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 86 | Feb. 1, 2022 | 1525 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 87 | Mar. 1, 2022 | 2599 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2022, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* | **Grant date** | **Number of<br>granted shares <sup>1</sup>** | **Vesting conditions <sup>2</sup>**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 88 | Mar. 14, 2022 | 5884 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 89 | May 26, 2022 | 2363 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 90 | Jul. 18, 2022 | 4131 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 91 | Aug. 24, 2022 | 7277 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2016 |  | 2426 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2017 |  | 4582 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2018 |  | 2287 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2019 |  | 32756 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2020 |  | 53502 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2021 |  | 156939 | Satisfied |
|  |  | 732091 |  |
|  **Other subsidiaries** | **Other subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2010 |  | 106 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2011 |  | 146 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2012 |  | 420 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2013 |  | 544 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2014 |  | 1028 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 |  | 2374 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 |  | 3749 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 |  | 14006 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 |  | 26572 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 |  | 42273 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 |  | 165810 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 |  | 501365 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 |  | 249267 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
|  |  |  | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
|  |  | 1007660 | Services fulfillment,<br> market performance <sup>3</sup> 0~50%,<br> and non-market performance <sup>4</sup> 50~100% |
|  |  | 2034177 |  |

---

<sup>1</sup> Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of December 31, 2022 (Deferred grants are residual shares vested as of December 31, 2022). 

<sup>2</sup> Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

<sup>3</sup> Relative TSR (Total Shareholder Return): [(Fair value at the end of the contract - Fair value at the beginning of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract 

<sup>4</sup> Performance results of company and employee

<sup>5</sup> EPS (Earnings Per Share), Asset Quality, HCROI (Human Capital Return on Investment), Profit from non-banking segments

<sup>6</sup> EPS, Asset Quality

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2.1.2 Details of stock grants linked to short-term performance as of December 31, 2022, are as follows:

---

| | | |
|:---|:---|:---|
| *(In number of shares)* | **Estimated number of**<br>**vested shares \*** | **Vesting**<br> **conditions** |
|  **KB Financial Group Inc.** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3725 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 4223 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 1401 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 760 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 9354 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 22586 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 35497 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 46898 | Proportional to service period |
|  **Kookmin Bank** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 1292 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 4875 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 1998 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 2109 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 41737 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 89888 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 130331 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 134402 | Proportional to service period |
|  **Other subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 5762 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 25831 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 46223 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 99594 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 243130 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 433210 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 610167 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 324412 | Proportional to service period |
|  | 2319405 |  |

---

\* Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In Korean won)* | **Risk-free<br>rate (%)** | **Fair value (market<br>performance condition)** | **Fair value (non-market<br>performance condition)** |
|  **Linked to long-term performance** | **Linked to long-term performance** |  |  |
|  (KB Financial Group Inc.) | (KB Financial Group Inc.) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 27 | 3.78 |  | 43,157~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 28 | 3.78 | 35,289~39,662 | 41,704~46,873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 29 | 3.78 | 40,757~48,322 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 30 | 3.78 | 38,805~43,583 | 41,548~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 33 | 3.78 | 37,409~45,666 | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 34 | 3.78 | 35,486~39,839 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 35 | 3.78 | 38,247~42,939 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2015 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2016 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2017 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2018 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2019 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2020 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2021 | 3.78 |  | 44,859~50,973 |
|  (Kookmin Bank) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 80 | 3.78 | 43,157~50,973 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 81 | 3.78 | 35,905~41,289 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 83 | 3.78 | 38,660~43,583 | 41,548~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 85 | 3.78 | 33,668~37,813 | 41,548~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 86 | 3.78 | 35,486~39,839 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 87 | 3.78 | 38,957~46,013 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 88 | 3.78 | 37,288~41,862 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 89 | 3.78 | 40,943~48,358 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 90 | 3.78 | 39,554~44,405 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 91 | 3.78 | 37,840~42,481 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2016 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2017 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2018 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2019 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2020 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2021 | 3.78 |  | 44,859~50,973 |
|  (Other subsidiaries) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2010 | 3.78 |  | 44859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2011 | 3.78 |  | 44859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2012 | 3.78 |  | 44,859~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2013 | 3.78 |  | 44,859~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2014 | 3.78 |  | 46663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 44,859~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 41,548~61,294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 39,958~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 38,393~56,379 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2022, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In Korean won)* | **Risk-free<br>rate (%)** | **Fair value (market<br>performance condition)** | **Fair value (non-market<br>performance condition)** |
|  **Linked to long-term performance** | **Linked to long-term performance** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 | 43,157~50,973 | 39,958~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 | 39,042~50,651 | 41,548~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 | 35,286~49,647 | 39,958~62,269 |
|  **Linked to short-term performance** | **Linked to short-term performance** |  |  |
|  (KB Financial Group Inc.) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 38,393~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 |  | 44,859~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 |  | 43,157~50,973 |
|  (Kookmin Bank) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 44,859~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 0~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 45,096~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 |  | 46,663~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 |  | 44,859~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 |  | 39,958~46,663 |
|  (Other subsidiaries) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 39,958~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 38,393~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 38,393~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 |  | 41,548~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 |  | 39,958~56,379 |

---

The Group uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

32.2.1.4 The accrued expenses for share-based payments related to stock grants are W 186,908 million and W 193,023 million as of December 31, 2022 and 2021, respectively, and the compensation costs amounting to W 58,340 million and W 101,897 million were recognized for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2.2 Mileage stock

32.2.2.1 Details of mileage stock as of December 31, 2022, are as follows:

*(In number of shares)* 

---

| | | | |
|:---|:---|:---|:---|
| **Grant date** | **Number of**<br>**granted shares <sup>1</sup>** | **Expected exercise<br>period (years) <sup>2</sup>** | **Remaining shares** |
|  *Stock granted in 2019* |  |  |  |
|  Nov. 1, 2019 | 119 | 0.00 | 48 |
|  Nov. 8, 2019 | 14 | 0.00 | 6 |
|  Dec. 6, 2019 | 84 | 0.00 | 50 |
|  Dec. 5, 2019 | 56 | 0.00 | 41 |
|  Dec. 31, 2019 | 87 | 0.00 | 43 |
|  *Stock granted in 2020* |  |  |  |
|  Jan. 18, 2020 | 28645 | 0.00~0.05 | 15541 |
|  May 12, 2020 | 46 | 0.00~0.36 | 43 |
|  Jun. 30, 2020 | 206 | 0.00~0.50 | 147 |
|  Aug. 26, 2020 | 40 | 0.00~0.65 | 27 |
|  Oct. 29, 2020 | 160 | 0.00~0.83 | 107 |
|  Nov. 6, 2020 | 45 | 0.00~0.85 | 37 |
|  Nov. 30, 2020 | 35 | 0.00~0.92 | 34 |
|  Dec. 2, 2020 | 57 | 0.00~0.92 | 44 |
|  Dec. 4, 2020 | 154 | 0.00~0.93 | 110 |
|  Dec. 30, 2020 | 88 | 0.00~1.00 | 64 |
|  *Stock granted in 2021* |  |  |  |
|  Jan. 15, 2021 | 28156 | 0.00~1.04 | 18712 |
|  Apr. 5, 2021 | 89 | 0.00~1.26 | 53 |
|  Jul. 1, 2021 | 54 | 0.00~1.50 | 54 |
|  Jul. 2, 2021 | 11 | 0.00~1.50 | 11 |
|  Jul. 27, 2021 | 70 | 0.00~1.57 | 63 |
|  Nov. 1, 2021 | 71 | 0.00~1.84 | 71 |
|  Nov. 16, 2021 | 53 | 0.00~1.88 | 48 |
|  Dec. 6, 2021 | 87 | 0.00~1.93 | 87 |
|  Dec. 3, 2021 | 91 | 0.00~1.92 | 89 |
|  Dec. 30, 2021 | 76 | 0.00~2.00 | 76 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2.2.1 Details of mileage stock as of December 31, 2022, are as follows: (cont'd)

*(In number of shares)* 

---

| | | | |
|:---|:---|:---|:---|
| **Grant date** | **Number of**<br>**granted shares <sup>1</sup>** | **Expected exercise<br>period (years) <sup>2</sup>** | **Remaining shares** |
|  *Stock granted in 2022* |  |  |  |
|  Jan. 14, 2022 | 20909 | 0.00~2.04 | 19864 |
|  Apr. 4, 2022 | 65 | 0.00~2.26 | 65 |
|  Apr. 19, 2022 | 33 | 0.00~2.30 | 33 |
|  Jul. 1, 2022 | 62 | 0.00~2.50 | 62 |
|  Aug. 3, 2022 | 62 | 0.00~2.59 | 62 |
|  Aug. 9, 2022 | 80 | 0.00~2.61 | 76 |
|  Oct. 19, 2022 | 55 | 0.00~2.80 | 55 |
|  Nov. 1, 2022 | 177 | 0.00~2.84 | 177 |
|  Dec. 1, 2022 | 49 | 0.00~2.92 | 49 |
|  Dec. 12, 2022 | 114 | 0.00~2.95 | 114 |
|  Dec. 6, 2022 | 88 | 0.00~2.93 | 88 |
|  Dec. 2, 2022 | 42 | 0.00~2.92 | 42 |
|  Dec. 15, 2022 | 42 | 0.00~2.96 | 42 |
|  Dec. 30, 2022 | 114 | 0.00~3.00 | 114 |
|  | 80486 |  | 56449 |

---

<sup>1</sup> Mileage stock is exercisable for two years after one year from the grant date at the closing price of the end of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a one-year grace period.

<sup>2</sup> Assessed based on the stock price as of December 31, 2022. These shares are vested immediately at grant date.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

32.2.2.2 The accrued expenses for share-based payments related to mileage stock are W 2,738 million and W 3,465 million as of December 31, 2022 and 2021, respectively. The compensation costs amounting to W 870 million and W 2,116 million were recognized as expenses for the years ended December 31, 2022 and 2021, respectively.

32.2.3 Long-term share-based payments

The Group calculates the short-term performance bonus of executives of KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) based on the result of performance evaluation as of the grant date and defers the bonus for three years and pays it in cash reflecting the stock price of KB Financial Group Inc. at that time.

32.2.3.1 Details of long-term share-based payments as of December 31, 2022, are as follows:

*(In number of shares)* 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Grant date** | **Grant date** | **Vested shares** | **Vested shares** | **Expected exercise period (years)** | **Expected exercise period (years)** | **Vesting condition** | **Vesting condition** |
|  Granted in 2020 |  | 2020 |  | 13402 |  | 1.00 |  | Services<br>fulfillment |

---

32.2.3.2 Long-term share-based payments are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In Korean won)* | **Risk-free rate<br>(%)** | **Fair value**<br>**(market performance<br>condition)** | **Fair value**<br>**(non-market**<br>**performance condition)** |
|  Granted in 2020 | 3.78 | – | 46663 |

---

The Group uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

32.2.3.3 The accrued expenses for long-term share-based payments are W 625 million and W 690 million as of December 31, 2022 and 2021, respectively. The compensation costs amounting to W 65 million and W 38 million were recognized as expenses for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**33. Net Other Non-Operating Income and Expenses** 

Details of other non-operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Other non-operating income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of property and equipment | W | 155177 | W | 9045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income |  | 26176 |  | 34791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on a bargain purchase |  |  |  | 288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 284060 |  | 81210 |
|  |  | 465413 |  | 125334 |
|  **Other non-operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of property and equipment |  | 2164 |  | 6552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Donation |  | 94771 |  | 103647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restoration costs |  | 2750 |  | 3436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management cost for written-off loans |  | 4296 |  | 4054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 175903 |  | 117182 |
|  |  | 279884 |  | 234871 |
|  **Net other non-operating income (expenses)** | W | 185529 | W | (109537) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**34. Income Tax Expense** 

34.1 Details of income tax expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Income tax payable** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax expense | W | 1972104 | W | 1571947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments of income tax of prior years recognized in current tax |  | (122385) |  | 7952 |
|  |  | 1849719 |  | 1579899 |
|  **Changes in deferred income tax assets and liabilities** \* |  | (1540280) |  | 214660 |
|  **Income tax recognized directly in equity and others** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  | (91150) |  | 18638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  | (15059) |  | (15675) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains or losses on financial assets at fair value through other comprehensive income |  | 1291023 |  | (71421) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income or loss of associates and joint ventures |  | 44 |  | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on cash flow hedging instruments |  | (26930) |  | (21534) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on hedging instruments of net investments in foreign operations |  | 24936 |  | 25599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income or loss arising from separate account |  | 56765 |  | 24206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |  | (14009) |  | (5202) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains or losses on overlay adjustment |  | 167741 |  | (46834) |
|  |  | 1393361 |  | (92230) |
|  **Others** |  | (80413) |  | (5104) |
|  **Income tax expense** | W | 1622387 | W | 1697225 |

---

\* Due to amendments of tax laws at the end of 2022, the effect of corporate tax rate change is reflected in deferred income tax assets and liabilities that are expected to be realized after 2023. (Corporate tax rates after the amendments: 10% for tax base W 200 million or less, 21% for tax base over W 200 million to W 20,000 million, 23.2% for tax base over W 20,000 million to W 300,000 million, 26.5% for tax base over W 300 billion) 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

34.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
|  | **Tax rate (%)** | **Amount** | **Amount** | **Tax rate (%)** | **Amount** | **Amount** |
|  **Profit before income tax expense** |  | W | 5795626 |  | W | 6081606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax at the applicable tax rate \* | 27.32 |  | 1583435 | 27.33 |  | 1662080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-taxable income | (1.21) |  | (70105) | (0.67) |  | (40708) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible expenses | 0.39 |  | 22661 | 0.42 |  | 25739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credit and tax exemption | (0.04) |  | (2380) | (0.01) |  | (361) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Temporary difference for which no deferred tax is recognized | 2.34 |  | 135694 | 0.08 |  | 5065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in recognition and measurement of deferred tax | 0.85 |  | 49262 | 0.10 |  | 5997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax refund for tax of prior years | (2.39) |  | (138314) | (0.23) |  | (13953) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense of overseas branches | 0.54 |  | 31270 | 0.31 |  | 18571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax rate change effect | 0.19 |  | 10726 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 0.00 |  | 138 | 0.57 |  | 34795 |
|  **Average effective tax rate and income tax expense** | 27.99 | W | 1622387 | 27.91 | W | 1697225 |

---

\* Applicable income tax rate for W 200 million and below is 11%, for over W 200 million to W 20 billion is 22%, for over W 20 billion to W 300 billion is 24.2% and for over W 300 billion is 27.5% for the years ended December 31, 2022 and 2021. 

**35. Dividends** 

The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2021, amounting to W 853,299 million (W 2,190 per share) were declared at the annual general shareholders' meeting on March 25, 2022 and paid in April 11, 2022. According to the resolution of the board of directors on April 22, 2022, the quarterly dividend amounting to W 194,817 million (W 500 per share) with dividend record date of March 31, 2022 were paid on May 9, 2022; according to the resolution of the board of directors on July 21, 2022, the quarterly dividend amounting to W 194,817 million (W 500 per share) with dividend record date of June 30, 2022 were paid on August 9, 2022; and according to the resolution of the board of directors on October 25, 2022, the quarterly dividend amounting to W 194,817 million (W 500 per share) with dividend record date of September 30, 2022 were paid on November 10, 2022. The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2022, amounting to W 564,970 million (W 1,450 per share) is to be proposed at the general shareholders' meeting scheduled for March 24, 2023. The Group's consolidated financial statements as of and for the year ended December 31, 2022, do not reflect this dividend payable.

Meanwhile, the annual dividends and quarterly dividends paid in 2021 were W 689,653 million (W 1,770 per share) and W 292,226 million (W 750 per share), respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**36. Accumulated Other Comprehensive Income (Loss)** 

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Changes**<br>**except for<br>reclassifi-**<br>**cation** | **Changes**<br>**except for<br>reclassifi-**<br>**cation** | **Reclassification<br>to profit or loss** | **Reclassification<br>to profit or loss** | **Transfer**<br>**within equity** | **Transfer**<br>**within equity** | **Tax effect** | **Tax effect** | **Ending** | **Ending** |
|  Remeasurements of net defined benefit liabilities | W | (328392) | W | 330774 | W |  | W |  | W | (91150) | W | (88768) |
|  Currency translation differences |  | 96534 |  | 172340 |  |  |  |  |  | (15059) |  | 253815 |
|  Gains (losses) on financial instruments at fair value through other comprehensive income |  | 918927 |  | (4830635) |  | 326437 |  | (335203) |  | 1291023 |  | (2629451) |
|  Share of other comprehensive income (loss) of associates and joint ventures |  | (2980) |  | (406) |  |  |  |  |  | 44 |  | (3342) |
|  Gains (losses) on cash flow hedging instruments |  | (7733) |  | 71692 |  | (13288) |  |  |  | (26930) |  | 23741 |
|  Gains (losses) on hedging instruments of net investments in foreign operations |  | (35658) |  | (104021) |  |  |  |  |  | 24936 |  | (114743) |
|  Other comprehensive income (loss) arising from separate account |  | (55116) |  | (225426) |  | 9042 |  |  |  | 56765 |  | (214735) |
|  Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |  | 2208 |  | 52876 |  |  |  |  |  | (14009) |  | 41075 |
|  Gains (losses) on overlay adjustment |  | 459484 |  | (526085) |  | (81785) |  |  |  | 167741 |  | 19355 |
|  Assets of a disposal group held for sale |  | 7671 |  | (7671) |  |  |  |  |  |  |  |  |
|  | W | 1054945 | W | (5066562) | W | 240406 | W | (335203) | W | 1393361 | W | (2713053) |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**36. Accumulated Other Comprehensive Income (Loss) (cont'd)** 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Changes<br>except for<br>reclassifi-**<br>**cation** | **Changes<br>except for<br>reclassifi-**<br>**cation** | **Reclassification<br>to profit or loss** | **Reclassification<br>to profit or loss** | **Transfer**<br>**within equity** | **Transfer**<br>**within equity** | **Tax effect** | **Tax effect** | **Ending** | **Ending** |
|  Remeasurements of net defined benefit liabilities | W | (282650) | W | (64380) | W |  | W |  | W | 18638 | W | (328392) |
|  Currency translation differences |  | (131113) |  | 248998 |  | 1995 |  | (7671) |  | (15675) |  | 96534 |
|  Gains on financial instruments at fair value through other comprehensive income |  | 717230 |  | (62043) |  | 20537 |  | 314624 |  | (71421) |  | 918927 |
|  Share of other comprehensive income (loss) of associates and joint ventures |  | (3529) |  | 3276 |  | (2720) |  |  |  | (7) |  | (2980) |
|  Losses on cash flow hedging instruments |  | (28597) |  | 95478 |  | (53080) |  |  |  | (21534) |  | (7733) |
|  Gains (losses) on hedging instruments of net investments in foreign operations |  | 22277 |  | (88729) |  | 5195 |  |  |  | 25599 |  | (35658) |
|  Other comprehensive income (loss) arising from separate account |  | 8698 |  | (81601) |  | (6419) |  |  |  | 24206 |  | (55116) |
|  Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |  | (11507) |  | 18917 |  |  |  |  |  | (5202) |  | 2208 |
|  Gains on overlay adjustment |  | 339202 |  | 257574 |  | (90458) |  |  |  | (46834) |  | 459484 |
|  Assets of a disposal group held for sale |  |  |  |  |  |  |  | 7671 |  |  |  | 7671 |
|  | W | 630011 | W | 327490 | W | (124950) | W | 314624 | W | (92230) | W | 1054945 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**37. Earnings per Share** 

37.1 Basic Earnings per Share

Basic earnings per share is calculated by dividing profit attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding.

37.1.1 Weighted average number of ordinary shares outstanding

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In number of shares)* | **2022** | **2022** | **2021** | **2021** |
|  | **Number of**<br>**shares** | **Accumulated<br>number of shares** | **Number of**<br>**shares** | **Accumulated<br>number of shares** |
|  Number of issued ordinary shares | 408897068 | 150138929728 | 415807920 | 152769890800 |
|  Number of treasury shares \* | (19262733) | (7922397453) | (26173585) | (9553358525) |
|  Average number of ordinary shares outstanding | 389634335 | 142216532275 | 389634335 | 142216532275 |
|  Number of days |  | 365 |  | 365 |
|  Weighted average number of ordinary shares outstanding |  | 389634335 |  | 389634335 |

---

\* The number of treasury shares have excluded the initial redemption of treasury shares from February 14, 2022, and the 2nd redemption from August 1, 2022.

37.1.2 Basic earnings per share

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won and in number of shares)* | **2022** | **2022** | **2021** | **2021** |
|  Profit attributable to shareholders of the Parent Company | W | 4394828402454 | W | 4409543288213 |
|  Deduction: Dividends on hybrid securities |  | (126402175000) |  | (71537500000) |
|  Profit attributable to ordinary equity holders of the Parent Company (A) |  | 4268426227454 |  | 4338005788213 |
|  Weighted average number of ordinary shares outstanding (B) |  | 389634335 |  | 389634335 |
|  Basic earnings per share (A/B) | W | 10955 | W | 11134 |

---

37.2 Diluted Earnings per Share

Diluted earnings per share is calculated through increasing the weighted average number of ordinary shares outstanding by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Group has dilutive potential ordinary shares such as stock grants and ordinary share exchange right of exchangeable bonds.

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price for the year) based on the monetary value of stock grants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the settlement of stock grants.

Exchangeable bonds are included in potential ordinary shares from the exercisable date of the exchange right, and interest expense after tax for the period is added to profit for diluted earnings per share.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

37.2.1 Adjusted profit for diluted earnings per share

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Profit attributable to shareholders of the Parent Company | W | 4394828402454 | W | 4409543288213 |
|  Deduction: Dividends on hybrid securities |  | (126402175000) |  | (71537500000) |
|  Profit attributable to ordinary equity holders of the Parent Company |  | 4268426227454 |  | 4338005788213 |
|  Adjustments: Interest expense on exchangeable bonds |  | 2380953816 |  | 2347186871 |
|  Adjusted profit for diluted earnings per share | W | 4270807181270 | W | 4340352975084 |

---

37.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share

---

| | | |
|:---|:---|:---|
| *(In number of shares)* | **2022** | **2021** |
|  Weighted average number of ordinary shares outstanding | 389634335 | 389634335 |
|  Adjustment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock grants | 4306711 | 3945208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchangeable bonds | 5000000 | 5000000 |
|  Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share | 398941046 | 398579543 |

---

37.2.3 Diluted earnings per share

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won and in number of shares)* | **2022** | **2022** | **2021** | **2021** |
|  Adjusted profit for diluted earnings per share | W | 4270807181270 | W | 4340352975084 |
|  Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share |  | 398941046 |  | 398579543 |
|  Diluted earnings per share | W | 10705 | W | 10890 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**38. Insurance Contracts** 

38.1 Insurance Assets

38.1.1 Details of deferred acquisition costs included in other assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Non-life insurance | W | 1430461 | W | 1230375 |
|  Life insurance |  | 479700 |  | 345831 |
|  | W | 1910161 | W | 1576206 |

---

38.1.2 Changes in deferred acquisition costs included in other assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Increase** | **Increase** | **Amortization** | **Amortization** | **Ending** | **Ending** |
|  Non-life insurance | W | 1230375 | W | 1060160 | W | (860074) | W | 1430461 |
|  Life insurance |  | 345831 |  | 292579 |  | (158710) |  | 479700 |
|  | W | 1576206 | W | 1352739 | W | (1018784) | W | 1910161 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Increase** | **Increase** | **Amortization** | **Amortization** | **Ending** | **Ending** |
|  Non-life insurance | W | 965683 | W | 965735 | W | (701043) | W | 1230375 |
|  Life insurance |  | 205289 |  | 258653 |  | (118111) |  | 345831 |
|  | W | 1170972 | W | 1224388 | W | (819154) | W | 1576206 |

---

38.1.3 Details of reinsurance assets included in other assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Non-life insurance | Reserve for outstanding claims: |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General insurance | W | 869492 | W | 879936 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Automobile insurance |  | 15136 |  | 16989 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term insurance |  | 187619 |  | 178531 |
|  | Unearned premium reserve: |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General insurance |  | 262817 |  | 262020 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Automobile insurance |  | 1078 |  | 5575 |
|  |  |  | 1336142 |  | 1343051 |
|  Life insurance | Reserve for outstanding claims |  | 2300 |  | 2169 |
|  | Unearned premium reserve |  | 950 |  | 985 |
|  |  |  | 3250 |  | 3154 |
|  Others | Reserve for outstanding claims |  | 2462 |  | 2103 |
|  | Unearned premium reserve |  | 587 |  | 620 |
|  |  |  | 3049 |  | 2723 |
|  Total reinsurance assets | Total reinsurance assets |  | 1342441 |  | 1348928 |
|  Less: Allowances for impairment losses | Less: Allowances for impairment losses |  | (4054) |  | (436) |
|  |  | W | 1338387 | W | 1348492 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.1.4 Changes in reinsurance assets included in other assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  |  | **Beginning** | **Beginning** | **Net increase<br>(decrease)** | **Net increase<br>(decrease)** | **Ending** | **Ending** |
|  Non-life insurance | Reserve for outstanding claims: |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General insurance | W | 879936 | W | (10444) | W | 869492 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Automobile insurance |  | 16989 |  | (1853) |  | 15136 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term insurance |  | 178531 |  | 9088 |  | 187619 |
|  | Unearned premium reserve: |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General insurance |  | 262020 |  | 797 |  | 262817 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Automobile insurance |  | 5575 |  | (4497) |  | 1078 |
|  |  |  | 1343051 |  | (6909) |  | 1336142 |
|  Life insurance | Reserve for outstanding claims |  | 2169 |  | 131 |  | 2300 |
|  | Unearned premium reserve |  | 985 |  | (35) |  | 950 |
|  |  |  | 3154 |  | 96 |  | 3250 |
|  Others | Reserve for outstanding claims |  | 2103 |  | 359 |  | 2462 |
|  | Unearned premium reserve |  | 620 |  | (33) |  | 587 |
|  |  |  | 2723 |  | 326 |  | 3049 |
|  Total reinsurance assets | Total reinsurance assets |  | 1348928 |  | (6487) |  | 1342441 |
|  Less: Allowances for impairment losses | Less: Allowances for impairment losses |  | (436) |  | (3618) |  | (4054) |
|  |  | W | 1348492 | W | (10105) | W | 1338387 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  |  | **Beginning** | **Beginning** | **Net increase<br>(decrease)** | **Net increase<br>(decrease)** | **Ending** | **Ending** |
|  Non-life insurance | Reserve for outstanding claims: |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General insurance | W | 732579 | W | 147357 | W | 879936 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Automobile insurance |  | 14916 |  | 2073 |  | 16989 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term insurance |  | 156234 |  | 22297 |  | 178531 |
|  | Unearned premium reserve: |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General insurance |  | 285634 |  | (23614) |  | 262020 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Automobile insurance |  | 10870 |  | (5295) |  | 5575 |
|  |  |  | 1200233 |  | 142818 |  | 1343051 |
|  Life insurance | Reserve for outstanding claims |  | 2081 |  | 88 |  | 2169 |
|  | Unearned premium reserve |  | 951 |  | 34 |  | 985 |
|  |  |  | 3032 |  | 122 |  | 3154 |
|  Others | Reserve for outstanding claims |  | 2427 |  | (324) |  | 2103 |
|  | Unearned premium reserve |  | 895 |  | (275) |  | 620 |
|  |  |  | 3322 |  | (599) |  | 2723 |
|  Total reinsurance assets | Total reinsurance assets |  | 1206587 |  | 142341 |  | 1348928 |
|  Less: Allowances for impairment losses | Less: Allowances for impairment losses |  | (879) |  | 443 |  | (436) |
|  |  | W | 1205708 | W | 142784 | W | 1348492 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.2 Insurance Liabilities

38.2.1 Details of insurance liabilities by insurance type as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Non-life<br>insurance** | **Non-life<br>insurance** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Total** | **Total** |
|  Premium reserve \* | W | 26765973 | W | 24613169 | W |  | W | 51379142 |
|  Reserve for outstanding claims |  | 3531159 |  | 225226 |  | 2460 |  | 3758845 |
|  Unearned premium reserve |  | 2038077 |  | 7112 |  | 588 |  | 2045777 |
|  Reserve for dividend to policyholders |  | 132076 |  | 39233 |  |  |  | 171309 |
|  Reserve for distribution of earnings to policyholders |  | 63821 |  | 3866 |  |  |  | 67687 |
|  Reserve for loss compensation on participating insurance |  | 24070 |  | 5392 |  |  |  | 29462 |
|  Guarantee reserve |  |  |  | 778081 |  |  |  | 778081 |
|  | W | 32555176 | W | 25672079 | W | 3048 | W | 58230303 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Non-life<br>insurance** | **Non-life<br>insurance** | **Life**<br>**insurance** | **Life**<br>**insurance** | **Others** | **Others** | **Total** | **Total** |
|  Premium reserve \* | W | 26086004 | W | 24363509 | W |  | W | 50449513 |
|  Reserve for outstanding claims |  | 3378427 |  | 259848 |  | 2102 |  | 3640377 |
|  Unearned premium reserve |  | 1909327 |  | 9358 |  | 622 |  | 1919307 |
|  Reserve for dividend to policyholders |  | 122025 |  | 40960 |  |  |  | 162985 |
|  Reserve for distribution of earnings to policyholders |  | 63093 |  | 4857 |  |  |  | 67950 |
|  Reserve for loss compensation on participating insurance |  | 24790 |  | 6108 |  |  |  | 30898 |
|  Guarantee reserve |  |  |  | 894906 |  |  |  | 894906 |
|  | W | 31583666 | W | 25579546 | W | 2724 | W | 57165936 |

---

\* Includes negative VOBA amounting to W 2,111,541 million and W 2,390,985 million as of December 31, 2022 and 2021, respectively. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.2.2 Changes in insurance liabilities for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* |  | **Beginning** | **Beginning** | **Net increase<br>(decrease) <sup>1</sup>** | **Net increase<br>(decrease) <sup>1</sup>** | **Ending** | **Ending** |
|  Non-life insurance | General insurance | W | 1791284 | W | 68690 | W | 1859974 |
|  | Automobile insurance |  | 2025565 |  | 145331 |  | 2170896 |
|  | Long-term insurance |  | 27735736 |  | 778634 |  | 28514370 |
|  | Long-term investment contract |  | 31081 |  | (21147) |  | 9934 |
|  Life insurance | Pure endowment insurance |  | 8007348 |  | (840495) |  | 7166853 |
|  | Death insurance |  | 16516417 |  | 816485 |  | 17332902 |
|  | Endowment insurance |  | 1045337 |  | 118328 |  | 1163665 |
|  | Group insurance and others <sup>2</sup> |  | 10445 |  | (1785) |  | 8660 |
|  Others |  |  | 2723 |  | 326 |  | 3049 |
|  |  | W | 57165936 | W | 1064367 | W | 58230303 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* |  | **Beginning** | **Beginning** | **Net increase<br>(decrease) <sup>1</sup>** | **Net increase<br>(decrease) <sup>1</sup>** | **Ending** | **Ending** |
|  Non-life insurance | General insurance | W | 1568741 | W | 222543 | W | 1791284 |
|  | Automobile insurance |  | 1897872 |  | 127693 |  | 2025565 |
|  | Long-term insurance |  | 26362479 |  | 1373257 |  | 27735736 |
|  | Long-term investment contract |  | 106853 |  | (75772) |  | 31081 |
|  Life insurance | Pure endowment insurance |  | 7570349 |  | 436999 |  | 8007348 |
|  | Death insurance |  | 15706051 |  | 810366 |  | 16516417 |
|  | Endowment insurance |  | 1188299 |  | (142962) |  | 1045337 |
|  | Group insurance and others <sup>2</sup> |  | 11330 |  | (885) |  | 10445 |
|  Others |  |  | 3322 |  | (599) |  | 2723 |
|  |  | W | 54415296 | W | 2750640 | W | 57165936 |

---

<sup>1</sup> Includes exchange differences effect and decrease in liabilities related to investment contracts.

<sup>2</sup> Includes reserve for distribution of earnings to policyholders and reserve for loss compensation on participating insurance.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.3 Liability Adequacy Test

According to the revision of the Detailed Regulations on Supervision of Insurance Business, the criteria for the insurance liability adequacy test were changed, and the Group accounted for the change as a change in accounting policy because it provided reliable and more relevant information about current estimates of future cash flows. This change in accounting policy has no effect on the consolidated financial statements, but comparative notes have been restated.

38.3.1 KB Insurance Co., Ltd.

Assumptions and calculation basis for the insurance liability adequacy test of KB Insurance Co., Ltd. as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Assumptions (%)** | **Assumptions (%)** | **Calculation basis** |
|  | **December 31, 2022** | **December 31, 2021** | **Calculation basis** |
|  **Long-term insurance** | **Long-term insurance** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discount rate | -2.84 ~ 21.14 | -3.39 ~ 19.54 | Calculated by applying an interest rate scenario which is a risk-free rate scenario adjusted by liquidity premium presented by director of the Financial Supervisory Service |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense ratio | 5.93 | 6.25 | Calculated using future expense plan based on the recent one-year experience statistics |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lapse ratio | 1.37 ~ 32.92 | 1.49 ~ 35.98 | Calculated based on the recent five-year experience statistics |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk ratio | 8.2 ~ 1,214.3 | 7.4 ~ 1,143.8 | Calculated by ratio of insurance claim payments to risk premiums based on the recent seven-year experience statistics |
|  **General insurance** | **General insurance** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lapse ratio | 0.86 | 0.9 | Ratio of surrender value to direct insurance premiums by type of contracts for the preceding five years |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales cost ratio | 6.31 | 6.3 | Ratio of sales cost to direct insurance premiums by type of contracts for the preceding year (applicable only to unpaid premiums) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintenance cost ratio | 9.12 | 10.5 | Ratio of maintenance cost to earned premiums by type of contracts for the preceding year |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claim survey cost ratio | 4.54 | 4.7 | Ratio of claim survey cost to insurance claim payments by type of contracts for the preceding three years |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss ratio | 82.27 | 78.5 | Ratio of final loss incurred to earned premiums by type of contracts for the preceding five years |
|  **Automobile insurance** | **Automobile insurance** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lapse ratio | 4.7 | 4.7 | Ratio of surrender value to direct insurance premiums by type of contracts for the preceding five years |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales cost ratio | 7.5 | 7.6 | Ratio of sales cost to direct insurance premiums by type of contracts for the preceding year (applicable only to unpaid premiums) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintenance cost ratio | 8.5 | 8.8 | Ratio of maintenance cost to earned premiums by type of collaterals for the preceding year |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claim survey cost ratio | 8.1 | 8.1 | Ratio of claim survey cost to insurance claim payments by type of collaterals for the preceding three years |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss ratio | 77.6 | 78.2 | Ratio of final loss incurred to earned premiums by type of collaterals for the preceding five years |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.3.1 KB Insurance Co., Ltd. (cont'd)

Results of the insurance liability adequacy test of KB Insurance Co., Ltd. as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Recognized<br>liabilities \*** | **Recognized<br>liabilities \*** | **Estimated adequate<br>liabilities** | **Estimated adequate<br>liabilities** | **Surplus**<br>**(shortfall)** | **Surplus**<br>**(shortfall)** |
|  General insurance | W | 570608 | W | 537204 | W | 33404 |
|  Automobile insurance |  | 1491245 |  | 1395407 |  | 95838 |
|  Long-term insurance |  | 22309067 |  | 8538565 |  | 13770502 |
|  | W | 24370920 | W | 10471176 | W | 13899744 |
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Recognized<br>liabilities \*** | **Recognized<br>liabilities \*** | **Estimated adequate<br>liabilities** | **Estimated adequate<br>liabilities** | **Surplus**<br>**(shortfall)** | **Surplus**<br>**(shortfall)** |
|  General insurance | W | 465812 | W | 437555 | W | 28257 |
|  Automobile insurance |  | 1401462 |  | 1322026 |  | 79436 |
|  Long-term insurance |  | 21812939 |  | 14277162 |  | 7535777 |
|  | W | 23680213 | W | 16036743 | W | 7643470 |

---

\* In the case of long-term insurance, premium reserve and unearned premium reserve are recognized; the premium reserve is the amount of subtracting deferred acquisition costs and insurance contract loans from the net insurance premium reserve in accordance with Article 6-3 of the Regulations on Supervision of Insurance Business. 

As a result of the liability adequacy test, the Group did not set additional reserve as it shows net surplus. As such, there was no amount recorded as a result of the liability adequacy test as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.3.2 KB Life Insurance Co., Ltd.

Assumptions and calculation basis for the insurance liability adequacy test of KB Life Insurance Co., Ltd. as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Assumptions (%)** | **Assumptions (%)** | |
|  | **December 31, 2022** | **December 31, 2021** | <br>**Calculation**<br> **basis** |
|  Lapse ratio | 0 ~ 78.60 | 0 ~ 65.57 | Ratio of canceled premiums to premiums by product group, method of payment, channel, and elapsed period, based on the recent five-year experience statistics |
|  Loss ratio | 20 ~ 162 | 22 ~ 162 | Ratio of number of accidents to the number of holding contracts, by collateral, gender, and elapsed period, based on the recent seven-year experience statistics |
|  Discount rate | -2.84 ~ 21.14 | -3.39 ~ 19.54 | Estimated investment yield based on the interest rate scenario provided by the Financial Supervisory Service adjusted by risk spread |

---

Indirect costs included in administration expenses were calculated by applying the unit cost based on the experience statistics of the actual executed costs over the past year according to the expense allocations standard set by the Detailed Regulations on Supervision of Insurance Business. Direct costs such as acquisition cost were calculated based on estimates of future expense according to the Group's internal policies such as solicitation commission policy.

