# EDGAR Filing Document

**Accession Number:** 0000869318
**File Stem:** 0001193125-26-018610
**Filing Date:** 2026-1
**Character Count:** 488320
**Document Hash:** 87c8fdad51de971c8f98fbb5494c9ce8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-018610.hdr.sgml**: 20260122

**ACCESSION NUMBER**: 0001193125-26-018610

**CONFORMED SUBMISSION TYPE**: 424B2

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20260122

**DATE AS OF CHANGE**: 20260122

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KOREA DEVELOPMENT BANK
- **CENTRAL INDEX KEY:** 0000869318
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **ORGANIZATION NAME:** International Corp Fin
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B2
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-280021
- **FILM NUMBER:** 26549638

**BUSINESS ADDRESS:**
- **STREET 1:** 460 PARK AVE STE 443
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
- **BUSINESS PHONE:** 2126887686

**MAIL ADDRESS:**
- **STREET 1:** 460 PARK AVE STE 443
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022

##### [**Table of Contents**](#toc)
**Filed Pursuant to Rule 424(b)(2)<br>Registration No. 333-280021**

<br> ---

| |
|:---|
|  **PROSPECTUS SUPPLEMENT**<br> (To Prospectus Dated May 20, 2025) |
|  **PROSPECTUS SUPPLEMENT**<br> (To Prospectus Dated May 20, 2025) |

---

![LOGO](g20828g01g01.jpg)

**The Korea Development Bank** 

**US$1,250,000,000 3.750% Notes due 2029** 

**US$1,250,000,000 4.000% Notes due 2031** 

**US$500,000,000 Floating Rate Notes due 2031** 

Our US$1,250,000,000 aggregate principal amount of notes due 2029 (the "2029 Notes") will bear interest at a rate of 3.750% per annum, our US$1,250,000,000 aggregate principal amount of notes due 2031 (the "2031 Notes") will bear interest at a rate of 4.000% per annum and our US$500,000,000 aggregate principal amount of floating rate notes due 2031 (the "Floating Rate Notes," and together with the 2029 Notes and the 2031 Notes, the "Notes") will bear interest at a rate equal to Compounded Daily SOFR (as defined herein) plus 0.500% per annum.

Interest on the 2029 Notes and the 2031 Notes is payable semi-annually in arrear on January 28 and July 28 of each year, beginning on July 28, 2026. Interest on the Floating Rate Notes is payable quarterly in arrear on January 28, April 28, July 28 and October 28 of each year, subject in each case to adjustment in accordance with the Modified Following Business Day Convention, as explained herein (each, a "Floating Rate Notes Interest Payment Date"). The first interest payment on the Floating Rate Notes will be made on the Floating Rate Notes Interest Payment Date falling on or nearest to April 28, 2026 in respect of the period from (and including) January 28, 2026 to (but excluding) the Floating Rates Notes Interest Payment Date falling on or nearest to April 28, 2026. The 2029 Notes will mature on January 28, 2029, the 2031 Notes will mature on January 28, 2031 and the Floating Rate Notes will mature on the Floating Rate Notes Interest Payment Date falling on or nearest to January 28, 2031.

The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess thereof. The Notes will be represented by one or more global securities registered in the name of a nominee of The Depository Trust Company ("DTC"), as depositary.

The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government (as defined herein).

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2029 Notes** | **2029 Notes** | **2029 Notes** | **2031 Notes** | **2031 Notes** | **2031 Notes** | **Floating Rate Notes** | **Floating Rate Notes** | **Floating Rate Notes** |
|  | **Per Note** | **Total** | **Total** | **Per Note** | **Total** | **Total** | **Per Note** | **Total** | **Total** |
|  Public offering price | 99.655% | US$ | 1245687500 | 99.534% | US$ | 1244175000 | 100.000% | US$ | 500000000 |
|  Underwriting discounts | 0.200% | US$ | 2500000 | 0.200% | US$ | 2500000 | 0.200% | US$ | 1000000 |
|  Proceeds to us, before expenses | 99.455% | US$ | 1243187500 | 99.334% | US$ | 1241675000 | 99.800% | US$ | 499000000 |

---

In addition to the initial public offering price, you will have to pay for accrued interest, if any, from and including January 28, 2026.

Applications will be made to the Singapore Exchange Securities Trading Limited (the "SGX-ST") for the listing and quotation of the Notes on the SGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this prospectus supplement and the accompanying prospectus. Approval in-principle from, admission to the Official List of, and listing and quotation of the Notes on, the SGX-ST are not to be taken as an indication of the merits of us or the Notes. Currently, there is no public market for the Notes. In addition, application will be made to list the Notes on the Luxembourg Stock Exchange and to have the Notes admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. Application will also be made for listing of the Notes to the International Securities Market of the London Stock Exchange. No assurance can be given that such applications will be approved or that such listings will be maintained.

We expect to make delivery of the Notes to investors through the book-entry facilities of DTC on or about January 28, 2026.

*Joint Bookrunners and Lead Managers* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **ANZ** |  |  |  |  |  |  |
|  | **BofA Securities** |  |  |  |  |  |
|  |  | **Crédit Agricole CIB** |  |  |  |  |
|  |  |  | **KB SECURITIES** |  |  |  |
|  |  |  |  | **KDB Asia** |  |  |
|  |  |  |  |  | **Morgan Stanley** |  |
|  |  |  |  |  |  | **MUFG** |

---

**Prospectus Supplement Dated January 21, 2026** 

------

##### [**Table of Contents**](#toc)
You should rely only on the information contained in or incorporated by reference in this prospectus supplement and the accompanying prospectus. We have not authorized anyone to provide you with different information. We are not making an offer to sell these securities in any state or jurisdiction where the offer or sale is not permitted.

**TABLE OF CONTENTS** 

**Prospectus Supplement** 

---

| | | |
|:---|:---|:---|
|  | **Page** | **Page** |
|  [Summary of the Offering](#supp910214_1) |  | S-6 |
|  [Use of Proceeds](#supp910214_2) |  | S-8 |
|  [Recent Developments](#supp910214_3) |  | S-9 |
|  [Description of the Notes](#supp910214_4) |  | S-133 |
|  [Clearance and Settlement](#supp910214_5) |  | S-140 |
|  [Taxation](#supp910214_6) |  | S-143 |
|  [Underwriting](#supp910214_7) |  | S-144 |
|  [Legal Matters](#supp910214_8) |  | S-152 |
|  [Official Statements and Documents](#supp910214_9) |  | S-152 |
|  [General Information](#supp910214_10) |  | S-152 |

---

**Prospectus** 

---

| | |
|:---|:---|
|  | **Page** |
|  CERTAIN DEFINED TERMS AND CONVENTIONS | 1 |
|  USE OF PROCEEDS | 2 |
|  THE KOREA DEVELOPMENT BANK | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overview | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selected Financial Statement Data | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sources of Funds | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overseas Operations | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors and Management; Employees | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tables and Supplementary Information | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and the Auditors | 34 |
|  THE REPUBLIC OF KOREA | 165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land and History | 165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and Politics | 167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Economy | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal Sectors of the Economy | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Financial System | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Monetary Policy | 190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance of Payments and Foreign Trade | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government Finance | 201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tables and Supplementary Information | 207 |

---

------

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

---

| | |
|:---|:---|
|  | **Page** |
|  DESCRIPTION OF THE SECURITIES | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Description of Debt Securities | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Description of Warrants | 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Terms Applicable to Debt Securities and Warrants | 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Description of Guarantees to be Issued by Us | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Description of Guarantees to be Issued by The Republic of Korea | 219 |
|  LIMITATIONS ON ISSUANCE OF BEARER DEBT SECURITIES AND BEARER WARRANTS | 220 |
|  TAXATION | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean Taxation | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Federal Income Tax Considerations | 223 |
|  PLAN OF DISTRIBUTION | 232 |
|  LEGAL MATTERS | 233 |
|  AUTHORIZED REPRESENTATIVES IN THE UNITED STATES | 233 |
|  OFFICIAL STATEMENTS AND DOCUMENTS | 233 |
|  EXPERTS | 233 |
|  FORWARD-LOOKING STATEMENTS | 234 |
|  FURTHER INFORMATION | 236 |

---

------

##### [**Table of Contents**](#toc)
**Certain Defined Terms** 

All references to "we" or "us" mean The Korea Development Bank. All references to "Korea" or the "Republic" contained in this prospectus supplement mean The Republic of Korea. All references to the "Government" mean the government of Korea. Terms used but not defined in this prospectus supplement shall have the same meanings given to them in the accompanying prospectus.

Our separate financial information as of December 31, 2024, June 30, 2025 and September 30, 2025 and for the six months ended June 30, 2024 and 2025 and the nine months ended September 30, 2024 and 2025 included in this prospectus supplement has been prepared in accordance with International Financial Reporting Standards as adopted in Korea ("Korean IFRS" or "K-IFRS"). References in this prospectus supplement to "separate" financial statements and information are to financial statements and information prepared on a non-consolidated basis. Unless specified otherwise, our financial and other information included in this prospectus supplement is presented on a separate basis in accordance with Korean IFRS and does not include such information with respect to our subsidiaries.

In this prospectus supplement and the accompanying prospectus, where information has been provided in units of thousands, millions or billions, such amounts have been rounded up or down. Accordingly, actual numbers may differ from those contained herein due to rounding. Any discrepancy between the stated total amount and the actual sum of the itemized amounts listed in a table is due to rounding.

**IMPORTANT NOTICES** 

MiFID II product governance / Professional investors and ECPs only target market — Solely for the purposes of the manufacturer's product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties and professional clients only, each as defined in Directive 2014/65/EU (as amended, "MiFID II"); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the manufacturer's target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer's target market assessment) and determining appropriate distribution channels.

UK MiFIR product governance / Professional investors and ECPs only target market — Solely for the purposes of the manufacturer's product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook, and professional clients, each as defined in Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MiFIR"); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the manufacturer's target market assessment; however, a distributor subject to the FCA Handbook Product Intervention and Product Governance Sourcebook (the "UK MiFIR Product Governance Rules") is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer's target market assessment) and determining appropriate distribution channels.

**Additional Information** 

The information in this prospectus supplement is in addition to the information contained in our prospectus dated May 20, 2025. The accompanying prospectus contains information regarding us and Korea, as well as a description of some terms of the Notes. You can find further information regarding us, Korea and the Notes in

------

##### [**Table of Contents**](#toc)
registration statement no. 333-280021, as amended, relating to our debt securities, with or without warrants, and guarantees, which is on file with the U.S. Securities and Exchange Commission.

**We are Responsible for the Accuracy of the Information in this Document** 

We are responsible for the accuracy of the information in this document and confirm that to the best of our knowledge we have included all facts that should be included not to mislead potential investors. The SGX-ST assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this prospectus supplement and the accompanying prospectus. Approval in-principle from, admission to the Official List of, and listing and quotation of the Notes on, the SGX-ST are not to be taken as an indication of the merits of us or the Notes.

**Not an Offer if Prohibited by Law** 

The distribution of this prospectus supplement and the accompanying prospectus, and the offer of the Notes, may be legally restricted in some countries. If you wish to distribute this prospectus supplement or the accompanying prospectus, you should observe any restrictions. This prospectus supplement and the accompanying prospectus should not be considered an offer and should not be used to make an offer, in any state or country which prohibits the offering.

The Notes may not be offered or sold in Korea, directly or indirectly, or to any resident of Korea, except as permitted by Korean law. For more information, see "Underwriting—Foreign Selling Restrictions."

**Information Presented Accurate as of Date of Document** 

This prospectus supplement and the accompanying prospectus are the only documents on which you should rely for information about the offering. We have authorized no one to provide you with different information. You should not assume that the information in this prospectus supplement or the accompanying prospectus is accurate as of any date other than the date on the front of each document.

------

##### [**Table of Contents**](#toc)
**IMPORTANT NOTICE TO PROSPECTIVE INVESTORS** 

Prospective investors should be aware that certain intermediaries in the context of this offering of the Notes, including certain Underwriters (as defined below), are "capital market intermediaries" ("CMIs") subject to Paragraph 21 of the SFC Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission of Hong Kong (the "SFC Code"). This notice to prospective investors is a summary of certain obligations the SFC Code imposes on such CMIs, which require the attention and cooperation of prospective investors. Certain CMIs may also be acting as "overall coordinators" ("OCs") for this offering and are subject to additional requirements under the SFC Code.

Prospective investors who are the directors, employees or major shareholders of The Korea Development Bank (the "Issuer"), a CMI or its group companies would be considered under the SFC Code as having an association ("Association") with the Issuer, the CMI or the relevant group company. Prospective investors associated with the Issuer or any CMI (including its group companies) should specifically disclose this when placing an order for the Notes and should disclose, at the same time, if such orders may negatively impact the price discovery process in relation to this offering. Prospective investors who do not disclose their Associations are hereby deemed not to be so associated. Where prospective investors disclose their Associations but do not disclose that such order may negatively impact the price discovery process in relation to this offering, such order is hereby deemed not to negatively impact the price discovery process in relation to this offering.

Prospective investors should ensure, and by placing an order prospective investors are deemed to confirm, that orders placed are bona fide, are not inflated and do not constitute duplicated orders (i.e., two or more corresponding or identical orders placed via two or more CMIs). If a prospective investor is an asset management arm affiliated with any Underwriter, such prospective investor should indicate when placing an order if it is for a fund or portfolio where the Underwriter or its group company has more than a 50% interest, in which case it will be classified as a "proprietary order" and subject to appropriate handling by CMIs in accordance with the SFC Code and should disclose, at the same time, if such "proprietary order" may negatively impact the price discovery process in relation to this offering. Prospective investors who do not indicate this information when placing an order are hereby deemed to confirm that their order is not a "proprietary order". If a prospective investor is otherwise affiliated with any Underwriter, such that its order may be considered to be a "proprietary order" (pursuant to the SFC Code), such prospective investor should indicate to the relevant Underwriter when placing such order. Prospective investors who do not indicate this information when placing an order are hereby deemed to confirm that their order is not a "proprietary order". Where prospective investors disclose such information but do not disclose that such "proprietary order" may negatively impact the price discovery process in relation to this offering, such "proprietary order" is hereby deemed not to negatively impact the price discovery process in relation to this offering.

Prospective investors should be aware that certain information may be disclosed by CMIs (including private banks) which is personal and/or confidential in nature to the prospective investor. By placing an order, prospective investors are deemed to have understood and consented to the collection, disclosure, use and transfer of such information by the Underwriters and/or any other third parties as may be required by the SFC Code, including to the Issuer, any OCs, relevant regulators and/or any other third parties as may be required by the SFC Code, it being understood and agreed that such information shall only be used for the purpose of complying with the SFC Code, during the bookbuilding process for this offering. Failure to provide such information may result in that order being rejected.

------

##### [**Table of Contents**](#toc)
**SUMMARY OF THE OFFERING** 

*This summary highlights selected information from this prospectus supplement and the accompanying prospectus and may not contain all of the information that is important to you. To understand the terms of our Notes, you should carefully read this prospectus supplement and the accompanying prospectus.* 

**The Notes** 

We are offering US$1,250,000,000 aggregate principal amount of 3.750% notes due January 28, 2029 (the "2029 Notes"), US$1,250,000,000 aggregate principal amount of 4.000% notes due January 28, 2031 (the "2031 Notes") and US$500,000,000 aggregate principal amount of floating rate notes due on the Floating Rate Notes Interest Payment Date (as defined below) falling on or nearest to January 28, 2031 (the "Floating Rate Notes," and together with the 2029 Notes and the 2031 Notes, the "Notes").

The 2029 Notes will bear interest at a rate of 3.750% per annum and the 2031 Notes will bear interest at a rate of 4.000% per annum, in each case payable semi-annually in arrear on January 28 and July 28 of each year, beginning on July 28, 2026. Interest on the 2029 Notes and the 2031 Notes will be computed based on a 360-day year consisting of twelve 30-day months. See "Description of the Notes—Payment of Principal and Interest—Fixed Rate Notes."

The Floating Rate Notes will bear interest at a rate equal to Compounded Daily SOFR (as defined herein) plus 0.500% per annum, payable quarterly in arrear on January 28, April 28, July 28 and October 28 of each year, subject in each case to adjustment in accordance with the Modified Following Business Day Convention, as explained herein (each, a "Floating Rate Notes Interest Payment Date"). The first interest payment on the Floating Rate Notes will be made on the Floating Rate Notes Interest Payment Date falling on or nearest to April 28, 2026 in respect of the period from (and including) January 28, 2026 to (but excluding) the Floating Rate Notes Interest Payment Date falling on or nearest to April 28, 2026. Interest on the Floating Rate Notes will accrue from (and including) January 28, 2026 and will be computed on the basis of the actual number of days in the applicable Floating Rate Notes Interest Period (as defined herein) divided by 360. See "Description of the Notes—Payment of Principal and Interest—Floating Rate Notes".

The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess thereof. The Notes will be represented by one or more global securities registered in the name of a nominee of The Depository Trust Company ("DTC"), as depositary.

The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government.

We do not have any right to redeem the Notes prior to maturity.

***Listing***

Applications will be made to the SGX-ST for the listing and quotation of the Notes on the SGX-ST. Settlement of the Notes is not conditioned on obtaining the listing. For so long as the Notes are listed on the SGX-ST and the rules of the SGX-ST so require, the Notes, if traded on the SGX-ST, will be traded in a minimum board lot size of S$200,000 (or its equivalent in foreign currencies). Accordingly, the Notes, if traded on the SGX-ST, will be traded in a minimum board lot size of US$200,000.

In addition, application will be made to list the Notes on the Luxembourg Stock Exchange and to have the Notes admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. Application will also be made for listing of the Notes to the International Securities Market of the London Stock Exchange. No assurance can be given that such applications will be approved or that such listings will be maintained.

------

##### [**Table of Contents**](#toc)
***Form and Settlement***

We will issue each series of the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of DTC, as depositary. Except as described in the accompanying prospectus under "Description of the Securities—Description of Debt Securities—Global Securities," the global notes will not be exchangeable for Notes in definitive registered form, and will not be issued in definitive registered form. Financial institutions, acting as direct and indirect participants in DTC, will represent your beneficial interests in the global notes. These financial institutions will record the ownership and transfer of your beneficial interest through book-entry accounts. You may hold your beneficial interests in the Notes through Euroclear Bank SA/NV ("Euroclear") or Clearstream Banking, S.A. ("Clearstream") if you are a participant in such systems, or indirectly through organizations that are participants in such systems. Any secondary market trading of book-entry interests in the Notes will take place through DTC participants, including Euroclear and Clearstream. See "Clearance and Settlement—Transfers Within and Between DTC, Euroclear and Clearstream".

***Further Issues***

We may from time to time, without the consent of the holders of the Notes, create and issue additional debt securities with the same terms and conditions as either series of the Notes in all respects so that such further issue shall be consolidated and form a single series with the relevant series of the Notes. We will not issue any such additional debt securities unless such additional securities have less than a *de minimis* amount of original issue discount or such issuance would otherwise constitute a "qualified reopening" for U.S. federal income tax purposes.

***Delivery of the Notes***

We expect to make delivery of the Notes, against payment in same-day funds on or about January 28, 2026, which we expect will be the fifth business day following the date of this prospectus supplement, referred to as "T+5," for the Notes. You should note that initial trading of the Notes may be affected by the T+5 settlement. See "Underwriting—Delivery of the Notes".

***Underwriting***

Crédit Agricole Corporate and Investment Bank will offer the Notes in the United States through its registered broker-dealer affiliate in the United States, Crédit Agricole Securities (USA) Inc. KDB Asia Limited, one of the underwriters, is our affiliate and has agreed to offer and sell the Notes only outside the United States to non-U.S. persons. See "Underwriting—Relationship with the Underwriters".

------

##### [**Table of Contents**](#toc)
**USE OF PROCEEDS**

The net proceeds from the issue of the Notes, after deducting the underwriting discount but not estimated expenses, will be US$2,983,862,500. We will use the net proceeds from the sale of the Notes for our general operations, including extension of foreign currency loans and repayment of our maturing debt and other obligations.

------

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

*This section provides information that supplements the information about our bank and the Republic included under the headings corresponding to the headings below in the accompanying prospectus dated May 20, 2025. Defined terms used in this section have the meanings given to them in the accompanying prospectus. If the information in this section differs from the information in the accompanying prospectus, you should rely on the information in this section.* 

**THE KOREA DEVELOPMENT BANK** 

Unless specified otherwise, the information provided below is stated on a separate basis in accordance with Korean IFRS ("K-IFRS").

**Overview** 

As of June 30, 2025, we had W210,888.8 billion of loans outstanding (including loans, call loans, domestic usance, bills of exchange bought, local letters of credit negotiation and loan-type suspense accounts pursuant to the applicable guidelines without adjusting for allowance for loan losses, present value discounts and deferred loan fees), W340,869.4 billion of total assets and W44,847.9 billion of total equity, compared to W212,382.5 billion of loans outstanding, W339,221.1 billion of total assets and W42,924.9 billion of total equity as of December 31, 2024. For the six months ended June 30, 2025, we recorded interest income of W5,582.3 billion, interest expense of W5,040.4 billion and net income of W1,908.4 billion, compared to W6,125.2 billion of interest income, W5,562.5 billion of interest expense and W1,673.8 billion of net income for the six months ended June 30, 2024. See "—Selected Financial Statement Data."

The KDB Act was amended in September 2025 to (i) increase the maximum amount of our authorized capital from W30,000 billion to W45,000 billion, following which our Articles of Incorporation were amended in December 2025 to increase our authorized capital from W30,000 billion to W45,000 billion and (ii) to provide statutory grounds for the establishment of a High-Tech Strategic Industry Fund to support businesses in industries such as semiconductors, secondary batteries and artificial intelligence.

**Capitalization** 

As of September 30, 2025, our authorized capital was W45,000 billion and our capitalization was as follows:

---

| | |
|:---|:---|
|  | **September 30, 2025<sup>(1)</sup>** |
|  | **(billions of Won)** |
|  | **(unaudited)** |
|  Long-term debt<sup>(2)(3)(4)</sup>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Won currency borrowings | 4463.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial finance bonds | 165504.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency borrowings | 6839.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term debt | 176807.0 |
|  Capital: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital | 27220.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus | 2452.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings<sup>(5)</sup> | 15226.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 751.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capital | 45650.9 |
|  Total capitalization | 222457.9 |

---

(1) Except as disclosed in this prospectus supplement, there has been no material change in our capitalization since
September 30, 2025.

------

##### [**Table of Contents**](#toc)
(2) Defined as debt that has a maturity at issuance of one year or more.

(3) We have translated borrowings in foreign currencies into Won at the rate of W 1,402.2 to
US$1.00, which was the market average exchange rate, as announced by the Seoul Money Brokerage Services Ltd., on September 30, 2025.

(4) As of September 30, 2025, we had confirmed acceptances and guarantees totaling W 11,539.7 billion under outstanding guarantees issued on behalf of our clients.

(5) Includes planned regulatory reserve for credit losses of W 72.6 billion as of
September 30, 2025. If our allowance for credit losses is deemed insufficient for regulatory purposes, we compensate for the difference by recording a regulatory reserve for credit losses, which is shown as a separate item included in retained
earnings.

**Business** 

***Government Support and Supervision***

The Government contributed W388 billion in cash in June 2025 to our capital. The Government further contributed W206 billion and W90 billion in cash to our capital in July 2025 and September 2025, respectively. As of September 30, 2025, our paid-in capital was W27,220.7 billion compared to W26,316.6 billion as of December 31, 2024. In October 2025, the Government contributed W37 billion in cash to our capital.

**Selected Financial Statement Data** 

***Separate Financial Statement Data***

***Recent Developments***

As of September 30, 2025, we had W218,519.4 billion of loans outstanding (including loans, call loans, domestic usance, bills of exchange bought, local letters of credit negotiation and loan-type suspense accounts pursuant to the applicable guidelines without adjusting for allowance for loan losses, present value discounts and deferred loan fees), total assets of W345,045.2 billion and total equity of W45,650.9 billion, as compared to W212,382.5 billion of loans outstanding, W339,221.1 billion of total assets and W42,924.9 billion of total equity as of December 31, 2024. For the nine months ended September 30, 2025, we recorded interest income of W8,235.4 billion, interest expense of W7,418.6 billion and net income of W2,249.8 billion, as compared to W9,156.8 billion of interest income, W8,348.6 billion of interest expense and W1,801.0 billion of net income for the nine months ended September 30, 2024. The following tables present our selected separate financial information for the nine months ended September 30, 2024 and 2025 and as of December 31, 2024 and September 30, 2025, which has been derived from our unaudited separate financial statements as of December 31, 2024 and September 30, 2025 and for the nine months ended September 30, 2024 and 2025 prepared in accordance with K-IFRS.

**Separate K-IFRS Financial Statement Data** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2024** | **2025** |
|  | **(billions of Won)<br>(unaudited)** | **(billions of Won)<br>(unaudited)** |
|  **Income Statement Data** |  |  |
|  Total Interest Income | 9156.8 | 8235.4 |
|  Total Interest Expenses | 8348.6 | 7418.6 |
|  Net Interest Income | 808.2 | 816.8 |
|  Operating Income | 2102.3 | 2602.6 |
|  Income before Income Tax | 2219.3 | 3084.1 |
|  Income Tax Expense | 418.3 | 834.4 |
|  Net Income | 1801.0 | 2249.8 |

---

------

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

---

| | | |
|:---|:---|:---|
|  | **As of<br>December 31, 2024** | **As of<br>September 30, 2025** |
|  | **(billions of Won)<br>(unaudited)** | **(billions of Won)<br>(unaudited)** |
|  **Statements of Financial Position Data** |  |  |
|  Total Loans<sup>(1)</sup> | 212382.5 | 218519.4 |
|  Total Borrowings<sup>(2)</sup> | 266322.6 | 270172.0 |
|  Total Assets | 339221.1 | 345045.2 |
|  Total Liabilities | 296296.2 | 299394.2 |
|  Equity | 42924.9 | 45650.9 |

---

(1) Gross amount, which includes loans for facility development, loans for working capital, loans for households,
inter-bank loans, private loans, off-shore loan receivables, loans borrowed from overseas financial institutions, bills bought in foreign currencies, advance payments on acceptances and guarantees
and other loans without adjusting for allowance for loan losses, present value discounts and deferred loan fees.

(2) Total borrowings include financial liabilities designated at fair value through profit or loss, deposits,
borrowings and debentures.

*Nine Months Ended September 30, 2025* 

For the nine months ended September 30, 2025, we had net income of W2,249.8 billion compared to net income of W1,801.0 billion in the corresponding period of 2024, on a separate K-IFRS basis. The principal factors for the increase in net income included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in net gain (loss) on disposal of investments in subsidiaries and associates to a net gain of W 792.3 billion in the nine months ended September 30, 2025 from a net loss of W 5.8 billion in the corresponding period of 2024, primarily due to the gains recognized on our partial divestment of Hanwha Ocean;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in reversal of impairment loss on investments in subsidiaries and associates to W 487.1 billion in the nine months ended September 30, 2025 from W 120.5 billion
in the corresponding period of 2024, primarily reflecting a reversal of impairment loss recognized in connection with an increase in the value of the common shares of HMM Company Limited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in net loss on derivatives to W 42.9 billion in the nine months ended September 30, 2025 from W 310.6 billion in the corresponding period of 2024, primarily due
to an increase in net gain on the valuation of hedging purpose currency derivatives, which was offset in large part by increases in net losses on the valuation of trading purpose currency derivatives and fair value hedged items.

The above factors were partially offset by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in income tax expense to W 834.4 billion in the nine months ended September 30, 2025 from W 418.3 billion in the corresponding period of 2024, primarily due to
an increase in our profit before income taxes to W 3,084.1 billion in the nine months ended September 30, 2025 from W 2,219.3 billion in the corresponding period of 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in reversal of provisions for credit losses to W 19.9 billion in the nine months ended September 30, 2025 from W 409.4 billion in the corresponding period of
2024, primarily due to a change in provisions for (reversal of) loan loss allowance to provisions of W 196.4 billion in the nine months ended September 30, 2025 from reversal of provisions of W 70.8 billion in the corresponding period of 2024, which in turn mainly reflected the significant reversals recorded in the nine months ended September 30, 2024 following improvements in the credit ratings of certain of
our large borrowers, such as Hanwha Ocean, which were not repeated to the same extent in the corresponding period of 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in net gain on foreign currency transactions to W 299.9 billion in the nine months ended September 30, 2025 from W 444.0 billion in the corresponding period of
2024, which was primarily due to foreign currency fluctuations; and

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in dividend income to W 778.4 billion in the nine months ended September 30, 2025 from W 911.4 billion in the corresponding period of 2024, which was primarily
due to a decrease in dividends we received from the funds in which we invested during the nine months ended September 30, 2025 compared to the corresponding period of 2024.

*Loans to Financially Troubled Companies* 

We have credit exposure to a number of financially troubled Korean companies, including HMM Company Limited (formerly, Hyundai Merchant Marine Co., Ltd.), HJ Shipbuilding & Construction Co., Ltd. (formerly, Hanjin Heavy Industries & Construction Co., Ltd.), Daehan Shipbuilding Co., Ltd., K Shipbuilding Co., Ltd. (formerly, STX Offshore & Shipbuilding), GM Korea Company and Taeyoung E&C. As of September 30, 2025, our credit extended to these companies totaled W9,636.2 billion, accounting for 2.8% of our total assets as of such date.

The following table shows the changes in credit exposure (including loans, guarantees and equity investments classified as substandard or below) extended to these companies as of the dates indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Company** | **As of**<br>**December 31,<br>2024** | **As of**<br>**December 31,<br>2024** | **As of**<br>**September 30,<br>2025** | **As of**<br>**September 30,<br>2025** | **Primary Reason for Change** |
|  | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** |  |
|  HMM Company Limited | W | 6595.1 | W | 6675.8 | Increase due to a reversal of impairment loss |
|  HJ Shipbuilding & Construction |  | 966.8 |  | 1043.2 | Increase due to an increase in refund guarantees |
|  Daehan Shipbuilding |  | 1067.3 |  | 640.1 | Decrease due to the full repayment of production financing loans and a decrease in refund guarantees |
|  K Shipbuilding |  | 728.5 |  | 659.8 | Decrease due to a decrease in refund guarantees |
|  GM Korea Company |  | 474.7 |  | 483.6 | Increase due to a reversal of impairment loss |
|  Taeyoung E&C |  | 133.7 |  | 133.7 |  |
|  Total | W | 9966.1 | W | 9636.2 |  |

---

As of September 30, 2025, we established allowances of W0.1 billion for HMM Company Limited, W151.1 billion for HJ Shipbuilding & Construction, W13.2 billion for Daehan Shipbuilding, W23.5 billion for K Shipbuilding, none for GM Korea Company and W29.3 billion for Taeyoung E&C.

In the first nine months of 2025, we sold non-performing loans worth W187.6 billion to Hana F&I Co., Ltd.

***Results of Operations***

The following tables present our selected separate financial information as of December 31, 2024 and June 30, 2025 and for the six months ended June 30, 2024 and 2025, which has been derived from our unaudited separate financial statements as of June 30, 2025 and for the six months ended June 30, 2024 and 2025 prepared in accordance with K-IFRS and included in this prospectus supplement.

------

##### [**Table of Contents**](#toc)
**Separate K-IFRS Financial Statement Data** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2024** | **2025** |
|  | **(billions of Won)<br>(unaudited)** | **(billions of Won)<br>(unaudited)** |
|  **Income Statement Data** |  |  |
|  Total Interest Income | 6125.2 | 5582.3 |
|  Total Interest Expenses | 5562.5 | 5040.4 |
|  Net Interest Income | 562.8 | 541.9 |
|  Operating Income | 1660.6 | 2093.3 |
|  Income before Income Tax | 2032.3 | 2581.5 |
|  Income Tax Expense | 358.5 | 673.1 |
|  Net Income | 1673.8 | 1908.4 |

---

---

| | | |
|:---|:---|:---|
|  | **As of<br>December 31, 2024** | **As of<br>June 30, 2025** |
|  | **(billions of Won)<br>(unaudited)** | **(billions of Won)<br>(unaudited)** |
|  **Statements of Financial Position Data** |  |  |
|  Total Loans<sup>(1)</sup> | 212382.5 | 210888.8 |
|  Total Borrowings<sup>(2)</sup> | 266322.6 | 264478.0 |
|  Total Assets | 339221.1 | 340869.4 |
|  Total Liabilities | 296296.2 | 296021.4 |
|  Equity | 42924.9 | 44847.9 |

---

(1) Gross amount, which includes loans for facility development, loans for working capital, loans for households,
inter-bank loans, private loans, off-shore loan receivables, bills bought in foreign currencies, advance payments on acceptances and guarantees and other loans without adjusting for allowance for loan losses,
present value discounts and deferred loan origination costs and fees. See Note 8 of the notes to our unaudited separate financial statements as of June 30, 2025 and for the six months ended June 30, 2024 and 2025 included in this
prospectus supplement.

(2) Total borrowings include financial liabilities designated at fair value through profit or loss, deposits,
borrowings and debt issued.

*Six Months Ended June 30, 2025* 

In the first half of 2025, we had net income of W1,908.4 billion compared to net income of W1,673.8 billion in the corresponding period of 2024, on a separate K-IFRS basis. The principal factors for the increase in net income included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in net gain (loss) on derivatives to a net gain of W 229.3 billion in the first half of 2025 from a net loss of W 414.4 billion in the corresponding period of 2024,
primarily due to a change in net gain (loss) on the valuation of hedging purpose derivatives to a net gain in the first half of 2025 from a net loss in the corresponding period of 2024, which in turn resulted mainly from foreign currency
fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in net gain (loss) on disposal of investments in subsidiaries and associates to a net gain of W 569.8 billion in the first half of 2025 from a net loss of W 7.2 billion
in the corresponding period of 2024, primarily due to the gains recognized on our partial divestment of Hanwha Ocean;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in reversal of impairment loss on investments in subsidiaries and associates to W 487.1 billion in the first half of 2025 from W 374.3 billion in the corresponding
period of 2024, primarily reflecting a reversal of impairment loss recognized in connection with an increase in the value of the common shares of HMM Company Limited; and

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in net gain on securities measured at fair value through profit or loss to W 358.6 billion in the first half of 2025 from W 246.9 billion in the corresponding period
of 2024, which was mainly due to an increase in gains on the valuation of redeemable convertible preferred shares of ABL Bio Inc. held by us.

The above factors were partially offset by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in net gain (loss) on foreign currency transactions to a net loss of W 6.2 billion in the first half of 2025 from a net gain of W 571.4 billion in the corresponding
period of 2024, which was primarily due to foreign currency fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in income tax expense to W 673.1 billion in the first half of 2025 from W 358.5 billion in the corresponding period of 2024, primarily due to an increase in profit
before income taxes in the first half of 2025 compared to the corresponding period of 2024, as well as the recognition of certain deferred tax expenses in the first half of 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in reversal of provisions for credit losses to W 71.3 billion in the first half of 2025 from W 378.8 billion in the corresponding period of 2024, primarily due to a
change to provisions for loan loss allowances of W 152.4 billion in the first half of 2025 from a reversal of such provisions of W 69.1 billion in the corresponding period of 2024, which in turn mainly
reflected the significant reversals recorded in the first half of 2024 following improvements in the credit ratings of certain of our large borrowers, such as Hanwha Ocean, which were not repeated to the same extent in the corresponding period of
2025. ***Allowances for Loan Losses and Loans in Arrears***

As of June 30, 2025, we had established allowances of W2,943.4 billion for loan losses under Korean IFRS.

Certain of our customers have restructured loans with their creditor banks. As of June 30, 2025, we have provided loans of W590.3 billion for companies under workout, court receivership, court mediation and other restructuring procedures. As of June 30, 2025, we had established allowances of W366.2 billion for loan losses with respect to such companies. We cannot assure you that actual credit losses from the loans to these customers will not exceed the allowances established.

The following table provides information on our loan loss allowances.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **As of June 30, 2025<sup>(1)</sup>** | **As of June 30, 2025<sup>(1)</sup>** | **As of June 30, 2025<sup>(1)</sup>** | **As of June 30, 2025<sup>(1)</sup>** |
|  |  | **Loan Amount** | **Loan Amount** | **Loan Loss<br>Allowances** | **Loan Loss<br>Allowances** |
|  |  | **(in billions of Won, except percentages)** | **(in billions of Won, except percentages)** | **(in billions of Won, except percentages)** | **(in billions of Won, except percentages)** |
|  Loan Classification | Normal<sup>(2)</sup> | W | 209324.8 | W | 2160.2 |
|  Loan Classification | Precautionary |  | 474.5 |  | 84.1 |
|  Loan Classification | Substandard |  | 448.4 |  | 208.8 |
|  Loan Classification | Doubtful |  | 196.1 |  | 130.3 |
|  Loan Classification | Expected Loss |  | 445.1 |  | 360.0 |
|  | Total | W | 210888.8 | W | 2943.4 |

---

(1) These figures include loans for facility development, loans for working capital, loans for households,
inter-bank loans, private loans, off-shore loan receivables, loans borrowed from overseas financial institutions, bills bought in foreign currencies, advance payments on acceptances and guarantees and other
loans.

(2) Includes loans guaranteed by the Government. Under Korean IFRS, we establish loan loss allowances for all loans
including loans guaranteed by the Government.

------

##### [**Table of Contents**](#toc)
As of June 30, 2025, our non-performing loans totaled W1,089.5 billion, representing 0.5% of our outstanding loans as of such date. Non-performing loans are defined as loans that are classified as substandard or below. On June 30, 2025, our legal reserve was W4,528.3 billion, representing 2.1% of our outstanding loans as of such date.

***Loans to Financially Troubled Companies***

We have credit exposure to a number of financially troubled Korean companies, including HMM Company Limited (formerly, Hyundai Merchant Marine Co., Ltd.), HJ Shipbuilding & Construction Co., Ltd. (formerly, Hanjin Heavy Industries & Construction Co., Ltd.), Daehan Shipbuilding Co., Ltd., K Shipbuilding Co., Ltd. (formerly, STX Offshore & Shipbuilding), GM Korea Company and Taeyoung E&C. As of June 30, 2025, our credit extended to these companies totaled W10,395.8 billion, accounting for 3.0% of our total assets as of such date.

The following table shows the changes in credit exposure (including loans, guarantees and equity investments classified as substandard or below) extended to these companies as of the dates indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of<br>December 31,<br>2024** | **As of<br>December 31,<br>2024** | **As of<br>June 30,<br>2025** | **As of<br>June 30,<br>2025** |  |
|  | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** |  |
|  HMM Company Limited | W | 6595.1 | W | 7401.4 | Increase due to a reversal of impairment loss resulting from the conversion of convertible bonds into stock |
|  HJ Shipbuilding & Construction |  | 966.8 |  | 953.0 | Decrease due to a decrease in refund guarantees |
|  Daehan Shipbuilding |  | 1067.3 |  | 827.0 | Decrease due to repayment of loans and a decrease in refund guarantees |
|  K Shipbuilding |  | 728.5 |  | 597.1 | Decrease due to a decrease in refund guarantees |
|  GM Korea Company |  | 474.7 |  | 483.5 | Increase due to a reversal of impairment loss |
|  Taeyoung E&C |  | 133.7 |  | 133.7 |  |
|  Total | W | 9966.1 | W | 10395.8 |  |

---

As of June 30, 2025, we established allowances of W0.2 billion for HMM Company Limited, W134.0 billion for HJ Shipbuilding & Construction, W17.7 billion for Daehan Shipbuilding, W21.3 billion for K Shipbuilding, none for GM Korea Company and W25.0 billion for Taeyoung E&C.

In the first half of 2025, we sold non-performing loans worth W187.6 billion to Hana F&I Co., Ltd.

------

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

***Loan Operations***

The following table sets out, by currency and category of loan, our total outstanding loans as of June 30, 2025:

**Loans<sup>(1)</sup>** 

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** |
|  | **(billions of Won)** | **(billions of Won)** |
|  Equipment Capital Loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic currency | W | 62792.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency |  | 11433.2 |
|  |  | 74225.4 |
|  Working Capital Loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic currency<sup>(2)</sup> |  | 70912.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency |  | 20202.7 |
|  |  | 91115.4 |
|  Other Loans<sup>(3)</sup> |  | 45548.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans | W | 210888.8 |

---

(1) Includes loans extended to affiliates.

(2) Includes loans on households.

(3) Includes inter-bank loans, private loans, off-shore loan receivables,
loans borrowed from overseas financial institutions, bills bought in foreign currencies, advance payments on acceptances and guarantees and other loans.

As of June 30, 2025, we had W210,888.8 billion in outstanding loans, which represents a 0.7% decrease from W212,382.5 billion of outstanding loans as of December 31, 2024.

*Maturities of Outstanding Loans* 

The following table categorizes our outstanding equipment capital and working capital loans by their remaining maturities:

**Outstanding Equipment Capital and Working Capital Loans by Remaining Maturities<sup>(1)</sup>** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of**<br>**June 30, 2025** | **As of**<br>**June 30, 2025** | **As % of**<br>**June 30, 2025**<br>**Total** |
|  | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** |
|  Loans with remaining maturities of one year or less | W | 73975.6 | 44.7% |
|  Loans with remaining maturities of more than one year |  | 91365.2 | 55.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | W | 165340.8 | 100.0% |

---

(1) Includes loans extended to affiliates.

