# EDGAR Filing Document

**Accession Number:** 0001445930
**File Stem:** 0001193125-23-062004
**Filing Date:** 2023-3
**Character Count:** 1345189
**Document Hash:** 160aa3826e04ba1920b7375a9c424032
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-062004.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001193125-23-062004

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20230307

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KB Financial Group Inc.
- **CENTRAL INDEX KEY:** 0001445930
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** M5
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-53445
- **FILM NUMBER:** 23710964

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

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

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

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**Form 6-K** 

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**REPORT OF FOREIGN PRIVATE ISSUER** 

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

**UNDER THE SECURITIES EXCHANGE ACT OF 1934** 

**For the month of March 2023** 

**Commission File Number: 000-53445** 

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

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

**(Address of principal executive office)** 

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

Form 20-F ☒ Form 40-F ☐

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

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

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

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

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##### [**Table of Contents**](#toc)
**Audit Report of Kookmin Bank for Fiscal Year 2022** 

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

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

Exhibit 99.1: [An English-language translation of the Consolidated Audit Report of Kookmin Bank for FY 2022.](#ex991)

Exhibit 99.2: [An English-language translation of the Separate Audit Report of Kookmin Bank for FY 2022.](#ex992)

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

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

---

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

---

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

**Kookmin Bank and Subsidiaries** 

**Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

**(With Independent Auditors' Report Thereon)** 

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

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| | | |
|:---|:---|:---|
|  | **Page** | **Page** |
|  [Independent Auditors' Report](#ex99_1toc472896_1) |  | 1 |
|  [Consolidated Statements of Financial Position](#ex99_1toc472896_2) |  | 3 |
|  [Consolidated Statements of Comprehensive Income](#ex99_1toc472896_3) |  | 4 |
|  [Consolidated Statements of Changes in Equity](#ex99_1toc472896_4) |  | 5 |
|  [Consolidated Statements of Cash Flows](#ex99_1toc472896_5) |  | 6 |
|  [Notes to the Consolidated Financial Statements](#ex99_1toc472896_6) |  | 7 |

---

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

<u>Based on a report originally issued in Korean</u> 

To the Shareholder and Board of Directors

Kookmin Bank

**Opinion** 

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

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

**Basis for Opinion** 

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

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

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

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

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

------

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

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

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

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

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

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

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

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

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

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

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 7, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> This report is effective as of March 7, 2023, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries** 

**Consolidated Statements of Financial Position** 

**December 31, 2022 and 2021** 

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Notes** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 246736 | W | 25127794 | W | 25164991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 46812 |  | 21213408 |  | 18834364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 469 |  | 7767592 |  | 2965626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 4681011 |  | 374671976 |  | 361144701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments | 46812 |  | 75250169 |  | 63744909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in associates | 13 |  | 529981 |  | 390957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment | 814 |  | 3837511 |  | 3933943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment property | 14 |  | 345156 |  | 325065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 15 |  | 1054696 |  | 1028494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit asset | 23 |  | 307749 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax assets | 32 |  | 192041 |  | 61314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets | 1632 |  | 181257 |  | 149869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held for sale | 17 |  | 211757 |  | 237318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 4618 |  | 7078425 |  | 5583347 |
|  **Total assets** |  | W | 517769512 | W | 483564898 |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 46 | W | 108862 | W | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 469 |  | 7271434 |  | 2749412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 4619 |  | 381746749 |  | 363141416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 4620 |  | 45073117 |  | 32523161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 4621 |  | 29787722 |  | 29718734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions | 22 |  | 533370 |  | 426867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit liabilities | 23 |  | 16243 |  | 155284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax liabilities | 32 |  | 63029 |  | 57281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities | 1632 |  | 153844 |  | 701561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 462430 |  | 19291883 |  | 21089571 |
|  **Total liabilities** |  |  | 484046253 |  | 450675985 |
|  **Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital stock | 25 |  | 2021896 |  | 2021896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | 25 |  | 873850 |  | 574523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus | 25 |  | 5025335 |  | 5025335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 2534 |  | 12751 |  | 1395156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 253334 |  | 25834192 |  | 23660721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Provision of regulatory reserve for credit losses December 31, 2022: W2,915,162 million December 31, 2021: W2,534,401 million) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Amounts estimated to be appropriated December 31, 2022: W102,853 million December 31, 2021: W380,761 million) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Equity attributable to the shareholder of the Parent Company** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Equity attributable to the shareholder of the Parent Company** |  | 33768024 |  | 32677631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  | (44765) |  | 211282 |
|  **Total equity** |  |  | 33723259 |  | 32888913 |
|  **Total liabilities and equity** |  | W | 517769512 | W | 483564898 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries** 

**Consolidated Statements of Comprehensive Income** 

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income |  | W | 15358701 | W | 10674361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at fair value through other comprehensive income and amortized cost |  |  | 15068856 |  | 10515589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at fair value through profit or loss |  |  | 289845 |  | 158772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  |  | (6067680) |  | (2945885) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net interest income** | 26 |  | 9291021 |  | 7728476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission income |  |  | 1530158 |  | 1586944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission expense |  |  | (433550) |  | (399063) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net fee and commission income** | 27 |  | 1096608 |  | 1187881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net gains on financial instrument at fair value through profit or loss** | 28 |  | 210581 |  | 342834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net other operating expenses** | 29 |  | (944100) |  | (819739) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **General and administrative expenses** | 1415233040 |  | (4697951) |  | (4402731) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income before provision for credit losses** |  |  | 4956159 |  | 4036721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses | 711121822 |  | (1121170) |  | (522728) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net operating income** |  |  | 3834989 |  | 3513993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of profit of associates | 13 |  | 12666 |  | 57156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net other non-operating expenses | 31 |  | (37865) |  | (79605) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net non-operating expenses** |  |  | (25199) |  | (22449) |
|  **Profit before income tax expense** |  |  | 3809790 |  | 3491544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 32 |  | (1081483) |  | (953515) |
|  **Profit for the period** |  |  | 2728307 |  | 2538029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Adjusted profit after provision of regulatory reserve for credit losses | 25 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2022: W2,893,162 million |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2021: W2,210,003 million) |  |  |  |  |  |
| &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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities | 23 |  | 178516 |  | (71615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on equity securities at fair value through other comprehensive income |  |  | (953990) |  | 873707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Items that may be subsequently reclassified to profit or loss:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  | 145979 |  | 208480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on debt securities at fair value through other comprehensive income |  |  | (467183) |  | (274010) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income (loss) of associates |  |  | (64) |  | 165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on hedging instruments of net investments in foreign operations | 9 |  | (64990) |  | (54409) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on cash flow hedging instruments | 9 |  | 34010 |  | 9984 |
|  **Other comprehensive income (loss) for the period, net of tax** | 34 |  | (1127722) |  | 692302 |
|  **Total comprehensive income for the period** |  | W | 1600585 | W | 3230331 |
|  **Profit (loss) attributable to:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholder of the Parent Company |  | W | 2996015 | W | 2590764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  |  | (267708) |  | (52735) |
|  |  | W2,728,307 | W2,728,307 | W2,538,029 | W2,538,029 |
|  **Total comprehensive income (loss) for the period attributable to:** | **Total comprehensive income (loss) for the period attributable to:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholder of the Parent Company |  | W | 1856632 | W | 3265921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  |  | (256047) |  | (35590) |
|  |  | W1,600,585 | W1,600,585 | W3,230,331 | W3,230,331 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries** 

**Consolidated Statements of Changes in Equity** 

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

------

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | **Attributable to the shareholder of the Parent Company** | | | | |
| *(In millions of Korean won)* | **Capital<br>stock** | **Capital<br>stock** | **Hybrid<br>securities** | **Hybrid<br>securities** | **Capital<br>surplus** | **Capital<br>surplus** | **Accumulated<br>other<br>comprehensive<br>income** | **Accumulated<br>other<br>comprehensive<br>income** | **Retained<br>earnings** | **Retained<br>earnings** | **Non-controlling<br>interests** | **Non-controlling<br>interests** | **Total**<br>**equity** | **Total**<br>**equity** |
|  **Balance as of January 1, 2021** | W | 2021896 | W | 574523 | W | 4808482 | W | 494445 | W | 22243552 | W | 265176 | W | 30408074 |
|  **Comprehensive income for the period** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the period |  |  |  |  |  |  |  |  |  | 2590764 |  | (52735) |  | 2538029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  | (72054) |  |  |  | 439 |  | (71615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on equity securities at fair value through other comprehensive income |  |  |  |  |  |  |  | 1105217 |  | (231510) |  |  |  | 873707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  |  |  |  |  |  | 192705 |  |  |  | 15775 |  | 208480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on debt securities at fair value through other comprehensive income |  |  |  |  |  |  |  | (274941) |  |  |  | 931 |  | (274010) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive loss of associates |  |  |  |  |  |  |  | 165 |  |  |  |  |  | 165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on hedging instruments of net investments in foreign operations |  |  |  |  |  |  |  | (54409) |  |  |  |  |  | (54409) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on cash flow hedging instruments |  |  |  |  |  |  |  | 9984 |  |  |  |  |  | 9984 |
|  **Total comprehensive income for the period** |  |  |  |  |  |  |  | 906667 |  | 2359254 |  | (35590) |  | 3230331 |
|  **Transactions with the shareholder** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends |  |  |  |  |  |  |  |  |  | (917941) |  |  |  | (917941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  | (24144) |  |  |  | (24144) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transactions with non-controlling interests |  |  |  |  |  | 216853 |  | (5956) |  |  |  | (18304) |  | 192593 |
|  **Total transactions with the shareholder** |  |  |  |  |  | 216853 |  | (5956) |  | (942085) |  | (18304) |  | (749492) |
|  **Balance as of December 31, 2021** | W | 2021896 | W | 574523 | W | 5025335 | W | 1395156 | W | 23660721 | W | 211282 | W | 32888913 |
|  **Balance as of January 1, 2022** | W | 2021896 | W | 574523 | W | 5025335 | W | 1395156 | W | 23660721 | W | 211282 | W | 32888913 |
|  **Comprehensive income for the period** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the period |  |  |  |  |  |  |  |  |  | 2996015 |  | (267708) |  | 2728307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  | 178310 |  |  |  | 206 |  | 178516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on equity securities at fair value through other comprehensive income |  |  |  |  |  |  |  | (1197012) |  | 243022 |  |  |  | (953990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  |  |  |  |  |  | 133064 |  |  |  | 12915 |  | 145979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on debt securities at fair value through other comprehensive income |  |  |  |  |  |  |  | (465723) |  |  |  | (1460) |  | (467183) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive loss of associates |  |  |  |  |  |  |  | (64) |  |  |  |  |  | (64) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on hedging instruments of net investments <br>in foreign operations |  |  |  |  |  |  |  | (64990) |  |  |  |  |  | (64990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on cash flow hedging instruments |  |  |  |  |  |  |  | 34010 |  |  |  |  |  | 34010 |
|  **Total comprehensive income for the period** |  |  |  |  |  |  |  | (1382405) |  | 3239037 |  | (256047) |  | 1600585 |
|  **Transactions with the shareholder** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends |  |  |  |  |  |  |  |  |  | (1031167) |  |  |  | (1031167) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  |  | 299327 |  |  |  |  |  |  |  |  |  | 299327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  | (34399) |  |  |  | (34399) |
|  **Total transactions with the shareholder** |  |  |  | 299327 |  |  |  |  |  | (1065566) |  |  |  | (766239) |
|  **Balance as of December 31, 2022** | W | 2021896 | W | 873850 | W | 5025335 | W | 12751 | W | 25834192 | W | (44765) | W | 33723259 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries** 

**Consolidated Statements of Cash Flows** 

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

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  **Cash flows from operating activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the period |  | W | 2728307 | W | 2538029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for non-cash items |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains on financial instruments at fair value through profit or loss |  |  | (35202) |  | (161792) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net losses (gains) on derivative financial instrument for hedging purposes |  |  | (28984) |  | 13132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses |  |  | 1121172 |  | 523010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net losses (gains) on financial investments |  |  | 7069 |  | (12736) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of profit of associates |  |  | (12666) |  | (57156) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense |  |  | 546505 |  | 537628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net losses (gains) on property and equipment/intangible assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net losses (gains) on property and equipment/intangible assets |  | (37402) |  | 18731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payment |  |  | 15169 |  | 27995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits |  |  | 167049 |  | 158512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income |  |  | 140022 |  | 405793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses (gains) on foreign currency translation |  |  | 403201 |  | (89447) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses |  |  | 121304 |  | 45514 |
|  |  |  | 2407237 |  | 1409184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss |  |  | (1286906) |  | (1629702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial instrument |  |  | 171107 |  | 71935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | (12832141) |  | (32510459) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax assets |  |  | (117679) |  | (4308) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax assets |  |  | (30828) |  | (90423) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 236 |  | (1260800) |  | 447075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss |  |  | (11866) |  | (34193) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  | 17771160 |  | 31129121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities |  |  | (74165) |  | 165924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  |  | (1317782) |  | 3221530 |
|  |  |  | 1010100 |  | 766500 |
|  **Net cash inflow from operating activities** |  |  | 6145644 |  | 4713713 |
|  **Cash flows from investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instrument for hedging purposes |  |  | (1774) |  | 9575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial assets at fair value through profit or loss |  |  | 7165287 |  | 6019093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial assets at fair value through profit or loss |  |  | (8544547) |  | (6993541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial investments |  |  | 17993936 |  | 42261739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial investments |  |  | (32223758) |  | (46589385) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investments in associates |  |  | 47178 |  | 197396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of investments in associates |  |  | (272448) |  | (89644) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of property and equipment |  |  | 13931 |  | 9050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and equipment |  |  | (188828) |  | (198681) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investment property |  |  |  |  | 1581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of intangible assets |  |  | 245 |  | 1834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets |  |  | (66475) |  | (92474) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from changes in ownership of subsidiaries |  |  | 55369 |  | 80451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 14657 |  | (23269) |
|  **Net cash outflow from investing activities** |  |  | (16007227) |  | (5406275) |
|  **Cash flows from financing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instrument for hedging purposes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instrument for hedging purposes |  | 33402 |  | 5870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in borrowings |  |  | 11575186 |  | 4743115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in debentures |  |  | 21932190 |  | 20014042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in debentures |  |  | (22129719) |  | (17598345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of dividends |  |  | (1031167) |  | (917941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in other payables to trust accounts |  |  | (1225402) |  | (509106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash outflow from consolidated equtiy transactions |  |  |  |  | (188419) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  | 299327 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 699254 |  | (257954) |
|  **Net cash inflow from financing activities** |  |  | 10153071 |  | 5291262 |
|  **Effect of exchange rate changes on cash and cash equivalents** | 236 |  | (58464) |  | 358761 |
|  **Net increase in cash and cash equivalents** |  |  | 233024 |  | 4957461 |
|  **Cash and cash equivalents at the beginning of the period** | 236 |  | 23121497 |  | 18164036 |
|  **Cash and cash equivalents at the end of the period** | 236 | W | 23354521 | W | 23121497 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**1. Reporting Entity** 

Kookmin Bank (the "Bank") was incorporated in 1963 under the Citizens National Bank Act to provide banking services to the general public and to small and medium-sized enterprises. Pursuant to the Repeal Act of the Citizens National Bank Act, effective January 5, 1995, the Bank's status changed to a financial institution which operates under the Banking Act and Commercial Act.

The Bank merged with Korea Long Term Credit Bank on December 31, 1998, and with its subsidiaries, Daegu, Busan, Jeonnam Kookmin Mutual Savings & Finance Co., Ltd., on August 22, 1999. Pursuant to the directive from the Financial Services Commission related to the Structural Improvement of the Financial Industry Act, the Bank acquired certain assets, including performing loans, and assumed most of the liabilities of Daedong Bank on June 29, 1998. Also, the Bank completed the merger with Housing and Commercial Bank ("H&CB") on October 31, 2001, and merged with Kookmin Credit Card Co., Ltd., a majority-owned subsidiary, on September 30, 2003. Meanwhile, the Bank spun off its credit card business segment on February 28, 2011, and KB Kookmin Card Co., Ltd. became a subsidiary of KB Financial Group Inc.

The Bank listed its shares on the Stock Market Division of the Korea Exchange ("KRX") in September 1994. As a result of the merger with H&CB, the shareholders of the former Kookmin Bank and H&CB received new common shares of the Bank which were relisted on the KRX on November 9, 2001. In addition, H&CB listed its American Depositary Shares ("ADS") on the New York Stock Exchange ("NYSE") on October 3, 2000, prior to the merger. Following the merger with H&CB, the Bank listed its ADS on the NYSE on November 1, 2001. The Bank became a wholly owned subsidiary of KB Financial Group Inc. through a comprehensive stock transfer on September 29, 2008. Subsequently, the Bank's shares and its ADS, each listed on the KRX and the NYSE, were delisted on October 10, 2008 and September 26, 2008, respectively. As of December 31, 2022, the Bank's paid-in capital is \ 2,021,896 million.

The Bank engages in the banking business in accordance with the Banking Act, trust business in accordance with the Financial Investment Services and Capital Markets Act, mobile virtual network business in accordance with Special Act on Support for Financial Innovation, and other relevant businesses. As of December 31, 2022, the Bank operates its Seoul headquarters and 856 domestic branches, and nine overseas branches (excluding six subsidiaries and one office).

**2. Basis of Preparation** 

**2.1 Application of Korean IFRS** 

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

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

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

The amendments update a reference of definition of assets and liabilities to qualify for recognition in revised Conceptual Framework for Financial Reporting. However, the amendments add an exception for the recognition of liabilities and contingent liabilities within the scope of Korean IFRS No.1037 *Provisions, Contingent Liabilities and Contingent Assets*, and Korean IFRS No.2121 *Levies*. The amendments also confirm that contingent assets should not be recognized at the acquisition date. These amendments do not have a significant impact on the financial statements.

*- Amendments to Korean IFRS No.1016 Property, Plant and Equipment—Proceeds Before Intended Use* 

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

*- Amendments to Korean IFRS No.1037 Provisions, Contingent Liabilities and Contingent Assets—Onerous Contracts: Cost of Fulfilling a Contract* 

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

*- Annual improvements to Korean IFRS 2018-2020* 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1101 *First-time Adoption of Korean International Financial Reporting Standards* –
Subsidiaries that are first-time adopters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1109 *Financial Instruments* – Fees related to the 10% test for derecognition of
financial liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1116 *Leases* – Lease incentives

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1041 *Agriculture* – Fair value measurement

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

The Group classified some restricted demand deposits, such as reserve deposits, as due from financial institutions measured at amortized cost rather than cash and cash equivalents; however, following the International Accounting Standards Interpretation Committee's decision that cash and cash equivalents include restricted demand deposits, some restricted demand deposits, such as reserve deposits, have been classified as cash and cash equivalents and retroactively applied from January 1, 2022. The comparative consolidated financial statements have been restated to reflect changes made due to retrospectively application

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

Effects on the consolidated statements of cash flows for the years ended December 31, 2022 and 2021, are as follows:

2.1.2.1 Increase in details of statement of Cash Flow

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Increase in other assets | 173382 | 4681486 |
|  Increase of exchange rate changes on cash and cash equivalents denominated in foreign currency | 87913 | 83083 |
|  Increase in beginning balance of cash and cash equivalents | 16124306 | 11359737 |
|  Increase in ending balance of cash and cash equivalents | 16385601 | 16124306 |

---

2.1.2.2 Statement of Cash Flow (2022) 

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Before** | **After** | **Increase** |
|  Other assets | (1434182) | (1260800) | 173382 |
|  Exchange rate changes on cash and cash equivalents denominated in foreign currency | (146377) | (58464) | 87913 |
|  Beginning balance of cash and cash equivalents | 6997191 | 23121497 | 16124306 |
|  Ending balance of cash and cash equivalents | 6968920 | 23354521 | 16385601 |

---

2.1.2.3 Statement of Cash Flow (2021)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Before** | **After** | **Increase** |
|  Other assets | (4234411) | 447075 | 4681486 |
|  Exchange rate changes on cash and cash equivalents denominated in foreign currency | 275678 | 358761 | 83083 |
|  Beginning balance of cash and cash equivalents | 6804299 | 18164036 | 11359737 |
|  Ending balance of cash and cash equivalents | 6997191 | 23121497 | 16124306 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

*- Amendments to Korean IFRS No.1001 Presentation of Financial Statements—Classification of Liabilities as Current or Non-current* 

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise the right to defer settlement of the liability or the management's expectations thereof. Also, the settlement of liability includes the transfer of the entity's own equity instruments; however, it would be excluded if an option to settle the liability by the transfer of the entity's own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

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

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

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

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

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

**2.2 Measurement Basis** 

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

**2.3 Functional and Presentation Currency** 

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

**2.4 Critical Accounting Estimates** 

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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2.4.1 Income taxes

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

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

2.4.2 Fair value of financial instruments

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

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

2.4.3 Allowances and provisions for credit losses

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

2.4.4 Net defined benefit asset(liability)

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

2.4.5 Impairment of goodwill

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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**3. Significant Accounting Policies** 

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

**3.1 Consolidation** 

3.1.1 Subsidiaries

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

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

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

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

3.1.2 Associates

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

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

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

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

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

3.1.3 Structured entity

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.1.4 Funds management

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

3.1.5 Intragroup transactions

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

**3.2 Foreign Currency** 

3.2.1 Foreign currency transactions

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

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

3.2.2 Foreign operations

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

3.2.3 Translation of the net investment in a foreign operation

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

**3.3 Recognition and Measurement of Financial Instruments** 

3.3.1 Initial recognition

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

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

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

3.3.2 Subsequent measurement

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

3.3.2.1 Amortized cost

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.3.2.2 Fair value

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

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

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

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

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

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

Level 3 : Unobservable inputs for the asset or liability

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

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

The Group's Fair Value Evaluation Committee, which consists of the risk management department, trading department and accounting department, reviews the appropriateness of internally developed valuation models, and approves the selection and changing of the external valuation institution and other considerations related to fair value measurement. The results of regular verification of the internally developed valuation models are reported to the Market Risk Management Subcommittee.

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.3.3 Derecognition

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

3.3.3.1 Derecognition of financial assets

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

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

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

3.3.3.2 Derecognition of financial liabilities

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

3.3.4 Offsetting

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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**3.4 Cash and Due from Financial Institutions** 

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

**3.5 Non-derivative Financial Assets** 

3.5.1 Financial assets at fair value through profit or loss

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

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

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

3.5.2 Financial assets at fair value through other comprehensive income

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

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

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

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.5.3 Financial assets at amortized cost

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt restructuring

3.6.1 Forward-looking information

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

The Group assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses. The Group has derived a correlation between the time series data of 13 years or more and the key macroeconomic variables and calculates the expected credit losses by reflecting the results of the correlation on the risk component.

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

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| | |
|:---|:---|
| **Key macroeconomic variables** | **Correlation between the major macroeconomic**<br> **variables and the credit risk** |
|  Domestic GDP growth rate | (-) |
|  Composite stock index | (-) |
|  Growth rate of construction investment | (-) |
|  Rate of increase in housing transaction price index | (-) |
|  Interest rate spread | (+) |
|  Private consumption growth rate | (-) |

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

As of December 31, 2022, the Bank measures expected credit losses by applying both the worse scenario and the crisis scenario, taking into consideration the potential credit risk resulting from the uncertain financial environment locally and globally and the rapid economic recession.

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.6.2 Measuring expected credit losses on financial assets at amortized cost

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

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

3.6.2.1 Individual assessment of impairment

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

3.6.2.2 Collective assessment of impairment

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

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

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

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

**3.7 Derivative Financial Instruments** 

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

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

3.7.1 Derivative financial instruments held for trading

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

3.7.2 Derivative financial instruments for fair value hedges

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

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

3.7.3 Derivative financial instruments for cash flow hedges

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

3.7.5 Risk management strategy

Interest rate risk arises from changes in fair value resulting from changes in the discount rate of fixed rate financial instruments, and changes in cash flows resulting from changes in the nominal interest rate of floating rate financial instruments. Foreign currency risk arises from the net investment in a foreign operation, whose functional currency differs from the Group's functional currency.

While the Group hedges the interest rate risk in its entirety, the Group hedges the foreign currency risk only the proportional part of the notional amount.

At inception of the hedge relationship, the Group reviews the hedge effectiveness; and periodically reviews the effectiveness in order to confirm that economic relationship between the hedged item and the hedging instrument exists. The requirement that an economic relationship exists means that the hedging instrument and the hedged item have values that generally move in the opposite direction due to the same risk, which is the hedged risk. The Group designates the exposure of hedged item opposite to the exposure of hedging instruments in order to meet economic relationship requirement.

The Group designates hedge relationship at one-on-one ratio between the nominal amount of hedging instrument and to the nominal amount of hedged item.

Hedge ineffectiveness could arise because of differences in the underlying parameters (acquisition date, credit risk or liquidity and others) or other differences between the hedging instrument and the hedged item that the Group accepts in order to achieve a cost-effective hedging relationship.

The Group avoids the cash flow variability of its floating rate debt securities by using interest rate swaps. Both are linked to the same interest rate; however, the paid amount of the floating rate may be set on different dates. Even if the variability of interest rate related cash flows (as a risk factor) is designated as a hedged item, the difference in set-up dates creates a hedge ineffectiveness.

The Group avoids the variability of fair values of its fixed rate debt securities by using interest rate swaps. The calculating method of the number of the dates for paying fixed-rate interest amount can be different between hedging instruments and hedged items. Even if the variability of the fair value due to the benchmark interest rate (as a risk factor) are designated as a hedged item, the difference in calculating method of the number of the dates creates a hedge ineffectiveness.

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.7.6 Embedded derivatives

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

3.7.7 Day one gains or losses

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

**3.8 Property and Equipment** 

3.8.1 Recognition and measurement

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

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

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

3.8.2 Depreciation

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

---

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

**3.9 Investment Properties** 

3.9.1 Recognition and measurement

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

3.9.2 Depreciation

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

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

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

---

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

**3.10 Intangible Assets** 

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

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

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| | | |
|:---|:---|:---|
| **Intangible assets** | **Amortization method** | **Estimated useful life** |
| Industrial property rights | Straight-line | 5 years |
| Software | Straight-line | 4 ~ 5 years |
| Others | Straight-line / Declining-balance | 1 ~ 13 years |

---

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.10.1 Goodwill

3.10.1.1 Recognition and measurement

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

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

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

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

3.10.1.2 Additional acquisitions of non-controlling interests

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

3.10.1.3 Subsequent measurement

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

3.10.2 Subsequent expenditures

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

**3.11 Impairment of Non-financial Assets** 

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

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

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

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

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

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

**3.13 Financial Liabilities** 

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.13.1 Financial liabilities at fair value through profit or loss

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

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

3.13.2 Other financial liabilities

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

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

**3.14 Provisions** 

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

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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**3.15 Financial Guarantee Contracts** 

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

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

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

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

**3.16 Equity Instrument Issued by the Group** 

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

3.16.1 Ordinary shares

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

3.16.2 Hybrid securities

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

3.16.3 Compound financial instruments

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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**3.17 Revenue Recognition** 

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

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

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

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

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

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

3.17.1 Interest income and expense

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

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

Interest income on impaired financial assets is recognized using the interest rate used to discount the expected cash flows for the purpose of measuring the impairment loss. Interest income on debt securities at fair value through profit or loss is also classified as interest income in the consolidated statement of comprehensive income.

3.17.2 Fee and commission income

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.17.2.2 Fees related to performance obligations satisfied over time

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

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

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

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

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

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

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

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

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

3.17.4 Dividend income

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

**3.18 Employee Compensation and Benefits** 

3.18.1 Post-employment benefits

3.18.1.1 Defined contribution plans

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.18.1.2 Defined benefit plans

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

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

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

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

3.18.2 Short-term employee benefits

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

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

3.18.3 Share-based payment

The Group provides its executives and employees with stock grants and mileage stock programs. When stock grants are exercised, the Group can either select to distribute shares of KB Financial Group Inc., the Parent Company or compensate in cash based on the share price. When mileage stock is exercised, the Group pays the amount equivalent to share price of KB Financial Group Inc. in cash.

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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3.18.4 Termination benefits

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

**3.19 Income Tax Expense** 

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

3.19.1 Current income tax

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

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

3.19.2 Deferred income tax

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

3.19.3 Uncertain tax positions

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

**3.20 Transactions with the Trust Accounts** 

The Group accounts for trust assets separately from its own assets in accordance with the Financial Investment Services and Capital Markets Act. The borrowings from trust accounts represent transfer of funds in trust accounts into banking accounts. Such borrowings from trust accounts are recorded as receivables from the banking accounts in the trust accounts and as borrowings from trust accounts in the banking accounts. The Group earns trust fees from the trust accounts for its management of trust assets and operations. The reserves for future profits and losses are set up in the trust accounts for profits and losses related to those trust funds with a guarantee of the principal or of the principal and a certain minimum rate of return in accordance with the relevant laws and regulations applicable to trust operations. The reserves are used to provide for the losses on such trust funds and, if the losses incurred are in excess of the reserves, the excess losses are compensation paid as a loss on trust management in other operating expenses and the trust accounts recognize the corresponding compensation as compensation from banking accounts.

**3.21 Lease** 

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

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

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

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

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

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

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

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

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

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

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

However, the Group can elect not to apply the requirements of Korean IFRS No.1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under USD 5,000). The Group applies the exemption of the standard for one time lease of real estate (for training purpose) and leases of low-value assets (underlying assets less than \ 5 million or USD 5,000).

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

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

**3.22 Operating Segments** 

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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**4. Financial Risk Management** 

4.1 Summary

4.1.1 Overview of financial risk management policy

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

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

The Group's risk management system focuses on efficiently supporting long-term strategy and management decisions of each business group through increased risk transparency, spread of risk management culture, prevention of risk transfer between risk types, and preemptive response to rapidly changing financial environments. Credit risk, market risk, liquidity risk, and operational risk are recognized as the Group's significant risks and measured and managed by quantifying them in the form of internal capital or Value at Risk ("VaR") using statistical methods.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

The Risk Management Committee, as the ultimate decision-making body, approves risk-related issues, such as establishing risk management strategies in accordance with the strategic direction determined by the board of directors, determining the affordable level of risk appetite, and reviewing the level of risk and the status of risk management activities.

4.1.2.2 Risk Management Council

The Risk Management Council deliberates on and resolves matters delegated by the Risk Management Committee and discusses the details of risk management of the Group.

4.1.2.3 Risk Management Subcommittees

The Risk Management Subcommittee implements decisions made by the Risk Management Council and makes practical decisions regarding the implementation of risk management policies and procedures.

• Credit Risk Management Subcommittee

The Credit Risk Management Subcommittee conducts deliberation and resolution on new approval of non-standard and compound instruments with embedded credit risks, review of credit risks for new products with credit risks, and establishment of exposure limits by industry.

• Market Risk Management Subcommittee

The Market Risk Management Subcommittee conducts deliberation and resolution on market risk-related matters, such as setting limits on market risk and approving detailed investment standards for new standard, non-standard and compound products.

• Operational Risk Management Subcommittee

The Operational Risk Management Subcommittee reviews the issues that have a significant effect on the Group's operational risk such as establishment, amendment and abolition of major system, process and others.

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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• Trust & Fund Customer Asset Risk Management Subcommittee

The Trust & Fund Customer Asset Risk Management Subcommittee reviews the issues that have a significant effect on the trust & fund customer asset risk management such as setting limits on trust & fund customer assets.

4.1.2.4 Risk Management Group

The Risk Management Group manages detailed risk management policies, procedures, and business processes.

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty's default, breach of contract, and deterioration of credit quality. For risk management reporting purposes, the Group considers all factors of credit risk exposure, such as default risk of individual borrowers, country risk, and risk of specific sectors. The Group defines default as the definition applied to the calculation of Capital Adequacy Ratio under the new Basel Accord (Basel III).

4.2.2 Credit risk management

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

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

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

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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4.2.3 Maximum exposure to credit risk

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

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| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Financial assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions <sup>1</sup> | 22567276 | 22520401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through profit or loss | 20756579 | 18513088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through profit or loss | 149075 | 93930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at fair value through profit or loss | 90006 | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | 7767592 | 2965626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost <sup>1</sup> | 374671976 | 361144701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through other comprehensive income | 38363832 | 38140906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost <sup>1</sup> | 35236794 | 22164594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through other comprehensive income | 231021 | 269609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>1</sup> | 6709627 | 5277227 |
|  | 506543778 | 471203704 |
|  **Off-balance sheet items** <sup>2</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts | 12510649 | 10212730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts | 7261581 | 6021250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments | 108399534 | 97135905 |
|  | 128171764 | 113369885 |
|  | 634715542 | 584573589 |

---

<sup>1</sup> After netting of allowance

<sup>2</sup> For details of related provisions, see Note 22.

4.2.4 Credit risk of loans

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

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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4.2.4.1 Credit risk exposure

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit**<br>**losses** | **Non-<br>impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 126368871 | 4955880 | 3372 |  |  | 131328123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 57584222 | 7924915 | 4480 |  |  | 65513617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 3274510 | 3096139 | 14694 |  |  | 6385343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 480299 | 888101 | 13821 |  |  | 1382221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 11864 | 415237 | 1893260 |  |  | 2320361 |
|  | 187719766 | 17280272 | 1929627 |  |  | 206929665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 156074706 | 3990601 | 10917 |  |  | 160076224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 3297187 | 3732378 | 12737 |  |  | 7042302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 961206 | 1212650 | 14973 |  |  | 2188829 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 21458 | 140868 | 5529 |  |  | 167855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 20549 | 325174 | 642967 |  |  | 988690 |
|  | 160375106 | 9401671 | 687123 |  |  | 170463900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 25210 |  |  |  |  | 25210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 1219 | 16593 |  |  | 17812 |
|  | 25210 | 1219 | 16593 |  |  | 43022 |
|  | 348120082 | 26683162 | 2633343 |  |  | 377436587 |
|  **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 171194 |  |  |  |  | 171194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 59827 |  |  |  |  | 59827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 231021 |  |  |  |  | 231021 |
|  | 231021 |  |  |  |  | 231021 |
|  | 348351103 | 26683162 | 2633343 |  |  | 377667608 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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4.2.4.1 Credit risk exposure (cont'd)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 103439876 | 4787901 | 3583 |  |  | 108231360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 62433823 | 7488667 | 4321 |  |  | 69926811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 4622781 | 2794294 | 2489 |  |  | 7419564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 479723 | 1025557 | 7548 |  |  | 1512828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 12851 | 351420 | 2082350 |  |  | 2446621 |
|  | 170989054 | 16447839 | 2100291 |  |  | 189537184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 157931555 | 4297133 | 10972 |  |  | 162239660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 4174715 | 4066176 | 12202 |  |  | 8253093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 762603 | 1128603 | 8161 |  |  | 1899367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 38566 | 140041 | 3134 |  |  | 181741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 494814 | 305052 | 605210 |  |  | 1405076 |
|  | 163402253 | 9937005 | 639679 |  |  | 173978937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Credit card** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 32376 |  |  |  |  | 32376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 935 |  |  |  |  | 935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  | 22209 |  |  | 22209 |
|  | 33311 |  | 22209 |  |  | 55520 |
|  | 334424618 | 26384844 | 2762179 |  |  | 363571641 |
|  **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 189872 |  |  |  |  | 189872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 79737 |  |  |  |  | 79737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 269609 |  |  |  |  | 269609 |
|  | 269609 |  |  |  |  | 269609 |
|  | 334694227 | 26384844 | 2762179 |  |  | 363841250 |

---

\* Before netting of allowance

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

---

| | | |
|:---|:---|:---|
|  | **Corporate** | **Retail** |
| Grade 1 | AAA ~ BBB+ | 1 ~ 5 grade |
| Grade 2 | BBB ~ BB | 6 ~ 8 grade |
| Grade 3 | BB- ~ B | 9 ~ 10 grade |
| Grade 4 | B- ~ CCC | 11 grade |
| Grade 5 | CC or under | 12 grade or under |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

4.2.4.2 Credit risk mitigation by collateral

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  Guarantees | 99393584 | 7045683 | 286796 |  |  | 106726063 |
|  Deposits and savings | 1854286 | 141016 | 46971 |  |  | 2042273 |
|  Property and equipment | 4368754 | 749547 | 131148 |  |  | 5249449 |
|  Real estate | 185056374 | 15469830 | 1604270 |  |  | 202130474 |
|  | 290672998 | 23406076 | 2069185 |  |  | 316148259 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  Guarantees | 89847133 | 6586809 | 391042 |  |  | 96824984 |
|  Deposits and savings | 1606882 | 98380 | 75674 |  |  | 1780936 |
|  Property and equipment | 4364540 | 327722 | 279961 |  |  | 4972223 |
|  Real estate | 177948425 | 13477437 | 1953759 |  |  | 193379621 |
|  | 273766980 | 20490348 | 2700436 |  |  | 296957764 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

4.2.5 Credit risk of securities

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 33528652 |  |  |  |  | 33528652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1713576 |  |  |  |  | 1713576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 35242228 |  |  |  |  | 35242228 |
|  **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 35699164 |  |  |  |  | 35699164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 2530046 | 53861 |  |  |  | 2583907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 53011 | 9169 |  |  |  | 62180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 13941 | 4640 |  |  |  | 18581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 38296162 | 67670 |  |  |  | 38363832 |
|  | 73538390 | 67670 |  |  |  | 73606060 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 21219056 |  |  |  |  | 21219056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 935607 |  |  |  |  | 935607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 5588 | 7641 |  |  |  | 13229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 22160251 | 7641 |  |  |  | 22167892 |
|  **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 35690767 |  |  |  |  | 35690767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 2377924 |  |  |  |  | 2377924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 29108 | 3973 |  |  |  | 33081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 39134 |  |  |  |  | 39134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 38136933 | 3973 |  |  |  | 38140906 |
|  | 60297184 | 11614 |  |  |  | 60308798 |

---

\* Before netting of allowance

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

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

---

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

4.2.6 Credit risk of due from financial institutions

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Credit<br>impaired<br>approach** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Total** |
|  **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 20678308 |  |  |  | 20678308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1428613 |  |  |  | 1428613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 462230 |  |  |  | 462230 |
|  | 22569151 |  |  |  | 22569151 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Credit<br>impaired<br>approach** | **Total** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Total** |
|  **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 20705356 |  |  |  | 20705356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1305500 |  |  |  | 1305500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 61177 |  |  |  | 61177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 439511 |  |  |  | 439511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 10984 |  |  |  | 10984 |
|  | 22522528 |  |  |  | 22522528 |

---

\* Before netting of allowance

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

4.2.7 Credit risk mitigation of derivative financial instruments

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Deposits, savings, securities, and others |  | 2092136 |  | 424731 |

---

4.2.8 Credit risk concentration analysis

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Retail** | **Corporate \*** | **Credit<br>card** | **Total** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Korea | 166731576 | 180852359 |  | 347583935 | 92.00 | (1738345) | 345845590 |
|  Japan |  | 1150151 |  | 1150151 | 0.30 | (1756) | 1148395 |
|  United States |  | 4915464 |  | 4915464 | 1.30 | (14868) | 4900596 |
|  China | 140061 | 7131142 |  | 7271203 | 1.92 | (39023) | 7232180 |
|  Cambodia | 2265875 | 3768170 |  | 6034045 | 1.60 | (66198) | 5967847 |
|  Indonesia | 1174259 | 2896037 | 43022 | 4113318 | 1.09 | (767622) | 3345696 |
|  Others | 152129 | 6596438 |  | 6748567 | 1.79 | (136799) | 6611768 |
|  | 170463900 | 207309761 | 43022 | 377816683 | 100.00 | (2764611) | 375052072 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Retail** | **Corporate \*** | **Credit<br>card** | **Total** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Korea | 170760822 | 168733575 |  | 339494397 | 93.28 | (1459209) | 338035188 |
|  Japan | 86 | 1082456 |  | 1082542 | 0.30 | (2332) | 1080210 |
|  United States |  | 3313100 |  | 3313100 | 0.91 | (25289) | 3287811 |
|  China | 34982 | 6743756 |  | 6778738 | 1.86 | (34315) | 6744423 |
|  Cambodia | 1748349 | 3115992 |  | 4864341 | 1.34 | (66155) | 4798186 |
|  Indonesia | 1249822 | 3710586 | 55520 | 5015928 | 1.38 | (821707) | 4194221 |
|  Others | 184876 | 3201258 |  | 3386134 | 0.93 | (17933) | 3368201 |
|  | 173978937 | 189900723 | 55520 | 363935180 | 100.00 | (2426940) | 361508240 |

---

\* Expected credit losses of loans measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 496 million and W 675 million, respectively.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Financial institutions | 17917921 | 8.64 | (17541) | 17900380 |
|  Manufacturing | 52426642 | 25.29 | (570253) | 51856389 |
|  Service | 91366145 | 44.07 | (414123) | 90952022 |
|  Wholesale and retail | 28795086 | 13.89 | (346570) | 28448516 |
|  Construction | 5061780 | 2.44 | (207249) | 4854531 |
|  Public sector | 1653869 | 0.80 | (84005) | 1569864 |
|  Others | 10088318 | 4.87 | (162642) | 9925676 |
|  | 207309761 | 100.00 | (1802383) | 205507378 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Financial institutions | 18037439 | 9.50 | (13657) | 18023782 |
|  Manufacturing | 48190687 | 25.38 | (502209) | 47688478 |
|  Service | 80868551 | 42.58 | (387437) | 80481114 |
|  Wholesale and retail | 26108596 | 13.75 | (246687) | 25861909 |
|  Construction | 4387199 | 2.31 | (202627) | 4184572 |
|  Public sector | 1832305 | 0.96 | (94668) | 1737637 |
|  Others | 10475946 | 5.52 | (289934) | 10186012 |
|  | 189900723 | 100.00 | (1737219) | 188163504 |

---

\* Expected credit losses of loans measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 496 million and W 675 million, respectively.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Loans** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Housing loan | 94184985 | 55.24 | (158566) | 94026419 |
|  General loan | 76278915 | 44.74 | (787905) | 75491010 |
|  Credit card | 43022 | 0.02 | (15757) | 27265 |
|  | 170506922 | 100.00 | (962228) | 169544694 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Loans** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Housing loan | 93249089 | 53.58 | (68753) | 93180336 |
|  General loan | 80729848 | 46.39 | (600372) | 80129476 |
|  Credit card | 55520 | 0.03 | (20596) | 34924 |
|  | 174034457 | 100.00 | (689721) | 173344736 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

4.2.8.4 Classifications of domestic mortgage loans as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group1 | 15950511 | 16.30 | (17178) | 15933333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group2 | 35821717 | 36.62 | (40603) | 35781114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group3 | 35626337 | 36.42 | (45807) | 35580530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group4 | 10020031 | 10.24 | (12809) | 10007222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group5 | 399823 | 0.41 | (618) | 399205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group6 | 11588 | 0.01 | (74) | 11514 |
|  | 97830007 | 100.00 | (117089) | 97712918 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group1 | 16780623 | 17.13 | (10465) | 16770158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group2 | 39583150 | 40.41 | (10375) | 39572775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group3 | 31772074 | 32.43 | (9957) | 31762117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group4 | 9677419 | 9.88 | (6517) | 9670902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group5 | 140182 | 0.14 | (273) | 139909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group6 | 10328 | 0.01 | (87) | 10241 |
|  | 97963776 | 100.00 | (37674) | 97926102 |

---

\* Retail loans for general purpose with the real estate as collateral are included.

---

| | |
|:---|:---|
|  | **Ranges** |
| Group1 | LTV 0% to less than 20% |
| Group2 | LTV 20% to less than 40% |
| Group3 | LTV 40% to less than 60% |
| Group4 | LTV 60% to less than 80% |
| Group5 | LTV 80% to less than 100% |
| Group6 | LTV over 100% |

---

\* LTV: Loan to Value ratio

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 22569151 | 100.00 | (1875) | 22567276 |
|  | 22569151 | 100.00 | (1875) | 22567276 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 5268226 | 25.38 |  | 5268226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 14163418 | 68.24 |  | 14163418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1324935 | 6.38 |  | 1324935 |
|  | 20756579 | 100.00 |  | 20756579 |
|  **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 56464 | 0.73 |  | 56464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 7345736 | 94.57 |  | 7345736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 365392 | 4.70 |  | 365392 |
|  | 7767592 | 100.00 |  | 7767592 |
|  **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 14939808 | 38.94 |  | 14939808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 17440865 | 45.46 |  | 17440865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 5983159 | 15.60 |  | 5983159 |
|  | 38363832 | 100.00 |  | 38363832 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 16921939 | 48.02 |  | 16921939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 17749393 | 50.36 | (5109) | 17744284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 570896 | 1.62 | (325) | 570571 |
|  | 35242228 | 100.00 | (5434) | 35236794 |
|  | 124699382 |  | (7309) | 124692073 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 22522528 | 100.00 | (2127) | 22520401 |
|  | 22522528 | 100.00 | (2127) | 22520401 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 3367648 | 18.19 |  | 3367648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 12336217 | 66.64 |  | 12336217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 2809223 | 15.17 |  | 2809223 |
|  | 18513088 | 100.00 |  | 18513088 |
|  **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 6985 | 0.24 |  | 6985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 2810005 | 94.75 |  | 2810005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 148636 | 5.01 |  | 148636 |
|  | 2965626 | 100.00 |  | 2965626 |
|  **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 13553504 | 35.54 |  | 13553504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 19463563 | 51.03 |  | 19463563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 5123839 | 13.43 |  | 5123839 |
|  | 38140906 | 100.00 |  | 38140906 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 12402272 | 55.95 |  | 12402272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 9552417 | 43.09 | (3075) | 9549342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 213203 | 0.96 | (223) | 212980 |
|  | 22167892 | 100.00 | (3298) | 22164594 |
|  | 104310040 |  | (5425) | 104304615 |

---

<sup>1</sup> Collective investment securities (including transactions with collective investment schemes) are classified as finance and insurance.

<sup>2</sup> Expected credit losses of securities measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 6,432 million and W 8,223 million, respectively.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 16991323 | 75.29 |  | 16991323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 2173982 | 9.63 | (27) | 2173955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3403846 | 15.08 | (1848) | 3401998 |
|  | 22569151 | 100.00 | (1875) | 22567276 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 19316603 | 93.06 |  | 19316603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 897338 | 4.32 |  | 897338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 542638 | 2.62 |  | 542638 |
|  | 20756579 | 100.00 |  | 20756579 |
|  **Derivative financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 3456882 | 44.50 |  | 3456882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 1325575 | 17.07 |  | 1325575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France | 1281270 | 16.50 |  | 1281270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1703865 | 21.93 |  | 1703865 |
|  | 7767592 | 100.00 |  | 7767592 |
|  **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 34586537 | 90.15 |  | 34586537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 732183 | 1.91 |  | 732183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3045112 | 7.94 |  | 3045112 |
|  | 38363832 | 100.00 |  | 38363832 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 30511462 | 86.58 | (3746) | 30507716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 2740296 | 7.78 | (949) | 2739347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 111146 | 0.32 | (89) | 111057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1879324 | 5.32 | (650) | 1878674 |
|  | 35242228 | 100.00 | (5434) | 35236794 |
|  | 124699382 |  | (7309) | 124692073 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 16666513 | 74.00 |  | 16666513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 2381704 | 10.57 | (39) | 2381665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3474311 | 15.43 | (2088) | 3472223 |
|  | 22522528 | 100.00 | (2127) | 22520401 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 16289547 | 87.99 |  | 16289547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 1246236 | 6.73 |  | 1246236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 977305 | 5.28 |  | 977305 |
|  | 18513088 | 100.00 |  | 18513088 |
|  **Derivative financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 1060073 | 35.75 |  | 1060073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 707545 | 23.86 |  | 707545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France | 370787 | 12.50 |  | 370787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 827221 | 27.89 |  | 827221 |
|  | 2965626 | 100.00 |  | 2965626 |
|  **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 34298370 | 89.93 |  | 34298370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 556810 | 1.46 |  | 556810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3285726 | 8.61 |  | 3285726 |
|  | 38140906 | 100.00 |  | 38140906 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 21250543 | 95.86 | (2803) | 21247740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 76812 | 0.35 | (106) | 76706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 157558 | 0.71 | (141) | 157417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 682979 | 3.08 | (248) | 682731 |
|  | 22167892 | 100.00 | (3298) | 22164594 |
|  | 104310040 |  | (5425) | 104304615 |

---

\* Expected credit loss of securities measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 6,432 million and W 8,223 million, respectively.

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

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

4.3.2 Liquidity risk management and indicator

The liquidity risk is managed by comprehensive risk management policies and Asset Liability Management ("ALM") risk management guidelines set forth in these policies that apply to all risk management policies and procedures that may arise throughout the overall business of the Group.

The Group establishes a liquidity risk management strategy, including objectives of liquidity risk management, management policies, and internal control systems, and obtains a resolution from the Risk Management Committee. The Risk Management Committee establishes the Risk Management Council for efficient risk management to supervise the establishment and implementation of policies according to risk management strategies.

The Group calculates and manages Liquidity Coverage Ratio ("LCR"), Net Stable Funding Ratio ("NSFR"), liquidity ratio, maturity mismatch ratio and liquidity stress testing result for all transactions and off-balance transactions, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Council and the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **On demand** | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss <sup>1</sup>  | 108862 |  |  |  |  |  | 108862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup>  | 7166578 |  |  |  |  |  | 7166578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging <sup>2</sup>  |  | (558) | 5312 | 24067 | 66255 | 3502 | 98578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>3</sup>  | 165559338 | 29758040 | 45029511 | 129992322 | 17707676 | 1246571 | 389293458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 59631 | 18276814 | 5913564 | 13305936 | 7627555 | 1039377 | 46222877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 11117 | 1755336 | 4612664 | 12426307 | 8177425 | 4794132 | 31776981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 164 | 15554 | 30494 | 115109 | 208982 | 20075 | 390378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 13431913 | 1508 | 132242 | 58663 |  | 13624326 |
|  | 172905690 | 63237099 | 55593053 | 155995983 | 33846556 | 7103657 | 488682038 |
|  **Off-balance sheet items** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments <sup>4</sup>  | 108399534 |  |  |  |  |  | 108399534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts | 12510649 |  |  |  |  |  | 12510649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts <sup>5</sup>  | 7261581 |  |  |  |  |  | 7261581 |
|  | 128171764 |  |  |  |  |  | 128171764 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **On demand** | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss <sup>1</sup>  | 112698 |  |  |  |  |  | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup>  | 2706941 |  |  |  |  |  | 2706941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging <sup>2</sup>  |  | 2291 | 5996 | 6589 | 15213 | 1423 | 31512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>3</sup>  | 197481610 | 16451640 | 30892560 | 109842440 | 9940768 | 1412235 | 366021253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 55250 | 9790484 | 4454109 | 10242437 | 7335764 | 901063 | 32779107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 14528 | 1163009 | 3233191 | 12576806 | 9468210 | 4769756 | 31225500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 139 | 15672 | 29838 | 113617 | 215641 | 18616 | 393523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 16929504 | 1486 | 119647 | 47631 |  | 17098268 |
|  | 200371166 | 44352600 | 38617180 | 132901536 | 27023227 | 7103093 | 450368802 |
|  **Off-balance sheet items** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments <sup>4</sup>  | 97135905 |  |  |  |  |  | 97135905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts | 10212730 |  |  |  |  |  | 10212730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts <sup>5</sup> | 6021250 |  |  |  |  |  | 6021250 |
|  | 113369885 |  |  |  |  |  | 113369885 |

---

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

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

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

<sup>4</sup> Unused lines of credit within commitments are included in the 'On demand' category because payments can be requested at any time.

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over<br>5 years** | **Total** |
|  Cash flow to be received of net-settled derivatives | 337 | 8038 | 13090 | 49098 |  | 70563 |
|  Cash flow to be paid of net-settled derivatives | 218 | 975 | 1571 | 93 |  | 2857 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over<br>5 years** | **Total** |
|  Cash flow to be received of net-settled derivatives | 601 | 427 | 2989 |  |  | 4017 |
|  Cash flow to be paid of net-settled derivatives | 313 | 2437 | 3238 | 110 |  | 6098 |

---

4.4 Market Risk

4.4.1 Concept

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

4.4.2 Risk management

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

4.4.3 Trading position

4.4.3.1 Definition of a trading position

The trading position, which is subject to market risk management, includes interest rate position and stock position held for short-term trading profit. The Group also includes and manages all foreign currency positions in our trading positions. The trading position subject to market risk management is the trading position defined in "Trading Policy and Guidelines" and the basic requirements for the trading position are as follows:

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

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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4.4.3.2 Observation method of market risk arising from trading positions

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

4.4.3.3 VaR

(a) VaR

The Group uses the risk-based valuation method (VaR) to measure the market risk of the trading position.

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

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

When the Group measures market risk for trading position, it uses an internal model (VaR) for general risk and a standard method for individual risks. Standard method is used if the internal model is not authorized for certain market risk. Therefore, disclosed market risk VaR does not reflect the market risk for individual risks and for some positions.

(b) Back-Testing

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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(c) Stress Testing

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

VaR at a 99% confidence level of interest rate risk, stock price risk, and currency risk for trading positions with a ten-day holding period, excluding Stressed VaR, for the years ended December 31, 2022 and 2021, are as follows:

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

---

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

---

The required equity capital using the standard method related to the positions which are not measured by VaR as of December 31, 2022 and 2021, are as follows:

---

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

---

4.4.3.4 Details of risk factors

(a) Interest rate risk

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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(b) Stock price risk

Stock price risk arises mainly from stock positions held by principal guaranteed trust and derivatives linked to stocks positions in the Capital Markets Department. This stock price risk is managed through VaR, sensitivity limits, and others.

(c) Currency risk

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

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

4.4.4.1 Definition of IRRBB

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

4.4.4.2 The Bank's overall interest rate risk management and mitigation strategy

The Risk Management Committee approves policies, procedures and limits for managing interest rate risk, and the management department regularly reports on interest rate risk levels of ΔEVE and ΔNII against the set limit, changes in market conditions, and others. In order to measure the sensitivity of the economic value and earnings to changes in interest rates, the Bank calculates monthly interest rate gap and duration gap for assets and liabilities. In addition, the management department conducts an interest rate risk crisis analysis at least once a quarter assuming abnormal interest rate fluctuations and reports the results to the Risk Management Council. Independent internal and external audit department regularly check the process of identifying, measuring and monitoring interest rate risk. The interest rate risk model adequacy test is carried out regularly at least once a year by the verification department independent of the management department.

4.4.4.3 Main modeling assumption used for the Bank's interest rate risk measurement system for internal management

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

4.4.4.4 The Bank's interest rate risk hedging methodology and related accounting

The Bank hedges interest rate risk through back-to-back interest rate swap transactions, which are the same as interest payment cash flows. The Bank officially documents and manages the risk management strategy for hedge accounting, risk management objectives, hedging relationship, and assessment method for hedge effectiveness.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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4.4.4.5 Main assumptions used for calculating ΔEVE, ΔNII

The Bank calculates interest rate risk, including all cash flow of interest-sensitive assets and liabilities, and off-balance sheet items in the banking book. ΔEVE assumes a run-off balance sheet where the existing bank account positions are amortized and not replaced by new businesses. In addition, the contractual interest rate, including commercial margins and other spread components, is applied to generate cash flows. When discounting cash flow, ΔEVE is calculated by applying risk-free interest rate that do not include commercial margins and other spread components.

ΔNII assumes a constant balance sheet where maturing or repricing cash flows during the target management period are replaced by new cash flows with identical features. The interest rate risk is calculated for the interest rate shock scenario by adding up only if the risk is a loss for each currency. After classifying into retail/transactional, retail/non-transactional, and wholesale according to customers and regular transactions, the average repricing maturity of non-maturity deposits is determined by taking into account proportion of core deposits and cap on average maturity of core deposits for each category. The average repricing maturity of non-maturity deposits is 2.5 years for core deposits, 1 day for non-core deposits, and the longest repricing maturity is five years. The prepayment rate of fixed rate loans and term deposit redemption ratio are estimated by dividing the amount of prepayment amount and redemption amount during the previous month by the balance at the end of the previous month, respectively.

4.4.4.6 ΔEVE and ΔNII

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

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | Δ**EVE** | Δ**NII** | Δ**EVE** | Δ**NII** |
|  Scenario 1 (Parallel shock up) | 165634 | 162959 | 936965 | 564771 |
|  Scenario 2 (Parallel shock down) | 290330 |  |  |  |
|  Scenario 3 (Short rates down and long rates up) | 266737 |  | 273951 |  |
|  Scenario 4 (Short rates up and long rates down) | 268261 |  | 311497 |  |
|  Scenario 5 (Short rates shock up) | 288737 |  | 568246 |  |
|  Scenario 6 (Short rates shock down) | 132998 |  | 345987 |  |
|  Maximum out of six scenarios | 290330 | 162959 | 936965 | 564771 |
|  Basic capital | 31176032 | 31176032 | 30491173 | 30491173 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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4.4.5 Financial assets and liabilities denominated in foreign currencies

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **USD** | **JPY** | **EUR** | **GBP** | **CNY** | **Others** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 4964404 | 339074 | 170860 | 40392 | 543311 | 1606586 | 7664627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 2036628 |  | 349039 |  |  | 161943 | 2547610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 533788 |  | 115 | 10 | 19053 | 1006 | 553972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 193063 |  |  |  |  | 290 | 193353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 32541243 | 683704 | 2360630 | 622702 | 1944500 | 5442230 | 43595009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income | 4409688 |  | 9091 | 5677 | 556052 | 873788 | 5854296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 4197224 |  |  | 37816 | 60013 | 1041651 | 5336704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 1646663 | 292283 | 351415 | 23545 | 92508 | 135484 | 2541898 |
|  | 50522701 | 1315061 | 3241150 | 730142 | 3215437 | 9262978 | 68287469 |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 271778 | 246 | 182 | 10 | 6868 | 957 | 280041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 104856 |  |  |  |  |  | 104856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 25220691 | 1244037 | 1381500 | 344559 | 2301110 | 5205509 | 35697406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 18652958 | 458856 | 363990 | 351536 | 266727 | 1419793 | 21513860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 6939542 |  | 2041516 |  | 36288 | 601929 | 9619275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | 3495067 | 266505 | 188414 | 13502 | 100020 | 237452 | 4300960 |
|  | 54684892 | 1969644 | 3975602 | 709607 | 2711013 | 7465640 | 71516398 |
|  **Off-balance sheet items** | 20669795 |  | 189450 | 60382 | 220890 | 475611 | 21616128 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **USD** | **JPY** | **EUR** | **GBP** | **CNY** | **Others** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 5663272 | 335167 | 211344 | 50876 | 489219 | 1005355 | 7755233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 2157251 |  | 326279 |  |  | 143386 | 2626916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 148078 |  |  |  | 5549 | 821 | 154448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 82062 |  |  |  |  | 90 | 82152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 26281961 | 583537 | 1546316 | 234612 | 1774589 | 5642904 | 36063919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income | 5490476 | 5152 | 121573 | 6273 | 536747 | 351873 | 6512094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 706511 |  |  |  | 48435 | 448750 | 1203696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 1416785 | 36398 | 95892 | 6874 | 48406 | 115705 | 1720060 |
|  | 41946396 | 960254 | 2301404 | 298635 | 2902945 | 7708884 | 56118518 |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 193160 | 71 | 71 |  | 18224 | 1223 | 212749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 42470 |  |  |  |  |  | 42470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 20794853 | 847257 | 1835384 | 106321 | 1935261 | 5361049 | 30880125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 14112294 | 456029 | 304678 | 190436 |  | 1412587 | 16476024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 6026995 |  | 1338391 |  | 102443 | 435515 | 7903344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | 1611665 | 23141 | 138497 | 15037 | 74403 | 155868 | 2018611 |
|  | 42781437 | 1326498 | 3617021 | 311794 | 2130331 | 7366242 | 57533323 |
|  **Off-balance sheet items** | 16739153 | 353 | 186938 | 800 | 250239 | 524708 | 17702191 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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4.4.6 Risk management according to interest rate benchmark reform

Details of financial instruments that have not been converted to alternative interest rate benchmark as of December 31, 2022 and 2021, are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** |
| *(In millions of Korean won)* | **USD LIBOR** | **Others** | **USD LIBOR** | **Others** |
|  **Measured at fair value (non-derivative)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments at fair value through other comprehensive income | 22800 |  | 231702 |  |
|  **Measured at amortized cost** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 1946200 |  | 3726542 | 55800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings and debentures | 152200 |  | 513069 |  |
|  **Others** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial instruments |  |  | 1126930 |  |

---

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

4.5 Operational Risk

4.5.1 Concept

The Group defines operational risk as loss risk arising from improper or incorrect internal procedures, personnel, systems or external events and includes financial and non-financial risks.

4.5.2 Risk management

The purpose of operational risk management is not only to comply with supervisory and regulatory requirements, but also to spread risk management culture, strengthen internal control, improve processes, and provide timely feedback to management and all employees. The Group established a Business Continuity Planning (BCP) to carry out continuous work in emergency situations and established alternative facilities. The Group conducts simulation training for headquarters and IT departments to check the business continuity framework.

4.6 Capital Management

The Group complies with the capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements ("BIS") in June 2011 and was implemented in Korea in December 2013.

According to this standard, the Group is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 4.5%, Tier 1 Capital ratio of 6.0%, and Total Capital ratio of 8.0%) as of December 31, 2022. Capital Conservation Buffer of 2.5% and Capital Requirement of Domestic Systemically Important Bank (D-SIB) of 1.0% are additionally applied. Therefore, the Group is required to maintain a capital adequacy ratio including a minimum capital adequacy ratio and additional capital requirements (Common Equity Tier 1 Capital ratio of 8.0% (December 31, 2021: 8.0%), Tier 1 Capital ratio of 9.5% (December 31, 2021: 9.5%), and Total Capital ratio of 11.5% (December 31, 2021: 11.5%)).

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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

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

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

The risk-weighted assets are the magnitude of assets that reflect the risk that the Group has to bear, including risks inherent in all assets, errors in the operation of internal processes, and risk of loss that may arise from external events. The Group calculates risk-weighted assets by each risk (credit risk, market risk, and operational risk) based on the Detailed Regulations on Supervision of Banking Business and uses them to calculate capital adequacy ratio. The Group complied with external capital adequacy requirements as of December 31, 2022 and 2021.

Apart from the capital adequacy ratio, the Group evaluates and manages capital adequacy through internal policies. The evaluation of capital adequacy compares the size of available capital (the amount of capital actually available) to the size of internal capital (the amount of capital required to cover all the significant risks faced by the Group under its target credit rating), which monitors financial soundness and provides a risk-adjusted performance measurement basis. The internal capital for capital adequacy assessment is calculated by adding the results of a stress test and other additional capital requirements to the internal capital calculated for each individual risk.

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

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**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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

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| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Total Capital: | 36232973 | 35572367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital | 30963124 | 30491173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital | 30089274 | 29916650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional Tier 1 Capital | 873850 | 574523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 2 Capital | 5269849 | 5081194 |
|  Risk-Weighted Assets: | 207557905 | 203569325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit risk <sup>1</sup> | 182292999 | 181149126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market risk <sup>2</sup> | 12611416 | 10833390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operational risk <sup>3</sup> | 12653490 | 11586809 |
|  Total Capital ratio (%): | 17.46 | 17.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital ratio (%) | 14.92 | 14.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital ratio (%) | 14.50 | 14.70 |

---

<sup>1</sup> Credit risk weighted assets are measured using the Internal Rating-Based Method and Standard Method.

<sup>2</sup> Market risk weighted assets are measured using the Internal Model-Based Method and Standard Method.

<sup>3</sup> Operational risk weighted assets are measured using the Advanced Measurement Method.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**5. Segment Information** 

5.1 Overall Segment Information and Business Segments

The Group is organized into Corporate Banking, Retail Banking and Other Activities. These segments are based on the nature of the products and services provided, the type or class of customer, and the Group's management organization.

• Corporate banking: The activities within this segment include providing credit, deposit products, and other
related financial services to large, small and medium-sized enterprises and SOHOs and foreign subsidiaries-related works.

• Retail banking: The activities within this segment include providing credit, deposit products, and other related
financial services to individuals and households.

• Other activities: The activities within this segment include trading activities in securities and derivatives,
funding, trust, and other activities.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Corporate<br>banking** | **Retail<br>banking** | **Others** | **Consolidation<br>adjustments** | **Total** |
|  Net operating revenues from external customers | 5172125 | 4472888 | 9097 |  | 9654110 |
|  Intersegment net operating revenues (expenses) | (174057) |  | 157029 | 17028 |  |
|  | 4998068 | 4472888 | 166126 | 17028 | 9654110 |
|  Net interest income | 4720718 | 3936872 | 631654 | 1777 | 9291021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 7831383 | 5763852 | 1864274 | (100808) | 15358701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (3110665) | (1826980) | (1232620) | 102585 | (6067680) |
|  Net fee and commission income | 385884 | 261350 | 463849 | (14475) | 1096608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission income | 546634 | 415858 | 600152 | (32486) | 1530158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission expense | (160750) | (154508) | (136303) | 18011 | (433550) |
|  Net gains on financial instruments at fair value through profit or loss | 73680 |  | 244515 | (107614) | 210581 |
|  Net other operating income (expenses) | (182214) | 274666 | (1173892) | 137340 | (944100) |
|  General and administrative expenses | (1972147) | (2092770) | (633959) | 925 | (4697951) |
|  Operating income before provision for credit losses | 3025921 | 2380118 | (467833) | 17953 | 4956159 |
|  Provision for credit losses | (778260) | (281868) | 11807 | (72849) | (1121170) |
|  Net operating income | 2247661 | 2098250 | (456026) | (54896) | 3834989 |
|  Share of profit of associates |  |  | 12666 |  | 12666 |
|  Net other non-operating expenses | (13317) |  | (5215) | (19333) | (37865) |
|  Segment profit before income tax expense | 2234344 | 2098250 | (448575) | (74229) | 3809790 |
|  Income tax expense | (732211) | (522478) | 158696 | 14510 | (1081483) |
|  Profit for the year | 1502133 | 1575772 | (289879) | (59719) | 2728307 |
|  Profit attributable to the shareholder of the Parent Company | 1505240 | 1575772 | (289879) | 204882 | 2996015 |
|  Loss attributable to non-controlling interests | (3107) |  |  | (264601) | (267708) |
|  Total assets \* | 211989036 | 165273848 | 148763232 | (8256604) | 517769512 |
|  Total liabilities \* | 205382625 | 191786626 | 91870560 | (4993558) | 484046253 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Corporate<br>banking** | **Retail<br>banking** | **Others** | **Consolidation<br>adjustments** | **Total** |
|  Net operating revenues from external customers | 3719822 | 2958198 | 1761432 |  | 8439452 |
|  Intersegment net operating revenues (expenses) | (95647) |  | 65492 | 30155 |  |
|  | 3624175 | 2958198 | 1826924 | 30155 | 8439452 |
|  Net interest income | 3802477 | 3541539 | 388970 | (4510) | 7728476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 5317800 | 4437930 | 943600 | (24969) | 10674361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (1515323) | (896391) | (554630) | 20459 | (2945885) |
|  Net fee and commission income | 390619 | 392060 | 414798 | (9596) | 1187881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission income | 534749 | 535530 | 549265 | (32600) | 1586944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission expense | (144130) | (143470) | (134467) | 23004 | (399063) |
|  Net gains (losses) on financial instruments at fair value through profit or loss | 29407 |  | 316537 | (3110) | 342834 |
|  Net other operating income (expenses) | (598328) | (975401) | 706619 | 47371 | (819739) |
|  General and administrative expenses | (1831948) | (2036855) | (535382) | 1454 | (4402731) |
|  Operating income before provision for credit losses | 1792227 | 921343 | 1291542 | 31609 | 4036721 |
|  Provision for credit losses | (392956) | (125876) | (4294) | 398 | (522728) |
|  Net operating income | 1399271 | 795467 | 1287248 | 32007 | 3513993 |
|  Share of loss of associates |  |  | 57156 |  | 57156 |
|  Net other non-operating income | (9237) |  | (52812) | (17556) | (79605) |
|  Segment profit before income tax expense | 1390034 | 795467 | 1291592 | 14451 | 3491544 |
|  Income tax expense | (368577) | (218753) | (317138) | (49047) | (953515) |
|  Profit for the year | 1021457 | 576714 | 974454 | (34596) | 2538029 |
|  Profit attributable to the shareholder of the Parent Company | 1022699 | 576714 | 974454 | 16897 | 2590764 |
|  Profit attributable to non-controlling interests | (1242) |  |  | (51493) | (52735) |
|  Total assets \* | 189310448 | 169513344 | 131447842 | (6706736) | 483564898 |
|  Total liabilities \* | 197834530 | 180815013 | 75034139 | (3007697) | 450675985 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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5.2 Services and Geographical Segments

5.2.1 Services information

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Corporate banking service |  | 5172125 |  | 3719822 |
|  Retail banking service |  | 4472888 |  | 2958198 |
|  Others |  | 9097 |  | 1761432 |
|  |  | 9654110 |  | 8439452 |

---

5.2.2 Geographical information

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Net operating revenues**<br>**from external customers** | **Net operating revenues**<br>**from external customers** | **Major non-current assets** | **Major non-current assets** |
| *(In millions of Korean won)* | **2022** | **2021** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Domestic | 8769566 | 7768786 | 4331433 | 4385855 |
|  United States | 71327 | 37332 | 14485 | 7009 |
|  New Zealand | 12378 | 12857 | 1382 | 1932 |
|  China | 150024 | 110251 | 18429 | 19320 |
|  Japan | 18939 | 17482 | 1480 | 2019 |
|  Myanmar | 6360 | 5140 | 1736 | 2993 |
|  Vietnam | 25409 | 10185 | 2159 | 2132 |
|  Cambodia | 514222 | 390383 | 33581 | 29545 |
|  United Kingdom | 30430 | 23571 | 5808 | 885 |
|  Singapore | (3149) |  | 8492 |  |
|  Indonesia | 57556 | 57635 | 319033 | 360556 |
|  India | 1048 | 5830 | 394 | 839 |
|  Consolidation adjustments |  |  | 498951 | 474417 |
|  | 9654110 | 8439452 | 5237363 | 5287502 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**6. Financial Assets and Financial Liabilities** 

6.1 Classification and Fair Value of Financial Instruments

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Carrying<br>amount** | **Fair value** | **Carrying<br>amount** | **Fair value** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 25127794 | 25120077 | 25164991 | 25164936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 21213408 | 21213408 | 18834364 | 18834364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 20756579 | 20756579 | 18513088 | 18513088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 217748 | 217748 | 113724 | 113724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 149075 | 149075 | 93930 | 93930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 90006 | 90006 | 113622 | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7529366 | 7529366 | 2835202 | 2835202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 238226 | 238226 | 130424 | 130424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 374671976 | 372232275 | 361144701 | 361047763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 40013375 | 40013375 | 41580315 | 41580315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 38363832 | 38363832 | 38140906 | 38140906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 1418522 | 1418522 | 3169800 | 3169800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 231021 | 231021 | 269609 | 269609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 35236794 | 33418180 | 22164594 | 21880536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 6709627 | 6709627 | 5277227 | 5277227 |
|  | 510740566 | 506474534 | 477131818 | 476750767 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 108862 | 108862 | 112698 | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7166578 | 7166578 | 2706941 | 2706941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 104856 | 104856 | 42471 | 42471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 381746749 | 381288577 | 363141416 | 363049803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 45073117 | 44746350 | 32523161 | 32447493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 29787722 | 29611888 | 29718734 | 29780948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | 17376336 | 17376336 | 19715198 | 19715198 |
|  | 481364220 | 480403447 | 447960619 | 447855552 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

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

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

6.1.2 Fair value hierarchy

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

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

---

| | |
|:---|:---|
| Level 1: | The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. |
| Level 2 | The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. |
| Level 3: | The fair values are based on unobservable inputs for the asset or liability. |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 7216086 | 9613485 | 4383837 | 21213408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 7059911 | 9613485 | 4083183 | 20756579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 66169 |  | 151579 | 217748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  | 149075 | 149075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 90006 |  |  | 90006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 7529333 | 33 | 7529366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 238226 |  | 238226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 11855563 | 27352216 | 805596 | 40013375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 11242637 | 27121195 |  | 38363832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 612926 |  | 805596 | 1418522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 231021 |  | 231021 |
|  | 19071649 | 44733260 | 5189466 | 68994375 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 108862 |  |  | 108862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 7166128 | 450 | 7166578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 104856 |  | 104856 |
|  | 108862 | 7270984 | 450 | 7380296 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** | |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 4085766 | 11434023 | 3314575 | 18834364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 3910659 | 11434023 | 3168406 | 18513088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 61485 |  | 52239 | 113724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  | 93930 | 93930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 113622 |  |  | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 2835141 | 61 | 2835202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 130424 |  | 130424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 11823832 | 28907384 | 849099 | 41580315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 9503131 | 28637775 |  | 38140906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 2320701 |  | 849099 | 3169800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 269609 |  | 269609 |
|  | 15909598 | 43306972 | 4163735 | 63380305 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 112698 |  |  | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 2706549 | 392 | 2706941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 42471 |  | 42471 |
|  | 112698 | 2749020 | 392 | 2862110 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 9613485 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 9613485 | DCF Model, MonteCarlo Simulation, Net Asset Value Method | Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7529333 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 238226 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 27352216 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 27121195 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 231021 | DCF Model | Discount rate |
|  | 44733260 |  |  |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7166128 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 104856 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
|  | 7270984 |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 11434023 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 11434023 | DCF Model, MonteCarlo Simulation, Net Asset Value Method | Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 2835141 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 130424 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 28907384 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 28637775 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 269609 | DCF Model | Discount rate |
|  | 43306972 |  |  |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 2706549 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 42471 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
|  | 2749020 |  |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** |  |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | 2560519 | 20223592 | 2335966 | 25120077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | 372232275 | 372232275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 5087917 | 28330263 |  | 33418180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>2</sup> |  |  | 6709627 | 6709627 |
|  | 7648436 | 48553855 | 381277868 | 437480159 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>1</sup> |  | 164003100 | 217285477 | 381288577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings <sup>1</sup> |  | 18271 | 44728079 | 44746350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 29611888 |  | 29611888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>2</sup> |  |  | 17376336 | 17376336 |
|  |  | 193633259 | 279389892 | 473023151 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** |  |
| *(In millions of Korean won)* | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | 2644591 | 20973023 | 1547322 | 25164936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | 361047763 | 361047763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 2712403 | 19168133 |  | 21880536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>2</sup> |  |  | 5277227 | 5277227 |
|  | 5356994 | 40141156 | 367872312 | 413370462 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>1</sup> |  | 197274176 | 165775627 | 363049803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings <sup>1</sup> |  | 2146 | 32445347 | 32447493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 29780948 |  | 29780948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>2</sup> |  |  | 19715198 | 19715198 |
|  |  | 227057270 | 217936172 | 444993442 |

---

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

<sup>2</sup> Other financial assets and other financial liabilities included in Level 3 are the carrying amounts which are reasonable approximations of fair value. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

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

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value** | **Valuation**<br> **techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 28330263 | DCF Model, MonteCarlo Simulation | Discount rate, interest rate |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 29611888 | DCF Model | Discount rate |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair value** | **Valuation**<br> **techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 19168133 | DCF Model, MonteCarlo Simulation | Discount rate, interest rate |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 29780948 | DCF Model | Discount rate |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value** | **Valuation<br>techniques** | **Inputs** | **Unobservable<br>inputs** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 2335966 | DCF<br>Model | Credit spread, other spread, interest rate | Credit<br>spread,<br>other<br>spread |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 372232275 | DCF<br>Model | Credit spread, other spread, prepayment rate, interest rate | Credit<br>spread,<br>other<br>spread,<br>prepayment<br>rate |
|  | 374568241 |  |  |  |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 217285477 | DCF<br>Model | Other spread, prepayment rate, interest rate | Other<br>spread,<br>prepayment<br>rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 44728079 | DCF<br>Model | Other spread, interest rate | Other<br>spread |
|  | 262013556 |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair value** | **Valuation<br>techniques** | **Inputs** | **Unobservable<br>inputs** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 1547322 | DCF<br>Model | Credit spread, other spread, interest rate | Credit<br>spread,<br>other<br>spread |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 361047763 | DCF<br>Model | Credit spread, other spread, prepayment rate, interest rate | Credit<br>spread,<br>other<br>spread,<br>prepayment<br>rate |
|  | 362595085 |  |  |  |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 165775627 | DCF<br>Model | Other spread, prepayment rate, interest rate | Other<br>spread,<br>prepayment<br>rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 32445347 | DCF<br>Model | Other spread, interest rate | Other<br>spread |
|  | 198220974 |  |  |  |

---

6.2 Disclosure of Fair Value Hierarchy Level 3

6.2.1 Valuation policy and process of Level 3 fair value

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Financial assets at fair value**<br>**through profit or loss** | **Financial assets at fair value**<br>**through profit or loss** | **Financial**<br>**investments** | **Net derivative financial**<br>**instruments** | **Net derivative financial**<br>**instruments** |
| *(In millions of Korean won)* | **Securities**<br>**measured at**<br>**fair value**<br>**through profit**<br>**or loss** | **Loans**<br>**measured at**<br>**fair value**<br>**through profit**<br>**or loss** | **Equity securities**<br>**measured at fair**<br>**value through**<br>**other**<br>**comprehensive**<br>**income** | **Derivatives**<br>**held for**<br>**trading** | **Derivatives**<br>**held for**<br>**hedging** |
|  Beginning | 3220645 | 93930 | 849099 | (331) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gains or losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Profit or loss | 117562 | 20306 |  | (86) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Other comprehensive loss |  |  | (47055) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | 1303168 | 45487 | 4093 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (406613) | (10648) | (541) |  |  |
|  Ending | 4234762 | 149075 | 805596 | (417) |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Financial assets at fair value**<br>**through profit or loss** | **Financial assets at fair value**<br>**through profit or loss** | **Financial**<br>**investments** | **Net derivative financial**<br>**instruments** | **Net derivative financial**<br>**instruments** |
| *(In millions of Korean won)* | **Securities**<br>**measured at**<br>**fair value**<br>**through profit**<br>**or loss** | **Loans**<br>**measured at**<br>**fair value**<br>**through profit**<br>**or loss** | **Equity securities**<br>**measured at fair**<br>**value through**<br>**other**<br>**comprehensive**<br>**income** | **Derivatives**<br>**held for**<br>**trading** | **Derivatives**<br>**held for**<br>**hedging** |
|  Beginning | 2233598 | 38756 | 1917980 | (63) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gains or losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Profit or loss | 120852 | (431) |  | (203) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Other comprehensive income |  |  | (139455) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | 1354851 | 55605 | 23507 | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (488656) |  | (484) | (67) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers into Level 3 |  |  | (952449) |  |  |
|  Ending | 3220645 | 93930 | 849099 | (331) |  |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Net gains on financial**<br>**instruments at fair value**<br>**through profit or loss** | **Other**<br>**operating**<br>**income** | **Net interest**<br>**income** |
|  Total gains recognized in profit or loss for the period | 71695 | 66087 |  |
|  Total gains recognized in profit or loss from financial instruments held at the end of the reporting period | 62419 | 17174 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Net gains on financial**<br>**instruments at fair value**<br>**through profit or loss** | **Other**<br>**operating**<br>**expenses** | **Net interest**<br>**income** |
|  Total gains recognized in profit or loss for the period | 102758 | 17460 |  |
|  Total gains recognized in profit or loss from financial instruments held at the end of the reporting period | 132034 | 16989 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

6.2.3 Sensitivity analysis of changes in unobservable inputs

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair<br>value** | **Valuation**<br> **techniques** | **Inputs** | **Unobservable**<br> **inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of<br>unobservable inputs**<br> **to fair value** |
|  **Financial assets** | **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 4083183 | MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model | Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price | Volatility of underlying asset | 23.97 ~ 26.52 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 4083183 | MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model | Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price | Correlation coefficient | 22.85 | The higher the correlation coefficient, the higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 4083183 | MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model | Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price | Discount rate | 8.53 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 4083183 | MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model | Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price | Liquidation value | 0.00 | Higher the liquidation value, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 4083183 | MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model | Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price | Rate of real estate sale price fluctuation | 0.00 | Higher the real estate sale price, higher the fair value |
|  |  |  |  | Volatility of stock price | 21.83 ~ 34.51 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 151579 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method | Growth rate, discount rate | Growth rate | 0.00 | Higher the growth rate, higher the fair value |
|  |  | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method | Growth rate, discount rate | Discount rate | 9.16 ~ 15.82 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 149075 | DCF Model | Discount rate | Discount rate | 9.91 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock and index | 33 | Tree Model | Price of underlying asset, volatility of underlying asset | Volatility of underlying asset | 21.83 ~ 31.73 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 805596 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model | Growth rate, discount rate, stock price, volatility of stock price | Growth rate | 0.00 ~ 1.00 | Higher the growth rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 805596 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model | Growth rate, discount rate, stock price, volatility of stock price | Discount rate | 9.08 ~ 19.14 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 805596 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model | Growth rate, discount rate, stock price, volatility of stock price | Volatility of stock price | 24.88 ~28.62 | Higher the volatility, higher the fair value fluctuation |
|  | 5189466 |  |  |  |  |  |
|  **Financial liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 450 | DCF Model | Interest rate, discount rate | Discount rate | 4.83 ~ 6.85 | Higher the discount rate, lower the fair value |
|  | 450 |  |  |  |  |  |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair<br>value** | **Valuation**<br> **techniques** | **Inputs** | **Unobservable**<br> **inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of<br>unobservable inputs**<br> **to fair value** |
|  **Financial assets** | **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 3168406 | MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model | Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price | Discount rate | 8.17 ~ 21.37 | Lower the discount rate, higher the fair value |
|  |  |  |  | Liquidation value | 0.00 | Higher the liquidation value, higher the fair value |
|  |  |  |  | Rate of real estate sale price fluctuation | 0.00 | Higher the real estate sale price, higher the fair value |
|  |  |  |  | Volatility of stock price | 18.87 ~ 19.48 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 52239 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method | Growth rate,<br> discount rate | Growth rate | 0.00 ~ 1.00 | Higher the growth rate, higher the fair value |
|  |  |  |  | Discount rate | 10.76 ~ 22.79 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 93930 | DCF Model | Discount rate | Discount rate | 8.21 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock and index | 61 | Tree Model | Price of underlying asset, volatility of underlying asset | Volatility of underlying asset | 17.00 ~ 25.49 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 849099 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model | Growth rate, discount rate, stock price, volatility of stock price | Growth rate | 0.00 ~ 1.00 | Higher the growth rate, higher the fair value |
|  |  |  |  | Discount rate | 10.42 ~ 18.02 | Lower the discount rate, higher the fair value |
|  |  |  |  | Volatility of stock price | 23.36 ~ 25.49 | Higher the volatility, higher the fair value fluctuation |
|  | 4163735 |  |  |  |  |  |
|  **Financial liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 392 | DCF Model | Interest rate, discount rate | Discount rate | 1.46 ~ 2.83 | Higher the discount rate, lower the fair value |
|  | 392 |  |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

6.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. Level 3 financial instruments subject to sensitivity analysis are debt securities, loans, equity-related derivatives, currency-related derivatives, interest rate-related derivatives, and other derivatives whose fair value changes are recognized in profit or loss as well as equity securities whose fair value changes are recognized in profit or loss or other comprehensive income or loss.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
| *(In millions of Korean won)* | **Favorable<br>changes** | **Unfavorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities <sup>3, 5</sup> | 6140 | (6383) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5</sup> | 8629 | (5033) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>4</sup> | 2277 | (2054) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup> | 2 | (2) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5, 6</sup> |  |  | 137984 | (56900) |
|  | 17048 | (13472) | 137984 | (56900) |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup> | 72 | (72) |  |  |
|  | 72 | (72) |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
| *(In millions of Korean won)* | **Favorable<br>changes** | **Unfavorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities <sup>3, 5</sup> | 7065 | (7001) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5</sup> | 5698 | (4328) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>4</sup> | 3062 | (2742) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup> | 2 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5, 6</sup> |  |  | 87021 | (65000) |
|  | 15827 | (14071) | 87021 | (65000) |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup> | 196 | (204) |  |  |
|  | 196 | (204) |  |  |

---

<sup>1</sup> For derivative financial instruments, changes in fair value are calculated by shifting principal unobservable input parameters such as price and the volatility of underlying asset by ± 10%. 