The insurance liability adequacy test of KB Life Insurance Co., Ltd. is performed by contract type such as interest rate type and dividend type. Results of the insurance liability adequacy test as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* |  | **Recognized<br>liabilities** | **Recognized<br>liabilities** | **Estimated adequate<br>liabilities** | **Estimated adequate<br>liabilities** | **Surplus**<br>**(shortfall)** | **Surplus**<br>**(shortfall)** |
|  Fixed interest type | Participating | W | 30720 | W | 43889 | W | (13169) |
|  | Non-participating |  | 1238004 |  | (6488) |  | 1244492 |
|  Variable interest type | Participating |  | 814350 |  | 817087 |  | (2737) |
|  | Non-participating |  | 4826517 |  | 4219110 |  | 607407 |
|  Variable type |  |  | (45907) |  | (103354) |  | 57447 |
|  |  | W | 6863684 | W | 4970244 | W | 1893440 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* |  | **Recognized<br>liabilities** | **Recognized<br>liabilities** | **Estimated adequate<br>liabilities** | **Estimated adequate<br>liabilities** | **Surplus**<br>**(shortfall)** | **Surplus**<br>**(shortfall)** |
|  Fixed interest type | Participating | W | 30828 | W | 51443 | W | (20615) |
|  | Non-participating |  | 664569 |  | 5876 |  | 658693 |
|  Variable interest type | Participating |  | 896754 |  | 913067 |  | (16313) |
|  | Non-participating |  | 5754214 |  | 5263775 |  | 490439 |
|  Variable type |  |  | (7822) |  | (101418) |  | 93596 |
|  |  | W | 7338543 | W | 6132743 | W | 1205800 |

---

As a result of the liability adequacy test, the Group did not set additional reserve as it shows net surplus. As such, there was no amount recorded as a result of the liability adequacy test as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.3.3 KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea Ltd.)

Assumptions and calculation basis for the insurance liability adequacy test of KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea Ltd.) as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Assumptions (%)** | **Assumptions (%)** | |
|  | **December 31, 2022** | **December 31, 2021** | <br>**Calculation**<br> **basis** |
|  Discount rate | -2.84 ~ 21.14 | -3.39 ~ 19.54 | Calculated by applying an interest rate scenario which is a risk-free rate scenario adjusted by liquidity premium presented by the Financial Supervisory Service |
|  Lapse ratio | 1.3 ~ 25 | 1 ~ 26 | Calculated based on the amount of insurance coverage by elapsed period based on the recent five-year experience statistics |
|  Risk ratio | 21 ~ 982 | 28 ~ 545 | Calculated by ratio of insurance claim payments to risk premiums by elapsed period based on the recent five-year experience statistics |

---

The insurance liability adequacy test of KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea Ltd.) is performed by contract type such as interest rate type and dividend type. Results of the insurance liability adequacy test as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Surplus (shortfall)** | **Surplus (shortfall)** | **Surplus (shortfall)** | **Surplus (shortfall)** |
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Fixed interest type | Participating | W | 1177 | W | (7687) |
|  | Non-participating |  | 4484049 |  | 787200 |
|  Variable interest type | Non-participating |  | 185675 |  | 128963 |
|  Variable type |  |  | 1265066 |  | 1278620 |
|  |  | W | 5935967 | W | 2187096 |

---

As a result of the liability adequacy test, the Group did not set additional reserve as it shows net surplus. As such, there was no amount recorded as a result of the liability adequacy test as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.4 Net Insurance Income

Details of insurance income and insurance expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Insurance income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premium income | W | 15765939 | W | 14684383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance income |  | 1029943 |  | 990437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of policy reserve |  |  |  | 599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Separate account income |  | 331281 |  | 286967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from changes in reinsurance assets |  |  |  | 135159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance income |  | 9679 |  | 10313 |
|  |  | 17136842 |  | 16107858 |
|  **Insurance expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance claims paid |  | 6325021 |  | 5777899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend expenses |  | 15370 |  | 14038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refunds of surrender value |  | 5556410 |  | 4032209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance expenses |  | 1268711 |  | 1163056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for policy reserve |  | 1046300 |  | 2761735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Separate account expenses |  | 264517 |  | 112180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administration expenses |  | 715317 |  | 644947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs |  | 1018784 |  | 819154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses from changes in reinsurance assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claim survey expenses paid |  | 73803 |  | 60234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance expenses |  | 156096 |  | 165695 |
|  |  | 16440329 |  | 15551147 |
|  **Net insurance income** | W | 696513 | W | 556711 |

---

38.5 Risk Management of KB Insurance Co., Ltd.

38.5.1 Overview of insurance risk

Insurance risk is the risk that arises from a primary operation of insurance companies that is associated with underwriting of insurance contracts and payment of claims and is classified as insurance price risk and reserves risk. Insurance price risk is the risk of loss that might occur when the actual risk exceeds the expected risk ratio or expected expense ratio set at the time of calculating insurance premium, that is, the possibility of loss due to the differences between actual payment of claims and premiums received from policyholders. Reserve risk means the risk of not being able to cover actual claim payments in the future due to a lack of reserve accumulated at the time of assessment.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.2 Purposes, policies, and procedures to manage risk arising from insurance contracts

The risks associated with insurance contracts that the Group faces are insurance actuarial risk and underwriting risk. Each risk occurs due to insurance contract's pricing and conditions of underwriting. In order to minimize the possibility of acquiring a bad contract, the Group has established and operated detailed underwriting guidelines and underwriting procedures by insurance type that specify detailed underwriting conditions according to the type of risk covered through pre-analysis of insured property. In addition, the Group is making efforts to reduce insurance actuarial risk by follow-up measures such as adjustments of premium rate, changes of sales conditions, termination of selling specific product, development of new product, and others through comparing and analyzing the expected risk level at the date of pricing and actual risk level after the acceptance. The Group has prepared a process to minimize management risk other than insurance actuarial risk and underwriting risk by operating a committee that shares opinions on underwriting policies and premium rate policies and decides important matters.

In addition, by establishing a reinsurance operating strategy according to the reinsurance operating standards, the Group is preparing for the possibility of incurring high claim expenses at once due to unexpected catastrophic accidents while maintaining an appropriate holding level considering the solvency of the Group. The Group supports the protection and stable interests of policyholders, and comprehensively manages risks to maximize corporate value in the mid to long term.

38.5.3 Exposure to insurance price risk

According to Risk Based Capital ("RBC") standard, exposure to insurance price risk is measured as the risk retained premium for all insurance contracts based on the track record for one year up to reference date of calculation. The risk retained premium is measured by adding assumed risk reinsurance premium to direct risk premium and deducting ceded risk reinsurance premium.

The Group's exposure to insurance price risk as of December 31, 2022 and 2021, as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Direct**<br>**risk premium** | **Direct**<br>**risk premium** | **Assumed risk<br>reinsurance<br>premium** | **Assumed risk<br>reinsurance<br>premium** | **Ceded risk<br>reinsurance<br>premium** | **Ceded risk<br>reinsurance<br>premium** | **Total** | **Total** |
|  General | W | 1287819 | W | 121296 | W | (698981) | W | 710134 |
|  Automobile |  | 2684544 |  |  |  | (4788) |  | 2679756 |
|  Long-term |  | 3495031 |  |  |  | (494563) |  | 3000468 |
|  | W | 7467394 | W | 121296 | W | (1198332) | W | 6390358 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Direct**<br>**risk premium** | **Direct**<br>**risk premium** | **Assumed risk<br>reinsurance<br>premium** | **Assumed risk<br>reinsurance<br>premium** | **Ceded risk<br>reinsurance<br>premium** | **Ceded risk<br>reinsurance<br>premium** | **Total** | **Total** |
|  General | W | 1161427 | W | 93191 | W | (630231) | W | 624387 |
|  Automobile |  | 2538277 |  |  |  | (13683) |  | 2524594 |
|  Long-term |  | 3128821 |  |  |  | (462261) |  | 2666560 |
|  | W | 6828525 | W | 93191 | W | (1106175) | W | 5815541 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.4 Concentration of insurance risk

The Group is selling various insurance contracts such as general non-life insurances (fire, maritime, injury, technology, liability, package, title, guarantee, and other special type insurances), automobile insurances (for private use, for business use, for commercial use, bicycle, and others), long-term insurances (long-term non-life, property damage, injury, driver, savings, illness, nursing, and pension), and others. The Group's risk is distributed through reinsurance, joint acceptance, and sales of diversified insurance products. In addition, insurances such as storm and flood insurance, which have a very low probability of occurrence but cover severe levels of risk, are controlled through acceptance limit and joint acquisition.

38.5.5 Claims development tables

The Group verifies and evaluates the adequacy of reserve for outstanding claims for general, automobile, and long-term insurance with two or more methods, including paid loss development trend and incurred loss development trend. If the individually estimated claims are insufficient, the Group recognizes additional reserves. Claims development tables as of December 31, 2022 and 2021, are as follows:

**<2022>** 

***General Insurance***

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** |
| **Accident year** | **After 1 year** | **After 1 year** | **After 2 years** | **After 2 years** | **After 3 years** | **After 3 years** | **After 4 years** | **After 4 years** | **After 5 years** | **After 5 years** |
|  **Estimate of gross ultimate claims (A)** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 | W | 200968 | W | 241474 | W | 246871 | W | 250935 | W | 251815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 220043 |  | 266489 |  | 270815 |  | 271047 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 235365 |  | 274260 |  | 277957 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 296348 |  | 347715 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022.1.1 ~ 2022.12.31 |  | 336344 |  |  |  |  |  |  |  |  |
|  |  | 1289068 |  | 1129938 |  | 795643 |  | 521982 |  | 251815 |
|  **Gross cumulative claim payments (B)** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 153770 |  | 217955 |  | 235900 |  | 240518 |  | 245732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 185645 |  | 247945 |  | 260774 |  | 264952 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 169859 |  | 246805 |  | 257784 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 237065 |  | 317089 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022.1.1 ~ 2022.12.31 |  | 240982 |  |  |  |  |  |  |  |  |
|  |  | 987321 |  | 1029794 |  | 754458 |  | 505470 |  | 245732 |
|  **Difference (A-B)** | W | 301747 | W | 100144 | W | 41185 | W | 16512 | W | 6083 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.5 Claims development tables (cont'd)

***Automobile Insurance***

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* <br> **Accident year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** |
| *(In millions of Korean won)* <br> **Accident year** | **After 1**<br>**year** | **After 1**<br>**year** | **After 2**<br>**years** | **After 2**<br>**years** | **After 3**<br>**years** | **After 3**<br>**years** | **After 4**<br>**years** | **After 4**<br>**years** | **After 5**<br>**years** | **After 5**<br>**years** | **After 6**<br>**years** | **After 6**<br>**years** | **After 7**<br>**years** | **After 7**<br>**years** |
|  **Estimate of gross ultimate claims (A)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 | W | 1276939 | W | 1281381 | W | 1287728 | W | 1294735 | W | 1299964 | W | 1309221 | W | 1316456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1342998 |  | 1348828 |  | 1358867 |  | 1368016 |  | 1371619 |  | 1377499 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1468784 |  | 1471807 |  | 1481509 |  | 1488890 |  | 1498384 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1591793 |  | 1620609 |  | 1635704 |  | 1649928 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1624341 |  | 1632626 |  | 1639325 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 1750508 |  | 1757801 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022.1.1 ~ 2022.12.31 |  | 1858395 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 10913758 |  | 9113052 |  | 7403133 |  | 5801569 |  | 4169967 |  | 2686720 |  | 1316456 |
|  **Gross cumulative claim payments(B)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 |  | 1052830 |  | 1235655 |  | 1264651 |  | 1282346 |  | 1288754 |  | 1291380 |  | 1293473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1104158 |  | 1306235 |  | 1335962 |  | 1350174 |  | 1357903 |  | 1361232 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1224820 |  | 1428973 |  | 1456532 |  | 1471379 |  | 1476781 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1332849 |  | 1570194 |  | 1598956 |  | 1614015 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1353799 |  | 1570730 |  | 1595586 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 1445877 |  | 1684092 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022.1.1 ~ 2022.12.31 |  | 1516007 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 9030340 |  | 8795879 |  | 7251687 |  | 5717914 |  | 4123438 |  | 2652612 |  | 1293473 |
|  **Difference (A-B)** | W | 1883418 | W | 317173 | W | 151446 | W | 83655 | W | 46529 | W | 34108 | W | 22983 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.5 Claims development tables (cont'd)

***Long-term Insurance***

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* <br> **Accident year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** |
| *(In millions of Korean won)* <br> **Accident year** | **After 1**<br>**year** | **After 1**<br>**year** | **After 2**<br>**years** | **After 2**<br>**years** | **After 3**<br>**years** | **After 3**<br>**years** | **After 4**<br>**years** | **After 4**<br>**years** | **After 5**<br>**years** | **After 5**<br>**years** | **After 6**<br>**years** | **After 6**<br>**years** | **After 7**<br>**years** | **After 7**<br>**years** |
|  **Estimate of gross ultimate claims (A)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 | W | 1064743 | W | 1437574 | W | 1485839 | W | 1500403 | W | 1506889 | W | 1510197 | W | 1511728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1184224 |  | 1614904 |  | 1670929 |  | 1689768 |  | 1695477 |  | 1698804 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1372706 |  | 1881046 |  | 1941497 |  | 1965983 |  | 1972727 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1626481 |  | 2229830 |  | 2297861 |  | 2324246 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1818316 |  | 2442633 |  | 2514577 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 2124582 |  | 2841110 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022.1.1 ~ 2022.12.31 |  | 2277455 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 11468507 |  | 12447097 |  | 9910703 |  | 7480400 |  | 5175093 |  | 3209001 |  | 1511728 |
|  **Gross cumulative claim payments(B)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 |  | 1017244 |  | 1424948 |  | 1477414 |  | 1496556 |  | 1503841 |  | 1507284 |  | 1509334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1130868 |  | 1599227 |  | 1662978 |  | 1683997 |  | 1692323 |  | 1696284 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1319613 |  | 1868434 |  | 1933543 |  | 1958256 |  | 1967097 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1574696 |  | 2211717 |  | 2288023 |  | 2316190 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1749647 |  | 2426351 |  | 2503496 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 2057154 |  | 2818484 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022.1.1 ~ 2022.12.31 |  | 2168671 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 11017893 |  | 12349161 |  | 9865454 |  | 7454999 |  | 5163261 |  | 3203568 |  | 1509334 |
|  **Difference (A-B)** | W | 450614 | W | 97936 | W | 45249 | W | 25401 | W | 11832 | W | 5433 | W | 2394 |

---

**<2021>** 

***General Insurance***

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)*<br> **Accident year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** |
| *(In millions of Korean won)*<br> **Accident year** | **After 1**<br>**year** | **After 1**<br>**year** | **After 2<br>years** | **After 2<br>years** | **After 3<br>years** | **After 3<br>years** | **After 4<br>years** | **After 4<br>years** | **After 5<br>years** | **After 5<br>years** |
|  **Estimate of gross ultimate claims (A)** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 | W | 169234 | W | 201406 | W | 205075 | W | 206856 | W | 207252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 200968 |  | 241471 |  | 246499 |  | 250083 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 219419 |  | 263105 |  | 267687 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 232622 |  | 273531 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 290480 |  |  |  |  |  |  |  |  |
|  |  | 1112723 |  | 979513 |  | 719261 |  | 456939 |  | 207252 |
|  **Gross cumulative claim payments (B)** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 133254 |  | 185107 |  | 194511 |  | 199926 |  | 202548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 153770 |  | 217955 |  | 235900 |  | 240171 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 185645 |  | 246397 |  | 258465 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 167129 |  | 244074 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 236265 |  |  |  |  |  |  |  |  |
|  |  | 876063 |  | 893533 |  | 688876 |  | 440097 |  | 202548 |
|  **Difference (A-B)** | W | 236660 | W | 85980 | W | 30385 | W | 16842 | W | 4704 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.5 Claims development tables (cont'd)

***Automobile Insurance***

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** |
| **Accident year** | **After 1 year** | **After 1 year** | **After 2 years** | **After 2 years** | **After 3 years** | **After 3 years** | **After 4 years** | **After 4 years** | **After 5 years** | **After 5 years** | **After 6 years** | **After 6 years** | **After 7 years** | **After 7 years** |
|  **Estimate of gross ultimate claims (A)** | **Estimate of gross ultimate claims (A)** | **Estimate of gross ultimate claims (A)** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015.1.1 ~ 2015.12.31 | W | 1227107 | W | 1245781 | W | 1256059 | W | 1263044 | W | 1267142 | W | 1271000 | W | 1282673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 |  | 1276939 |  | 1281381 |  | 1287728 |  | 1294735 |  | 1299964 |  | 1309221 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1342998 |  | 1348828 |  | 1358867 |  | 1368016 |  | 1371619 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1468784 |  | 1471807 |  | 1481509 |  | 1488890 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1591793 |  | 1620609 |  | 1635704 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1624341 |  | 1632626 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 1750508 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 10282470 |  | 8601032 |  | 7019867 |  | 5414685 |  | 3938725 |  | 2580221 |  | 1282673 |
|  **Gross cumulative claim payments(B)** | **Gross cumulative claim payments(B)** | **Gross cumulative claim payments(B)** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015.1.1 ~ 2015.12.31 |  | 1020975 |  | 1198240 |  | 1228357 |  | 1245780 |  | 1254186 |  | 1261995 |  | 1264247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 |  | 1052830 |  | 1235656 |  | 1264651 |  | 1282346 |  | 1288754 |  | 1291380 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1104158 |  | 1306235 |  | 1335962 |  | 1350174 |  | 1357903 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1224820 |  | 1428973 |  | 1456532 |  | 1471379 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1332849 |  | 1570194 |  | 1598956 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1353799 |  | 1570730 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 1445877 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 8535308 |  | 8310028 |  | 6884458 |  | 5349679 |  | 3900843 |  | 2553375 |  | 1264247 |
|  **Difference (A-B)** | W | 1747162 | W | 291004 | W | 135409 | W | 65006 | W | 37882 | W | 26846 | W | 18426 |

---

***Long-term Insurance***

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** | **Development year** |
| **Accident year** | **After 1 year** | **After 1 year** | **After 2 years** | **After 2 years** | **After 3 years** | **After 3 years** | **After 4 years** | **After 4 years** | **After 5 years** | **After 5 years** | **After 6 years** | **After 6 years** | **After 7 years** | **After 7 years** |
|  **Estimate of gross ultimate claims (A)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015.1.1 ~ 2015.12.31 | W | 885476 | W | 1219394 | W | 1256051 | W | 1266881 | W | 1270967 | W | 1273615 | W | 1275520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 |  | 1064744 |  | 1437574 |  | 1485839 |  | 1500403 |  | 1506889 |  | 1510197 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1184224 |  | 1614903 |  | 1670929 |  | 1689768 |  | 1695477 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1372706 |  | 1881046 |  | 1941497 |  | 1965983 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1626481 |  | 2229830 |  | 2297861 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1818316 |  | 2442633 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 2124582 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 10076529 |  | 10825380 |  | 8652177 |  | 6423035 |  | 4473333 |  | 2783812 |  | 1275520 |
|  **Gross cumulative claim payments(B)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015.1.1 ~ 2015.12.31 |  | 836472 |  | 1205130 |  | 1248475 |  | 1262528 |  | 1269557 |  | 1272648 |  | 1274908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016.1.1 ~ 2016.12.31 |  | 1017243 |  | 1424948 |  | 1477415 |  | 1496556 |  | 1503841 |  | 1507284 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017.1.1 ~ 2017.12.31 |  | 1130868 |  | 1599227 |  | 1662978 |  | 1683997 |  | 1692323 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018.1.1 ~ 2018.12.31 |  | 1319613 |  | 1868434 |  | 1933543 |  | 1958256 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019.1.1 ~ 2019.12.31 |  | 1574696 |  | 2211717 |  | 2288023 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2020.1.1 ~ 2020.12.31 |  | 1749647 |  | 2426351 |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021.1.1 ~ 2021.12.31 |  | 2057154 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 9685693 |  | 10735807 |  | 8610434 |  | 6401337 |  | 4465721 |  | 2779932 |  | 1274908 |
|  **Difference (A-B)** | W | 390836 | W | 89573 | W | 41743 | W | 21698 | W | 7612 | W | 3880 | W | 612 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.6 Sensitivity analysis of insurance risk

The Group manages insurance risk by performing sensitivity analysis based on lapse ratio, loss ratio, expense ratio, discount rate, and others which are considered to have significant influence on future cash flow, timing, and uncertainty. Sensitivity analysis of insurance liabilities was conducted only in the unfavorable direction where additional insurance liabilities could be reserved as the surplus was sufficient as a result of the insurance liability adequacy test.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| | **Assumption**<br>**change** | | **Effect on** | **Effect on** | **Effect on** | **Effect on** | **Effect on** |
| *(In millions of Korean won)* | **Assumption**<br>**change** |  | **Base amount**<br>**of LAT** | **Base amount**<br>**of LAT** | **Insurance**<br>**liabilities** | **Profit before tax** | **Equity** |
|  Lapse ratio | +10 | % | W | 495870 | W | W | W |
|  Loss ratio | +10 | % |  | 5745896 |  |  |  |
|  Expense ratio | +10 | % |  | 413073 |  |  |  |
|  Discount rate | -0.5 | %p |  | 1084314 |  |  |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | **Assumption**<br>**change** | | **Effect on** | **Effect on** | **Effect on** | **Effect on** | **Effect on** |
| *(In millions of Korean won)* | **Assumption**<br>**change** |  | **Base amount**<br>**of LAT** | **Base amount**<br>**of LAT** | **Insurance**<br>**liabilities** | **Profit before tax** | **Equity** |
|  Lapse ratio | +10 | % | W | 337969 | W | W | W |
|  Loss ratio | +10 | % |  | 6065429 |  |  |  |
|  Expense ratio | +10 | % |  | 503132 |  |  |  |
|  Discount rate | -0.5 | %p |  | 1985421 |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.7 Liquidity risk of insurance contracts

Liquidity risk arising from insurance contracts arises from the increase in refunds at maturity caused by concentrations of maturity, the excessive increase in surrender values caused by unexpected mass cancelation, and the increase in payments of claims caused by major accidents. The Group manages payment of refunds at maturity by analyzing remaining maturity of insurance contracts.

Maturity structure of premium reserve as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** |
| *(In millions of Korean won)* | **Up to**<br>**1 year** | **Up to**<br>**1 year** | **1~5**<br>**years** | **1~5**<br>**years** | **5~10**<br>**years** | **5~10**<br>**years** | **10~20**<br>**years** | **10~20**<br>**years** | **Over 20**<br>**years** | **Over 20**<br>**years** | **Total** | **Total** |
|  Long-term insurance non-participating: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed interest type | W | 22436 | W | 90447 | W | 26234 | W | 65721 | W | 575938 | W | 780776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest type |  | 480248 |  | 2178620 |  | 924254 |  | 991874 |  | 17517632 |  | 22092628 |
|  |  | 502684 |  | 2269067 |  | 950488 |  | 1057595 |  | 18093570 |  | 22873404 |
|  Annuity: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed interest type |  | 39 |  | 992 |  | 1935 |  | 3700 |  | 398 |  | 7064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest type |  | 296 |  | 114980 |  | 416820 |  | 1325911 |  | 2050230 |  | 3908237 |
|  |  | 335 |  | 115972 |  | 418755 |  | 1329611 |  | 2050628 |  | 3915301 |
|  Total: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed interest type |  | 22475 |  | 91439 |  | 28169 |  | 69421 |  | 576336 |  | 787840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest type |  | 480544 |  | 2293600 |  | 1341074 |  | 2317785 |  | 19567862 |  | 26000865 |
|  | W | 503019 | W | 2385039 | W | 1369243 | W | 2387206 | W | 20144198 | W | 26788705 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** |
| *(In millions of Korean won)* | **Up to**<br>**1 year** | **Up to**<br>**1 year** | **1~5**<br>**years** | **1~5**<br>**years** | **5~10**<br>**years** | **5~10**<br>**years** | **10~20**<br>**years** | **10~20**<br>**years** | **Over 20**<br>**years** | **Over 20**<br>**years** | **Total** | **Total** |
|  Long-term insurance non-participating: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed interest type | W | 121988 | W | 64730 | W | 77880 | W | 59042 | W | 324259 | W | 647899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest type |  | 959348 |  | 1958267 |  | 1536690 |  | 919726 |  | 16123312 |  | 21497343 |
|  |  | 1081336 |  | 2022997 |  | 1614570 |  | 978768 |  | 16447571 |  | 22145242 |
|  Annuity: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed interest type |  |  |  | 820 |  | 2134 |  | 3813 |  | 532 |  | 7299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest type |  | 252 |  | 103419 |  | 407556 |  | 1324916 |  | 2121076 |  | 3957219 |
|  |  | 252 |  | 104239 |  | 409690 |  | 1328729 |  | 2121608 |  | 3964518 |
|  Total: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed interest type |  | 121988 |  | 65550 |  | 80014 |  | 62855 |  | 324791 |  | 655198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest type |  | 959600 |  | 2061686 |  | 1944246 |  | 2244642 |  | 18244388 |  | 25454562 |
|  | W | 1081588 | W | 2127236 | W | 2024260 | W | 2307497 | W | 18569179 | W | 26109760 |

---

\* Includes long-term investment contracts liabilities classified as investment contracts amounting to W 9,934 million and W 31,081 million, as of December 31, 2022 and 2021, respectively. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.8 Credit risk of insurance contract

Credit risk of an insurance contract refers to economic losses in which the reinsurer, the counterparty, is unable to fulfil its contract obligations due to a decline in credit ratings or default or others. Through an internal review, only the insurers rated BBB- or higher of S&P rating or corresponding rating are selected as reinsurance companies.

Concentration and credit ratings for top three reinsurance companies as of December 31, 2022, are as follows:

---

| | | |
|:---|:---|:---|
| **Reinsurance company** | **Ratio** | **Credit<br>rating** |
|  KOREAN RE | 29.82% | AA |
|  MUNICH RE | 8.53% | AAA |
|  HISCOX | 5.44% | AA+ |

---

Exposures to credit risk related to reinsurance as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Reinsurance assets <sup>1</sup> | W | 1332088 | W | 1342615 |
|  Receivables from reinsurers <sup>2</sup> |  | 396292 |  | 377619 |
|  | W | 1728380 | W | 1720234 |

---

<sup>1</sup> Net carrying amount after impairment losses 

<sup>2</sup> Net carrying amount after allowances for credit losses 

38.5.9 Interest rate risk of insurance contract

Interest rate risk exposure from the Group's insurance contracts is the risk of unexpected losses due to the fluctuations of net interest income or net assets arising from changes in interest rate and it is managed to minimize unexpected losses. The Group calculates exposure to interest-bearing assets and interest-bearing liabilities for long-term, non-life insurance contracts. Liabilities exposure is premium reserve less surrender charge plus unearned premium reserve. Assets exposure is interest-bearing assets and assets that generate only fees without interest income are excluded from interest-bearing assets. Exposures to interest rate risk as of December 31, 2022 and 2021, are as follows:

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.5.9.1 Exposure to interest rate risk

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Interest-bearing liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed interest rate type | W | 520250 | W | 489399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest rate type |  | 24802062 |  | 24246760 |
|  | W | 25322312 | W | 24736159 |
|  **Interest-bearing assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at amortized cost and cash equivalents | W | 113043 | W | 81806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss |  | 5076615 |  | 3863978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income |  | 5000002 |  | 4488443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 8373125 |  | 8514272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 6506787 |  | 6433839 |
|  | W | 25069572 | W | 23382338 |

---

38.5.9.2 Measurement and recognition method

Duration is used to measure interest rate risk within a risk-based solvency test. The internal model system is utilized to manage interest rate risk internally. In addition, the Risk Management Committee sets asset allocation strategies every year to manage interest rate risk.

38.5.9.3 Sensitivity to changes in interest rate

Interest rate sensitivity is measured and managed by duration. Generally, when interest rate rises, the value and duration of assets and liabilities decrease, and when interest rate falls, the value and duration of assets and liabilities increase. If the duration of assets is shorter than that of liabilities, interest rate risk increases since the incremental portion of liabilities exceeds that of assets when interest rate falls.

38.5.9.4 Negative margin risk control

In order to manage negative margin risk between interest expenses on liabilities and investment income on invested assets, the Group determines the applied interest rate for premium calculation, the minimum guaranteed interest rate, and the disclosed interest rate by fully considering the market interest rate and the Group's investment yield. It is set in accordance with the interest rate guideline set by the risk management department every year, and the set applicable interest rate and minimum guaranteed interest rate are determined with the approval of the Risk Management Committee.

38.6 Risk Management of KB Life Insurance Co., Ltd.

38.6.1 Overview of insurance risk

Insurance risk is the risk that arises from a primary operation of insurance companies that is associated with underwriting of insurance contracts and payment of claims and refers to the possibility of losses that may occur because the risk at the time of claim payment is greater than the risk expected at the time of underwriting. Insurance risk can be divided into insurance price risk and policy reserve risk.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.6.1 Overview of insurance risk (cont'd)

Insurance price risk is the possibility of loss due to the differences between actual payment of claims and premiums received from policyholders. Policy reserve risk is possibility of loss due to the differences between policy reserve and actual claims to be paid in the future. Therefore, losses are recognized if actual claims are more than policy reserve.

Life insurance company measures only insurance price risk under RBC requirement because life insurance claim payments are mainly in a fixed amount with less volatility and the period from insured event to claim payments is not long, therefore benefit of measurement of policy reserve risk is low.

38.6.2 Concentration of insurance risk and reinsurance policy

The Group is using reinsurance to mitigate the concentration of insurance risk and increase capital management efficiency using advanced techniques. The reinsurance guidelines are operated separately into individual contracts and group contracts, and reinsurance is ceded through the following process:

(a) In the decision-making process of launching a new product, the Group decides on ceding reinsurance. Subsequently, the Group selects the reinsurer through bidding, and decides whether to reinsure or not through agreements with the relevant departments, and final approval by executive of department in charge.

(b) The reinsurance department analyzes the object of reinsurance, the maximum limit of reinsurance, and the loss ratio through consultation with the relevant departments.

38.6.3 Characteristic and exposure to insurance price risk

The exposure to insurance price risk is measured as the risk retained premium for all insurance contracts based on the track record for one year up to reference date of calculation. The risk retained premium is measured by adding assumed risk reinsurance premium to direct risk premium and deducting ceded risk reinsurance premium. If the risk retained premium is less than zero, the exposure to insurance price risk is measured as zero.

Insurance risk of a life insurance company is mainly measured by insurance price risk. Policy reserve risk is managed by liability adequacy test because the life insurance claim payments are mainly in a fixed amount with less volatility and the period from insured event to claim payments is not long. Insurance price risk is managed through insurance risk management regulation established by the Risk Management Committee.

Maximum exposures to insurance price risk as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Before<br>reinsurance<br>mitigation** | **Before<br>reinsurance<br>mitigation** | **After<br>reinsurance<br>mitigation** | **After<br>reinsurance<br>mitigation** | **Before<br>reinsurance<br>mitigation** | **Before<br>reinsurance<br>mitigation** | **After<br>reinsurance<br>mitigation** | **After<br>reinsurance<br>mitigation** |
|  Death | W | 16025 | W | 4462 | W | 14977 | W | 11976 |
|  Disability |  | 526 |  | 412 |  | 586 |  | 296 |
|  Hospitalization |  | 1040 |  | 399 |  | 1124 |  | 730 |
|  Operation and diagnosis |  | 5927 |  | 4929 |  | 5088 |  | 1110 |
|  Actual medical expense |  | 1310 |  | 1200 |  | 1194 |  | 262 |
|  Others |  | 943 |  | 765 |  | 972 |  | 316 |
|  | W | 25771 | W | 12167 | W | 23941 | W | 14690 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.6.3 Characteristic and exposure to insurance price risk (cont'd)

Average ratios of claims paid to risk premium received for the preceding three years based on exposure before risk mitigation as of December 31, 2022 and 2021, are 63.1% and 63.0%, respectively.

Exposures to market risk arising from embedded derivatives included in host insurance contracts as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Policyholders'**<br>**reserve \*** | **Policyholders'**<br>**reserve \*** | **Guarantee<br>reserve** | **Guarantee<br>reserve** | **Policyholders'**<br>**reserve \*** | **Policyholders'**<br>**reserve \*** | **Guarantee<br>reserve** | **Guarantee<br>reserve** |
|  Variable annuity | W | 626542 | W | 3532 | W | 611283 | W | 3014 |
|  Variable universal |  | 66057 |  | 2627 |  | 78689 |  | 2768 |
|  Variable saving |  | 519893 |  | 365 |  | 556196 |  | 393 |
|  | W | 1212492 | W | 6524 | W | 1246168 | W | 6175 |

---

\* Excludes the amount of the lapsed insurance reserve. 

38.6.4 Assumptions used in measuring insurance liabilities

The Group continues to apply estimated ratio defined in the premium and policy reserve calculation manual, as prescribed by the Insurance Business Act and the Regulations on Supervision of Insurance Business when measuring insurance liabilities at every reporting period. However, in the case of variable interest type insurance, adjusted interest rate reflecting the external index interest rate according to Article 6-12 of the Regulations on Supervision of Insurance Business and disclosed interest rate reflecting the rate of return on managed assets stated in the premium and policy reserve calculation manual are used.

Reserve amount should be equal to or more than the standard reserve which is calculated using the standard interest rate and standard risk ratio as prescribed by the Enforcement Rules of the Insurance Business Act and the Regulations on Supervision of Insurance Business.

38.6.5 Maturity structure of premium reserve and unearned premium reserve as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Up to**<br>**3 years** | **Up to**<br>**3 years** | **3-5**<br>**years** | **3-5**<br>**years** | **5-10**<br>**Years** | **5-10**<br>**Years** | **10-15**<br>**years** | **10-15**<br>**years** | **15-20**<br>**years** | **15-20**<br>**years** | **Over**<br>**20 years** | **Over**<br>**20 years** | **Total** | **Total** |
|  Premium reserve | W | 411197 | W | 243863 | W | 749678 | W | 336597 | W | 492547 | W | 5200432 | W | 7434314 |
|  Unearned premium reserve |  | 168 |  | 1 |  | 21 |  |  |  | 2 |  | 4048 |  | 4240 |

---

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Up to**<br>**3 years** | **Up to**<br>**3 years** | **3-5**<br>**years** | **3-5**<br>**years** | **5-10**<br>**Years** | **5-10**<br>**Years** | **10-15**<br>**years** | **10-15**<br>**years** | **15-20**<br>**years** | **15-20**<br>**years** | **Over**<br>**20 years** | **Over**<br>**20 years** | **Total** | **Total** |
|  Premium reserve | W | 651638 | W | 285623 | W | 578102 | W | 386515 | W | 545270 | W | 5403252 | W | 7850400 |
|  Unearned premium reserve |  | 156 |  |  |  | 24 |  |  |  |  |  | 5763 |  | 5943 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.6.6 Sensitivity analysis of insurance risk

The Group manages insurance risk by performing sensitivity analysis based on lapse ratio, claim ratio, expense ratio, discount rate, and others which are considered to have significant influence on future cash flow, timing, and uncertainty. Sensitivity analysis of insurance liabilities was conducted only in the unfavorable direction where additional insurance liabilities could be reserved as the surplus was sufficient as a result of the insurance liability adequacy test.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| | **Assumption**<br>**change** | | **Effect on** | **Effect on** | **Effect on** | **Effect on** | **Effect on** |
| *(In millions of Korean won)* | **Assumption**<br>**change** |  | **Base amount**<br>**of LAT** | **Base amount**<br>**of LAT** | **Insurance**<br>**liabilities** | **Profit**<br>**before tax** | **Equity** |
|  Lapse ratio | +10 | % | W | 121800 | W | W | W |
|  Claim ratio | +10 | % |  | 60023 |  |  |  |
|  Expense ratio | +10 | % |  | 49380 |  |  |  |
|  Discount rate | -0.5 | %p |  | 417625 |  |  |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | **Assumption**<br>**change** | | **Effect on** | **Effect on** | **Effect on** | **Effect on** | **Effect on** |
| *(In millions of Korean won)* | **Assumption**<br>**change** |  | **Base amount**<br>**of LAT** | **Base amount**<br>**of LAT** | **Insurance**<br>**liabilities** | **Profit**<br>**before tax** | **Equity** |
|  Lapse ratio | +10 | % | W | 82811 | W | W | W |
|  Claim ratio | +10 | % |  | 50899 |  |  |  |
|  Expense ratio | +10 | % |  | 53511 |  |  |  |
|  Discount rate | -0.5 | %p |  | 482638 |  |  |  |

---

38.7 Risk Management of KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.)

38.7.1 Overview of insurance risk

Insurance risk is the risk that arises from a primary operation of insurance companies that is associated with underwriting of insurance contracts and payment of claims and refers to the possibility of losses that may occur because the risk at the time of claim payment is greater than the risk expected at the time of underwriting. Insurance risk can be divided into insurance price risk and policy reserve risk.

Insurance price risk is the possibility of loss due to the differences between actual payment of claims and premiums received from policyholders.

Policy reserve risk is possibility of loss due to the differences between policy reserve and actual claims to be paid in the future. Therefore, losses are recognized if actual claims are more than policy reserve.

Life insurance company measures mainly insurance price risk and manages policy reserve risk using liability adequacy test because life insurance claim payments are mainly in a fixed amount with less volatility and the period from insured event to claim payments is not long.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.7.2 Insurance risk management

The Group considers insurance risk inherent in products from the time of product development and continues to measure and mitigate insurance risk in various ways after launch. Insurance risk related to death and illness are mitigated through reinsurance, and the Group selects an appropriate reinsurer based on credit risk and determines the appropriate level of insurance risk exposure for each reinsurer prior to entering into a contract with the reinsurer. The Group manages insurance risk through voluntary reinsurance for the amount in excess of the predetermined insurance risk retention limit.

In addition, the Group monitors the loss ratio, effect of selection, and others every quarter, measures risks through an internal model, and reports the results to the Risk Management Committee.

38.7.3 Exposure to insurance price risk

The exposure to insurance price risk is measured as the risk retained premium for all insurance contracts based on the track record for one year up to reference date of calculation. The risk retained premium is measured by adding assumed risk reinsurance premium to direct risk premium and deducting ceded risk reinsurance premium. If the risk retained premium is less than zero, the exposure to insurance price risk is measured as zero.

Maximum exposures to insurance price risk as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Before reinsurance<br>mitigation** | **Before reinsurance<br>mitigation** | **After reinsurance<br>mitigation** | **After reinsurance<br>mitigation** | **Before reinsurance<br>mitigation** | **Before reinsurance<br>mitigation** | **After reinsurance<br>mitigation** | **After reinsurance<br>mitigation** |
|  Death | W | 273801 | W | 270623 | W | 253325 | W | 250045 |
|  Disability |  | 10220 |  | 10199 |  | 10331 |  | 10230 |
|  Hospitalization |  | 35067 |  | 35067 |  | 34194 |  | 34194 |
|  Operation and diagnosis |  | 84937 |  | 83261 |  | 81429 |  | 79850 |
|  | W | 404025 | W | 399150 | W | 379279 | W | 374319 |

---

38.7.4 Details of the ceded reinsurance premiums by credit rating of reinsurer for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Ceded reinsurance**<br>**premium** | **Ceded reinsurance**<br>**premium** | **Proportion**<br>**(%)** | **Ceded reinsurance**<br>**premium** | **Ceded reinsurance**<br>**premium** | **Proportion**<br>**(%)** |
|  AA- or higher | W | 4535 | 100.00 | W | 5223 | 100.00 |
|  A+ ~ A- |  |  |  |  |  |  |
|  BBB+ or lower |  |  |  |  |  |  |
|  Others |  |  |  |  |  |  |
|  | W | 4535 | 100.00 | W | 5223 | 100.00 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.7.5 Assumptions used in measuring insurance liabilities

The Group continues to apply estimated ratio defined in the premium and policy reserve calculation manual, as prescribed by the Insurance Business Act and the Regulations on Supervision of Insurance Business when measuring insurance liabilities at every reporting period. However, in the case of variable interest type insurance, adjusted interest rate reflecting the external index interest rate according to Article 6-12 of the Regulations on Supervision of Insurance Business and disclosed interest rate reflecting the rate of return on managed assets stated in the premium and policy reserve calculation manual are used.