------

##### [**Table of Contents**](#toc)
*Loans by Industrial Sector* 

The following table sets out the total amount of our outstanding equipment capital and working capital loans, categorized by industry sector as of June 30, 2025:

**Outstanding Equipment Capital and Working Capital Loans by Industry Sector<sup>(1)</sup>** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of**<br>**June 30, 2025** | **As of**<br>**June 30, 2025** | **As % of**<br>**June 30, 2025**<br>**Total** |
|  | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** |
|  Manufacturing | W | 77266.5 | 46.7% |
|  Finance and Insurance |  | 42992.1 | 26.0 |
|  Transportation |  | 8354.1 | 5.1 |
|  Electric, Gas and Water Supply Industry |  | 4877.2 | 2.9 |
|  Public Administration |  | 706.9 | 0.4 |
|  Others<sup>(2)</sup> |  | 31144.0 | 18.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | W | 165340.8 | 100.0% |
|  Percentage increase (decrease) from December 31, 2024 |  | (0.2)% |  |

---

(1) Includes loans extended to affiliates.

(2) Includes wholesale and retail trade, real estate and leasing, and construction.

Industrial Bank of Korea was our single largest borrower as of June 30, 2025, accounting for 3.9% of our outstanding equipment capital and working capital loans. As of June 30, 2025, our five largest borrowers and 20 largest borrowers accounted for 10.7% and 19.3%, respectively, of our outstanding equipment capital and working capital loans.

The following table breaks down the equipment capital and working capital loans to our 20 largest borrowers outstanding as of June 30, 2025 by industry sector:

**20 Largest Borrowers by Industry Sector** 

---

| | |
|:---|:---|
|  | **As % of<br>June 30, 2025<br>Total Outstanding Equipment<br>Capital and Working Capital<br>Loans to Our 20 Largest<br>Borrowers** |
|  Finance and Insurance | 54.7% |
|  Manufacturing | 38.4 |
|  Transportation | 3.9 |
|  Others<sup>(1)</sup> | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 100.0 |

---

(1) Includes wholesale and retail trade, real estate and leasing, and construction.

------

##### [**Table of Contents**](#toc)
*Loans by Categories* 

The following table sets out equipment capital and working capital loans by categories as of June 30, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Equipment**<br>**Capital Loans** | **Equipment**<br>**Capital Loans** | **Equipment**<br>**Capital Loans** | **Working**<br>**Capital Loans** | **Working**<br>**Capital Loans** | **Working**<br>**Capital Loans** |
|  | **As of<br>June 30,**<br>**2025** | **As of<br>June 30,**<br>**2025** | **%** | **As of<br>June 30,**<br>**2025** | **As of<br>June 30,**<br>**2025** | **%** |
|  | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** | **(billions of Won, except percentages)** |
|  Industrial fund loans | W | 57791.8 | 77.9% | W | 54989.2 | 60.4% |
|  On-lending loans |  | 1946.0 | 2.6 |  | 15228.2 | 16.7 |
|  Foreign currency loans |  | 6727.1 | 9.1 |  | 1488.1 | 1.6 |
|  Local currency loans denominated in foreign currencies |  | 0.6 | 0.0 |  | 16.5 | 0.0 |
|  Offshore loans in foreign currencies |  | 4646.4 | 6.2 |  | 17327.7 | 19.0 |
|  Government fund loans |  | 54.0 | 0.1 |  | 0.0 | 0.0 |
|  Overdraft |  | 0.0 | 0.0 |  | 80.8 | 0.1 |
|  Others<sup>(1)</sup> |  | 3059.5 | 4.1 |  | 1984.9 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | W | 74225.4 | 100.0% | W | 91115.4 | 100.0% |

---

(1) Includes loans on households and loans extended to affiliates.

***Guarantee Operations***

The following table shows our outstanding guarantees as of June 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** |
|  | **(billions of Won)** | **(billions of Won)** |
|  Acceptances | W | 136.2 |
|  Guarantees on local borrowings |  | 704.5 |
|  Guarantees on foreign borrowings |  | 11185.8 |
|  Letters of guarantee for importers |  | 87.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | W | 12113.5 |

---

***Investments***

Our equity investments increased to W53,118.1 billion as of June 30, 2025 from W51,083.5 billion as of December 31, 2024. As of June 30, 2025, the cost basis of our equity investments subject to restriction under the KDB Act and our Articles of Incorporation totaled W27,158.3 billion, equal to 43.1% of our equity investment ceiling.

------

##### [**Table of Contents**](#toc)
The following table sets out our equity investments by industry sector on a book value basis as of June 30, 2025:

**Equity Investments** 

---

| | | |
|:---|:---|:---|
|  | **Book Value as of<br>June 30, 2025** | **Book Value as of<br>June 30, 2025** |
|  | **(billions of Won)** | **(billions of Won)** |
|  Electric, Gas and Water Supply Industry | W | 16984.6 |
|  Finance and Insurance |  | 13399.9 |
|  Transportation and Communication |  | 8033.3 |
|  Real Estate Business |  | 0.0 |
|  Construction |  | 0.0 |
|  Manufacturing |  | 3409.1 |
|  Others |  | 11291.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | W | 53118.1 |

---

As of June 30, 2025, we held total equity investments, on a book value basis, of W2,804.4 billion in two of our five largest borrowers and W3,134.9 billion in three of our 20 largest borrowers.

When possible, we use the prevailing market price of a security to determine the value of our interest. However, if no readily ascertainable market value exists for our holdings, we record these investments at the cost of acquisition. With respect to our equity interests in enterprises in which we hold more than 15% of interest, we value these investments annually, with certain exceptions, on a net asset value basis when the investee company releases its financial statements. As of June 30, 2025, the aggregate value of our equity investments accounted for approximately 80.5% of their aggregate cost basis.

***Other Activities***

As of June 30, 2025, we held in trust cash and other assets totaling W32,574.3 billion, and we generated in the first half of 2025 trust fee income equaling W188.7 billion.

**Source of Funds** 

***Borrowings from the Government***

The following table sets out our Government borrowings as of June 30, 2025:

---

| | | |
|:---|:---|:---|
| **Type of Funds Borrowed** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **(billions of Won)** | **(billions of Won)** |
|  General purpose | W | 54.9 |
|  Special purpose |  | 4650.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | W | 4705.2 |

---

***Domestic and International Capital Markets***

The following table sets out the outstanding balance of our industrial finance bonds as of June 30, 2025:

---

| | | |
|:---|:---|:---|
| **Outstanding Balance** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **(billions of Won)** | **(billions of Won)** |
|  Denominated in Won | W | 115412.5 |
|  Denominated in other currencies |  | 50567.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | W | 165980.4 |

---

------

##### [**Table of Contents**](#toc)
As of June 30, 2025, the aggregate amount of our industrial finance bonds and guarantee obligations (including guarantee obligations relating to loans that had not been borrowed as of June 30, 2025) was W184,506.7 billion, equal to 19.5% of our authorized amount under the KDB Act, which was W945,783.9 billion.

***Foreign Currency Borrowings***

As of June 30, 2025, the outstanding amount of our foreign currency borrowings was US$17.7 billion. Our long-term and short-term foreign currency borrowings decreased to W24,783.7 billion as of June 30, 2025 from W27,999.4 billion as of December 31, 2024.

***Deposits***

As of June 30, 2025, demand deposits held by us totaled W2,340.3 billion and time and savings deposits held by us totaled W56,926.8 billion.

**Debt** 

***Debt Repayment Schedule***

The following table sets out our principal repayment schedule as of June 30, 2025:

**Debt Principal Repayment Schedule<sup>(1)</sup>** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** | **Maturing on or before December 31,** |
| <br>**Currency<sup>(2)(3)</sup>** | **2025** | **2025** | **2026** | **2026** | **2027** | **2027** | **2028** | **2028** | **Thereafter** | **Thereafter** |
|  | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** | **(billions of Won)** |
|  Won | W | 44481.2 | W | 19864.0 | W | 9692.8 | W | 5111.1 | W | 7999.4 |
|  Foreign |  | 18275.2 |  | 12284.7 |  | 7973.8 |  | 5333.9 |  | 8201.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Won Equivalent | W | 62756.4 | W | 32148.7 | W | 17666.7 | W | 10444.9 | W | 16201.2 |

---

(1) Excludes bonds sold under repurchase agreements and call money.

(2) Borrowings in foreign currencies have been translated into Won at the market average exchange rates on
June 30, 2025, as announced by the Seoul Money Brokerage Services Ltd.

(3) We categorize debt with respect to which we have entered into currency swap agreements by our repayment currency
under such agreements.

**Directors and Management; Employees** 

Currently, the members of our Board of Directors are:

---

| | | |
|:---|:---|:---|
| **Position** | **Name** | **Expiration of Term** |
|  Chief Executive Officer and Chairman of the Board of Directors | Sang Jin Park | September 9, 2028 |
|  Chief Operating Officer and Vice Chairman of the Board of Directors | Bock Kyu Kim | March 22, 2026 |
|  Auditor | Jae Shin Kim | August 25, 2027 |
|  Independent Non-executive Directors | Hee Rak Kim | January 28, 2026 |
|  | Sun Key You | January 28, 2026 |
|  | Seung Cheol Jeon | May 1, 2027 |
|  | Seonghoon Cho | May 1, 2027 |

---

------

##### [**Table of Contents**](#toc)
**Financial Statements and the Auditors** 

Our interim separate financial statements as of June 30, 2025 and for the six months ended June 30, 2024 and 2025 appearing in this prospectus supplement were prepared in conformity with K-IFRS, as summarized in Note 2 of the notes to our unaudited separate financial statements as of June 30, 2025 and for the six months ended June 30, 2024 and 2025 included in this prospectus supplement.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Interim Separate Statements of Financial Position** 

**June 30, 2025 (Unaudited) and December 31, 2024** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions of won)** | **Notes** | **June 30, 2025** | **June 30, 2025** | **December 31,<br>2024** |
|  **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | 341434447 | W | 12487958 | 12995521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL | 4434447 |  | 19780145 | 18418800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI | 537434447 |  | 29973585 | 32760193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 637434447 |  | 9715481 | 8936305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at FVTPL | 7434447 |  | 436988 | 419773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 8434447 |  | 207974823 | 209481353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 943444547 |  | 8357717 | 13915251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and associates | 1046 |  | 34680003 | 33263341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 1146 |  | 782763 | 794138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment property, net | 1246 |  | 63411 | 62573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 1346 |  | 65981 | 62171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit assets | 19 |  | 38252 | 30968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current tax assets |  |  | 16835 | 24196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 14434447 |  | 16495410 | 8056518 |
|  **Total assets** |  | W | 340869352 | 339221101 |
|  **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL | 15434447 | W | 2126367 | 2389246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 16434447 |  | 68544231 | 66100573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 17434447 |  | 29608382 | 32730518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 18434447 |  | 164199041 | 165102269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 943444547 |  | 8109807 | 14873939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions | 20 |  | 563189 | 814870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities | 35 |  | 4464711 | 4032721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current tax liabilities |  |  | 217225 | 268596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 21434447 |  | 18188470 | 9983473 |
|  **Total liabilities** |  |  | 296021423 | 296296205 |
|  **Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued capital | 122 |  | 26925259 | 26316559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus | 22 |  | 2454072 | 2457006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 22 |  | 634405 | 1236725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 22 |  | 14834193 | 12914606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Regulatory reserve for credit losses of W72,552 million as of June 30, 2025 and W77,581 million as of December 31, 2024, respectively) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Required provision for (reversal of) regulatory reserve for credit losses of W319,142 million as of June 30, 2025 and W(5029) million as of December 31, 2024, respectively) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Planned provision for (reversal of) regulatory reserve for credit losses of W319,142 million as of June 30, 2025 and W(5029) million as of December 31, 2024, respectively) |  |  |  |  |
|  **Total equity** |  |  | 44847929 | 42924896 |
|  **Total liabilities and equity** |  | W | 340869352 | 339221101 |

---

See accompanying notes to the interim separate financial statements.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Interim Separate Statements of Comprehensive Income** 

**Six-month periods ended June 30, 2025 and 2024 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
| <br>**(In millions of won, except earnings per share information)** |<br>**Notes** | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month**<br>**period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Interest income | 23 | W | 2731045 | 5582256 | 3086536 | 6125243 |
|  Interest expense | 23 |  | (2492271) | (5040393) | (2807449) | (5562489) |
|  **Net interest income** | 46 |  | 238774 | 541863 | 279087 | 562754 |
|  Net fees and commission income | 24 |  | 153563 | 262669 | 124101 | 233558 |
|  Dividend income | 25 |  | 204779 | 654456 | 182665 | 654453 |
|  Net gain on securities measured at FVTPL | 26 |  | 110678 | 358640 | 121888 | 246919 |
|  Net gain (loss) on financial liabilities measured at FVTPL | 27 |  | 40620 | (28452) | (34016) | 37535 |
|  Net gain on securities measured at FVOCI | 28 |  | 16869 | 26687 | 5023 | 6053 |
|  Net gain (loss) on derivatives | 29 |  | 422167 | 229343 | (241783) | (414435) |
|  Net gain (loss) on foreign currency transaction | 30 |  | (215203) | (6160) | 300638 | 571354 |
|  Other operating income (expense), net | 31 |  | 483339 | 368388 | (115619) | (228534) |
|  **Non-interest income, net** |  |  | 1216812 | 1865571 | 342897 | 1106903 |
|  **Reversal of credit losses** | 32 |  | (71422) | (71295) | (134559) | (378809) |
|  **General and administrative expenses** | 3346 |  | 176809 | 385405 | 180270 | 387853 |
|  **Operating income** | 46 |  | 1350199 | 2093324 | 576273 | 1660613 |
|  Reversal of impairment loss (impairment loss) on investments in subsidiaries and associates | 10 |  | (84428) | 487055 | 853847 | 374345 |
|  Other non-operating income | 34 |  | 7683 | 10690 | 276 | 1872 |
|  Other non-operating expense | 34 |  | (1526) | (9524) | (1155) | (4533) |
|  **Non-operating income (expense), net** |  |  | (78271) | 488221 | 852968 | 371684 |
|  **Profit before income taxes** |  |  | 1271928 | 2581545 | 1429241 | 2032297 |
|  **Income tax expense** | 35 |  | 381235 | 673140 | 348559 | 358481 |
|  **Profit for the period** | 22 |  | 890693 | 1908405 | 1080682 | 1673816 |
|  (Profit for the period adjusted for regulatory reserve for credit losses: W1,240,728 million and W1,589,263 million for the three-month and six-month periods ended June 30, 2025, respectively; W1,282,581 million and W1,579,838 million for the three-month and six-month periods ended June 30, 2024, respectively) |  |  |  |  |  |  |
|  **Other comprehensive income for the period, net of tax** | 22 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Items that are or may be reclassified subsequently to profit or loss:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on securities measured at FVOCI |  |  | 14176 | 40235 | 24021 | 54700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange differences on translation of foreign operations |  |  | (143564) | (171983) | 58612 | 134948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation loss on cash flow hedge |  |  | (160) | (769) | (332) | (1109) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain (loss) on hedges of net investments in foreign operations |  |  | 74806 | 77184 | (28808) | (67808) |
|  |  |  | (54742) | (55333) | 53493 | 120731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Items that will not be reclassified to profit or loss:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain (loss) on securities measured at FVOCI |  |  | 102135 | 215089 | 377163 | (15730) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value changes on financial liabilities designated at fair value due to credit risk |  |  | 4271 | 7812 | (11814) | (6038) |
|  |  |  | 106406 | 222901 | 365349 | (21768) |
|  |  |  | 51664 | 167568 | 418842 | 98963 |
|  **Total comprehensive income for the period** |  | W | 942357 | 2075973 | 1499524 | 1772779 |
|  **Earnings per share** |  |  |  |  |  |  |
|  Basic and diluted earnings per share (in won) | 36 | W | 167 | 360 | 208 | 335 |

---

See accompanying notes to the interim separate financial statements.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Interim Separate Statements of Changes in Equity** 

**Six-month periods ended June 30, 2025 and 2024 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(In millions of won)** | **Issued**<br>**capital** | **Issued**<br>**capital** | **Capital**<br>**surplus** | **Accumulated<br>other<br>comprehensive<br>income** | **Retained**<br>**earnings** | **Total**<br>**equity** |
|  **Balance at January 1, 2024** | W | 23926559 | 2468715 | 2158351 | 10876908 | 39430533 |
|  Profit for the period |  |  |  |  | 1673816 | 1673816 |
|  Net gain on securities measured at FVOCI |  |  |  | (249410) | 288380 | 38970 |
|  Exchange differences on translation of foreign operations |  |  |  | 134948 |  | 134948 |
|  Valuation loss on cash flow hedge |  |  |  | (1109) |  | (1109) |
|  Net loss on hedges of net investments in foreign operations |  |  |  | (67808) |  | (67808) |
|  Fair value changes on financial liabilities designated at fair value due to credit risk |  |  |  | (6038) |  | (6038) |
|  **Total comprehensive income (loss) for the period** |  |  |  | (189417) | 1962196 | 1772779 |
|  Dividends |  |  |  |  | (878125) | (878125) |
|  Paid in capital increase |  | 2205000 | (10817) |  |  | 2194183 |
|  **Transaction with owners** |  | 2205000 | (10817) |  | (878125) | 1316058 |
|  **Balance at June 30, 2024** | W | 26131559 | 2457898 | 1968934 | 11960979 | 42519370 |
|  **Balance at January 1, 2025** | W | 26316559 | 2457006 | 1236725 | 12914606 | 42924896 |
|  Profit for the period |  |  |  |  | 1908405 | 1908405 |
|  Net gain on securities measured at FVOCI |  |  |  | (514564) | 769888 | 255324 |
|  Exchange differences on translation of foreign operations |  |  |  | (171983) |  | (171983) |
|  Valuation loss on cash flow hedge |  |  |  | (769) |  | (769) |
|  Net loss on hedges of net investments in foreign operations |  |  |  | 77184 |  | 77184 |
|  Fair value changes on financial liabilities designated at fair value due to credit risk |  |  |  | 7812 |  | 7812 |
|  **Total comprehensive income (loss) for the period** |  |  |  | (602320) | 2678293 | 2075973 |
|  Dividends |  |  |  |  | (758706) | (758706) |
|  Paid in capital increase |  | 608700 | (2934) |  |  | 605766 |
|  **Transaction with owners** |  | 608700 | (2934) |  | (758706) | (152940) |
|  **Balance at June 30, 2025** | W | 26925259 | 2454072 | 634405 | 14834193 | 44847929 |

---

See accompanying notes to the interim separate financial statements.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Interim Separate Statements of Cash Flows** 

**Six-month periods ended June 30, 2025 and 2024 (Unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions of won)** | **Notes** | **2025** | **2025** | **2024** |
|  **Cash flows from operating activities** |  |  |  |  |
|  Profit for the period |  | W | 1908405 | 1673816 |
|  Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 35 |  | 673140 | 358481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 23 |  | (5582256) | (6125243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 23 |  | 5040393 | 5562489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 25 |  | (654456) | (654453) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on valuation of securities measured at FVTPL | 26 |  | (256159) | (212537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of securities measured at FVTPL |  |  | (39705) | (226) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on financial liabilities measured at FVTPL | 27 |  | 28452 | (37535) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on securities measured at FVOCI | 38 |  | (26687) | (6053) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss (reversal of impairment loss) on securities measured at amortized cost |  |  | 3018 | (239) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on loans measured at FVTPL | 31 |  | 8904 | 15671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on valuation of derivatives |  |  | (1296300) | 388658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss on fair value hedged items | 29 |  | 479898 | 145484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on foreign exchange translations | 30 |  | (1720) | (551517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on disposal of investments in subsidiaries and associates | 31 |  | (569773) | 7203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of impairment loss on investments in subsidiaries and associates |  |  | (487055) | (374345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (reversal) of loan loss allowance | 32 |  | 152394 | (69085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provision for other assets | 32 |  | (1154) | (2598) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provision for payment guarantees | 20 |  | (164661) | (202306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provision for unused commitments | 20 |  | (59640) | (62509) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (reversal) financial guarantee provision | 20 |  | 1766 | (42311) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provision for restoration | 20 |  | (637) | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit costs | 19 |  | 15723 | 13251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property and equipment | 11 |  | 35947 | 34967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of property and equipment | 34 |  | 622 | 754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of investment property | 12 |  | 874 | 877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 13 |  | 8460 | 27025 |
|  |  |  | (2690612) | (1786192) |
|  Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks |  |  | 214384 | (662009) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  |  | 1365806 | (2334974) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at FVTPL |  |  | (26119) | 33735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | 2656422 | (5104144) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial instruments |  |  | 193527 | 241939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  | (8743890) | 931842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL |  |  | (27126) | 100771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  | 2578216 | 2858975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities |  |  | (23007) | (10104) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  |  | 8264367 | 262106 |
|  |  |  | 6452580 | (3681863) |

---

*(Continued)* 

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Interim Separate Statements of Cash Flows, (Continued)** 

**Six-month periods ended June 30, 2025 and 2024 (Unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions of won)** | **Notes** | **2025** | **2025** | **2024** |
|  Income taxes paid |  |  | (406955) | (196875) |
|  Interest received |  |  | 5802066 | 5971524 |
|  Interest paid |  |  | (4935105) | (5327344) |
|  Dividends received |  |  | 647315 | 653016 |
|  **Net cash provided by (used in) operating activities** |  | W | 6777694 | (2693918) |
|  **Cash flows from investing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase of securities measured at FVTPL |  | W | (2425545) | (546505) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of securities measured at FVOCI |  |  | 6556036 | 4889098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of securities measured at FVOCI | 5 |  | (5536605) | (4637810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of securities measured at amortized cost |  |  | 2124498 | 2128648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of securities measured at amortized cost | 6 |  | (2952530) | (2346980) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of property and equipment |  |  | 1409 | 1239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and equipment | 11 |  | (8212) | (5795) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets | 13 |  | (12257) | (2951) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investments in subsidiaries and associates |  |  | 1272322 | 172242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of investments in subsidiaries and associates |  |  | (238006) | (504268) |
|  **Net cash provided by (used in) investing activities** |  |  | (1218890) | (853082) |
|  **Cash flows from financing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase of financial liabilities measured at FVTPL |  |  |  | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease of financial liabilities measured at FVTPL |  |  | (253592) | (99994) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from borrowings |  |  | 30405088 | 28884680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of borrowings |  |  | (33348038) | (24184849) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of debentures |  |  | 54857240 | 47118006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of debentures |  |  | (56133460) | (45626531) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in lease liabilities |  |  | (17546) | (14894) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends |  |  | (758706) | (878125) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in capital increase |  |  | 605766 | 194403 |
|  **Net cash provided by (used in) financing activities** |  |  | (4643248) | 5692696 |
|  **Effects from changes in foreign currency exchange rate for cash and cash equivalents held** |  |  | (388310) | 198088 |
|  **Net increase in cash and cash equivalents** |  |  | 527246 | 2343784 |
|  **Cash and cash equivalents at beginning of the period** |  |  | 13875013 | 11860577 |
|  **Cash and cash equivalents at end of the period** | 41 | W | 14402259 | 14204361 |

---

See accompanying notes to the interim separate financial statements.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**1. <u>Reporting Entity</u>** 

Korea Development Bank (the "Bank") was established on April 1, 1954, in accordance with *The Korea Development Bank Act* to finance and manage major industrial projects.

The Bank is engaged in the banking industry under *The Korea Development Bank Act* and other applicable statutes, and in the fiduciary in accordance with *the Financial Investment Services and Capital Markets Act*.

Korea Finance Corporation ("KoFC"), the former ultimate parent company, and KDB Financial Group Inc. ("KDBFG"), the former immediate parent company, were established by spin-offs of divisions of the Bank as of October 28, 2009. KoFC and KDBFG were merged into the Bank, effective as of December 31, 2014. Issued capital is W26,925,259 million with 5,385,051,768 shares of issued and outstanding as of June 30, 2025 and 100% of the Bank's shares are owned by the government of the Republic of Korea.

The Bank's head office is located in 14, Eunhaeng-ro (Yeouido-dong), Yeongdeungpo-gu, Seoul and its service network as of June 30, 2025 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Domestic** | **Domestic** | **Overseas** | **Overseas** | **Overseas** | |
|  | **Head Office** | **Branches** | **Branches** | **Subsidiaries** | **Representative<br>offices** |<br>**Total** |
|  KDB | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86 |

---

**2. <u>Basis of Preparation</u>** 

***(1) Application of accounting standards***

These condensed interim financial statements have been prepared in accordance with the Korean International Financial Reporting Standards ("K-IFRS") 1034 *Interim Financial Reporting* and provide less information as compared with its annual financial statements. The condensed interim financial statements have been prepared in accordance with K-IFRS effective as of June 30, 2025 and the significant accounting policies applied in the preparation of these condensed interim financial statements have been consistently applied to all periods presented unless otherwise specified.

***(2) Changes and disclosures of accounting policies***

&nbsp;&nbsp;&nbsp;&nbsp;***(i) New and amended standards adopted***

The Bank newly applied the following amended and enacted standards for the annual period beginning on January 1, 2025. The nature and the impact of each new standard or amendment are described below:

*Amendment of Korean IFRS No.1021 "The Effects of Changes in Foreign Exchange Rates" and Korean IFRS No.1101 "First-time Adoption of International Financial Reporting Standards"—Lack of exchangeability* 

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

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**2. <u>Basis of Preparation, Continued</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;***(ii) New standards and interpretations issued but not effective***

The following new standards, interpretations and amendments to existing standards have been issued but not effective for annual periods beginning after January 1, 2025, and the Bank has not early adopted them. The nature and the impact of each new standard, amendment and enactments are described below:

*Amendment of Korean IFRS No.1109 "Financial Instruments" and No.1107 "Financial Instruments"* 

The amendments respond to recent questions arising in practice. These amendments will be applied to the financial statements for the accounting year beginning on or after January 1, 2026. These amendments do not have a significant impact on the financial statements.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• add new disclosures for certain instruments with contractual terms that can change cash flows; and

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

*Korean IFRS Accounting Standards Annual Improvements Volume 11* 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1101 "First-time adoption of International Financial Reporting Standards": Hedge accounting by a first-time adopter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1107 "Financial Instruments: Disclosures": Gain or loss on derecognition, Application guidance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1109 "Financial Instruments": Derecognition of lease liabilities, Definition of transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1110 "Consolidated Financial Statements": Determination of a 'de facto agent'

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1007 "Statement of Cash Flows": Cost method

***(3) Basis of measurement***

The financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Derivative financial instruments measured at fair value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial instruments measured at fair value through profit or loss

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial instruments measured at fair value through other comprehensive income

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**2. <u>Basis of Preparation, Continued</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fair value hedged financial instruments with changes in fair value, due to hedged risks, recognized in profit or loss

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Liabilities for defined benefit plans, which are recognized as net of the total present value of defined benefit obligations less the fair value of plan assets.

***(4) Functional and presentation currency***

These financial statements are presented in Korean won ("W"), which is the Bank's functional currency and the currency of the primary economic environment in which the Bank operates.

***(5) Use of estimates and judgments***

The preparation of the financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Management's estimates of outcomes may differ from actual outcomes if management's estimates and assumptions based on management's best judgment at the reporting date are different from the actual environment.

Estimates and assumptions are continually evaluated and any change in an accounting estimate is recognized prospectively by including it in profit or loss in the period of the change, if the change affects that period only.

Uncertainties in estimates and assumptions with significant risks used in the preparation of these condensed interim separate financial statements are the same as 2024 financial statements.

**3. <u>Cash and Due from Banks</u>** 

(1) Cash and due from banks as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Cash | W | 67780 | 67357 |
|  Due from banks in Korean won: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from Bank of Korea |  | 2633898 | 1236493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other due from banks in Korean won |  | 65224 | 316521 |
|  |  | 2699122 | 1553014 |
|  Due from banks in foreign currencies / off-shores |  | 9721056 | 11375150 |
|  | W | 12487958 | 12995521 |

---

(2) Restricted due from banks as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  Reserve deposit | W | 3837446 |  | 2664190 |
|  Others |  | 405426 |  | 380971 |
|  | W | 4242872 |  | 3045161 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**4. <u>Securities Measured at FVTPL</u>** 

Details of securities measured at fair value through profit or loss as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Securities denominated in Korean won: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | W | 2667294 | 2383651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity investments |  | 1520941 | 1345253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates |  | 11208977 | 10697146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds |  | 3217493 | 2804662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds |  | 290994 | 230200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 81108 | 90721 |
|  |  | 18986807 | 17551633 |
|  Securities denominated in foreign currencies/off-shores: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks |  | 31776 | 30688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity investments |  | 226363 | 217416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates |  | 535199 | 551952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  |  | 67111 |
|  |  | 793338 | 867167 |
|  | W | 19780145 | 18418800 |

---

**5. <u>Securities Measured at FVOCI</u>** 

(1) Details of securities measured at FVOCI as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Securities denominated in Korean won: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks and equity investments | W | 13991637 | 13841932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds |  | 731876 | 611775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds |  | 1592122 | 1820344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 1099573 | 2265042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 223567 | 1504996 |
|  |  | 17638775 | 20044089 |
|  Securities denominated in foreign currencies/off-shores: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 99 | 1214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 12193998 | 12674481 |
|  |  | 12194097 | 12675695 |
|  Loaned securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 140713 | 40409 |
|  | W | 29973585 | 32760193 |

---

Equity instruments that are acquired due to debt-to-equity swap, investment in kind and investment in ventures and small and medium-sized enterprises are designated as measured at FVOCI. The realized pre-tax income and loss on disposal of equity securities for the six-month periods ended June 30, 2025 and 2024 and W1,046,043 million of gain and W391,821 million of gain, respectively, which are directly recognized in retained earnings.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**5. <u>Securities Measured at FVOCI, Continued</u>** 

(2) Changes in securities measured at FVOCI for the six-month periods ended
June 30, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  Beginning balance | W | 32760193 | 33888064 |
|  Acquisition |  | 5536605 | 6637590 |
|  Disposal |  | (5528948) | (4483379) |
|  Change due to amortization |  | 5344 | 12943 |
|  Change in fair value |  | (535995) | (398894) |
|  Reclassification |  | (1399680) | (544800) |
|  Foreign exchange differences |  | (863966) | 840590 |
|  Others |  | 32 | 37302 |
|  Ending balance | W | 29973585 | 35989416 |

---

(3) Securities measured at FVOCI with disposal restrictions in securities measured at FVOCI as of June 30,
2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| <br>**Company** | **Number of<br>shares** | **Number of<br>shares** | **Carrying<br>amount** | **Carrying<br>amount** | **Restricted period** |
|  UAMCO., Ltd. |  | 113050 | W | 223721 | Undecided |
|  Aero Space Technology Of Korea Inc. |  | 2532000 |  | 1443 | Until August 22, 2025 |
|  Others |  | 237102 |  | 4766 | Undecided, etc. |
|  |  | 2882152 | W | 229930 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| <br>**Company** | **Number of<br>shares** | **Carrying<br>amount** | **Carrying<br>amount** | **Restricted period** |
|  UAMCO., Ltd. | 113050 | W | 208996 | Undecided |
|  Aero Space Technology Of Korea Inc. | 27912000 |  | 14068 | Until April 8, 2025 |
|  Onconic Therapeutics Inc. | 702850 |  | 9999 | For one month<br> from the listing date |
|  3billion Inc. | 234330 |  | 8768 | For two month<br> from the listing date |
|  3ALogics. Inc. | 889184 |  | 8718 | For one to two month<br> from the listing date |
|  Knowmerce Corp. | 335940 |  | 7830 | For two to three month<br> from the listing date |
|  ISTE Co.,Ltd. | 761904 |  | 6248 | For one month<br> from the listing date |
|  Others | 2749759 |  | 3705 | Undecided, etc. |
|  | 33699017 | W | 268332 |  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**5. <u>Securities Measured at FVOCI, Continued</u>** 

(4) Changes in the loss allowance in relation to securities measured at FVOCI for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Lifetime expected credit loss** | **Lifetime expected credit loss** | **Lifetime expected credit loss** | **Lifetime expected credit loss** | **Lifetime expected credit loss** |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** | **Total** |
|  Beginning balance | W | 18342 | 1799 | 75472 | 95613 |
|  Transfer to 12-month expected credit loss |  |  |  |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (1543) | 1543 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  |  |  |  |  |
|  Provision for (reversal of) loss allowance |  | (2739) | (269) | 1278 | (1730) |
|  Write-offs |  |  |  | (50000) | (50000) |
|  Disposal |  | (2039) |  |  | (2039) |
|  Foreign currency translation and others |  | 1753 |  | 167 | 1920 |
|  Others |  | 1277 | (782) | (2978) | (2483) |
|  Ending balance | W | 15051 | 2291 | 23939 | 41281 |
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Lifetime expected credit loss** | **Lifetime expected credit loss** | **Lifetime expected credit loss** | **Lifetime expected credit loss** | **Lifetime expected credit loss** |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** | **Total** |
|  Beginning balance | W | 16186 | 1173 | 73063 | 90422 |
|  Transfer to 12-month expected credit loss |  | 32 | (32) |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (57) | 57 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  | (66) | 66 |  |  |
|  Provision for (reversal of) loss allowance |  | 3277 | (193) | 119 | 3203 |
|  Disposal |  | (347) |  |  | (347) |
|  Foreign currency translation |  | 480 | 2 | 602 | 1084 |
|  Others |  | 475 | (388) | 586 | 673 |
|  Ending balance | W | 19980 | 685 | 74370 | 95035 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**6. <u>Securities Measured at Amortized Cost</u>** 

(1) Securities measured at amortized cost as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Amortized cost<br>(Carrying amounts)** | **Amortized cost<br>(Carrying amounts)** | **Fair value** |
|  Securities denominated in Korean won: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | W | 3243377 | 3243377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds |  | 2286890 | 2286326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 3519152 | 3506983 |
|  |  | 9049419 | 9036686 |
|  Securities denominated in foreign currencies: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 678795 | 678795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: loss allowance |  | (12733) |  |
|  | W | 9715481 | 9715481 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized cost<br>(Carrying amounts)** | **Amortized cost<br>(Carrying amounts)** | **Fair value** |
|  Securities denominated in Korean won: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | W | 3492235 | 3492235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds |  | 2015083 | 2014617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 2849742 | 2840493 |
|  |  | 8357060 | 8347345 |
|  Securities denominated in foreign currencies: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 588960 | 588960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: loss allowance |  | (9715) |  |
|  | W | 8936305 | 8936305 |

---

(2) Changes in securities measured at amortized cost for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  Beginning balance | W | 8936305 | 8583188 |
|  Acquisition |  | 2952530 | 2346980 |
|  Redemption |  | (2124498) | (2128648) |
|  Change due to amortization |  | 140 | 13464 |
|  Impairment loss |  | (3018) |  |
|  Reversal of impairment losses |  |  | 239 |
|  Foreign currency translation |  | (45978) | 12309 |
|  Ending balance | W | 9715481 | 8827532 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**7. <u>Loans Measured at FVTPL</u>** 

(1) Loans measured at FVTPL as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized cost** | **Amortized cost** | **Fair value**<br>**(Carrying amounts)** | **Amortized cost** | **Fair value**<br>**(Carrying amounts)** |
|  Loans in Korean won: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Privately placed corporate bonds | W | 399750 | 436988 | 378250 | 419773 |
|  Loans in foreign currencies: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Privately placed corporate bonds |  | 3137 |  | 3400 |  |
|  | W | 402887 | 436988 | 381650 | 419773 |

---

(2) Gains (losses) related to loans measured at FVTPL for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Transaction gains (losses) on loans measured at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction gains | W | 503 | 503 | 3282 | 3700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction losses |  | (396) | (884) | (1417) | (1417) |
|  |  | 107 | (381) | 1865 | 2283 |
|  Valuation gains (losses) on loans measured at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation gains |  | 264 | 4602 | 388 | 2416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation losses |  | 2973 | (13506) | 5834 | (18087) |
|  |  | 3237 | (8904) | 6222 | (15671) |
|  | W | 3344 | (9285) | 8087 | (13388) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**8. <u>Loans Measured at Amortized Cost</u>** 

(1) Loans measured at amortized cost and loss allowance for loan as of June 30, 2025 and December 31,
2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized cost**<br>**(Carrying<br>amounts)** | **Amortized cost**<br>**(Carrying<br>amounts)** | **Fair value** | **Amortized cost**<br>**(Carrying<br>amounts)** | **Fair value** |
|  Loans in Korean won: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans for working capital | W | 70808813 | 69991552 | 68851877 | 68093728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans for facility development |  | 62792200 | 61885349 | 62063432 | 61108673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans for households |  | 103854 | 103485 | 117607 | 116709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter-bank loans |  | 2998928 | 2806408 | 2877321 | 2703919 |
|  |  | 136703795 | 134786794 | 133910237 | 132023029 |
|  Loans in foreign currencies: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 32174972 | 32199415 | 35155384 | 35092441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter-bank loans |  | 6908342 | 6882157 | 7052491 | 7029441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Off-shore loans |  | 23619066 | 23339674 | 23728052 | 23543740 |
|  |  | 62702380 | 62421246 | 65935927 | 65665622 |
|  Other loans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bills bought in foreign currency |  | 2589511 | 2534568 | 2755722 | 2723534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advances for customers on acceptances and guarantees |  | 27858 | 1768 | 16592 | 2278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Privately placed corporate bonds |  | 1404671 | 1394452 | 1758612 | 1745315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 7460591 | 7305817 | 8005365 | 7827441 |
|  |  | 11482631 | 11236605 | 12536291 | 12298568 |
|  |  | 210888806 | 208444645 | 212382455 | 209987219 |
|  Less: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss allowance for loan |  | (2943410) |  | (2926042) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount |  | (9694) |  | (9728) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination costs and fees |  | 39121 |  | 34668 |  |
|  | W | 207974823 |  | 209481353 |  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**8. <u>Loans Measured at Amortized Cost, Continued</u>** 

(2) Changes in loss allowance for loan for the six-month periods ended
June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** | **Total** |
|  Beginning balance | W | 733919 | 1265026 | 927097 | 2926042 |
|  Transfer to 12-month expected credit loss |  | 11295 | (11295) |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (18528) | 23806 | (5278) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  | (23662) | (5278) | 28940 |  |
|  Provision for (reversal of) loss allowance |  | (96692) | 78797 | 170289 | 152394 |
|  Recovery |  |  |  | 20235 | 20235 |
|  Foreign currency translation |  | 7673 | 6579 | 10277 | 24529 |
|  Other |  | (17451) | (31883) | (26382) | (75716) |
|  Ending balance | W | 596554 | 1325752 | 1021104 | 2943410 |
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** | **Total** |
|  Beginning balance | W | 587840 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1423097 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1089041 | 3099978 |
|  Transfer to 12-month expected credit loss |  | 1876 | (1876) |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (167524) | 168129 | (605) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  | (171779) | (24523) | 196302 |  |
|  Provision for (reversal of) loss allowance |  | 345512 | (244424) | (170173) | (69085) |
|  Write-offs |  |  |  | (363) | (363) |
|  Recovery |  |  |  | 39095 | 39095 |
|  Disposal |  |  |  | (270331) | (270331) |
|  Debt-to-equity swap |  |  |  | (44302) | (44302) |
|  Foreign currency translation |  | 12696 | 14195 | 6030 | 32921 |
|  Other |  | 2313 | 13740 | 3783 | 19836 |
|  Ending balance | W | 610934 | 1348338 | 848477 | 2807749 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**8. <u>Loans Measured at Amortized Cost, Continued</u>** 

(3) Gains (losses) related to loans measured at amortized cost for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Reversal of (provision for) loan allowance for loan | W | (149755) | (152394) | 75908 | 69085 |
|  Gains (loss) on disposal of loan |  | &nbsp;&nbsp;&nbsp;&nbsp;4123 | (1896) | (34848) | (27277) |
|  | W | (145632) | (154290) | 41060 | 41808 |

---

**9. <u>Derivative Financial Instruments</u>** 

The Bank's derivative financial instruments consist of trading derivatives and hedging derivatives, depending on the nature of each transaction. The Bank enters into hedging derivative transactions mainly for the purpose of hedging risk related to changes in fair values of the underlying assets and liabilities and future cash flows.

The Bank enters into trading derivative transactions such as futures, forwards, swaps and options for arbitrage transactions by speculating on the future value of the underlying asset. Derivatives held-for trading transactions include contracts with the Bank's clients and its liquidation position.

For the purpose of hedging the exposure to the variability of fair values and cash flows of funds in Korean won by changes in interest rate, the Bank mainly uses interest swaps or currency swaps. The main counterparties are foreign financial institutions and local banks. In addition, to hedge the exposure to the variability of fair values of bonds in foreign currencies by changes in interest rate or foreign exchange rate, the Bank mainly uses interest swaps or currency swaps.