<sup>2</sup> For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p) and growth rate (0%p~1%p). 

<sup>3</sup> For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting rate of real estate sale price fluctuation (-1%p~1%p), and for beneficiary certificates whose underlying assets are equity investments, changes in fair value are calculated by shifting liquidation value (-1%p~1%p) and discount rate (-1%p~1%p). There is no significant correlation among major unobservable inputs. 

<sup>4</sup> For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p). 

<sup>5</sup> The amounts of \ 3,989,635 million and \ 3,175,985 million of financial assets classified as level 3 as of December 31, 2022 and 2021, respectively, are excluded because it is practically impossible to analyze sensitivity of changes in unobservable inputs. 

<sup>6</sup> For some equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as stock price and volatility of stock price by ±10%. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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6.2.4 Day one gains or losses

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

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

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Balance at the beginning of the year (A) | (8719) | (637) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New transactions (B) | (105) | (10032) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts recognized in profit or loss (C=a+b) | 2078 | 1950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Amortization | 2078 | 1950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Settlement |  |  |
|  Balance at the end of the year (A+B+C) | (6746) | (8719) |

---

6.3 Carrying Amount of Financial Instruments by Category

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions |  |  |  | 25127794 |  | 25127794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 21213408 |  |  |  |  | 21213408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 7529366 |  |  |  | 238226 | 7767592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  | 374671976 |  | 374671976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  | 38594853 | 1418522 | 35236794 |  | 75250169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  | 6709627 |  | 6709627 |
|  | 28742774 | 38594853 | 1418522 | 441746191 | 238226 | 510740566 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Financial<br>instruments at<br>fair value through<br>profit or loss** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held<br>for hedging** | **Total** |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 108862 |  |  | 108862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 7166578 |  | 104856 | 7271434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 381746749 |  | 381746749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 45073117 |  | 45073117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 29787722 |  | 29787722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 17376336 |  | 17376336 |
|  | 7275440 | 473983924 | 104856 | 481364220 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions |  |  |  | 25164991 |  | 25164991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 18834364 |  |  |  |  | 18834364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 2835202 |  |  |  | 130424 | 2965626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  | 361144701 |  | 361144701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  | 38410515 | 3169800 | 22164594 |  | 63744909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  | 5277227 |  | 5277227 |
|  | 21669566 | 38410515 | 3169800 | 413751513 | 130424 | 477131818 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Financial<br>instruments at<br>fair value through<br>profit or loss** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Total** |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 112698 |  |  | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 2706941 |  | 42471 | 2749412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 363141416 |  | 363141416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 32523161 |  | 32523161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 29718734 |  | 29718734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 19715198 |  | 19715198 |
|  | 2819639 | 445098509 | 42471 | 447960619 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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6.4 Transfer of Financial Assets

6.4.1 Transferred financial assets that are derecognized in their entirety

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Type of continuing<br>involvement** | **Classification of<br>financial<br>instruments** | **Carrying amount<br>of continuing<br>involvement** | **Fair value of<br>continuing<br>involvement** |
|  Discovery 2<sup>nd</sup> Securitization Specialty Co., Ltd. | Subordinated bond | Financial assets at fair value through profit or loss | 564 | 564 |
|  AP 4D ABS Ltd. | Subordinated bond | Financial assets at fair value through profit or loss | 541 | 541 |
|  |  |  | 1105 | 1105 |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Type of continuing<br>involvement** | **Classification of<br>financial<br>instruments** | **Carrying amount<br>of continuing<br>involvement** | **Fair value of<br>continuing<br>involvement** |
|  Discovery 2<sup>nd</sup> Securitization Specialty Co., Ltd. | Subordinated bond | Financial assets at fair value through profit or loss | 5189 | 5189 |
|  AP 4D ABS Ltd. | Subordinated bond | Financial assets at fair value through profit or loss | 5463 | 5463 |
|  |  |  | 10652 | 10652 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

6.4.2 Bonds sold under repurchase agreements and loaned securities

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

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

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Carrying amount of**<br>**transferred assets** | **Carrying amount of**<br>**related liabilities** |
|  Bonds sold under repurchase agreements | 5459045 | 4930104 |
|  Loaned securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 239132 |  |
|  | 5698177 | 4930104 |
|  | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Carrying amount of**<br>**transferred assets** | **Carrying amount of**<br>**related liabilities** |
|  Bonds sold under repurchase agreements | 860565 | 832352 |
|  Loaned securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 49816 |  |
|  | 910381 | 832352 |

---

6.4.3 Purchase commitments of securitized debentures

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

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  Underlying assets | Financial assets at fair value through profit or loss | 15442 | 119710 |
|  | Loans measured at amortized cost \* | 1167244 | 2357972 |
|  |  | 1182686 | 2477682 |
|  Associated liabilities | Debentures | 1182844 | 2476072 |

---

\* Before netting of allowance

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

6.5 Offsetting Financial Assets and Financial Liabilities

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

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Gross assets** | **Gross**<br>**liabilities**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** |
| *(In millions of Korean won)* | **Gross assets** | **Gross**<br>**liabilities**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash<br>collateral** | **Net amount** |
|  Derivatives held for trading | 7529334 |  | 7529334 | (6367793) | (826) | 1398941 |
|  Derivatives held for hedging | 238226 |  | 238226 |  |  |  |
|  Unsettled spot exchange receivable | 3368979 |  | 3368979 | (3355280) |  | 13699 |
|  Bonds purchased under repurchase agreements | 2281357 |  | 2281357 | (2281357) |  |  |
|  Domestic exchange settlement debits | 55446595 | (54584853) | 861742 |  |  | 861742 |
|  Other financial instruments | 20283 | (15143) | 5140 |  |  | 5140 |
|  | 68884774 | (54599996) | 14284778 | (12004430) | (826) | 2279522 |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Gross assets** | **Gross**<br>**liabilities**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** |
| *(In millions of Korean won)* | **Gross assets** | **Gross**<br>**liabilities**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash<br>collateral** | **Net amount** |
|  Derivatives held for trading | 2835141 |  | 2835141 | (1810195) | (5) | 1155365 |
|  Derivatives held for hedging | 130424 |  | 130424 |  |  |  |
|  Unsettled spot exchange receivable | 2353879 |  | 2353879 | (2349893) |  | 3986 |
|  Bonds purchased under repurchase agreements | 5508594 |  | 5508594 | (5508594) |  |  |
|  Domestic exchange settlement debits | 43372672 | (42383120) | 989552 |  |  | 989552 |
|  Other financial instruments | 20728 | (20377) | 351 |  |  | 351 |
|  | 54221438 | (42403497) | 11817941 | (9668682) | (5) | 2149254 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Gross<br>liabilities** | **Gross**<br>**assets**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** |
| *(In millions of Korean won)* | **Gross<br>liabilities** | **Gross**<br>**assets**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash<br>collateral** | **Net amount** |
|  Derivatives held for trading | 7166128 |  | 7166128 | (4925667) |  | 2345317 |
|  Derivatives held for hedging | 104856 |  | 104856 |  |  |  |
|  Unsettled spot exchange payable | 3368837 |  | 3368837 | (3355280) |  | 13557 |
|  Bonds sold under repurchase agreements \* | 4948293 |  | 4948293 | (4948293) |  |  |
|  Domestic exchange settlement credits | 56319757 | (54584853) | 1734904 | (1734904) |  |  |
|  Other financial instruments | 15212 | (15143) | 69 |  |  | 69 |
|  | 71923083 | (54599996) | 17323087 | (14964144) |  | 2358943 |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Gross<br>liabilities** | **Gross**<br>**assets**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Non-offsetting amount** | **Non-offsetting amount** | **Net amount** |
| *(In millions of Korean won)* | **Gross<br>liabilities** | **Gross**<br>**assets**<br>**offset** | **Net amount in the<br>statement of<br>financial position** | **Financial<br>instruments** | **Cash<br>collateral** | **Net amount** |
|  Derivatives held for trading | 2706548 |  | 2706548 | (2019139) |  | 729880 |
|  Derivatives held for hedging | 42471 |  | 42471 |  |  |  |
|  Unsettled spot exchange payable | 2352736 |  | 2352736 | (2349893) |  | 2843 |
|  Bonds sold under repurchase agreements \* | 832352 |  | 832352 | (832352) |  |  |
|  Domestic exchange settlement credits | 47504809 | (42383120) | 5121689 | (5121689) |  |  |
|  Other financial instruments | 23363 | (20377) | 2986 |  |  | 2986 |
|  | 53462279 | (42403497) | 11058782 | (10323073) |  | 735709 |

---

\* Includes bonds sold under repurchase agreements to customers.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**7. Due from Financial Institutions** 

7.1 Details of due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial**<br> **institutions** | **Interest<br>rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea |  | 15169704 | 15317033 |
|  | Due from banks | Hana Bank and others | 0.00 ~ 2.76 | 377655 | 159059 |
|  | Due from others | KB Securities Co., Ltd. and others | 0.00 ~ 4.35 | 24152 | 20732 |
|  |  |  |  | 15571511 | 15496824 |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | The Bank of Korea and others | 0.00 ~ 4.00 | 5559644 | 6252882 |
|  | Time deposits in foreign currencies | Bank of Communications, Seoul and others | 0.00 ~ 6.80 | 458225 | 389320 |
|  | Due from others | Morgan Stanley and others | 0.00 ~ 6.00 | 979771 | 383502 |
|  |  |  |  | 6997640 | 7025704 |
|  |  |  |  | 22569151 | 22522528 |

---

\* Before netting of allowance

7.2 Details of restricted due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial institutions** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **Reasons of restriction** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea | 15169704 | 15317033 | Bank of Korea Act |
|  | Due from others | NH Investment & Securities Co., Ltd. and others | 24152 | 20733 | Derivatives margin account |
|  |  |  | 15193856 | 15337766 |  |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | The Bank of Korea and others | 2350756 | 2262610 | Bank of Korea Act and others |
|  | Time deposits in foreign currencies | Bank of Communications Co., Ltd. New York Branch | 63365 | 59275 | New York State Banking Law |
|  | Due from others | State Street Bank and Trust Company | 238978 | 206074 | Derivatives margin account |
|  |  |  | 2653099 | 2527959 |  |
|  |  |  | 17846955 | 17865725 |  |

---

\* Before netting of allowance

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

7.3 Changes in allowances for credit losses of due from financial institutions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 2127 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | (358) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 106 |  |  |
|  Ending | 1875 |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 2063 | 34 | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 7 | (35) | (282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 57 | 1 |  |
|  Ending | 2127 |  |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**8. Assets Pledged as Collateral** 

8.1 Details of assets pledged as collateral as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)*<br> **Assets pledged** | **Pledgee** | **Carrying<br>amount** | **Reasons of pledge** |
|  Securities measured at fair value through profit or loss | The Korea Securities Depository and others | 116645 | Repurchase agreements |
|  | Korea Securities Finance Corporation | 34071 | Difference amount of the total limit |
|  | The Bank of Korea | 236832 | Settlement risk of the Bank of Korea |
|  |  | 387548 |  |
|  Securities measured at fair value through other comprehensive income | The Bank of Korea | 3078859 | Repurchase agreements |
|  |  | 5495686 | Borrowings from the Bank of Korea |
|  |  | 1782507 | Settlement risk of the Bank of Korea |
|  | MUFGBANK and others | 475265 | Derivatives transactions |
|  | UBSAG and others | 486654 | Others |
|  |  | 11318971 |  |
|  Securities measured at amortized cost | The Bank of Korea and others | 1890368 | Repurchase agreements |
|  | The Bank of Korea | 4020539 | Borrowings from the Bank of Korea |
|  |  | 5047277 | Settlement risk of the Bank of Korea |
|  | KB Securities Co., Ltd. and others | 230050 | Derivatives transactions |
|  | CITI Bank and others | 378416 | Others |
|  |  | 11566650 |  |
|  Loans | Others | 12863079 | Covered bond and others |
|  Building / Land | Hanwha Life Insurance Co., Ltd. and others | 225833 | Others |
|  |  | 36362081 |  |
|  |  | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)*<br> **Assets pledged** | **Pledgee** | **Carrying<br>amount** | **Reasons of pledge** |
|  Securities measured at fair value through profit or loss | The Korea Exchange and others | 267505 | Repurchase agreements |
|  | Samsung Futures and others | 9889 | Derivatives transactions |
|  | Others | 94265 | Others |
|  |  | 371659 |  |
|  Securities measured at fair value through other comprehensive income | CITI Bank | 57693 | Repurchase agreements |
|  | The Bank of Korea | 2843426 | Borrowings from the Bank of Korea |
|  |  | 1249049 | Settlement risk of the Bank of Korea |
|  | JP Morgan Chase Bank and others | 590321 | Derivatives transactions |
|  | Others | 34757 | Others |
|  |  | 4775246 |  |
|  Securities measured at amortized cost | Meritz Securities and others | 494974 | Repurchase agreements |
|  | The Bank of Korea | 4847855 | Borrowings from the Bank of Korea |
|  |  | 3948622 | Settlement risk of the Bank of Korea |
|  | KB Securities Co., Ltd. and others | 133860 | Derivatives transactions |
|  | KB Insurance Co., Ltd. and others | 121880 | Others |
|  |  | 9547191 |  |
|  Loans | Others | 9659575 | Covered bond and others |
|  Building / Land | Hanwha Life Insurance Co., Ltd. and others | 227414 | Others |
|  |  | 24581085 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

8.2 Fair value of collateral available to sell or repledge, and collateral sold or repledged, regardless of debtor's default as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value of**<br>**collateral held** | **Fair value of collateral**<br>**sold or repledged** |
|  Securities | 2572441 |  |
|  | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair value of**<br>**collateral held** | **Fair value of collateral**<br>**sold or repledged** |
|  Securities | 5963678 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**9. Derivative Financial Instruments and Hedge Accounting** 

The Group engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Group's own assets and liabilities. In particular, the Group applies fair value hedge accounting using interest rate swaps to hedge the risk of changes in fair value due to the changes in interest rate of structured debentures in Korean won, debentures, structured deposits in foreign currencies, and debt securities at fair value through other comprehensive income. Also, the Group applies cash flow hedge accounting using interest rate swaps to hedge the risk of changes in cash flows of debentures in foreign currencies, borrowings in foreign currencies, and group of loans measured at amortized cost. In addition, the Group applies net investments in foreign operations hedge accounting by designating debentures in foreign currencies and spot components of the currency forward as hedging instruments to hedge the currency risk of net investments in foreign operations.

9.1 Details of derivative financial instruments held for trading as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Notional**<br>**Amount** | **Assets** | **Liabilities** | **Notional**<br>**amount** | **Assets** | **Liabilities** |
|  **Interest rate** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 2765927 | 355407 | 11092 | 738589 | 24928 | 296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures <sup>1</sup> | 2105953 |  |  | 1863050 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps <sup>2</sup> | 221095884 | 759599 | 437916 | 198819031 | 301070 | 312076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options | 9798000 | 268469 | 265283 | 11657000 | 172060 | 195666 |
|  | 235765764 | 1383475 | 714291 | 213077670 | 498058 | 508038 |
|  **Currency** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 107620136 | 2557498 | 2354719 | 95717113 | 1217979 | 854539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures <sup>1</sup> | 50692 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 93409026 | 3563775 | 4067824 | 65641211 | 1111462 | 1330595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options | 2270274 | 24585 | 29294 | 2051034 | 7643 | 13376 |
|  | 203350128 | 6145858 | 6451837 | 163409358 | 2337084 | 2198510 |
|  **Stock and index** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options | 355 | 33 |  | 355 | 17 |  |
|  | 355 | 33 |  | 355 | 17 |  |
|  **Credit** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  |  |  | 13423 |  |  |
|  |  |  |  | 13423 |  |  |
|  **Others** | 94300 |  | 450 | 94300 | 43 | 393 |
|  | 439210547 | 7529366 | 7166578 | 376595106 | 2835202 | 2706941 |

---

<sup>1</sup> Gains or losses arising from daily mark-to-market futures are reflected in the margin accounts.

<sup>2</sup> Notional amounts of \ 184,565,603 million and \ 158,974,418 million as of December 31, 2022 and 2021, respectively, were traded through the central clearing house. 

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **1 year** | **2 years** | **3 years** | **4 years** | **5 years** | **Over**<br>**5 years** | **Total** |
|  **Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 5064802 | 1128620 | 2660326 | 1862039 | 426551 | 2147845 | 13290183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 4.17 | 4.52 | 4.64 | 4.56 | 4.36 | 4.64 | 4.43 |
|  **Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 843555 | 226730 |  |  | 806003 |  | 1876288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 4.64 | 4.06 |  |  | 5.10 |  | 4.77 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **1 year** | **2 years** | **3 years** | **4 years** | **5 years** | **Over**<br>**5 years** | **Total** |
|  **Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 1044669 | 1171185 | 701102 | 2153038 | 1420914 | 2419231 | 8910139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 0.94 | 1.23 | 1.04 | 1.16 | 1.06 | 1.39 | 1.18 |
|  **Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 2843325 | 414925 |  |  |  |  | 3258250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 0.93 | 0.76 |  |  |  |  | 0.91 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

9.3 Fair Value Hedge

9.3.1 Details of fair value hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** |
|  |  | **Carrying amount** | **Carrying amount** | **Accumulated amount<br>of hedge adjustments** | **Accumulated amount<br>of hedge adjustments** | **Changes<br>in fair<br>value** |
| *(In millions of Korean won)* |  | **Assets** | **Liabilities** | **Assets** | **Liabilities** | **Changes<br>in fair<br>value** |
|  **Interest rate** | Debt securities in Korean won | 2467171 |  | (107444) |  | (86757) |
|  | Debt securities in foreign currencies | 3142972 |  | (232085) |  | (215184) |
|  | Deposits in foreign currencies |  | 29429 |  | (8591) | 6976 |
|  | Debentures in Korean won |  | 5690371 |  | (249629) | 171841 |
|  | Debentures in foreign currencies |  | 1196781 |  | (95865) | 123817 |
|  |  | 5610143 | 6916581 | (339529) | (354085) | 693 |
|  |  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** |
|  |  | **Carrying amount** | **Carrying amount** | **Accumulated amount<br>of hedge adjustments** | **Accumulated amount<br>of hedge adjustments** | **Changes<br>in fair<br>value** |
| *(In millions of Korean won)* |  | **Assets** | **Liabilities** | **Assets** | **Liabilities** | **Changes<br>in fair<br>value** |
|  **Interest rate** | Debt securities in Korean won | 1627228 |  | (20272) |  | (21071) |
|  | Debt securities in foreign currencies | 3567662 |  | (12505) |  | (71246) |
|  | Deposits in foreign currencies |  | 93521 |  | (1319) | 3222 |
|  | Debentures in Korean won |  | 2470123 |  | (79877) | 70308 |
|  | Debentures in foreign currencies |  | 1154178 |  | 27953 | 45132 |
|  |  | 5194890 | 3717822 | (32777) | (53243) | 26345 |

---

9.3.2 Details of derivative instruments designated as fair value hedge as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** |
| *(In millions of Korean won)* | **Notional<br>amount** | **Assets** | **Liabilities** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 13290183 | 186258 | 104856 | (1245) |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** |
| *(In millions of Korean won)* | **Notional<br>amount** | **Assets** | **Liabilities** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 8910139 | 127290 | 38253 | (33228) |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

9.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Interest rate | (552) | (6883) |

---

9.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Gains and Losses on hedging instruments | 28171 | (12657) |
|  Gains on hedged items attributable to the hedged risk | (28752) | 13056 |
|  | (581) | 399 |

---

9.4 Cash Flow Hedge

9.4.1 Details of cash flow hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Cash flow hedge reserve** | **Cash flow hedge reserve** | **Changes in fair value** | **Changes in fair value** |
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk | 33921 | (89) | (47251) | (11306) |

---

9.4.2 Details of derivative instruments designated as cash flow hedge as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Notional<br>amount** | **Notional<br>amount** | **Assets** | **Assets** | **Liabilities** | **Changes in<br>fair value** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 1876288 |  | 51968 |  |  | 44064 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Notional<br>amount** | **Notional<br>amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Changes in<br>fair value** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 3258250 |  | 3134 |  | 4218 |  | 11555 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

9.4.3 Gains on cash flow hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Gains on hedging instruments: | 44064 | 11555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective portion of gains on cash flow hedging instruments (recognized in other comprehensive income or loss) | 43886 | 11468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ineffective portion of gains on cash flow hedging instruments (recognized in profit or loss) | 178 | 87 |

---

9.4.4 Amounts recognized in other comprehensive income and reclassified from equity to profit related to derivative instruments designated as cash allow hedge for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Other comprehensive income | 43886 | 11468 |
|  Reclassification to profit | 2388 | 2303 |
|  Income tax effect | (12264) | (3787) |
|  | 34010 | 9984 |

---

9.4.5 As of December 31, 2022, the hedged items subject to cash flow hedge are exposed to the risk of changes in cash flows until August 5, 2027.

9.5 Hedge of Net Investments in Foreign Operations

9.5.1 Details of net investments in foreign operations hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Foreign currency**<br>**translation reserve** | **Foreign currency**<br>**translation reserve** | **Changes in fair<br>value** | **Changes in fair<br>value** |
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **2022** | **2021** |
|  Currency risk | (95296) | (30306) | 87853 | 80235 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

9.5.2 Details of financial instruments designated as hedge of net investments in foreign operations as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** |
| *(In millions of Korean won)* | **Notional<br>amount** | **Assets** | **Liabilities** | **Changes<br>in fair<br>value** |
|  Debentures in foreign currencies | 1361080 |  | 1361080 | (87853) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** |
| *(In millions of Korean won)* | **Notional<br>amount** | **Assets** | **Liabilities** | **Changes<br>in fair<br>value** |
|  Debentures in foreign currencies | 1273227 |  | 1273227 | (80235) |

---

9.5.3 Fair value of non-derivative financial instruments designated as hedge of net investments in foreign operations as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Debentures in foreign currencies |  | 1211215 |  | 1275291 |

---

9.5.4 Losses on net investments in foreign operations hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Losses on hedging instruments: | (87853) | (80235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective portion of losses on hedge of net investments in foreign operations (recognized in other comprehensive loss) | (87853) | (80235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ineffective portion of losses on hedge of net investments in foreign operations (recognized in loss) |  |  |

---

9.5.5 Effective portion of gains (losses) on net investments in foreign operations hedging instruments recognized in other comprehensive loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Other comprehensive loss | (87853) | (80241) |
|  Reclassification to income |  | 5195 |
|  Income tax effect | 22863 | 20637 |
|  | (64990) | (54409) |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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9.6 Interest Rate Benchmark Reform

The USD LIBOR interest rate will be replaced by the Secured Overnight Financing Rate ("SOFR") based on actual transactions. In the case of KRW, the Korean government bond/monetary stabilization bond RP rate has been finally decided as the Risk-Free Reference Rate ("RFR") and will replace the Certificate of Deposit ("CD") rate in the mid to long-term. Within the corresponding hedging relationship of related significant interest rate benchmark, the Group assumed that the spread to be changed on the RFR basis including SOFR would be similar to that included in the interest rate swap used as a hedging instrument, and no other changes were assumed.

Details of the Group's exposure to hedging relationships related to the interest rate benchmark reform as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won and millions of US dollars)* |  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| **Interest rate**<br> **benchmark** | **Currency** | **Carrying amount**<br>**of non-derivative<br>assets** | **Carrying amount**<br>**of non-derivative<br>liabilities** | **Notional amount**<br>**of hedging<br>instruments** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CD#3M | KRW | 3060791 | 5690371 | 6440000 |
|  USD#LIBOR#3M | USD | 1895 | 1257 | 3478 |
|  USD#LIBOR#6M | USD | 167 |  | 182 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| **Interest rate**<br> **benchmark** |<br>**Currency** | **Carrying amount**<br>**of non-derivative<br>assets** | **Carrying amount**<br>**of non-derivative<br>liabilities** | **Notional amount**<br>**of hedging<br>instruments** |
|  CD#3M | KRW | 3123388 | 2470123 | 5690000 |
|  USD#LIBOR#3M | USD | 2695 | 2154 | 4836 |
|  USD#LIBOR#6M | USD | 224 |  | 225 |

---

**10. Loans Measured at Amortized Cost** 

10.1 Details of loans as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  Loans | 377000459 | 363049216 |
|  Deferred loan origination fees and costs | 436128 | 522425 |
|  Less: Allowances for credit losses | (2764611) | (2426940) |
|  | 374671976 | 361144701 |

---

10.2 Details of loans to banks as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  Loans | 9751737 | 8325177 |
|  Less: Allowances for credit losses | (1951) | (443) |
|  | 9749786 | 8324734 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Retail** | **Corporate** | **Credit card** | **Total** |
|  Loans in Korean won | 166731575 | 161671964 |  | 328403539 |
|  Loans in foreign currencies | 3732325 | 25210008 |  | 28942333 |
|  Domestic import usance bills |  | 4499072 |  | 4499072 |
|  Off-shore funding loans |  | 943751 |  | 943751 |
|  Call loans |  | 119066 |  | 119066 |
|  Bills bought in Korean won |  | 285727 |  | 285727 |
|  Bills bought in foreign currencies |  | 1780874 |  | 1780874 |
|  Guarantee payments under acceptances and guarantees |  | 18459 |  | 18459 |
|  Credit card receivables in foreign currencies |  |  | 43022 | 43022 |
|  Bonds purchased under repurchase agreements |  | 2281357 |  | 2281357 |
|  Privately placed bonds |  | 367650 |  | 367650 |
|  | 170463900 | 197177928 | 43022 | 367684850 |
|  Proportion (%) | 46.36 | 53.63 | 0.01 | 100.00 |
|  Less: Allowances for credit losses | (946471) | (1800432) | (15757) | (2762660) |
|  | 169517429 | 195377496 | 27265 | 364922190 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Retail** | **Corporate** | **Credit card** | **Total** |
|  Loans in Korean won | 170760821 | 148957704 |  | 319718525 |
|  Loans in foreign currencies | 3218116 | 20267749 |  | 23485865 |
|  Domestic import usance bills |  | 3311142 |  | 3311142 |
|  Off-shore funding loans |  | 1135753 |  | 1135753 |
|  Call loans |  | 902301 |  | 902301 |
|  Bills bought in Korean won |  | 2209 |  | 2209 |
|  Bills bought in foreign currencies |  | 2001046 |  | 2001046 |
|  Guarantee payments under acceptances and guarantees |  | 20773 |  | 20773 |
|  Credit card receivables in foreign currencies |  |  | 55520 | 55520 |
|  Bonds purchased under repurchase agreements |  | 4408594 |  | 4408594 |
|  Privately placed bonds |  | 204736 |  | 204736 |
|  | 173978937 | 181212007 | 55520 | 355246464 |
|  Proportion (%) | 48.97 | 51.01 | 0.02 | 100.00 |
|  Less: Allowances for credit losses | (669125) | (1736776) | (20596) | (2426497) |
|  | 173309812 | 179475231 | 34924 | 352819967 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Increase** | **Decrease** | **Others** | **Ending** |
|  **Deferred loan origination costs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 583477 | 243913 | (305106) |  | 522284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 168 | 550 | (343) | 4 | 379 |
|  | 583645 | 244463 | (305449) | 4 | 522663 |
|  **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 10076 | 23067 | (9423) |  | 23720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in foreign currencies and others | 51144 | 45554 | (36346) | 2463 | 62815 |
|  | 61220 | 68621 | (45769) | 2463 | 86535 |
|  | 522425 | 175842 | (259680) | (2459) | 436128 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Increase** | **Decrease** | **Others** | **Ending** |
|  **Deferred loan origination costs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 590064 | 327891 | (334478) |  | 583477 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 569 | 51 | (451) | (1) | 168 |
|  | 590633 | 327942 | (334929) | (1) | 583645 |
|  **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 6998 | 5479 | (2400) | (1) | 10076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in foreign currencies and others | 43025 | 31216 | (26717) | 3620 | 51144 |
|  | 50023 | 36695 | (29117) | 3619 | 61220 |
|  | 540610 | 291247 | (305812) | (3620) | 522425 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**11. Allowances for Credit Losses** 

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Retail** | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Credit card** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** |
|  Beginning | 299033 | 174459 | 195633 |  | 366300 | 454618 | 916301 |  | 1078 |  | 19518 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 122203 | (115982) | (6221) |  | 127532 | (120472) | (7060) |  | 5551 |  | (5551) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (95013) | 106174 | (11161) |  | (92679) | 124435 | (31756) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (1771) | (41840) | 43611 |  | (10016) | (48065) | 58081 |  | (34) |  | 34 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | (1) | (257656) |  |  | (3) | (582470) |  |  |  | (6182) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (805) | (137) | (289) |  | (103) | (145) | (66974) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses <sup>1, 2</sup> | 115830 | 83346 | 355717 |  | 6911 | 114300 | 666251 |  | (5278) | 309 | 8520 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | (1937) | (650) | (16072) |  | 7757 | 1411 | (81771) |  | (430) | (21) | (1757) |  |
|  Ending | 437540 | 205369 | 303562 |  | 405702 | 526079 | 870602 |  | 887 | 288 | 14582 |  |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Retail** | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Credit card** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** |
|  Beginning | 270545 | 177665 | 170621 |  | 333135 | 388522 | 843225 |  | 74 |  | 3024 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 118301 | (113470) | (4831) |  | 133653 | (71680) | (61973) |  | 7 |  | (7) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (91250) | 100691 | (9441) |  | (71169) | 91380 | (20211) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (4370) | (42616) | 46986 |  | (2894) | (41657) | 44551 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | 12 | (230859) |  |  | (3) | (237343) |  |  |  | (18924) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (1100) | (33) | (975) |  | (5) |  | (15662) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses <sup>1, 2</sup> | 6837 | 51691 | 221946 |  | (35521) | 87382 | 334073 |  | 955 |  | 35003 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 70 | 519 | 2186 |  | 9101 | 674 | 29641 |  | 42 |  | 422 |  |
|  Ending | 299033 | 174459 | 195633 |  | 366300 | 454618 | 916301 |  | 1078 |  | 19518 |  |

---

<sup>1</sup> Provision (reversal) for credit losses in the consolidated statements of comprehensive income also includes provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note 22.2), provision (reversal) for credit losses of financial guarantee contracts (Note 22.4), provision (reversal) for credit losses of other financial assets (Note 18.2), provision (reversal) for credit losses of due from financial institutions (Note 7.3) and provision (reversal) for credit losses of debt securities (Note 12.5). 

<sup>2</sup> Includes \ 267,928 million and \ 230,758 million of collections from written-off loans for the years ended December 31, 2022 and 2021, respectively.

The Group manages the written-off loans that their legal extinctive prescriptions have not been completed, and that have not been collected. The balances of those loans are \ 7,870,811 million and \ 7,939,987 million as of December 31, 2022 and 2021, respectively.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

11.2 Changes in gross carrying amount of loans for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Credit<br>impaired<br>approach** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** |
|  Beginning | 334424618 | 26384843 | 2762180 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 33450163 | (33290588) | (159575) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (36749481) | 37156737 | (407256) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (923910) | (1312907) | 2236817 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | (4) | (846308) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (2459517) | (14788) | (228857) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) (execution, repayment, and others) | 20390409 | (2252470) | (723519) |  |
|  Ending | 348132282 | 26670823 | 2633482 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Credit<br>impaired<br>approach** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** |
|  Beginning | 302701700 | 24106892 | 2710714 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 30120605 | (29694039) | (426566) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (34694281) | 35139427 | (445146) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (520253) | (1373673) | 1893926 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | 10 | (487127) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (2755184) | (7780) | (136052) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) (execution, repayment, and others) | 39572031 | (1785994) | (347569) |  |
|  Ending | 334424618 | 26384843 | 2762180 |  |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**12. Financial Assets at Fair Value through Profit or Loss and Financial Investments** 

12.1 Details of financial assets at fair value through profit or loss and financial investments as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Financial assets at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 4548399 | 2690148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds | 7285980 | 7710531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 1170321 | 1804306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities | 164543 | 197865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | 5728058 | 4634210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment funds | 528795 | 378712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative-linked securities | 55624 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities | 1274859 | 1097316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | 217748 | 113724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other loans | 149075 | 93930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments indexed to the price of gold | 90006 | 113622 |
|  | 21213408 | 18834364 |
|  **Financial investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 8148852 | 6147357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds | 17113728 | 18681163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 12606868 | 12529985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities | 237605 | 782401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities | 256779 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | 1402967 | 3144131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity investments | 15555 | 25669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Privately placed bonds | 231021 | 269609 |
|  | 40013375 | 41580315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 6520633 | 5742284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds | 10936138 | 3376623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 10026039 | 6358169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities | 7395434 | 6659710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities | 363984 | 31106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses | (5434) | (3298) |
|  | 35236794 | 22164594 |
|  | 75250169 | 63744909 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

12.2 Dividend income from equity securities designated at fair value through other comprehensive income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2021** | **2021** |
| *(In millions of Korean won)* | **From the**<br>**equity<br>securities<br>derecognized** | **From the**<br>**equity<br>securities**<br>**held** | **From the**<br>**equity<br>securities<br>derecognized** | **From the**<br>**equity<br>securities**<br>**held** |
|  Listed Stocks |  | 409 | 7106 | 300 |
|  Unlisted Stocks |  | 9526 | 372 | 10148 |
|  |  | 9935 | 7478 | 10448 |

---

12.3 Derecognized equity securities measured at fair value through other comprehensive income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2021** | **2021** |
| *(In millions of Korean won)* | **Disposal**<br>**price \*** | **Accumulated other<br>comprehensive<br>income as of**<br>**disposal date** | **Disposal**<br>**price \*** | **Accumulated other<br>comprehensive<br>loss as of disposal<br>date** |
|  Listed Stocks | 425736 | 335203 | 575288 | (319162) |
|  Unlisted Stocks |  |  | 458 | (162) |
|  | 425736 | 335203 | 575746 | (319324) |

---

\* The stocks were disposed of according to the stock price increase and joint sale resolution.

12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Provision** | **Reversal** | **Total** |
|  Financial assets at fair value through other comprehensive income | 2007 | (3544) | (1537) |
|  Securities measured at amortized cost | 2808 | (670) | 2138 |
|  | 4815 | (4214) | 601 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Provision** | **Reversal** | **Total** |
|  Financial assets at fair value through other comprehensive income | 6190 | (384) | 5806 |
|  Securities measured at amortized cost | 1628 | (662) | 966 |
|  | 7818 | (1046) | 6772 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

12.5 Changes in allowances for credit losses of financial investments for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 12169 | 27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (612) | (20) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 338 | 263 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 198 |  |  |
|  Ending | 12093 | 270 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 6986 | 39 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (1567) | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses | 6784 | (12) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | (34) | 4 |  |
|  Ending | 12169 | 27 |  |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**13. Investments in Associates** 

13.1 Details of investments in associates as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share<br>of net<br>asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  Korea Credit Bureau Co., Ltd. <sup>1</sup> | 9.00 | 4500 | 4959 | 4959 | Credit information | Korea |
|  Incheon Bridge Co., Ltd. <sup>1</sup> | 14.99 | 9159 | (15963) |  | Operation of highways and related facilities | Korea |
|  KB SPROTT Renewable Private Equity Fund No.1 | 30.00 | 14361 | 13165 | 13165 | Investment finance | Korea |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 45.00 | 4500 | 4038 | 4038 | Discovery of and investment in promising FinTech-business venture | Korea |
|  KB Digital Platform Fund | 46.67 | 26600 | 25357 | 25357 | Digital platform and Tech-based investment in promising companies | Korea |
|  KB Prime Digital Platform Fund | 43.33 | 2600 | 2563 | 2563 | Digital platform and Tech-based investment in promising companies | Korea |
|  Future Planning KB Start-up Creation Fund | 50.00 | 2200 | 9793 | 9793 | Investment finance | Korea |
|  KB High-tech Company Investment Fund | 50.00 | 1500 | 10662 | 10662 | Investment finance | Korea |
|  Aju Good Technology Venture Fund | 38.47 | 8144 | 19840 | 19836 | Investment finance | Korea |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 33.33 | 1800 | 2989 | 2989 | Investment finance | Korea |
|  KB-TS Technology Venture Private Equity Fund | 30.00 | 5220 | 7390 | 7390 | Investment finance | Korea |
|  KB Intellectual Property Fund No.2 | 37.50 | 15000 | 15204 | 15204 | Investment finance | Korea |
|  KB Digital Innovation Investment Fund Limited Partnership | 25.74 | 35000 | 34693 | 35000 | Investment finance | Korea |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 21.28 | 6600 | 8901 | 8901 | Investment finance | Korea |
|  KB Global Platform Fund | 22.73 | 43850 | 50366 | 50366 | Investment finance | Korea |
|  KB-UTC Inno-Tech Venture Fund | 29.53 | 14250 | 12786 | 12786 | Investment finance | Korea |
|  WJ Private Equity Fund No.1 | 26.95 | 10000 | 9542 | 9542 | Investment finance | Korea |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 28.57 | 10000 | 8380 | 8380 | Investment finance | Korea |
|  KB Smart Scale Up Fund | 25.00 | 43000 | 40288 | 40288 | Investment finance | Korea |
|  KB Scale Up Fund II | 20.00 | 4500 | 4438 | 4438 | Investment finance | Korea |
|  KB Bio Global Expansion Private Equity Fund No.1 | 26.32 | 10000 | 10519 | 10519 | Investment finance | Korea |
|  KB-KTB Technology Venture Fund | 27.27 | 9000 | 8709 | 8709 | Investment finance | Korea |
|  KB-SOLIDUS Healthcare Investment Fund | 29.41 | 6600 | 6217 | 6217 | Investment finance | Korea |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.1 Details of investments in associates as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  KB New Deal Innovation Fund | 20.00 | 13600 | 13241 | 13241 | Investment finance | Korea |
|  All Together Korea Fund No.2 <sup>2</sup> | 99.99 | 10000 | 10244 | 10244 | Asset management | Korea |
|  Shinla Construction Co., Ltd. <sup>3</sup> | 20.17 |  | (551) |  | Specialty construction | Korea |
|  Terra Corporation <sup>3</sup> | 24.06 |  | 2 |  | Manufacture of fabricated and processed metal products | Korea |
|  MJT&I Corp. <sup>3</sup> | 22.89 |  | (882) |  | Wholesale of other merchandise | Korea |
|  Jungdong Steel Co., Ltd. <sup>3</sup> | 42.65 |  | (433) |  | Wholesale of primary metal | Korea |
|  DSMETAL Co., Ltd. <sup>3</sup> | 26.49 |  | (101) |  | Manufacture of metal door, windows, shutter and relevant products | Korea |
|  Shinhwa Underwear Co., Ltd. <sup>3</sup> | 26.05 |  | (73) | 167 | Manufacture of underwear and sleepwear | Korea |
|  Jaeyang Industry Co., Ltd. <sup>3</sup> | 20.86 |  | (552) |  | Manufacture of luggage and other protective cases | Korea |
|  Kendae Co., Ltd. <sup>3</sup> | 41.01 |  | (252) | 98 | Screen printing | Korea |
|  Jinseung Tech Co., Ltd. <sup>3</sup> | 30.04 |  | (191) |  | Manufacture of other general-purpose machinery | Korea |
|  Dongjo Co., Ltd. <sup>3</sup> | 29.29 |  | (5) |  | Wholesale of agricultural and forestry machinery and equipment | Korea |
|  Korea NM Tech Co., Ltd. <sup>3</sup> | 22.41 |  | 549 |  | Manufacture of motor vehicles, trailers and semitrailers | Korea |
|  Jungdo Co., Ltd. <sup>3</sup> | 25.34 |  | 1112 |  | Office, commercial and institutional building construction | Korea |
|  Dae-A Leisure Co., Ltd. <sup>3</sup> | 49.36 |  | 523 |  | Earth works | Korea |
|  Chongil Machine & Tools Co., Ltd. <sup>3</sup> | 20.40 |  | (178) |  | Wholesale of machinery and equipment | Korea |
|  Imt Technology Co., Ltd. <sup>3</sup> | 25.29 |  | 34 | 15 | Computer Peripherals Distribution | Korea |
|  Iwon Alloy Co., Ltd. <sup>3</sup> | 23.20 |  | 374 |  | Manufacture of smelting, refining and alloys | Korea |
|  Computerlife Co., Ltd. <sup>3</sup> | 25.41 |  | (130) | 50 | Publishing of magazines and periodicals (publishing industry) | Korea |
|  Skydigital Inc. <sup>3</sup> | 20.40 |  | (318) |  | Manufacture of multimedia and video devices | Korea |
|  Jo Yang Industrial Co., Ltd. <sup>3</sup> | 22.77 |  | (36) |  | Manufacture of special glass | Korea |
|  Il-Kwang Electronic Materials Co., Ltd. <sup>3</sup> | 29.06 |  | (555) |  | Manufacture of electronic parts | Korea |
|  So-Myung Recycling Co., Ltd. <sup>3</sup> | 20.23 |  | 246 | 61 | Manufacture of nonferrous metal | Korea |
|  IDTECK Co., Ltd. <sup>3</sup> | 20.54 |  | 42 | 164 | Other manufacturing of wireless telecommunications equipment | Korea |
|  PIP System Co., Ltd. <sup>3</sup> | 20.72 |  | 27 |  | Print equipment | Korea |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.1 Details of investments in associates as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  Gwang Myung Paper Co., Ltd. <sup>3</sup> | 20.54 |  | 84 |  | Wholesale of luggage and other protective cases | Korea |
|  D-Partner <sup>3</sup> | 20.94 |  | 832 | 384 | Backlight film | Korea |
|  Inter Shipping Co., Ltd. <sup>3</sup> | 42.09 |  | (1038) |  | Sea freight water transport | Korea |
|  Chunsung-meat Co., Ltd. <sup>3</sup> | 26.74 |  | 246 |  | Wholesale of meat | Korea |
|  DS Fashionbiz Co., Ltd. <sup>3</sup> | 47.64 |  | (1) | 1 | Manufacture of textiles | Korea |
|  ALTSCS Co., Ltd. <sup>3</sup> | 47.11 |  | 408 |  | Manufacture of motor vehicle parts | Korea |
|  E-Won Chemical Co., Ltd. <sup>3</sup> | 24.30 |  | 35 |  | Manufacture, wholesale and retail trade of feeds | Korea |
|  TMAPMOBILITY CO.,LTD. <sup>1</sup> | 8.25 | 200000 | 61518 | 194454 | Application software development and supply | Korea |
|  TKDS CO., LTD <sup>3</sup> | 20.03 |  | 171 |  | Manufacture of video and other imaging equipment | Korea |
|  SANDLE FARMING ASSOCIATION <sup>3</sup> | 23.04 |  | 306 |  | Manufacture of edible refined oil and processed oil | Korea |
|  |  | 511984 | 379534 | 529981 |  |  |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.1 Details of investments in associates as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  Korea Credit Bureau Co., Ltd. <sup>1</sup> | 9.00 | 4500 | 4497 | 4497 | Credit information | Korea |
|  Balhae Infrastructure Company <sup>1</sup> | 12.61 | 105923 | 99785 | 99785 | Investment finance | Korea |
|  Incheon Bridge Co., Ltd. <sup>1</sup> | 14.99 | 9159 | (19481) |  | Operation of highways and related facilities | Korea |
|  KB SPROTT Renewable Private Equity Fund No.1 | 30.00 | 4613 | 3726 | 3726 | Investment finance | Korea |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 45.00 | 4500 | 4098 | 4098 | Discovery of and investment in promising FinTech-business venture | Korea |
|  KB Digital Platform Fund | 46.67 | 12600 | 12599 | 12599 | Digital platform and Tech-based investment in promising companies | Korea |
|  Future Planning KB Start-up Creation Fund | 50.00 | 3900 | 10275 | 10275 | Investment finance | Korea |
|  KB High-tech Company Investment Fund | 50.00 | 1500 | 10493 | 10493 | Investment finance | Korea |
|  Aju Good Technology Venture Fund | 38.47 | 12344 | 22926 | 22921 | Investment finance | Korea |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 33.33 | 4400 | 5895 | 5895 | Investment finance | Korea |
|  KB-TS Technology Venture Private Equity Fund | 30.00 | 7650 | 9015 | 9015 | Investment finance | Korea |
|  KB Intellectual Property Fund No.2 | 37.50 | 15000 | 13838 | 14588 | Investment finance | Korea |
|  KB Digital Innovation Investment Fund Limited Partnership | 25.74 | 35000 | 35517 | 35517 | Investment finance | Korea |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 21.28 | 13000 | 14834 | 14834 | Investment finance | Korea |
|  KB Global Platform Fund | 22.73 | 42000 | 49946 | 49946 | Investment finance | Korea |
|  KB-UTC Inno-Tech Venture Fund | 29.53 | 14250 | 13982 | 13982 | Investment finance | Korea |
|  WJ Private Equity Fund No.1 | 26.95 | 10000 | 9604 | 9604 | Investment finance | Korea |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 28.57 | 10000 | 9571 | 9571 | Investment finance | Korea |
|  KB Smart Scale Up Fund | 25.00 | 31000 | 31217 | 31217 | Investment finance | Korea |
|  KB Bio Global Expansion Private Equity Fund No.1 | 26.32 | 10000 | 9978 | 9978 | Investment finance | Korea |
|  KB-KTB Technology Venture Fund | 27.27 | 3000 | 2975 | 2975 | Investment finance | Korea |
|  KB-SOLIDUS Healthcare Investment Fund | 29.41 | 600 | 600 | 600 | Investment finance | Korea |
|  KB New Deal Innovation Fund | 20.00 | 4000 | 3991 | 3991 | Investment finance | Korea |
|  All Together Korea Fund No.2 <sup>2</sup> | 99.99 | 10000 | 10070 | 10070 | Asset management | Korea |
|  Shinla Construction Co., Ltd. <sup>3</sup> | 20.17 |  | (551) |  | Specialty construction | Korea |
|  Terra Corporation <sup>3</sup> | 24.06 |  | 2 |  | Manufacture of fabricated and processed metal products | Korea |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.1 Details of investments in associates as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  MJT&I Corp. <sup>3</sup> | 22.89 |  | (881) |  | Wholesale of other merchandise | Korea |
|  Jungdong Steel Co., Ltd. <sup>3</sup> | 42.65 |  | (433) |  | Wholesale of primary metal | Korea |
|  DSMETAL Co., Ltd. <sup>3</sup> | 26.49 |  | (100) |  | Manufacture of metal door, windows, shutter and relevant products | Korea |
|  Shinhwa Underwear Co., Ltd. <sup>3</sup> | 26.05 |  | (41) | 198 | Manufacture of underwear and sleepwear | Korea |
|  Jaeyang Industry Co., Ltd. <sup>3</sup> | 20.86 |  | (552) |  | Manufacture of luggage and other protective cases | Korea |
|  Kendae Co., Ltd. <sup>3</sup> | 41.01 |  | (252) | 98 | Screen printing | Korea |
|  Jinseung Tech Co., Ltd. <sup>3</sup> | 30.04 |  | (206) |  | Manufacture of other general-purpose machinery | Korea |
|  Dongjo Co., Ltd. <sup>3</sup> | 29.29 |  | 712 | 21 | Wholesale of agricultural and forestry machinery and equipment | Korea |
|  Korea NM Tech Co., Ltd. <sup>3</sup> | 22.41 |  | 552 |  | Manufacture of motor vehicles, trailers and semitrailers | Korea |
|  Jungdo Co., Ltd. <sup>3</sup> | 25.34 |  | 1105 |  | Office, commercial and institutional building construction | Korea |
|  Dae-A Leisure Co., Ltd. <sup>3</sup> | 49.36 |  | 833 |  | Earth works | Korea |
|  Chongil Machine & Tools Co., Ltd. <sup>3</sup> | 20.40 |  | (171) |  | Wholesale of machinery and equipment | Korea |
|  Imt Technology Co., Ltd. <sup>3</sup> | 25.29 |  | 25 | 6 | Computer Peripherals Distribution | Korea |
|  Iwon Alloy Co., Ltd. <sup>3</sup> | 23.20 |  | 394 |  | Manufacture of smelting, refining and alloys | Korea |
|  Carlife Co., Ltd. <sup>3</sup> | 24.39 |  | (62) | 13 | Publishing of magazines and periodicals (publishing industry) | Korea |
|  Computerlife Co., Ltd. <sup>3</sup> | 25.41 |  | (137) | 44 | Publishing of magazines and periodicals (publishing industry) | Korea |
|  Skydigital Inc. <sup>3</sup> | 20.40 |  | (316) |  | Manufacture of multimedia and video devices | Korea |
|  Jo Yang Industrial Co., Ltd. <sup>3</sup> | 22.77 |  | (29) |  | Manufacture of special glass | Korea |
|  Il-Kwang Electronic Materials Co., Ltd. <sup>3</sup> | 29.06 |  | (557) |  | Manufacture of electronic parts | Korea |
|  So-Myung Recycling Co., Ltd. <sup>3</sup> | 20.23 |  | 215 | 31 | Manufacture of nonferrous metal | Korea |
|  IDTECK Co., Ltd. <sup>3</sup> | 20.54 |  | (208) |  | Other manufacturing of wireless telecommunications equipment | Korea |
|  PIP System Co., Ltd. <sup>3</sup> | 20.72 |  | 27 |  | Print equipment | Korea |
|  Gwang Myung Paper Co., Ltd. <sup>3</sup> | 20.54 |  | 84 |  | Wholesale of luggage and other protective cases | Korea |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.1 Details of investments in associates as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  D-Partner <sup>3</sup> | 20.94 |  | 816 | 369 | Backlight film | Korea |
|  Inter Shipping Co., Ltd. <sup>3</sup> | 42.09 |  | (17) |  | Sea freight water transport | Korea |
|  Chunsung-meat Co., Ltd. <sup>3</sup> | 26.74 |  | 270 |  | Wholesale of meat | Korea |
|  DS Fashionbiz Co., Ltd. <sup>3</sup> | 47.64 |  | (1) |  | Manufacture of textiles | Korea |
|  |  | 368939 | 370472 | 390957 |  |  |

---

<sup>1</sup> As of December 31, 2022 and 2021, the Group can exercise significant influence on the decision-making processes of the associate's financial and business policies through participation in governing bodies.

<sup>2</sup> As of December 31, 2022 and 2021, the Group participates in the investment management committee but cannot exercise control.

<sup>3</sup> The investment in associates was reclassified from financial assets at fair value through other comprehensive income due to termination of rehabilitation procedures.

Although the Group holds 20% or more of the ownership in several investment trusts including KB Hanbando BTL Private Special Asset Fund No.1, those investment trusts are excluded from associates because the Group's influence on those trusts is limited according to the trust agreement. In addition, the Group holds 20% or more of its ownership in Seokwang T&I Co., Ltd. and six other companies, but those companies are excluded from associates, because the Group's influence on those companies is limited due to the status of those companies such as bankruptcy and rehabilitation proceedings.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2022 \*** |
| *(In millions of Korean won)* | **Total<br>assets** | **Total<br>liabilities** | **Paid-in<br>capital** | **Equity** | **Share of net<br>asset<br>amount** | **Unrealized<br>gains (losses)<br>and others** | **Carrying<br>amount** |
|  Korea Credit Bureau Co., Ltd. | 155165 | 100065 | 10000 | 55100 | 4959 |  | 4959 |
|  Incheon Bridge Co., Ltd. | 554738 | 661227 | 61096 | (106489) | (15963) | 15963 |  |
|  KB SPROTT Renewable Private Equity Fund No.1 | 44880 | 996 | 47868 | 43884 | 13165 |  | 13165 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 9060 | 87 | 10000 | 8973 | 4038 |  | 4038 |
|  KB Digital Platform Fund | 55091 | 755 | 57000 | 54336 | 25357 |  | 25357 |
|  KB Prime Digital Platform Fund | 6022 | 108 | 6000 | 5914 | 2563 |  | 2563 |
|  Future Planning KB Start-up Creation Fund | 21965 | 2379 | 4400 | 19586 | 9793 |  | 9793 |
|  KB High-tech Company Investment Fund | 24480 | 3157 | 3000 | 21323 | 10662 |  | 10662 |
|  Aju Good Technology Venture Fund | 58749 | 7171 | 21180 | 51578 | 19840 | (4) | 19836 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 9226 | 260 | 5400 | 8966 | 2989 |  | 2989 |
|  KB-TS Technology Venture Private Equity Fund | 30347 | 5715 | 17400 | 24632 | 7390 |  | 7390 |
|  KB Intellectual Property Fund No.2 | 42713 | 2169 | 40000 | 40544 | 15204 |  | 15204 |
|  KB Digital Innovation Investment Fund Limited Partnership | 137321 | 2512 | 136000 | 134809 | 34693 | 307 | 35000 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 42538 | 705 | 31020 | 41833 | 8901 |  | 8901 |
|  KB Global Platform Fund | 224388 | 2779 | 192940 | 221609 | 50366 |  | 50366 |
|  KB-UTC Inno-Tech Venture Fund | 44111 | 809 | 48260 | 43302 | 12786 |  | 12786 |
|  WJ Private Equity Fund No.1 | 35561 | 161 | 37100 | 35400 | 9542 |  | 9542 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 29462 | 132 | 35000 | 29330 | 8380 |  | 8380 |
|  KB Smart Scale Up Fund | 161926 | 776 | 172000 | 161150 | 40288 |  | 40288 |
|  KB Scale Up Fund II | 22571 | 379 | 22500 | 22192 | 4438 |  | 4438 |
|  KB Bio Global Expansion Private Equity Fund No.1 | 40080 | 106 | 38000 | 39974 | 10519 |  | 10519 |
|  KB-KTB Technology Venture Fund | 32214 | 280 | 33000 | 31934 | 8709 |  | 8709 |
|  KB-SOLIDUS Healthcare Investment Fund | 21483 | 345 | 22440 | 21138 | 6217 |  | 6217 |
|  KB New Deal Innovation Fund | 68245 | 2039 | 68000 | 66206 | 13241 |  | 13241 |
|  All Together Korea Fund No.2 | 10246 | 1 | 10001 | 10245 | 10244 |  | 10244 |
|  TMAPMOBILITY CO.,LTD. | 920597 | 174696 | 8677 | 745901 | 61518 | 132936 | 194454 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** | **2022 \*** |
| *(In millions of Korean won)* | **Operating<br>revenue** | **Net profit**<br>**(loss)** | **Other<br>comprehensive<br>income** | **Total<br>comprehensive<br>income (loss)** | **Dividends** |
|  Korea Credit Bureau Co., Ltd. | 144907 | 13809 |  | 13809 |  |
|  Incheon Bridge Co., Ltd. | 130456 | 23754 |  | 23754 |  |
|  KB SPROTT Renewable Private Equity Fund No.1 |  | (1020) |  | (1020) |  |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 294 | (134) |  | (134) |  |
|  KB Digital Platform Fund | 264 | (2663) |  | (2663) |  |
|  KB Prime Digital Platform Fund | 22 | (86) |  | (86) |  |
|  Future Planning KB Start-up Creation Fund | 4780 | 2436 |  | 2436 |  |
|  KB High-tech Company Investment Fund | 9149 | 2937 |  | 2937 | 1300 |
|  Aju Good Technology Venture Fund | 22381 | 6018 |  | 6018 | 1200 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 1699 | 1429 |  | 1429 |  |
|  KB-TS Technology Venture Private Equity Fund | 1043 | (2775) |  | (2775) |  |
|  KB Intellectual Property Fund No.2 | 6856 | 3645 |  | 3645 |  |
|  KB Digital Innovation Investment Fund Limited Partnership | 21176 | 1703 |  | 1703 |  |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 11851 | 1541 |  | 1541 |  |
|  KB Global Platform Fund | 25967 | (6293) |  | (6293) |  |
|  KB-UTC Inno-Tech Venture Fund |  | (905) | (1647) | (2552) |  |
|  WJ Private Equity Fund No.1 | 430 | (229) |  | (229) |  |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 7 | (4468) | 299 | (4169) |  |
|  KB Smart Scale Up Fund | 2506 | (11719) |  | (11719) |  |
|  KB Scale Up Fund II | 71 | (308) |  | (308) |  |
|  KB Bio Global Expansion Private Equity Fund No.1 | 2465 | 2057 |  | 2057 |  |
|  KB-KTB Technology Venture Fund | 134 | (973) |  | (973) |  |
|  KB-SOLIDUS Healthcare Investment Fund | 14 | (1302) |  | (1302) |  |
|  KB New Deal Innovation Fund | 327 | (1748) |  | (1748) |  |
|  All Together Korea Fund No.2 | 179 | 173 |  | 173 |  |
|  TMAPMOBILITY CO.,LTD. | 139793 | (132476) |  | (132476) |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** |
| *(In millions of Korean won)* | **Total<br>assets** | **Total<br>liabilities** | **Paid-in<br>capital** | **Equity** | **Share of net<br>asset<br>amount** | **Unrealized<br>gains (losses)<br>and others** | **Carrying<br>amount** |
|  Korea Credit Bureau Co., Ltd. | 128297 | 78328 | 10000 | 49969 | 4497 |  | 4497 |
|  Balhae Infrastructure Company | 853961 | 62336 | 840323 | 791625 | 99785 |  | 99785 |
|  Incheon Bridge Co., Ltd. | 560570 | 690530 | 61096 | (129960) | (19481) | 19481 |  |
|  KB SPROTT Renewable Private Equity Fund No.1 | 13886 | 1467 | 15376 | 12419 | 3726 |  | 3726 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 9107 |  | 10000 | 9107 | 4098 |  | 4098 |
|  KB Digital Platform Fund | 27000 | 2 | 27000 | 26998 | 12599 |  | 12599 |
|  Future Planning KB Start-up Creation Fund | 23058 | 2508 | 7800 | 20550 | 10275 |  | 10275 |
|  KB High-tech Company Investment Fund | 23722 | 2736 | 3000 | 20986 | 10493 |  | 10493 |
|  Aju Good Technology Venture Fund | 64303 | 4703 | 32100 | 59600 | 22926 | (5) | 22921 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 18069 | 385 | 13200 | 17684 | 5895 |  | 5895 |
|  KB-TS Technology Venture Private Equity Fund | 35280 | 5229 | 25500 | 30051 | 9015 |  | 9015 |
|  KB Intellectual Property Fund No.2 | 38307 | 1406 | 40000 | 36901 | 13838 | 750 | 14588 |
|  KB Digital Innovation Investment Fund Limited Partnership | 138678 | 667 | 136000 | 138011 | 35517 |  | 35517 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 69943 | 221 | 61100 | 69722 | 14834 |  | 14834 |
|  KB Global Platform Fund | 222749 | 2987 | 184800 | 219762 | 49946 |  | 49946 |
|  KB-UTC Inno-Tech Venture Fund | 47848 | 497 | 48260 | 47351 | 13982 |  | 13982 |
|  WJ Private Equity Fund No.1 | 35799 | 170 | 37100 | 35629 | 9604 |  | 9604 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 33499 |  | 35000 | 33499 | 9571 |  | 9571 |
|  KB Smart Scale Up Fund | 124924 | 55 | 124000 | 124869 | 31217 |  | 31217 |
|  KB Bio Global Expansion Private Equity Fund No.1 | 38031 | 115 | 38000 | 37916 | 9978 |  | 9978 |
|  KB-KTB Technology Venture Fund | 11008 | 101 | 11000 | 10907 | 2975 |  | 2975 |
|  KB-SOLIDUS Healthcare Investment Fund | 2040 |  | 2040 | 2040 | 600 |  | 600 |
|  KB New Deal Innovation Fund | 20006 | 52 | 20000 | 19954 | 3991 |  | 3991 |
|  All Together Korea Fund No.2 | 10072 | 1 | 10001 | 10071 | 10070 |  | 10070 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** | **2021 \*** |
| *(In millions of Korean won)* | **Operating<br>revenue** | **Net profit**<br>**(loss)** | **Other<br>comprehensive<br>income** | **Total<br>comprehensive<br>income (loss)** | **Dividends** |
|  Korea Credit Bureau Co., Ltd. | 128150 | (27327) |  | (27327) | 90 |
|  Balhae Infrastructure Company | 97833 | 19559 |  | 19559 | 9121 |
|  Incheon Bridge Co., Ltd. | 84068 | (16219) |  | (16219) |  |
|  KB SPROTT Renewable Private Equity Fund No.1 |  | (983) |  | (983) |  |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 3 | (174) |  | (174) |  |
|  KB Digital Platform Fund |  | (2) |  | (2) |  |
|  Future Planning KB Start-up Creation Fund | 1941 | 1502 |  | 1502 |  |
|  KB High-tech Company Investment Fund | 8372 | 3962 |  | 3962 | 8150 |
|  Aju Good Technology Venture Fund | 22486 | 15407 |  | 15407 |  |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 530 | 120 |  | 120 |  |
|  KB-TS Technology Venture Private Equity Fund | 2094 | (1151) |  | (1151) |  |
|  KB Intellectual Property Fund No.2 | 1102 | (1411) |  | (1411) |  |
|  KB Digital Innovation Investment Fund Limited Partnership | 19411 | 9786 |  | 9786 |  |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 14244 | 8495 |  | 8495 |  |
|  KB Global Platform Fund | 61830 | 48130 |  | 48130 |  |
|  KB-UTC Inno-Tech Venture Fund | 1080 | 32 |  | 32 |  |
|  WJ Private Equity Fund No.1 | 291 | (398) |  | (398) |  |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 716 | (808) | (667) | (1475) |  |
|  KB Smart Scale Up Fund | 4221 | 897 |  | 897 |  |
|  KB Bio Global Expansion Private Equity Fund No.1 | 91 | (84) |  | (84) |  |
|  KB-KTB Technology Venture Fund | 8 | (93) |  | (93) |  |
|  KB New Deal Innovation Fund | 6 | (46) |  | (46) |  |
|  All Together Korea Fund No.2 | 53 | 47 |  | 47 |  |

---

\* The condensed financial information of the associates is adjusted to reflect adjustments, such as fair value adjustments recognized at the time of acquisition and adjustments for differences in accounting policies.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and others** | **Dividends** | **Gains<br>(losses) on<br>equity-<br>method<br>accounting** | **Other<br>comprehen-<br>sive income<br>(loss)** | **Ending** |
|  Korea Credit Bureau Co., Ltd. | 4497 |  |  |  | 462 |  | 4959 |
|  Balhae Infrastructure Company | 99785 |  | (102554) | (12344) | 15113 |  |  |
|  Incheon Bridge Co., Ltd. |  |  |  |  |  |  |  |
|  KB SPROTT Renewable Private Equity Fund No.1 | 3726 | 9748 |  |  | (309) |  | 13165 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 4098 |  |  |  | (60) |  | 4038 |
|  KB Digital Platform Fund | 12599 | 14000 |  |  | (1242) |  | 25357 |
|  KB Prime Digital Platform Fund |  | 2600 |  |  | (37) |  | 2563 |
|  Future Planning KB Start-up Creation Fund | 10275 |  | (1700) |  | 1218 |  | 9793 |
|  KB High-tech Company Investment Fund | 10493 |  |  | (1300) | 1469 |  | 10662 |
|  Aju Good Technology Venture Fund | 22921 |  | (4200) | (1200) | 2315 |  | 19836 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 5895 |  | (2600) |  | (306) |  | 2989 |
|  KB-TS Technology Venture Private Equity Fund | 9015 |  | (2430) |  | 805 |  | 7390 |
|  KB Intellectual Property Fund No.2 | 14588 |  |  |  | 616 |  | 15204 |
|  KB Digital Innovation Investment Fund Limited Partnership | 35517 |  |  |  | (517) |  | 35000 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 14834 |  | (6400) |  | 467 |  | 8901 |
|  KB Global Platform Fund | 49946 | 8000 | (6150) |  | (1430) |  | 50366 |
|  KB-UTC Inno-Tech Venture Fund | 13982 |  |  |  | (710) | (486) | 12786 |
|  WJ Private Equity Fund No.1 | 9604 |  |  |  | (62) |  | 9542 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 9571 |  |  |  | (1276) | 85 | 8380 |
|  KB Smart Scale Up Fund | 31217 | 12000 |  |  | (2929) |  | 40288 |
|  KB Scale Up Fund II |  | 4500 |  |  | (62) |  | 4438 |
|  KB Bio Global Expansion Private Equity Fund No.1 | 9978 |  |  |  | 541 |  | 10519 |
|  KB-KTB Technology Venture Fund | 2975 | 6000 |  |  | (266) |  | 8709 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and<br>others** | **Dividends** | **Gains<br>(losses) on<br>equity-<br>method<br>accounting** | **Other<br>comprehen-<br>sive**<br>**income<br>(loss)** | **Ending** |
|  KB-SOLIDUS Healthcare Investment Fund | 600 | 6000 |  |  | (383) |  | 6217 |
|  KB New Deal Innovation Fund | 3991 | 9600 |  |  | (350) |  | 13241 |
|  All Together Korea Fund No.2 | 10070 |  |  |  | 174 |  | 10244 |
|  Shinla Construction Co., Ltd. |  |  |  |  |  |  |  |
|  Terra Corporation |  |  |  |  |  |  |  |
|  MJT&I Corp. |  |  |  |  |  |  |  |
|  Jungdong Steel Co., Ltd. |  |  |  |  |  |  |  |
|  DSMETAL Co., Ltd. |  |  |  |  |  |  |  |
|  Shinhwa Underwear Co., Ltd. | 198 |  |  |  | (31) |  | 167 |
|  Jaeyang Industry Co., Ltd. |  |  |  |  |  |  |  |
|  Kendae Co., Ltd. | 98 |  |  |  |  |  | 98 |
|  Jinseung Tech Co., Ltd. |  |  |  |  |  |  |  |
|  Dongjo Co., Ltd. | 21 |  |  |  | (21) |  |  |
|  Korea NM Tech Co., Ltd. |  |  |  |  |  |  |  |
|  Jungdo Co., Ltd. |  |  |  |  |  |  |  |
|  Dae-A Leisure Co., Ltd. |  |  |  |  |  |  |  |
|  Chongil Machine & Tools Co., Ltd. |  |  |  |  |  |  |  |
|  Imt Technology Co., Ltd. | 6 |  |  |  | 9 |  | 15 |
|  Iwon Alloy Co., Ltd. |  |  |  |  |  |  |  |
|  Carlife Co., Ltd. | 13 |  | (13) |  |  |  |  |
|  Computerlife Co., Ltd. | 44 |  |  |  | 6 |  | 50 |
|  Skydigital Inc. |  |  |  |  |  |  |  |
|  Jo Yang Industrial Co., Ltd. |  |  |  |  |  |  |  |
|  Il-Kwang Electronic Materials Co., Ltd. |  |  |  |  |  |  |  |
|  So-Myung Recycling Co., Ltd. | 31 |  |  |  | 30 |  | 61 |
|  IDTECK Co., Ltd. |  |  |  |  | 65 | 99 | 164 |
|  PIP System Co., Ltd. |  |  |  |  |  |  |  |
|  Gwang Myung Paper Co., Ltd. |  |  |  |  |  |  |  |
|  D-Partner | 369 |  |  |  | 15 |  | 384 |
|  Inter Shipping Co., Ltd. |  |  |  |  |  |  |  |
|  Chunsung-meat Co., Ltd. |  |  |  |  |  |  |  |
|  DS Fashionbiz Co., Ltd. |  |  |  |  | 1 |  | 1 |
|  ALTSCS CO., LTD. |  |  |  |  |  |  |  |
|  E-Won Chemical Co., Ltd. |  |  |  |  |  |  |  |
|  TMAPMOBILITY CO.,LTD. |  | 200000 |  |  | (5798) | 252 | 194454 |
|  TKDS CO., LTD |  |  |  |  |  |  |  |
|  SANDLE FARMING ASSOCIATION |  |  |  |  |  |  |  |
|  | 390957 | 272448 | (126047) | (14844) | 7517 | (50) | 529981 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and others** | **Dividends** | **Gains<br>(losses) on<br>equity-<br>method<br>accounting** | **Other<br>comprehen-<br>sive income<br>(loss)** | **Ending** |
|  Korea Credit Bureau Co., Ltd. | 7153 |  |  | (90) | (2566) |  | 4497 |
|  Balhae Infrastructure Company | 106625 | 279 | (463) | (9121) | 2465 |  | 99785 |
|  KB GwS Private Securities Investment Trust | 111772 |  | (111772) |  |  |  |  |
|  Incheon Bridge Co., Ltd. |  |  |  |  |  |  |  |
|  KB SPROTT Renewable Private Equity Fund No.1 | 4020 |  |  |  | (294) |  | 3726 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | 3051 | 1125 |  |  | (78) |  | 4098 |
|  KB Digital Platform Fund |  | 12600 |  |  | (1) |  | 12599 |
|  Future Planning KB Start-up Creation Fund | 12324 |  | (2800) |  | 751 |  | 10275 |
|  KoFC POSCO Hanwha KB Shared Growth Private Equity Fund No.2 | 7876 |  | (7780) | (1696) | 1600 |  |  |
|  KB High-tech Company Investment Fund | 19962 |  | (3300) | (8150) | 1981 |  | 10493 |
|  Aju Good Technology Venture Fund | 21348 |  | (4769) |  | 6342 |  | 22921 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | 8021 |  | (2400) |  | 274 |  | 5895 |
|  KB-TS Technology Venture Private Equity Fund | 9445 | 1650 | (2880) |  | 800 |  | 9015 |
|  KB Intellectual Property Fund No.2 | 15000 |  |  |  | (412) |  | 14588 |
|  KB Digital Innovation Investment Fund Limited Partnership | 34749 |  |  |  | 768 |  | 35517 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 13756 | 5000 | (5400) |  | 1478 |  | 14834 |
|  KB Global Platform Fund | 28007 | 13500 |  |  | 8439 |  | 49946 |
|  KB-UTC Inno-Tech Venture Fund | 11332 | 3390 | (750) |  | 10 |  | 13982 |
|  WJ Private Equity Fund No.1 | 9711 |  |  |  | (107) |  | 9604 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 2493 | 7500 |  |  | (231) | (191) | 9571 |
|  KB Smart Scale Up Fund | 3993 | 27000 |  |  | 224 |  | 31217 |
|  KB Bio Global Expansion Private Equity Fund No.1 |  | 10000 |  |  | (22) |  | 9978 |
|  KB-KTB Technology Venture Fund |  | 3000 |  |  | (25) |  | 2975 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and<br>others** | **Dividends** | **Gains<br>(losses) on<br>equity-<br>method<br>accounting** | **Other<br>comprehen-<br>sive income<br>(loss)** | **Ending** |
|  KB-SOLIDUS Healthcare Investment Fund |  | 600 |  |  |  |  | 600 |
|  KB New Deal Innovation Fund |  | 4000 |  |  | (9) |  | 3991 |
|  All Together Korea Fund No.2 | 10023 |  |  |  | 47 |  | 10070 |
|  Shinla Construction Co., Ltd. |  |  |  |  |  |  |  |
|  Terra Corporation |  |  |  |  |  |  |  |
|  MJT&I Corp. | 113 |  |  |  | (113) |  |  |
|  Jungdong Steel Co., Ltd. |  |  |  |  |  |  |  |
|  DSMETAL Co., Ltd. |  |  |  |  |  |  |  |
|  Shinhwa Underwear Co., Ltd. | 222 |  |  |  | (24) |  | 198 |
|  DPAPS Co., Ltd. |  |  |  |  |  |  |  |
|  Jaeyang Industry Co., Ltd. |  |  |  |  |  |  |  |
|  Kendae Co., Ltd. | 98 |  |  |  |  |  | 98 |
|  Jinseung Tech Co., Ltd. |  |  |  |  |  |  |  |
|  Dongjo Co., Ltd. | 18 |  |  |  | 3 |  | 21 |
|  Korea NM Tech Co., Ltd. |  |  |  |  |  |  |  |
|  Jungdo Co., Ltd. |  |  |  |  |  |  |  |
|  Dae-A Leisure Co., Ltd. | 149 |  |  |  | (149) |  |  |
|  Chongil Machine & Tools Co., Ltd. |  |  |  |  |  |  |  |
|  Imt Technology Co., Ltd. |  |  |  |  | 6 |  | 6 |
|  Iwon Alloy Co., Ltd. |  |  |  |  |  |  |  |
|  Carlife Co., Ltd. | 11 |  |  |  | 2 |  | 13 |
|  Computerlife Co., Ltd. | 48 |  |  |  | (4) |  | 44 |
|  Skydigital Inc. |  |  |  |  |  |  |  |
|  Jo Yang Industrial Co., Ltd. |  |  |  |  |  |  |  |
|  Il-Kwang Electronic Materials Co., Ltd. |  |  |  |  |  |  |  |
|  So-Myung Recycling Co., Ltd. | 5 |  |  |  | 26 |  | 31 |
|  IDTECK Co., Ltd. |  |  |  |  |  |  |  |
|  PIP System Co., Ltd. |  |  |  |  |  |  |  |
|  Neomio Corp. |  |  |  |  |  |  |  |
|  Gwang Myung Paper Co., Ltd. |  |  |  |  |  |  |  |
|  D-Partner |  |  |  |  | (49) | 418 | 369 |
|  Inter Shipping Co., Ltd. |  |  |  |  |  |  |  |
|  Chunsung-meat Co., Ltd. |  |  |  |  |  |  |  |
|  DS Fashionbiz Co., Ltd. |  |  |  |  |  |  |  |
|  | 441325 | 89644 | (142314) | (19057) | 21132 | 227 | 390957 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

13.4 Unrecognized share of losses of investments in associates and joint ventures due to the discontinuation of recognizing share of losses, for the years ended December 31, 2022 and 2021, and accumulated amount of unrecognized losses as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unrecognized losses**<br>**for the period** | **Unrecognized losses**<br>**for the period** | **Accumulated**<br>**unrecognized losses** | **Accumulated**<br>**unrecognized losses** |
| *(In millions of Korean won)* | **2022** | **2021** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Incheon Bridge Co., Ltd. | (3518) | 1381 | 15963 | 19481 |
|  Shinla Construction Co., Ltd. |  |  | 183 | 183 |
|  Terra Corporation |  |  | 14 | 14 |
|  MJT&I Corp. | 1 | 152 | 153 | 152 |
|  Jungdong Steel Co., Ltd. |  |  | 487 | 487 |
|  DSMETAL Co., Ltd. |  | 38 | 103 | 103 |
|  Jaeyang Industry Co., Ltd. |  |  | 30 | 30 |
|  Jinseung Tech Co., Ltd. | (15) | 12 | 18 | 33 |
|  Dongjo Co., Ltd. | 696 |  | 696 |  |
|  Korea NM Tech Co., Ltd. | 3 | (1) | 31 | 28 |
|  Jungdo Co., Ltd. | (8) | 237 | 539 | 547 |
|  Dae-A Leisure Co., Ltd. | 310 | 202 | 512 | 202 |
|  Chongil Machine & Tools Co., Ltd. | 7 | 45 | 71 | 64 |
|  Imt Technology Co., Ltd. |  | (3) |  |  |
|  Iwon Alloy Co., Ltd. | 19 |  | 19 |  |
|  Skydigital Inc. | 3 | 68 | 176 | 173 |
|  Jo Yang Industrial Co., Ltd. | 7 | 8 | 111 | 104 |
|  Il-Kwang Electronic Materials Co., Ltd. | (2) | 160 | 158 | 160 |
|  IDTECK Co., Ltd. | (144) | (72) |  | 144 |
|  Inter Shipping Co., Ltd. | 1022 | 117 | 1139 | 117 |
|  Chunsung-meat co., ltd. | 24 |  | 24 |  |
|  ALTSCS CO., LTD. | 1 |  | 1 |  |
|  | (1594) | 2344 | 20428 | 22022 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**14. Property and Equipment, and Investment Properties** 

14.1 Property and Equipment

14.1.1 Details of property and equipment as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Accumulated<br>depreciation** | **Accumulated<br>impairment<br>losses** | **Carrying**<br>**amount** |
|  Land | 2017250 |  | (4) | 2017246 |
|  Buildings | 1811998 | (585729) | (5747) | 1220522 |
|  Leasehold improvements | 905404 | (852017) |  | 53387 |
|  Equipment and vehicles | 1318278 | (1164583) |  | 153695 |
|  Construction in-progress | 5829 |  |  | 5829 |
|  Right-of-use assets | 1084579 | (697747) |  | 386832 |
|  | 7143338 | (3300076) | (5751) | 3837511 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Accumulated<br>depreciation** | **Accumulated<br>impairment losses** | **Carrying**<br>**amount** |
|  Land | 2063213 |  | (4) | 2063209 |
|  Buildings | 1784823 | (559430) | (5747) | 1219646 |
|  Leasehold improvements | 869957 | (806283) |  | 63674 |
|  Equipment and vehicles | 1396243 | (1228189) |  | 168054 |
|  Construction in-progress | 28226 |  |  | 28226 |
|  Right-of-use assets | 957169 | (566035) |  | 391134 |
|  | 7099631 | (3159937) | (5751) | 3933943 |

---

14.1.2 Changes in property and equipment for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition** | **Transfer <sup>2</sup>** | **Disposal** | **Depreciation** | **Others** | **Ending** |
|  Land | 2063209 | 676 | (32963) | (6083) |  | (7593) | 2017246 |
|  Buildings | 1219646 | 2143 | 49756 | (3818) | (47169) | (36) | 1220522 |
|  Leasehold Improvements | 63674 | 2237 | 33738 | (114) | (46425) | 277 | 53387 |
|  Equipment and vehicles | 168054 | 89512 | 528 | (1794) | (102763) | 158 | 153695 |
|  Construction in-progress | 28226 | 94259 | (116205) | (397) |  | (54) | 5829 |
|  Right-of-use assets <sup>1</sup> | 391134 | 555071 | 255 | (390474) | (209247) | 40093 | 386832 |
|  | 3933943 | 743898 | (64891) | (402680) | (405604) | 32845 | 3837511 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

14.1.2 Changes in property and equipment for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition** | **Transfer <sup>2</sup>** | **Disposal** | **Depreciation** | **Others** | **Ending** |
|  Land | 2081872 | 1106 | (42175) | (731) |  | 23137 | 2063209 |
|  Buildings | 1249542 | 1237 | 12248 | (3869) | (45465) | 5953 | 1219646 |
|  Leasehold Improvements | 69214 | 1841 | 39453 | (736) | (46774) | 676 | 63674 |
|  Equipment and vehicles | 190842 | 87034 | 2743 | (981) | (114625) | 3041 | 168054 |
|  Construction in-progress | 34275 | 107463 | (92288) | (8435) |  | (12789) | 28226 |
|  Right-of-use assets <sup>1</sup> | 416149 | 489810 |  | (306818) | (214738) | 6731 | 391134 |
|  | 4041894 | 688491 | (80019) | (321570) | (421602) | 26749 | 3933943 |

---

<sup>1</sup> Effect of change in the lease term is reflected in acquisition and disposal based on gross amount. 