Reserve amount should be equal to or more than the standard reserve which is calculated using the standard interest rate and standard risk ratio as prescribed by the Enforcement Rules of the Insurance Business Act and the Regulations on Supervision of Insurance Business.

38.7.6 Liquidity risk of insurance contracts

Liquidity risk arising from insurance contracts arises from the increase in refunds at maturity caused by concentrations of maturity, the excessive increase in surrender values caused by unexpected mass cancelation, and the increase in payments of claims caused by major accidents. The Group manages payment of refunds at maturity by analyzing remaining maturity of insurance contracts.

Maturity structure of premium reserve and unearned premium reserve as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Up to**<br>**3 years** | **Up to**<br>**3 years** | **3-5**<br>**years** | **3-5**<br>**years** | **5-10**<br>**Years** | **5-10**<br>**Years** | **10-15**<br>**Years** | **10-15**<br>**Years** | **15-20**<br>**years** | **15-20**<br>**years** | **Over**<br>**20 years** | **Over**<br>**20 years** | **Total** | **Total** |
|  Premium reserve | W | 42775 | W | 40755 | W | 168133 | W | 265998 | W | 639920 | W | 13909732 | W | 15067313 |
|  Unearned premium reserve |  | 30 |  | 13 |  | 46 |  | 41 |  | 56 |  | 3636 |  | 3822 |

---

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Up to**<br>**3 years** | **Up to**<br>**3 years** | **3-5**<br>**years** | **3-5**<br>**years** | **5-10**<br>**Years** | **5-10**<br>**Years** | **10-15**<br>**years** | **10-15**<br>**years** | **15-20**<br>**years** | **15-20**<br>**years** | **Over**<br>**20 years** | **Over**<br>**20 years** | **Total** | **Total** |
|  Premium reserve | W | 39578 | W | 40894 | W | 154062 | W | 237021 | W | 528373 | W | 13122197 | W | 14122125 |
|  Unearned premium reserve |  | 31 |  | 15 |  | 50 |  | 51 |  | 65 |  | 4092 |  | 4304 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.7.7 Sensitivity analysis of insurance risk

The Group manages insurance risk by performing sensitivity analysis based on lapse ratio, claim ratio, expense ratio, discount rate, and others which are considered to have significant influence on future cash flow, timing, and uncertainty. Sensitivity analysis of insurance liabilities was conducted only in the unfavorable direction where additional insurance liabilities could be reserved as the surplus was sufficient as a result of the insurance liability adequacy test.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| | **Assumption**<br>**change** | | **Effect on** | **Effect on** | **Effect on** | **Effect on** | **Effect on** |
| *(In millions of Korean won)* | **Assumption**<br>**change** |  | **Base amount**<br>**of LAT** | **Base amount**<br>**of LAT** | **Insurance**<br>**liabilities** | **Profit**<br>**before tax** | **Equity** |
|  Lapse ratio | +10 | % | W | 212126 | W | W | W |
|  Claim ratio | +10 | % |  | 468779 |  |  |  |
|  Expense ratio | +10 | % |  | 125063 |  |  |  |
|  Discount rate | -0.5 | %p |  | 1106606 |  |  |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | **Assumption**<br>**change** | | **Effect on** | **Effect on** | **Effect on** | **Effect on** | **Effect on** |
| *(In millions of Korean won)* | **Assumption**<br>**change** |  | **Base amount**<br>**of LAT** | **Base amount**<br>**of LAT** | **Insurance**<br>**liabilities** | **Profit**<br>**before tax** | **Equity** |
|  Lapse ratio | +10 | % | W | 114427 | W | W | W |
|  Claim ratio | +10 | % |  | 571446 |  |  |  |
|  Expense ratio | +10 | % |  | 157924 |  |  |  |
|  Discount rate | -0.5 | %p |  | 1563571 |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

38.8 Application of the Overlay Approach

Upon initial application of Korean IFRS No.1109, the Group applied the overlay approach in accordance with Korean IFRS No.1104.

38.8.1 Details of financial assets subject to the overlay approach as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions | W | 69469 | W | 80179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 8806018 |  | 8023999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 60611 |  | 239426 |
|  | W | 8936098 | W | 8343604 |

---

38.8.2 Changes in net gains on overlay adjustment for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Beginning | W | 459484 | W | 339202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recognition of other comprehensive income due to acquisition and valuation |  | (381037) |  | 185906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification to profit or loss due to disposal |  | (59092) |  | (65624) |
|  Ending | W | 19355 | W | 459484 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**39. Statement of Cash Flows** 

39.1 Details of cash and cash equivalents as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Cash | W | 2439490 | W | 2496941 |
|  Checks issued by other banks |  | 123163 |  | 150047 |
|  Due from the Bank of Korea |  | 17520636 |  | 17579643 |
|  Due from other financial institutions |  | 11980132 |  | 10782743 |
|  |  | 32063421 |  | 31009374 |
|  Due from financial institutions measured at fair value through profit or loss |  | 69469 |  | 200743 |
|  |  | 32132890 |  | 31210117 |
|  Deduction: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted due from financial institutions \* |  | (4809759) |  | (4589893) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions with original maturities over three months |  | (1160607) |  | (1346951) |
|  |  | (5970366) |  | (5936844) |
|  | W | 26162524 | W | 25273273 |

---

\* Items meeting the definition of cash are excluded in accordance with Korean IFRS No.1007 *Statement of Cash Flows*. Detailed information on the effects of this change in accounting policy is described in Note 2.1 Application of Korean IFRS.

Items meeting the definition of cash among due from financial institutions with restriction to use as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial institutions** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea | W | 15169703 | W | 15117033 |
|  | Due from others | Korea Development Bank and others |  | 39358 |  | 37914 |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | Bank Indonesia and others |  | 1218847 |  | 1009866 |
|  |  |  | W | 16427908 | W | 16164814 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

39.2 Significant non-cash transactions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Write-offs of loans | W | 1486357 | W | 1086296 |
|  Changes in financial investments due to debt-for-equity swap |  |  |  | 327 |
|  Changes in accumulated other comprehensive income from valuation of financial instruments at fair value through other comprehensive income |  | (2522854) |  | 507175 |
|  Changes in accumulated other comprehensive income from valuation of investments in associates |  | (64) |  | 165 |
|  Reclassification to assets of a disposal group held for sale |  |  |  | 171749 |

---

39.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Activities** | **2022** | **2022** | **2021** | **2021** |
|  Income tax paid | Operating | W | 1524025 | W | 1586750 |
|  Interest received | Operating |  | 20509411 |  | 15152796 |
|  Interest paid | Operating |  | 6356211 |  | 4062469 |
|  Dividends received | Operating |  | 388030 |  | 290089 |
|  Dividends paid | Financing |  | 1564153 |  | 1053416 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

39.4 Changes in liabilities arising from financing activities for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | | | | | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | | |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Net cash flows** | **Net cash flows** | **Acquisition<br>(disposal)** | **Acquisition<br>(disposal)** | **Exchange<br>differences** | **Exchange<br>differences** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** | **Subsidiaries** | **Subsidiaries** | **Others** | **Others** | **Ending** | **Ending** |
|  Derivatives held for hedging \* | W | (25283) | W | 33402 | W |  | W | 153646 | W | 8730 | W |  | W | (180415) | W | (9920) |
|  Borrowings and debentures |  | 124342562 |  | 15645750 |  |  |  | 895758 |  | (297468) |  | 81268 |  | (252302) |  | 140415568 |
|  Due to trust accounts |  | 7033849 |  | (1225402) |  |  |  |  |  |  |  |  |  |  |  | 5808447 |
|  Non-controlling interests |  | 833338 |  | 395713 |  |  |  |  |  |  |  | 752 |  | 50300 |  | 1280103 |
|  Others |  | 985854 |  | 436903 |  | 154004 |  | 199 |  |  |  |  |  | 118863 |  | 1695823 |
|  | W | 133170320 | W | 15286366 | W | 154004 | W | 1049603 | W | (288738) | W | 82020 | W | (263554) | W | 149190021 |

---

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | | | | | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | **Non-cash changes** | | |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Net cash flows** | **Net cash flows** | **Acquisition<br>(disposal)** | **Acquisition<br>(disposal)** | **Exchange<br>differences** | **Exchange<br>differences** | **Changes in**<br>**fair value** | **Changes in**<br>**fair value** | **Subsidiaries** | **Subsidiaries** | **Others** | **Others** | **Ending** | **Ending** |
|  Derivatives held for hedging \* | W | (57196) | W | 5870 | W |  | W | 246352 | W | (70225) | W |  | W | (150084) | W | (25283) |
|  Borrowings and debentures |  | 112587843 |  | 11579036 |  |  |  | 630913 |  | (115440) |  | (329512) |  | (10278) |  | 124342562 |
|  Due to trust accounts |  | 7542955 |  | (509106) |  |  |  |  |  |  |  |  |  |  |  | 7033849 |
|  Non-controlling interests |  | 857783 |  | (24145) |  |  |  |  |  |  |  | 1994 |  | (2294) |  | 833338 |
|  Others |  | 1019075 |  | (319074) |  | 166336 |  | 119 |  |  |  |  |  | 119398 |  | 985854 |
|  | W | 121950460 | W | 10732581 | W | 166336 | W | 877384 | W | (185665) | W | (327518) | W | (43258) | W | 133170320 |

---

\* Derivatives held for hedging purposes are the net amount after offsetting liabilities and assets. 

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

39.5 The net cash flow associated with the changes in the subsidiaries for the years ended December 31, 2022 and 2021 are W 932,428 million of cash inflow and W 374,992 million of cash inflow, respectively.

40.1 Details of acceptances and guarantees as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  **Confirmed acceptances and guarantees** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Confirmed acceptances and guarantees in Korean won: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for KB purchasing loan | W | 167538 | W | 136914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 918670 |  | 817470 |
|  |  | 1086208 |  | 954384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Confirmed acceptances and guarantees in foreign currencies: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances of letter of credit |  | 502217 |  | 523037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter of guarantees |  | 78414 |  | 83089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bid bond |  | 19998 |  | 18874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance bond |  | 976008 |  | 855247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees |  | 1705796 |  | 874173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 3485842 |  | 2505353 |
|  |  | 6768275 |  | 4859773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for issuance of debentures |  | 5040 |  | 5040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for mortgage |  | 94861 |  | 51053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overseas debt guarantees |  | 509157 |  | 428109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International financing guarantees in foreign currencies |  | 181241 |  | 132114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  | 50950 |
|  |  | 790299 |  | 667266 |
|  |  | 8644782 |  | 6481423 |
|  **Unconfirmed acceptances and guarantees** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees of letter of credit |  | 3042911 |  | 3551767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees |  | 1528359 |  | 833765 |
|  |  | 4571270 |  | 4385532 |
|  | W | 13216052 | W | 10866955 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Credit qualities of acceptances and guarantees as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **Total** | **Total** |
|  **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 5939025 | W | 1140 | W |  | W | 5940165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 1882080 |  | 10474 |  |  |  | 1892554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 494924 |  | 18649 |  |  |  | 513573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 63689 |  | 215382 |  | 442 |  | 279513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  | 4130 |  | 14847 |  | 18977 |
|  |  | 8379718 |  | 249775 |  | 15289 |  | 8644782 |
|  **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 3232325 |  | 844 |  |  |  | 3233169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 1040908 |  | 36879 |  |  |  | 1077787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 4685 |  | 13308 |  |  |  | 17993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 1265 |  | 236687 |  | 5 |  | 237957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  | 199 |  | 4165 |  | 4364 |
|  |  | 4279183 |  | 287917 |  | 4170 |  | 4571270 |
|  | W | 12658901 | W | 537692 | W | 19459 | W | 13216052 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected**<br>**credit losses** | **12-month<br>expected**<br>**credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected**<br>**credit losses** | **12-month<br>expected**<br>**credit losses** | **Non-impaired** | **Non-impaired** | **Impaired** | **Impaired** | **Total** | **Total** |
|  **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** | **Confirmed acceptances and guarantees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 4532747 | W | 838 | W |  | W | 4533585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 1594714 |  | 32567 |  |  |  | 1627281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 105691 |  | 46174 |  |  |  | 151865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 7722 |  | 149785 |  | 214 |  | 157721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  | 774 |  | 10197 |  | 10971 |
|  |  | 6240874 |  | 230138 |  | 10411 |  | 6481423 |
|  **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** | **Unconfirmed acceptances and guarantees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  | 3083636 |  | 3391 |  |  |  | 3087027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  | 998204 |  | 39224 |  |  |  | 1037428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 12039 |  | 34797 |  |  |  | 46836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  | 11925 |  | 195794 |  |  |  | 207719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  | 138 |  | 6384 |  | 6522 |
|  |  | 4105804 |  | 273344 |  | 6384 |  | 4385532 |
|  | W | 10346678 | W | 503482 | W | 16795 | W | 10866955 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

40.3 Classifications of acceptances and guarantees by counterparty as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Total** | **Proportion<br>(%)** |
|  Large companies | W | 7530546 | W | 3810565 | W | 11341111 | 85.81 |
|  Small and medium-sized companies |  | 718722 |  | 496709 |  | 1215431 | 9.20 |
|  Public sector and others |  | 395514 |  | 263996 |  | 659510 | 4.99 |
|  | W | 8644782 | W | 4571270 | W | 13216052 | 100.00 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Total** | **Proportion<br>(%)** |
|  Large companies | W | 5431921 | W | 3377150 | W | 8809071 | 81.06 |
|  Small and medium-sized companies |  | 820327 |  | 657073 |  | 1477400 | 13.60 |
|  Public sector and others |  | 229175 |  | 351309 |  | 580484 | 5.34 |
|  | W | 6481423 | W | 4385532 | W | 10866955 | 100.00 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

40.4 Classifications of acceptances and guarantees by industry as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Total** | **Proportion<br>(%)** |
|  Financial institutions | W | 462657 | W | 2012 | W | 464669 | 3.52 |
|  Manufacturing |  | 3851832 |  | 3589948 |  | 7441780 | 56.31 |
|  Service |  | 751846 |  | 31465 |  | 783311 | 5.93 |
|  Wholesale and retail |  | 2181469 |  | 658875 |  | 2840344 | 21.49 |
|  Construction |  | 420937 |  | 47465 |  | 468402 | 3.54 |
|  Public sector |  | 32635 |  | 81607 |  | 114242 | 0.86 |
|  Others |  | 943406 |  | 159898 |  | 1103304 | 8.35 |
|  | W | 8644782 | W | 4571270 | W | 13216052 | 100.00 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Total** | **Proportion<br>(%)** |
|  Financial institutions | W | 385761 | W | 10114 | W | 395875 | 3.64 |
|  Manufacturing |  | 2742224 |  | 2979232 |  | 5721456 | 52.65 |
|  Service |  | 676440 |  | 38920 |  | 715360 | 6.58 |
|  Wholesale and retail |  | 1603085 |  | 999416 |  | 2602501 | 23.95 |
|  Construction |  | 317946 |  | 38260 |  | 356206 | 3.28 |
|  Public sector |  | 28257 |  | 99841 |  | 128098 | 1.18 |
|  Others |  | 727710 |  | 219749 |  | 947459 | 8.72 |
|  | W | 6481423 | W | 4385532 | W | 10866955 | 100.00 |

---

40.5 Details of commitments as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  **Commitments** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate loan commitments | W | 51743718 | W | 45767502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retail loan commitments |  | 51241471 |  | 47080416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit line of credit cards |  | 77825953 |  | 70534719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of other securities |  | 7357198 |  | 6835506 |
|  |  | 188168340 |  | 170218143 |
|  **Financial guarantee contracts** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit line |  | 7135542 |  | 5729798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of securities |  | 371201 |  | 495400 |
|  |  | 7506743 |  | 6225198 |
|  | W | 195675083 | W | 176443341 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Other Matters (including litigation)

a) The Group has 292 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of W 1,442,572 million, and 280 pending lawsuits as a defendant (excluding simple lawsuits related to the collection or management of loans) with aggregate claims amount of W 977,848 million, which arose in the normal course of the business, as of December 31, 2022. Details of major pending lawsuits in which the Group is a defendant are as follows:

*(In number of cases, in millions of Korean won)* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Company** | **Lawsuits** | **No. of<br>cases** | **Amount** | **Description of the lawsuits** | **Status of the lawsuits** |
| Kookmin Bank | Request for a return of redemption amount | 1 | W53,239 | Kookmin Bank invested the assets entrusted by OO Asset Management and OO Investment Trust Management in the Fairfield Sentry Limited, and Fairfield Sentry Limited reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff (Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses).<br>Bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit against Kookmin Bank seeking to return the amount of redemptions received by Kookmin Bank through Fairfield Sentry Limited. | Application for dismissal by the defendant has been denied, and further proceedings are scheduled. [Related litigation is in progress at the New York Southern District Federal Bankruptcy Court (10-3777) at the written complaint review stage] |
|  | Confirm the absence of debt | 1 | 96200 | Galamat-Art LLP is a joint guarantor of the PF loan for the 'Kazakhstan Almaty City Complex Development Project' in which Kookmin Bank Co., Ltd. participated as a lender. OO Bank, the agent bank of the lending group, filed a provisional seizure and a lawsuit on the merits of the guarantee debt to the local court against Galamat-Art LLP. And Galamat-Art LLP filed a counterclaim against the lenders, including Kookmin Bank, to confirm the absence of debt denying the joint guarantee obligation. | Kookmin Bank won the case in the first and second trials, but the second trial is scheduled to be re-run as the registered shareholders of the Plaintiff filed an objection. |
|  | Expropriation of long-term leasehold rights | 1 | 316825 | Kookmin Bank invested assets entrusted by DAOL Asset Management Co., Ltd. in loans that are directly or indirectly collateralized by the building and land leasehold rights (hereinafter referred to as "the real estate in this case") of Union Station in Washington, D.C., the United States.<br>The Plaintiff, who is the operator of the railway facility, filed this lawsuit against those concerned with the real estate in this case, including Kookmin Bank, to expropriate the real estate in this case and determine indemnity. | Kookmin Bank submitted the response letter and will proceed with the process in the future. |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Other Matters (including litigation (cont'd)

*(In number of cases, in millions of Korean won)* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Company** | **Lawsuits** | **No. of<br>cases** | **Amount** | **Description of the lawsuits** | **Status of the lawsuits** |
| KB Securities Co., Ltd. | Request for a return of transaction amount (Australian fund) | 1 | 37468 | The plaintiffs OOOO Securities and OOOO Life Insurance filed lawsuits, claiming that the KB Securities Co., Ltd. provided false information on major matters in the product description while selling JB Australia NDIS Private Fund No.1 (on April 25, 2019, plaintiffs invested W 50 billion each) (a) (Primary claim) requesting KB Securities Co., Ltd. to return unjust enrichment of W 100 billion for cancelation of sales contracts of beneficiary certificates due to an error or termination of the contract due to default, (b) (Secondary claim) requesting for compensation for damages in investments amounting to W 100 billion due to violation of the investor protection obligation and fraudulent transactions of KB Securities Co., Ltd. and OOO Asset Management.<br> The Plaintiff's complaint price was changed to W 37.47 billion due to the Plaintiff's request to change the purpose and cause of the claim on October 11, 2022. | First trial is in progress (the pleading resumption has been decided on February 6, 2023, and the 9th pleading is scheduled on April 11, 2023.). |

---

b) In June 2013, KB Kookmin Card Co., Ltd. had an accident in which cardholders' personal information was stolen (hereinafter referred to as "accident") due to illegal activities by employees of personal credit information company in charge of development of the system upgrading to prevent fraudulent use of credit card. As a result, KB Kookmin Card Co., Ltd. was notified by the Financial Services Commission of the suspension of some new business for 3 months as of February 16, 2014. In respect of the accident, the Group faces 1 and 2 legal claims filed as a defendant, with an aggregate claim amount of W 51 million and W 108 million as of December 31, 2022 and December 31, 2021, respectively. The Group takes out the personal information protection liability insurance as of December 31, 2022.

c) As of December 31, 2022, KB KOLAO Leasing Co., Ltd. is selling LVMC Holdings (formerly Kolao Holdings) allied receivables that are overdue by three months or more to Lanexang Leasing Co., Ltd. in accordance with the agreement.

d) As of December 31, 2022, KB Capital Co., Ltd. and PT Sunindo Primasura are required to hold the shares of PT Sunindo Kookmin Best Finance for five years after May 18, 2020, when the purchase of shares was completed. If one party is going to sell all or part of the shares, provide them as collateral, trade or dispose of them, it should give the opportunity to exercise preemption to the other party by providing written proposal including transfer price, payment method, and others.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Other Matters (including litigation (cont'd)

e) KB Securities Co., Ltd., as an investment broker, managed the sale of private equity funds and trusts amounting to W 326,500 million, which lends to corporations (borrowers) that invest in apartment rental businesses for the disabled in Australia, to individuals and institutional investors. However, management of the fund has been suspended due to the breach of contract by local borrowers in Australia; therefore there is a possibility of losses of principal to these funds subscribers. In this regard, there are three lawsuits in which the Group is a defendant as of December 31, 2022. One of the cases was ruled, on February 7, 2023, ordering the payment of W 29.8 billion in principal and delayed interest on it; however, the judgment may be changed at the higher court. And the other two cases are still in the first trial. KB Securities Co., Ltd. determined the results of the first trial on February 7, 2023 as an event after the reporting period requiring adjustment, and additionally reflected to the litigation provision in the financial statements as of December 31, 2022.

Meanwhile, KB Securities Co., Ltd. filed a requisite for reimbursement lawsuit against JB Asset Management, a fund management company, in this regard, and is currently in the first trial.

f) In relation to Lime Asset Management, KB Securities Co., Ltd. has a PIS (Portfolio Index Swap) contract, as of December 31, 2022, associated with 'Lime Thetis Qualified Investor Private Investment Trust No.2' and 'Lime Pluto FI Qualified Investor Private Investment Trust No.D-1' whose redemption were suspended during the fourth quarter of 2019. The notional amount of the underlying assets of the PIS contract is W 163,100 million. Meanwhile, the Group sold W 68,100 million of feeder funds of aforementioned redemption-suspended funds. On October 20, 2020, Lime Asset Management's license as a fund manager was revoked by the Financial Supervisory Service's sanctions review committee, and most of its redemption-suspended funds and normal funds have been transferred to Wellbridge Asset Management (the bridge management company) to continue to collect and distribute investments. It is difficult to predict whether and when the aforementioned redemption-suspended funds will be redeemed. In this regard, KB Securities Co., Ltd. faces four claims filed as a defendant as of December 31, 2022. The Group has accounted for the estimated loss due to the possibility of additional lawsuits in the future as a provision for litigations.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**41. Subsidiaries** 

41.1 Details of major consolidated subsidiaries as of December 31, 2022, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investor** | **Investee** | **Ownership**<br>**(%)** | **Location** | **Date of**<br> **financial<br>statements** | **Industry** |
|  KB Financial Group Inc. | Kookmin Bank | 100.00 | Korea | Dec. 31 | Banking and foreign exchange transaction |
|  | KB Securities Co., Ltd. | 100.00 | Korea | Dec. 31 | Financial investment |
|  | KB Insurance Co., Ltd. | 100.00 | Korea | Dec. 31 | Non-life insurance |
|  | KB Kookmin Card Co., Ltd. | 100.00 | Korea | Dec. 31 | Credit card and installment financing |
|  | KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) | 100.00 | Korea | Dec. 31 | Life insurance |
|  | KB Asset Management Co., Ltd. | 100.00 | Korea | Dec. 31 | Collective investment and advisory |
|  | KB Capital Co., Ltd. | 100.00 | Korea | Dec. 31 | Financial Leasing |
|  | KB Life Insurance Co., Ltd. | 100.00 | Korea | Dec. 31 | Life insurance |
|  | KB Real Estate Trust Co., Ltd. | 100.00 | Korea | Dec. 31 | Real estate trust management |
|  | KB Savings Bank Co., Ltd. | 100.00 | Korea | Dec. 31 | Savings banking |
|  | KB Investment Co., Ltd. | 100.00 | Korea | Dec. 31 | Capital investment |
|  | KB Data System Co., Ltd. | 100.00 | Korea | Dec. 31 | Software advisory, development, and supply |
|  | KB Credit Information Co., Ltd. | 100.00 | Korea | Dec. 31 | Collection of receivables or credit investigation |
|  Kookmin Bank | Kookmin Bank Cambodia Plc. | 100.00 | Cambodia | Dec. 31 | Banking and foreign exchange transaction |
|  | Kookmin Bank (China) Ltd. | 100.00 | China | Dec. 31 | Banking and foreign exchange transaction |
|  | KB Microfinance Myanmar Co., Ltd. | 100.00 | Myanmar | Dec. 31 | Microfinance services |
|  | PRASAC Microfinance Institution Plc. | 100.00 | Cambodia | Dec. 31 | Microfinance services |
|  | PT Bank KB Bukopin Tbk | 67.00 | Indonesia | Dec. 31 | Banking and foreign exchange transaction |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

41.1 Details of major consolidated subsidiaries as of December 31, 2022, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investor** | **Investee** | **Ownership**<br>**(%)** | **Location** | **Date of**<br> **financial**<br> **statements** | **Industry** |
|  Kookmin Bank | PT Bank Syariah Bukopin | 92.78 | Indonesia | Dec. 31 | Banking |
|  | PT Bukopin Finance | 97.03 | Indonesia | Dec. 31 | Installment financing |
|  | KB Bank Myanmar Co., Ltd. | 100.00 | Myanmar | Dec. 31 | Banking and foreign exchange transaction |
|  KB Securities Co., Ltd. | KBFG Securities America Inc. | 100.00 | United States | Dec. 31 | Investment advisory and securities trading |
|  | KB Securities Hong Kong Ltd. | 100.00 | China | Dec. 31 | Investment advisory and securities trading |
|  | KB Securities Vietnam Joint Stock Company | 99.81 | Vietnam | Dec. 31 | Investment advisory and securities trading |
|  | KB FINA Joint Stock Company | 77.82 | Vietnam | Dec. 31 | Investment advisory and securities trading |
|  | PT KB VALBURY SEKURITAS | 65.00 | Indonesia | Dec. 31 | Investment advisory and securities trading |
|  | PT.KB Valbury Capital Management | 79.00 | Indonesia | Dec. 31 | Financial investment |
|  KB Insurance Co., Ltd. | Leading Insurance Services, Inc. | 100.00 | United States | Dec. 31 | Management service |
|  | KBFG Insurance(China) Co., Ltd. | 100.00 | China | Dec. 31 | Non-life insurance |
|  | PT. KB Insurance Indonesia | 70.00 | Indonesia | Dec. 31 | Non-life insurance |
|  | KB Claims Survey & Adjusting | 100.00 | Korea | Dec. 31 | Claim service |
|  | KB Sonbo CNS | 100.00 | Korea | Dec. 31 | Management service |
|  | KB Golden Life Care Co., Ltd. | 100.00 | Korea | Dec. 31 | Service |
|  | KB Healthcare Co., Ltd. | 100.00 | Korea | Dec. 31 | Information and communication |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) | KB Life Partners Co., Ltd. | 100.00 | Korea | Dec. 31 | Insurance agent |
|  KB Kookmin Card Co., Ltd. | KB Daehan Specialized Bank Plc. | 95.71 | Cambodia | Dec. 31 | Auto Installment finance |
|  | PT. KB Finansia Multi Finance | 80.00 | Indonesia | Dec. 31 | Auto Installment finance |
|  | KB J Capital Co., Ltd. | 50.99 | Thailand | Dec. 31 | Service |
|  | i-Finance Leasing Plc. | 100.00 | Cambodia | Dec. 31 | Leasing |
|  KB Capital Co., Ltd. | PT Sunindo Kookmin Best Finance | 85.00 | Indonesia | Dec. 31 | Auto Installment finance |
|  KB Kookmin Card Co., Ltd. KB Capital Co., Ltd. | KB KOLAO Leasing Co., Ltd. | 80.00 | Laos | Dec. 31 | Auto Installment finance |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

41.1 Details of major consolidated subsidiaries as of December 31, 2022, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investor** | **Investee** | **Ownership**<br>**(%)** | **Location** | **Date of**<br> **financial**<br> **statements** | **Industry** |
|  Kookmin Bank, KB Data System Co., Ltd. | PT KB Data Systems Indonesia | 100.00 | Indonesia | Dec. 31 | Service |
|  KB Asset Management Co., Ltd. | KBAM Shanghai Advisory Services Co., Ltd. | 100.00 | China | Dec. 31 | General advisory |
|  | KB Asset Management Singapore PTE. LTD. | 100.00 | Singapore | Dec. 31 | Collective investment |

---

41.2 Details of consolidated structured entities as of December 31, 2022, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Consolidated structured**<br> **entities** | **Reasons for consolidation** |
| Trusts | Kookmin Bank (development trust) and 10 others | The Group controls the trust because it has power to determine management performance of the trust and is significantly exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of principal and fixed rate of return. |
| Asset-backed securitization | Taejon Samho The First Co., Ltd. and 119 others | The Group controls these investees because it has power over relevant activities in the event of default, is significantly exposed to variable returns by providing lines of credit, ABCP purchase commitments or acquisition of subordinated debt and has ability to affect those returns through its power. |
| Investment funds and others | KB Global Platform Fund and 204 others | Funds are consolidated if the Group, as a collective investor or operating manager (member), etc., can manage fund assets on behalf of other investors, or dismiss the collective investor and operating manager, and is substantially exposed to significant variable returns or has such rights. |

---

If the Group holds more than half of the ownership interests but does not have the power over relevant activities of structured entities in accordance with agreements with trust and other related parties, those structured entities are excluded from the consolidation.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

41.3 Condensed financial information of major subsidiaries as of and for the years ended December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Equity** | **Equity** | **Operating<br>revenue** | **Operating<br>revenue** | **Profit (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** | **Profit (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** | **Total compre-<br>hensive<br>income (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** | **Total compre-<br>hensive<br>income (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** |
|  Kookmin Bank <sup>1</sup> | W | 517769512 | W | 484046253 | W | 33723259 | W | 49436046 | W | 2996015 | W | 1856632 |
|  KB Securities Co., Ltd. <sup>1,2</sup> |  | 53824246 |  | 47946933 |  | 5877313 |  | 14264399 |  | 187784 |  | 263605 |
|  KB Insurance Co., Ltd. <sup>1,2</sup> |  | 42736747 |  | 39397167 |  | 3339580 |  | 14959264 |  | 557680 |  | (820382) |
|  KB Kookmin Card Co., Ltd.<sup>1</sup> |  | 29721017 |  | 24998215 |  | 4722802 |  | 3694352 |  | 378592 |  | 412208 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) <sup>1,2</sup> |  | 24710078 |  | 23047601 |  | 1662477 |  | 2255418 |  | 250308 |  | (532038) |
|  KB Asset Management Co., Ltd. <sup>1</sup> |  | 369488 |  | 102970 |  | 266518 |  | 233293 |  | 59345 |  | 59367 |
|  KB Capital Co., Ltd. <sup>1,2</sup> |  | 16053026 |  | 13946800 |  | 2106226 |  | 1906694 |  | 217139 |  | 209808 |
|  KB Life Insurance Co., Ltd. |  | 10136909 |  | 10050292 |  | 86617 |  | 2907001 |  | (64045) |  | (422048) |
|  KB Real Estate Trust Co., Ltd. |  | 518980 |  | 113444 |  | 405536 |  | 152686 |  | 67723 |  | 68714 |
|  KB Savings Bank Co., Ltd. |  | 3138543 |  | 2854549 |  | 283994 |  | 191337 |  | 21814 |  | 21897 |
|  KB Investment Co., Ltd. <sup>1</sup> |  | 1378550 |  | 1108264 |  | 270286 |  | 161210 |  | 4807 |  | 4805 |
|  KB Data System Co., Ltd. <sup>1</sup> |  | 63645 |  | 40570 |  | 23075 |  | 233320 |  | 3162 |  | 4546 |
|  KB Credit Information Co., Ltd. |  | 42219 |  | 24923 |  | 17296 |  | 36469 |  | 484 |  | 924 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

41.3 Condensed financial information of major subsidiaries as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

*(In millions of Korean won)* 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Equity** | **Equity** | **Operating<br>revenue** | **Operating<br>revenue** | **Profit (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** | **Profit (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** | **Total compre-<br>hensive<br>income (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** | **Total compre-<br>hensive<br>income (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company** |
|  Kookmin Bank <sup>1</sup> | W | 483564898 | W | 450675985 | W | 32888913 | W | 26536995 | W | 2590764 | W | 3265921 |
|  KB Securities Co., Ltd. <sup>1,2</sup> |  | 55493985 |  | 50008422 |  | 5485563 |  | 8543590 |  | 594301 |  | 628112 |
|  KB Insurance Co., Ltd. <sup>1,2</sup> |  | 41472227 |  | 37328954 |  | 4143273 |  | 14131278 |  | 301836 |  | 107240 |
|  KB Kookmin Card Co., Ltd.<sup>1</sup> |  | 27349561 |  | 22793920 |  | 4555641 |  | 3527354 |  | 418898 |  | 442873 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) <sup>2</sup> |  | 26287116 |  | 23992601 |  | 2294515 |  | 1976122 |  | 336198 |  | 54587 |
|  KB Asset Management Co., Ltd. <sup>1</sup> |  | 375739 |  | 128589 |  | 247150 |  | 254162 |  | 79899 |  | 79071 |
|  KB Capital Co., Ltd. <sup>1,2</sup> |  | 14529427 |  | 12707210 |  | 1822217 |  | 1634759 |  | 209899 |  | 209719 |
|  KB Life Insurance Co., Ltd. |  | 10634562 |  | 10174282 |  | 460280 |  | 2259301 |  | (46595) |  | (121847) |
|  KB Real Estate Trust Co., Ltd. |  | 496522 |  | 119700 |  | 376822 |  | 168373 |  | 81480 |  | 82299 |
|  KB Savings Bank Co., Ltd. |  | 2601134 |  | 2339037 |  | 262097 |  | 150028 |  | 18932 |  | 22526 |
|  KB Investment Co., Ltd. <sup>1</sup> |  | 1197720 |  | 922239 |  | 275481 |  | 207367 |  | 55338 |  | 55340 |
|  KB Data System Co., Ltd. <sup>1</sup> |  | 44486 |  | 25911 |  | 18575 |  | 174819 |  | 467 |  | 1105 |
|  KB Credit Information Co., Ltd. |  | 28674 |  | 12303 |  | 16371 |  | 39909 |  | 388 |  | 434 |

---

<sup>1</sup> Financial information is based on its consolidated financial statements.

<sup>2</sup> Includes fair value adjustments arising from the acquisition.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

41.4 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

41.4.1 The Group has provided payment guarantees of W 4,458,840 million to K plus 1st L.L.C and other consolidated structured entities.

41.4.2 The Group has provided capital commitment to 51 consolidated structured entities including KB Sinansan Line Private Special Asset Fund (SOC). The unexecuted amount of the capital commitment is W 1,822,517 million. Based on the capital commitment, the Group is subject to increase its investment upon the request of the asset management company or the additional agreement among investors.

