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Published: 2022-11-15 06:07:03 ET

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EX-99.1 2 d404253dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED

SEPTEMBER 30, 2022 AND 2021

WOORI FINANCIAL GROUP INC.


	Page(s)
Report on Review of Consolidated Interim Financial Statements		1-2

Consolidated Interim Financial Statements

Consolidated Interim Statements of Financial Position		4

Consolidated Interim Statements of Comprehensive Income		5-6

Consolidated Interim Statements of Changes in Equity		7

Consolidated Interim Statements of Cash Flows		8-9

Notes to the Consolidated Interim Financial Statements		10-142

Report on Review of Consolidated Interim Financial Statements

English Translation of a Report Originally Issued in Korean on November 11, 2022

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

Reviewed Financial Statements

We have reviewed the accompanying consolidated interim financial statements of Woori Financial Group Inc. and its subsidiaries (collectively referred to as the “Group”). These financial statements consist of the consolidated interim statement of financial position of the Group as at September 30, 2022 and the related consolidated interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2022 and 2021, and consolidated interim statements of changes in equity and cash flows for the nine-month periods ended September 30, 2022 and 2021, and a summary of significant accounting policies and other explanatory notes, expressed in Korean Won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to issue a report on these consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying consolidated interim financial statements are not presented fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

LOGO

- 1 -

Emphasis of Matters

Without qualifying our conclusion, we draw attention to Note 3 of the consolidated financial statements, which indicates that the outbreak of COVID-19 may have a negative impact on the Group’s financial condition and results of operations.

Other Matters

We have audited the consolidated statement of financial position of the Group as at December 31, 2021, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements, not presented herein, in our audit report dated March 12, 2022. The consolidated statement of financial position as at December 31, 2021, presented herein for comparative purposes, is consistent, in all material respects, with the above audited consolidated statement of financial position as at December 31, 2021.

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

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

November 11, 2022

Notice to Readers

This report is effective as of November 11, 2022, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED

SEPTEMBER 30, 2022 AND 2021

The accompanying consolidated interim financial statements including

all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Tae Seung Son

President and Chief Executive Officer

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

(Phone Number) 02-2125-2000

- 3 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021


	September 30, 2022			December 31, 2021

	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 6)		9,276,913			7,565,818
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, and 24)		30,318,445			13,497,234
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, and 11)		34,635,989			39,119,789
Securities at amortized cost (Notes 4, 9, and 11)		25,137,354			17,086,274
Loans and other financial assets at amortized cost (Notes 4, 10, 11, and 39)		393,304,537			361,932,872
Investments in joint ventures and associates (Note 12)		1,338,107			1,335,167
Investment properties (Note 13)		391,979			389,495
Premises and equipment (Notes 14)		3,156,318			3,174,720
Intangible assets (Note 15)		875,629			785,386
Assets held for sale (Note 16)		17,781			26,327
Net defined benefit asset (Note 22)		195,634			21,346
Current tax assets		40,494			22,598
Deferred tax assets		176,266			31,131
Derivative assets (Designated for hedging) (Notes 4, 11 and 24)		131,025			106,764
Other assets (Notes 17 and 39)		3,072,463			2,088,950

Total assets		502,068,934			447,183,871

LIABILITIES
Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 18 and 24)		21,432,954			4,873,458
Deposits due to customers (Notes 4, 11, 19 and 39)		332,347,105			317,899,871
Borrowings (Notes 4, 11 and 20)		33,400,405			24,755,459
Debentures (Notes 4, 11 and 20)		48,848,451			44,653,864
Provisions (Notes 21, 38 and 39)		534,049			576,134
Net defined benefit liability (Note 22)		43,425			47,986
Current tax liabilities		669,111			584,491
Deferred tax liabilities		22,593			186,946
Derivative liabilities (Designated for hedging) (Notes 4, 11 and 24)		208,641			27,584
Other financial liabilities (Notes 4, 11, 23 and 39)		32,735,783			24,171,030
Other liabilities (Notes 23 and 39)		698,003			556,853

Total liabilities		470,940,520			418,333,676

EQUITY
Owners’ equity (Note 26)
Capital stock		3,640,303			3,640,303
Hybrid securities		2,892,989			2,294,381
Capital surplus		682,385			682,385
Other equity		(2,261,388	)		(2,167,614	)
Retained earnings		23,298,284			21,392,564

		28,252,573			25,842,019

Non-controlling interests		2,875,841			3,008,176

Total equity		31,128,414			28,850,195

Total liabilities and equity		502,068,934			447,183,871

The accompanying notes are part of this consolidated interim financial statements.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021 (UNAUDITED)


	Periods ended September 30, 2022						Periods ended September 30, 2021
	Three-month			Nine-month			Three-month			Nine-month

	(Korean Won in millions, except per share data)
Interest income		3,824,901			10,038,316			2,482,980			7,193,451
Financial assets at FVTPL		30,153			67,888			10,866			33,286
Financial assets at FVTOCI		160,952			452,534			90,588			266,195
Financial assets at amortized cost		3,633,796			9,517,894			2,381,526			6,893,970
Interest expense		(1,580,575	)		(3,690,668	)		(716,728	)		(2,104,580	)

Net interest income (Notes 11, 28 and 39)		2,244,326			6,347,648			1,766,252			5,088,871
Fees and commissions income		624,524			1,836,127			546,115			1,612,031
Fees and commissions expense		(200,004	)		(565,223	)		(169,793	)		(506,255	)

Net fees and commissions income (Notes 11, 29 and 39)		424,520			1,270,904			376,322			1,105,776
Dividend income (Notes 11, 30 and 39)		44,313			123,235			132,199			262,937
Net gain(loss) on financial instruments at FVTPL (Notes 11, 31 and 39)		328,551			669,978			101,797			238,204
Net gain(loss) on financial assets at FVTOCI (Notes 11 and 32)		(7,196	)		(8,846	)		771			45,830
Net gain(loss) arising on financial assets at amortized cost (Note 11)		7,391			74,349			59,075			97,755
Impairment losses due to credit loss (Notes 33 and 39)		(125,171	)		(622,034	)		(107,085	)		(311,661	)
General and administrative expense (Notes 34 and 39)		(979,723	)		(2,936,825	)		(937,348	)		(2,792,841	)
Other net operating expense (Notes 11, 24, 34 and 39)		(666,459	)		(1,215,744	)		(300,215	)		(659,263	)

Operating income		1,270,552			3,702,665			1,091,768			3,075,608
Share of gain(loss) of joint ventures and associates (Note 12)		32,099			39,384			20,541			46,782
Other non-operating income(expense)		(14,443	)		14,070			22,673			30,340

Non-operating income(expense) (Note 35)		17,656			53,454			43,214			77,122
Net income before income tax expense		1,288,208			3,756,119			1,134,982			3,152,730
Income tax expense (Note 36)		(354,823	)		(963,430	)		(310,586	)		(791,083	)
Net income		933,385			2,792,689			824,396			2,361,647

Net gain(loss) on valuation of equity securities at FVTOCI		(13,194	)		(55,728	)		(72,200	)		99,901
Changes in capital due to equity method		(807	)		(2,276	)		(2,256	)		(2,279	)
Remeasurement loss related to defined benefit plan		89,047			217,933			22,898			36,502

Items that will not be reclassified to profit or loss		75,046			159,929			(51,558	)		134,124

Net gain(loss) on valuation of debt securities at FVTOCI		(138,299	)		(660,007	)		(36,389	)		(162,742	)
Changes in capital due to equity method		1,296			4,478			2,958			4,857
Net gain(loss) on foreign currency translation of foreign operations		320,466			571,381			149,097			235,358
Net gain(loss) on valuation of hedges of net investments in foreign operations		(81,632	)		(125,603	)		—			—
Net gain(loss) on valuation of cash flow hedge		(5,967	)		(3,043	)		1,442			5,488

Items that may be reclassified to profit or loss		95,864			(212,794	)		117,108			82,961
Other comprehensive income(loss), net of tax		170,910			(52,865	)		65,550			217,085
Total comprehensive income		1,104,295			2,739,824			889,946			2,578,732

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021 (UNAUDITED) (CONTINUED)


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month

	(Korean Won in millions, except per share data)
Net income attributable to:		933,385		2,792,689		824,396		2,361,647
Net income attributable to owners		899,811		2,661,745		778,238		2,197,936
Net income attributable to non-controlling interests		33,574		130,944		46,158		163,711
Total comprehensive income attributable to:		1,104,295		2,739,824		889,946		2,578,732
Comprehensive income attributable to owners		1,058,669		2,591,033		833,863		2,403,294
Comprehensive income attributable to non-controlling interests		45,626		148,791		56,083		175,438
Earnings per share (Note 37)
Basic and diluted earnings per share (Unit: In Korean Won)		1,206		3,570		1,049		2,971

The accompanying notes are part of this consolidated interim financial statements.

- 6 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021 (UNAUDITED)


	Capital Stock		Hybrid securities		Capital surplus		Other equity			Retained earnings			Owners’ equity in total			Non-controlling interests			Total equity

	(Korean Won in millions)
January 1, 2021		3,611,338		1,895,366		626,111		(2,347,472	)		19,268,265			23,053,608			3,672,237			26,725,845
Total comprehensive income
Net income		—		—		—		—			2,197,936			2,197,936			163,711			2,361,647
Net gain(loss) on valuation of financial instruments at FVTOCI		—		—		—		(62,912	)		—			(62,912	)		71			(62,841	)
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—		(1,354	)		1,354			—			—			—
Changes in capital due to equity method		—		—		—		3,484			(906	)		2,578			—			2,578
Gain on foreign currency translation of foreign operations		—		—		—		223,881			—			223,881			11,477			235,358
Gain on valuation of cash flow hedge		—		—		—		5,319			—			5,319			169			5,488
Capital related to non-current assets held for sale		—		—		—		(901	)		901			—			—			—
Remeasurement gain(loss) related to defined benefit plan		—		—		—		36,492			—			36,492			10			36,502
Transactions with owners and others
Comprehensive stock exchange		28,965		—		35,197		—			—			64,162			—			64,162
Dividends to common stocks		—		—		—		—			(368,357	)		(368,357	)		(9,382	)		(377,739	)
Acquisition of treasury stocks		—		—		—		(3,819	)		—			(3,819	)		—			(3,819	)
Issuance of hybrid securities		—		199,452		—		—			—			199,452			—			199,452
Dividends to hybrid securities		—		—		—		—			(48,900	)		(48,900	)		(100,158	)		(149,058	)
Redemption of hybrid securities		—		—		—		(27,365	)		—			(27,365	)		(549,904	)		(577,269	)
Changes in subsidiaries’ capital		—		—		7,703		32,730			(31,252	)		9,181			(9,062	)		119
Others		—		—		11,695		22,988			—			34,683			(180,337	)		(145,654	)

September 30, 2021 (Unaudited)		3,640,303		2,094,818		680,706		(2,118,929	)		21,019,041			25,315,939			2,998,832			28,314,771