The Bank applies net investment hedge accounting by designating non-derivative financial instruments as hedging instruments and any gain or loss on the hedging instruments relating to the effective portion of the hedge is recognised in other comprehensive income and accumulated in the foreign currency translation reserve.

Gains and losses on the hedging instrument accumulated in the foreign currency translation reserve are reclassified to profit or loss on the disposal or partial disposal of the foreign operation.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**9. <u>Derivative Financial Instruments, Continued</u>** 

(1) The notional amounts outstanding for derivative contracts and the carrying amounts of the derivative financial
instruments as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | | | **Carrying amounts** | **Carrying amounts** |
|  | **Notional amounts** | **Notional amounts** | **Asset** | **Liability** |
|  Trading purpose derivative financial instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | W | 692900 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards |  | 1440000 | 4868 | 108701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 391064417 | 1012131 | 1419138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 24189548 | 233957 | 508147 |
|  |  | 417386865 | 1250956 | 2035986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards |  | 91467823 | 1808952 | 1321271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 157880379 | 4430639 | 4248040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 1308386 | 5413 | 9146 |
|  |  | 250656588 | 6245004 | 5578457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures |  | 3119 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 11540 | 178 | 382 |
|  |  | 14659 | 178 | 382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 199428 | 3460 | 3444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance and other adjustments |  |  | (3108) | (1655) |
|  |  | 668257540 | 7496490 | 7616614 |
|  Hedging purpose derivative financial instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 41870753 | 143849 | 141844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 13899696 | 717615 | 354076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance and other adjustments |  |  | (237) | (2727) |
|  |  | 55770449 | 861227 | 493193 |
|  | W | 724027989 | 8357717 | 8109807 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**9. <u>Derivative Financial Instruments, Continued</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | | | **Carrying amounts** | **Carrying amounts** |
|  | **Notional amounts** | **Notional amounts** | **Asset** | **Liability** |
|  Trading purpose derivative financial instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | W | 389316 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards |  | 1120000 | 694 | 101248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 388226698 | 1167657 | 1815342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 23679084 | 279721 | 543144 |
|  |  | 413415098 | 1448072 | 2459734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards |  | 92754383 | 4032920 | 1953791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 165177681 | 8147283 | 9318293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 512687 | 8736 | 3184 |
|  |  | 258444751 | 12188939 | 11275268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options |  | 3132 | 259 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance and other adjustments |  |  | (12825) | (1804) |
|  |  | 671862981 | 13624445 | 13733198 |
|  Hedging purpose derivative financial instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate (\*) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 48180348 | 130264 | 235972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 11609881 | 160577 | 907743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance and other adjustments |  |  | (35) | (2974) |
|  |  | 59790229 | 290806 | 1140741 |
|  | W | 731653210 | 13915251 | 14873939 |

---

(\*) The expected maximum period for which derivative contracts, applied the cash flow hedge accounting, are exposed to risk of cash flow fluctuation is until April 29, 2025.

(2) The notional amounts outstanding for the hedging instruments by period as of June 30, 2025 and
December 31, 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Within 1<br>month** | **Within 1<br>month** | **1~3**<br>**months** | **3~12**<br>**months** | **1~5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  Interest rate: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notional amounts outstanding | W | 228960 | 2538807 | 8377776 | 23140041 | 7585169 | 41870753 |
|  Currency: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notional amounts outstanding |  | 97395 | 166435 | 3482228 | 8757564 | 1396074 | 13899696 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**9. <u>Derivative Financial Instruments, Continued</u>** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Within 1<br>month** | **Within 1<br>month** | **1~3**<br>**months** | **3~12**<br>**months** | **1~5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  Interest rate: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notional amounts outstanding | W | 194040 | 4804351 | 9943343 | 24808058 | 8430556 | 48180348 |
|  Currency: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notional amounts outstanding | W | 532518 | 600953 | 1277080 | 7771329 | 1428001 | 11609881 |

---

(3) Details of the balances of the hedging instruments by risk type as of June 30, 2025 and December 31,
2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | | | **Balances** | **Balances** | **Changes<br>in fair value<br>for the period** |
|  | **Notional amounts** | **Notional amounts** | **Assets** | **Liabilities** | **Changes<br>in fair value<br>for the period** |
|  Fair value hedge accounting: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | W | 41870753 | 143849 | 141844 | 429356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency risk: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 13899696 | 717615 | 354076 | 944907 |
|  | W | 55770449 | 861464 | 495920 | 1374263 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | | | **Balances** | **Balances** | **Changes<br>in fair value<br>for the period** |
|  | **Notional amounts** | **Notional amounts** | **Assets** | **Liabilities** | **Changes<br>in fair value<br>for the period** |
|  Cash flow hedge accounting: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | W | 58800 |  |  | (2044) |
|  Fair value hedge accounting: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 48121548 | 130264 | 235972 | 256255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency risk: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 11609881 | 160577 | 907743 | (825515) |
|  |  | 59731429 | 290841 | 1143715 | (569260) |
|  | W | 59790229 | 290841 | 1143715 | (571304) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**9. <u>Derivative Financial Instruments, Continued</u>** 

(4) Details of the balances of the hedged items by risk type as of June 30, 2025 and December 31, 2024
are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Carrying amounts** | **Carrying amounts** | **Carrying amounts** | **Change in value of**<br>**the hedged item** | **Change in value of**<br>**the hedged item** | **Changes**<br>**in fair value<br>for the<br>period** | **Cash flow<br>hedge<br>reserve** |
|  | **Assets** | **Assets** | **Liabilities** | **Assets** | **Liabilities** | **Changes**<br>**in fair value<br>for the<br>period** | **Cash flow<br>hedge<br>reserve** |
|  Fair value hedge accounting: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI | W | 6402271 |  | 106712 |  | 108807 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt debentures |  |  | 34993262 |  | (282345) | (489613) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities (Deposits, etc.) |  |  | 116182 |  | (18995) | (3481) |  |
|  |  | 6402271 | 35109444 | 106712 | (301340) | (384287) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency risk: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt debentures |  |  | 13761226 |  | 352043 | (938227) |  |
|  | W | 6402271 | 48870670 | 106712 | 50703 | (1322514) |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying amounts** | **Carrying amounts** | **Carrying amounts** | **Change in value of**<br>**the hedged item** | **Change in value of**<br>**the hedged item** | **Changes**<br>**in fair value<br>for 2024** | **Cash flow<br>hedge<br>reserve** |
|  | **Assets** | **Assets** | **Liabilities** | **Assets** | **Liabilities** | **Changes**<br>**in fair value<br>for 2024** | **Cash flow<br>hedge<br>reserve** |
|  Cash flow hedge accounting: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt debentures | W |  | 58800 |  |  |  | 1045 |
|  Fair value hedge accounting: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 6638016 |  | 8661 |  | (6819) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt debentures |  |  | 40711955 |  | (868944) | (265708) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities (Deposits, etc.) |  |  | 122084 |  | (24359) | 3247 |  |
|  |  | 6638016 | 40834039 | 8661 | (893303) | (269280) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency risk: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt debentures |  |  | 11376831 |  | 527750 | 828917 |  |
|  |  | 6638016 | 52210870 | 8661 | (365553) | 559637 |  |
|  | W | 6638016 | 52269670 | 8661 | (365553) | 559637 | 1045 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**9. <u>Derivative Financial Instruments, Continued</u>** 

(5) Details of hedge ineffectiveness recognized in profit or loss from derivatives for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  Interest rate risk | W | 45069 | (4040) |
|  Currency risk |  | 6680 | 447 |
|  | W | 51749 | (3593) |

---

(6) The summary of the amounts that have affected the statement of comprehensive income as a result of applying
cash flow hedge accounting for the six-month periods ended June 30, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | **Change in the value of<br>the hedging instrument<br>recognized in other<br>comprehensive income** | **Hedge ineffectiveness<br>recognized in profit or<br>loss (\*)** | **Amount reclassified from<br>other comprehensive<br>income to profit or<br>loss (\*)** |
|  Interest rate risk | W |  | (1045) |

---

(\*) Recognized in gains or losses related to hedging purpose derivatives.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  | **Change in the value of**<br>**the hedging instrument<br>recognized in other<br>comprehensive income** |  | **Hedge ineffectiveness<br>recognized in profit<br>or loss (\*)** | **Amount reclassified from<br>other comprehensive<br>income to profit or**<br>**loss (\*)** |
|  Interest rate risk | W | (670) | 40 | (837) |

---

(\*) Recognized in gains or losses related to hedging purpose derivatives.

(7) Details of net investments in foreign operations as of June 30, 2025 and December 31, 2024 are as
follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Changes in fair value** | **Changes in fair value** | **Other comprehensive income for hedges of<br>net investments in foreign operations** |
|  Currency (foreign exchange risk) | W | (104870) | (179126) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Changes in fair value** | **Changes in fair value** | **Other comprehensive income for hedges of<br>net investments in foreign operations** |
|  Currency (foreign exchange risk) | W | 166721 | (283996) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**9. <u>Derivative Financial Instruments, Continued</u>** 

(8) Details of hedging instruments in hedge of net investments in foreign operations as of June 30, 2025 and
December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Carrying amount** | **Carrying amount** | **Changes in fair<br>value for the<br>period** | **Change in the value of<br>the hedging instrument<br>recognized in other<br>comprehensive income<br>for the period** | **Hedge<br>ineffectiveness<br>recognized in<br>profit or loss for<br>the period** |
|  Debentures in foreign currencies | W | 1236404 | 104870 | 104870 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying amount** | **Carrying amount** | **Changes in fair<br>value for the<br>year** | **Change in the value of<br>the hedging instrument<br>recognized in other<br>comprehensive income<br>for the year** | **Hedge<br>ineffectiveness<br>recognized in<br>profit or loss for<br>the year** |
|  Debentures in foreign currencies | W | 1324680 | (166721) | (166721) |  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**10. <u>Investments in Subsidiaries and Associates</u>** 

(1) Investments in subsidiaries and associates as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Subsidiaries: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Asia (HK) Ltd. | W | 332907 | 332907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Bank Europe Ltd. (\*1) |  | 144214 | 145747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Ireland Ltd. |  | 62389 | 62389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Bank Uzbekistan Ltd. |  | 47937 | 47937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banco KDB Do Brazil S.A. (\*2) |  | 50378 | 52622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT KDB Tifa Finance Tbk |  | 77767 | 85288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Silicon Valley LLC |  | 118615 | 118615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB OCCASIO II, L.P. |  | 142035 | 147565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Synergy, L.P. |  | 126592 | 126592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Investment Co., Ltd. |  | 70000 | 70000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Biz Co., Ltd. |  | 1500 | 1500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Life Insurance Co., Ltd. (\*3) |  | 90120 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Capital Corporation |  | 597290 | 597290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea BTL Financing 1 |  | 93248 | 100623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Railroad Financing 1 |  | 64147 | 67098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Education Financing |  | 28120 | 30685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Infrastructure Investment Asset Management Co., Ltd. |  | 16843 | 16843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Consus Value PEF (\*3) (\*4) |  |  | 317360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB-IAP OBOR PEF (\*5) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Green Initiative 2nd Private Equity Fund |  | 217577 | 217577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDBC Co-investment Private Equity Fund |  | 33471 | 33914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Asia PEF |  | 88066 | 88066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Small Medium Mezzanine PEF |  | 33350 | 33350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Liquidity Assistance Agency Co., Ltd. |  | 1000000 | 1000000 |
|  |  | 3436566 | 3693968 |
|  Associates**:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Electric Power Co., Ltd. |  | 16921067 | 16921067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Tourism Organization |  | 337286 | 337286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Infrastructure Fund II |  | 211781 | 212074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Ocean Business Corporation |  | 631777 | 631777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Real Estate Board |  | 58492 | 58492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanwha Ocean Co., Ltd. (\*6) |  | 1756189 | 2227877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HMM Co., Ltd. (\*7) |  | 7330015 | 5240667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GM Korea Company (\*8) |  | 483542 | 474733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HANJIN KAL |  | 500000 | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean Air Lines Co., Ltd. |  | 330477 | 330477 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TAEYOUNG ENGINEERING & CONSTRUCTION |  | 54719 | 54719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (\*9) |  | 2628092 | 2580204 |
|  |  | 31243437 | 29569373 |
|  | W | 34680003 | 33263341 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**10. <u>Investments in Subsidiaries and Associates, Continued</u>** 

---

| | |
|:---|:---|
| (\*1) | Due to a decrease in value in use resulting from the decline of expected cash flows from the shares held by the Bank , the Bank recognized impairment losses amounting to W1,533 million for the period ended June 30, 2025. Additionally, the Bank recognized reversal of impairment losses amounting to W19,145 million for the year ended December 31, 2024.  |

---

---

| | |
|:---|:---|
| (\*2) | Due to a decrease in value in use resulting from the decline of expected cash flows from the shares held by the Bank , the Bank recognized impairment losses amounting to W2,244 million for the period ended June 30, 2025. Additionally, the Bank recognized reversal of impairment losses amounting to W1,347 million for the year ended December 31, 2024.  |

---

---

| | |
|:---|:---|
| (\*3) | For the period ended June 30, 2025, KDB Life Insurance Co., Ltd., formerly a sub-subsidiary of KDB Konsus Value PEF, was reclassified as a directly held subsidiary of the Bank. Following this reclassification, an impairment loss of W229,008 million was recognized for the period ended June 30, 2025 due to a decrease in value in use based on the assessment of operating cash flows.  |

---

---

| | |
|:---|:---|
| (\*4) | The Bank recognized impairment losses amounting to W11,692 million for the period ended June 30, 2025 and W161,231 million for the year ended December 31, 2024, respectively, due to a decrease in value in use resulting from the decline of expected cash flows from the shares held by the Bank.  |

---

(\*5) The decrease in the net asset value due to the decrease in the fair value of assets held prior to the previous year was considered as objective evidence of impairment and an impairment loss was recognized, resulting in a carrying value of "0".

---

| | |
|:---|:---|
| (\*6) | Due to the increase in the recoverable amount resulting from the rise in the fair value of the held shares, the Bank recognized a reversal of impairment loss of W16,787 million for the period ended June 30, 2025 and W731,136 million for the year ended December 31, 2024.  |

---

---

| | |
|:---|:---|
| (\*7) | The Bank recognized a reversal of impairment loss amounting to W689,668 million for the period ended June 30, 2025 due to the decrease in value in use based on the operating cash flow. Additionally, The Bank recognized impairment losses amounting to W388,273 million for the year ended December 31, 2024.  |

---

---

| | |
|:---|:---|
| (\*8) | The Bank recognized a reversal of impairment loss amounting to W8,808 million for the period ended June 30, 2025 and W18,830 million for the year ended December 31, 2024, respectively, due to the increase in value in use based on the operating cash flow.  |

---

---

| | |
|:---|:---|
| (\*9) | The Bank recognized a reversal of impairment losses amounting to W16,270 million for HYUNDAI START-UP VENTURE FUND I and 10 other companies for the year ended June 30, 2025. The Bank recognized impairment losses amounting to W60,067 million for AJU PRIVATE EQUITY FUND NO.2 and 14 other companies for the year ended December 31, 2024.  |

---

(2) The market value of marketable investments in subsidiaries and associates as of June 30, 2025 and
December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Market value** | **Market value** | **Market value** | **Carrying amounts** | **Carrying amounts** |
|  | **June 30,<br>2025** | **June 30,<br>2025** | **December 31,<br>2024** | **June 30,<br>2025** | **December 31,<br>2024** |
|  Korea Electric Power Co., Ltd. | W | 8301546 | 4235267 | 16921067 | 16921067 |
|  HMM Co., Ltd. |  | 8306984 | 5248540 | 7330015 | 5240667 |
|  HANJIN KAL |  | 834746 | 532486 | 500000 | 500000 |
|  Korean Airlines Co., Ltd. |  | 280294 | 276622 | 330477 | 330477 |
|  Hanwha Ocean Co., Ltd. |  | 3711014 | 2231222 | 1756189 | 2227877 |
|  TAEYOUNG ENGINEERING & CONSTRUCTION |  | 99348 | 82420 | 54719 | 54719 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**10. <u>Investments in Subsidiaries and Associates, Continued</u>** 

(3) The key financial information of subsidiaries and associates invested and ownership ratios as of June 30,
2025 and December 31, 2024 are as follows:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Country** | **Fiscal<br>year end** | **Industry** | **Assets** | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Net<br>income<br>(loss)** | **Total<br>compre-<br>hensive<br>income<br>(loss)** | **Owner-<br>ship<br>(%)** |
|  Subsidiaries: |  |  |  |  |  |  |  |  |  |  |  |
|  KDB Asia (HK) Ltd. | Hong Kong | December | Finance | W | 4954857 | 4084729 | 870128 | 271316 | 36121 | (33948) | 100.00 |
|  KDB Bank Europe Ltd. | Hungary | December | Finance |  | 1679260 | 1517148 | 162112 | 50592 | 3669 | 13573 | 100.00 |
|  KDB Ireland Ltd. | Ireland | December | Finance |  | 1420749 | 1253050 | 167699 | 56923 | 6506 | (9570) | 100.00 |
|  KDB Bank Uzbekistan Ltd. | Uzbekistan | December | Finance |  | 1395833 | 1155287 | 240546 | 65340 | 35286 | 35176 | 86.32 |
|  Banco KDB Do Brazil S.A. | Brazil | December | Finance |  | 727163 | 602376 | 124787 | 119360 | 4595 | 9629 | 100.00 |
|  PT KDB Tifa Finance Tbk | Indonesia | December | Finance |  | 147004 | 48940 | 98064 | 7678 | 1741 | (7336) | 77.50 |
|  KDB Silicon Valley LLC | USA | December | Finance |  | 143654 | 1923 | 141731 | 4141 | 1129 | (10708) | 100.00 |
|  KDB OCCASIO II, L.P. | Cayman Islands | December | Financial<br>investment |  | 227847 | 29972 | 197875 | 18286 | 17060 | 990 | 90.00 |
|  KDB Synergy, L.P. | Cayman Islands | December | Financial<br>investment |  | 187653 | 50240 | 137413 | 5762 | 4810 | (6557) | 100.00 |
|  KDB Capital Corporation | Korea | December | Specialized<br>Credit Finance |  | 11746075 | 9832465 | 1913610 | 508839 | 194906 | 189697 | 99.92 |
|  Korea BTL Financing 1 (\*1) | Korea | Semi-<br>annually | Financial<br>investment |  | 228181 | 154 | 228027 | 6694 | 6346 | 6346 | 41.67 |
|  Korea Railroad Financing 1 (\*1) | Korea | Semi-<br>annually | Financial<br>investment |  | 132944 | 5 | 132939 | 3605 | 3435 | 3435 | 50.00 |
|  Korea Education Financing (\*1) | Korea | Semi-<br>annually | Financial<br>investment |  | 57635 | 11 | 57624 | 1508 | 1426 | 1426 | 50.00 |
|  KDB Infrastructure Investment Asset Management Co., Ltd. | Korea | December | Asset<br>management |  | 68968 | 11143 | 57825 | 19600 | 8118 | 8118 | 84.16 |
|  KDB Investment Co., Ltd. | Korea | December | Finance |  | 95707 | 3891 | 91816 | 4932 | 1525 | 1525 | 100.00 |
|  KDB Biz Co., Ltd. | Korea | December | Services |  | 11516 | 7763 | 3753 | 15472 | 275 | 275 | 100.00 |
|  KDB Life Insurance Co., Ltd. | Korea | December | Insurance |  | 17404471 | 17528624 | (124153) | 1015094 | (10281) | (166576) | 97.65 |
|  KDB-IAP OBOR PEF (\*2) | Korea | December | Financial<br>investment |  | 62974 | 72457 | (9483) |  | (574) | 203 | 33.52 |
|  KDB Asia PEF (\*2) | Korea | December | Financial<br>investment |  | 209976 | 166 | 209810 | 1 | 5550 | (15062) | 50.00 |
|  KDB Small Medium Mezzanine PEF | Korea | December | Financial<br>investment |  | 63126 | 3 | 63123 | 1646 | 1527 | 1527 | 66.67 |
|  Green Initiative 2nd Private Equity Fund (\*2) | Korea | December | Financial<br>investment |  | 1252998 | 591876 | 661122 | 355390 | (29488) | (29990) | 38.00 |
|  KDBC Co-investment Private Equity Fund | Korea | December | Financial<br>investment |  | 50313 | 21 | 50292 | 3997 | 1820 | 1820 | 70.00 |
|  Corporate Liquidity Assistance Agency Co., Ltd. | Korea | December | Financial<br>investment |  | 1089899 |  | 1089899 | 7323 | 7199 | 7199 | 100.00 |
|  Associates: |  |  |  |  |  |  |  |  |  |  |  |
|  Korea Electric Power Co., Ltd. | Korea | December | Electricity<br>generation | W | 249899672 | 206232333 | 43667339 | 46174122 | 3464958 | 2738012 | 32.90 |
|  Korea Tourism Organization | Korea | December | Culture and<br>tourism<br>administration |  | 1184812 | 349836 | 834976 | 353336 | 12936 | 12998 | 43.58 |
|  Korea Infrastructure Financing 2 Co. | Korea | December | Financial<br>investment |  | 969917 | 131266 | 838651 | 36584 | 33397 | 33397 | 26.67 |
|  Korea Ocean Business Corporation | Korea | December | Finance |  | 13539302 | 5650777 | 7888525 | 342128 | 474823 | (173093) | 20.80 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**10. <u>Investments in Subsidiaries and Associates, Continued</u>** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Country** | **Fiscal<br>year end** | **Industry** | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Net<br>income<br>(loss)** | **Total<br>compre-<br>hensive<br>income<br>(loss)** | **Owner-<br>ship<br>(%)** |
|  Korea Real Estate Board | Korea | December | Appraisal | 379932 | 87637 | 292295 | 139735 | 32096 | 44954 | 30.60 |
|  GM Korea Company (\*3) | Korea | December | Manufacturing | 10315240 | 4654612 | 5660628 | 6575502 | 194602 | 340614 | 17.02 |
|  HMM Co., Ltd. | Korea | December | Foreign cargo<br>transportation | 32246433 | 5850913 | 26395520 | 5477429 | 1210971 | (922956) | 36.02 |
|  HANJIN KAL (\*3) | Korea | December | Holding<br>compnay | 4334504 | 930620 | 3403884 | 133332 | 182389 | 167254 | 10.58 |
|  Korean Airlines Co., Ltd. (\*3) | Korea | December | Air passenger<br>transportation | 47337999 | 35806631 | 11531368 | 12702568 | 769602 | 710150 | 3.32 |
|  Hanwha Ocean Co., Ltd. (\*3) | Korea | December | Manufacturing | 18303713 | 13077937 | 5225776 | 6437203 | 364125 | 342790 | 15.25 |
|  TAEYOUNG ENGINEERING & CONSTRUCTION (\*4) | Korea | December | Construction | 4161401 | 3752595 | 408806 | 1199278 | (109630) | (115614) | 11.63 |

---

---

| | |
|:---|:---|
| (\*1) | The investees are financed by the Bank and managed by KDB Infrastructure Investments Asset Management Co., Ltd. They were included in the scope of consolidation even though the Bank holds less than half of the voting rights because the Bank is exposed to variable returns and has the ability to affect those returns through its power over the investee.  |

---

---

| | |
|:---|:---|
| (\*2) | Although the Bank's shareholding in the investee is less than 50%, it controls the investee since it is exposed, or has right to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.  |

---

---

| | |
|:---|:---|
| (\*3) | Although the Bank's shareholding is less than 20%, the Bank has significant influence considering the right to elect the investees' directors and the Bank classifies the companies as associates.  |

---

---

| | |
|:---|:---|
| (\*4) | Although the Bank's shareholding is less than 20%, as the main creditor bank, the Bank have initiated management procedures that designate the Bank as the managing institution. Consequently, the Bank have acquired significant influence, such as the ability to participate in the financial and operating policies of the company, and have classified it as an associate.  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**10. <u>Investments in Subsidiaries and Associates, Continued</u>** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Country** | **Fiscal<br>year end** | **Industry** | **Assets** | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Net income<br>(loss)** | **Total<br>compre-<br>hensive<br>income<br>(loss)** | **Owner-<br>ship<br>(%)** |
|  Subsidiaries: |  |  |  |  |  |  |  |  |  |  |  |
|  KDB Asia (HK) Ltd. | Hong Kong | December | Finance | W | 4772302 | 3861411 | 910891 | 398397 | 86776 | 198956 | 100.00 |
|  KDB Bank Europe Ltd. | Hungary | December | Finance |  | 1576690 | 1428151 | 148539 | 124478 | 10345 | 7833 | 100.00 |
|  KDB Ireland Ltd. | Ireland | December | Finance |  | 1451315 | 1274047 | 177268 | 104690 | 13336 | 37879 | 100.00 |
|  KDB Bank Uzbekistan Ltd. | Uzbekistan | December | Finance |  | 1119216 | 909683 | 209533 | 107884 | 58442 | 72178 | 86.32 |
|  Banco KDB Do Brazil S.A. | Brazil | December | Finance |  | 768583 | 651551 | 117032 | 112929 | 10355 | (3077) | 100.00 |
|  PT KDB Tifa Finance Tbk | Indonesia | December | Finance |  | 187549 | 76978 | 110571 | 15676 | 5542 | 14484 | 84.65 |
|  KDB Silicon Valley LLC | USA | December | Finance |  | 154757 | 2318 | 152439 | 5950 | 1022 | 21644 | 100.00 |
|  KDB OCCASIO II, L.P. | Cayman<br>Islands | December | Finance |  | 216086 | 19201 | 196885 | 19917 | 18443 | 41624 | 90.00 |
|  KDB Synergy, L.P. | Cayman<br>Islands | December | Finance |  | 158602 | 14632 | 143970 | 6229 | 2079 | 16085 | 100.00 |
|  KDB Capital Corporation | Korea | December | Specialized<br>Credit<br>Finance |  | 10817227 | 9131904 | 1685323 | 887013 | 228977 | 227595 | 99.92 |
|  Korea BTL Financing 1 (\*1) | Korea | Semi-<br>annually | Financial<br>investment |  | 244602 | 168 | 244434 | 14769 | 10165 | 10165 | 41.67 |
|  Korea Railroad Financing 1 (\*1) | Korea | Semi-<br>annually | Financial<br>investment |  | 138295 | 6 | 138289 | 7677 | 5400 | 5400 | 50.00 |
|  Korea Education Financing (\*1) | Korea | Semi-<br>annually | Financial<br>investment |  | 62670 | 9 | 62661 | 3389 | 2676 | 2676 | 50.00 |
|  KDB Infrastructure Investment Asset Management Co., Ltd. | Korea | December | Asset<br>management |  | 81990 | 15033 | 66957 | 43136 | 20295 | 20152 | 84.16 |
|  KDB Investment Co., Ltd. | Korea | December | Finance |  | 95332 | 4281 | 91051 | 9975 | 3797 | 3759 | 100.00 |
|  KDB Biz Co., Ltd. | Korea | December | Services |  | 7823 | 4344 | 3479 | 29648 | 415 | (128) | 100.00 |
|  KDB Consus Value PEF | Korea | December | Financial<br>investment |  | 17763900 | 17705401 | 58499 | 1772177 | 4576 | (621923) | 75.92 |
|  KDB-IAP OBOR PEF (\*2) | Korea | December | Financial<br>investment |  | 68249 | 77936 | (9687) |  | (1123) | (2251) | 33.52 |
|  KDB Asia PEF (\*2) | Korea | December | Financial<br>investment |  | 239159 | 198 | 238961 | 1 | 3572 | 30175 | 50.00 |
|  KDB Small Medium Mezzanine PEF | Korea | December | Financial<br>investment |  | 63454 | 75 | 63379 | 2320 | (23138) | (23138) | 66.67 |
|  Green Initiative 2nd Private Equity Fund (\*2) | Korea | December | Financial<br>investment |  | 1331309 | 641097 | 690212 | 620498 | (14598) | (14642) | 38.00 |
|  KDBC Co-investment Private Equity Fund | Korea | December | Financial<br>investment |  | 52964 | 111 | 52853 | 49841 | 38074 | 38074 | 70.00 |
|  Corporate Liquidity Assistance Agency Co., Ltd. | Korea | December | Financial<br>investment |  | 1082696 |  | 1082696 | 32897 | 14841 | 14841 | 100.00 |
|  Associates: |  |  |  |  |  |  |  |  |  |  |  |
|  Korea Electric Power Co., Ltd. | Korea | December | Electricity<br>generation | W | 246807795 | 205444962 | 41362833 | 93398896 | 3491698 | 4070175 | 32.90 |
|  Korea Tourism Organization | Korea | December | Culture and<br>tourism<br>administration |  | 1186637 | 374191 | 812446 | 883749 | 947 | (3064) | 43.58 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**10. <u>Investments in Subsidiaries and Associates, Continued</u>** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Country** | **Fiscal<br>year end** | **Industry** | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Net income<br>(loss)** | **Total<br>compre-<br>hensive<br>income<br>(loss)** | **Owner-<br>ship<br>(%)** |
|  Korea Infrastructure Fund II | Korea | December | Financial<br>investment | 958001 | 118877 | 839124 | 104545 | 97646 | 97646 | 26.67 |
|  Korea Ocean Business Corporation | Korea | December | Finance | 13718841 | 5657223 | 8061618 | 500210 | (437522) | 173900 | 20.80 |
|  Korea Real Estate Board | Korea | December | Appraisal | 314616 | 59868 | 254748 | 240013 | 17147 | 17129 | 30.60 |
|  GM Korea Company (\*3) | Korea | December | Manufacturing | 9904378 | 4593449 | 5310929 | 14337105 | 2198818 | 2084697 | 17.02 |
|  HMM Co., Ltd. | Korea | December | Foreign cargo<br>transportation | 33848562 | 5993018 | 27855544 | 11700224 | 3782169 | 6946998 | 33.73 |
|  HANJIN KAL (\*3) | Korea | December | Holding<br>company | 4207158 | 893997 | 3313161 | 292157 | 496999 | 467614 | 10.58 |
|  Korean Air Lines Co., Ltd. (\*3) | Korea | December | Air passenger<br>transportation | 47012066 | 36048874 | 10963192 | 17870718 | 1381858 | 1279328 | 3.32 |
|  Hanwha Ocean Co., Ltd. (\*3) | Korea | December | Manufacturing | 17843809 | 12980459 | 4863350 | 10776005 | 528119 | 568324 | 19.50 |
|  TAEYOUNG ENGINEERING & CONSTRUCTION (\*4) | Korea | December | Construction | 4323924 | 3796725 | 527199 | 2686174 | 34976 | 31449 | 11.64 |

---

---

| | |
|:---|:---|
| (\*1) | The investees are financed by the Bank and managed by KDB Infrastructure Investments Asset Management Co., Ltd. They were included in the scope of consolidation even though the Bank holds less than half of the voting rights because the Bank is exposed to variable returns and has the ability to affect those returns through its power over the investee.  |

---

---

| | |
|:---|:---|
| (\*2) | Although the Bank's shareholding in the investee is less than 50%, it controls the investee since it is exposed, or has right to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.  |

---

---

| | |
|:---|:---|
| (\*3) | Although the Bank's shareholding is less than 20%, the Bank has significant influence considering the right to elect the investees' directors and the Bank classifies the companies as associates.  |

---

---

| | |
|:---|:---|
| (\*4) | Although the Bank's shareholding is less than 20%, as the main creditor bank, the Bank have initiated management procedures that designate the Bank as the managing institution. Consequently, the Bank have acquired significant influence, such as the ability to participate in the financial and operating policies of the company, and have classified it as an associate.  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**11. <u>Property and Equipment</u>** 

Changes in property and equipment for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **January 1,<br>2025** | **January 1,<br>2025** | **Acquisition/<br>depreciation/**<br>**Impariment** | **Disposal** | **Reclassifi-<br>cation** | **Foreign<br>exchange<br>differences** | **June 30,**<br>**2025** |
|  Acquisition cost: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | W | 317788 |  |  | (77) |  | 317711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 643720 | 828 | (62) | 1586 |  | 646072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements |  | 47643 | 73 |  | 1153 | (814) | 48055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles |  | 630 |  |  |  | (28) | 602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment |  | 64187 | 920 | (327) |  | (227) | 64553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in progress |  |  | 4872 |  | (4436) |  | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets<br> (Real estate) |  | 133356 | 23585 | (18786) |  | (6644) | 131511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Vehicles) |  | 13094 | 405 | (349) |  | (128) | 13022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Others) |  | 152 |  | (3) |  | (11) | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 185643 | 1519 | (124) |  | (365) | 186673 |
|  |  | 1406213 | 32202 | (19651) | (1774) | (8217) | 1408773 |
|  Accumulated depreciation: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures (\*) |  | 274634 | 8552 |  | (62) |  | 283124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements |  | 39962 | 1609 |  |  | (522) | 41049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles |  | 593 |  |  |  | (25) | 568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment (\*) |  | 54725 | 1852 | (321) |  | (163) | 56093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets<br> (Real estate) |  | 70077 | 17386 | (16836) |  | (3273) | 67354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Vehicles) |  | 6822 | 1771 | (348) |  | (91) | 8154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Others) |  | 80 | 26 | (4) |  | (7) | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 159798 | 4751 | (111) |  | (249) | 164189 |
|  |  | 606691 | 35947 | (17620) | (62) | (4330) | 620626 |
|  Accumulated impairment losses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land |  | 3023 |  |  |  |  | 3023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 2361 |  |  |  |  | 2361 |
|  |  | 5384 |  |  |  |  | 5384 |
|  | W | 794138 | (3745) | (2031) | (1712) | (3887) | 782763 |

---

---

| | |
|:---|:---|
| (\*) | The amounts include government grants.  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**11. <u>Property and Equipment, Continued</u>** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **January 1,<br>2024** | **Acquisition/<br>depreciation/**<br>**Impariment** | **Disposal** | **Reclassifi-<br>cation** | **Foreign<br>exchange<br>differences** | **June 30,<br>2024** |
|  Acquisition cost: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 307481 |  |  | 10683 |  | 318164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures | 635054 | 2066 | (909) | 820 |  | 637031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements | 46003 | 492 |  |  | 77 | 46572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles | 585 |  |  |  | 25 | 610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment | 62730 | 637 | (91) |  | 237 | 63513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in progress | 1817 |  |  |  |  | 1817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets<br> (Real estate) | 122090 | 15118 | (13694) |  | 5364 | 128878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Vehicles) | 11245 | 520 | (1742) |  | 117 | 10140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Others) | 93 |  | (5) |  | 7 | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 170173 | 2600 | (46) |  | 358 | 173085 |
|  | 1357271 | 21433 | (16487) | 11503 | 6185 | 1379905 |
|  Accumulated depreciation: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures (\*) | 254358 | 8363 |  | 722 | (1) | 263442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements | 37520 | 1425 |  |  | (269) | 38676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles | 544 | 9 |  |  | 22 | 575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment (\*) | 51321 | 2042 | (90) |  | 151 | 53424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets<br> (Real estate) | 51066 | 16544 | (12610) |  | 2096 | 57096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Vehicles) | 5277 | 1599 | (1742) |  | 54 | 5188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets (Others) | 37 | 22 | (6) |  | 1 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 149680 | 4963 | (46) |  | 221 | 154818 |
|  | 549803 | 34967 | (14494) | 722 | 2275 | 573273 |
|  Accumulated impairment losses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 3023 |  |  |  |  | 3023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures | 2361 |  |  |  |  | 2361 |
|  | 5384 |  |  |  |  | 5384 |
|  | 802084 | (13534) | (1993) | 10781 | 3910 | 801248 |

---

---

| | |
|:---|:---|
| (\*) | The amounts include government grants.  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**12. <u>Investment Property</u>** 

Changes in investment property for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **January 1,<br>2025** | **January 1,<br>2025** | **Acquisition/<br>depreciation** | **Reclassification** | **June 30,<br>2025** |
|  Acquisition cost: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | W | 45143 |  | 77 | 45220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 56907 |  | 1697 | 58604 |
|  |  | 102050 |  | 1774 | 103824 |
|  Accumulated depreciation: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 36502 | 874 | 62 | 37438 |
|  Accumulated impairment losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land |  | 1197 |  |  | 1197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 1778 |  |  | 1778 |
|  |  | 2975 |  |  | 2975 |
|  | W | 62573 | (874) | 1712 | 63411 |
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **January 1,<br>2024** | **January 1,<br>2024** | **Acquisition/<br>depreciation** | **Reclassification** | **June 30,<br>2024** |
|  Acquisition cost: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | W | 55450 |  | (10683) | 44767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 55992 |  | (820) | 55172 |
|  |  | 111442 |  | (11503) | 99939 |
|  Accumulated depreciation: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 34645 | 877 | (722) | 34800 |
|  Accumulated impairment losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land |  | 1197 |  |  | 1197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures |  | 1778 |  |  | 1778 |
|  |  | 2975 |  |  | 2975 |
|  | W | 73822 | (877) | (10781) | 62164 |

---

The fair value of the Bank's investment property, as determined based on valuation by an independent appraiser, amounts to W83,958 million and W83,879 million as of June 30, 2025 and December 31, 2024, respectively. Additionally, fair value of investment in property is classified as level 3 according to the fair value hierarchy in Note 43.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**13. <u>Intangible Assets</u>** 

Changes in intangible assets for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **January 1,<br>2025** | **January 1,<br>2025** | **Acquisition** | **Disposal** | **Amortization** | **Foreign<br>exchange<br>differences** | **June 30,<br>2025** |
|  Development expense | W | 35296 | 8847 |  | (4614) | (43) | 39486 |
|  Equipment usage right |  | 404 |  |  | (27) | (27) | 350 |
|  Other deposits provided |  | 11485 |  |  |  | (66) | 11419 |
|  Others |  | 14986 | 3410 |  | (3819) | 149 | 14726 |
|  | W | 62171 | 12257 |  | (8460) | 13 | 65981 |
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **January 1,<br>2024** | **January 1,<br>2024** | **Acquisition** | **Disposal** | **Amortization** | **Foreign<br>exchange<br>differences** | **June 30,<br>2024** |
|  Development expense | W | 55907 | 1024 |  | (23341) | 40 | 33630 |
|  Equipment usage right |  | 409 |  |  | (26) | 28 | 411 |
|  Other deposits provided |  | 11542 |  |  |  | 66 | 11608 |
|  Others |  | 17603 | 1927 |  | (3658) | 270 | 16142 |
|  | W | 85461 | 2951 |  | (27025) | 404 | 61791 |

---

**14. <u>Other Assets</u>** 

Other assets as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Accounts receivable | W | 12544300 | 4380521 |
|  Unsettled domestic exchange receivables |  | 2362073 | 1933905 |
|  Accrued income |  | 944980 | 1108382 |
|  Guarantee deposits |  | 441953 | 446219 |
|  Prepaid expenses |  | 21104 | 20903 |
|  Advance payments |  | 8657 | 8648 |
|  Financial guarantee asset |  | 45631 | 50298 |
|  Others |  | 200715 | 183774 |
|  |  | 16569413 | 8132650 |
|  Loss allowance for other assets |  | (70552) | (72514) |
|  Present value discount |  | (3451) | (3618) |
|  | W | 16495410 | 8056518 |

---

The carrying amounts of financial assets included in other assets above amounted to W16,232,418 million and W7,798,105 million as of June 30, 2025 and December 31, 2024, respectively, and their fair value amounted to W16,230,624 million and W7,797,591 million as of June 30, 2025 and December 31, 2024, respectively.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**15. <u>Financial Liabilities Measured at FVTPL</u>** 

(1) Financial liabilities designated at fair value through profit or loss as of June 30, 2025 and
December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  Debentures | W | 1565889 |  | 1806079 |
|  Deposits |  | 560478 |  | 583167 |
|  | W | 2126367 |  | 2389246 |

---

Bonds and deposits, for which interest rate risk is managed by holding derivatives and securities, have been designated at fair value through profit or loss in order to significantly reduce accounting mismatches arising from recognition or measurement.