41.4.3 The Group has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

41.5 Changes in Subsidiaries

41.5.1 Subsidiaries newly included in consolidation for the year ended December 31, 2022, are as follows:

---

| | |
|:---|:---|
| **Company** | **Reasons of obtaining control** |
| PT.KB VALBURY SEKURITAS and 30 others | Holds more than half of the ownership interests |
| New star Gimpo 4th Co., Ltd. and 55 others | Holds the power in the event of default and is exposed to significant variable returns by providing lines of credit, ABCP purchase commitments or acquisition of subordinated debt |
| KB Korea Short Term Premium Private Securities Fund No.25 (USD)(Bond) and 34 others | Holds the power to determine the operation of the funds and is exposed to variable returns by holding significant amount of ownership interests |
| KB Tail End Fund and 11 others | Holds the power as a general partner and is exposed to variable returns by holding significant amount of ownership interests |

---

41.5.2 Subsidiaries excluded from consolidation for the year ended December 31, 2022, are as follows:

---

| | |
|:---|:---|
| **Company** | **Reasons of losing control** |
| Able Pocheon 1st Co., Ltd. and 60 others | Termination of the commitments |
| KB Pre IPO Secondary Venture Fund No.2 and 21 others | Liquidation |
| 498 Seventh KOR Holdco LP and 3 other | Disposal |
| KB Global Digital-Chain Economy Securities Fund(Equity) and 9 others | Decrease in ownership interests to less than majority |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**42. Unconsolidated Structured Entities** 

42.1 Nature, purpose, and activities of the unconsolidated structured entities and how the structured entities are financed, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Nature** | **Purpose** | **Activity** | **Method of financing** |
| Structured financing | Granting PF loans to SOC and real estate<br> Granting loans to ships/aircrafts SPC | Construction of SOC and real estate<br> Building ships, construction and purchase of aircrafts | Loan commitments through credit line, providing credit line, and investment agreements |
| Investment funds | Investment in beneficiary certificates<br> Investment in PEF and partnerships | Management of fund assets<br> Payment of fund fees and allocation of fund profits | Sales of beneficiary certificate instruments<br> Investment from general partners and limited partners |
| Trusts | Management of financial trusts;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Development trust<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• General unspecified money trust<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trust whose principal is not guaranteed<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other trusts | Management of trusted financial assets<br> Payment of trust fees and allocation of trust profits. | Sales of trusted financial assets |
| Asset-backed securitization | Early cash generation through transfer of securitized assets<br> Fees earned through services to SPC, such as providing lines of credit and ABCP purchase commitments | Fulfillment of asset-backed securitization plan<br> Purchase and collection of securitized assets<br> Issuance and repayment of ABS and ABCP | Issuance of ABS and ABCP based on securitized assets |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

42.2 Details of scale of unconsolidated structured entities and nature of the risks associated with the Group's interests in unconsolidated structured entities as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Structured<br>financing** | **Structured<br>financing** | **Investment funds** | **Investment funds** | **Trusts** | **Trusts** | **Asset-backed<br>securitization**<br>**and others** | **Asset-backed<br>securitization**<br>**and others** | **Total** | **Total** |
|  **Total assets of unconsolidated structured entities** | W | 110862054 | W | 435585129 | W | 5516039 | W | 144018286 | W | 695981508 |
|  **Carrying amount in the financial statements** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | W | 105637 | W | 12963303 | W | 298169 | W | 3566948 | W | 16934057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 8829758 |  | 469777 |  | 163220 |  | 3037021 |  | 12499776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  | 1012 |  |  |  |  |  | 7893604 |  | 7894616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in associates |  |  |  | 335746 |  |  |  |  |  | 335746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  | 6663 |  | 1504 |  | 242853 |  | 5950 |  | 256970 |
|  | W | 8943070 | W | 13770330 | W | 704242 | W | 14503523 | W | 37921165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | W | 1596011 | W | 41288 | W |  | W | 219641 | W | 1856940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  | 437 |  | 2102 |  |  |  | 698 |  | 3237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  | 3044 |  | 11 |  |  |  | 54425 |  | 57480 |
|  | W | 1599492 | W | 43401 | W |  | W | 274764 | W | 1917657 |
|  **Maximum exposure \*** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held | W | 8943070 | W | 13770330 | W | 704242 | W | 14503523 | W | 37921165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase and investment commitments |  | 227098 |  | 6301588 |  | 144269 |  | 678564 |  | 7351519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused credit |  | 1380348 |  |  |  | 8547 |  | 6161171 |  | 7550066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees and loan commitments |  | 1015619 |  |  |  |  |  | 20000 |  | 1035619 |
|  | W | 11566135 | W | 20071918 | W | 857058 | W | 21363258 | W | 53858369 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Methods of determining the<br>maximum exposure | Loan commitments/<br>investment agreements/<br>purchase commitments<br>and acceptances and<br>guarantees | Investments/loans and<br>Investment agreements | Trust paying dividends<br>by results: Total amount<br>of trust exposure | Providing credit lines/purchase commitments/loan<br>commitments and acceptances and guarantees |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

42.2 Details of scale of unconsolidated structured entities and nature of the risks associated with the Group's interests in unconsolidated structured entities as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **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** |
|  | **Structured<br>financing** | **Structured<br>financing** | **Investment funds** | **Investment funds** | **Trusts** | **Trusts** | **Asset-backed<br>securitization**<br>**and others** | **Asset-backed<br>securitization**<br>**and others** | **Total** | **Total** |
|  **Total assets of unconsolidated structured entities** | W | 89647771 | W | 416401893 | W | 3005720 | W | 144897727 | W | 653953111 |
|  **Carrying amount in the financial statements** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | W | 126086 | W | 13340292 | W | 90348 | W | 3602631 | W | 17159357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  |  |  |  |  |  |  | 181 |  | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 8290514 |  | 479452 |  | 265173 |  | 1194705 |  | 10229844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  |  |  |  |  |  |  | 8084101 |  | 8084101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in associates |  |  |  | 292315 |  |  |  |  |  | 292315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  | 2496 |  | 3111 |  | 119630 |  | 15638 |  | 140875 |
|  | W | 8419096 | W | 14115170 | W | 475151 | W | 12897256 | W | 35906673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | W | 650834 | W | 58348 | W |  | W | 330592 | W | 1039774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  |  |  |  |  |  |  | 437 |  | 437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  | 8196 |  | 289 |  |  |  | 32179 |  | 40664 |
|  | W | 659030 | W | 58637 | W |  | W | 363208 | W | 1080875 |
|  **Maximum exposure \*** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held | W | 8419096 | W | 14115170 | W | 475151 | W | 12897256 | W | 35906673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase and investment commitments |  |  |  | 6131739 |  | 131102 |  | 499682 |  | 6762523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused credit |  | 855322 |  |  |  |  |  | 4990797 |  | 5846119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees and loan commitments |  | 1544394 |  |  |  | 15890 |  | 496284 |  | 2056568 |
|  | W | 10818812 | W | 20246909 | W | 622143 | W | 18884019 | W | 50571883 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Methods of determining the<br>maximum exposure | Loan commitments/<br>investment agreements/<br>purchase commitments<br>and acceptances and<br>guarantees | Investments/loans and<br>Investment agreements | Trust paying dividends<br>by results: Total amount<br>of trust exposure | Providing credit lines/purchase commitments/loan<br>commitments and acceptances and guarantees |

---

\* Maximum exposure includes the asset amounts, after deducting loss (provisions for credit losses, impairment losses, and others), recognized in the consolidated financial statements of the Group. 

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

**43. Related Party Transactions** 

According to Korean IFRS No.1024, the Group includes investments in associates, key management personnel (including family members), and post-employment benefit plans of the Group and its related party companies in the scope of related parties. The Group discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the consolidated financial statements. Refer to Note 13 for details of investments in associates and joint ventures.

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Associates and joint ventures** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | Fee and commission income | W | 5194 | W | 5689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | Interest expense |  | 1 |  | 6 |
|  | Fee and commission income |  | 649 |  | 910 |
|  | Fee and commission expense |  | 3973 |  | 4256 |
|  | Insurance income |  | 4 |  | 4 |
|  | Other operating expenses |  | 15 |  | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GwS Private Securities Investment Trust \* | Fee and commission income |  |  |  | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Interest income |  | 7516 |  | 4069 |
|  | Interest expense |  | 517 |  | 158 |
|  | Fee and commission income |  | 23 |  | 22 |
|  | Fee and commission expense |  | 6 |  | 6 |
|  | Insurance income |  | 212 |  | 230 |
|  | Losses on financial instruments at fair value through profit or loss |  | 4434 |  | 1374 |
|  | Reversal of credit losses |  | 28 |  | 444 |
|  | Provision for credit losses |  | 9 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kendai Co.,Ltd. | Other non-operating expenses |  | 3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | Interest expense |  | 108 |  | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.1\* | Interest income |  |  |  | 370 |
|  | Interest expense |  | 2 |  | 5 |
|  | Fee and commission income |  | 276 |  | 435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Star-Lord General Investors Private Real Estate Investment Company No.10 | Insurance income |  | 97 |  |  |
|  | Interest income |  | 3098 |  |  |
|  | Interest expense |  | 413 |  |  |
|  | Provision for credit losses |  | 1 |  |  |
|  | General and administrative expenses |  | 5562 |  |  |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2021** | **2021** |
|  SY Auto Capital Co., Ltd. | Interest income | W | 889 | W | 941 |
|  | Fee and commission income |  | 47 |  | 88 |
|  | Fee and commission expense |  | 10 |  | 15 |
|  | Insurance income |  | 43 |  | 42 |
|  | Other operating income |  | 487 |  | 710 |
|  | Other operating expenses |  | 32 |  | 64 |
|  | Reversal of credit losses |  |  |  | 11 |
|  | Provision for credit losses |  | 9 |  |  |
|  Food Factory Co., Ltd. | Interest income |  | 80 |  | 70 |
|  | Interest expense |  | 6 |  | 5 |
|  | Insurance income |  | 10 |  | 9 |
|  | Fee and commission income |  | 1 |  |  |
|  | Fee and commission expense |  |  |  | 2 |
|  | Gains on financial instruments at fair value through profit or loss |  | 33 |  |  |
|  | Losses on financial instruments at fair value through profit or loss |  |  |  | 1 |
|  | Reversal of credit losses |  | 1 |  | 6 |
|  KB Pre IPO Secondary Venture Fund No.1 \* | Interest expense |  |  |  | 1 |
|  | Fee and commission income |  | 1204 |  | 110 |
|  Acts Co., Ltd. \* | Insurance income |  | 2 |  | 1 |
|  Dongjo Co., Ltd | Insurance income |  |  |  | 1 |
|  | Interest income |  | 9 |  |  |
|  POSCO-KB Shipbuilding Fund | Fee and commission income |  | 177 |  | 213 |
|  Dae-A Leisure Co., Ltd. | Interest expense |  |  |  | 2 |
|  Paycoms Co., Ltd. | Interest income |  | 7 |  | 10 |
|  | Gains on financial instruments at fair value through profit or loss |  | 39 |  | 42 |
|  Big Dipper Co., Ltd. | Interest expense |  | 1 |  |  |
|  | Fee and commission expense |  | 393 |  | 655 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | Interest expense |  | 1 |  | 1 |
|  | Fee and commission income |  | 129 |  | 190 |
|  KB-TS Technology Venture Private Equity Fund | Fee and commission income |  | 185 |  | 285 |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2021** | **2021** |
|  KB-SJ Tourism Venture Fund | Fee and commission income | W | 209 | W | 279 |
|  Banksalad Co., Ltd. | Gains on financial instruments at fair value through profit or loss |  |  |  | 613 |
|  | Losses on financial instruments at fair value through profit or loss |  |  |  | 663 |
|  | Fee and commission income |  | 36 |  | 36 |
|  | Fee and commission expense |  | 17 |  | 48 |
|  Iwon Alloy Co., Ltd. | Insurance income |  | 1 |  |  |
|  Bioprotect Ltd. | Gains on financial instruments at fair value through profit or loss |  |  |  | 293 |
|  RMGP Bio-Pharma Investment Fund, L.P. | Fee and commission income |  | 43 |  | 38 |
|  | Gains on financial instruments at fair value through profit or loss |  |  |  | 531 |
|  | Losses on financial instruments at fair value through profit or loss |  |  |  | 2373 |
|  KB-MDI Centauri Fund LP | Fee and commission income |  | 487 |  | 401 |
|  | Gains on financial instruments at fair value through profit or loss |  |  |  | 551 |
|  | Losses on financial instruments at fair value through profit or loss |  |  |  | 284 |
|  Hibiscus Fund LP | Fee and commission income |  | 524 |  | 372 |
|  | Gains on financial instruments at fair value through profit or loss |  |  |  | 113 |
|  RMG-KB BioAccess Fund L.P. | Fee and commission income |  | 325 |  | 57 |
|  | Gains on financial instruments at fair value through profit or loss |  |  |  | 5 |
|  S&E Bio Co., Ltd. | Interest expense |  | 2 |  | 1 |
|  Contents First Inc. | Interest income |  | 128 |  |  |
|  | Interest expense |  | 34 |  | 83 |
|  | Fee and commission income |  | 1 |  |  |
|  | Provision for credit losses |  | 1 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2021** | **2021** |
|  December & Company Inc. | Insurance income | W | 174 | W | 109 |
|  GENINUS Inc. \* | Interest expense |  | 12 |  | 29 |
|  | Gains on financial instruments at fair value through profit or loss |  |  |  | 4009 |
|  | Provision for credit losses |  |  |  | 6 |
|  Pin Therapeutics Inc. | Interest expense |  | 110 |  |  |
|  Wyatt Corp. | Insurance income |  | 142 |  | 87 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Interest expense |  | 6 |  | 17 |
|  | Fee and commission income |  | 423 |  | 514 |
|  Spark Biopharma Inc. | Interest expense |  | 272 |  | 7 |
|  Skydigital Inc. | Fee and commission income |  | 3 |  | 3 |
|  Il-Kwang Electronic Materials Co., Ltd. | Other non-operating expenses |  | 1 |  |  |
|  SO-MYUNG Recycling Co., Ltd. | Other non-operating expenses |  | 2 |  |  |
|  KB No.17 Special Purpose Acquisition Company \* | Losses on financial instruments at fair value through profit or loss |  |  |  | 1388 |
|  | Interest expense |  | 1 |  | 14 |
|  KB No.18 Special Purpose Acquisition Company \* | Gains on financial instruments at fair value through profit or loss |  |  |  | 8 |
|  | Interest expense |  | 5 |  | 20 |
|  KB No.19 Special Purpose Acquisition Company \* | Gains on financial instruments at fair value through profit or loss |  |  |  | 36 |
|  | Interest expense |  | 5 |  | 9 |
|  KB No.20 Special Purpose Acquisition Company \* | Gains on financial instruments at fair value through profit or loss |  |  |  | 68 |
|  | Interest expense |  | 22 |  | 15 |
|  KB No.21 Special Purpose Acquisition Company | Fee and commission income |  | 263 |  |  |
|  | Gains on financial instruments at fair value through profit or loss |  | 1469 |  |  |
|  | Interest expense |  | 30 |  |  |
|  KB No.22 Special Purpose Acquisition Company | Fee and commission income |  | 175 |  |  |
|  | Gains on financial instruments at fair value through profit or loss |  | 982 |  |  |
|  | Interest expense |  | 1 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2021** | **2021** |
|  KB No.23 Special Purpose Acquisition Company | Gains on financial instruments at fair value through profit or loss | W | 1476 | W |  |
|  | Interest expense |  | 23 |  |  |
|  KB No.24 Special Purpose Acquisition Company | Interest expense |  | 1 |  |  |
|  KB SPROTT Renewable Private Equity Fund No.1 | Fee and commission income |  | 345 |  | 487 |
|  KB-Stonebridge Secondary Private Equity Fund | Fee and commission income |  | 706 |  | 550 |
|  COSES GT Co., Ltd. | Interest income |  | 23 |  | 18 |
|  | Interest expense |  | 1 |  | 1 |
|  | Provision for credit losses |  | 3 |  |  |
|  | Reversal of credit losses |  |  |  | 3 |
|  IDTECK Co., Ltd. | Insurance income |  |  |  | 1 |
|  Mantisco Co., Ltd. | Interest expense |  | 1 |  | 1 |
|  SuperNGine Co., Ltd. | Interest expense |  |  |  | 1 |
|  Desilo Inc. | Interest income |  | 9 |  | 1 |
|  | Provision for credit losses |  |  |  | 2 |
|  Turing Co., Ltd. | Interest expense |  | 1 |  | 1 |
|  IGGYMOB Co., Ltd. | Interest expense |  | 1 |  | 1 |
|  Kukka Co., Ltd. | Interest expense |  | 2 |  |  |
|  ZIPDOC Inc. | Interest expense |  | 1 |  |  |
|  | Reversal of credit losses |  | 3 |  |  |
|  TeamSparta Inc. | Interest expense |  | 19 |  |  |
|  Chabot Mobility Co., Ltd. | Interest expense |  | 1 |  |  |
|  | Fee and commission expense |  | 824 |  |  |
|  Wemade Connect Co., Ltd. | Insurance income |  | 3 |  |  |
|  | Interest expense |  | 81 |  |  |
|  | Reversal of credit losses |  | 1 |  |  |
|  TMAP Mobility Co., Ltd. | Interest expense |  | 226 |  |  |
|  | Fee and commission expense |  | 78 |  |  |
|  Nextrade Co., Ltd. | Interest expense |  | 263 |  |  |
|  WJ Private Equity Fund No.1 | Fee and commission income |  | 7 |  | 7 |
|  UPRISE, Inc. | Interest income |  |  |  | 5 |
|  | Interest expense |  | 3 |  | 1 |
|  | Reversal of credit losses |  |  |  | 1 |
|  Channel Corporation | Interest expense |  | 43 |  |  |
|  CWhy Inc. | Insurance income |  | 2 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2021** | **2021** |
|  Bomapp Inc. \* | Fee and commission expense | W |  | W | 5 |
|  | Losses on financial instruments at fair value through profit or loss |  |  |  | 1980 |
|  KB Social Impact Investment Fund | Fee and commission income |  | 286 |  | 300 |
|  KB-UTC Inno-Tech Venture Fund | Fee and commission income |  | 449 |  | 471 |
|  KBSP Private Equity Fund No.4 | Fee and commission income |  | 211 |  | 389 |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund | Fee and commission income |  | 561 |  | 1198 |
|  2020 KB Fintech Renaissance Fund | Fee and commission income |  | 147 |  | 147 |
|  KB Material and Parts No.1 PEF | Fee and commission income |  | 353 |  | 353 |
|  FineKB Private Equity Fund No.1 | Fee and commission income |  | 641 |  | 540 |
|  Paramark KB Fund No.1 | Fee and commission income |  | 356 |  | 100 |
|  KB-Badgers Future Mobility ESG Fund No.1 | Fee and commission income |  | 905 |  |  |
|  KB Bio Private Equity No.3 Ltd. \* | Fee and commission income |  | 4035 |  | 324 |
|  K The 15th REIT Co., Ltd. \* | Fee and commission income |  |  |  | 500 |
|  | Insurance income |  |  |  | 1 |
|  KB-KTB Technology Venture Fund | Fee and commission income |  | 600 |  |  |
|  THE CHAEUL FUND NO.1 | Fee and commission income |  | 82 |  |  |
|  Bluepointpartners Inc. | Gains on financial instruments at fair value through profit or loss |  |  |  | 846 |
|  KB-Solidus Global Healthcare Fund | Fee and commission income |  | 350 |  | 167 |
|  SwatchOn Inc. \* | Fee and commission income |  | 5 |  | 8 |
|  | Interest expense |  | 5 |  | 10 |
|  Gomi corporation Inc. | Interest income |  | 61 |  | 19 |
|  | Interest expense |  | 2 |  | 1 |
|  | Fee and commission income |  | 1 |  |  |
|  | Provision for credit losses |  | 3 |  | 13 |
|  KB Cape No.1 Private Equity Fund | Fee and commission income |  | 72 |  | 144 |
|  | Losses on financial instruments at fair value through profit or loss |  |  |  | 69 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2021** | **2021** |
|  Keystone-Hyundai Securities No.1 Private Equity Fund \* | Fee and commission income | W |  | W | 43 |
|  KB-GeneN Medical Venture Fund No.1 | Fee and commission income |  | 76 |  |  |
|  KB-BridgePole Venture Investment Fund | Fee and commission income |  | 118 |  |  |
|  KB-Kyobo New Mobility Power Fund | Fee and commission income |  | 69 |  |  |
|  KB Co-Investment Private Equity Fund No.1 | Fee and commission income |  | 483 |  |  |
|  KB-NP Green ESG New Technology Venture Capital Fund | Fee and commission income |  | 435 |  |  |
|  **Others** |  |  |  |  |  |
|  Retirement pension | Fee and commission income |  | 1352 |  | 1338 |
|  | Interest expense |  | 39 |  | 9 |

---

\* Excluded from the Group's related party as of December 31, 2022.

Meanwhile, the Group purchased installment financial assets, etc. from SY Auto Capital Co., Ltd. amounting to W 486,586 million and W 878,690 million for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Associates and joint ventures** |  |  |  |  |  |
|  Balhae Infrastructure Company | Other assets | W | 1306 | W | 1427 |
|  Korea Credit Bureau Co., Ltd. | Loans measured at amortized cost (gross amount) |  | 38 |  | 36 |
|  | Deposits |  | 27889 |  | 10200 |
|  | Provisions |  | 2 |  |  |
|  | Insurance liabilities |  | 1 |  | 1 |
|  Incheon Bridge Co., Ltd. | Financial assets at fair value through profit or loss |  | 32948 |  | 37382 |
|  | Loans measured at amortized cost (gross amount) |  | 95211 |  | 114107 |
|  | Allowances for credit losses |  | 12 |  | 26 |
|  | Other assets |  | 615 |  | 423 |
|  | Deposits |  | 48639 |  | 35487 |
|  | Provisions |  | 18 |  | 24 |
|  | Insurance liabilities |  | 89 |  | 79 |
|  | Other liabilities |  | 446 |  | 99 |
|  Jungdo Co., Ltd. | Deposits |  | 4 |  | 4 |
|  Dae-A Leisure Co., Ltd. | Deposits |  | 154 |  | 17 |
|  Aju Good Technology Venture Fund | Deposits |  | 7222 |  | 6286 |
|  | Other liabilities |  | 73 |  | 10 |
|  KB Star Office Private Real Estate Master Fund No.1 \* | Loans measured at amortized cost (gross amount) |  |  |  | 10000 |
|  | Allowances for credit losses |  |  |  | 5 |
|  | Other assets |  |  |  | 138 |
|  | Deposits |  |  |  | 2578 |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 | Loans measured at amortized cost (gross amount) |  | 149294 |  |  |
|  | Allowances for credit losses |  | 1 |  |  |
|  | Property and equipment |  | 9915 |  |  |
|  | Other assets |  | 8591 |  |  |
|  | Insurance liabilities |  | 46 |  |  |
|  | Other liabilities |  | 14227 |  |  |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Deposits |  | 1526 |  | 1524 |
|  | Other liabilities |  | 1 |  |  |
|  WJ Private Equity Fund No.1 | Other assets |  | 2 |  | 2 |
|  | Deposits |  | 221 |  | 260 |
|  KB Cape No.1 Private Equity Fund | Financial assets at fair value through profit or loss |  | 2017 |  | 1591 |
|  | Other assets |  |  |  | 73 |
|  RAND Bio Science Co., Ltd. | Deposits |  | 3 |  | 443 |
|  | Loans measured at amortized cost (gross amount) |  |  |  | 1 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  SY Auto Capital Co., Ltd. | Loans measured at amortized cost (gross amount) | W | 40040 | W | 40074 |
|  | Allowances for credit losses |  | 55 |  | 68 |
|  | Other assets |  | 63 |  | 630 |
|  | Deposits |  | 10 |  | 17 |
|  | Insurance liabilities |  | 14 |  | 14 |
|  | Other liabilities |  | 5 |  | 36 |
|  Food Factory Co., Ltd. | Financial assets at fair value through profit or loss |  | 696 |  | 663 |
|  | Loans measured at amortized cost (gross amount) |  | 3345 |  | 3553 |
|  | Allowances for credit losses |  | 4 |  | 4 |
|  | Other assets |  | 4 |  | 2 |
|  | Deposits |  | 664 |  | 839 |
|  | Insurance liabilities |  | 8 |  | 8 |
|  | Other liabilities |  | 1 |  | 6 |
|  KB Pre IPO Secondary Venture Fund No.1 \* | Deposits |  |  |  | 103 |
|  Acts Co., Ltd \*. | Deposits |  |  |  | 154 |
|  | Insurance liabilities |  |  |  | 2 |
|  | Other liabilities |  |  |  | 100 |
|  POSCO-KB Shipbuilding Fund | Other assets |  | 177 |  | 213 |
|  Paycoms Co., Ltd. | Other assets |  |  |  | 1 |
|  | Financial assets at fair value through profit or loss |  | 1172 |  | 1269 |
|  | Deposits |  | 1 |  | 1 |
|  Big Dipper Co., Ltd. | Loans measured at amortized cost (gross amount) |  | 18 |  | 17 |
|  | Deposits |  | 19 |  |  |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | Deposits |  | 317 |  | 904 |
|  Iwon Alloy Co., Ltd. | Deposits |  | 1 |  |  |
|  | Insurance liabilities |  | 1 |  | 1 |
|  Computerlife Co., Ltd. | Deposits |  | 3 |  |  |
|  RMGP Bio-Pharma Investment Fund, L.P. | Financial assets at fair value through profit or loss |  | 6384 |  | 5423 |
|  | Other liabilities |  | 36 |  | 79 |
|  RMGP Bio-Pharma Investment, L.P. | Financial assets at fair value through profit or loss |  | 17 |  | 14 |
|  Wyatt Corp. | Financial assets at fair value through profit or loss |  | 6000 |  | 6000 |
|  | Deposits |  | 1 |  | 1 |
|  | Insurance liabilities |  | 75 |  | 94 |
|  Skydigital Inc. | Deposits |  | 10 |  | 85 |
|  Banksalad Co., Ltd. | Financial assets at fair value through profit or loss |  | 10470 |  | 9090 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Spark Biopharma Inc. | Financial assets at fair value through profit or loss | W | 7450 | W | 4950 |
|  | Loans measured at amortized cost (gross amount) |  | 17 |  | 17 |
|  | Deposits |  | 17534 |  | 6015 |
|  | Other liabilities |  | 91 |  | 3 |
|  UPRISE, Inc. | Financial assets at fair value through profit or loss |  | 5248 |  | 1250 |
|  | Deposits |  | 27 |  | 4001 |
|  Stratio, Inc. | Financial assets at fair value through profit or loss |  | 1000 |  | 1000 |
|  Honest Fund, Inc. | Financial assets at fair value through profit or loss |  | 3999 |  | 3999 |
|  CellinCells Co., Ltd. | Financial assets at fair value through profit or loss |  | 2000 |  | 2000 |
|  | Loans measured at amortized cost (gross amount) |  | 7 |  | 6 |
|  | Deposits |  | 37 |  | 38 |
|  Channel Corporation | Financial assets at fair value through profit or loss |  | 18099 |  | 14551 |
|  | Deposits |  | 3000 |  |  |
|  | Other liabilities |  | 21 |  |  |
|  Jo Yang Industrial Co., Ltd. | Deposits |  |  |  | 1 |
|  KB No.17 Special Purpose Acquisition Company \* | Financial assets at fair value through profit or loss |  |  |  | 1301 |
|  | Deposits |  |  |  | 1687 |
|  | Other liabilities |  |  |  | 12 |
|  KB No.18 Special Purpose Acquisition Company \* | Financial assets at fair value through profit or loss |  |  |  | 3881 |
|  | Deposits |  |  |  | 2077 |
|  | Other liabilities |  |  |  | 12 |
|  KB No.19 Special Purpose Acquisition Company \* | Financial assets at fair value through profit or loss |  |  |  | 2091 |
|  | Deposits |  |  |  | 1013 |
|  | Other liabilities |  |  |  | 5 |
|  KB No.20 Special Purpose Acquisition Company\* | Financial assets at fair value through profit or loss |  |  |  | 3135 |
|  | Deposits |  |  |  | 1681 |
|  | Other liabilities |  |  |  | 3 |
|  KB No.21 Special Purpose Acquisition Company | Financial assets at fair value through profit or loss |  | 2959 |  |  |
|  | Deposits |  | 2263 |  |  |
|  | Other liabilities |  | 29 |  |  |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  KB No.22 Special Purpose Acquisition Company | Financial assets at fair value through profit or loss | W | 1972 | W |  |
|  | Deposits |  | 1948 |  |  |
|  KB No.23 Special Purpose Acquisition Company | Financial assets at fair value through profit or loss |  | 2971 |  |  |
|  | Deposits |  | 2205 |  |  |
|  | Other liabilities |  | 22 |  |  |
|  KB No.24 Special Purpose Acquisition Company | Financial assets at fair value through profit or loss |  | 6975 |  |  |
|  | Deposits |  | 9983 |  |  |
|  | Other liabilities |  | 1 |  |  |
|  COSES GT Co., Ltd. | Financial assets at fair value through profit or loss |  | 4930 |  | 4930 |
|  | Loans measured at amortized cost (gross amount) |  | 506 |  | 515 |
|  | Allowances for credit losses |  | 4 |  | 2 |
|  | Other assets |  | 2 |  | 1 |
|  | Deposits |  | 1213 |  | 1939 |
|  IDTECK Co., Ltd. | Insurance liabilities |  |  |  | 1 |
|  Bomapp Inc. \* | Financial assets at fair value through profit or loss |  |  |  | 19 |
|  | Deposits |  | 1 |  |  |
|  MitoImmune Therapeutics | Financial assets at fair value through profit or loss |  | 7000 |  | 7000 |
|  KB-Solidus Global Healthcare Fund | Other assets |  | 350 |  | 620 |
|  Bioprotect Ltd. | Financial assets at fair value through profit or loss |  | 3802 |  | 3557 |
|  Gomi corporation Inc. | Financial assets at fair value through profit or loss |  | 4000 |  | 2500 |
|  | Loans measured at amortized cost (gross amount) |  | 2234 |  | 2233 |
|  | Allowances for credit losses |  | 17 |  | 12 |
|  | Other assets |  | 5 |  | 4 |
|  | Deposits |  | 915 |  | 3188 |
|  | Other liabilities |  | 1 |  | 1 |
|  Copin Communications, Inc. \* | Financial assets at fair value through profit or loss |  |  |  | 4801 |
|  Go2joy Co., Ltd. | Financial assets at fair value through profit or loss |  | 1200 |  | 1200 |
|  ClavisTherapeutics, Inc. | Financial assets at fair value through profit or loss |  | 2000 |  | 2000 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  S&E Bio Co., Ltd. | Financial assets at fair value through profit or loss | W | 4000 | W | 2000 |
|  | Loans measured at amortized cost (gross amount) |  | 10 |  |  |
|  | Deposits |  | 6419 |  | 263 |
|  Bluepointpartners Inc. | Financial assets at fair value through profit or loss |  | 2133 |  | 2278 |
|  4N Inc. | Financial assets at fair value through profit or loss |  | 200 |  | 200 |
|  | Deposits |  | 5 |  | 39 |
|  Xenohelix Co., Ltd. | Financial assets at fair value through profit or loss |  | 2100 |  | 2100 |
|  Contents First Inc. | Financial assets at fair value through profit or loss |  | 7277 |  | 7277 |
|  | Loans measured at amortized cost (gross amount) |  | 10017 |  |  |
|  | Allowances for credit losses |  | 1 |  |  |
|  | Other assets |  | 2 |  |  |
|  | Deposits |  | 5010 |  | 12650 |
|  | Other liabilities |  | 21 |  | 57 |
|  KB-MDI Centauri Fund LP | Financial assets at fair value through profit or loss |  | 17471 |  | 9633 |
|  | Other assets |  | 470 |  | 104 |
|  2020 KB Fintech Renaissance Fund | Other assets |  | 37 |  |  |
|  OKXE Inc. | Financial assets at fair value through profit or loss |  | 800 |  | 800 |
|  GENINUS Inc. \* | Financial assets at fair value through profit or loss |  |  |  | 5855 |
|  | Loans measured at amortized cost (gross amount) |  |  |  | 17 |
|  | Allowances for credit losses |  |  |  | 6 |
|  | Deposits |  |  |  | 34415 |
|  | Other liabilities |  |  |  | 2 |
|  Mantisco Co., Ltd. | Loans measured at amortized cost (gross amount) |  | 15 |  | 1 |
|  | Financial assets at fair value through profit or loss |  | 3000 |  | 3000 |
|  | Deposits |  | 623 |  | 386 |
|  Pin Therapeutics Inc. | Loans measured at amortized cost (gross amount) |  | 13 |  |  |
|  | Financial assets at fair value through profit or loss |  | 5000 |  | 3000 |
|  | Deposits |  | 6033 |  |  |
|  | Other liabilities |  | 18 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  IMBiologics Corp. | Loans measured at amortized cost (gross amount) | W | 4 | W | 4 |
|  | Financial assets at fair value through profit or loss |  | 5000 |  | 5000 |
|  SuperNGine Co., Ltd. | Loans measured at amortized cost (gross amount) |  | 6 |  | 2 |
|  | Deposits |  | 17 |  | 944 |
|  | Financial assets at fair value through profit or loss |  | 1996 |  | 1996 |
|  Desilo Inc. | Financial assets at fair value through profit or loss |  | 3168 |  | 3168 |
|  | Loans measured at amortized cost (gross amount) |  | 300 |  | 301 |
|  | Allowances for credit losses |  | 2 |  | 2 |
|  | Deposits |  | 1 |  | 168 |
|  Turing Co., Ltd. | Financial assets at fair value through profit or loss |  | 3000 |  | 3000 |
|  | Deposits |  | 2788 |  | 1054 |
|  IGGYMOB Co., Ltd. | Financial assets at fair value through profit or loss |  | 5000 |  | 5000 |
|  | Loans measured at amortized cost (gross amount) |  | 15 |  | 6 |
|  | Deposits |  | 254 |  | 2938 |
|  Kukka Co., Ltd. | Financial assets at fair value through profit or loss |  | 2490 |  |  |
|  ZIPDOC Inc. | Financial assets at fair value through profit or loss |  | 2000 |  |  |
|  | Deposits |  | 915 |  |  |
|  TeamSparta Inc. | Financial assets at fair value through profit or loss |  | 4001 |  |  |
|  | Deposits |  | 12502 |  |  |
|  | Other liabilities |  | 6 |  |  |
|  Chabot Mobility Co., Ltd. | Financial assets at fair value through profit or loss |  | 2000 |  |  |
|  | Deposits |  | 86 |  |  |
|  Wemade Connect Co., Ltd. | Financial assets at fair value through profit or loss |  | 12000 |  |  |
|  | Loans measured at amortized cost (gross amount) |  | 52 |  |  |
|  | Provisions |  | 2 |  |  |
|  | Deposits |  | 10370 |  |  |
|  | Insurance liabilities |  | 2 |  |  |
|  | Other liabilities |  | 28 |  |  |
|  Nextrade Co., Ltd. | Deposits |  | 56202 |  |  |
|  | Other liabilities |  | 263 |  |  |
|  TMAP Mobility Co., Ltd. | Deposits |  | 30000 |  |  |
|  | Other liabilities |  | 76 |  |  |
|  FutureConnect Co., Ltd. | Financial assets at fair value through profit or loss |  | 1499 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Gushcloud Talent Agency | Financial assets at fair value through profit or loss | W | 4165 | W |  |
|  Grinergy | Financial assets at fair value through profit or loss |  | 2500 |  |  |
|  NexThera Co., Ltd. | Financial assets at fair value through profit or loss |  | 2000 |  |  |
|  FineKB Private Equity Fund No.1 | Other assets |  | 160 |  | 153 |
|  Paramark KB Fund No.1 | Other liabilities |  | 34 |  | 200 |
|  December & Company Inc. | Deposits |  | 1 |  | 1 |
|  | Insurance liabilities |  | 9 |  | 10 |
|  KB Social Impact Investment Fund | Other assets |  | 436 |  | 150 |
|  Checkmate Therapeutics Inc. | Financial assets at fair value through profit or loss |  | 3200 |  | 2200 |
|  | Insurance liabilities |  | 3 |  |  |
|  G1 Playground Co., Ltd. | Financial assets at fair value through profit or loss |  | 1000 |  | 1000 |
|  | Deposits |  |  |  | 354 |
|  Hibiscus Fund LP | Financial assets at fair value through profit or loss |  | 10221 |  | 4731 |
|  | Other assets |  |  |  | 251 |
|  | Other liabilities |  | 257 |  |  |
|  RMG-KB BioAccess Fund L.P. | Financial assets at fair value through profit or loss |  | 2753 |  | 353 |
|  RMG-KB BP Management Ltd. | Financial assets at fair value through profit or loss |  | 77 |  | 7 |
|  SwatchOn Inc. \* | Financial assets at fair value through profit or loss |  |  |  | 3345 |
|  | Loans measured at amortized cost (gross amount) |  |  |  | 73 |
|  | Deposits |  |  |  | 686 |
|  KB Co-Investment Private Equity Fund No.1 | Other assets |  | 191 |  |  |
|  **Key management personnel** | Loans measured at amortized cost (gross amount) |  | 6299 |  | 4591 |
|  | Allowances for credit losses |  | 3 |  | 2 |
|  | Other assets |  | 7 |  | 4 |
|  | Deposits |  | 17618 |  | 16996 |
|  | Provisions |  | 1 |  | 1 |
|  | Insurance liabilities |  | 2374 |  | 2471 |
|  | Other liabilities |  | 387 |  | 345 |
|  **Others** |  |  |  |  |  |
|  Retirement pension | Other assets |  | 778 |  | 369 |
|  | Other liabilities |  | 10141 |  | 5014 |