January 1, 2022		3,640,303		2,294,381		682,385		(2,167,614	)		21,392,564			25,842,019			3,008,176			28,850,195
Total comprehensive income
Net income		—		—		—		—			2,661,745			2,661,745			130,944			2,792,689
Net gain(loss) on valuation of financial instruments at FVTOCI		—		—		—		(715,038	)		—			(715,038	)		(697	)		(715,735	)
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—		10,343			(10,343	)		—			—			—
Changes in capital due to equity method		—		—		—		2,202			—			2,202			—			2,202
Gain on foreign currency translation of foreign operations		—		—		—		552,842			—			552,842			18,539			571,381
Loss on valuation of hedges of net investments in foreign operations		—		—		—		(125,603	)		—			(125,603	)		—			(125,603	)
Loss on valuation of cash flow hedge		—		—		—		(3,043	)		—			(3,043	)		—			(3,043	)
Capital related to non-current assets held for sale		—		—		—		(279	)		279			—			—			—
Remeasurement gain(loss) related to defined benefit plan		—		—		—		217,928			—			217,928			5			217,933
Transactions with owners and others
Dividends to common stocks		—		—		—		—			(654,996	)		(654,996	)		(9,940	)		(664,936	)
Issuance of hybrid securities		—		598,608		—		—			—			598,608			349,215			947,823
Dividends to hybrid securities		—		—		—		—			(63,600	)		(63,600	)		(77,290	)		(140,890	)
Redemption of hybrid securities		—		—		—		(60,491	)		—			(60,491	)		(559,565	)		(620,056	)
Changes in subsidiaries’ capital		—		—		—		27,365			(27,365	)		—			—			—
Changes in non-controlling interests related to business combinations		—		—		—		—			—			—			16,454			16,454

September 30, 2022 (Unaudited)		3,640,303		2,892,989		682,385		(2,261,388	)		23,298,284			28,252,573			2,875,841			31,128,414

The accompanying notes are part of this consolidated interim financial statements.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021 (UNAUDITED)


	For the nine-month periods ended September 30
	2022			2021

	(Korean Won in millions)
Cash flows from operating activities:
Net income		2,792,689			2,361,647
Adjustments to net income:
Income tax expense		963,430			791,083
Interest income		(10,038,316	)		(7,193,451	)
Interest expense		3,690,668			2,104,580
Dividend income		(123,235	)		(262,937	)

		(5,507,453	)		(4,560,725	)

Additions of expenses not involving cash outflows:
Loss on financial instruments at FVTPL		948,602			46,876
Loss on financial assets at FVTOCI		10,979			1,281
Impairment loss due to credit loss		622,034			311,661
Loss on other provisions		8,169			76,101
Retirement benefit		123,656			133,055
Depreciation and amortization		682,343			583,994
Net loss on foreign currency translation (transaction)		652,330			93,795
Loss on derivatives (designated for hedge)		280,649			61,601
Loss on fair value hedge		—			1,947
Loss on valuation and impairment loss of investments in joint ventures and associates		31,594			10,767
Loss on disposal of investments in joint ventures and associates		116			110
Loss on disposal of premises and equipment, intangible assets and other assets		2,222			2,933
Impairment loss on premises and equipment, intangible assets and other assets		390			641
Other loss		62,196			—

		3,425,280			1,324,762

Deductions of income not involving cash inflows:
Gain on financial assets at FVTOCI		2,133			47,111
Gain on other provisions		56,036			700
Gain on derivatives (designated for hedge)		157,349			61,060
Gain on fair value hedge		300,335			72,926
Gain on valuation of investments in joint ventures and associates		70,978			57,549
Gain on disposal of investments in joint ventures and associates		599			70,644
Gain on disposal of premises and equipment, intangible assets and other assets		41,986			46,322
Reversal of impairment loss on premises and equipment, intangible assets and other assets		136			92
Other income		15,881			27,560

		645,433			383,964

Changes in operating assets and liabilities:
Financial instruments at FVTPL		(1,568,492	)		335,653
Loans and other financial assets at amortized cost		(23,823,842	)		(30,993,726	)
Other assets		(1,101,150	)		(854,651	)
Deposits due to customers		7,917,524			17,717,378
Provisions		(21,030	)		(18,087	)
Net defined benefit liability		(3,543	)		(63,224	)
Other financial liabilities		6,855,504			9,002,391
Other liabilities		55,140			57,070

		(11,689,889	)		(4,817,196	)

Interest income received		9,769,052			7,059,836
Interest expense paid		(3,079,686	)		(2,252,858	)
Dividends received		123,459			241,698
Income tax paid		(962,334	)		(543,381	)

Net cash outflow from operating activities		(5,774,315	)		(1,570,181	)

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021 (UNAUDITED) (CONTINUED)


	For the nine-month periods ended September 30
	2022			2021

	(Korean Won in millions)
Cash flows from investing activities:
Cash in-flows from investing activities:
Disposal of financial instruments at FVTPL		8,586,050			7,004,991
Disposal of financial assets at FVTOCI		16,088,356			17,653,915
Redemption of securities at amortized cost		4,501,366			3,798,270
Disposal of investments in joint ventures and associates		181,505			152,802
Disposal of investment properties		2,021			—
Disposal of premises and equipment		44,842			2,804
Disposal of intangible assets		1,119			354
Disposal of assets held for sale		35,937			84,979
Net decrease of other assets		61,816			65,273

		29,503,012			28,763,388

Cash out-flows from investing activities:
Net cash flow from business combinations		124,816			—
Acquisition of financial instruments at FVTPL		8,150,654			9,323,090
Acquisition of financial assets at FVTOCI		11,699,156			20,220,223
Acquisition of securities at amortized cost		12,245,256			3,486,036
Acquisition of investments in joint ventures and associates		137,427			231,191
Acquisition of premises and equipment		112,182			81,299
Acquisition of intangible assets		121,721			102,223

		32,591,212			33,444,062

Net cash outflow from investing activities		(3,088,200	)		(4,680,674	)

Cash flows from financing activities:
Cash in-flows from financing activities:
Net increase in derivatives designated for hedging purpose		29,642			—
Net increase in borrowings		5,946,856			2,847,174
Issuance of debentures		21,583,145			23,228,492
Net increase of other liabilities		638			3,364
Issuance of hybrid securities		947,823			199,452
Capital increase of non-controlling interests		—			1,623
Net increase in non-controlling interests liabilities		1,017			8,416

		28,509,121			26,288,521

Cash out-flows from financing activities:
Net decrease in derivatives designated for hedging purpose		—			172
Redemption of debentures		18,137,928			18,588,699
Redemption of lease liabilities		139,527			133,302
Issuance cost of new stocks		—			140
Acquisition of treasury stocks		—			3,757
Dividends paid		654,996			368,357
Redemption of hybrid securities		643,000			587,650
Dividends paid to hybrid securities		140,890			149,058
Dividends paid to non-controlling interest		9,940			9,382
Changes in non-controlling interests		—			81,410

		19,726,281			19,921,927

Net cash inflow from financing activities		8,782,840			6,366,594

Effects of exchange rate changes on cash and cash equivalents		1,790,770			969,357
Net increase in cash and cash equivalents		1,711,095			1,085,096
Cash and cash equivalents, beginning of the period		7,565,818			9,990,983

Cash and cash equivalents, end of the period (Note 6)		9,276,913			11,076,079

The accompanying notes are part of this consolidated interim financial statements.

- 9 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2022 AND 2021 (UNAUDITED)

1.	GENERAL

(1)	Summary of the Parent company

Woori Financial Group, Inc. (hereinafter referred to the “Parent company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank (hereinafter referred to the “Bank”), Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Parent company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,640,303 million Won as of September 30, 2022. The Parent company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

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


Stock transfer company	Total number of issued shares		Exchange ratio per share		Number of Parent company’s stocks
Woori Bank		676,000,000		1.0000000		676,000,000
Woori FIS Co., Ltd.		4,900,000		0.2999708		1,469,857
Woori Finance Research Institute Co., Ltd.		600,000		0.1888165		113,289
Woori Credit Information Co., Ltd.		1,008,000		1.1037292		1,112,559
Woori Fund Service Co., Ltd.		2,000,000		0.4709031		941,806
Woori Private Equity Asset Management Co., Ltd.		6,000,000		0.0877992		526,795

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

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

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

The Parent company acquired 76.8% (excluding treasury stocks, 74.0% interest including treasury stocks) interest in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.) on December 10, 2020. In addition, as of April 15, 2021, the Group acquired 13.3% interests (excluding treasury stock, 12.9% when including treasury stock) in Woori Financial Capital Co., Ltd., and as of May 24, 2021, the Parent company additionally acquired treasury stock (3.6%) which Woori Financial Capital Co., Ltd. possessed.

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

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

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

- 10 -

(2)	Details of the Parent company and subsidiaries (hereinafter referred to the “Group”) as of September 30, 2022 and December 31, 2021 are as follows:

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

September 30,
2022

December 31,
2021

Held by Woori Financial Group Inc.

Woori Bank

Bank

100.0

Korea

September 30

Woori Card Co., Ltd.

Finance

100.0

Korea

September 30

Woori Financial Capital Co., Ltd.

Finance

100.0

Korea

September 30

Woori Investment Bank Co., Ltd.

Other credit finance business

58.7

Korea

September 30

Woori Asset Trust Co., Ltd.

Real estate trust

67.2

Korea

September 30

Woori Savings Bank (*7)

Mutual saving bank

100.0

Korea

September 30

Woori Asset Management Corp.

Finance

73.0

Korea

September 30

Woori Financial F&I Co., Ltd.

Finance

100.0

—

Korea

September 30

Woori Credit Information Co., Ltd.

Credit information

100.0

Korea

September 30

Woori Fund Service Co., Ltd.

Financial support service business

100.0

Korea

September 30

Woori Private Equity Asset Management Co., Ltd.

Finance

100.0

Korea

September 30

Woori Global Asset Management Co., Ltd.

Finance

100.0

Korea

September 30

Woori FIS Co., Ltd.

System software development & maintenance

100.0

Korea

September 30

Woori Finance Research Institute Co., Ltd.

Other service business

100.0

Korea

September 30

Held by Woori Bank

Woori America Bank (*1)

Finance

100.0

America

September 30

Woori Global Markets Asia Limited

Finance

100.0

Hong Kong

September 30

Woori Bank China Limited

Finance

100.0

China

September 30

AO Woori Bank (*10)

Finance

100.0

Russia

September 30

PT Bank Woori Saudara Indonesia 1906 Tbk (*1)

Finance

84.2

Indonesia

September 30

Banco Woori Bank do Brasil S.A.

Finance

100.0

Brazil

September 30

Korea BTL Infrastructure Fund

Finance

99.9

Korea

September 30

Woori Finance Myanmar Co., Ltd.

Finance

100.0

Myanmar

September 30

Wealth Development Bank

Finance

51.0

Philippines

September 30

Woori Bank Vietnam Limited

Finance

100.0

Vietnam

September 30

Woori Bank (Cambodia) PLC (*9)

Finance

100.0

Cambodia

September 30

Woori Bank Europe (*1)

Finance

100.0

Germany

September 30

Kumho Trust First Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Asiana Saigon Inc. (*2)

Asset securitization

0.0

Korea

September 30

KAMCO Value Recreation First Securitization Specialty Co., Ltd. (*2)

Asset securitization

15.0

Korea

September 30

Deogi Dream Fourth Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

Jeonju Iwon Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Wonju I one Inc. (*2)

Asset securitization

0.0

Korea

September 30

Heitz Third Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woorihansoop 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori International First Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Wibihansoop 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori QS 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Display 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Tiger Eyes 2nd Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

Woori Display 2nd Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Dream 2nd Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori H 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori K 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori S 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Display 3rd Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

TY 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori-HJ 3rd Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

Woori K 2nd Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

- 11 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

September 30,
2022

December 31,
2021

Woori KC No.1 Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Quantum Jump the 2nd Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Quantum Jump the 1st Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

Woori BK the 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori-HC 1st Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

Wivi Synergy 1st Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

ATLANTIC TRANSPORTATION 1 S.A. (*2)

Asset securitization

0.0

Marshall islands

September 30

Woori Gongdeok First Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

HD Project Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori HW 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori HC 2nd Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Dream 3rd Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori SJS 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Steel 1st Co., Ltd (*2)

Asset securitization

0.0

Korea

September 30

SPG the 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori-HWC 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori HC 3rd Co., Ltd. (*2).