<sup>2</sup> Includes transfers with investment properties and assets held for sale.

14.1.3 Changes in accumulated impairment losses of property and equipment for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of property and equipment | (5751) |  |  |  | (5751) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of property and equipment | (6877) |  |  | 1126 | (5751) |

---

14.2 Investment Properties

14.2.1 Details of investment properties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Accumulated**<br>**depreciation** | **Carrying**<br>**amount** |
|  Land | 230597 |  | 230597 |
|  Buildings | 132879 | (18320) | 114559 |
|  | 363476 | (18320) | 345156 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Accumulated**<br>**depreciation** | **Carrying**<br>**amount** |
|  Land | 222648 |  | 222648 |
|  Buildings | 112377 | (9960) | 102417 |
|  | 335025 | (9960) | 325065 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

14.2.2 Valuation techniques and inputs used to measure the fair value of investment properties as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value** | **Valuation techniques** | **Inputs** |
|  Land and buildings | 194157 | Cost approach method | - Price per square meter<br> - Replacement cost |
|  | 233850 | Income approach method | - Discount rate<br> - Capitalization rate<br> - Vacancy rate |

---

Fair value of investment properties amounts to W 428,007 million and W 383,249 million as of December 31, 2022 and 2021, respectively. Investment properties are measured by qualified independent appraisers with recent experience in valuing similar properties in the same area. In addition, all investment properties are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

Rental income from above investment properties amounts to W 5,441 million and W 4,477 million for the years ended December 31, 2022 and 2021, respectively.

14.2.3 Changes in investment properties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition** | **Transfer** | **Disposal** | **Depreciation** | **Ending** |
|  Land | 222648 |  | 7949 |  |  | 230597 |
|  Buildings | 102417 |  | 13800 |  | (1658) | 114559 |
|  | 325065 |  | 21749 |  | (1658) | 345156 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition** | **Transfer** | **Disposal** | **Depreciation** | **Ending** |
|  Land | 218157 |  | 4491 |  |  | 222648 |
|  Buildings | 99944 |  | 3664 |  | (1191) | 102417 |
|  | 318101 |  | 8155 |  | (1191) | 325065 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**15. Intangible Assets** 

15.1 Details of intangible assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>impairment<br>losses** | **Others** | **Carrying**<br>**amount** |
|  Goodwill | 552652 |  | (1202) | 12789 | 564239 |
|  Other intangible assets | 1732425 | (1226990) | (14978) |  | 490457 |
|  | 2285077 | (1226990) | (16180) | 12789 | 1054696 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>impairment<br>losses** | **Others** | **Carrying**<br>**amount** |
|  Goodwill | 552652 |  | (1202) | (11745) | 539705 |
|  Other intangible assets | 1579448 | (1075514) | (15145) |  | 488789 |
|  | 2132100 | (1075514) | (16347) | (11745) | 1028494 |

---

15.2 Details of goodwill as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Carrying<br>amount \*** | **Acquisition**<br>**cost** | **Carrying<br>amount \*** |
|  PT Bank KB Bukopin Tbk | 89220 | 83619 | 89220 | 85893 |
|  PRASAC Microfinance Institution Plc. | 396942 | 415332 | 396942 | 388524 |
|  Housing & Commercial Bank | 65288 | 65288 | 65288 | 65288 |
|  Kookmin Bank Cambodia Plc. | 1202 |  | 1202 |  |
|  | 552652 | 564239 | 552652 | 539705 |

---

\* Includes the effect of exchange differences.

15.3 Changes in accumulated impairment losses of goodwill for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Impairment** | **Others** | **Ending** |
|  Accumulated impairment losses of goodwill | (1202) |  |  | (1202) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Impairment** | **Others** | **Ending** |
|  Accumulated impairment losses of goodwill | (1202) |  |  | (1202) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

15.4 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2022 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Retail**<br>**banking** | **Corporate**<br>**banking** | **PT Bank KB<br>Bukopin Tbk** | **PRASAC<br>Microfinance<br>Institution Plc.** | **Total** |
|  Carrying amounts \* | 49315 | 15973 | 83619 | 470227 | 619134 |
|  Recoverable amount exceeding carrying amount | 5778171 | 2905282 | 582823 | 122207 | 9388483 |
|  Discount rate (%) | 16.60 | 17.01 | 20.16 | 30.40 |  |
|  Permanent growth rate (%) | 1.00 | 1.00 | 3.00 | 3.00 |  |

---

\* The carrying amount of goodwill at the time of the impairment test 

For impairment testing, goodwill is allocated to cash-generating units that are expected to benefit from the synergies of the business combination, and cash-generating units consist of an operating segment or units which are not larger than an operating segment. The Group recognized goodwill amounting to \ 65,288 million arising from the merger of Housing & Commercial Bank, the amounts of \ 49,315 million and \ 15,973 million were allocated to the retail banking and corporate banking, respectively. The Group acquired a 70% stake in PRASAC Microfinance Institution Plc. with the acquisition date of April 10, 2020, and the goodwill recognized due to the business combination is \ 415,332 million as of December 31, 2022. The Group acquired a 67% stake in PT Bank KB Bukopin Tbk with the acquisition date of September 2, 2020, and the goodwill recognized due to the business combination is \ 83,619 million as of December 31, 2022. Cash-generating units to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired, by comparing the carrying amount of the unit including the goodwill with the recoverable amount of the unit. The valuation dates of the recoverable amounts of the PRASAC Microfinance PLC. and PT Bank KB Bukopin TBK are September 30, 2022 and December 31, 2022, respectively.

The recoverable amount of a cash-generating unit is measured at the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal is the amount obtainable from the disposal in an arm's length transaction between knowledgeable, willing parties, after deducting the costs of disposal. If it is difficult to measure the amount obtainable from the disposal of the cash-generating unit, the disposal amount of a similar cash-generating unit in the past transaction is used by reflecting the characteristics of the cash-generating unit to be measured. If it is not possible to obtain reliable information to measure the fair value less costs of disposal, the Group uses the asset's value in use as its recoverable amount. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The estimated future cash flows are based on the most recent financial budget approved by management with maximum period of 5 years. The future cash flows of retail banking and corporate banking after the projection period are estimated on the assumption that the future cash flows will increase by 1.0% per year. The key assumptions used for the estimation of the future cash flows are based on the market size and the Group's market share.

The future cash flows of PRASAC Microfinance Institution Plc. after five years are estimated on the assumption that the future cash flows will increase by 3.0% per year. The future cash flows of PT Bank KB Bukopin Tbk after four years are estimated on the assumption that the future cash flows will increase by 3.0% per year. The key assumptions used for the estimation of the future cash flows are the GDP growth rate and the market size of Cambodia and Indonesia, and the recent growth rate of PRASAC Microfinance Institution Plc. and PT Bank KB Bukopin Tbk. The discount rate is a pre-tax rate that reflects assumptions regarding risk-free interest rate, market risk premium, and the risks specific to the cash-generating unit.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

15.5 Details of intangible assets other than goodwill as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Accumulated**<br>**amortization** | **Accumulated**<br>**impairment<br>losses** | **Carrying**<br>**amount** |
|  Industrial property rights | 2406 | (2106) |  | 300 |
|  Software | 1416325 | (1052909) |  | 363416 |
|  Other intangible assets | 278567 | (139450) | (14978) | 124139 |
|  Right-of-use assets | 35127 | (32525) |  | 2602 |
|  | 1732425 | (1226990) | (14978) | 490457 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition**<br>**cost** | **Accumulated**<br>**amortization** | **Accumulated**<br>**impairment<br>losses** | **Carrying**<br>**amount** |
|  Industrial property rights | 2187 | (1963) |  | 224 |
|  Software | 1247629 | (916777) |  | 330852 |
|  Other intangible assets | 294505 | (125257) | (15145) | 154103 |
|  Right-of-use assets | 35127 | (31517) |  | 3610 |
|  | 1579448 | (1075514) | (15145) | 488789 |

---

15.6 Changes in intangible assets other than goodwill for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition** | **Transfer** | **Disposal** | **Amortization** | **Others** | **Ending** |
|  Industrial property rights | 224 | 193 |  | (1) | (117) | 1 | 300 |
|  Software | 330852 | 170141 | 818 |  | (138741) | 346 | 363416 |
|  Other intangible assets | 154103 | 2799 |  | (245) | (31822) | (696) | 124139 |
|  Right-of-use assets | 3610 |  |  |  | (1007) | (1) | 2602 |
|  | 488789 | 173133 | 818 | (246) | (171687) | (350) | 490457 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Acquisition** | **Disposal** | **Amortization** | **Others** | **Ending** |
|  Industrial property rights | 234 | 107 |  | (117) |  | 224 |
|  Software | 313426 | 129684 |  | (114225) | 1967 | 330852 |
|  Other intangible assets | 142517 | 50524 | (1834) | (38236) | 1132 | 154103 |
|  Right-of-use assets | 4617 |  |  | (1007) |  | 3610 |
|  | 460794 | 180315 | (1834) | (153585) | 3099 | 488789 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

15.7 Changes in accumulated impairment losses of other intangible assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of other intangible assets | (15145) |  |  | 167 | (14978) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of other intangible assets | (10215) | (4971) |  | 41 | (15145) |

---

**16. Deferred Income Tax Assets and Liabilities** 

16.1 Details of deferred income tax assets and liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Assets** | **Liabilities** | **Net<br>amount** |
|  Other provisions | 86237 |  | 86237 |
|  Impairment losses of property and equipment | 5155 |  | 5155 |
|  Share-based payments | 13112 |  | 13112 |
|  Provisions for acceptances and guarantees | 39787 |  | 39787 |
|  Gains or losses on valuation of derivatives |  | (147750) | (147750) |
|  Present value discount | 95 |  | 95 |
|  Gains or losses on fair value hedge |  | (93833) | (93833) |
|  Accrued interest |  | (72868) | (72868) |
|  Deferred loan origination fees and costs | 10377 | (115553) | (105176) |
|  Gains or losses on revaluation |  | (261502) | (261502) |
|  Investments in subsidiaries and others | 37802 | (179329) | (141527) |
|  Gains or losses on valuation of security investment | 245988 |  | 245988 |
|  Defined benefit liabilities | 380726 |  | 380726 |
|  Accrued expenses | 172345 |  | 172345 |
|  Retirement insurance expense |  | (459323) | (459323) |
|  Adjustments to the prepaid contributions |  | (27986) | (27986) |
|  Others | 637476 | (243543) | 393933 |
|  | 1629100 | (1601687) | 27413 |
|  Offsetting of deferred income tax assets and liabilities | (1447843) | 1447843 |  |
|  | 181257 | (153844) | 27413 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

16.1 Details of deferred income tax assets and liabilities as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Assets** | **Liabilities** | **Net<br>amount** |
|  Other provisions | 77907 |  | 77907 |
|  Impairment losses of property and equipment | 7446 |  | 7446 |
|  Share-based payments | 15687 |  | 15687 |
|  Provisions for acceptances and guarantees | 33091 |  | 33091 |
|  Gains or losses on valuation of derivatives |  | (74111) | (74111) |
|  Present value discount |  | (142) | (142) |
|  Gains or losses on fair value hedge |  | (14642) | (14642) |
|  Accrued interest |  | (42882) | (42882) |
|  Deferred loan origination fees and costs | 8596 | (138398) | (129802) |
|  Gains or losses on revaluation |  | (277471) | (277471) |
|  Investments in subsidiaries and others | 32602 | (138609) | (106007) |
|  Gains or losses on valuation of security investment |  | (501409) | (501409) |
|  Defined benefit liabilities | 472722 |  | 472722 |
|  Accrued expenses | 148726 |  | 148726 |
|  Retirement insurance expense |  | (441633) | (441633) |
|  Adjustments to the prepaid contributions |  | (29273) | (29273) |
|  Others | 434703 | (124602) | 310101 |
|  | 1231480 | (1783172) | (551692) |
|  Offsetting of deferred income tax assets and liabilities | (1081611) | 1081611 |  |
|  | 149869 | (701561) | (551692) |

---

16.2 Unrecognized Deferred Income Tax Assets

16.2.1 No deferred income tax assets have been recognized for the deductible temporary differences of W 1,099,572 million and W 327,040 million associated with investments in subsidiaries and others as of December 31, 2022 and 2021, because it is not probable that these temporary differences will reverse in the foreseeable future.

16.2.2 No deferred income tax assets have been recognized for the deductible temporary differences of W 34,908 million and W 39,821 million associated with others as of December 31, 2022 and 2021 due to the uncertainty that these temporary differences will be realized in the future.

16.3 Unrecognized Deferred Income Tax Liabilities

16.3.1 No deferred income tax liabilities have been recognized for the taxable temporary differences of W 443,216 million and W 313,586 million associated with investments in subsidiaries and others as of December 31, 2022 and 2021, due to the following reasons:

• The Group is able to control the timing of the reversal of the temporary differences.

• It is probable that these temporary differences will not reverse in the foreseeable future.

16.3.2 No deferred income tax liabilities have been recognized as of December 31, 2022 and 2021 for the taxable temporary differences of W 65,288 million related to the initial recognition of goodwill arising from the merger of Housing and Commercial Bank in 2001.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

16.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Decrease** | **Increase** | **Ending** |
|  **Deductible temporary differences** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions | 283299 | 276213 | 318336 | 325422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment | 27076 | 19880 | 12257 | 19453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs | 31256 | 12726 | 20630 | 39160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | 57042 | 57042 | 49479 | 49479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for acceptances and guarantees | 120332 | 120332 | 150140 | 150140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount |  |  | 358 | 358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 445595 | 30441 | 827068 | 1242222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment |  |  | 928258 | 928258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities | 1718990 | 292478 | 10188 | 1436700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 540823 | 540823 | 650357 | 650357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1250634 | 544021 | 1113913 | 1820526 |
|  | 4475047 | 1893956 | 4080984 | 6662075 |
|  **Unrecognized deferred income tax assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 327040 |  |  | 1099572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 39821 |  |  | 34908 |
|  | 4108186 |  |  | 5527595 |
|  Tax rate (%) | 27.50 |  |  | 26.50 |
|  | 1129751 |  |  | 1464813 |
|  Tax loss carryforwards and tax credit | 101729 |  | 62558 | 164287 |
|  **Total deferred income tax assets** | 1231480 |  |  | 1629100 |
|  **Taxable temporary differences** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge | (53243) | (53243) | (354085) | (354085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest | (155936) | (119589) | (238628) | (274975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs | (503266) | (503266) | (436047) | (436047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives | (269493) | (269493) | (558566) | (558566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount | (517) | (517) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on revaluation | (1008984) | (22184) |  | (986800) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | (817618) |  | (302312) | (1119930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment | (1823307) | (1823307) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement insurance expense | (1605940) | (237587) | (364944) | (1733297) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to the prepaid contributions | (106446) | (106446) | (105608) | (105608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (453098) | (329376) | (794289) | (918011) |
|  | (6863136) | (3465008) | (3154479) | (6552607) |
|  **Unrecognized deferred income tax liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | (313586) |  |  | (443216) |
|  | (6484262) |  |  | (6044103) |
|  Tax rate (%) | 27.50 |  |  | 26.50 |
|  **Total deferred income tax liabilities** | (1783172) |  |  | (1601687) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

16.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Decrease** | **Increase** | **Ending** |
|  **Deductible temporary differences** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge | 76583 | 76583 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions | 284825 | 283770 | 282244 | 283299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment | 8148 | 4362 | 23290 | 27076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs | 24270 | 11722 | 18708 | 31256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | 42361 | 42361 | 57042 | 57042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for acceptances and guarantees | 61984 | 61984 | 120332 | 120332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 308534 | 180735 | 317796 | 445595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities | 1618597 | 182536 | 282929 | 1718990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 765387 | 765387 | 540823 | 540823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1201141 | 509685 | 559178 | 1250634 |
|  | 4391830 | 2119125 | 2202342 | 4475047 |
|  **Unrecognized deferred income tax assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 188609 |  |  | 327040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 23826 |  |  | 39821 |
|  | 4179395 |  |  | 4108186 |
|  Tax rate (%) | 27.50 |  |  | 27.50 |
|  | 1149334 |  |  | 1129751 |
|  Tax loss carryforwards and tax credit | 20537 |  | 81192 | 101729 |
|  **Total deferred income tax assets** | 1169871 |  |  | 1231480 |
|  **Taxable temporary differences** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge |  |  | (53243) | (53243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest | (127345) | (111820) | (140411) | (155936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs | (510055) | (510055) | (503266) | (503266) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives | (335740) | (335740) | (269493) | (269493) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount | (49) | (49) | (517) | (517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on revaluation | (1008984) |  |  | (1008984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | (595065) | (116061) | (338614) | (817618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment | (967057) | (967057) | (1823307) | (1823307) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement insurance expense | (1462643) | (178936) | (322233) | (1605940) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to the prepaid contributions | (102768) | (102768) | (106446) | (106446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (415278) | (340613) | (378433) | (453098) |
|  | (5590272) | (2663099) | (3935963) | (6863136) |
|  **Unrecognized deferred income tax liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | (221773) |  |  | (313586) |
|  | (5303211) |  |  | (6484262) |
|  Tax rate (%) | 27.50 |  |  | 27.50 |
|  **Total deferred income tax liabilities** | (1458382) |  |  | (1783172) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**17. Assets Held for Sale** 

17.1 Details of assets held for sale as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Acquisition cost \*** | **Accumulated<br>impairment<br>losses** | **Carrying**<br>**amount** | **Fair value less<br>costs to sell** |
|  Land held for sale | 106348 | (20394) | 85954 | 104990 |
|  Buildings held for sale | 162974 | (38870) | 124104 | 137706 |
|  Other assets held for sale | 4546 | (2847) | 1699 | 1699 |
|  | 273868 | (62111) | 211757 | 244395 |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Acquisition cost \*** | **Accumulated<br>impairment<br>losses** | **Carrying**<br>**amount** | **Fair value less<br>costs to sell** |
|  Land held for sale | 115099 | (16528) | 98571 | 135192 |
|  Buildings held for sale | 170892 | (36923) | 133969 | 149569 |
|  Other assets held for sale | 10142 | (5364) | 4778 | 4778 |
|  | 296133 | (58815) | 237318 | 289539 |

---

\* Acquisition cost of buildings held for sale is net of accumulated depreciation amount immediately before the initial classification of the assets as held for sale. 

17.2 Valuation techniques and inputs used to measure the fair value of assets held for sale as of December 31, 2022 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value** | **Valuation**<br> **techniques <sup>1</sup>** | **Unobservable**<br> **inputs <sup>2</sup>** | **Estimated range<br>of unobservable<br>inputs (%)** | **Effect of**<br> **unobservable**<br> **inputs to fair**<br> **value** |
|  Land and buildings | 244395 | Market comparison approach model and others | Adjustment index | 0.32 ~ 2.21 | Fair value increases as the adjustment index rises |

---

<sup>1</sup> The appraisal value is adjusted by the adjustment ratio in the event the public sale is unsuccessful.

<sup>2</sup> Adjustment index is calculated using the time factor correction or individual factors.

Among assets held for sale, real estate was measured by independent appraisers with professional qualifications and recent experience in evaluating similar properties in the area of the property to be assessed. All assets held for sale are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

17.3 Changes in accumulated impairment losses of assets held for sale for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Provision** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of assets held for sale | (58815) | (5752) | 6507 | (4051) | (62111) |
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Provision** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of assets held for sale | (46115) | (15490) |  | 2790 | (58815) |

---

17.4 As of December 31, 2022, assets held for sale consist of 11 real estates of closed offices and 1 real estate of Orient Kwang-yang Co., Ltd., 438 foreclosure assets on loans of PT Bank KB Bukopin Tbk, which were determined to sell by management, but not yet sold as of December 31, 2022. The remaining 450 assets are also being actively marketed.

**18. Other Assets** 

18.1 Details of other assets as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Other financial assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | 3516361 | 2451049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income | 1510141 | 950095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee deposits | 822060 | 872225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement debits | 861741 | 989551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 34249 | 32009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses | (33461) | (16305) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount | (1464) | (1397) |
|  | 6709627 | 5277227 |
|  **Other non-financial assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | 307 | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 260584 | 195109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee deposits | 2483 | 2703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments | 21456 | 28856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 94934 | 87729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses | (10966) | (8587) |
|  | 368798 | 306120 |
|  | 7078425 | 5583347 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

18.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Other**<br>**financial assets** | **Other non-**<br>**financial assets** | **Total** |
|  Beginning | 16305 | 8587 | 24892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) | 3647 | 2203 | 5850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs | (4502) | (70) | (4572) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 18011 | 246 | 18257 |
|  Ending | 33461 | 10966 | 44427 |
|  | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Other**<br>**financial assets** | **Other non-**<br>**financial assets** | **Total** |
|  Beginning | 18476 | 9865 | 28341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) | 1663 | (379) | 1284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs | (5213) | (2762) | (7975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1379 | 1863 | 3242 |
|  Ending | 16305 | 8587 | 24892 |

---

**19. Deposits** 

Details of deposits as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Demand deposits** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits in Korean won | 147976208 | 174210942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits in foreign currencies | 12053947 | 15192711 |
|  | 160030155 | 189403653 |
|  **Time deposits** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits in Korean won | 191747094 | 153934550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits in foreign currencies | 23652215 | 15688844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged time deposits in foreign currencies | (8591) | (1319) |
|  | 215390718 | 169622075 |
|  **Certificates of deposits** | 6325876 | 4115688 |
|  | 381746749 | 363141416 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**20. Borrowings** 

20.1 Details of borrowings as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  General borrowings |  | 36815211 |  | 30051040 |
|  Bonds sold under repurchase agreements and others |  | 4933903 |  | 834455 |
|  Call money |  | 3324003 |  | 1637666 |
|  |  | 45073117 |  | 32523161 |

---

20.2 Details of general borrowings as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Lenders** | **Annual<br>interest<br>rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Borrowings in Korean won** | Borrowings from the Bank of Korea | The Bank of Korea | 0.25~1.75 | 8282289 | 7131019 |
|  **Borrowings in Korean won** | Borrowings from the government | SEMAS and others | 0.00~3.23 | 2670867 | 2683056 |
|  **Borrowings in Korean won** | Borrowings from non-banking financial institutions | The Korea Development Bank | 1.39~2.64 | 477788 | 432310 |
|  **Borrowings in Korean won** | Other borrowings | The Korea Development Bank and others | 0.00~5.61 | 5397514 | 5460862 |
|  |  |  |  | 16828458 | 15707247 |
|  **Borrowings in foreign currencies** | Due to banks | BANK OF CHINA SEOUL BRANCH and others | 0.00 | 18266 | 2143 |
|  **Borrowings in foreign currencies** | Borrowings from banks | Central Bank of Uzbekistan and others | 0.00~14.00 | 14620544 | 12364349 |
|  **Borrowings in foreign currencies** | Borrowings from other financial institutions | The Export-Import Bank of Korea and others | 5.07~5.89 | 38249 | 24867 |
|  **Borrowings in foreign currencies** | Other borrowings | Standard Chartered Bank and others | 0.00~5.54 | 5309694 | 1952434 |
|  |  |  |  | 19986753 | 14343793 |
|  |  |  |  | 36815211 | 30051040 |

---

20.3 Details of bonds sold under repurchase agreements and others as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Lenders** | **Annual interest<br>rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Bonds sold under repurchase agreements | Individuals, groups, and corporations | 0.00~9.75 | 4930103 | 832353 |
|  Bills sold | Counter sale | 1.55~2.00 | 3800 | 2102 |
|  |  |  | 4933903 | 834455 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

20.4 Details of call money as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Lenders** | **Annual interest<br>rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Call money in Korean won | Mitsui Sumitomo Bank Seoul | 2.99~3.23 | 2113500 |  |
|  Call money in foreign currencies | Bank CIMB Niaga and others | 0.00~7.80 | 1210503 | 1637666 |
|  |  |  | 3324003 | 1637666 |

---

**21. Debentures** 

21.1 Details of debentures as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Annual interest<br>rate (%)** | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Debentures in Korean won** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | 5.65~8.62 | 30710 | 30910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures | 2.02~7.86 | 4089890 | 5292957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 0.99~13.70 | 12204848 | 11276086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1.54~4.01 | 4100000 | 5310000 |
|  |  | 20425448 | 21909953 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged debentures in Korean won |  | (249630) | (79877) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Discount on debentures in Korean won |  | (7371) | (14685) |
|  |  | 20168447 | 21815391 |
|  **Debentures in foreign currencies** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 2.42~5.98 | 1312914 | 1948962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 0.05~12.00 | 8434760 | 5949105 |
|  |  | 9747674 | 7898067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged debentures in foreign currencies |  | (95865) | 27952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Discount on debentures in foreign currencies |  | (32534) | (22676) |
|  |  | 9619275 | 7903343 |
|  |  | 29787722 | 29718734 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

21.2 Changes in debentures based on par value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Issue** | **Repayment** | **Others** | **Ending** |
|  **Debentures in Korean won** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | 30910 |  | (200) |  | 30710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures | 5292957 |  | (1203067) |  | 4089890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 11276086 | 12883950 | (11955188) |  | 12204848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 5310000 | 4960000 | (6170000) |  | 4100000 |
|  | 21909953 | 17843950 | (19328455) |  | 20425448 |
|  **Debentures in foreign currencies** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1948962 | 755815 | (1597630) | 205767 | 1312914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 5949105 | 3354673 | (1113994) | 244976 | 8434760 |
|  | 7898067 | 4110488 | (2711624) | 450743 | 9747674 |
|  | 29808020 | 21954438 | (22040079) | 450743 | 30173122 |
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Issue** | **Repayment** | **Others** | **Ending** |
|  **Debentures in Korean won** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | 31960 |  | (1050) |  | 30910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures | 4464407 | 830000 | (1450) |  | 5292957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 14823854 | 10592620 | (14140388) |  | 11276086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1890000 | 5310000 | (1890000) |  | 5310000 |
|  | 21210221 | 16732620 | (16032888) |  | 21909953 |
|  **Debentures in foreign currencies** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1353472 | 810920 | (350235) | 134805 | 1948962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 4359842 | 2489034 | (1134987) | 235216 | 5949105 |
|  | 5713314 | 3299954 | (1485222) | 370021 | 7898067 |
|  | 26923535 | 20032574 | (17518110) | 370021 | 29808020 |

---

**22. Provisions** 

22.1 Details of provisions as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Provisions for credit losses of unused loan commitments | 161331 | 147765 |
|  Provisions for credit losses of acceptances and guarantees | 153843 | 121148 |
|  Provisions for restoration costs | 135477 | 128407 |
|  Others | 82719 | 29547 |
|  | 533370 | 426867 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

22.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** |
|  Beginning | 94183 | 53582 |  | 27441 | 82170 | 11537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 22761 | (22731) | (30) | 1144 | (1144) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (15265) | 15357 | (92) | (355) | 1016 | (661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment | (133) | (470) | 603 | (9) | (142) | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 1934 | 10855 | (457) | (1422) | 33983 | (3261) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 317 | 937 | (20) | 418 | 2842 | 135 |
|  Ending | 103797 | 57530 | 4 | 27217 | 118725 | 7901 |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** |
| *(In millions of Korean won)* | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** |
|  Beginning | 81709 | 78119 |  | 33190 | 14838 | 14328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 24978 | (24976) | (2) | 3958 | (203) | (3755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (14468) | 14587 | (119) | (3973) | 3982 | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment | (131) | (355) | 486 | (10) | (85) | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 1046 | (14198) | (365) | (7482) | 64178 | 711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 1049 | 405 |  | 1758 | (540) | 167 |
|  Ending | 94183 | 53582 |  | 27441 | 82170 | 11537 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

22.3 Changes in provisions for restoration costs for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Beginning | 128407 | 131674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision | 6336 | 5879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal | 1261 | (1016) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Used | (12411) | (12541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unwinding of discount | 2363 | 1369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of changes in discount rate | 9521 | 3042 |
|  Ending | 135477 | 128407 |

---

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

22.4 Changes in other provisions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Membership<br>rewards<br>program** | **Dormant<br>accounts** | **Litigations** | **Financial<br>guarantee<br>contracts** | **Others** | **Total** |
|  Beginning | 43 | 3062 | 10119 | 5285 | 11038 | 29547 |
|  Provision (reversal) | 84 | 2666 | 33503 | (2330) | 26595 | 60518 |
|  Used and others | (81) | (2934) | (2392) |  | (1939) | (7346) |
|  Ending | 46 | 2794 | 41230 | 2955 | 35694 | 82719 |
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Membership<br>rewards<br>program** | **Dormant<br>accounts** | **Litigations** | **Financial<br>guarantee<br>contracts** | **Others** | **Total** |
|  Beginning | 35 | 3008 | 9969 | 6347 | 14797 | 34156 |
|  Provision (reversal) | 77 | 3429 | 24 | (896) | (4289) | (1655) |
|  Used and others | (69) | (3375) | 126 | (166) | 530 | (2954) |
|  Ending | 43 | 3062 | 10119 | 5285 | 11038 | 29547 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**23. Net Defined Benefit Liabilities (Assets)** 

23.1 Defined Benefit Plan

The Group operates defined benefit plans which have the following characteristics:

• The Group has the obligation to pay the agreed benefits to all its current and former employees.

• The Group assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities (assets) recognized in the consolidated statements of financial position are calculated in accordance with actuarial valuation method using assumptions based on market data and historical data such as discount rate, future salary increase rate, and mortality. Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends.

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Present value of<br>defined benefit<br>obligation** | **Fair value of**<br>**plan assets** | **Net defined<br>benefit<br>liabilities(assets)** |
|  Beginning | 1847905 | (1692621) | 155284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | 163587 |  | 163587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) | 46854 | (43392) | 3462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments | 9041 |  | 9041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions | 41988 |  | 41988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions | (352447) |  | (352447) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  | 54808 | 54808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Group |  | (360000) | (360000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) | (196543) | 196543 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Group | (9330) |  | (9330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in | 5150 | (4516) | 634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out | (7052) | 7052 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange differences | 1467 |  | 1467 |
|  Ending | 1550620 | (1842126) | (291506) |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Present value of**<br>**defined benefit<br>obligation** | **Fair value of**<br>**plan assets** | **Net defined<br>benefit<br>liabilities** |
|  Beginning | 1748770 | (1583368) | 165402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | 155506 |  | 155506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) | 34075 | (31069) | 3006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments | 5180 |  | 5180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions | 7330 |  | 7330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions | 81928 |  | 81928 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  | 5363 | 5363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Group |  | (264600) | (264600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) | (178937) | 178937 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Group | (6578) |  | (6578) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in | 3602 | (3067) | 535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out | (5183) | 5183 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange differences | 2212 |  | 2212 |
|  Ending | 1847905 | (1692621) | 155284 |

---

23.3 Details of net defined benefit liabilities (assets) as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Present value of defined benefit obligation | 1550620 | 1847905 |
|  Fair value of plan assets | (1842126) | (1692621) |
|  Net defined benefit liabilities (assets) | (291506) | 155284 |

---

23.4 Details of remeasurements of net defined benefit liabilities(asset) recognized in other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Remeasurements: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial losses arising from experience adjustments | (9041) | (5180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial losses arising from changes in demographic assumptions | (41988) | (7330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial losses arising from changes in financial assumptions | 352447 | (81928) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) | (54808) | (5363) |
|  Income tax effect | (67749) | 28201 |
|  Effect of exchange differences | (345) | (15) |
|  Remeasurements after income tax expense | 178516 | (71615) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

23.5 Details of fair value of plan assets as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Assets quoted**<br>**in an active market** | **Assets not quoted in<br>an active market** | **Total** |
|  Time deposits |  | 1388054 | 1388054 |
|  Others |  | 454072 | 454072 |
|  |  | 1842126 | 1842126 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Assets quoted**<br>**in an active market** | **Assets not quoted in<br>an active market** | **Total** |
|  Time deposits |  | 1374281 | 1374281 |
|  Others |  | 318340 | 318340 |
|  |  | 1692621 | 1692621 |

---

23.6 Details of significant actuarial assumptions used as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Discount rate (%) | 5.20 | 2.60 |
|  Salary increase rate (%) | 0.00~5.25 | 0.00~5.04 |
|  Turnover rate (%) | 2.30~38.60 | 1.00~20.00 |

---

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2019.

23.7 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Effect on defined benefit obligation** | **Effect on defined benefit obligation** |
|  | <br>**Changes in<br>assumptions** | **Increase in<br>assumptions** | **Decrease in**<br>**assumptions** |
|  Discount rate | 0.5%p | 3.02% decrease | 3.21% increase |
|  Salary increase rate | 0.5%p | 3.19% increase | 3.03% decrease |
|  Turnover rate | 0.5%p | 0.24% increase | 0.26% decrease |

---

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the consolidated statement of financial position.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

23.8 Expected maturity analysis of undiscounted pension benefit payments as of December 31, 2022, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Up to**<br>**1 year** | **1~2 years** | **2~5 years** | **5~10 years** | **Over**<br>**10 years** | **Total** |
|  Pension benefits | 162720 | 215188 | 650944 | 1151476 | 6256181 | 8436509 |

---

The weighted average duration of the defined benefit obligation is 7.34 and 9.41 years as of December 31, 2022 and 2021, respectively.

23.9 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2022 is W 360,000 million.

**24. Other Liabilities** 

Details of other liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Other financial liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables | 3837087 | 2756641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid card and debit card payables | 1840 | 1237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 3404404 | 2178928 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts liabilities | 44440 | 50390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits for letter of guarantees and others | 1116184 | 387082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement credits | 1734905 | 5121689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange settlement credits | 250138 | 169264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to trust accounts | 5808446 | 7033849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities incurred from agency relationships | 513621 | 739276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account for agency business | 241910 | 423798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 372002 | 375472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 51359 | 477572 |
|  | 17376336 | 19715198 |
|  **Other non-financial liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables | 1053097 | 660409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue | 106756 | 70111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 542818 | 489686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholding taxes | 153537 | 118308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 59339 | 35859 |
|  | 1915547 | 1374373 |
|  | 19291883 | 21089571 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**25. Equity** 

25.1 Capital Stock

Details of capital stock as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** |
| *(In millions of Korean won and in number of shares)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  Type of share | Ordinary share | Ordinary share |
|  Number of authorized shares | 1000000000 | 1000000000 |
|  Par value per share *(In Korean won)* | 5000 | 5000 |
|  Number of issued shares | 404379116 | 404379116 |
|  Capital stock | 2021896 | 2021896 |

---

25.2 Hybrid Security

Details of hybrid security classified as equity as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Issuance date** | **Maturity** | **Interest rate<br>(%)** | **December 31,<br>2022** | **December 31,<br>2021** |
|  Amortized Conditional Capital Securities | July 2, 2019 | Permanent<sup>1</sup> | 4.35 | 574523 | 574523 |
|  | June 23, 2022 | Permanent <sup>2</sup> | 4.89 | 299327 |  |

---

<sup>1</sup> Above hybrid securities are early redeemable by the Group after 5 years from the issuance date and each interest payment date thereafter.

<sup>2</sup> Early redeemable by the Group only when prior approval from the head of the Financial Supervisory Service is obtained after 5 years from the issuance date.

25.3 Capital Surplus

Details of capital surplus as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Paid-in capital in excess of par value | 4604417 | 4604417 |
|  Gains on business combination | 397669 | 397669 |
|  Revaluation reserve | 177229 | 177229 |
|  Other capital surplus | (153980) | (153980) |
|  | 5025335 | 5025335 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

25.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  Remeasurements of net defined benefit liabilities | (113922) | (292232) |
|  Currency translation differences | 201288 | 68224 |
|  Gains (losses) on debt securities measured at fair value through other comprehensive income | (652186) | (186463) |
|  Gains on equity securities measured at fair value through other comprehensive income | 641536 | 1838548 |
|  Share of other comprehensive loss of associates | (2590) | (2526) |
|  Losses on cash flow hedging instruments | 33921 | (89) |
|  Gains (losses) on hedging instruments of net investments in foreign operations | (95296) | (30306) |
|  | 12751 | 1395156 |

---

25.5 Retained Earnings

25.5.1 Details of retained earnings as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Legal reserves | 2044631 | 2043729 |
|  Regulatory reserve for credit losses | 2915162 | 2534401 |
|  Voluntary reserves | 17739062 | 16742471 |
|  Unappropriated retained earnings | 3135337 | 2340120 |
|  | 25834192 | 23660721 |

---

With respect to the allocation of net profit earned in a fiscal term, the Bank must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 40 of the Banking Act. This reserve is not available for the payment of cash dividends, but may be transferred to capital stock, or used to reduce accumulated deficit. The Bank is reserving other reserves (legal reserves) in accordance with local laws and regulations of overseas branches.

25.5.2 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 29.1 through 29.2 of Regulations on Supervision of Banking Business.

25.5.2.1 Details of regulatory reserve for credit losses as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Regulatory reserve for credit losses attributable to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholder of the Parent Company | 3018015 | 2915162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests | 79118 | 60265 |
|  | 3097133 | 2975427 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

25.5.2.2 Regulatory reserve for credit losses estimated to be appropriated and adjusted profit after provision of regulatory reserve for credit losses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Regulatory reserve for credit losses estimated to be appropriated |  | 102853 |  | 380761 |
|  Adjusted profit after provision of regulatory reserve for credit losses \* |  | 2893162 |  | 2210003 |

---

\* Adjusted profit after provision of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision of regulatory reserve for credit losses before tax to the net profit attributable to shareholder of the Parent Company.

**26. Net Interest Income** 

Details of interest income, interest expense, and net interest income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Interest income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through profit or loss | 282403 | 158057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through profit or loss | 7442 | 715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through other comprehensive income | 669668 | 454561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through other comprehensive income | 6023 | 3003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at amortized cost | 79929 | 25466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 637504 | 307447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 13351316 | 9487206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 324416 | 237906 |
|  | 15358701 | 10674361 |
|  **Interest expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 4455350 | 2179196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 674082 | 251523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 756478 | 453761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 181770 | 61405 |
|  | 6067680 | 2945885 |
|  **Net interest income** | 9291021 | 7728476 |

---

Interest income recognized on impaired loans is W 16,853 million and W 17,926 million for the years ended December 31, 2022 and 2021, respectively.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**27. Net Fee and Commission Income** 

Details of fee and commission income, fee and commission expense, and net fee and commission income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Fee and commission income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banking activity fees | 190874 | 188079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending activity fees | 65368 | 73500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit card related fees | 1438 | 2106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debit card related fees | 591 | 568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agent activity fees | 329117 | 286286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust and other fiduciary fees | 201238 | 307632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees fees | 60890 | 46597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency related fees | 164980 | 128945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities agency fees | 105471 | 146989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other business account commission on consignment | 36211 | 39178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 373980 | 367064 |
|  | 1530158 | 1586944 |
|  **Fee and commission expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading activity related fees \* | 16308 | 13092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending activity fees | 44833 | 47861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit card related fees | 39385 | 31298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outsourcing related fees | 106042 | 104214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency related fees | 25173 | 17101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees of written-off loans | 12842 | 16392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions to external institutions | 27997 | 23574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 160970 | 145531 |
|  | 433550 | 399063 |
|  **Net fee and commission income** | 1096608 | 1187881 |

---

\* Fees from financial instruments at fair value through profit or loss

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**28. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss** 

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions.

Details of net gains or losses on financial instruments at fair value through profit or loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Gains on financial instruments at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 472217 | 387421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 23347 | 50392 |
|  | 495564 | 437813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 7520856 | 3506695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency | 13709057 | 7102646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock or stock index | 15285 | 675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit | 39646 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1672 | 1433 |
|  | 21286516 | 10611449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 2951 | 1345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial instruments | 252 | 6754 |
|  | 21785283 | 11057361 |
|  **Losses on financial instruments at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 944163 | 276727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 34431 | 30068 |
|  | 978594 | 306795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 6652262 | 3415836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency | 13892134 | 6982145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock or stock index | 10751 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit | 36380 | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3547 | 2212 |
|  | 20595074 | 10400279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 829 | 613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial instruments | 205 | 6840 |
|  | 21574702 | 10714527 |
|  **Net gains on financial instruments at fair value through profit or loss** | 210581 | 342834 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**29. Net Other Operating Income and Expenses** 

Details of other operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Other operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption of securities measured at fair value through other comprehensive income | 20 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of securities measured at fair value through other comprehensive income | 19977 | 98920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on financial assets at amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sale of loans measured at amortized cost | 28734 | 42020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption of securities measured at amortized cost |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on foreign exchange transactions | 9859577 | 2683228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 9934 | 17926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 843662 | 376107 |
|  | 10761904 | 3218329 |
|  **Other operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption of securities measured at fair value through other comprehensive income | 2757 | 2172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of securities measured at fair value through other comprehensive income | 30840 | 97993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on financial assets at amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on sale of loans measured at amortized cost | 51214 | 3560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption of securities measured at amortized cost |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of securities measured at amortized cost |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on foreign exchange transactions | 9784228 | 2676760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit insurance fee | 502631 | 466999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit guarantee fund fee | 283912 | 263297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1050422 | 527279 |
|  | 11706004 | 4038068 |
|  **Net other operating expenses** | (944100) | (819739) |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**30. General and Administrative Expenses** 

30.1 Details of general and administrative expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Expenses related to employee** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - salaries | 1778373 | 1705537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - welfare | 707690 | 655731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined benefit plans | 167049 | 158512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined contribution plans | 15491 | 12111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Termination benefits | 272615 | 266541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | 15169 | 27995 |
|  | 2956387 | 2826427 |
|  **Depreciation and amortization** | 546505 | 537628 |
|  **Other general and administrative expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental expense | 72564 | 70078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax and dues | 169351 | 130523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communication | 41251 | 37246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity and utilities | 28958 | 30586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Publication | 6184 | 7078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repairs and maintenance | 38613 | 36806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicle | 14032 | 11903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Travel | 9134 | 3738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Training | 22523 | 23667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service fees | 187534 | 175579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Supplies | 21930 | 21355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electronic data processing expenses | 220814 | 175307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 362171 | 314810 |
|  | 1195059 | 1038676 |
|  | 4697951 | 4402731 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

30.2 Share-based Payments

30.2.1 Stock grants

The Group changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

30.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* |  |  |  |
| **Stock grants** | **Grant date** | **Number of<br>granted shares <sup>1</sup>** | **Vesting conditions <sup>2</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 80 | Mar. 1, 2020 | 7982 | Services fulfillment, Total Shareholder Return (TSR) 30~50%, and Company and work performance 50~70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 81 | Jan. 1, 2021 | 139783 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 83 | Apr. 1, 2021 | 15278 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 85 | Jan. 1, 2022 | 292777 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100%, Services fulfillment, TSR 30%, and EPS and Asset Quality 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 86 | Feb. 1, 2022 | 1525 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 87 | Mar. 1, 2022 | 2599 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 88 | Mar. 14, 2022 | 5884 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 89 | May. 26, 2022 | 2363 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 90 | Jul. 18, 2022 | 4131 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 91 | Aug. 24, 2022 | 7277 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
|  Deferred grant in 2016 |  | 2426 | Satisfied |
|  Deferred grant in 2017 |  | 4582 | Satisfied |
|  Deferred grant in 2018 |  | 2287 | Satisfied |
|  Deferred grant in 2019 |  | 32756 | Satisfied |
|  Deferred grant in 2020 |  | 53502 | Satisfied |
|  Deferred grant in 2021 |  | 156939 | Satisfied |
|  |  | 732091 |  |

---

<sup>1</sup> Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of December 31, 2022 (Deferred grants are residual shares vested as of December 31, 2022). 

<sup>2</sup> Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

30.2.1.2 Details of stock grants linked to short-term performance as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* |  |  |  |
| **Stock grants \*** | **Grant date** | **Estimated number<br>of vested shares** | **Vesting**<br>**conditions** |
|  Stock granted in 2015 | Jan. 1, 2015 | 1292 | Satisfied |
|  Stock granted in 2016 | Jan. 1, 2016 | 4875 | Satisfied |
|  Stock granted in 2017 | Jan. 1, 2017 | 1998 | Satisfied |
|  Stock granted in 2018 | Jan. 1, 2018 | 2109 | Satisfied |
|  Stock granted in 2019 | Jan. 1, 2019 | 41737 | Satisfied |
|  Stock granted in 2010 | Jan. 1, 2020 | 89888 | Satisfied |
|  Stock granted in 2021 | Jan. 1, 2021 | 130331 | Satisfied |
|  Stock granted in 2022 | Jan. 1, 2022 | 134402 | Proportion to service period |

---

\* Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

30.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2022, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won)* | **Expected<br>exercise<br>period(years)** | **Risk-free rate<br>(%)** | **Fair value (market<br>performance<br>condition)** | **Fair value (non-**<br>**market<br>performance<br>condition)** |
|  Series 80 | 0.00~3.00 | 3.78% | 43,157~50,973 | 43,157~50,973 |
|  Series 81 | 0.00~3.00 | 3.78% | 35,905~41,289 | 43,157~50,973 |
|  Series 83 | 0.25~4.00 | 3.78% | 38,660~43,583 | 41,548~46,663 |
|  Series 85 | 1.00~4.00 | 3.78% | 33,668~37,813 | 41,548~46,663 |
|  Series 86 | 1.08~5.00 | 3.78% | 35,486~39,839 | 39,958~44,859 |
|  Series 87 | 1.16~5.00 | 3.78% | 38,957~46,013 | 43,157~50,973 |
|  Series 88 | 1.20~5.00 | 3.78% | 37,288~41,862 | 39,958~44,859 |
|  Series 89 | 1.40~5.00 | 3.78% | 40,943~48,358 | 43,157~50,973 |
|  Series 90 | 1.55~5.00 | 3.78% | 39,554~44,405 | 39,958~44,859 |
|  Series 91 | 1.65~5.00 | 3.78% | 37,840~42,481 | 39,958~44,859 |
|  Grant deferred in 2016 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2017 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2018 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2019 |  | 3.78% |  | 50973 |
|  Grant deferred in 2020 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2021 | 0.00~2.00 | 3.78% |  | 44,859~50,973 |
|  Stock granted in 2015 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2016 | 0.00~2.00 | 3.78% |  | 44,859~50,973 |
|  Stock granted in 2017 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2018 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2019 |  | 3.78% |  | 50973 |
|  Stock granted in 2020 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2021 | 0.00~2.00 | 3.78% |  | 44,859~50,973 |
|  Stock granted in 2022 | 1.00~5.00 | 3.78% |  | 39,958~46,663 |

---

The Group uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

30.2.1.4 The accrued expenses for share-based payments related to stock grants are W 46,740 million and W 53,577 million as of December 31, 2022 and 2021, respectively, and the compensation costs amounting to W 15,169 million and W 27,995 million were recognized for the years ended December 31, 2022 and 2021, respectively.

30.2.2 Mileage stock

30.2.2.1 Details of mileage stock as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* | *(In number of shares)* |  |  |
| **Grant date** | **Number of**<br>**granted shares <sup>1</sup>** | **Expected exercise<br>period (years) <sup>2</sup>** | **Remaining shares** |
| *Stock granted in 2019* | *Stock granted in 2019* | *Stock granted in 2019* |  |
| Nov. 1, 2019 | 119 | 0.00 | 48 |
| Nov. 8, 2019 | 14 | 0.00 | 6 |
| Dec. 6, 2019 | 84 | 0.00 | 50 |
| Dec. 5, 2019 | 56 | 0.00 | 41 |
| Dec. 31, 2019 | 87 | 0.00 | 43 |
| *Stock granted in 2020* |  |  |  |
| Jan. 18, 2020 | 28645 | 0.00~0.05 | 15541 |
| May 12, 2020 | 46 | 0.00~0.36 | 43 |
| Jun. 30, 2020 | 206 | 0.00~0.50 | 147 |
| Aug. 26, 2020 | 40 | 0.00~0.65 | 27 |
| Oct. 29, 2020 | 160 | 0.00~0.83 | 107 |
| Nov. 6, 2020 | 45 | 0.00~0.85 | 37 |
| Nov. 30, 2020 | 35 | 0.00~0.92 | 34 |
| Dec. 2, 2020 | 57 | 0.00~0.92 | 44 |
| Dec. 4, 2020 | 154 | 0.00~0.93 | 110 |
| Dec. 30, 2020 | 88 | 0.00~1.00 | 64 |
| *Stock granted in 2021* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jan. 15, 2021 | 28156 | 0.00~1.04 | 18712 |
| Apr. 5, 2021 | 89 | 0.00~1.26 | 53 |
| Jul. 1, 2021 | 54 | 0.00~1.50 | 54 |
| Jul. 2, 2021 | 11 | 0.00~1.50 | 11 |
| Jul. 27, 2021 | 70 | 0.00~1.57 | 63 |
| Nov. 1, 2021 | 71 | 0.00~1.84 | 71 |
| Nov. 16, 2021 | 53 | 0.00~1.88 | 48 |
| Dec. 6, 2021 | 87 | 0.00~1.93 | 87 |
| Dec. 3, 2021 | 91 | 0.00~1.92 | 89 |
| Dec. 30, 2021 | 76 | 0.00~2.00 | 76 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

30.2.2.1 Details of mileage stock as of December 31, 2022, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* |  |  |  |
| **Grant date** | **Number of**<br>**granted shares <sup>1</sup>** | **Expected exercise<br>period (years) <sup>2</sup>** | **Remaining shares** |
|  *Stock granted in 2022* |  |  |  |
|  Jan. 14, 2022 | 20909 | 0.00~2.04 | 19864 |
|  Apr. 4, 2022 | 65 | 0.00~2.26 | 65 |
|  Apr. 19, 2022 | 33 | 0.00~2.30 | 33 |
|  Jul. 1, 2022 | 62 | 0.00~2.50 | 62 |
|  Aug. 3, 2022 | 62 | 0.00~2.59 | 62 |
|  Aug. 9, 2022 | 80 | 0.00~2.61 | 76 |
|  Oct. 19, 2022 | 55 | 0.00~2.80 | 55 |
|  Nov. 1, 2022 | 177 | 0.00~2.84 | 177 |
|  Dec. 1, 2022 | 49 | 0.00~2.92 | 49 |
|  Dec. 12, 2022 | 114 | 0.00~2.95 | 114 |
|  Dec. 6, 2022 | 88 | 0.00~2.93 | 88 |
|  Dec. 2, 2022 | 42 | 0.00~2.92 | 42 |
|  Dec. 15, 2022 | 42 | 0.00~2.96 | 42 |
|  Dec. 30, 2022 | 114 | 0.00~3.00 | 114 |
|  | 80486 |  | 56449 |

---

<sup>1</sup> Mileage stock is exercisable for two years after one year from the grant date at the closing price of the end of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a one-year grace period. 

<sup>2</sup> Assessed based on the stock price as of December 31, 2022. These shares are vested immediately at grant date.

30.2.2.2 The accrued expenses for share-based payments related to mileage stock are W 2,738 million and W 3,465 million as of December 31, 2022 and 2021, respectively. The compensation costs amounting to W 870 million and W 2,116 million were recognized as expenses for the years ended December 31, 2022 and 2021, respectively.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**31. Net Other Non-Operating Income and Expenses** 

Details of other non-operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Other non-operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of property and equipment and assets held for sale | 50112 | 11478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income | 22561 | 19238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 24396 | 29443 |
|  | 97069 | 60159 |
|  **Other non-operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of property and equipment and assets held for sale | 8186 | 10522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Donation | 62712 | 75909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restoration costs | 2336 | 2743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 61700 | 50590 |
|  | 134934 | 139764 |
|  **Net other non-operating income (expenses)** | (37865) | (79605) |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**32. Income Tax Expense** 

32.1 Details of income tax expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Income tax payable** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax expense | 1336580 | 895895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments of income tax of prior years recognized in current tax | (120740) | 5331 |
|  | 1215840 | 901226 |
|  Changes in deferred income tax assets and liabilities | (579105) | 263181 |
|  Income tax expense of overseas branches | 33244 | 20920 |
|  Income tax recognized directly in equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains or losses on equity instruments at fair value through other comprehensive income | 466078 | (419220) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains or losses on debt instruments at fair value through other comprehensive income | 164231 | 106811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences | (7412) | (9166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities | (67749) | 28201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on hedging instruments of net investments in foreign operations | 22863 | 20637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on cash flow hedging instruments | (12264) | (3787) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income or loss of associates | (15) | (63) |
|  | 565732 | (276587) |
|  Reclassification from AOCI to retained earnings due to sale of equity securities measured at fair value through other comprehensive income | (92181) | 87814 |
|  Consolidated tax return effect | (62854) | (45308) |
|  Others | 807 | 2269 |
|  **Income tax expense** | 1081483 | 953515 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

32.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Profit before income tax expense** | 3809790 | 3491544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax at the applicable tax rate \* | 1037330 | 949814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-taxable income | (10300) | (14491) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible expenses | 10040 | 11539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credit and tax exemption | (1418) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Temporary difference for which no deferred tax is recognized | 95438 | 21967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in recognition and measurement of deferred tax | 98854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax refund for tax of prior years | (135121) | (17187) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense of overseas branches | 33244 | 20920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of investments in subsidiaries | 9961 | 20942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign subsidiary tax rate difference effect | 28206 | (842) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of tax rate change | (5670) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated tax return effect | (62854) | (45308) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (16227) | 6161 |
|  **Income tax expense** | 1081483 | 953515 |
|  **Income tax expense/Profit before income tax (%)** | 28.39 | 27.31 |

---

\* Applicable income tax rate for W 200 million and below is 11%, for over W 200 million to W 20 billion is 22%, for over W 20 billion to W 300 billion is 24.2% and for over W 300 billion is 27.5% for the years ended December 31, 2022 and 2021. 

32.3 Details of current tax liabilities (income tax payables) and current tax assets (income tax refund receivables) before offsetting as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  Tax payables after offsetting <sup>1, 2</sup> | 873805 | 480218 |
|  Adjustment on consolidated tax payable and others <sup>3</sup> | (62854) | (45308) |
|  Consolidated tax return accounts payables <sup>4</sup> | (747922) | (377629) |
|  Current tax payable | 63029 | 57281 |

---

<sup>1</sup> Current tax assets of W 172,757 million and W 44,942 million due to uncertain tax position and current tax assets of W 19,282 million and W 16,372 million for overseas branches were excluded, which does not qualify for offsetting as of December 31, 2022 and 2021, respectively.

<sup>2</sup> Includes income tax payable of W 63,029 million and W 57,281 million under current tax liabilities, which are not to be offset against any income tax refund receivables, such as those of overseas branches as of December 31, 2022 and 2021, respectively.

<sup>3</sup> Tax expense reduced due to the adoption of consolidated tax return was recognized as tax benefit.

<sup>4</sup> The amount of income tax payable is reclassified as accounts payable, not to the tax authority, but to KB Financial Group Inc. due to the adoption of consolidated tax return. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**33. Dividends** 

The annual dividends to the shareholder of the Bank for the year ended December 31, 2022, amounting to W 1,346,582 million (W 3,330 per share) is to be proposed at the general shareholder's meeting scheduled for March 23, 2023. The Group's consolidated financial statements as of and for the year ended December 31, 2022, do not reflect this dividend payable.

**34. Accumulated Other Comprehensive Income (Loss)** 

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Changes<br>(excluding<br>reclassifica-<br>tion)** | **Reclassification<br>to profit or loss** | **Tax<br>effect** | **Transfer<br>to<br>retained<br>earnings** | **Ending** |
|  Remeasurements of net defined benefit liabilities | (292232) | 246059 |  | (67749) |  | (113922) |
|  Currency translation differences | 68224 | 140476 |  | (7412) |  | 201288 |
|  Gains on (losses) debt securities measured at fair value through other comprehensive income | (186463) | (933967) | 304013 | 164231 |  | (652186) |
|  Gains on equity securities measured at fair value through other comprehensive income | 1838548 | (1327887) |  | 466078 | (335203) | 641536 |
|  Share of other comprehensive loss of associates | (2526) | (49) |  | (15) |  | (2590) |
|  Losses on cash flow hedging instruments | (89) | 43886 | 2388 | (12264) |  | 33921 |
|  Gains (losses) on hedging instruments of net investments in foreign operations | (30306) | (87853) |  | 22863 |  | (95296) |
|  | 1395156 | (1919335) | 306401 | 565732 | (335203) | 12751 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Changes<br>(excluding<br>reclassifica-<br>tion)** | **Reclassification<br>to profit or loss** | **Tax effect** | **Transfer<br>to<br>retained<br>earnings** | **Ending** |
|  Remeasurements of net defined benefit liabilities | (220178) | (100255) |  | 28201 |  | (292232) |
|  Currency translation differences | (118526) | 193922 | 1994 | (9166) |  | 68224 |
|  Gains on (losses) debt securities measured at fair value through other comprehensive income | 88478 | (385466) | 3714 | 106811 |  | (186463) |
|  Gains on equity securities measured at fair value through other comprehensive income | 733332 | 1205112 |  | (419220) | 319324 | 1838548 |
|  Share of other comprehensive loss of associates | (2691) | 228 |  | (63) |  | (2526) |
|  Losses on cash flow hedging instruments | (10073) | 11468 | 2303 | (3787) |  | (89) |
|  Gains (losses) on hedging instruments of net investments in foreign operations | 24103 | (80241) | 5195 | 20637 |  | (30306) |
|  | 494445 | 844768 | 13206 | (276587) | 319324 | 1395156 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**35. Trust Accounts** 

35.1 Financial information of the trust accounts the Group manages, as of and for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total assets** | **Total assets** | **Operating revenues** | **Operating revenues** |
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,<br>2021** | **2022** | **2021** |
|  Consolidated | 4192712 | 4372406 | 122144 | 92012 |
|  Unconsolidated (non-guaranteed) | 76695803 | 68491476 | 1996658 | 2002166 |
|  | 80888515 | 72863882 | 2118802 | 2094178 |

---

\* Financial information of the trust accounts has been prepared in accordance with the Statement of Korea Accounting Standard No.5004, *Trust Accounts*, and enforcement regulations of the Financial Investment Services under the Financial Investment Services and Capital Markets Act. 

35.2 Significant receivables and payables related to the Group's trust accounts as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Trust segment** | **Receivables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued trust fees | 55990 | 30288 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accrued income | 27376 | 23848 |
|  |  | 83366 | 54136 |
|  | **Payables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to trust accounts | 1580076 | 1019236 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest on due to trust accounts | 7294 | 3949 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 686394 | 485126 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest on deposits | 5641 | 1735 |
|  |  | 2279405 | 1510046 |
|  **Custody segment** | **Receivables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued trust fees | 8461 | 7689 |
|  | **Payables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to trust accounts | 4228370 | 6014613 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest on due to trust accounts | 10820 | 3599 |
|  |  | 4239190 | 6018212 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

35.3 Significant revenues and expenses related to the Group's trust accounts for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2021** |
|  **Trust segment** | **Revenues** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions from trust accounts | 163184 | 270977 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fees and commissions from retirement pension | 30797 | 28387 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions from early termination in trust accounts | 13 | 36 |
|  |  | 193994 | 299400 |
|  | **Expenses** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on due to trust accounts | 31355 | 11150 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on deposits | 19655 | 4868 |
|  |  | 51010 | 16018 |
|  **Custody segment** | **Revenues** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions from trust accounts | 38054 | 36656 |
|  | **Expenses** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on due to trust accounts | 83797 | 20470 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**36. Statement of Cash Flows** 

36.1 Details of cash and cash equivalents as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  Cash | 2437356 | 2494543 |
|  Checks issued by other banks | 123163 | 150047 |
|  Due from the Bank of Korea | 15963883 | 16038651 |
|  Due from other financial institutions | 6603392 | 6481750 |
|  | 25127794 | 25164991 |
|  Deduction: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted due from financial institutions \* | (1461327) | (1741419) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions with original maturities over three months | (311946) | (302075) |
|  | (1773273) | (2043494) |
|  | 23354521 | 23121497 |

---

\* Items that meet the definition of cash are excluded in accordance with Korean IFRS No.1007 *Statement of Cash Flows*. Detailed information on the effects of this change in accounting policy is described in Note 2.1 Application of Korean IFRS.

Items that meet the definition of cash in restricted due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial institutions** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea | 15169703 | 15117033 |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | The Bank of Korea | 794180 | 721618 |
|  |  | Bank Indonesia and others | 421718 | 285655 |
|  |  |  | 16385601 | 16124306 |

---

36.2 Significant non-cash transactions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Write-offs of loans | 846312 | 484243 |
|  Changes in accumulated other comprehensive income from valuation of debt securities measured at fair value through other comprehensive income | (465723) | (274941) |
|  Changes in accumulated other comprehensive income from valuation of equity securities measured at fair value through other comprehensive income | (1197012) | 1105217 |
|  Changes in accumulated other comprehensive income from valuation of investments in associates | (64) | 165 |
|  Changes in financial investments due to debt-for-equity swap |  | 327 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

36.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Activities** | **2022** | **2021** |
|  Income tax paid | Operating | 908394 | 1043878 |
|  Interest received | Operating | 15033525 | 10843378 |
|  Interest paid | Operating | 4986483 | 3169577 |
|  Dividends received | Operating | 256335 | 170449 |
|  Dividends paid | Financing | 1031167 | 917941 |
|  Interest (dividends) paid on hybrid securities | Financing | 34399 | 24144 |

---

36.4 Changes in liabilities arising from financing activities for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Derivatives<br>held for<br>hedging \*** | **Borrowings** | **Debentures** | **Due to trust<br>accounts** | **Lease<br>liabilities** | **Deposits<br>for letter of<br>guarantees** | **Other<br>payables** | **Total** |
|  Beginning | (88125) | 32523161 | 29718734 | 7033849 | 375472 | 387082 | 108115 | 70058288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash flow | 33402 | 11575186 | (197529) | (1225402) | (157055) | 712257 | 184647 | 10925506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New lease and termination |  |  |  |  | 142433 |  |  | 142433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange differences |  | 981112 | 450741 |  |  |  |  | 1431853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in fair values | 97791 |  | (293571) |  |  |  |  | (195780) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes from business combination |  |  |  |  |  |  | (188528) | (188528) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other changes from non-cash transactions | (35348) | (6342) | 109347 |  | 11153 | 16845 | 12853 | 108508 |
|  Ending | 7720 | 45073117 | 29787722 | 5808447 | 372003 | 1116184 | 117087 | 82282280 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Derivatives<br>held for<br>hedging \*** | **Borrowings** | **Debentures** | **Due to<br>trust<br>accounts** | **Lease<br>liabilities** | **Deposits<br>for letter of<br>guarantees** | **Other<br>payables** | **Total** |
|  Beginning | (142840) | 26870831 | 26969584 | 7542955 | 380629 | 456536 | 419308 | 62497003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash flow | 5870 | 4743115 | 2415697 | (509106) | (162954) | (71326) | (373592) | 6047704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New lease and termination |  |  |  |  | 147470 |  |  | 147470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange differences |  | 909325 | 370021 |  |  |  | 33516 | 1312862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in fair values | 41762 |  | (126419) |  |  |  |  | (84657) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes from business combination |  |  |  |  |  |  | 51377 | 51377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other changes from non-cash transactions | 7083 | (110) | 89851 |  | 10327 | 1872 | (22494) | 86529 |
|  Ending | (88125) | 32523161 | 29718734 | 7033849 | 375472 | 387082 | 108115 | 70058288 |

---

\* Derivatives held for hedging purposes are the net amount after offsetting liabilities and assets. 

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**37. Contingent Liabilities and Commitments** 

37.1 Details of acceptances and guarantees as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Confirmed acceptances and guarantees** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Confirmed acceptances and guarantees in Korean won: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for KB purchasing loan | 167538 | 136914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance bond | 3476 | 3476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees | 9259 | 27811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 905934 | 786183 |
|  | 1086207 | 954384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Confirmed acceptances and guarantees in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances of letter of credit | 502217 | 523037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter of guarantees | 78414 | 83089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bid bond | 19998 | 18874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance bond | 976008 | 855247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees | 1705796 | 874173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3570739 | 2518394 |
|  | 6853172 | 4872814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for issuance of debenture | 5040 | 5040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for mortgage | 94861 | 51053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overseas debt guarantees | 509157 | 428108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International financing guarantees in foreign currencies | 181241 | 132114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial guarantees in Korean won |  | 50950 |
|  | 790299 | 667265 |
|  | 8729678 | 6494463 |
|  **Unconfirmed acceptances and guarantees** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees of letter of credit | 3042911 | 3551767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees | 1528359 | 833765 |
|  | 4571270 | 4385532 |
|  | 13300948 | 10879995 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

37.2 Credit qualities of acceptances and guarantees as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Total** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** | **Total** |
|  **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 6023922 | 1140 |  | 6025062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1882080 | 10474 |  | 1892554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 494924 | 18649 |  | 513573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 63689 | 215382 | 442 | 279513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 4130 | 14846 | 18976 |
|  | 8464615 | 249775 | 15288 | 8729678 |
|  **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 3232326 | 844 |  | 3233170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1040908 | 36879 |  | 1077787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 4685 | 13308 |  | 17993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 1265 | 236687 | 5 | 237957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 199 | 4164 | 4363 |
|  | 4279184 | 287917 | 4169 | 4571270 |
|  | 12743799 | 537692 | 19457 | 13300948 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Total** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** | **Total** |
|  **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 4545788 | 838 |  | 4546626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1594713 | 32567 |  | 1627280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 105691 | 46174 |  | 151865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 7722 | 149785 | 214 | 157721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 774 | 10197 | 10971 |
|  | 6253914 | 230138 | 10411 | 6494463 |
|  **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 3083636 | 3391 |  | 3087027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 998204 | 39224 |  | 1037428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 12039 | 34797 |  | 46836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 11925 | 195794 |  | 207719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 138 | 6384 | 6522 |
|  | 4105804 | 273344 | 6384 | 4385532 |
|  | 10359718 | 503482 | 16795 | 10879995 |

---

\* Applied same criteria as the credit qualities classification of loans.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

37.3 Classifications of acceptances and guarantees by counterparty as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion**<br>**(%)** |
|  Large companies | 7615442 | 3810564 | 11426006 | 85.90 |
|  Small and medium-sized companies | 718722 | 496709 | 1215431 | 9.14 |
|  Public sector and others | 395514 | 263997 | 659511 | 4.96 |
|  | 8729678 | 4571270 | 13300948 | 100.00 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion**<br>**(%)** |
|  Large companies | 5444961 | 3377150 | 8822111 | 81.09 |
|  Small and medium-sized companies | 820327 | 657073 | 1477400 | 13.58 |
|  Public sector and others | 229175 | 351309 | 580484 | 5.33 |
|  | 6494463 | 4385532 | 10879995 | 100.00 |

---

37.4 Classifications of acceptances and guarantees by industry as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion<br>(%)** |
|  Financial institutions | 547553 | 2012 | 549565 | 4.13 |
|  Manufacturing | 3851832 | 3589948 | 7441780 | 55.95 |
|  Service | 751846 | 31465 | 783311 | 5.89 |
|  Wholesale and retail | 2181469 | 658875 | 2840344 | 21.35 |
|  Construction | 420937 | 47465 | 468402 | 3.52 |
|  Public sector | 32635 | 81607 | 114242 | 0.86 |
|  Others | 943406 | 159898 | 1103304 | 8.30 |
|  | 8729678 | 4571270 | 13300948 | 100.00 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion<br>(%)** |
|  Financial institutions | 398801 | 10114 | 408915 | 3.76 |
|  Manufacturing | 2742224 | 2979232 | 5721456 | 52.59 |
|  Service | 676440 | 38920 | 715360 | 6.58 |
|  Wholesale and retail | 1603085 | 999416 | 2602501 | 23.92 |
|  Construction | 317946 | 38260 | 356206 | 3.27 |
|  Public sector | 28257 | 99841 | 128098 | 1.18 |
|  Others | 727710 | 219749 | 947459 | 8.70 |
|  | 6494463 | 4385532 | 10879995 | 100.00 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

37.5 Details of commitments as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Commitments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate loan commitments | 50603030 | 44763099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retail loan commitments | 51216282 | 47048097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other commitments in Korean won | 1700000 | 1300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of other securities | 4880222 | 4024709 |
|  | 108399534 | 97135905 |
|  **Financial guarantee contracts** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit line | 6100082 | 4858585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of securities | 371200 | 495400 |
|  | 6471282 | 5353985 |
|  | 114870816 | 102489890 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

37.6 Other Matters (including litigation)

The Group has 38 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of W 1,053,503 million, and details of pending lawsuits in which the Group is a defendant as of December 31, 2022, are as follows:

*(In number of cases, in millions of Korean won)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Lawsuits** | **No. of<br>cases** | **Amount** | **Description of the lawsuits** | **Status of the lawsuits** |
|  Request for a return of redemption amount | 1 | 53239 | Kookmin Bank invested the assets entrusted by OO Asset Management and OO Investment Trust Management in the Fairfield Sentry Limited, and Fairfield Sentry Limited reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff (Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses).<br> Bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit against Kookmin Bank seeking to return the amount of redemptions received by Kookmin Bank through Fairfield Sentry Limited. | Application for incineration by the defendant has been denied, and further proceedings are scheduled. [Related litigation is in progress at the New York Southern District Bankruptcy Court (10-3777) at the written complaint review stage] |
|  Confirm the absence of debt | 1 | 96200 | Galamat-Art LLP is a joint guarantor of the PF loan for the 'Kazakhstan Almaty City Complex Development Project' in which Kookmin Bank participated as a lender. OO Bank, the agent bank of the lending group, filed a provisional seizure and a lawsuit on the merits of the guarantee debt to the local court against Galamat-Art LLP. And Galamat-Art LLP filed a counterclaim against the lenders, including Kookmin Bank, to confirm the absence of debt denying the joint guarantee obligation. | The Bank won the case in the first and second trials, and the plaintiff's appeal (appeal deadline: April 19, 2023) is being monitored. |
|  Expropriation of long-term leasehold rights | 1 | 316825 | The Bank invested assets entrusted by DAOL Asset Management Co., Ltd. in loans that are directly or indirectly collateralized by the building and land leasehold rights (hereinafter referred to as "the real estate in this case") of Union Station in Washington, D.C., the United States.<br> The Plaintiff, who is the operator of the railway facility, filed this lawsuit against the stakeholders of the real estate in this case, including the Bank, to expropriate the real estate in this case and determine indemnity. | The Bank submitted the response letter and will proceed with the process in the future. |
|  Others | 106 | 267703 | Others (excluding simple lawsuits related to the collection or management of loans) |  |
|  | 109 | 733967 |  |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**38. Subsidiaries** 

38.1 Details of subsidiaries as of December 31, 2022, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investor** | **Investee** | **Ownership<br>(%)** | **Location** | **Industry** |
|  Kookmin Bank | Kookmin Bank Cambodia Plc. | 100.00 | Cambodia | Banking and foreign exchange transaction |
|  Kookmin Bank | Kookmin Bank (China) Ltd. | 100.00 | China | Banking and foreign exchange transaction |
|  Kookmin Bank | KB Microfinance Myanmar Co., Ltd. | 100.00 | Myanmar | Microfinance services |
|  Kookmin Bank | KB Bank Myanmar Co., Ltd. | 100.00 | Myanmar | Banking and foreign exchange transaction |
|  Kookmin Bank, Kookmin Bank Cambodia Plc. | PRASAC Microfinance Institution Plc. | 100.00 | Cambodia | Microfinance services |
|  Kookmin Bank | PT Bank KB Bukopin Tbk | 67.00 | Indonesia | Banking and foreign exchange transaction |
|  PT Bank KB Bukopin Tbk | PT Bank Syariah Bukopin | 92.78 | Indonesia | Banking |
|  PT Bank KB Bukopin Tbk | PT Bukopin Finance | 97.04 | Indonesia | Installment financing |
|  Kookmin Bank | Orient Kwang-yang Co., Ltd. <sup>2</sup> | 36.16 | Korea | Building of ships |
|  Orient Kwang-yang Co., Ltd. | YoulChon Clean Energy Co., Ltd. | 100.00 | Korea | Other power generation |
|  Kookmin Bank | Personal pension trust and 10 others <sup>1</sup> | 0.00 | Korea | Trust |
|  Kookmin Bank | KBL Incheon 1st L.L.C. and 48 others <sup>2</sup> | 0.00 | Korea | Asset-backed securitization and others |
|  Kookmin Bank | KB Wise Star Private Real Estate Feeder Fund No.1 <sup>2</sup> | 86.00 | Korea | Investment trust |
|  Kookmin Bank | Kiwoom Frontier Private Securities Fund No.10 (Bond) <sup>2</sup> | 99.36 | Korea | Investment trust |
|  Kookmin Bank | Woori SafePlus Private Securities Fund S-8 <sup>2</sup> | 90.85 | Korea | Investment trust |
|  Kookmin Bank | NH-Amundi Global Private Securities Investment Trust No.1 (USD) (Bond) <sup>2</sup> | 99.86 | Korea | Investment trust |
|  Kookmin Bank | Meritz Private Real Estate Fund No.9-2 <sup>2</sup> | 99.98 | Korea | Investment trust |
|  Kookmin Bank | AIP US Red Private Real Estate Trust No.10 <sup>2</sup> | 99.97 | Korea | Investment trust |
|  Kookmin Bank | KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative) <sup>2</sup> | 81.53 | Korea | Investment trust |
|  Kookmin Bank | KB Core Blind Private Real Estate Fund No.1 <sup>2</sup> | 90.09 | Korea | Investment trust |
|  KB Core Blind Private Real Estate Fund No.1 | KB Wise Star Real Estate Fund No.3 <sup>2</sup> | 46.65 | Korea | Investment trust |
|  Kookmin Bank | KB Global Private Real Estate Debt Fund No.3 (USD) <sup>2</sup> | 99.50 | Korea | Investment trust |
|  Kookmin Bank | Samsung SRA Private Real Estate Investment Trust No.28D <sup>2</sup> | 99.50 | Korea | Investment trust |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

38.1 Details of subsidiaries as of December 31, 2022, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| **Investor** | **Ownership<br>(%)** | **Location** | **Industry** |
|  Kookmin Bank<br> KB Global Private Real Estate Debt Fund No.10 <sup>2</sup> | 99.83 | Korea | Investment trust |
|  Kookmin Bank<br> KTB Global CREDebt No.52 <sup>2</sup> | 99.44 | Korea | Investment trust |
|  Kookmin Bank<br> Hyundai Invest KKR Europe Real Estate No.1-3 <sup>2</sup> | 99.01 | Korea | Investment trust |
|  Kookmin Bank<br> KBSTAR FKTB 5Y Duration Following ETF <sup>2</sup> | 99.60 | Korea | Investment trust |
|  Kookmin Bank<br> Vestas Investors Private Real Estate Fund Investment Trust No.69-3 <sup>2</sup> | 99.52 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR FKTB 5Y Duration Following ETF <sup>2</sup> | 99.60 | Korea | Investment trust |
|  Kookmin Bank<br> SHINHAN ASP PCF II Private Investment Trust No.2 (USD) <sup>2</sup> | 99.75 | Korea | Investment trust |
|  Kookmin Bank<br> Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1 <sup>2</sup> | 97.40 | Korea | Investment trust |
|  Kookmin Bank<br> Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-2 <sup>2</sup> | 97.40 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR KTB 10Y Futures ETF <sup>2</sup> | 65.13 | Korea | Investment trust |
|  Kookmin Bank<br> VI ESG Private Securities Investment Trust No.1 (Bond) <sup>2</sup> | 100.00 | Korea | Investment trust |
|  Kookmin Bank<br> SHINHAN Aim Private Real Estate Fund Investment Trust No.26-C (USD) <sup>2</sup> | 99.98 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR KTB 3Y Futures ETF <sup>2</sup> | 93.77 | Korea | Investment trust |
|  Kookmin Bank<br> SAMSUNG KODEX 10Y F-LKTB INVERSE ETF <sup>2</sup> | 95.53 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR Nov 2025 Term Credit ETF <sup>2</sup> | 65.45 | Korea | Investment trust |

---

<sup>1</sup> The Group controls the trust because it has power to determine the management performance of the trust and is exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of principal and fixed rate of return.