---

\* Excluded from the Group's related party as of December 31, 2022, therefore, the remaining outstanding balances with those entities are not disclosed.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Loan** | **Loan** | **Collection** | **Collection** | **Ending** | **Ending** |
|  **Associates and joint ventures** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | W | 36 | W | 38 | W | (36) | W | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. |  | 151489 |  | 11 |  | (23341) |  | 128159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Star-Lord General Investors Private Real Estate Investment Company No.10 |  |  |  | 150000 |  | (706) |  | 149294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.1 \* |  | 10000 |  |  |  | (10000) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Cape No.1 Private Equity Fund |  | 1591 |  | 426 |  |  |  | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RAND Bio Science Co., Ltd. |  | 1 |  |  |  | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SY Auto Capital Co., Ltd. |  | 40074 |  | 40 |  | (74) |  | 40040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. |  | 4216 |  | 1541 |  | (1716) |  | 4041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paycoms Co., Ltd. |  | 1269 |  |  |  | (97) |  | 1172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Big Dipper Co., Ltd. |  | 17 |  | 18 |  | (17) |  | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMGP Bio-Pharma Investment Fund, L.P. |  | 5423 |  | 961 |  |  |  | 6384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMGP Bio-Pharma Investment, L.P. |  | 14 |  | 3 |  |  |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wyatt Corp. |  | 6000 |  |  |  |  |  | 6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banksalad Co., Ltd. |  | 9090 |  | 1380 |  |  |  | 10470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. |  | 1250 |  | 3998 |  |  |  | 5248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stratio, Inc. |  | 1000 |  |  |  |  |  | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Honest Fund, Inc. |  | 3999 |  |  |  |  |  | 3999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CellinCells Co., Ltd. |  | 2006 |  | 7 |  | (6) |  | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.17 Special Purpose Acquisition Company \* |  | 1301 |  |  |  | (1301) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.18 Special Purpose Acquisition Company \* |  | 3881 |  |  |  | (3881) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.19 Special Purpose Acquisition Company \* |  | 2091 |  |  |  | (2091) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.20 Special Purpose Acquisition Company \* |  | 3135 |  |  |  | (3135) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.21 Special Purpose Acquisition Company |  |  |  | 2959 |  |  |  | 2959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.22 Special Purpose Acquisition Company |  |  |  | 1972 |  |  |  | 1972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.23 Special Purpose Acquisition Company |  |  |  | 2971 |  |  |  | 2971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.24 Special Purpose Acquisition Company |  |  |  | 6975 |  |  |  | 6975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. |  | 5445 |  | 6 |  | (15) |  | 5436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bomapp Inc. \* |  | 19 |  |  |  | (19) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Channel Corporation |  | 14551 |  | 3548 |  |  |  | 18099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MitoImmune Therapeutics |  | 7000 |  |  |  |  |  | 7000 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Loan** | **Loan** | **Collection** | **Collection** | **Ending** | **Ending** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bioprotect Ltd. | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3557 | W | 245 | W |  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. |  | 4733 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1534 |  | (33) |  | 6234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Copin Communications, Inc. \* |  | 4801 |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(4801) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Go2joy Co., Ltd. |  | 1200 |  |  |  |  |  | 1200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ClavisTherapeutics, Inc. |  | 2000 |  |  |  |  |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&E Bio Co., Ltd. |  | 2000 |  | 2010 |  |  |  | 4010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bluepointpartners Inc. |  | 2278 |  |  |  | (145) |  | 2133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4N Inc. |  | 200 |  |  |  |  |  | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Xenohelix Co., Ltd. |  | 2100 |  |  |  |  |  | 2100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. |  | 7277 |  | 10017 |  |  |  | 17294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-MDI Centauri Fund LP |  | 9633 |  | 7838 |  |  |  | 17471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SwatchOn Inc. \* |  | 3418 |  |  |  | (3418) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OKXE Inc. |  | 800 |  |  |  |  |  | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENINUS Inc. \* |  | 5872 |  |  |  | (5872) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Checkmate Therapeutics Inc. |  | 2200 |  | 1000 |  |  |  | 3200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mantisco Co., Ltd. |  | 3001 |  | 15 |  | (1) |  | 3015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IMBiologics Corp. |  | 5004 |  | 4 |  | (4) |  | 5004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spark Biopharma Inc. |  | 4967 |  | 2517 |  | (17) |  | 7467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G1 Playground Co., Ltd. |  | 1000 |  |  |  |  |  | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pin Therapeutics Inc. |  | 3000 |  | 2013 |  |  |  | 5013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hibiscus Fund LP |  | 4731 |  | 5490 |  |  |  | 10221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SuperNGine Co., Ltd. |  | 1998 |  | 6 |  | (2) |  | 2002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. |  | 3469 |  |  |  | (1) |  | 3468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMG-KB BioAccess Fund L.P. |  | 353 |  | 2400 |  |  |  | 2753 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMG-KB BP Management Ltd. |  | 7 |  | 70 |  |  |  | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGGYMOB Co., Ltd. |  | 5006 |  | 15 |  | (6) |  | 5015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turing Co., Ltd. |  | 3000 |  |  |  |  |  | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kukka Co., Ltd. |  |  |  | 2490 |  |  |  | 2490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZIPDOC Inc. |  |  |  | 2000 |  |  |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gushcloud Talent Agency |  |  |  | 4165 |  |  |  | 4165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grinergy |  |  |  | 2500 |  |  |  | 2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NexThera Co., Ltd. |  |  |  | 2000 |  |  |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chabot Mobility Co., Ltd. |  |  |  | 2000 |  |  |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TeamSparta Inc. |  |  |  | 4001 |  |  |  | 4001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FutureConnect Co., Ltd. |  |  |  | 1499 |  |  |  | 1499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wemade Connect Co., Ltd. |  |  |  | 12052 |  |  |  | 12052 |
|  **Key management personnel** |  | 4591 |  | 4527 |  | (2819) |  | 6299 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Loan** | **Loan** | **Collection** | **Collection** | **Ending** | **Ending** |
|  **Associates and joint ventures** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | W | 36 | W | 36 | W | (36) | W | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. |  | 171758 |  | 7 |  | (20276) |  | 151489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.1 \* |  | 10000 |  |  |  |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Cape No.1 Private Equity Fund |  | 2000 |  |  |  | (409) |  | 1591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RAND Bio Science Co., Ltd. |  | 1 |  | 1 |  | (1) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SY Auto Capital Co., Ltd. |  | 40060 |  | 74 |  | (60) |  | 40074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. |  | 3872 |  | 397 |  | (53) |  | 4216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paycoms Co., Ltd. |  | 1226 |  | 43 |  |  |  | 1269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Big Dipper Co., Ltd. |  | 4 |  | 17 |  | (4) |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMGP Bio-Pharma Investment Fund, L.P. |  | 4250 |  | 1173 |  |  |  | 5423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMGP Bio-Pharma Investment, L.P. |  | 9 |  | 5 |  |  |  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wyatt Corp. |  | 6000 |  |  |  |  |  | 6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banksalad Co., Ltd. |  | 9141 |  |  |  | (51) |  | 9090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. |  | 750 |  | 1000 |  | (500) |  | 1250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stratio, Inc. |  | 1000 |  |  |  |  |  | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Honest Fund, Inc. |  | 3999 |  |  |  |  |  | 3999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CellinCells Co., Ltd. |  | 2024 |  | 6 |  | (24) |  | 2006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.17 Special Purpose Acquisition Company \* |  | 2687 |  |  |  | (1386) |  | 1301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.18 Special Purpose Acquisition Company \* |  | 3873 |  | 8 |  |  |  | 3881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.19 Special Purpose Acquisition Company \* |  | 2055 |  | 36 |  |  |  | 2091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.20 Special Purpose Acquisition Company \* |  | 3067 |  | 68 |  |  |  | 3135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. |  | 5430 |  | 15 |  |  |  | 5445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bomapp Inc. \* |  | 1999 |  |  |  | (1980) |  | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Channel Corporation |  | 4551 |  | 10000 |  |  |  | 14551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MitoImmune Therapeutics |  | 5000 |  | 2000 |  |  |  | 7000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bioprotect Ltd. |  | 3264 |  | 293 |  |  |  | 3557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. |  | 509 |  | 4233 |  | (9) |  | 4733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Copin Communications, Inc. \* |  | 1500 |  | 3301 |  |  |  | 4801 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Go2joy Co., Ltd. |  | 1200 |  |  |  |  |  | 1200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ClavisTherapeutics, Inc. |  | 2000 |  |  |  |  |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&E Bio Co., Ltd. |  | 2000 |  |  |  |  |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bluepointpartners Inc. |  | 1432 |  | 846 |  |  |  | 2278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4N Inc. |  | 200 |  |  |  |  |  | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Xenohelix Co., Ltd. |  | 2100 |  |  |  |  |  | 2100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. |  | 6146 |  | 1131 |  |  |  | 7277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-MDI Centauri Fund LP |  | 4280 |  | 5353 |  |  |  | 9633 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Loan** | **Loan** | **Collection** | **Collection** | **Ending** | **Ending** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SwatchOn Inc. \* | W | 3404 | W | 73 | W | (59) | W | 3418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OKXE Inc. |  | 800 |  |  |  |  |  | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENINUS Inc. \* |  | 5599 |  | 273 |  |  |  | 5872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Checkmate Therapeutics Inc. |  |  |  | 2200 |  |  |  | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mantisco Co., Ltd. |  |  |  | 3001 |  |  |  | 3001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IMBiologics Corp. |  |  |  | 5004 |  |  |  | 5004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spark Biopharma Inc. |  |  |  | 4967 |  |  |  | 4967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G1 Playground Co., Ltd. |  |  |  | 1000 |  |  |  | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pin Therapeutics Inc. |  |  |  | 3000 |  |  |  | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hibiscus Fund LP |  |  |  | 4731 |  |  |  | 4731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SuperNGine Co., Ltd. |  |  |  | 1998 |  |  |  | 1998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. |  |  |  | 3469 |  |  |  | 3469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMG-KB BioAccess Fund L.P. |  |  |  | 353 |  |  |  | 353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMG-KB BP Management Ltd. |  |  |  | 7 |  |  |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGGYMOB Co., Ltd. |  |  |  | 5006 |  |  |  | 5006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turing Co., Ltd. |  |  |  | 3000 |  |  |  | 3000 |
|  **Key management personnel** |  | 5153 |  | 3421 |  | (3983) |  | 4591 |

---

\* Excluded from the Group's related party as of December 31, 2021.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Borrowing** | **Borrowing** | **Repayment** | **Repayment** | **Others <sup>1</sup>** | **Others <sup>1</sup>** | **Ending** | **Ending** |
|  **Associates and joint ventures** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | W | 10200 | W |  | W |  | W | 17689 | W | 27889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. |  | 35487 |  | 29217 |  | (15000) |  | (1065) |  | 48639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. |  | 4 |  |  |  |  |  |  |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. |  | 17 |  |  |  |  |  | 137 |  | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Iwon Alloy Co., Ltd. |  |  |  |  |  |  |  | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Computerlife Co., Ltd. |  |  |  |  |  |  |  | 3 |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. |  | 85 |  |  |  |  |  | (75) |  | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. |  | 1 |  |  |  |  |  | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund |  | 6286 |  | 6577 |  | (3840) |  | (1801) |  | 7222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 904 |  |  |  |  |  | (587) |  | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 1524 |  |  |  |  |  | 2 |  | 1526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 |  | 260 |  |  |  |  |  | (39) |  | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.1 <sup>2</sup>  |  | 2578 |  |  |  | (2578) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SY Auto Capital Co., Ltd. |  | 17 |  |  |  |  |  | (7) |  | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.17 Special Purpose Acquisition Company <sup>2</sup>  |  | 1687 |  |  |  | (1546) |  | (141) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.18 Special Purpose Acquisition Company <sup>2</sup>  |  | 2077 |  |  |  | (2016) |  | (61) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.19 Special Purpose Acquisition Company <sup>2</sup>  |  | 1013 |  |  |  | (1000) |  | (13) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.20 Special Purpose Acquisition Company <sup>2</sup>  |  | 1681 |  |  |  | (1534) |  | (147) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.21 Special Purpose Acquisition Company |  |  |  | 2000 |  |  |  | 263 |  | 2263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.22 Special Purpose Acquisition Company |  |  |  |  |  |  |  | 1948 |  | 1948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.23 Special Purpose Acquisition Company |  |  |  | 2133 |  |  |  | 72 |  | 2205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.24 Special Purpose Acquisition Company |  |  |  |  |  |  |  | 9983 |  | 9983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RAND Bio Science Co., Ltd. |  | 443 |  |  |  |  |  | (440) |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. |  | 839 |  | 511 |  | (1018) |  | 332 |  | 664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acts Co., Ltd. <sup>2</sup>  |  | 154 |  |  |  |  |  | (154) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paycoms Co., Ltd. |  | 1 |  |  |  |  |  |  |  | 1 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Beginning** | **Borrowing** | **Borrowing** | **Repayment** | **Repayment** | **Others <sup>1</sup>** | **Others <sup>1</sup>** | **Ending** | **Ending** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Big Dipper Co., Ltd. | W |  | W | 300 | W | (300) | W | 19 | W | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wyatt Corp. |  | 1 |  |  |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. |  | 4001 |  |  |  |  |  | (3974) |  | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CellinCells Co., Ltd. |  | 38 |  |  |  |  |  | (1) |  | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. |  | 1939 |  |  |  |  |  | (726) |  | 1213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SwatchOn Inc. <sup>2</sup>  |  | 686 |  |  |  |  |  | (686) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. |  | 3188 |  |  |  |  |  | (2273) |  | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&E Bio Co., Ltd. |  | 263 |  | 50 |  |  |  | 6106 |  | 6419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Pre IPO Secondary Venture Fund No.1 <sup>2</sup>  |  | 103 |  |  |  |  |  | (103) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4N Inc. |  | 39 |  |  |  |  |  | (34) |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. |  | 12650 |  | 10000 |  | (16000) |  | (1640) |  | 5010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December & Company Inc. |  | 1 |  |  |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENINUS Inc. <sup>2</sup>  |  | 34415 |  |  |  |  |  | (34415) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mantisco Co., Ltd. |  | 386 |  |  |  |  |  | 237 |  | 623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pin Therapeutics Inc. |  |  |  | 21000 |  | (16200) |  | 1233 |  | 6033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spark Biopharma Inc. |  | 6015 |  | 41165 |  | (27539) |  | (2107) |  | 17534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G1 Playground Co., Ltd. |  | 354 |  |  |  |  |  | (354) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SuperNGine Co., Ltd. |  | 944 |  |  |  |  |  | (927) |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. |  | 168 |  |  |  |  |  | (167) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turing Co., Ltd. |  | 1054 |  |  |  |  |  | 1734 |  | 2788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGGYMOB Co., Ltd. |  | 2938 |  |  |  |  |  | (2684) |  | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TMAP Mobility Co., Ltd. |  |  |  | 80000 |  | (50000) |  |  |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nextrade Co., Ltd. |  |  |  | 56200 |  |  |  | 2 |  | 56202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kukka Co., Ltd. |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZIPDOC Inc. |  |  |  |  |  |  |  | 915 |  | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TeamSparta Inc. |  |  |  | 9000 |  | (4000) |  | 7502 |  | 12502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chabot Mobility Co., Ltd. |  |  |  |  |  |  |  | 86 |  | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wemade Connect Co., Ltd. |  |  |  | 11010 |  | (3267) |  | 2627 |  | 10370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wise Asset Management Co., Ltd. |  |  |  | 6 |  | (6) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Channel Corporation |  |  |  | 6000 |  | (3000) |  |  |  | 3000 |
|  **Key management personnel** |  | 16996 |  | 20855 |  | (17189) |  | (3043) |  | 17619 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Borrowing** | **Borrowing** | **Repayment** | **Repayment** | **Others <sup>1</sup>** | **Others <sup>1</sup>** | **Ending** | **Ending** |
|  **Associates and joint ventures** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | W | 19982 | W |  | W | (1000) | W | (8782) | W | 10200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. |  | 39520 |  | 15000 |  | (20000) |  | 967 |  | 35487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. |  | 4 |  |  |  |  |  |  |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. |  | 636 |  |  |  | (479) |  | (140) |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. |  | 15 |  |  |  |  |  | 70 |  | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. |  | 2 |  |  |  |  |  | (1) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund |  | 3093 |  | 3840 |  | (1442) |  | 795 |  | 6286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 923 |  |  |  |  |  | (19) |  | 904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 8097 |  |  |  |  |  | (6573) |  | 1524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neomio Corp. <sup>2</sup>  |  | 535 |  |  |  |  |  | (535) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 |  | 349 |  |  |  |  |  | (89) |  | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.1 <sup>2</sup>  |  | 4255 |  |  |  | (1770) |  | 93 |  | 2578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SY Auto Capital Co., Ltd. |  | 6 |  |  |  |  |  | 11 |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.17 Special Purpose Acquisition Company <sup>2</sup>  |  | 1711 |  | 1546 |  | (1525) |  | (45) |  | 1687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.18 Special Purpose Acquisition Company <sup>2</sup>  |  | 2101 |  | 2016 |  | (2063) |  | 23 |  | 2077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.19 Special Purpose Acquisition Company <sup>2</sup>  |  | 1053 |  | 1000 |  | (1000) |  | (40) |  | 1013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.20 Special Purpose Acquisition Company <sup>2</sup>  |  | 1716 |  | 1534 |  | (1522) |  | (47) |  | 1681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RAND Bio Science Co., Ltd. |  | 693 |  |  |  | (400) |  | 150 |  | 443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. |  | 1555 |  | 507 |  | (500) |  | (723) |  | 839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acts Co., Ltd. <sup>2</sup>  |  | 18 |  |  |  |  |  | 136 |  | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paycoms Co., Ltd. |  | 1 |  |  |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Big Dipper Co., Ltd. |  | 1 |  |  |  |  |  | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wyatt Corp. |  | 1 |  |  |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stratio, Inc. |  | 13 |  |  |  |  |  | (13) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. |  | 11 |  |  |  |  |  | 3990 |  | 4001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CellinCells Co., Ltd. |  | 260 |  |  |  |  |  | (222) |  | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. |  | 292 |  |  |  |  |  | 1647 |  | 1939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SwatchOn Inc. <sup>2</sup>  |  | 3947 |  | 200 |  | (3501) |  | 40 |  | 686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. |  | 37 |  |  |  |  |  | 3151 |  | 3188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&E Bio Co., Ltd. |  | 1142 |  |  |  |  |  | (879) |  | 263 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Beginning** | **Borrowing** | **Borrowing** | **Repayment** | **Repayment** | **Others <sup>1</sup>** | **Others <sup>1</sup>** | **Ending** | **Ending** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Pre IPO Secondary Venture Fund No.1 <sup>2</sup>  | W | 629 | W |  | W |  | W | (526) | W | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4N Inc. |  | 76 |  |  |  |  |  | (37) |  | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. |  | 1823 |  | 20000 |  | (11000) |  | 1827 |  | 12650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December & Company Inc. |  | 1 |  |  |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENINUS Inc. <sup>2</sup>  |  | 13630 |  |  |  | (5000) |  | 25785 |  | 34415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mantisco Co., Ltd. |  |  |  |  |  |  |  | 386 |  | 386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spark Biopharma Inc. |  |  |  | 1000 |  | (3000) |  | 8015 |  | 6015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G1 Playground Co., Ltd. |  |  |  |  |  |  |  | 354 |  | 354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SuperNGine Co., Ltd. |  |  |  |  |  |  |  | 944 |  | 944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. |  |  |  |  |  |  |  | 168 |  | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turing Co., Ltd. |  |  |  |  |  |  |  | 1054 |  | 1054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGGYMOB Co., Ltd. |  |  |  |  |  |  |  | 2938 |  | 2938 |
|  **Key management personnel** |  | 17167 |  | 16574 |  | (16994) |  | 249 |  | 16996 |

---

<sup>1</sup> Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount. 

<sup>2</sup> Excluded from the Group's related party as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.5 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Equity<br>investment<br>and others** | **Equity<br>investment<br>and others** | **Withdrawal<br>and others** | **Withdrawal<br>and others** | **Equity<br>investment<br>and others** | **Equity<br>investment<br>and others** | **Withdrawal<br>and others** | **Withdrawal<br>and others** |
|  Balhae Infrastructure Company | W |  | W | 26054 | W | 279 | W | 3620 |
|  KB GwS Private Securities Investment Trust \* |  |  |  |  |  |  |  | 188836 |
|  KoFC POSCO Hanwha KB Shared Growth Private Equity Fund No.2 \* |  |  |  | 5 |  |  |  | 1950 |
|  POSCO-KB Shipbuilding Fund |  |  |  | 950 |  |  |  | 5925 |
|  KB Pre IPO Secondary Venture Fund No.1 \* |  |  |  | 1429 |  |  |  | 292 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund |  |  |  | 5200 |  |  |  | 3000 |
|  KB-SJ Tourism Venture Fund |  |  |  | 400 |  | 500 |  |  |
|  Korea Credit Bureau Co., Ltd. |  |  |  |  |  |  |  | 90 |
|  KB-UTC Inno-Tech Venture Fund |  |  |  |  |  | 5085 |  |  |
|  KB-Solidus Global Healthcare Fund |  |  |  | 19630 |  |  |  |  |
|  KB-Stonebridge Secondary Private Equity Fund |  | 4369 |  | 4216 |  | 10734 |  | 10992 |
|  KB Star Office Private Real Estate Master Fund No.1 \* |  |  |  | 26240 |  |  |  | 601 |
|  KB SPROTT Renewable Private Equity Fund No.1 |  | 12247 |  |  |  |  |  |  |
|  KB-NAU Special Situation Corporate Restructuring Private Equity Fund |  | 1320 |  | 4706 |  | 6968 |  |  |
|  JR Global REIT \* |  |  |  |  |  |  |  | 65025 |
|  KB Bio Private Equity No.3 Ltd. \* |  |  |  | 10000 |  | 10000 |  |  |
|  K The 15th REIT Co., Ltd. \* |  |  |  |  |  | 8600 |  | 8600 |
|  Project Vanilla Co., Ltd. \* |  |  |  | 525 |  |  |  |  |
|  KB Social Impact Investment Fund |  |  |  |  |  | 1500 |  |  |
|  KB-TS Technology Venture Private Equity Fund |  |  |  | 4536 |  | 1510 |  | 2976 |
|  Keystone-Hyundai Securities No.1 Private Equity Fund \* |  |  |  |  |  |  |  | 1925 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  |  |  | 12800 |  | 8000 |  | 8200 |
|  Aju Good Technology Venture Fund |  |  |  | 5400 |  |  |  | 769 |
|  G payment Joint Stock Company |  |  |  |  |  | 9029 |  |  |
|  498/7 Owners LLC \* |  |  |  | 166851 |  |  |  |  |
|  KB-KTB Technology Venture Fund |  | 11200 |  |  |  |  |  |  |
|  KB-SOLIDUS Healthcare Investment Fund |  | 18000 |  |  |  |  |  |  |
|  Paramark KB Fund No.1 |  | 12444 |  | 2285 |  |  |  |  |
|  FineKB Private Equity Fund No.1 |  | 7500 |  | 3100 |  | 8375 |  |  |
|  KB-GeneN Medical Venture Fund No.1 |  | 2000 |  |  |  |  |  |  |
|  KB-BridgePole Venture Investment Fund |  | 850 |  |  |  |  |  |  |
|  KB-Kyobo New Mobility Power Fund |  | 3000 |  |  |  |  |  |  |
|  DA-Friend New Technology Investment Fund No.2 |  | 988 |  |  |  |  |  |  |
|  Cornerstone Pentastone Fund No.4 |  | 818 |  |  |  |  |  |  |
|  SKS-VLP New Technology Investment Fund No.2 |  | 1156 |  |  |  |  |  |  |
|  JS Private Equity Fund No.3 |  | 1700 |  |  |  |  |  |  |
|  Mirae Asset Mobility Investment Fund No.1 |  | 2000 |  |  |  |  |  |  |
|  KB-FT 1st Green Growth Investment Fund |  | 2000 |  |  |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.5 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** |
| *(In millions of Korean won)* | **Equity<br>investment<br>and others** | **Equity<br>investment<br>and others** | **Withdrawal<br>and others** | **Withdrawal<br>and others** | **Equity<br>investment<br>and others** | **Withdrawal<br>and others** |
|  THE CHAEUL FUND NO.1 | W | 1000 | W |  | W | W |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 |  | 46700 |  | 10 |  |  |
|  KB Co-Investment Private Equity Fund No.1 |  | 7268 |  |  |  |  |
|  Glenwood Credit Private Equity Fund No.2 |  | 42000 |  |  |  |  |
|  Apollo REIT PropCo LLC \* |  | 19968 |  | 19968 |  |  |
|  TMAP Mobility Co., Ltd. |  | 200000 |  |  |  |  |
|  POSITIVE Sobujang Venture Fund No.1 |  | 2000 |  |  |  |  |
|  History 2022 Fintech Fund |  | 2000 |  |  |  |  |
|  PEBBLES-MW M.C.E New Technology Investment Fund 1st |  | 2000 |  |  |  |  |
|  KB-NP Green ESG New Technology Venture Capital Fund |  | 9350 |  |  |  |  |
|  Nextrade Co., Ltd. |  | 9700 |  |  |  |  |
|  KB-Badgers Future Mobility ESG Fund No.1 |  | 2137 |  |  |  |  |
|  Shinhan Global Mobility Fund1 |  | 1345 |  |  |  |  |
|  SKB Next Unicorn K-Battery Fund No.1 |  | 1995 |  |  |  |  |

---

\* Excluded from the Group's related party as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.6 Unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won or in a US Dollar or Malaysian ringgit)* | *(In millions of Korean won or in a US Dollar or Malaysian ringgit)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  **Associates and joint ventures** | **Associates and joint ventures** | **Associates and joint ventures** | **Associates and joint ventures** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | Purchase of securities | W | 6154 | W | 6154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | Unused lines of credit for credit card |  | 562 |  | 565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Loan commitments in Korean won |  | 20000 |  | 20000 |
|  | Unused lines of credit for credit card |  | 89 |  | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KoFC POSCO Hanwha KB Shared Growth Private Equity Fund No.2 \* | Commitments on loss absorption priority |  |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SY Auto Capital Co., Ltd. | Unused lines of credit for credit card |  | 110 |  | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. | Unused lines of credit for credit card |  | 52 |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.18 Special Purpose Acquisition Company \* | Unused lines of credit for credit card |  |  |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.19 Special Purpose Acquisition Company \* | Unused lines of credit for credit card |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.23 Special Purpose Acquisition Company | Unused lines of credit for credit card |  | 12 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CellinCells Co., Ltd. | Unused lines of credit for credit card |  | 17 |  | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RAND Bio Science Co., Ltd. | Unused lines of credit for credit card |  | 25 |  | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Big Dipper Co., Ltd. | Unused lines of credit for credit card |  | 27 |  | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SwatchOn Inc. \* | Unused lines of credit for credit card |  |  |  | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. | Unused lines of credit for credit card |  | 16 |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. | Unused lines of credit for credit card |  | 24 |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENINUS Inc. \* | Unused lines of credit for credit card |  |  |  | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spark Biopharma Inc. | Unused lines of credit for credit card |  | 33 |  | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mantisco Co., Ltd. | Unused lines of credit for credit card |  | 15 |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IMBiologics Corp. | Unused lines of credit for credit card |  | 18 |  | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SuperNGine Co., Ltd. | Unused lines of credit for credit card |  | 14 |  | 18 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.6 Unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won or in a US Dollar or Malaysian ringgit)* | *(In millions of Korean won or in a US Dollar or Malaysian ringgit)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGGYMOB Co., Ltd. | Unused lines of credit for credit card | W | 35 | W | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pin Therapeutics Inc. | Unused lines of credit for credit card |  | 37 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grinergy<br> S&E Bio Co., Ltd. | Unused lines of credit for credit card |  | 10 |  |  |
|  | Unused lines of credit for credit card |  | 40 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. | Unused lines of credit for credit card |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZIPDOC Inc. | Unused lines of credit for credit card |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wemade Connect Co., Ltd. | Unused lines of credit for credit card |  | 148 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Pre IPO Secondary Venture Fund No.1 \* | Commitments on loss absorption priority |  |  |  | 1671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | Purchase of securities |  | 110 |  | 616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | Purchase of securities |  | 5140 |  | 18704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Stonebridge Secondary Private Equity Fund | Purchase of securities |  | 864 |  | 5579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NAU Special Situation Corporate Restructuring Private Equity Fund | Purchase of securities |  | 15288 |  | 16608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Together Korea Fund No.2 | Purchase of securities |  | 990000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | Purchase of securities |  | 11200 |  | 22400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | Purchase of securities |  | 70200 |  | 88200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Co-Investment Private Equity Fund No.1 | Purchase of securities |  | 15732 |  | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Badgers Future Mobility ESG Fund No.1 | Purchase of securities |  | 42863 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NP Green ESG New Technology Venture Capital Fund | Purchase of securities |  | 40650 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FineKB Private Equity Fund No.1 | Purchase of securities |  | 9125 |  | 16625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Solidus Global Healthcare Fund | Purchase of securities |  | 2120 |  | 2120 |
|  | Commitments on loss absorption priority |  | 4500 |  | 4500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paramark KB Fund No.1 | Purchase of securities |  | 17832 |  | 27960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMGP Bio-Pharma Investment Fund, L.P. | Purchase of securities |  | USD 4,094,487 |  | USD 5,169,932 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.6 Unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won or in a US Dollar or Malaysian ringgit)* | *(In millions of Korean won or in a US Dollar or Malaysian ringgit)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMGP Bio-Pharma Investment, L.P. | Purchase of securities | USD | 10731 | USD | 12615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-MDI Centauri Fund LP | Purchase of securities | USD | 1744518 | USD | 6622923 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hibiscus Fund LP | Purchase of securities | MYR | 16666667 | MYR | 33333333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMG-KB BP Management Ltd. | Purchase of securities | USD | 699733 | USD | 616170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RMG-KB BioAccess Fund L.P. | Purchase of securities | USD | 27428899 | USD | 29702324 |
|  **Key management personnel** | Loan commitments<br>in Korean won |  | 2354 |  | 2018 |

---

\* Excluded from the Group's related party as of December 31, 2022.

43.7 Details of compensation to key management personnel for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Short-term<br>employee<br>benefits** | **Short-term<br>employee<br>benefits** | **Post-<br>employment<br>benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Share-based<br>payments** | **Total** | **Total** |
|  Registered directors (executive) | W | 8725 | W | 863 | W | 7487 | W | 17075 |
|  Registered directors (non-executive) |  | 1058 |  |  |  |  |  | 1058 |
|  Non-registered directors |  | 16756 |  | 484 |  | 12432 |  | 29672 |
|  | W | 26539 | W | 1347 | W | 19919 | W | 47805 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Short-term<br>employee<br>benefits** | **Short-term<br>employee<br>benefits** | **Post-<br>employment<br>benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Share-based<br>payments** | **Total** | **Total** |
|  Registered directors (executive) | W | 8152 | W | 966 | W | 11655 | W | 20773 |
|  Registered directors (non-executive) |  | 1061 |  |  |  |  |  | 1061 |
|  Non-registered directors |  | 12820 |  | 466 |  | 14424 |  | 27710 |
|  | W | 22033 | W | 1432 | W | 26079 | W | 49544 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

43.8 Details of collateral provided by related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Assets held**<br>**as collateral** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  **Associates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.1 | Real estate | W |  | W | 13000 |
|  **Key management personnel** | Time deposits and others |  | 457 |  | 745 |
|  | Real estate |  | 7483 |  | 5176 |

---

As of December 31, 2022, Incheon Bridge Co., Ltd. a related party, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to W 611,000 million to the project financing group consisting of the Group and 5 other institutions, and as subordinated collateral amounting to W 384,800 million to subordinated debt holders consisting of the Group and 2 other institutions. Also, it provides certificate of credit guarantee amounting to W 400,000 million as collateral to the project financing group consisting of the Group and 5 other institutions.

**44. Events after the reporting period** 

44.1 Merger of subsidiaries

At the board of directors meeting and shareholder's meeting on August 9, 2022, it is determined to merge the Group's subsidiaries, KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea Ltd.) and KB Life Insurance Co., Ltd.. Accordingly, the merger was completed with KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea Ltd.) as a surviving corporation on January 1, 2023, and KB Life Insurance Co., Ltd. was dissolved after the merger.

44.2 Retirement of treasury shares

The Group plans to acquire 5,385,996 shares (W 300,000 million) of its own shares and retire the treasury shares by May 7, 2023 pursuant to board resolutions dated February 7, 2023.

However, the treasury shares were calculated based on the closing price (W 55,700) on the day before the board meeting, on February 6, 2023, and the final number of shares to be retired may vary depending on the stock price.

**45. Approval of Issuance of the Consolidated Financial Statements** 

The issuance of the Group's consolidated financial statements as of and for the year ended December 31, 2022, was approved by the board of directors on Feb 23, 2023.

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##### [**Table of Contents**](#toc)
**Exhibit 99.2** 

**KB Financial Group Inc.** 

**Separate Financial Statements** 

**December 31, 2022 and 2021** 

(With Independent Auditors' Report Thereon)

------

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

---

| | |
|:---|:---|
|  | **Page** |
|  **[Independent Auditors' Report](#ex99_2474003_1)** | 1 |
|  **Separate Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Separate Statements of Financial Position](#ex99_2474003_3) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Separate Statements of Comprehensive Income](#ex99_2474003_4) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Separate Statements of Changes in Equity](#ex99_2474003_5) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Separate Statements of Cash Flows](#ex99_2474003_6) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Separate Financial Statements](#ex99_2474003_7) | 8 |
|  **[Independent Auditors' Report on Internal Control over Financial Reporting](#ex99_2474003_8)** | 86 |
|  [Operating Status Report of the Internal Control over Financial Reporting](#ex99_2474003_9) | 88 |

---

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##### [**Table of Contents**](#toc)
**<u>Independent Auditors' Report</u>**

Based on a report originally issued in Korean

The Board of Directors and Stockholders

KB Financial Group Inc.:

*Opinion* 

We have audited the separate financial statements of KB Financial Group Inc. ("the Company"), which comprise the separate statements of financial position as of December 31, 2022 and 2021, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2022 and 2021, and its separate financial performance and its cash flows for the years then ended in accordance with Korean International Financial Reporting Standards ("K-IFRS").

We also have audited, in accordance with Korean Standards on Auditing (KSAs), the Company's Internal Control over Financial Reporting ("ICFR") as of December 31, 2022 based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea, and our report dated March 7, 2023 expressed an unmodified opinion on the effectiveness of the Company's internal control over financial reporting.

*Basis for Opinion* 

We conducted our audits in accordance with KSAs. Our responsibilities under those standards are further described in the *Auditors' Responsibilities for the Audit of the Separate Financial Statements* section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the separate financial statements in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Key Audit Matters* 

We have determined that there are no key audit matters to communicate in our report.

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##### [**Table of Contents**](#toc)
*Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements* 

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

In preparing the separate financial statements, management is responsible for assessing the 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, or has no realistic alternative but to do so.

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

*Auditors' Responsibilities for the Audit of the Separate Financial Statements* 

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used in the preparation of the separate financial
statements and the reasonableness of accounting estimates and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 auditors' report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

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 the internal controls 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 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 separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' 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 auditors' report is Young-Min Kwon.

---

| |
|:---|
| /s/ KPMG Samjong Accounting Corp. |
| Seoul, Korea |
| March 7, 2023 |

---

&nbsp;&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 separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Separate Statements of Financial Position** 

**December 31, 2022 and 2021** 

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Notes** | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 45628 | W | 351056 | W | 608076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 457 |  | 1522314 |  | 440760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 458 |  | 522326 |  | 249128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries | 9 |  | 26741438 |  | 26741438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment | 10 |  | 3552 |  | 4444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 11 |  | 16752 |  | 16673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit assets | 16 |  | 4288 |  | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets | 13 |  | 19904 |  | 5583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 4514 |  | 1272197 |  | 805056 |
|  **Total assets** |  | W | 30453827 | W | 28871379 |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 4515 |  | 4956949 |  | 5552791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax liabilities |  |  | 926573 |  | 570519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 4517 |  | 338489 |  | 235095 |
|  **Total liabilities** |  |  | 6222011 |  | 6358405 |
|  **Equity** | 19 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share capital |  |  | 2090558 |  | 2090558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities |  |  | 4433981 |  | 2837981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus |  |  | 14754747 |  | 14754747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income |  |  | (5847) |  | (8330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  |  | 3794565 |  | 3974206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury shares |  |  | (836188) |  | (1136188) |
|  **Total equity** |  |  | 24231816 |  | 22512974 |
|  **Total liabilities and equity** |  | W | 30453827 | W | 28871379 |

---

The above separate statements of financial position should be read in conjunction with the accompanying notes.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Separate Statements of Comprehensive Income** 

**Years Ended December 31, 2022 and 2021** 

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won, except per share amounts)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  Interest income |  | W | 19402 | W | 9392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at amortized cost |  |  | 16525 |  | 6548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at fair value through profit or loss |  |  | 2877 |  | 2844 |
|  Interest expense |  |  | (112353) |  | (120469) |
|  **Net interest expense** | 20 |  | (92951) |  | (111077) |
|  Fee and commission income |  |  | 3399 |  | 975 |
|  Fee and commission expense |  |  | (12085) |  | (9132) |
|  **Net fee and commission expense** | 21 |  | (8686) |  | (8157) |
|  **Net gains on financial instruments at fair value through profit or loss** | 22 |  | (11794) |  | 20250 |
|  **Net other operating income** | 23 |  | 1871224 |  | 1620238 |
|  General and administrative expenses | 24 |  | (89149) |  | (85417) |
|  **Operating income before provision for credit losses** |  |  | 1668644 |  | 1435837 |
|  Provision for credit losses |  |  | (303) |  | (417) |
|  **Net operating income** |  |  | 1668341 |  | 1435420 |
|  Net non-operating income | 25 |  | 908 |  | 1165 |
|  **Profit before income tax benefit** |  |  | 1669249 |  | 1436585 |
|  Income tax benefit | 26 |  | 15263 |  | 2281 |
|  **Profit for the year** |  |  | 1684512 |  | 1438866 |
|  **Items that will not be reclassified to profit or loss:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  | 2483 |  | (298) |
|  **Other comprehensive income(loss) for the year, net of tax** | **Other comprehensive income(loss) for the year, net of tax** |  | 2483 |  | (298) |
|  **Total comprehensive income for the year** |  | W | 1686995 | W | 1438568 |
|  **Earnings per share** | 27 |  |  |  |  |
|  Basic earnings per share |  | W | 3999 | W | 3509 |
|  Diluted earnings per share |  |  | 3912 |  | 3436 |

---

The above separate statements of comprehensive income should be read in conjunction with the accompanying notes.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Separate Statements of Changes in Equity** 

**Years Ended December 31, 2022 and 2021** 

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---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Share**<br>**capital** | **Share**<br>**capital** | **Hybrid<br>securities** | **Hybrid<br>securities** | **Capital**<br>**surplus** | **Capital**<br>**surplus** | **Accumulated<br>other<br>comprehensive<br>income** | **Accumulated<br>other<br>comprehensive<br>income** | **Retained<br>earnings** | **Retained<br>earnings** | **Treasury<br>shares** | **Treasury<br>shares** | **Total**<br>**equity** | **Total**<br>**equity** |
|  **Balance as of January 1, 2021** | W | 2090558 | W | 1695778 | W | 14754747 | W | (8032) | W | 3588757 | W | (1136188) | W | 20985620 |
|  **Comprehensive income for the year** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  |  |  |  |  |  |  |  |  | 1438866 |  |  |  | 1438866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  | (298) |  |  |  |  |  | (298) |
|  **Total comprehensive income for the year** |  |  |  |  |  |  |  | (298) |  | 1438866 |  |  |  | 1438568 |
|  **Transactions with shareholders** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual dividends |  |  |  |  |  |  |  |  |  | (689653) |  |  |  | (689653) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consideration for exchaneable rights |  |  |  |  |  |  |  |  |  | (292226) |  |  |  | (292226) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  |  | 1142203 |  |  |  |  |  |  |  |  |  | 1142203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  | (71538) |  |  |  | (71538) |
|  **Total transactions with shareholders** |  |  |  | 1142203 |  |  |  |  |  | (1053417) |  |  |  | 88786 |
|  **Balance as of December 31, 2021** | W | 2090558 | W | 2837981 | W | 14754747 | W | (8330) | W | 3974206 | W | (1136188) | W | 22512974 |
|  **Balance as of January 1, 2022** | W | 2090558 | W | 2837981 | W | 14754747 | W | (8330) | W | 3974206 | W | (1136188) | W | 22512974 |
|  **Comprehensive income for the year** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  |  |  |  |  |  |  |  |  | 1684512 |  |  |  | 1684512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  | 2483 |  |  |  |  |  | 2483 |
|  **Total comprehensive income for the year** |  |  |  |  |  |  |  | 2483 |  | 1684512 |  |  |  | 1686995 |
|  **Transactions with shareholders** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual dividends |  |  |  |  |  |  |  |  |  | (853299) |  |  |  | (853299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quarterly dividends |  |  |  |  |  |  |  |  |  | (584452) |  |  |  | (584452) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement of shares |  |  |  |  |  |  |  |  |  | (300000) |  | 300000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  |  | 1596000 |  |  |  |  |  |  |  |  |  | 1596000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  | (126402) |  |  |  | (126402) |
|  **Total transactions with shareholders** |  |  |  | 1596000 |  |  |  |  |  | (1864153) |  | 300000 |  | 31847 |
|  **Balance as of December 31, 2022** | W | 2090558 | W | 4433981 | W | 14754747 | W | (5847) | W | 3794565 | W | (836188) | W | 24231816 |

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Separate Statements of Cash Flows** 

**Years Ended December 31, 2022 and 2021** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)*<br>|  |  |  |  |  |
|  | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  **Cash flows from operating activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  | W | 1684512 | W | 1438866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for non-cash items |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense |  |  | 6245 |  | 6506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses |  |  | 303 |  | 417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments |  |  | 5801 |  | 9230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest expense |  |  | 3289 |  | 4379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation losses (gains) on financial assets at fair value through profit or loss |  |  | 50002 |  | (355) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net other income |  |  | 2140 |  | (1668) |
|  |  |  | 67780 |  | 18509 |
| &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; Due from financial institutions |  |  | (30000) |  | (90000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets |  |  | (15263) |  | (2281) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  | 7011 |  | 4822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  |  | (21721) |  | (23835) |
|  |  |  | (59973) |  | (111294) |
|  **Net cash inflow from operating activities** |  |  | 1692319 |  | 1346081 |
|  **Cash flows from investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial assets at fair value through profit or loss |  |  | (1330000) |  | (3061906) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial assets at fair value through profit of loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial assets at fair value through profit of loss |  | 200000 |  | 3096540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of subsidiaries |  |  |  |  | (219268) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in loans measured at amortized cost |  |  | (273500) |  | (70000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and equipment |  |  | (1690) |  | (661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of property and equipment |  |  |  |  | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets |  |  | (1178) |  | (3603) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of intangible assets |  |  | 20 |  | 3482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in guarantee deposits paid |  |  | (2325) |  | (2358) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investing activities |  |  | (827) |  | (1165) |
|  **Net cash outflow from investing activities** |  |  | (1409500) |  | (258745) |
|  **Cash flows from financing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in borrowings |  |  |  |  | (100000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in debentures |  |  | 498898 |  | 389405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in debentures |  |  | (1100000) |  | (970000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to shareholders |  |  | (1437751) |  | (981879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of principal of lease liabilities |  |  | (584) |  | (535) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  | 1596000 |  | 1142203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid on hybrid securities |  |  | (126402) |  | (71538) |
|  **Net cash inflow (outflow) from financing activities** |  |  | (569839) |  | (592344) |
|  **Net increase in cash and cash equivalents** |  |  | (287020) |  | 494992 |
|  **Cash and cash equivalents at the beginning of the year** | 28 |  | 518073 |  | 23081 |
|  **Cash and cash equivalents at the end of the year** | 28 | W | 231053 | W | 518073 |

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**1. The Company** 

KB Financial Group Inc. (the "Company"), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfers with the former shareholders of Kookmin Bank, KB Investment & Securities Co., Ltd., KB Asset Management Co., Ltd., KB Real Estate Trust Co., Ltd., KB Investment Co., Ltd., KB Futures Co., Ltd., KB Credit Information Co., Ltd., and KB Data Systems Co., Ltd., and the Company's main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. The Company's share capital as of December 31, 2021, is W 2,090,558 million. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd., and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Company established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Company acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Company included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Company included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022.