(2) The difference between the carrying amount and contractual cash flow amount of financial liabilities designated
at fair value through profit or loss as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Carrying amount | W | 2126367 | 2389246 |
|  Contractual cash flow amounts |  | 2527664 | 2787200 |
|  Difference | W | (401297) | (397954) |

---

**16. <u>Deposits</u>** 

Deposits as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized cost<br>(Carrying amounts)** | **Amortized cost<br>(Carrying amounts)** | **Fair value** | **Amortized cost**<br>**(Carrying amounts)** | **Fair value** |
|  Deposits in Korean won: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits | W | 324660 | 324660 | 104173 | 104173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time and savings deposits |  | 48932600 | 49016282 | 47088629 | 47156011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certificates of deposit |  | 215351 | 215304 | 505159 | 505223 |
|  |  | 49472611 | 49556246 | 47697961 | 47765407 |
|  Deposits in foreign currencies: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits |  | 975144 | 975001 | 963783 | 962800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time and savings deposits |  | 7994193 | 7992485 | 7776645 | 7739508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certificates of deposit |  | 9061779 | 9082824 | 8651522 | 8677085 |
|  |  | 18031116 | 18050310 | 17391950 | 17379393 |
|  Off-shore deposits in foreign currencies: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits |  | 1040504 | 1040504 | 1010662 | 1010662 |
|  | W | 68544231 | 68647060 | 66100573 | 66155462 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**17. <u>Borrowings</u>** 

(1) Borrowings as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Minimum<br>interest rate (%)** | **Maximum<br>interest rate (%)** | **Amortized cost<br>(Carrying amounts)** | **Amortized cost<br>(Carrying amounts)** | **Fair value** |
|  Borrowings in Korean won |  | 2.91 | W | 4705249 | 4665124 |
|  Borrowings in foreign currencies |  | 6.48 |  | 18278980 | 18262219 |
|  Off-shore borrowings in foreign currencies | 1.97 | 5.13 |  | 2349955 | 2346576 |
|  Others | 0.64 | 4.60 |  | 4279425 | 4275748 |
|  |  |  |  | 29613609 | 29549667 |
|  Deferred borrowing costs |  |  |  | (5227) |  |
|  |  |  | W | 29608382 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Minimum<br>interest rate (%)** | **Maximum<br>interest rate (%)** | **Amortized cost<br>(Carrying amounts)** | **Amortized cost<br>(Carrying amounts)** | **Fair value** |
|  Borrowings in Korean won |  | 2.91 | W | 4689044 | 4641896 |
|  Borrowings in foreign currencies | 0.40 | 6.91 |  | 20545564 | 20489948 |
|  Off-shore borrowings in foreign currencies | 2.25 | 5.32 |  | 3478482 | 3463100 |
|  Others | 0.43 | 5.68 |  | 4023136 | 4002350 |
|  |  |  |  | 32736226 | 32597294 |
|  Deferred borrowing costs |  |  |  | (5708) |  |
|  |  |  | W | 32730518 |  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**17. <u>Borrowings, Continued</u>** 

(2) Borrowings in Korean won before adjusting for gains and losses on deferred borrowing costs as of June 30,
2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Lender** | **Classification** | **Annual**<br>**interest rate (%)** | **June 30, 2025** | **June 30, 2025** | **December 31,<br>2024** |
|  The Bank of Korea | Borrowings from Bank of Korea |  | W | 302783 | 330451 |
|  Ministry of Economy and Finance | Borrowings from government fund (\*) | 2.08 ~ 2.20 |  | 54928 | 62184 |
|  Korea SMEs and Startups Agency | Borrowings from small and medium enterprise promotion fund | 1.45 ~ 2.65 |  | 71963 | 64390 |
|  Ministry of Culture, Sports and Tourism | Borrowings from tourism promotion fund | 0.45 ~ 1.70 |  | 2922144 | 2946821 |
|  Korea Energy Agency | Borrowings from fund for rational use of energy | 0.25 ~ 1.75 |  | 284071 | 280245 |
|  Local governments | Borrowings from local small and medium enterprise promotion fund | 0.50 ~ 2.80 |  | 18827 | 19160 |
|  Others | Borrowings from petroleum enterprise fund and others | 0.00 ~ 2.91 |  | 1050533 | 985793 |
|  |  |  | W | 4705249 | 4689044 |

---

(\*) Borrowings from government fund are subordinated borrowings.

(3) Borrowings and off-shore borrowings in foreign currencies before adjusting for gains and losses on deferred
borrowing costs as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Lender** | **Classification** | **Annual**<br>**interest rate (%)** | **June 30, 2025** | **June 30, 2025** | **December 31,<br>2024** |
|  Mizuho and others | Bank loans from foreign funds | 2.37 ~ 5.28 | W | 2871980 | 2798873 |
|  BANK OF NEW YORK MELL ON, LONDON and others | Off-shore short term borrowings | 1.97 ~ 4.51 |  | 964019 | 1757295 |
|  China Development Bank and others | Off-shore long term borrowings | 2.07 ~ 5.13 |  | 1385936 | 1721187 |
|  Others | Short-term borrowings in foreign currencies | 0.00 ~ 6.48 |  | 13851129 | 16412709 |
|  | Long term borrowings in foreign currencies | 1.00 ~ 6.28 |  | 1555871 | 1333982 |
|  |  |  | W | 20628935 | 24024046 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**18. <u>Debentures</u>** 

Details of debentures as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Minimum<br>interest rate (%)** | **Maximum<br>interest rate (%)** | **Amortized cost<br>(Carrying amount)** | **Amortized cost<br>(Carrying amount)** | **Fair value** |
|  Debentures in Korean won: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 0.98 | 7.05 | W | 114092589 | 114831612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discount on debentures |  |  |  | (191044) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation adjustment for fair value hedges |  |  |  | (77198) |  |
|  |  |  |  | 113824347 |  |
|  Debentures in foreign currencies: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 0.80 | 13.29 |  | 28338945 | 29568460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discount on debentures |  |  |  | (39445) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation adjustment for fair value hedges |  |  |  | (83558) |  |
|  |  |  |  | 28215942 |  |
|  Off-shore debentures: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 0.17 | 13.42 |  | 21983032 | 22288002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discount on debentures |  |  |  | (54734) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation adjustment for fair value hedges |  |  |  | 230454 |  |
|  |  |  |  | 22158752 |  |
|  |  |  | W | 164199041 | 166688074 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**18. <u>Debentures, Continued</u>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Minimum<br>interest rate (%)** | **Maximum<br>interest rate (%)** | **Amortized cost<br>(Carrying amount)** | **Amortized cost<br>(Carrying amount)** | **Fair value** |
|  Debentures in Korean won: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 0.98 | 7.05 | W | 113968049 | 114467840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discount on debentures |  |  |  | (178440) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation adjustment for fair value hedges |  |  |  | (120391) |  |
|  |  |  |  | 113669218 |  |
|  Debentures in foreign currencies: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 0.75 | 11.24 |  | 29840263 | 30907953 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discount on debentures |  |  |  | (41691) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation adjustment for fair value hedges |  |  |  | (444851) |  |
|  |  |  |  | 29353721 |  |
|  Off-shore debentures: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 0.17 | 11.21 |  | 21912152 | 22276988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discount on debentures |  |  |  | (56870) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation adjustment for fair value hedges |  |  |  | 224048 |  |
|  |  |  |  | 22079330 |  |
|  |  |  | W | 165102269 | 167652781 |

---

**19. <u>Defined Benefit Assets</u>** 

The Bank implements a defined benefit retirement pension plan based on employee compensation benefits and service periods.

(1) Details of net defined benefit assets as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Present value of defined benefit obligation | W | 439259 | 429017 |
|  Fair value of plan assets |  | (477511) | (459985) |
|  Net defined benefit assets | W | (38252) | (30968) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**19. <u>Defined Benefit Assets, Continued</u>** 

(2) Defined benefit costs recognized in profit or loss for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Current service costs | W | 8186 | 16373 | 7495 | 15065 |
|  Interest expense, net |  | (325) | (650) | (908) | (1814) |
|  | W | 7861 | 15723 | 6587 | 13251 |

---

**20. <u>Provisions</u>** 

(1) Details of provisions as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Provision for payment guarantees | W | 248724 | 434990 |
|  Provision for unused commitments |  | 266026 | 333175 |
|  Provision for financial guarantee |  | 9326 | 7560 |
|  Provision for possible losses from lawsuits |  | 21573 | 21573 |
|  Provision for restoration |  | 14149 | 14181 |
|  Other provision |  | 3391 | 3391 |
|  | W | 563189 | 814870 |

---

(2) Changes in provision for payment guarantees for the six-month periods
ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | | | **Lifetime expected credit losses** | **Lifetime expected credit losses** | |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |<br>**Total** |
|  Beginning balance | W | 215589 | 190183 | 29218 | 434990 |
|  Transfer to 12-month expected credit loss |  | 16 | (16) |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired exposures |  | (98) | 167 | (69) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired exposures |  |  |  |  |  |
|  Impairment gain |  | (96725) | (65583) | (2353) | (164661) |
|  Foreign currency translation |  | (9821) | (9804) | (1980) | (21605) |
|  Ending balance | W | 108961 | 114947 | 24816 | 248724 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**20. <u>Provisions, Continued</u>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | | | **Lifetime expected credit losses** | **Lifetime expected credit losses** | |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |<br>**Total** |
|  Beginning balance | W | 230436 | 317138 | 44524 | 592098 |
|  Transfer to 12-month expected credit loss |  | 36073 | (36065) | (8) |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired exposures |  | (62334) | 63334 | (1000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired exposures |  | (34888) | (1306) | 36194 |  |
|  Impairment loss (gain) |  | 59656 | (186207) | (75755) | (202306) |
|  Foreign currency translation |  | 36946 | 470 | 475 | 37891 |
|  Ending balance | W | 265889 | 157364 | 4430 | 427683 |

---

(3) Changes in provision for unused commitments for the six-month periods
ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | | | **Lifetime expected credit losses** | **Lifetime expected credit losses** | |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |<br>**Total** |
|  Beginning balance | W | 132746 | 124675 | 75754 | 333175 |
|  Transfer to 12-month expected credit loss |  | 2263 | (2263) |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (16385) | 16501 | (116) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  |  | (2044) | 2044 |  |
|  Impairment loss (gain) |  | 9919 | (24690) | (44869) | (59640) |
|  Foreign currency translation |  | (5083) | (2228) | (198) | (7509) |
|  Ending balance | W | 123460 | 109951 | 32615 | 266026 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | | | **Lifetime expected credit losses** | **Lifetime expected credit losses** | |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |<br>**Total** |
|  Beginning balance | W | 114277 | 272952 | 11412 | 398641 |
|  Transfer to 12-month expected credit loss |  | 17760 | (17755) | (5) |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (109125) | 109222 | (97) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  | (75467) | (121) | 75588 |  |
|  Impairment loss (gain) |  | 184340 | (237914) | (8935) | (62509) |
|  Foreign currency translation |  | 4947 | 2026 | 64 | 7037 |
|  Ending balance | W | 136732 | 128410 | 78027 | 343169 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**20. <u>Provisions, Continued</u>** 

(4) Changes in provision for financial guarantee for the six-month periods
ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | | | **Lifetime expected credit losses** | **Lifetime expected credit losses** | |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |<br>**Total** |
|  Beginning balance | W | 2920 | 3209 | 1431 | 7560 |
|  Transfer to 12-month expected credit loss |  |  |  |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (1030) | 1030 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  |  | (1683) | 1683 |  |
|  Impairment loss (gain) |  | (580) | 2499 | (153) | 1766 |
|  Ending balance | W | 1310 | 5055 | 2961 | 9326 |
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  |  |  | **Lifetime expected credit losses** | **Lifetime expected credit losses** |  |
|  | **12-month<br>expected credit<br>loss** | **12-month<br>expected credit<br>loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** | **Total** |
|  Beginning balance | W | 3122 | 42240 | 5401 | 50763 |
|  Transfer to 12-month expected credit loss |  |  |  |  |  |
|  Transfer to lifetime expected credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to non credit-impaired |  | (20) | 20 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to credit-impaired |  |  | (56) | 56 |  |
|  Impairment loss (gain) |  | 425 | (39238) | (3498) | (42311) |
|  Ending balance | W | 3527 | 2966 | 1959 | 8452 |

---

(5) Changes of lawsuit provision, provision for restoration and other provision for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** |
|  | **Lawsuit<br>provision** | **Lawsuit<br>provision** | **Provision for<br>restoration** | **Other<br>provision** |
|  Beginning balance | W | 21573 | 14181 | 3391 |
|  Decrease of provision |  |  | (637) |  |
|  Provision used and others |  |  | 605 |  |
|  Ending balance | W | 21573 | 14149 | 3391 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**20. <u>Provisions, Continued</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  | **Lawsuit<br>provision** | **Lawsuit<br>provision** | **Provision for<br>restoration** | **Other<br>provision** |
|  Beginning balance | W | 168 | 13722 | 3391 |
|  Decrease of provision |  |  | (95) |  |
|  Provision used and others |  |  | 364 |  |
|  Ending balance | W | 168 | 13991 | 3391 |

---

(6) Provision for payment guarantees and financial guarantee

Confirmed acceptances and guarantees, unconfirmed acceptances and guarantees and bills endorsed are not recognized on the statement of financial position, but are disclosed as off-statement of financial position items in the notes to the financial statements. The Bank provides a provision for such off-statement of financial position items, applying a Credit Conversion Factor ("CCF") and provision rates under the Bank's expected credit loss model, and records the provision as a reserve for expected credit losses on acceptances and guarantees.

In the case of financial guarantee contracts, when the amount calculated using the same method as above is greater than the initial amount less amortization of fees recognized, the difference is recorded as provision for financial guarantee.

(7) Provision for unused commitments

The Bank records a provision for a certain portion of unused credit lines which is calculated using a CCF as provision for unused commitments applying provision rates under the Bank's expected credit loss model.

(8) Provision for possible losses from lawsuits

As of June 30, 2025, the Bank is involved in 4 lawsuits as a plaintiff and 15 lawsuits as a defendant. The aggregate amounts of claims as a plaintiff and a defendant amounted to W17,610 million and W55,921 million, respectively. The Bank provided a provision against contingent loss from pending lawsuits as of June 30, 2025 and additional losses may be incurred depending on the result of pending lawsuits.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**20. <u>Provisions, Continued</u>** 

Major lawsuits in progress as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Contents** | **Amounts** | **Amounts** |
|  Plaintiff: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanil Engineering & Construction Co., Ltd | Appeal against the confirmed decision on Investigation | W | 16900 1<sup>st</sup> trial in progress |
|  Defendant: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shinhan Bank and Woori Bank | Claim for damages |  | 31711 1<sup>st</sup> trial ruled in favor of the Bank; 2<sup>nd</sup> trial partially ruled against the Bank; 3<sup>rd</sup> trial in progress |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One individual | Claim for cancellation of pledge |  | 8610 1<sup>st</sup> trial ruled in favor of the Bank; 2<sup>nd</sup> trial in progress |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Contents** | **Amounts** | **Amounts** |
|  Plaintiff: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanil Engineering & Construction Co., Ltd | Appeal against the confirmed decision on Investigation | W | 16900 1<sup>st</sup> trial in progress |
|  Defendant: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 257 individuals including Mr. Kang | Claim for wage |  | 41853 1<sup>st</sup> trial in progress |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shinhan Bank and Woori Bank | Claim for damages |  | 31711 1<sup>st</sup> trial ruled in favor of the Bank; 2<sup>nd</sup> trial partially ruled against the Bank |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dongbu Corporation | Claim for objection of request (participation to support) |  | 19658 1<sup>st</sup> trial in progress |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One individual | Claim for cancellation of pledge |  | 8610 1<sup>st</sup> trial ruled in favor of the Bank; 2<sup>nd</sup> trial in progress |

---

(9) Other provision

The Bank recognised other provision as a reserve for other miscellaneous purpose.

(10) Other contingencies

As of June 30, 2025, the Korea Fair Trade Commission is investigating whether domestic financial institutions, including the Bank, have engaged in improper collusive practices in connection with auctions of Korean Treasury bonds. The outcome of this investigation is not presently determinable."

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**21. <u>Other Liabilities</u>** 

(1) Other liabilities as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31,<br>2024** |
|  Accounts payable | W | 12495278 | 4345402 |
|  Lease liabilities |  | 78969 | 83444 |
|  Accrued expense |  | 2823467 | 2862819 |
|  Unearned income |  | 106655 | 82097 |
|  Deposits withholding tax |  | 36789 | 59273 |
|  Guarantee money received |  | 605183 | 911670 |
|  Foreign exchanges payable |  | 42574 | 23229 |
|  Domestic exchanges payable |  | 283463 | 255049 |
|  Borrowing from trust accounts |  | 1471536 | 1007782 |
|  Financial guarantee liability |  | 48984 | 52963 |
|  Others |  | 206872 | 315872 |
|  |  | 18199770 | 9999600 |
|  Present value discount |  | (11300) | (16127) |
|  | W | 18188470 | 9983473 |

---

The carrying amount of financial liabilities included in other liabilities above amounted to W17,984,141 million and W9,778,765 million as of June 30, 2025 and December 31, 2024, respectively, and their fair value amounted to W17,939,242 million and W9,740,722 million as of June 30, 2025 and December 31, 2024, respectively.

(2) Details of lease liabilities as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Face value** | **Face value** | **Discount** | **Carrying<br>amounts** |
|  Real estate | W | 73678 | (10304) | 63374 |
|  Vehicles |  | 5230 | (120) | 5110 |
|  Others |  | 61 | (14) | 47 |
|  | W | 78969 | (10438) | 68531 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Face value** | **Face value** | **Discount** | **Carrying<br>amounts** |
|  Real estate | W | 76406 | (14363) | 62043 |
|  Vehicles |  | 6952 | (215) | 6737 |
|  Others |  | 86 | (9) | 77 |
|  | W | 83444 | (14587) | 68857 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**21. <u>Other Liabilities, Continued</u>** 

(3) The amount related to lease recognized in the separate statement of comprehensive income for the three-month
and six-month periods ended June 30, 2025 and 2024 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Depreciation of right-of-use assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | W | 8764 | 17386 | 8391 | 16544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles |  | 883 | 1771 | 812 | 1599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 13 | 26 | 12 | 22 |
|  |  | 9660 | 19183 | 9215 | 18165 |
|  Interest expenses on the lease liabilities |  | 608 | 1124 | 479 | 1079 |
|  Expense relating to leases of low-value assets |  | (3340) | 4191 | 128 | 7613 |
|  | W | 6928 | 24498 | 9822 | 26857 |

---

(4) Cash flows used in lease liabilities for the six-month periods ended
June 30, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  Decrease in lease liabilities | W | 17546 |  | 14894 |
|  Lease payments relating to leases of low-value assets |  | 4191 |  | 7613 |
|  | W | 21737 |  | 22507 |

---

(5) Maturity analysis of undiscounted lease payments relating to lease liabilities as of June 30, 2025 and
December 31, 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Within<br>3 months** | **Within<br>3 months** | **3 months ~<br>1 year** | **1 year ~<br>5 years** | **Over**<br>**5 years** | **Total** |
|  Lease payments | W | 10391 | 23556 | 35404 | 9618 | 78969 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Within<br>3 months** | **Within<br>3 months** | **3 months ~<br>1 year** | **1 year ~<br>5 years** | **Over**<br>**5 years** | **Total** |
|  Lease payments | W | 10711 | 25614 | 36338 | 10781 | 83444 |

---

**22. <u>Equity</u>** 

***(1) Issued capital***

The Bank is authorized to issue up to 6,000 million shares of common stock and has 5,385,051,768 shares issued and 5,263,311,768 shares issued as of June 30, 2025 and December 31, 2024, respectively, and outstanding with a total par value (W5,000 of par value per share) of W26,925,259 million and W26,316,559 million as of June 30, 2025 and December 31, 2024, respectively.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**22. <u>Equity, Continued</u>** 

***(2) Capital surplus***

Capital surplus as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  Paid-in capital in excess of par value | W | 19204 |  | 22138 |
|  Surplus from capital reduction (\*1) |  | 44373 |  | 44373 |
|  Other capital surplus (\*2) |  | 2390495 |  | 2390495 |
|  | W | 2454072 |  | 2457006 |

---

---

| | |
|:---|:---|
| (\*1) | The Bank reduced W5,178,600 million of its issued capital in 1998 and 2000 to offset its accumulated deficit amounting to W5,134,227 million. As the result of the capital reduction, W44,373 million of surplus exceeding accumulated deficit was recorded in capital surplus in equity.  |

---

---

| | |
|:---|:---|
| (\*2) | The difference in the amount of shares issued and the carrying value of net asset acquired occurring from the merger of the Bank with KDB Financial Group Inc. and Korea Finance Corporation are recognized as other capital surplus.  |

---

***(3) Accumulated other comprehensive income***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Accumulated other comprehensive income as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Net gain on securities measured at FVOCI |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation gain on securities measured at FVOCI (before tax) | W | 491591 | 1136394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss allowance for securities measured at FVOCI (before tax) |  | 41281 | 95613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effect |  | (140678) | (325250) |
|  |  | 392194 | 906757 |
|  Exchange differences on translation of foreign operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange differences on translation of foreign operations (before tax) |  | 236742 | 408725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effect |  |  |  |
|  |  | 236742 | 408725 |
|  Valuation gain on cash flow hedge: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation gain on cash flow hedge (before tax) |  |  | 1045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effect |  |  | (276) |
|  |  |  | 769 |
|  Net loss on hedges of net investments in foreign operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss on hedges of net investments in foreign operations (before tax) |  | (179127) | (283997) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effect |  | 47289 | 74976 |
|  |  | (131838) | (209021) |
|  Remeasurements of defined benefit liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit liabilities (before tax) |  | 97330 | 97330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effect |  | (25694) | (25694) |
|  |  | 71636 | 71636 |
|  Fair value changes on financial liabilities designated at fair value due to credit risk: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation gain on financial liabilities designated at fair value due to credit risk (before tax) |  | 89228 | 78615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effect |  | (23557) | (20756) |
|  |  | 65671 | 57859 |
|  | W | 634405 | 1236725 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**22. <u>Equity, Continued</u>** 

(ii) Changes in accumulated other comprehensive income for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **January 1, 2025** | **January 1, 2025** | **Increase**<br>**(Decrease)** | **Tax Effect** | **June 30,<br>2025** |
|  Gain (loss) on securities measured at FVOCI | W | 906757 | (699135) | 184572 | 392194 |
|  Exchange differences on translation of foreign operations |  | 408725 | (171983) |  | 236742 |
|  Valuation gain (loss) on cash flow hedge |  | 769 | (1045) | 276 |  |
|  Valuation gain (loss) on hedges of net investments in foreign operations |  | (209021) | 104870 | (27687) | (131838) |
|  Remeasurements of defined benefit liabilities |  | 71636 |  |  | 71636 |
|  Valuation gain (loss) on financial liabilities designated at fair value due to credit risk |  | 57859 | 10613 | (2801) | 65671 |
|  | W | 1236725 | (756680) | 154360 | 634405 |
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **January 1, 2024** | **January 1, 2024** | **Increase**<br>**(Decrease)** | **Tax Effect** | **June 30,<br>2024** |
|  Gain (loss) on securities measured at FVOCI | W | 1927765 | (338871) | 89461 | 1678355 |
|  Exchange differences on translation of foreign operations |  | 152225 | 134949 |  | 287174 |
|  Valuation gain (loss) on cash flow hedge |  | 2969 | (1507) | 398 | 1860 |
|  Valuation gain (loss) on hedges of net investments in foreign operations |  | (86315) | (92131) | 24323 | (154123) |
|  Remeasurements of defined benefit liabilities |  | 88732 |  |  | 88732 |
|  Valuation gain (loss) on financial liabilities designated at fair value due to credit risk |  | 72975 | (8205) | 2166 | 66936 |
|  | W | 2158351 | (305765) | 116348 | 1968934 |

---

***(4) Retained earnings***

In accordance with the *Korea Development Bank Act,* the Bank is required to appropriate at least 40% of net income as a legal reserve. This reserve can be transferred to paid-in capital or offset an accumulated deficit.

In accordance with the *Korea Development Bank Act*, the Bank offsets an accumulated deficit with reserves. If the reserve is insufficient to offset the accumulated deficit, the Korean government is responsible for the deficit.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**22. <u>Equity, Continued</u>** 

(i) Retained earnings as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  Legal reserve | W | 4528319 |  | 3725456 |
|  Voluntary reserve |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulatory reserve for loan losses |  | 72552 |  | 77581 |
|  Unappropriated retained earnings |  | 10233322 |  | 9111569 |
|  | W | 14834193 |  | 12914606 |

---

(ii) Changes in legal reserve for the six-month periods ended June 30,
2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  Beginning balance | W | 3725456 |  | 2721885 |
|  Transfer from retained earnings |  | 802863 |  | 1003571 |
|  Ending balance | W | 4528319 |  | 3725456 |

---

(iii) Changes in unappropriated retained earnings for the six-month periods
ended June 30, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  Beginning balance | W | 9111569 | 7943027 |
|  Profit for the period |  | 1908405 | 1673816 |
|  Contribution to legal reserve |  | (802863) | (1003571) |
|  Dividends |  | (758706) | (878125) |
|  Reclassification of gain or loss on equity securities measured at FVOCI |  | 769888 | 288380 |
|  Transfer from regulatory reserve for credit losses |  | 5029 | 134415 |
|  Ending balance | W | 10233322 | 8157942 |

---

***(5) Regulatory reserve for credit losses***

The Bank is required to provide a regulatory reserve for credit losses in accordance with *Regulations on Supervision of Banking Business 29(1) and (2)*. The details of regulatory reserve for credit losses are as follows:

(i) Regulatory reserve for credit losses as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Beginning balance | W | 72552 | 77581 |
|  Provision for (reversal of) regulatory reserve for credit losses |  | 319142 | (5029) |
|  Ending balance | W | 391694 | 72552 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**22. <u>Equity, Continued</u>** 

(ii) Required reversal of regulatory reserve for credit losses and profit after adjusting regulatory reserve for
loan losses for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Profit for the period | W | 890693 | 1908405 | 1080682 | 1673816 |
|  Obligated amount of reversal of (provision for) regulatory reserve for credit losses |  | 350035 | (319142) | 201899 | (93978) |
|  Profit after adjusting regulatory reserve for credit losses | W | 1240728 | 1589263 | 1282581 | 1579838 |
|  Earnings per share after adjusting regulatory reserve for credit losses (in won) | W | 233 | 300 | 246 | 316 |

---

**23. <u>Net Interest Income</u>** 

Net interest income for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Interest income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks | W | 98052 | 207089 | 98350 | 182415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  | 27660 | 54576 | 21786 | 41638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 184171 | 376708 | 231450 | 444416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 86200 | 172293 | 84954 | 171474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at FVTPL |  | 2250 | 5376 | 4253 | 6536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 2332712 | 4766214 | 2645743 | 5278764 |
|  |  | 2731045 | 5582256 | 3086536 | 6125243 |
|  Interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL |  | (25546) | (54693) | (27980) | (52732) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | (521957) | (1044427) | (601923) | (1237949) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | (335594) | (682713) | (437661) | (856672) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | (1609174) | (3258560) | (1739885) | (3415136) |
|  |  | (2492271) | (5040393) | (2807449) | (5562489) |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;238774 | 541863 | 279087 | 562754 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**24. <u>Net Fees and Commission Income</u>** 

Net fees and commission income for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Fees and commission income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan commissions | W | 42923 | 84073 | 43426 | 81765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Underwriting and investment consulting commissions |  | 54800 | 79987 | 34804 | 61742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brokerage and agency commissions |  | 2317 | 4600 | 2112 | 3426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust and retirement pension plan commissions |  | 9700 | 19646 | 9774 | 20305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees on asset management |  | 839 | 1107 | 407 | 677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other fees |  | 56962 | 97590 | 46660 | 88178 |
|  |  | 167541 | 287003 | 137183 | 256093 |
|  Fees and commission expenses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brokerage and agency fees |  | (3563) | (6227) | (3014) | (5803) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other fees |  | (10415) | (18107) | (10068) | (16732) |
|  |  | (13978) | (24334) | (13082) | (22535) |
|  | W | 153563 | 262669 | 124101 | 233558 |

---

**25. <u>Dividend Income</u>** 

Dividend income for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Securities measured at FVTPL | W | 39699 | 81503 | 46657 | 90874 |
|  Securities measured at FVOCI |  | 80284 | 149796 |  | 124583 |
|  Investments in subsidiaries and associates |  | 84796 | 423157 | 136008 | 438996 |
|  | W | 204779 | 654456 | 182665 | 654453 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**26. <u>Net Gain on Securities Measured at FVTPL</u>** 

Net gain related to securities measured at FVTPL for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Gains on securities measured at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sale | W | 45757 | 123511 | 32629 | 69305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on valuation |  | 164194 | 418050 | 154426 | 412867 |
|  |  | 209951 | 541561 | 187055 | 482172 |
|  Losses on securities measured at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on sale |  | (7736) | (21025) | (7413) | (34919) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation |  | (91535) | (161891) | (57752) | (200330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase related expense |  | (2) | (5) | (2) | (4) |
|  |  | (99273) | (182921) | (65167) | (235253) |
|  | W | 110678 | 358640 | 121888 | 246919 |

---

**27. <u>Net Gain (Loss) on Financial Liabilities Measured at FVTPL</u>** 

Net gain (loss) related to financial liabilities designated at fair value through profit or loss ("FVTPL") for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Gains on financial liabilities measured at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption | W | 1713 | 2001 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on valuation |  | 5326 | 8309 | (25771) | 51369 |
|  |  | 7039 | 10310 | (25771) | 51369 |
|  Losses on financial liabilities measured at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | (1692) |  | (704) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation |  | 33581 | (37070) | (8245) | (13130) |
|  |  | 33581 | (38762) | (8245) | (13834) |
|  | W | 40620 | (28452) | (34016) | 37535 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**28. <u>Net Gain on Securities Measured at FVOCI</u>** 

Net gain related to securities measured at FVOCI for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Gains on securities measured at FVOCI: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sale | W | 18371 | 28095 | 7889 | 9672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of impairment losses |  | 677 | 2511 | 1094 | 1159 |
|  |  | 19048 | 30606 | 8983 | 10831 |
|  Losses on securities measured at FVOCI: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on sale |  | (2249) | (3138) | (400) | (416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses |  | 70 | (781) | (3560) | (4362) |
|  |  | (2179) | (3919) | (3960) | (4778) |
|  | W | 16869 | 26687 | 5023 | 6053 |

---

**29. <u>Net Gain (Loss) on Derivatives</u>** 

Net gain (loss) on derivatives for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Net gain on trading purpose derivatives: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on trading purpose derivatives: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | W | 760805 | 1909925 | 893500 | 2401754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  | 9643362 | 14085090 | 4405232 | 9970867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock |  | 29 | 29 | 192 | 887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity |  | (1897) | 3460 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on adjustment of derivatives |  | 6564 | 7483 | (670) | 4657 |
|  |  | 10408863 | 16005987 | 5298254 | 12378165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on trading purpose derivatives: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest |  | (761319) | (1925744) | (862965) | (2273984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  | (10233360) | (14832001) | (4373560) | (9804301) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock |  | (404) | (477) | (230) | (755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity |  | 1899 | (3444) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on adjustment of derivatives |  | (969) | (2029) | 74 | (6134) |
|  |  | (10994153) | (16763695) | (5236681) | (12085174) |
|  |  | (585290) | (757708) | 61573 | 292991 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**29. <u>Net Gain (Loss) on Derivatives, Continued</u>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Net gain (loss) on hedging purpose derivatives: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on hedging purpose derivatives: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest |  | 158974 | 489292 | 46067 | 61861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  | 776980 | 1226327 | 31793 | 122774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on adjustment of derivatives |  | 20 | 27 | 84 | 182 |
|  |  | 935974 | 1715646 | 77944 | 184817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on hedging purpose derivatives: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest |  | (6711) | (15894) | 74925 | (152172) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  | (99462) | (232332) | (182831) | (594375) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on adjustment of derivatives |  | (290) | (471) | (104) | (212) |
|  |  | (106463) | (248697) | (108010) | (746759) |
|  |  | 829511 | 1466949 | (30066) | (561942) |
|  Net gain (loss) on fair value hedged items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on fair value hedged items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on valuation |  | 233455 | 318586 | 28686 | 430663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption |  | 126654 | 271776 | 20001 | 149322 |
|  |  | 360109 | 590362 | 48687 | 579985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on fair value hedged items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation |  | (6084) | (743004) | (262257) | (511603) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption |  | (176079) | (327256) | (59720) | (213866) |
|  |  | (182163) | (1070260) | (321977) | (725469) |
|  |  | 177946 | (479898) | (273290) | (145484) |
|  | W | 422167 | 229343 | (241783) | (414435) |

---

Related with cash flow hedge, the Bank recognized W40 million of gain in the statement of comprehensive income as the ineffective portion for the period ended June 30, 2024.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**30. <u>Net Gain (loss) on Foreign Currency Transaction</u>** 

Net gain (loss) on foreign currency transaction for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Net gain (loss) on foreign exchange transactions: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on foreign exchange transactions | W | 426523 | 656552 | 181256 | 363812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on foreign exchange transactions |  | (432524) | (664432) | (172471) | (343975) |
|  |  | (6001) | (7880) | 8785 | 19837 |
|  Net gain (loss) on foreign exchange translations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on foreign exchange translations |  | 17140735 | 19404836 | 6394902 | 14378855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on foreign exchange translations |  | (17349937) | (19403116) | (6103049) | (13827338) |
|  |  | (209202) | 1720 | 291853 | 551517 |
|  | W | (215203) | (6160) | 300638 | 571354 |

---

**31. <u>Other Operating Income (Expense), net</u>** 

Other operating income and expense for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Other operating income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sale of loans | W | 19026 | 19026 | 26851 | 35268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of loans measured at FVTPL |  | 503 | 503 | 3282 | 3700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on valuation of loans measured at FVTPL |  | 264 | 4602 | 388 | 2416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of investments in subsidiaries and associates |  | 570375 | 570375 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provisions |  | 519 | 692 | 5 | 164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 15949 | 27082 | 12017 | 22937 |
|  |  | 606636 | 622280 | 42543 | 64485 |
|  Other operating expenses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on sale of loans |  | (14903) | (20922) | (61699) | (62545) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of loans measured at FVTPL |  | (396) | (884) | (1417) | (1417) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation of loans measured at FVTPL |  | 2973 | (13506) | 5834 | (18087) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of investments in subsidiaries and associates |  | (602) | (602) |  | (7203) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase of provisions |  | (26) | (55) | (34) | (69) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance expenses |  | (24863) | (49383) | (25085) | (50085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit guarantee fund salary |  | (57149) | (113549) | (54804) | (107828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Educational taxes |  | (17573) | (32280) | (14293) | (30683) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign security contributions |  | (4934) | (8295) | (1568) | (4981) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (5824) | (14416) | (5096) | (10121) |
|  |  | (123297) | (253892) | (158162) | (293019) |
|  | W | 483339 | 368388 | (115619) | (228534) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**32. <u>Reversal of Credit Losses</u>** 

Reversal of credit losses for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Provision for (reversal of) loss allowance for loan | W | 149755 | 152394 | (75908) | (69085) |
|  Reversal of loss allowance for other assets |  | (1396) | (1154) | (660) | (2598) |
|  Reversal of payment guarantees |  | (163389) | (164661) | (10172) | (202306) |
|  Reversal of unused commitments |  | (58546) | (59640) | (17313) | (62509) |
|  Provision for (reversal of) financial guarantee |  | 2154 | 1766 | (30506) | (42311) |
|  | W | (71422) | (71295) | (134559) | (378809) |

---

**33. <u>General and Administrative Expenses</u>** 

General and administrative expenses for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Payroll costs: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term employee benefits | W | 88260 | 187278 | 85090 | 180706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit costs |  | 7861 | 15723 | 6587 | 13251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined contribution costs |  | 710 | 1696 | 482 | 1042 |
|  |  | 96831 | 204697 | 92159 | 194999 |
|  Depreciation and amortization: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property and equipment |  | 18063 | 35947 | 17604 | 34967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets |  | 4270 | 8460 | 13541 | 27025 |
|  |  | 22333 | 44407 | 31145 | 61992 |
|  Other: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee welfare benefits |  | 10496 | 20091 | 9209 | 19125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rent expenses |  | 1290 | 3197 | 2305 | 4650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes and dues |  | 6553 | 15858 | 6377 | 14403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising expenses |  | 2945 | 4838 | 3816 | 5292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electronic data processing expenses |  | 23466 | 45664 | 22466 | 44464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees and charges |  | 2468 | 25107 | 2271 | 22733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 10427 | 21546 | 10522 | 20195 |
|  |  | 57645 | 136301 | 56966 | 130862 |
|  | W | 176809 | 385405 | 180270 | 387853 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**34. <u>Other Non-Operating Income and Expense</u>** 

Other non-operating income and expense for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Other non-operating income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of property and equipment | W | 39 | 1113 | 8 | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income on investment property |  | 216 | 431 | 195 | 406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 7428 | 9146 | 73 | 1339 |
|  |  | 7683 | 10690 | 276 | 1872 |
|  Other non-operating expenses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of property and equipment |  | (460) | (1735) | (154) | (881) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of investment property |  | (444) | (874) | (439) | (877) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Donations |  | (340) | (5045) | (441) | (566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | (282) | (1870) | (121) | (2209) |
|  |  | (1526) | (9524) | (1155) | (4533) |
|  | W | 6157 | 1166 | (879) | (2661) |

---

**35. <u>Income Tax Expense</u>** 

(1) Income tax expense for the three-month and six-month periods ended
June 30, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Current income tax (\*) | W | 199924 | 305654 | (100159) | 207826 |
|  Net adjustments for prior years |  |  | 57293 | (17774) | (217116) |
|  Changes in deferred income taxes on temporary differences |  | 251339 | 431988 | 595707 | 354864 |
|  Deferred income tax recognized directly to equity |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income |  | 201987 | 154360 | (26032) | 116348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  | (272015) | (276155) | (103183) | (103441) |
|  Income tax expense | W | 381235 | 673140 | 348559 | 358481 |

---

(\*) Includes changes such as those that arise from final tax returns.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**35. <u>Income Tax Expense, Continued</u>** 

(2) Profit before income taxes and income tax expense for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  Profit before income taxes | W | 2581545 | 2032297 |
|  Income taxes calculated using enacted tax rates |  | 681529 | 536526 |
|  Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible losses and tax-free gains |  | (45261) | (49178) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-recognition effect of deferred income taxes and others |  | 31145 | (79243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net adjustments for prior years |  | (37010) | (68943) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 42737 | 19319 |
|  |  | (8389) | (178045) |
|  Income tax expense | W | 673140 | 358481 |
|  Effective tax rate (%) |  | 26.08 | 17.64 |

---

(3) Changes in income tax expense recognized directly to equity for the six-month periods ended June 30, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **January 1, 2025** | **January 1, 2025** | **Changes in**<br>**tax effect** |
|  | **Amounts<br>before tax** | **Amounts<br>before tax** | **Tax effect** | **Amounts<br>before tax** | **Tax effect** | **Changes in**<br>**tax effect** |
|  Net gain on securities measured at FVOCI | W | 532872 | (140678) | 1232007 | (325250) | 184572 |
|  Exchange differences on translation of foreign operations |  | 236742 |  | 408725 |  |  |
|  Net gain on valuation of cash flow hedge |  |  |  | 1045 | (276) | 276 |
|  Net loss on hedges of net investments in foreign operations |  | (179127) | 47289 | (283997) | 74976 | (27687) |
|  Remeasurements of defined benefit liabilities |  | 97330 | (25694) | 97330 | (25694) |  |
|  Fair value changes on financial liabilities designated at fair value due to credit risk |  | 89228 | (23557) | 78615 | (20756) | (2801) |
|  | W | 777045 | (142640) | 1533725 | (297000) | 154360 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**35. <u>Income Tax Expense, Continued</u>** 

Income tax benefit recognized direct to retained earnings amounting to W276,155 million is the tax effect of realized income amounting to W1,046,043 million from disposal of equity securities measured at FVOCI.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **January 1, 2024** | **January 1, 2024** | **Changes in**<br>**tax effect** |
|  | **Amounts<br>before tax** | **Amounts<br>before tax** | **Tax effect** | **Amounts<br>before tax** | **Tax effect** | **Changes in**<br>**tax effect** |
|  Net gain on securities measured at FVOCI | W | 2280374 | (602019) | 2619245 | (691480) | 89461 |
|  Exchange differences on translation of foreign operations |  | 287174 |  | 152225 |  |  |
|  Net gain on valuation of cash flow hedge |  | 2527 | (667) | 4034 | (1065) | 398 |
|  Net loss on hedges of net investments in foreign operations |  | (209407) | 55284 | (117276) | 30961 | 24323 |
|  Remeasurements of defined benefit liabilities |  | 120558 | (31826) | 120558 | (31826) |  |
|  Fair value changes on financial liabilities designated at fair value due to credit risk |  | 90948 | (24012) | 99153 | (26178) | 2166 |
|  | W | 2572174 | (603240) | 2877939 | (719588) | 116348 |

---

Income tax benefit recognized direct to retained earnings amounting to W103,441 million is the tax effect of realized income amounting to W391,821 million from disposal of equity securities measured at FVOCI.

(4) Global Minimum Corporate Tax Act

The Bank applies the temporary exception under Korean IFRS No. 1012 Income Taxes and does not recognize deferred tax assets or liabilities related to the Pillar 2 legislation, nor does it disclose information related to deferred taxes.