<sup>2</sup> The Group controls these investees because it is significantly exposed to variable returns from the investees' performance and has ability to affect those returns through its power.

The Group holds more than half of the ownership interests of Koreit BN Private Equity Fund and six other investment trusts but does not have the power over relevant activities in accordance with agreements with trust and other shareholders, therefore these entities are not consolidated.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

38.2 The condensed financial information of major subsidiaries as of and for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Profit (loss) for<br>the period** |
|  Kookmin Bank Cambodia Plc. | 677093 | 536616 | 140477 | 40295 | 13581 |
|  Kookmin Bank (China) Ltd. | 3666107 | 3164601 | 501506 | 230027 | (869) |
|  KB Microfinance Myanmar Co., Ltd. | 20111 | 9475 | 10636 | 5379 | (1164) |
|  PRASAC Microfinance Institution Plc. | 6083323 | 4999794 | 1083529 | 1095307 | 233852 |
|  PT Bank KB Bukopin Tbk | 6533161 | 6661179 | (128018) | 410422 | (802084) |
|  KB Bank Myanmar Co., Ltd. | 262478 | 13655 | 248823 | 3252 | (1333) |
|  Personal pension trust and 10 others | 4120682 | 4077223 | 43459 | 115566 | (76182) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Profit (loss) for<br>the period** |
|  Kookmin Bank Cambodia Plc. | 559442 | 440502 | 118940 | 28032 | 11694 |
|  Kookmin Bank (China) Ltd. | 3812297 | 3295555 | 516742 | 182989 | 14064 |
|  KB Microfinance Myanmar Co., Ltd. | 16549 | 3507 | 13042 | 6020 | (6249) |
|  PRASAC Microfinance Institution Plc. | 5128845 | 4329971 | 798874 | 796169 | 205342 |
|  PT Bank KB Bukopin Tbk | 6958949 | 6320222 | 638727 | 413973 | (272526) |
|  KB Bank Myanmar Co., Ltd. | 242396 | 8409 | 233987 | 480 | (3005) |
|  Personal pension trust and 10 others | 4381035 | 4261394 | 119641 | 95531 | 2333 |

---

38.3 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

38.3.1 The Bank has provided capital commitments to consolidated investment funds.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Capital commitments** | **Unused amount** |
|  Meritz Private Real Estate Fund No.9-2 | 63352 | 913 |
|  KTB Global CREDebt No.52(USD) | 63365 | 12564 |
|  Hyundai Invest KKR Europe Real Estate No.1-3(EUR) | 54048 | 19228 |
|  Vestas Investors Private Real Estate Fund Investment Trust No.69-3(USD)(FOF) | 81107 | 35139 |
|  SHINHAN ASP PCF II Private Investment Trust No.2 (USD) | 25346 | 4540 |
|  Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1 | 67258 | 53914 |
|  SHINHAN Aim Private Real Estate Fund Investment Trust No.26-C (USD) | 82375 | 63650 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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38.3.2 The Bank has provided purchase commitment and credit line to consolidated structured entities. The purchase commitment guarantees that the Bank will purchase and pay any remaining commercial paper securities issued by consolidated structured entities. The credit line agreement requires the Bank to provide loans under certain conditions if there is a reason for suspension of issuance of commercial paper securities or if consolidated structured entities become insolvency due to other reasons.

---

| | |
|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** |
|  KBL Incheon 1st L.L.C. | 101000 |
|  KB DTower 1st L.L.C. | 50510 |
|  KBH the 4th L.L.C. | 12200 |
|  Great Forest the 1st L.L.C. | 10200 |
|  KBH the 6th L.L.C. | 50106 |
|  Beomuh Landmark the 2nd L.L.C. | 45600 |
|  K Plus the 1st L.L.C. | 110279 |
|  KB Livv H 1st L.L.C. | 30097 |
|  Livv H 1st L.L.C. | 50152 |
|  KB Eagles 1st Co., Ltd. | 30097 |
|  KB Manchon Harrington Co., Ltd. | 6220 |
|  KB Livv l 1st Co., Ltd. | 15188 |
|  KB Cheongla Hill Co., Ltd. | 60550 |
|  KB Dong-in Central L.L.C. | 20094 |
|  KB Eagles 2nd Co., Ltd. | 50182 |
|  KBH Steal Co., Ltd. | 150204 |
|  KB Penta Co., Ltd. | 20910 |
|  KB Great Bear 1st L.L.C. | 10249 |
|  Ryan Mobility 1st L.L.C. | 50105 |
|  KB Chemical 1st Co., Ltd. | 50158 |
|  KB Harim 1st L.L.C. | 30139 |
|  KB Eagles 3rd Co., Ltd. | 50164 |
|  KB Winchest 1st Co., Ltd. | 10500 |
|  KB Dong-in Central 1st L.L.C. | 300 |
|  LEP 2nd Co., Ltd. | 10000 |
|  KB River County L.L.C. | 29000 |
|  KB Buamsamjung 1st Co., Ltd. | 36039 |
|  Liiv H 2nd Co., Ltd. | 30028 |
|  KB Sungnae 1st L.L.C. | 65000 |
|  JT Capital 7th Asset Securitization Specialty Company | 15600 |
|  KB Landscape 1st L.L.C. | 72900 |
|  KB Pride 1st L.L.C. | 23250 |
|  KB Pride 2nd L.L.C. | 30184 |
|  KB Moonheung 1st Co., Ltd. | 160 |
|  KB One West 1st Co., Ltd. | 1164 |
|  KB Cloud L.L.C. | 10831 |
|  K Gowoon Sekyo 1st Co., Ltd. | 644 |
|  K Gowoon Sekyo 2nd Co., Ltd. | 1341 |
|  KB Great29 1st Co., Ltd. | 57600 |
|  IDMB UNITED PTE.LTD. | 259797 |
|  Liiv H 3rd Co., Ltd. | 50595 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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38.3.3 The Group has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

38.4 Changes in Subsidiaries

NICE WONHO 1st Co., Ltd. and 24 other subsidiaries were newly included in the scope of consolidation, and KB Happy 1st L.L.C. and 28 other subsidiaries were excluded from the scope of consolidation for the year ended December 31, 2022.

38.5 Net Cash Flow from Changes in Subsidiaries

The net cash inflows arising from acquisition of subsidiaries and net cash inflows arising from disposal of subsidiaries are amounting to W 2,800 million and W 52,569 million for the year ended December 31, 2022, respectively.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**39. Unconsolidated Structured Entities** 

39.1 Nature, purpose, and activities of the unconsolidated structured entities and how the structured entities are financed, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Nature** | **Purpose** | **Activity** | **Method of financing** |
| Asset-backed securitization | Early cash generation through transfer of securitized assets<br>Fees earned through services to SPC, such as providing lines of credit and ABCP purchase commitments | Fulfillment of asset-backed securitization plan<br>Purchase and collection of securitized assets<br>Issuance and repayment of ABS and ABCP | Issuance of ABS and ABCP based on securitized assets |
| Structured financing | Granting PF loans to SOC and real estate<br>Granting loans to ships/aircrafts SPC<br>Project financing to M&A and others | Construction of SOC and real estate<br>Building ships, construction and purchase of aircrafts<br>M&A | Loan commitments through credit line, providing credit line, and investment agreements |
| Investment funds | Investment in beneficiary certificates<br>Investment in PEF and partnerships | Management of fund assets<br>Payment of fund fees and allocation of fund profits | Sales of beneficiary certificate instruments<br>Investment from general partners and limited partners |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

39.2 Details of scale of unconsolidated structured entities and nature of the risks associated with the Group's interests in unconsolidated structured entities as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Asset-backed**<br>**securitization** | **Structured**<br>**financing** | **Investment**<br>**funds** | **Total** |
|  **Total assets of unconsolidated structured entities** | 100277020 | 61285981 | 233155749 | 394718750 |
|  **Carrying amount in the financial statements** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 134560 | 34640 | 5094475 | 5263675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 424111 | 4852076 |  | 5276187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments | 7381323 |  |  | 7381323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in associates |  |  | 329626 | 329626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  | 616 | 2 | 618 |
|  | 7939994 | 4887332 | 5424103 | 18251429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 219641 | 1596011 | 78705 | 1894357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 2302 | 1561 | 97 | 3960 |
|  | 221943 | 1597572 | 78802 | 1898317 |
|  **Maximum exposure** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held \* | 7939994 | 4887332 | 5424103 | 18251429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase and investment commitments | 371200 |  | 4355121 | 4726321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees and unused line of credit | 6097582 | 1640709 |  | 7738291 |
|  | 14408776 | 6528041 | 9779224 | 30716041 |
|  Methods of determining the maximum exposure | Providing<br>lines of<br>credit /<br>Purchase<br>commitments/<br>Acceptances<br>and<br>guarantees /<br>Investment<br>commitments | Acceptances<br>and<br>guarantees /<br>Providing<br>lines of<br>credit | Purchase<br>commitments<br>/Investment<br>commitments |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

39.2 Details of scale of unconsolidated structured entities and nature of the risks associated with the Group's interests in unconsolidated structured entities as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Asset-backed**<br>**securitization** | **Structured**<br>**Financing** | **Investment**<br>**funds** | **Total** |
|  **Total assets of unconsolidated structured entities** | 99788024 | 52936733 | 135096320 | 287821077 |
|  **Carrying amount in the financial statements** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 167915 | 39047 | 3555696 | 3762658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 41068 | 5098265 |  | 5139333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments | 7471873 |  |  | 7471873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in associates |  |  | 285895 | 285895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  | 423 | 2 | 425 |
|  | 7680856 | 5137735 | 3841593 | 16660184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 330592 | 650834 | 86185 | 1067611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 437 |  |  | 437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 2532 | 3030 | 15 | 5577 |
|  | 333561 | 653864 | 86200 | 1073625 |
|  **Maximum exposure** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held \* | 7680856 | 5137735 | 3841593 | 16660184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase and investment commitments |  |  | 3863104 | 3863104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees and unused line of credit | 5353985 | 1636416 |  | 6990401 |
|  | 13034841 | 6774151 | 7704697 | 27513689 |
|  Methods of determining the maximum exposure | Providing<br>lines of<br>credit /<br>Purchase<br>commitments/<br>Acceptances<br>and<br>guarantees<br>and loan<br>commitments | Loan<br>commitments<br>/ Investment<br>commitments<br>/ Purchase<br>commitments<br>and<br>acceptances<br>and<br>guarantees | Investment<br>commitments |  |

---

\* Maximum exposure includes the asset amounts, after deducting loss (provisions for credit losses, impairment losses, and others), recognized in the consolidated financial statements of the Group. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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**40. Lease** 

40.1 The Group as a Lessee

40.1.1 Amounts recognized in the consolidated statements of financial position related to lease as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Right-of-use property and equipment: \* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | 371926 | 370146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles | 10507 | 10970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 4401 | 10018 |
|  | 386834 | 391134 |
|  Right-of-use intangible assets \* | 2602 | 3610 |
|  | 389436 | 394744 |
|  Lease liabilities \* | 372003 | 375472 |

---

\* Included in property and equipment, intangible assets, and other liabilities.

40.1.2 Amounts recognized in the consolidated statements of comprehensive income related to lease for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Depreciation and amortization of right-of-use assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | 192920 | 196687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles | 11035 | 11379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 5291 | 6672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible asset | 1007 | 1007 |
|  | 210253 | 215745 |
|  Interest expenses on the lease liabilities | 11153 | 10328 |
|  Expense relating to short-term lease | 3222 | 3094 |
|  Expense relating to lease of low-value assets that are not short-term lease | 3486 | 3060 |

---

Total cash outflows for lease for the years ended December 31, 2022 and 2021 are W 163,763 million and W 169,108 million, respectively.

40.2 The Group as an Operating Lessor

The future minimum lease payments to be received from the non-cancellable lease contracts as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Up to 1 year |  | 20875 |  | 20081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1-5 years |  | 29373 |  | 33211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over 5 years |  |  |  |  |
|  |  | 50248 |  | 53292 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

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**41. Related Party Transactions** 

According to Korean IFRS No.1024, the Group includes the Parent, the Parent's subsidiaries, associates, associates of the Parent's subsidiaries, associates of the Parent, key management personnel (including family members), and post-employment benefit plans of the Group and its related party companies in the scope of related parties. The Group discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the consolidated financial statements. Refer to Note 13 for details of investments in associates.

Key management personnel include the executives of the Parent Company and the executives (managing director and above) of the Bank, and companies where the executives and/or their close family members have control or joint control.

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  **Parent** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Fee and commission income | 9493 | 7440 |
|  | Other non-operating income | 1985 | 1638 |
|  | Interest expense | 6345 | 1708 |
|  | Other operating expenses |  | 273 |
|  | General and administrative expenses | 1262 | 926 |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Interest income | 7571 | 2897 |
|  | Fee and commission income | 26105 | 27878 |
|  | Gains on financial instruments at fair value through profit or loss | 235328 | 92627 |
|  | Other non-operating income | 4613 | 4371 |
|  | Interest expense | 4533 | 2020 |
|  | Fee and commission expense | 2353 | 785 |
|  | Losses on financial instruments at fair value through profit or loss | 168852 | 108706 |
|  | Provision for credit losses | 106 | 146 |
|  | Other non-operating expenses | 1 |  |
|  | General and administrative expenses | 3233 | 3242 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Asset Management Co., Ltd. | Fee and commission income | 2053 | 1959 |
|  | Gains on financial instruments at fair value through profit or loss | 1050 | 178 |
|  | Interest expense | 143 | 43 |
|  | Fee and commission expense | 3851 | 1703 |
|  | Losses on financial instruments at fair value through profit or loss | 9 | 98 |
|  | General and administrative expenses | 500 | 500 |
|  KB Real Estate Trust Co., Ltd. | Fee and commission income | 315 | 268 |
|  | Other non-operating income | 34 | 35 |
|  | Interest expense | 258 | 119 |
|  | Fee and commission expense | 1641 | 1806 |
|  KB Investment Co., Ltd. | Fee and commission income | 109 | 126 |
|  | Interest expense | 1647 | 344 |
|  KB Credit Information Co., Ltd. | Fee and commission income | 75 | 71 |
|  | Other non-operating income | 165 | 143 |
|  | Interest expense | 139 | 69 |
|  | Fee and commission expense | 18146 | 20953 |
|  | Other operating expenses | 16 |  |
|  KB Data System Co., Ltd. | Fee and commission income | 788 | 432 |
|  | Other non-operating income | 185 | 182 |
|  | Interest expense | 183 | 152 |
|  | Other operating expenses | 419 | 349 |
|  | General and administrative expenses | 110623 | 60374 |
|  KB Life Insurance Co., Ltd. | Interest income | 83 |  |
|  | Fee and commission income | 21447 | 17258 |
|  | Gains on financial instruments at fair value through profit or loss | 14050 | 8154 |
|  | Other non-operating income | 56 | 48 |
|  | Interest expense | 13 | 11 |
|  | Fee and commission expense | 579 | 956 |
|  | Losses on financial instruments at fair value through profit or loss | 2060 | 414 |
|  | Other operating expenses | 1 |  |
|  | Provision for credit losses | 224 |  |
|  | General and administrative expenses | 890 | 888 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Kookmin Card Co., Ltd. | Interest income | 9925 | 4985 |
|  | Fee and commission income | 161910 | 167764 |
|  | Gains on financial instruments at fair value through profit or loss | 2087 | 287 |
|  | Reversal of credit losses | 178 | 6 |
|  | Other non-operating income | 1473 | 1682 |
|  | Interest expense | 955 | 937 |
|  | Fee and commission expense | 1742 | 1222 |
|  | Losses on financial instruments at fair value through profit or loss | 1399 | 363 |
|  | Provision for credit losses |  | 327 |
|  | General and administrative expenses | 1469 | 1301 |
|  KB Savings Bank Co., Ltd. | Fee and commission income | 455 | 984 |
|  | Other non-operating income | 31 | 82 |
|  | Interest expense | 10 | 16 |
|  | General and administrative expenses | 3 | 6 |
|  KB Capital Co., Ltd. | Interest income | 2475 | 1529 |
|  | Fee and commission income | 3759 | 2900 |
|  | Reversal of credit losses |  | 245 |
|  | Other non-operating income | 171 | 155 |
|  | Interest expense | 248 | 74 |
|  | Fee and commission expense | 119 | 4 |
|  | Provision for credit losses | 28 |  |
|  | General and administrative expenses |  | 139 |
|  KB Insurance Co., Ltd. | Interest income | 569 | 303 |
|  | Fee and commission income | 27195 | 26351 |
|  | Gains on financial instruments at fair value through profit or loss | 137527 | 69366 |
|  | Reversal of credit losses | 9 |  |
|  | Other non-operating income | 2036 | 1842 |
|  | Interest expense | 1075 | 1592 |
|  | Fee and commission expense | 3953 | 2983 |
|  | Losses on financial instruments at fair value through profit or loss | 33916 | 1333 |
|  | Other operating expenses | 3 | 3 |
|  | Provision for credit losses |  | 10 |
|  | Other non-operating expenses |  | 11 |
|  | General and administrative expenses | 13745 | 13590 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Interest income | 66 | 46 |
|  | Fee and commission income | 146 | 103 |
|  | Gains on financial instruments at fair value through profit or loss | 33293 | 6968 |
|  | Other non-operating income | 89 |  |
|  | Interest expense | 4045 | 3736 |
|  | Fee and commission expense | 4136 | 4374 |
|  | Losses on financial instruments at fair value through profit or loss | 638 | 652 |
|  | General and administrative expenses | 963 | 604 |
|  KB STAR REIT Co., Ltd. | Interest income | 374 |  |
|  | Fee and commission income | 33 |  |
|  | Gains on financial instruments at fair value through profit or loss | 96 |  |
|  | Interest expense | 9 |  |
|  | Losses on financial instruments at fair value through profit or loss | 13565 |  |
|  KB Hanbando BTL Private Special Asset Fund No.1 | Fee and commission income | 108 | 119 |
|  KB AMP Infra Private Special Asset Fund No.1(FoFs) | Fee and commission income | 8 | 9 |
|  KB AMP Infra Private Special Asset Fund No.13(FoFs) | Fee and commission income | 5 | 1 |
|  KB Muni bond Private Securities Fund No.1 (USD) | Fee and commission income | 11 | 11 |
|  KB Global Private Real Estate Debt Fund No.1 | Fee and commission income | 11 | 10 |
|  KB Global Private Real Estate Debt Fund No.11 | Fee and commission income | 3 | 1 |
|  KB Global Private Real Estate Debt Fund No.15 | Fee and commission income | 10 | 2 |
|  KB Global Private Real Estate Debt Fund No.17 | Fee and commission income | 4 |  |
|  KB NA COMPASS Energy Private Special Asset Fund \* | Fee and commission income | 2 | 7 |
|  KB Star Office Private Real Estate Master Fund No.3 | Other operating income | 3276 |  |
|  | Interest expense |  | 3 |
|  KB Star Office Private Real Estate Feeder Fund No.4 | Interest income | 760 | 760 |
|  | Fee and commission income | 37 | 37 |
|  | Interest expense | 7 | 5 |
|  | Provision for credit losses | 1 | 1 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Global Core Bond Securities Feeder Fund(Bond) | Fee and commission income | 16 | 45 |
|  | Gains on financial instruments at fair value through profit or loss | 459 | 1020 |
|  | Losses on financial instruments at fair value through profit or loss | 61 | 280 |
|  KB Onkookmin Life Income 20 Feeder Fund (FoFs) | Gains on financial instruments at fair value through profit or loss |  | 266 |
|  | Losses on financial instruments at fair value through profit or loss |  | 48 |
|  KB Onkookmin Life Income 40 Feeder Fund (FoFs) | Gains on financial instruments at fair value through profit or loss |  | 261 |
|  | Losses on financial instruments at fair value through profit or loss |  | 41 |
|  KB New Renewable Energy Private Special Asset Fund No.1 | Fee and commission income | 9 | 8 |
|  KB North America Private Real Estate Debt Fund No.1 | Fee and commission income | 3 | 3 |
|  | Gains on financial instruments at fair value through profit or loss | 2202 | 2502 |
|  | Losses on financial instruments at fair value through profit or loss | 51 |  |
|  KB North America Private Real Estate Debt Fund No.3 | Fee and commission income | 10 | 10 |
|  | Gains on financial instruments at fair value through profit or loss | 9525 | 8580 |
|  | Losses on financial instruments at fair value through profit or loss | 2259 | 536 |
|  KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | Fee and commission income | 5 | 4 |
|  KB Global Infrastructure Synergy Private Special Asset Fund | Fee and commission income | 5 | 3 |
|  | Gains on financial instruments at fair value through profit or loss | 76 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB BMO Senior Loan Private Special Asset Fund No.1(FOF) | Fee and commission income | 10 | 8 |
|  | Gains on financial instruments at fair value through profit or loss | 2515 | 5722 |
|  | Losses on financial instruments at fair value through profit or loss | 2001 | 759 |
|  KB BMO Senior Loan Private Special Asset Fund No.2(USD) | Fee and commission income | 10 | 8 |
|  KB BMO Senior Loan Private Special Asset Fund No.4(USD) | Fee and commission income | 4 |  |
|  KB BMO Senior Loan Private Special Asset Fund No.5(FOF) | Fee and commission income | 6 |  |
|  KB New Renewable Green New Deal Private Special Asset No.2 | Fee and commission income | 8 | 2 |
|  KB Sinansan Line Private Special Asset Fund(SOC) | Fee and commission income | 23 | 12 |
|  KB Korea Short Term Premium Private Securities No.19(USD)(Bond) \* | Fee and commission income |  | 4 |
|  KB Korea Short Term Premium Private Securities No.21(USD)(Bond) \* | Fee and commission income | 1 | 5 |
|  KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* | Fee and commission income | 8 | 3 |
|  | Losses on financial instruments at fair value through profit or loss | 510 | 1306 |
|  KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* | Fee and commission income | 12 | 2 |
|  | Gains on financial instruments at fair value through profit or loss |  | 96 |
|  | Losses on financial instruments at fair value through profit or loss | 15167 |  |
|  KB Korea Short Term Premium Private Securities No.25(USD)(Bond) | Fee and commission income | 11 |  |
|  | Losses on financial instruments at fair value through profit or loss | 2891 |  |
|  KB Korea Short Term Premium Private Securities No.26(USD)(Bond) | Fee and commission income | 7 |  |
|  | Losses on financial instruments at fair value through profit or loss | 1839 |  |
|  KB Korea Short Term Premium Private Securities No.27(USD)(Bond) | Fee and commission income | 11 |  |
|  | Losses on financial instruments at fair value through profit or loss | 3502 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Korea Short Term Premium Private Securities No.28(USD)(Bond) \* | Fee and commission income | 10 |  |
|  | Losses on financial instruments at fair value through profit or loss | 11191 |  |
|  KB Korea Short Term Premium Private Securities No.32(USD)(Bond) | Fee and commission income | 5 |  |
|  | Gains on financial instruments at fair value through profit or loss | 5377 |  |
|  KB Korea Short Term Premium Private Securities No.33(USD)(Bond) | Gains on financial instruments at fair value through profit or loss | 1557 |  |
|  KB Multi Alpha Plus Private Fund No.1 | Fee and commission income | 8 | 6 |
|  KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | Fee and commission income | 23 | 8 |
|  KB New Deal Infra Private Special Asset Fund | Fee and commission income | 2 |  |
|  KB Korea Infrastructure Credit Guarantee Private Special Asset No.1 | Fee and commission income | 16 | 5 |
|  KB Wise Star Private Real Estate No.19 | Fee and commission income | 6 | 3 |
|  Hanwha Europe Credit Private Fund No.16 (FOF) | Gains on financial instruments at fair value through profit or loss | 514 | 36 |
|  | Losses on financial instruments at fair value through profit or loss | 746 | 175 |
|  KB Logistics Blind Private Real Estate Fund No.1 | Interest income | 1129 |  |
|  | Fee and commission income | 48 | 2 |
|  | Provision for credit losses | 2 |  |
|  KB Aircraft Private Special Asset Fund No.1 | Fee and commission income | 13 | 4 |
|  | Gains on financial instruments at fair value through profit or loss | 74 |  |
|  | Losses on financial instruments at fair value through profit or loss | 1761 | 3849 |
|  KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | Fee and commission income | 15 | 5 |
|  KB Oaktree Private Special Asset Fund No.3 | Fee and commission income | 2 |  |
|  KB GK Project Private Special Asset Fund No.3 | Fee and commission income | 44 |  |
|  KB AMP Infra Note Private Special Asset Fund No.14 | Fee and commission income | 5 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB ASF Infra Private Special Asset Fund(FoFs) | Fee and commission income | 1 |  |
|  | Gains on financial instruments at fair value through profit or loss | 48 |  |
|  | Losses on financial instruments at fair value through profit or loss | 587 |  |
|  KB Duke Private Special Asset Fund | Fee and commission income | 4 |  |
|  KB Star Reits Private Real Estate Feeder Fund No.1 | Fee and commission income | 2 |  |
|  KB Star Reits Private Real Estate Feeder Fund No.2 | Fee and commission income | 4 |  |
|  HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A. | Fee and commission income | 1 |  |
|  NB Private Debt Fund IV LUX (B) SCSP | Fee and commission income | 1 |  |
|  Mirova Eurofideme | Fee and commission income | 1 |  |
|  KB Senior Loan Private Fund No.1 \* | Fee and commission income |  | 1 |
|  KB Korea Short Term Premium Private Securities No.15(USD)(Bond) \* | Fee and commission income |  | 3 |
|  | Losses on financial instruments at fair value through profit or loss |  | 1614 |
|  KB Korea Short Term Premium Private Securities No.17(USD)(Bond) \* | Fee and commission income |  | 10 |
|  | Losses on financial instruments at fair value through profit or loss |  | 6153 |
|  **Associates** |  |  |  |
|  Korea Credit Bureau Co., Ltd. | Fee and commission income | 52 | 36 |
|  | Interest expense | 1 | 6 |
|  | Fee and commission expense | 1996 | 1860 |
|  | Other operating expenses | 15 | 11 |
|  Incheon Bridge Co., Ltd. | Interest income | 7516 | 4069 |
|  | Fee and commission income | 23 | 22 |
|  | Reversal of credit losses | 28 | 444 |
|  | Interest expense | 517 | 158 |
|  | Fee and commission expense | 6 | 6 |
|  | Losses on financial instruments at fair value through profit or loss | 4434 | 1374 |
|  Kendae Co., Ltd. | Other non-operating expenses | 3 |  |
|  Dongjo Co., Ltd. | Interest income | 9 |  |
|  Dae-A Leisure Co., Ltd. | Interest expense |  | 2 |
|  Skydigital Inc. | Fee and commission income | 3 | 3 |
|  Il-Kwang Electronic Materials Co., Ltd. | Other non-operating expenses | 1 |  |
|  So-Myung Recycling Co., Ltd. | Other non-operating expenses | 2 |  |
|  TMAPMOBILITY CO.,LTD. | Interest expense | 226 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB High-Tech Company Investment Fund | Interest expense | 3 | 8 |
|  Aju Good Technology Venture Fund | Interest expense | 108 | 27 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | Interest expense | 1 | 1 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | Interest expense | 4 | 3 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Interest expense | 6 | 17 |
|  KB Global Platform Fund | Interest expense | 114 | 39 |
|  WJ Private Equity Fund No.1 | Fee and commission income | 7 | 7 |
|  KB Bio Global Expansion Private Equity Fund No.1 | Interest expense | 9 |  |
|  KB Digital Platform Fund | Interest expense | 116 |  |
|  **Associate of Parent** |  |  |  |
|  KB Star Office Private Real Estate Investment Trust No.1 \* | Interest expense | 2 | 5 |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 | Interest income | 3098 |  |
|  | Interest expense | 60 |  |
|  | Provision for credit losses | 1 |  |
|  **Associates of Parent's subsidiaries** |  |  |  |
|  SY Auto Capital Co., Ltd. | Fee and commission income | 4 | 4 |
|  Food Factory Co., Ltd. | Interest income | 80 | 70 |
|  | Fee and commission income | 1 |  |
|  | Reversal of credit losses | 1 | 6 |
|  | Interest expense | 6 | 5 |
|  | Fee and commission expense |  | 2 |
|  BIKDIPEO CO.,LTD. | Interest expense | 1 |  |
|  Banksalad Co., Ltd. | Fee and commission income | 36 | 36 |
|  Spark Biopharma Inc. | Interest expense | 272 | 7 |
|  UPRISE, Inc. | Interest income |  | 5 |
|  | Reversal of credit losses |  | 1 |
|  | Interest expense | 3 | 1 |
|  Channel Corporation | Interest expense | 43 |  |
|  COSES GT Co., Ltd. | Interest income | 23 | 18 |
|  | Reversal of credit losses |  | 3 |
|  | Interest expense | 1 | 1 |
|  | Provision for credit losses | 3 |  |
|  KB No.17 Special Purpose Acquisition Company \* | Interest expense | 1 | 14 |
|  KB No.18 Special Purpose Acquisition Company \* | Interest expense | 5 | 20 |
|  KB No.19 Special Purpose Acquisition Company \* | Interest expense | 5 | 9 |
|  KB No.20 Special Purpose Acquisition Company \* | Interest expense | 22 | 15 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB No.21 Special Purpose Acquisition Company | Interest expense | 30 |  |
|  KB No.22 Special Purpose Acquisition Company | Interest expense | 1 |  |
|  KB No.23 Special Purpose Acquisition Company | Interest expense | 23 |  |
|  KB No.24 Special Purpose Acquisition Company | Interest expense | 1 |  |
|  SwatchOn Inc. \* | Fee and commission income | 5 | 8 |
|  | Interest expense | 5 | 10 |
|  Gomi corporation Inc. | Interest income | 61 | 19 |
|  | Fee and commission income | 1 |  |
|  | Interest expense | 2 | 1 |
|  | Provision for credit losses | 2 | 13 |
|  S&E bio Co., Ltd. | Interest expense | 2 | 1 |
|  Contents First Inc. | Interest income | 128 |  |
|  | Fee and commission income | 1 |  |
|  | Interest expense | 34 | 83 |
|  | Provision for credit losses | 1 |  |
|  GENINUS Inc. \* | Interest expense | 12 | 29 |
|  Mantisco Co., Ltd. | Interest expense | 1 | 1 |
|  Pin Therapeutics Inc. | Interest expense | 110 |  |
|  SuperNGine Co., Ltd. | Interest expense |  | 1 |
|  Desilo Inc. | Interest income | 9 | 1 |
|  | Provision for credit losses |  | 2 |
|  Turing Co., Ltd. | Interest expense | 1 | 1 |
|  IGGYMOB Co., Ltd. | Interest expense | 1 | 1 |
|  Kukka Co., Ltd. | Interest expense | 2 |  |
|  Zipdoc Inc. | Interest expense | 1 |  |
|  TeamSparta Inc. | Interest expense | 19 |  |
|  Chabot Mobility Co., Ltd. | Interest expense | 1 |  |
|  Wemade Connect Co., Ltd. | Interest expense | 81 |  |
|  Nextrade Co., Ltd. | Interest expense | 263 |  |
|  KB Pre IPO Secondary Venture Fund No.1 \* | Interest expense |  | 1 |
|  **Others** |  |  |  |
|  Retirement pension | Fee and commission income | 1352 | 1338 |
|  | Interest expense | 39 | 9 |

---

\* Excluded from the Group's related party as of December 31, 2022.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Parent** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Other assets | 97 | 71 |
|  | Deposits | 231056 | 518076 |
|  | Other liabilities | 828908 | 462800 |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Cash and due from financial institutions | 8116 | 4691 |
|  | Derivative assets | 134303 | 43797 |
|  | Loans measured at amortized cost (gross amount) | 141922 | 124527 |
|  | Allowances for credit losses | 358 | 201 |
|  | Other assets | 6186 | 5564 |
|  | Derivative liabilities | 33258 | 33338 |
|  | Deposits | 863614 | 535130 |
|  | Provisions | 36 | 90 |
|  | Other liabilities <sup>2</sup> | 29440 | 29920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Asset Management Co., Ltd. | Other assets | 413 | 422 |
|  | Deposits | 25950 | 13206 |
|  | Other liabilities <sup>3</sup> | 3911 | 1304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Real Estate Trust Co., Ltd. | Other assets | 2 | 3 |
|  | Deposits | 48600 | 103329 |
|  | Other liabilities <sup>4</sup> | 2276 | 3438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Deposits | 81064 | 100338 |
|  | Other liabilities | 707 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Credit Information Co., Ltd. | Deposits | 13430 | 4536 |
|  | Other liabilities | 5475 | 5656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Data System Co., Ltd. | Other assets | 317 | 215 |
|  | Deposits | 20924 | 17999 |
|  | Other liabilities | 7381 | 6150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Derivative assets | 773 | 5387 |
|  | Other assets | 1502 | 1519 |
|  | Derivative liabilities | 2060 | 168 |
|  | Deposits | 788 | 2608 |
|  | Provisions | 224 |  |
|  | Other liabilities <sup>5</sup> | 16096 | 21700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Derivative assets |  | 55 |
|  | Loans measured at amortized cost (gross amount) | 197647 | 71130 |
|  | Allowances for credit losses | 207 | 86 |
|  | Other assets | 22737 | 22043 |
|  | Derivative liabilities | 884 |  |
|  | Deposits | 110252 | 81641 |
|  | Borrowings | 3694 | 3492 |
|  | Provisions | 423 | 724 |
|  | Other liabilities | 55132 | 47443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Savings Bank Co., Ltd. | Other liabilities | 606 | 323 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2021** |
|  KB Capital Co., Ltd. | Loans measured at amortized cost (gross amount) | 45192 | 71130 |
|  | Allowances for credit losses | 52 | 156 |
|  | Other assets | 594 | 365 |
|  | Deposits | 708518 | 219312 |
|  | Provisions | 182 | 45 |
|  | Other liabilities | 3067 | 3006 |
|  KB Insurance Co., Ltd. | Derivative assets | 137320 | 37098 |
|  | Loans measured at amortized cost (gross amount) | 18390 | 17958 |
|  | Allowances for credit losses | 5 | 3 |
|  | Other assets | 12599 | 15707 |
|  | Derivative liabilities | 29632 | 3670 |
|  | Deposits | 65231 | 7854 |
|  | Borrowings <sup>7</sup> | 23000 | 23000 |
|  | Debentures |  | 29998 |
|  | Provisions | 7 | 18 |
|  | Other liabilities <sup>6</sup> | 18631 | 17757 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Derivative assets | 13582 | 6968 |
|  | Other assets | 3880 | 3815 |
|  | Derivative liabilities | 642 | 652 |
|  | Deposits | 7779 | 7634 |
|  | Debentures | 30000 | 30000 |
|  | Other liabilities | 43878 | 38100 |
|  KB STAR REIT Co., Ltd. | Other assets | 21 |  |
|  | Derivative liabilities | 8089 |  |
|  | Deposits | 35053 |  |
|  | Other liabilities | 1 |  |
|  KB Hanbando BTL Private Special Asset Fund No.1 | Other assets | 26 | 29 |
|  KB AMP Infra Private Special Asset Fund No.1(FoFs) | Other assets | 1 | 1 |
|  KB AMP Infra Private Special Asset Fund No.13(FoFs) | Other assets | 2 | 1 |
|  KB Muni bond Private Securities Fund No.1 (USD) | Other assets | 2 | 2 |
|  KB Global Private Real Estate Debt Fund No.1 | Other assets | 3 | 3 |
|  KB Global Private Real Estate Debt Fund No.11 | Other assets | 1 |  |
|  KB Global Private Real Estate Debt Fund No.15 | Other assets | 2 | 2 |
|  KB Global Private Real Estate Debt Fund No.17 | Other assets | 1 |  |
|  KB NA COMPASS Energy Private Special Asset Fund <sup>1</sup> | Other assets |  | 1 |
|  KB Star Office Private Real Estate Master Fund No.3 | Deposits |  | 171 |
|  | Other liabilities |  | 9 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2021** |
|  KB Star Office Private Real Estate Feeder Fund No.4 | Loans measured at amortized cost (gross amount) | 20000 | 20000 |
|  | Allowances for credit losses | 4 | 3 |
|  | Other assets | 13 | 11 |
|  | Deposits | 215 | 532 |
|  | Other liabilities | 4 | 1 |
|  KB Global Core Bond Securities Feeder Fund(Bond) | Derivative assets |  | 7 |
|  | Other assets | 2 | 4 |
|  | Derivative liabilities |  | 6 |
|  KB New Renewable Energy Private Special Asset Fund No.1 | Other assets | 2 | 2 |
|  KB North America Private Real Estate Debt Fund No.1 | Derivative assets |  | 1378 |
|  | Other assets | 1 | 1 |
|  | Derivative liabilities | 51 |  |
|  KB North America Private Real Estate Debt Fund No.3 | Derivative assets | 2411 | 1221 |
|  | Other assets | 3 | 2 |
|  KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | Other assets | 1 | 1 |
|  KB Global Infrastructure Synergy Private Special Asset Fund | Other assets | 1 | 1 |
|  KB BMO Senior Loan Private Special Asset Fund No.1(FOF) | Derivative assets |  | 3275 |
|  | Other assets | 3 | 2 |
|  | Derivative liabilities | 2001 |  |
|  KB BMO Senior Loan Private Special Asset Fund No.2(USD) | Other assets | 2 | 2 |
|  KB BMO Senior Loan Private Special Asset Fund No.4(USD) | Other assets | 2 |  |
|  KB BMO Senior Loan Private Special Asset Fund No.5(FOF) | Other assets | 3 |  |
|  KB New Renewable Green New Deal Private Special Asset No.2 | Other assets | 2 | 1 |
|  KB Sinansan Line Private Special Asset Fund(SOC) | Other assets | 7 | 4 |
|  KB Korea Short Term Premium Private Securities No.19(USD)(Bond) <sup>1</sup> | Other assets |  | 2 |
|  KB Korea Short Term Premium Private Securities No.21(USD)(Bond) <sup>1</sup> | Other assets |  | 2 |
|  KB Korea Short Term Premium Private Securities No.22(USD)(Bond) <sup>1</sup> | Other assets |  | 1 |
|  | Derivative liabilities |  | 1306 |
|  KB Korea Short Term Premium Private Securities No.23(USD)(Bond) <sup>1</sup> | Derivative assets |  | 96 |
|  | Other assets |  | 2 |
|  KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) | Other assets | 5 |  |
|  | Derivative liabilities | 2891 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2021** |
|  KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) | Other assets | 3 |  |
|  | Derivative liabilities | 1839 |  |
|  KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) | Other assets | 5 |  |
|  | Derivative liabilities | 3502 |  |
|  KB Korea Short Term Premium Private Securities Fund No.32(USD)(Bond) | Derivative assets | 5377 |  |
|  | Other assets | 5 |  |
|  KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) | Derivative assets | 1557 |  |
|  KB Multi Alpha Plus Private Fund No.1 | Other assets | 2 | 2 |
|  KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | Other assets | 6 | 7 |
|  KB New Deal Innovation Fund | Other assets | 1 |  |
|  KB Korea Infrastructure Credit Guarantee Private Special Asset No.1 | Other assets | 3 | 2 |
|  Hanwha Europe Credit Private Fund No.16 (FOF) | Derivative assets |  | 9 |
|  | Derivative liabilities | 744 | 119 |
|  KB Logistics Blind Private Real Estate Fund No.1 | Loans measured at amortized cost (gross amount) | 52500 |  |
|  | Allowances for credit losses | 2 |  |
|  | Other assets | 374 | 2 |
|  KB Aircraft Private Special Asset Fund No.1 | Other assets | 2 | 2 |
|  | Derivative liabilities | 5096 | 3835 |
|  KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | Other assets | 1 | 1 |
|  KB GK Project Private Special Asset Fund No.3 | Other assets | 5 |  |
|  KB AMP Infra Note Private Special Asset Fund No.14 | Other assets | 1 |  |
|  | Derivative liabilities | 479 |  |
|  KB Duke Private Special Asset Fund | Other assets | 1 |  |
|  KB Star Reits Private Real Estate Feeder Fund No.1 | Other assets | 2 |  |
|  KB Star Reits Private Real Estate Feeder Fund No.2 | Other assets | 4 |  |
|  HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A. | Other assets | 1 |  |
|  NB Private Debt Fund IV LUX (B) SCSP | Other assets | 1 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Associates** |  |  |  |
|  Korea Credit Bureau Co., Ltd. | Deposits | 27889 | 10200 |
|  Incheon Bridge Co., Ltd. | Financial assets at fair value through profit or loss | 32948 | 37382 |
|  | Loans measured at amortized cost (gross amount) | 95200 | 114100 |
|  | Allowances for credit losses | 8 | 25 |
|  | Other assets | 615 | 423 |
|  | Deposits | 48639 | 35487 |
|  | Provisions | 7 | 18 |
|  | Other liabilities | 446 | 99 |
|  Jungdo Co., Ltd. | Deposits | 4 | 4 |
|  Dae-A Leisure Co., Ltd. | Deposits | 154 | 17 |
|  Iwon Alloy Co., Ltd. | Deposits | 1 |  |
|  Computerlife Co., Ltd. | Deposits | 3 |  |
|  Skydigital Inc. | Deposits | 10 | 85 |
|  Jo Yang Industrial Co., Ltd. | Deposits |  | 1 |
|  TMAPMOBILITY CO.,LTD. | Deposits | 30000 |  |
|  | Other liabilities | 76 |  |
|  KB High-Tech Company Investment Fund | Deposits | 688 | 1504 |
|  Aju Good Technology Venture Fund | Deposits | 7222 | 6286 |
|  | Other liabilities | 73 | 10 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | Deposits | 317 | 904 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | Deposits | 674 | 2088 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Deposits | 1526 | 1524 |
|  | Other liabilities | 1 |  |
|  KB Global Platform Fund | Deposits | 19655 | 26823 |
|  | Other liabilities | 12 | 5 |
|  WJ Private Equity Fund No.1 | Other assets | 2 | 2 |
|  | Deposits | 221 | 260 |
|  KB Bio Global Expansion Private Equity Fund No.1 | Deposits | 1400 |  |
|  | Other liabilities | 9 |  |
|  KB Digital Platform Fund | Deposits | 15000 |  |
|  | Other liabilities | 2 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Associate of Parent** |  |  |  |
|  KB Star Office Private Real Estate Investment Trust No.1 <sup>1</sup> | Deposits |  | 2578 |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 | Loans measured at amortized cost (gross amount) | 149294 |  |
|  | Allowances for credit losses | 1 |  |
|  | Other assets | 3208 |  |
|  **Associates of Parent's subsidiaries** |  |  |  |
|  SY Auto Capital Co., Ltd. | Deposits | 10 | 17 |
|  RAND Bio Science Co., Ltd. | Deposits | 3 | 443 |
|  Food Factory Co., Ltd. | Loans measured at amortized cost (gross amount) | 3337 | 3545 |
|  | Allowances for credit losses | 4 | 4 |
|  | Other assets | 4 | 2 |
|  | Deposits | 664 | 839 |
|  | Other liabilities | 1 | 6 |
|  Acts Co., Ltd. <sup>1</sup> | Deposits |  | 154 |
|  Paycoms Co., Ltd. | Deposits | 1 | 1 |
|  Big Dipper Co., Ltd. | Deposits | 19 |  |
|  Spark Biopharma Inc. | Deposits | 17534 | 6015 |
|  | Other liabilities | 91 | 3 |
|  Wyatt Corp. | Deposits | 1 | 1 |
|  UPRISE, Inc. | Deposits | 27 | 4001 |
|  CellinCells Co., Ltd. | Deposits | 37 | 38 |
|  Channel Corporation | Deposits | 3000 |  |
|  | Other liabilities | 21 |  |
|  COSES GT Co., Ltd. | Loans measured at amortized cost (gross amount) | 500 | 500 |
|  | Allowances for credit losses | 4 | 2 |
|  | Other assets | 2 | 1 |
|  | Deposits | 1213 | 1939 |
|  KB No.17 Special Purpose Acquisition Company <sup>1</sup> | Deposits |  | 1687 |
|  | Other liabilities |  | 12 |
|  KB No.18 Special Purpose Acquisition Company <sup>1</sup> | Deposits |  | 2077 |
|  | Other liabilities |  | 12 |
|  KB No.19 Special Purpose Acquisition Company <sup>1</sup> | Deposits |  | 1013 |
|  | Other liabilities |  | 5 |
|  KB No.20 Special Purpose Acquisition Company <sup>1</sup> | Deposits |  | 1681 |
|  | Other liabilities |  | 3 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2021** |
|  KB No.21 Special Purpose Acquisition Company | Deposits | 2263 |  |
|  | Other liabilities | 29 |  |
|  KB No.22 Special Purpose Acquisition Company | Deposits | 1948 |  |
|  KB No.23 Special Purpose Acquisition Company | Deposits | 2205 |  |
|  | Other liabilities | 22 |  |
|  KB No.24 Special Purpose Acquisition Company | Deposits | 9983 |  |
|  | Other liabilities | 1 |  |
|  SwatchOn Inc. <sup>1</sup> | Deposits |  | 686 |
|  Gomi corporation Inc. | Loans measured at amortized cost (gross amount) | 2200 | 2200 |
|  | Allowances for credit losses | 15 | 12 |
|  | Other assets | 5 | 4 |
|  | Deposits | 915 | 3188 |
|  | Other liabilities | 1 | 1 |
|  S&E bio Co., Ltd. | Deposits | 6419 | 263 |
|  | Other liabilities | 1 |  |
|  4N Inc. | Deposits | 5 | 39 |
|  Contents First Inc. | Loans measured at amortized cost (gross amount) | 10017 |  |
|  | Allowances for credit losses | 1 |  |
|  | Other assets | 2 |  |
|  | Deposits | 5010 | 12650 |
|  | Other liabilities | 21 | 57 |
|  December & Company Inc. | Deposits | 1 | 1 |
|  GENINUS Inc. <sup>1</sup> | Deposits |  | 34415 |
|  | Other liabilities |  | 2 |
|  Mantisco Co., Ltd. | Deposits | 623 | 386 |
|  Pin Therapeutics Inc. | Deposits | 6033 |  |
|  | Other liabilities | 18 |  |
|  G1 Playground Co., Ltd. | Deposits |  | 354 |
|  SuperNGine Co., Ltd. | Deposits | 17 | 944 |
|  Desilo Inc. | Loans measured at amortized cost (gross amount) | 300 | 301 |
|  | Allowances for credit losses | 2 | 2 |
|  | Deposits | 1 | 168 |
|  Turing Co., Ltd. | Deposits | 2788 | 1054 |
|  IGGYMOB Co., Ltd. | Deposits | 254 | 2938 |
|  ZIPDOC Inc. | Deposits | 915 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,<br>2022** | **December 31,<br>2021** |
|  TeamSparta Inc. | Deposits | 12502 |  |
|  | Other liabilities | 6 |  |
|  Chabot Mobility Co., Ltd. | Deposits | 86 |  |
|  Wemade Connect Co., Ltd. | Deposits | 10370 |  |
|  | Other liabilities | 28 |  |
|  Nextrade Co., Ltd. | Deposits | 56202 |  |
|  | Other liabilities | 263 |  |
|  KB Pre IPO Secondary Venture Fund No.1 <sup>1</sup> | Deposits |  | 103 |
|  **Key management personnel** | Loans measured at amortized cost (gross amount) | 4391 | 3252 |
|  | Allowances for credit losses | 2 | 2 |
|  | Other assets | 6 | 3 |
|  | Deposits | 11974 | 11757 |
|  | Provisions | 1 | 1 |
|  | Other liabilities | 284 | 255 |
|  **Others** |  |  |  |
|  Retirement pension | Other assets | 778 | 369 |
|  | Other liabilities | 10141 | 5014 |

---

<sup>1</sup> Excluded from the Group's related party as of December 31, 2022.

<sup>2</sup> Non-controlling interests classified as liabilities include W 1,919 million and W 3,089 million as of December 31, 2022 and 2021, respectively.

<sup>3</sup> Non-controlling interests classified as liabilities include W 1,077 million and W 986 million as of December 31, 2022 and 2021, respectively.

<sup>4</sup> Non-controlling interests classified as liabilities include W 1,919 million and W 3,085 million as of December 31, 2022 and 2021, respectively.

<sup>5</sup> Non-controlling interests classified as liabilities include W 14,978 million and W 20,355 million as of December 31, 2022 and 2021, respectively.

<sup>6</sup> Non-controlling interests classified as liabilities include W 5,385 million and W 4,931 million as of December 31, 2022 and 2021, respectively.

<sup>7</sup> This is the carrying amount of liabilities held through a subsidiary, a company specialized in asset-backed securitization, and the related underlying assets after deducting allowance for credit losses is W 22,931 million. The carrying amount of the asset and liability is determined as a reasonable approximation of its fair value. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.3 Details of right-of-use assets and lease liabilities with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Right-of-use assets | 21927 | 26565 |
|  | Lease liabilities | 26825 | 31814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Right-of-use assets | 108 | 200 |
|  | Lease liabilities | 29 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Right-of-use assets |  | 3797 |
|  | Lease liabilities |  | 3963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Right-of-use assets | 6971 | 9168 |
|  | Lease liabilities | 7021 | 9042 |
|  **Associate of Parent** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Star-Lord General Investors Private Real Estate Investment Company No.10 | Right-of-use assets | 3563 |  |
|  | Lease liabilities | 3707 |  |

---

41.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Notional amount of derivative financial instruments | 2820272 | 2360006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Notional amount of derivative financial instruments | 57629 | 163227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Notional amount of derivative financial instruments | 126730 | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Notional amount of derivative financial instruments | 2192657 | 1356044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Notional amount of derivative financial instruments | 258928 | 407653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB STAR REIT Co., Ltd. | Notional amount of derivative financial instruments | 420280 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Core Bond Securities Feeder Fund(Bond) | Notional amount of derivative financial instruments |  | 25796 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  KB North America Private Real Estate Debt Fund No.1 | Notional amount of derivative financial instruments | 31683 | 29638 |
|  KB North America Private Real Estate Debt Fund No.3 | Notional amount of derivative financial instruments | 104552 | 293411 |
|  KB BMO Senior Loan Private Special Asset Fund No.1(FOF) | Notional amount of derivative financial instruments | 38112 | 60822 |
|  KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* | Notional amount of derivative financial instruments |  | 23941 |
|  KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* | Notional amount of derivative financial instruments |  | 82985 |
|  KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) | Notional amount of derivative financial instruments | 51554 |  |
|  KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) | Notional amount of derivative financial instruments | 38653 |  |
|  KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) | Notional amount of derivative financial instruments | 64632 |  |
|  KB Korea Short Term Premium Private Securities Fund No.32(USD)(Bond) | Notional amount of derivative financial instruments | 103538 |  |
|  KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) | Notional amount of derivative financial instruments | 54494 |  |
|  Hanwha Europe Credit Private Fund No.16 (FOF) | Notional amount of derivative financial instruments | 35081 | 15254 |
|  KB Aircraft Private Special Asset Fund No.1 | Notional amount of derivative financial instruments | 123949 | 136328 |
|  KB ASF Infra Private Special Asset Fund(FoFs) | Notional amount of derivative financial instruments | 6011 |  |

---

\* Excluded from the Group's related party as of December 31, 2022.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.5 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** |
| *(In millions of Korean won)* | **Beginning** | **Loan** | **Collection** | **Others** | **Ending** |
|  **Parent's subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | 124527 | 1035932 | 1003576 | (14961) | 141922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | 17958 | 475 | 3 | (40) | 18390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | 71130 | 270676 | 147431 | 3272 | 197647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | 71130 | 9708 | 41709 | 6063 | 45192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | 20000 |  |  |  | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 |  | 52500 |  |  | 52500 |
|  **Associates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | 151482 |  | 18900 | (4434) | 128148 |
|  **Associate of Parent** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Star-Lord General Investors Private Real Estate Investment Company No.10 |  | 150000 |  | (706) | 149294 |
|  **Associates of Parent's subsidiaries** | **Associates of Parent's subsidiaries** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. | 3545 | 1500 | 1707 | (1) | 3337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. | 500 |  |  |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. | 2200 |  |  |  | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. | 301 |  |  | (1) | 300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. |  | 10000 |  | 17 | 10017 |
|  **Key management personnel <sup>2</sup>**  | 3252 | 1041 | 2038 | 2136 | 4391 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** |
| *(In millions of Korean won)* | **Beginning** | **Loan** | **Collection** | **Others** | **Ending** |
|  **Parent's subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | 97803 | 829086 | 807840 | 5478 | 124527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. |  | 18200 | 300 | 58 | 17958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | 39930 | 86033 | 41551 | -13282 | 71130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | 54400 | 11441 |  | 5289 | 71130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | 20000 |  |  |  | 20000 |
|  **Associates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | 171756 |  | 18900 | (1374) | 151482 |
|  **Associates of Parent's subsidiaries** | **Associates of Parent's subsidiaries** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. | 3193 | 388 | 37 | 1 | 3545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. | 500 |  | 500 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. | 500 |  |  |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. |  | 2200 |  |  | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. |  | 300 |  | 1 | 301 |
|  **Key management personnel <sup>2</sup>**  | 4599 | 2432 | 1752 | (2027) | 3252 |

---

<sup>1</sup> Transactions between related parties, such as settlements arising from operating activities and daylight overdraft to be repaid on the day of handling, are excluded.

<sup>2</sup> Includes loan transactions that occurred before they became related parties.

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  **Parent** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Deposits | 518076 | 950000 | 950000 | (287020) | 231056 |
|  **Parent's subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Deposits | 535130 | 109580 | 75000 | 293904 | 863614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Asset Management Co., Ltd. | Deposits | 13206 |  |  | 12744 | 25950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Real Estate Trust Co., Ltd. | Deposits | 103329 |  |  | (54729) | 48600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Deposits | 100338 | 195000 | 203000 | (11274) | 81064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Credit Information Co., Ltd. | Deposits | 4536 | 5599 | 1425 | 4720 | 13430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Data System Co., Ltd. | Deposits | 17999 | 10714 | 12744 | 4955 | 20924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Deposits | 2608 |  |  | (1820) | 788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Deposits | 81641 | 22000 | 26742 | 33353 | 110252 |
|  | Borrowings | 3492 | 22000 | 22000 | 202 | 3694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | Deposits | 219312 |  |  | 489206 | 708518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Deposits | 7854 | 1537 | 1828 | 57668 | 65231 |
|  | Borrowings | 23000 |  |  |  | 23000 |
|  | Debentures | 29998 |  | 30000 | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Deposits | 7634 |  |  | 145 | 7779 |
|  | Debentures | 30000 |  |  |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.3 | Deposits | 171 |  | 171 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | Deposits | 532 |  | 318 | 1 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB STAR REIT Co., Ltd. | Deposits |  |  |  | 35053 | 35053 |
|  **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | Deposits | 10200 |  |  | 17689 | 27889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Deposits | 35487 | 29217 | 15000 | (1065) | 48639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. | Deposits | 4 |  |  |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. | Deposits | 17 |  |  | 137 | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Iwon Alloy Co., Ltd. | Deposits |  |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Computerlife Co., Ltd. | Deposits |  |  |  | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. | Deposits | 85 |  |  | (75) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. | Deposits | 1 |  |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund | Deposits | 1504 |  |  | (816) | 688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | Deposits | 6286 | 6577 | 3840 | (1801) | 7222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | Deposits | 904 |  |  | (587) | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | Deposits | 2088 |  |  | (1414) | 674 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Deposits | 1524 |  |  | 2 | 1526 |
|  KB Global Platform Fund | Deposits | 26823 |  |  | (7168) | 19655 |
|  WJ Private Equity Fund No.1 | Deposits | 260 |  |  | (39) | 221 |
|  TMAPMOBILITY CO.,LTD. | Deposits |  | 80000 | 50000 |  | 30000 |
|  KB Bio Global Expansion Private Equity Fund No.1 | Deposits |  | 1400 |  |  | 1400 |
|  KB Global Platform Fund | Deposits |  | 59000 | 44000 |  | 15000 |
|  **Associate of Parent** |  |  |  |  |  |  |
|  KB Star Office Private Real Estate Investment Trust No.1 <sup>2</sup> | Deposits | 2578 |  | 2578 |  |  |
|  **Associates of Parent's subsidiaries** |  |  |  |  |  |  |
|  SY Auto Capital Co., Ltd. | Deposits | 17 |  |  | (7) | 10 |
|  RAND Bio Science Co., Ltd. | Deposits | 443 |  |  | (440) | 3 |
|  Food Factory Co., Ltd. | Deposits | 839 | 511 | 1018 | 332 | 664 |
|  Acts Co., Ltd. <sup>2</sup> | Deposits | 154 |  |  | (154) |  |
|  Paycoms Co., Ltd. | Deposits | 1 |  |  |  | 1 |
|  Big Dipper Co., Ltd. | Deposits |  | 300 | 300 | 19 | 19 |
|  Spark Biopharma Inc. | Deposits | 6015 | 41165 | 27539 | (2107) | 17534 |
|  Wyatt Corp. | Deposits | 1 |  |  |  | 1 |
|  UPRISE, Inc. | Deposits | 4001 |  |  | (3974) | 27 |
|  CellinCells Co., Ltd. | Deposits | 38 |  |  | (1) | 37 |
|  COSES GT Co., Ltd. | Deposits | 1939 |  |  | (726) | 1213 |
|  KB No.17 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1687 |  | 1546 | (141) |  |
|  KB No.18 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 2077 |  | 2016 | (61) |  |
|  KB No.19 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1013 |  | 1000 | (13) |  |
|  KB No.20 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1681 |  | 1534 | (147) |  |
|  KB No.21 Special Purpose Acquisition Company | Deposits |  | 2000 |  | 263 | 2263 |
|  KB No.22 Special Purpose Acquisition Company | Deposits |  |  |  | 1948 | 1948 |
|  KB No.23 Special Purpose Acquisition Company | Deposits |  | 2133 |  | 72 | 2205 |
|  SwatchOn Inc. <sup>2</sup> | Deposits | 686 |  |  | (686) |  |
|  Gomi corporation Inc. | Deposits | 3188 |  |  | (2273) | 915 |
|  S&E bio Co., Ltd. | Deposits | 263 | 50 |  | 6106 | 6419 |
|  4N Inc. | Deposits | 39 |  |  | (34) | 5 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  Contents First Inc. | Deposits | 12650 | 10000 | 16000 | (1640) | 5010 |
|  December & Company Inc. | Deposits | 1 |  |  |  | 1 |
|  GENINUS Inc. <sup>2</sup> | Deposits | 34415 |  |  | (34415) |  |
|  Mantisco Co., Ltd. | Deposits | 386 |  |  | 237 | 623 |
|  Pin Therapeutics Inc. | Deposits |  | 21000 | 16200 | 1233 | 6033 |
|  G1 Playground Co., Ltd. | Deposits | 354 |  |  | (354) |  |
|  SuperNGine Co., Ltd. | Deposits | 944 |  |  | (927) | 17 |
|  Desilo Inc. | Deposits | 168 |  |  | (167) | 1 |
|  Turing Co., Ltd. | Deposits | 1054 |  |  | 1734 | 2788 |
|  IGGYMOB Co., Ltd. | Deposits | 2938 |  |  | (2684) | 254 |
|  KB Pre IPO Secondary Venture Fund No.1 <sup>2</sup> | Deposits | 103 |  |  | (103) |  |
|  ZIPDOC Inc. | Deposits |  |  |  | 915 | 915 |
|  TeamSparta Inc. | Deposits |  | 9000 | 4000 | 7502 | 12502 |
|  Chabot Mobility Co., Ltd. | Deposits |  |  |  | 86 | 86 |
|  Wemade Connect Co., Ltd. | Deposits |  | 11010 | 3267 | 2627 | 10370 |
|  Wise Asset Management Co., Ltd | Deposits |  | 6 | 6 |  |  |
|  Channel Corporation | Deposits |  | 6000 | 3000 |  | 3000 |
|  KB No.24 Special Purpose Acquisition Company Co., Ltd. | Deposits |  |  |  | 9983 | 9983 |
|  Nextrade Co., Ltd. | Deposits |  | 56200 |  | 2 | 56202 |
|  **Key management personnel <sup>3</sup>** | Deposits | 11757 | 14214 | 12345 | (1652) | 11974 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  **Parent** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Deposits | 23084 | 200000 | 200000 | 494992 | 518076 |
|  **Parent's subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Deposits | 464584 | 75000 | 157117 | 152663 | 535130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Asset Management Co., Ltd. | Deposits | 6915 |  |  | 6291 | 13206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Real Estate Trust Co., Ltd. | Deposits | 71261 |  |  | 32068 | 103329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Deposits | 93970 | 236000 | 234000 | 4368 | 100338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Credit Information Co., Ltd. | Deposits | 5340 | 2231 | 2025 | (1010) | 4536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Data System Co., Ltd. | Deposits | 17561 | 11744 | 12500 | 1194 | 17999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Deposits | 2085 |  |  | 523 | 2608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Deposits | 92490 | 27574 | 25500 | (12923) | 81641 |
|  | Borrowings |  | 3492 |  |  | 3492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | Deposits | 190331 |  |  | 28981 | 219312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Deposits | 3365 | 3266 |  | 1223 | 7854 |
|  | Borrowings |  | 23000 |  |  | 23000 |
|  | Debentures | 29994 |  |  | 4 | 29998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Deposits | 303 |  |  | 7331 | 7634 |
|  | Debentures | 30000 |  |  |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.3 | Deposits | 171 |  |  |  | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | Deposits | 532 |  |  |  | 532 |
|  **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | Deposits | 19982 |  | 1000 | (8782) | 10200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Deposits | 39520 | 15000 | 20000 | 967 | 35487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. | Deposits | 4 |  |  |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. | Deposits | 636 |  | 479 | (140) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. | Deposits | 15 |  |  | 70 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. | Deposits | 2 |  |  | (1) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund | Deposits | 12695 |  |  | (11191) | 1504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | Deposits | 3093 | 3840 | 1442 | 795 | 6286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | Deposits | 923 |  |  | (19) | 904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | Deposits | 1801 |  |  | 287 | 2088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Deposits | 8097 |  |  | (6573) | 1524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | Deposits | 20197 |  |  | 6626 | 26823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neomio Corp. <sup>2</sup> | Deposits | 535 |  |  | (535) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 | Deposits | 349 |  |  | (89) | 260 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  **Associate of Parent** |  |  |  | **—** |  |  |
|  KB Star Office Private Real Estate Investment Trust No.1 <sup>2</sup> | Deposits | 4255 |  | 1770 | 93 | 2578 |
|  **Associates of Parent's subsidiaries** |  |  |  |  |  |  |
|  SY Auto Capital Co., Ltd. | Deposits | 6 |  |  | 11 | 17 |
|  KB No.17 Special Purpose Acquisition Company<sup>2</sup> | Deposits | 1711 | 1546 | 1525 | (45) | 1687 |
|  KB No.18 Special Purpose Acquisition Company<sup>2</sup> | Deposits | 2101 | 2016 | 2063 | 23 | 2077 |
|  KB No.19 Special Purpose Acquisition Company<sup>2</sup> | Deposits | 1053 | 1000 | 1000 | (40) | 1013 |
|  KB No.20 Special Purpose Acquisition Company<sup>2</sup> | Deposits | 1716 | 1534 | 1522 | (47) | 1681 |
|  RAND Bio Science Co., Ltd. | Deposits | 693 |  | 400 | 150 | 443 |
|  Food Factory Co., Ltd. | Deposits | 1555 | 507 | 500 | (723) | 839 |
|  Acts Co., Ltd. <sup>2</sup> | Deposits | 18 |  |  | 136 | 154 |
|  Paycoms Co., Ltd. | Deposits | 1 |  |  |  | 1 |
|  Big Dipper Co., Ltd. | Deposits | 1 |  |  | (1) |  |
|  Wyatt Corp. | Deposits | 1 |  |  |  | 1 |
|  Stratio, Inc. | Deposits | 13 |  |  | (13) |  |
|  UPRISE, Inc. | Deposits | 11 |  |  | 3990 | 4001 |
|  CellinCells Co., Ltd. | Deposits | 260 |  |  | (222) | 38 |
|  COSES GT Co., Ltd. | Deposits | 292 |  |  | 1647 | 1939 |
|  SwatchOn Inc. <sup>2</sup> | Deposits | 3947 | 200 | 3501 | 40 | 686 |
|  Gomi corporation Inc. | Deposits | 37 |  |  | 3151 | 3188 |
|  S&E bio Co., Ltd. | Deposits | 1142 |  |  | (879) | 263 |
|  KB Pre IPO Secondary Venture Fund No.1<sup>2</sup> | Deposits | 629 |  |  | (526) | 103 |
|  4N Inc. | Deposits | 76 |  |  | (37) | 39 |
|  Contents First Inc. | Deposits | 1823 | 20000 | 11000 | 1827 | 12650 |
|  December & Company Inc. | Deposits | 1 |  |  |  | 1 |
|  GENINUS Inc. <sup>2</sup> | Deposits | 13630 |  | 5000 | 25785 | 34415 |
|  Mantisco Co., Ltd. | Deposits |  |  |  | 386 | 386 |
|  Spark Biopharma Inc. | Deposits |  | 1000 | 3000 | 8015 | 6015 |
|  G1 Playground Co., Ltd. | Deposits |  |  |  | 354 | 354 |
|  SuperNGine Co., Ltd. | Deposits |  |  |  | 944 | 944 |
|  Desilo Inc. | Deposits |  |  |  | 168 | 168 |
|  Turing Co., Ltd. | Deposits |  |  |  | 1054 | 1054 |
|  IGGYMOB Co., Ltd. | Deposits |  |  |  | 2938 | 2938 |
|  **Key management personnel <sup>3</sup>**  | Deposits | 11023 | 9974 | 9568 | 328 | 11757 |

---

<sup>1</sup> Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount. 

<sup>2</sup> Excluded from the Group's related party as of December 31, 2022.

<sup>3</sup> Includes borrowing transactions that occurred before they became related parties.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2022** |
| *(In millions of Korean won)* | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hanbando BTL Private Special Asset Fund No.1 |  | 19510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hope Sharing BTL Private Special Asset Fund |  | 1416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund |  | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.3 |  | 3276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 |  | 2412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Core Bond Securities Feeder Fund(Bond) |  | 42737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Energy Private Special Asset Fund No.1 | 3492 | 1794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Mezzanine Private Securities Fund No.3 |  | 16240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Wise Star Jongno Tower Real Estate Master Fund \* |  | 112639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Koreit BN Private Equity Fund |  | 2440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | 2452 | 2746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.2(USD) |  | 2092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.19(USD)(Bond) \* |  | 23985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.21(USD)(Bond) \* |  | 36102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* |  | 24433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* |  | 85433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) | 47672 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) | 35910 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) | 59980 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.28(USD)(Bond) \* | 95368 | 108180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Sinansan Line Private Special Asset Fund(SOC) | 31808 | 2490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Green New Deal Private Special Asset No.2 | 22350 | 1447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Multi Alpha Plus Private Fund No.1 |  | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | 20703 | 1959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Infra Private Special Asset Fund | 10199 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | 25812 | 1463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | 50000 | 48800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GK Project Private Special Asset Fund No.3 |  | 89410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.4(USD) | 38828 | 404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.2 | 5107 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Reits Private Real Estate Feeder Fund No.2 | 65000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR US Short-Term IG Corporate Bond ETF | 20000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.32 | 107312 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR Nov 2023 Term Credit ETF | 180581 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) | 52816 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.34(USD)(Bond) | 63420 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | |
|:---|:---|:---|
|  | **2022** | **2022** |
| *(In millions of Korean won)* | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Associates** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund |  | 1700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund |  | 1300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund |  | 5400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 2600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund |  | 2430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 6400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | 9748 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 8000 | 6150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 12000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | 6000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | 14000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | 6000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | 9600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TMAPMOBILITY CO.,LTD. | 200000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Prime Digital Platform Fund | 2600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Scale Up Fund II | 4500 |  |
|  **Associate of Parent** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Investment Trust No.1 \* |  | 42118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company |  | 21177 |
|  **Associate of Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Stonebridge Secondary Private Equity Fund | 2497 | 2409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NAU Special Situation Corporate Restructuring Private Equity Fund | 440 | 2044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Co-Investment Private Equity Fund No.1 | 6320 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NP Green ESG New Technology Venture Capital Fund | 2805 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | |
|:---|:---|:---|
|  | **2021** | **2021** |
| *(In millions of Korean won)* | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT KB DATA SYSTEMS INDONESIA | 145 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hanbando BTL Private Special Asset Fund No.1 |  | 20448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hope Sharing BTL Private Special Asset Fund |  | 1647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund |  | 476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Senior Loan Private Fund No.1 \* |  | 5844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.3 |  | 3569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 |  | 2474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Core Bond Securities Feeder Fund(Bond) |  | 22134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Energy Private Special Asset Fund No.1 |  | 1793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Mezzanine Private Securities Fund No.3 | 22235 | 42562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Wise Star Jongno Tower Real Estate Master Fund \* |  | 2093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Koreit BN Private Equity Fund |  | 898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | 1896 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.2(USD) | 6727 | 1657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.15(USD)(Bond) \* |  | 23660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.17(USD)(Bond) \* |  | 71240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.19(USD)(Bond) \* | 22088 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.21(USD)(Bond) \* | 33213 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* | 22556 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* | 71112 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Sinansan Line Private Special Asset Fund(SOC) | 29156 | 2757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Green New Deal Private Special Asset No.2 | 12349 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Multi Alpha Plus Private Fund No.1 | 10000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | 33147 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Infra Private Special Asset Fund | 408 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | 31111 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | 49000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Commerce Private Equity Investment Fund | 7000 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | |
|:---|:---|:---|
|  | **2021** | **2021** |
| *(In millions of Korean won)* | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Associates** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. |  | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | 279 | 9584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GwS Private Securities Investment Trust \* |  | 147785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KoFC POSCO Hanwha KB Shared Growth Private Equity Fund No.2 \* |  | 9488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund |  | 2800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund |  | 11450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund |  | 4769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 2400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | 1650 | 2880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | 1125 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 5000 | 5400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 13500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-UTC Inno-Tech Venture Fund | 3390 | 750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Pre-IPO New Technology Business Investment Fund No.2 | 7500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 27000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bio Global Expansion Private Equity Fund No.1 | 10000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | 3000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | 12600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | 600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | 4000 |  |
|  **Associate of Parent** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Investment Trust No.1 \* |  | 1246 |
|  **Associate of Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Stonebridge Secondary Private Equity Fund | 7576 | 9039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NAU Special Situation Corporate Restructuring Private Equity Fund | 2564 |  |

---

\* Excluded from the Group's related party as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Loan commitments in Korean won | 140000 | 140000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Loss sharing agreements | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Loan commitments in Korean won | 100000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Loan commitments in Korean won | 820000 | 820000 |
|  | Other commitments in Korean won | 1700000 | 1300000 |
|  | Other commitments in foreign currency | 44515 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | Other commitments in foreign currency | 40381 | 13041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Loan commitments in Korean won | 20528 | 21000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Energy Private Special Asset Fund No.1 | Purchase of securities | 3010 | 6502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Mezzanine Private Securities Fund No.3 | Purchase of securities | 8006 | 8006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | Purchase of securities | 1968 | 4343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Infra Private Special Asset Fund No.5 | Purchase of securities | 24999 | 24999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Infra Private Special Asset Fund No.6 | Purchase of securities | 24999 | 24999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.2(USD) | Purchase of securities | 29 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Green New Deal Private Special Asset No.2 | Purchase of securities | 5301 | 27651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Sinansan Line Private Special Asset Fund(SOC) | Purchase of securities | 200988 | 232796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | Purchase of securities | 3554 | 14287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Infra Private Special Asset Fund | Purchase of securities | 7492 | 17692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | Purchase of securities |  | 68889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GK Project Private Special Asset Fund No.3 | Purchase of securities | 23 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.2 | Purchase of securities | 94893 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Associates** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Loan commitments in Korean won | 20000 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | Purchase of securities |  | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | Purchase of securities | 5140 | 14887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | Purchase of securities |  | 8000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Together Korea Fund No.2 | Purchase of securities | 990000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | Purchase of securities | 7000 | 19000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Scale Up Fund II | Purchase of securities | 25500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | Purchase of securities | 6000 | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | Purchase of securities | 113400 | 127400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | Purchase of securities | 23400 | 29400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | Purchase of securities | 6400 | 16000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Prime Digital Platform Fund | Purchase of securities | 10400 |  |
|  **Associates of Parent Company** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | Purchase of securities | 6154 | 6154 |
|  **Associates of Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Stonebridge Secondary Private Equity Fund | Purchase of securities | 691 | 3188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NAU Special Situation Corporate Restructuring Private Equity Fund | Purchase of securities | 5096 | 5536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Co-Investment Private Equity Fund No.1 | Purchase of securities | 13680 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Badgers Future Mobility ESG Fund No.1 | Purchase of securities | 19050 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NP Green ESG New Technology Venture Capital Fund | Purchase of securities | 12195 |  |
|  **Key management personnel** | Loan commitments in Korean won | 833 | 808 |

---

41.9 Acceptances and guarantees and unused commitments provided by related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Loss sharing agreements | 7008 | 7561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Real Estate Trust Co., Ltd. | Purchase of securities | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Purchase of securities | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Purchase of securities | 95 | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Purchase of securities |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Asset Management Co., Ltd. | Purchase of securities |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Loan commitment in Korean won | 82354 | 88283 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.10 Details of compensation to key management personnel for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Short-term**<br>**employee**<br>**benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Total** |
|  Registered directors (executive) | 1963 | 44 | 1034 | 3041 |
|  Registered directors (non-executive) | 420 |  |  | 420 |
|  Non-registered directors | 9801 | 344 | 7563 | 17708 |
|  | 12184 | 388 | 8597 | 21169 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Short-term**<br>**employee**<br>**benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Total** |
|  Registered directors (executive) | 1898 | 84 | 2670 | 4652 |
|  Registered directors (non-executive) | 395 |  |  | 395 |
|  Non-registered directors | 7042 | 405 | 7131 | 14578 |
|  | 9335 | 489 | 9801 | 19625 |

---

41.11 Major types of transactions between the Group and the related parties include deposit taking transactions, loan transactions such as general purpose loans, corporate purchase loans, B2B loans, etc., settlements of funds arising from overseas remittance, providing credit line through the acceptance of letter of credit issued by the Bank, and overdraft accounts arising from net settlement agreement between the Bank and KB Kookmin Card Co., Ltd.