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

**2. Basis of Preparation** 

**2.1 Application of Korean IFRS** 

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

The separate financial statements of the Company have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board ("IASB") that have been adopted by the Republic of Korea.

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

The separate financial statements have been prepared in accordance with Korean IFRS No.1027 *Separate Financial Statements*.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.1 The Company has applied the following amended standards for the first time for its annual reporting period commencing January 1, 2022.

*•* *Amendments to Korean IFRS No.1116 Leases - COVID-19-Related Rent Concessions, etc. beyond June 30, 2021* 

The application of the practical expedient, a lessee may elect not to assess whether a rent concession occurring as a direct consequence of the COVID-19 pandemic is a lease modification, is extended to lease payments originally due on or before 30 June 2022. A lessee shall apply the practical expedient consistently to eligible contracts with similar characteristics and in similar circumstances. These amendments do not have a significant impact on the financial statements.

*•* *Amendments to Korean IFRS No.1103 Business Combination – Reference to the Conceptual Framework* 

The amendments update a reference of definition of assets and liabilities to qualify for recognition as part of a business combination 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 Korean IFRS No.1037 *Provisions, Contingent Liabilities and Contingent Assets*, and Korean IFRS No.2121 *Levies*. The amendments also confirm that contingent assets should not be recognized at the acquisition date. These amendments do not have a significant impact on the financial statements.

*•* *Amendments to Korean IFRS No.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, as profit or loss. These amendments do not have a significant impact on the financial statements.

• Amendments to Korean IFRS No.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. These amendments do not have a significant impact on the financial statements.

*•* *Annual improvements to Korean IFRS 2018-2020* 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1101 First-time Adoption of Korean International Financial Reporting Standards – Subsidiary
as a first-time adopter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1109 *Financial Instruments – Fees in the '10 per cent' test for derecognition of financial liabilities* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1116 *Leases* – Lease incentives

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1041 *Agricultur* e – Measuring fair value

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.2 The following amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Company.

*•* *Amendments to Korean IFRS No.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 the right to defer settlement of the liability or the management's expectations thereof. Also, the settlement of liability includes the transfer of the entity's own equity instruments; however, it would be excluded if an option to settle the liability by the transfer of the entity's own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

*•* *Issuance of Korean IFRS No. 1117 Insurance Contracts* 

Korean IFRS No. 1117 *Insurance Contracts* will replace Korean IFRS No.1104 *Insurance Contracts*. This standard requires an entity to estimate future cash flows of an insurance contract and measure insurance liabilities using discount rates applied with assumptions and risks at the measurement date and recognize insurance revenue on an accrual basis including services (insurance coverage) provided to the policyholder by each annual reporting period. In addition, investment components (refunds due to termination and maturity) repaid to a policyholder even if an insured event does not occur, are excluded from insurance revenue, and net insurance income and net investment income are presented separately to enable users of the information to understand the sources of net income. This standard should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted for entities that applied Korean IFRS No. 1109 *Financial Instruments*. The Company does not expect that these amendments have a significant impact on the financial statements.

*•* *Amendments to Korean IFRS No.1001 Presentation of Financial Statements – Accounting Policy Disclosure* 

The amendments require an entity to define and disclose their material accounting policy information. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

*•* *Amendments to Korean IFRS No. 1008 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Accounting Estimates* 

The amendments introduce the definition of accounting estimates and clarify how to distinguish changes in accounting estimates from changes in accounting policies. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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2.1.2 The following amended standards have been published that are not mandatory for December 31, 2022 reporting period and have not been adopted by the Company. (cont'd)

*•* *Amendments to Korean IFRS No. 1012 Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction* 

The amendments narrow the scope of the deferred tax recognition exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

*•* *Amendments to Korean IFRS No. 1001 Presentation of Financial Statements - Disclosure of gains or losses on valuation of financial liabilities subject to exercise price adjustment conditions* 

The amendments require disclosures about gains or losses on valuation occurred for the reporting period (but are limited to those included in profit or loss) for the conversion options or warrants (or financial liabilities with warrants), if all or part of the financial instrument whose exercise price is adjusted due to the issuers' stock price fluctuations, are classified as financial liabilities according to paragraph 11 of Korean IFRS No. 1032 *Financial Instruments: Presentation*. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the consolidated financial statements.

**2.2 Measurement Basis** 

The separate financial statements have been prepared under the historical cost convention unless otherwise specified.

**2.3 Functional and Presentation Currency** 

Items included in the separate financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates ("functional currency"). The separate financial statements are presented in Korean won, which is the Company's functional and presentation currency.

**2.4 Critical Accounting Estimates** 

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

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

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

2.4.1 Income taxes

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

2.4.2 Fair value of financial instruments

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

As described in the significant accounting policies in Note 3.1 Recognition and Measurement of Financial Instruments, diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

2.4.3 Net defined benefit liability

The present value of the net defined benefit liability is affected by changes in the various factors determined by the actuarial method.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3. Significant Accounting Policies** 

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

**3.1 Recognition and Measurement of Financial Instruments** 

3.1.1 Initial recognition

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

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

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

3.1.2 Subsequent measurement

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

3.1.2.1 Amortized cost

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

3.1.2.2 Fair value

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.1.2.2 Fair value (cont'd)

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

The Company uses valuation models that are commonly used by market participants and customized for the Company to determine fair values of common over-the-counter (OTC) derivatives such as options, interest rate swaps, and currency swaps which are based on the inputs observable in markets. However, for some complex financial instruments that require fair value measurement by valuation techniques based on certain assumptions because some or all inputs used in the model are not observable in the market, the Company uses internal valuation models developed from general valuation models or valuation results from independent external valuation institutions.

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

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

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

Level 3 : Unobservable inputs for the asset or liability

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

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

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

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.1.3 Derecognition

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

3.1.3.1 Derecognition of financial assets

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

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

The Company writes off a financial asset when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. In general, the Company considers write-off when it is determined that the debtor does not have sufficient funds or income to cover the principal and interest. The write-off decision is made in accordance with internal regulations. After the write-off, the Company can collect the written-off loans continuously according to the internal policy. Recovered amounts from financial assets previously written-off are recognized in profit or loss.

3.1.3.2 Derecognition of financial liabilities

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

3.1.4 Offsetting

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

**3.2 Cash and Due from Financial Institutions** 

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.3 Non-derivative Financial Assets** 

3.3.1 Financial assets at fair value through profit or loss

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

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

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

3.3.2 Financial assets at fair value through other comprehensive income

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

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

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

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

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

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

3.3.3 Financial assets at amortized cost

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.4 Expected Credit Losses of Financial Assets (Debt Instruments)** 

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Simplified approach: for trade receivables, contract assets, and lease receivables

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

Application of general approach is differentiated depending on whether credit risk has increased significantly after initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures loss allowances for that financial instrument at an amount equal to 12-month expected credit losses, whereas if the credit risk on a financial instrument has increased significantly since initial recognition, the Company measures loss allowances for a financial instrument at an amount equal to the lifetime expected credit losses. Lifetime is the period until the contractual maturity date of financial instruments and means the expected life.

The Company assesses whether the credit risk has increased significantly using the following criteria, and if one or more of the following criteria are met, it is deemed as significant increase in credit risk. If the contractual cash flows of a financial asset have been renegotiated or modified, the Company assesses whether the credit risk has increased significantly using the same following criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• More than 30 days past due

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt restructuring (except for impaired financial assets) and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Credit delinquency information of Korea Federation of Banks, etc.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 90 days or more past due

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legal proceedings related to collection

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A borrower registered on the credit management list of Korea Federation of Banks

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A corporate borrower with the credit rating C and D

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt restructuring, etc.

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.4.1 Forward-looking information

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

The Company assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses.

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

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| | |
|:---|:---|
| **Key macroeconomic variables** | **Correlation between the major macroeconomic**<br> **variables and the credit risk** |
|  Domestic GDP growth rate | (-) |
|  Composite stock index | (-) |
|  Rate of change of construction investment | (-) |
|  Rate of change of housing transaction price index | (-) |
|  Interest rate spread | (+) |
|  Private consumption growth rate | (-) |

---

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

3.4.2 Measuring expected credit losses on financial assets at amortized cost

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

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

3.4.2.1 Individual assessment of impairment

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.4.2.2 Collective assessment of impairment

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

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

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

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

**3.5 Revenue Recognition** 

The Company recognizes revenues in accordance with the following steps determined in accordance with Korean IFRS No. 1115 *Revenue from Contracts with Customers*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 1: Identify the contract with a customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 2: Identify the performance obligations in the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 3: Determine the transaction price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Step 4: Allocate the transaction price to the performance obligations in the contract.

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

3.5.1 Interest income and expense

Interest income and expense on debt securities at fair value through profit or loss (excluding beneficiary certificates, equity investments, and other debt securities), loans, financial instruments at amortized cost, and debt securities at fair value through other comprehensive income are recognized in the statement of comprehensive income using the effective interest method in accordance with Korean IFRS No.1109 *Financial Instruments*. The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or interest expense over the relevant period.

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.5.1 Interest income and expense (cont'd)

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

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

3.5.2 Fee and commission income

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

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

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

3.5.2.2 Fees related to performance obligations satisfied over time

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

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

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

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

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

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

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

3.5.4 Dividend income

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.6 Investments in Subsidiaries and Associates** 

Investments in subsidiaries and associates are accounted at cost method in accordance with Korean IFRS No. 1027. The Company determines at each reporting period whether there is any objective evidence that the investments in the subsidiaries and associates are impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the subsidiaries or associates and its carrying value.

**3.7 Property and Equipment** 

3.7.1 Recognition and measurement

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

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

Subsequent expenditures are capitalized only when they prolong the useful life or enhance values of the assets but the costs of the day-to-day servicing of the assets such as repair and maintenance costs are recognized in profit or loss as incurred. When part of an item of property and equipment has a useful life different from that of the entire asset, it is recognized as a separate asset.

3.7.2 Depreciation

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

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

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

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| | | |
|:---|:---|:---|
| **Property and equipment** | **Depreciation method** | **Estimated useful life** |
| Leasehold improvements<br> Equipment and vehicles | Declining-balance<br> Declining-balance | 4 years<br> 4 years |

---

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.8 Intangible Assets** 

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

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

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| | | |
|:---|:---|:---|
| **Intangible assets** | **Amortization method** | **Estimated useful life** |
| Software | Straight-line | 4 years |
| Others | Straight-line | 4 ~ 19 years |

---

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Where an intangible asset is not being amortized because its useful life is indefinite, the Company carries out a review in each accounting period to confirm whether events and circumstances still support an indefinite useful life assessment. If they do not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate.

**3.9 Impairment of Non-financial Assets** 

The Company assesses at the end of each reporting period whether there is any indication that a non-financial asset, except for (a) deferred income tax assets, (b) assets arising from employee benefits and (c) non-current assets (or group of assets to be sold) classified as held for sale, may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset.

The recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Company determines the recoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit that are discounted by a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss and recognized immediately in profit or loss.

**3.10 Provisions** 

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

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.11 Equity Instrument Issued by the Company** 

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

3.11.1 Ordinary shares

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

3.11.2 Hybrid securities

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

**3.12 Employee Compensation and Benefits** 

3.12.1 Post-employment benefits

3.12.1.1 Defined contribution plans

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

3.12.1.2 Defined benefit plans

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

The present value of the defined benefit obligation is calculated annually by independent actuaries using the Projected Unit Credit method. The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the reporting period on high quality corporate bonds. The currency and term of the corporate bonds are consistent with the currency and estimated term of the post-employment benefit obligations. Actuarial gains and losses resulted from changes in actuarial assumptions and experience adjustments are recognized in other comprehensive income.

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

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

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.12.2 Short-term employee benefits

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

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

3.12.3 Share-based payment

The Company provides stock grants program to executives and employees of the Company and its subsidiaries. When stock grants are exercised, the Company can either select to distribute newly issued shares or treasury shares or compensate in cash based on the share price.

For a share-based payment transaction in which the terms of the arrangement provide the Company with the choice of whether to settle in cash or by issuing equity instruments, the Company accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions because the Company determines that it has a present obligation to settle in cash based on a past practice and a stated policy of settling in cash.

Therefore, the Company measures the liability incurred as consideration for the service received at fair value and recognizes related expense and accrued expense over the vesting periods. Until the liability is settled, the Company remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

3.12.4 Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or an employee's decision to accept an offer of benefits in exchange for the termination of employment. The Company recognizes a liability and expense for termination benefits at the earlier of the following dates; when the Company can no longer withdraw the offer of those benefits and when the Company recognizes costs for a restructuring that is within the scope of Korean IFRS No. 1037 and involves the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, then the termination benefits are discounted to present value.

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**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.13 Income Tax Expense** 

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

3.13.1 Current income tax

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

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

3.13.2 Deferred income tax

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

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

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.13.3 Uncertain tax positions

Uncertain tax positions arise from tax treatments applied by the Company which may be challenged by the tax authorities due to the complexity of the transaction or different interpretation of the tax laws, such as a claim for rectification, a claim for a refund related to additional tax or a tax investigation by the tax authorities. The Company recognizes its uncertain tax positions in the financial statements in accordance with Korean IFRS No. 1012 and Interpretation of Korean IFRS No. 2123. The income tax asset is recognized if a tax refund is probable for taxes levied by the tax authority, and the amount to be paid as a result of the tax investigation and others is recognized as the current tax payable. However, penalty tax and additional refund on tax are regarded as penalty or interest and are accounted for in accordance with Korean IFRS No. 1037.

**3.14 Earnings per Share** 

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

**3.15 Lease** 

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fixed payments (including in-substance fixed payments), less any lease
incentives receivable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Variable lease payments that depend on an index or a rate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amounts expected to be payable by the lessee under residual value guarantees

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

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

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.15 Lease (cont'd)

Right-of-use assets are measured at cost comprising the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount of the initial measurement of the lease liability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any lease payments made at or before the commencement date, less any lease incentives received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any initial direct costs incurred by the lessee, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An estimate of restoration costs

However, the Company can elect not to apply the requirements of Korean IFRS No. 1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under $5,000).

The right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

For sale and leaseback transactions, the Company applies the requirements of Korean IFRS No. 1115 *Revenue from Contracts with Customers*, to determine whether the transfer of an asset is accounted for as a sale of that asset.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**4. Financial Risk Management** 

4.1 Summary

4.1.1 Overview of financial risk management policy

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

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

The Company's risk management system focuses on efficiently supporting long-term strategy and management decisions of the Company by increasing risk transparency, preventing risk transfer between subsidiaries and preemptive response to rapidly changing financial environments. Credit risk, market risk, liquidity risk, operational risk, interest rate risk, insurance risk, credit concentration risk, strategy risk, and reputation risk are recognized as significant risks.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

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

4.1.2.2 Risk Management Council

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

4.1.2.3 Risk Management Department

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

**4.2 Credit Risk** 

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty's default, breach of contract, and deterioration of credit quality. For risk management purposes, the Company considers default risk of individual borrowers.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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4.2.2 Credit risk management

The Company measures the expected losses of assets subject to credit risk management and uses them as a management indicator.

4.2.3 Maximum exposure to credit risk

The Company's maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Due from financial institutions | W | 351056 | W | 608076 |
|  Loans measured at amortized cost \* |  | 522326 |  | 249128 |
|  Loans measured at fair value through profit or loss |  | 343525 |  | 51154 |
|  Other financial assets \* |  | 44841 |  | 36078 |
|  | W | 1261748 | W | 944436 |

---

\* After netting of allowance

4.2.4 Credit risk of loans

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

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

Credit qualities of loans measured at amortized cost as of December 31, 2022 and 2021, are classified as follows:

*(In millions of Korean won)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
| | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 523500 | W | W | W | W | 523500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |
|  | W | 523500 | W | W | W | W | 523500 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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4.2.4 Credit risk of loans (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 250000 | W | W | W | W | 250000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |
|  | W | 250000 | W | W | W | W | 250000 |

---

\* Before netting of allowance

Credit qualities of loans graded according to the probability of default as December 31, 2022 and 2021, are as follows:

---

| | |
|:---|:---|
|  | **Range of**<br>**probability**<br>**of default (%)** |
|  Grade 1 | 0.0 ~ 1 |
|  Grade 2 | 1.0 ~ 5 |
|  Grade 3 | 5.0 ~ 15 |
|  Grade 4 | 15.0 ~ 30 |
|  Grade 5 | 30.0 ~ |

---

4.2.5 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 351056 | W | W | W | W | 351056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |
|  | W | 351056 | W | W | W | W | 351056 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.5 Credit risk of due from financial institutions (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Not applying<br>expected<br>credit losses** | **Total** | **Total** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | W | 608076 | W | W | W | W | 608076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |  |
|  | W | 608076 | W | W | W | W | 608076 |

---

4.2.6 Credit risk concentration analysis

4.2.6.1 Classifications of loans by country as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Corporate**<br>**loans \*** | **Corporate**<br>**loans \*** | **%** | **Allowances** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Korea | W | 867025 | 100.00 | W | (1174) | W | 865851 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Corporate**<br>**loans \*** | **Corporate**<br>**loans \*** | **%** | **Allowances** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Korea | W | 301154 | 100.00 | W | (872) | W | 300282 |

---

\* Amount includes loans measured at fair value through profit or loss and amortized cost. 

4.2.6.2 Classifications of corporate loans by industry as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Corporate**<br>**loans \*** | **Corporate**<br>**loans \*** | **%** | **Allowances** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Financial institutions | W | 867025 | 100.00 | W | (1174) | W | 865851 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Corporate**<br>**loans \*** | **Corporate**<br>**loans \*** | **%** | **Allowances** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Financial institutions | W | 301154 | 100.00 | W | (872) | W | 300282 |

---

\* Amount includes loans measured at fair value through profit or loss and amortized cost. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.6.3 Classifications of due from financial institutions by industry as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Amount** | **Amount** | **%** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
|  Financial institutions | W | 351056 | 100.00 | W | W | 351056 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Amount** | **Amount** | **%** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
|  Financial institutions | W | 608076 | 100.00 | W | W | 608076 |

---

4.2.6.4 Classifications of due from financial institutions by country as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Amount** | **Amount** | **%** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
|  Korea | W | 351056 | 100.00 | W | W | 351056 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Amount** | **Amount** | **%** | **Allowances** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
|  Korea | W | 608076 | 100.00 | W | W | 608076 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Company becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Company manages its liquidity risk through analysis of the contractual maturity of all financial assets and liabilities and discloses in six categories such as on demand, less than one month, between one month to three months, between three months to one year, between one year to five years, and over five years.

4.3.2. Liquidity risk management

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

4.3.3. Analysis of remaining contractual maturity of financial liabilities

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

Remaining contractual maturity of financial liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **On**<br>**Demand** | **Up to**<br>**1 month** | **Up to**<br>**1 month** | **1-3**<br>**months** | **1-3**<br>**months** | **3-12**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **1-5**<br>**years** | **Over 5**<br>**years** | **Over 5**<br>**years** | **Total** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | W | W | 275723 | W | 160712 | W | 756380 | W | 2863695 | W | 1330748 | W | 5387258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  |  | 49 |  | 88 |  | 381 |  | 330 |  |  |  | 848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  |  | 1620 |  |  |  |  |  |  |  |  |  | 1620 |
|  | W | W | 277392 | W | 160800 | W | 756761 | W | 2864025 | W | 1330748 | W | 5389726 |

---

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **On**<br>**Demand** | **Up to**<br>**1 month** | **Up to**<br>**1 month** | **1-3**<br>**months** | **1-3**<br>**months** | **3-12**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **1-5**<br>**years** | **Over 5**<br>**years** | **Over 5**<br>**years** | **Total** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | W | W | 5723 | W | 281461 | W | 910178 | W | 3398017 | W | 1403061 | W | 5998440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  |  | 40 |  | 63 |  | 263 |  | 333 |  |  |  | 699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  |  | 1491 |  |  |  |  |  |  |  |  |  | 1491 |
|  | W | W | 7254 | W | 281524 | W | 910441 | W | 3398350 | W | 1403061 | W | 6000630 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc. The Company manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position.

4.4.2 Trading position

In accordance with Financial Holding Companies Act, the Company's main business is to control financial companies or companies closely related to the financial service. And the Company cannot perform any other business other than managing activities as a holding company, therefore there is no risk of trading position.

4.4.3 Non-trading position

Non-trading position refers to the part except trading position, and the main risk the Company is managing is interest rate risk.

4.4.3.1 Interest rate risk

(a) Definition of interest rate risk

Interest rate risk refers to the risk of changes in the value (fair value) of the items in the statement of financial position due to changes in interest rate and the risk of changes in cash flows related to interest income and interest expense arising from investment and financing activities.

(b) Observation method and management indicator on interest rate risk

The main objective of interest rate risk management is to protect the value changes from interest rate fluctuations. In addition to the Interest Rate Risk in the Banking Book ("IRRBB") standard methodology required for disclosure, the Company applies the IRRBB methodology to measure and manage interest rate risk in a historical-simulation VaR method including interest rate volatility during the past financial crisis (FY2008-FY2009).

(c) Changes in Economic Value of Equity ("ΔEVE") and Changes in Net Interest Income ("ΔNII")

ΔEVE means changes in equity and earnings due to the changes in value of interest-sensitive assets and liabilities, etc. when interest rate changes, and ΔNII means changes in net interest income. The Company calculates ΔEVE by applying following six interest rate shock and stress scenarios, and ΔNII by applying parallel shock up and parallel shock down scenarios. The interest rate risk for the interest rate shock and stress scenario is calculated only when the risk for each scenario is a loss.

• Scenario 1 : Parallel shock up

• Scenario 2 : Parallel shock down

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

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

• Scenario 5 : Short rates shock up

• Scenario 6 : Short rates shock down

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.1 Interest rate risk (cont'd)

ΔEVE is maximum out of six interest rate shock and stress scenarios, and ΔNII is maximum of parallel shock up and parallel shock down scenarios. Results as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  ΔEVE | W | 819850 | W | 733729 |
|  ΔNII |  | 9484 |  | 1530 |

---

4.5 Capital Management

The Company as a financial holding company under the Financial Holding Companies Act, complies with the consolidated capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements ("BIS") in June 2011 and was implemented in Korea in December 2013. According to this standard, the Group is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 8.0%, Tier 1 Capital ratio of 9.5%, and Total Capital ratio of 11.5%) as of December 31, 2022.

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

• Common Equity Tier 1 Capital: Common equity Tier 1 Capital is the first to take losses of the Group and is the
last to be compensated in liquidation of the Group and not repaid except for liquidation. It includes capital, capital surplus, retained earnings, non-controlling interests of the consolidated subsidiaries,
accumulated other comprehensive income, and other capital surplus, etc.

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

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

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

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

Internal capital refers to the capital required to prevent the Group's insolvency from future unexpected losses.

The Group operates a system to measure, allocate and manage internal capital to major subsidiaries by risk type.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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4.5 Capital Management (cont'd)

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

Details of the Company's capital adequacy ratio in accordance with Basel III requirements as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Total Capital: | W | 48969952 | W | 45882765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital |  | 45032020 |  | 42305442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital |  | 40103660 |  | 39144259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional Tier 1 Capital |  | 4928360 |  | 3161183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 2 Capital |  | 3937932 |  | 3577323 |
|  Risk-Weighted Assets: |  | 302967993 |  | 290913570 |
|  Total Capital ratio (%): |  | 16.16 |  | 15.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital ratio (%) |  | 14.86 |  | 14.54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital ratio (%) |  | 13.24 |  | 13.46 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**5. Financial Assets and Financial Liabilities** 

5.1 Classification and Fair Value of Financial Instruments

5.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Carrying amount** | **Carrying amount** | **Fair value** | **Fair value** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial assets at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | W | 874171 | W | 874171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates |  | 304618 |  | 304618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 343525 |  | 343525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial assets at amortized cost** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  | 351056 |  | 351056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 522326 |  | 522326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 44841 |  | 44841 |
|  | W | 2440537 | W | 2440537 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial liabilities at amortized cost** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | W | 4956949 | W | 4576973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 13331 |  | 13331 |
|  | W | 4970280 | W | 4590304 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Carrying amount** | **Carrying amount** | **Fair value** | **Fair value** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial assets at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | W | 389606 | W | 389606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 51154 |  | 51154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial assets at amortized cost** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions |  | 608076 |  | 608076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 249128 |  | 249128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 36078 |  | 36078 |
|  | W | 1334042 | W | 1334042 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial liabilities at amortized cost** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | W | 5552791 | W | 5509648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 13913 |  | 13913 |
|  | W | 5566704 | W | 5523561 |

---

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

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

5.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2022 and 2021, are as follows: (cont'd)

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

---

| | |
|:---|:---|
| **Cash and due from**<br> &nbsp;&nbsp;&nbsp;&nbsp;**financial institutions** | Fair value of cash is same as carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable on demand. Fair value of general deposit is measured using Discounted Cash Flow ("DCF") Model. |
| **Securities** | Fair value of financial instruments that are quoted in an active market is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments among DCF Model, Imputed Market Value Model, Free Cash Flow to Equity Model, Dividend Discount Model, Risk Adjusted Discount Rate Method, and Net Asset Value Method. |
| **Derivatives** | Fair value of exchange traded derivatives is determined using quoted price in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Company uses internally developed valuation models that are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including the Finite Difference Method ("FDM"), and the MonteCarlo Simulation or valuation results from independent external professional valuation institution. |
| **Loans measured at**<br> **amortized cost** | Fair value of loans is determined using DCF model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate. |
| **Borrowings** | DCF model is used to determine the fair value of borrowings, but in the case of short-term maturity, carrying amount is a reasonable approximation of fair value. |
| **Debentures** | Fair value is determined by using valuation results of external professional valuation institutions, which are calculated using market inputs. |
| **Other financial assets**<br> &nbsp;&nbsp;&nbsp;&nbsp;**and other financial**<br> &nbsp;&nbsp;&nbsp;&nbsp;**liabilities** | Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions and their maturities are relatively short or not defined. |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

5.1.2 Fair value hierarchy

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

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

---

| | |
|:---|:---|
| Level 1 : | The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. |
| Level 2 : | The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. |
| Level 3 : | The fair values are based on unobservable inputs for the asset or liability. |

---

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

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

Fair value hierarchy of financial assets at fair value in the statements of financial position as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Total** | **Total** |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 2** | **Level 3** | **Level 3** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | W | W |  | W | 874171 | W | 874171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates |  |  | 304618 |  |  |  | 304618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  | 343525 |  |  |  | 343525 |
|  | W | W | 648143 | W | 874171 | W | 1522314 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Total** | **Total** |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 2** | **Level 3** | **Level 3** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | W | W |  | W | 389606 | W | 389606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  | 51154 |  |  |  | 51154 |
|  | W | W | 51154 | W | 389606 | W | 440760 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

5.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the statements of financial position (cont'd)

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the statements of financial position as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value** | **Fair value** | **Valuation**<br> **techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
|  Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | W | 304618 | DCF model | Interest rate,<br> Discount rate, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 343525 | DCF model | Interest rate,<br> Discount rate, etc. |
|  | W | 648163 |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair value** | **Fair value** | **Valuation**<br> **techniques** | **Inputs** |
|  **Financial assets** |  |  |  |  |
|  Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | W | 51154 | DCF model | Interest rate,<br> Discount rate, etc. |

---

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

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Total** | **Total** |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 2** | **Level 3** | **Level 3** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | W | W | 351056 | W |  | W | 351056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost <sup>2</sup> |  |  |  |  | 522326 |  | 522326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>3</sup> |  |  |  |  | 44841 |  | 44841 |
|  | W | W | 351056 | W | 567167 | W | 918223 |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | W | W | 4576973 | W |  | W | 4576973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>3</sup> |  |  |  |  | 13331 |  | 13331 |
|  | W | W | 4576973 | W | 13331 | W | 4590304 |

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | **Total** | **Total** |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 2** | **Level 3** | **Level 3** | **Total** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | W | W | 608076 | W |  | W | 608076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost <sup>2</sup> |  |  |  |  | 249128 |  | 249128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>3</sup> |  |  |  |  | 36078 |  | 36078 |
|  | W | W | 608076 | W | 285206 | W | 893282 |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | W | W | 5509648 | W |  | W | 5509648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>3</sup> |  |  |  |  | 13913 |  | 13913 |
|  | W | W | 5509648 | W | 13913 | W | 5523561 |

---

<sup>1</sup> Because due from financial institutions classified as level 2 are deposits on demand and with remaining maturities of less than one year, carrying amounts are reasonable approximations of fair values. 

<sup>2</sup> Because loans measured at amortized cost classified as level 3 are loans with residual maturity of less than one year, carrying amounts are reasonable approximations of fair values. 

<sup>3</sup> For other financial assets and other financial liabilities classified as level 3, carrying amounts are reasonable approximations of fair values. 

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

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Fair value** | **Fair value** | **Fair value** | **Fair value** | | | | |
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** | **Valuation<br>techniques** | **Valuation<br>techniques** | **Inputs** | **Inputs** |
|  **Financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | W | 4576973 | W | 5509648 |  | DCF model |  | Discount rate |

---

**5.2 Disclosure of Fair Value Hierarchy Level 3** 

5.2.1 Valuation policy and process of Level 3 fair value

The Company uses external, independent and qualified valuation service to determine the fair value of financial instruments at the end of every reporting period.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

5.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2021** | **2021** |
| *(In millions of Korean won)* | **Financial assets**<br>**at fair value**<br>**through profit or loss** | **Financial assets**<br>**at fair value**<br>**through profit or loss** | **Financial assets**<br>**at fair value**<br>**through profit or loss** | **Financial assets**<br>**at fair value**<br>**through profit or loss** |
|  Beginning | W | 389606 | W | 388895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gains or losses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Profit or loss |  | (45435) |  | 711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Other comprehensive income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases |  | 530000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlements |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers into Level 3 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers out of Level 3 |  |  |  |  |
|  Ending | W | 874171 | W | 389606 |

---

5.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Losses on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Losses on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Other<br>operating<br>income** | **Net<br>interest<br>income** | **Gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Other<br>operating<br>income** | **Net<br>interest<br>income** |
|  Total gains (losses) included in profit or loss for the period | W | (45435) | W | W | W | 711 | W | W |
|  Total gains (losses) for the period included in profit or loss for financial instruments held at the end of the reporting period |  | (45435) |  |  |  | 711 |  |  |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

5.2.3 Sensitivity analysis of changes in unobservable inputs

5.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair<br>value** | **Valuation<br>techniques** | **Inputs** | **Unobservable inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of unobservable<br>inputs to fair value** |
|  **Financial assets** | **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | W874,171 | Hull and White Model,<br> MonteCarlo<br> Simulation | Matrix YTM,<br> Additional spread by grade,<br> Risk spread of company,<br> Valid credit rating,<br> Disclosed information of securities,<br> Estimated volatility of Interest rate | Discount rate | 5.54 ~ 7.05 | The lower the discount rate,<br> the higher the fair value |
|  |  |  |  | Volatility of interest rate | 0.64 | The higher the volatility,<br> the higher the fair value fluctuation |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair<br>value** | **Valuation<br>techniques** | **Inputs** | **Unobservable inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of unobservable<br>inputs to fair value** |
|  **Financial assets** | **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | W389,606 | Hull and White Model,<br> MonteCarlo<br> Simulation | Matrix YTM,<br> Additional spread by grade,<br> Risk spread of company,<br> Valid credit rating,<br> Disclosed information of securities,<br> Estimated volatility of Interest rate | Discount rate | 2.30 ~ 5.05 | The lower the discount rate,<br> the higher the fair value |
|  |  |  |  | Volatility of interest rate | 0.46 | The higher the volatility,<br> the higher the fair value fluctuation |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

5.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. There are hybrid securities whose fair value changes are recognized in profit or loss.