Under the legislation, the parent company is required to pay, in Republic of Korea, top-up tax on profits of its subsidiaries that are taxed at an effective tax rate of less than 15%. However, since most jurisdictions either qualify for the transitional relief provisions or already have an effective tax rate of 15% or higher, it is anticipated that no significant additional taxes will arise. As a result, the Bank has not recognized any amount related to the Global Minimum Corporate Tax Act in its current period income tax expense. The estimated annual effective tax rate is subject to change due to various factors, including tax incentives received by subsidiaries and adjustments to accounting profit or loss for the calculation of GloBE income as required under applicable laws in subsequent periods. Accordingly, the current tax expense related to Pillar 2 is exposed to estimation uncertainty.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**36. <u>Earnings per Share</u>** 

(1) Basic earnings per share

The Bank's basic earnings per share for the three-month and six-month periods ended June 30, 2025 and 2024 are computed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) Basic earnings per share

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Three-month**<br>**period ended** | **Three-month**<br>**period ended** | **Six-month**<br>**period ended** | **Three-month**<br>**period ended** | **Six-month**<br>**period ended** |
|  Profit attributable to ordinary shareholders of the Bank (A) (in won) | W | 890692667996 | 1908404946662 | 1080681694796 | 1673815643907 |
|  Weighted-average number of ordinary shares outstanding (B) |  | 5332154186 | 5299862376 | 5203672208 | 5001085394 |
|  Basic earnings per share (A/B) (in won) | W | 167 | 360 | 208 | 335 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Weighted-average number of ordinary shares outstanding

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | **Number of<br>ordinary shares** | **Days** | **Cumulative shares** |
|  Three-month period ended**:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Number of ordinary shares outstanding (A) | 5263311768 | 91 | 478961370888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (B) | 13000000 | 91 | 1183000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (C) | 31100000 | 91 | 2830100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (D) | 77640000 | 29 | 2251560000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative shares (E = A+B+C+D) |  |  | 485226030888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average number of ordinary shares outstanding (E/91) |  |  | 5332154186 |
|  Six-month period ended**:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Number of ordinary shares outstanding (A) | 5263311768 | 181 | 952659430008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (B) | 13000000 | 118 | 1534000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (C) | 31100000 | 91 | 2830100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (D) | 77640000 | 29 | 2251560000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative shares (E = A+B+C+D) |  |  | 959275090008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average number of ordinary shares outstanding (E/181) |  |  | 5299862376 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**36. <u>Earnings per Share, Continued</u>** 

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** |
|  | **Number of<br>ordinary shares** | **Days** | **Cumulative shares** |
|  Three-month period ended**:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Number of ordinary shares outstanding (A) | 4785311768 | 91 | 435463370888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (B) | 400000000 | 91 | 36400000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (C) | 16800000 | 62 | 1041600000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (D) | 24200000 | 26 | 629200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative shares (E = A+B+C+D) |  |  | 473534170888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average number of ordinary shares outstanding (E/91) |  |  | 5203672208 |
|  Six-month period ended**:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Number of ordinary shares outstanding (A) | 4785311768 | 182 | 870926741776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (B) | 400000000 | 94 | 37600000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (C) | 16800000 | 62 | 1041600000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increased paid-in capital (D) | 24200000 | 26 | 629200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative shares (E = A+B+C+D) |  |  | 910197541776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average number of ordinary shares outstanding (E/182) |  |  | 5001085394 |

---

(2) Diluted earnings per share

Diluted and basic earnings per share for the three-month and six-month periods ended June 30, 2025 and 2024 are equal because there is no potential dilutive instrument.

**37. <u>Pledged Assets</u>** 

Assets pledged by the Bank as collateral as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  Securities measured at FVTPL (\*) | W | 535437 |  | 1522739 |
|  Securities measured at FVOCI (\*) |  | 1264532 |  | 1831157 |
|  Securities measured at amortized cost (\*) |  | 3709375 |  | 3382755 |
|  | W | 5509344 |  | 6736651 |

---

(\*) Pledged as collateral related to bonds sold under repurchase agreements and borrowings.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**38. <u>Guarantees and Commitments</u>** 

Guarantees and commitments as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30,**<br>**2025** | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
|  Confirmed acceptances and guarantees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances in foreign currency | W | 136220 | 208758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees for bond issuance |  | 2826925 | 2751485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees for loans |  | 408073 | 468067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter of guarantee |  | 86997 | 42741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees for on-lending debt |  | 1353 | 1440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 8653976 | 8882851 |
|  |  | 12113544 | 12355342 |
|  Unconfirmed acceptances and guarantees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter of credit |  | 1881027 | 2010549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 4376647 | 4976884 |
|  |  | 6257674 | 6987433 |
|  Commitments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments on loans |  | 58516253 | 56312320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 11736123 | 11377587 |
|  |  | 70252376 | 67689907 |
|  | W | 88623594 | 87032682 |

---

**39. <u>Trust Accounts</u>** 

(1) Trust accounts as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,**<br>**2025** | **June 30,**<br>**2025** | **December 31,**<br>**2024** | **December 31,**<br>**2024** |
|  Accrued trust fee | W | 15923 |  | 10540 |
|  Borrowings from trust accounts |  | 959032 |  | 913507 |
|  Accrued expense |  | 3945 |  | 3269 |

---

(2) Transactions with trust accounts for the three-month and six-month periods ended June 30, 2025 and 2024
are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **Three-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** | **Three-month<br>period ended** | **Six-month<br>period ended** |
|  Trust management fee | W | 8912 | 17843 | 9005 | 18539 |
|  Interest expenses of borrowings from trust accounts |  | (8396) | (17016) | (15858) | (28710) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**39. <u>Trust Accounts, Continued</u>** 

(3) The carrying amounts of principals guaranteed trust and principals and interest guaranteed trust as of
June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,**<br>**2025** | **June 30,**<br>**2025** | **December 31,<br>2024** | **December 31,<br>2024** |
|  Principals guaranteed trust | W | 204805 |  | 209962 |
|  Principals and interest guaranteed trust |  | 201757 |  | 208636 |
|  | W | 406562 |  | 418598 |
|  Principal of money and property trust | W | 363264 |  | 377327 |
|  Accrued trust profit |  | 43298 |  | 41271 |

---

**40. <u>Related Party Transactions</u>** 

(1) The Bank's related parties as of June 30, 2025 are as follows:

---

| | |
|:---|:---|
| **Classification** | **Corporate name** |
|  Subsidiaries | KDB Capital Corporation, KDB Infrastructure Investment Asset Management Co., Ltd., KDB Life Insurance Co., Ltd., KDB Asia (HK) Ltd., KDB Ireland Ltd., KDB Bank Europe Ltd., Banco KDB Do Brazil S.A., KDB Bank Uzbekistan, PT KDB Tifa Finance Tbk and 6 others, KDB Investment PEF No. 2, KDB Small Medium Mezzanine PEF and 7 others, Principals guaranteed trust accounts of KDB, Principals and interests guaranteed interest trust accounts of KDB, KDB ESG 7th INC. and 16 others, KIAMCO Road Investment Private Fund Special Asset Trust 2 and 20 others |
|  Associates | Korea Electric Power Co., Ltd., Korea Tourism Organization, Korea Real Estate Board, GM Korea Company, HMM Co., Ltd., Hanjin KAL, Korea Air Lines Co., Ltd., Hanwha Ocean Co., Ltd., Korea Ocean Business Corporation, TAEYOUNG ENGINEERING & CONSTRUCTION and 15 others, Keistone Value Investment 2nd PEF and 106 others, Hana K-NewDeal Unicorn Fund and 122 others |
|  Others | Key management personnel |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**40. <u>Related Party Transactions, Continued</u>** 

(2) Significant balances with related parties as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Account** | **June 30,<br>2025** | **June 30,<br>2025** | **December 31,**<br>**2024** |
|  Subsidiaries: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Capital Corporation | Loans | W | 47 | 188 |
|  | Derivative financial assets |  |  | 1904 |
|  | Deposits |  | 70 | 28 |
|  | Other liabilities |  | 36468 | 37040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Infrastructure Investment Asset Management Co., Ltd. | Deposits |  | 30902 | 45749 |
|  | Other liabilities |  | 180 | 329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Ireland Ltd. | Loans |  | 1044963 | 1052396 |
|  | Allowance for loan losses |  | (543) | (548) |
|  | Derivative financial assets |  | 1514 | 858 |
|  | Other assets |  | 4871 | 7881 |
|  | Derivative financial liabilities |  | 5846 | 14535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Bank Europe Ltd. | Cash and due from banks |  | 739808 | 715339 |
|  | Loans |  | 79590 | 76437 |
|  | Allowance for loan losses |  | (41) | (40) |
|  | Other assets |  | 4578 | 5313 |
|  | Derivative financial liabilities |  | 103 | 174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banco KDB Do Brazil S.A. | Cash and due from banks |  | 158699 | 191100 |
|  | Loans |  | 348595 | 374850 |
|  | Allowance for loan losses |  | (210) | (227) |
|  | Other assets |  | 5554 | 10260 |
|  | Allowance of other assets |  | (2) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT KDB Tifa Finance Tbk | Loans |  | 27128 | 29400 |
|  | Allowance for loan losses |  | (14) | (15) |
|  | Other assets |  | 4264 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Silicon Valley LLC | Deposits |  | 62394 | 85260 |
|  | Other liabilities |  | 534 | 668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Asia (HK) Ltd. | Cash and due from banks |  | 1141211 | 1279558 |
|  | Loans |  |  | 73500 |
|  | Allowance for loan losses |  |  | (39) |
|  | Other assets |  | 5939 | 9055 |
|  | Allowance of other assets |  |  | (1) |
|  | Deposits |  | 2 | 2 |
|  | Derivative financial liabilities |  | 2537 | 4089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Bank Uzbekistan | Cash and due from banks |  | 278062 | 176400 |
|  | Loans |  | 23877 | 147000 |
|  | Allowance for loan losses |  | (12) | (77) |
|  | Other assets |  | 1278 | 2690 |
|  | Allowance of other assets |  |  | (1) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**40. <u>Related Party Transactions, Continued</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Account** | **June 30,<br>2025** | **June 30,<br>2025** | **December 31,**<br>**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Consus Value PEF | Securities | W |  | 265501 |
|  | Allowance of securities |  |  | (25) |
|  | Derivative financial assets |  |  | 95933 |
|  | Other assets |  |  | 22728 |
|  | Deposits |  |  | 26 |
|  | Other liabilities |  |  | 42303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Life Insurance Co., Ltd. | Securities |  | 253568 |  |
|  | Allowance of securities |  | (29) |  |
|  | Derivative financial assets |  | 8054 |  |
|  | Other assets |  | 21749 |  |
|  | Deposits |  | 9 |  |
|  | Derivative financial liabilities |  | 1832 |  |
|  | Other liabilities |  | 40128 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Liquidity Assistance Agency Co., Ltd. | Deposits |  | 1084209 | 1077427 |
|  | Other liabilities |  | 321 | 359 |
|  | Other provisions |  |  | 242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Loans |  | 489202 | 428846 |
|  | Allowance for loan losses |  | (64803) | (69899) |
|  | Derivative financial assets |  | 2140 | 2257 |
|  | Other assets |  | 1033 | 2396 |
|  | Allowance of other assets |  | (3) | (4) |
|  | Deposits |  | 74795 | 105742 |
|  | Borrowings |  | 45402 | 59997 |
|  | Other liabilities |  | 1542 | 1349 |
|  | Other provisions |  | 7265 | 4467 |
|  Associates: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Electric Power Co., Ltd. | Securities |  | 137304 | 192138 |
|  | Loans |  | 306550 | 335939 |
|  | Allowances for loan losses |  | (783) | (903) |
|  | Derivative financial assets |  | 41105 | 2350 |
|  | Other assets |  | 5161 | 5152 |
|  | Deposits |  | 356756 | 116622 |
|  | Borrowings |  | 1287 | 1454 |
|  | Derivative financial liabilities |  | 244738 | 650949 |
|  | Other liabilities |  | 50227 | 51157 |
|  | Other provisions |  | 94 | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HMM Co., Ltd. | Securities |  |  | 1269495 |
|  | Loans |  | 71386 | 84977 |
|  | Allowances for loan losses |  | (229) | (572) |
|  | Other assets |  | 567 | 2272 |
|  | Deposits |  | 1086120 | 883000 |
|  | Other liabilities |  | 51462 | 30038 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**40. <u>Related Party Transactions, Continued</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Account** | **June 30,<br>2025** | **June 30,<br>2025** | **December 31,**<br>**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HANJIN KAL | Loans | W | 346118 | 428891 |
|  | Allowances for loan losses |  |  | (2636) |
|  | Other assets |  | 999 | 529 |
|  | Deposits |  |  | 2000 |
|  | Other liabilities |  | 337 | 344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean Air Lines Co., Ltd. | Loans |  | 1238788 | 2425714 |
|  | Allowances for loan losses |  | (1935) | (27726) |
|  | Derivative financial assets |  | 1792 | 10235 |
|  | Other assets |  | 5483 | 8880 |
|  | Deposits |  | 1257043 | 2106944 |
|  | Derivative financial liabilities |  | 59517 | 154167 |
|  | Other liabilities |  | 64247 | 67252 |
|  | Other provisions |  | 178 | 5493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Ocean Business Corporation | Securities |  | 77672 | 62304 |
|  | Other assets |  | 584 | 481 |
|  | Other liabilities |  | 216 | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanwha Ocean Co., Ltd. | Securities |  | 64 | 64 |
|  | Loans |  | 2534475 | 2838142 |
|  | Allowances for loan losses |  | (35807) | (90160) |
|  | Derivative financial assets |  | 150700 | 339872 |
|  | Other assets |  | 8432 | 9141 |
|  | Deposits |  | 3229 | 9807 |
|  | Borrowings |  | 39031 | 5136 |
|  | Other liabilities |  | 13931 | 13865 |
|  | Other provisions |  | 72410 | 138484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TAEYOUNG ENGINEERING & CONSTRUCTION | Loans |  | 168216 | 179000 |
|  | Allowances for loan losses |  | (25022) | (17856) |
|  | Deposits |  | 71949 | 57505 |
|  | Other liabilities |  | 1033 | 728 |
|  | Other provisions |  | 26186 | 40336 |
|  Associates: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Securities |  | 18967 | 17353 |
|  | Loans |  | 404042 | 418933 |
|  | Allowances for loan losses |  | (25942) | (18853) |
|  | Derivative financial assets |  |  | 8677 |
|  | Other assets |  | 7460 | 8138 |
|  | Deposits |  | 419631 | 478254 |
|  | Derivative financial liabilities |  | 176 |  |
|  | Other liabilities |  | 3053 | 3196 |
|  | Other provisions |  | 26607 | 40441 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**40. <u>Related Party Transactions, Continued</u>** 

(3) Significant profit or loss with related parties for the six-month periods ended June 30, 2025 and 2024 are
as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Account** | **2025** | **2025** | **2024** |
|  Subsidiaries: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Capital Corporation | Interest income | W | 12 | 5 |
|  | Dividend income |  | 40070 | 31435 |
|  | Fees and commission income, other income |  | 1874 | 5149 |
|  | Interest expenses |  | (573) | (625) |
|  | Other operating expenses |  | (1904) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Infrastructure Investments Asset Management Co., Ltd. | Dividend income |  | 14518 | 13886 |
|  | Interest expenses |  | (642) | (425) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Ireland Ltd. | Interest income |  | 24040 | 25963 |
|  | Fees and commission income, other income |  | 12244 | 3605 |
|  | Interest expenses |  |  | (14) |
|  | Provision for loan losses |  | (30) | (12) |
|  | Other operating expenses |  | (7481) | (15114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Bank Europe Ltd. | Interest income |  | 15872 | 17109 |
|  | Reversal of allowance for loan losses |  |  | 7 |
|  | Fees and commission income, other income |  | 78 | 20 |
|  | Other operating expenses |  | (72) | (113) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banco KDB Do Brazil S.A. | Interest income |  | 12705 | 11689 |
|  | Reversal of allowance for loan losses |  | 3 | 20 |
|  | Other operating expenses |  | (2) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT KDB Tifa Finance Tbks | Interest income |  | 720 | 819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Silicon Valley LLC | Interest expenses |  | (1328) | (2373) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Asia (HK) Ltd. | Interest income |  | 29921 | 42066 |
|  | Dividend income |  | 6815 |  |
|  | Reversal of allowance for loan losses |  | 37 |  |
|  | Fees and commission income, other income |  | 1337 | 563 |
|  | Interest expenses |  |  | (196) |
|  | Provision for loan losses |  |  | (33) |
|  | Other operating expenses |  | (1133) | (101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Bank Uzbekistan | Interest income |  | 7015 | 4239 |
|  | Reversal of allowance for loan losses |  | 64 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Consus Value PEF | Interest income |  |  | 10103 |
|  | Fees and commission income, other income |  | 483 | 50872 |
|  | Interest expenses |  |  | (13) |
|  | Other operating expenses |  |  | (204) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**40. <u>Related Party Transactions, Continued</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Account** | **2025** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Life Insurance Co., Ltd. | Interest income | W | 9667 |  |
|  | Fees and commission income, other income |  | 6005 |  |
|  | Interest expenses |  | (11) |  |
|  | Other operating expenses |  | (43947) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Liquidity Assistance Agency Co., Ltd. | Interest income |  |  | 10065 |
|  | Fees and commission income, other income |  | 242 |  |
|  | Interest expenses |  | (7226) | (7128) |
|  | Other operating expenses |  |  | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Interest income |  | 9441 | 9879 |
|  | Dividend income |  | 21419 | 67907 |
|  | Reversal of allowance for loan losses |  | 712 | 719 |
|  | Fees and commission income, other income |  | 11175 | 26218 |
|  | Interest expenses |  | (1370) | (2063) |
|  | Provision for loan losses |  | (885) |  |
|  | Other operating expenses |  | (2229) | (6084) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Associates: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Electric Power Co., Ltd. | Interest income |  | 12363 | 12662 |
|  | Dividend income |  | 44993 |  |
|  | Reversal of allowance for loan losses |  | 120 | 288 |
|  | Fees and commission income, other income |  | 454438 | 48780 |
|  | Interest expenses |  | (4666) | (7169) |
|  | Other operating expenses |  | (176646) | (352959) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HMM Co., Ltd. | Interest income |  | 3706 | 13089 |
|  | Dividend income |  | 178320 | 140840 |
|  | Reversal of allowance for loan losses |  | 343 |  |
|  | Fees and commission income, other income |  | 89514 | 2098 |
|  | Interest expenses |  | (27079) | (4274) |
|  | Provision for loan losses |  |  | (12) |
|  | Other operating expenses |  | (6854) | (11723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HANJIN KAL | Interest income |  | 5381 | 5823 |
|  | Dividend income |  | 2542 | 2119 |
|  | Reversal of allowance for loan losses |  | 2636 | 600 |
|  | Fees and commission income, other income |  | 15 | 15 |
|  | Interest expenses |  | (55) | (37) |
|  | Other operating expenses |  | (2773) | (10629) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**40. <u>Related Party Transactions, Continued</u>** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Account** | **2025** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Air Lines Co., Ltd. | Interest income | W | 35368 | 37394 |
|  | Dividend income |  | 9180 | 9180 |
|  | Reversal of allowance for loan losses |  | 25791 | 276 |
|  | Fees and commission income, other income |  | 170451 | 49145 |
|  | Interest expenses |  | (26886) | (36486) |
|  | Other operating expenses |  | (75728) | (214246) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Ocean Business Corporation | Interest income |  | 1539 | 1763 |
|  | Fees and commission income, other income |  | 813 | 502 |
|  | Interest expenses |  |  | (222) |
|  | Other operating expenses |  | (8) | (1190) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanwha Ocean Co., Ltd. | Interest income |  | 51773 | 46453 |
|  | Reversal of allowance for loan losses |  | 54353 | 68417 |
|  | Fees and commission income, other income |  | 97277 | 701601 |
|  | Interest expenses |  | (1161) | (7609) |
|  | Other operating expenses |  | (196631) | (52133) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TAEYOUNG ENGINEERING & CONSTRUCTION | Interest income |  | 3212 |  |
|  | Fees and commission income, other income |  | 14150 |  |
|  | Interest expenses |  | (139) |  |
|  | Provision for loan losses |  | (7166) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Interest income |  | 7742 | 9717 |
|  | Dividend income |  | 111368 | 193799 |
|  | Reversal of allowance for loan losses |  | 77 | 116063 |
|  | Fees and commission income, other income |  | 18043 | 11372 |
|  | Interest expenses |  | (2667) | (4792) |
|  | Provision for loan losses |  | (7166) | (10940) |
|  | Other operating expenses |  | (2519) | (76538) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**40. <u>Related Party Transactions, Continued</u>** 

(4) Details of guarantees and commitments to the related parties as of June 30, 2025 and December 31,
2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Account** | **June 30, 2025** | **June 30, 2025** | **December 31,<br>2024** |
|  Subsidiaries: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Capital Corporation | Commitments | W | 500000 | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Consus Value PEF | Confirmed acceptances and guarantees |  |  | 132840 |
|  | Commitments |  |  | 11519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KDB Life Insurance Co., Ltd. | Confirmed acceptances and guarantees |  | 132840 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Liquidity Assistance Agency Co., Ltd. | Commitments |  |  | 560000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Commitments |  | 1831035 | 1054869 |
|  Associates: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korean Air Lines Co., Ltd. | Confirmed acceptances and guarantees |  | 170105 | 227666 |
|  | Commitments |  | 153000 | 454224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanwha Ocean Co., Ltd. (\*) | Confirmed acceptances and guarantees |  | 4191803 | 3729088 |
|  | Unconfirmed acceptances and guarantees |  | 2148860 | 2583277 |
|  | Commitments |  | 3121401 | 1779609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | Commitments |  | 2073667 | 403113 |
|  |  | W | 14322711 | 11436205 |

---

(\*) For the six-month period ended June 30, 2024, Hanwha Ocean Co., Ltd. was reclassified as an associate due to the loss of control.

(5) Details of compensation to key management personnel for the six-month periods ended June 30, 2025 and 2024
are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  Short-term employee benefits | W | 321 |  | 182 |
|  Post-employment benefits |  | 8 |  |  |
|  |  | 329 |  | 182 |

---

(6) The Bank are not pledged any assets as collaterals to the related parties and from the related parties as of
June 30, 2025 and December 31, 2024.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**41. <u>Statements of Cash Flows</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Cash and cash equivalents in the separate statements of cash flows as of June 30, 2025 and 2024 are as
follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** |
|  Cash and due from banks: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and foreign currencies | W | 67780 | 71123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks in Korean won |  | 2699122 | 3658006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from banks in foreign currencies |  | 9721056 | 8951566 |
|  |  | 12487958 | 12680695 |
|  Less: Restricted due from banks, others |  | (3147175) | (3126296) |
|  Add: Financial instruments reaching maturity within three months from date of acquisition |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government bonds |  |  | 10006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Call-loans |  | 1645310 | 3260267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter-bank loans |  | 3416166 | 1379689 |
|  |  | 5061476 | 4639956 |
|  |  | 5061476 | 4649962 |
|  | W | 14402259 | 14204361 |

---

(2) Significant transactions not involving cash flows for the six-month periods ended June 30, 2025 and 2024
are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  Decrease in loans due to write-offs | W |  | 363 |
|  Increase in securities measured at FVOCI due to debt-to-equity swap |  | 32 | 37301 |
|  Increase in investments in subsidiaries and associates due to debt-to-equity swap |  |  | 54719 |
|  Decrease in accumulated other comprehensive income due to securities valuation |  | (699135) | (338871) |
|  Deferred income tax effect due to securities valuation |  | 184572 | 89461 |
|  Reclassification from investments in subsidiaries and associates to securities measured at FVOCI |  | 1399680 | 544800 |
|  Transfer between property and equipment and investment property |  | 1712 | (10781) |
|  Recognition of right-of-use assets and lease liabilities |  | 23990 | 15638 |
|  In-kind equity |  |  | 1999780 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**42. <u>Transfers of Financial Instruments</u>** 

Details of financial assets and liabilities related to repurchase agreements and loaned securities that do not qualify for derecognition as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| <br>Characteristics of transactions | **Carrying<br>amounts for<br>transferred<br>assets** | **Carrying<br>amounts for<br>transferred<br>assets** | **Carrying<br>amounts for<br>related<br>liabilities** | **Carrying<br>amounts for<br>transferred<br>assets** | **Carrying<br>amounts for<br>related<br>liabilities** |
|  Repurchase agreements | W | 390000 | 124025 | 520000 | 47181 |
|  Loaned securities |  | 140713 |  | 40409 |  |
|  |  | W530,713 | 124025 | 560409 | 47181 |

---

**43. <u>Fair Value of Financial Assets and Liabilities</u>** 

The Bank classifies and discloses fair value of the financial instruments into the following three-level hierarchy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial instruments measured at quoted prices from active markets are classified as level 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable market data are classified as level 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are not based on observable market data are classified as level 3.

***(1) Fair value hierarchy of financial instruments measured at fair value***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The fair value hierarchy of financial instruments measured at fair value as of June 30, 2025 and
December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL | W | 3217493 | 1374468 | 15188184 | 19780145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 2032852 | 14885693 | 13055040 | 29973585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at FVTPL |  |  |  | 436988 | 436988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  |  | 8357539 | 178 | 8357717 |
|  | W | 5250345 | 24617700 | 28680390 | 58548435 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities designated at FVTPL | W |  | 2126367 |  | 2126367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  |  | 8097612 | 12195 | 8109807 |
|  | W |  | 10223979 | 12195 | 10236174 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**43. <u>Fair Value of Financial Assets and Liabilities, Continued</u>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL | W | 2804662 | 1391702 | 14222436 | 18418800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 1594047 | 16759867 | 14406279 | 32760193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at FVTPL |  |  |  | 419773 | 419773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  |  | 13914992 | 259 | 13915251 |
|  | W | 4398709 | 32066561 | 29048747 | 65514017 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL | W |  | 2389246 |  | 2389246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  |  | 14853546 | 20393 | 14873939 |
|  | W |  | 17242792 | 20393 | 17263185 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Changes in the fair value of level 3 financial instruments for the six-month periods ended June 30, 2025
and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Financial assets** | **Financial assets** | **Financial assets** | **Financial assets** | **Financial assets** | **Financial assets** | **Financial<br>liabilities** |
|  | **Securities<br>measured at<br>FVTPL** | **Securities<br>measured at<br>FVTPL** | **Securities<br>measured at<br>FVOCI** | **Loans<br>measured at<br>FVTPL** | **Derivative<br>financial<br>assets** | **Total** | **Derivative<br>financial<br>liabilities** |
|  January 1, 2025 | W | 14222436 | 14406279 | 419773 | 259 | 29048747 | 20393 |
|  Profit or loss |  | 573475 |  | (8904) | (81) | 564490 | (8198) |
|  Other comprehensive income |  |  | 166197 |  |  | 166197 |  |
|  Acquisition / Issue |  | 639929 | 144706 | 31000 |  | 815635 |  |
|  Sale / Settlement |  | (246569) | (148564) | (4881) |  | (400014) |  |
|  Transfer out (\*) |  | (1087) | (1513578) |  |  | (1514665) |  |
|  Others |  |  |  |  |  |  |  |
|  June 30, 2025 | W | 15188184 | 13055040 | 436988 | 178 | 28680390 | 12195 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**43. <u>Fair Value of Financial Assets and Liabilities, Continued</u>** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Financial assets** | **Financial assets** | **Financial assets** | **Financial assets** | **Financial assets** | **Financial assets** | **Financial<br>liabilities** |
|  | **Securities<br>measured at<br>FVTPL** | **Securities<br>measured at<br>FVTPL** | **Securities<br>measured at<br>FVOCI** | **Loans<br>measured at<br>FVTPL** | **Derivative<br>financial<br>assets** | **Total** | **Derivative<br>financial<br>liabilities** |
|  January 1, 2024 | W | 12706058 | 14844797 | 488432 | 278 | 28039565 | 22939 |
|  Profit or loss |  | 249185 |  | (15671) | (7) | 233507 | 2012 |
|  Other comprehensive income |  |  | (413598) |  |  | (413598) |  |
|  Acquisition / Issue |  | 694318 | 2120114 |  |  | 2814432 |  |
|  Sale / Settlement |  | (339373) | (183739) | (33952) |  | (557064) |  |
|  Transfer out (\*) |  | (4996) | (182468) |  |  | (187464) |  |
|  Others |  |  |  | 217 |  | 217 |  |
|  June 30, 2024 | W | 13305192 | 16185106 | 439026 | 271 | 29929595 | 24951 |

---

(\*) When significant inputs become observable market data, the financial instruments are transferred to (from) other levels.

(iii) Changes in deferred day one profit or loss related to level 3 financial instruments for the six-month periods
ended June 30, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  Beginning balance | W | 2829 | 3219 |
|  Amortization |  | (191) | (193) |
|  Ending balance | W | 2638 | 3026 |

---

(iv) Details of valuation technique and inputs used in the fair value measurement categorized within level 2 of the
fair value hierarchy of financial instruments measured at fair value as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Valuation technique** | **Input** |
|  Securities measured at FVTPL |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | Net asset value approach | Underlying asset price |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | Discounted cash flow method | Discount rate |
|  Securities measured at FVOCI |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | Net asset value approach | Underlying asset price |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | Discounted cash flow method | Discount rate |
|  Derivatives financial assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swaps | Discounted cash flow method, Black-Scholes model, Modified Black model, Formula model | Discount rate, exchange rate, volatility, commodity index, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency forwards and swaps | Discounted cash flow method, Black-Scholes model, Modified Black model, Formula model | Discount rate, exchange rate, volatility, commodity index, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency options | Discounted cash flow method, Black-Scholes model, Modified Black model, Formula model |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodities options |  |  |
|  Financial liabilities measured at FVTPL: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | Discounted cash flow method | Discount rate |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**43. <u>Fair Value of Financial Assets and Liabilities, Continued</u>** 

(v) Details of valuation technique and quantitative information about unobservable inputs used in the fair value
measurement categorized within level 3 of the fair value hierarchy of financial instruments measured at fair value as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Valuation technique** | **Unobservable input** | **Range (%)** |
|  Securities measured at FVTPL |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | Discounted cash flow method, Relative value approach, Net asset value approach, etc | Discount rate | 4.48 ~ 10.00 |
|  | Discounted cash flow method, Relative value approach, Net asset value approach, etc | Rate of increase in property disposal price |  |
|  | Discounted cash flow method, Relative value approach, Net asset value approach, etc | Rate of increase in liquidation value |  |
|  | Discounted cash flow method, Relative value approach, Net asset value approach, etc | Volatility | 17.55 ~ 56.71 |
|  Securities measured at FVOCI |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | Discounted cash flow method, Relative value approach, Net asset value approach, etc | Growth rate<br> Discount rate<br> Volatility<br> Interest Volatility | — <br> 5.79 ~ 13.66 <br> 24.53<br> 0.49 ~ 0.63  |
|  Loans measured at FVTPL Convertible bonds, etc. | LSMC, Binomial model | Volatility | 18.82 ~ 37.73 |
|  Derivatives financial assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swaps | Hull-White<br> Two-Factor model | Volatility | (10) ~ 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock index options | Discounted cash flow method, Relative value approach, Net asset value approach, Binomial Tree(T-F) | Volatility | 26.72 ~ 31.40 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Valuation technique** | **Unobservable input** | **Range (%)** |
|  Securities measured at FVTPL |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | Discounted cash flow method, Relative value approach, Net asset value approach, etc. | Discount rate | 4.87 ~ 10.32 |
|  | Discounted cash flow method, Relative value approach, Net asset value approach, etc. | Rate of increase in property disposal price |  |
|  | Discounted cash flow method, Relative value approach, Net asset value approach, etc. | Rate of increase in liquidation value |  |
|  | Discounted cash flow method, Relative value approach, Net asset value approach, etc. | Volatility | 18.36 ~ 56.61 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**43. <u>Fair Value of Financial Assets and Liabilities, Continued</u>** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Valuation technique** | **Unobservable input** | **Range (%)** |
|  Securities measured at FVOCI |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | Discounted cash flow method, Relative value approach, Net asset value approach, etc. | Growth rate<br> Discount rate<br> Volatility<br> Interest rate volatility | — <br> 6.01 ~ 16.03<br> 29.90 ~ 32.22 <br> 0.47 ~ 0.73 |
|  Loans measured at FVTPL |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible bonds, etc. | LSMC, Binomial model | Volatility | 18.76 ~ 35.92 |
|  Derivatives financial assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swaps | Hull-White<br> Two-Factor model | Volatility<br> Correlation coefficient | 0.68 ~ 0.85 <br> (70) ~ 100  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock index options | Discounted cash flow method, Relative value approach, Net asset value approach, Binomial Tree(T-F) | Volatility | 25.71 ~ 26.97 |

---

(vi) The sensitivity analysis on changes in unobservable inputs for financial instruments categorized within level 3
of the fair value hierarchy of financial instruments measured at fair value as of June 30, 2025 and December 31, 2024 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Profit (loss)** | **Profit (loss)** | **Profit (loss)** | **Other comprehensive<br>income(loss)** | **Other comprehensive<br>income(loss)** |
|  | **Favorable<br>change** | **Favorable<br>change** | **Unfavorable<br>change** | **Favorable**<br>**change** | **Unfavorable<br>change** |
|  Securities measured at FVTPL (\*1) | W | 83417 | (76895) |  |  |
|  Securities measured at FVOCI (\*1) |  |  |  | 83371 | (67899) |
|  Loans measured at FVTPL (\*2) |  | 1906 | (1569) |  |  |
|  Derivative financial assets (\*2) |  | 924 | (903) |  |  |
|  | W | 86247 | (79367) | 83371 | (67899) |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Profit(loss) for the year** | **Profit(loss) for the year** | **Profit(loss) for the year** | **Other comprehensive<br>income(loss)** | **Other comprehensive<br>income(loss)** |
|  | **Favorable<br>change** | **Favorable<br>change** | **Unfavorable<br>change** | **Favorable**<br>**change** | **Unfavorable<br>change** |
|  Securities measured at FVTPL (\*1) | W | 79721 | (168828) |  |  |
|  Securities measured at FVOCI (\*1) |  |  |  | 94580 | (71808) |
|  Loans measured at FVTPL (\*2) |  | 3876 | (3662) |  |  |
|  Derivative financial assets (\*2) |  | 252 | (239) |  |  |
|  | W | 83849 | (172729) | 94580 | (71808) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**43. <u>Fair Value of Financial Assets and Liabilities, Continued</u>** 

---

| | |
|:---|:---|
| (\*1) | Sensitivity amounts of equity securities are calculated by increasing and decreasing the correlations between the discount rates and the growth rates (0~1%) or the rate of increase in liquidation value (-1~1%) which are significant unobservable inputs. Sensitivity amounts for beneficiary certificates are calculated by increasing and decreasing the correlations between the discount rate of rent cash flow (-1~1%) and the rate of increase in property disposal price (-1~1%), only when they consist of real properties. Other than that, it is difficult to measure the sensitivity amounts of beneficiary certificates for practical reasons. Also, for financial instruments categorized within level 3 as of June 30, 2025 and December 31, 2024, W24,873,886 million and W24,518,096 million, respectively, are excluded from the sensitivity disclosure because it is impossible to calculate the sensitivity due to changes in unobservable variables for practical reasons.  |

---

---

| | |
|:---|:---|
| (\*2) | Sensitivity amounts of loans measured at FVTPL and derivatives financial instruments are calculated by increasing and decreasing the correlation coefficient and volatility (-10~10%) which are significant unobservable inputs.  |

---

(2) Fair value hierarchy of financial instruments measured at amortized cost

(i) The Bank's policies for measuring fair value of financial instruments at amortized costs are as follows:

Cash and due from banks: Fair value of cash is considered equivalent to the carrying amount. In the case of due from banks on demand, which do not have a set maturity and can be realized instantly, the carrying amount is a close estimate of the fair value and is assumed so. In the case of other ordinary due from banks, the cash flow discount method is used to estimate the fair value. <br>

- Securities measured at amortized cost: The fair value of securities measured at amortized cost is computed by widely-accepted appraisal agencies upon request.

Loans measured at amortized cost: The fair value of loans measured at amortized cost is the expected future cash flows, reflecting premature redemption ratio, discounted by the market interest rate, adjusted by a spread sheet considering the probability of default. Exceptions to this method include loans with credit line facilities, loans with a maturity of three months or less left and impaired loans, which the Bank assumes the carrying amount as the fair value. <br>

Deposits: The fair value of deposits is computed using the discounted cash flow method. However, for deposits, whose cash flows cannot be estimated reasonably, the Bank assumes the carrying amount as the fair value. <br>

Borrowings: The fair value of industrial financial debentures is computed using the discounted cash flow method by the Bank's Fair Value Evaluation System. However, for borrowings including call money whose contractual maturity is three months or less, the Bank assumes the carrying amount as the fair value. <br>

- Debentures: The fair value of industrial financial debentures is computed using the discounted cash flow method by the Bank's Fair Value Evaluation System.