Asset securitization

0.0

Korea

September 30

Woori Park I 1st co., Ltd (*2)

Asset securitization

0.0

Korea

September 30

Woori DS 1st co., Ltd (*2)

Asset securitization

0.0

Korea

September 30

Woori HC 4th Co., Ltd. (*2).

Asset securitization

0.0

Korea

September 30

Woori SKR 1st Co., Ltd. (*2).

Asset securitization

0.0

Korea

September 30

Woori H chemical 1st Co.,Ltd (*2)

Asset securitization

0.0

Korea

September 30

HE the 1st Co.,Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Hub The 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori K The 3rd Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori KF 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

WooriI TS 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori H Square 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori L Yongsan 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori HC 5th Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Ladena 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori HR 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori Lotte Dongtan 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori HC 6th Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori ECO 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Woori HO 1th Co., Ltd. (*2)

Asset securitization

0.0

—

Korea

September 30

Woori ESG 1st Co.,Ltd. (*2)

Asset securitization

0.0

—

Korea

September 30

Woori Osiria 1st Co.,Ltd. (*2)

Asset securitization

0.0

—

Korea

September 30

Woori Eco 2nd Co.,Ltd. (*2)

Asset securitization

0.0

—

Korea

September 30

Gangnam Landmark 2nd Co., Ltd (*2)

Asset securitization

0.0

—

Korea

September 30

Woori HP the 1st co., ltd. (*2)

Asset securitization

0.0

—

Korea

September 30

G5 Pro Short-term Bond Investment Fund 13 (*3)(*5)

Securities investment and others

—

100.0

Korea

Heungkuk Global Private Placement Investment Trust No. 1 (*3)

Securities investment and others

98.8

Korea

September 30

AI Partners UK Water Supply Private Placement Investment Trust No.2 (*3)

Securities investment and others

97.3

England

September 30

Multi Asset Global Real Estate Investment Trust No. 5-2 (*3)

Securities investment and others

99.0

Korea

September 30

IGIS Australia Investment Trust No. 209-1 (*3)

Securities investment and others

99.4

Korea

September 30

INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*3)

Securities investment and others

97.7

Korea

September 30

Woori G Japan General Type Private Real Estate Feeder Investment Trust No.1-2 (*3)

Securities investment and others

98.8

Korea

September 30

- 12 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

September 30,
2022

December 31,
2021

IGIS Global Private Placement Real Estate Fund No. 316-1 (*3)

Securities investment and others

99.3

Korea

September 30

Woori G Secondary Private Placement Investment Trust No. 1 (*3)

Securities investment and others

98.2

98.1

Korea

September 30

Woori G Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (*3)

Securities investment and others

99.7

99.8

Korea

September 30

JB Airline Private Placement Investment Trust No.8 (*3)

Securities investment and others

97.0

Korea

September 30

Kiwoom Harmony Private Placement Investment Trust No. 2 (*3)

Securities investment and others

97.1

Korea

September 30

Kiwoom Harmony Private Placement Investment Trust No. 1 (*3)

Securities investment and others

97.2

96.0

Korea

September 30

Principal Guaranteed Trust (*4)

Trust

0.0

Korea

September 30

Principal and Interest Guaranteed Trust (*4)

Trust

0.0

Korea

September 30

Held by Multi Asset Global Real Estate Investment Trust No. 5-2

MAGI No.5 LuxCo S.a.r.l.

Asset securitization

54.6

Luxembourg

September 30

Held by MAGI No.5 LuxCo S.a.r.l.

ADP 16 Brussels

Asset securitization

99.9

Belgium

September 30

Held by Woori Card Co., Ltd.

TUTU Finance –WCI Myanmar Co., Ltd.

Finance

100.0

Myanmar

September 30

PT Woori Finance Indonesia Tbk.

Finance

82.0

—

Indonesia

September 30

Woori Card one of 2018-1 Securitization Specialty Co., Ltd. (*2)(*5)

Asset securitization

—

0.5

Korea

Woori Card 2019-1 Asset Securitization Specialty Co., Ltd. (*2)

Asset securitization

0.5

Korea

September 30

Woori Card 2020-1 Asset Securitization Specialty Co., Ltd. (*2)

Asset securitization

0.5

Korea

September 30

Woori Card 2021-1 Asset Securitization Specialty Co., Ltd. (*2)

Asset securitization

0.5

Korea

September 30

Woori Card 2022-1 Asset Securitization Specialty Co., Ltd. (*2)

Asset securitization

0.5

—

Korea

September 30

Woori Card 2022-2 Asset Securitization Specialty Co., Ltd. (*2)

Asset securitization

0.5

—

Korea

September 30

Held by Woori Financial Capital Co., Ltd.

ACE Auto Invest the 48th Securitization Specialty Co., Ltd. (*2)(*5)

Asset securitization

—

1.0

Korea

ACE Auto Invest the 49th Securitization Specialty Co., Ltd. (*2)

Asset securitization

1.0

Korea

September 30

Held by Woori Investment Bank Co., Ltd.

Seari First Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

October 7 (*12)

Seari Second Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

Namjong 1st Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

- 13 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

September 30,
2022

December 31,
2021

Bukgeum First Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

Bukgeum Second Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

WS1909 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

WS2003 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

WS2006 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

WJ2008 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

WH2103 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

WN2103 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

WH2106 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

Korea

September 30

One Punch Korea the 1st Co., Ltd. (*2)(*5).

Asset securitization

—

0.0

Korea

One Punch blue the 1^st Co., Ltd. (*2)(*5)

Asset securitization

—

0.0

Korea

One Punch red the 1^st Co., Ltd. (*2)

Asset securitization

0.0

Korea

September 30

Held by Woori Asset Management Corp.

Woori China Convertible Bond Hedging feeder Investment Trust H (debt-oriented hybrid) (*3)

Securities investment and others

88.1

93.6

Korea

September 30

Woori Together TDF 2025 (*3)(*5)

Securities investment and others

—

34.1

Korea

Woori Together TDF 2030 (*3)(*5)

Securities investment and others

—

32.3

Korea

Woori Together TDF 2035 (*3)

Securities investment and others

58.9

56.0

Korea

September 30

Woori Together TDF 2040 (*3)

Securities investment and others

58.8

55.7

Korea

September 30

Woori Together TDF 2045 (*3)

Securities investment and others

69.9

65.2

Korea

September 30

Woori Together TDF 2050 (*3)

Securities investment and others

67.4

63.6

Korea

September 30

Woori Star50 Feeder Fund(H) (*3)

Securities investment and others

42.5

44.8

Korea

September 30

Woori BIG2 Plus Securities Investment Trust (Balanced Bond) (*3)(*5)

Securities investment and others

—

40.8

Korea

Woori Franklin Technology Master Fund (USD) (*3)(*11)

Securities investment and others

83.4

—

Korea

September 30

Woori Franklin Technology Feeder Fund (H) (*3)

Securities investment and others

71.4

—

Korea

September 30

Woori Together OCIO Target Return Master fund (*3)(*11)

Securities investment and others

100.0

—

Korea

September 30

Woori Together OCIO Target Return Feeder fund (*3)

Securities investment and others

86.1

—

Korea

September 30

Woori High Graded Bond Target Return Fund 1 (*3)

Securities investment and others

66.7

—

Korea

September 30

Held by Woori Financial F&I Co., Ltd.

WI2203 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

—

Korea

September 30

WM2203 Asset Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

—

Korea

September 30

WNI2206 Asset Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

—

Korea

September 30

- 14 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

September 30,
2022

December 31,
2021

WI2209 Securitization Specialty Co., Ltd. (*2)

Asset securitization

5.0

—

Korea

September 30

Held by Woori Financial Capital Co., Ltd., Woori Private Equity Asset Management Co., Ltd. and Woori Investment Bank Co., Ltd. (*6)

Japanese Hotel Real Estate Private Equity Fund 1 (*3)

Securities investment and others

100.0

Korea

September 30

Held by Woori Global Asset Management Co., Ltd.

Woori G Global Multi Asset Income Private Placement Investment Trust_Class Cs (*3)

Securities investment and others

37.9

Korea

September 30

Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd., Woori Savings Bank and Woori Private Equity Asset Management Co., Ltd. (*6)

Woori Innovative Growth Professional Investment Type Private Investment Trust No.1 (*3)

Securities investment and others

90.0

Korea

September 30

Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (*6)

Woori Innovative Growth Professional Investment Type Private Investment Trust No.2 (*3)

Securities investment and others

85.0

Korea

September 30

Woori Innovative Growth New Deal Private Investment Trust No.3 (*3)

Securities investment and others

94.3

Korea

September 30

Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Investment Bank Co., Ltd. (*6)

Woori G GP Commitment Loan General Type Private Investment Trust No.1 (*3)

Securities investment and others

100.0

Korea

September 30

Woori G Equity Bridge Loan General Type Private Investment Trust No.1 (*3)

Securities investment and others

80.0

Korea

September 30

Woori G GP Commitment Loan General Type Private Investment Trust No.2 (*3)

Securities investment and others

100.0

—

Korea

September 30

Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Global Asset Management Co., Ltd. (*6)

Woori G New Deal(Infrastructure) Policy Fund No.1 (*3)

Securities investment and others

70.0

—

Korea

September 30

Held by Woori bank and Woori Investment Bank Co., Ltd. (*6)

Heungkuk Woori Tech Company Private Placement Investment Trust No. 1 (*3)(*5)

Securities investment and others

—

100.0

Korea

- 15 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

September 30,
2022

December 31,
2021

Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust No.1 (*3)

Securities investment and others

100.0

Korea

September 30

Woori G NorthAmerica Infra Private Placement Investment Trust No. 1 (*3)

Securities investment and others

100.0

Korea

September 30

Woori G Infrastructure New Deal Specialized Investment Private Equity Investment Trust No. 1 (*3)

Securities investment and others

100.0

Korea

September 30

Woori G General Type Private Real Estate Investment Trust No.2 (*3)

Securities investment and others

30.1

Korea

September 30

Woori G ESG Infrastructure Development General Type Private Investment Trust No.1 (*3)

Securities investment and others

100.0

Korea

September 30

Held by Woori bank (*6)

Woori G WooriBank Partners General Type Private Investment Trust No.1 (*3)

Securities investment and others

92.6

Korea

September 30

Woori G General Type Private Real Estate Investment Trust No.1 (*3)

Securities investment and others

80.0

Korea

September 30

Woori G Global Mid-market Secondary General Type Private Investment Trust No.1(EUR) (*3)

Securities investment and others

80.0

Korea

September 30

Woori G Woori Bank Partners Professional Type Private Investment Trust No. 2 (*3)

Securities investment and others

90.9

Korea

September 30

Woori G General Type Private Real Estate Investment Trust No.5 (*3)

Securities investment and others

87.0

Korea

September 30

Woori G Senior Loan General Type Private Investment Trust No.2 (*3)

Securities investment and others

50.0

—

Korea

September 30

Held by Woori Bank and Woori Financial Capital Co., Ltd. (*6)

Woori G Renewable New Deal Fund No.1 (*3)

Securities investment and others

60.0

—

Korea

September 30

Woori G Equity Investment General Type Private Investment Trust No.1 (*3)

Securities investment and others

100.0

—

Korea

September 30

Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*3)

Securities investment and others

100.0

—

Korea

September 30

Held by Woori Financial Capital Co., Ltd. (*6)

September 30

Woori G Japan Private Placement Real Estate Feeder Investment Trust No.1-1 (*3)

Securities investment and others

63.2

Korea

September 30

Held by Woori Bank, Woori Card Co., Woori Financial Capital Co., Ltd. and Woori Investment Bank Co., Ltd. (*6)

Woori FG Digital Investment Fund 1st (*3)

Securities investment and others

100.0

—

Korea

September 30

- 16 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

September 30,
2022

December 31,
2021

Held by Woori G Japan Private Placement Real Estate Feeder Investment Trust No.1-1 and Woori G Japan Investment Trust No. 1-2 (*6)

Woori G Japan Private Placement Real Estate Master Investment Trust No.1 (*3)

Securities investment and others

100.0

Korea

September 30

Held by Woori Financial Capital Co., Ltd. and Woori Investment Bank Co., Ltd. (*6)

Woori G Japan Private Placement Real Estate Master Investment Trust No.2-1 (*3)

Securities investment and others

100.0

Korea

September 30

Held by Woori G Japan Private Placement Real Estate Master Investment Trust No.1 and Woori G Japan Private Placement Real Estate Master Investment Trust No.2-1 (*6)

Woori G Japan Private Placement Real Estate Master Investment Trust No.2 (*3)

Securities investment and others

100.0

Korea

September 30

Held by Woori G Japan Private Placement Real Estate Master Investment Trust No.1

GK OK Chatan (*3)

Other financial services

99.9

Japan

July 31(*8)

Held by WooriG Infrastructure New Deal General Type Private Investment Trust (*6)

Woori Seoul- Chuncheon Highway Private Placement Special Asset Investment Trust No.1 (*3)

Securities investment and others

48.0

—

Korea

September 30

(*1)	Additional investment occurred during prior period.