Results of the sensitivity analysis of changes in unobservable inputs as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
| *(In millions of Korean won)* | **Favorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** | **Unfavorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** |
|  **Financial assets** |  |  |  |  |  |  |
|  Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities \* | W | 10460 | W | (10199) | W | W |

---

\* The changes in fair value are calculated by increasing or decreasing discount rates (5.54% ~ 7.05%) by 1%, which are principal unobservable input parameters. 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
| *(In millions of Korean won)* | **Favorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** | **Unfavorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** |
|  **Financial assets** |  |  |  |  |  |  |
|  Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: | Financial assets at fair value through profit or loss: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities \* | W | 8316 | W | (8072) | W | W |

---

\* The changes in fair value are calculated by increasing or decreasing discount rates (2.30% ~ 5.05%) by 1%, which are principal unobservable input parameters. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**6. Due from Financial Institutions** 

6.1 Details of due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial Institution** | **Interest rate (%)**<br>**as of**<br>**December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Due from financial institutions in Korean won | Due from banks | Kookmin Bank | 0.00 ~ 1.20 | W | 231056 | W | 518076 |
|  Due from financial institutions in Korean won | Due from banks | KB Savings Bank Co., Ltd. | 2.50 ~ 2.90 |  | 120000 |  | 90000 |
|  |  |  |  | W | 351056 | W | 608076 |

---

6.2 Details of a maturity analysis of due from financial institutions other than restricted due from financial institutions, as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2022** |
| *(In millions of Korean won)* | **Up to**<br>**3 months** | **Up to**<br>**3 months** | **3~6**<br>**months** | **3~6**<br>**months** | **6~12<br>months** | **6~12<br>months** | **1~3**<br>**years** | **1~3**<br>**years** | **Over**<br>**3 years** | **Total** | **Total** |
|  Due from financial institutions in Korean won | W | 231053 | W | 30000 | W | 60000 | W | 30000 | W | W | 351053 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |  |  |  |  |
|  | **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** |
|  | **Up to**<br>**3 months** | **Up to**<br>**3 months** | **3~6**<br>**months** | **3~6**<br>**months** | **6~12<br>months** | **1~3**<br>**years** | **Over**<br>**3 years** | **Total** | **Total** |
|  Due from financial institutions in Korean won | W | 518073 | W | 90000 | W | W | W | W | 608073 |

---

6.3 Details of restricted due from financial institution as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Financial<br>Institution** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** | **Reasons of restriction** |
|  Due from financial institutions in Korean won | Kookmin Bank | W | 3 | W | 3 | Pledged as collateral for the overdraft account |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**7. Financial Assets at Fair Value through Profit or Loss** 

Details of financial assets at fair value through profit or loss as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | W | 874171 | W | 389606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates |  | 304618 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 343525 |  | 51154 |
|  | W | 1522314 | W | 440760 |

---

**8. Loans Measured at Amortized Cost** 

8.1 Details of loans measured at amortized cost as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Loans measured at amortized cost | W | 523500 | W | 250000 |
|  Less: Allowances for loan losses |  | (1174) |  | (872) |
|  | W | 522326 | W | 249128 |

---

8.2 Details of loan types and customer types of loans to customers other than banks, as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Retail** | **Corporate** | **Corporate** | **Credit card** | **Total** | **Total** |
|  Loans | W | W | 523500 | W | W | 523500 |
|  Proportion (%) |  |  | 100.00 |  |  | 100.00 |
|  Less: Allowances |  |  | (1174) |  |  | (1174) |
|  | W | W | 522326 | W | W | 522326 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Retail** | **Corporate** | **Corporate** | **Credit card** | **Total** | **Total** |
|  Loans | W | W | 250000 | W | W | 250000 |
|  Proportion (%) |  |  | 100.00 |  |  | 100.00 |
|  Less: Allowances |  |  | (872) |  |  | (872) |
|  | W | W | 249128 | W | W | 249128 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**9. Investments in Subsidiaries** 

9.1 Details of subsidiaries as of December 31, 2022, are as follows:

---

| | | |
|:---|:---|:---|
| **Name of subsidiaries** | **Industry** | **Location** |
| Kookmin Bank | Banking and foreign exchange transaction | Korea |
| KB Securities Co., Ltd. | Financial investment | Korea |
| KB Insurance Co., Ltd. | Non-life insurance | Korea |
| KB Kookmin Card Co., Ltd. | Credit card and installment financial business | Korea |
| KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) | Life insurance | Korea |
| KB Asset Management Co., Ltd. | Investment advisory and investment trust | Korea |
| KB Capital Co., Ltd. | Financial leasing | Korea |
| KB Life Insurance Co., Ltd. | Life insurance | Korea |
| KB Real Estate Trust Co., Ltd. | Real estate trust management | Korea |
| KB Savings Bank Co., Ltd. | Savings banking | Korea |
| KB Investment Co., Ltd. | Capital investment | Korea |
| KB Data System Co., Ltd. | System software, development and supply | Korea |
| KB Credit Information Co., Ltd. | Collection of receivables and credit investigation | Korea |

---

9.2 Details of investments in subsidiaries as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won, except for shares)*<br>**Name of subsidiaries** | **As of December 31, 2022** | **As of December 31, 2022** | **Carrying amount** | **Carrying amount** | **Carrying amount** | **Carrying amount** |
| *(In millions of Korean won, except for shares)*<br>**Name of subsidiaries** | **Number of**<br>**issued shares** | **Ownership**<br>**(%)** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Kookmin Bank | 404379116 | 100.00 | W | 14821721 | W | 14821721 |
|  KB Securities Co., Ltd. | 298620424 | 100.00 |  | 3342391 |  | 3342391 |
|  KB Insurance Co., Ltd. | 66500000 | 100.00 |  | 2375430 |  | 2375430 |
|  KB Kookmin Card Co., Ltd. | 92000000 | 100.00 |  | 1953175 |  | 1953175 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) | 15000000 | 100.00 |  | 2310054 |  | 2310054 |
|  KB Asset Management Co., Ltd. | 7667550 | 100.00 |  | 96312 |  | 96312 |
|  KB Capital Co., Ltd.  | 32175147 | 100.00 |  | 873811 |  | 873811 |
|  KB Life Insurance Co., Ltd. | 91200000 | 100.00 |  | 485314 |  | 485314 |
|  KB Real Estate Trust Co., Ltd. | 16000000 | 100.00 |  | 121553 |  | 121553 |
|  KB Savings Bank Co., Ltd.  | 8001912 | 100.00 |  | 176813 |  | 176813 |
|  KB Investment Co., Ltd. | 22525328 | 100.00 |  | 154910 |  | 154910 |
|  KB Data System Co., Ltd. | 800000 | 100.00 |  | 6334 |  | 6334 |
|  KB Credit Information Co., Ltd.  | 1252400 | 100.00 |  | 23620 |  | 23620 |
|  |  |  | W | 26741438 | W | 26741438 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

9.3 Changes in accumulated impairment losses of investments in subsidiaries for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Impairment** | **Reversal** | **Ending** | **Ending** |
|  Accumulated impairment losses of investments in subsidiaries | W | (51742) | W | W | W | (51742) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Impairment** | **Reversal** | **Reversal** | **Ending** | **Ending** |
|  Accumulated impairment losses of investments in subsidiaries | W | (54031) | W | W | 2289 | W | (51742) |

---

**10. Property and Equipment** 

10.1 Details of property and equipment as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>depreciation** | **Accumulated<br>depreciation** | **Accumulated<br>impairment<br>losses** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Leasehold improvements | W | 7768 | W | (6424) | W | W | 1344 |
|  Equipment and others |  | 7857 |  | (6511) |  |  | 1346 |
|  Right-of-use assets (buildings) |  | 1981 |  | (1620) |  |  | 361 |
|  Right-of-use assets (vehicles) |  | 2052 |  | (1592) |  |  | 460 |
|  Right-of-use assets (others) |  | 197 |  | (156) |  |  | 41 |
|  | W | 19855 | W | (16303) | W | W | 3552 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition<br>cost** | **Acquisition<br>cost** | **Accumulated<br>depreciation** | **Accumulated<br>depreciation** | **Accumulated<br>impairment<br>losses** | **Carrying**<br>**amount** | **Carrying**<br>**amount** |
|  Leasehold improvements | W | 6856 | W | (5095) | W | W | 1761 |
|  Equipment and others |  | 7079 |  | (5341) |  |  | 1738 |
|  Right-of-use assets (buildings) |  | 1684 |  | (1155) |  |  | 529 |
|  Right-of-use assets (vehicles) |  | 1616 |  | (1239) |  |  | 377 |
|  Right-of-use assets (others) |  | 143 |  | (104) |  |  | 39 |
|  | W | 17378 | W | (12934) | W | W | 4444 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

10.2 Changes in property and equipment for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Disposal** | **Disposal** | **Depreciation** | **Depreciation** | **Ending** | **Ending** |
|  Leasehold improvements | W | 1761 | W | 912 | W |  | W | (1329) | W | 1344 |
|  Equipment and others |  | 1738 |  | 778 |  |  |  | (1170) |  | 1346 |
|  Right-of-use assets (buildings) |  | 529 |  | 296 |  |  |  | (464) |  | 361 |
|  Right-of-use assets (vehicles) |  | 377 |  | 704 |  | (13) |  | (608) |  | 460 |
|  Right-of-use assets (others) |  | 39 |  | 54 |  |  |  | (52) |  | 41 |
|  | W | 4444 | W | 2744 | W | (13) | W | (3623) | W | 3552 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Disposal** | **Disposal** | **Depreciation** | **Depreciation** | **Ending** | **Ending** |
|  Leasehold improvements | W | 3407 | W | 244 | W |  | W | (1890) | W | 1761 |
|  Equipment and others |  | 3186 |  | 417 |  | (204) |  | (1661) |  | 1738 |
|  Right-of-use assets (buildings) |  | 769 |  | 152 |  |  |  | (392) |  | 529 |
|  Right-of-use assets (vehicles) |  | 322 |  | 731 |  | (53) |  | (623) |  | 377 |
|  Right-of-use assets (others) |  | 46 |  | 52 |  |  |  | (59) |  | 39 |
|  | W | 7730 | W | 1596 | W | (257) | W | (4625) | W | 4444 |

---

**11. Intangible Assets** 

11.1 Details of intangible assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Acquisition**<br>**cost** | **Accumulated**<br>**amortization** | **Accumulated**<br>**amortization** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Software | W | 5819 | W | (5044) | W |  | W | 775 |
|  Membership rights |  | 10743 |  |  |  | (792) |  | 9951 |
|  Other intangible assets |  | 13523 |  | (7497) |  |  |  | 6026 |
|  | W | 30085 | W | (12541) | W | (792) | W | 16752 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Acquisition**<br>**cost** | **Accumulated**<br>**amortization** | **Accumulated**<br>**amortization** | **Accumulated<br>impairment<br>losses** | **Accumulated<br>impairment<br>losses** | **Carrying<br>amount** | **Carrying<br>amount** |
|  Software | W | 5716 | W | (4395) | W |  | W | 1321 |
|  Membership rights |  | 10744 |  |  |  | (792) |  | 9952 |
|  Other intangible assets |  | 10925 |  | (5525) |  |  |  | 5400 |
|  | W | 27385 | W | (9920) | W | (792) | W | 16673 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

11.2 Changes in intangible assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Disposal** | **Disposal** | **Amortization** | **Amortization** | **Reversal of<br>impairment \*** | **Ending** | **Ending** |
|  Software | W | 1321 | W | 103 | W |  | W | (649) | W | W | 775 |
|  Membership rights |  | 9952 |  | 19 |  | (20) |  |  |  |  | 9951 |
|  Other intangible assets |  | 5400 |  | 2597 |  |  |  | (1971) |  |  | 6026 |
|  | W | 16673 | W | 2719 | W | (20) | W | (2620) | W | W | 16752 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Acquisition** | **Acquisition** | **Disposal** | **Disposal** | **Amortization** | **Amortization** | **Reversal of<br>Impairment \*** | **Reversal of<br>Impairment \*** | **Ending** | **Ending** |
|  Software | W | 2484 | W | 482 | W | (814) | W | (831) | W |  | W | 1321 |
|  Membership rights |  | 8965 |  | 979 |  |  |  |  |  | 8 |  | 9952 |
|  Other intangible assets |  | 1818 |  | 5842 |  | (1210) |  | (1050) |  |  |  | 5400 |
|  | W | 13267 | W | 7303 | W | (2024) | W | (1881) | W | 8 | W | 16673 |

---

\* Impairment losses for membership rights of other intangible assets with indefinite useful life are recognized when its recoverable amount is lower than its carrying amount, and reversal of impairment losses are recognized when its recoverable amount is higher than its carrying amount. 

11.3 Changes in accumulated impairment losses of intangible assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Impairment** | **Impairment** | **Reversal of<br>impairment** | **Reversal of<br>impairment** | **Disposal<br>and others** | **Ending** | **Ending** |
|  Accumulated impairment losses of intangible assets | W | (792) | W | (2) | W | 2 | W | W | (792) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Impairment** | **Impairment** | **Reversal of<br>impairment** | **Reversal of<br>impairment** | **Disposal<br>and others** | **Ending** | **Ending** |
|  Accumulated impairment losses of intangible assets | W | (800) | W | (3) | W | 11 | W | W | (792) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**12. Lease** 

12.1 Amounts Recognized in the Statements of Financial Position

Amounts recognized in the statements of financial position related to lease as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  Right-of-use property and equipment: <sup>1</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | W | 361 | W | 529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles |  | 460 |  | 377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 41 |  | 39 |
|  | W | 862 | W | 945 |
|  Lease liabilities <sup>2</sup> | W | 828 | W | 689 |

---

<sup>1</sup> Included in property and equipment.

<sup>2</sup> Included in other liabilities.

12.2 Amounts Recognized in the Statements of Comprehensive Income

Amounts recognized in the statements of comprehensive income related to lease for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Depreciation and amortization of right-of-use assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | W | 464 | W | 392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles |  | 608 |  | 623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 52 |  | 59 |
|  | W | 1124 | W | 1074 |
|  Interest expenses on the lease liabilities | W | 18 | W | 12 |
|  Expense relating to short-term lease |  | 28 |  | 27 |
|  Expense relating to lease of low-value assets that are not short-term lease |  | 2 |  | 2 |

---

12.3 Total cash outflows for lease for the years ended December 31, 2022 and 2021 are W 614 million and W 565 million, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**13. Deferred Income Tax Assets and Liabilities** 

13.1 Details of deferred income tax assets and liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Net amount** | **Net amount** |
|  Share-based payments | W | 4502 | W |  | W | 4502 |
|  Membership rights |  | 210 |  |  |  | 210 |
|  Defined benefit obligation |  | 3226 |  |  |  | 3226 |
|  Plan assets |  |  |  | (3393) |  | (3393) |
|  Short-term employee benefits |  | 650 |  |  |  | 650 |
|  Losses on valuation of financial assets at fair value through profit or loss |  | 14795 |  |  |  | 14795 |
|  Others |  | 3233 |  | (3319) |  | (86) |
|  |  | 26616 |  | (6712) |  | 19904 |
|  Offsetting of deferred tax assets and liabilities |  | (6712) |  | 6712 |  |  |
|  | W | 19904 | W |  | W | 19904 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Net amount** | **Net amount** |
|  Share-based payments | W | 4486 | W |  | W | 4486 |
|  Membership rights |  | 218 |  |  |  | 218 |
|  Defined benefit obligation |  | 3189 |  |  |  | 3189 |
|  Plan assets |  |  |  | (3189) |  | (3189) |
|  Short-term employee benefits |  | 808 |  |  |  | 808 |
|  Losses on valuation of financial assets at fair value through profit or loss |  | 2858 |  |  |  | 2858 |
|  Others |  | 761 |  | (3548) |  | (2787) |
|  |  | 12320 |  | (6737) |  | 5583 |
|  Offsetting of deferred tax assets and liabilities |  | (6737) |  | 6737 |  |  |
|  | W | 5583 | W |  | W | 5583 |

---

13.2 Unrecognized Deferred Income Tax Assets

No deferred income tax assets have been recognized for the deductible temporary differences of W 2,896,164 million and W 51,742 million associated with investments in subsidiaries and impairment losses on investments in subsidiaries, respectively, as of December 31, 2022, due to the uncertainty that these temporary differences will be realized in the future. And no deferred income tax assets have been recognized for the deductible temporary differences of W 16,934 million associated subordinated bond as of December 31, 2022, as they affect neither accounting profit nor taxable profit (tax loss) at the time of the transaction.

13.3 Unrecognized Deferred Income Tax Liabilities

No deferred income tax liabilities have been recognized for the taxable temporary differences of W 2,415,073 million associated with investments in subsidiaries as of December 31, 2022, due to the following reasons:

• The Company is able to control the timing of the reversal of the temporary differences.

• It is probable that these temporary differences will not reverse in the foreseeable future.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Decrease** | **Decrease** | **Increase** | **Increase** | **Ending** | **Ending** |
|  **Deductible temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | W | 16314 | W | 5124 | W | 5800 | W | 16990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Membership rights |  | 792 |  |  |  |  |  | 792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries |  | 2896164 |  |  |  |  |  | 2896164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit obligation |  | 11595 |  | 2206 |  | 2784 |  | 12173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term employee benefits |  | 2937 |  | 2876 |  | 2394 |  | 2455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of investments in subsidiaries |  | 51742 |  |  |  |  |  | 51742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation of financial assets at fair value through profit or loss |  | 10394 |  |  |  | 45435 |  | 55829 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 21259 |  | 2155 |  | 10028 |  | 29132 |
|  |  | 3011197 |  | 12361 |  | 66441 |  | 3065277 |
|  **Unrecognized deferred income tax assets:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries |  | 2896164 |  |  |  |  |  | 2896164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of investments in subsidiaries |  | 51742 |  |  |  |  |  | 51742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 18490 |  |  |  |  |  | 16934 |
|  |  | 44801 |  |  |  |  |  | 100437 |
|  Tax rate (%) \* |  | 27.5 |  |  |  |  |  | 26.5 |
|  **Total deferred income tax assets** | W | 12320 |  |  |  |  | W | 26616 |
|  **Taxable temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries | W | (2415073) | W |  | W |  | W | (2415073) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan assets |  | (11595) |  | (2206) |  | (3415) |  | (12804) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (12902) |  | (4467) |  | (4090) |  | (12525) |
|  |  | (2439570) |  | (6673) |  | (7505) |  | (2440402) |
|  **Unrecognized deferred income tax liabilities:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries |  | (2415073) |  |  |  |  |  | (2415073) |
|  |  | (24497) |  |  |  |  |  | (25329) |
|  Tax rate (%) \* |  | 27.5 |  |  |  |  |  | 26.5 |
|  **Total deferred income tax liabilities** | W | (6737) |  |  |  |  | W | (6712) |

---

\* The corporate tax rate was changed due to the amendment of corporate tax law in 2022. Accordingly, the rate of 26.5% has been applied for the deferred tax assets and liabilities expected to be utilized in periods after December 31, 2022. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Decrease** | **Decrease** | **Increase** | **Increase** | **Ending** | **Ending** |
|  **Deductible temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | W | 11531 | W | 4447 | W | 9230 | W | 16314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Membership rights |  | 800 |  | 11 |  | 3 |  | 792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries |  | 2896164 |  |  |  |  |  | 2896164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit obligation |  | 11686 |  | 2805 |  | 2714 |  | 11595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term employee benefits |  | 2713 |  | 2713 |  | 2937 |  | 2937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of investments in subsidiaries |  | 54031 |  | 2289 |  |  |  | 51742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation of financial assets at fair value through profit or loss |  | 11105 |  | 711 |  |  |  | 10394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 1809 |  | 1642 |  | 21092 |  | 21259 |
|  |  | 2989839 |  | 14618 |  | 35976 |  | 3011197 |
|  **Unrecognized deferred income tax assets:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries |  | 2896164 |  |  |  |  |  | 2896164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of investments in subsidiaries |  | 54031 |  |  |  |  |  | 51742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  |  | 18490 |
|  |  | 39644 |  |  |  |  |  | 44801 |
|  Tax rate (%) |  | 27.5 |  |  |  |  |  | 27.5 |
|  **Total deferred income tax assets** | W | 10902 |  |  |  |  | W | 12320 |
|  **Taxable temporary differences** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries | W | (2395805) | W |  | W | (19268) | W | (2415073) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan assets |  | (11686) |  | (2805) |  | (2714) |  | (11595) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (16361) |  | (4642) |  | (1183) |  | (12902) |
|  |  | (2423852) |  | (7447) |  | (23165) |  | (2439570) |
|  **Unrecognized deferred income tax liabilities:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries |  | (2395805) |  |  |  |  |  | (2415073) |
|  |  | (28047) |  |  |  |  |  | (24497) |
|  Tax rate (%) |  | 27.5 |  |  |  |  |  | 27.5 |
|  **Total deferred income tax liabilities** | W | (7713) |  |  |  |  | W | (6737) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**14. Other Assets** 

14.1 Details of other assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December<br>31, 2021** | **December<br>31, 2021** |
|  **Other financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income | W | 11556 | W | 5270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee deposits |  | 33297 |  | 30818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses |  | (12) |  | (10) |
|  |  | 44841 |  | 36078 |
|  **Other non-financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables |  | 1226359 |  | 767382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses |  | 946 |  | 831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advanced payments |  | 51 |  | 765 |
|  |  | 1227356 |  | 768978 |
|  | W | 1272197 | W | 805056 |

---

14.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Other<br>financial<br>assets** | **Other<br>financial<br>assets** | **Other<br>non-financial<br>assets** | **Total** | **Total** |
|  Beginning | W | 10 | W | W | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision |  | 2 |  |  | 2 |
|  Ending | W | 12 | W | W | 12 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Other<br>financial<br>assets** | **Other<br>financial<br>assets** | **Other<br>non-financial<br>assets** | **Total** | **Total** |
|  Beginning | W | 7 | W | W | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision |  | 3 |  |  | 3 |
|  Ending | W | 10 | W | W | 10 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**15. Debentures** 

15.1 Details of debentures as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Issuance date** | **Maturity date** | **Interest rate**<br>**(%) as of**<br>**December 31,<br>2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Unguaranteed debentures No.6 | Feb. 26, 2015 | Feb. 26, 2022 |  | W |  | W | 30000 |
|  Unguaranteed debentures No.9 | Jun. 23, 2015 | Jun. 23, 2022 |  |  |  |  | 150000 |
|  Unguaranteed debentures No.12-3 | Nov. 27, 2015 | Nov. 27, 2022 |  |  |  |  | 50000 |
|  Unguaranteed debentures No.14-2 | Dec. 9, 2015 | Dec. 9, 2022 |  |  |  |  | 30000 |
|  Unguaranteed debentures No.15-3 | May 12, 2016 | May 12, 2026 | 2.01 |  | 200000 |  | 200000 |
|  Unguaranteed debentures No.16-3 | May 27, 2016 | May 27, 2023 | 1.91 |  | 150000 |  | 150000 |
|  Unguaranteed debentures No.18-3 | Jul. 25, 2016 | Jul. 25, 2026 | 1.69 |  | 80000 |  | 80000 |
|  Unguaranteed debentures No.19-3 | Aug. 25, 2016 | Aug. 25, 2026 | 1.69 |  | 120000 |  | 120000 |
|  Unguaranteed debentures No.22-2 | Feb. 28, 2017 | Feb. 28, 2022 |  |  |  |  | 110000 |
|  Unguaranteed debentures No.25-3 | May 24, 2017 | May 24, 2022 |  |  |  |  | 270000 |
|  Unguaranteed debentures No.25-4 | May 24, 2017 | May 24, 2027 | 2.62 |  | 80000 |  | 80000 |
|  Unguaranteed debentures No.26-1 | Jun. 27, 2017 | Jun. 27, 2022 |  |  |  |  | 50000 |
|  Unguaranteed debentures No.26-2 | Jun. 27, 2017 | Jun. 27, 2024 | 2.34 |  | 200000 |  | 200000 |
|  Unguaranteed debentures No.27 | Jul. 19, 2017 | Jul. 19, 2024 | 2.41 |  | 100000 |  | 100000 |
|  Unguaranteed debentures No.28-1 | Aug. 30, 2017 | Aug. 30, 2022 |  |  |  |  | 60000 |
|  Unguaranteed debentures No.28-2 | Aug. 30, 2017 | Aug. 30, 2024 | 2.43 |  | 30000 |  | 30000 |
|  Unguaranteed debentures No.28-3 | Aug. 30, 2017 | Aug. 30, 2027 | 2.60 |  | 60000 |  | 60000 |
|  Unguaranteed debentures No.29-1 | Sep. 19, 2017 | Sep. 19, 2022 |  |  |  |  | 150000 |
|  Unguaranteed debentures No.29-2 | Sep. 19, 2017 | Sep. 19, 2024 | 2.44 |  | 110000 |  | 110000 |
|  Unguaranteed debentures No.31-2 | Feb. 28, 2018 | Feb. 28, 2023 | 2.81 |  | 50000 |  | 50000 |
|  Unguaranteed debentures No.31-3 | Feb. 28, 2018 | Feb. 28, 2028 | 3.02 |  | 60000 |  | 60000 |
|  Unguaranteed debentures No.32-2 | Apr. 6, 2018 | Apr. 6, 2023 | 2.71 |  | 80000 |  | 80000 |
|  Unguaranteed debentures No.32-3 | Apr. 6, 2018 | Apr. 6, 2028 | 2.86 |  | 20000 |  | 20000 |
|  Unguaranteed debentures No.33-1 | Jun. 12, 2018 | Jun. 12, 2023 | 2.81 |  | 100000 |  | 100000 |
|  Unguaranteed debentures No.33-2 | Jun. 12, 2018 | Jun. 12, 2028 | 2.92 |  | 30000 |  | 30000 |
|  Unguaranteed debentures No.34-2 | Jul. 25, 2018 | Jul. 25, 2023 | 2.65 |  | 70000 |  | 70000 |
|  Unguaranteed debentures No.34-3 | Jul. 25, 2018 | Jul. 25, 2025 | 2.71 |  | 20000 |  | 20000 |
|  Unguaranteed debentures No.34-4 | Jul. 25, 2018 | Jul. 25, 2028 | 2.76 |  | 20000 |  | 20000 |
|  Unguaranteed debentures No.35 | Oct. 5, 2018 | Oct. 5, 2023 | 2.52 |  | 120000 |  | 120000 |
|  Unguaranteed debentures No.36-1 | Feb. 22, 2019 | Feb. 22, 2022 |  |  |  |  | 120000 |
|  Unguaranteed debentures No.36-2 | Feb. 22, 2019 | Feb. 22, 2024 | 2.11 |  | 230000 |  | 230000 |
|  Unguaranteed debentures No.36-3 | Feb. 22, 2019 | Feb. 22, 2029 | 2.22 |  | 60000 |  | 60000 |
|  Unguaranteed debentures No.37-1 | Mar. 15, 2019 | Mar. 15, 2024 | 2.06 |  | 140000 |  | 140000 |
|  Unguaranteed debentures No.37-2 | Mar. 15, 2019 | Mar. 15, 2029 | 2.16 |  | 70000 |  | 70000 |
|  Unguaranteed debentures No.38-1 | Jun. 19, 2019 | Jun. 19, 2026 | 1.73 |  | 80000 |  | 80000 |
|  Unguaranteed debentures No.38-2 | Jun. 19, 2019 | Jun. 19, 2029 | 1.77 |  | 120000 |  | 120000 |
|  Unguaranteed debentures No.39-1 | Oct. 15, 2019 | Oct. 15, 2024 | 1.60 |  | 80000 |  | 80000 |
|  Unguaranteed debentures No.39-2 | Oct. 15, 2019 | Oct. 15, 2029 | 1.67 |  | 40000 |  | 40000 |
|  Unguaranteed debentures No.40-1 | Dec. 4, 2019 | Dec. 4, 2024 | 1.76 |  | 70000 |  | 70000 |
|  Unguaranteed debentures No.40-2 | Dec. 4, 2019 | Dec. 4, 2029 | 1.87 |  | 30000 |  | 30000 |
|  Unguaranteed debentures No.41-1 | Jan. 16, 2020 | Jan. 16, 2023 | 1.64 |  | 110000 |  | 110000 |
|  Unguaranteed debentures No.41-2 | Jan. 16, 2020 | Jan. 16, 2025 | 1.74 |  | 100000 |  | 100000 |
|  Unguaranteed debentures No.41-3 | Jan. 16, 2020 | Jan. 16, 2030 | 1.88 |  | 40000 |  | 40000 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

15.1 Details of debentures as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Issuance date** | **Maturity date** | **Interest rate<br>(%) as of**<br>**December 31,<br>2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Subordinated debentures No.1-1 | Feb. 18, 2020 | Feb. 18, 2030 | 2.21 | W | 370000 | W | 370000 |
|  Subordinated debentures No.1-2 | Feb. 18, 2020 | Feb. 18, 2035 | 2.26 |  | 30000 |  | 30000 |
|  Unguaranteed debentures No.42-1 | May 13, 2020 | May 13, 2025 | 1.59 |  | 130000 |  | 130000 |
|  Unguaranteed debentures No.42-2 | May 13, 2020 | May 13, 2030 | 1.78 |  | 70000 |  | 70000 |
|  Unguaranteed debentures No.43-1 | Jun. 16, 2020 | Jun. 16, 2023 | 1.18 |  | 50000 |  | 50000 |
|  Unguaranteed debentures No.43-2 | Jun. 16, 2020 | Jun. 16, 2025 | 1.44 |  | 110000 |  | 110000 |
|  Unguaranteed debentures No.43-3 | Jun. 16, 2020 | Jun. 16, 2030 | 1.63 |  | 50000 |  | 50000 |
|  Exchangeable bonds No.1 \* | Jun. 30, 2020 | Jun. 30, 2025 |  |  | 240000 |  | 240000 |
|  Unguaranteed debentures No.44-1 | Aug. 11, 2020 | Aug. 11, 2022 |  |  |  |  | 80000 |
|  Unguaranteed debentures No.44-2 | Aug. 11, 2020 | Aug. 11, 2023 | 1.07 |  | 50000 |  | 50000 |
|  Unguaranteed debentures No.44-3 | Aug. 11, 2020 | Aug. 9, 2024 | 1.18 |  | 30000 |  | 30000 |
|  Unguaranteed debentures No.44-4 | Aug. 11, 2020 | Aug. 11, 2027 | 1.39 |  | 20000 |  | 20000 |
|  Unguaranteed debentures No.45 | Nov. 23, 2020 | Nov. 23, 2023 | 1.19 |  | 60000 |  | 60000 |
|  Unguaranteed debentures No.46-1 | Jan. 14, 2021 | Jan. 13, 2023 | 1.09 |  | 160000 |  | 160000 |
|  Unguaranteed debentures No.46-2 | Jan. 14, 2021 | Jan. 14, 2026 | 1.43 |  | 30000 |  | 30000 |
|  Unguaranteed debentures No.46-3 | Jan. 14, 2021 | Jan. 14, 2028 | 1.62 |  | 10000 |  | 10000 |
|  Unguaranteed debentures No.46-4 | Jan. 14, 2021 | Jan. 14, 2031 | 1.84 |  | 100000 |  | 100000 |
|  Unguaranteed debentures No.47 | Feb. 24, 2021 | Feb. 24, 2023 | 1.07 |  | 90000 |  | 90000 |
|  Unguaranteed debentures No.48-1 | Jun. 16, 2022 | Jun. 17, 2024 | 4.15 |  | 85000 |  |  |
|  Unguaranteed debentures No.48-2 | Jun. 16, 2022 | Jun. 16, 2025 | 4.27 |  | 240000 |  |  |
|  Unguaranteed debentures No.48-3 | Jun. 16, 2022 | Jun. 16, 2027 | 4.34 |  | 80000 |  |  |
|  Unguaranteed debentures No.48-4 | Jun. 16, 2022 | Jun. 16, 2032 | 4.40 |  | 95000 |  |  |
|  |  |  |  |  | 4970000 |  | 5570000 |
|  Less: Bond Discounts | Less: Bond Discounts | Less: Bond Discounts | Less: Bond Discounts |  | (4616) |  | (7000) |
|  Less: adjustment on exchange right | Less: adjustment on exchange right | Less: adjustment on exchange right | Less: adjustment on exchange right |  | (8435) |  | (14957) |
|  |  |  |  | W | 4956949 | W | 5552791 |

---

\* Fair value of the liability component of exchangeable bonds is calculated by using market interest rate of bonds under the same conditions without the exchange right. The residual amount, after deducting liability component from the issuance amount, represents the value of exchange right and is recorded in equity. Shares to be exchanged are 5 million treasury shares of KB Financial Group Inc. with the exchange price of W 48,000. Exercise period for exchange right is from the 60th day of the issuance date to 10 days before the maturity date. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

15.2 Maturities of debentures as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Up to**<br>**3 months** | **Up to**<br>**3 months** | **3~6**<br>**months** | **3~6**<br>**months** | **6~12**<br>**months** | **6~12**<br>**months** | **1~3**<br>**years** | **1~3**<br>**years** | **Over**<br>**3 years** | **Over**<br>**3 years** | **Total** | **Total** |
|  Debentures in Korean won | W | 410000 | W | 380000 | W | 300000 | W | 1915000 | W | 1965000 | W | 4970000 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **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** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Up to**<br>**3 months** | **Up to**<br>**3 months** | **3~6**<br>**months** | **3~6**<br>**months** | **6~12**<br>**months** | **6~12**<br>**months** | **1~3**<br>**years** | **1~3**<br>**years** | **Over**<br>**3 years** | **Over**<br>**3 years** | **Total** | **Total** |
|  Debentures in Korean won | W | 260000 | W | 470000 | W | 370000 | W | 2080000 | W | 2390000 | W | 5570000 |

---

15.3 Changes in debentures based on par value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Issue** | **Issue** | **Repayment** | **Repayment** | **Ending** | **Ending** |
|  Debentures in Korean won | W | 5570000 | W | 500000 | W | (1100000) | W | 4970000 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Issue** | **Issue** | **Repayment** | **Repayment** | **Ending** | **Ending** |
|  Debentures in Korean won | W | 6150000 | W | 390000 | W | (970000) | W | 5570000 |

---

**16. Net Defined Benefit Liabilities (Assets)** 

16.1 Defined Benefit Plan

The Company operates defined benefit plans which have the following characteristics:

• The Company has the obligation to pay the agreed benefits to all its current and former employees.

• The Company assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities recognized in the statements of financial position are calculated in accordance with actuarial valuation method using assumptions based on market data and historical data such as discount rate, future salary increase rate, and mortality. Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

16.2 Changes in net defined benefit liabilities for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Present value of<br>defined benefit<br>obligation** | **Present value of<br>defined benefit<br>obligation** | **Fair value of**<br>**plan assets** | **Fair value of**<br>**plan assets** | **Net defined<br>benefit liabilities**<br>**(assets)** | **Net defined<br>benefit liabilities**<br>**(assets)** |
|  Beginning | W | 22557 | W | (22778) | W | (221) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost |  | 2200 |  |  |  | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) |  | 584 |  | (590) |  | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions |  | (4510) |  |  |  | (4510) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments |  | 388 |  |  |  | 388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  |  |  | 698 |  | 698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Company |  |  |  | (2655) |  | (2655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) |  | (2206) |  | 2206 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Company |  | (207) |  |  |  | (207) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in |  | 3211 |  | (3186) |  | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out |  | (4044) |  | 4044 |  |  |
|  Ending | W | 17973 | W | (22261) | W | (4288) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Present value of<br>defined benefit<br>obligation** | **Present value of<br>defined benefit<br>obligation** | **Fair value of**<br>**plan assets** | **Fair value of**<br>**plan assets** | **Net defined<br>benefit liabilities**<br>**(assets)** | **Net defined<br>benefit liabilities**<br>**(assets)** |
|  Beginning | W | 21951 | W | (21892) | W | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost |  | 2104 |  |  |  | 2104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) |  | 437 |  | (436) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions |  | (523) |  |  |  | (523) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments |  | 696 |  |  |  | 696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  |  |  | 238 |  | 238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Company |  |  |  | (2798) |  | (2798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) |  | (2805) |  | 2805 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Company |  | (26) |  |  |  | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in |  | 2623 |  | (2595) |  | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out |  | (1900) |  | 1900 |  |  |
|  Ending | W | 22557 | W | (22778) | W | (221) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

16.3 Details of the net defined benefit liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Present value of defined benefit obligation | W | 17973 | W | 22557 |
|  Fair value of plan assets |  | (22261) |  | (22778) |
|  Net defined benefit liabilities (assets) | W | (4288) | W | (221) |

---

16.4 Details of post-employment benefits recognized in profit or loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Current service cost | W | 2200 | W | 2104 |
|  Net interest expense (income) on net defined benefit liabilities |  | (6) |  | 1 |
|  Post-employment benefits | W | 2194 | W | 2105 |

---

16.5 Details of remeasurements of net defined benefit liabilities recognized in other comprehensive income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Remeasurements: |  |  |  |  |
|  Return on plan assets (excluding amounts included in interest income) | W | (698) | W | (238) |
|  Actuarial gains or losses |  | 4122 |  | (173) |
|  Income tax effect |  | (941) |  | 113 |
|  Remeasurements after income tax expense | W | 2483 | W | (298) |

---

16.6 Details of fair value of plan assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Assets quoted**<br>**in an active market** | **Assets not quoted**<br>**in an active market** | **Assets not quoted**<br>**in an active market** | **Total** | **Total** |
|  Cash and due from financial institutions | W | W | 22261 | W | 22261 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Assets quoted**<br>**in an active market** | **Assets not quoted**<br>**in an active market** | **Assets not quoted**<br>**in an active market** | **Total** | **Total** |
|  Cash and due from financial institutions | W | W | 22778 | W | 22778 |

---

16.7 Details of significant actuarial assumptions used as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Discount rate (%) | 5.20 | 2.60 |
|  Future salary increase rate (%) | 4.20 | 4.10 |
|  Turnover rate (%) | 1.00 | 1.00 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2019.

16.8 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Effect on defined benefit obligation** | **Effect on defined benefit obligation** |
|  |<br>**Changes in<br>assumptions** | **Increase in<br>assumptions** | **Decrease in<br>assumptions** |
|  Discount rate (%) | 0.5%p | 4.16% decrease | 4.42% increase |
|  Salary increase rate (%) | 0.5%p | 4.66% increase | 4.42% decrease |
|  Turnover rate (%) | 0.5%p | 0.24% increase | 0.25% decrease |

---

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the statement of financial position.

16.9 Expected maturity analysis of undiscounted pension benefit payments (including expected future benefits) as of December 31, 2022, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Up to 1 year** | **Up to 1 year** | **1 ~ 2 years** | **1 ~ 2 years** | **2 ~ 5 years** | **2 ~ 5 years** | **5 ~ 10 years** | **5 ~ 10 years** | **Over 10 years** | **Over 10 years** | **Total** | **Total** |
|  Pension benefits | W | 211 | W | 1265 | W | 4462 | W | 12159 | W | 39056 | W | 57153 |

---

The weighted average duration of the defined benefit obligation is 9.02 years**.**

16.10 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2022 is W 1,800 million.

**17. Other Liabilities** 

Details of other liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  **Other financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables | W | 881 | W | 828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 11622 |  | 12396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  | 828 |  | 689 |
|  |  | 13331 |  | 13913 |
|  **Other non-financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables |  | 133741 |  | 23679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 190759 |  | 197042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholding taxes |  | 658 |  | 461 |
|  |  | 325158 |  | 221182 |
|  |  | W338,489 | W | 235095 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**18. Equity** 

18.1 Share Capital

18.1.1 Details of share capital as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Type of share |  | Ordinary share |  | Ordinary share |
|  Number of authorized shares |  | 1000000000 |  | 1000000000 |
|  Par value per share *(In Korean won)*  | W | 5000 | W | 5000 |
|  Number of issued shares |  | 408897068 |  | 415807920 |
|  Share capital \* | W | 2090558 | W | 2090558 |

---

\* Due to the retirement of shares deducted through retained earnings, it is different from the total par value of the shares issued. 

18.1.2 Changes in shares for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In number of shares)* | **2022** | **2022** | **2021** | **2021** |
|  Beginning |  | 389634335 |  | 389634335 |
|  Increase |  |  |  |  |
|  Decrease |  |  |  |  |
|  Ending |  | 389634335 |  | 389634335 |

---

18.2 Hybrid Securities

Details of hybrid securities classified as equity as of December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hybrid**<br> **securities** | **Issuance date** | **Maturity** | **Interest rate (%)**<br>**as of**<br>**December 31, 2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  The 1-1<sup>st</sup>  | May 2, 2019 | Perpetual bond | 3.23 | W | 349204 | W | 349204 |
|  The 1-2<sup>nd</sup>  | May 2, 2019 | Perpetual bond | 3.44 |  | 49881 |  | 49881 |
|  The 2-1<sup>st</sup>  | May 8, 2020 | Perpetual bond | 3.30 |  | 324099 |  | 324099 |
|  The 2-2<sup>nd</sup>  | May 8, 2020 | Perpetual bond | 3.43 |  | 74812 |  | 74812 |
|  The 3-1<sup>st</sup>  | Jul. 14, 2020 | Perpetual bond | 3.17 |  | 369099 |  | 369099 |
|  The 3-2<sup>nd</sup>  | Jul. 14, 2020 | Perpetual bond | 3.38 |  | 29922 |  | 29922 |
|  The 4-1<sup>st</sup>  | Oct. 20, 2020 | Perpetual bond | 3.00 |  | 433918 |  | 433918 |
|  The 4-2<sup>nd</sup>  | Oct. 20, 2020 | Perpetual bond | 3.28 |  | 64843 |  | 64843 |
|  The 5-1<sup>st</sup>  | Feb. 19, 2021 | Perpetual bond | 2.67 |  | 419056 |  | 419056 |
|  The 5-2<sup>nd</sup>  | Feb. 19, 2021 | Perpetual bond | 2.87 |  | 59862 |  | 59862 |
|  The 5-3<sup>rd</sup>  | Feb. 19, 2021 | Perpetual bond | 3.28 |  | 119727 |  | 119727 |
|  The 6-1<sup>st</sup>  | May 28, 2021 | Perpetual bond | 3.20 |  | 165563 |  | 165563 |
|  The 6-2<sup>nd</sup>  | May 28, 2021 | Perpetual bond | 3.60 |  | 109708 |  | 109708 |
|  The 7-1<sup>st</sup>  | Oct. 8, 2021 | Perpetual bond | 3.57 |  | 208453 |  | 208453 |
|  The 7-2<sup>nd</sup>  | Oct. 8, 2021 | Perpetual bond | 3.80 |  | 59834 |  | 59834 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

Details of hybrid securities classified as equity as of December 31, 2022 and 2021, are as follows: (cont'd)

*(In millions of Korean won)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hybrid**<br> **securities** | **Issuance date** | **Maturity** | **Interest rate (%)**<br>**as of**<br>**December 31, 2022** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  The 8-1<sup>st</sup>  | Feb. 16, 2022 | Perpetual bond | 4.00 | W | 442955 | W |  |
|  The 8-2<sup>nd</sup>  | Feb. 16, 2022 | Perpetual bond | 4.30 |  | 155626 |  |  |
|  The 9-1<sup>st</sup>  | May 12, 2022 | Perpetual bond | 4.68 |  | 478814 |  |  |
|  The 9-2<sup>nd</sup>  | May 12, 2022 | Perpetual bond | 4.97 |  | 19906 |  |  |
|  The 10-1<sup>st</sup>  | Aug. 26, 2022 | Perpetual bond | 4.90 |  | 407936 |  |  |
|  The 10-2<sup>nd</sup>  | Aug. 26, 2022 | Perpetual bond | 5.15 |  | 70819 |  |  |
|  The 10-3<sup>rd</sup>  | Aug. 26, 2022 | Perpetual bond | 5.30 |  | 19944 |  |  |
|  |  |  |  | W | 4433981 | W | 2837981 |

---

The above hybrid securities are early redeemable by the Company after 5 or 7or 10 years from the issuance date.