Other financial assets and liabilities: The fair value of other financial assets and liabilities is computed using the discounted cash flow method. However, in cases cash flow cannot be estimated reasonably, the Bank assumes the carrying amount as the fair value. <br>

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**43. <u>Fair Value of Financial Assets and Liabilities, Continued</u>** 

(ii) The fair value hierarchy of financial instruments measured at amortized cost as of June 30, 2025 and
December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks (\*) | W | 9340783 | 3147175 |  | 12487958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 3243377 | 6472104 |  | 9715481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost (\*) |  |  | 1673479 | 206771166 | 208444645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets (\*) |  |  | 14606051 | 1624573 | 16230624 |
|  | W | 12584160 | 25898809 | 208395739 | 246878708 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits (\*) | W |  | 2340166 | 66306894 | 68647060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings (\*) |  |  | 4155400 | 25394267 | 29549667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  | 166688074 |  | 166688074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities (\*) |  |  | 12526899 | 5412343 | 17939242 |
|  | W |  | 185710539 | 97113504 | 282824043 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks (\*) | W | 9633962 | 3361559 |  | 12995521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 3492235 | 5444070 |  | 8936305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost (\*) |  |  | 2824285 | 207162934 | 209987219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets (\*) |  |  | 6105731 | 1691860 | 7797591 |
|  | W | 13126197 | 17735645 | 208854794 | 239716636 |
|  Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits (\*) | W |  | 2077635 | 64077827 | 66155462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings (\*) |  |  | 3975955 | 28621339 | 32597294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  | 167652781 |  | 167652781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities (\*) |  |  | 4427119 | 5313603 | 9740722 |
|  | W |  | 178133490 | 98012769 | 276146259 |

---

---

| | |
|:---|:---|
| (\*) | For financial instruments categorized as level 2, the carrying amount is considered as a reasonable approximation of the fair value and is thus, disclosed by fair value.  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**43. <u>Fair Value of Financial Assets and Liabilities, Continued</u>** 

(iii) Details of valuation technique and inputs used in the fair value measurement categorized within level 2 and
level 3 of the fair value hierarchy of financial instruments measured at amortized cost as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Valuation technique** | **Input** |
|  Level 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | Discounted cash flow method | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | Discounted cash flow method | Discount rate |
|  Level 3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | Discounted cash flow method | Credit spread, Other spread, Prepayment rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | Discounted cash flow method | Other spread |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | Discounted cash flow method | Other spread |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | Discounted cash flow method | Other spread |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | Discounted cash flow method | Other spread |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**44. <u>Categories of Financial Assets and Liabilities</u>** 

Categories of financial assets and liabilities as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Cash and<br>cash<br>equivalents** | **Cash and<br>cash<br>equivalents** | **Financial<br>instruments<br>measured<br>at FVTPL** | **Financial<br>instruments<br>designated<br>at FVTPL** | **Financial<br>instruments<br>measured<br>at FVOCI** | **Financial<br>instruments<br>designated<br>at FVOCI** | **Financial<br>instruments<br>measured at<br>amortized<br>cost** | **Hedging<br>purpose<br>derivative<br>instruments** | **Total** |
|  Financial assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | W | 9340783 |  |  |  |  | 3147175 |  | 12487958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  |  | 19780145 |  |  |  |  |  | 19780145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  |  |  |  | 15758282 | 14215303 |  |  | 29973585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  |  |  |  |  |  | 9715481 |  | 9715481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at FVTPL |  |  | 436988 |  |  |  |  |  | 436988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 5061476 |  |  |  |  | 202913347 |  | 207974823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  |  | 7496490 |  |  |  |  | 861227 | 8357717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  |  |  |  | 16232418 |  | 16232418 |
|  | W | 14402259 | 27713623 |  | 15758282 | 14215303 | 232008421 | 861227 | 304959115 |
|  Financial liabilities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL | W |  |  | 2126367 |  |  |  |  | 2126367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  |  |  |  |  | 68544231 |  | 68544231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  |  |  |  |  |  | 29608382 |  | 29608382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  |  |  |  |  | 164199041 |  | 164199041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  |  | 7616614 |  |  |  |  | 493193 | 8109807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  |  |  |  |  |  | 17984141 |  | 17984141 |
|  | W |  | 7616614 | 2126367 |  |  | 280335795 | 493193 | 290571969 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Cash and<br>cash<br>equivalents** | **Cash and<br>cash<br>equivalents** | **Financial<br>instruments<br>measured<br>at FVTPL** | **Financial<br>instruments<br>designated<br>at FVTPL** | **Financial<br>instruments<br>measured<br>at FVOCI** | **Financial<br>instruments<br>designated<br>at FVOCI** | **Financial<br>instruments<br>measured at<br>amortized<br>cost** | **Hedging<br>purpose<br>derivative<br>instruments** | **Total** |
|  Financial assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | W | 9633962 |  |  |  |  | 3361559 |  | 12995521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  |  | 18418800 |  |  |  |  |  | 18418800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  |  |  |  | 17412051 | 15348142 |  |  | 32760193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  |  |  |  |  |  | 8936305 |  | 8936305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at FVTPL |  |  | 419773 |  |  |  |  |  | 419773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 4241051 |  |  |  |  | 205240302 |  | 209481353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  |  | 13624445 |  |  |  |  | 290806 | 13915251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  |  |  |  | 7798105 |  | 7798105 |
|  | W | 13875013 | 32463018 |  | 17412051 | 15348142 | 225336271 | 290806 | 304725301 |
|  Financial liabilities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL | W |  |  | 2389246 |  |  |  |  | 2389246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  |  |  |  |  | 66100573 |  | 66100573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  |  |  |  |  |  | 32730518 |  | 32730518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  |  |  |  |  |  | 165102269 |  | 165102269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  |  | 13733198 |  |  |  |  | 1140741 | 14873939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  |  |  |  |  |  | 9778765 |  | 9778765 |
|  | W |  | 13733198 | 2389246 |  |  | 273712125 | 1140741 | 290975310 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**45. <u>Offsetting of Financial Assets and Liabilities</u>** 

Details of financial instruments subject to offsetting, enforceable master netting agreements or similar agreements as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial liabilities<br>set off in the<br>statement of<br>financial position** | **Net amounts of<br>financial assets<br>presented in the<br>statement of<br>financial position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Net amounts** |
| | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial liabilities<br>set off in the<br>statement of<br>financial position** | **Net amounts of<br>financial assets<br>presented in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash collateral<br>received** | **Net amounts** |
|  Derivative financial assets (\*) | W | 8357717 |  | 8357717 | 5781498 | 225911 | 2350308 |
|  Unsettled spot exchange receivables (\*) |  | 12243979 |  | 12243979 | 12241524 |  | 2455 |
|  Unsettled domestic exchange receivables |  | 6354746 | 3992673 | 2362073 |  |  | 2362073 |
|  Security pledged as collateral for repurchase agreements |  | 390000 |  | 390000 | 124025 |  | 265975 |
|  Reverse repurchase agreements |  | 2531400 |  | 2531400 | 2531400 |  |  |
|  Loaned securities |  | 140713 |  | 140713 | 140713 |  |  |
|  Receivables from securities transaction |  | 94861 |  | 94861 | 94861 |  |  |
|  | W | 30113416 | 3992673 | 26120743 | 20914021 | 225911 | 4980811 |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial assets set<br>off in the<br>statement of<br>financial position** | **Net amounts of<br>financial liabilities<br>presented in the<br>statement of<br>financial position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Net amounts** |
|  | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial assets set<br>off in the<br>statement of<br>financial position** | **Net amounts of<br>financial liabilities<br>presented in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash collateral<br>pledged** | **Net amounts** |
|  Derivative financial liabilities (\*) | W | 8109807 |  | 8109807 | 4335225 | 273736 | 3500846 |
|  Unsettled spot exchange payables (\*) |  | 12243437 |  | 12243437 | 12241524 |  | 1913 |
|  Unsettled domestic exchange payables |  | 4276136 | 3992673 | 283463 |  |  | 283463 |
|  Repurchase agreements |  | 124025 |  | 124025 | 124025 |  |  |
|  Payables from securities transaction |  | 80617 |  | 80617 | 80617 |  |  |
|  | W | 24834022 | 3992673 | 20841349 | 16781391 | 273736 | 3786222 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**45. <u>Offsetting of Financial Assets and Liabilities, Continued</u>** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial liabilities<br>set off in the<br>statement of<br>financial position** | **Net amounts of<br>financial assets<br>presented in the<br>statement of<br>financial position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Net amounts** |
|  | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial asset** | **Gross amounts of<br>recognized<br>financial liabilities<br>set off in the<br>statement of<br>financial position** | **Net amounts of<br>financial assets<br>presented in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash collateral<br>received** | **Net amounts** |
|  Derivative financial assets (\*) | W | 13915251 |  | 13915251 | 10019614 | 62644 | 3832993 |
|  Unsettled spot exchange receivables (\*) |  | 4171827 |  | 4171827 | 4171331 |  | 496 |
|  Unsettled domestic exchange receivables |  | 4246146 | 2312241 | 1933905 |  |  | 1933905 |
|  Security pledged as collateral for repurchase agreements |  | 520000 |  | 520000 | 47181 |  | 472819 |
|  Reverse repurchase agreements |  | 1676700 |  | 1676700 | 1676700 |  |  |
|  Loaned securities |  | 40409 |  | 40409 | 40409 |  |  |
|  Receivables from securities transaction |  | 4206 |  | 4206 | 4206 |  |  |
|  | W | 24574539 | 2312241 | 22262298 | 15959441 | 62644 | 6240213 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial assets set<br>off in the<br>statement of<br>financial position** | **Net amounts of<br>financial liabilities<br>presented in the<br>statement of<br>financial position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Related amounts not set off<br>in the statement of financial<br>position** | **Net amounts** |
|  | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial liabilities** | **Gross amounts of<br>recognized<br>financial assets set<br>off in the<br>statement of<br>financial position** | **Net amounts of<br>financial liabilities<br>presented in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash collateral<br>pledged** | **Net amounts** |
|  Derivative financial liabilities (\*) | W | 14873939 |  | 14873939 | 8518079 | 293465 | 6062395 |
|  Unsettled spot exchange payables (\*) |  | 4172071 |  | 4172071 | 4171331 |  | 740 |
|  Unsettled domestic exchange payables |  | 2567289 | 2312241 | 255048 |  |  | 255048 |
|  Repurchase agreements |  | 47181 |  | 47181 | 47181 |  |  |
|  Payables from securities transaction |  | 16102 |  | 16102 | 16102 |  |  |
|  | W | 21676582 | 2312241 | 19364341 | 12752693 | 293465 | 6318183 |

---

---

| | |
|:---|:---|
| (\*) | For the derivatives covered by the ISDA derivative contracts, all contracts are settled and the net amount of derivative contracts is measured and paid based on the liquidation value if the counterparty files for bankruptcy or has any credit issues.  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**46. <u>Operating Segments</u>** 

(1) The Bank has four reportable segments, as described below, which are the Bank's strategic business units.
They are managed separately because each business requires different technology and marketing strategies. The following summary describes general information about each of the Bank's reportable segments:

---

| | |
|:---|:---|
| **Segments** | **General information** |
|  Corporate finance | Provides trade finance and loans to corporate customers |
|  Investment finance | Provides consulting services to corporate such as capital finance, restructuring, etc. |
|  Asset management | Provides asset management services to individual and corporate customers |
|  Others | Any other segment not mentioned above |

---

(2) Operating income (loss) from external customers and among operating segments for the six-month periods ended
June 30, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Corporate<br>finance** | **Corporate<br>finance** | **Investment<br>finance** | **Asset<br>management** | **Others** | **Total** |
|  Operating income from external customers | W | 699406 | 1340062 | 18505 | 35351 | 2093324 |
|  Operating income (loss) from intersegment sales |  | (18646) | (925649) |  | 944295 |  |
|  | W | 680760 | 414413 | 18505 | 979646 | 2093324 |
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Corporate<br>finance** | **Corporate<br>finance** | **Investment<br>finance** | **Asset<br>management** | **Others** | **Total** |
|  Operating income from external customers | W | 1414993 | (126271) | 26145 | 345746 | 1660613 |
|  Operating income (loss) from intersegment sales |  | 5013 | 556092 |  | (561105) |  |
|  | W | 1420006 | 429821 | 26145 | (215359) | 1660613 |

---

(3) Details of segment results for the Bank's reportable segments for the six-month periods ended
June 30, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Corporate<br>finance** | **Corporate<br>finance** | **Investment<br>finance** | **Asset<br>management** | **Others** | **Total** |
|  Net interest income | W | 728437 | (328714) | 1016 | 141124 | 541863 |
|  Non-interest income |  |  |  |  |  |  |
|  Income related to securities (\*1) |  | 58539 | 293913 |  | 26839 | 379291 |
|  Other non-interest income |  | 140681 | 422939 | 21629 | 906821 | 1492070 |
|  |  | 199220 | 716852 | 21629 | 933660 | 1871361 |
|  Provision for loan losses and others (\*2) |  | 184 | 65340 |  | (19) | 65505 |
|  General and administrative expenses |  | (247081) | (39065) | (4140) | (95119) | (385405) |
|  Operating income | W | 680760 | 414413 | 18505 | 979646 | 2093324 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**46. <u>Operating Segments, Continued</u>** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Corporate<br>finance** | **Corporate<br>finance** | **Investment<br>finance** | **Asset<br>management** | **Others** | **Total** |
|  Net interest income | W | 852264 | (304278) | 8808 | 5960 | 562754 |
|  Non-interest income |  |  |  |  |  |  |
|  Income related to securities (\*1) |  | 133189 | 51769 |  | 68254 | 253212 |
|  Other non-interest income |  | 343865 | 722588 | 21598 | (189906) | 898145 |
|  |  | 477054 | 774357 | 21598 | (121652) | 1151357 |
|  Provision for loan losses and others (\*2) |  | 338074 | (2262) |  | (1457) | 334355 |
|  General and administrative expenses |  | (247386) | (37996) | (4261) | (98210) | (387853) |
|  Operating income | W | 1420006 | 429821 | 26145 | (215359) | 1660613 |

---

(\*1) Income related to securities is composed of net gain (loss) on securities measured at FVTPL, securities measured at FVOCI and securities measured at amortized cost.

(\*2) Provision for loan losses and others comprises of provision for loan losses, provision for derivative credit risks, gains (losses) on sales of loans, and increase (reversal) of provision.

(4) Geographical revenue information about the Bank's operating segments for the six-month periods ended
June 30, 2025 and 2024 and the geographical non-current asset information as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Revenues (\*1)** | **Revenues (\*1)** | **Revenues (\*1)** | **Non-current assets (\*2)** | **Non-current assets (\*2)** |
|  | **2025** | **2025** | **2024** | **June 30,<br>2025** | **December 31,<br>2024** |
|  Domestic | W | 43582110 | 33157231 | 35473061 | 34059881 |
|  Overseas |  | 2593363 | 2757221 | 119097 | 122342 |
|  | W | 46175473 | 35914452 | 35592158 | 34182223 |

---

(\*1) Revenues consist of interest income, fees and commission income, dividend income, income related to securities, foreign currency transaction gain, gain on derivatives, other operating income and provision for loan losses.

(\*2) Non-current assets consist of investments in subsidiaries and associates, property and equipment, investment property and intangible assets.

**47. <u>Risk Management</u>** 

***(1) Introduction***

&nbsp;&nbsp;&nbsp;&nbsp;***(i) Objectives and principles***

The Bank's risk management aims to maintain financial soundness and effectively manage various risks pertinent to the nature of the Bank's business. The Bank has set up and fulfilled policies to manage risks timely and effectively. Pursuant to the policies, the Bank's risks shall be

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• managed comprehensively and independently,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recognized timely, evaluated exactly and managed effectively,

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintained to the extent that the risks balance with profit,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diversified appropriately to avoid concentration on specific segments,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• managed to prevent excessive exposure by the setting up and managing of tolerance limits and guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;***(ii) Risk management strategy and process***

The Bank's risk management business is separated into two different stages; the 'metrification stage,' in which risks are estimated and monitored, and the 'integration stage,' in which information gained during the risk management process is integrated and used in management strategies. Risk management is recognized as a key component of the Bank's management and seeks to change from its previously adaptive and limited role to more leading and comprehensive role.

Furthermore, the Bank focuses on consistent communication among different departments to establish a progressive consensus on risk management.

&nbsp;&nbsp;&nbsp;&nbsp;***(iii) Risk management governance***

*Risk Management Committee* 

The Bank's Risk Management Committee (the "Committee") is composed of the President of the committee (an outside director), and three other commissioners. The Committee functions to establish policies of risk management, evaluate the capital adequacy of the Bank, discuss material issues relating to risk management, and present preliminary decisions on such matters.

*The CEO of the Bank and the head of Risk Management Segment* 

The CEO of the Bank, according to the policies of risk management, performs his or her role to manage and direct risk management to sustain efficiency and internal control. The head of the Risk Management Segment is responsible for supervising the overall administration of the Bank's risk management business and providing risk-related information to members of the board of directors and the Bank's management.

*Risk Management Policy Committee* 

The Bank's Risk Management Policy Committee is composed of the leaders of all business segments. and exercises its role to decide important matters relating to the Bank's portfolio including allocating internal capital limits by segment and setting exposure limits by industry within the scope that Risk Management Committee regulated.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;***(iv) Performance of risk management committee***

The Risk Management Committee performs comprehensive reviews of all the affairs related to risk management and deliberates the decisions of the board of directors. For the year ended June 30, 2025, the key activities of the Risk Management Committee are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Major decision

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risk management plan for 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Setting and managing exposure limits by country for 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contingency funding plan for 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Major reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Result of ex-post validation of credit rating system and default rates, and verification of risk measurement factors for internal purposes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Setting management limit of credit portfolios of 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allocation of internal capital limits of 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Resolution of Credit Committee for the fourth quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Results of the adequacy of the individually measured loss allowance of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Approval of upward adjustment of credit exposure limit ratio for large affiliates with credit ratings of A0 or Higher

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Management plan for credit exposure limits following the increase of company A's refund guarantee Limit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Resolution of Credit Committee for the first quarter of 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Result of integrated crisis analysis for the first half of 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enhancement plan for credit rating model of companies not subject to external audit under the External Audit Act

&nbsp;&nbsp;&nbsp;&nbsp;***(v) Improvement of risk management system***

For the continuous improvement of risk management, financial soundness and capital adequacy, the Bank performs the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continuous improvement of Basel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Improvements in the internal capital adequacy assessment system, in line with the guidelines set by the Financial Supervisory Service (FSS) in 2008, to manage capital adequacy more effectively

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Improvements in the credit assessment system on Low Default Portfolio (LDP)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elaboration of risk measuring criteria including credit risk parameters and measurement logics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Development of the application system for timely calculation of LCR and NSFR

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rebuilding the Corporate Credit Rating System (approved by Financial Supervisory Services on October 26, 2017)

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishment of the system to calculate Basel Interest Rate Risk in the Banking Book (IRRBB) coming to domestic in September 2018

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishment of the system to comply with the amended regulation relating to risk-weighted assets under Basel III in December 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Development of system related to Fundamental Review of the Trading Book (FRTB) under Basel III in August 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Development of system related to operational risk under Basel III in September 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expansion of risk management infrastructure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishment of the RAPM system to reflect risks to the Bank's business and support decision-making upon management, and application of performance assessment at the branch level since 2010

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enforcement of risk management related to irregular compound derivatives and validation of the derivative pricing model developed by the Bank's front office

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishment of IFRS 9 accounting system to calculate a loan loss allowances under IFRS 9 in March 2017 and, since then, run of IFRS 9 accounting system in January 2018

&nbsp;&nbsp;&nbsp;&nbsp;***(vi) Risk management reporting and measuring system***

The Bank endeavours consistently to objectively and rationally measure and manage all significant risks considering the characteristics of operational areas, assets and risks. In relation to reporting and measurement, the Bank has developed application systems as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Application system** | **Approach** | **Completion<br>date** | **Major function** |
|  Corporate Credit Rating System | Logit Model | Oct. 2017 | Rebuilding the Corporate Credit Rating System |
|  Market Risk Management System | Murex FRTB | Sep. 2022 | Calculation of regulatory capital and internal capital under FRTB SA Standards and stress testing analysis |
|  Interest/Liquidity Risk Management System | In-house | May. 2019 | Calculation of interest risk, liquidity risk, etc. |
|  Operational Risk Management System | Standardized Approach | Sep. 2022 | Calculation of operation risk, RCSA, KRI and management of loss events, etc. |
|  BIS Capital Ratio<br> Calculation/Credit Risk<br> Measurement System | Fermat RaY | Sep. 2006<br> Dec. 2013 | Calculate equity, credit risk-weighted assets and credit risk, etc. |
|  Loan Loss Allowance<br> Calculation System | IFRS<br> IFRS 9 | Jan. 2011<br> Mar. 2017 | Incurred loss model<br> Expected loss model |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;***(vii) Response to Basel***

The Korean financial authorities have implemented Basel II since January 2008, and the Standardized Approach and the Foundation Internal Ratings-Based Approach for calculating credit risk are applicable.

In conformity with the implementation roadmap of Basel II, the Bank obtained the approval to use the Foundation Internal Ratings-Based Approach on credit risk from the FSS in July 2008 and has applied the approach since late June 2008. The Bank applies the Standardized Approach on market risks and operational risks.

The Bank completed the Basel III standard risk management system in preparation of the adoption of the Basel III regulations announced on December 1, 2013. Starting from 2013 year-end, the BIS capital adequacy ratio has been measured in accordance to the Basel III regulations.

Responding to the requirements of the financial authorities, the Bank recognizes interest rate risk, liquidity risk, credit bias risk and reputation risk besides Pillar I risks (credit risk, market risk and operational risk). The Bank has actively responded to the Pillar 2 regulation, including additional capital requirements based on comprehensive assessment of risk management levels since 2015. In addition, from the end of 2015, the Bank has applied the uniform standards for the public announcement of financial business for Basel compliance.

The Bank completed revised standards such as capital requirements for banks' investments in funds in 2017, capital requirements for securitization in 2018, and the Standardised Approach for measuring counterparty credit risk (SA-CCR) in 2019.

To comply with the amended regulation relating to risk-weighted assets under Basel III, the Bank completed the consultation and the development of the relevant systems and the amended regulation has been applied since the calculation of the BIS ratio at the end of 2020.

The Bank has completed IT consulting and system development related to Market Risk Regulation (Fundamental Review of the Trading Book , FRTB) and Operational Risk Regulation under Basel III during the second half of 2022.

&nbsp;&nbsp;&nbsp;&nbsp;***(viii) Internal capital adequacy assessment process***

Internal capital adequacy assessment process is defined as the process that the Bank aggregates significant risks, calculates its internal capital, compares the internal capital with the available capital and assesses its internal capital adequacy. The internal capital adequacy report including the assessment results at the end of the year is prepared and reported to the Risk Management Policy Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Internal capital adequacy assessment

For the internal capital adequacy assessment, the Bank calculates its aggregated internal capital by evaluating all significant risks and available capital considering the quality and components of capital, and then assesses the internal capital adequacy by comparing the aggregated internal capital with the available capital.

In addition, the Bank conducts periodic stress tests more than once every six months to assess potential weakness in crisis situations and uses its results to assess the internal capital adequacy. The Bank

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

assumes the macroeconomic situation as three stages of 'normal- pessimistic-serious' and is preparing countermeasures such as checking the adequacy of capital by each stage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Goal setting of internal capital management

The Bank sets up and manages an internal capital limit on an annual basis, through the approval of the Risk Management Committee, to maintain internal capital adequacy by managing internal capital (integrated risks) within the extent of available capital.

The prior year's internal capital, analysis of domestic and foreign environment changes in the current year, and the direction and size of operations are all reflected in the goal setting of internal capital management to calculate the integrated internal capital scale. Moreover, Bank for International Settlements(BIS) capital adequacy ratio and risk appetite are taken into consideration in the goal setting of internal capital management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allocation of internal capital

The Bank's Risk Management Committee approves entire internal capital and the Risk Management Policy Committee allocates the capital to each segment and department, considering the extent of possible risk faced and size of operations. The allocated internal capital is monitored regularly and managed using various management methods. The results of monitoring and managing the allocated internal capital are reported to the Risk Management Committee. In case of any material changes in the Bank's business plan or risk operation strategy, the Bank adjusts the allocations elastically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Composition of internal capital

Internal capital comprises all the significant risks of the Bank and is composed of quantifiable and non-quantifiable risks. Quantifiable risks are composed of credit risk, market risk, interest rate risk, operational risk and credit concentration risk, foreign currency settlement risk, and are risks measured quantitatively by applying reasonable methodology using objective data. Non-quantifiable risks are composed of strategy risk, reputation risk, residual risk on asset securitization and furthermore. Non-quantifiable risks are those risks that cannot be measured quantitatively because of lack of data or the absence of appropriate measuring methodologies.

***(2) Credit Risk***

&nbsp;&nbsp;&nbsp;&nbsp;***(i) Concept***

Credit risk can be defined as potential loss resulting from the refusal to perform obligations or default of counterparties. More generally, it is used to refer to the possibility of loss from engaged bonds that cannot be redeemed properly or from substitute payments.

&nbsp;&nbsp;&nbsp;&nbsp;***(ii) Approach to credit risk management***

*Summary of credit risk management* 

The Bank regards credit risk as the most significant risk area in its business operations, and accordingly, closely monitors its credit risk exposure. The Bank manages both credit risks at portfolio level and at individual credit level. At portfolio level, the Bank reduces credit concentration and restructures the portfolio in such a way

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

to increase profitability considering the risk level. To avoid credit concentration on a particular sector, the Bank manages credit limits by client, group, industry, and country. The Bank also resets exposure management directives for each industry by conducting an industry credit evaluation twice a year.

At the individual credit level, the relationship manager (RM), the credit officer (CO) and the Credit Review Committee manage each borrowers' credit risk.

*Post management and insolvent borrower management* 

The Bank monitors the borrower's credit rating from the date of the loan to the date of the final collection of debt consistently and inspects the borrower's status regularly and frequently to prevent the generation of new bad debts and to stabilize the number of debt recoveries.

In addition, an early warning system is operated to spot borrowers that are highly likely to be insolvent. The early warning system provides financial information, financial transaction information, public information and market information of the borrower, and such information is used by the RM and the CO to monitor and manage changes in the borrower's credit rating.

A borrower that is likely to be insolvent is classified as an early warning borrower or a precautionary borrower, depending on the level of insolvency risk. The Bank sets up a specific and applicable stabilization plan for such a borrower considering the borrower's characteristics. Furthermore, sub-standard borrowers are classified as insolvent borrowers, and are managed intensively by the Bank, which takes legal proceedings, disposals or corporate turnaround measures if necessary.

*Classification of asset soundness and provision of allowance for loss* 

Classification of asset soundness is fulfilled by the analysis and assessment of credit risk. The classification is used to provide an appropriate allowance, prevent further occurrences of insolvent assets and promote the normalization of existing insolvent assets to enhance the stabilization of asset operations.

Based on the Financial Supervisory Regulations of the Republic of Korea, the Bank has established standards and guidelines on the classification of asset soundness, according to the Forward-Looking Criteria, which reflects not only the borrower's past records of repayment but also their future debt repayment capability.

In conformity with these standards, the Bank classifies the soundness of its assets as "normal", "precautionary", "substandard", "doubtful", or "estimated loss" and differentiates the coverage ratio by the level of classification.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

Details of loans by credit rating as of June 30, 2025 and December 31, 2024 are as follows:

< Corporate >

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Carrying**<br>**amounts** | **Carrying**<br>**amounts** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **Carrying**<br>**amounts** | **Carrying**<br>**amounts** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  AAA ~ BBB1 | W | 181588499 | 158198388 | 23390111 |  |
|  BBB2 ~ CCC |  | 28106944 | 10250249 | 16542119 | 1314576 |
|  Below CC |  | 1089508 |  | 22162 | 1067346 |
|  | W | 210784951 | 168448637 | 39954392 | 2381922 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying**<br>**amounts** | **Carrying**<br>**amounts** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **Carrying**<br>**amounts** | **Carrying**<br>**amounts** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  AAA ~ BBB1 | W | 180348619 | 159388765 | 20959854 |  |
|  BBB2 ~ CCC |  | 30814870 | 11229886 | 18561521 | 1023463 |
|  Below CC |  | 1101360 |  | 100 | 1101260 |
|  | W | 212264849 | 170618651 | 39521475 | 2124723 |

---

< Retail >

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month<br>expected<br>credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month<br>expected<br>credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  Grade 1~ Grade 6 | W | 102014 | 98087 | 3927 |  |
|  Grade 7~ Grade 8 |  | 334 |  | 334 |  |
|  Grade 9~ Grade 10 |  | 1507 |  |  | 1507 |
|  | W | 103855 | 98087 | 4261 | 1507 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  Grade 1~ Grade 6 | W | 140982 | 135315 | 5667 |  |
|  Grade 7~ Grade 8 |  | 1322 |  | 1306 | 16 |
|  Grade 9~ Grade 10 |  | 1230 |  |  | 1230 |
|  | W | 143534 | 135315 | 6973 | 1246 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

Details of payment guarantees (including financial guarantees) and unused commitments by credit rating as of June 30, 2025 and December 31, 2024 are as follows:

< Corporate >

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  Unused commitments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA ~ BBB1 | W | 54702170 | 49533243 | 5168927 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BBB2 ~ CCC |  | 3783323 | 1776914 | 1946554 | 59855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below CC |  |  |  |  |  |
|  | W | 58485493 | 51310157 | 7115481 | 59855 |
|  Payment guarantees (including financial guarantees): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA ~ BBB1 | W | 15607790 | 10383550 | 5224240 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BBB2 ~ CCC |  | 2724936 | 1732664 | 977994 | 14278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below CC |  | 38492 |  |  | 38492 |
|  | W | 18371218 | 12116214 | 6202234 | 52770 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  Unused commitments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA ~ BBB1 | W | 50579198 | 46235837 | 4343361 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BBB2 ~ CCC |  | 5699307 | 3365397 | 2285478 | 48432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below CC |  | 397 |  |  | 397 |
|  | W | 56278902 | 49601234 | 6628839 | 48829 |
|  Payment guarantees (including financial guarantees): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA ~ BBB1 | W | 8255939 | 7466921 | 789018 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BBB2 ~ CCC |  | 11035950 | 5176575 | 5842792 | 16583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below CC |  | 50886 |  |  | 50886 |
|  | W | 19342775 | 12643496 | 6631810 | 67469 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

< Retail >

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  Unused commitments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1~ Grade 6 | W | 30760 | 30622 | 138 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 7~ Grade 8 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 9~ Grade 10 |  |  |  |  |  |
|  | W | 30760 | 30622 | 138 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| | **Exposures** | **Exposures** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  Unused commitments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1~ Grade 6 | W | 33418 | 33171 | 247 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 7~ Grade 8 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 9~ Grade 10 |  |  |  |  |  |
|  | W | 33418 | 33171 | 247 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;***(iii) Measurement methodology of credit risk***

Pursuant to Basel III, the Bank selects the measurement methodology of credit risk considering the complexity of measurement, measurement factors, estimating methods and others. Measurement approaches are divided into Standardized Approach and Internal Ratings-Based Approach.

*Standardized Approach ("SA")* 

In the case of the Standardized Approach, the risk weights are applied according to the credit rating assessed by External Credit Assessment Institution ("ECAI"). Risk weights in each credit rating are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Credit rating** | **Corporate** | **Country** | **Bank** |
|  AAA ~ AA- | 20.0% | 0.0% | 20.0% |
|  A+ ~ A- | 50.0% | 20.0% | 30.0% |
|  BBB+ ~ BBB- | 75.0% | 50.0% | 50.0% |
|  BB+ ~ BB- | 100.0% | 100.0% | 100.0% |
|  B+ ~ B- | 150.0% | 100.0% | 100.0% |
|  Below B- | 150.0% | 150.0% | 150.0% |
|  Unrated | 100.0% (\*) | 100.0% | Rating based on due<br>diligence |

---

---

| | |
|:---|:---|
| (\*) | In case of small and medium-sized business, 85.0% is applied.  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

The OECD is designated as foreign ECAI and Korea Investrors Service Co., Ltd., NICE Investors Services Co., Ltd. and the Korea Ratings Co., Ltd. are designated as domestic ECAI.

The Bank applies the credit rating based on the corresponding loan and same borrower's unsecured senior loans. In the case the borrower's risk weight is higher than the unrated exposure's risk weight (100%), the higher weight is applied. In the case the borrower has more than one rating, the higher weight of the two lowest weights (Second Best Criteria) is applied.

*Internal Ratings-Based Approach (IRB)* 

To use the Internal Ratings-Based Approach, a bank must be approved by the FSS and should also meet the requirement pre-set by the FSS.

In relation to Basel II that has been adopted domestically as of January 2008, the Bank gained approval from the FSS to use the Foundation Internal Ratings-Based Approach in July 2008. The Bank has calculated credit risk-weighted assets using the approach since late June 2008.

*Measurement method of credit risk-weighted asset* 

The Bank calculates credit risk-weighted assets of corporate exposures and asset securitization exposures using the Foundation Internal Ratings-Based Approach as of June 30, 2025.

The Standardized Approach is applied to country exposures, public institution exposures and bank exposures permanently and applied to overseas subsidiary and the Bank's branch pursuant to prior consultation with the FSS.

---

| | | |
|:---|:---|:---|
| **Measurement method** | **Measurement method** | **Exposure** |
|  Standardized Approach | Permanent SA | — Countries, public institutions, banks, equity |
|  Standardized Approach | SA | — Overseas subsidiaries and branches, and other assets, retail, residential mortgage, commercial properties |
|  Foundation Internal Ratings-Based Approach | Foundation Internal Ratings-Based Approach | — Corporate, small and medium enterprises, asset securitization (at each credit level) |
| Application of IRB by phase | Application of IRB by phase | — Special lending, non-residence and others |

---

The mitigated effect of credit risks reflects the related policies which consider eligible collateral and guarantees. The Bank calculates the credit risk-weighted assets using the capital adequacy ratio.

Upon the calculation of credit risk-weighted assets for derivatives, the Bank takes into consideration the set-off effects of transactions under legally enforceable rights to set-off to calculate exposures.

*Credit rating model* 

The results of credit rating are presented as grades through an assessment of the debt repayment capacity that the principal and interest of debt securities or loans are redeemed while complying with contractual redemption schedule.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

Using the Bank's internal credit rating model, the Bank classifies debtors' credit rating into 14 grades (AAA~D). To distinguish the difference between credits in the same grade, the Bank uses 20 stages as auxiliaries to 14 grades.

The Bank's regular credit rating process is carried out once a year and in the case of the change of debtor's credit condition, the credit rating is frequently adjusted as necessary to retain the adequacy of credit rating.

The results of credit rating are applied to various areas such as discrimination of loan processes, loan limit, loan interest rate, post loan management standard process, credit risk measurement, and allowance for loan losses assessment.

*Credit rating process control structure* 

According to the Principle of Checks and Balances, the Bank has established the credit rating process control structure by which the credit rating system operates appropriately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Independent assessment of credit rating: The Bank's business segment (RM) and credit rating assessment segment (Senior Rating Officer) are independently operated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Independent control of credit rating system: The control of credit rating system including the development of credit rating model is independently implemented by the Bank's Risk Management Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Independent verification of credit rating system: Credit rating system is independently verified by Risk Validation Team of the Financial Planning Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Internal audit of credit rating process: Credit rating process is regularly audited by the Bank's internal audit department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Role of the Board of Directors and the Bank's management: Major issues relating to credit process are approved by the Board of Directors and are regularly monitored by the Bank's top management.

The Bank reviews debt repayability based on a credit analysis when handling loans. Depending on the results, credit loan preservation is executed as necessary using such methods as interest rate preservation due to credit risk.

The Bank evaluates the value of the collateral, performing ability and legal validity of the guarantee at the initial acquisition. The Bank re-evaluates the provided collateral and guarantees regularly for them to be reasonably preserved.

For guarantees, the Bank demands a corresponding written guarantee according to loan handling standards and the guarantor's credit rating is independently calculated when in conformance with the credit rating endowment method.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

The quantification of the extent to which collateral and other credit enhancements mitigate credit risk of impaired financial assets as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  Securities measured at FVOCI | W | 23939 |  | 75472 |
|  Loans measured at amortized cost |  | 2539630 |  | 2383289 |
|  Other assets |  | 6255 |  | 7812 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv) *Credit exposure*** 

Geographical information of credit exposure as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Korea** | **Korea** | **Hong<br>Kong** | **Ireland** | **Uzbekistan** | **Brazil** | **Hungary** | **UK** | **USA** | **Ohers** | **Total** |
|  Due from banks (excluding due from BOK) | W | 721920 | 1264434 |  | 278062 | 158699 | 739809 | 532540 | 4540202 | 2456301 | 10691967 |
|  Securities measured at FVOCI: |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 3581611 | 367938 | 57390 |  |  |  | 667231 | 5366061 | 4306938 | 14347169 |
|  Securities measured at amortized cost |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 3804306 |  |  |  |  |  |  | 678795 |  | 4483101 |
|  Loans |  | 160465286 | 1437124 | 2253901 | 351549 | 724708 | 291384 | 2338522 | 12876858 | 50267538 | 231006870 |
|  Derivative financial assets |  | 387023 | 14541 |  |  |  |  | 24595 | 31840 | 403465 | 861464 |
|  Other assets |  | 6101469 |  |  |  |  |  |  |  | 10267736 | 16369205 |
|  |  | 175061615 | 3084037 | 2311291 | 629611 | 883407 | 1031193 | 3562888 | 23493756 | 67701978 | 277759776 |
|  Guarantees (including financial guarantees) |  | 17158564 | 1056 |  |  |  | 52318 |  | 1070306 | 88974 | 18371218 |
|  Commitments |  | 48048437 | 405809 | 225519 |  |  | 164090 | 586425 | 4126714 | 4959259 | 58516253 |
|  |  | 65207001 | 406865 | 225519 |  |  | 216408 | 586425 | 5197020 | 5048233 | 76887471 |
|  | W | 240268616 | 3490902 | 2536810 | 629611 | 883407 | 1247601 | 4149313 | 28690776 | 72750211 | 354647247 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Korea** | **Korea** | **Hong<br>Kong** | **Ireland** | **Uzbekistan** | **Brazil** | **Hungary** | **UK** | **USA** | **Ohers** | **Total** |
|  Due from banks (excluding due from BOK) | W | 453479 | 1318743 |  | 176400 | 191100 | 715340 | 19911 | 5499422 | 3247842 | 11622237 |
|  Securities measured at FVOCI: |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 5930002 | 372498 | 29678 |  |  |  | 706417 | 5949041 | 4118457 | 17106093 |
|  Securities measured at amortized cost: |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 3560368 |  |  |  |  |  |  | 588959 |  | 4149327 |
|  Loans |  | 159628176 | 1762157 | 2175683 | 545206 | 694285 | 258082 | 1938291 | 12288293 | 51738561 | 231028734 |
|  Derivative financial assets |  | 243449 |  |  |  |  |  | 1230 | 182 | 45981 | 290842 |
|  Other assets |  | 2616174 |  |  |  |  |  |  |  | 5362961 | 7979135 |
|  |  | 172431648 | 3453398 | 2205361 | 721606 | 885385 | 973422 | 2665849 | 24325897 | 64513802 | 272176368 |
|  Guarantees (including financial guarantees) |  | 18357053 | 1085 |  |  |  | 56699 |  | 828844 | 99094 | 19342775 |
|  Commitments |  | 46482058 | 250896 | 66134 |  |  | 21402 | 579201 | 4406682 | 4505948 | 56312321 |
|  |  | 64839111 | 251981 | 66134 |  |  | 78101 | 579201 | 5235526 | 4605042 | 75655096 |
|  | W | 237270759 | 3705379 | 2271495 | 721606 | 885385 | 1051523 | 3245050 | 29561423 | 69118844 | 347831464 |

---

Industry information of credit exposure as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Manufacturing** | **Manufacturing** | **Service** | **Others** | **Total** |
|  Due from banks (excluding due from BOK) | W |  | 9112717 | 1579250 | 10691967 |
|  Securities measured at FVOCI: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 2443061 | 8999296 | 2904812 | 14347169 |
|  Securities measured at amortized cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 953481 | 2652029 | 877591 | 4483101 |
|  Loans |  | 88652073 | 119890490 | 22464307 | 231006870 |
|  Derivative financial assets |  |  | 861464 |  | 861464 |
|  Other assets |  | 232994 | 502423 | 15633788 | 16369205 |
|  |  | 92281609 | 142018419 | 43459748 | 277759776 |
|  Guarantees (including financial guarantees) |  | 15747190 | 2457748 | 166280 | 18371218 |
|  Commitments |  | 25724917 | 26338532 | 6452804 | 58516253 |
|  |  | 41472107 | 28796280 | 6619084 | 76887471 |
|  | W | 133753716 | 170814699 | 50078832 | 354647247 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Manufacturing** | **Manufacturing** | **Service** | **Others** | **Total** |
|  Due from banks (excluding due from BOK) | W |  | 9859582 | 1762655 | 11622237 |
|  Securities measured at FVOCI: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 3096554 | 10493304 | 3516235 | 17106093 |
|  Securities measured at amortized cost: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds (excluding government bonds) |  | 847317 | 2337223 | 964787 | 4149327 |
|  Loans |  | 89083417 | 118293797 | 23651520 | 231028734 |
|  Derivative financial assets |  |  | 290842 |  | 290842 |
|  Other assets |  | 257770 | 606725 | 7114640 | 7979135 |
|  |  | 93285058 | 141881473 | 37009837 | 272176368 |
|  Guarantees (including financial guarantees) |  | 16764602 | 2415561 | 162612 | 19342775 |
|  Commitments |  | 24979628 | 27329872 | 4002821 | 56312321 |
|  |  | 41744230 | 29745433 | 4165433 | 75655096 |
|  | W | 135029288 | 171626906 | 41175270 | 347831464 |

---

Credit exposures of debt securities by credit rating as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  AAA ~ BBB1 | W | 25421496 | 25029553 | 391943 |  |
|  BBB2 ~ CCC |  | 65000 | 5000 | 60000 |  |
|  Below CC |  |  |  |  |  |
|  | W | 25486496 | 25034553 | 451943 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month**<br>**expected**<br>**credit loss** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **Carrying<br>amounts** | **Carrying<br>amounts** | **12-month**<br>**expected**<br>**credit loss** | **Non credit-**<br>**impaired** | **Credit-**<br>**impaired** |
|  AAA ~ BBB1 | W | 26273071 | 25861132 | 411939 |  |
|  BBB2 ~ CCC |  | 85000 | 35000 | 50000 |  |
|  Below CC |  |  |  |  |  |
|  | W | 26358071 | 25896132 | 461939 |  |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

***(3) Capital management activities***

&nbsp;&nbsp;&nbsp;&nbsp;***(i) Capital adequacy***

The FSS approved the Bank's use of the Foundation Internal Ratings-Based Approach in July 2008. The Bank has been using the same approach when calculating credit risk-weighted assets since the end of June 2008. The equity capital ratio and equity capital according to the standards of the Bank for International Settlements are calculated for such disclosure. The equity capital ratio and equity capital are calculated on a consolidated basis. In conformity with the Banking Act, which is based on the implementation of Basel III on December 1, 2013, the regulatory capital is divided into the following two categories.

***Tier 1 capital***

*- Common Equity Tier 1* 

Regulatory capital that represents the most subordinated claim in liquidation of the Bank, takes the first and proportionately greatest share of any losses as they occur, and which principal is never repaid outside of liquidation meets the criteria for classification as common equity, including capital stock, capital surplus, retained earnings and accumulated other comprehensive income as common equity Tier 1.

*- Additional Tier 1 capital* 

Capital stock and capital surplus related to issuance of capital securities that are subordinated, have non-cumulative and conditional dividends or interests, and have no maturity or step-up conditions.

***Tier 2 capital (Supplementary Tier 2 capital)***

Regulatory capital that fulfills supplementary capital adequacy requirements, and includes subordinated debt with maturities over 5 years and allowance for loan losses in conformity with external regulatory standards and internal standards.

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

The BIS capital adequacy ratio and capital in accordance to Basel III standards as of June 30, 2025 and December 31, 2024 are as follows:

***BIS capital adequacy ratio***

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Equity capital based on BIS (A): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 | W | 47226664 | 42581473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional Tier 1 capital |  |  |  |
|  |  | 47226664 | 42581473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 2 capital |  | 3014682 | 3350097 |
|  | W | 50241346 | 45931570 |
|  Risk-weighted assets (B): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit risk-weighted assets | W | 325075608 | 316077185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market risk-weighted assets |  | 4085354 | 3246288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operational risk-weighted assets |  | 10096600 | 11020728 |
|  | W | 339257562 | 330344201 |
|  BIS capital adequacy ratio (A/B): |  | 14.81 | 13.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 capital ratio: |  | 13.92 | 12.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 ratio |  | 13.92 | 12.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional Tier 1 capital ratio |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 2 capital ratio |  | 0.89 | 1.01 |

---

***Equity capital based on BIS***

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Tier 1 capital (A): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital stock | W | 26925259 | 26316559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus |  | 1343195 | 1355849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings, etc. |  | 17544907 | 12768402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income, etc. |  | 1518908 | 2992380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock deductibles |  | (105605) | (851717) |
|  |  | 47226664 | 42581473 |
|  Tier 2 capital (B): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts, etc. |  | 896109 | 939461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qualified capital securities |  | 2374000 | 2678000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-qualified capital securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional stock deductibles |  | (255427) | (267364) |
|  |  | 3014682 | 3350097 |
|  Equity capital (A+B) | W | 50241346 | 45931570 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

***(4) Market risk***

&nbsp;&nbsp;&nbsp;&nbsp;***(i) Concept***

Market risk is defined as the possibility of potential loss resulting from fluctuations in interest rates, foreign exchange rates and the price of stocks and commodities. Trading position is exposed to risks, such as interest rate, stock price, and foreign exchange rate, etc. Non-trading position is mostly exposed to interest rates. Accordingly, the Bank classifies market risks into those exposed from trading position or those exposed from non-trading position.