(*2)

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

(*3)

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

(*4)

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

(*5)	Companies are excluded from the consolidation as of September 30, 2022.

(*6)	Given that the investee has been invested or operated by two or more of subsidiaries of the Group, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*7)	During March 2021, the Company acquired a 100% equity of Woori Financial Savings Bank from the Company’s subsidiary Woori Financial Capital Co., Ltd.

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

(*9)	During the previous year, WB Finance Co., a subsidiary, changed its name to Woori Bank (Cambodia) PLC.

(*10)

The Russia – Ukraine conflict has been escalated in February 2022, Russia is imposed to the international sanctions. Due to the sanctions, the lack of liquidity in the Russian foreign exchange market as well as the significant decline in value of the Rubles and the decline in value of Russian companies’ securities are in progress. As a result, the Group may experience situations such as a decrease in value of financial assets or operating assets owned by the Group regarding the conflict, an increase in receivable payment terms, limitation to transfer funds, decrease in the profit. As of September 30, 2022, the Group expects such conflict and sanctions would have financial impacts on the business of AO Woori Bank, one of the subsidiaries, in the future.

- 17 -

However, the Group cannot reasonably predict the financial impacts because it is very uncertain to estimate the impact on the Group’s financial position and business performance.

(*11)

As a master-feeder fund, it is the percentage of the feeder fund’s ownership in the master fund.

(*12)

Financial statements in liquidation as of October 7 were used due to liquidation during the current period.

(3)	The Group has not consolidated the following entities as of September 30, 2022 and December 31, 2021 despite having more than 50% ownership interest:

As of September 30, 2022

Subsidiaries

Location

Main Business

Percentage of
ownership (%)

Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)

Korea

Securities Investment

59.7

Kiwoom Yonsei Private Equity Investment Trust (*)

Korea

Securities Investment

88.9

IGIS Europe Private Placement Real Estate Fund No. 163-2 (*)

Korea

Securities Investment

97.8

IGIS Global Private Placement Real Estate Fund No. 148-1 (*)

Korea

Securities Investment

75.0

IGIS Global Private Placement Real Estate Fund No. 148-2 (*)

Korea

Securities Investment

75.0

Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*)

Korea

Securities Investment

66.7

Hangkang Sewage Treatment Plant Fund (*)

Korea

Securities Investment

55.6

Korea Investment Pocheon Hwado Expressway Professional Investment Fund (*)

Korea

Securities Investment

55.2

Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*)

Korea

Securities Investment

58.3

Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*)

Korea

Securities Investment

100.0

INMARK France Private Placement Investment Trust No. 18-1 (*)

Korea

Securities Investment

93.8

Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*)

Korea

Securities Investment

99.5

KOTAM Global Infra Private Fund 1-4 (*)

Korea

Securities Investment

99.7

UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*)

Korea

Securities Investment

51.0

Consus GyeongJuGreen Specialized Private Special Asset Investment Trust 1 (*)

Korea

Securities Investment

50.0

Kiwoom Harmony Private Placement Investment Trust No. 3 (*)

Korea

Securities Investment

77.4

Consus Solar Energy Private Placement Investment Truns No.1(*)

Korea

Securities Investment

50.0

IGIS ESG General Private Investment Trust No.1(*)

Korea

Securities Investment

60.0

Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2(*)

Korea

Securities Investment

60.0

NH-Amundi WSCP VIII Private Fund 2 (*)

Korea

Securities Investment

65.2

AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*)

Korea

Securities Investment

100.0

Hangang new deal infra BTL fund 4 (HNBF4) (*)

Korea

Securities Investment

60.0

Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*)

Korea

Securities Investment

55.0

(*)	Since the investee is a private equity investment fund, the Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

As of December 31, 2021

Subsidiaries

Location

Main Business

Percentage of
ownership (%)

Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1)

Korea

Securities Investment

59.7

Kiwoom Yonsei Private Equity Investment Trust (*1)

Korea

Securities Investment

88.9

IGIS Europe Private Placement Real Estate Fund No. 163-2 (*1) (*2)

Korea

Securities Investment

97.9

IGIS Global Private Placement Real Estate Fund No. 148-1 (*1) (*2)

Korea

Securities Investment

75.0

IGIS Global Private Placement Real Estate Fund No. 148-2 (*1) (*2)

Korea

Securities Investment

75.0

Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1) (*2)

Korea

Securities Investment

66.7

Hangkang Sewage Treatment Plant Fund (*1) (*2)

Korea

Securities Investment

55.6

Korea Investment Pocheon Hwado Expressway Professional Investment Fund (*1) (*2)

Korea

Securities Investment

55.2

Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1) (*2)

Korea

Securities Investment

58.3

Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*1) (*2)

Korea

Securities Investment

100.0

INMARK France Private Placement Investment Trust No. 18-1 (*1) (*2)

Korea

Securities Investment

93.8

Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*1) (*2)

Korea

Securities Investment

99.5

KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (*1) (*2)

Korea

Securities Investment

99.7

Hana UBS Class One Private Equity No. 3 C2 (*1)

Korea

Securities Investment

51.0

Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1) (*2)

Korea

Securities Investment

50.0

Kiwoom Harmony Private Placement Investment Trust No. 3 (*1) (*2)

Korea

Securities Investment

77.4

Consus Solar Energy Private Placement Investment Truns No.1(*1)

Korea

Securities Investment

50.0

- 18 -

(*1)	Since the investee is a private equity investment fund, the Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

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

(4)	The summarized financial information of the major subsidiaries are as follows. The financial information of each subsidiary was prepared based on their consolidated financial statements (Unit: Korean Won in millions):


	As of September 30, 2022				For the nine-month period ended September 30, 2022
Subsidiaries	Assets		Liabilities		Operating revenue		Net income (loss) attributable to owners			Comprehensive income(loss) attributable to owners
Woori Bank		465,056,362		439,614,725		40,280,392		2,373,541			2,281,137
Woori Card Co., Ltd.		16,438,040		14,007,201		1,513,640		179,150			198,569
Woori Financial Capital Co., Ltd.		12,842,279		11,320,364		975,262		167,328			167,915
Woori Investment Bank Co., Ltd.		5,411,300		4,760,661		292,680		68,278			68,236
Woori Asset Trust Co., Ltd.		301,157		78,407		102,257		55,565			55,541
Woori Savings Bank		1,713,823		1,483,628		79,512		11,378			11,378
Woori Asset Management Corp.		141,211		19,677		26,354		(96	)		26
Woori Financial F&I Co., Ltd.		275,583		75,956		4,547		(86	)		(86	)
Woori Credit Information Co., Ltd.		42,342		9,801		28,163		802			1,032
Woori Fund Service Co., Ltd.		23,747		2,222		12,297		3,039			3,039
Woori Private Equity Asset Management Co., Ltd.		93,277		3,423		4,971		1,965			1,964
Woori Global Asset Management Co., Ltd.		35,842		8,128		9,896		28			28
Woori FIS Co., Ltd.		106,205		59,524		211,485		(9,270	)		768
Woori Finance Research Institute Co., Ltd.		5,344		2,040		4,828		(297	)		(303	)


	As of December 31, 2021				For the nine-month period ended September 30, 2021
Subsidiaries	Assets		Liabilities		Operating revenue		Net income (loss) attributable to owners			Comprehensive income(loss) attributable to owners
Woori Bank		415,976,627		391,315,108		19,703,102		1,986,718			2,191,520
Woori Card Co., Ltd.		14,116,832		11,858,065		1,157,398		174,617			180,223
Woori Financial Capital Co., Ltd.		10,259,868		9,073,104		658,701		128,672			130,242
Woori Investment Bank Co., Ltd.		5,159,742		4,559,856		232,260		66,488			66,455
Woori Asset Trust Co., Ltd.		254,773		86,418		67,406		32,670			32,649
Woori Asset Management Corp.		151,651		30,144		23,480		6,456			6,509
Woori Savings Bank		1,444,508		1,222,888		57,512		13,845			13,443
Woori Credit Information Co., Ltd.		40,510		8,532		27,677		984			981
Woori Fund Service Co., Ltd.		22,168		2,582		11,431		2,532			2,532
Woori Private Equity Asset Management Co., Ltd.		42,790		4,652		3,091		2,794			2,734
Woori Global Asset Management Co., Ltd.		35,265		7,579		9,114		(151	)		(151	)
Woori FIS Co., Ltd.		105,138		59,225		192,558		(10,066	)		(10,242	)
Woori Finance Research Institute Co., Ltd.		5,864		2,257		5,115		15			4

- 19 -

(5)	The financial support that the Group provides to consolidated structured entities is as follows:

•

Structured entity for asset securitization

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

•

Structured entity for the investments in securities

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

•

Money trust under the Financial Investment Services and Capital Markets Act

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

As of September 30, 2022 and December 31, 2021, the Group provides 2,430,529 million Won and 2,480,131 million Won of credit facilities, respectively, for the structured entities mentioned above. As of September 30, 2022 and December 31, 2021, the purchase commitment amounts to 2,790,708 million Won and 2,263,387 million Won, respectively.

- 20 -

(6)

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

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

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

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

Unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds finances money required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit distributed to the investors. The Group recognizes pro rata amount of valuation gain or loss on investment and dividend income as an investor and may be exposed to losses due to reduction in investment value. Investments in MMF (Money Market Funds) as of September 30, 2022 and December 31, 2021 are 82,701 million Won and 853,140 million Won, respectively, and there are no additional commitments for MMF.