41.12 Details of collateral provided to related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Assets pledged \*** | **Carrying**<br>**amount** | **Collateralized**<br>**amount** | **Carrying**<br>**amount** | **Collateralized**<br>**amount** |
|  **Parent's subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Securities | 62209 | 62000 | 54143 | 54000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Securities | 25425 | 25000 | 25813 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Securities | 47745 | 50000 | 49982 | 50000 |

---

\* Collaterals related to lease contracts arising from operating activities between related parties are excluded.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

41.13 Details of collateral provided by related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Assets held as collateral <sup>1</sup>** | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Time deposits /Beneficiary right certificate | 167000 | 167000 |
|  | Securities | 129196 | 25135 |
|  | Real estate <sup>2</sup> |  | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Securities | 120000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Time deposits | 22000 | 22000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Securities | 250000 | 90000 |
|  | Real estate | 24570 | 24570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Credit Information Co., Ltd. | Time deposits and others | 2228 | 2054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Securities | 18159 | 20008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | Real estate | 24000 | 24000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | Real estate | 63000 |  |
|  **Key management personnel** | Time deposits and others | 457 | 745 |
|  | Real estate | 5165 | 3818 |

---

<sup>1</sup> Collaterals related to lease contracts arising from operating activities between related parties are excluded.

<sup>2</sup> Related to KB Wise Star Jongno Tower Real Estate Master Fund, a subsidiary of KB Securities Co., Ltd.

As of December 31, 2022, Incheon Bridge Co., Ltd., a related party, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to W 611,000 million to the project financing group consisting of the Bank and 5 other institutions, and as subordinated collateral amounting to W 384,800 million to subordinated debt holders consisting of the Bank and 2 other institutions. Also, it provides certificate of credit guarantee amounting to W 400,000 million as collateral to the project financing group consisting of the Bank and 5 other institutions.

41.14 The amounts of debt securities and others purchased through KB securities Co., Ltd. are W 7,341,904 million and W 9,642,170 million for the years ended December 31, 2022 and 2021, respectively, and the amounts of debt securities and others sold through KB securities Co., Ltd. are W 3,791,778 million and W 9,005,607 million for the years ended December 31, 2022 and 2021, respectively. In addition, KB Securities Co., Ltd. acquired W 50,000 million and W 185,000 million of debentures issued by the Bank through underwriting for the years ended December 31, 2022 and 2021, respectively.

41.15 The amounts of intangible assets and others purchased from KB Data System Co., Ltd. are W 42,947 million and W 24,420 million for the years ended December 31, 2022 and 2021, respectively.

41.16 The Bank has entered into CLS (Continuous Linked Settlement) service agreement with KB Securities Co., Ltd. and accordingly the Bank is able to provide intraday liquidity of USD 500 million on the condition of repayment on the day of payment.

41.17 The Bank and KB Kookmin Card Co., Ltd. are jointly and severally liable for the liabilities of the Bank before the spin-off date.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank and Subsidiaries**

**Notes to the Consolidated Financial Statements**

**December 31, 2022 and 2021**

------

**42. Approval of Issuance of the Consolidated Financial Statements** 

The issuance of the Group's consolidated financial statements as of and for the year ended December 31, 2022, was approved by the board of directors on February 6, 2023.

------

##### [**Table of Contents**](#toc)
**Exhibit 99.2** 

**Kookmin Bank** 

**(A wholly owned subsidiary of KB Financial Group Inc.)** 

**Separate Financial Statements** 

**December 31, 2022 and 2021** 

**(With Independent Auditors' Report Thereon)** 

------

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

---

| | |
|:---|:---|
|  | **Page** |
|  [Independent Auditors' Report](#ex99_2toc472896_1) | 1 |
|  [Separate Statements of Financial Position](#ex99_2toc472896_2) | 3 |
|  [Separate Statements of Comprehensive Income](#ex99_2toc472896_3) | 4 |
|  [Separate Statements of Changes in Equity](#ex99_2toc472896_4) | 5 |
|  [Separate Statements of Cash Flows](#ex99_2toc472896_5) | 6 |
|  [Notes to the Separate Financial Statements](#ex99_2toc472896_6) | 7 |
|  [Independent Auditors' Review Report on Internal Control over Financial Reporting](#ex99_2toc472896_7) | 209 |
|  [Operating Status Report of the Internal Control over Financial Reporting](#ex99_2toc472896_8) | 210 |

---

------

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

<u>Based on a report originally issued in Korean</u> 

To the Shareholder and Board of Directors

Kookmin Bank

**Opinion** 

We have audited the separate financial statements of Kookmin Bank ("The Bank"), which comprise the statements of financial position as of December 31, 2022 and 2021, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

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

**Basis for Opinion** 

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
**Auditors' Responsibilities for the Audit of the Separate Financial Statements** 

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

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

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

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

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

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

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

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

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 7, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> This report is effective as of March 7, 2023, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Separate Statements of Financial Position** 

**December 31, 2022 and 2021** 

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Notes** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 246736 | W | 22296244 | W | 22368904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 46812 |  | 18154550 |  | 14782128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 469 |  | 7747794 |  | 2960174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 4681011 |  | 363839085 |  | 349438762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments | 46812 |  | 74026021 |  | 62584129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in associates and subsidiaries | 1338 |  | 2747295 |  | 2964238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment | 14 |  | 3529134 |  | 3606188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment property | 14 |  | 119323 |  | 97651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 15 |  | 493279 |  | 472253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit assets | 23 |  | 307749 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax assets | 32 |  | 187017 |  | 51191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held for sale | 17 |  | 30971 |  | 44159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 4618 |  | 6865013 |  | 5403620 |
|  **Total assets** |  | W | 500343475 | W | 464773397 |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 46 | W | 108862 | W | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 469 |  | 7294787 |  | 2740904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 4619 |  | 368100984 |  | 349615372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 4620 |  | 43664670 |  | 31073908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 4621 |  | 27999416 |  | 26891141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions | 22 |  | 494238 |  | 421792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit liabilities | 23 |  | 451 |  | 138505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax liabilities | 32 |  | 5671 |  | 5696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities | 1632 |  | 105436 |  | 640082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 462430 |  | 19015179 |  | 20515698 |
|  **Total liabilities** |  |  | 466789694 |  | 432155796 |
|  **Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital stock | 25 |  | 2021896 |  | 2021896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid securities | 25 |  | 873850 |  | 574523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus | 25 |  | 5220031 |  | 5220031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 2534 |  | (86385) |  | 1362438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 253334 |  | 25524389 |  | 23438713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Provision of regulatory reserve for credit losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Provision of regulatory reserve for credit losses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2022 : W 2,715,060 million |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2021 : W 2,434,041 million) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Amounts estimated to be appropriated |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2022 : W 70,905 million |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2021 : W 281,019 million) |  |  |  |  |  |
|  **Total equity** |  |  | 33553781 |  | 32617601 |
|  **Total liabilities and equity** |  | W | 500343475 | W | 464773397 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Separate Statements of Comprehensive Income** 

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

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  Interest income |  | W | 13962022 | W | 9490842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at fair value <br>through other comprehensive income and amortized cost |  |  | 13764254 |  | 9416081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income from financial instruments at fair value <br>through profit or loss |  |  | 197768 |  | 74761 |
|  Interest expense |  |  | (5402820) |  | (2359527) |
|  **Net interest income** | 26 |  | 8559202 |  | 7131315 |
|  Fee and commission income |  |  | 1512230 |  | 1572185 |
|  Fee and commission expense |  |  | (411404) |  | (383553) |
|  **Net fee and commission income** | 27 |  | 1100826 |  | 1188632 |
|  **Net gains on financial instruments <br>at fair value through profit or loss** | 28 |  | 354180 |  | 352958 |
|  **Net other operating expenses** | 29 |  | (929600) |  | (818957) |
|  **General and administrative expenses** | 1415233039 |  | (4294337) |  | (4007668) |
|  **Operating income before provision for credit losses** | **Operating income before provision for credit losses** |  | 4790271 |  | 3846280 |
|  Provision for credit losses | 711121822 |  | (461350) |  | (356563) |
|  **Net operating income** |  |  | 4328921 |  | 3489717 |
|  Net non-operating income (expenses) | 31 |  | (372517) |  | 5395 |
|  **Profit before income tax expense** |  |  | 3956404 |  | 3495112 |
|  Income tax expense | 32 |  | (1048184) |  | (931754) |
|  **Profit for the period** |  |  | 2908220 |  | 2563358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Adjusted profit after provision of regulatory <br>reserve for credit losses | 25 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2022 : W 2,837,315 million |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2021 : W 2,282,339 million) |  |  |  |  |  |
|  *Items that will not be reclassified to profit or loss:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities | 23 |  | 177890 |  | (72946) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on equity securities at fair value through <br>other comprehensive income |  |  | (953990) |  | 873707 |
|  *Items that may be subsequently reclassified to profit or loss:* | *Items that may be subsequently reclassified to profit or loss:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  | (2022) |  | 3957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on debt securities at fair value through <br>other comprehensive income |  |  | (461689) |  | (278186) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on cash flow hedging instruments | 9 |  | 34010 |  | 9984 |
|  **Other comprehensive income (loss) for the period, net of tax** | 34 |  | (1205801) |  | 536516 |
|  **Total comprehensive income for the period** |  | W | 1702419 | W | 3099874 |

---

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Separate Statements of Changes in Equity** 

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

------

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Capital stock** | **Capital stock** | **Hybrid<br>securities** | **Hybrid<br>securities** | **Capital<br>surplus** | **Capital<br>surplus** | **Accumulated<br>other<br>comprehensive<br>income** | **Accumulated<br>other<br>comprehensive<br>income** | **Retained<br>earnings** | **Retained<br>earnings** | **Total equity** | **Total equity** |
|  **Balance as of January 1, 2021** | W | 2021896 | W | 574523 | W | 5220031 | W | 594413 | W | 22048949 | W | 30459812 |
|  **Comprehensive income for the period** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the period |  |  |  |  |  |  |  |  |  | 2563358 |  | 2563358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  | (72946) |  |  |  | (72946) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on equity securities at fair value through other comprehensive income |  |  |  |  |  |  |  | 1105216 |  | (231509) |  | 873707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  |  |  |  |  |  | 3957 |  |  |  | 3957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on debt securities at fair value through other comprehensive income |  |  |  |  |  |  |  | (278186) |  |  |  | (278186) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on cash flow hedging instruments |  |  |  |  |  |  |  | 9984 |  |  |  | 9984 |
|  **Total comprehensive income for the period** |  |  |  |  |  |  |  | 768025 |  | 2331849 |  | 3099874 |
|  **Transactions with the shareholder** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends |  |  |  |  |  |  |  |  |  | (917941) |  | (917941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  | (24144) |  | (24144) |
|  **Total transactions with the shareholder** |  |  |  |  |  |  |  |  |  | (942085) |  | (942085) |
|  **Balance as of December 31, 2021** | W | 2021896 | W | 574523 | W | 5220031 | W | 1362438 | W | 23438713 | W | 32617601 |
|  **Balance as of January 1, 2022** | W | 2021896 | W | 574523 | W | 5220031 | W | 1362438 | W | 23438713 | W | 32617601 |
|  **Comprehensive income for the period** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the period |  |  |  |  |  |  |  |  |  | 2908220 |  | 2908220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities |  |  |  |  |  |  |  | 177890 |  |  |  | 177890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on equity securities at fair value through other comprehensive income |  |  |  |  |  |  |  | (1197012) |  | 243022 |  | (953990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency translation differences |  |  |  |  |  |  |  | (2022) |  |  |  | (2022) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on debt securities at fair value through other comprehensive income |  |  |  |  |  |  |  | (461689) |  |  |  | (461689) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on cash flow hedging instruments |  |  |  |  |  |  |  | 34010 |  |  |  | 34010 |
|  **Total comprehensive income for the period** |  |  |  |  |  |  |  | (1448823) |  | 3151242 |  | 1702419 |
|  **Transactions with the shareholder** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends |  |  |  |  |  |  |  |  |  | (1031167) |  | (1031167) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  |  | 299327 |  |  |  |  |  |  |  | 299327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities |  |  |  |  |  |  |  |  |  | (34399) |  | (34399) |
|  **Total transactions with the shareholder** |  |  |  | 299327 |  |  |  |  |  | (1065566) |  | (766239) |
|  **Balance as of December 31, 2022** | W | 2021896 | W | 873850 | W | 5220031 | W | (86385) | W | 25524389 | W | 33553781 |

---

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Separate Statements of Cash Flows** 

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

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Korean won)* | **Notes** | **2022** | **2022** | **2021** | **2021** |
|  **Cash flows from operating activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the period |  | W | 2908220 | W | 2563358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for non-cash items |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains on financial instruments at fair value through profit or loss |  |  | (117361) |  | (177546) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net losses (gains) on derivative financial investments for hedging purposes |  |  | (28984) |  | 13132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses |  |  | 461348 |  | 356845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net losses on financial investments |  |  | 20230 |  | 3524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses (gains) on associates and subsidiaries |  |  | 358195 |  | (58661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense |  |  | 510059 |  | 503939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net losses (gains) on property and equipment/intangible assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net losses (gains) on property and equipment/intangible assets |  | (40824) |  | 11493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payment |  |  | 15169 |  | 27995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits |  |  | 166670 |  | 156340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income |  |  | 167910 |  | 449005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on foreign currency translation |  |  | 340123 |  | 15571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses |  |  | 68788 |  | 22309 |
|  |  |  | 1921323 |  | 1323946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss |  |  | (1982538) |  | (1635278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial instrument |  |  | 184288 |  | 123501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | (13434569) |  | (30960817) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax assets |  |  | (122778) |  | (1856) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deffered income tax assets |  |  |  |  | 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 236 |  | (1301903) |  | 908254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss |  |  | (11865) |  | (34192) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  |  | 17791562 |  | 29270074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liabilities |  |  | (77560) |  | 115357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  |  | (1706320) |  | 3300650 |
|  |  |  | (661683) |  | 1085853 |
|  **Net cash inflow from operating activities** |  |  | 4167860 |  | 4973157 |
|  **Cash flows from investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instrument for hedging purposes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instrument for hedging purposes |  | (3446) |  | (1414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial assets at fair value through profit or loss |  |  | 8584309 |  | 6823184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial assets at fair value through profit or loss |  |  | (9904210) |  | (7512552) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of financial investments |  |  | 17547994 |  | 42078221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of financial investments |  |  | (31557734) |  | (46260973) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of investments in associates and subsidiaries |  |  | 32334 |  | 178338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of investments in associates and subsidiaries |  |  | (272448) |  | (865083) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of property and equipment |  |  | 11819 |  | (1298) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and equipment |  |  | (177608) |  | (168197) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of intangible assets |  |  | 245 |  | 1834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets |  |  | (64579) |  | (82209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 19545 |  | (17397) |
|  **Net cash outflow from investing activities** |  |  | (15783779) |  | (5827546) |
|  **Cash flows from financing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instrument for hedging purposes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash flows from derivative financial instrument for hedging purposes |  | 33287 |  | 5870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in borrowings |  |  | 12013037 |  | 5338985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in debentures |  |  | 16118240 |  | 12447222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in debentures |  |  | (15190127) |  | (10607722) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of dividends |  |  | (1031167) |  | (917941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; decrease in other payables to trust accounts |  |  | (877097) |  | (511379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of hybrid securities |  |  | 299327 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 522076 |  | (261499) |
|  **Net cash inflow from financing activities** |  |  | 11887576 |  | 5493536 |
|  **Effect of exchange rate changes on cash and cash equivalents** | 236 |  | (150554) |  | 258712 |
|  **Net increase in cash and cash equivalents** |  |  | 121103 |  | 4897859 |
|  **Cash and cash equivalents at the beginning of the period** | 236 |  | 21872041 |  | 16974182 |
|  **Cash and cash equivalents at the end of the period** | 236 | W | 21993144 | W | 21872041 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**1. The Bank** 

Kookmin Bank (the "Bank") was incorporated in 1963 under the Citizens National Bank Act to provide banking services to the general public and to small and medium-sized enterprises. Pursuant to the Repeal Act of the Citizens National Bank Act, effective January 5, 1995, the Bank's status changed to a financial institution which operates under the Banking Act and Commercial Act.

The Bank merged with Korea Long Term Credit Bank on December 31, 1998, and with its subsidiaries, Daegu, Busan, Jeonnam Kookmin Mutual Savings & Finance Co., Ltd., on August 22, 1999. Pursuant to the directive from the Financial Services Commission related to the Structural Improvement of the Financial Industry Act, the Bank acquired certain assets, including performing loans, and assumed most of the liabilities of Daedong Bank on June 29, 1998. Also, the Bank completed the merger with Housing and Commercial Bank ("H&CB") on October 31, 2001, and merged with Kookmin Credit Card Co., Ltd., a majority-owned subsidiary, on September 30, 2003. Meanwhile, the Bank spun off its credit card business segment on February 28, 2011, and KB Kookmin Card Co., Ltd. became a subsidiary of KB Financial Group Inc.

The Bank listed its shares on the Stock Market Division of the Korea Exchange ("KRX") in September 1994. As a result of the merger with H&CB, the shareholders of the former Kookmin Bank and H&CB received new common shares of the Bank which were relisted on the KRX on November 9, 2001. In addition, H&CB listed its American Depositary Shares ("ADS") on the New York Stock Exchange ("NYSE") on October 3, 2000, prior to the merger. Following the merger with H&CB, the Bank listed its ADS on the NYSE on November 1, 2001. The Bank became a wholly owned subsidiary of KB Financial Group Inc. through a comprehensive stock transfer on September 29, 2008. Subsequently, the Bank's shares and its ADS, each listed on the KRX and the NYSE, were delisted on October 10, 2008 and September 26, 2008, respectively. As of December 31, 2022, the Bank's paid-in capital is W 2,021,896 million.

The Bank engages in the banking business in accordance with the Banking Act, trust business in accordance with the Financial Investment Services and Capital Markets Act, mobile virtual network business in accordance with Special Act on Support for Financial Innovation, and other relevant businesses. As of December 31, 2022, the Bank operates its Seoul headquarters and 856 domestic branches, and nine overseas branches (excluding six subsidiaries and one office).

**2. Basis of Preparation** 

**2.1 Application of Korean IFRS** 

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

The separate financial statements have been prepared in accordance with Korean IFRS No.1027 *Separate Financial Statements*.

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

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

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

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

The amendments update a reference of definition of assets and liabilities to qualify for recognition in revised Conceptual Framework for Financial Reporting. However, the amendments add an exception for the recognition of liabilities and contingent liabilities within the scope of Korean IFRS No.1037 *Provisions, Contingent Liabilities and Contingent Assets*, and Korean IFRS No.2121 *Levies*. The amendments also confirm that contingent assets should not be recognized at the acquisition date. These amendments do not have a significant impact on the financial statements.

*- Amendments to Korean IFRS No.1016 Property, Plant and Equipment - Proceeds Before Intended Use* 

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

*- Amendments to Korean IFRS No.1037 Provisions, Contingent Liabilities and Contingent Assets - Onerous Contracts: Cost of Fulfilling a Contract* 

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

*- Annual improvements to Korean IFRS 2018-2020* 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1101 *First-time Adoption of Korean International Financial Reporting Standards* –
Subsidiaries as a first-time adopter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1109 *Financial Instruments* – Fees related to the 10% test for derecognition of
financial liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1116 *Leases* – Lease incentives

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Korean IFRS No.1041 *Agriculture* – fair value measurement

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

The Bank classified some restricted demand deposits, such as reserve deposits, as due from financial institutions measured at amortized cost rather than cash and cash equivalents; however, following the International Accounting Standards Interpretation Committee's decision that cash and cash equivalents include restricted demand deposits, some restricted demand deposits, such as reserve deposits, have been classified as cash and cash equivalents and retrospectively applied from January 1, 2022. The comparative financial statements have been restated to reflect changes made due to retrospective application.

The application of these accounting policy changes has no effect on the statement of financial position as of December 31, 2022 and 2021, and the statements of comprehensive income for the years ended December 31, 2022 and 2021.

Effects on the statements of cash flows for the years ended December 31, 2022 and 2021, are as follows:

2.1.2.1 Increase in details of statement of Cash Flow

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| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Increase in other assets | 64181 | 4623387 |
|  Increase of exchange rate changes on cash and cash equivalents denominated in foreign currency | 71414 | 65096 |
|  Increase in beginning balance of cash and cash equivalents | 15877938 | 11189455 |
|  Increase in ending balance of cash and cash equivalents | 16013533 | 15877938 |

---

2.1.2.2 Statement of Cash Flow (2022)

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| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Before** | **After** | **Increase** |
|  Other assets | (1366084) | (1301903) | 64181 |
|  Exchange rate changes on cash and cash equivalents denominated in foreign currency | (221968) | (150554) | 71414 |
|  Beginning balance of cash and cash equivalents | 5994103 | 21872041 | 15877938 |
|  Ending balance of cash and cash equivalents | 5979611 | 21993144 | 16013533 |

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2.1.2.3 Statement of Cash Flow (2021)

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| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Before** | **After** | **Increase** |
|  Other assets | (3715133) | 908254 | 4623387 |
|  Exchange rate changes on cash and cash equivalents denominated in foreign currency | 193616 | 258712 | 65096 |
|  Beginning balance of cash and cash equivalents | 5784727 | 16974182 | 11189455 |
|  Ending balance of cash and cash equivalents | 5994103 | 21872041 | 15877938 |

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2.1.3 The following new and amended standards have been published that are not mandatory for December 31, 2021 reporting period and have not been adopted by the Bank.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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*- Amendments to Korean IFRS No.1001 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current* 

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise the right to defer settlement of the liability or the management's expectations thereof. Also, the settlement of liability includes the transfer of the entity's own equity instruments; however, it would be excluded if an option to settle the liability by the transfer of the entity's own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. The amendments should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted. The Bank does not expect that these amendments have a significant impact on the financial statements.

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

Korean IFRS No.1117 *Insurance Contracts* will replace Korean IFRS No.1104 *Insurance Contracts*. This standard requires an entity to estimate future cash flows of an insurance contract and measure insurance liabilities using discount rates applied with assumptions and risks at the measurement date and recognize insurance revenue on an accrual basis including services (insurance coverage) provided to the policyholder by each annual reporting period. In addition, investment components (refunds due to termination and maturity) repaid to a policyholder even if an insured event does not occur, are excluded from insurance revenue, and net insurance income and net investment income are presented separately to enable users of the information to understand the sources of net income. This standard should be applied for annual reporting periods beginning on or after January 1, 2023, and earlier application is permitted for entities that applied Korean IFRS No.1109 *Financial Instruments*. The Bank is scheduled to apply this standard for annual reporting period beginning on January 1, 2023. The Bank does not expect that this new standard has a significant impact on the financial statements.

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

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

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

**2.2 Measurement Basis** 

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

**2.3 Functional and Presentation Currency** 

Items included in the financial statements of the Bank are measured using the currency of the primary economic environment in which the Bank operates ("functional currency"). The separate financial statements are presented in Korean won, which is the Bank's functional and presentation currency.

**2.4 Critical Accounting Estimates** 

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

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

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

2.4.1 Income taxes

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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2.4.2 Fair value of financial instruments

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

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

2.4.3 Allowances and provisions for credit losses

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

2.4.4 Net defined benefit asset(liability)

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

2.4.5 Impairment of goodwill

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**3. Significant Accounting Policies** 

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

**3.1 Investments in Associates and Subsidiaries** 

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

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

Investments in associates and subsidiaries are accounted for at cost in accordance with Korean IFRS No.1027. However, beneficiary certificates in private equity fund which is consolidated is classified as financial assets at fair value through profit or loss in accordance with Korean IFRS No.1109 and measured at fair value in accordance with Korean IFRS No.1113.

The Bank determines at each reporting period whether there is any objective evidence that the investments in the associates and subsidiaries that are accounted for by cost method are impaired. If this is the case, the Bank calculates the amount of impairment as the difference between the recoverable amount of the associate or subsidiary and its carrying amount and recognizes the amount as non-operating expenses in the statement of comprehensive income.

**3.2 Foreign Currency** 

3.2.1 Foreign currency transactions

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.2.2 Foreign operations

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

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

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

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

3.2.3 Translation of the net investment in a foreign operation

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

**3.3 Recognition and Measurement of Financial Instruments** 

3.3.1 Initial recognition

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

3.3.2 Subsequent measurement

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

3.3.2.1 Amortized cost

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

3.3.2.2 Fair value

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

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

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

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

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| | |
|:---|:---|
| Level 1 : | Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bank can access at the measurement date |
| Level 2 : | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly |
| Level 3 : | Unobservable inputs for the asset or liability |

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

The Bank's Fair Value Evaluation Committee, which consists of the risk management department, trading department and accounting department, reviews the appropriateness of internally developed valuation models, and approves the selection and changing of the external valuation institution and other considerations related to fair value measurement. The results of regular verification of the internally developed valuation models are reported to the Market Risk Management Subcommittee.

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

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

3.3.3 Derecognition

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

3.3.3.1 Derecognition of financial assets

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.3.3.2 Derecognition of financial liabilities

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

3.3.4 Offsetting

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

**3.4 Cash and Due from Financial Institutions** 

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

**3.5 Non-derivative Financial Assets** 

3.5.1 Financial assets at fair value through profit or loss

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

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

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

3.5.2 Financial assets at fair value through other comprehensive income

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

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

3.5.3 Financial assets at amortized cost

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

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

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

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

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

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

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

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

The Bank assesses whether the credit risk has increased significantly using the following criteria, and if one or more of the following criteria are met, it is deemed as significant increase in credit risk. If the contractual cash flows of a financial asset have been renegotiated or modified, the Bank assesses whether the credit risk has increased significantly using the same following criteria.

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**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

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

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

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt restructuring

3.6.1 Forward-looking information

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

The Bank assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses. The Bank has derived a correlation between the time series data of 13 years or more and the key macroeconomic variables and calculates the expected credit losses by reflecting the results of the correlation on the risk component.

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

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| | |
|:---|:---|
| **Key macroeconomic variables** | **Correlation between the major macroeconomic**<br>**variables and the credit risk** |
| Domestic GDP growth rate | (-) |
| Composite stock index | (-) |
| Growth rate of construction investment | (-) |
| Rate of increase in housing transaction price index | (-) |
| Interest rate spread | (+) |
| Private consumption growth rate | (-) |

---

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

As of December 31, 2022, the Bank measures expected credit losses by applying both the worse scenario and the crisis scenario, taking into consideration the potential credit risk resulting from the uncertain financial environment locally and globally and the rapid economic recession.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.6.2 Measuring expected credit losses on financial assets at amortized cost

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

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

3.6.2.1 Individual assessment of impairment

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

3.6.2.2 Collective assessment of impairment

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

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

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

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

**3.7 Derivative Financial Instruments** 

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

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

3.7.1 Derivative financial instruments held for trading

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

3.7.2 Derivative financial instruments for fair value hedges

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

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

3.7.3 Derivative financial instruments for cash flow hedges

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.7.4 Risk management strategy

Interest rate risk arises from changes in fair value resulting from changes in the discount rate of fixed rate financial instruments, and changes in cash flows resulting from changes in the nominal interest rate of floating rate financial instruments.

The Bank hedges the interest rate risk in its entirety. At inception of the hedge relationship, the Bank reviews the hedge effectiveness; and periodically reviews the effectiveness in order to confirm that economic relationship between the hedged item and the hedging instrument exists. The requirement that an economic relationship exists means that the hedging instrument and the hedged item have values that generally move in the opposite direction due to the same risk, which is the hedged risk. The Bank designates the exposure of hedged item opposite to the exposure of hedging instruments in order to meet economic relationship requirement.

The Bank designates hedge relationship at one-on-one ratio between the nominal amount of hedging instrument and to the nominal amount of hedged item.

Hedge ineffectiveness could arise because of differences in the underlying parameters (acquisition date, credit risk or liquidity and others) or other differences between the hedging instrument and the hedged item that the Bank accepts in order to achieve a cost-effective hedging relationship.

The Bank avoids the cash flow variability of its floating rate debt securities by using interest rate swaps. Both are linked to the same interest rate; however, the paid amount of the floating rate may be set on different dates. Even if the variability of interest rate related cash flows (as a risk factor) is designated as a hedged item, the difference in set-up dates creates a hedge ineffectiveness.

The Bank avoids the variability of fair values of its fixed rate debt securities by using interest rate swaps. The calculating method of the number of the dates for paying fixed-rate interest amount can be different between hedging instruments and hedged items. Even if the variability of the fair value due to the benchmark interest rate (as a risk factor) are designated as a hedged item, the difference in calculating method of the number of the dates creates a hedge ineffectiveness.

3.7.5 Embedded derivatives

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

3.7.6 Day one gains or losses

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

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**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.8 Property and Equipment** 

3.8.1 Recognition and measurement

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

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

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

3.8.2 Depreciation

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

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

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

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| | | |
|:---|:---|:---|
| **Property and equipment** | **Depreciation method** | **Estimated useful life** |
| Buildings | Straight-line | 40 years |
| Leasehold improvements | Diminishing-balance | 4 years |
| Equipment and vehicles | Diminishing-balance | 4 years |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.9 Investment Properties** 

3.9.1 Recognition and measurement

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

3.9.2 Depreciation

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

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

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

---

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

**3.10 Intangible Assets** 

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

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

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| | | |
|:---|:---|:---|
| **Intangible assets** | **Amortization method** | **Estimated useful life** |
| Industrial property rights | Straight-line | 5 years |
| Software | Straight-line | 4~5 years |
| Others | Straight-line | 1~13 years |

---

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

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**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.10.1 Goodwill

3.10.1.1 Recognition and measurement

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

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

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

3.10.1.2 Subsequent measurement

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

3.10.2 Subsequent expenditures

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

**3.11 Impairment of Non-financial Assets** 

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

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

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**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

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

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

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

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

**3.13 Financial Liabilities** 

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

3.13.1 Financial liabilities at fair value through profit or loss

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

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

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**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

3.13.2 Other financial liabilities

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

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

**3.14 Provisions** 

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

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

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

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

**3.15 Financial Guarantee Contracts** 

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.16 Equity Instrument Issued by the Bank** 

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

3.16.1 Ordinary shares

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

3.16.2 Hybrid securities

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

3.16.3 Compound financial instruments

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

**3.17 Revenue Recognition** 

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

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

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

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

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

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

3.17.1 Interest income and expense

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

Interest income on impaired financial assets is recognized using the interest rate used to discount the expected cash flows for the purpose of measuring the impairment loss. Interest income on debt securities at fair value through profit or loss is also classified as interest income in the statement of comprehensive income.

3.17.2 Fee and commission income

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

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

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

3.17.2.2 Fees related to performance obligations satisfied over time

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

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

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

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

3.17.4 Dividend income

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

**3.18 Employee Compensation and Benefits** 

3.18.1 Post-employment benefits

3.18.1.1 Defined contribution plans

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

3.18.1.2 Defined benefit plans

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

3.18.2 Short-term employee benefits

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

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

3.18.3 Share-based payment

The Bank provides its executives and employees with stock grants and mileage stock programs. When stock grants are exercised, the Bank can either select to distribute shares of KB Financial Group Inc., the Parent Company or compensate in cash based on the share price. When mileage stock is exercised, the Bank pays the amount equivalent to share price of KB Financial Group Inc. in cash.

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

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

3.18.4 Termination benefits

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**3.19 Income Tax Expense** 

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

3.19.1 Current income tax

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

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

3.19.2 Deferred income tax

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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3.19.3 Uncertain tax positions

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

**3.20 Transactions with the Trust Accounts** 

The Bank accounts for trust assets separately from its own assets in accordance with the Financial Investment Services and Capital Markets Act. The borrowings from trust accounts represent transfer of funds in trust accounts into banking accounts. Such borrowings from trust accounts are recorded as receivables from the banking accounts in the trust accounts and as borrowings from trust accounts in the banking accounts. The Bank earns trust fees from the trust accounts for its management of trust assets and operations. The reserves for future profits and losses are set up in the trust accounts for profits and losses related to those trust funds with a guarantee of the principal or of the principal and a certain minimum rate of return in accordance with the relevant laws and regulations applicable to trust operations. The reserves are used to provide for the losses on such trust funds and, if the losses incurred are in excess of the reserves, the excess losses are compensation paid as a loss on trust management in other operating expenses and the trust accounts recognize the corresponding compensation as compensation from banking accounts.

**3.21 Lease** 

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

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

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

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

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

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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

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

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

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

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

However, the Bank can elect not to apply the requirements of Korean IFRS No.1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under USD 5,000). The Bank applies the exemption of the standard for one time lease of real estate (for training purpose) and leases of low-value assets (underlying assets less than W 5 million or USD 5,000).

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

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

**3.22 Operating Segments** 

The Bank identifies its operating segments based on internal reports which are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Segment information includes items which are directly attributable and can be allocated to the segment on a reasonable basis.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

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**4. Financial Risk Management** 

4.1 Summary

4.1.1 Overview of financial risk management policy

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

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

The Bank's risk management system focuses on efficiently supporting long-term strategy and management decisions of each business group through increased risk transparency, spread of risk management culture, prevention of risk transfer between risk types, and preemptive response to rapidly changing financial environments. Credit risk, market risk, liquidity risk, and operational risk are recognized as the Bank's significant risks and measured and managed by quantifying them in the form of internal capital or Value at Risk ("VaR") using statistical methods.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

The Risk Management Committee, as the ultimate decision-making body, approves risk-related issues, such as establishing risk management strategies in accordance with the strategic direction determined by the board of directors, determining the affordable level of risk appetite, and reviewing the level of risk and the status of risk management activities.

4.1.2.2 Risk Management Council

The Risk Management Council deliberates on and resolves matters delegated by the Risk Management Committee and discusses the details of risk management of the Bank.

4.1.2.3 Risk Management Subcommittees

The Risk Management Subcommittee implements decisions made by the Risk Management Council and makes practical decisions regarding the implementation of risk management policies and procedures.

- Credit Risk Management Subcommittee

The Credit Risk Management Subcommittee conducts deliberation and resolution on new approval of non-standard and compound instruments with embedded credit risks, review of credit risks for new products with credit risks, and establishment of exposure limits by industry.

- Market Risk Management Subcommittee

The Market Risk Management Subcommittee conducts deliberation and resolution on market risk-related matters, such as setting limits on market risk and approving detailed investment standards for new standard, non-standard and compound products.

- Operational Risk Management Subcommittee

The Operational Risk Management Subcommittee reviews the issues that have a significant effect on the Bank's operational risk such as establishment, amendment and abolition of major system, process and others.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

- Trust & Fund Customer Asset Risk Management Subcommittee

The Trust & Fund Customer Asset Risk Management Subcommittee reviews the issues that have a significant effect on the trust & fund customer asset risk management such as setting limits on trust & fund customer assets.

4.1.2.4 Risk Management Group

The Risk Management Group manages detailed risk management policies, procedures, and business processes.

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty's default, breach of contract, and deterioration of credit quality. For risk management reporting purposes, the Bank considers all factors of credit risk exposure, such as default risk of individual borrowers, country risk, and risk of specific sectors. The Bank defines default as the definition applied to the calculation of Capital Adequacy Ratio under the new Basel Accord (Basel III).

4.2.2 Credit risk management

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

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.3 Maximum exposure to credit risk

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

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| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Financial assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions <sup>1</sup> | 19945791 | 20037543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through profit or loss | 17645808 | 14594689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through profit or loss | 280905 | 37382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at fair value through profit or loss | 90006 | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | 7747794 | 2960174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost <sup>1</sup> | 363839085 | 349438762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through other comprehensive income | 37760143 | 37477726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost <sup>1</sup> | 34616403 | 21667058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through other comprehensive income | 231021 | 269609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>1</sup> | 6601913 | 5193409 |
|  | 488758869 | 451789974 |
|  **Off-balance sheet items** <sup>2</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts | 11931683 | 9615887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts | 8903700 | 8571865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments | 108124484 | 96760612 |
|  | 128959867 | 114948364 |
|  | 617718736 | 566738338 |

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<sup>1</sup> After netting of allowance

<sup>2</sup> For details of related provisions, see Note 22.

4.2.4 Credit risk of loans

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.4.1 Credit risk exposure

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **Non-**<br>**impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 122903840 | 4955573 | 3338 |  |  | 127862751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 55954318 | 7617430 | 4422 |  |  | 63576170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 2567131 | 2984313 | 4372 |  |  | 5555816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 479451 | 795211 | 6576 |  |  | 1281238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 11864 | 394372 | 388750 |  |  | 794986 |
|  | 181916604 | 16746899 | 407458 |  |  | 199070961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 153876481 | 3987402 | 10819 |  |  | 157874702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 2756890 | 3626799 | 6782 |  |  | 6390471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 248891 | 1159886 | 10075 |  |  | 1418852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 17204 | 134959 | 2675 |  |  | 154838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 14894 | 313447 | 374648 |  |  | 702989 |
|  | 156914360 | 9222493 | 404999 |  |  | 166541852 |
|  | 338830964 | 25969392 | 812457 |  |  | 365612813 |
|  **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 171194 |  |  |  |  | 171194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 59827 |  |  |  |  | 59827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 231021 |  |  |  |  | 231021 |
|  | 231021 |  |  |  |  | 231021 |
|  | 339061985 | 25969392 | 812457 |  |  | 365843834 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.4.1 Credit risk exposure (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  | **12-month<br>expected<br>credit losses** | **Non-impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** | **Loans measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 101671881 | 4753592 | 3583 |  |  | 106429056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 59923077 | 7313426 | 4321 |  |  | 67240824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 1929578 | 2587803 | 2489 |  |  | 4519870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 432721 | 879495 | 7484 |  |  | 1319700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 12851 | 306029 | 412275 |  |  | 731155 |
|  | 163970108 | 15840345 | 430152 |  |  | 180240605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retail** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 157731272 | 4295013 | 10963 |  |  | 162037248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 2669894 | 4000518 | 5995 |  |  | 6676407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 205486 | 1085997 | 8161 |  |  | 1299644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 9055 | 110974 | 3134 |  |  | 123163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 | 7008 | 234986 | 321419 |  |  | 563413 |
|  | 160622715 | 9727488 | 349672 |  |  | 170699875 |
|  | 324592823 | 25567833 | 779824 |  |  | 350940480 |
|  **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** | **Loans measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 189872 |  |  |  |  | 189872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 79737 |  |  |  |  | 79737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 269609 |  |  |  |  | 269609 |
|  | 269609 |  |  |  |  | 269609 |
|  | 324862432 | 25567833 | 779824 |  |  | 351210089 |

---

\* Before netting of allowance

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

---

| | | |
|:---|:---|:---|
|  | **Corporate** | **Retail** |
| Grade 1 | AAA ~ BBB+ | 1 ~ 5 grade |
| Grade 2 | BBB ~ BB | 6 ~ 8 grade |
| Grade 3 | BB- ~ B | 9 ~ 10 grade |
| Grade 4 | B- ~ CCC | 11 grade |
| Grade 5 | CC or under | 12 grade or under |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.4.2 Credit risk mitigation by collateral

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  Guarantees | 99103292 | 7027978 | 177359 |  |  | 106308629 |
|  Deposits and savings | 1697804 | 108318 | 6771 |  |  | 1812893 |
|  Property and equipment | 3823241 | 662823 | 3943 |  |  | 4490007 |
|  Real estate | 177110087 | 14209865 | 281535 |  |  | 191601487 |
|  | 281734424 | 22008984 | 469608 |  |  | 304213016 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  Guarantees | 89601071 | 6546538 | 150830 |  |  | 96298439 |
|  Deposits and savings | 1438744 | 88363 | 5477 |  |  | 1532584 |
|  Property and equipment | 3863605 | 259387 | 4194 |  |  | 4127186 |
|  Real estate | 170373311 | 12662289 | 270888 |  |  | 183306488 |
|  | 265276731 | 19556577 | 431389 |  |  | 285264697 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.5 Credit risk of securities

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **Non-**<br>**impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 33468589 |  |  |  |  | 33468589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1153198 |  |  |  |  | 1153198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 34621787 |  |  |  |  | 34621787 |
|  **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 35232645 |  |  |  |  | 35232645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 2446738 |  |  |  |  | 2446738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 53011 | 9169 |  |  |  | 62180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 13940 | 4640 |  |  |  | 18580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 37746334 | 13809 |  |  |  | 37760143 |
|  | 72368121 | 13809 |  |  |  | 72381930 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  | **12-month<br>expected<br>credit**<br>**losses** | **Non-**<br>**impaired** | **Impaired** | **Credit<br>impaired<br>approach** | **Not<br>applying<br>expected<br>credit<br>losses** | **Total** |
|  **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** | **Securities measured at amortized cost \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 21202242 |  |  |  |  | 21202242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 460402 |  |  |  |  | 460402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  | 7641 |  |  |  | 7641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 21662644 | 7641 |  |  |  | 21670285 |
|  **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** | **Securities measured at fair value through other comprehensive income** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 35185815 |  |  |  |  | 35185815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 2219696 |  |  |  |  | 2219696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 29108 | 3973 |  |  |  | 33081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 39134 |  |  |  |  | 39134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |  |
|  | 37473753 | 3973 |  |  |  | 37477726 |
|  | 59136397 | 11614 |  |  |  | 59148011 |

---

\* Before netting of allowance

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

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

---

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

4.2.6 Credit risk of due from financial institutions

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month<br>expected credit**<br>**losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Credit**<br>**impaired**<br>**approach** | **Total** |
|  | **12-month<br>expected credit**<br>**losses** | **Non-impaired** | **Impaired** | **Credit**<br>**impaired**<br>**approach** | **Total** |
|  **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 19945174 |  |  |  | 19945174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 644 |  |  |  | 644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |
|  | 19945818 |  |  |  | 19945818 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month<br>expected credit**<br>**losses** | **Lifetime expected credit<br>losses** | **Lifetime expected credit<br>losses** | **Credit**<br>**impaired**<br>**approach** | **Total** |
|  | **12-month<br>expected credit**<br>**losses** | **Non-impaired** | **Impaired** | **Credit**<br>**impaired**<br>**approach** | **Total** |
|  **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** | **Due from financial institutions measured at amortized cost \*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 20012099 |  |  |  | 20012099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1651 |  |  |  | 1651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 23925 |  |  |  | 23925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  |  |  |  |  |
|  | 20037675 |  |  |  | 20037675 |

---

\* Before netting of allowance

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.7 Credit risk mitigation of derivative financial instruments

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Deposits, savings, securities, and others |  | 2092136 |  | 424731 |

---

4.2.8 Credit risk concentration analysis

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Retail** | **Corporate \*** | **Total** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Korea | 166411568 | 182396615 | 348808183 | 95.27 | (1734857) | 347073326 |
|  Japan |  | 1150151 | 1150151 | 0.31 | (1756) | 1148395 |
|  United States |  | 4871778 | 4871778 | 1.33 | (14867) | 4856911 |
|  China |  | 5258447 | 5258447 | 1.44 | (8885) | 5249562 |
|  Others | 130284 | 5905896 | 6036180 | 1.65 | (13363) | 6022817 |
|  | 166541852 | 199582887 | 366124739 | 100.00 | (1773728) | 364351011 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Retail** | **Corporate \*** | **Total** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Korea | 170531863 | 168545037 | 339076900 | 96.54 | (1452104) | 337624796 |
|  Japan | 86 | 1082456 | 1082542 | 0.31 | (2332) | 1080210 |
|  United States |  | 3227026 | 3227026 | 0.92 | (13976) | 3213050 |
|  China |  | 4533168 | 4533168 | 1.29 | (20971) | 4512197 |
|  Others | 167926 | 3159908 | 3327834 | 0.94 | (12335) | 3315499 |
|  | 170699875 | 180547595 | 351247470 | 100.00 | (1501718) | 349745752 |

---

\* Expected credit losses of loans measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 496 million and W 675 million, respectively.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Financial institutions | 19346929 | 9.69 | (14398) | 19332531 |
|  Manufacturing | 50628397 | 25.37 | (481647) | 50146750 |
|  Service | 89946877 | 45.07 | (279855) | 89667022 |
|  Wholesale and retail | 26586877 | 13.32 | (147875) | 26439002 |
|  Construction | 3861434 | 1.93 | (88650) | 3772784 |
|  Public sector | 1488995 | 0.75 | (3676) | 1485319 |
|  Others | 7723378 | 3.87 | (32043) | 7691335 |
|  | 199582887 | 100.00 | (1048144) | 198534743 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Financial institutions | 18710348 | 10.36 | (10396) | 18699952 |
|  Manufacturing | 46251923 | 25.62 | (450371) | 45801552 |
|  Service | 79044306 | 43.78 | (229348) | 78814958 |
|  Wholesale and retail | 23802373 | 13.18 | (126984) | 23675389 |
|  Construction | 2882982 | 1.60 | (71572) | 2811410 |
|  Public sector | 1563869 | 0.87 | (4061) | 1559808 |
|  Others | 8291794 | 4.59 | (50379) | 8241415 |
|  | 180547595 | 100.00 | (943111) | 179604484 |

---

\* Expected credit losses of loans measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 496 million and W 675 million, respectively.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Loans** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Housing loan | 93209361 | 55.97 | (135861) | 93073500 |
|  General loan | 73332491 | 44.03 | (589723) | 72742768 |
|  | 166541852 | 100.00 | (725584) | 165816268 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Loans** | **%** | **Allowances** | **Carrying**<br>**amount** |
|  Housing loan | 92448330 | 54.16 | (50222) | 92398108 |
|  General loan | 78251545 | 45.84 | (508385) | 77743160 |
|  | 170699875 | 100.00 | (558607) | 170141268 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.2.8.4 Classifications of domestic mortgage loans as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group1 | 15950511 | 16.30 | (17178) | 15933333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group2 | 35821717 | 36.62 | (40603) | 35781114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group3 | 35626337 | 36.42 | (45807) | 35580530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group4 | 10020031 | 10.24 | (12809) | 10007222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group5 | 399823 | 0.41 | (618) | 399205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group6 | 11588 | 0.01 | (74) | 11514 |
|  | 97830007 | 100.00 | (117089) | 97712918 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Loans \*** | **%** | **Allowances** | **Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group1 | 16780623 | 17.13 | (10465) | 16770158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group2 | 39583150 | 40.41 | (10375) | 39572775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group3 | 31772074 | 32.43 | (9957) | 31762117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group4 | 9677419 | 9.88 | (6517) | 9670902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group5 | 140182 | 0.14 | (273) | 139909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Group6 | 10328 | 0.01 | (87) | 10241 |
|  | 97963776 | 100.00 | (37674) | 97926102 |

---

\* Retail loans for general purpose with the real estate as collateral are included.

---

| | |
|:---|:---|
|  | **Ranges** |
| Group1 | LTV 0% to less than 20% |
| Group2 | LTV 20% to less than 40% |
| Group3 | LTV 40% to less than 60% |
| Group4 | LTV 60% to less than 80% |
| Group5 | LTV 80% to less than 100% |
| Group6 | LTV over 100% |

---

\* LTV: Loan to Value ratio

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 19945818 | 100.00 | (27) | 19945791 |
|  | 19945818 | 100.00 | (27) | 19945791 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 4174159 | 23.66 |  | 4174159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 12882794 | 73.01 |  | 12882794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 588855 | 3.33 |  | 588855 |
|  | 17645808 | 100.00 |  | 17645808 |
|  **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 56464 | 0.73 |  | 56464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 7325952 | 94.56 |  | 7325952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 365378 | 4.71 |  | 365378 |
|  | 7747794 | 100.00 |  | 7747794 |
|  **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 14463252 | 38.30 |  | 14463252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 17317355 | 45.86 |  | 17317355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 5979536 | 15.84 |  | 5979536 |
|  | 37760143 | 100.00 |  | 37760143 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 16369689 | 47.28 |  | 16369689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 17711131 | 51.16 | (5068) | 17706063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 540967 | 1.56 | (316) | 540651 |
|  | 34621787 | 100.00 | (5384) | 34616403 |
|  | 117721350 |  | (5411) | 117715939 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 20037675 | 100.00 | (132) | 20037543 |
|  | 20037675 | 100.00 | (132) | 20037543 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 2154191 | 14.76 |  | 2154191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 10882060 | 74.56 |  | 10882060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1558438 | 10.68 |  | 1558438 |
|  | 14594689 | 100.00 |  | 14594689 |
|  **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** | **Derivative financial assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 6985 | 0.24 |  | 6985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance <sup>1</sup> | 2808256 | 94.87 |  | 2808256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 144933 | 4.89 |  | 144933 |
|  | 2960174 | 100.00 |  | 2960174 |
|  **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** | **Securities measured at fair value through other comprehensive income <sup>2</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 12975270 | 34.62 |  | 12975270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 19462711 | 51.93 |  | 19462711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 5039745 | 13.45 |  | 5039745 |
|  | 37477726 | 100.00 |  | 37477726 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government funded institutions | 11963615 | 55.21 |  | 11963615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and insurance | 9538725 | 44.02 | (3004) | 9535721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 167945 | 0.77 | (223) | 167722 |
|  | 21670285 | 100.00 | (3227) | 21667058 |
|  | 96740549 |  | (3359) | 96737190 |

---

<sup>1</sup> Collective investment securities (including transactions with collective investment schemes) are classified as finance and insurance.

<sup>2</sup> Expected credit losses of securities measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 5,991 million and W 8,111 million, respectively.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 16567043 | 83.06 |  | 16567043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 2171613 | 10.89 | (26) | 2171587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1207162 | 6.05 | (1) | 1207161 |
|  | 19945818 | 100.00 | (27) | 19945791 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 16209344 | 91.86 |  | 16209344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 994551 | 5.64 |  | 994551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 441913 | 2.50 |  | 441913 |
|  | 17645808 | 100.00 |  | 17645808 |
|  **Derivative financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 3456882 | 44.62 |  | 3456882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 1325575 | 17.11 |  | 1325575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France | 1281270 | 16.54 |  | 1281270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1684067 | 21.73 |  | 1684067 |
|  | 7747794 | 100.00 |  | 7747794 |
|  **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 34586537 | 91.60 |  | 34586537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 732183 | 1.94 |  | 732183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 2441423 | 6.46 |  | 2441423 |
|  | 37760143 | 100.00 |  | 37760143 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 30511462 | 88.13 | (3746) | 30507716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 2740296 | 7.91 | (949) | 2739347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 111146 | 0.32 | (89) | 111057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1258883 | 3.64 | (600) | 1258283 |
|  | 34621787 | 100.00 | (5384) | 34616403 |
|  | 117721350 |  | (5411) | 117715939 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Amount** | **%** | **Allowances** | **Carrying<br>amount** |
|  **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** | **Due from financial institutions measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 16465707 | 82.17 |  | 16465707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 2375755 | 11.86 | (39) | 2375716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1196213 | 5.97 | (93) | 1196120 |
|  | 20037675 | 100.00 | (132) | 20037543 |
|  **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** | **Securities measured at fair value through profit or loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 12828663 | 87.90 |  | 12828663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 1063902 | 7.29 |  | 1063902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 702124 | 4.81 |  | 702124 |
|  | 14594689 | 100.00 |  | 14594689 |
|  **Derivative financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 1060991 | 35.84 |  | 1060991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 707545 | 23.90 |  | 707545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France | 370787 | 12.53 |  | 370787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 820851 | 27.73 |  | 820851 |
|  | 2960174 | 100.00 |  | 2960174 |
|  **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** | **Securities measured at fair value through other comprehensive income \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 34298370 | 91.52 |  | 34298370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 556810 | 1.49 |  | 556810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 2622546 | 6.99 |  | 2622546 |
|  | 37477726 | 100.00 |  | 37477726 |
|  **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** | **Securities measured at amortized cost** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea | 21250544 | 98.06 | (2803) | 21247741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 76812 | 0.35 | (106) | 76706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 157558 | 0.73 | (141) | 157417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 185371 | 0.86 | (177) | 185194 |
|  | 21670285 | 100.00 | (3227) | 21667058 |
|  | 96740549 |  | (3359) | 96737190 |

---

\* Expected credit loss of securities measured at fair value through other comprehensive income as of December 31, 2022 and 2021, are W 5,991 million and W 8,111 million, respectively.

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

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

4.3.2 Liquidity risk management and indicator

The liquidity risk is managed by comprehensive risk management policies and Asset Liability Management ("ALM") risk management guidelines set forth in these policies that apply to all risk management policies and procedures that may arise throughout the overall business of the Bank.

The Bank establishes a liquidity risk management strategy, including objectives of liquidity risk management, management policies, and internal control systems, and obtains a resolution from the Risk Management Committee. The Risk Management Committee establishes the Risk Management Council for efficient risk management to supervise the establishment and implementation of policies according to risk management strategies.

The Bank calculates and manages Liquidity Coverage Ratio ("LCR"), Net Stable Funding Ratio ("NSFR"), liquidity ratio, maturity mismatch ratio and liquidity stress testing result for all transactions and off-balance transactions, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Council and the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **On demand** | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss <sup>1</sup>  | 108862 |  |  |  |  |  | 108862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup>  | 7189931 |  |  |  |  |  | 7189931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging <sup>2</sup>  |  | (558) | 5312 | 24067 | 66255 | 3502 | 98578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>3</sup>  | 163687546 | 26775519 | 43396062 | 125156957 | 16327376 | 120331 | 375463791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 53419 | 17958792 | 5880487 | 12857018 | 6782533 | 1039115 | 44571364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 11117 | 1704736 | 3182288 | 12368410 | 7925124 | 4735017 | 29926692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 164 | 14140 | 27878 | 105307 | 183763 | 12314 | 343566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 13685320 | 465 | 128095 |  |  | 13813880 |
|  | 171051039 | 60137949 | 52492492 | 150639854 | 31285051 | 5910279 | 471516664 |
|  **Off-balance sheet items** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments <sup>4</sup>  | 108124484 |  |  |  |  |  | 108124484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts | 11931683 |  |  |  |  |  | 11931683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts <sup>5</sup>  | 8903700 |  |  |  |  |  | 8903700 |
|  | 128959867 |  |  |  |  |  | 128959867 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **On demand** | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss <sup>1</sup>  | 112698 |  |  |  |  |  | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup>  | 2698433 |  |  |  |  |  | 2698433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging <sup>2</sup>  |  | 2291 | 5996 | 6589 | 15213 | 1423 | 31512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>3</sup>  | 195111497 | 13184603 | 28999866 | 106385543 | 8495262 | 183875 | 352360646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 49783 | 9424878 | 4469503 | 9858812 | 6589299 | 900323 | 31292598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 14528 | 660209 | 1252623 | 12523197 | 9152235 | 4703966 | 28306758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 139 | 14015 | 26883 | 102646 | 191151 | 13127 | 347961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 16932644 | 467 | 118985 |  |  | 17052096 |
|  | 197987078 | 40218640 | 34755338 | 128995772 | 24443160 | 5802714 | 432202702 |
|  **Off-balance sheet items** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments <sup>4</sup>  | 96760612 |  |  |  |  |  | 96760612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees contracts | 9615887 |  |  |  |  |  | 9615887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts <sup>5</sup>  | 8571865 |  |  |  |  |  | 8571865 |
|  | 114948364 |  |  |  |  |  | 114948364 |

---

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

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

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

<sup>4</sup> Unused lines of credit among commitments are included in the 'On demand' category because payments can be requested at any time.

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  Cash flow to be received of net-settled derivatives | 337 | 8038 | 13090 | 49098 |  | 70563 |
|  Cash flow to be paid of net-settled derivatives | 218 | 975 | 1571 | 93 |  | 2857 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Up to**<br>**1 month** | **1-3**<br>**months** | **3-12**<br>**months** | **1-5**<br>**years** | **Over 5**<br>**years** | **Total** |
|  Cash flow to be received of net-settled derivatives | 601 | 427 | 2989 |  |  | 4017 |
|  Cash flow to be paid of net-settled derivatives | 313 | 2437 | 3238 | 110 |  | 6098 |

---

4.4 Market Risk

4.4.1 Concept

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

4.4.2 Risk management

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

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

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

4.4.3 Trading position

4.4.3.1 Definition of a trading position

The trading position, which is subject to market risk management, includes interest rate position and stock position held for short-term trading profit. The Bank also includes and manages all foreign currency positions in our trading positions. The trading position subject to market risk management is the trading position defined in "Trading Policy and Guidelines" and the basic requirements for the trading position are as follows:

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

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

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

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

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.2 Observation method of market risk arising from trading positions

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

4.4.3.3 VaR

(a) VaR

The Bank uses the risk-based valuation method (VaR) to measure the market risk of the trading position.

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

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

When the Bank measures market risk for trading position, it uses an internal model (VaR) for general risk and a standard method for individual risks. Standard method is used if the internal model is not authorized for certain market risk. Therefore, disclosed market risk VaR does not reflect the market risk for individual risks and for some positions.

(b) Back-Testing

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

(c) Stress Testing

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

VaR at a 99% confidence level of interest rate risk, stock price risk, and currency risk for trading positions with a ten-day holding period, excluding Stressed VaR, for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** |
|  | **Average** | **Minimum** | **Maximum** | **December 31,**<br>**2022** |
|  Interest rate risk | 17106 | 6548 | 39078 | 25207 |
|  Stock price risk | 1 |  | 85 |  |
|  Currency risk | 24972 | 12036 | 46780 | 45307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversification effect |  |  |  | (3936) |
|  Total VaR | 37629 | 12726 | 73872 | 66578 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** |
|  | **Average** | **Minimum** | **Maximum** | **December 31,**<br>**2021** |
|  Interest rate risk | 12720 | 2985 | 41939 | 8061 |
|  Stock price risk |  |  |  |  |
|  Currency risk | 20171 | 9724 | 61020 | 12871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversification effect |  |  |  | (2798) |
|  Total VaR | 29650 | 8572 | 101110 | 18134 |

---

The required equity capital using the standard method related to the positions which are not measured by VaR as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | | | | |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  Interest rate risk |  | 12 |  | 365 |
|  Stock price risk |  | 7 |  | 6 |
|  Currency risk |  | 117 |  | 355 |
|  |  | 136 |  | 726 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.3.4 Details of risk factors

(a) Interest rate risk

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

(b) Stock price risk

Stock price risk arises mainly from derivatives linked to stocks positions in the Capital Markets Department. This stock price risk is managed through VaR, sensitivity limits, and others.

(c) Currency risk

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

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

4.4.4.1 Definition of IRRBB

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

4.4.4.2 The Bank's overall interest rate risk management and mitigation strategy

The Risk Management Committee approves policies, procedures and limits for managing interest rate risk, and the management department regularly reports on interest rate risk levels of ΔEVE and ΔNII against the set limit, changes in market conditions, and others. In order to measure the sensitivity of the economic value and earnings to changes in interest rates, the Bank calculates monthly interest rate gap and duration gap for assets and liabilities. In addition, the management department conducts an interest rate risk crisis analysis at least once a quarter assuming abnormal interest rate fluctuations and reports the results to the Risk Management Council. Independent internal and external audit department regularly check the process of identifying, measuring and monitoring interest rate risk. The interest rate risk model adequacy test is carried out regularly at least once a year by the verification department independent of the management department.

4.4.4.3 Main modeling assumption used for the Bank's interest rate risk measurement system for internal management

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.4.4 The Bank's interest rate risk hedging methodology and related accounting

The Bank hedges interest rate risk through back-to-back interest rate swap transactions, which are the same as interest payment cash flows. The Bank officially documents and manages the risk management strategy for hedge accounting, risk management objectives, hedging relationship, and assessment method for hedge effectiveness.

4.4.4.5 Main assumptions used for calculating △EVE, △NII

The Bank calculates interest rate risk, including all cash flow of interest-sensitive assets and liabilities, and off-balance sheet items in the banking book. △EVE assumes a run-off balance sheet where the existing bank account positions are amortized and not replaced by new businesses. In addition, the contractual interest rate, including commercial margins and other spread components, is applied to generate cash flows. When discounting cash flow, △EVE is calculated by applying risk-free interest rate that do not include commercial margins and other spread components.

△NII assumes a constant balance sheet where maturing or repricing cash flows during the target management period are replaced by new cash flows with identical features. The interest rate risk is calculated for the interest rate shock scenario by adding up only if the risk is a loss for each currency. After classifying into retail/transactional, retail/non-transactional, and wholesale according to customers and regular transactions, the average repricing maturity of non-maturity deposits is determined by taking into account proportion of core deposits and cap on average maturity of core deposits for each category. The average repricing maturity of non-maturity deposits is 2.5 years for core deposits, 1 day for non-core deposits, and the longest repricing maturity is five years. The prepayment rate of fixed rate loans and term deposit redemption ratio are estimated by dividing the amount of prepayment amount and redemption amount during the previous month by the balance at the end of the previous month, respectively.

4.4.4.6 △EVE and △NII

The Bank calculates △EVE by applying six interest rate shock and stress scenarios, and △NII is calculated by applying parallel shock up and parallel shock down scenarios. Results as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  | △**EVE** | △**NII** | △**EVE** | △**NII** |
|  Scenario 1 (Parallel shock up) |  | 105326 | 643305 | 478400 |
|  Scenario 2 (Parallel shock down) | 641269 | 52487 | 183107 |  |
|  Scenario 3 (Short rates down and long rates up) | 107736 |  | 121306 |  |
|  Scenario 4 (Short rates up and long rates down) | 235348 |  | 266778 |  |
|  Scenario 5 (Short rates shock up) | 249114 |  | 487914 |  |
|  Scenario 6 (Short rates shock down) | 306398 |  | 565768 |  |
|  Maximum out of six scenarios | 641269 | 105326 | 643305 | 478400 |
|  Basic capital | 31943522 | 31943522 | 32118160 | 32118160 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.5 Financial assets and liabilities denominated in foreign currencies

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **USD** | **JPY** | **EUR** | **GBP** | **CNY** | **Others** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 3785403 | 327255 | 165853 | 39332 | 223494 | 691509 | 5232846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 2044824 |  | 355597 |  |  | 263464 | 2663885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 533788 |  | 115 | 10 |  | 260 | 534173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 193063 |  |  |  |  | 290 | 193353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 28889973 | 683705 | 2360458 | 622702 | 68847 | 1829562 | 34455247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income | 4409620 |  | 9091 | 5677 |  | 826151 | 5250539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 4045282 |  |  | 37816 |  | 633215 | 4716313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 1615815 | 292283 | 351395 | 23545 | 53775 | 73971 | 2410784 |
|  | 45517768 | 1303243 | 3242509 | 729082 | 346116 | 4318422 | 55457140 |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 271778 | 246 | 182 | 10 |  |  | 272216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 104856 |  |  |  |  |  | 104856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 21610566 | 1230664 | 1380881 | 344585 | 175203 | 1052722 | 25794621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 18193011 | 458856 | 363990 | 351535 | 195167 | 823579 | 20386138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 6939542 |  | 2041516 |  | 36288 | 288467 | 9305813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | 3362911 | 266315 | 188202 | 13491 | 57583 | 124691 | 4013193 |
|  | 50482664 | 1956081 | 3974771 | 709621 | 464241 | 2289459 | 59876837 |
|  **Off-balance sheet items** | 20895932 |  | 262591 | 60382 | 180206 | 134547 | 21533658 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **USD** | **JPY** | **EUR** | **GBP** | **CNY** | **Others** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 3911985 | 317082 | 206918 | 49954 | 171638 | 479074 | 5136651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 2305996 |  | 349449 |  |  | 21328 | 2676773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 148078 |  |  |  |  |  | 148078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 82062 |  |  |  |  | 90 | 82152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 23305792 | 583537 | 1546145 | 234612 | 158012 | 1170689 | 26998787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income | 5457614 | 5152 | 121573 | 6273 |  | 258239 | 5848851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost | 706159 |  |  |  |  |  | 706159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 1386327 | 36398 | 95596 | 6874 | 16844 | 36242 | 1578281 |
|  | 37304013 | 942169 | 2319681 | 297713 | 346494 | 1965662 | 43175732 |
|  **Financial liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 192455 | 71 | 71 |  |  | 314 | 192911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 42470 |  |  |  |  |  | 42470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 17285631 | 828539 | 1831650 | 106317 | 203271 | 980928 | 21236336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 13585107 | 456029 | 304678 | 190436 | 7689 | 728591 | 15272530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 6026995 |  | 1338391 |  | 102443 | 83994 | 7551823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | 1514514 | 23141 | 138477 | 15025 | 34049 | 41713 | 1766919 |
|  | 38647172 | 1307780 | 3613267 | 311778 | 347452 | 1835540 | 46062989 |
|  **Off-balance sheet items** | 16904802 | 353 | 217007 | 800 | 117437 | 184824 | 17425223 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

4.4.6 Risk management according to interest rate benchmark reform

Details of financial instruments that have not been converted to alternative interest rate benchmark as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022 \*** | **December 31, 2022 \*** | **December 31, 2021 \*** | **December 31, 2021 \*** |
|  | **USD LIBOR** | **Others** | **USD LIBOR** | **Others** |
|  **Measured at fair value (non-derivative)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments at fair value through other comprehensive income | 22800 |  | 231702 |  |
|  **Measured at amortized cost** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 1871900 |  | 3614592 | 55800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings and debentures | 55800 |  | 52162 |  |
|  **Others** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial instruments |  |  | 1126930 |  |

---

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

4.5 Operational Risk

4.5.1 Concept

The Bank defines operational risk as loss risk arising from improper or incorrect internal procedures, personnel, systems or external events and includes financial and non-financial risks.

4.5.2 Risk management

The purpose of operational risk management is not only to comply with supervisory and regulatory requirements, but also to spread risk management culture, strengthen internal control, improve processes, and provide timely feedback to management and all employees. The Bank established a Business Continuity Planning (BCP) to carry out continuous work in emergency situations and established alternative facilities. The Bank conducts simulation training for headquarters and IT departments to check the business continuity framework.

4.6 Capital Management

The Bank complies with the capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements ("BIS") in June 2011 and was implemented in Korea in December 2013.

According to this standard, the Bank is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 4.5%, Tier 1 Capital ratio of 6.0%, and Total Capital ratio of 8.0%) as of December 31, 2022. Capital Conservation Buffer of 2.5% and Capital Requirement of Domestic Systemically Important Bank (D-SIB) of 1.0% are additionally applied. Therefore, the Bank is required to maintain a capital adequacy ratio including a minimum capital adequacy ratio and additional capital requirements (Common Equity Tier 1 Capital ratio of 8.0% (December 31, 2021: 8.0%), Tier 1 Capital ratio of 9.5% (December 31, 2021: 9.5%), and Total Capital ratio of 11.5% (December 31, 2021: 11.5%)).

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

The Bank's capital is classified into three categories in accordance with the Detailed Regulations on Supervision of Banking Business as follows:

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

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

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

The risk-weighted assets are the magnitude of assets that reflect the risk that the Bank has to bear, including risks inherent in all assets, errors in the operation of internal processes, and risk of loss that may arise from external events. The Bank calculates risk-weighted assets by each risk (credit risk, market risk, and operational risk) based on the Detailed Regulations on Supervision of Banking Business and uses them to calculate capital adequacy ratio. The Bank complied with external capital adequacy requirements as of December 31, 2022 and 2021.

Apart from the capital adequacy ratio, the Bank evaluates and manages capital adequacy through internal policies. The evaluation of capital adequacy compares the size of available capital (the amount of capital actually available) to the size of internal capital (the amount of capital required to cover all the significant risks faced by the Bank under its target credit rating), which monitors financial soundness and provides a risk-adjusted performance measurement basis. The internal capital for capital adequacy assessment is calculated by adding the results of a stress test and other additional capital requirements to the internal capital calculated for each individual risk.

The Risk Management Committee of the Bank determines the risk appetite of the Bank, allocates internal capital by risk type and business group, and each business group operates capital efficiently within the range of the allocated internal capital. The Risk Management Department of the Bank monitors internal capital limit management and reports it to management and the Risk Management Committee. If the limit of internal capital is expected to be exceeded, the Bank's capital adequacy management is carried out through review and approval by the Risk Management Committee in advance.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Total Capital: | 36232973 | 35572367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital | 30963124 | 30491173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital | 30089274 | 29916650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional Tier 1 Capital | 873850 | 574523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 2 Capital | 5269849 | 5081194 |
|  Risk-Weighted Assets: | 207557905 | 203569325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit risk <sup>1</sup> | 182292999 | 181149126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market risk <sup>2</sup> | 12611416 | 10833390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operational risk <sup>3</sup> | 12653490 | 11586809 |
|  Total Capital ratio (%): | 17.46 | 17.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tier 1 Capital ratio (%) | 14.92 | 14.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Equity Tier 1 Capital ratio (%) | 14.50 | 14.70 |

---

<sup>1</sup> Credit risk weighted assets are measured using the Internal Rating-Based Method and Standard Method.

<sup>2</sup> Market risk weighted assets are measured using the Internal Model-Based Method and Standard Method.

<sup>3</sup> Operational risk weighted assets are measured using the Advanced Measurement Method.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**5. Segment Information** 

5.1 Overall Segment Information and Business Segments

The Bank is organized into Corporate Banking, Retail Banking and Other Activities. These segments are based on the nature of the products and services provided, the type or class of customer, and the Bank's management organization.

- Corporate banking: The activities within this segment include providing credit, deposit products, and other related financial services to large, small and medium-sized enterprises and SOHOs.

- Retail banking: The activities within this segment include providing credit, deposit products, and other related financial services to individuals and households.

- Other activities: The activities within this segment include trading activities in securities and derivatives, funding, trust, and other activities.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** |
|  | **Corporate<br>banking** | **Retail<br>banking** | **Others** | **Total** |
|  Net operating revenues from external customers | 4505096 | 4472888 | 106624 | 9084608 |
|  Net interest income | 4081306 | 3936872 | 541024 | 8559202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 6454562 | 5763852 | 1743608 | 13962022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (2373256) | (1826980) | (1202584) | (5402820) |
|  Net fee and commission income | 376968 | 261350 | 462508 | 1100826 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission income | 508605 | 415858 | 587767 | 1512230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission expense | (131637) | (154508) | (125259) | (411404) |
|  Net gains on financial instruments at fair value through profit or loss | 19771 |  | 334409 | 354180 |
|  Net other operating income (expenses) | 27051 | 274666 | (1231317) | (929600) |
|  General and administrative expenses | (1569009) | (2092770) | (632558) | (4294337) |
|  Operating income before provision for credit losses | 2936087 | 2380118 | (525934) | 4790271 |
|  Provision for credit losses | (178752) | (281868) | (730) | (461350) |
|  Net operating income | 2757335 | 2098250 | (526664) | 4328921 |
|  Net non-operating income (expenses) | (8804) |  | (363713) | (372517) |
|  Segment profit before income tax expense | 2748531 | 2098250 | (890377) | 3956404 |
|  Income tax expense | (684402) | (522478) | 158696 | (1048184) |
|  Profit for the year | 2064129 | 1575772 | (731681) | 2908220 |
|  Total assets \* | 192304445 | 165273848 | 142765182 | 500343475 |
|  Total liabilities \* | 187559148 | 191786626 | 87443920 | 466789694 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** |
|  | **Corporate<br>banking** | **Retail<br>banking** | **Others** | **Total** |
|  Net operating revenues from external customers | 3102054 | 2958198 | 1793696 | 7853948 |
|  Net interest income | 3272074 | 3541539 | 317702 | 7131315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 4202858 | 4437930 | 850054 | 9490842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (930784) | (896391) | (532352) | (2359527) |
|  Net fee and commission income | 386318 | 392060 | 410254 | 1188632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission income | 499928 | 535530 | 536727 | 1572185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee and commission expense | (113610) | (143470) | (126473) | (383553) |
|  Net gains on financial instruments at fair value through profit or loss | 871 |  | 352087 | 352958 |
|  Net other operating income (expenses) | (557209) | (975401) | 713653 | (818957) |
|  General and administrative expenses | (1436393) | (2036855) | (534420) | (4007668) |
|  Operating income before provision for credit losses | 1665661 | 921343 | 1259276 | 3846280 |
|  Provision for credit losses | (225798) | (125876) | (4889) | (356563) |
|  Net operating income | 1439863 | 795467 | 1254387 | 3489717 |
|  Net non-operating income (expenses) | (362) |  | 5757 | 5395 |
|  Segment profit before income tax expense | 1439501 | 795467 | 1260144 | 3495112 |
|  Income tax expense | (395863) | (218753) | (317138) | (931754) |
|  Profit for the year | 1043638 | 576714 | 943006 | 2563358 |
|  Total assets \* | 170002814 | 169513344 | 125257239 | 464773397 |
|  Total liabilities \* | 180852527 | 180815013 | 70488256 | 432155796 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

5.2 Services and Geographical Segments

5.2.1 Services information

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Corporate banking service |  | 4505096 |  | 3102054 |
|  Retail banking service |  | 4472888 |  | 2958198 |
|  Others |  | 106624 |  | 1793696 |
|  |  | 9084608 |  | 7853948 |

---

5.2.2 Geographical information

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *<br>(In millions of Korean won)* | **Net operating revenues**<br>**from external customers** | **Net operating revenues**<br>**from external customers** | **Major non-current assets** | **Major non-current assets** |
|  | **2022** | **2021** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Domestic | 8840358 | 7695778 | 4105598 | 4158441 |
|  China | 75120 | 50913 | 1938 | 2835 |
|  United States | 71327 | 37332 | 14485 | 7009 |
|  New Zealand | 12378 | 12857 | 1382 | 1932 |
|  Japan | 18939 | 17482 | 1480 | 2019 |
|  United Kingdom | 30430 | 23571 | 5808 | 885 |
|  Vietnam | 25409 | 10185 | 2159 | 2132 |
|  India | 1048 | 5830 | 394 | 839 |
|  Singapore | 9599 |  | 8492 |  |
|  | 9084608 | 7853948 | 4141736 | 4176092 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**6. Financial Assets and Financial Liabilities** 

6.1 Classification and Fair Value of Financial Instruments

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Carrying<br>amount** | **Fair value** | **Carrying<br>amount** | **Fair value** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 22296244 | 22289163 | 22368904 | 22368849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 18154550 | 18154550 | 14782128 | 14782128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 17645808 | 17645808 | 14594689 | 14594689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 137831 | 137831 | 36435 | 36435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 280905 | 280905 | 37382 | 37382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 90006 | 90006 | 113622 | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7509568 | 7509568 | 2829750 | 2829750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 238226 | 238226 | 130424 | 130424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 363839085 | 361359508 | 349438762 | 349337321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 39409618 | 39409618 | 40917071 | 40917071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 37760143 | 37760143 | 37477726 | 37477726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 1418454 | 1418454 | 3169736 | 3169736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 231021 | 231021 | 269609 | 269609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 34616403 | 32797738 | 21667058 | 21382927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 6601913 | 6601913 | 5193409 | 5193409 |
|  | 492665607 | 488360284 | 457327506 | 456941879 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 108862 | 108862 | 112698 | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7189931 | 7189931 | 2698433 | 2698433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 104856 | 104856 | 42471 | 42471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 368100984 | 367678140 | 349615372 | 349524907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 43664670 | 43338198 | 31073908 | 30998211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 27999416 | 27823582 | 26891141 | 26953355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities | 17158325 | 17158325 | 19186687 | 19186687 |
|  | 464327044 | 463401894 | 429620710 | 429516762 |

---

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

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

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

6.1.2 Fair value hierarchy

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

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

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

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

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

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

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** |  |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 5380854 | 8401205 | 4372491 | 18154550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 5290592 | 8401205 | 3954011 | 17645808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 256 |  | 137575 | 137831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  | 280905 | 280905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 90006 |  |  | 90006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 7509535 | 33 | 7509568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 238226 |  | 238226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 11379006 | 27225084 | 805528 | 39409618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 10766080 | 26994063 |  | 37760143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 612926 |  | 805528 | 1418454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 231021 |  | 231021 |
|  | 16759860 | 43374050 | 5178052 | 65311962 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 108862 |  |  | 108862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 7189931 |  | 7189931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 104856 |  | 104856 |
|  | 108862 | 7294787 |  | 7403649 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** |  |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 2726982 | 8858390 | 3196756 | 14782128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 2613360 | 8858390 | 3122939 | 14594689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  |  | 36435 | 36435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  |  | 37382 | 37382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 113622 |  |  | 113622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 2829733 | 17 | 2829750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 130424 |  | 130424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 11698251 | 28369785 | 849035 | 40917071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 9377550 | 28100176 |  | 37477726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 2320701 |  | 849035 | 3169736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans |  | 269609 |  | 269609 |
|  | 14425233 | 40188332 | 4045808 | 58659373 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 112698 |  |  | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading |  | 2698433 |  | 2698433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging |  | 42471 |  | 42471 |
|  | 112698 | 2740904 |  | 2853602 |

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------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 8401205 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 8401205 | DCF Model, MonteCarlo Simulation, Net Asset Value Method | Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7509535 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 238226 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 27225084 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 26994063 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 231021 | DCF Model | Discount rate |
|  | 43374050 |  |  |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 7189931 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 104856 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
|  | 7294787 |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | 8858390 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 8858390 | DCF Model, MonteCarlo Simulation, Net Asset Value Method | Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 2829733 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 130424 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | 28369785 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 28100176 | DCF Model | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 269609 | DCF Model | Discount rate |
|  | 40188332 |  |  |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading | 2698433 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, stock price, and others |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for hedging | 42471 | DCF Model, Closed Form, FDM | Discount rate, volatility, foreign exchange rate, and others |
|  | 2740904 |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** |  |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | 2350453 | 18768224 | 1170486 | 22289163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | 361359508 | 361359508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 4535667 | 28262071 |  | 32797738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>2</sup> |  |  | 6601913 | 6601913 |
|  | 6886120 | 47030295 | 369131907 | 423048322 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>1</sup> |  | 159020380 | 208657760 | 367678140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings <sup>1</sup> |  | 18270 | 43319928 | 43338198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 27823582 |  | 27823582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>2</sup> |  |  | 17158325 | 17158325 |
|  |  | 186862232 | 269136013 | 455998245 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value hierarchy** | **Fair value hierarchy** | **Fair value hierarchy** |  |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions <sup>1</sup> | 2331361 | 19531864 | 505624 | 22368849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  | 349337321 | 349337321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 2273744 | 19109183 |  | 21382927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets <sup>2</sup> |  |  | 5193409 | 5193409 |
|  | 4605105 | 38641047 | 355036354 | 398282506 |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits <sup>1</sup> |  | 191038798 | 158486109 | 349524907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings <sup>1</sup> |  | 2146 | 30996065 | 30998211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 26953355 |  | 26953355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities <sup>2</sup> |  |  | 19186687 | 19186687 |
|  |  | 217994299 | 208668861 | 426663160 |

---

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

<sup>2</sup> Other financial assets and other financial liabilities included in Level 3 are the carrying amounts which are reasonable approximations of fair value. 