18.3 Capital Surplus

Details of capital surplus as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Paid-in capital in excess of par value | W | 13190275 | W | 13190275 |
|  Other capital surplus |  | 1465893 |  | 1465893 |
|  Gains on sales of treasury shares |  | 86646 |  | 86646 |
|  Consideration for exchange right of exchangeable bonds |  | 11933 |  | 11933 |
|  | W | 14754747 | W | 14754747 |

---

18.4 Accumulated Other Comprehensive Income (Loss)

18.4.1 Details of accumulated other comprehensive income (loss) as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Remeasurements of net defined benefit liabilities | W | (5847) | W | (8330) |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

18.4.2 Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Changes** | **Changes** | **Tax<br>effect** | **Tax<br>effect** | **Ending** | **Ending** |
|  Remeasurements of net defined benefit liabilities | W | (8330) | W | 3424 | W | (941) | W | (5847) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Changes** | **Changes** | **Tax<br>effect** | **Tax<br>effect** | **Ending** | **Ending** |
|  Remeasurements of net defined benefit liabilities | W | (8032) | W | (411) | W | 113 | W | (8330) |

---

18.5 Retained Earnings

18.5.1 Details of retained earnings as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Legal reserves | W | 839235 | W | 695348 |
|  Voluntary reserves |  | 982000 |  | 982000 |
|  Regulatory reserve for credit losses |  | 4490 |  | 5154 |
|  Unappropriated retained earnings |  | 1968840 |  | 2291704 |
|  | W | 3794565 | W | 3974206 |

---

With respect to the allocation of net profit earned in a fiscal term, the Company must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 53 of the Financial Holding Company Act. The reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce accumulated deficit.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

18.5.2 Statement of appropriation of retained earnings

(Expected date of appropriation for 2022: March 24, 2023)

(Date of appropriation for 2021: March 25, 2022)

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Unappropriated retained earnings** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unappropriated retained earnings carried over from prior years | W | 1295182 | W | 1216602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year |  | 1684512 |  | 1438866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quarterly dividends |  | (584452) |  | (292226) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  | (126402) |  | (71538) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement of shares |  | (300000) |  |  |
|  |  | 1968840 |  | 2291704 |
|  **Transfer from voluntary reserves and others** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulatory reserve for credit losses |  |  |  | 664 |
|  |  |  |  | 664 |
|  **Appropriation of retained earnings** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal reserves |  | 168451 |  | 143887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulatory reserve for credit losses |  | 4850 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends: |  | 564970 |  | 853299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Dividends (rate) per share: W 1,450 (29.0%) in 2022)<br> (Dividends (rate) per share: W 2,190 (43.8%) in 2021) |  |  |  |  |
|  |  | 738271 |  | 997186 |
|  **Unappropriated retained earnings to be carried forward** | W | 1230569 | W | 1295182 |

---

18.5.3 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 26 through 28 of the Regulations on Supervision of Financial Holding Companies.

18.5.3.1 Details of regulatory reserve for credit losses as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  Amounts before appropriation | W | 4490 | W | 5154 |
|  Amounts estimated to be appropriated (reversed) |  | 4850 |  | (664) |
|  | W | 9340 | W | 4490 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

18.5.3.2 Regulatory reserve for credit losses estimated to be appropriated (reversed) and adjusted profit after provision (reversal) of regulatory reserve for credit losses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won, except for per share amounts)* | **2022** | **2022** | **2021** | **2021** |
|  Regulatory reserve for credit losses estimated to be appropriated (reversed) | W | 4850 | W | (664) |
|  Adjusted profit after provision (reversal) of regulatory reserve for credit losses <sup>1,2</sup>  |  | 1553261 |  | 1367992 |
|  Adjusted basic earnings per share after provision (reversal) of regulatory reserve for credit losses <sup>1</sup>  |  | 3986 |  | 3511 |
|  Adjusted diluted earnings per share after provision (reversal) of regulatory reserve for credit losses <sup>1</sup>  |  | 3899 |  | 3438 |

---

<sup>1</sup> Adjusted profit after provision (reversal) of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision (reversal) of regulatory reserve for credit losses before tax to the net profit for the period.

<sup>2</sup> After deducting dividends on hybrid securities

18.6 Treasury Shares

Changes in treasury shares for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won and in number of shares)* | **Beginning** | **Beginning** | **Acquisition** | **Retirement** | **Retirement** | **Ending** | **Ending** |
|  Number of treasury shares \* |  | 26173585 |  |  | (6910852) |  | 19262733 |
|  Carrying amount | W | 1136188 | W | W | (300000) | W | 836188 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won and in number of shares)* | **Beginning** | **Beginning** | **Acquisition** | **Retirement** | **Ending** | **Ending** |
|  Number of treasury shares \* |  | 26173585 |  |  |  | 26173585 |
|  Carrying amount | W | 1136188 | W | W | W | 1136188 |

---

\* 5 million treasury shares are deposited at the Korea Securities Depository for the exchange of exchangeable bonds.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**19. Dividends** 

The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2021, amounting to W 853,299 million (W 2,190 per share) were declared at the annual general shareholders' meeting on March 25, 2022 and paid in April 11, 2022. According to the resolution of the board of directors on April 22, 2022, the quarterly dividend amounting to W 194,817 million (W 500 per share) with dividend record date of March 31, 2022 were paid on May 9, 2022; according to the resolution of the board of directors on July 21, 2022, the quarterly dividend amounting to W 194,817 million (W 500 per share) with dividend record date of June 30, 2022 were paid on August 9, 2022; and according to the resolution of the board of directors on October 25, 2022, the quarterly dividend amounting to W 194,817 million (W 500 per share) with dividend record date of September 30, 2022 were paid on November 10, 2022. The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2022, amounting to W 564,970 million (W 1,450 per share) is to be proposed at the general shareholders' meeting scheduled for March 24, 2023. The Company's financial statements as of and for the year ended December 31, 2022, do not reflect this dividend payable.

Meanwhile, the annual dividends and quarterly dividends paid in 2021 were W 689,653 million (W 1,770 per share) and W 292,226 million (W 750 per share), respectively.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**20. Net Interest Expense** 

Details of interest income, interest expense, and net interest expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Interest income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions | W | 9019 | W | 2164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 7073 |  | 4045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through profit or loss |  | 2877 |  | 2844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 433 |  | 339 |
|  |  | 19402 |  | 9392 |
|  **Interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  |  |  | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 112334 |  | 120316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 19 |  | 12 |
|  |  | 112353 |  | 120469 |
|  **Net interest expense** | W | (92951) | W | (111077) |

---

**21. Net Fee and Commission Expense** 

Details of fee and commission income, fee and commission expense, and net fee and commission expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Fee and commission income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees earned in Korean won | W | 3399 | W | 975 |
|  **Fee and commission expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees paid in Korean won |  | 11655 |  | 8812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees paid in foreign currency |  | 430 |  | 320 |
|  |  | 12085 |  | 9132 |
|  **Net fee and commission expense** | W | (8686) | W | (8157) |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**22. Net Gains or Losses on Financial Instruments at Fair value through Profit or Loss** 

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial assets at fair value through profit or loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Gains on financial instruments at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income from financial assets at fair value through profit or loss | W | 36409 | W | 19895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on valuation of financial assets at fair value through profit or loss |  | 7067 |  | 3911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of financial assets at fair value through profit or loss |  | 1799 |  |  |
|  |  | 45275 |  | 23806 |
|  **Losses on financial instruments at fair value through profit or loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation of financial assets at fair value through profit or loss |  | 57069 |  | 3556 |
|  |  | 57069 |  | 3556 |
|  **Net gains on financial instruments at fair value through profit or loss** | W | (11794) | W | 20250 |

---

**23. Net Other Operating Income and Expenses** 

Details of other operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Other operating income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income from subsidiaries | W | 1871223 | W | 1617949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of impairment losses of investments in subsidiaries |  |  |  | 2289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 1 |  |  |
|  |  | 1871224 |  | 1620238 |
|  **Other operating expenses** |  | **—** |  | **—** |
|  **Net other operating income** | W | 1871224 | W | 1620238 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**24. General and Administrative Expenses** 

24.1 Details of general and administrative expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Expenses related to employee** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - salaries | W | 36254 | W | 33178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - others |  | 5847 |  | 5499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined benefit plans |  | 2194 |  | 2105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined contribution plans |  | 621 |  | 523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments |  | 5801 |  | 9230 |
|  |  | 50717 |  | 50535 |
|  **Depreciation and amortization** |  | 6245 |  | 6506 |
|  **Other general and administrative expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Travel |  | 1115 |  | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communications |  | 1030 |  | 1502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax and dues |  | 478 |  | 413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Publication |  | 345 |  | 371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental expense |  | 1876 |  | 1636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicle |  | 173 |  | 142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service fees |  | 15441 |  | 13691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising |  | 1017 |  | 973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Training |  | 1297 |  | 1158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 9415 |  | 8469 |
|  |  | 32187 |  | 28376 |
|  | W | 89149 | W | 85417 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

24.2 Share-based Payments

Share-based payments plan for executives and employees of the Company and its subsidiaries as of December 31, 2022, are as follows:

24.2.1 Stock grants linked to long-term performance

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* | **Grant date** | **Number of<br>granted shares <sup>1</sup>** | **Vesting conditions <sup>2</sup>**  |
|  **KB Financial Group Inc.** | **KB Financial Group Inc.** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 27 | Jun. 16, 2020 | 184 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 28 | Nov. 21, 2020 | 68135 | Services fulfillment, market performance <sup>3</sup> 35%, and non-market performance <sup>5</sup> 65% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 29 | Jan. 1, 2021 | 79840 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 30 | Apr. 1, 2021 | 3069 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 33 | Jan. 1, 2022 | 62991 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 34 | Feb. 1, 2022 | 654 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 35 | May 27, 2022 | 6126 | Services fulfillment, market performance <sup>3</sup> 30%, and non-market performance <sup>4</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2015 |  | 4243 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2016 |  | 3533 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2017 |  | 1127 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2018 |  | 1766 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2019 |  | 7598 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2020 |  | 27956 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2021 |  | 27204 | Satisfied |
|  |  | 294426 |  |
|  **Kookmin Bank** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 80 | Mar. 1, 2020 | 7982 | Services fulfillment, market performance <sup>3</sup> 30~50%, and non-market performance <sup>4</sup> 50~70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 81 | Jan. 1, 2021 | 139783 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 83 | Apr. 1, 2021 | 15278 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 85 | Jan. 1, 2022 | 292777 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100%<br> Services fulfillment, market performance <sup>3</sup> 30%, and EPS & Asset Quality <sup>6</sup> 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 86 | Feb. 1, 2022 | 1525 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 87 | Mar. 1, 2022 | 2599 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 88 | Mar. 14, 2022 | 5884 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 89 | May 26, 2022 | 2363 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 90 | Jul. 18, 2022 | 4131 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 91 | Aug. 24, 2022 | 7277 | Services fulfillment, market performance <sup>3</sup> 0~30%, and non-market performance <sup>4</sup> 70~100% |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

24.2.1 Stock grants linked to long-term performance (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* | **Grant date** | **Number of<br>granted shares <sup>1</sup>** | **Vesting conditions <sup>2</sup>**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2016 |  | 2426 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2017 |  | 4582 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2018 |  | 2287 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2019 |  | 32756 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2020 |  | 53502 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2021 |  | 156939 | Satisfied |
|  |  | 732091 |  |
|  **Other subsidiaries** | **Other subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2010 |  | 106 | Services fulfillment, market performance <sup>3</sup> 0~50%, and non-market performance <sup>4</sup> 50~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2011 |  | 146 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2012 |  | 420 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2013 |  | 544 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2014 |  | 1028 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 |  | 2374 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 |  | 3749 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 |  | 14006 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 |  | 26572 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 |  | 42273 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 |  | 165810 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 |  | 501365 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 |  | 249267 |  |
|  |  | 1007660 |  |
|  |  | 2034177 |  |

---

<sup>1</sup> Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of December 31, 2022 (Deferred grants are residual shares vested as of December 31, 2022). 

<sup>2</sup> Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

<sup>3</sup> Relative TSR (Total Shareholder Return): [(Fair value at the end of the contract - Fair value at the beginning of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract 

<sup>4</sup> Performance results of company and employee

<sup>5</sup> EPS (Earnings Per Share), Asset Quality, HCROI (Human Capital Return on Investment), Profit from non-banking segments

<sup>6</sup> EPS, Asset Quality

The stock grant linked to long-term performance is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

24.2.2 Stock grants linked to short-term performance

---

| | | |
|:---|:---|:---|
| *(In number of shares)* | **Estimated number of**<br>**vested shares \*** | **Vesting**<br> **conditions** |
|  **KB Financial Group Inc.** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3725 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 4223 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 1401 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 760 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 9354 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 22586 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 35497 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 46898 | Proportional to service period |
|  **Kookmin Bank** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 1292 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 4875 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 1998 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 2109 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 41737 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 89888 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 130331 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 134402 | Proportional to service period |
|  **Other subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 5762 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 25831 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 46223 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 99594 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 243130 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 433210 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 610167 | Satisfied |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 324412 | Proportional to service period |
|  | 2319405 |  |

---

\* Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

24.2.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In Korean won)* | **Risk-free<br>rate (%)** | **Fair value (market<br>performance condition)** | **Fair value (non-market<br>performance condition)** |
|  **Linked to long-term performance** | **Linked to long-term performance** |  |  |
|  (KB Financial Group Inc.) | (KB Financial Group Inc.) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 27 | 3.78 |  | 43,157~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 28 | 3.78 | 35,289~39,662 | 41,704~46,873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 29 | 3.78 | 40,757~48,322 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 30 | 3.78 | 38,805~43,583 | 41,548~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 33 | 3.78 | 37,409~45,666 | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 34 | 3.78 | 35,486~39,839 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 35 | 3.78 | 38,247~42,939 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2015 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2016 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2017 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2018 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2019 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2020 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred grant in 2021 | 3.78 |  | 44,859~50,973 |
|  (Kookmin Bank) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 80 | 3.78 | 43,157~50,973 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 81 | 3.78 | 35,905~41,289 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 83 | 3.78 | 38,660~43,583 | 41,548~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 85 | 3.78 | 33,668~37,813 | 41,548~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 86 | 3.78 | 35,486~39,839 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 87 | 3.78 | 38,957~46,013 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 88 | 3.78 | 37,288~41,862 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 89 | 3.78 | 40,943~48,358 | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 90 | 3.78 | 39,554~44,405 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 91 | 3.78 | 37,840~42,481 | 39,958~44,859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2016 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2017 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2018 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2019 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2020 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant deferred in 2021 | 3.78 |  | 44,859~50,973 |
|  (Other subsidiaries) | (Other subsidiaries) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2010 | 3.78 |  | 44859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2011 | 3.78 |  | 44859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2012 | 3.78 |  | 44,859~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2013 | 3.78 |  | 44,859~46,663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2014 | 3.78 |  | 46663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 44,859~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 41,548~61,294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 39,958~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 38,393~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 | 43,157~50,973 | 39,958~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 | 39,042~50,651 | 41,548~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 | 35,286~49,647 | 39,958~62,269 |

---

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

24.2.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2022, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In Korean won)* | **Risk-free<br>rate (%)** | **Fair value (market<br>performance condition)** | **Fair value (non-market<br>performance condition)** |
|  **Linked to short-term performance** | **Linked to short-term performance** |  |  |
|  (KB Financial Group Inc.) | (KB Financial Group Inc.) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 38,393~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 50973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 |  | 43,157~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 |  | 44,859~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 |  | 43,157~50,973 |
|  (Kookmin Bank) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 44,859~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 46,663~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 0~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 45,096~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 |  | 46,663~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 |  | 44,859~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 |  | 39,958~46,663 |
|  (Other subsidiaries) | (Other subsidiaries) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2015 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2016 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2017 | 3.78 |  | 39,958~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2018 | 3.78 |  | 38,393~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2019 | 3.78 |  | 38,393~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2020 | 3.78 |  | 41,548~56,379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2021 | 3.78 |  | 41,548~50,973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock granted in 2022 | 3.78 |  | 39,958~56,379 |

---

The Company use the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

Share-based payments arrangement for subsidiaries was transferred to the Company in 2010, and the related compensation cost paid to the executives and employees of subsidiaries is reimbursed by subsidiaries. The accrued expenses for share-based payments as of December 31, 2022 and 2021, are W 186,908 million and W 193,023 million, respectively, and the receivables to be reimbursed by subsidiaries for the compensation costs as of December 31, 2022 and 2021, are W 169,918 million and W 176,709 million, respectively. And compensation costs from share-based payments amounting to W 5,801 million and W 9,230 million were recognized for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**25. Net Other Non-Operating Income and Expenses** 

Details of other non-operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Other non-operating income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of impairment losses of intangible assets | W | 2 | W | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 2008 |  | 2377 |
|  |  | 2010 |  | 2388 |
|  **Other non-operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of property and equipment |  |  |  | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of intangible assets |  | 2 |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Donation |  | 1097 |  | 1028 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 3 |  | 182 |
|  |  | 1102 |  | 1223 |
|  **Net other non-operating income** | W | 908 | W | 1165 |

---

**26. Income Tax Benefit** 

26.1 Details of income tax benefit for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  **Income tax payable** | W |  | W |  |
|  **Changes in deferred tax assets and liabilities \*** |  | (14321) |  | (2394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Origination and reversal of temporary differences |  | (14321) |  | (2394) |
|  **Income tax recognized directly in equity** |  | (942) |  | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  | (942) |  | 113 |
|  **Income tax benefit** | W | (15263) | W | (2281) |

---

\* Due to amendments of tax laws at the end of 2022, the effect of corporate tax rate change is reflected in deferred income tax assets and liabilities that are expected to be realized after 2023. (Corporate tax rates after the amendments: 10% for tax base W 200 million or less, 21% for tax base over W 200 million to W 20,000 million, 23.2% for tax base over W 20,000 million to W 300,000 million, 26.5% for tax base over W 300,000 million) 

------

##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

26.2 Analysis of the relationship between net profit before income tax expense and income tax benefit for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Tax rate (%)** | **Amount** | **Amount** | **Tax rate (%)** | **Amount** | **Amount** |
|  Profit before income tax expense |  | W | 1669249 |  | W | 1436585 |
|  Income tax at the applicable tax rate \* | 26.88 |  | 448682 | 26.78 |  | 384699 |
|  Non-taxable income | (29.21) |  | (487657) | (27.26) |  | (391645) |
|  Non-deductible expenses | 0.05 |  | 882 | 0.05 |  | 774 |
|  Tax rate change effect | 0.04 |  | 751 |  |  |  |
|  Consolidated tax return effect | 1.38 |  | 23021 | 0.26 |  | 3778 |
|  Others | (0.06) |  | (942) | 0.01 |  | 113 |
|  Average effective tax rate and income tax benefit | (0.91) | W | (15263) | (0.16) | W | (2281) |

---

\* Applicable income tax rate for W 200 million and below is 11%, for over W 200 million to W 20,000 million is 22%, for over W 20,000 million to W 300,000 million is 24.2% and for over W 300,000 million is 27.5% for the years ended December 31, 2022 and 2021. 

**27. Earnings per Share** 

27.1 Basic Earnings per Share

Basic earnings per share is calculated from the earnings attributable to ordinary shares.

27.1.1 Weighted average number of ordinary shares outstanding

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2021** | **2021** |
| *(In number of shares)* | **Number of**<br>**shares** | **Accumulated<br>number of shares** | **Number of**<br>**shares** | **Accumulated<br>number of shares** |
|  Number of issued ordinary shares | 408897068 | 150138929728 | 415807920 | 151769890800 |
|  Number of treasury shares \* | (19262733) | (7922397453) | (26173585) | (9553358525) |
|  Average number of ordinary shares outstanding | 389634335 | 142216532275 | 389634335 | 142216532275 |
|  Number of days |  | 365 |  | 365 |
|  Weighted average number of ordinary shares outstanding |  | 389634335 |  | 389634335 |

---

\* The number of treasury shares have excluded the initial redemption of treasury shares from February 14, 2022, and the 2nd redemption from August 1, 2022.

27.1.2 Basic earnings per share

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won and in number of shares)* | **2022** | **2022** | **2021** | **2021** |
|  Profit for the period | W | 1684512284129 | W | 1438865627868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deduction: Dividends on hybrid securities |  | (126402175000) |  | (71537500000) |
|  Profit attributable to ordinary equity holders (A) |  | 1558110109129 |  | 1367328127868 |
|  Weighted average number of ordinary shares outstanding (B) |  | 389634335 |  | 389634335 |
|  Basic earnings per share (A/B) | W | 3999 | W | 3509 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

27.2 Diluted Earnings per Share

Diluted earnings per share is calculated through increasing the weighted average number of ordinary shares outstanding by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Company has dilutive potential ordinary shares such as stock grants and ordinary share exchange right of exchangeable bonds.

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price for the year) based on the monetary value of stock grants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the settlement of stock grants.

Exchangeable bonds are included in potential ordinary shares from the exercisable date of the exchange right, and interest expense after tax for the period is added to profit for diluted earnings per share.

27.2.1 Adjusted profit for diluted earnings per share

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Profit attributable to the ordinary equity holders \* | W | 1558110109129 | W | 1367328127868 |
|  Adjustment: |  |  |  |  |
|  Interest expense on exchangeable bonds |  | 2380953816 |  | 2347186871 |
|  Adjusted profit for diluted earnings per share | W | 1560491062945 | W | 1369675314739 |

---

\* The amount is after deducting dividends on hybrid securities. 

27.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share

---

| | | |
|:---|:---|:---|
| *(In number of shares)* | **2022** | **2021** |
|  Weighted average number of ordinary shares outstanding | 389634335 | 389634335 |
|  Adjustment: |  |  |
|  Stock grants | 4306711 | 3945208 |
|  Exchangeable bonds | 5000000 | 5000000 |
|  Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share | 398941046 | 398579543 |

---

27.2.3 Diluted earnings per share

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won and in number of shares)* | **2022** | **2022** | **2021** | **2021** |
|  Adjusted profit for diluted earnings per share | W | 1560491062945 | W | 1369675314739 |
|  Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share |  | 398941046 |  | 398579543 |
|  Diluted earnings per share | W | 3912 | W | 3436 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**28. Statement of Cash Flows** 

28.1 Details of cash and cash equivalents as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Due from financial institutions | W | 351056 | W | 608076 |
|  Deduction: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted due from financial institutions |  | (3) |  | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions with original maturities over three months |  | (120000) |  | (90000) |
|  |  | (120003) |  | (90003) |
|  | W | 231053 | W | 518073 |

---

28.2 Significant non-cash transactions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Changes in receivables and payables from consolidated tax return | W | 485720 | W | (125916) |
|  Changes in receivables and payables related to stock grants |  | (6791) |  | 52912 |

---

28.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Activity** | **Activity** | **2022** | **2022** | **2021** | **2021** |
|  Income tax paid |  | Operating | W | 3887 | W | 1968 |
|  Interest received |  | Operating |  | 14229 |  | 7976 |
|  Interest paid |  | Operating |  | 107924 |  | 116449 |
|  Dividends received |  | Operating |  | 1904586 |  | 1637727 |
|  Dividends paid |  | Financing |  | 1564153 |  | 1053417 |

---

28.4 Changes in liabilities arising from financing activities for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Net cash flows** | **Net cash flows** | **Non-cash changes** | **Non-cash changes** | **Ending** | **Ending** |
|  Debentures | W | 5552791 | W | (601102) | W | 5260 | W | 4956949 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Beginning** | **Net cash flows** | **Net cash flows** | **Non-cash changes** | **Non-cash changes** | **Ending** | **Ending** |
|  Borrowings | W | 100000 | W | (100000) | W |  | W |  |
|  Debentures |  | 6128043 |  | (580595) |  | 5343 |  | 5552791 |
|  | W | 6228043 | W | (680595) | W | 5343 | W | 5552791 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**29. Contingent Liabilities and Commitments** 

29.1 Commitments made with financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Amount of<br>commitments** | **Amount of<br>commitments** | **Amount**<br>**borrowed** | **Amount of<br>commitments** | **Amount of<br>commitments** | **Amount<br>borrowed** |
|  General loan | Hana Bank | W | 200000 | W | W | 200000 | W |

---

29.2 Other Matters (including litigation)

The Company has 1 pending lawsuit as a defendant with aggregate claims amount of W0.1 million, which arose in the normal course of the management activities, as of December 31, 2022.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**30. Related Party Transactions** 

According to Korean IFRS No.1024, the Company includes subsidiaries and key management personnel (including family members) in the scope of related parties. The Company discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the financial statements. Refer to Note 9 for details of subsidiaries. Key management personnel include the executives of the Company, their close family members, and the companies where the executives and/or their close family members have control or joint control.

30.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |
| **Subsidiaries** | **Profit or loss** | **2022** | **2022** | **2021** | **2021** |
|  Kookmin Bank | Interest income | W | 6247 | W | 1761 |
|  | Fee and commission income |  | 1262 |  | 926 |
|  | Net other operating income <sup>1</sup> |  | 1031167 |  | 917941 |
|  | General and administrative expenses |  | 11351 |  | 8863 |
|  | Net non-operating income <sup>2</sup> |  |  |  | 1448 |
|  KB Securities Co., Ltd. | Interest expense |  | 15 |  |  |
|  | Fee and commission income |  | 119 |  | 15 |
|  | Net gains on financial assets at fair value through profit or loss |  | (18596) |  |  |
|  | Net other operating income <sup>1</sup> |  | 400000 |  | 200000 |
|  | General and administrative expenses |  | 440 |  | 659 |
|  KB Insurance Co., Ltd. | Fee and commission income |  | 170 |  | 21 |
|  | General and administrative expenses |  | 1631 |  | 1628 |
|  KB Kookmin Card Co., Ltd. | Fee and commission income |  | 39 |  | 5 |
|  | Net other operating income <sup>1</sup> |  | 250056 |  | 200008 |
|  | General and administrative expenses |  | 92 |  | 189 |
|  | Net non-operating income |  | 6 |  | 4 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) | Fee and commission income |  | 29 |  | 4 |
|  | Net other operating income <sup>1</sup> |  | 100000 |  | 200000 |
|  | General and administrative expenses |  | 572 |  | 691 |
|  KB Asset Management Co., Ltd. | Net other operating income <sup>1</sup> |  | 40000 |  | 55000 |
|  | General and administrative expenses |  |  |  | 10 |
|  KB Capital Co., Ltd | Interest income |  | 487 |  |  |
|  | Fee and commission income |  | 17 |  | 2 |
|  | Net gains on financial assets at fair value through profit or loss |  | 9570 |  | 20606 |
|  | General and administrative expenses |  | 40 |  | 108 |
|  | Provision for credit losses |  | 234 |  |  |
|  KB Life Insurance Co., Ltd. | Fee and commission income |  | 24 |  | 3 |
|  | General and administrative expenses |  | 346 |  | 452 |
|  KB Real Estate Trust. Co., Ltd. | Net other operating income <sup>1</sup> |  | 40000 |  | 35000 |
|  KB Savings Bank Co., Ltd. | Interest income |  | 3990 |  | 2091 |
|  | Fee and commission income |  | 1 |  |  |
|  | Net losses on financial assets at fair value through profit or loss |  | (9185) |  | (356) |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

30.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |
| **Subsidiaries** | **Profit or loss** | **2022** | **2022** | **2021** | **2021** |
|  KB Investment Co., Ltd. | Interest income | W | 6537 | W | 4045 |
|  | Net other operating income <sup>1</sup> |  | 10000 |  | 10000 |
|  | Provision for credit losses |  | 53 |  | 417 |
|  KB Data Systems Co., Ltd. | General and administrative expenses |  | 2653 |  | 2022 |
|  KB Credit Information Co., Ltd. | Interest income |  | 49 |  |  |
|  | Provision for credit losses |  | 16 |  |  |

---

<sup>1</sup> Net other operating income includes dividend income from subsidiaries.

<sup>2</sup> Gains on disposal of intangible assets and others to Kookmin Bank for W 3,676 million in 2021.

30.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |
| **Subsidiaries** | **Assets or liabilities** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Kookmin Bank | Cash and due from financial institutions | W | 231056 | W | 518076 |
|  | Other assets |  | 828505 |  | 462250 |
|  | Other liabilities |  | 97 |  | 71 |
|  | Property and equipment |  | 357 |  | 518 |
|  KB Securities Co., Ltd. | Financial assets at fair value through profit or loss |  | 401732 |  |  |
|  | Other assets |  | 66162 |  | 106320 |
|  | Other liabilities |  | 116503 |  | 85 |
|  KB Insurance Co., Ltd. | Other assets |  | 111433 |  | 37209 |
|  | Other liabilities |  | 47 |  | 6 |
|  KB Kookmin Card Co., Ltd. | Other assets |  | 88968 |  | 88060 |
|  | Other liabilities |  | 755 |  | 700 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) | Other assets |  | 70534 |  | 2626 |
|  | Other liabilities |  | 67 |  | 7264 |
|  KB Asset Management Co., Ltd. | Other assets |  | 21033 |  | 20502 |
|  KB Capital Co., Ltd. | Financial assets at fair value through profit or loss |  | 472439 |  | 389606 |
|  | Loans measured at amortized cost (gross amount) |  | 200000 |  |  |
|  | Allowances for credit losses |  | 234 |  |  |
|  | Other assets |  | 52941 |  | 40701 |
|  KB Life Insurance Co., Ltd. | Other assets |  | 4655 |  | 5196 |
|  | Other liabilities |  | 9188 |  | 10877 |
| KB Real Estate Trust Co., Ltd. | Other assets |  | 8860 |  | 19360 |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

30.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  |  |  |  |
| **Subsidiaries** | **Assets or liabilities** | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  KB Savings Bank Co., Ltd. | Cash and due from financial institutions | W | 120000 | W | 90000 |
|  | Financial assets at fair value through profit or loss |  | 43524 |  | 51154 |
|  | Other assets |  | 7280 |  | 7984 |
|  | Other liabilities |  | 67 |  | 67 |
|  KB Investment Co., Ltd. | Loans measured at amortized cost (gross amount) |  | 310000 |  | 250000 |
|  | Allowances for credit losses |  | 924 |  | 872 |
|  | Other assets |  | 5943 |  | 9157 |
|  KB Data Systems Co., Ltd. | Property and equipment |  |  |  | 68 |
|  | Intangible assets |  | 1716 |  | 3341 |
|  | Other assets |  | 3456 |  | 2554 |
|  | Other liabilities |  | 208 |  | 160 |
|  KB Credit Information Co., Ltd. | Loans measured at amortized cost (gross amount) |  | 13500 |  |  |
|  | Allowances for credit losses |  | 16 |  |  |
|  | Other assets |  | 1054 |  | 1239 |
|  | Other liabilities |  | 61 |  |  |

---

30.3 Right-of-use assets and lease liabilities with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Subsidiary | Kookmin Bank | Right-of-use assets | W | 357 | W | 518 |

---

30.4 Unused commitments provided from related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Subsidiary | KB Kookmin Card Co., Ltd. | Unused lines of credit for credit card | W | 2245 | W | 2300 |

---

30.5 Share transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  |  | **2022** | **2022** | **2021** | **2021** |
|  Subsidiary | KB Capital Co., Ltd. | Paid-in capital increase of ordinary shares | W |  | W | 200000 |
|  |  | Acquisition of hybrid securities |  | 100000 |  |  |
|  | KB Securities Co., Ltd. | Acquisition of hybrid securities |  | 430000 |  |  |

---

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

30.6 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Beginning** | **Beginning** | **Loan** | **Loan** | **Collection** | **Ending** | **Ending** |
|  Subsidiary | KB Investment Co., Ltd. | W | 250000 | W | 60000 | W | W | 310000 |
|  | KB Credit Information Co., Ltd. |  |  |  | 13500 |  |  | 13500 |
|  | KB Capital Co., Ltd. |  |  |  | 200000 |  |  | 200000 |
|  | KB Savings Bank Co., Ltd. \* |  | 70000 |  |  |  |  | 70000 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Beginning** | **Beginning** | **Loan** | **Loan** | **Collection** | **Ending** | **Ending** |
|  Subsidiary | KB Investment Co., Ltd. | W | 180000 | W | 70000 | W | W | 250000 |
|  | KB Savings Bank Co., Ltd. \* |  |  |  | 70000 |  |  | 70000 |

---

\* Par value of subordinated bond issued by KB Savings Bank Co., Ltd. The difference between par value and fair value at the acquisition date was accounted for as investments in subsidiaries.

30.7 Details of compensation to key management personnel for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Short-term**<br>**employee<br>benefits** | **Short-term**<br>**employee<br>benefits** | **Post-<br>employment<br>benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Share-based<br>payments** | **Total** | **Total** |
|  Registered directors (executive) | W | 1100 | W | 33 | W | 932 | W | 2065 |
|  Registered directors (non-executive) |  | 638 |  |  |  |  |  | 638 |
|  Non-registered directors |  | 6955 |  | 140 |  | 4869 |  | 11964 |
|  | W | 8693 | W | 173 | W | 5801 | W | 14667 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Short-term**<br>**employee<br>benefits** | **Short-term**<br>**employee<br>benefits** | **Post-<br>employment<br>benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Share-based<br>payments** | **Total** | **Total** |
|  Registered director (executive) | W | 871 | W | 29 | W | 1937 | W | 2837 |
|  Registered director (non-executive) |  | 666 |  |  |  |  |  | 666 |
|  Non-registered director |  | 5746 |  | 61 |  | 7293 |  | 13100 |
|  | W | 7283 | W | 90 | W | 9230 | W | 16603 |

---

30.8 The Company paid W 45 million and W 30 million to KB Securities Co., Ltd., a subsidiary, for the underwriting and arrangement of debentures and hybrid securities for the years ended December 31, 2022 and 2021, respectively.

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##### [**Table of Contents**](#toc)
**KB Financial Group Inc.** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**31. Events after the reporting period** 

31.1 Merger of subsidiaries

At the board of directors meeting and shareholder's meeting on August 9, 2022, it is determined to merge the Group's subsidiaries, KB Life Insuarance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) and KB Life Insurance Co., Ltd.. Accordingly, the merger was completed with KB Life Insuarance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.) as a surviving corporation on January 1, 2023, and KB Life Insurance Co., Ltd. was dissolved after the merger.

31.2 retirement of treasury shares

The Company plans to acquire 5,385,996 shares(W 300,000 million) of its own shares and retire the treasury shares by May 7, 2023 pursuant to board resolutions dated February 7, 2023.

However, the treasury shares were calculated based on the closing price (W 55,700) on the day before the board meeting, on February 6, 2023, and the final number of shares to be retired may vary depending on the stock price.

**32. Approval of Issuance of the Financial Statements** 

The issuance of the Company's financial statements as of and for the year ended December 31, 2022, was approved by the board of directors on February 23, 2023.

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##### [**Table of Contents**](#toc)
**<u>Independent Auditors' Report on Internal Control over Financial Reporting</u>**

Based on a report originally issued in Korean

The Board of Directors and Stockholders

KB Financial Group Inc.:

*Opinion on Internal Control over Financial Reporting* 

We have audited the internal control over financial reporting ("ICFR") of KB Financial Group Inc. (the "Company") as of December 31, 2022 based on the criteria established in the Conceptual Framework for Designing and Operating ICFR ("ICFR Design and Operation Framework") issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea (the "ICFR Committee").

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on ICFR Design and Operation Framework.

We also have audited, in accordance with Korean Standards on Auditing (KSAs), the separate financial statements of the Company, which comprise the separate statements of financial position as of December 31, 2022 and 2021, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information, and our report dated March 7, 2023 expressed an unmodified opinion on those separate financial statements.

*Basis for Opinion* 

We conducted our audit in accordance with KSAs. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Internal Control over Financial Reporting section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the internal control over financial reporting in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Responsibilities of Management and Those Charged with Governance for the Internal Control over Financial Reporting* 

The Company's management is responsible for designing, operating and maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying 'Operating Status Report of the Internal Control over Financial Reporting.'

Those charged with governance are responsible for overseeing the Company's internal control over financial reporting.

*Auditors' Responsibilities for the Audit of the Internal Control over Financial Reporting* 

Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with KSAs. 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.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

*Definition and Limitations of Internal Control over Financial Reporting* 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards ("K-IFRS"). A company'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 company; (2) provide

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reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with K-IFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditors' report is Young-Min Kwon.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 7, 2023

&nbsp;&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 internal control over financial reporting. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

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**Operating Status Report of** 

**the Internal Control over Financial Reporting** 

To the Shareholders, Board of Directors and Audit Committee of KB Financial Group Inc..

We, as the Chief Executive Officer ("CEO") and the Internal Accounting Manager of KB Financial Group Inc.("the Company"), assessed operating status of the Company's Internal Control over Financial Reporting("ICFR") 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 of the readers, and we have reviewed and verified this report with sufficient care.

March 2, 2023

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|  Jong Kyoo Yoon,<br> Chief Executive Officer |
|  Young Ho Seo,<br> Internal Accounting Manager |

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