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

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

- 21 -


	September 30, 2022
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		10,506,719		82,074,758		120,676,471		1,303,450
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		5,031,322		5,357,138		4,661,277		38,423
Financial assets at FVTPL		170,430		33,433		4,027,404		10,657
Financial assets at FVTOCI		2,699,599		45,920		—		—
Financial assets at amortized cost		2,161,293		5,277,364		31,095		27,766
Investments in joint ventures and associates		—		—		592,851		—
Derivative assets		—		421		9,927		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		1,705		9,555		—		5,339
Derivative liabilities		1,021		7,451		—		—
Other liabilities(provisions)		684		2,104		—		5,339
The maximum exposure to risks		5,269,427		6,534,896		8,422,739		93,268
Investment assets		5,031,322		5,357,138		4,661,277		38,423
Purchase commitment		—		—		3,755,846		—
Credit facilities and others		238,105		1,177,758		5,616		54,845
Loss (reversal) recognized on unconsolidated structured entities		80		26,079		119,979		(1,877	)

	December 31, 2021
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		15,640,521		94,969,317		94,675,732		1,398,508
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		8,518,101		4,633,475		4,214,747		54,662
Financial assets at FVTPL		374,423		5,021		3,550,532		10,665
Financial assets at FVTOCI		3,878,882		46,478		—		—
Financial assets at amortized cost		4,264,626		4,579,367		71,662		43,997
Investments in joint ventures and associates		—		—		592,553		—
Derivative assets		170		2,609		—		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		677		1,536		—		2,964
Derivative liabilities		—		673		—		—
Other liabilities(provisions)		677		863		—		2,964
The maximum exposure to risks		8,739,034		5,748,977		7,234,303		115,212
Investment assets		8,518,101		4,633,475		4,214,747		54,662
Purchase commitment		—		20,000		3,013,231		—
Credit facilities and others		220,933		1,095,502		6,325		60,550
Loss recognized on unconsolidated structured entities		183		11,872		71,309		282

- 22 -

(7)	As of September 30, 2022 and December 31, 2021, the share of non-controlling interests on the net income and equity of subsidiaries in which non-controlling interests that are significant are as follows (Unit: Korean Won in millions):

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


	September 30, 2022		December 31, 2021
Woori Bank (*)		2,344,816		2,555,166
Woori Investment Bank Co., Ltd.		273,151		251,879
Woori Asset Trust Co., Ltd.		77,184		60,726
Woori Asset Management Corp		33,743		33,768
PT Bank Woori Saudara Indonesia 1906 Tbk		108,631		87,741
Wealth Development Bank		22,729		20,835
PT Woori Finance Indonesia Tbk.		17,529		—

(*)	Hybrid securities issued by Woori Bank

Net income attributable to non-controlling interests


	For the nine-month periods ended September 30
	2022			2021
Woori Bank (*)		77,290			100,158
Woori Financial Capital Co., Ltd.		—			17,948
Woori Investment Bank Co., Ltd.		28,507			27,709
Woori Asset Trust Co., Ltd.		16,830			9,326
Woori Asset Management Corp		(58	)		1,892
PT Bank Woori Saudara Indonesia 1906 Tbk		7,550			5,990
Wealth Development Bank		703			661
PT Woori Finance Indonesia Tbk.		95			—

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

Dividends to non-controlling interests


	For the nine-month periods ended September 30
	2022			2021
Woori Bank (*)		77,290			100,158
Woori Financial Capital Co., Ltd.		—			4,121
Woori Investment Bank Co., Ltd.		(7,219	)		3,610
Woori Asset Trust Co., Ltd		(365	)		365
PT Bank Woori Saudara Indonesia 1906 Tbk		2,330			1,262

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

- 23 -

2.	BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements. The Group’s condensed consolidated interim financial statements are condensed interim financial statements prepared in applying International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) 1034 Interim Finance Reporting for some of periods in which the annual consolidated financial statements belong. It is necessary to use the Group’s annual consolidated financial statements for the year ended December 31, 2021 for understanding of the accompanying condensed consolidated interim financial statements.

(1)	From the accounting period beginning on January 1, 2022, the Group has newly applied the following standards and interpretations.

Amendments to K-IFRS 1103 ‘Business Combination’ – Reference to the Conceptual Framework

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

Amendments to K-IFRS 1016 ‘Property, Plant and Equipment’ – Proceeds before intended use

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

Amendments to K-IFRS 1037 ‘Provisions, Contingent Liabilities and Contingent Assets’ – Onerous Contracts: Cost of Fulfilling a Contract

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

Annual Improvements to K-IFRS 2018-2020

Annual improvements of K-IFRS 2018-2020 Cycle should be applied for annual periods beginning on or after January 1, 2022, and earlier application is permitted. These amendments do not have a significant impact on the consolidated financial statements.

•

K-IFRS 1101 ‘First time Adoption of Korean International Financial Reporting Standards’ – Subsidiaries that are first-time adopters

•

K-IFRS 1109 ‘Financial Instrument’s – Fees related to the 10% test for derecognition of financial liabilities

•

K-IFRS 1041 ‘Agriculture’ – Measuring fair value

- 24 -

(2)	The details of K-IFRSs that have been issued and published since January 1, 2022 but have not yet reached the effective date are as follows:

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current

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

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Disclosure of ‘Accounting Policy’

The Group has to define and disclose material accounting policies. These amendments apply for annual periods beginning on or after January 1, 2023 and early application is permitted. The impact of the amendments on the financial statements is under review.

Amendments to K-IFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ – Definition of ‘Accounting Estimates’

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

Amendments to K-IFRS 1012 ‘Income Taxes’ – deferred tax related to assets and liabilities arising from a single transaction

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

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

(3)	Significant accounting policies and method of computation used in the preparation of the condensed consolidated interim financial statements are consistent with those of the consolidated financial statements for the year ended December 31, 2021, except for the one described below.

•

Income tax expense

Income tax expense for the interim period is recognized based on weighted average annual income tax rate expected for the expected gross annual profit. The estimated average annual tax rate is applied to the pre-tax income.

- 25 -

3.	SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

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

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

The Group judged that the credit risk of loans affected by the deferral of repayment has increased significantly and assessed the possibility of default as high. The Group will continue to evaluate the adequacy of future prospect information related to the duration of the impact of COVID-19 on the economy and government policies.

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


		September 30, 2022		December 31, 2021
Total loans (Loan receivables, payment guarantees) that are subject to loan deferment and interest deferment.	Corporate		2,207,206		2,428,496
	Retail		234,148		167,146

	Total		2,441,354		2,595,642

Total loans changed its stage from 12-month to lifetime(Stage 2) expected credit losses.	Corporate		1,949,028		2,125,492
	Retail		183,497		134,920

	Total		2,132,525		2,260,412

The expected credit loss allowances that are additionally recognized.	Corporate		259,476		275,057
	Retail		12,945		9,657

	Total		272,421		284,714

In addition, as of September 30, 2022, the Group applied the overlay when forecasting future economic conditions in consideration of the potential for insolvency due to increase in market interest rate and the increase in economic uncertainty due to the accelerated spread of COVID-19.

As of September 30, 2022 and December 31, 2021 the monetary effect of the provision for expected credit loss due to the application of the forecast of future economic conditions overlay is as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Corporate		184,134		48,583
Retail		19,619		6,237

Total		203,753		54,820

Woori Card Co., Ltd. determined that the credit risk of obligors receiving financial support due to COVID-19 significantly increased, and transferred the loss allowance at the amount equivalent to lifetime expected credit loss. As of September 30, 2022, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 6,683 million Won, and the cumulative expected credit loss allowance have increased for 176 million Won.

- 26 -

Woori Financial Capital Co., Ltd. determined that the credit risk of obligors receiving financial support due to COVID-19 significantly increased; and evaluated that the possibility of default is high. As a result, as of September 30, 2022, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 59,214 million Won and cumulative expected credit loss allowance have increased for 12,067 million Won.

Management shall make judgments, estimates and assumptions that affect the application of accounting policies and application of assets, liabilities and revenues and expenses in preparing condensed consolidated interim financial statements. Therefore, the actual results may differ from these estimates.

The significant judgements by the management on accounting policies and the main sources of estimation uncertainty for preparing condensed consolidated interim financial statements, except for the estimation method used to determine income tax expense, are identical to ones used in the Company’s annual consolidated financial statements for the year ended December 31, 2021.

- 27 -

4.	RISK MANAGEMENT

The Group’s operating activity is exposed to various financial risks and the main types of risks are credit risk, market risk, liquidity risk, etc. The risk management department analyze and assess the level of complex risks in order to manage the risks and the risk management standards such as policies, regulations, management systems and decision-making have been established and operated for sound management of the Group.

The risk management organization is operated by risk management committee, risk management responsible, and risk management department. The Board of Directors operates a risk management committee comprised of outside directors for professional risk management. The risk management committee plays a role as the top decision-making body in risk management by establishing basic policies for risk management that are in line with the Group’s management strategy and determining the risk level that the Group is willing to take. The risk management officer (CRO) assists the risk management committee and operates a group risk management council comprised of risk management managers of subsidiaries to periodically check and improve the risk burden of external environments and the Group. The risk management department is independent and is in charge of risk management of the Group. It also supports reporting and decision-making of key risk-related issues.

(1)	Credit risk

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

Credit risk management

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

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

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

Measurement of expected credit loss

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


Classification	Stage 1	Stage 2	Stage 3
Definition	No significant increase in credit risk after initial recognition (*)	Significant increase in credit risk after initial recognition	Credit- impaired

Loss allowance	12-month expected credit losses:	Lifetime expected credit losses:
Loss allowance	Expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date	Expected credit losses that result from all possible default events over the life of the financial instrument

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

- 28 -

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

At the end of each reporting period, the Group assesses whether credit risk reflecting forward-looking information has been increased significantly since the date of initial recognition. The Group uses credit rating, asset quality, early warning system, number of overdue days, etc. to determine whether the credit risk has been increased significantly. The same criteria are used when assessing significant increase in credit risk for financial assets with a change in contractual cash flows.

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


Corporate Exposures		Retail Exposures
Asset quality level ‘Precautionary’ or lower		Asset quality level ‘Precautionary’ or lower

More than or equal to 30 days past due		More than or equal to 30 days past due

‘Warning’ level in early warning system		Significant decrease in credit rating(*)

Debtor experiencing financial difficulties (Capital impairment, Adverse opinion or Disclaimer of opinion by external auditors)		Deferment of repayment of principal and interest

Significant decrease in credit rating (*)		Deferment of interest

Deferment of repayment of principal and interest

Deferment of interest

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


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

Retail	1 ~ 3	More than or equal to 3 steps
	4 ~ 5	More than or equal to 2 steps
	6 ~ 10	More than or equal to 1 step

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

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

•

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

•

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

•

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

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

Probability of default (PD) and Loss given default (LGD) for each category of financial asset is being calculated by considering factors such as debtor type, credit rating and portfolio. The estimates are regularly being reviewed in order to reduce discrepancies with actual losses.

- 29 -

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

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

•

Development of estimation models by analyzing the correlation between default rates of corporate and retail exposures per year and macroeconomic indicators


Major macroeconomic indicators		Correlation between credit risk and macroeconomic indicators
GDP growth rate		Negative(-) Correlation
Personal consumption expenditures increase/decrease rate		Negative(-) Correlation
Consumer price index change rate		Negative(-) Correlation

•

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

•

Disclosure of economic variable forecasts

Probability weight

As of September 30, 2022, the probability weights applied to the scenarios of the forecasts of macroeconomic variables is as follows (Unit: %):


	Basic Scenario		Upside Scenario		Downside Scenario
Probability weight		55.59		13.37		31.04

Economic forecast of each major economic variables by scenario (forecast period: 2022)

As of September 30, 2022, the forecasts of major macroeconomic variables by scenario is as

follows (Unit: %)


	Basic Scenario		Upside Scenario		Downside Scenario
GDP growth rate		3.00		3.22		2.60
Personal consumption expenditures increase/decrease rate		3.60		4.01		2.85
Consumer price index change rate		2.00		2.10		1.82

The results of Woori Bank’s sensitivity analysis on expected credit loss provisions due to changes in macroeconomic indicators as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


			September 30, 2022			December 31, 2021
Corporate	GDP growth rate	Increase by 1% point		(58,243	)		(68,140	)
	GDP growth rate	Decrease by 1% point		63,659			74,495
	Personal consumption expenditures increase/decrease rate	Increase by 1% point		(34,775	)		(40,654	)
	Personal consumption expenditures increase/decrease rate	Decrease by 1% point		36,770			43,028
Retail	GDP growth rate	Increase by 1% point		(7,079	)		(8,798	)
	GDP growth rate	Decrease by 1% point		7,378			9,163
	Consumer price index change rate	Increase by 1% point		(23,720	)		(29,469	)
	Consumer price index change rate	Decrease by 1% point		27,674			34,352

- 30 -

•

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

- 31 -

Maximum exposure

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

The maximum exposure to credit risk as of September 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


		September 30, 2022		December 31, 2021
Loans and other financial assets at amortized cost (*1)	Korean treasury and government agencies		23,766,682		14,934,813
	Banks		29,222,103		24,733,020
	Corporates		150,151,011		131,027,256
	Consumers		190,164,741		191,237,783

	Sub-total		393,304,537		361,932,872

Financial assets at FVTPL (*2)	Deposit		38,356		65,072
	Debt securities		3,917,106		2,743,239
	Loans		850,529		667,467
	Derivative assets		20,354,284		4,803,131
	Others		1,499		1,518

	Sub-total		25,161,774		8,280,427

Financial assets at FVTOCI	Debt securities		33,694,537		38,126,977
	Loans		52,192		—

	Sub-total		33,746,729		38,126,977

Securities at amortized cost	Debt securities		25,137,354		17,086,274
Derivative assets	Derivative assets (Designated for hedging)		131,025		106,764
Off-balance accounts	Guarantees (*3)		13,917,069		12,987,809
	Loan commitments		120,893,557		114,414,462

	Sub-total		134,810,626		127,402,271

	Total		612,292,045		552,935,585

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

(*2)	Puttable financial instruments are not included.