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 28262071 | DCF Model, MonteCarlo Simulation | Discount rate, interest rate |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 27823582 | DCF Model | Discount rate |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Valuation techniques** | **Inputs** |
|  **Financial assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 19109183 | DCF Model, MonteCarlo Simulation | Discount rate, interest rate |
|  **Financial liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 26953355 | DCF Model | Discount rate |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Valuation<br>techniques** | **Inputs** | **Unobservable inputs** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 1170486 | DCF Model | Credit spread, other spread, interest rate | Credit spread, other spread |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 361359508 | DCF Model | Credit spread, other spread, prepayment rate, interest rate | Credit spread, other spread, prepayment rate |
|  | 362529994 |  |  |  |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 208657760 | DCF Model | Other spread, prepayment rate, interest rate | Other spread, prepayment rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 43319928 | DCF Model | Other spread, interest rate | Other spread |
|  | 251977688 |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value** | **Valuation<br>techniques** | **Inputs** | **Unobservable inputs** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions | 505624 | DCF Model | Credit spread, other spread, interest rate | Credit spread, other spread |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 349337321 | DCF Model | Credit spread, other spread, prepayment rate, interest rate | Credit spread, other spread, prepayment rate |
|  | 349842945 |  |  |  |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 158486109 | DCF Model | Other spread, prepayment rate, interest rate | Other spread, prepayment rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 30996065 | DCF Model | Other spread, interest rate | Other spread |
|  | 189482174 |  |  |  |

---

6.2 Disclosure of Fair Value Hierarchy Level 3

6.2.1 Valuation policy and process of Level 3 fair value

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

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

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

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

*(In millions of Korean won)* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Financial assets at fair value<br>through profit or loss** | **Financial assets at fair value<br>through profit or loss** | **Financial<br>investments** | **Net derivative financial<br>instruments** | **Net derivative financial<br>instruments** |
|  | **Securities<br>measured at<br>fair value<br>through profit<br>or loss** | **Loans<br>measured at<br>fair value<br>through profit<br>or loss** | **Equity securities<br>measured at fair<br>value through**<br>**other<br>comprehensive<br>income** | **Derivatives<br>held for<br>trading** | **Derivatives<br>held for<br>hedging** |
|  Beginning | 3159374 | 37382 | 849035 | 17 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gains or losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Profit or loss | 128774 | (17617) |  | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Other comprehensive loss |  |  | (47059) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | 1230764 | 261140 | 4093 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (427326) |  | (541) |  |  |
|  Ending | 4091586 | 280905 | 805528 | 33 |  |

---

*(In millions of Korean won)* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Financial assets at fair value<br>through profit or loss** | **Financial assets at fair value<br>through profit or loss** | **Financial<br>investments** | **Net derivative financial<br>instruments** | **Net derivative financial<br>instruments** |
|  | **Securities<br>measured at<br>fair value<br>through profit<br>or loss** | **Loans<br>measured at<br>fair value<br>through profit<br>or loss** | **Equity<br>securities<br>measured at<br>fair value<br>through other<br>comprehensive<br>income** | **Derivatives<br>held for<br>trading** | **Derivatives<br>held for<br>hedging** |
|  Beginning | 2065162 | 38756 | 1917921 | 51646 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gains or losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Profit or loss | 141491 | (1374) |  | (30821) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Other comprehensive loss |  |  | (139460) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | 1333191 |  | 23507 | 23441 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (380470) |  | (484) | (44249) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers out of Level 3 |  |  | (952449) |  |  |
|  Ending | 3159374 | 37382 | 849035 | 17 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** |
|  | **Net gains on financial<br>instruments**<br>**at fair value through<br>profit or loss** | **Other<br>operating<br>income** | **Net interest<br>income** |
|  Total gains recognized in profit or loss for the period | 79887 | 31286 |  |
|  Total gains (losses) recognized in profit or loss from financial instruments held at the end of the reporting period | 70945 | (17629) |  |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** |
|  | **Net gains on financial<br>instruments**<br>**at fair value through<br>profit or loss** | **Other<br>operating<br>income** | **Net interest<br>income** |
|  Total gains recognized in profit or loss for the period | 76283 | 33013 |  |
|  Total gains recognized in profit or loss from financial instruments held at the end of the reporting period | 105559 | 32542 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3 Sensitivity analysis of changes in unobservable inputs

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* |  |  |  |  |  |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Valuation**<br> **techniques** | **Inputs** | **Unobservable**<br> **inputs** | **Range of**<br> **unobservable**<br> **inputs (%)** | **Relationship of<br>unobservable inputs**<br> **to fair value** |
|  **Financial assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 3954011 | Net Asset Value Method, DCF Model, Tree Model | Rate of real estate sale price fluctuation, discount rate, liquidation value, stock price, volatility of stock price | Rate of real estate sale price fluctuation | 0.00 | Higher the real estate sale price, higher the fair value |
|  |  |  |  | Discount rate | 8.53 | Lower the discount rate, higher the fair value |
|  |  |  |  | Liquidation value | 0.00 | Higher the liquidation value, higher the fair value |
|  |  |  |  | Volatility of stock price | 21.83~34.51 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 137575 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method | Growth rate,<br> discount rate | Growth rate | 0.00 | Higher the growth rate, higher the fair value |
|  |  |  |  | Discount rate | 9.16 ~ 15.82 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 280905 | DCF Model | Discount rate | Discount rate | 8.11~9.91 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock and index | 33 | Tree Model | Price of underlying asset, volatility of underlying asset | Volatility of underlying asset | 21.83 ~ 31.73 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 805528 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model | Growth rate, discount rate, stock price, volatility of stock price | Growth rate | 0.00 ~ 1.00 | Higher the growth rate, higher the fair value |
|  |  |  |  | Discount rate | 9.08 ~ 19.14 | Lower the discount rate, higher the fair value |
|  |  |  |  | Volatility of stock price | 24.88 ~28.62 | Higher the volatility, higher the fair value fluctuation |
|  | 5178052 |  |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* | *(In millions of Korean won)* |
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair<br>value** | **Valuation**<br> **techniques** | **Inputs** | **Unobservable**<br> **inputs** | **Range of<br>unobservable<br>inputs (%)** | **Relationship of<br>unobservable inputs**<br> **to fair value** |
|  **Financial assets** | **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 3122939 | Net Asset Value Method, DCF Model, Tree Model | Rate of real estate sale price fluctuation, discount rate, liquidation value, stock price, volatility of stock price | Rate of real estate sale price fluctuation | 0.00 | Higher the real estate sale price, higher the fair value |
|  |  |  |  | Discount rate | 8.17 ~ 21.37 | Lower the discount rate, higher the fair value |
|  |  |  |  | Liquidation value | 0.00 | Higher the liquidation value, higher the fair value |
|  |  |  |  | Volatility of stock price | 19.48 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 36435 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method | Growth rate, discount rate | Growth rate | 0.00 ~ 1.00 | Higher the growth rate, higher the fair value |
|  |  |  |  | Discount rate | 10.76 ~ 22.79 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | 37382 | DCF Model | Discount rate | Discount rate | 8.21 | Lower the discount rate, higher the fair value |
| &nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: | &nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock and index | 17 | Tree Model, DCF Model | Price of underlying asset, volatility of underlying asset | Volatility of underlying asset | 17.00 ~ 25.49 | Higher the volatility, higher the fair value fluctuation |
| &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: | &nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 849035 | DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model | Growth rate, discount rate, stock price, volatility of stock price | Growth rate | 0.00 ~ 1.00 | Higher the growth rate, higher the fair value |
|  |  |  |  | Discount rate | 10.42 ~ 18.02 | Lower the discount rate, higher the fair value |
|  |  |  |  | Volatility of stock price | 23.36 ~ 25.49 | Higher the volatility, higher the fair value fluctuation |
|  | 4045808 |  |  |  |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

6.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. Level 3 financial instruments subject to sensitivity analysis are debt securities, loans, equity-related derivatives, currency-related derivatives, interest rate-related derivatives, and other derivatives whose fair value changes are recognized in profit or loss as well as equity securities whose fair value changes are recognized in profit or loss or other comprehensive income or loss.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
|  | **Favorable<br>changes** | **Unfavorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** |
|  **Financial assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities <sup>3, 5</sup> | 3468 | (3467) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5</sup> | 4609 | (3437) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>4</sup> | 15396 | (14393) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading <sup>1</sup> | 2 | (2) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5, 6</sup> |  |  | 137984 | (56900) |
|  | 23475 | (21299) | 137984 | (56900) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Profit or loss** | **Profit or loss** | **Other comprehensive**<br>**income or loss** | **Other comprehensive**<br>**income or loss** |
|  | **Favorable<br>changes** | **Unfavorable<br>changes** | **Favorable<br>changes** | **Unfavorable<br>changes** |
|  **Financial assets** |  |  |  |  |
|  Financial assets at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities <sup>3, 5</sup> | 1847 | (1828) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5</sup> | 3217 | (2482) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans <sup>4</sup> | 3062 | (2742) |  |  |
|  Derivatives held for trading <sup>1</sup> | 2 |  |  |  |
|  Financial assets at fair value through other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities <sup>2, 5, 6</sup> |  |  | 87021 | (65000) |
|  | 8128 | (7052) | 87021 | (65000) |

---

<sup>1</sup> For derivative financial instruments, changes in fair value are calculated by shifting principal unobservable input parameters such as price and the volatility of underlying asset by ± 10%. 

---

| | |
|:---|:---|
| <sub>2</sub> | For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p) and growth rate (0%p~1%p).  |

---

<sup>3</sup> For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting rate of real estate sale price fluctuation (-1%p~1%p), and for beneficiary certificates whose underlying assets are equity investments, changes in fair value are calculated by shifting liquidation value (-1%p~1%p) and discount rate (-1%p~1%p). There is no significant correlation among major unobservable inputs. 

<sup>4</sup> For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p). 

<sup>5</sup> The amounts of \ 3,793,745 million and \ 3,212,082 million of financial assets classified as level 3 as of December 31, 2022 and 2021, respectively, are excluded because it is practically impossible to analyze sensitivity of changes in unobservable inputs. 

<sup>6</sup> For some equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as stock price and volatility of stock price by ±10%. 

6.2.4 Day one gains or losses

When the Bank measures the fair value of OTC derivatives using inputs that are not based on observable market data, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price, and the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. When the fair value of the financial instruments is subsequently determined using observable market inputs, the remaining deferred amount is recognized in profit or loss. There is no deferred day one gains or losses for the years ended December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

6.3 Carrying Amount of Financial Instruments by Category

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Financial<br>instruments at fair<br>value through<br>other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at fair<br>value through<br>other<br>comprehensive<br>income** | **Financial<br>instruments**<br>**at amortized<br>cost** | **Derivatives<br>held for<br>hedging** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions |  |  |  | 22296244 |  | 22296244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 18154550 |  |  |  |  | 18154550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 7509568 |  |  |  | 238226 | 7747794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  | 363839085 |  | 363839085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  | 37991164 | 1418454 | 34616403 |  | 74026021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  | 6601913 |  | 6601913 |
|  | 25664118 | 37991164 | 1418454 | 427353645 | 238226 | 492665607 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Total** |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 108862 |  |  | 108862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 7189931 |  | 104856 | 7294787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 368100984 |  | 368100984 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 43664670 |  | 43664670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 27999416 |  | 27999416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 17158325 |  | 17158325 |
|  | 7298793 | 456923395 | 104856 | 464327044 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Financial<br>instruments<br>at fair value<br>through<br>profit or loss** | **Financial<br>instruments at fair<br>value through<br>other<br>comprehensive<br>income** | **Financial<br>instruments<br>designated at fair<br>value through<br>other<br>comprehensive<br>income** | **Financial<br>instruments**<br>**at**<br>**amortized cost** | **Derivatives<br>held for<br>hedging** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from financial institutions |  |  |  | 22368904 |  | 22368904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss | 14782128 |  |  |  |  | 14782128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial assets | 2829750 |  |  |  | 130424 | 2960174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost |  |  |  | 349438762 |  | 349438762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial investments |  | 37747335 | 3169736 | 21667058 |  | 62584129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets |  |  |  | 5193409 |  | 5193409 |
|  | 17611878 | 37747335 | 3169736 | 398668133 | 130424 | 457327506 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Financial<br>instruments at<br>fair value<br>through profit<br>or loss** | **Financial<br>instruments at<br>amortized cost** | **Derivatives<br>held for<br>hedging** | **Total** |
|  **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 112698 |  |  | 112698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative financial liabilities | 2698433 |  | 42471 | 2740904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 349615372 |  | 349615372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 31073908 |  | 31073908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures |  | 26891141 |  | 26891141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial liabilities |  | 19186687 |  | 19186687 |
|  | 2811131 | 426767108 | 42471 | 429620710 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

6.4 Transfer of Financial Assets

6.4.1 Transferred financial assets that are derecognized in their entirety

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

---

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

---

---

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

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

6.4.2 Bonds sold under repurchase agreements and loaned securities

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

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

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** |
|  | **Carrying amount of**<br>**transferred assets** | **Carrying amount of**<br>**related liabilities** |
|  Bonds sold under repurchase agreements | 5342083 | 4816996 |
|  Loaned securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 239132 |  |
|  | 5581215 | 4816996 |

---

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** |
|  | **Carrying amount of**<br>**transferred assets** | **Carrying amount of**<br>**related liabilities** |
|  Bonds sold under repurchase agreements | 584579 | 553934 |
|  Loaned securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 49816 |  |
|  | 634395 | 553934 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

6.5 Offsetting Financial Assets and Financial Liabilities

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

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  |  | **Gross** | **Net amount in** | **Non-offsetting amount** | **Non-offsetting amount** |  |
|  | **Gross**<br>**assets** | **liabilities**<br>**offset** | **the statement of<br>financial position** | **Financial<br>instruments** | **Cash<br>collateral** | **Net amount** |
|  Derivatives held for trading | 7509535 |  | 7509535 | (6367487) | (826) | 1379448 |
|  Derivatives held for hedging | 238226 |  | 238226 |  |  |  |
|  Unsettled spot exchange receivable | 3356526 |  | 3356526 | (3355280) |  | 1246 |
|  Bonds purchased under repurchase agreements | 2281357 |  | 2281357 | (2281357) |  |  |
|  Domestic exchange settlement debits | 55446595 | (54584853) | 861742 |  |  | 861742 |
|  Other financial instruments | 20283 | (15143) | 5140 |  |  | 5140 |
|  | 68852522 | (54599996) | 14252526 | (12004124) | (826) | 2247576 |

---

*(In millions of Korean won)* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | | | | **Non-offsetting amount** | **Non-offsetting amount** | |
|  |<br>**Gross**<br>**assets** | **Gross**<br>**liabilities**<br>**offset** | **Net amount in**<br>**the statement of<br>financial position** | **Financial<br>instruments** | **Cash<br>collateral** |<br>**Net amount** |
|  Derivatives held for trading | 2829733 |  | 2829733 | (1809890) | (5) | 1150262 |
|  Derivatives held for hedging | 130424 |  | 130424 |  |  |  |
|  Unsettled spot exchange receivable | 2351502 |  | 2351502 | (2349893) |  | 1609 |
|  Bonds purchased under repurchase agreements | 5468420 |  | 5468420 | (5468420) |  |  |
|  Domestic exchange settlement debits | 43372672 | (42383120) | 989552 |  |  | 989552 |
|  Other financial instruments | 20728 | (20377) | 351 |  |  | 351 |
|  | 54173479 | (42403497) | 11769982 | (9628203) | (5) | 2141774 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  |  | **Gross** | **Net amount in** | **Non-offsetting amount** | **Non-offsetting amount** |  |
|  | **Gross<br>liabilities** | **assets**<br>**offset** | **the statement of**<br>**financial position** | **Financial**<br>**instruments** | **Cash<br>collateral** | **Net amount** |
|  Derivatives held for trading | 7189931 |  | 7189931 | (4925362) |  | 2369425 |
|  Derivatives held for hedging | 104856 |  | 104856 |  |  |  |
|  Unsettled spot exchange payable | 3356368 |  | 3356368 | (3355280) |  | 1088 |
|  Bonds sold under repurchase agreements \* | 4835185 |  | 4835185 | (4835185) |  |  |
|  Domestic exchange settlement credits | 56319757 | (54584853) | 1734904 | (1734904) |  |  |
|  Other financial instruments | 15212 | (15143) | 69 |  |  | 69 |
|  | 71821309 | (54599996) | 17221313 | (14850731) |  | 2370582 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  |  | **Gross** | **Net amount in** | **Non-offsetting amount** | **Non-offsetting amount** |  |
|  | **Gross<br>liabilities** | **assets**<br>**offset** | **the statement of**<br>**financial position** | **Financial**<br>**instruments** | **Cash<br>collateral** | **Net amount** |
|  Derivatives held for trading | 2698433 |  | 2698433 | (2018834) |  | 722070 |
|  Derivatives held for hedging | 42471 |  | 42471 |  |  |  |
|  Unsettled spot exchange payable | 2350353 |  | 2350353 | (2349893) |  | 460 |
|  Bonds sold under repurchase agreements \* | 553934 |  | 553934 | (553934) |  |  |
|  Domestic exchange settlement credits | 47504809 | (42383120) | 5121689 | (5121689) |  |  |
|  Other financial instruments | 23363 | (20377) | 2986 |  |  | 2986 |
|  | 53173363 | (42403497) | 10769866 | (10044350) |  | 725516 |

---

\* Includes bonds sold under repurchase agreements to customers.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**7. Due from Financial Institutions** 

7.1 Details of due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial**<br> **institutions** | **Interest**<br> **rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea |  | 15169704 | 15317033 |
|  | Due from banks | Hana Bank and others |  | 2374 | 2492 |
|  |  |  |  | 15172078 | 15319525 |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | The Bank of Korea and others |  | 3598520 | 4214830 |
|  | Time deposits in foreign currencies | Bank of communications, Seoul and others | 3.82~6.80 | 218094 | 151106 |
|  | Due from others | Morgan Stanley and others | 0.00~6.00 | 957126 | 352214 |
|  |  |  |  | 4773740 | 4718150 |
|  |  |  |  | 19945818 | 20037675 |

---

\* Before netting of allowance

7.2 Details of restricted due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial**<br> **institutions** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **Reasons of**<br> **restriction** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea | 15169704 | 15317033 | Bank of Korea Act |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | The Bank of Korea and others | 844287 | 760905 | Bank of Korea Act and others |
|  | Time deposits in foreign currencies | BANK OF COMMUNICATIONS CO., LTD. NEW YORK Branch | 63365 | 59275 | New York State Banking Law |
|  | Due from others | STATE STREET BANK AND TRUST COMPANY SEOUL and others | 238660 | 201728 | Derivatives margin account |
|  |  |  | 1146312 | 1021908 |  |
|  |  |  | 16316016 | 16338941 |  |

---

\* Before netting of allowance

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

7.3 Changes in allowances for credit losses of due from financial institutions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** |
|  | **12-month expected** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 132 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | (110) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 5 |  |  |
|  Ending | 27 |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** |
|  | **12-month expected** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 38 | 34 | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 88 | (35) | (282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 6 | 1 |  |
|  Ending | 132 |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**8. Assets Pledged as Collateral** 

8.1 Details of assets pledged as collateral as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31, 2022** | **December 31, 2022** |
| **Assets pledged** | **Pledgee** | **Carrying<br>amount** | **Reasons of pledge** |
|  Securities measured at fair value through profit or loss | Korea Securities Finance Corporation | 34071 | Difference amount of the total limit |
|  | The Bank of Korea | 236833 | Settlement risk of the Bank of Korea |
|  |  | 270904 |  |
|  Securities measured at fair value through other comprehensive income | The Bank of Korea | 3078859 | Repurchase agreements |
|  |  | 5495686 | Borrowings from the Bank of Korea |
|  |  | 1782507 | Settlement risk of the Bank of Korea |
|  | MUFGBANK and others | 475265 | Derivatives transactions |
|  | UBSAG and others | 486654 | Others |
|  |  | 11318971 |  |
|  Securities measured at amortized cost | The Bank of Korea and others | 1890368 | Repurchase agreements |
|  | The Bank of Korea | 4020539 | Borrowings from the Bank of Korea |
|  |  | 5047277 | Settlement risk of the Bank of Korea |
|  | KB Securities Co., Ltd. and others | 230050 | Derivatives transactions |
|  | CITI Bank and others | 378416 | Others |
|  |  | 11566650 |  |
|  Loans | Others | 12863079 | Covered bond and others |
|  |  | 36019604 |  |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31, 2021** | **December 31, 2021** |
| **Assets pledged** | **Pledgee** | **Carrying<br>amount** | **Reasons of pledge** |
|  Securities measured at fair value through profit or loss | The Korea Exchange and others | 259487 | Repurchase agreements |
|  |  | 259487 |  |
|  Securities measured at fair value through other comprehensive income | CITI Bank and others | 57693 | Repurchase agreements |
|  | The Bank of Korea | 2843426 | Borrowings from the Bank of Korea |
|  |  | 1249049 | Settlement risk of the Bank of Korea |
|  | JP Morgan Chase Bank and others | 590321 | Derivatives transactions |
|  | Others | 34757 | Others |
|  |  | 4775246 |  |
|  Securities measured at amortized cost | Meritz Securities and others | 302780 | Repurchase agreements |
|  | The Bank of Korea | 4847856 | Borrowings from the Bank of Korea |
|  |  | 3948622 | Settlement risk of the Bank of Korea |
|  | KB Securities Co., Ltd. and others | 133860 | Derivatives transactions |
|  | KB Insurance Co., Ltd. and others | 121880 | Others |
|  |  | 9354998 |  |
|  Mortgage loans | Others | 9659575 | Covered bond and others |
|  |  | 24049306 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

8.2 Fair value of collateral available to sell or repledge, and collateral sold or repledged, regardless of debtor's default as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value of**<br>**collateral held** | **Fair value of**<br>**collateral held** | **Fair value of collateral**<br>**sold or repledged** |
|  Securities |  | 2572441 |  |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Fair value of**<br>**collateral held** | **Fair value of**<br>**collateral held** | **Fair value of collateral**<br>**sold or repledged** |
|  Securities |  | 5936919 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**9. Derivative Financial Instruments and Hedge Accounting** 

The Bank engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Bank's own assets and liabilities. In particular, the Bank applies fair value hedge accounting using interest rate swaps to hedge the risk of changes in fair value due to the changes in interest rate of structured debentures in Korean won, debentures, structured deposits in foreign currencies, and debt securities at fair value through other comprehensive income. Also, the Bank applies cash flow hedge accounting using interest rate swaps to hedge the risk of changes in cash flows of debentures in foreign currencies, borrowings in foreign currencies, and group of loans measured at amortized cost.

9.1 Details of derivative financial instruments held for trading as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Notional**<br>**amount** | **Assets** | **Liabilities** | **Notional**<br>**amount** | **Assets** | **Liabilities** |
|  **Interest rate** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 2765927 | 355407 | 11092 | 738589 | 24928 | 296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures <sup>1</sup> | 1626608 |  |  | 1640283 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps <sup>2</sup> | 222419084 | 759599 | 469544 | 200308355 | 302530 | 323095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options | 9798000 | 268469 | 265283 | 11657000 | 172060 | 195666 |
|  | 236609619 | 1383475 | 745919 | 214344227 | 499518 | 519057 |
|  **Currency** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwards | 106889214 | 2537700 | 2346894 | 94195130 | 1211110 | 835405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures <sup>1</sup> | 50692 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 93409026 | 3563775 | 4067824 | 65641211 | 1111462 | 1330595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options | 2270274 | 24585 | 29294 | 2051034 | 7643 | 13376 |
|  | 202619206 | 6126060 | 6444012 | 161887375 | 2330215 | 2179376 |
|  **Stock and index** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options | 355 | 33 |  | 355 | 17 |  |
|  | 355 | 33 |  | 355 | 17 |  |
|  **Credit** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  |  |  | 13423 |  |  |
|  |  |  |  | 13423 |  |  |
|  | 439229180 | 7509568 | 7189931 | 376245380 | 2829750 | 2698433 |

---

<sup>1</sup> Gains or losses arising from daily mark-to-market futures are reflected in the margin accounts.

<sup>2</sup> Notional amounts of W 184,555,603 million and W 158,924,418 million as of December 31, 2022 and 2021, respectively, were traded through the central clearing house. 

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **1 year** | **2 years** | **3 years** | **4 years** | **5 years** | **Over**<br>**5 years** | **Total** |
|  **Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 5064802 | 1128620 | 2660326 | 1862039 | 426551 | 2147845 | 13290183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 4.17 | 4.52 | 4.64 | 4.56 | 4.36 | 4.64 | 4.43 |
|  **Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 843555 | 226730 |  |  | 806003 |  | 1876288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 4.64 | 4.06 |  |  | 5.10 |  | 4.77 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **1 year** | **2 years** | **3 years** | **4 years** | **5 years** | **Over**<br>**5 years** | **Total** |
|  **Fair value hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 1044669 | 1171185 | 701102 | 2153038 | 1420914 | 2419231 | 8910139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 0.94 | 1.23 | 1.04 | 1.16 | 1.06 | 1.39 | 1.18 |
|  **Cash flow hedge** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nominal amount of the hedging instrument | 2843325 | 414925 |  |  |  |  | 3258250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average price condition (%), (CD and LIBOR) | 0.93 | 0.76 |  |  |  |  | 0.91 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

9.3 Fair Value Hedge

9.3.1 Details of fair value hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** |
|  |  | **Carrying amount** | **Carrying amount** | **Accumulated amount<br>of hedge adjustments** | **Accumulated amount<br>of hedge adjustments** | **Changes<br>in fair** |
|  |  | **Assets** | **Liabilities** | **Assets** | **Liabilities** | **value** |
|  **Interest rate** | Debt securities in Korean won | 2467171 |  | (107444) |  | (86757) |
|  | Debt securities in foreign currencies | 3142972 |  | (232085) |  | (215184) |
|  | Deposits in foreign currencies |  | 29429 |  | (8591) | 6976 |
|  | Debentures in Korean won |  | 5690371 |  | (249629) | 171841 |
|  | Debentures in foreign currencies |  | 1196781 |  | (95865) | 123817 |
|  |  | 5610143 | 6916581 | (339529) | (354085) | 693 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** |
|  |  | **Carrying amount** | **Carrying amount** | **Accumulated amount<br>of hedge adjustments** | **Accumulated amount<br>of hedge adjustments** | **Changes<br>in fair** |
|  |  | **Assets** | **Liabilities** | **Assets** | **Liabilities** | **value** |
|  **Interest rate** | Debt securities in Korean won | 1627228 |  | (20272) |  | (21071) |
|  | Debt securities in foreign currencies | 3567662 |  | (12505) |  | (71246) |
|  | Deposits in foreign currencies |  | 93521 |  | (1319) | 3222 |
|  | Debentures in Korean won |  | 2470123 |  | (79877) | 70308 |
|  | Debentures in foreign currencies |  | 1154178 |  | 27953 | 45132 |
|  |  | 5194890 | 3717822 | (32777) | (53243) | 26345 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

9.3.2 Details of derivative instruments designated as fair value hedge as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** |
|  | **Notional<br>amount** | **Assets** | **Liabilities** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 13290183 | 186258 | 104856 | (1245) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** |
|  | **Notional<br>amount** | **Assets** | **Liabilities** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps | 8910139 | 127290 | 38253 | (33228) |

---

9.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | <br> **2022** | **2021** |
|  Interest rate | (552) | (6883) |

---

9.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | <br> **2022** | **2021** |
|  Losses on hedging instruments | 28171 | (12657) |
|  Gains on hedged items attributable to the hedged risk | (28752) | 13056 |
|  | (581) | 399 |

---

9.4 Cash Flow Hedge

9.4.1 Details of cash flow hedged items as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | <br> **Cash flow hedge reserve** | <br> **Cash flow hedge reserve** | **Changes in fair value** | **Changes in fair value** |
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **2022** | **2021** |
|  Interest rate risk | 33921 | (89) | (47251) | (11306) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

9.4.2 Details of derivative instruments designated as cash flow hedge as of December 31, 2022 and 2021 and changes in fair value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
|  | **Notional<br>amount** | **Notional<br>amount** | **Assets** | **Assets** | **Liabilities** | **Changes in<br>fair value** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 1876288 |  | 51968 |  |  | 44064 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
|  | **Notional<br>amount** | **Notional<br>amount** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Changes in<br>fair value** | **Changes in<br>fair value** |
|  **Interest rate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 3258250 |  | 3134 |  | 4218 |  | 11555 |

---

9.4.3 Gains on cash flow hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Gains on hedging instruments: | 44064 | 11555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective portion of gains on cash flow hedging instruments<br>(recognized in other comprehensive income) | 43886 | 11468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ineffective portion of gains on cash flow hedging instruments<br>(recognized in profit) | 178 | 87 |

---

9.4.4 Amounts recognized in other comprehensive income and reclassified from equity to profit or loss related to derivative instruments designated as cash allow hedge for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Other comprehensive income | 43886 | 11468 |
|  Reclassification to profit | 2388 | 2303 |
|  Income tax effect | (12264) | (3787) |
|  | 34010 | 9984 |

---

9.4.5 As of December 31, 2022, the hedged items subject to cash flow hedge are exposed to the risk of changes in cash flows until August 5, 2027.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

9.5 Interest Rate Benchmark Reform

The USD LIBOR interest rate will be replaced by the Secured Overnight Financing Rate ("SOFR") based on actual transactions. In the case of KRW, the Korean government bond/monetary stabilization bond RP rate has been finally decided as the Risk-Free Reference Rate ("RFR") and will replace the Certificate of Deposit ("CD") rate in the mid to long-term. Within the corresponding hedging relationship of related significant interest rate benchmark, the Bank assumed that the spread to be changed on the RFR basis including SOFR would be similar to that included in the interest rate swap used as a hedging instrument, and no other changes were assumed.

Details of the Bank's exposure to hedging relationships related to the interest rate benchmark reform as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won and millions of US dollars)* |  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| **Interest rate**<br> **benchmark** | **Currency** | **Carrying amount**<br>**of non-derivative<br>assets** | **Carrying amount**<br>**of non-derivative<br>liabilities** | **Notional amount**<br>**of hedging<br>instruments** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CD#3M | KRW | 3060791 | 5690371 | 6440000 |
|  USD#LIBOR#3M | USD | 1895 | 1257 | 3478 |
|  USD#LIBOR#6M | USD | 167 |  | 182 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won and millions of US dollars)* |  | <br> **December 31, 2021** | <br> **December 31, 2021** | <br> **December 31, 2021** |
| **Interest rate**<br> **benchmark** | **Currency** | **Carrying amount**<br>**of non-derivative<br>assets** | **Carrying amount**<br>**of non-derivative<br>liabilities** | **Notional amount**<br>**of hedging<br>instruments** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CD#3M | KRW | 3123388 | 2470123 | 5690000 |
|  USD#LIBOR#3M | USD | 2695 | 2154 | 4386 |
|  USD#LIBOR#6M | USD | 224 |  | 225 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**10. Loans Measured at Amortized Cost** 

10.1 Details of loans as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Loans | 365118018 | 350369299 |
|  Deferred loan origination fees and costs | 494795 | 571181 |
|  Less: Allowances for credit losses | (1773728) | (1501718) |
|  | 363839085 | 349438762 |

---

10.2 Details of loans to banks as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Loans | 12027410 | 10103076 |
|  Less: Allowances for credit losses | (2881) | (691) |
|  | 12024529 | 10102385 |

---

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Retail** | **Corporate** | **Total** |
|  Loans in Korean won | 166411567 | 159709016 | 326120583 |
|  Loans in foreign currencies | 130285 | 16482236 | 16612521 |
|  Domestic import usance bills |  | 4499072 | 4499072 |
|  Off-shore funding loans |  | 963709 | 963709 |
|  Call loans |  | 100000 | 100000 |
|  Bills bought in Korean won |  | 860767 | 860767 |
|  Bills bought in foreign currencies |  | 1777661 | 1777661 |
|  Guarantee payments under acceptances and guarantees |  | 2083 | 2083 |
|  Bonds purchased under repurchase agreements |  | 2281357 | 2281357 |
|  Privately placed bonds |  | 367650 | 367650 |
|  | 166541852 | 187043551 | 353585403 |
|  Proportion (%) | 47.10 | 52.90 | 100.00 |
|  Less: Allowances for credit losses | (725584) | (1045263) | (1770847) |
|  | 165816268 | 185998288 | 351814556 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Retail** | **Corporate** | **Total** |
|  Loans in Korean won | 170531863 | 146579750 | 317111613 |
|  Loans in foreign currencies | 168012 | 11797445 | 11965457 |
|  Domestic import usance bills |  | 3311142 | 3311142 |
|  Off-shore funding loans |  | 1135753 | 1135753 |
|  Call loans |  | 735565 | 735565 |
|  Bills bought in Korean won |  | 2209 | 2209 |
|  Bills bought in foreign currencies |  | 1999449 | 1999449 |
|  Guarantee payments under acceptances and guarantees |  | 3060 | 3060 |
|  Bonds purchased under repurchase agreements |  | 4368420 | 4368420 |
|  Privately placed bonds |  | 204736 | 204736 |
|  | 170699875 | 170137529 | 340837404 |
|  Proportion (%) | 50.08 | 49.92 | 100.00 |
|  Less: Allowances for credit losses | (558607) | (942420) | (1501027) |
|  | 170141268 | 169195109 | 339336377 |

---

10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Increase** | **Decrease** | **Others** | **Ending** |
|  **Deferred loan origination costs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 583477 | 243913 | (305106) |  | 522284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 168 | 550 | (343) | 4 | 379 |
|  | 583645 | 244463 | (305449) | 4 | 522663 |
|  **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 10076 | 23067 | (9104) |  | 24039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in foreign currencies and others | 2389 | 8432 | (6998) | 6 | 3829 |
|  | 12465 | 31499 | (16102) | 6 | 27868 |
|  | 571180 | 212964 | (289347) | (2) | 494795 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Increase** | **Decrease** | **Others** | **Ending** |
|  **Deferred loan origination costs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 590063 | 327891 | (334478) | 1 | 583477 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 569 | 51 | (451) | (1) | 168 |
|  | 590632 | 327942 | (334929) |  | 583645 |
|  **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** | **Deferred loan origination fees** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in Korean won | 6998 | 5479 | (2400) | (1) | 10076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans in foreign currencies and others | 3341 | 108 | (1063) | 2 | 2388 |
|  | 10339 | 5587 | (3463) | 1 | 12464 |
|  | 580293 | 322355 | (331466) | (1) | 571181 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**11. Allowances for Credit Losses** 

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Retail** | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Corporate** |
| | | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | | | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** | |
| | **12-month<br>expected**<br>**credit<br>losses** | **Non-**<br>**impaired** | **Impaired** | **Credit**<br>**impaired<br>approach** | **12-month<br>expected**<br>**credit<br>losses** | **Non-**<br>**impaired** | **Impaired** | **Credit**<br>**impaired<br>approach** |
|  Beginning | 288395 | 164845 | 105367 |  | 321650 | 426492 | 194969 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 115382 | (115348) | (34) |  | 120159 | (119860) | (299) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (94126) | 99854 | (5728) |  | (91116) | 114517 | (23401) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (705) | (38984) | 39689 |  | (1122) | (37983) | 39105 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | (1) | (213834) |  |  | (3) | (146176) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (805) | (137) | (289) |  |  | (58) | (14064) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses <sup>1, 2</sup>  | 108306 | 84778 | 189369 |  | 17858 | 118015 | 127171 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | (99) | 20 | (331) |  | 2163 | 1355 | (1228) |  |
|  Ending | 416348 | 195027 | 114209 |  | 369592 | 502475 | 176077 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

*(In millions of Korean won)* 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Retail** | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Corporate** |
| | | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | | | **Lifetime expected**<br>**credit losses** | **Lifetime expected**<br>**credit losses** | |
| | **12-month<br>expected**<br>**credit<br>losses** | **Non-impaired** | **Impaired** | **Credit**<br>**impaired<br>approach** | **12-month<br>expected**<br>**credit<br>losses** | **Non-impaired** | **Impaired** | **Credit**<br>**impaired<br>approach** |
|  Beginning | 245556 | 165318 | 110868 |  | 262271 | 340023 | 264864 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 111827 | (111786) | (41) |  | 79615 | (61021) | (18594) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (88697) | 95807 | (7110) |  | (65533) | 82741 | (17208) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (673) | (38384) | 39057 |  | (1054) | (32254) | 33308 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | 12 | (227690) |  |  | (4) | (163698) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (1100) | (33) | (975) |  | (5) |  | (15662) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses <sup>1, 2</sup>  | 22585 | 54002 | 192554 |  | 42812 | 98242 | 120880 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | (1103) | (91) | (1296) |  | 3544 | (1235) | (8921) |  |
|  Ending | 288395 | 164845 | 105367 |  | 321650 | 426492 | 194969 |  |

---

<sup>1</sup> Provision (reversal) for credit losses in the statements of comprehensive income also includes provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note 22.2), provision (reversal) for credit losses of financial guarantee contracts (Note 22.4), provision (reversal) for credit losses of other financial assets (Note 18.2), provision (reversal) for credit losses of due from financial institutions (Note 7.3) and provision (reversal) for credit losses of debt securities (Note 12.5). 

<sup>2</sup> Includes W 223,355 million and W 222,227 million of collections from written-off loans for the years ended December 31, 2022 and 2021, respectively.

The Bank manages the written-off loans that their legal extinctive prescriptions have not been completed, and that have not been collected. The balances of those loans are W 7,037,343 million and W 7,551,517 million as of December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

11.2 Changes in gross carrying amount of loans for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** |
|  | **12-month** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Credit** |
|  | **expected credit<br>losses** | **Non-**<br>**impaired** | **Impaired** | **impaired<br>approach** |
|  Beginning | 324592824 | 25567832 | 779824 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 33342008 | (33283109) | (58899) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (36557245) | 36905018 | (347773) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (251387) | (1228003) | 1479390 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | (4) | (360010) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (2449296) | (13615) | (129128) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) (execution, repayment, and others) | 20154062 | (1978727) | (550949) |  |
|  Ending | 338830966 | 25969392 | 812455 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** |
|  | **12-month** | **Lifetime expected credit losses** | **Lifetime expected credit losses** | **Credit** |
|  | **expected credit<br>losses** | **Non-**<br>**impaired** | **Impaired** | **impaired<br>approach** |
|  Beginning | 294886513 | 23229852 | 946202 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 29523996 | (29447432) | (76564) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (non-impaired) | (34197063) | 34611267 | (414204) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses (impaired) | (284649) | (1192440) | 1477089 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs |  | 8 | (391388) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (2755184) | (7780) | (136052) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) (execution, repayment, and others) | 37419211 | (1625643) | (625259) |  |
|  Ending | 324592824 | 25567832 | 779824 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**12. Financial Assets at Fair Value through Profit or Loss and Financial Investments** 

12.1 Details of financial assets at fair value through profit or loss and financial investments as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Financial assets at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 4084362 | 2044994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds | 5287488 | 5500948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 145007 | 501013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficiary certificates | 6666088 | 5617259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment funds | 528795 | 378712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities | 934068 | 551763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | 137831 | 36435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other loans | 280905 | 37382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments indexed to the price of gold | 90006 | 113622 |
|  | 18154550 | 14782128 |
|  **Financial investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through other comprehensive income |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 7672296 | 5569123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds | 17079749 | 18680309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 12603246 | 12445893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities | 237605 | 782401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities | 167247 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | 1402899 | 3144066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity investments | 15555 | 25670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Privately placed bonds | 231021 | 269609 |
|  | 39409618 | 40917071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at amortized cost |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and public bonds | 6520633 | 5742285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial bonds | 10315697 | 2879015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 10026039 | 6358169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities | 7395434 | 6659710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt securities | 363984 | 31106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses | (5384) | (3227) |
|  | 34616403 | 21667058 |
|  | 74026021 | 62584129 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

12.2 Dividend income from equity securities designated at fair value through other comprehensive income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  |  | **From the**<br>**equity securities<br>derecognized** | **From the**<br>**equity securities**<br>**held** | **From the**<br>**equity securities<br>derecognized** | **From the**<br>**equity securities**<br>**held** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | Listed |  | 409 | 7106 | 300 |
|  | Unlisted |  | 9476 | 372 | 10104 |
|  |  |  | 9885 | 7478 | 10404 |

---

12.3 Derecognized equity securities measured at fair value through other comprehensive income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  |  | **Disposal**<br>**price\*** | **Accumulated other<br>comprehensive**<br>**loss as of**<br>**disposal date** | **Disposal**<br>**price \*** | **Accumulated other<br>comprehensive<br>income as of<br>disposal date** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | Listed | 425736 | 335203 | 575288 | (319162) |
|  | Unlisted |  |  | 458 | (162) |
|  |  | 425736 | 335203 | 575746 | (319324) |

---

\* The stocks were disposed of according to the stock price increase and joint sale resolution.

12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** |
|  | **Provision** | **Reversal** | **Total** |
|  Financial assets at fair value through other comprehensive income | 1666 | (3462) | (1796) |
|  Securities measured at amortized cost | 2771 | (613) | 2158 |
|  | 4437 | (4075) | 362 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** |
|  | **Provision** | **Reversal** | **Total** |
|  Financial assets at fair value through other comprehensive income | 6156 | (330) | 5826 |
|  Securities measured at amortized cost | 1604 | (551) | 1053 |
|  | 7760 | (881) | 6879 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

12.5 Changes in allowances for credit losses of financial investments for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** |
|  | **12-month expected** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 11985 | 27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (612) | (20) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 99 | 263 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 129 |  |  |
|  Ending | 11601 | 270 |  |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** |
|  | **12-month expected** | **Lifetime expected credit losses** | **Lifetime expected credit losses** |
|  | **credit losses** | **Non-impaired** | **Impaired** |
|  Beginning | 6715 | 39 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | (1722) | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 6891 | (12) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 101 | 4 |  |
|  Ending | 11985 | 27 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**13. Investments in Associates and Subsidiaries** 

13.1 Details of investments in associates and subsidiaries as of December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In thousands of US dollars)*<br> *(In hundred millions of Indonesian rupiah)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. <sup>1</sup> | 9.00 | 4500 | 4959 | 2769 | Credit information | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. <sup>1</sup> | 14.99 | 9159 | (15963) | 9159 | Operation of highways and related facilities | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | 30.00 | 14361 | 13165 | 14361 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | 45.00 | 4500 | 4038 | 4500 | Discovery of and investment in promising FinTech-business venture | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | 46.67 | 26600 | 25357 | 26600 | Digital platform and Tech-based investment in promising companies | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Prime Digital Platform Fund | 43.33 | 2600 | 2563 | 2600 | Digital platform and Tech-based investment in promising companies | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund | 50.00 | 2200 | 9793 | 2200 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB High-tech Company Investment Fund | 50.00 | 1500 | 10662 | 1500 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | 38.47 | 8144 | 19840 | 8144 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | 33.33 | 1800 | 2989 | 1800 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | 30.00 | 5220 | 7390 | 5220 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund No.2 | 37.50 | 15000 | 15204 | 15000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation Investment Fund Limited Partnership | 25.74 | 35000 | 34693 | 35000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 21.28 | 6600 | 8901 | 6600 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 22.73 | 43850 | 50366 | 43850 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-UTC Inno-Tech Venture Fund | 29.53 | 14250 | 12786 | 14250 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 | 26.95 | 10000 | 9542 | 10000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 28.57 | 10000 | 8380 | 10000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 25.00 | 43000 | 40288 | 43000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Scale Up Fund II | 20.00 | 4500 | 4438 | 4500 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Bio Global Expansion Private Equity Fund No.1 | 26.32 | 10000 | 10519 | 10000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | 27.27 | 9000 | 8709 | 9000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | 29.41 | 6600 | 6217 | 6600 | Investment finance | Korea |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and subsidiaries as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In thousands of US dollars)*<br> *(In hundred millions of Indonesian rupiah)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| &nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | 20.00 | 13600 | 13241 | 13600 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; All Together Korea Fund No.2 <sup>2</sup> | 99.99 | 10000 | 10244 | 10000 | Asset management | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Shinla Construction Co., Ltd. <sup>3</sup> | 20.17 |  | (551) |  | Specialty construction | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Terra Corporation <sup>3</sup> | 24.06 |  | 2 |  | Manufacture of fabricated and processed metal products | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; MJT&I Corp. <sup>3</sup> | 22.89 |  | (882) |  | Wholesale of other merchandise | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Jungdong Steel Co., Ltd. <sup>3</sup> | 42.65 |  | (433) |  | Wholesale of primary metal | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; DSMETAL Co., Ltd. <sup>3</sup> | 26.49 |  | (101) |  | Manufacture of metal door, windows, shutter and relevant products | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Shinhwa Underwear Co., Ltd. <sup>3</sup> | 26.05 |  | (73) |  | Manufacture of underwear and sleepwear | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Jaeyang Industry Co., Ltd. <sup>3</sup> | 20.86 |  | (552) |  | Manufacture of luggage and other protective cases | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Kendae Co., Ltd. <sup>3</sup> | 41.01 |  | (252) |  | Screen printing | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Jinseung Tech Co., Ltd. <sup>3</sup> | 30.04 |  | (191) |  | Manufacture of other general-purpose machinery | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Dongjo Co., Ltd. <sup>3</sup> | 29.29 |  | (5) |  | Wholesale of agricultural and forestry machinery and equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Korea NM Tech Co., Ltd. <sup>3</sup> | 22.41 |  | 549 |  | Manufacture of motor vehicles, trailers and semitrailers | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. <sup>3</sup> | 25.34 |  | 1112 |  | Office, commercial and institutional building construction | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. <sup>3</sup> | 49.36 |  | 523 |  | Earth works | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Chongil Machine & Tools Co., Ltd. <sup>3</sup> | 20.40 |  | (178) |  | Wholesale of machinery and equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Imt Technology Co., Ltd. <sup>3</sup> | 25.29 |  | 34 |  | Computer Peripherals Distribution | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Iwon Alloy Co., Ltd. <sup>3</sup> | 23.20 |  | 374 |  | Manufacture of smelting, refining and alloys | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Computerlife Co., Ltd. <sup>3</sup> | 25.41 |  | (130) |  | Publishing of magazines and periodicals (publishing industry) | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. <sup>3</sup> | 20.40 |  | (318) |  | Manufacture of multimedia and video devices | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. <sup>3</sup> | 22.77 |  | (36) |  | Manufacture of special glass | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Il-Kwang Electronic Materials Co., Ltd. <sup>3</sup> | 29.06 |  | (555) |  | Manufacture of electronic parts | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; So-Myung Recycling Co., Ltd. <sup>3</sup> | 20.23 |  | 246 |  | Manufacture of nonferrous metal | Korea |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and subsidiaries as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In thousands of US dollars)*<br> *(In hundred millions of Indonesian rupiah)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| &nbsp;&nbsp;&nbsp;&nbsp; IDTECK Co., Ltd. <sup>3</sup> | 20.54 |  | 42 |  | Other manufacturing of wireless telecommunications equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; PIP System Co., Ltd. <sup>3</sup> | 20.72 |  | 27 |  | Print equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Gwang Myung Paper Co., Ltd. <sup>3</sup> | 20.54 |  | 84 |  | Wholesale of luggage and other protective cases | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; D-Partner <sup>3</sup> | 20.94 |  | 832 |  | Backlight film | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Inter Shipping Co., Ltd. <sup>3</sup> | 42.09 |  | (1038) |  | Sea freight water transport | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Chunsung-meat Co., Ltd. <sup>3</sup> | 26.74 |  | 246 |  | Wholesale of meat | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; DS Fashionbiz Co., Ltd. <sup>3</sup> | 47.64 |  | (1) |  | Manufacture of textiles | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; ALTSCS Co., Ltd. <sup>3</sup> | 47.11 |  | 408 |  | Manufacture of motor vehicle parts | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; E-Won Chemical Co., Ltd. <sup>3</sup> | 24.30 |  | 35 |  | Manufacture, wholesale and retail trade of feeds | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; TMAPMOBILITY CO.,LTD. <sup>1</sup> | 8.25 | 200000 | 61518 | 200000 | Application software development and supply | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; TKDS CO., LTD <sup>3</sup> | 20.03 |  | 171 |  | Manufacture of video and other imaging equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; SANDLE FARMING ASSOCIATION <sup>3</sup> | 23.04 |  | 306 |  | Manufacture of edible refined oil and processed oil | Korea |
|  |  | 511984 | 379534 | 510253 |  |  |
|  **Subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. <sup>4</sup> | 100.00 | USD 76,259 | 140477 | 86761 | Banking and foreign exchange transaction | Cambodia |
| &nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank(China) Ltd. <sup>4</sup> | 100.00 | USD 383,875 | 501506 | 418155 | Banking and foreign exchange transaction | China |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Microfinance Myanmar Co., Ltd. <sup>4</sup> | 100.00 | USD 20,000 | 10636 | 22405 | Micro financing | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. <sup>4</sup> | 100.00 | USD 200,000 | 248823 | 221780 | Banking and foreign exchange transaction | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. <sup>4</sup> | 99.99 | USD 920,839 | 1083421 | 1112609 | Micro financing | Cambodia |
| &nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk <sup>4</sup> | 67.00 | IDR 88,228 | (86104) | 375332 | Banking and foreign exchange transaction | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp; Orient Kwang-yang Co., Ltd. | 36.16 |  | (5930) |  | Building of ships | Korea |
|  |  |  | 1892829 | 2237042 |  |  |
|  |  |  | 2272363 | 2747295 |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and subsidiaries as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In thousands of US dollars)*<br> *(In hundred millions of Indonesian rupiah)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
|  **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. <sup>1</sup> | 9.00 | 4500 | 4497 | 2769 | Credit information | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company <sup>1</sup> | 12.61 | 105923 | 99785 | 109584 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. <sup>1</sup> | 14.99 | 9159 | (19481) | 9159 | Operation of highways and related facilities | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | 30.00 | 4613 | 3726 | 4613 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | 45.00 | 4500 | 4098 | 4500 | Discovery of and investment in promising FinTech-business venture | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | 46.67 | 12600 | 12599 | 12600 | Digital platform and Tech-based investment in promising companies | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund | 50.00 | 3900 | 10275 | 3900 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB High-tech Company Investment Fund | 50.00 | 1500 | 10493 | 1500 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | 38.47 | 12344 | 22926 | 12344 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | 33.33 | 4400 | 5895 | 4400 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | 30.00 | 7650 | 9015 | 7650 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund No.2 | 37.50 | 15000 | 13838 | 15000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation Investment Fund Limited Partnership | 25.74 | 35000 | 35517 | 35000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 21.28 | 13000 | 14834 | 13000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 22.73 | 42000 | 49946 | 42000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-UTC Inno-Tech Venture Fund | 29.53 | 14250 | 13982 | 14250 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 | 26.95 | 10000 | 9604 | 10000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 28.57 | 10000 | 9571 | 10000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 25.00 | 31000 | 31217 | 31000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB Bio Global Expansion Private Equity Fund No.1 | 26.32 | 10000 | 9978 | 10000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | 27.27 | 3000 | 2975 | 3000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | 29.41 | 600 | 600 | 600 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | 20.00 | 4000 | 3991 | 4000 | Investment finance | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; All Together Korea Fund No.2 <sup>2</sup> | 99.99 | 10000 | 10070 | 10000 | Asset management | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Shinla Construction Co., Ltd. <sup>3</sup> | 20.17 |  | (551) |  | Specialty construction | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp; Terra Corporation <sup>3</sup> | 24.06 |  | 2 |  | Manufacture of fabricated and processed metal products | Korea |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and subsidiaries as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In thousands of US dollars)*<br> *(In hundred millions of Indonesian rupiah)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MJT&I Corp. <sup>3</sup> | 22.89 |  | (881) |  | Wholesale of other merchandise | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdong Steel Co., Ltd. <sup>3</sup> | 42.65 |  | (433) |  | Wholesale of primary metal | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DSMETAL Co., Ltd. <sup>3</sup> | 26.49 |  | (100) |  | Manufacture of metal door, windows, shutter and relevant products | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shinhwa Underwear Co., Ltd. <sup>3</sup> | 26.05 |  | (41) |  | Manufacture of underwear and sleepwear | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jaeyang Industry Co., Ltd. <sup>3</sup> | 20.86 |  | (552) |  | Manufacture of luggage and other protective cases | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kendae Co., Ltd. <sup>3</sup> | 41.01 |  | (252) |  | Screen printing | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jinseung Tech Co., Ltd. <sup>3</sup> | 30.04 |  | (206) |  | Manufacture of other general-purpose machinery | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dongjo Co., Ltd. <sup>3</sup> | 29.29 |  | 712 |  | Wholesale of agricultural and forestry machinery and equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea NM Tech Co., Ltd. <sup>3</sup> | 22.41 |  | 552 |  | Manufacture of motor vehicles, trailers and semitrailers | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. <sup>3</sup> | 25.34 |  | 1105 |  | Office, commercial and institutional building construction | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. <sup>3</sup> | 49.36 |  | 833 |  | Earth works | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chongil Machine & Tools Co., Ltd. <sup>3</sup> | 20.40 |  | (171) |  | Wholesale of machinery and equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Imt Technology Co., Ltd. <sup>3</sup> | 25.29 |  | 25 |  | Computer Peripherals Distribution | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Iwon Alloy Co., Ltd. <sup>3</sup> | 23.20 |  | 394 |  | Manufacture of smelting, refining and alloys | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Carlife Co., Ltd. <sup>3</sup> | 24.39 |  | (62) |  | Publishing of magazines and periodicals (publishing industry) | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Computerlife Co., Ltd. <sup>3</sup> | 25.41 |  | (137) |  | Publishing of magazines and periodicals (publishing industry) | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. <sup>3</sup> | 20.40 |  | (316) |  | Manufacture of multimedia and video devices | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. <sup>3</sup> | 22.77 |  | (29) |  | Manufacture of special glass | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Il-Kwang Electronic Materials Co., Ltd. <sup>3</sup> | 29.06 |  | (557) |  | Manufacture of electronic parts | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; So-Myung Recycling Co., Ltd. <sup>3</sup> | 20.23 |  | 215 |  | Manufacture of nonferrous metal | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IDTECK Co., Ltd. <sup>3</sup> | 20.54 |  | (208) |  | Other manufacturing of wireless telecommunications equipment | Korea |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.1 Details of investments in associates and subsidiaries as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)*<br> *(In thousands of US dollars)*<br> *(In hundred millions of Indonesian rupiah)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)*<br> *(In thousands of US dollars)*<br> *(In hundred millions of Indonesian rupiah)* | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Share of<br>net asset<br>amount** | **Carrying<br>amount** | **Industry** | **Location** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PIP System Co., Ltd. <sup>3</sup> | 20.72 |  | 27 |  | Print equipment | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gwang Myung Paper Co., Ltd. <sup>3</sup> | 20.54 |  | 84 |  | Wholesale of luggage and other protective cases | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D-Partner <sup>3</sup> | 20.94 |  | 816 |  | Backlight film | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter Shipping Co., Ltd. <sup>3</sup> | 42.09 |  | (17) |  | Sea freight water transport | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chunsung-meat Co., Ltd. <sup>3</sup> | 26.74 |  | 270 |  | Wholesale of meat | Korea |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DS Fashionbiz Co., Ltd. <sup>3</sup> | 47.64 |  | (1) |  | Manufacture of textiles | Korea |
|  |  | 368939 | 370472 | 370869 |  |  |
|  **Subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. <sup>4</sup> | 100.00 | USD 76,259 | 118940 | 86761 | Banking and foreign exchange transaction | Cambodia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank(China) Ltd. <sup>4</sup> | 100.00 | USD 383,875 | 516742 | 418155 | Banking and foreign exchange transaction | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Microfinance Myanmar Co., Ltd. <sup>4</sup> | 100.00 | USD 20,000 | 13042 | 22405 | Micro financing | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. <sup>4</sup> | 100.00 | USD 200,000 | 233987 | 221780 | Banking and foreign exchange transaction | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. <sup>4</sup> | 99.99 | USD 920,839 | 798794 | 1112609 | Micro financing | Cambodia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk <sup>4</sup> | 67.00 | IDR 88,228 | 427443 | 731659 | Banking and foreign exchange transaction | Indonesia |
|  |  |  | 2108948 | 2593369 |  |  |
|  |  |  | 2479420 | 2964238 |  |  |

---

<sup>1</sup> As of December 31, 2022 and 2021, the Bank can exercise significant influence on the decision-making processes of the associate's financial and business policies through participation in governing bodies.

<sup>2</sup> As of December 31, 2022 and 2021, the Bank participates in the investment management committee but cannot exercise control.

<sup>3</sup> The investment in associates was reclassified from financial assets at fair value through other comprehensive income due to termination of rehabilitation procedures.

<sup>4</sup> Acquisition costs of investments in foreign subsidiaries are presented in US dollars and IDR.

Although the Bank holds 20% or more of the ownership in several investment trusts including KB Hanbando BTL Private Special Asset Fund No.1, those investment trusts are excluded from associates because the Bank's influence on those trusts is limited according to the trust agreement. In addition, the Bank holds 20% or more of its ownership in Seokwang T&I Co., Ltd. and six other companies, but those companies are excluded from associates, because the Bank's influence on those companies is limited due to the status of those companies such as bankruptcy and rehabilitation proceedings.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Changes in carrying amount of investments in associates and subsidiaries for the years ended December 31,
2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and others** | **Impairment** | **Ending** |
|  **Associates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | 2769 |  |  |  | 2769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | 109584 |  | (109584) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | 9159 |  |  |  | 9159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | 4613 | 9748 |  |  | 14361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | 4500 |  |  |  | 4500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | 12600 | 14000 |  |  | 26600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Prime Digital Platform Fund |  | 2600 |  |  | 2600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund | 3900 |  | (1700) |  | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-tech Company Investment Fund | 1500 |  |  |  | 1500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | 12344 |  | (4200) |  | 8144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | 4400 |  | (2600) |  | 1800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | 7650 |  | (2430) |  | 5220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund No.2 | 15000 |  |  |  | 15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation Investment Fund Limited Partnership | 35000 |  |  |  | 35000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 13000 |  | (6400) |  | 6600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 42000 | 8000 | (6150) |  | 43850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-UTC Inno-Tech Venture Fund | 14250 |  |  |  | 14250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 | 10000 |  |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 10000 |  |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 31000 | 12000 |  |  | 43000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Scale Up Fund II |  | 4500 |  |  | 4500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bio Global Expansion Private Equity Fund No.1 | 10000 |  |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | 3000 | 6000 |  |  | 9000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | 600 | 6000 |  |  | 6600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | 4000 | 9600 |  |  | 13600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Together Korea Fund No.2 | 10000 |  |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TMAPMOBILITY CO.,LTD. |  | 200000 |  |  | 200000 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Changes in carrying amount of investments in associates and subsidiaries for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and others** | **Impairment** | **Ending** |
|  **Subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | 86761 |  |  |  | 86761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | 418155 |  |  |  | 418155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Microfinance Myanmar Co., Ltd. | 22405 |  |  |  | 22405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. | 221780 |  |  |  | 221780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | 1112609 |  |  |  | 1112609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | 731659 |  |  | (356327) | 375332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Orient Kwang-yang Co., Ltd. \* |  |  |  |  |  |
|  | 2964238 | 272448 | (133064) | (356327) | 2747295 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and others** | **Impairment** | **Ending** |
|  **Associates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | 2769 |  |  |  | 2769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | 109768 | 279 | (463) |  | 109584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GwS Private Securities Investment Trust | 89124 |  | (89124) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | 9159 |  |  |  | 9159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | 4613 |  |  |  | 4613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | 3375 | 1125 |  |  | 4500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund |  | 12600 |  |  | 12600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund | 6700 |  | (2800) |  | 3900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KoFC POSCO Hanwha KB Shared Growth Private Equity Fund No.2 | 7792 |  | (7792) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-tech Company Investment Fund | 4800 |  | (3300) |  | 1500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | 17113 |  | (4769) |  | 12344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | 6800 |  | (2400) |  | 4400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | 8880 | 1650 | (2880) |  | 7650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund No.2 | 15000 |  |  |  | 15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation Investment Fund Limited Partnership | 35000 |  |  |  | 35000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 13400 | 5000 | (5400) |  | 13000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 28500 | 13500 |  |  | 42000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-UTC Inno-Tech Venture Fund | 11610 | 3390 | (750) |  | 14250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 | 10000 |  |  |  | 10000 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

13.2 Changes in carrying amount of investments in associates and subsidiaries for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Acquisition<br>and others** | **Disposal**<br>**and others** | **Impairment** | **Ending** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund No.2 | 2500 | 7500 |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 4000 | 27000 |  |  | 31000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bio Global Expansion Private Equity Fund No.1 |  | 10000 |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund |  | 3000 |  |  | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund |  | 600 |  |  | 600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund |  | 4000 |  |  | 4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Together Korea Fund No.2 | 10000 |  |  |  | 10000 |
|  **Subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | 86761 |  |  |  | 86761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | 418155 |  |  |  | 418155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Microfinance Myanmar Co., Ltd. | 22405 |  |  |  | 22405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. | 221780 |  |  |  | 221780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | 709971 | 402638 |  |  | 1112609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | 338116 | 393543 |  |  | 731659 |
|  | 2198091 | 885825 | (119678) |  | 2964238 |

---

\* The investment was reclassified from associates to subsidiaries during the year ended December 31, 2022 due to additional share purchase.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**14. Property and Equipment, and Investment Properties** 

14.1 Property and Equipment

14.1.1 Details of property and equipment as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition**<br>**cost** | **Accumulated<br>depreciation** | **Accumulated<br>impairment losses** | **Carrying**<br>**amount** |
|  Land | 1827827 |  | (4) | 1827823 |
|  Buildings | 1723871 | (545387) | (5747) | 1172737 |
|  Leasehold improvements | 888348 | (837677) |  | 50671 |
|  Equipment and vehicles | 1215431 | (1080071) |  | 135360 |
|  Construction in-progress | 2372 |  |  | 2372 |
|  Right-of-use assets | 991148 | (650977) |  | 340171 |
|  | 6648997 | (3114112) | (5751) | 3529134 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition**<br>**cost** | **Accumulated<br>depreciation** | **Accumulated<br>impairment losses** | **Carrying**<br>**amount** |
|  Land | 1866830 |  | (4) | 1866826 |
|  Buildings | 1694900 | (522238) | (5747) | 1166915 |
|  Leasehold improvements | 853560 | (793733) |  | 59827 |
|  Equipment and vehicles | 1296746 | (1150651) |  | 146095 |
|  Construction in-progress | 24130 |  |  | 24130 |
|  Right-of-use assets | 860150 | (517755) |  | 342395 |
|  | 6596316 | (2984377) | (5751) | 3606188 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

14.1.2 Changes in property and equipment for the years ended December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **Beginning** | **Acquisition** | **Transfer <sup>2</sup>** | **Disposal** | **Depreciation** | **Others** | **Ending** |
|  Land | 1866826 | 55 | (32963) | (6072) |  | (23) | 1827823 |
|  Buildings | 1166915 | 1421 | 49755 | (3818) | (41496) | (40) | 1172737 |
|  Leasehold improvements | 59827 | 1672 | 33605 | (7) | (44504) | 78 | 50671 |
|  Equipment and vehicles | 146095 | 83939 | (817) | (380) | (93490) | 13 | 135360 |
|  Construction in-progress | 24130 | 92726 | (114484) |  |  |  | 2372 |
|  Right-of-use assets <sup>1</sup> | 342395 | 533562 | 255 | (382399) | (191569) | 37927 | 340171 |
|  | 3606188 | 713375 | (64649) | (392676) | (371059) | 37955 | 3529134 |

---

*(In millions of Korean won)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **Beginning** | **Acquisition** | **Transfer <sup>2</sup>** | **Disposal** | **Depreciation** | **Others** | **Ending** |
|  Land | 1911818 | 48 | (45032) |  |  | (8) | 1866826 |
|  Buildings | 1199872 | 316 | 10285 | (2123) | (41422) | (13) | 1166915 |
|  Leasehold improvements | 65579 | 16 | 39359 | (703) | (44619) | 195 | 59827 |
|  Equipment and vehicles | 175005 | 74841 | 1547 | (241) | (105244) | 187 | 146095 |
|  Construction in-progress | 14224 | 93132 | (83276) |  |  | 50 | 24130 |
|  Right-of-use assets <sup>1</sup> | 366623 | 476030 |  | (305340) | (197985) | 3067 | 342395 |
|  | 3733121 | 644383 | (77117) | (308407) | (389270) | 3478 | 3606188 |

---

<sup>1</sup> Effect of change in the lease term is reflected in acquisition and disposal based on gross amount. 

<sup>2</sup> Includes transfers with investment properties and assets held for sale.

14.1.3 Changes in accumulated impairment losses of property and equipment for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of property and equipment | (5751) |  |  |  | (5751) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of property and equipment | (6877) |  |  | 1126 | (5751) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

14.2 Investment Properties

14.2.1 Details of investment properties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition**<br>**cost** | **Accumulated**<br>**Depreciation** | **Carrying**<br>**amount** |
|  Land | 63139 |  | 63139 |
|  Buildings | 69628 | (13444) | 56184 |
|  | 132767 | (13444) | 119323 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition**<br>**cost** | **Accumulated**<br>**depreciation** | **Carrying**<br>**amount** |
|  Land | 55190 |  | 55190 |
|  Buildings | 49126 | (6665) | 42461 |
|  | 104316 | (6665) | 97651 |

---

14.2.2 Valuation techniques and inputs used to measure the fair value of investment properties as of December 31, 2022, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Fair value** | **Valuation techniques** | **Valuation techniques** | **Inputs** |
|  Land and buildings |  | 194157 |  | Cost approach method | - Price per square meter<br> - Replacement cost |

---

Fair value of investment properties amounts to W 194,157 million and W 150,299 million as of December 31, 2022 and 2021, respectively. Investment properties are measured by qualified independent appraisers with recent experience in valuing similar properties in the same area. In addition, all investment properties are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

Rental income from above investment properties amounts to W 5,441 million and W 4,477 million for the years ended December 31, 2022 and 2021, respectively.

14.2.3 Changes in investment properties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Acquisition** | **Transfer** | **Depreciation** | **Ending** |
|  Land | 55190 |  | 7949 |  | 63139 |
|  Buildings | 42461 |  | 15381 | (1658) | 56184 |
|  | 97651 |  | 23330 | (1658) | 119323 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Acquisition** | **Transfer** | **Depreciation** | **Ending** |
|  Land | 50700 |  | 4490 |  | 55190 |
|  Buildings | 38406 |  | 5246 | (1191) | 42461 |
|  | 89106 |  | 9736 | (1191) | 97651 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**15. Intangible Assets** 

15.1 Details of intangible assets as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>impairment losses** | **Carrying**<br>**amount** |
|  Goodwill | 65288 |  |  | 65288 |
|  Other intangible assets | 1589447 | (1146478) | (14978) | 427991 |
|  | 1654735 | (1146478) | (14978) | 493279 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition<br>cost** | **Accumulated<br>amortization** | **Accumulated<br>impairment losses** | **Carrying**<br>**amount** |
|  Goodwill | 65288 |  |  | 65288 |
|  Other intangible assets | 1435482 | (1013372) | (15145) | 406965 |
|  | 1500770 | (1013372) | (15145) | 472253 |

---

15.2 The goodwill as of December 31, 2022 and 2021, arose from the merger of Housing & Commercial Bank ("H&CB").

15.3 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2022 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Retail**<br>**banking** | **Corporate**<br>**Banking** | **Total** |
|  Carrying amounts | 49315 | 15973 | 65288 |
|  Recoverable amount exceeding carrying amount | 5778171 | 2905282 | 8683453 |
|  Discount rate (%) | 16.60 | 17.01 |  |
|  Permanent growth rate (%) | 1.00 | 1.00 |  |

---

For impairment testing, goodwill is allocated to cash-generating units that are expected to benefit from the synergies of the business combination, and cash-generating units consist of an operating segment or units which are not larger than an operating segment. The Bank recognized goodwill amounting to W 65,288 million arising from the merger of Housing & Commercial Bank, the amounts of W 49,315 million and W 15,973 million were allocated to the retail banking and corporate banking, respectively. Cash-generating units to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired by comparing the carrying amount of the unit including the goodwill with the recoverable amount of the unit.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

The recoverable amount of a cash-generating unit is measured at the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal is the amount obtainable from the disposal in an arm's length transaction between knowledgeable, willing parties, after deducting the costs of disposal. If it is difficult to measure the amount obtainable from the disposal of the cash-generating unit, the disposal amount of a similar cash-generating unit in the past transaction is used by reflecting the characteristics of the cash-generating unit to be measured. If it is not possible to obtain reliable information to measure the fair value less costs of disposal, the Bank uses the asset's value in use as its recoverable amount. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The future cash flows of retail banking and corporate banking are estimated on the assumption that the future cash flows will increase by 1.0% per year. The key assumptions used for the estimation of the future cash flows are based on GDP growth rate, market size, and the Bank's market share. The discount rate is a pre-tax rate that reflects assumptions regarding risk-free interest rate, market risk premium, and the risks specific to the cash-generating unit.

15.4 Details of intangible assets other than goodwill as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition**<br>**cost** | **Accumulated**<br>**amortization** | **Accumulated**<br>**impairment<br>losses** | **Carrying**<br>**amount** |
|  Industrial property rights | 1993 | (1694) |  | 299 |
|  Software | 1387570 | (1029725) |  | 357845 |
|  Other intangible assets | 164757 | (82535) | (14978) | 67244 |
|  Right-of-use assets | 35127 | (32524) |  | 2603 |
|  | 1589447 | (1146478) | (14978) | 427991 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition**<br>**cost** | **Accumulated**<br>**amortization** | **Accumulated**<br>**impairment<br>losses** | **Carrying**<br>**amount** |
|  Industrial property rights | 1800 | (1576) |  | 224 |
|  Software | 1220909 | (895251) |  | 325658 |
|  Other intangible assets | 177646 | (85028) | (15145) | 77473 |
|  Right-of-use assets | 35127 | (31517) |  | 3610 |
|  | 1435482 | (1013372) | (15145) | 406965 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

15.5 Changes in intangible assets other than goodwill for the years ended December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Acquisition** | **Transfer** | **Disposal** | **Amortization** | **Others** | **Ending** |
|  Industrial property rights | 224 | 193 |  |  | (117) | (1) | 299 |
|  Software | 325658 | 168256 | 817 |  | (136906) | 20 | 357845 |
|  Other intangible assets | 77474 | 2787 |  | (245) | (12849) | 77 | 67244 |
|  Right-of-use assets | 3610 |  |  |  | (1007) |  | 2603 |
|  | 406966 | 171236 | 817 | (245) | (150879) | 96 | 427991 |

---

*(In millions of Korean won)* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Acquisition** | **Disposal** | **Amortization** | **Others** | **Ending** |
|  Industrial property rights | 234 | 107 |  | (117) |  | 224 |
|  Software | 309397 | 129221 |  | (112962) | 2 | 325658 |
|  Other intangible assets | 53107 | 45693 | (1834) | (14624) | (4869) | 77473 |
|  Right-of-use assets | 4617 |  |  | (1007) |  | 3610 |
|  | 367355 | 175021 | (1834) | (128710) | (4867) | 406965 |

---

15.6 Changes in accumulated impairment losses of other intangible assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of other intangible assets | (15145) |  |  | 167 | (14978) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Impairment** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of other intangible assets | (10215) | (4971) |  | 41 | (15145) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**16. Deferred Income Tax Assets and Liabilities** 

16.1 Details of deferred income tax assets and liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Assets** | **Liabilities** | **Net amount** |
|  Other provisions | 83333 |  | 83333 |
|  Impairment losses of property and equipment | 5155 |  | 5155 |
|  Share-based payments | 13112 |  | 13112 |
|  Provisions for acceptances and guarantees | 39787 |  | 39787 |
|  Gains or losses on valuation of derivatives |  | (155184) | (155184) |
|  Present value discount | 95 |  | 95 |
|  Gains or losses on fair value hedge |  | (93833) | (93833) |
|  Accrued interest |  | (72868) | (72868) |
|  Deferred loan origination fees and costs |  | (115553) | (115553) |
|  Gains or losses on revaluation |  | (261502) | (261502) |
|  Investments in subsidiaries and others | 17121 |  | 17121 |
|  Gains or losses on valuation of security investment | 245988 |  | 245988 |
|  Defined benefit liabilities | 375797 |  | 375797 |
|  Accrued expenses | 172345 |  | 172345 |
|  Retirement insurance expense |  | (459323) | (459323) |
|  Adjustments to the prepaid contributions |  | (27986) | (27986) |
|  Others | 225017 | (96937) | 128080 |
|  | 1177750 | (1283186) | (105436) |
|  Offsetting of deferred income tax assets and liabilities | (1177750) | 1177750 |  |
|  |  | (105436) | (105436) |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Assets** | **Liabilities** | **Net amount** |
|  Other provisions | 75959 |  | 75959 |
|  Impairment losses of property and equipment | 7446 |  | 7446 |
|  Share-based payments | 15687 |  | 15687 |
|  Provisions for acceptances and guarantees | 33091 |  | 33091 |
|  Gains or losses on valuation of derivatives |  | (81544) | (81544) |
|  Present value discount |  | (142) | (142) |
|  Gains or losses on fair value hedge |  | (14642) | (14642) |
|  Accrued interest |  | (42882) | (42882) |
|  Deferred loan origination fees and costs |  | (138398) | (138398) |
|  Gains or losses on revaluation |  | (277471) | (277471) |
|  Investments in subsidiaries and others | 12319 |  | 12319 |
|  Gains or losses on valuation of security investment |  | (501409) | (501409) |
|  Defined benefit liabilities | 469311 |  | 469311 |
|  Accrued expenses | 148726 |  | 148726 |
|  Retirement insurance expense |  | (441634) | (441634) |
|  Adjustments to the prepaid contributions |  | (29273) | (29273) |
|  Others | 230686 | (105912) | 124774 |
|  | 993225 | (1633307) | (640082) |
|  Offsetting of deferred income tax assets and liabilities | (993225) | 993225 |  |
|  |  | (640082) | (640082) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

16.2 Unrecognized Deferred Income Tax Assets

16.2.1 No deferred income tax assets have been recognized for the deductible temporary differences of W 635,093 million and W 152,345 million associated with investments in subsidiaries and others as of December 31, 2022 and 2021, because it is not probable that these temporary differences will reverse in the foreseeable future.

16.2.2 No deferred income tax assets have been recognized for the deductible temporary differences of W 34,908 million and W 39,822 million associated with others as of December 31, 2022 and 2021, due to the uncertainty that these temporary differences will be realized in the future.

16.3 Unrecognized Deferred Income Tax Liabilities

No deferred income tax liabilities have been recognized as of December 31, 2022 and 2021 for the taxable temporary differences of W 65,288 million related to the initial recognition of goodwill arising from the merger of Housing and Commercial Bank in 2001.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

16.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Decrease** | **Increase** | **Ending** |
|  **Deductible temporary differences** | **Deductible temporary differences** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions | 276213 | 276213 | 314465 | 314465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment | 27077 | 19880 | 12255 | 19452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | 57042 | 57042 | 49479 | 49479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for acceptances and guarantees | 120332 | 120332 | 150140 | 150140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount |  |  | 358 | 358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 197142 |  | 502559 | 699701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment |  |  | 928258 | 928258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities | 1706586 | 288674 | 192 | 1418104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 540823 | 540823 | 650357 | 650357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 878679 | 392448 | 397795 | 884026 |
|  | 3803894 | 1695412 | 3005858 | 5114340 |
|  **Unrecognized deferred income tax assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 152345 |  |  | 635093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 39822 |  |  | 34908 |
|  | 3611727 |  |  | 4444339 |
|  Tax rate (%) | 27.50 |  |  | 26.50 |
|  **Total deferred income tax assets** | 993225 |  |  | 1177750 |
|  **Taxable temporary differences** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge | (53243) | (53243) | (354085) | (354085) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest | (155936) | (119589) | (238628) | (274975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs | (503266) | (503266) | (436047) | (436047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives | (296525) | (296525) | (585598) | (585598) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount | (517) | (517) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on revaluation | (1008984) | (22185) |  | (986799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement insurance expense | (1605938) | (237587) | (364944) | (1733295) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to the prepaid contributions | (106446) | (106446) | (105608) | (105608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment | (1823307) | (1823307) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (385137) | (329375) | (310043) | (365805) |
|  | (6004587) | (3492040) | (2394953) | (4907500) |
|  **Unrecognized deferred income tax liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
|  | (5939299) |  |  | (4842212) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax rate (%) | 27.50 |  |  | 26.50 |
|  **Total deferred income tax liabilities** | (1633307) |  |  | (1283186) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

16.4 Changes in cumulative temporary differences for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Decrease** | **Increase** | **Ending** |
|  **Deductible temporary differences** | **Deductible temporary differences** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge | 76583 | 76583 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other provisions | 282969 | 282969 | 276213 | 276213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses of property and equipment | 8148 | 4361 | 23290 | 27077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | 42361 | 42361 | 57042 | 57042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for acceptances and guarantees | 61984 | 61984 | 120332 | 120332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 139981 |  | 57161 | 197142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities | 1605795 | 178937 | 279728 | 1706586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 765387 | 765387 | 540823 | 540823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 918468 | 431045 | 391256 | 878679 |
|  | 3901676 | 1843627 | 1745845 | 3803894 |
|  **Unrecognized deferred income tax assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and others | 114839 |  |  | 152345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 23827 |  |  | 39822 |
|  | 3763010 |  |  | 3611727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax rate (%) | 27.50 |  |  | 27.50 |
|  **Total deferred income tax assets** | 1034828 |  |  | 993225 |
|  **Taxable temporary differences** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on fair value hedge |  |  | (53243) | (53243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest | (127345) | (111820) | (140411) | (155936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs | (510055) | (510055) | (503266) | (503266) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives | (362772) | (362772) | (296525) | (296525) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value discount | (49) | (49) | (517) | (517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on revaluation | (1008984) |  |  | (1008984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement insurance expense | (1462642) | (178937) | (322233) | (1605938) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to the prepaid contributions | (102768) | (102768) | (106446) | (106446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of security investment | (967057) | (967057) | (1823307) | (1823307) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | (394868) | (339168) | (329437) | (385137) |
|  | (5001828) | (2572626) | (3575385) | (6004587) |
|  **Unrecognized deferred income tax liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill arising from the merger | (65288) |  |  | (65288) |
|  | (4936540) |  |  | (5939299) |
|  Tax rate (%) | 27.50 |  |  | 27.50 |
|  **Total deferred income tax liabilities** | (1357548) |  |  | (1633307) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**17. Assets Held for Sale** 

17.1 Details of assets held for sale as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Acquisition cost \*** | **Accumulated<br>impairment<br>losses** | **Carrying**<br>**amount** | **Fair value less<br>costs to sell** |
|  Land held for sale | 20020 | (659) | 19361 | 31144 |
|  Buildings held for sale | 17456 | (5846) | 11610 | 12637 |
|  | 37476 | (6505) | 30971 | 43781 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Acquisition cost \*** | **Accumulated<br>impairment<br>losses** | **Carrying**<br>**amount** | **Fair value less<br>costs to sell** |
|  Land held for sale | 34285 | (136) | 34149 | 62897 |
|  Buildings held for sale | 22372 | (12362) | 10010 | 11841 |
|  | 56657 | (12498) | 44159 | 74738 |

---

\* Acquisition cost of buildings held for sale is net of accumulated depreciation amount immediately before the initial classification of the assets as held for sale. 