&nbsp;&nbsp;&nbsp;&nbsp;***(ii) Market risks of trading positions***

*Management method on market risks arising from trading positions* 

In response to the full implementation of Basel III market risk regulations, the Bank has been calculating and managing market risk capital in accordance with the Standardized Approach under Basel III since January 2023. The Standardized Approach under Basel III measures market risk by three components: sensitivity risk, default risk and residual risk. Sensitivity risk measures the market risk by five risk classes, which are general interest rate, credit spread, equity, foreign exchange and commodity. Default risk quantifies losses in the event of a default that exceeds normal market price fluctuations. Lastly, residual risk quantifies risk that cannot be measured by sensitivity risk and default risk. These components are then simply added together to calculate the total required capital.

The Bank sets total limit of market risk based on annual business plan, risk appetite and others and monitors Market Risk limit of each trading department on a daily basis.

***Capital Requirements for Market risk***

The Bank's Capital Requirements for Market risk as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|  Sensitivity risk: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General interest rate | W | 140372 | 94918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit spread |  | 149375 | 136309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity |  | 598 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange (FX) |  | 20696 | 14186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity |  | 988 | 555 |
|  |  | 312029 | 245992 |
|  Default risk |  | 4099 | 3296 |
|  Residual risk |  | 5009 | 4720 |
|  | W | 321137 | 254008 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;***(iii) Market risks of non-trading positions***

*Management method on market risks arising from non-trading positions* 

The most critical market risk that arises in non-trading position is the interest rate risk. Interest rate risk is defined as the likely loss resulting from the unfavorable fluctuation of interest rate in the Bank's financial condition and is measured by IRRBB (Interest Rate Risk in Banking Book), ΔEVE (change in Economic Value of Equity) and ΔNII (change in Net Interest Income).

ΔEVE represents fluctuations in the economic value of equity capital that may occur due to changes in interest rates affecting the present values of assets, liabilities and off-balance sheet items. ΔNII represents changes in net interest income that may occur over a certain period of time (e.g. one year) in the future due to changes in interest rates.

The Bank's Risk Management Committee sets and manages interest rate risk limits on a yearly basis and interest rate risk is monthly measured and monitored.

ΔEVE and ΔNII of the Bank's non-trading positions as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  ΔEVE | W | 1193897 |  | 1584245 |
|  ΔNII |  | 471856 |  | 551404 |

---

&nbsp;&nbsp;&nbsp;&nbsp;***(iv) Foreign currency risk***

Outstanding balances by currency with significant exposure as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **USD** | **USD** | **EUR** | **JPY** | **GBP** | **Others** | **Total** |
|  Financial assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | W | 8478656 | 270742 | 113152 | (2287) | 894559 | 9754822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  | 768126 |  | 4689 |  | 20523 | 793338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 10770887 | 665992 | 665723 |  | 91495 | 12194097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 678795 |  |  |  |  | 678795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 58486410 | 4401033 | 3221563 | 1350495 | 2009019 | 69468520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  | 1248288 | 64977 | 4539 | 259554 | 42795 | 1620153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 6577127 | 148392 | 67209 | 6324 | 1104815 | 7903867 |
|  |  | 87008289 | 5551136 | 4076875 | 1614086 | 4163206 | 102413592 |
|  Financial liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL |  | 245937 |  |  |  |  | 245937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 18618683 | 27644 | 413118 | 30 | 12145 | 19071620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 20886172 | 179228 | 2776039 |  | 981576 | 24823015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 35998736 | 2699207 | 473064 | 1063716 | 9789015 | 50023738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  | 1788388 | 53822 | 3460 | 260956 | 33228 | 2139854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 6026481 | 194594 | 68235 | 19209 | 1344289 | 7652808 |
|  |  | 83564397 | 3154495 | 3733916 | 1343911 | 12160253 | 103956972 |
|  Net financial position | W | 3443892 | 2396641 | 342959 | 270175 | (7997047) | (1543380) |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **USD** | **USD** | **EUR** | **JPY** | **GBP** | **Others** | **Total** |
|  Financial assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | W | 10173373 | 267561 | 100607 | 25041 | 843169 | 11409751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  | 843635 |  | 2149 |  | 21383 | 867167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 11340644 | 562946 | 611946 |  | 160159 | 12675695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 588960 |  |  |  |  | 588960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  | 63255440 | 4019108 | 3094708 | 1257669 | 2241160 | 73868085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets |  | 1735394 | 63397 | 9916 | 245797 | 53755 | 2108259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 2311768 | 42597 | 47501 | 3728 | 1021321 | 3426915 |
|  |  | 90249214 | 4955609 | 3866827 | 1532235 | 4340947 | 104944832 |
|  Financial liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL |  | 271712 |  |  |  |  | 271712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 17759643 | 90238 | 500654 | 24 | 52053 | 18402612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 24145429 | 173945 | 2401491 |  | 1319443 | 28040308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 39397041 | 2643535 | 271509 | 543055 | 8050162 | 50905302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  | 2544086 | 50006 | 3689 | 262150 | 42581 | 2902512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 2823530 | 57793 | 44262 | 5256 | 1186239 | 4117080 |
|  |  | 86941441 | 3015517 | 3221605 | 810485 | 10650478 | 104639526 |
|  Net financial position | W | 3307773 | 1940092 | 645222 | 721750 | (6309531) | 305306 |

---

***(5) Liquidity risk management***

&nbsp;&nbsp;&nbsp;&nbsp;***(i) Concept***

Liquidity risk is defined as the possibility of potential loss due to a temporary shortage in funds caused by a maturity mismatch or an unexpected capital outlay. Liquidity risk soars when funding rates rise, assets are sold below a normal price, or a good investment opportunity is missed.

&nbsp;&nbsp;&nbsp;&nbsp;***(ii) Approach to liquidity risk management***

The Bank manages its liquidity risks as follows:

*Allowable limit for liquidity risk* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The allowable limit for liquidity risk sets LCR, NSFR and Mid- to long-term foreign currency fund management ratio

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The management standards with regards to the allowable limit for liquidity risk should be set using separate and stringent set ratios in accordance with the FSS guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• LCR: (High quality liquid assets / Total net cash outflows over the next 30 calendar days) X 100

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• NSFR: Available Stable Funding / Required Stable Funding X 100

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mid- to long-term foreign currency fund management ratio: Foreign currency funding being repaid after 1 year / Foreign currency lending being collected after 1 year X 100

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

*Early warning indicator* 

To identify prematurely and cope with worsening liquidity risk trends, the Bank has set up 15 indexes such as the "Foreign Exchange Stabilization Bond CDS Premium," and measures the trend monthly as a means for establishing the allowable liquidity risk limit complementary measures.

*Stress-Test analysis and contingency plan* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank evaluates the effects on the liquidity risk and identifies the inherent flaws. In the case where an unpredictable and significant liquidity crisis occurs, the Bank executes risk situation analysis quarterly
based on crisis specific to the Bank, market risk and complex emergency, and reports to the Risk Management Committee for the Bank's solvency securitization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank established detailed contingency plan to manage the liquidity risks at every risk situations.

&nbsp;&nbsp;&nbsp;&nbsp;***(iii) Analysis on remaining contractual maturity of financial instruments***

Remaining contractual maturity risks of non-derivative financial instruments including interest payment as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Within 1 month** | **Within 1 month** | **1~3 months** | **3~12 months** | **1~5 years** | **Over 5 years** | **Total** |
|  Financial assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | W | 9567503 | 382663 | 1428244 | 1048282 |  | 12426692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  | 126670 | 80159 | 1281638 | 275750 | 18005873 | 19770090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 330153 | 647118 | 2688580 | 9799096 | 16498937 | 29963884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 153569 | 1152568 | 3078520 | 5313556 | 30000 | 9728213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 14035299 | 20982287 | 71155889 | 77552248 | 23440839 | 207166562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 14606005 |  |  |  | 1732753 | 16338758 |
|  | W | 38819199 | 23244795 | 79632871 | 93988932 | 59708402 | 295394199 |
|  Financial liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL | W | 599521 | 224518 | 758460 | 297930 | 245937 | 2126366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 26332479 | 14061206 | 23984309 | 4178978 | 477 | 68557449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 5102985 | 7597702 | 10297130 | 5507805 | 768844 | 29274466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 4744857 | 13612593 | 54549835 | 84217408 | 7560673 | 164685366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 14165025 | 3017208 |  |  | 5829295 | 23011528 |
|  | W | 50944867 | 38513227 | 89589734 | 94202121 | 14405226 | 287655175 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Within 1 month** | **Within 1 month** | **1~3 months** | **3~12 months** | **1~5 years** | **Over 5 years** | **Total** |
|  Financial assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | W | 9972375 | 503873 | 1547894 | 924609 |  | 12948751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVTPL |  | 46600 | 44229 | 1366748 | 189953 | 16741203 | 18388733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at FVOCI |  | 826144 | 915551 | 3345316 | 9961875 | 16773121 | 31822007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost |  | 115000 | 811131 | 3340174 | 4649715 | 30000 | 8946020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 14624020 | 22345767 | 75308653 | 74886373 | 21375761 | 208540574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  | 6105756 |  |  |  | 1812957 | 7918713 |
|  | W | 31689895 | 24620551 | 84908785 | 90612525 | 56733042 | 288564798 |
|  Financial liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities measured at FVTPL | W | 692242 | 177967 | 845385 | 401940 | 271712 | 2389246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 26721259 | 14853061 | 19694387 | 4812941 | 494 | 66082142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 6497080 | 9373391 | 9491425 | 6268523 | 774520 | 32404939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 7190293 | 9981850 | 51813957 | 88861601 | 8010418 | 165858119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 5725726 | 2996849 |  |  | 5921914 | 14644489 |
|  | W | 46826600 | 37383118 | 81845154 | 100345005 | 14979058 | 281378935 |

---

Remaining contractual maturity risks of derivative financial instruments as of June 30, 2025 and December 31, 2024 are as follows:

*Net settlement of derivative financial instruments* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Within 1 month** | **Within 1 month** | **1~3 months** | **3~12 months** | **1~5 years** | **Over 5 years** | **Total** |
|  Trading purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency | W | (3270) |  |  |  |  | (3270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate |  | (110707) | (77405) | (258424) | (371975) | 667594 | (150917) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock |  | 27 |  |  |  |  | 27 |
|  Hedging purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate |  | 30050 | 314619 | 709812 | 2199482 | 1158453 | 4412416 |
|  | W | (83900) | 237214 | 451388 | 1827507 | 1826047 | 4258256 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Within 1 month** | **Within 1 month** | **1~3 months** | **3~12 months** | **1~5 years** | **Over 5 years** | **Total** |
|  Trading purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency | W | 3724 |  |  |  |  | 3724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate |  | 55197 | 30315 | (325391) | (394347) | 1079448 | 445222 |
|  Hedging purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate |  | 36090 | 250330 | 841971 | 2130959 | 1295726 | 4555076 |
|  | W | 95011 | 280645 | 516580 | 1736612 | 2375174 | 5004022 |

---

*Gross settlement of derivative financial instruments* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Within 1 month** | **Within 1 month** | **1~3 months** | **3~12 months** | **1~5 years** | **Over 5 years** | **Total** |
|  Trading purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inflow | W | 75519934 | 28082421 | 69193627 | 119634458 | 7562843 | 299993283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outflow |  | 75564319 | 28104758 | 68706482 | 118925956 | 7692256 | 298993771 |
|  Hedging purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inflow |  | 356693 | 400756 | 5018681 | 22316805 | 4444858 | 32537793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outflow |  | 358698 | 446517 | 7379987 | 23807506 | 4341401 | 36334109 |
|  Total inflow | W | 75876627 | 28483177 | 74212308 | 141951263 | 12007701 | 332531076 |
|  Total outflow | W | 75923017 | 28551275 | 76086469 | 142733462 | 12033657 | 335327880 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Within 1 month** | **Within 1 month** | **1~3 months** | **3~12 months** | **1~5 years** | **Over 5 years** | **Total** |
|  Trading purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inflow | W | 67582388 | 38553043 | 66563517 | 122988092 | 6762347 | 302449387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outflow |  | 67425405 | 38576699 | 66061685 | 122136515 | 6868720 | 301069024 |
|  Hedging purpose derivatives: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inflow |  | 1258709 | 1810835 | 3446653 | 19785824 | 4827947 | 31129968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outflow |  | 1542826 | 1787625 | 3950032 | 22008513 | 4721907 | 34010903 |
|  Total inflow | W | 68841097 | 40363878 | 70010170 | 142773916 | 11590294 | 333579355 |
|  Total outflow | W | 68968231 | 40364324 | 70011717 | 144145028 | 11590627 | 335079927 |

---

------

##### [**Table of Contents**](#toc)
**Korea Development Bank** 

**Notes to the Interim Separate Financial Statements** 

**June 30, 2025 and 2024 (Unaudited), and December 31, 2024** 

**(In millions of won)** 

**47. <u>Risk Management, Continued</u>** 

In the case of payment guarantees, loan commitments, and similar facilities provided by the Bank, there exists a contractual maturity. However, the Bank is obligated to make immediate payment upon demand by the counterparty. Details of guarantees and commitments as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31,<br>2024** | **December 31,<br>2024** |
|  Guarantees | W | 18371218 |  | 19342775 |
|  Commitments |  | 70252376 |  | 67689907 |
|  | W | 88623594 |  | 87032682 |

---

------

##### [**Table of Contents**](#toc)
**THE REPUBLIC OF KOREA** 

**The Economy** 

***Gross Domestic Product***

Based on preliminary data, GDP growth in the first nine months of 2025 was 0.7% at chained 2020 year prices, primarily due to a 4.0% increase in exports of goods and services and a 1.5% increase in aggregate private and general government consumption expenditures, the effects of which were offset in part by a 3.8% increase in imports of goods and services and a 3.5% decrease in gross domestic fixed capital formation, each compared with the corresponding period of 2024.

**Principal Sectors of the Economy** 

***Prices, Wages and Employment***

Based on preliminary data, the inflation rate was 2.1% and the unemployment rate was 2.8% in the first nine months of 2025.

**The Financial System** 

***Securities Markets***

The Korea Composite Stock Price Index was 3,071.1 on June 30, 2025, 3,245.4 on July 31, 2025, 3,186.0 on August 29, 2025, 3,424.6 on September 30, 2025, 4,107.5 on October 31, 2025, 3,926.6 on November 28, 2025, 4,214.2 on December 31, 2025 and 4,904.7 on January 19, 2026.

**Monetary Policy** 

***Foreign Exchange***

The market average exchange rate between the Won and the U.S. Dollar (in Won per one U.S. Dollar) as announced by the Seoul Money Brokerage Service Ltd. was Won 1,356.4 to US$1.00 on June 30, 2025, Won 1,382.9 to US$1.00 on July 31, 2025, Won 1,388.6 to US$1.00 on August 29, 2025, Won 1,402.2 to US$1.00 on September 30, 2025, Won 1,423.2 to US$1.00 on October 31, 2025, Won 1,464.8 to US$1.00 on November 28, 2025, Won 1,434.9 to US$1.00 on December 31, 2025 and Won 1,473.5 to US$1.00 on January 19, 2026.

**Balance of Payments and Foreign Trade** 

***Balance of Payments***

Based on preliminary data, the Republic's current account surplus in the first nine months of 2025 increased to US$82.8 billion from the current account surplus of US$67.2 billion in the corresponding period of 2024, primarily due to increases in surpluses from the goods account and the income account, the effects of which were offset in part by an increase in deficit from the service account.

***Trade Balance***

Based on preliminary data, the Republic recorded a trade surplus of US$50.4 billion in the first nine months of 2025. Exports increased by 2.2% to US$519.7 billion in the first nine months of 2025 from US$508.5 billion in the corresponding period of 2024, primarily due to a substantial growth in demand for semiconductor products globally. Imports decreased by 0.5% to US$469.3 billion in the first nine months of 2025 from US$471.9 billion in the corresponding period of 2024, primarily due to a decrease in energy and commodity prices, which also led to decreased unit prices of other major raw materials.

------

##### [**Table of Contents**](#toc)
***Foreign Currency Reserves***

The amount of the Government's foreign currency reserves was US$428.1 billion as of December 31, 2025.

**Government Finance** 

Effective January 2, 2026, the responsibility of preparing the Government budget and administering the Government's finances has been transferred from the Ministry of Economy and Finance to the Ministry of Planning and Budget, a new ministry established under the Prime Minister's Office.

Under the National Finance Act, the Government's fiscal year commences on January 1. The Government must submit the budget, which is drafted by the Minister of Planning and Budget and approved by the President of the Republic, to the National Assembly not later than 120 days prior to the start of the fiscal year, and may submit supplementary budgets revising the original budget at any time during the fiscal year.

**Debt** 

The Government estimates that the total outstanding debt of the Government (including guarantees by the Government) as of December 31, 2023 amounted to approximately W1,102.1 trillion, an increase of 5.6% over the previous year.

The Government estimates that the total outstanding debt of the Government (including guarantees by the Government) as of December 31, 2024 amounted to approximately W1,150.9 trillion, an increase of 4.4% over the previous year.

Effective January 2, 2026, the responsibility of administering the national debt of the Republic has been transferred from the Ministry of Economy and Finance to the Ministry of Planning and Budget.

***External and Internal Debt of the Government***

The following table sets out, by currency and the equivalent amount in U.S. dollars, the estimated outstanding direct external debt of the Government as of December 31, 2024:

**Direct External Debt of the Government** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Amount in<br>Original<br>Currency** | **Equivalent<br>Amount in<br>U.S. Dollars<sup>(1)</sup>** | **Equivalent<br>Amount in<br>U.S. Dollars<sup>(1)</sup>** |
|  | **(millions)** | **(millions)** | **(millions)** |
|  US$ | US$6,525.0 | US$ | 6525.0 |
|  Euro (EUR) | EUR 1,400.0 |  | 1455.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | US$ | 7980.9 |

---

(1) Amounts expressed in currencies other than US$ are converted to US$ at the arbitrage rate announced by the Seoul
Money Brokerage Services, Ltd. in effect on December 31, 2024.

------

##### [**Table of Contents**](#toc)
The following table summarizes, as of December 31 of the years indicated, the outstanding direct internal debt of the Republic:

**Direct Internal Debt of the Government** 

---

| | | |
|:---|:---|:---|
|  | **(billions of Won)** | **(billions of Won)** |
|  2020 |  | 808941.0 |
|  2021 |  | 927865.2 |
|  2022 |  | 1021574.4 |
|  2023 |  | 1080844.4 |
|  2024 |  | 1128191.5 |

---

The following table sets out all guarantees by the Government of indebtedness of others:

**Guarantees by the Government** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2020** | **2021** | **2022** | **2023** | **2024** |
|  | **(billions of Won)** | | | | |
|  Domestic | 12490.0 | 10930.0 | 10620.0 | 10460.0 | 10960.0 |
|  External<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 12490.0 | 10930.0 | 10620.0 | 10460.0 | 10960.0 |

---

(1) Converted to Won at foreign exchange banks' telegraphed transfer selling rates to customers or the market
average exchange rates in effect on December 31 of each year.

For further information on the outstanding indebtedness, including guarantees, of the Republic, see "—Tables and Supplementary Information".

------

##### [**Table of Contents**](#toc)
**Tables and Supplementary Information** 

&nbsp;&nbsp;&nbsp;&nbsp;***A. External Debt of the Government***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1) External Bonds of the Government* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Series** | **Issue Date** | **Maturity Date** | **Interest<br>Rate (%)** | **Currency** | **Original<br>Principal<br>Amount** | **Principal Amount<br>Outstanding as of<br>December 31, 2024** | **Principal Amount<br>Outstanding as of<br>December 31, 2024** |
| 2005-001 | November 2, 2005 | November 3, 2025 | 5.625 | USD | 400000000 |  | 400000000 |
| 2014-001 | June 10, 2014 | June 10, 2044 | 4.125 | USD | 1000000000 |  | 1000000000 |
| 2017-001 | January 19, 2017 | January 19, 2027 | 2.750 | USD | 1000000000 |  | 1000000000 |
| 2018-001 | September 20, 2018 | September 20, 2028 | 3.500 | USD | 500000000 |  | 500000000 |
| 2018-002 | September 20, 2018 | September 20, 2048 | 3.875 | USD | 500000000 |  | 500000000 |
| 2019-001 | June 19, 2019 | June 19, 2029 | 2.500 | USD | 1000000000 |  | 1000000000 |
| 2020-001 | September 16, 2020 | September 16, 2030 | 1.000 | USD | 625000000 |  | 625000000 |
| 2020-002 | September 16, 2020 | September 16, 2025 | 0.000 | EUR | 700000000 |  | 700000000 |
| 2021-001 | October 15, 2021 | October 15, 2026 | 0.000 | EUR | 700000000 |  | 700000000 |
| 2021-002 | October 15, 2021 | October 15, 2031 | 1.750 | USD | 500000000 |  | 500000000 |
| 2024-001 | July 3, 2024 | July 3, 2029 | 4.500 | USD | 1000000000 |  | 1000000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Original Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Original Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Original Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Original Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Original Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Original Currencies |  | USD 6,525,000,000 |
|  |  |  |  |  |  |  | EUR 1,400,000,000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Equivalent Amount of Won(1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Equivalent Amount of Won(1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Equivalent Amount of Won(1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Equivalent Amount of Won(1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Equivalent Amount of Won(1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total External Bonds in Equivalent Amount of Won(1) | W | 11731930000000 |

---

(1) U.S. dollar amounts are converted to Won amounts at the rate of US$1.00 to W 1,470.0, the market
average exchange rate in effect on December 31, 2024, as announced by Seoul Money Brokerage Services, Ltd. Euro amounts are converted to Won amounts at the rate of EUR 1.00 to W 1,528.7, the market average exchange rate in effect on
December 31, 2024, as announced by Seoul Money Brokerage Services, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2) External Borrowings of the Government* 

None.

&nbsp;&nbsp;&nbsp;&nbsp;***B. External Guaranteed Debt of the Government***

None.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;***C. Internal Debt of the Government***

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title** | **Range of<br>Interest Rates** | **Range of<br>Years of Issue** | **Range of Years<br>of Original<br>Maturity** | **Principal<br>Amounts<br>Outstanding as<br>of December 31,<br>2024** |
|  | **(%)** | | | **(billions of Won)** |
| **1. Bonds** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-Bearing Treasury Bond for Treasury Bond Management Fund | 0.750-5.750 | 2006-2024 | 2025-2074 | 1047874.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-Bearing Treasury Bond for National Housing I | 1.000-1.750 | 2015-2024 | 2020-2029 | 79100.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-Bearing Treasury Bond for National Housing II | 0 | 2009-2017 | 2019-2029 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-Bearing Treasury Bond for National Housing III |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-interest-Bearing Treasury Bond for Contribution to International Organizations<sup>(1)</sup> | 0 | 1967-1985 |  | 9.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Bonds |  |  |  | 1126986.5 |
| **2. Borrowings** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from The Bank of Korea |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Sports Promotion Fund | 2.875-3.665 | 2023-2024 | 2025-2029 | 960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from The Korea Foundation Fund |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Labor Welfare Promotion Fund | 2.920-2.935 | 2024 | 2025 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from Korea Technology Finance Corporation | 2.870-3.100 | 2024 | 2026 | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Credit Guarantee Fund for Agriculture, Forestry and Fisheries Suppliers |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Government Employees' Pension Fund |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Film Industry Development Fund |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Korea Credit Guarantee Fund |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Housing Finance Credit Guarantee Fund |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings from the Korea Infrastructure Credit Guarantee Fund |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Borrowings |  |  |  | 1205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Internal Funded Debt** |  |  |  | 1128191.5 |

---

(1) Interest Rates and Years of Original Maturity not applicable.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;***D. Internal Guaranteed Debt of the Government***

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title** | **Range of<br>Interest Rates** | **Range of<br>Years of Issue** | **Range of Years<br>of Original<br>Maturity** | **Principal<br>Amounts<br>Outstanding as<br>of December 31,<br>2024** |
|  | **(%)** | | | **(billions of Won)** |
| **1. Bonds of Government-Affiliated <br>Corporations** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Deposit Insurance Corporation |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Student Aid Foundation | 1.230-5.480 | 2011-2024 | 2025-2044 | 10350.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Supply Chain Resilience Fund | 2.820-2.960 | 2024 | 2026-2027 | 400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Key Industry Stabilization Fund | 1.450-2.190 | 2020-2021 | 2025 | 210.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Internal Guaranteed Debt** |  |  |  | 10960.0 |

---

------

##### [**Table of Contents**](#toc)
**DESCRIPTION OF THE NOTES** 

*The following is a description of some of the terms of the Notes we are offering. Since it is only a summary, we urge you to read the fiscal agency agreement described below and the forms of global note before deciding whether to invest in the Notes. We have filed a copy of these documents with the United States Securities and Exchange Commission as exhibits to the registration statement no. 333-280021.* 

The general terms of our Notes are described in the accompanying prospectus. The description in this prospectus supplement further adds to that description or, to the extent inconsistent with that description, replaces it.

**The Notes** 

We are offering US$1,250,000,000 aggregate principal amount of 3.750% notes due January 28, 2029 (the "2029 Notes"), US$1,250,000,000 aggregate principal amount of 4.000% notes due January 28, 2031 (the "2031 Notes") and US$500,000,000 aggregate principal amount of floating rate notes due on the Floating Rate Notes Interest Payment Date (as defined below) falling on or nearest to January 28, 2031 (the "Floating Rate Notes," and together with the 2029 Notes and the 2031 Notes, the "Notes").

**Governed by Fiscal Agency Agreement** 

We will issue the Notes under the fiscal agency agreement, dated as of February 15, 1991, as amended and supplemented from time to time, between us and The Bank of New York (now The Bank of New York Mellon), as fiscal agent (the "Fiscal Agency Agreement"). The fiscal agent will maintain a register for the Notes.

**Payment of Principal and Interest** 

***Fixed Rate Notes***

The 2029 Notes are initially limited to US$1,250,000,000 aggregate principal amount and the 2031 Notes (together with the 2029 Notes, the "Fixed Rate Notes") are initially limited to US$1,250,000,000 aggregate principal amount. The 2029 Notes will mature on January 28, 2029 (the "2029 Notes Maturity Date") and the 2031 Notes will mature on January 28, 2031 (the "2031 Notes Maturity Date"), and together with the 2029 Notes Maturity Date, the "Fixed Rate Notes Maturity Dates"). The 2029 Notes will bear interest at the rate of 3.750% per annum and the 2031 Notes will bear interest at the rate of 4.000% per annum, in each case payable semi-annually in arrear on January 28 and July 28 of each year (each, a "Fixed Rate Notes Interest Payment Date"), beginning on July 28, 2026. Interest on the Fixed Rate Notes will accrue from January 28, 2026. If any Fixed Rate Notes Interest Payment Date or any Fixed Rate Notes Maturity Date shall be a day on which banking institutions in The City of New York or Seoul are authorized or obligated by law to close, then such payment will not be made on such date but will be made on the next succeeding day which is not a day on which banking institutions in The City of New York or Seoul are authorized or obligated by law to close, with the same force and effect as if made on the date for such payment, and no interest shall be payable in respect of any such delay. We will pay interest to the person who is registered as the owner of a 2029 Note or 2031 Note, as applicable, at the close of business on the fifteenth day (whether or not a business day) preceding the related Fixed Rate Notes Interest Payment Date. Interest on the Fixed Rate Notes will be computed on the basis of a 360-day year consisting of twelve 30-day months. We will make principal and interest payments on the Fixed Rate Notes in immediately available funds in U.S. dollars.

***Floating Rate Notes***

The Floating Rate Notes are initially limited to US$500,000,000 aggregate principal amount. The Floating Rate Notes will mature on the Floating Rate Notes Interest Payment Date (as defined below) on or nearest to January 28, 2031 (the "Floating Rate Notes Maturity Date"). The Floating Rate Notes will bear interest at a rate equal to Compounded Daily SOFR (as defined herein) plus 0.500% per annum, payable quarterly in arrear on

------

##### [**Table of Contents**](#toc)
January 28, April 28, July 28 and October 28 of each year, subject in each case to adjustment in accordance with the Modified Following Business Day Convention, as explained herein (each, a "Floating Rate Notes Interest Payment Date"), beginning on the Floating Rate Notes Interest Payment Date falling on or nearest to April 28, 2026, and if redeemed early, the date of such redemption. In no event shall the rate of interest for the Floating Rate Notes be less than 0% for any Floating Rate Notes Interest Period (as defined herein).

Interest on the Floating Rate Notes will accrue from (and including) January 28, 2026. If any Floating Rate Notes Interest Payment Date or the Floating Rate Notes Maturity Date falls on a day that is not a business day (as defined below), that Floating Rate Notes Interest Payment Date or the Floating Rate Notes Maturity Date will be adjusted in accordance with the Modified Following Business Day Convention. The term "Modified Following Business Day Convention" means that the relevant date shall be postponed to the first following day that is a business day (and interest will continue to accrue to but excluding such following date that is a business day) unless that day falls in the next calendar month in which case that date will be the first preceding day that is a business day and interest shall accrue to but excluding such preceding business day. The term "business day" as used herein means a U.S. Government Securities Business Day (as defined herein) and a day other than a Saturday, a Sunday or any other day on which banking institutions in Seoul are authorized or required by law or executive order to remain closed.

We will pay interest to the person who is registered as the owner of a Floating Rate Note at the close of business on the fifteenth day (whether or not a business day) preceding the related Floating Rate Notes Interest Payment Date. Interest on the Floating Rate Notes will be computed on the basis of the actual number of days in the applicable Floating Rate Notes Interest Period (as defined herein) divided by 360. We will make principal and interest payments on the Floating Rate Notes in immediately available funds in U.S. dollars.

&nbsp;&nbsp;&nbsp;&nbsp;***1. Definition of Compounded Daily SOFR***

"Compounded Daily SOFR" means the rate of return of a daily compound interest investment (with the daily secured overnight financing rate as the reference rate for the calculation of interest) and will be determined by the Calculation Agent (as defined herein) on the Floating Rate Notes Interest Determination Date in accordance with the following formula, and the resulting percentage will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, 0.000005 being rounded upwards:

![LOGO](g20828g00a01.jpg)

where:

*"d"* means the number of calendar days in the Floating Rate Notes Interest Period;

*"d<sub>0</sub>"* for any Floating Rate Notes Interest Period, means the number of U.S. Government Securities Business Days (as defined herein) in the Floating Rate Notes Interest Period;

*"i"* is a series of whole numbers from one to d<sub>0</sub>, each representing the relevant U.S. Government Securities Business Days in chronological order from, and including, the first U.S. Government Securities Business Day in the Floating Rate Notes Interest Period;

*"n<sub>i</sub>"* for any U.S. Government Securities Business Day "i" means the number of calendar days from, and including, such U.S. Government Securities Business Day "i" up to, but excluding, the following U.S. Government Securities Business Day;

*"SOFR<sub>i-5USBD</sub>"* means the SOFR Reference Rate for the U.S. Government Securities Business Day (being a U.S. Government Securities Business Day falling in the Floating Rate Notes Interest Period) falling five U.S. Government Securities Business Days prior to the relevant U.S. Government Securities Business Day "i"; and

------

##### [**Table of Contents**](#toc)
*"SOFR Reference Rate"* means, in respect of any U.S. Government Securities Business Day, a reference rate equal to the daily secured overnight financing rate ("SOFR") for such U.S. Government Securities Business Day as provided by the Federal Reserve Bank of New York, as the administrator of such rate (or any successor administrator of such rate) on the website of the Federal Reserve Bank of New York currently at http://www.newyorkfed.org, or any successor website of the Federal Reserve Bank of New York (the "New York Fed's Website") in each case, on or about 5:00 p.m., New York City time, on the U.S. Government Securities Business Day immediately following such U.S. Government Securities Business Day (the "SOFR Determination Time").

"*Floating Rate Notes Interest Determination Date*" means the date five U.S. Government Securities Business Days before each Floating Rate Notes Interest Payment Date;

"*Floating Rate Notes Interest Period*" refers to the period from (and including) January 28, 2026 to (but excluding) the first Floating Rate Notes Interest Payment Date and each successive period from (and including) a Floating Rate Notes Interest Payment Date to (but excluding) the next Floating Rate Notes Interest Payment Date; and

"*U.S. Government Securities Business Day*" means any day except for a Saturday, a Sunday or a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

The Bank of New York Mellon will serve as the "Calculation Agent" for the Floating Rate Notes. In the absence of manifest error, the Calculation Agent's determination of Compounded Daily SOFR and its calculation of the applicable interest rate for each Floating Rate Notes Interest Period will be final and binding. The Calculation Agent will make available the interest rates for current and preceding Floating Rate Notes Interest Periods by delivery of such notice through such medium as is available to participants in DTC, Euroclear and Clearstream, or any successor thereof, and in accordance with such applicable rules and procedures as long as the Floating Rate Notes are held in global form. In the event that the Floating Rate Notes are held in certificated form, the interest rates for current and preceding Floating Rate Notes Interest Periods will be published in the manner described below under "—Notices". We have the right to replace the Calculation Agent with another leading commercial bank or investment bank in New York or London. If the appointed office of the Calculation Agent is unable or unwilling to continue to act as the Calculation Agent or fails to determine the interest rate for any Floating Rate Notes Interest Period, we have a duty to appoint such other leading commercial bank or investment bank in New York or London.

&nbsp;&nbsp;&nbsp;&nbsp;***2. Benchmark Transition***

Notwithstanding anything to the contrary in the documentation relating to the Floating Rate Notes, if the Calculation Agent is notified by the Determination Agent on or prior to the relevant Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date (each as defined herein) have occurred with respect to the then-current Benchmark, then the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Floating Rate Notes in respect of all determinations on such date and for all determinations on all subsequent dates.

In connection with the implementation of a Benchmark Replacement, the Determination Agent will have the right to make Benchmark Replacement Conforming Changes (as defined herein) from time to time.

Any determination, decision or election that may be made by the Determination Agent or us pursuant to the Benchmark Replacement provisions described herein, including any determination with respect to tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. will be conclusive and binding absent manifest error, may be made in the Determination Agent's sole
discretion, and, notwithstanding anything to the contrary herein relating to the Floating Rate Notes;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if made by us, will be made in our sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. if made by the Determination Agent, will be made after consultation with us, and the Determination Agent will
not make any such determination, decision or election to which we object; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. shall become effective without consent from any other party.

Any determination, decision or election pursuant to the Benchmark Replacement provisions not made by the Determination Agent will be made by us on the basis as described above. The Calculation Agent shall have no liability for not making any such determination, decision or election. In addition, we may designate an entity (which may be our affiliate) to make any determination, decision or election that we have the right to make in connection with the benchmark replacement provisions set forth herein.

None of the fiscal agent, paying agent or calculation agent shall be under any obligation (i) to monitor, determine or verify the unavailability or cessation of SOFR or Compounded Daily SOFR, or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of, any Benchmark Transition Event or related Benchmark Replacement Date, (ii) to select, determine or designate any Benchmark Replacement, or other successor or replacement benchmark index, or whether any conditions to the designation of such a rate or index have been satisfied, (iii) to select, determine or designate any Benchmark Replacement Adjustment, or other modifier to any replacement or successor index, or (iv) to determine whether or what Benchmark Replacement Conforming Changes are necessary or advisable, if any, in connection with any of the foregoing, including, but not limited to, adjustments as to any alternative spread thereon, the business day convention, interest determination dates or any other relevant methodology applicable to such substitute or successor benchmark. In connection with the foregoing, each of the fiscal agent, paying agent and calculation agent shall be entitled to conclusively rely on any determinations made by us or the Determination Agent without independent investigation, and none of the fiscal agent, paying agent or the calculation agent will have any liability for actions taken at our direction in connection therewith. None of the fiscal agent, paying agent or calculation agent shall be liable for any inability, failure or delay on its part to perform any of its duties as a result of the unavailability of SOFR, Compounded Daily SOFR or other applicable Benchmark Replacement, including as a result of any failure, inability, delay, error or inaccuracy on the part of any other transaction party in providing any direction, instruction, notice or information required or contemplated by the terms hereof and reasonably required for the performance of such duties. None of the fiscal agent, paying agent or calculation agent shall be responsible or liable for our actions or omissions or for those of the Determination Agent, or for any failure or delay in the performance by us or the Determination Agent, nor shall any of the fiscal agent, paying agent or calculation agent be under any obligation to oversee or monitor our performance or that of the Determination Agent.

For purposes of these Benchmark Replacement provisions:

"*Benchmark*" means, initially, Compounded Daily SOFR, as such term is defined above; provided that if the Determination Agent determines on or prior to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Compounded Daily SOFR (including the daily published component used in the calculation thereof) or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement;

"*Benchmark Replacement*" means the first alternative set forth in the order below that can be determined by us or the Determination Agent as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. the sum of: (a) the alternate rate of interest that has been selected or recommended by the Relevant
Governmental Body (as defined herein) as the replacement for the then-current Benchmark and (b) the Benchmark Replacement Adjustment (as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. the sum of: (a) the ISDA Fallback Rate (as defined herein) and (b) the Benchmark Replacement
Adjustment; or

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. the sum of: (a) the alternate rate of interest that has been selected by us or the Determination Agent as
the replacement for the then-current Benchmark giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar-denominated floating rate notes at such time and (b) the Benchmark
Replacement Adjustment;

"*Benchmark Replacement Adjustment*" means the first alternative set forth in the order below that can be determined by us or the Determination Agent as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. the spread adjustment (which may be a positive or negative value or zero), or method for calculating or
determining such spread adjustment that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement (as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA
Fallback Adjustment (as defined herein); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. the spread adjustment (which may be a positive or negative value or zero) that has been selected by us or the
Determination Agent giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark
Replacement for U.S. dollar-denominated floating rate notes at such time;

"*Benchmark Replacement Conforming Changes*" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definitions or interpretations of interest period, the timing and frequency of determining rates and making payments of interest, the rounding of amounts or tenors, and other administrative matters) that the Determination Agent decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Determination Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Determination Agent determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Determination Agent determines is reasonably practicable);

"*Benchmark Replacement Date*" means the earliest to occur of the following events with respect to the then-current Benchmark (including the daily published component used in the calculation thereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. in the case of clause (I) or (II) of the definition of "Benchmark Transition Event," the later
of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark (or such component); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. in the case of clause (III) of the definition of "Benchmark Transition Event," the date of the
public statement or publication of information referenced therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination.

For the avoidance of doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to Benchmark also include any reference rate underlying such Benchmark;

"*Benchmark Transition Event*" means the occurrence of one or more of the following events with respect to the then-current Benchmark (including the daily published component used in the calculation thereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. a public statement or publication of information by or on behalf of the administrator of the Benchmark (or such
component) announcing that such administrator has ceased or will cease to provide the Benchmark (or such component), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that
will continue to provide the Benchmark (or such component);

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. a public statement or publication of information by the regulatory supervisor for the administrator of the
Benchmark (or such component), the central bank for the currency of the Benchmark (or such component), an insolvency official with jurisdiction over the administrator for the Benchmark (or such component), a resolution authority with jurisdiction
over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark (or such component), which states that the administrator of the Benchmark (or such component)
has ceased or will cease to provide the Benchmark (or such component) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark (or such
component); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. a public statement or publication of information by the regulatory supervisor for the administrator of the
Benchmark announcing that the Benchmark is no longer representative;

"*Determination Agent*" means an independent bank of international repute selected by and acting as our agent for the purposes of the conditions of the Floating Rate Notes and notified to the Fiscal Agent and Calculation Agent in writing. Neither the Calculation Agent nor the Fiscal Agent shall be responsible for the calculations made by, or the actions or omissions of, the Determination Agent and shall not be liable for any losses caused thereby.

"*ISDA Definitions*" means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time;

"*ISDA Fallback Adjustment*" means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor;

"*ISDA Fallback Rate*" means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment;

"*Reference Time*" with respect to any determination of the Benchmark means (1) if the Benchmark is Compounded Daily SOFR, the SOFR Determination Time, as such time is defined herein, and (2) if the Benchmark is not Compounded Daily SOFR, the time determined by the Determination Agent in accordance with the Benchmark Replacement Conforming Changes;

"*Relevant Governmental Body*" means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto; and

"*Unadjusted Benchmark Replacement*" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

*The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government.* 

**Denomination** 

The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess thereof.