(*3)	As of September 30, 2022 and December 31, 2021, the financial guarantee amounts of 4,090,433 million Won and 3,960,383 million Won are included, respectively.

- 32 -

a) Credit risk exposure by geographical areas

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


	September 30, 2022
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		363,447,557		6,206,460		5,474,803		204,258		891,037		17,080,422		393,304,537
Securities at amortized cost		23,928,792		382,596		484,198		17,362		—		324,406		25,137,354
Financial assets at FVTPL		16,674,539		5,584		4,343,710		734,300		450,948		2,952,693		25,161,774
Financial assets at FVTOCI		28,633,848		911,597		2,679,222		1,880		45,816		1,474,366		33,746,729
Derivative assets (Designated for hedging)		131,025		—		—		—		—		—		131,025
Off-balance accounts		130,732,494		1,131,682		424,584		29,808		20,191		2,471,867		134,810,626

Total		563,548,255		8,637,919		13,406,517		987,608		1,407,992		24,303,754		612,292,045

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


	December 31, 2021
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		338,674,446		5,620,622		3,742,331		212,821		811,030		12,871,622		361,932,872
Securities at amortized cost		16,785,265		92,880		27,018		—		—		181,111		17,086,274
Financial assets at FVTPL		6,150,464		1,330		1,188,358		195,048		61,315		683,912		8,280,427
Financial assets at FVTOCI		34,242,133		808,359		1,713,435		1,755		23,193		1,338,102		38,126,977
Derivative assets (Designated for hedging)		11,678		—		95,086		—		—		—		106,764
Off-balance accounts		123,375,839		1,001,430		375,929		31,116		32,402		2,585,555		127,402,271

Total		519,239,825		7,524,621		7,142,157		440,740		927,940		17,660,302		552,935,585

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

Credit risk exposure by industries

①

The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of September 30, 2022 and December 31, 2021 (Unit: Korean Won in millions):


	September 30, 2022
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		79,072,870		42,824,035		60,459,679		5,508,410		185,427,947		20,011,596		393,304,537
Securities at amortized cost		369,084		—		12,825,777		220,055		—		11,722,438		25,137,354
Financial assets at FVTPL		444,839		567,939		21,157,181		34,963		—		2,956,852		25,161,774
Financial assets at FVTOCI		466,977		264,657		23,229,194		83,391		—		9,702,510		33,746,729
Derivative assets (Designated for hedging)		—		—		131,025		—		—		—		131,025
Off-balance accounts		20,383,821		23,332,699		12,230,558		3,869,132		68,877,260		6,117,156		134,810,626

Total		100,737,591		66,989,330		130,033,414		9,715,951		254,305,207		50,510,552		612,292,045


	December 31, 2021
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		67,895,018		37,679,784		45,540,602		4,303,491		185,972,844		20,541,133		361,932,872
Securities at amortized cost		479,291		—		7,061,770		250,607		—		9,294,606		17,086,274
Financial assets at FVTPL		115,346		146,277		6,646,922		13,623		1,836		1,356,423		8,280,427
Financial assets at FVTOCI		376,998		258,866		29,444,989		131,967		—		7,914,157		38,126,977
Derivative assets (Designated for hedging)		—		—		79,369		27,395		—		—		106,764
Off-balance accounts		18,565,570		18,994,662		11,763,667		3,900,766		67,966,826		6,210,780		127,402,271

Total		87,432,223		57,079,589		100,537,319		8,627,849		253,941,506		45,317,099		552,935,585

- 33 -

②

The detailed industries of financial assets and corporate loans that might get affected by the spread of COVID-19 as of September 30, 2022 and December 31, 2021 are as follows and the industries that can be affected may change by future economic conditions (Unit: Korean Won in millions):

< Woori Bank >


			September 30, 2022
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		1,234,485		1		7,161
		General wholesale business		1,867,113		2,662		—
		Sub-total		3,101,598		2,663		7,161
	Accommodation business			1,454,382		—		27,365
	Travel business			47,573		—		—
	Art/sports, leisure service			1,783,617		408		—
	Food business			1,499,099		151		—
	Transportation business			440,465		—		—
	Education business			423,485		—		—
	Others			1,547,428		197		—
	Sub-total			10,297,647		3,419		34,526
Manufacturing	Textile			2,684,529		1,450		10,103
	Metal			1,770,957		3,553		—
	Non-metal			797,521		96		8,615
	Chemical			4,231,460		177		—
	Electronics			1,050,411		1,278		—
	Others			3,813,431		7,651		12,975
	Sub-total			14,348,309		14,205		31,693

	Total			24,645,956		17,624		66,219


			September 30, 2022
			Off-balance accounts		Total
Service business	Distribution business	General retail business		773,350		2,014,997
		General wholesale business		545,268		2,415,043
		Sub-total		1,318,618		4,430,040
	Accommodation business			188,307		1,670,054
	Travel business			14,828		62,401
	Art/sports, leisure service			116,128		1,900,153
	Food business			197,881		1,697,131
	Transportation business			248,768		689,233
	Education business			45,865		469,350
	Others			340,681		1,888,306
	Sub-total			2,471,076		12,806,668
Manufacturing	Textile			1,056,270		3,752,352
	Metal			1,504,518		3,279,028
	Non-metal			447,290		1,253,522
	Chemical			4,535,459		8,767,096
	Electronics			2,000,466		3,052,155
	Others			2,607,955		6,442,012
	Sub-total			12,151,958		26,546,165

	Total			14,623,034		39,352,833

- 34 -


			December 31, 2021
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		754,850		274		—
		General wholesale business		809,893		221		—

		Sub-total		1,564,743		495		—

	Accommodation business			1,441,185		625		23,840
	Travel business			53,302		—		—
	Art/sports, leisure service			600,746		503		—
	Food business			1,279,128		216		—
	Transportation business			404,120		77		—
	Others			1,050,229		599		—

	Sub-total			6,393,453		2,515		23,840

Manufacturing	Textile			2,626,493		724		10,718
	Metal			199,877		10		—
	Non-metal			148,471		24		—
	Chemical			904,563		1,994		—
	Electronics			103,510		31		—
	Others			191,865		—		—

	Sub-total			4,174,779		2,783		10,718

	Total			10,568,232		5,298		34,558


			December 31, 2021
			Off-balance accounts		Total
Service business	Distribution business	General retail business		299,064		1,054,188
		General wholesale business		237,678		1,047,792

		Sub-total		536,742		2,101,980

	Accommodation business			181,563		1,647,213
	Travel business			12,455		65,757
	Art/sports, leisure service			63,660		664,909
	Food business			179,799		1,459,143
	Transportation business			167,883		572,080
	Others			191,837		1,242,665

	Sub-total			1,333,939		7,753,747

Manufacturing	Textile			1,012,989		3,650,924
	Metal			9,704		209,591
	Non-metal			48,171		196,666
	Chemical			689,895		1,596,452
	Electronics			33,389		136,930
	Others			87,587		279,452

	Sub-total			1,881,735		6,070,015

	Total			3,215,674		13,823,762

- 35 -

< Woori Card Co., Ltd. >


	September 30, 2022
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		5,542		—		—		15,105		20,647
Travel business		7,644		—		—		16,527		24,171
Aviation		1,654		—		—		3,262		4,916
Cosmetics industry		12,118		—		—		10,089		22,207
Distribution business		29,790		—		—		46,711		76,501
Food industry		135,523		—		—		112,416		247,939
Art/sports, leisure service		26,440		—		—		44,275		70,715

Total		218,711		—		—		248,385		467,096


	December 31, 2021
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		2,341		—		—		11,472		13,813
Travel business		3,334		—		—		20,056		23,390
Aviation		983		—		—		4,025		5,008
Cosmetics industry		3,187		—		—		10,692		13,879
Distribution business		7,582		—		—		38,741		46,323
Food industry		30,267		—		—		122,793		153,060
Art/sports, leisure service		8,336		—		—		44,286		52,622

Total		56,030		—		—		252,065		308,095

- 36 -


			September 30, 2022
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		225,276		—		—
		General wholesale business		847,467		—		—
		Sub-total		1,072,743		—		—
	Accommodation business			21,237		—		—
	Travel business			165		—		—
	Art/sports, leisure service			24,726		—		—
	Food business			361,973		—		—
	Transportation business			1,733,451		—		—
	Education business			64,010		—		—
	Others			297,467		—		—
	Sub-total			3,575,772		—		—
Manufacturing	Textile			2,127		—		—
	Metal			8,259		—		—
	Non-metal			2,041		—		—
	Chemical			504		—		—
	Transportation			1,281		—		—
	Electronics			11,679		—		—
	Cosmetics			2,003		—		—
	Others			317,466		—		—
	Sub-total			345,360		—		—
Total COVID-19 vulnerable business				3,921,132		—		—
Other business	Others			5,658,299		21,468		—

	Total			9,579,431		21,468		—


			September 30, 2022
			Off-balance accounts		Total
Service business	Distribution business	General retail business		—		225,276
		General wholesale business		—		847,467
		Sub-total		—		1,072,743
	Accommodation business			—		21,237
	Travel business			—		165
	Art/sports, leisure service			—		24,726
	Food business			—		361,973
	Transportation business			—		1,733,451
	Education business			—		64,010
	Others			277,446		574,913
	Sub-total			277,446		3,853,218
Manufacturing	Textile			—		2,127
	Metal			—		8,259
	Non-metal			—		2,041
	Chemical			—		504
	Transportation			—		1,281
	Electronics			—		11,679
	Cosmetics			—		2,003
	Others			26,797		344,263
	Sub-total			26,797		372,157
Total COVID-19 vulnerable business				304,243		4,225,375
Other business	Others			470,059		6,149,826

	Total			774,302		10,375,201

- 37 -


			December 31, 2021
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		77,841		—		—
		General wholesale business		292,832		—		—

		Sub-total		370,673		—		—

	Accommodation business			7,338		—		—
	Travel business			57		—		—
	Art/sports, leisure service			8,544		—		—
	Food business			125,075		—		—
	Transportation business			598,972		—		—
	Education business			22,118		—		—
	Others			102,787		—		—

	Sub-total			1,235,564		—		—

Manufacturing	Textile			727		—		—
	Metal			2,824		—		—
	Non-metal			698		—		—
	Chemical			172		—		—
	Transportation			438		—		—
	Electronics			3,993		—		—
	Cosmetics			685		—		—
	Others			108,540		—		—