17.2 Valuation techniques and inputs used to measure the fair value of assets held for sale as of December 31, 2022, are as follows:

*(In millions of Korean won)* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Valuation**<br>**techniques <sup>1</sup>** | **Unobservable**<br>**inputs <sup>2</sup>** | **Estimated range**<br>**of unobservable<br>inputs (%)** | **Effect of<br>unobservable<br>inputs to fair value** |
|  Land and buildings | 43781 | Market comparison<br>approach model and<br>others | Adjustment index | 0.32 ~ 2.21 | Fair value<br>increases as the<br>adjustment index<br>rises |

---

<sup>1</sup> The appraisal value is adjusted by the adjustment ratio in the event the public sale is unsuccessful.

<sup>2</sup> Adjustment index is calculated using the time factor correction or individual factors.

Among assets held for sale, real estate was measured by independent appraisers with professional qualifications and recent experience in evaluating similar properties in the area of the property to be assessed. All assets held for sale are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

17.3 Changes in accumulated impairment losses of assets held for sale for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Provision** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of assets held for sale | (12498) | (5752) |  | 11745 | (6505) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Provision** | **Reversal** | **Others** | **Ending** |
|  Accumulated impairment losses of assets held for sale | (1271) | (13755) |  | 2528 | (12498) |

---

17.4 As of December 31, 2022, assets held for sale consist of 11 real estates of closed offices, which were determined to sell by management, but not yet sold as of December 31, 2022. Negotiation with buyers is in process for the one asset and the remaining 11 assets are also being actively marketed.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**18. Other Assets** 

18.1 Details of other assets as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Other financial assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | 3442060 | 2398220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income | 1462182 | 919963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee deposits | 819181 | 870196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement debits | 861742 | 989551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 33899 | 31820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses | (11790) | (9627) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Present value discount | (5361) | (6714) |
|  | 6601913 | 5193409 |
|  **Other non-financial assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | 94 | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 207355 | 141572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantee deposits | 1908 | 2369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments | 21456 | 28856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 43213 | 45822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowances for credit losses | (10926) | (8546) |
|  | 263100 | 210211 |
|  | 6865013 | 5403620 |

---

18.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** |
|  | **Other**<br>**financial assets** | **Other non-**<br>**financial assets** | **Total** |
|  Beginning | 9627 | 8546 | 18173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) | 2875 | 2450 | 5325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs | (1801) | (70) | (1871) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1089 |  | 1089 |
|  Ending | 11790 | 10926 | 22716 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** |
|  | **Other**<br>**financial assets** | **Other non-**<br>**financial assets** | **Total** |
|  Beginning | 11570 | 9804 | 21374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) | (954) | 125 | (829) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs | (2344) | (2762) | (5106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1355 | 1379 | 2734 |
|  Ending | 9627 | 8546 | 18173 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**19. Deposits** 

Details of deposits as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Demand deposits** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits in Korean won | 147981433 | 174214102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits in foreign currencies | 10780079 | 13827895 |
|  | 158761512 | 188041997 |
|  **Time deposits** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits in Korean won | 187999054 | 150049246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits in foreign currencies | 15023134 | 7409760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged time deposits in foreign currencies | (8592) | (1319) |
|  | 203013596 | 157457687 |
|  **Certificates of deposits** | 6325876 | 4115688 |
|  | 368100984 | 349615372 |

---

**20. Borrowings** 

20.1 Details of borrowings as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  General borrowings |  | 35556621 |  | 28986380 |
|  Bonds sold under repurchase agreements and others |  | 4820795 |  | 556036 |
|  Call money |  | 3287254 |  | 1531492 |
|  |  | 43664670 |  | 31073908 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

20.2 Details of general borrowings as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Lenders** | **Annual<br>interest<br>rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Borrowings in Korean won** | Borrowings from the Bank of Korea | The Bank of Korea | 0.25~1.75 | 8282289 | 7131019 |
|  | Borrowings from the government | SEMAS and others | 0.00~3.23 | 2670867 | 2683056 |
|  | Borrowings from non-banking financial institutions | The Korea Development Bank | 1.39~2.64 | 477788 | 432310 |
|  | Other borrowings | The Korea Development Bank and others | 0.00~5.61 | 5229890 | 5294403 |
|  |  |  |  | 16660834 | 15540788 |
|  **Borrowings in foreign currencies** | Due to banks | BANK OF CHINA SEOUL BRANCH and others |  | 18270 | 2146 |
|  | Borrowings from banks | Central Bank of Uzbekistan and others | 0.00~5.75 | 13262415 | 11240278 |
|  | Borrowings from other financial institutions | The Export-Import Bank of Korea and others | 5.07~5.89 | 38249 | 24867 |
|  | Other borrowings | Standard Chartered Bank and others | 0.00~5.54 | 5576853 | 2178301 |
|  |  |  |  | 18895787 | 13445592 |
|  |  |  |  | 35556621 | 28986380 |

---

20.3 Details of bonds sold under repurchase agreements and others as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Lenders** | **Annual interest<br>rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Bonds sold under repurchase agreements | Individuals, groups, and corporations | 2.65~9.75 | 4816995 | 553934 |
|  Bills sold | Counter sale | 1.55~2.00 | 3800 | 2102 |
|  |  |  | 4820795 | 556036 |

---

20.4 Details of call money as of December 31, 2022 and 2021, are as follows:

*(In millions of Korean won)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Lenders** | **Annual interest<br>rate (%)** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Call money in Korean won | Mitsui Sumitomo Bank Seoul | 2.90~3.23 | 2113500 |  |
|  Call money in foreign currencies | STANDARD CHARTERED BANK KOREA LTD. and others | 2.80~7.80 | 1173754 | 1531492 |
|  |  |  | 3287254 | 1531492 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**21. Debentures** 

21.1 Details of debentures as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Annual interest<br>rate (%)** | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Debentures in Korean won** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | 5.65~8.62 | 30710 | 30910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures | 2.02~7.86 | 4089890 | 5292957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 0.99~13.70 | 10730003 | 8800013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1.54~4.01 | 4100000 | 5310000 |
|  |  | 18950603 | 19433880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged debentures in Korean won |  | (249629) | (79877) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Discount on debentures in Korean won |  | (7371) | (14685) |
|  |  | 18693603 | 19339318 |
|  **Debentures in foreign currencies** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 2.42~5.98 | 1312913 | 1948962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 0.05~6.81 | 8120304 | 5596228 |
|  |  | 9433217 | 7545190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of fair value hedged debentures in foreign currencies |  | (95864) | 27952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Discount on debentures in foreign currencies |  | (31540) | (21319) |
|  |  | 9305813 | 7551823 |
|  |  | 27999416 | 26891141 |

---

21.2 Changes in debentures based on par value for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Beginning** | **Issue** | **Repayment** | **Others** | **Ending** |
|  **Debentures in Korean won** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | 30910 |  | (200) |  | 30710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures | 5292957 |  | (1203067) |  | 4089890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 8800013 | 7070000 | (5140010) |  | 10730003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 5310000 | 4960000 | (6170000) |  | 4100000 |
|  | 19433880 | 12030000 | (12513277) |  | 18950603 |
|  **Debentures in foreign currencies** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1948962 | 755815 | (1597630) | 205766 | 1312913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 5596228 | 3354673 | (1079221) | 248624 | 8120304 |
|  | 7545190 | 4110488 | (2676851) | 454390 | 9433217 |
|  | 26979070 | 16140488 | (15190128) | 454390 | 28383820 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

21.2 Changes in debentures based on par value for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Beginning** | **Issue** | **Repayment** | **Others** | **Ending** |
|  **Debentures in Korean won** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured debentures | 31960 |  | (1050) |  | 30910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated fixed rate debentures | 4464407 | 830000 | (1450) |  | 5292957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 12840014 | 3190000 | (7230001) |  | 8800013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1890000 | 5310000 | (1890000) |  | 5310000 |
|  | 19226381 | 9330000 | (9122501) |  | 19433880 |
|  **Debentures in foreign currencies** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating rate debentures | 1353472 | 810920 | (350235) | 134805 | 1948962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate debentures | 4064394 | 2324834 | (1134986) | 341986 | 5596228 |
|  | 5417866 | 3135754 | (1485221) | 476791 | 7545190 |
|  | 24644247 | 12465754 | (10607722) | 476791 | 26979070 |

---

**22. Provisions** 

22.1 Details of provisions as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Provisions for credit losses of unused loan commitments | 159211 | 145922 |
|  Provisions for credit losses of acceptances and guarantees | 150140 | 120332 |
|  Provisions for restoration costs | 135477 | 128407 |
|  Others | 49410 | 27131 |
|  | 494238 | 421792 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

22.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** |
|  | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** |
|  Beginning | 92372 | 53550 |  | 26626 | 82169 | 11537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 22750 | (22720) | (30) | 1144 | (1144) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (15235) | 15327 | (92) | (345) | 1006 | (661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment | (126) | (460) | 586 | (9) | (142) | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 1614 | 10837 | (464) | (4527) | 33994 | (3262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 453 | 849 |  | 628 | 2841 | 134 |
|  Ending | 101828 | 57383 |  | 23517 | 118724 | 7899 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>unused loan commitments** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** | **Provisions for credit losses of<br>acceptances and guarantees** |
|  | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** | **12-month<br>expected<br>credit losses** | **Lifetime expected<br>credit losses** | **Lifetime expected<br>credit losses** |
|  | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** | **12-month<br>expected<br>credit losses** | **Non-**<br>**impaired** | **Impaired** |
|  Beginning | 80668 | 78064 |  | 32818 | 14838 | 14328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer between stages: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to 12-month expected credit losses | 24962 | (24960) | (2) | 3958 | (203) | (3755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer to lifetime expected credit losses | (14460) | 14579 | (119) | (3972) | 3981 | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment | (131) | (355) | 486 | (10) | (85) | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) for credit losses | 414 | (14173) | (365) | (7700) | 64190 | 711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others (exchange differences, etc.) | 919 | 395 |  | 1532 | (552) | 167 |
|  Ending | 92372 | 53550 |  | 26626 | 82169 | 11537 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

22.3 Changes in provisions for restoration costs for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Beginning | 128407 | 131674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision | 6336 | 5879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal | 1261 | (1016) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Used | (12411) | (12541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unwinding of discount | 2363 | 1369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of changes in discount rate | 9521 | 3042 |
|  Ending | 135477 | 128407 |

---

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

22.4 Changes in other provisions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
|  | **Membership<br>rewards<br>program** | **Dormant<br>accounts** | **Litigations** | **Financial<br>guarantee<br>contracts** | **Others** | **Total** |
|  Beginning | 43 | 3062 | 7626 | 5365 | 11035 | 27131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) | 84 | 2666 | 19 | (2112) | 26578 | 27235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Used and others | (81) | (2934) | (4) |  | (1937) | (4956) |
|  Ending | 46 | 2794 | 7641 | 3253 | 35676 | 49410 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
|  | **Membership<br>rewards<br>program** | **Dormant<br>accounts** | **Litigations** | **Financial<br>guarantee<br>contracts** | **Others** | **Total** |
|  Beginning | 35 | 3008 | 7647 | 6426 | 14627 | 31743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (reversal) | 77 | 3429 | 24 | (1061) | (4115) | (1646) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Used and others | (69) | (3375) | (45) |  | 523 | (2966) |
|  Ending | 43 | 3062 | 7626 | 5365 | 11035 | 27131 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**23. Net Defined Benefit Liabilities (Assets)** 

23.1 Defined Benefit Plan

The Bank operates defined benefit plans which have the following characteristics:

- The Bank has the obligation to pay the agreed benefits to all its current and former employees.

- The Bank assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities (assets) recognized in the statements of financial position are calculated in accordance with actuarial valuation method using assumptions based on market data and historical data such as discount rate, future salary increase rate, and mortality. Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends.

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** |
|  | **Present value of<br>defined benefit<br>obligation** | **Fair value of**<br>**plan assets** | **Net defined<br>benefit<br>liabilities(assets)** |
|  Beginning | 1831126 | (1692621) | 138505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | 163208 |  | 163208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) | 46853 | (43392) | 3461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments | 9041 |  | 9041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions | 41988 |  | 41988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions | (351203) |  | (351203) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  | 54808 | 54808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Bank |  | (360000) | (360000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) | (196543) | 196543 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Bank | (7724) |  | (7724) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in | 5150 | (4516) | 634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out | (7052) | 7052 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange differences | (16) |  | (16) |
|  Ending | 1534828 | (1842126) | (307298) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** |
|  | **Present value of<br>defined benefit<br>obligation** | **Fair value of**<br>**plan assets** | **Net defined<br>benefit<br>liabilities** |
|  Beginning | 1734103 | (1583368) | 150735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current service cost | 153334 |  | 153334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income) | 34075 | (31069) | 3006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by experience adjustments | 5180 |  | 5180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in demographic assumptions | 7330 |  | 7330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains and losses by changes in financial assumptions | 82742 |  | 82742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) |  | 5363 | 5363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions by the Bank |  | (264600) | (264600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from plans (benefit payments) | (178937) | 178937 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments from the Bank | (5120) |  | (5120) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer in | 3602 | (3067) | 535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer out | (5183) | 5183 |  |
|  Ending | 1831126 | (1692621) | 138505 |

---

23.3 Details of net defined benefit liabilities (assets) as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Present value of defined benefit obligation | 1534828 | 1831126 |
|  Fair value of plan assets | (1842126) | (1692621) |
|  Net defined benefit liabilities (assets) | (307298) | 138505 |

---

23.4 Details of remeasurements of net defined benefit liabilities recognized in other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Remeasurements: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial losses arising from experience adjustments | (9041) | (5180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial losses arising from changes in demographic assumptions | (41988) | (7330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial losses arising from changes in financial assumptions | 351203 | (82742) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on plan assets (excluding amounts included in interest income) | (54808) | (5363) |
|  Income tax effect | (67476) | 27669 |
|  Remeasurements after income tax expense | 177890 | (72946) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

23.5 Details of fair value of plan assets as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Assets quoted**<br>**in an active market** | **Assets not quoted in<br>an active market** | **Total** |
|  Time deposits |  | 1388054 | 1388054 |
|  Others |  | 454072 | 454072 |
|  |  | 1842126 | 1842126 |

---

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Assets quoted**<br>**in an active market** | **Assets not quoted in<br>an active market** | **Total** |
|  Time deposits |  | 1374281 | 1374281 |
|  Others |  | 318340 | 318340 |
|  |  | 1692621 | 1692621 |

---

23.6 Details of significant actuarial assumptions used as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  Discount rate (%) | 5.20 | 2.60 |
|  Salary increase rate (%) | 0.00~5.25 | 0.00~5.04 |
|  Turnover rate (%) | 2.30~38.60 | 1.00~20.00 |

---

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2019.

23.7 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Effect on defined benefit obligation** | **Effect on defined benefit obligation** |
|  | <br>**Changes in<br>assumptions** | **Increase in<br>assumptions** | **Decrease in**<br>**assumptions** |
|  Discount rate | 0.5%p | 3.05% decrease | 3.24% increase |
|  Salary increase rate | 0.5%p | 3.23% increase | 3.06% decrease |
|  Turnover rate | 0.5%p | 0.24% increase | 0.26% decrease |

---

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the statement of financial position.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

23.8 Expected maturity analysis of undiscounted pension benefit payments as of December 31, 2022, are as follows:

*(In millions of Korean won)* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Up to**<br>**1 year** | **1~2 years** | **2~5 years** | **5~10 years** | **Over**<br>**10 years** | **Total** |
|  Pension benefits | 162720 | 215188 | 650944 | 1151476 | 6256181 | 8436509 |

---

The weighted average duration of the defined benefit obligation is 7.34 and 9.41 years as of December 31, 2022 and 2021, respectively.

23.9 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2022 is W 360,000 million.

**24. Other Liabilities** 

Details of other liabilities as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Other financial liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables | 3615980 | 2555217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid card and debit card payables | 1840 | 1237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 2915891 | 1679327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts liabilities | 78732 | 106298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits for letter of guarantees and others | 1099789 | 373633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic exchange settlement credits | 1734905 | 5121689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange settlement credits | 248826 | 167898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to trust accounts | 6327070 | 7204168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities incurred from agency relationships | 513621 | 739276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account for agency business | 241910 | 423798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 328707 | 336845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 51054 | 477301 |
|  | 17158325 | 19186687 |
|  **Other non-financial liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables | 1053097 | 660409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue | 94424 | 51193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 528850 | 456491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholding taxes | 133917 | 105802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 46566 | 55116 |
|  | 1856854 | 1329011 |
|  | 19015179 | 20515698 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**25. Equity** 

25.1 Capital Stock

Details of capital stock as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won and in number of shares)* | **Ordinary shares** | **Ordinary shares** |
|  | **December 31, 2022** | **December 31, 2021** |
|  Type of share | Ordinary share | Ordinary share |
|  Number of authorized shares | 1000000000 | 1000000000 |
|  Par value per share *(In Korean won)* | 5000 | 5000 |
|  Number of issued shares | 404379116 | 404379116 |
|  Capital stock | 2021896 | 2021896 |

---

25.2 Hybrid Security

Details of hybrid security classified as equity as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Issuance date** | **Maturity** | **Interest rate<br>(%)** | **December 31,<br>2022** | **December 31,<br>2021** |
|  Amortized Conditional Capital  | July 2, 2019 | Permanent<sup>1</sup> | 4.35 | 574523 | 574523 |
|  Securities | June 23, 2022 | Permanent <sup>2</sup> | 4.89 | 299327 |  |

---

<sup>1</sup> Above hybrid securities are early redeemable by the Bank after 5 years from the issuance date and each interest payment date thereafter.

<sup>2</sup> Early redeemable by the Bank only when prior approval from the head of the Financial Supervisory Service is obtained after 5 years from the issuance date.

25.3 Capital Surplus

Details of capital surplus as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  Paid-in capital in excess of par value |  | 4604417 |  | 4604417 |
|  Gains on business combination |  | 397669 |  | 397669 |
|  Revaluation reserve |  | 177229 |  | 177229 |
|  Other capital surplus |  | 40716 |  | 40716 |
|  |  | 5220031 |  | 5220031 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

25.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Remeasurements of net defined benefit liabilities | (115124) | (293014) |
|  Currency translation differences | 3132 | 5154 |
|  Losses on debt securities measured at fair value through other comprehensive income | (649850) | (188161) |
|  Gains on equity securities measured at fair value through other comprehensive income | 641536 | 1838548 |
|  Losses on cash flow hedging instruments | 33921 | (89) |
|  | (86385) | 1362438 |

---

25.5 Retained Earnings

25.5.1 Details of retained earnings as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  Legal reserves |  | 2043654 |  | 2043008 |
|  Regulatory reserve for credit losses |  | 2715060 |  | 2434041 |
|  Voluntary reserves |  | 17648780 |  | 16653881 |
|  Unappropriated retained earnings |  | 3116895 |  | 2307783 |
|  |  | 25524389 |  | 23438713 |

---

With respect to the allocation of net profit earned in a fiscal term, the Bank must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 40 of the Banking Act. This reserve is not available for the payment of cash dividends, but may be transferred to capital stock, or used to reduce accumulated deficit. The Bank is reserving other reserves (legal reserves) in accordance with local laws and regulations of overseas branches.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

25.5.2 Statement of appropriation of retained earnings (draft)

(Expected date of appropriation for 2022: March 23, 2023)

(Date of appropriation for 2021: March 24, 2022)

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Unappropriated retained earnings** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unappropriated retained earnings carried over from prior years | 53 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interim dividend |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on hybrid securities | (34400) | (24144) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification from AOCI to retained earnings due to sale of equity securities measured at fair value through other comprehensive income | 243022 | (231509) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit for the year | 2908220 | 2563358 |
|  | 3116895 | 2307783 |
|  **Transfer from voluntary reserves and others** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revaluation gains on property and equipment | 18054 | 1301 |
|  | 18054 | 1301 |
|  **Appropriation of retained earnings** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Voluntary reserves | 1714800 | 996200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulatory reserve for credit losses | 70905 | 281019 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends: | 1346582 | 1031167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Dividends (rate) per share: W 3,330 (66.6%) in 2022)<br> (Dividends (rate) per share: W 2,550 (51.0%) in 2021) | 1346582 | 1031167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reserves | 2575 | 645 |
|  | 3134862 | 2309031 |
|  **Unappropriated retained earnings to be carried forward** | 87 | 53 |

---

25.5.3 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 29.1 through 29.2 of Regulations on Supervision of Banking Business.

25.5.3.1 Details of regulatory reserve for credit losses as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Amount before appropriation |  | 2715060 |  | 2434041 |
|  Amount estimated to be appropriated |  | 70905 |  | 281019 |
|  |  | 2785965 |  | 2715060 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

25.5.3.2 Regulatory reserve for credit losses estimated to be appropriated and adjusted profit after provision of regulatory reserve for credit losses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2021** | **2021** |
|  Regulatory reserve for credit losses estimated to be appropriated |  | 70905 |  | 281019 |
|  Adjusted profit after provision of regulatory reserve for credit losses \* |  | 2837315 |  | 2282339 |

---

\* Adjusted profit after provision of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision of regulatory reserve for credit losses before tax to the net profit.

**26. Net Interest Income** 

Details of interest income, interest expense, and net interest income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Interest income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through profit or loss | 183342 | 74761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through profit or loss | 14426 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at fair value through other comprehensive income | 653017 | 437629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at fair value through other comprehensive income | 6023 | 3003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions measured at amortized cost | 56728 | 11220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities measured at amortized cost | 602106 | 277529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans measured at amortized cost | 12126138 | 8449821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 320242 | 236879 |
|  | 13962022 | 9490842 |
|  **Interest expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 3988661 | 1741293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 564108 | 160071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debentures | 665059 | 403341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 184992 | 54822 |
|  | 5402820 | 2359527 |
|  **Net interest income** | 8559202 | 7131315 |

---

Interest income recognized on impaired loans is W 14,880 million and W 16,541 million for the years ended December 31, 2022 and 2021, respectively.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**27. Net Fee and Commission Income** 

Details of fee and commission income, fee and commission expense, and net fee and commission income for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Fee and commission income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Banking activity fees | 190874 | 188079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending activity fees | 65368 | 73515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit card related fees | 369 | 685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debit card related fees | 590 | 568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agent activity fees | 327986 | 285528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust and other fiduciary fees | 214159 | 317243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees fees | 60465 | 46221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency related fees | 135312 | 99020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities agency fees | 105477 | 147009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other business account commission on consignment | 36211 | 39178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 375419 | 375139 |
|  | 1512230 | 1572185 |
|  **Fee and commission expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading activity related fees \* | 16107 | 12820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending activity fees | 44833 | 47861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit card related fees | 37349 | 28981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outsourcing related fees | 106009 | 104167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency related fees | 18890 | 14515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees of written-off loans | 12841 | 16324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions to external institutions | 27996 | 23574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 147379 | 135311 |
|  | 411404 | 383553 |
|  **Net fee and commission income** | 1100826 | 1188632 |

---

\* Fees from financial instruments at fair value through profit or loss

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**28. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss** 

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions.

Details of net gains or losses on financial instruments at fair value through profit or loss for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Gains on financial instruments at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 530057 | 384721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 12425 | 17983 |
|  | 542482 | 402704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 7398966 | 3433166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency | 13646564 | 7022581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock or stock index | 9239 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit | 39646 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1443 | 965 |
|  | 21095858 | 10456754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 2938 | 1344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial instruments | 251 | 6753 |
|  | 21641529 | 10867555 |
|  **Losses on financial instruments at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets at fair value through profit or loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 800076 | 198781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 3617 | 1130 |
|  | 803693 | 199911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives held for trading: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 6568434 | 3369991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency | 13870247 | 6905375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock or stock index | 6587 | 30862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit | 36268 | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 1258 | 935 |
|  | 20482794 | 10307233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities at fair value through profit or loss | 656 | 613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial instruments | 206 | 6840 |
|  | 21287349 | 10514597 |
|  **Net gains on financial instruments at fair value through profit or loss** | 354180 | 352958 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**29. Net Other Operating Income and Expenses** 

Details of other operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Other operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption of securities measured at fair value through other comprehensive income | 20 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of securities measured at fair value through other comprehensive income | 12968 | 96516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on financial assets at amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sale of loans measured at amortized cost | 27848 | 41783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption of securities measured at amortized cost |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on foreign exchange transactions | 9585658 | 2497063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 9885 | 17882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 722923 | 294378 |
|  | 10359302 | 2947750 |
|  **Other operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption of securities measured at fair value through other comprehensive income | 2758 | 2172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of securities measured at fair value through other comprehensive income | 30460 | 97990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on financial assets at amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on sale of loans measured at amortized cost | 3022 | 3560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption of securities measured at amortized cost |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on foreign exchange transactions | 9506654 | 2452072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit insurance fee | 496137 | 460365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit guarantee fund fee | 283906 | 263297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 965965 | 487245 |
|  | 11288902 | 3766707 |
|  **Net other operating expenses** | (929600) | (818957) |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**30. General and Administrative Expenses** 

30.1 Details of general and administrative expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Expenses related to employee** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - salaries | 1588321 | 1538106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits - welfare | 696824 | 644366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined benefit plans | 166670 | 156340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post-employment benefits - defined contribution plans | 15491 | 12111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Termination benefits | 272615 | 249850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payments | 15169 | 27995 |
|  | 2755090 | 2628768 |
|  **Depreciation and amortization** | 510059 | 503939 |
|  **Other general and administrative expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental expense | 57668 | 57578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax and dues | 159664 | 123208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communication | 32412 | 28193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity and utilities | 23618 | 22854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Publication | 5669 | 6620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repairs and maintenance | 11430 | 12006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicle | 6004 | 5573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Travel | 7349 | 2519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Training | 19697 | 13166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service fees | 138549 | 128084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Supplies | 18662 | 17951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electronic data processing expenses | 218670 | 173508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 329796 | 283701 |
|  | 1029188 | 874961 |
|  | 4294337 | 4007668 |

---

30.2 Share-based Payments

30.2.1 Stock grants

The Bank changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

30.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In number of shares)* |  |  |  |
| **Stock grants** | **Grant date** | **Number of<br>granted shares <sup>1</sup>** | **Vesting conditions <sup>2</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 80 | Mar. 1, 2020 | 7982 | Services fulfillment, Total Shareholder Return (TSR) 30~50%, and Company and work performance 50~70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 81 | Jan. 1, 2021 | 139783 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 83 | Apr. 1, 2021 | 15278 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 85 | Jan. 1, 2022 | 292777 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100%, Services fulfillment, TSR 30%, and EPS and Asset Quality 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 86 | Feb. 1, 2022 | 1525 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 87 | Mar. 1, 2022 | 2599 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 88 | Mar. 14, 2022 | 5884 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 89 | May. 26, 2022 | 2363 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 90 | Jul. 18, 2022 | 4131 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 91 | Aug. 24, 2022 | 7277 | Services fulfillment, TSR 0~30%, and Company and work performance 70~100% |
|  Deferred grant in 2016 |  | 2426 | Satisfied |
|  Deferred grant in 2017 |  | 4582 | Satisfied |
|  Deferred grant in 2018 |  | 2287 | Satisfied |
|  Deferred grant in 2019 |  | 32756 | Satisfied |
|  Deferred grant in 2020 |  | 53502 | Satisfied |
|  Deferred grant in 2021 |  | 156939 | Satisfied |
|  |  | 732091 |  |

---

<sup>1</sup> Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of December 31, 2022 (Deferred grants are residual shares vested as of December 31, 2022). 

<sup>2</sup> Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

30.2.1.2 Details of stock grants linked to short-term performance as of December 31, 2022, are as follows:

*(In number of shares)* 

---

| | | | |
|:---|:---|:---|:---|
| **Stock grants \*** | **Grant date** | **Estimated number<br>of vested shares** | **Vesting**<br>**conditions** |
|  Stock granted in 2015 | Jan. 1, 2015 | 1292 | Satisfied |
|  Stock granted in 2016 | Jan. 1, 2016 | 4875 | Satisfied |
|  Stock granted in 2017 | Jan. 1, 2017 | 1998 | Satisfied |
|  Stock granted in 2018 | Jan. 1, 2018 | 2109 | Satisfied |
|  Stock granted in 2019 | Jan. 1, 2019 | 41737 | Satisfied |
|  Stock granted in 2010 | Jan. 1, 2020 | 89888 | Satisfied |
|  Stock granted in 2021 | Jan. 1, 2021 | 130331 | Satisfied |
|  Stock granted in 2022 | Jan. 1, 2022 | 134402 | Proportion to service period |

---

\* Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed. 

30.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2022, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In Korean won)* | **Expected<br>exercise<br>period(years)** | **Risk-free rate<br>(%)** | **Fair value (market<br>performance<br>condition)** | **Fair value (non-**<br>**market performance<br>condition)** |
|  Series 80 | 0.00~3.00 | 3.78% | 43,157~50,973 | 43,157~50,973 |
|  Series 81 | 0.00~3.00 | 3.78% | 35,905~41,289 | 43,157~50,973 |
|  Series 83 | 0.25~4.00 | 3.78% | 38,660~43,583 | 41,548~46,663 |
|  Series 85 | 1.00~4.00 | 3.78% | 33,668~37,813 | 41,548~46,663 |
|  Series 86 | 1.08~5.00 | 3.78% | 35,486~39,839 | 39,958~44,859 |
|  Series 87 | 1.16~5.00 | 3.78% | 38,957~46,013 | 43,157~50,973 |
|  Series 88 | 1.20~5.00 | 3.78% | 37,288~41,862 | 39,958~44,859 |
|  Series 89 | 1.40~5.00 | 3.78% | 40,943~48,358 | 43,157~50,973 |
|  Series 90 | 1.55~5.00 | 3.78% | 39,554~44,405 | 39,958~44,859 |
|  Series 91 | 1.65~5.00 | 3.78% | 37,840~42,481 | 39,958~44,859 |
|  Grant deferred in 2016 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2017 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2018 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2019 |  | 3.78% |  | 50973 |
|  Grant deferred in 2020 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Grant deferred in 2021 | 0.00~2.00 | 3.78% |  | 44,859~50,973 |
|  Stock granted in 2015 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2016 | 0.00~2.00 | 3.78% |  | 44,859~50,973 |
|  Stock granted in 2017 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2018 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2019 |  | 3.78% |  | 50973 |
|  Stock granted in 2020 | 0.00~1.00 | 3.78% |  | 46,663~50,973 |
|  Stock granted in 2021 | 0.00~2.00 | 3.78% |  | 44,859~50,973 |
|  Stock granted in 2022 | 1.00~5.00 | 3.78% |  | 39,958~46,663 |

---

The Bank uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

30.2.1.4 The accrued expenses for share-based payments related to stock grants are W 46,740 million and W 53,577 million as of December 31, 2022 and 2021, respectively, and the compensation costs amounting to W 15,169 million and W 27,995 million were recognized for the years ended December 31, 2022 and 2021, respectively.

30.2.2 Mileage stock

30.2.2.1 Details of mileage stock as of December 31, 2022, are as follows:

*(In number of shares)* 

---

| | | | |
|:---|:---|:---|:---|
| **Grant date** | **Number of**<br>**granted shares <sup>1</sup>** | **Expected exercise<br>period (years) <sup>2</sup>** | **Remaining shares** |
|  Stock granted in 2019 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov. 1, 2019 | 119 | 0.00 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov. 8, 2019 | 14 | 0.00 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 6, 2019 | 84 | 0.00 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 5, 2019 | 56 | 0.00 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 31, 2019 | 87 | 0.00 | 43 |
|  Stock granted in 2020 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jan. 18, 2020 | 28645 | 0.00~0.05 | 15541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; May 12, 2020 | 46 | 0.00~0.36 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jun. 30, 2020 | 206 | 0.00~0.50 | 147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aug. 26, 2020 | 40 | 0.00~0.65 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oct. 29, 2020 | 160 | 0.00~0.83 | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov. 6, 2020 | 45 | 0.00~0.85 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov. 30, 2020 | 35 | 0.00~0.92 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 2, 2020 | 57 | 0.00~0.92 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 4, 2020 | 154 | 0.00~0.93 | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 30, 2020 | 88 | 0.00~1.00 | 64 |
|  Stock granted in 2021 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jan. 15, 2021 | 28156 | 0.00~1.04 | 18712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Apr. 5, 2021 | 89 | 0.00~1.26 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jul. 1, 2021 | 54 | 0.00~1.50 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jul. 2, 2021 | 11 | 0.00~1.50 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jul. 27, 2021 | 70 | 0.00~1.57 | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov. 1, 2021 | 71 | 0.00~1.84 | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov. 16, 2021 | 53 | 0.00~1.88 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 6, 2021 | 87 | 0.00~1.93 | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 3, 2021 | 91 | 0.00~1.92 | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 30, 2021 | 76 | 0.00~2.00 | 76 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

30.2.2.1 Details of mileage stock as of December 31, 2022, are as follows: (cont'd)

*(In number of shares)* 

---

| | | | |
|:---|:---|:---|:---|
| **Grant date** | **Number of**<br> **granted shares <sup>1</sup>** | **Expected exercise<br>period (years) <sup>2</sup>** | **Remaining shares** |
|  Stock granted in 2022 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jan. 14, 2022 | 20909 | 0.00~2.04 | 19864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Apr. 4, 2022 | 65 | 0.00~2.26 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Apr. 19, 2022 | 33 | 0.00~2.30 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jul. 1, 2022 | 62 | 0.00~2.50 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aug. 3, 2022 | 62 | 0.00~2.59 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aug. 9, 2022 | 80 | 0.00~2.61 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oct. 19, 2022 | 55 | 0.00~2.80 | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov. 1, 2022 | 177 | 0.00~2.84 | 177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 1, 2022 | 49 | 0.00~2.92 | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 12, 2022 | 114 | 0.00~2.95 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 6, 2022 | 88 | 0.00~2.93 | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 2, 2022 | 42 | 0.00~2.92 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 15, 2022 | 42 | 0.00~2.96 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec. 30, 2022 | 114 | 0.00~3.00 | 114 |
|  | 80486 |  | 56449 |

---

<sup>1</sup> Mileage stock is exercisable for two years after one year from the grant date at the closing price of the end of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a one-year grace period. 

<sup>2</sup> Assessed based on the stock price as of December 31, 2022. These shares are vested immediately at grant date.

30.2.2.2 The accrued expenses for share-based payments related to mileage stock are W 2,738 million and W 3,465 million as of December 31, 2022 and 2021, respectively. The compensation costs amounting to W 870 million and W 2,116 million were recognized as expenses for the years ended December 31, 2022 and 2021, respectively.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**31. Net Other Non-Operating Income and Expenses** 

Details of other non-operating income and expenses for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Other non-operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of property and equipment and assets held for sale | 47384 | 11269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income | 22541 | 19238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income from subsidiaries and associates | 14844 | 19057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 19985 | 77180 |
|  | 104754 | 126744 |
|  **Other non-operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of property and equipment and assets held for sale | 1791 | 4809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Donation | 62222 | 75330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restoration costs | 2336 | 2743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 410922 | 38467 |
|  | 477271 | 121349 |
|  **Net other non-operating income (expenses)** | (372517) | 5395 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**32. Income Tax Expense** 

32.1 Details of income tax expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Income tax payable** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax expense | 1280750 | 835456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments of income tax of prior years recognized in current tax | (125397) | 5331 |
|  | 1155353 | 840787 |
|  Changes in deferred income tax assets and liabilities | (534646) | 317361 |
|  Income tax expense of overseas branches | 33245 | 20920 |
|  Income tax recognized directly in equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains or losses on debt instruments at fair value through other comprehensive income | 162928 | 105519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of net defined benefit liabilities | (67476) | 27669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains or losses on equity instruments at fair value through other comprehensive income | 466078 | (419220) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on cash flow hedging instruments | (12263) | (3787) |
|  | 549267 | (289819) |
|  Reclassification from AOCI to retained earnings due to sale of equity securities measured at fair value through other comprehensive income | (92181) | 87813 |
|  Consolidated tax return effect | (62854) | (45308) |
|  **Income tax expense** | 1048184 | 931754 |

---

32.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  **Profit before income tax expense** | 3956404 | 3495112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax at the applicable tax rate \* | 1077807 | 950794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-taxable income | (10300) | (14491) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible expenses | 8064 | 11539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credit and tax exemption | (1418) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Temporary difference for which no deferred tax is recognized | 134361 | 20168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax refund for tax of prior years | (135121) | (17187) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense of overseas branches | 33245 | 20920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of tax rate change | (3630) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated tax return effect | (62854) | (45308) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 8030 | 5319 |
|  **Income tax expense** | 1048184 | 931754 |
|  **Income tax expense/Profit before income tax (%)** | 26.49 | 26.66 |

---

\* Applicable income tax rate for \ 200 million and below is 11%, for over \ 200 million to \ 20 billion is 22%, for over \ 20 billion to \ 300 billion is 24.2% and for over \ 300 billion is 27.5% for the years ended December 31, 2022 and 2021. 

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

32.3 Details of current tax liabilities (income tax payables) and current tax assets (income tax refund receivables) before offsetting as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  Tax payables after offsetting <sup>1, 2</sup> | 816447 | 428632 |
|  Adjustment on consolidated tax payable and others <sup>3</sup> | (62854) | (45308) |
|  Consolidated tax return accounts payables <sup>4</sup> | (747922) | (377628) |
|  Current tax payable | 5671 | 5696 |

---

<sup>1</sup> Current tax assets of W 172,757 million and W 44,942 million due to uncertain tax position and current tax assets of W 14,260 million and W 6,249 million for overseas branches were excluded, which does not qualify for offsetting as of December 31, 2022 and 2021, respectively.

<sup>2</sup> Includes income tax payable of W 5,671 million and W 5,696 million under current tax liabilities, which are not to be offset against any income tax refund receivables, such as those of overseas branches as of December 31, 2022 and 2021, respectively.

<sup>3</sup> Tax expense reduced due to the adoption of consolidated tax return was recognized as tax benefit.

<sup>4</sup> The amount of income tax payable is reclassified as accounts payable, not to the tax authority, but to KB Financial Group Inc. due to the adoption of consolidated tax return. 

**33. Dividends** 

The annual dividends to the shareholder of the Bank for the year ended December 31, 2022, amounting to W 1,346,582 million (W 3,330 per share) is to be proposed at the general shareholder's meeting scheduled for March 23, 2023. The Bank's financial statements as of and for the year ended December 31, 2022, do not reflect this dividend payable.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**34. Accumulated Other Comprehensive Income (Loss)** 

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Beginning** | **Changes<br>(excluding<br>reclassification)** | **Reclassification**<br>**to profit or loss** | **Tax effect** | **Transfer to<br>retained<br>earnings** | **Ending** |
|  Remeasurements of net defined benefit liabilities | (293014) | 245366 |  | (67476) |  | (115124) |
|  Currency translation differences | 5154 | (2022) |  |  |  | 3132 |
|  Gains (losses) on debt securities measured at fair value through other comprehensive income | (188161) | (927330) | 302713 | 162928 |  | (649850) |
|  Gains on equity securities measured at fair value through other comprehensive income | 1838548 | (1327887) |  | 466078 | (335203) | 641536 |
|  Losses on cash flow hedging instruments | (89) | 43885 | 2388 | (12263) |  | 33921 |
|  | 1362438 | (1967988) | 305101 | 549267 | (335203) | (86385) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Beginning** | **Changes<br>(excluding<br>reclassification)** | **Reclassification**<br>**to profit or loss** | **Tax effect** | **Transfer to<br>retained<br>earnings** | **Ending** |
|  Remeasurements of net defined benefit liabilities | (220068) | (100615) |  | 27669 |  | (293014) |
|  Currency translation differences | 1197 | 3957 |  |  |  | 5154 |
|  Gains (losses) on debt securities measured at fair value through other comprehensive income | 90025 | (386809) | 3104 | 105519 |  | (188161) |
|  Gains on equity securities measured at fair value through other comprehensive income | 733332 | 1205112 |  | (419220) | 319324 | 1838548 |
|  Losses on cash flow hedging instruments | (10073) | 11468 | 2303 | (3787) |  | (89) |
|  | 594413 | 733113 | 5407 | (289819) | 319324 | 1362438 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**35. Trust Accounts** 

35.1 Financial information of the trust accounts the Bank manages, as of and for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total assets** | **Total assets** | **Operating revenues** | **Operating revenues** |
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,<br>2021** | **2022** | **2021** |
|  Consolidated | 4192712 | 4372406 | 122144 | 92012 |
|  Unconsolidated (non-guaranteed) | 76695803 | 68491476 | 1996658 | 2002166 |
|  | 80888515 | 72863882 | 2118802 | 2094178 |

---

\* Financial information of the trust accounts has been prepared in accordance with the Statement of Korea Accounting Standard No.5004, *Trust Accounts*, and enforcement regulations of the Financial Investment Services under the Financial Investment Services and Capital Markets Act. 

35.2 Significant receivables and payables related to the Bank's trust accounts as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Trust segment** | **Receivables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued trust fees | 70014 | 60116 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued income | 27376 | 23848 |
|  |  | 97390 | 83964 |
|  | **Payables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to trust accounts | 2098578 | 1188976 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest on due to trust accounts | 8727 | 4119 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 686394 | 485126 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest on deposits | 5641 | 1735 |
|  |  | 2799340 | 1679956 |
|  **Custody segment** | **Receivables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued trust fees | 8461 | 7692 |
|  | **Payables** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to trust accounts | 4228492 | 6015192 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest on due to trust accounts | 10820 | 3599 |
|  |  | 4239312 | 6018791 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

35.3 Significant revenues and expenses related to the Bank's trust accounts for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **2022** | **2021** |
|  **Trust segment** | **Revenues** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions from trust accounts | 176090 | 280563 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fees and commissions from retirement pension | 30797 | 28387 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions from early termination in trust accounts | 13 | 36 |
|  |  | 206900 | 308986 |
|  | **Expenses** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on due to trust accounts | 38187 | 12762 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on deposits | 19655 | 4868 |
|  |  | 57842 | 17630 |
|  **Custody segment** | **Revenues** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and commissions from trust accounts | 38069 | 36680 |
|  | **Expenses** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses on due to trust accounts | 83797 | 20471 |

---

35.4 Details of carrying amounts of the trust accounts for which the Bank guarantees payment of principal or payment of principal and fixed rate of return as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Trust accounts guaranteeing repayment of principal** | Old age pension | 1191 | 1316 |
|  | Personal pension | 1813544 | 1875315 |
|  | Pension | 2243064 | 2353669 |
|  | Retirement | 8065 | 8251 |
|  | New personal pension | 84444 | 87429 |
|  | New old age pension | 2967 | 3418 |
|  | Retail | 10499 | 10939 |
|  | Corporate | 1299 | 1303 |
|  | Installment | 13450 | 14796 |
|  |  | 4178523 | 4356436 |
|  **Trust accounts guaranteeing repayment of principal and fixed rate of return** | Development money | 14112 | 15876 |
|  | Unspecified monetary | 77 | 94 |
|  |  | 14189 | 15970 |
|  |  | 4192712 | 4372406 |

---

\* Financial information of the trust accounts has been prepared in accordance with the Statement of Korea Accounting Standard 5004, *Trust Accounts*, and enforcement regulations of the Financial Investment Services under the Financial Investment Services and Capital Markets Act. 

There is no amount the Bank has to pay in relation to the management results of the trust accounts in accordance with the guarantees of payment of principal or payment of principal and fixed rate of return as of December 31, 2022 and 2021.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**36. Statement of Cash Flows** 

36.1 Details of cash and cash equivalents as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Cash | 2227291 | 2181314 |
|  Checks issued by other banks | 123163 | 150047 |
|  Due from the Bank of Korea | 15963883 | 16038651 |
|  Due from other financial institutions | 3981907 | 3998892 |
|  | 22296244 | 22368904 |
|  Deduction: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted due from financial institutions \* | (302456) | (461003) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from financial institutions with original maturities over three months | (644) | (35860) |
|  | (303100) | (496863) |
|  | 21993144 | 21872041 |

---

\* Items that meet the definition of cash are excluded in accordance with Korean IFRS No.1007 *Statement of Cash Flows*. Detailed information on the effects of this change in accounting policy is described in Note 2.1 Application of Korean IFRS.

Items that meet the definition of cash in restricted due from financial institutions as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | *(In millions of Korean won)* | **Financial institutions** | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  Due from financial institutions in Korean won | Due from the Bank of Korea | The Bank of Korea | 15169704 | 15117033 |
|  Due from financial institutions in foreign currencies | Due from banks in foreign currencies | The Bank of Korea | 794180 | 721618 |
|  |  | Bank Indonesia and others | 49649 | 39287 |
|  |  |  | 16013533 | 15877938 |

---

36.2 Significant non-cash transactions for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Write-offs of loans | 360014 | 391378 |
|  Changes in accumulated other comprehensive income from valuation of debt securities measured at fair value through other comprehensive income | (461689) | (278186) |
|  Changes in accumulated other comprehensive income from valuation of equity securities measured at fair value through other comprehensive income | (1197012) | 1105216 |
|  Changes in financial investments due to debt-for-equity swap |  | 327 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

36.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Activities** | **2022** | **2021** |
|  Income tax paid | Operating | 850021 | 1003334 |
|  Interest received | Operating | 13676404 | 9660267 |
|  Interest paid | Operating | 4235972 | 2501310 |
|  Dividends received | Operating | 175630 | 182952 |
|  Dividends paid | Financing | 1031167 | 917941 |
|  Interest (dividends) paid on hybrid securities | Financing | 34399 | 24144 |

---

36.4 Changes in liabilities arising from financing activities for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* | **Derivatives**<br>**held for**<br>**hedging \*** | **Borrowings** | **Debentures** | **Due to**<br>**trust**<br>**accounts** | **Lease<br>liabilities** | **Deposits**<br>**for letter of**<br>**guarantees** | **Total** |
|  Beginning | (88125) | 31073908 | 26891141 | 7204168 | 336844 | 373633 | 65791569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash flow | 33287 | 12013037 | 928113 | (877098) | (156277) | 725802 | 12666864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New lease and termination |  |  |  |  | 140598 |  | 140598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange differences |  | 577429 | 454390 |  |  |  | 1031819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in fair values | 97907 |  | (293570) |  |  |  | (195663) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other changes from non-cash transactions | (35349) | 296 | 19342 |  | 7542 | 354 | (7815) |
|  Ending | 7720 | 43664670 | 27999416 | 6327070 | 328707 | 1099789 | 79427372 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* | **Derivatives**<br>**held for**<br>**hedging \*** | **Borrowings** | **Debentures** | **Due to**<br>**trust**<br>**accounts** | **Lease<br>liabilities** | **Deposits<br>for letter of<br>guarantees** | **Total** |
|  Beginning | (142840) | 25099647 | 24690676 | 7715547 | 342811 | 438885 | 58144726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash flow | 5870 | 5338985 | 1839500 | (511379) | (161561) | (66635) | 6444780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New lease and termination |  |  |  |  | 155594 |  | 155594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange differences |  | 635386 | 476790 |  |  |  | 1112176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in fair values | 41762 |  | (126418) |  |  |  | (84656) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other changes from non-cash transactions | 7083 | (110) | 10593 |  |  | 1383 | 18949 |
|  Ending | (88125) | 31073908 | 26891141 | 7204168 | 336844 | 373633 | 65791569 |

---

\* Derivatives held for hedging purposes are the net amount after offsetting liabilities and assets. 

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**37. Contingent Liabilities and Commitments** 

37.1 Details of acceptances and guarantees as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Confirmed acceptances and guarantees** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Confirmed acceptances and guarantees in Korean won: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for KB purchasing loan | 167538 | 136914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance bond | 3476 | 3476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees | 9259 | 27811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 905934 | 786185 |
|  | 1086207 | 954386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Confirmed acceptances and guarantees in foreign currencies: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances of letter of credit | 502217 | 523036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter of guarantees | 78414 | 83089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bid bond | 19998 | 18874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance bond | 976008 | 855247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees | 1705796 | 874173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3010650 | 1957939 |
|  | 6293083 | 4312358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for issuance of debenture | 5040 | 5040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees for mortgage | 94861 | 51053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overseas debt guarantees | 713431 | 547253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International financing guarantees in foreign currencies | 181241 | 132114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial guarantees in Korean won |  | 50948 |
|  | 994573 | 786408 |
|  | 8373863 | 6053152 |
|  **Unconfirmed acceptances and guarantees** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees of letter of credit | 3024034 | 3515378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refund guarantees | 1528359 | 833765 |
|  | 4552393 | 4349143 |
|  | 12926256 | 10402295 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

37.2 Credit qualities of acceptances and guarantees as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **12-month expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Total** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** | **Total** |
|  **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 6391453 | 1140 |  | 6392593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1562960 | 10474 |  | 1573434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 100345 | 16290 |  | 116635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 63689 | 215382 | 442 | 279513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 4130 | 7558 | 11688 |
|  | 8118447 | 247416 | 8000 | 8373863 |
|  **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 3218676 | 844 |  | 3219520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1035680 | 36879 |  | 1072559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 4685 | 13308 |  | 17993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 1265 | 236687 | 5 | 237957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 199 | 4165 | 4364 |
|  | 4260306 | 287917 | 4170 | 4552393 |
|  | 12378753 | 535333 | 12170 | 12926256 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **12-month expected<br>credit losses** | **Lifetime**<br>**expected credit losses** | **Lifetime**<br>**expected credit losses** | **Total** |
| *(In millions of Korean won)* | **12-month expected<br>credit losses** | **Non-impaired** | **Impaired** | **Total** |
|  **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** | **Confirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 4564011 | 20 |  | 4564031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 1169192 | 32567 |  | 1201759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 72567 | 46174 |  | 118741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 7651 | 149785 | 214 | 157650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 774 | 10197 | 10971 |
|  | 5813421 | 229320 | 10411 | 6053152 |
|  **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** | **Unconfirmed acceptances and guarantees \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 1 | 3074136 | 3391 |  | 3077527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 2 | 971315 | 39224 |  | 1010539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 3 | 12039 | 34797 |  | 46836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 4 | 11925 | 195794 |  | 207719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grade 5 |  | 138 | 6384 | 6522 |
|  | 4069415 | 273344 | 6384 | 4349143 |
|  | 9882836 | 502664 | 16795 | 10402295 |

---

\* Applied same criteria as the credit qualities classification of loans.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

37.3 Classifications of acceptances and guarantees by counterparty as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion**<br>**(%)** |
|  Large companies | 7478656 | 3805384 | 11284040 | 87.30 |
|  Small and medium-sized companies | 659701 | 483013 | 1142714 | 8.84 |
|  Public sector and others | 235506 | 263996 | 499502 | 3.86 |
|  | 8373863 | 4552393 | 12926256 | 100.00 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion**<br>**(%)** |
|  Large companies | 5316222 | 3361712 | 8677934 | 83.42 |
|  Small and medium-sized companies | 642474 | 641752 | 1284226 | 12.35 |
|  Public sector and others | 94456 | 345679 | 440135 | 4.23 |
|  | 6053152 | 4349143 | 10402295 | 100.00 |

---

37.4 Classifications of acceptances and guarantees by industry as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion<br>(%)** |
|  Financial institutions | 815133 | 2012 | 817145 | 6.32 |
|  Manufacturing | 3571866 | 3576251 | 7148117 | 55.30 |
|  Service | 739166 | 31465 | 770631 | 5.96 |
|  Wholesale and retail | 2165401 | 658875 | 2824276 | 21.85 |
|  Construction | 401782 | 47465 | 449247 | 3.48 |
|  Public sector | 32635 | 81607 | 114242 | 0.88 |
|  Others | 647880 | 154718 | 802598 | 6.21 |
|  | 8373863 | 4552393 | 12926256 | 100.00 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| *(In millions of Korean won)* | **Confirmed<br>guarantees** | **Unconfirmed<br>guarantees** | **Total** | **Proportion<br>(%)** |
|  Financial institutions | 405916 | 10114 | 416030 | 4.00 |
|  Manufacturing | 2681556 | 2957619 | 5639175 | 54.21 |
|  Service | 660908 | 38920 | 699828 | 6.73 |
|  Wholesale and retail | 1564145 | 990270 | 2554415 | 24.56 |
|  Construction | 297700 | 38260 | 335960 | 3.23 |
|  Public sector | 28050 | 99841 | 127891 | 1.23 |
|  Others | 414877 | 214119 | 628996 | 6.04 |
|  | 6053152 | 4349143 | 10402295 | 100.00 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

37.5 Details of commitments as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  **Commitments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate loan commitments | 50380036 | 44524865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retail loan commitments | 50974278 | 46795678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other commitments in Korean won | 1700000 | 1300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of other securities | 5070170 | 4140069 |
|  | 108124484 | 96760612 |
|  **Financial guarantee contracts** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit line | 6100082 | 4858585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of securities | 1809045 | 2926872 |
|  | 7909127 | 7785457 |
|  | 116033611 | 104546069 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

37.6 Other Matters (including litigation)

The Bank has 36 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of \ 1,016,421 million, and details of pending lawsuits in which the Bank is a defendant as of December 31, 2022, are as follows:

*(In number of cases, in millions of Korean won)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Lawsuits** | **No. of<br>cases** | **Amount** | **Description of the lawsuits** | **Status of the lawsuits** |
|  Request for a return of redemption amount | 1 | 53239 | Kookmin Bank invested the assets entrusted by OO Asset Management and OO Investment Trust Management in the Fairfield Sentry Limited, and Fairfield Sentry Limited reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff (Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses).<br> Bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit against Kookmin Bank seeking to return the amount of redemptions received by Kookmin Bank through Fairfield Sentry Limited. | Application for incineration by the defendant has been denied, and further proceedings are scheduled. [Related litigation is in progress at the New York Southern District Bankruptcy Court (10-3777) at the written complaint review stage] |
|  Confirm the absence of debt | 1 | 96200 | Galamat-Art LLP is a joint guarantor of the PF loan for the 'Kazakhstan Almaty City Complex Development Project' in which Kookmin Bank participated as a lender. OO Bank, the agent bank of the lending group, filed a provisional seizure and a lawsuit on the merits of the guarantee debt to the local court against Galamat-Art LLP. And Galamat-Art LLP filed a counterclaim against the lenders, including Kookmin Bank, to confirm the absence of debt denying the joint guarantee obligation. | The Bank won the case in the first and second trials, and the plaintiff's appeal (appeal deadline: April 19, 2023) is being monitored. |
|  Expropriation of long-term leasehold rights | 1 | 316825 | The Bank invested assets entrusted by DAOL Asset Management Co., Ltd. in loans that are directly or indirectly collateralized by the building and land leasehold rights (hereinafter referred to as "the real estate in this case") of Union Station in Washington, D.C., the United States.<br> The Plaintiff, who is the operator of the railway facility, filed this lawsuit against the stakeholders of the real estate in this case, including the Bank, to expropriate the real estate in this case and determine indemnity. | The Bank submitted the response letter and will proceed with the process in the future. |
|  Others | 101 | 196068 | Others (excluding simple lawsuits related to the collection or management of loans) |  |
|  | 104 | 662332 |  |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**38. Subsidiaries** 

38.1 Details of subsidiaries as of December 31, 2022, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investor** | **Investee** | **Ownership<br>(%)** | **Location** | **Industry** |
|  Kookmin Bank | Kookmin Bank Cambodia Plc. | 100.00 | Cambodia | Banking and foreign exchange transaction |
|  Kookmin Bank | Kookmin Bank (China) Ltd. | 100.00 | China | Banking and foreign exchange transaction |
|  Kookmin Bank | KB Microfinance Myanmar Co., Ltd. | 100.00 | Myanmar | Microfinance services |
|  Kookmin Bank | KB Bank Myanmar Co., Ltd. | 100.00 | Myanmar | Banking and foreign exchange transaction |
|  Kookmin Bank | PRASAC Microfinance Institution Plc. | 99.99 | Cambodia | Microfinance services |
|  Kookmin Bank | PT Bank KB Bukopin Tbk | 67.00 | Indonesia | Banking and foreign exchange transaction |
|  PT Bank KB Bukopin Tbk | PT Bank Syariah Bukopin | 92.78 | Indonesia | Banking |
|  PT Bank KB Bukopin Tbk | PT Bukopin Finance | 97.04 | Indonesia | Installment financing |
|  Kookmin Bank | Orient Kwang-yang Co., Ltd. <sup>2</sup> | 36.16 | Korea | Building of ships |
|  Orient Kwang-yang Co., Ltd. | YoulChon Clean Energy Co., Ltd. | 100.00 | Korea | Other power generation |
|  Kookmin Bank | Personal pension trust and 10 others <sup>1</sup> | 0.00 | Korea | Trust |
|  Kookmin Bank | KBL Incheon 1st L.L.C. and 48 others <sup>2</sup> | 0.00 | Korea | Asset-backed securitization and others |
|  Kookmin Bank | KB Wise Star Private Real Estate Feeder Fund No.1 <sup>2</sup> | 86.00 | Korea | Investment trust |
|  Kookmin Bank | Kiwoom Frontier Private Securities Fund No.10 (Bond) <sup>2</sup> | 99.36 | Korea | Investment trust |
|  Kookmin Bank | Woori SafePlus Private Securities Fund S-8 <sup>2</sup> | 90.85 | Korea | Investment trust |
|  Kookmin Bank | NH-Amundi Global Private Securities Investment Trust No.1 (USD) (Bond) <sup>2</sup> | 99.86 | Korea | Investment trust |
|  Kookmin Bank | Meritz Private Real Estate Fund No.9-2 <sup>2</sup> | 99.98 | Korea | Investment trust |
|  Kookmin Bank | AIP US Red Private Real Estate Trust No.10 <sup>2</sup> | 99.97 | Korea | Investment trust |
|  Kookmin Bank | KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative) <sup>2</sup> | 81.53 | Korea | Investment trust |
|  Kookmin Bank | KB Core Blind Private Real Estate Fund No.1 <sup>2</sup> | 90.09 | Korea | Investment trust |
|  KB Core Blind Private Real Estate Fund No.1 | KB Wise Star Real Estate Fund No.3 <sup>2</sup> | 46.65 | Korea | Investment trust |
|  Kookmin Bank | KB Global Private Real Estate Debt Fund No.3 (USD) <sup>2</sup> | 99.50 | Korea | Investment trust |
|  Kookmin Bank | Samsung SRA Private Real Estate Investment Trust No.28D <sup>2</sup> | 99.50 | Korea | Investment trust |
|  Kookmin Bank | KB Global Private Real Estate Debt Fund No.10 <sup>2</sup> | 99.83 | Korea | Investment trust |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

38.1 Details of subsidiaries as of December 31, 2022, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| **Investor** | **Ownership<br>(%)** | **Location** | **Industry** |
|  Kookmin Bank<br> KTB Global CREDebt No.52 <sup>2</sup> | 99.44 | Korea | Investment trust |
|  Kookmin Bank<br> Hyundai Invest KKR Europe Real Estate No.1-3 <sup>2</sup> | 99.01 | Korea | Investment trust |
|  Kookmin Bank<br> KBSTAR FKTB 5Y Duration Following ETF <sup>2</sup> | 99.60 | Korea | Investment trust |
|  Kookmin Bank<br> Vestas Investors Private Real Estate Fund Investment Trust No.69-3 <sup>2</sup> | 99.52 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR FKTB 5Y Duration Following ETF <sup>2</sup> | 99.60 | Korea | Investment trust |
|  Kookmin Bank<br> SHINHAN ASP PCF II Private Investment Trust No.2 (USD) <sup>2</sup> | 99.75 | Korea | Investment trust |
|  Kookmin Bank<br> Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1 <sup>2</sup> | 97.40 | Korea | Investment trust |
|  Kookmin Bank<br> Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-2 <sup>2</sup> | 97.40 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR KTB 10Y Futures ETF <sup>2</sup> | 65.13 | Korea | Investment trust |
|  Kookmin Bank<br> VI ESG Private Securities Investment Trust No.1 (Bond) <sup>2</sup> | 100.00 | Korea | Investment trust |
|  Kookmin Bank<br> SHINHAN Aim Private Real Estate Fund Investment Trust No.26-C (USD) <sup>2</sup> | 99.98 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR KTB 3Y Futures ETF <sup>2</sup> | 93.77 | Korea | Investment trust |
|  Kookmin Bank<br> SAMSUNG KODEX 10Y F-LKTB INVERSE ETF <sup>2</sup> | 95.53 | Korea | Investment trust |
|  Kookmin Bank<br> KB KBSTAR Nov 2025 Term Credit ETF <sup>2</sup> | 65.45 | Korea | Investment trust |

---

<sup>1</sup> The Bank controls the trust because it has power to determine the management performance of the trust and is exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of principal and fixed rate of return.

<sup>2</sup> The Bank controls these investees because it is significantly exposed to variable returns from the investees' performance and has ability to affect those returns through its power.

The Bank holds more than half of the ownership interests of Koreit BN Private Equity Fund and five other investment trusts but does not have the power over relevant activities in accordance with agreements with trust and other shareholders, therefore these entities are not consolidated.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

38.2 The condensed financial information of major subsidiaries as of and for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **2022** | **2022** |
| *(In millions of Korean won)* |  |  |  |  |  |
|  | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Profit (loss) for<br>the period \*** |
|  Kookmin Bank Cambodia Plc. | 677093 | 536616 | 140477 | 40295 | 13581 |
|  Kookmin Bank (China) Ltd. | 3666107 | 3164601 | 501506 | 230027 | (869) |
|  KB Microfinance Myanmar Co., Ltd. | 20111 | 9475 | 10636 | 5379 | (1164) |
|  PRASAC Microfinance Institution Plc. | 6083323 | 4999794 | 1083529 | 1095307 | 233852 |
|  PT Bank KB Bukopin Tbk | 6533161 | 6661179 | (128018) | 410422 | (802084) |
|  KB Bank Myanmar Co., Ltd. | 262478 | 13655 | 248823 | 3252 | (1333) |
|  Personal pension trust and 10 others | 4120682 | 4077223 | 43459 | 115566 | (76182) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **2021** | **2021** |
| *(In millions of Korean won)* |  |  |  |  |  |
|  | **Assets** | **Liabilities** | **Equity** | **Operating<br>revenue** | **Profit (loss) for<br>the period \*** |
|  Kookmin Bank Cambodia Plc. | 559442 | 440502 | 118940 | 28032 | 11694 |
|  Kookmin Bank (China) Ltd. | 3812297 | 3295555 | 516742 | 182989 | 14064 |
|  KB Microfinance Myanmar Co., Ltd. | 16549 | 3507 | 13042 | 6020 | (6249) |
|  PRASAC Microfinance Institution Plc. | 5128845 | 4329971 | 798874 | 796169 | 205342 |
|  PT Bank KB Bukopin Tbk | 6958949 | 6320222 | 638727 | 413973 | (272526) |
|  KB Bank Myanmar Co., Ltd. | 242396 | 8409 | 233987 | 480 | (3005) |
|  Personal pension trust and 10 others | 4381035 | 4261394 | 119641 | 95531 | 2333 |

---

\* Includes net profit and loss of the non-controlling interests

38.3 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

38.3.1 The Bank has provided capital commitments to consolidated investment funds.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** |
| *(In millions of Korean won)* | **Capital commitments** | **Unused amount** |
|  Meritz Private Real Estate Fund No.9-2 | 63352 | 913 |
|  KTB Global CREDebt No.52 | 63365 | 12564 |
|  Hyundai Invest KKR Europe Real Estate No.1-3 | 54048 | 19228 |
|  Vestas Investors Private Real Estate Fund Investment Trust No.69-3 | 81107 | 35139 |
|  SHINHAN ASP PCF II Private Investment Trust No.2 (USD) | 25346 | 4540 |
|  Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1 | 67258 | 53914 |
|  SHINHAN Aim Private Real Estate Fund Investment Trust No.26-C (USD) | 82375 | 63650 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

38.3.2 The Bank has provided purchase commitment and credit line to consolidated structured entities. The purchase commitment guarantees that the Bank will purchase and pay any remaining commercial paper securities issued by consolidated structured entities. The credit line agreement requires the Bank to provide loans under certain conditions if there is a reason for suspension of issuance of commercial paper securities or if consolidated structured entities become insolvency due to other reasons.

---

| | |
|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** |
|  KBL Incheon 1st L.L.C. | 101000 |
|  KB DTower 1st L.L.C. | 50510 |
|  KBH the 4th L.L.C. | 12200 |
|  Great Forest the 1st L.L.C. | 10200 |
|  KBH the 6th L.L.C. | 50106 |
|  Beomuh Landmark the 2nd L.L.C. | 45600 |
|  K Plus the 1st L.L.C. | 110279 |
|  KB Livv H 1st L.L.C. | 30097 |
|  Livv H 1st L.L.C. | 50152 |
|  KB Eagles 1st Co., Ltd. | 30097 |
|  KB Manchon Harrington Co., Ltd. | 6220 |
|  KB Livv l 1st Co., Ltd. | 15188 |
|  KB Cheongla Hill Co., Ltd. | 60550 |
|  KB Dong-in Central L.L.C. | 20094 |
|  KB Eagles 2nd Co., Ltd. | 50182 |
|  KBH Steal Co., Ltd. | 150204 |
|  KB Penta Co., Ltd. | 20910 |
|  KB Great Bear 1st L.L.C. | 10249 |
|  Ryan Mobility 1st L.L.C. | 50105 |
|  KB Chemical 1st Co., Ltd. | 50158 |
|  KB Harim 1st L.L.C. | 30139 |
|  KB Eagles 3rd Co., Ltd. | 50164 |
|  KB Winchest 1st Co., Ltd. | 10500 |
|  KB Dong-in Central 1st L.L.C. | 300 |
|  LEP 2nd Co., Ltd. | 10000 |
|  KB River County L.L.C. | 29000 |
|  KB Buamsamjung 1st Co., Ltd. | 36039 |
|  Liiv H 2nd Co., Ltd. | 30028 |
|  KB Sungnae 1st L.L.C. | 65000 |
|  JT Capital 7th Asset Securitization Specialty Company | 15600 |
|  KB Landscape 1st L.L.C. | 72900 |
|  KB Pride 1st L.L.C. | 23250 |
|  KB Pride 2nd L.L.C. | 30184 |
|  KB Moonheung 1st Co., Ltd. | 160 |
|  KB One West 1st Co., Ltd. | 1164 |
|  KB Cloud L.L.C. | 10831 |
|  K Gowoon Sekyo 1st Co., Ltd. | 644 |
|  K Gowoon Sekyo 2nd Co., Ltd. | 1341 |
|  KB Great29 1st Co., Ltd. | 57600 |
|  IDMB UNITED PTE.LTD. | 259797 |
|  Liiv H 3rd Co., Ltd. | 50595 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

38.3.3 The Bank has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

38.4 Changes in Subsidiaries

NICE WONHO 1st Co., Ltd. and 24 other subsidiaries were newly included in the scope of consolidation, and KB Happy 1st L.L.C. and 28 other subsidiaries were excluded from the scope of consolidation for the year ended December 31, 2022.

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**39. Lease** 

39.1 The Bank as a Lessee

39.1.1 Amounts recognized in the statements of financial position related to lease as of December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **December 31, 2022** | **December 31, 2021** |
|  Right-of-use property and equipment: \* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | 328375 | 329314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles | 8245 | 7614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 3552 | 5467 |
|  | 340172 | 342395 |
|  Right-of-use intangible assets \* | 2602 | 3610 |
|  | 342774 | 346005 |
|  Lease liabilities \* | 328708 | 336845 |

---

\* Included in property and equipment, intangible assets, and other liabilities.

39.1.2 Amounts recognized in the statements of comprehensive income related to lease for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2021** |
|  Depreciation and amortization of right-of-use assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate | 179219 | 184235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles | 9927 | 10050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 2423 | 3700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible asset | 1007 | 1007 |
|  | 192576 | 198992 |
|  Interest expenses on the lease liabilities | 7541 | 5568 |
|  Expense relating to short-term lease | 2294 | 2161 |
|  Expense relating to lease of low-value assets that are not short-term lease | 2071 | 1873 |

---

Total cash outflows for lease for the years ended December 31, 2022 and 2021 are W 160,642 million and W 165,595 million, respectively.

39.2 The Bank as an Operating Lessor

The future minimum lease payments to be received from the non-cancellable lease contracts as of December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,**<br>**2021** | **December 31,**<br>**2021** |
|  Up to 1 year |  | 12290 |  | 9844 |
|  1-5 years |  | 16654 |  | 15980 |
|  |  | 28944 |  | 25824 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

**40. Related Party Transactions** 

According to Korean IFRS No.1024, the Bank includes the Parent, subsidiaries, the Parent's subsidiaries, associates, associates of the Parent's subsidiaries, associates of the Parent, key management personnel (including family members), and post-employment benefit plans of the Bank and its related party companies in the scope of related parties. The Bank discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the financial statements. Refer to Note 13 for details of investments in associates.

Key management personnel include the executives of the Parent Company and the executives (managing director and above) of the Bank, and companies where the executives and/or their close family members have control or joint control.