------

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

We may not redeem the Notes prior to maturity. At maturity, we will redeem the Notes at par.

**Form and Registration** 

We will issue each series of the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of and deposited with the custodian for DTC. Except as described in the accompanying prospectus under "Description of the Securities—Description of Debt Securities—Global Securities," the global notes will not be exchangeable for Notes in definitive registered form, and will not be issued in definitive registered form. Financial institutions, acting as direct and indirect participants in DTC, will represent your beneficial interests in the global notes. These financial institutions will record the ownership and transfer of your beneficial interest through book-entry accounts. You may hold your beneficial interests in the Notes through Euroclear or Clearstream if you are a participant in such systems, or indirectly through organizations that are participants in such systems. Any secondary market trading of book-entry interests in the Notes will take place through DTC participants, including Euroclear and Clearstream. See "Clearance and Settlement—Transfers Within and Between DTC, Euroclear and Clearstream."

***General***

The fiscal agent will not charge you any fees for the Notes, other than reasonable fees for the replacement of lost, stolen, mutilated or destroyed Notes. However, you may incur fees for the maintenance and operation of the book-entry accounts with the clearing systems in which your beneficial interests are held.

For so long as the Notes are listed on the SGX-ST and the rules of the SGX-ST so require, in the event that any of the global notes are exchanged for Notes in definitive registered form, we will appoint and maintain a paying agent in Singapore, where the certificates representing the Notes may be presented or surrendered for payment or redemption. In addition, in the event that any of the global notes are exchanged for Notes in definitive registered form, an announcement of such exchange will be made through the SGX-ST by or on behalf of us. Such announcement will include all material information with respect to the delivery of the certificates representing the Notes, including details of the paying agent in Singapore.

**Further Issues** 

We may from time to time, without the consent of the holders of the Notes, create and issue additional debt securities with the same terms and conditions as either series of the Notes in all respects so that such further issue shall be consolidated and form a single series with the relevant series of the Notes. We will not issue any such additional debt securities unless such additional securities have less than a de minimis amount of original issue discount or such issuance would otherwise constitute a "qualified reopening" for U.S. federal income tax purposes.

**Notices** 

All notices regarding the Notes will be published by us in London in the Financial Times and in New York in The Wall Street Journal (U.S. Edition). If we cannot, for any reason, publish notice in any of those newspapers, we will choose an appropriate alternate English language newspaper of general circulation, and notice in that newspaper will be considered valid notice. Notice will be considered made on the first date of its publication.

------

##### [**Table of Contents**](#toc)
**CLEARANCE AND SETTLEMENT** 

*We have obtained the information in this section from sources we believe to be reliable, including DTC, Euroclear and Clearstream. We accept responsibility only for accurately extracting information from such sources. DTC, Euroclear and Clearstream are under no obligation to perform or continue to perform the procedures described below, and they may modify or discontinue them at any time. Neither we nor the registrar will be responsible for DTC's, Euroclear's or Clearstream's performance of their obligations under their rules and procedures. Nor will we or the registrar be responsible for the performance by direct or indirect participants of their obligations under their rules and procedures.* 

**Introduction** 

***The Depository Trust Company***

DTC is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited-purpose trust company organized under the New York Banking Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "banking organization" under the New York Banking Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a member of the Federal Reserve System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "clearing corporation" under the New York Uniform Commercial Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "clearing agency" registered under Section 17A of the Securities Exchange Act of 1934.

DTC was created to hold securities for its participants and facilitate the clearance and settlement of securities transactions between its participants. It does this through electronic book-entry changes in the accounts of its direct participants, eliminating the need for physical movement of securities certificates.

***Euroclear and Clearstream***

Like DTC, Euroclear and Clearstream hold securities for their participants and facilitate the clearance and settlement of securities transactions between their participants through electronic book-entry changes in their accounts. Euroclear and Clearstream provide various services to their participants, including the safekeeping, administration, clearance and settlement and lending and borrowing of internationally traded securities. Participants in Euroclear and Clearstream are financial institutions such as underwriters, securities brokers and dealers, banks and trust companies. Some of the underwriters participating in this offering are participants in Euroclear or Clearstream. Other banks, brokers, dealers and trust companies have indirect access to Euroclear or Clearstream by clearing through or maintaining a custodial relationship with a Euroclear or Clearstream participant.

***Ownership of the Notes through DTC, Euroclear and Clearstream***

We will issue the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of DTC. Financial institutions, acting as direct and indirect participants in DTC, will represent your beneficial interests in the global notes. These financial institutions will record the ownership and transfer of your beneficial interests through book-entry accounts. You may hold your beneficial interests in the global notes through Euroclear or Clearstream, if you are a DTC participant in such systems, or indirectly through organizations that are DTC participants in such systems. Euroclear and Clearstream will hold their Euroclear/Clearstream participants' beneficial interests in the global notes in their customers' securities accounts with their depositaries. These depositaries of Euroclear and Clearstream in turn will hold such interests in their customers' securities accounts with DTC.

We and the fiscal agent generally will treat the registered holder of the Notes, initially Cede & Co., as the absolute owner of the Notes for all purposes. Once we and the fiscal agent make payments to the registered holder, we and the fiscal agent will no longer be liable on the Notes for the amounts so paid. Accordingly, if you

------

##### [**Table of Contents**](#toc)
own a beneficial interest in the global notes, you must rely on the procedures of the institutions through which you hold your interests in the Notes, including DTC, Euroclear, Clearstream and their respective participants, to exercise any of the rights granted to holders of Notes. Under existing industry practice, if you desire to take any action that Cede & Co., as the holder of the global notes, is entitled to take, then Cede & Co. would authorize the DTC participant through which you own your beneficial interest to take such action. The DTC participant would then either authorize you to take the action or act for you on your instructions.

DTC may grant proxies or authorize its DTC participants, or persons holding beneficial interests in the Notes through such DTC participants, to exercise any rights of a holder or take any actions that a holder is entitled to take under the Fiscal Agency Agreement or the Notes. Euroclear's or Clearstream's ability to take actions as holder under the Notes or the Fiscal Agency Agreement will be limited by the ability of their respective depositaries to carry out such actions for them through DTC. Euroclear and Clearstream will take such actions only in accordance with their respective rules and procedures.

The fiscal agent will not charge you any fees for the Notes, other than reasonable fees and indemnity satisfactory to the fiscal agent for the replacement of lost, stolen, mutilated or destroyed Notes. However, you may incur fees for the maintenance and operation of the book-entry accounts with the clearing systems in which your beneficial interests are held.

**Transfers Within and Between DTC, Euroclear and Clearstream** 

***Trading Between DTC Purchasers and Sellers***

DTC participants will transfer interests in the Notes among themselves in the ordinary way according to DTC rules. Participants will pay for such transfers by wire transfer. The laws of some states require certain purchasers of securities to take physical delivery of the securities in definitive form. These laws may impair your ability to transfer beneficial interests in the global notes to such purchasers. DTC can act only on behalf of its direct participants, who in turn act on behalf of indirect participants and certain banks. Thus, your ability to pledge a beneficial interest in the global notes to persons that do not participate in the DTC system, and to take other actions, may be limited because you will not possess a physical certificate that represents your interest.

***Trading Between Euroclear and/or Clearstream Participants***

Participants in Euroclear and Clearstream will transfer interests in the Notes among themselves according to the rules and operating procedures of Euroclear and Clearstream.

***Trading Between a DTC Seller and a Euroclear or Clearstream Purchaser***

When the Notes are to be transferred from the account of a DTC participant to the account of a Euroclear or Clearstream participant, the purchaser must first send instructions to Euroclear or Clearstream through a participant at least one business day prior to the settlement date. Euroclear or Clearstream will then instruct its depositary to receive the Notes and make payment for them. On the settlement date, the depositary will make payment to the DTC participant's account, and the Notes will be credited to the depositary's account. After settlement has been completed, DTC will credit the Notes to Euroclear or Clearstream, Euroclear or Clearstream will credit the Notes, in accordance with its usual procedures, to the participant's account, and the participant will then credit the purchaser's account. These securities credits will appear the next day (European time) after the settlement date. The cash debit from the account of Euroclear or Clearstream will be back-valued to the value date, which will be the preceding day if settlement occurs in New York. If settlement is not completed on the intended value date (i.e., the trade fails), the cash debit will instead be valued at the actual settlement date.

Participants in Euroclear and Clearstream will need to make funds available to Euroclear or Clearstream to pay for the Notes by wire transfer on the value date. The most direct way of doing this is to pre-position funds (i.e., have funds in place at Euroclear or Clearstream before the value date), either from cash on hand or existing

------

##### [**Table of Contents**](#toc)
lines of credit. Under this approach, however, participants may take on credit exposure to Euroclear and Clearstream until the Notes are credited to their accounts one day later.

As an alternative, if Euroclear or Clearstream has extended a line of credit to a participant, the participant may decide not to pre-position funds, but to allow Euroclear or Clearstream to draw on the line of credit to finance settlement for the Notes. Under this procedure, Euroclear or Clearstream would charge the participant overdraft charges for one day, assuming that the overdraft would be cleared when the Notes were credited to the participant's account. However, interest on the Notes would accrue from the value date. Therefore, in many cases the interest income on the Notes which the participant earns during that one-day period will substantially reduce or offset the amount of the participant's overdraft charges. Of course, this result will depend on the cost of funds (i.e., the interest rate that Euroclear or Clearstream charges) to each participant.

Since the settlement will occur during New York business hours, a DTC participant selling an interest in the Notes can use its usual procedures for transferring global securities to the depositories of Euroclear or Clearstream for the benefit of Euroclear or Clearstream participants. The DTC seller will receive the sale proceeds on the settlement date. Thus, to the DTC seller, a cross-market sale will settle no differently than a trade between two DTC participants.

Finally, day traders who use Euroclear or Clearstream and who purchase Notes from DTC participants for credit to Euroclear participants or Clearstream participants should note that these trades will automatically fail unless one of three steps is taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• borrowing through Euroclear or Clearstream for one day, until the purchase side of the day trade is reflected in the day trader's Euroclear or Clearstream account, in accordance with the clearing system's
customary procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• borrowing the Notes in the United States from DTC participants no later than one day prior to settlement, which would allow sufficient time for the Notes to be reflected in the Euroclear or Clearstream account in order
to settle the sale side of the trade; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• staggering the value dates for the buy and sell sides of the trade so that the value date for the purchase from the DTC participant is at least one day prior to the value date for the sale to the Euroclear or
Clearstream participant.

***Trading Between a Euroclear or Clearstream Seller and a DTC Purchaser***

Due to time-zone differences in their favor, Euroclear and Clearstream participants can use their usual procedures to transfer Notes through their depositaries to a DTC participant. The seller must first send instructions to Euroclear or Clearstream through a participant at least one business day prior to the settlement date. Euroclear or Clearstream will then instruct its depositary to credit the Notes to the DTC participant's account and receive payment. The payment will be credited in the account of the Euroclear or Clearstream participant on the following day, but the receipt of the cash proceeds will be back-valued to the value date, which will be the preceding day if settlement occurs in New York. If settlement is not completed on the intended value date (i.e., the trade fails), the receipt of the cash proceeds will instead be valued at the actual settlement date.

If the Euroclear or Clearstream participant selling the Notes has a line of credit with Euroclear or Clearstream and elects to be in debit for the Notes until it receives the sale proceeds in its account, then the back-valuation may substantially reduce or offset any overdraft charges that the participant incurs over that period.

Settlement in other currencies between DTC and Euroclear and Clearstream is possible using free-of-payment transfers to move the Notes, but funds movement will take place separately.

------

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

**Korean Taxation** 

The third paragraph under the heading "Tax Treaties" under "Taxation—Korean Taxation" in the accompanying prospectus shall be hereby deleted in its entirety and replaced with the following:

Furthermore, in order to claim the benefit of a tax rate reduction or tax exemption available under the applicable tax treaties, you should submit to the payer of such Korean source income an application (for reduced withholding tax rate, "application for entitlement to reduced tax rate" and in the case of exemption from withholding tax, "application for exemption" under a tax treaty along with the documents proving the beneficial owner of such Korean source income, including a certificate of the non-resident holder's tax residence issued by a competent authority of the non-resident holder's residence country) as the beneficial owner, or a BO Application. If you are a non-resident corporation and the amount of tax reduction or exemption is W1 billion or more (excluding cases where the domestic source income is paid through a foreign investment scheme or where the real beneficiary of domestic source income is a governmental organization of the other country to a tax treaty prescribed by the Ministry of Economy and Finance, including the government of the signatory state to the relevant tax treaty, local government, or the central bank), you must additionally submit (i) the names and addresses of the members of your board of directors, (ii) personal details and current equity holdings of your shareholders, (iii) your audit reports for the past three years, or (iv) tax returns or financial statements (including detailed statements) submitted to a relevant tax authority of the non-resident's country of residence for the past three years, together with Korean translations thereof. Such application should be submitted to the withholding agent prior to the payment date of the relevant income. Subject to certain exceptions, where the relevant income is paid to an overseas investment vehicle (which is not the beneficial owner of such income), or an OIV, a beneficial owner claiming the benefit of an applicable tax treaty with respect to such income must submit its BO Application to such OIV, which must submit an OIV report and a schedule of beneficial owners to the withholding agent prior to the payment date of such income. Starting from January 1, 2022, an OIV is deemed to be a beneficial owner of the Korean source income if (i) under the applicable tax treaty, the OIV bears tax liabilities in the country in which it is established or the OIV is deemed to be the beneficial owner of the Korean source income, and (ii) the Korean source income is eligible for the treaty benefits under the tax treaty. The benefits under a tax treaty between Korea and the country of such OIV's residence will apply with respect to the relevant income paid to such OIV, subject to certain application requirements as prescribed by Korean tax law. In the case of a tax exemption application, the withholding agent is required to submit such application (together with the applicable OIV report in the case of income paid to an OIV) to the relevant district tax office by the ninth day of the month following the date of the payment of such income. In the case of a tax rate reduction, the withholding agent is required to submit the application (together with the applicable OIV report in the case of income paid to an OIV) to the relevant district tax office by the end of February of the year following the date of payment of such income (or, in the case of a temporary suspension or permanent closure of business, by the end of the month following the second month after the month in which such suspension or closure occurs).

For a discussion of certain Korean tax considerations that may be relevant to you if you invest in the Notes, see "Taxation—Korean Taxation" in the accompanying prospectus.

**U.S. Federal Income Tax Considerations** 

For a discussion of U.S. federal income tax considerations that may be relevant to you if you are a beneficial owner of the Notes and are a U.S. holder, see "Taxation—U.S. Federal Income Tax Considerations" in the accompanying prospectus.

------

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

**Relationship with the Underwriters** 

We and the underwriters named below (the "Underwriters") have entered into a Terms Agreement dated January 21, 2026 (the "Terms Agreement") with respect to the Notes relating to the Underwriting Agreement—Standard Terms (together with the Terms Agreement, the "Underwriting Agreement") filed as an exhibit to the registration statement. Subject to the terms and conditions set forth in the Underwriting Agreement, we have agreed to sell to each of the Underwriters, severally and not jointly, and each of the Underwriters has, severally and not jointly, agreed to purchase, the following principal amount of the Notes set out opposite its name below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Names of the Underwriters** | **Principal Amount of<br>the 2029 Notes** | **Principal Amount of<br>the 2029 Notes** | **Principal Amount of<br>the 2031 Notes** | **Principal Amount of<br>the 2031 Notes** | **Principal Amount of<br>the Floating Rate Notes** | **Principal Amount of<br>the Floating Rate Notes** |
|  Australia and New Zealand Banking Group Limited | US$ | 178572000 | US$ | 178572000 | US$ | 71429000 |
|  BofA Securities, Inc. |  | 178572000 |  | 178572000 |  | 71429000 |
|  Crédit Agricole Corporate and Investment Bank |  | 178572000 |  | 178572000 |  | 71429000 |
|  KB SECURITIES CO., LTD. |  | 178571000 |  | 178571000 |  | 71429000 |
|  KDB Asia Limited |  | 178571000 |  | 178571000 |  | 71428000 |
|  Morgan Stanley & Co. International plc |  | 178571000 |  | 178571000 |  | 71428000 |
|  MUFG Securities Asia Limited |  | 178571000 |  | 178571000 |  | 71428000 |
|  **Total** | **US$** | **1250000000** | **US$** | **1250000000** | **US$** | **500000000** |

---

Any Underwriter who is not registered as a broker-dealer with the Securities and Exchange Commission will not engage in any transaction related to the Notes in the United States except as permitted by the Exchange Act. Crédit Agricole Corporate and Investment Bank will offer the Notes in the United States through its registered broker-dealer affiliate in the United States, Crédit Agricole Securities (USA) Inc. KDB Asia Limited, one of the underwriters, is our affiliate and has agreed to offer and sell the Notes only outside the United States to non-U.S. persons.

Under the terms and conditions of the Underwriting Agreement, if the Underwriters take any series of the Notes, then the Underwriters are obligated to take and pay for all of the Notes of such series.

The Underwriters initially propose to offer the Notes directly to the public at the offering price described on the cover page of this prospectus supplement. After the initial offering of the Notes, the Underwriters may from time to time vary the offering price and other selling terms.

If a jurisdiction requires that the offering be made by a licensed broker or dealer and the Underwriters or any affiliate of the Underwriters is a licensed broker or dealer in that jurisdiction, the offering shall be deemed to be made by that Underwriter or its affiliate on our behalf in such jurisdiction.

The Notes are a new class of securities with no established trading market. Applications will be made to the SGX-ST for the listing and quotation of the Notes on the SGX-ST. In addition, application will be made to list the Notes on the Luxembourg Stock Exchange and to have the Notes admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. Application will also be made for listing of the Notes to the International Securities Market of the London Stock Exchange. No assurance can be given that such applications will be approved or that such listings will be maintained. The Underwriters have advised us that they intend to make a market in the Notes. However, they are not obligated to do so and they may discontinue any market making activities with respect to the Notes at any time without notice. Accordingly, we cannot assure you as to the liquidity of any trading market for the Notes.

------

##### [**Table of Contents**](#toc)
We have agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended, or to contribute to payments which the Underwriters may be required to make in respect of any such liabilities.

The amount of our net proceeds from the 2029 Notes is US$1,243,187,500 after deducting underwriting discounts but not estimated expenses. Expenses associated with the 2029 Notes offering are estimated to be US$100,000. The Underwriters have agreed to pay certain of our expenses incurred in connection with the offering of the 2029 Notes.

The amount of our net proceeds from the 2031 Notes is US$1,241,675,000 after deducting underwriting discounts but not estimated expenses. Expenses associated with the 2031 Notes offering are estimated to be US$100,000. The Underwriters have agreed to pay certain of our expenses incurred in connection with the offering of the 2031 Notes.

The amount of our net proceeds from the Floating Rate Notes is US$499,000,000 after deducting underwriting discounts but not estimated expenses. Expenses associated with the Floating Rate Notes offering are estimated to be US$100,000. The Underwriters have agreed to pay certain of our expenses incurred in connection with the offering of the Floating Rate Notes.

The Underwriters and certain of their affiliates may have performed certain commercial banking, investment banking and advisory services for us and/or our affiliates from time to time for which they have received customary fees and expenses and may, from time to time, engage in transactions with and perform services for us and/or our affiliates in the ordinary course of their business.

The Underwriters or certain of their affiliates may purchase Notes and be allocated Notes for asset management and/or proprietary purposes but not with a view to distribution. The Underwriters or their respective affiliates may purchase Notes for their own account and enter into transactions, including credit derivatives, such as asset swaps, repackaging and credit default swaps relating to Notes and/or other securities of us or our subsidiaries or affiliates at the same time as the offer and sale of Notes or in secondary market transactions. Such transactions would be carried out as bilateral trades with selected counterparties and separately from any existing sale or resale of Notes to which this prospectus supplement relates (notwithstanding that such selected counterparties may also be purchasers of Notes).

**Important Notice to CMIs (including private banks)** 

This notice to CMIs (including private banks) is a summary of certain obligations the SFC Code imposes on CMIs, which require the attention and cooperation of other CMIs (including private banks). Certain CMIs may also be acting as OCs for this offering and are subject to additional requirements under the SFC Code.

Prospective investors who are the directors, employees or major shareholders of the Issuer, a CMI or its group companies would be considered under the SFC Code as having an Association with the Issuer, the CMI or the relevant group company. CMIs should specifically disclose whether their investor clients have any Association when submitting orders for the Notes. In addition, private banks should take all reasonable steps to identify whether their investor clients may have any Associations with the Issuer or any CMI (including its group companies) and inform the Underwriters accordingly.

CMIs are informed that the marketing and investor targeting strategy for this offering includes institutional investors, sovereign wealth funds, pension funds, hedge funds, family offices and high net worth individuals, in each case, subject to the selling restrictions and any MiFID II product governance language or any UK MiFIR product governance language set out elsewhere in this prospectus supplement.

CMIs should ensure that orders placed are bona fide, are not inflated and do not constitute duplicated orders (i.e., two or more corresponding or identical orders placed via two or more CMIs). CMIs should enquire with

------

##### [**Table of Contents**](#toc)
their investor clients regarding any orders which appear unusual or irregular. CMIs should disclose the identities of all investors when submitting orders for the Notes (except for omnibus orders where underlying investor information may need to be provided to any OCs when submitting orders). Failure to provide underlying investor information for omnibus orders, where required to do so, may result in that order being rejected. CMIs should not place "X-orders" into the order book.

CMIs should segregate and clearly identify their own proprietary orders (and those of their group companies, including private banks as the case may be) in the order book and book messages.

CMIs (including private banks) should not offer any rebates to prospective investors or pass on any rebates provided by the Issuer. In addition, CMIs (including private banks) should not enter into arrangements which may result in prospective investors paying different prices for the Notes.

The SFC Code requires that a CMI disclose complete and accurate information in a timely manner on the status of the order book and other relevant information it receives to targeted investors for them to make an informed decision. In order to do this, those Underwriters in control of the order book should consider disclosing order book updates to all CMIs.

When placing an order for the Notes, private banks should disclose, at the same time, if such order is placed other than on a "principal" basis (whereby it is deploying its own balance sheet for onward selling to investors). private banks who do not provide such disclosure are hereby deemed to be placing their order on such a "principal" basis. Otherwise, such order may be considered to be an omnibus order pursuant to the SFC Code. private banks should be aware that placing an order on a "principal" basis may require the Underwriters to apply the "proprietary orders" of the SFC Code to such order and will require the Underwriters to apply the "rebates" requirements of the SFC Code (if applicable) to such order.

In relation to omnibus orders, when submitting such orders, CMIs (including private banks) that are subject to the SFC Code should disclose underlying investor information in respect of each order constituting the relevant omnibus order (failure to provide such information may result in that order being rejected). Underlying investor information in relation to omnibus orders should consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name of each underlying investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A unique identification number for each investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Whether an underlying investor has any "Associations" (as used in the SFC Code);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Whether any underlying investor order is a "Proprietary Order" (as used in the SFC Code);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Whether any underlying investor order is a duplicate order.

Underlying investor information in relation to omnibus orders should be sent to: hkbondsyndicate@anz.com; bofa_dcm_syndicate_pb_orders@bofa.com; HKG-Syndicate@ca-cib.com; global.dcm@kbfg.com; kdb_syndicate@kdb.co.kr; omnibus_debt@morganstanley.com; Asia-Syndicate@hk.sc.mufg.jp.

To the extent information being disclosed by CMIs and investors is personal and/or confidential in nature, CMIs (including private banks) agree and warrant: (A) to take appropriate steps to safeguard the transmission of such information to any OCs; and (B) that they have obtained the necessary consents from the underlying investors to disclose such information to any OCs. By submitting an order and providing such information to any OCs, each CMI (including private banks) further warrants that they and the underlying investors have understood and consented to the collection, disclosure, use and transfer of such information by any OCs and/or any other third parties as may be required by the SFC Code, including to the Issuer, relevant regulators and/or any other third parties as may be required by the SFC Code, for the purpose of complying with the SFC Code, during the bookbuilding process for this offering. CMIs that receive such underlying investor information are reminded that

------

##### [**Table of Contents**](#toc)
such information should be used only for submitting orders in this offering. The Underwriters may be asked to demonstrate compliance with their obligations under the SFC Code, and may request other CMIs (including private banks) to provide evidence showing compliance with the obligations above (in particular, that the necessary consents have been obtained). In such event, other CMIs (including private banks) are required to provide the Underwriters with such evidence within the timeline requested.

By placing an order, prospective investors (including any underlying investors in relation to omnibus orders) are deemed to represent to the Underwriters that it is not a Sanctions Restricted Person. A "Sanctions Restricted Person" means an individual or entity (a "Person"): (a) that is, or is directly or indirectly owned or controlled by a Person that is, described or designated in (i) the most current "Specially Designated Nationals and Blocked Persons" list (which as of the date hereof can be found at: http://www.treasury.gov/ofac/downloads/sdnlist.pdf) or (ii) the Foreign Sanctions Evaders List (which as of the date hereof can be found at: http://www.treasury.gov/ofac/downloads/fse/fselist.pdf) or (iii) the most current "Consolidated list of persons, groups and entities subject to EU financial sanctions" (which as of the date hereof can be found at: https://eeas.europa.eu/headquarters/headquartershomepage_en/8442/Consolidated%20list%20of%20sanctions); or (b) that is otherwise the subject of any sanctions administered or enforced by any Sanctions Authority, other than solely by virtue of: (i) their inclusion in the most current "Sectoral Sanctions Identifications" list (which as of the date hereof can be found at: https://www.treasury.gov/ofac/downloads/ssi/ssilist.pdf) (the "SSI List"), (ii) their inclusion in Annexes 3, 4, 5 and 6 of Council Regulation No. 833/2014, as amended by Council Regulation No. 960/2014 (the "EU Annexes"), (iii) their inclusion in any other list maintained by a Sanctions Authority, with similar effect to the SSI List or the EU Annexes, (iv) them being the subject of restrictions imposed by the U.S. Department of Commerce's Bureau of Industry and Security ("BIS") under which BIS has restricted exports, re-exports or transfers of certain controlled goods, technology or software to such individuals or entities; (v) them being an entity listed in the Annex to the new Executive Order of 3 June 2021 entitled "Addressing the Threat from Securities Investments that Finance Certain Companies of the People's Republic of China" (known as the Non-SDN Chinese Military- Industrial Complex Companies List), which amends the Executive Order 13959 of 12 November 2020 entitled "Addressing the threat from Securities Investments that Finance Chinese Military Companies"; or (vi) them being subject to restrictions imposed on the operation of an online service, Internet application or other information or communication services in the United States directed at preventing a foreign government from accessing the data of U.S. persons; or (c) that is located, organized or a resident in a comprehensively sanctioned country or territory, including Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, the Donetsk's People's Republic or Luhansk People's Republic. "Sanctions Authority" means: (a) the United States government; (b) the United Nations; (c) the European Union (or any of its member states); (d) the United Kingdom; (e) any other equivalent governmental or regulatory authority, institution or agency which administers economic, financial or trade sanctions; and (f) the respective governmental institutions and agencies of any of the foregoing including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury, the United States Department of State, the United States Department of Commerce and His Majesty's Treasury.

**Delivery of the Notes** 

We expect to make delivery of the Notes, against payment in same-day funds on or about January 28, 2026, which we expect will be the fifth business day following the date of this prospectus supplement. Under Rule 15c6-1 promulgated under the Securities Exchange Act of 1934, as amended, U.S. purchasers are generally required to settle trades in the secondary market in one business day, unless they and the other parties to any such trade expressly agree otherwise. Accordingly, if you wish to trade in the Notes on any day prior to the first business day from the settlement, because the Notes will initially settle in T+5, you may be required to specify an alternate settlement cycle at the time of your trade to prevent a failed settlement. Purchasers in other countries should consult with their own advisors.

------

##### [**Table of Contents**](#toc)
**Foreign Selling Restrictions** 

Each Underwriter has agreed, severally and not jointly, to the following selling restrictions in connection with the offering with respect to the following jurisdictions:

***Korea***

Each Underwriter has severally represented and agreed that (i) it has not offered, sold or delivered and will not offer, sell or deliver, directly or indirectly, any Notes in Korea, or to, or for the account or benefit of, any resident of Korea, except as otherwise permitted by applicable Korean laws and regulations, and (ii) any securities dealer to whom the Underwriters may sell the Notes will agree that it will not offer any Notes, directly or indirectly, in Korea, or to any resident of Korea, except as permitted by applicable Korean laws and regulations, or to any other dealer who does not so represent and agree.

***United Kingdom***

Each Underwriter has severally represented and agreed that (i) it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act of 2000 (the "FSMA")) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to us, and (ii) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to any Notes in, from or otherwise involving the United Kingdom.

***Spain***

The proposed offer of Notes has not been registered with the Comisión Nacional del Mercado de Valores (the "CNMV"). Accordingly, each of the Underwriters has represented and agreed that Notes can only be offered in Spain to qualified investors pursuant to and in compliance with the consolidated text of the Securities Market Law approved by Spanish Royal Legislative Decree 4/2015, Spanish Royal Decree 1310/2005, both as amended from time to time, and any regulation issued thereunder.

***Japan***

Each Underwriter has severally represented and agreed that the Notes have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended, the "Financial Instruments and Exchange Act"). Accordingly, each Underwriter has severally represented and agreed that it has not, directly or indirectly, offered or sold and will not, directly or indirectly, offer or sell any Notes in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan) or to others for re-offering or re-sale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Act and other relevant laws and regulations of Japan.

***Hong Kong***

Each Underwriter has severally represented and agreed that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it has not offered or sold and will not offer or sell in Hong Kong, by means of any document, any Notes other than (a) to "professional investors" as defined in the Securities and Futures Ordinance (Cap.
571) of Hong Kong (the "SFO") and any rules made under the SFO; or (b) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions)
Ordinance (Cap. 32) of Hong Kong (the "C(WUMP)O") or which do not constitute an offer to the public within the meaning of the C(WUMP)O; and

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it has not issued or had in its possession for the purposes of issue, and will not issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document
relating to the Notes, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to Notes which are or
are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the SFO and any rules made under the SFO.

***Singapore***

Each Underwriter has acknowledged that this prospectus supplement and the accompanying prospectus have not been registered as a prospectus with the Monetary Authority of Singapore.

Accordingly, each Underwriter has severally represented and agreed that it has not offered or sold any Notes or caused the Notes to be made the subject of an invitation for subscription or purchase and will not offer or sell any Notes or cause the Notes to be made the subject of an invitation for subscription or purchase, and has not circulated or distributed, nor will it circulate or distribute, this prospectus supplement or the accompanying prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the Notes, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act 2001 of Singapore, as modified or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA or (ii) to an accredited investor (as defined in Section 4A of the SFA) pursuant to and in accordance with the conditions specified in Section 275 of the SFA.

***Australia***

No prospectus or other disclosure document (as defined in the Corporations Act 2001 of Australia) in relation to the offering of the Notes has been or will be lodged with or registered by Australian Securities and Investments Commission or the Australian Securities Exchange Limited. Each Underwriter has represented and agreed that it has not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) made or invited, and will not make or invite, an offer of the Notes for issue or sale in Australia (including
an offer or invitation which is received by a person in Australia); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) distributed or published and will not distribute or publish any draft, preliminary or final form offering
memorandum, advertisement or other offering material relating to the Notes in Australia,

unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the minimum aggregate consideration payable by each offeree is at least AUD 500,000 (or its equivalent in an
alternate currency) (disregarding money lent by the offeror or its associates) or the offer otherwise does not require disclosure to investors in accordance with Part 6D.2 and Part 7 of the Corporations Act 2001 of Australia; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such action complies with all applicable laws, directives and regulations and does not require any document to
be lodged with, or registered by, the Australian Securities and Investments Commission.

Each Underwriter has agreed that it will not sell the Notes in circumstances where employees of the Underwriter aware of, or involved in, the sale know, or have reasonable grounds to suspect, that the Notes, or an interest in or right in respect of the Notes, was being, or would later be, acquired either directly or indirectly by a resident of Australia, or a non-resident who is engaged in carrying on business in Australia at or through a permanent establishment of that non-resident in Australia (the expressions "resident of Australia", "non-resident" and "permanent establishment" having the meanings given to them by the Australian Tax Act).

------

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

Prospective Canadian investors are advised that the information contained within the prospectus supplement and the accompanying prospectus has not been prepared with regard to matters that may be of particular concern to Canadian investors. Accordingly, prospective Canadian investors should consult with their own legal, financial and tax advisers concerning the information contained within the prospectus supplement and the accompanying prospectus and as to the suitability of an investment in the Notes in their particular circumstances.

Each Underwriter has severally represented and agreed that the Notes may only be offered or sold in the provinces of Alberta, British Columbia, Ontario and Québec or to or for the benefit of a resident of these provinces pursuant to an exemption from the requirement to file a prospectus in such province in which such offer or sale is made, and only by a dealer duly registered under the applicable securities laws of that province or by a dealer that is relying in that province on the "international dealer" exemption provided by section 8.18 of National Instrument 31-103 *Registration Requirements*, *Exemptions and Ongoing Registrant Obligations* (NI 31-103). Furthermore, the Notes may only be offered or sold to or for the benefit of a resident of any such province provided that such resident is purchasing, or deemed to be purchasing, as principal and is both an "accredited investor" as defined in National Instrument 45-106 *Prospectus Exemptions* (NI 45-106) or subsection 73.3 (1) of the *Securities Act* (Ontario) and a "permitted client" as defined in NI 31-103. By purchasing any Notes and accepting delivery of a purchase confirmation a purchaser is representing to the underwriters and the dealer from whom the purchase confirmation is received that it is an "accredited investor" and "permitted client" as defined above. The distribution of the Notes in Canada is being made on a private placement basis only and any resale of the Notes must be made in accordance with applicable Canadian securities laws, which will vary depending on the relevant jurisdiction, and which may require resales to be made in accordance with prospectus and registration requirements or exemptions from the prospectus and registration requirements.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus supplement or the accompanying prospectus (including any amendment hereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Under Canadian securities law, National Instrument 33-105 *Underwriting Conflicts* (NI 33-105) provides disclosure requirements with respect to potential conflicts of interest between an issuer and underwriters, dealers or placement agents, as the case may be. To the extent any conflict of interest between us and any of the Underwriters (or any other placement agent acting in connection with this offering) may exist in respect of this offering, the applicable parties to this offering are relying on the exemption from these disclosure requirements provided to them by section 3A.3 of NI 33-105 (exemption based on U.S. disclosure).

Upon receipt of this prospectus, each Canadian purchaser hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English language only. *Par la réception de ce prospectus, chaque acheteur canadien confirme par les présentes qu'il a expressément exigé que tous les documents faisant foi ou se rapportant de quelque manière que ce soit à la vente des valeurs mobilières décrites aux présentes (incluant, pour plus de certitude, toute confirmation d'achat ou tout avis) soient rédigés en anglais seulement.*

**Price Stabilization and Short Position** 

In connection with this offering, any of the Underwriters appointed and acting in its capacity as stabilizing manager (the "Stabilizing Manager") or any person acting for it, on behalf of the Underwriters, may purchase and sell the Notes in the open market. These transactions may include over-allotment, covering transactions, penalty

------

##### [**Table of Contents**](#toc)
bids and stabilizing transactions. Over-allotment involves sales of the Notes in excess of the principal amount of Notes to be purchased by the Underwriters in this offering, which creates a short position for the Underwriters. Covering transactions involve purchases of the Notes in the open market after the distribution has been completed in order to cover short positions. A penalty bid occurs when a particular Underwriter repays to the Underwriters a portion of the underwriting discount received by it because the Underwriters or the Stabilizing Manager has repurchased Notes sold by or for the account of such Underwriter in stabilizing or short covering transactions. Stabilizing transactions consist of certain bids or purchases of Notes in the open market for the purpose of preventing or retarding a decline in the market price of the Notes while the offering is in progress. Any of these activities may have the effect of preventing or retarding a decline in the market price of the Notes. They may also cause the price of the Notes to be higher than the price that otherwise would exist in the open market in the absence of these transactions. The Stabilizing Manager may conduct these transactions in the over-the-counter market or otherwise. If the Stabilizing Manager commences any of these transactions, it may discontinue them at any time, and must discontinue them after a limited period.

------

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

The validity of the Notes is being passed upon for us by Cleary Gottlieb Steen & Hamilton LLP, New York, New York, and by Yulchon LLC, Seoul, Korea. Certain legal matters will also be passed upon for the Underwriters by Linklaters LLP, Seoul, Korea. In giving their opinions, Cleary Gottlieb Steen & Hamilton LLP and Linklaters LLP may rely as to matters of Korean law upon the opinion of Yulchon LLC, and Yulchon LLC may rely as to matters of New York law upon the opinions of Cleary Gottlieb Steen & Hamilton LLP.

**OFFICIAL STATEMENTS AND DOCUMENTS** 

Our Chief Executive Officer and Chairman of the Board of Directors, in his official capacity, has supplied the information set forth in this prospectus supplement under "Recent Developments—The Korea Development Bank." Such information is stated on his authority. The documents identified in the portion of this prospectus supplement captioned "Recent Developments—The Republic of Korea" as the sources of financial or statistical data are derived from official public documents of the Republic and of its agencies and instrumentalities.

**GENERAL INFORMATION** 

We were established in 1954 as a government-owned financial institution pursuant to The Korea Development Bank Act, as amended. The address of our registered office is 14, Eunhaeng-ro, Yeongdeungpo-gu, Seoul 07242, The Republic of Korea. Our Legal Entity Identifier is 549300ML2LNRZUCS7149.

Our Board of Directors can be reached at the address of our registered office: c/o 14, Eunhaeng-ro, Yeongdeungpo-gu, Seoul 07242, The Republic of Korea.

The issue of the Notes has been authorized by a resolution of our Board of Directors passed on December 24, 2025 and a decision of our Chief Executive Officer dated December 26, 2025. On January 7, 2026, we filed our reports on the proposed issuance of the Notes with the Ministry of Economy and Finance of Korea.

The registration statement with respect to us and the Notes has been filed with the U.S. Securities and Exchange Commission in Washington, D.C. under the Securities Act of 1933, as amended. Additional information concerning us and the Notes is contained in the registration statement and post-effective amendments to such registration statement, including their various exhibits, which are available to the public from the U.S. Securities and Exchange Commission's website at http://www.sec.gov. This website is maintained by the U.S. Securities and Exchange Commission and contains reports and other information regarding issuers that file electronically with the U.S. Securities and Exchange Commission.

The Notes have been accepted for clearance through DTC, Euroclear and Clearstream:

---

| | | |
|:---|:---|:---|
|  | **ISIN** | **CUSIP** |
|  2029 Notes | US500630EM64 | 500630 EM6 |
|  2031 Notes | US500630ER51 | 500630 ER5 |
|  Floating Rate Notes | US500630EP95 | 500630 EP9 |

---

------

##### [**Table of Contents**](#toc)
**HEAD OFFICE OF THE BANK** 

**14, Eunhaeng-ro** 

**Yeongdeungpo-gu, Seoul 07242** 

**The Republic of Korea** 

**FISCAL AGENT AND PRINCIPAL PAYING AGENT** 

**The Bank of New York Mellon** 

**London Branch** 

**One Canada Square** 

**London E14 5AL** 

**United Kingdom** 

**LEGAL ADVISORS TO THE BANK** 

---

| | |
|:---|:---|
| *as to Korean law* | *as to U.S. law* |
| **Yulchon LLC,**<br> **Parnas Tower, 38F**<br> **521 Teheran-ro, Gangnam-gu**<br> **Seoul 06164**<br> **The Republic of Korea** | **Cleary Gottlieb Steen & Hamilton LLP**<br> **c/o 19th Floor, Ferrum Tower**<br> **19 Eulji-ro 5-gil, Jung-gu**<br> **Seoul 04539**<br> **The Republic of Korea** |

---

**LEGAL ADVISOR TO THE UNDERWRITERS** 

*as to U.S. law* 

**Linklaters LLP** 

**22nd Floor, Center One Building** 

**26, Eulji-ro 5-gil, Jung-gu** 

**Seoul 04539** 

**The Republic of Korea** 

**AUDITOR OF THE BANK** 

**Nexia Samduk** 

**12F, S&S Building** 

**48 Ujeongguk-ro, Jongno-gu** 

**Seoul 03145** 

**The Republic of Korea** 

**SINGAPORE LISTING AGENT** 

**Shook Lin & Bok LLP** 

**1 Robinson Road** 

**#18-00 AIA Tower** 

**Singapore 048542** 

**LONDON LISTING AGENT** 

**Cleary Gottlieb Steen & Hamilton LLP** 

**2 London Wall Place** 

**London EC2Y 5AU** 

**England** 

**LUXEMBOURG LISTING AGENT** 

**Arendt & Medernach SA** 

**41A, Avenue John F. Kennedy** 

**L-2082 Luxembourg** 

------

##### [**Table of Contents**](#toc)
![LOGO](g20828g01g01.jpg)