	Sub-total			118,077		—		—

Total COVID-19 vulnerable business				1,353,641		—		—
Other business	Others			6,489,394		28,222		—

	Total			7,843,035		28,222		—


			December 31, 2021
			Off-balance accounts		Total
Service business	Distribution business	General retail business		—		77,841
		General wholesale business		—		292,832

		Sub-total		—		370,673

	Accommodation business			—		7,338
	Travel business			—		57
	Art/sports, leisure service			—		8,544
	Food business			—		125,075
	Transportation business			—		598,972
	Education business			—		22,118
	Others			140,549		243,336

	Sub-total			140,549		1,376,113

Manufacturing	Textile			—		727
	Metal			—		2,824
	Non-metal			—		698
	Chemical			—		172
	Transportation			—		438
	Electronics			—		3,993
	Cosmetics			—		685
	Others			13,432		121,972

	Sub-total			13,432		131,509

Total COVID-19 vulnerable business				153,981		1,507,622
Other business	Others			812,597		7,330,213

	Total			966,578		8,837,835

- 38 -

< Woori Investment Bank Co., Ltd. >


	September 30, 2022
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		50,345		9,956		—		—		60,301
Distribution business		6,123		109,330		—		—		115,453
Food business		—		—		—		—		—
Art/sports, leisure service		59,153		—		—		—		59,153

Total		115,621		119,286		—		—		234,907


	December 31, 2021
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		57,142		—		—		—		57,142
Distribution business		12,885		—		—		—		12,885
Art/sports, leisure service		31,772		—		—		—		31,772

Total		101,799		—		—		—		101,799

- 39 -

Credit risk exposure

Financial assets

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL and derivative asset (Designated for hedging) as of September 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


	September 30, 2022
	Stage 1				Stage 2				Stage 3		Credit impairment model		Total		Loss allowance			Total, net
	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Stage 3		Credit impairment model		Total		Loss allowance			Total, net
Loans and other financial assets at amortized cost		343,936,719		24,895,913		13,504,335		11,814,453		1,290,177		242,331		395,683,928		(2,379,391	)		393,304,537
Korean treasury and government agencies		23,772,712		10		—		—		—		—		23,772,722		(6,040	)		23,766,682
Banks		28,341,468		625,330		5,236		—		25,511		242,331		29,239,876		(17,773	)		29,222,103
Corporates		125,596,378		17,687,748		2,688,256		5,063,961		566,873		—		151,603,216		(1,452,205	)		150,151,011
General business		80,723,707		10,059,671		1,891,860		3,579,594		403,509		—		96,658,341		(1,042,438	)		95,615,903
Small- and medium-sized enterprise		36,277,589		6,893,410		763,775		1,414,133		156,672		—		45,505,579		(341,820	)		45,163,759
Project financing and others		8,595,082		734,667		32,621		70,234		6,692		—		9,439,296		(67,947	)		9,371,349
Consumers		166,226,161		6,582,825		10,810,843		6,750,492		697,793		—		191,068,114		(903,373	)		190,164,741
Securities at amortized cost		25,145,162		—		—		—		—		—		25,145,162		(7,808	)		25,137,354
Financial assets at FVTOCI (*3)		33,423,945		322,784		—		—		—		—		33,746,729		(13,415	)		33,746,729

Total		402,505,826		25,218,697		13,504,335		11,814,453		1,290,177		242,331		454,575,819		(2,400,614	)		452,188,620


	September 30, 2022
	Collateral value
	Stage1		Stage2		Stage3		Credit impairment model		Total
Loans and other financial assets at amortized cost		213,745,812		19,493,078		467,693		246,183		233,952,766
Korean treasury and government agencies		20,491		—		—		—		20,491
Banks		1,919,520		—		—		237,439		2,156,959
Corporates		82,211,072		5,305,303		222,224		8,744		87,747,343
General business		44,401,541		3,680,109		160,765		—		48,242,415
Small- and medium-sized enterprise		32,979,356		1,625,194		61,459		6,911		34,672,920
Project financing and others		4,830,175		—		—		1,833		4,832,008
Consumers		129,594,729		14,187,775		245,469		—		144,027,973
Securities at amortized cost		—		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—		—

Total		213,745,812		19,493,078		467,693		246,183		233,952,766

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

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

(*3)	Financial assets at FVTOCI has been disclosed as the amount before deducting allowance for credit losses because allowance for credit losses does not reduce the carrying amount.

- 40 -


	December 31, 2021
	Stage 1				Stage 2				Stage 3		Total		Loss allowance			Total, net
	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Stage 3		Total		Loss allowance			Total, net
Loans and other financial assets at amortized cost		316,364,525		22,734,430		13,270,491		10,190,307		1,332,644		363,892,397		(1,959,525	)		361,932,872
Korean treasury and government agencies		14,938,718		9		9		—		—		14,938,736		(3,923	)		14,934,813
Banks		24,186,246		492,447		46,373		—		23,509		24,748,575		(15,555	)		24,733,020
Corporates		108,917,062		15,952,017		2,698,907		3,963,782		658,923		132,190,691		(1,163,435	)		131,027,256
General business		68,767,641		9,010,115		1,886,740		2,597,136		438,537		82,700,169		(785,908	)		81,914,261
Small- and medium-sized enterprise		33,306,787		6,459,338		790,750		1,353,313		156,440		42,066,628		(322,635	)		41,743,993
Project financing and others		6,842,634		482,564		21,417		13,333		63,946		7,423,894		(54,892	)		7,369,002
Consumers		168,322,499		6,289,957		10,525,202		6,226,525		650,212		192,014,395		(776,612	)		191,237,783
Securities at amortized cost		17,091,509		—		—		—		—		17,091,509		(5,235	)		17,086,274
Financial assets at FVTOCI (*3)		37,917,922		209,055		—		—		—		38,126,977		(12,146	)		38,126,977

Total		371,373,956		22,943,485		13,270,491		10,190,307		1,332,644		419,110,883		(1,976,906	)		417,146,123


	December 31, 2021
	Collateral value
	Stage1		Stage2		Stage3		Total
Loans and other financial assets at amortized cost		208,188,057		18,098,940		643,183		226,930,180
Korean treasury and government agencies		20,679		—		—		20,679
Banks		1,287,055		—		—		1,287,055
Corporates		74,403,502		4,796,510		351,837		79,551,849
General business		40,288,663		3,120,790		220,792		43,630,245
Small- and medium-sized enterprise		30,852,567		1,675,720		80,830		32,609,117
Project financing and others		3,262,272		—		50,215		3,312,487
Consumers		132,476,821		13,302,430		291,346		146,070,597
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		208,188,057		18,098,940		643,183		226,930,180

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

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

(*3)	Financial assets at FVTOCI has been disclosed as the amount before deducting allowance for credit losses because allowance for credit losses does not reduce the carrying amount.

- 41 -

Guarantees and commitments

The credit quality of the guarantees and loan commitments as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022
Financial assets	Stage 1				Stage 2				Stage3		Total
Financial assets	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Stage3		Total
Off-balance accounts
Guarantees		12,654,419		972,782		27,685		248,471		13,712		13,917,069
Loan Commitments		115,461,198		2,789,817		1,789,132		853,163		247		120,893,557

Total		128,115,617		3,762,599		1,816,817		1,101,634		13,959		134,810,626

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

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


	December 31, 2021
Financial assets	Stage 1				Stage 2				Stage3		Total
Financial assets	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Stage3		Total
Off-balance accounts
Guarantees		11,560,908		1,037,142		47,549		275,166		67,044		12,987,809
Loan Commitments		107,916,434		3,591,413		2,072,348		832,173		2,094		114,414,462

Total		119,477,342		4,628,555		2,119,897		1,107,339		69,138		127,402,271

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

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

Collateral and other credit enhancements

For the nine-month period ended September 30, 2022 and for the year ended December 31, 2021, there have been no significant changes in the value of collateral or other credit enhancements held by the Group and there have been no significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Group.

- 42 -

(2)

Market risk

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

Market risk management

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

Trading activities

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

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

The minimum, maximum and average VaR of the Bank for the nine-month period September 30, 2022 and for the year ended December 31, 2021, and the VaR of the Bank as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022			For the nine-month period ended September 30, 2022									December 31, 2021			For the year ended December 31, 2021
Risk factor	September 30, 2022			Average			Maximum			Minimum			December 31, 2021			Average			Maximum			Minimum
Interest rate		11,624			7,994			11,624			4,298			4,177			4,681			14,017			2,405
Stock price		8,414			6,376			12,448			1,806			2,972			3,637			6,676			1,609
Foreign currencies		18,520			12,256			18,520			5,421			5,904			6,745			13,144			4,747
Diversification		(12,937	)		(11,535	)		(16,414	)		(4,201	)		(6,072	)		(7,300	)		(20,007	)		(3,628	)

Total VaR(*)		25,621			15,091			26,178			7,324			6,981			7,763			13,830			5,133

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

- 43 -

Non-trading activities

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

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

ΔEVE and ΔNII calculated on interest risk in banking book(IRRBB) basis for assets and liabilities by subsidiary as of the end of September 30, 2022 and December 31, 2021 are as follows(Unit: Korean Won in millions):


	September 30, 2022				December 31, 2021
	ΔEVE (*1)		ΔNII (*2)		ΔEVE (*1)		ΔNII (*2)
Woori Bank		392,832		385,708		920,290		195,186
Woori Card Co., Ltd.		147,229		173,032		126,576		59,114
Woori Financial Capital Co., Ltd.		77,741		7,893		58,794		1,384
Woori Investment Bank Co., Ltd.		26,311		8,229		17,607		5,556
Woori Asset Trust Co., Ltd.		1,118		5,851		820		1,709
Woori Asset Management Corp.		1,135		1,307		1,411		504
Woori Savings Bank		7,210		3,983		15,175		949
Woori Private Equity Asset Management Co., Ltd.		486		863		32		59
Woori Global Asset Management Co., Ltd.		478		515		246		143

(*1)	ΔEVE: change in Economic Value of Equity

(*2)	ΔNII: change in Net Interest Income

- 44 -

The Group estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost		226,368,711		57,658,915		16,131,237		14,499,485		61,851,735		4,152,059		380,662,142
Financial assets at FVTPL		1,075,325		111,987		22,161		2,919		35,935		13,171		1,261,498
Financial assets at FVTOCI		5,968,162		3,550,729		3,164,887		3,348,136		17,822,205		667,095		34,521,214
Securities at amortized cost		1,524,216		1,522,309		400,854		875,120		20,419,606		2,127,363		26,869,468

Total		234,936,414		62,843,940		19,719,139		18,725,660		100,129,481		6,959,688		443,314,322

Liability:
Deposits due to customers		149,803,344		56,646,566		36,260,130		29,172,675		61,859,158		72,706		333,814,579
Borrowings		17,744,203		4,552,311		2,218,894		1,465,777		7,476,972		476,049		33,934,206
Debentures		11,316,776		4,940,875		4,831,824		4,373,759		21,844,043		3,711,997		51,019,274

Total		178,864,323		66,139,752		43,310,848		35,012,211		91,180,173		4,260,752		418,768,059


	December 31, 2021
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost		205,915,030		58,661,091		14,461,769		12,840,318		62,337,321		5,204,605		359,420,134
Financial assets at FVTPL		1,725,063		52,361		49,843		17,817		223,107		13,501		2,081,692
Financial assets at FVTOCI		5,489,649		4,741,319		3,915,011		4,139,102		19,962,071		634,111		38,881,263
Securities at amortized cost		1,297,865		847,134		813,405		949,475		11,990,559		2,116,986		18,015,424