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  **Parent** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Fee and commission income | 9493 | 7440 |
|  | Other non-operating income | 1985 | 1638 |
|  | Interest expense | 6345 | 1708 |
|  | Other operating expenses |  | 273 |
|  | General and administrative expenses | 1262 | 926 |
|  **Subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | Interest income | 8254 | 1613 |
|  | Fee and commission income | 48 | 37 |
|  | Other non-operating income | 522 | 294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | Interest income | 18236 | 9188 |
|  | Fee and commission income | 311 | 287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Microfinance Myanmar Co., Ltd. | Fee and commission income | 117 |  |
|  | Reversal of credit losses | 4 |  |
|  | Other non-operating income | 206 | 177 |
|  | Provision for credit losses |  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. | Other non-operating income | 81 | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | Interest income | 15348 | 8121 |
|  | Fee and commission income | 1954 | 1160 |
|  | Reversal of credit losses | 18 |  |
|  | Provision for credit losses |  | 266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | Interest income | 35417 | 2455 |
|  | Fee and commission income | 353 | 1180 |
|  | Reversal of credit losses |  | 546 |
|  | Provision for credit losses | 882 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Orient Kwang-yang Co., Ltd. | Interest expense | 54 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust | Fee and commission income | 12906 | 9586 |
|  | Interest expense | 6833 | 1612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Wise Star Private Real Estate Feeder Fund No.1 | Fee and commission income | 23 | 23 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  Securitization SPE | Interest expense | 1 | 1 |
|  Structured entities | Interest income | 12434 | 1080 |
|  | Fee and commission income | 13407 | 20198 |
|  | Gains on financial instruments at fair value through profit or loss | 1194 | 11478 |
|  | Reversal of credit losses | 95 | 38 |
|  | Interest expense | 3 | 1 |
|  | Losses on financial instruments at fair value through profit or loss | 37628 | 28513 |
|  | Provision for credit losses | 1408 | 313 |
|  KB Haeorum Private Securities Fund No.83 (Bond) \* | Fee and commission income | 10 | 40 |
|  NH-Amundi Global Private Securities Investment Trust No.1 (USD) (Bond) | Fee and commission income | 4 | 4 |
|  KB Core Blind Private Real Estate Fund No.1 | Interest income | 290 | 290 |
|  | Fee and commission income | 10 | 10 |
|  KB Global Private Real Estate Debt Fund No.3 (USD) | Fee and commission income | 3 | 2 |
|  KB Global Private Real Estate Debt Fund No.10 | Fee and commission income | 8 | 5 |
|  Samsung Credit Value Plus Professional Investment Type Private Securities Fund (Bond) \* | Fee and commission income | 2 | 10 |
|  KB Emerging Markets Dept Private Securities Fund(USD)(Bond) \* | Fee and commission income | 1 | 17 |
|  Samsung SRA Private Real Estate Investment Trust No.28D | Fee and commission income | 3 | 2 |
|  KIM Basic Private Securities Fund No.102 (Bond) \* | Fee and commission income | 3 | 13 |
|  NH-Amundi Private Securities Investment Trust S5(USD)(BOND) | Fee and commission income | 3 | 1 |
|  Vestas Investors Private Real Estate Fund Investment Trust No.69-3 | Fee and commission income | 4 |  |
|  KB Leaders Private Securities Fund No.23(Bond-Derivatives) \* | Fee and commission income | 3 |  |
|  Hanwha ARIRANG 3 Year Korea Treasury Bond Futures ETF [Bond-Derivatives] \* | Fee and commission income | 2 |  |
|  SHINHAN ASP PCF II Private Investment Trust No.2 (USD) | Gains on financial instruments at fair value through profit or loss | 337 |  |
|  IDMB UNITED PTE.LTD. | Interest income | 63 |  |
|  | Fee and commission income | 1887 |  |
|  | Provision for credit losses | 985 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  Mirae Asset Triumph Global Privately Placed Feeder Investment Trust No.1 \* | Fee and commission income |  | 11 |
|  UBS Hana Professional Investor Private Investment Trust No.1 (Bond) \* | Fee and commission income |  | 4 |
|  Mirae Asset Triumph Privately Placed Investment Trust No.7 \* | Fee and commission income |  | 7 |
|  KB Korea Short Term Premium Private Securities No.16(USD)(Bond) \* | Fee and commission income |  | 2 |
|  | Losses on financial instruments at fair value through profit or loss |  | 1663 |
|  Parent's subsidiaries |  |  |  |
|  KB Securities Co., Ltd. | Interest income | 7571 | 2897 |
|  | Fee and commission income | 26105 | 27878 |
|  | Gains on financial instruments at fair value through profit or loss | 235328 | 92627 |
|  | Other non-operating income | 4613 | 4371 |
|  | Interest expense | 4533 | 2020 |
|  | Fee and commission expense | 2177 | 716 |
|  | Losses on financial instruments at fair value through profit or loss | 168852 | 108706 |
|  | Provision for credit losses | 106 | 146 |
|  | Other non-operating expenses | 1 |  |
|  | General and administrative expenses | 3233 | 3242 |
|  KB Asset Management Co., Ltd. | Fee and commission income | 2053 | 1959 |
|  | Gains on financial instruments at fair value through profit or loss | 1050 | 178 |
|  | Interest expense | 143 | 43 |
|  | Fee and commission expense | 130 |  |
|  | Losses on financial instruments at fair value through profit or loss | 9 | 98 |
|  | General and administrative expenses | 500 | 500 |
|  KB Real Estate Trust Co., Ltd. | Fee and commission income | 315 | 268 |
|  | Other non-operating income | 34 | 35 |
|  | Interest expense | 258 | 119 |
|  | Fee and commission expense | 1641 | 1806 |
|  KB Investment Co., Ltd. | Fee and commission income | 109 | 126 |
|  | Interest expense | 1647 | 344 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Credit Information Co., Ltd. | Fee and commission income | 75 | 71 |
|  | Other non-operating income | 165 | 143 |
|  | Interest expense | 139 | 69 |
|  | Fee and commission expense | 18142 | 20933 |
|  KB Data System Co., Ltd. | Fee and commission income | 788 | 432 |
|  | Other non-operating income | 185 | 182 |
|  | Interest expense | 164 | 61 |
|  | Other operating expenses | 419 | 349 |
|  | General and administrative expenses | 110623 | 60374 |
|  KB Life Insurance Co., Ltd. | Interest income | 83 |  |
|  | Fee and commission income | 21447 | 17258 |
|  | Gains on financial instruments at fair value through profit or loss | 14050 | 8154 |
|  | Other non-operating income | 56 | 48 |
|  | Interest expense | 13 | 11 |
|  | Fee and commission expense | 579 | 956 |
|  | Losses on financial instruments at fair value through profit or loss | 2060 | 414 |
|  | Other operating expenses | 1 |  |
|  | Provision for credit losses | 224 |  |
|  | General and administrative expenses | 890 | 888 |
|  KB Kookmin Card Co., Ltd. | Interest income | 9324 | 4945 |
|  | Fee and commission income | 161910 | 167682 |
|  | Gains on financial instruments at fair value through profit or loss | 2087 | 287 |
|  | Reversal of credit losses | 178 |  |
|  | Other non-operating income | 1473 | 1682 |
|  | Interest expense | 722 | 736 |
|  | Fee and commission expense | 1742 | 1222 |
|  | Losses on financial instruments at fair value through profit or loss | 1399 | 363 |
|  | Provision for credit losses |  | 327 |
|  | General and administrative expenses | 1469 | 1301 |
|  KB Savings Bank Co., Ltd. | Fee and commission income | 455 | 984 |
|  | Other non-operating income | 31 | 82 |
|  | Interest expense | 10 | 16 |
|  | General and administrative expenses | 3 | 6 |

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Capital Co., Ltd. | Interest income | 2186 | 1529 |
|  | Fee and commission income | 3759 | 2900 |
|  | Reversal of credit losses |  | 245 |
|  | Other non-operating income | 171 | 155 |
|  | Interest expense | 248 | 74 |
|  | Fee and commission expense | 119 | 4 |
|  | Provision for credit losses | 28 |  |
|  | General and administrative expenses |  | 139 |
|  KB Insurance Co., Ltd. | Interest income | 569 | 303 |
|  | Fee and commission income | 27195 | 26351 |
|  | Gains on financial instruments at fair value through profit or loss | 137527 | 69366 |
|  | Reversal of credit losses | 9 |  |
|  | Other non-operating income | 2036 | 1842 |
|  | Interest expense | 180 | 1226 |
|  | Fee and commission expense | 3953 | 2983 |
|  | Losses on financial instruments at fair value through profit or loss | 33916 | 1333 |
|  | Other operating expenses | 3 | 3 |
|  | Provision for credit losses |  | 10 |
|  | Other non-operating expenses |  | 11 |
|  | General and administrative expenses | 13745 | 13590 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Interest income | 66 | 46 |
|  | Fee and commission income | 146 | 103 |
|  | Gains on financial instruments at fair value through profit or loss | 33293 | 6968 |
|  | Other non-operating income | 89 |  |
|  | Interest expense | 4045 | 3736 |
|  | Fee and commission expense | 4136 | 4374 |
|  | Losses on financial instruments at fair value through profit or loss | 638 | 652 |
|  | General and administrative expenses | 963 | 604 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB STAR REIT Co., Ltd. | Interest income | 374 |  |
|  | Fee and commission income | 33 |  |
|  | Gains on financial instruments at fair value through profit or loss | 96 |  |
|  | Interest expense | 9 |  |
|  | Losses on financial instruments at fair value through profit or loss | 13565 |  |
|  KB Hanbando BTL Private Special Asset Fund No.1 | Fee and commission income | 108 | 119 |
|  KB AMP Infra Private Special Asset Fund No.1(FoFs) | Fee and commission income | 8 | 9 |
|  KB AMP Infra Private Special Asset Fund No.13(FoFs) | Fee and commission income | 5 | 1 |
|  KB Muni bond Private Securities Fund No.1 (USD) | Fee and commission income | 11 | 11 |
|  KB Global Private Real Estate Debt Fund No.1 | Fee and commission income | 11 | 10 |
|  KB Global Private Real Estate Debt Fund No.11 | Fee and commission income | 3 | 1 |
|  KB Global Private Real Estate Debt Fund No.15 | Fee and commission income | 10 | 2 |
|  KB Global Private Real Estate Debt Fund No.17 | Fee and commission income | 4 |  |
|  KB NA COMPASS Energy Private Special Asset Fund \* | Fee and commission income | 2 | 7 |
|  KB Star Office Private Real Estate Master Fund No.3 | Interest expense |  | 3 |
|  KB Star Office Private Real Estate Feeder Fund No.4 | Interest income | 760 | 760 |
|  | Fee and commission income | 37 | 37 |
|  | Interest expense | 7 | 5 |
|  | Provision for credit losses | 1 | 1 |
|  KB Global Core Bond Securities Feeder Fund(Bond) | Fee and commission income | 16 | 45 |
|  | Gains on financial instruments at fair value through profit or loss | 459 | 1020 |
|  | Losses on financial instruments at fair value through profit or loss | 61 | 280 |
|  KB Onkookmin Life Income 20 Feeder Fund (FoFs) | Gains on financial instruments at fair value through profit or loss |  | 266 |
|  | Losses on financial instruments at fair value through profit or loss |  | 48 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Onkookmin Life Income 40 Feeder Fund (FoFs) | Gains on financial instruments at fair value through profit or loss |  | 261 |
|  | Losses on financial instruments at fair value through profit or loss |  | 41 |
|  KB New Renewable Energy Private Special Asset Fund No.1 | Fee and commission income | 9 | 8 |
|  KB North America Private Real Estate Debt Fund No.1 | Fee and commission income | 3 | 3 |
|  | Gains on financial instruments at fair value through profit or loss | 2202 | 2502 |
|  | Losses on financial instruments at fair value through profit or loss | 51 |  |
|  KB North America Private Real Estate Debt Fund No.3 | Fee and commission income | 10 | 10 |
|  | Gains on financial instruments at fair value through profit or loss | 9525 | 8580 |
|  | Losses on financial instruments at fair value through profit or loss | 2259 | 536 |
|  KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | Fee and commission income | 5 | 4 |
|  KB Global Infrastructure Synergy Private Special Asset Fund | Fee and commission income | 5 | 3 |
|  | Gains on financial instruments at fair value through profit or loss | 76 |  |
|  KB BMO Senior Loan Private Special Asset Fund No.1(FOF) | Fee and commission income | 10 | 8 |
|  | Gains on financial instruments at fair value through profit or loss | 2515 | 5722 |
|  | Losses on financial instruments at fair value through profit or loss | 2001 | 759 |
|  KB BMO Senior Loan Private Special Asset Fund No.2(USD) | Fee and commission income | 10 | 8 |
|  KB BMO Senior Loan Private Special Asset Fund No.4(USD) | Fee and commission income | 4 |  |
|  KB BMO Senior Loan Private Special Asset Fund No.5(FOF) | Fee and commission income | 6 |  |
|  KB New Renewable Green New Deal Private Special Asset No.2 | Fee and commission income | 8 | 2 |
|  KB Sinansan Line Private Special Asset Fund(SOC) | Fee and commission income | 23 | 12 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Korea Short Term Premium Private Securities No.19(USD)(Bond) \* | Fee and commission income |  | 4 |
|  KB Korea Short Term Premium Private Securities No.21(USD)(Bond) \* | Fee and commission income | 1 | 5 |
|  KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* | Fee and commission income | 8 | 3 |
|  | Losses on financial instruments at fair value through profit or loss | 510 | 1306 |
|  KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* | Fee and commission income | 12 | 2 |
|  | Gains on financial instruments at fair value through profit or loss |  | 96 |
|  | Losses on financial instruments at fair value through profit or loss | 15167 |  |
|  KB Korea Short Term Premium Private Securities No.25(USD)(Bond) | Fee and commission income | 11 |  |
|  | Losses on financial instruments at fair value through profit or loss | 2891 |  |
|  KB Korea Short Term Premium Private Securities No.26(USD)(Bond) | Fee and commission income | 7 |  |
|  | Losses on financial instruments at fair value through profit or loss | 1839 |  |
|  KB Korea Short Term Premium Private Securities No.27(USD)(Bond) | Fee and commission income | 11 |  |
|  | Losses on financial instruments at fair value through profit or loss | 3502 |  |
|  KB Korea Short Term Premium Private Securities No.28(USD)(Bond) \* | Fee and commission income | 10 |  |
|  | Losses on financial instruments at fair value through profit or loss | 11191 |  |
|  KB Korea Short Term Premium Private Securities No.32(USD)(Bond) | Fee and commission income | 5 |  |
|  | Gains on financial instruments at fair value through profit or loss | 5377 |  |
|  KB Korea Short Term Premium Private Securities No.33(USD)(Bond) | Gains on financial instruments at fair value through profit or loss | 1557 |  |
|  KB Multi Alpha Plus Private Fund No.1 | Fee and commission income | 8 | 6 |
|  KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | Fee and commission income | 23 | 8 |
|  KB New Deal Infra Private Special Asset Fund | Fee and commission income | 2 |  |
|  KB Korea Infrastructure Credit Guarantee Private Special Asset No.1 | Fee and commission income | 16 | 5 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Wise Star Private Real Estate No.19 | Fee and commission income | 6 | 3 |
|  Hanwha Europe Credit Private Fund No.16 (FOF) | Gains on financial instruments at fair value through profit or loss | 514 | 36 |
|  | Losses on financial instruments at fair value through profit or loss | 746 | 175 |
|  KB Logistics Blind Private Real Estate Fund No.1 | Interest income | 1129 |  |
|  | Fee and commission income | 48 | 2 |
|  | Provision for credit losses | 2 |  |
|  KB Aircraft Private Special Asset Fund No.1 | Fee and commission income | 13 | 4 |
|  | Gains on financial instruments at fair value through profit or loss | 74 |  |
|  | Losses on financial instruments at fair value through profit or loss | 1761 | 3849 |
|  KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | Fee and commission income | 15 | 5 |
|  KB Oaktree Private Special Asset Fund No.3 | Fee and commission income | 2 |  |
|  KB GK Project Private Special Asset Fund No.3 | Fee and commission income | 44 |  |
|  KB AMP Infra Note Private Special Asset Fund No.14 | Fee and commission income | 5 |  |
|  KB ASF Infra Private Special Asset Fund(FoFs) | Fee and commission income | 1 |  |
|  | Gains on financial instruments at fair value through profit or loss | 48 |  |
|  | Losses on financial instruments at fair value through profit or loss | 587 |  |
|  KB Duke Private Special Asset Fund | Fee and commission income | 4 |  |
|  KB Star Reits Private Real Estate Feeder Fund No.1 | Fee and commission income | 2 |  |
|  KB Star Reits Private Real Estate Feeder Fund No.2 | Fee and commission income | 4 |  |
|  HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A. | Fee and commission income | 1 |  |
|  NB Private Debt Fund IV LUX (B) SCSP | Fee and commission income | 1 |  |
|  KB Europe Renewable Private Special Asset Fund No.3 | Fee and commission income | 1 |  |
|  KB Senior Loan Private Fund No.1 \* | Fee and commission income |  | 1 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  KB Korea Short Term Premium Private Securities No.15(USD)(Bond) \* | Fee and commission income |  | 3 |
|  | Losses on financial instruments at fair value through profit or loss |  | 1614 |
|  KB Korea Short Term Premium Private Securities No.17(USD)(Bond) \* | Fee and commission income |  | 10 |
|  | Losses on financial instruments at fair value through profit or loss |  | 6153 |
|  **Associates** |  |  |  |
|  Korea Credit Bureau Co., Ltd. | Fee and commission income | 52 | 36 |
|  | Interest expense | 1 | 6 |
|  | Fee and commission expense | 1996 | 1860 |
|  | Other operating expenses | 15 | 11 |
|  Incheon Bridge Co., Ltd. | Interest income | 7516 | 4069 |
|  | Fee and commission income | 23 | 22 |
|  | Reversal of credit losses | 28 | 444 |
|  | Interest expense | 517 | 158 |
|  | Fee and commission expense | 6 | 6 |
|  | Losses on financial instruments at fair value through profit or loss | 4434 | 1374 |
|  Kendae Co., Ltd. | Other non-operating expenses | 3 |  |
|  Dongjo Co., Ltd. | Interest income | 9 |  |
|  Dae-A Leisure Co., Ltd. | Interest expense |  | 2 |
|  Skydigital Inc. | Fee and commission income | 3 | 3 |
|  Il-Kwang Electronic Materials Co., Ltd. | Other non-operating expenses | 1 |  |
|  So-Myung Recycling Co., Ltd. | Other non-operating expenses | 2 |  |
|  TMAPMOBILITY CO.,LTD. | Interest expense | 226 |  |
|  KB High-Tech Company Investment Fund | Interest expense | 3 | 8 |
|  Aju Good Technology Venture Fund | Interest expense | 108 | 27 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | Interest expense | 1 | 1 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | Interest expense | 4 | 3 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Interest expense | 6 | 17 |
|  KB Global Platform Fund | Interest expense | 114 | 39 |
|  WJ Private Equity Fund No.1 | Fee and commission income | 7 | 7 |
|  KB Bio Global Expansion Private Equity Fund No.1 | Interest expense | 9 |  |
|  KB Digital Platform Fund | Interest expense | 116 |  |
|  Associate of Parent |  |  |  |
|  KB Star Office Private Real Estate Investment Trust No.1 \* | Interest expense | 2 | 5 |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 | Interest income | 3098 |  |
|  | Interest expense | 60 |  |
|  | Provision for credit losses | 1 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  **Associates of Parent's subsidiaries** |  |  |  |
|  SY Auto Capital Co., Ltd. | Fee and commission income | 4 | 4 |
|  Food Factory Co., Ltd. | Interest income | 80 | 70 |
|  | Fee and commission income | 1 |  |
|  | Reversal of credit losses | 1 | 6 |
|  | Interest expense | 6 | 5 |
|  | Fee and commission expense |  | 2 |
|  BIKDIPEO CO.,LTD. | Interest income | 1 |  |
|  Banksalad Co., Ltd. | Fee and commission income | 36 | 36 |
|  Spark Biopharma Inc. | Interest expense | 272 | 7 |
|  UPRISE, Inc. | Interest income |  | 5 |
|  | Reversal of credit losses |  | 1 |
|  | Interest expense | 3 | 1 |
|  Channel Corporation | Interest expense | 43 |  |
|  COSES GT Co., Ltd. | Interest income | 23 | 18 |
|  | Reversal of credit losses |  | 3 |
|  | Interest expense | 1 | 1 |
|  | Provision for credit losses | 3 |  |
|  KB No.17 Special Purpose Acquisition Company \* | Interest expense | 1 | 14 |
|  KB No.18 Special Purpose Acquisition Company \* | Interest expense | 5 | 20 |
|  KB No.19 Special Purpose Acquisition Company \* | Interest expense | 5 | 9 |
|  KB No.20 Special Purpose Acquisition Company \* | Interest expense | 22 | 15 |
|  KB No.21 Special Purpose Acquisition Company | Interest expense | 30 |  |
|  KB No.22 Special Purpose Acquisition Company | Interest expense | 1 |  |
|  KB No.23 Special Purpose Acquisition Company | Interest expense | 23 |  |
|  KB No.24 Special Purpose Acquisition Company | Interest expense | 1 |  |
|  SwatchOn Inc. \* | Fee and commission income | 5 | 8 |
|  | Interest expense | 5 | 10 |
|  Gomi corporation Inc. | Interest income | 61 | 19 |
|  | Fee and commission income | 1 |  |
|  | Interest expense | 2 | 1 |
|  | Provision for credit losses | 2 | 13 |
|  S&E bio Co., Ltd. | Interest expense | 2 | 1 |
|  Contents First Inc. | Interest income | 128 |  |
|  | Fee and commission income | 1 |  |
|  | Interest expense | 34 | 83 |
|  | Provision for credit losses | 1 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2021** |
|  GENINUS Inc. \* | Interest expense | 12 | 29 |
|  Mantisco Co., Ltd. | Interest expense | 1 | 1 |
|  Pin Therapeutics Inc. | Interest expense | 110 |  |
|  SuperNGine Co., Ltd. | Interest expense |  | 1 |
|  Desilo Inc. | Interest income | 9 | 1 |
|  | Provision for credit losses |  | 2 |
|  Turing Co., Ltd. | Interest expense | 1 | 1 |
|  IGGYMOB Co., Ltd. | Interest expense | 1 | 1 |
|  Kukka Co., Ltd. | Interest expense | 2 |  |
|  Zipdoc Inc. | Interest expense | 1 |  |
|  TeamSparta Inc. | Interest expense | 19 |  |
|  Chabot Mobility Co., Ltd. | Interest expense | 1 |  |
|  Wemade Connect Co., Ltd. | Interest expense | 81 |  |
|  Nextrade Co., Ltd. | Interest expense | 263 |  |
|  KB Pre IPO Secondary Venture Fund No.1 \* | Interest expense |  | 1 |
|  **Others** |  |  |  |
|  Retirement pension | Fee and commission income | 1352 | 1338 |
|  | Interest expense | 39 | 9 |

---

\* Excluded from the Bank's related party as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Parent** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Other assets | 97 | 71 |
|  | Deposits | 231056 | 518076 |
|  | Other liabilities | 828908 | 462800 |
|  **Subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | Cash and due from financial institutions | 4192 | 2543 |
|  | Loans measured at amortized cost (gross amount) | 430882 | 343795 |
|  | Other assets | 3795 | 294 |
|  | Deposits | 2364 | 16042 |
|  | Other liabilities | 336 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | Cash and due from financial institutions | 65523 | 83041 |
|  | Loans measured at amortized cost (gross amount) | 728698 | 1293871 |
|  | Other assets | 5177 | 5043 |
|  | Deposits | 1960 | 3374 |
|  | Borrowings | 267164 | 225870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Microfinance Myanmar Co., Ltd. | Provisions | 45 | 49 |
|  | Other liabilities | 25 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. | Deposits | 383 | 27278 |
|  | Other liabilities | 7 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | Loans measured at amortized cost (gross amount) | 419793 | 182271 |
|  | Allowances for credit losses | 290 | 298 |
|  | Other assets | 2677 | 1080 |
|  | Provisions | 135 | 146 |
|  | Other liabilities | 1967 | 1304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | Cash and due from financial institutions | 242944 |  |
|  | Financial assets at fair value through profit or loss | 247956 |  |
|  | Loans measured at amortized cost (gross amount) | 1112350 | 592750 |
|  | Provisions | 860 |  |
|  | Other assets | 12073 | 81 |
|  | Deposits | 6158 | 3938 |
|  | Other liabilities | 2695 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Orient Kwang-yang Co., Ltd. | Financial assets at fair value through profit or loss | 7 |  |
|  | Deposits | 4040 |  |
|  | Other liabilities | 53 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  Trust | Other assets | 14024 | 29829 |
|  | Other liabilities | 519934 | 169910 |
|  KB Wise Star Private Real Estate Feeder Fund No.1 | Other assets | 5 | 6 |
|  Securitization SPE | Deposits | 1014 | 1035 |
|  Structured entities | Derivative assets |  | 1461 |
|  | Loans measured at amortized cost (gross amount) | 676866 | 69323 |
|  | Allowances for credit losses | 1366 | 248 |
|  | Other assets | 345 | 128 |
|  | Derivative liabilities | 31627 | 11724 |
|  | Deposits | 3735 | 2033 |
|  | Provisions | 316 | 122 |
|  | Other liabilities | 3806 | 3311 |
|  KB Haeorum Private Securities Fund No.83 (Bond) \* | Other assets |  | 1 |
|  NH-Amundi Global Private Securities Investment Trust No.1 (USD) (Bond) | Other assets | 1 | 1 |
|  KB Core Blind Private Real Estate Fund No.1 | Loans measured at amortized cost (gross amount) | 10000 | 10000 |
|  | Other assets | 20 | 20 |
|  KB Global Private Real Estate Debt Fund No.10 | Other assets | 1 | 1 |
|  Samsung Credit Value Plus Professional Investment Type Private Securities Fund (Bond) \* | Other liabilities |  | 478 |
|  KB Emerging Markets Dept Private Securities Fund(USD)(Bond) \* | Other assets |  | 1 |
|  Samsung SRA Private Real Estate Investment Trust No.28D | Deposits | 62 | 37 |
|  | Other liabilities | 122 |  |
|  KIM Basic Private Securities Fund No.102 (Bond) \* | Other assets |  | 2 |
|  | Other liabilities |  | 101 |
|  NH-Amundi Private Securities Investment Trust S5(USD)(BOND) \* | Other assets |  | 1 |
|  Vestas Investors Private Real Estate Fund Investment Trust No.69-3 | Other assets | 1 |  |
|  IDMB UNITED PTE.LTD. | Deposits | 241 |  |
|  | Provisions | 985 |  |
|  | Other liabilities | 1547 |  |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  **Parent's subsidiaries** |  |  |  |
|  KB Securities Co., Ltd. | Derivative assets | 134303 | 43797 |
|  | Loans measured at amortized cost (gross amount) | 141922 | 124527 |
|  | Allowances for credit losses | 358 | 201 |
|  | Other assets | 6186 | 5564 |
|  | Derivative liabilities | 33258 | 33338 |
|  | Deposits | 863597 | 532759 |
|  | Provisions | 36 | 90 |
|  | Other liabilities | 27511 | 26822 |
|  KB Asset Management Co., Ltd. | Other assets | 413 | 422 |
|  | Deposits | 25950 | 13206 |
|  | Other liabilities | 16 | 8 |
|  KB Real Estate Trust Co., Ltd. | Other assets | 2 | 3 |
|  | Deposits | 48600 | 103329 |
|  | Other liabilities | 358 | 353 |
|  KB Investment Co., Ltd. | Deposits | 81064 | 100338 |
|  | Other liabilities | 707 | 42 |
|  KB Credit Information Co., Ltd. | Deposits | 13430 | 4536 |
|  | Other liabilities | 5475 | 5656 |
|  KB Data System Co., Ltd. | Other assets | 317 | 215 |
|  | Deposits | 19254 | 15416 |
|  | Other liabilities | 7362 | 6059 |
|  KB Life Insurance Co., Ltd. | Derivative assets | 773 | 5387 |
|  | Other assets | 1502 | 1519 |
|  | Derivative liabilities | 2060 | 168 |
|  | Deposits | 788 | 2608 |
|  | Provisions | 224 |  |
|  | Other liabilities | 1118 | 1346 |
|  KB Kookmin Card Co., Ltd. | Derivative assets |  | 55 |
|  | Loans measured at amortized cost (gross amount) | 177422 | 71130 |
|  | Allowances for credit losses | 207 | 86 |
|  | Other assets | 22600 | 22043 |
|  | Derivative liabilities | 884 |  |
|  | Deposits | 108935 | 71087 |
|  | Provisions | 423 | 724 |
|  | Other liabilities | 55121 | 47433 |
|  KB Savings Bank Co., Ltd. | Other liabilities | 606 | 323 |
|  KB Capital Co., Ltd. | Loans measured at amortized cost (gross amount) | 35484 | 71130 |
|  | Allowances for credit losses | 52 | 156 |
|  | Other assets | 528 | 365 |
|  | Deposits | 708515 | 219311 |
|  | Provisions | 182 | 45 |
|  | Other liabilities | 3067 | 3006 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  KB Insurance Co., Ltd. | Derivative assets | 137320 | 37098 |
|  | Loans measured at amortized cost (gross amount) | 18390 | 17958 |
|  | Allowances for credit losses | 5 | 3 |
|  | Other assets | 12574 | 15682 |
|  | Derivative liabilities | 29632 | 3670 |
|  | Deposits | 62199 | 4519 |
|  | Debentures |  | 29998 |
|  | Provisions | 7 | 18 |
|  | Other liabilities | 13241 | 12820 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Derivative assets | 13582 | 6968 |
|  | Other assets | 3880 | 3815 |
|  | Derivative liabilities | 642 | 652 |
|  | Deposits | 7779 | 7634 |
|  | Debentures | 30000 | 30000 |
|  | Other liabilities | 43878 | 38100 |
|  KB STAR REIT Co., Ltd. | Other assets | 21 |  |
|  | Derivative liabilities | 8089 |  |
|  | Deposits | 35053 |  |
|  | Other liabilities | 1 |  |
|  KB Hanbando BTL Private Special Asset Fund No.1 | Other assets | 26 | 29 |
|  KB AMP Infra Private Special Asset Fund No.1(FoFs) | Other assets | 1 | 1 |
|  KB AMP Infra Private Special Asset Fund No.13(FoFs) | Other assets | 2 | 1 |
|  KB Muni bond Private Securities Fund No.1 (USD) | Other assets | 2 | 2 |
|  KB Global Private Real Estate Debt Fund No.1 | Other assets | 3 | 3 |
|  KB Global Private Real Estate Debt Fund No.11 | Other assets | 1 |  |
|  KB Global Private Real Estate Debt Fund No.15 | Other assets | 2 | 2 |
|  KB Global Private Real Estate Debt Fund No.17 | Other assets | 1 |  |
|  KB NA COMPASS Energy Private Special Asset Fund \* | Other assets |  | 1 |
|  KB Star Office Private Real Estate Master Fund No.3 | Deposits |  | 171 |
|  | Other liabilities |  | 9 |
|  KB Star Office Private Real Estate Feeder Fund No.4 | Loans measured at amortized cost (gross amount) | 20000 | 20000 |
|  | Allowances for credit losses | 4 | 3 |
|  | Other assets | 13 | 11 |
|  | Deposits | 215 | 532 |
|  | Other liabilities | 4 | 1 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  KB Global Core Bond Securities Feeder Fund(Bond) | Derivative assets |  | 7 |
|  | Other assets | 2 | 4 |
|  | Derivative liabilities |  | 6 |
|  KB New Renewable Energy Private Special Asset Fund No.1 | Other assets | 2 | 2 |
|  KB North America Private Real Estate Debt Fund No.1 | Derivative assets |  | 1378 |
|  | Other assets | 1 | 1 |
|  | Derivative liabilities | 51 |  |
|  KB North America Private Real Estate Debt Fund No.3 | Derivative assets | 2411 | 1221 |
|  | Other assets | 3 | 2 |
|  KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | Other assets | 1 | 1 |
|  KB Global Infrastructure Synergy Private Special Asset Fund | Other assets | 1 | 1 |
|  KB BMO Senior Loan Private Special Asset Fund No.1(FOF) | Derivative assets |  | 3275 |
|  | Other assets | 3 | 2 |
|  | Derivative liabilities | 2001 |  |
|  KB BMO Senior Loan Private Special Asset Fund No.2(USD) | Other assets | 2 | 2 |
|  KB BMO Senior Loan Private Special Asset Fund No.4(USD) | Other assets | 2 |  |
|  KB BMO Senior Loan Private Special Asset Fund No.5(FOF) | Other assets | 3 |  |
|  KB New Renewable Green New Deal Private Special Asset No.2 | Other assets | 2 | 1 |
|  KB Sinansan Line Private Special Asset Fund(SOC) | Other assets | 7 | 4 |
|  KB Korea Short Term Premium Private Securities No.19(USD)(Bond) \* | Other assets |  | 2 |
|  KB Korea Short Term Premium Private Securities No.21(USD)(Bond) \* | Other assets |  | 2 |
|  KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* | Other assets |  | 1 |
|  | Derivative liabilities |  | 1306 |
|  KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* | Derivative assets |  | 96 |
|  | Other assets |  | 2 |
|  KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) | Other assets | 5 |  |
|  | Derivative liabilities | 2891 |  |
|  KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) | Other assets | 3 |  |
|  | Derivative liabilities | 1839 |  |
|  KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) | Other assets | 5 |  |
|  | Derivative liabilities | 3502 |  |
|  KB Korea Short Term Premium Private Securities Fund No.32(USD)(Bond) | Derivative assets | 5377 |  |
|  | Other assets | 5 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) | Derivative assets | 1557 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Multi Alpha Plus Private Fund No.1 | Other assets | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | Other assets | 6 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | Other assets | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Infrastructure Credit Guarantee Private Special Asset No.1 | Other assets | 3 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanwha Europe Credit Private Fund No.16 | Derivative assets |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(FOF) | Derivative liabilities | 744 | 119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | Loans measured at amortized cost (gross amount) | 52500 |  |
|  | Allowances for credit losses | 2 |  |
|  | Other assets | 374 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Aircraft Private Special Asset Fund No.1 | Other assets | 2 | 2 |
|  | Derivative liabilities | 5096 | 3835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | Other assets | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GK Project Private Special Asset Fund No.3 | Other assets | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB ASF Infra Private Special Asset Fund(FoFs) | Other assets | 1 |  |
|  | Derivative liabilities | 479 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Duke Private Special Asset Fund | Other assets | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Reits Private Real Estate Feeder Fund No.1 | Other assets | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Reits Private Real Estate Feeder Fund No.2 | Other assets | 4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A. | Other assets | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NB Private Debt Fund IV LUX (B) SCSP | Other assets | 1 |  |
|  **Associates** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | Deposits | 27889 | 10200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Financial assets at fair value through profit or loss | 32948 | 37382 |
|  | Loans measured at amortized cost (gross amount) | 95200 | 114100 |
|  | Allowances for credit losses | 8 | 25 |
|  | Other assets | 615 | 423 |
|  | Deposits | 48639 | 35487 |
|  | Provisions | 7 | 18 |
|  | Other liabilities | 446 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. | Deposits | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. | Deposits | 154 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Iwon Alloy Co., Ltd. | Deposits | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Computerlife Co., Ltd. | Deposits | 3 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  Skydigital Inc. | Deposits | 10 | 85 |
|  Jo Yang Industrial Co., Ltd. | Deposits |  | 1 |
|  TMAPMOBILITY CO.,LTD. | Deposits | 30000 |  |
|  | Other liabilities | 76 |  |
|  KB High-Tech Company Investment Fund | Deposits | 688 | 1504 |
|  Aju Good Technology Venture Fund | Deposits | 7222 | 6286 |
|  | Other liabilities | 73 | 10 |
|  KB-KDBC Pre-IPO New Technology Business Investment Fund | Deposits | 317 | 904 |
|  KB Digital Innovation & Growth New Technology Business Investment Fund | Deposits | 674 | 2088 |
|  KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Deposits | 1526 | 1524 |
|  | Other liabilities | 1 |  |
|  KB Global Platform Fund | Deposits | 19655 | 26823 |
|  | Other liabilities | 12 | 5 |
|  WJ Private Equity Fund No.1 | Other assets | 2 | 2 |
|  | Deposits | 221 | 260 |
|  KB Bio Global Expansion Private Equity Fund No.1 | Deposits | 1400 |  |
|  | Other liabilities | 9 |  |
|  KB Digital Platform Fund | Deposits | 15000 |  |
|  | Other liabilities | 2 |  |
|  **Associate of Parent** |  |  |  |
|  KB Star Office Private Real Estate Investment Trust No.1 \* | Deposits |  | 2578 |
|  Star-Lord General Investors Private Real Estate Investment Company No.10 | Loans measured at amortized cost (gross amount) | 149294 |  |
|  | Allowances for credit losses | 1 |  |
|  | Other assets | 3208 |  |
|  **Associates of Parent's subsidiaries** |  |  |  |
|  SY Auto Capital Co., Ltd. | Deposits | 10 | 17 |
|  RAND Bio Science Co., Ltd. | Deposits | 3 | 443 |
|  Food Factory Co., Ltd. | Loans measured at amortized cost (gross amount) | 3337 | 3545 |
|  | Allowances for credit losses | 4 | 4 |
|  | Other assets | 4 | 2 |
|  | Deposits | 664 | 839 |
|  | Other liabilities | 1 | 6 |
|  Acts Co., Ltd. \* | Deposits |  | 154 |
|  Paycoms Co., Ltd. | Deposits | 1 | 1 |
|  Big Dipper Co., Ltd. | Deposits | 19 |  |
|  Spark Biopharma Inc. | Deposits | 17534 | 6015 |
|  | Other liabilities | 91 | 3 |
|  Wyatt Corp. | Deposits | 1 | 1 |
|  UPRISE, Inc. | Deposits | 27 | 4001 |
|  CellinCells Co., Ltd. | Deposits | 37 | 38 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  Channel Corporation | Deposits | 3000 |  |
|  | Other liabilities | 21 |  |
|  COSES GT Co., Ltd. | Loans measured at amortized cost (gross amount) | 500 | 500 |
|  | Allowances for credit losses | 4 | 2 |
|  | Other assets | 2 | 1 |
|  | Deposits | 1213 | 1939 |
|  KB No.17 Special Purpose Acquisition Company \* | Deposits |  | 1687 |
|  | Other liabilities |  | 12 |
|  KB No. 18 Special Purpose Acquisition Company \* | Deposits |  | 2077 |
|  | Other liabilities |  | 12 |
|  KB No. 19 Special Purpose Acquisition Company \* | Deposits |  | 1013 |
|  | Other liabilities |  | 5 |
|  KB No.20 Special Purpose Acquisition Company \* | Deposits |  | 1681 |
|  | Other liabilities |  | 3 |
|  KB No.21 Special Purpose Acquisition Company | Deposits | 2263 |  |
|  | Other liabilities | 29 |  |
|  KB No.22 Special Purpose Acquisition Company | Deposits | 1948 |  |
|  KB No.23 Special Purpose Acquisition Company | Deposits | 2205 |  |
|  | Other liabilities | 22 |  |
|  KB No.24 Special Purpose Acquisition Company | Deposits | 9983 |  |
|  | Other liabilities | 1 |  |
|  SwatchOn Inc. \* | Deposits |  | 686 |
|  Gomi corporation Inc. | Loans measured at amortized cost (gross amount) | 2200 | 2200 |
|  | Allowances for credit losses | 15 | 12 |
|  | Other assets | 5 | 4 |
|  | Deposits | 915 | 3188 |
|  | Other liabilities | 1 | 1 |
|  S&E bio Co., Ltd. | Deposits | 6419 | 263 |
|  | Other liabilities | 1 |  |
|  4N Inc. | Deposits | 5 | 39 |
|  Contents First Inc. | Loans measured at amortized cost (gross amount) | 10017 |  |
|  | Allowances for credit losses | 1 |  |
|  | Other assets | 2 |  |
|  | Deposits | 5010 | 12650 |
|  | Other liabilities | 21 | 57 |
|  December & Company Inc. | Deposits | 1 | 1 |
|  GENINUS Inc. \* | Deposits |  | 34415 |
|  | Other liabilities |  | 2 |
|  Mantisco Co., Ltd. | Deposits | 623 | 386 |
|  Pin Therapeutics Inc. | Deposits | 6033 |  |
|  | Other liabilities | 18 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,<br>2021** |
|  G1 Playground Co., Ltd. | Deposits |  | 354 |
|  SuperNGine Co., Ltd. | Deposits | 17 | 944 |
|  Desilo Inc. | Loans measured at amortized cost (gross amount) | 300 | 301 |
|  | Allowances for credit losses | 2 | 2 |
|  | Deposits | 1 | 168 |
|  Turing Co., Ltd. | Deposits | 2788 | 1054 |
|  IGGYMOB Co., Ltd. | Deposits | 254 | 2938 |
|  ZIPDOC Inc. | Deposits | 915 |  |
|  TeamSparta Inc. | Deposits | 12502 |  |
|  | Other liabilities | 6 |  |
|  Chabot Mobility Co., Ltd. | Deposits | 86 |  |
|  Wemade Connect Co., Ltd. | Deposits | 10370 |  |
|  | Other liabilities | 28 |  |
|  Nextrade Co., Ltd. | Deposits | 56202 |  |
|  | Other liabilities | 263 |  |
|  KB Pre IPO Secondary Venture Fund No.1 \* | Deposits |  | 103 |
|  **Key management personnel** | Loans measured at amortized cost (gross amount) | 4391 | 3252 |
|  | Allowances for credit losses | 2 | 2 |
|  | Other assets | 6 | 3 |
|  | Deposits | 9752 | 9909 |
|  | Provisions | 1 | 1 |
|  | Other liabilities | 60 | 27 |
|  **Others** |  |  |  |
|  Retirement pension | Other assets | 778 | 369 |
|  | Other liabilities | 10141 | 5014 |

---

\* Excluded from the Bank's related party as of December 31, 2022.

40.3 Details of right-of-use assets and lease liabilities with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Right-of-use assets | 21927 | 26565 |
|  | Lease liabilities | 26825 | 31814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Right-of-use assets | 108 | 200 |
|  | Lease liabilities | 29 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Right-of-use assets |  | 3797 |
|  | Lease liabilities |  | 3963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Right-of-use assets | 6971 | 9168 |
|  | Lease liabilities | 7021 | 9042 |
|  **Associate of Parent** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Star-Lord General Investors Private Real Estate Investment Company No.10 | Right-of-use assets | 3563 |  |
|  | Lease liabilities | 3707 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LOG the 3rd L.L.C. | Notional amount of derivative financial instruments | 24300 | 24300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBL Incheon 1st L.L.C. | Notional amount of derivative financial instruments | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB DTower 1st L.L.C. | Notional amount of derivative financial instruments | 50000 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB INO 2nd L.L.C. \* | Notional amount of derivative financial instruments |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Happy 1st L.L.C. \* | Notional amount of derivative financial instruments |  | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Socio the 1st L.L.C. \* | Notional amount of derivative financial instruments |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Industry the 1st L.L.C. \* | Notional amount of derivative financial instruments |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBST the 1st L.L.C. \* | Notional amount of derivative financial instruments |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBH the 4th L.L.C. | Notional amount of derivative financial instruments | 12000 | 18000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Great Forest the 1st L.L.C. | Notional amount of derivative financial instruments | 8500 | 14500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBC the 3rd L.L.C. \* | Notional amount of derivative financial instruments |  | 35000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBH the 6th L.L.C. | Notional amount of derivative financial instruments | 50000 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beomuh Landmark the 2nd L.L.C. | Notional amount of derivative financial instruments | 30000 | 56000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Industry 2nd L.L.C. \* | Notional amount of derivative financial instruments |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Handok the 1st L.L.C. \* | Notional amount of derivative financial instruments |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Heracles the 1st L.L.C. \* | Notional amount of derivative financial instruments |  | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; K Plus the 1st L.L.C. | Notional amount of derivative financial instruments | 200000 | 200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Livv H 1st L.L.C. | Notional amount of derivative financial instruments | 30000 | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Livv H 1st L.L.C. | Notional amount of derivative financial instruments | 50000 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Eagles 1st Co., Ltd. | Notional amount of derivative financial instruments | 30000 | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Manchon Harrington Co., Ltd. | Notional amount of derivative financial instruments | 12800 | 14900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Livv l 1st Co., Ltd. | Notional amount of derivative financial instruments | 50000 | 50000 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  KB Cheongla Hill Co., Ltd. | Notional amount of derivative financial instruments | 60000 | 60000 |
|  KB Dong-in Central L.L.C. | Notional amount of derivative financial instruments | 20000 | 20000 |
|  KB Eagles 2nd Co., Ltd. | Notional amount of derivative financial instruments | 50000 | 50000 |
|  KBH Steal Co., Ltd. | Notional amount of derivative financial instruments | 150000 | 150000 |
|  KB Great Bear 1st L.L.C. | Notional amount of derivative financial instruments | 90000 | 90000 |
|  Ryan Mobility 1st L.L.C. | Notional amount of derivative financial instruments | 50000 | 50000 |
|  KB Chemical 1st Co., Ltd. | Notional amount of derivative financial instruments | 50000 | 50000 |
|  KB Eugene 1st Co., Ltd. \* | Notional amount of derivative financial instruments |  | 10000 |
|  KB Harim 1st L.L.C. | Notional amount of derivative financial instruments | 30000 | 30000 |
|  KB Eagles 3rd Co., Ltd. | Notional amount of derivative financial instruments | 50000 | 50000 |
|  LEP 2nd Co., Ltd. | Notional amount of derivative financial instruments | 70000 | 70000 |
|  KB Buamsamjung 1st Co., Ltd. | Notional amount of derivative financial instruments | 35600 | 50000 |
|  Liiv H 2nd Co., Ltd. | Notional amount of derivative financial instruments | 30000 | 30000 |
|  **Parent's subsidiaries** |  |  |  |
|  KB Securities Co., Ltd. | Notional amount of derivative financial instruments | 2820272 | 2360006 |
|  KB Life Insurance Co., Ltd. | Notional amount of derivative financial instruments | 57629 | 163227 |
|  KB Kookmin Card Co., Ltd. | Notional amount of derivative financial instruments | 126730 | 30000 |
|  KB Insurance Co., Ltd. | Notional amount of derivative financial instruments | 2192657 | 1356044 |
|  KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Notional amount of derivative financial instruments | 258928 | 407653 |
|  KB STAR REIT Co., Ltd. | Notional amount of derivative financial instruments | 420280 |  |
|  KB Global Core Bond Securities Feeder Fund(Bond) | Notional amount of derivative financial instruments |  | 25796 |
|  KB North America Private Real Estate Debt Fund No.1 | Notional amount of derivative financial instruments | 31683 | 29638 |
|  KB North America Private Real Estate Debt Fund No.3 | Notional amount of derivative financial instruments | 104552 | 293411 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  KB BMO Senior Loan Private Special Asset Fund No.1(FOF) | Notional amount of derivative financial instruments | 38112 | 60822 |
|  KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* | Notional amount of derivative financial instruments |  | 23941 |
|  KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* | Notional amount of derivative financial instruments |  | 82985 |
|  KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) | Notional amount of derivative financial instruments | 51554 |  |
|  KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) | Notional amount of derivative financial instruments | 38653 |  |
|  KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) | Notional amount of derivative financial instruments | 64632 |  |
|  KB Korea Short Term Premium Private Securities Fund No.32(USD)(Bond) | Notional amount of derivative financial instruments | 103538 |  |
|  KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) | Notional amount of derivative financial instruments | 54494 |  |
|  Hanwha Europe Credit Private Fund No.16 (FOF) | Notional amount of derivative financial instruments | 35081 | 15254 |
|  KB Aircraft Private Special Asset Fund No.1 | Notional amount of derivative financial instruments | 123949 | 136328 |
|  KB ASF Infra Private Special Asset Fund(FoFs) | Notional amount of derivative financial instruments | 6011 |  |

---

\* Excluded from the Bank's related party as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.5 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** | **2022 <sup>1</sup>** |
|  | **Beginning** | **Loan** | **Collection** | **Others** | **Ending** |
|  **Subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | 343795 | 275526 | 208402 | 19963 | 430882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | 1293871 | 791092 | 1476898 | 120633 | 728698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | 182271 | 529730 | 278720 | (13488) | 419793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | 592750 | 8462217 | 7749339 | 54678 | 1360306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured entities <sup>2</sup>  | 69323 | 1772167 | 1164208 | (416) | 676866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IDMB UNITED PTE.LTD. |  | 3874 | 3874 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.1 | 10000 |  |  |  | 10000 |
|  **Parent's subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | 124527 | 1035932 | 1003576 | (14961) | 141922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | 17958 | 475 | 3 | (40) | 18390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | 71130 | 250451 | 147431 | 3272 | 177422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | 71130 |  | 41709 | 6063 | 35484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | 20000 |  |  |  | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 |  | 52500 |  |  | 52500 |
|  **Associates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | 151482 |  | 18900 | (4434) | 128148 |
|  **Associate of Parent** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Star-Lord General Investors Private Real Estate Investment Company No.10 |  | 150000 |  | (706) | 149294 |
|  **Associates of Parent's subsidiaries** | **Associates of Parent's subsidiaries** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. | 3545 | 1500 | 1707 | (1) | 3337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. | 500 |  |  |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. | 2200 |  |  |  | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. | 301 |  |  | (1) | 300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. |  | 10000 |  | 17 | 10017 |
|  **Key management personnel <sup>4</sup>**  | 3252 | 1041 | 2038 | 2136 | 4391 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.5 Details of significant lending transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** | **2021 <sup>1</sup>** |
|  | **Beginning** | **Loan** | **Collection** | **Others** | **Ending** |
|  **Subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | 195840 | 265663 | 138763 | 21055 | 343795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | 1153280 | 1181944 | 1147335 | 105982 | 1293871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | 136000 | 47420 |  | (1149) | 182271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | 652800 | 8153850 | 8276953 | 63053 | 592750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured entities <sup>3</sup>  | 3929 | 113629 | 48101 | (134) | 69323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.1 | 10000 |  |  |  | 10000 |
|  **Parent's subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | 97803 | 829086 | 807840 | 5478 | 124527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. |  | 18200 | 300 | 58 | 17958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | 36992 | 86033 | 38613 | (13282) | 71130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | 54400 | 11441 |  | 5289 | 71130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | 20000 |  |  |  | 20000 |
|  **Associates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | 171756 |  | 18900 | (1374) | 151482 |
|  **Associates of Parent's subsidiaries** | **Associates of Parent's subsidiaries** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. | 3193 | 388 | 37 | 1 | 3545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. | 500 |  | 500 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. | 500 |  |  |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. |  | 2200 |  |  | 2200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. |  | 300 |  | 1 | 301 |
|  **Key management personnel <sup>4</sup>**  | 4599 | 2432 | 1752 | (2027) | 3252 |

---

<sup>1</sup> Transactions between related parties, such as settlements arising from operating activities and daylight overdraft to be repaid on the day of handling, are excluded.

<sup>2</sup> Includes details of KB Happy 1st L.L.C. and 13 others that are excluded from related parties for the year ended December 31, 2022.

<sup>3</sup> Includes details of KB Display 1st L.L.C. and 10 others that are excluded from related parties for the year ended December 31, 2021.

<sup>4</sup> Includes loan transactions that occurred before they became related parties.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2022** | **2022** | **2022** |
|  |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  **Parent** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Deposits | 518076 | 950000 | 950000 | (287020) | 231056 |
|  **Subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | Deposits | 16042 |  |  | (13678) | 2364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | Deposits | 3374 |  |  | (1414) | 1960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | Borrowings | 225870 |  |  | 41294 | 267164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. | Deposits | 27278 |  |  | (26895) | 383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | Deposits | 3938 |  |  | 2220 | 6158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securitization SPE | Deposits | 1035 |  |  | (21) | 1014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured entities | Deposits | 2033 |  |  | 1702 | 3735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung SRA Private Real Estate Investment Trust No.28D | Deposits | 37 |  |  | 25 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Orient Kwang-yang Co., Ltd. | Deposits |  | 3621 | 3571 | 3990 | 4040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IDMB UNITED PTE.LTD. | Deposits |  |  |  | 241 | 241 |
|  **Parent's subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Deposits | 532759 | 109580 | 75000 | 296258 | 863597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Asset Management Co., Ltd. | Deposits | 13206 |  |  | 12744 | 25950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Real Estate Trust Co., Ltd. | Deposits | 103329 |  |  | (54729) | 48600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Deposits | 100338 | 195000 | 203000 | (11274) | 81064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Credit Information Co., Ltd. | Deposits | 4536 | 5599 | 1425 | 4720 | 13430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Data System Co., Ltd. | Deposits | 15416 | 9500 | 10500 | 4838 | 19254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Deposits | 2608 |  |  | (1820) | 788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Deposits | 71087 | 22000 | 22000 | 37848 | 108935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | Deposits | 219311 |  |  | 489204 | 708515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Deposits | 4519 |  |  | 57680 | 62199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Debentures | 29998 |  | 30000 | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Deposits | 7634 |  |  | 145 | 7779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Debentures | 30000 |  |  |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.3 | Deposits | 171 |  | 171 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | Deposits | 532 |  | 318 | 1 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB STAR REIT Co., Ltd. | Deposits |  |  |  | 35053 | 35053 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2022** | **2022** | **2022** |
|  |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | Deposits | 10200 |  |  | 17689 | 27889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Deposits | 35487 | 29217 | 15000 | (1065) | 48639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. | Deposits | 4 |  |  |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. | Deposits | 17 |  |  | 137 | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Iwon Alloy Co., Ltd. | Deposits |  |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Computerlife Co., Ltd. | Deposits |  |  |  | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. | Deposits | 85 |  |  | (75) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. | Deposits | 1 |  |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund | Deposits | 1504 |  |  | (816) | 688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | Deposits | 6286 | 6577 | 3840 | (1801) | 7222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | Deposits | 904 |  |  | (587) | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | Deposits | 2088 |  |  | (1414) | 674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Deposits | 1524 |  |  | 2 | 1526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | Deposits | 26823 |  |  | (7168) | 19655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 | Deposits | 260 |  |  | (39) | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TMAPMOBILITY CO.,LTD. | Deposits |  | 80000 | 50000 |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bio Global Expansion Private Equity Fund No.1 | Deposits |  | 1400 |  |  | 1400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | Deposits |  | 59000 | 44000 |  | 15000 |
|  **Associate of Parent** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Investment Trust No.1 <sup>2</sup> | Deposits | 2578 |  | 2578 |  |  |
|  **Associates of Parent's subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SY Auto Capital Co., Ltd. | Deposits | 17 |  |  | (7) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RAND Bio Science Co., Ltd. | Deposits | 443 |  |  | (440) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. | Deposits | 839 | 511 | 1018 | 332 | 664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acts Co., Ltd. <sup>2</sup> | Deposits | 154 |  |  | (154) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paycoms Co., Ltd. | Deposits | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Big Dipper Co., Ltd. | Deposits |  | 300 | 300 | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spark Biopharma Inc. | Deposits | 6015 | 41165 | 27539 | (2107) | 17534 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2022** | **2022** | **2022** | **2022** | **2022** |
|  |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wyatt Corp. | Deposits | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. | Deposits | 4001 |  |  | (3974) | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CellinCells Co., Ltd. | Deposits | 38 |  |  | (1) | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. | Deposits | 1939 |  |  | (726) | 1213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.17 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1687 |  | 1546 | (141) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.18 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 2077 |  | 2016 | (61) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.19 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1013 |  | 1000 | (13) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.20 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1681 |  | 1534 | (147) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.21 Special Purpose Acquisition Company | Deposits |  | 2000 |  | 263 | 2263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.22 Special Purpose Acquisition Company | Deposits |  |  |  | 1948 | 1948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.23 Special Purpose Acquisition Company | Deposits |  | 2133 |  | 72 | 2205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SwatchOn Inc. <sup>2</sup> | Deposits | 686 |  |  | (686) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. | Deposits | 3188 |  |  | (2273) | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&E bio Co., Ltd. | Deposits | 263 | 50 |  | 6106 | 6419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4N Inc. | Deposits | 39 |  |  | (34) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. | Deposits | 12650 | 10000 | 16000 | (1640) | 5010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December & Company Inc. | Deposits | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENINUS Inc. <sup>2</sup> | Deposits | 34415 |  |  | (34415) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mantisco Co., Ltd. | Deposits | 386 |  |  | 237 | 623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pin Therapeutics Inc. | Deposits |  | 21000 | 16200 | 1233 | 6033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G1 Playground Co., Ltd. | Deposits | 354 |  |  | (354) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SuperNGine Co., Ltd. | Deposits | 944 |  |  | (927) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. | Deposits | 168 |  |  | (167) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turing Co., Ltd. | Deposits | 1054 |  |  | 1734 | 2788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGGYMOB Co., Ltd. | Deposits | 2938 |  |  | (2684) | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Pre IPO Secondary Venture Fund No.1 <sup>2</sup> | Deposits | 103 |  |  | (103) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZIPDOC Inc. | Deposits |  |  |  | 915 | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TeamSparta Inc. | Deposits |  | 9000 | 4000 | 7502 | 12502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chabot Mobility Co., Ltd. | Deposits |  |  |  | 86 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wemade Connect Co., Ltd. | Deposits |  | 11010 | 3267 | 2627 | 10370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wise Asset Management Co., Ltd | Deposits |  | 6 | 6 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Channel Corporation | Deposits |  | 6000 | 3000 |  | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.24 Special Purpose Acquisition Company Co., Ltd. | Deposits |  |  |  | 9983 | 9983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nextrade Co., Ltd. | Deposits |  | 56200 |  | 2 | 56202 |
|  **Key management personnel <sup>3</sup>** | Deposits | 9909 | 14214 | 12345 | (2026) | 9752 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2021** | **2021** | **2021** | **2021** | **2021** |
|  |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  **Parent** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Financial Group Inc. | Deposits | 23084 | 200000 | 200000 | 494992 | 518076 |
|  **Subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank Cambodia Plc. | Deposits | 2584 |  |  | 13458 | 16042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kookmin Bank (China) Ltd. | Deposits | 2278 |  |  | 1096 | 3374 |
|  | Borrowings | 70557 |  |  | 155313 | 225870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bank Myanmar Co., Ltd. | Deposits |  |  |  | 27278 | 27278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | Deposits |  |  |  | 3938 | 3938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securitization SPE | Deposits | 1043 |  |  | (8) | 1035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured entities | Deposits | 1096 |  |  | 937 | 2033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung SRA Private Real Estate Investment Trust No.28D | Deposits | 11 |  |  | 26 | 37 |
|  **Parent's subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Deposits | 464584 | 75000 | 157117 | 150292 | 532759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Asset Management Co., Ltd. | Deposits | 6915 |  |  | 6291 | 13206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Real Estate Trust Co., Ltd. | Deposits | 71261 |  |  | 32068 | 103329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Deposits | 93970 | 236000 | 234000 | 4368 | 100338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Credit Information Co., Ltd. | Deposits | 5340 | 2231 | 2025 | (1010) | 4536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Data System Co., Ltd. | Deposits | 17561 | 9500 | 12500 | 855 | 15416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Deposits | 2085 |  |  | 523 | 2608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Deposits | 91586 | 22000 | 25500 | (16999) | 71087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | Deposits | 190331 |  |  | 28980 | 219311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Deposits | 3365 |  |  | 1154 | 4519 |
|  | Debentures | 29994 |  |  | 4 | 29998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Deposits | 303 |  |  | 7331 | 7634 |
|  | Debentures | 30000 |  |  |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Master Fund No.3 | Deposits | 171 |  |  |  | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | Deposits | 532 |  |  |  | 532 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2021** | **2021** | **2021** | **2021** | **2021** |
|  |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
|  **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. | Deposits | 19982 |  | 1000 | (8782) | 10200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Deposits | 39520 | 15000 | 20000 | 967 | 35487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jungdo Co., Ltd. | Deposits | 4 |  |  |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dae-A Leisure Co., Ltd. | Deposits | 636 |  | 479 | (140) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skydigital Inc. | Deposits | 15 |  |  | 70 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jo Yang Industrial Co., Ltd. | Deposits | 2 |  |  | (1) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund | Deposits | 12695 |  |  | (11191) | 1504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund | Deposits | 3093 | 3840 | 1442 | 795 | 6286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund | Deposits | 923 |  |  | (19) | 904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | Deposits | 1801 |  |  | 287 | 2088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | Deposits | 8097 |  |  | (6573) | 1524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | Deposits | 20197 |  |  | 6626 | 26823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neomio Corp. <sup>2</sup> | Deposits | 535 |  |  | (535) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WJ Private Equity Fund No.1 | Deposits | 349 |  |  | (89) | 260 |
|  **Associate of Parent** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Investment Trust No.1 <sup>2</sup> | Deposits | 4255 |  | 1770 | 93 | 2578 |
|  **Associates of Parent's subsidiaries** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SY Auto Capital Co., Ltd. | Deposits | 6 |  |  | 11 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.17 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1711 | 1546 | 1525 | (45) | 1687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.18 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 2101 | 2016 | 2063 | 23 | 2077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.19 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1053 | 1000 | 1000 | (40) | 1013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB No.20 Special Purpose Acquisition Company <sup>2</sup> | Deposits | 1716 | 1534 | 1522 | (47) | 1681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RAND Bio Science Co., Ltd. | Deposits | 693 |  | 400 | 150 | 443 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **2021** | **2021** | **2021** | **2021** | **2021** |
|  |  | **Beginning** | **Borrowing** | **Repayment** | **Others <sup>1</sup>** | **Ending** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Factory Co., Ltd. | Deposits | 1555 | 507 | 500 | (723) | 839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acts Co., Ltd. <sup>2</sup> | Deposits | 18 |  |  | 136 | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paycoms Co., Ltd. | Deposits | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Big Dipper Co., Ltd. | Deposits | 1 |  |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wyatt Corp. | Deposits | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stratio, Inc. | Deposits | 13 |  |  | (13) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPRISE, Inc. | Deposits | 11 |  |  | 3990 | 4001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CellinCells Co., Ltd. | Deposits | 260 |  |  | (222) | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COSES GT Co., Ltd. | Deposits | 292 |  |  | 1647 | 1939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SwatchOn Inc. <sup>2</sup> | Deposits | 3947 | 200 | 3501 | 40 | 686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gomi corporation Inc. | Deposits | 37 |  |  | 3151 | 3188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&E bio Co., Ltd. | Deposits | 1142 |  |  | (879) | 263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Pre IPO Secondary Venture Fund No.1 <sup>2</sup> | Deposits | 629 |  |  | (526) | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4N Inc. | Deposits | 76 |  |  | (37) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contents First Inc. | Deposits | 1823 | 20000 | 11000 | 1827 | 12650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December & Company Inc. | Deposits | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENINUS Inc. <sup>2</sup> | Deposits | 13630 |  | 5000 | 25785 | 34415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mantisco Co., Ltd. | Deposits |  |  |  | 386 | 386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spark Biopharma Inc. | Deposits |  | 1000 | 3000 | 8015 | 6015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G1 Playground Co., Ltd. | Deposits |  |  |  | 354 | 354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SuperNGine Co., Ltd. | Deposits |  |  |  | 944 | 944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Desilo Inc. | Deposits |  |  |  | 168 | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turing Co., Ltd. | Deposits |  |  |  | 1054 | 1054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IGGYMOB Co., Ltd. | Deposits |  |  |  | 2938 | 2938 |
|  **Key management personnel <sup>3</sup>** | Deposits | 9058 | 9974 | 9568 | 445 | 9909 |

---

<sup>1</sup> Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount. 

<sup>2</sup> Excluded from the Bank's related party as of December 31, 2022.

<sup>3</sup> Includes borrowing transactions that occurred before they became related parties.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows:

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** |
|  | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Orient Kwang-yang Co., Ltd. | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Wise Star Private Real Estate Feeder Fund No.1 |  | 128833 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Haeorum Private Securities Fund No.83 (Bond) \* | 50000 | 150155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kiwoom Frontier Private Securities Fund No.10 (Bond) | 100000 | 149631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori SafePlus Private Securities Fund S-8 | 150000 | 150517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Meritz Private Real Estate Fund No.9-2 | 7418 | 30163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative) | 747309 | 663862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.1 |  | 6556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Private Real Estate Debt Fund No.3 (USD) |  | 1216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung Credit Value Plus Professional Investment Type Private Securities Fund (Bond) \* | 50000 | 99163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Emerging Markets Dept Private Securities Fund(USD)(Bond) \* |  | 119374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung SRA Private Real Estate Investment Trust No.28D |  | 927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KIM Basic Private Securities Fund No.102 (Bond) \* | 50000 | 99844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Private Real Estate Debt Fund No.10 |  | 3503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR Active Korea Short Term Bond Market(AA-) ETF \* |  | 100803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KTB Global CREDebt No.52 | 15019 | 9758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hyundai Invest KKR Europe Real Estate No.1-3 | 10875 | 3120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBSTAR FKTB 5Y Duration Following ETF | 381392 | 329693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NH-Amundi Private Securities Investment Trust S5(USD)(BOND) \* |  | 43233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vestas Investors Private Real Estate Fund Investment Trust No.69-3 | 25986 | 2215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung KODEX 10Y F-LKTB INV ETF \* | 120869 | 129467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Leaders Private Securities Fund No.23(Bond-Derivatives) \* | 100000 | 98532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shinhan Institutional Discretionary Private Security Investment Trust No.1 [Bond-Derivative] \* | 100000 | 100086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBSTAR FKTB 5Y Duration Following ETF | 233042 | 162951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SAMSUNG KODEX 10Y F-LKTB INVERSE ETF \* | 99326 | 96524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hanwha ARIRANG 3 Year Korea Treasury Bond Futures ETF [Bond-Derivatives] \* | 71188 | 69285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHINHAN ASP PCF II Private Investment Trust No.2 (USD) | 21407 | 728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1 | 13496 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-2 | 12391 | 761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR KTB 10Y Futures ETF | 21989 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR KTB 10Y Futures Inverse ETF | 46075 | 8514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; VI ESG Private Securities Investment Trust No.1 (Bond) | 150000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mirae Asset Tiger S&P500 Inverse Future ETF H \* | 61442 | 28957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHINHAN Aim Private Real Estate Fund Investment Trust No.26-C (USD) | 19611 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR KTB 3Y Futures ETF | 102214 | 40198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR US Treasury Long Bond Futures Inverse ETF H \* | 22854 | 22810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR Nov 2025 Term Credit ETF | 50000 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** |
|  | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hanbando BTL Private Special Asset Fund No.1 |  | 19510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hope Sharing BTL Private Special Asset Fund |  | 1416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund |  | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 |  | 2412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Core Bond Securities Feeder Fund(Bond) |  | 42737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Energy Private Special Asset Fund No.1 | 3492 | 1794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Mezzanine Private Securities Fund No.3 |  | 16240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Koreit BN Private Equity Fund |  | 2440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | 2452 | 2746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.2(USD) |  | 2092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.19(USD)(Bond) \* |  | 23985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.21(USD)(Bond) \* |  | 36102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* |  | 24433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* |  | 85433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) | 47672 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) | 35910 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) | 59980 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.28(USD)(Bond) \* | 95368 | 108180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Sinansan Line Private Special Asset Fund(SOC) | 31808 | 2490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Green New Deal Private Special Asset No.2 | 22350 | 1447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Multi Alpha Plus Private Fund No.1 |  | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | 20703 | 1959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Infra Private Special Asset Fund | 10199 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | 25812 | 1463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | 50000 | 48800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GK Project Private Special Asset Fund No.3 |  | 89410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.4(USD) | 38828 | 404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.2 | 5107 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Reits Private Real Estate Feeder Fund No.2 | 65000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR US Short-Term IG Corporate Bond ETF | 20000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.32 | 107312 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR Nov 2023 Term Credit ETF | 180581 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) | 52816 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities Fund No.34(USD)(Bond) | 63420 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** |
|  | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Associates** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund |  | 1700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund |  | 1300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund |  | 5400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 2600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund |  | 2430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund |  | 6400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | 9748 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 8000 | 6150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 12000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | 6000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | 14000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | 6000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | 9600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TMAPMOBILITY CO.,LTD. | 200000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Prime Digital Platform Fund | 2600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Scale Up Fund II | 4500 |  |
|  **Associate of Parent** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company |  | 21177 |
|  **Associate of Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Stonebridge Secondary Private Equity Fund | 2497 | 2409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NAU Special Situation Corporate Restructuring Private Equity Fund | 440 | 2044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Co-Investment Private Equity Fund No.1 | 6320 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NP Green ESG New Technology Venture Capital Fund | 2805 |  |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** |
|  | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
|  **Subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | 381896 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT Bank KB Bukopin Tbk | 393543 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Wise Star Private Real Estate Feeder Fund No.1 |  | 5160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Haeorum Private Securities Fund No.83 (Bond) \* | 150000 | 463699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kiwoom Frontier Private Securities Fund No.10 (Bond) | 100000 | 414899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Woori SafePlus Private Securities Fund S-8 | 100000 | 254328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mirae Asset Triumph Global Privately Placed Feeder Investment Trust No.1 \* |  | 253221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Meritz Private Real Estate Fund No.9-2 | 5253 | 33203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative) | 1529185 | 1522136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.1 |  | 4285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Private Real Estate Debt Fund No.3 (USD) |  | 941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UBS Hana Professional Investor Private Investment Trust No.1 (Bond) \* |  | 101958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mirae Asset Triumph Privately Placed Investment Trust No.7 \* |  | 101399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung Credit Value Plus Professional Investment Type Private Securities Fund (Bond) \* |  | 153251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung KODEX 10Y F-LKTB INV ETF \* | 515234 | 623842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samsung SRA Private Real Estate Investment Trust No.28D |  | 906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KIM Basic Private Securities Fund No.102 (Bond) \* |  | 50365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.16(USD)(Bond) \* |  | 35470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Private Real Estate Debt Fund No.10 | 66750 | 1051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB KBSTAR Active Korea Short Term Bond Market(AA-) ETF \* | 200006 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KTB Global CREDebt No.52 | 39476 | 741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hyundai Invest KKR Europe Real Estate No.1-3 | 24161 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBSTAR FKTB 5Y Duration Following ETF | 70254 | 40596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NH-Amundi Private Securities Investment Trust S5(USD)(BOND) \* | 35151 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vestas Investors Private Real Estate Fund Investment Trust No.69-3 | 18904 |  |
|  **Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT KB DATA SYSTEMS INDONESIA | 145 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hanbando BTL Private Special Asset Fund No.1 |  | 20448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Hope Sharing BTL Private Special Asset Fund |  | 1647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Intellectual Property Fund |  | 476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Senior Loan Private Fund No.1 \* |  | 5844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 |  | 2474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Core Bond Securities Feeder Fund(Bond) |  | 22134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Energy Private Special Asset Fund No.1 |  | 1793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Mezzanine Private Securities Fund No.3 | 22235 | 42562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Koreit BN Private Equity Fund |  | 898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | 1896 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.2(USD) | 6727 | 1657 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | |
|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** |
|  | **Equity<br>investment**<br>**and others** | **Withdrawal**<br>**and others** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.15(USD)(Bond) \* |  | 23660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.17(USD)(Bond) \* |  | 71240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.19(USD)(Bond) \* | 22088 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.21(USD)(Bond) \* | 33213 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.22(USD)(Bond) \* | 22556 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Korea Short Term Premium Private Securities No.23(USD)(Bond) \* | 71112 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Sinansan Line Private Special Asset Fund(SOC) | 29156 | 2757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Green New Deal Private Special Asset No.2 | 12349 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Multi Alpha Plus Private Fund No.1 | 10000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | 33147 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Infra Private Special Asset Fund | 408 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | 31111 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond) | 49000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Commerce Private Equity Investment Fund | 7000 |  |
|  **Associates** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Credit Bureau Co., Ltd. |  | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | 279 | 9584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GwS Private Securities Investment Trust \* |  | 147785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KoFC POSCO Hanwha KB Shared Growth Private Equity Fund No.2 \* |  | 9488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Planning KB Start-up Creation Fund |  | 2800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB High-Tech Company Investment Fund |  | 11450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aju Good Technology Venture Fund |  | 4769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KDBC Pre-IPO New Technology Business Investment Fund |  | 2400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | 1650 | 2880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Innovation & Growth New Technology Business Investment Fund | 1125 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund | 5000 | 5400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | 13500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-UTC Inno-Tech Venture Fund | 3390 | 750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Pre-IPO New Technology Business Investment Fund No.2 | 7500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | 27000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Bio Global Expansion Private Equity Fund No.1 | 10000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | 3000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | 12600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | 600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | 4000 |  |
|  **Associate of Parent's subsidiaries** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Stonebridge Secondary Private Equity Fund | 7576 | 9039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NAU Special Situation Corporate Restructuring Private Equity Fund | 2564 |  |

---

\* Excluded from the Bank's related party as of December 31, 2022.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Microfinance Myanmar Co., Ltd. | Other commitments in foreign currency | 15208 | 14226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRASAC Microfinance Institution Plc. | Loan commitments in foreign currency | 152076 | 118550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Wise Star Private Real Estate Feeder Fund No.1 | Purchase of securities |  | 817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured entities | Loan commitments in Korean won | 11696 | 19827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structured entities | Purchase of securities | 1437844 | 2431472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Meritz Private Real Estate Fund No.9-2 | Purchase of securities | 913 | 7876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.1 | Purchase of securities |  | 175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KTB Global CREDebt No.52 | Purchase of securities | 12564 | 19542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hyundai Invest KKR Europe Real Estate No.1-3 | Purchase of securities | 19228 | 30069 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vestas Investors Private Real Estate Fund Investment Trust No.69-3 | Purchase of securities | 35139 | 56882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHINHAN ASP PCF II Private Investment Trust No.2 (USD) | Purchase of securities | 4540 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IDMB UNITED PTE.LTD. | Loan commitments in foreign currency | 25346 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IDMB UNITED PTE.LTD. | Other commitments in foreign currency | 234451 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1 | Purchase of securities | 53914 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHINHAN Aim Private Real Estate Fund Investment Trust No.26-C (USD) | Purchase of securities | 63650 |  |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Loan commitments in Korean won | 140000 | 140000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Loss sharing agreements | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Loan commitments in Korean won | 100000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Loan commitments in Korean won | 820000 | 820000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Other commitments in Korean won | 1700000 | 1300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Other commitments in foreign currency | 44515 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Capital Co., Ltd. | Other commitments in foreign currency | 40381 | 13041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Loan commitments in Korean won | 20528 | 21000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Energy Private Special Asset Fund No.1 | Purchase of securities | 3010 | 6502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Mezzanine Private Securities Fund No.3 | Purchase of securities | 8006 | 8006 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs) | Purchase of securities | 1968 | 4343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Infra Private Special Asset Fund No.5 | Purchase of securities | 24999 | 24999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Infra Private Special Asset Fund No.6 | Purchase of securities | 24999 | 24999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB BMO Senior Loan Private Special Asset Fund No.2(USD) | Purchase of securities | 29 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Renewable Green New Deal Private Special Asset No.2 | Purchase of securities | 5301 | 27651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Sinansan Line Private Special Asset Fund(SOC) | Purchase of securities | 200988 | 232796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB MCF Senior Loan Private Special Asset Fund No.3(FoFs) | Purchase of securities | 3554 | 14287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Infra Private Special Asset Fund | Purchase of securities | 7492 | 17692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | Purchase of securities |  | 68889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB GK Project Private Special Asset Fund No.3 | Purchase of securities | 23 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.2 | Purchase of securities | 94893 |  |
|  **Associates** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incheon Bridge Co., Ltd. | Loan commitments in Korean won | 20000 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-TS Technology Venture Private Equity Fund | Purchase of securities |  | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB SPROTT Renewable Private Equity Fund No.1 | Purchase of securities | 5140 | 14887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Global Platform Fund | Purchase of securities |  | 8000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Together Korea Fund No.2 | Purchase of securities | 990000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Smart Scale Up Fund | Purchase of securities | 7000 | 19000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Scale Up Fund II | Purchase of securities | 25500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-KTB Technology Venture Fund | Purchase of securities | 6000 | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Digital Platform Fund | Purchase of securities | 113400 | 127400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-SOLIDUS Healthcare Investment Fund | Purchase of securities | 23400 | 29400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB New Deal Innovation Fund | Purchase of securities | 6400 | 16000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Prime Digital Platform Fund | Purchase of securities | 10400 |  |
|  **Associates of Parent Company** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balhae Infrastructure Company | Purchase of securities | 6154 | 6154 |

---

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2022 and 2021, are as follows: (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  **Associates of Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Stonebridge Secondary Private Equity Fund | Purchase of securities | 691 | 3188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NAU Special Situation Corporate Restructuring Private Equity Fund | Purchase of securities | 5096 | 5536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Co-Investment Private Equity Fund No.1 | Purchase of securities | 13680 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-Badgers Future Mobility ESG Fund No.1 | Purchase of securities | 19050 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB-NP Green ESG New Technology Venture Capital Fund | Purchase of securities | 12195 |  |
|  **Key management personnel** | Loan commitments in Korean won | 833 | 808 |

---

40.9 Acceptances and guarantees and unused commitments provided by related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31,**<br>**2022** | **December 31,**<br>**2022** | **December 31,<br>2021** | **December 31,<br>2021** |
|  **Parent's subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Investment Co., Ltd. | Loss sharing agreements |  | 7008 |  | 7561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Loan commitment in Korean won |  | 82354 |  | 88283 |

---

40.10 Details of compensation to key management personnel for the years ended December 31, 2022 and 2021, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2022** | **2022** | **2022** | **2022** |
| *(In millions of Korean won)* |  |  |  |  |
|  | **Short-term**<br>**employee**<br>**benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Total** |
|  Registered directors (executive) | 1963 | 44 | 1034 | 3041 |
|  Registered directors (non-executive) | 420 |  |  | 420 |
|  Non-registered directors | 9801 | 344 | 7563 | 17708 |
|  | 12184 | 388 | 8597 | 21169 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* | **2021** | **2021** | **2021** | **2021** |
| *(In millions of Korean won)* |  |  |  |  |
|  | **Short-term**<br>**employee**<br>**benefits** | **Post-<br>employment<br>benefits** | **Share-based<br>payments** | **Total** |
|  Registered directors (executive) | 1898 | 84 | 2670 | 4652 |
|  Registered directors (non-executive) | 395 |  |  | 395 |
|  Non-registered directors | 7042 | 405 | 7131 | 14578 |
|  | 9335 | 489 | 9801 | 19625 |

---

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##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

40.11 Major types of transactions between the Bank and the related parties include deposit taking transactions, loan transactions such as general purpose loans, corporate purchase loans, B2B loans, etc., settlements of funds arising from overseas remittance, providing credit line through the acceptance of letter of credit issued by the Bank, and overdraft accounts arising from net settlement agreement between the Bank and KB Kookmin Card Co., Ltd.

40.12 Details of collateral provided to related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(In millions of Korean won)* |  | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|  | **Assets<br>pledged \*** | **Carrying<br>amount** | **Collateralized<br>amount** | **Carrying<br>amount** | **Collateralized<br>amount** |
|  **Parent's subsidiaries** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Securities | 62209 | 62000 | 54143 | 54000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Securities | 25425 | 25000 | 25813 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Securities | 47745 | 50000 | 49982 | 50000 |

---

\* Collaterals related to lease contracts arising from operating activities between related parties are excluded.

40.13 Details of collateral provided by related parties as of December 31, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions of Korean won)* | **Assets held as collateral <sup>1</sup>**  | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Subsidiary** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taejon Samho The First Co., Ltd. | Beneficiary certificate of land development trust |  | 130000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Core Blind Private Real Estate Fund No.1 | Real estate | 12000 | 12000 |
|  **Parent's subsidiaries** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Securities Co., Ltd. | Time deposits / Beneficiary right certificate | 167000 | 167000 |
|  | Securities | 129196 | 25135 |
|  | Real estate <sup>2</sup> |  | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd. | Securities | 120000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Kookmin Card Co., Ltd. | Time deposits | 22000 | 22000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Insurance Co., Ltd. | Securities | 250000 | 90000 |
|  | Real estate | 24570 | 24570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Credit Information Co., Ltd. | Time deposits and others | 2228 | 2054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Life Insurance Co., Ltd.(former Prudential Life Insurance Company of Korea Ltd.,) | Securities | 18159 | 20008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Star Office Private Real Estate Feeder Fund No.4 | Real estate | 24000 | 24000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KB Logistics Blind Private Real Estate Fund No.1 | Real estate | 63000 |  |
|  **Key management personnel** | Time deposits and others | 457 | 745 |
|  | Real estate | 5165 | 3818 |

---

<sup>1</sup> Collaterals related to lease contracts arising from operating activities between related parties are excluded.

<sup>2</sup> Related to KB Wise Star Jongno Tower Real Estate Master Fund, a subsidiary of KB Securities Co., Ltd.

------

##### [**Table of Contents**](#toc)
**Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)** 

**Notes to the Separate Financial Statements** 

**December 31, 2022 and 2021** 

------

As of December 31, 2022, Incheon Bridge Co., Ltd., a related party, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to W 611,000 million to the project financing group consisting of the Bank and 5 other institutions, and as subordinated collateral amounting to W 384,800 million to subordinated debt holders consisting of the Bank and 2 other institutions. Also, it provides certificate of credit guarantee amounting to W 400,000 million as collateral to the project financing group consisting of the Bank and 5 other institutions.

40.14 The amounts of debt securities and others purchased through KB securities Co., Ltd. are W 7,341,904 million and W 9,642,170 million for the years ended December 31, 2022 and 2021, respectively, and the amounts of debt securities and others sold through KB securities Co., Ltd. are W 3,791,778 million and W 9,005,607 million for the years ended December 31, 2022 and 2021, respectively. In addition, KB Securities Co., Ltd. acquired W 50,000 million and W 185,000 million of debentures issued by the Bank through underwriting for the years ended December 31, 2022 and 2021, respectively.

40.15 The amounts of intangible assets and others purchased from KB Data System Co., Ltd. are W 42,947 million and W 24,420 million for the years ended December 31, 2022 and 2021, respectively.

40.16 The Bank has entered into CLS (Continuous Linked Settlement) service agreement with KB Securities Co., Ltd. and accordingly the Bank is able to provide intraday liquidity of USD 500 million on the condition of repayment on the day of payment.

40.17 The Bank and KB Kookmin Card Co., Ltd. are jointly and severally liable for the liabilities of the Bank before the spin-off date.

**41. Approval of Issuance of the Financial Statements** 

The issuance of the Bank's financial statements as of and for the year ended December 31, 2022, was approved by the board of directors on February 6, 2023.

------

##### [**Table of Contents**](#toc)
**Operating Status Report of** 

**the Internal Control over Financial Reporting** 

To the Shareholder, Board of Directors and Audit Committee of Kookmin Bank

We, as the Chief Executive Officer ("CEO") and the Internal Accounting Manager of Kookmin Bank("the Bank"), assessed operating status of the Bank's Internal Control over Financial Reporting("ICFR") for the year ended December 31, 2022.

The Bank's management, including ourselves, is responsible for designing and operating ICFR.

We assessed whether the Bank effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in financial statements to ensure preparation and disclosure of reliable financial information.

We used the 'Conceptual Framework for Designing and Operating Internal Control over Financial Reporting' established by the Operating Committee of Internal Control over Financial Reporting in Korea (the "ICFR Committee") as the criteria for design and operation of the Bank's ICFR. We also conducted an assessment of ICFR based on the 'Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting' established by the ICFR Committee.

Based on our assessment, we concluded that the Bank's ICFR is designed and operated effectively as of December 31, 2022, in all material respects, in accordance with the 'Conceptual Framework for Designing and Operating Internal Control over Financial Reporting'.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings of the readers, and we have reviewed and verified this report with sufficient care.

February 24, 2023

Jae Keun Lee,

Chief Executive Officer

Jae Kwan Kim,

Internal Accounting Manager

------

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

**<u>Review Report on Internal Control over Financial Reporting</u>**

<u>Based on a report originally issued in Korean</u> 

To the President of

Kookmin Bank

We have reviewed the accompanying Operating Status Report of the Internal Control over Financial Reporting ("ICFR") of Kookmin Bank (the "Bank") as of December 31, 2022. The Company's management is responsible for designing and maintaining effective ICFR and for its assessment of the effectiveness of ICFR. Our responsibility is to review management's assessment and issue a report based on our review. In the accompanying report of management's assessment of ICFR, the Bank's management stated: "Based on our assessment, we concluded that the Company's ICFR is designed and operated effectively as of December 31, 2022, in all material respects, in accordance with the Conceptual Framework for Designing and Operating Internal Control over Financial Reporting"

We conducted our review in accordance with ICFR Review Standards, issued by the Korean Institute of Certified Public Accountants. Those Standards require that we plan and perform the review to obtain assurance of a level less than that of an audit as to whether the Operating Status Report of the Internal Control over Financial Reporting is free of material misstatement. Our review consists principally of obtaining an understanding of the Bank's ICFR, inquiries of company personnel about the details of the report, and tracing to related documents we considered necessary in the circumstances. We have not performed an audit and, accordingly, we do not express an audit opinion.

A Bank's ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards. Because of its inherent limitations, however, ICFR may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on our review, nothing has come to our attention that the Operating Status Report of the Internal Control over Financial Reporting as of December 31, 2022 is not prepared in all material respects, in accordance with the Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

This report applies to the Bank's ICFR in existence as of December 31, 2022. We did not review the Bank's ICFR subsequent to December 31, 2022. This report has been prepared for Korean regulatory purposes, pursuant to the Act on External Audit of Stock Companies, Etc. and may not be appropriate for other purposes or for other users.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 7, 2023

Notice to Readers This report is annexed in relation to the audit of the financial statements as of December 31, 2022

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**Operating Status Report of** 

**the Internal Control over Financial Reporting** 

To the Shareholder, Board of Directors and Audit Committee of Kookmin Bank

We, as the Chief Executive Officer ("CEO") and the Internal Accounting Manager of Kookmin Bank ("the Bank"), assessed operating status of the Bank's Internal Control over Financial Reporting("ICFR") for the year ended December 31, 2022.

The Bank's management, including ourselves, is responsible for designing and operating ICFR.

We assessed whether the Bank effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in financial statements to ensure preparation and disclosure of reliable financial information.

We used the 'Conceptual Framework for Designing and Operating Internal Control over Financial Reporting' established by the Operating Committee of Internal Control over Financial Reporting in Korea (the "ICFR Committee") as the criteria for design and operation of the Bank's ICFR. We also conducted an assessment of ICFR based on the 'Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting' established by the ICFR Committee.

Based on our assessment, we concluded that the Bank's ICFR is designed and operated effectively as of December 31, 2022, in all material respects, in accordance with the 'Conceptual Framework for Designing and Operating Internal Control over Financial Reporting'.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings of the readers, and we have reviewed and verified this report with sufficient care.

February 24, 2023

Jae Keun Lee,

Chief Executive Officer

Jae Kwan Kim,

Internal Accounting Manager