Total		214,427,607		64,301,905		19,240,028		17,946,712		94,513,058		7,969,203		418,398,513

Liability:
Deposits due to customers		145,744,829		47,792,440		33,334,918		28,615,157		62,635,705		59,155		318,182,204
Borrowings		11,422,868		4,168,941		1,788,597		1,540,533		5,119,291		428,660		24,468,890
Debentures		8,325,421		3,035,764		3,203,743		3,174,902		25,036,943		3,342,284		46,119,057

Total		165,493,118		54,997,145		38,327,258		33,330,592		92,791,939		3,830,099		388,770,151

- 45 -

Currency risk

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

Financial instruments in foreign currencies exposed to currency risk as of September 30, 2022 and December 31, 2021 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):


		September 30, 2022
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Cash and cash equivalents		2,107		3,022,506		15,897		157,895		2,809		560,812		90		127,211		840,509		4,708,933
	Loans and other financial assets at amortized cost		34,274		49,176,959		158,192		1,570,914		25,177		5,026,805		2,954		4,161,990		6,313,792		66,250,460
	Financial assets at FVTPL		961		1,379,235		22,340		221,893		—		—		411		578,944		232,879		2,412,951
	Financial assets at FVTOCI		3,469		4,977,976		—		—		4,072		813,060		2		2,631		878,164		6,671,831
	Securities at amortized cost		581		834,027		—		—		1,917		382,713		68		95,968		221,351		1,534,059

	Total		41,392		59,390,703		196,429		1,950,702		33,975		6,783,390		3,525		4,966,744		8,486,695		81,578,234

Liability	Financial liabilities at FVTPL		563		808,375		30,469		302,629		—		—		464		653,141		566,446		2,330,591
	Deposits due to customers		21,021		30,161,486		223,695		2,221,849		27,709		5,532,389		1,780		2,508,246		5,862,986		46,286,956
	Borrowings		7,999		11,477,169		39,125		389,103		1,947		388,733		454		639,995		2,506,543		15,401,543
	Debentures		4,139		5,939,027		—		—		—		—		195		274,412		367,329		6,580,768
	Other financial liabilities		5,849		8,391,983		13,324		132,342		3,870		772,681		312		439,729		390,348		10,127,083

	Total		39,571		56,778,040		306,613		3,045,923		33,526		6,693,803		3,205		4,515,523		9,693,652		80,726,941

Off-balance accounts			6,890		9,885,351		44,209		439,101		2,129		425,066		549		773,052		1,217,971		12,740,541

- 46 -


		December 31, 2021
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Cash and cash equivalents		3,176		3,765,460		15,834		163,131		1,236		230,188		94		125,513		826,870		5,111,162
	Loans and other financial assets at amortized cost		28,771		34,108,109		164,976		1,679,982		23,733		4,420,551		2,329		3,126,363		5,749,685		49,084,690
	Financial assets at FVTPL		468		556,296		14,618		150,596		—		—		327		438,662		71,369		1,216,923
	Financial assets at FVTOCI		3,195		3,787,466		—		—		3,899		726,310		33		44,638		741,348		5,299,762
	Securities at amortized cost		240		283,935		—		—		499		92,917		29		39,142		138,422		554,416

	Total		35,850		42,501,266		195,428		1,993,709		29,367		5,469,966		2,812		3,774,318		7,527,694		61,266,953

Liability	Financial liabilities at FVTPL		274		324,420		16,384		168,798		—		—		239		321,354		203,523		1,018,095
	Deposits due to customers		19,803		23,476,384		219,514		2,261,520		26,342		4,906,441		1,640		2,201,233		4,798,322		37,643,900
	Borrowings		5,766		6,835,191		31,601		325,745		—		—		349		469,124		1,395,597		9,025,657
	Debentures		3,566		4,228,055		—		—		—		—		—		—		341,621		4,569,676
	Other financial liabilities		2,739		3,247,454		10,673		109,958		2,658		495,125		335		449,897		211,392		4,513,826

	Total		32,148		38,111,504		278,172		2,866,021		29,000		5,401,566		2,563		3,441,608		6,950,455		56,771,154

Off-balance accounts			8,047		9,540,185		32,777		337,685		2,533		471,852		598		803,357		1,250,186		12,403,265

- 47 -

Interest Rate Benchmark Reform Risk Management

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

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

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

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


		USD(*1)
		Total Amount(*2)		Interest Rate Provision
Non-derivative financial assets	Financial assets at FVTOCI		765,422		508,356
Non-derivative financial assets	Financial assets at amortized cost		5,736,198		4,015,979

	Total		6,501,620		4,524,335

Non-derivative financial liabilities
Non-derivative financial liabilities	Financial liabilities at amortized cost		796,314		796,314

Derivatives
	Interest rate(trading)		29,684,068		29,684,067
	Currency(trading)		38,354,675		37,813,375
	Interest rate(hedging)		2,654,380		2,654,380

	Total		70,693,123		70,151,822

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

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

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

- 48 -

(3)	Liquidity risk

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

Liquidity risk management

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

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

Maturity analysis of non-derivative financial liabilities

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		47,747		—		19,433		30,639		—		—		97,819
Deposits due to customers		225,014,257		41,853,577		24,069,866		33,016,492		10,883,835		1,544,122		336,382,149
Borrowings		12,111,571		4,961,225		4,924,296		3,222,592		8,385,680		476,049		34,081,413
Debentures		5,908,293		6,430,474		6,784,660		4,951,096		23,421,082		3,711,997		51,207,602
Lease liabilities		40,575		42,398		36,751		28,388		146,024		38,601		332,737
Other financial liabilities		25,375,574		224,652		21,335		22,357		821,719		1,328,922		27,794,559

Total		268,498,017		53,512,326		35,856,341		41,271,564		43,658,340		7,099,691		449,896,279


	December 31, 2021
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		100,976		10,397		91,785		107,230		—		—		310,388
Deposits due to customers		224,881,863		32,559,199		20,290,566		31,768,748		9,213,279		1,615,198		320,328,853
Borrowings		9,477,536		4,366,223		2,415,548		2,494,732		5,800,815		440,506		24,995,360
Debentures		3,068,600		4,201,926		5,316,672		5,371,869		24,982,746		3,342,284		46,284,097
Lease liabilities		41,731		53,245		30,148		25,494		156,228		38,275		345,121
Other financial liabilities		17,614,313		228,388		12,190		11,894		610,514		1,999,198		20,476,497

Total		255,185,019		41,419,378		28,156,909		39,779,967		40,763,582		7,435,461		412,740,316

- 49 -

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		47,747		—		19,433		30,639		—		—		97,819
Deposits due to customers		233,589,143		43,576,239		23,596,983		26,250,128		8,735,782		52,006		335,800,281
Borrowings		12,111,560		4,961,234		4,924,286		3,222,604		8,385,680		476,049		34,081,413
Debentures		5,908,293		6,430,474		6,784,660		4,951,096		23,421,082		3,711,997		51,207,602
Lease liabilities		40,575		42,622		36,952		28,784		152,186		41,066		342,185
Other financial liabilities		25,375,548		224,652		21,335		22,357		821,719		1,328,922		27,794,533

Total		277,072,866		55,235,221		35,383,649		34,505,608		41,516,449		5,610,040		449,323,833


	December 31, 2021
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		100,976		10,397		91,785		107,230		—		—		310,388
Deposits due to customers		230,823,884		33,705,990		20,107,790		27,331,774		7,871,688		89,643		319,930,769
Borrowings		9,477,536		4,366,223		2,415,548		2,494,732		5,800,815		440,506		24,995,360
Debentures		3,068,600		4,201,926		5,316,672		5,371,869		24,982,746		3,342,284		46,284,097
Lease liabilities		41,716		53,260		30,216		25,653		162,092		41,814		354,751
Other financial liabilities		17,614,313		228,388		12,190		11,894		610,514		1,999,198		20,476,497

Total		261,127,025		42,566,184		27,974,201		35,343,152		39,427,855		5,913,445		412,351,862

Maturity analysis of derivative financial liabilities

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

The cash flow by the maturity of derivative financial liabilities as of September 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


		Remaining maturity
		Within 3 months			4 to 6 months			7 to 9 months			10 to 12 months			1 to 5 years			Over 5 years			Total
September 30, 2022	Cash flow risk hedge		1,681			329			—			—			75,103			6,988			84,101
	Fair value risk hedge		776			26,562			16,707			31,774			146,278			2,218			224,315
	Trading purpose		21,332,533			583			—			—			—			—			21,333,116
December 31, 2021	Cash flow risk hedge		246			(206	)		(502	)		(717	)		(2,744	)		(4,053	)		(7,976	)
	Fair value risk hedge		(1,656	)		598			(940	)		1,392			21,552			—			20,946
	Trading purpose		4,566,443			—			—			—			—			—			4,566,443

- 50 -

Maturity analysis of off-balance accounts (Guarantees loan commitments and others)

A financial guarantee represents an irrevocable undertaking that the Group should meet a customer’s obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Group has promised a credit to the customer. Commitments to lend include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for financial guarantees, such as guarantees for debentures issued or loans, unused loan commitments, and other guarantees, however, under the terms of the guarantees and unused loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Guarantees		13,917,069		12,987,809
Loan commitments		120,893,557		114,414,462
Other commitments		4,195,157		3,427,331

(4)	Operational risk

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

Operational risk management

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

Operational risk measurement

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

- 51 -

5.	OPERATING SEGMENTS

In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker (“CODM”) utilizes the information per type of customers. This financial information of the segments is regularly reviewed by the CODM to make decisions about resources to be allocated to each segment and evaluate its performance.

(1)	Segment by type of organization

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


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

- 52 -

(2) The details of income(expense) by each segment are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Adjustments (*3)			Total
Net interest income		4,799,001			502,403			282,892			87,079			48,411			5,719,786			627,862			6,347,648
Non-interest income(expense)		1,128,939			92,554			65,830			55,748			1,611,972			2,955,043			(2,041,167	)		913,876
Impairment losses due to credit loss		(338,109	)		(164,783	)		(46,311	)		(8,316	)		(19,142	)		(576,661	)		(45,373	)		(622,034	)
General and administrative expense		(2,497,659	)		(182,392	)		(70,357	)		(43,881	)		(358,308	)		(3,152,597	)		215,772			(2,936,825	)
Net operating income(expense)		3,092,172			247,782			232,054			90,630			1,282,933			4,945,571			(1,242,906	)		3,702,665

Share of gain of associates		51,146			—			821			249			1,524			53,740			(14,356	)		39,384
Other non-operating income(expense)		25,694			(4,413	)		(1,109	)		(732	)		(2,158	)		17,282			(3,212	)		14,070

Non-operating income(expense)		76,840			(4,413	)		(288	)		(483	)		(634	)		71,022			(17,568	)		53,454

Net income(expense) before tax		3,169,012			243,369			231,766			90,147			1,282,299			5,016,593			(1,260,474	)		3,756,119
Tax expense		(787,191	)		(64,124	)		(64,438	)		(21,869	)		(22,512	)		(960,134	)		(3,296	)		(963,430	)

Net income(loss)		2,381,821			179,245			167,328			68,278			1,259,787			4,056,459			(1,263,770	)		2,792,689
Total assets		465,056,362			16,438,040			12,842,279			5,411,300			27,495,903			527,243,884			(25,174,950	)		502,068,934
Investment in associate		889,986			—			36,840			10,233			22,427,129			23,364,188			(22,026,081	)		1,338,107
Other assets		464,166,376			16,438,040			12,805,439			5,401,067			5,068,774			503,879,696			(3,148,869	)		500,730,827
Total liabilities		439,614,725			14,007,201			11,320,364			4,760,661			3,779,158			473,482,109			(2,541,589	)		470,940,520

(*1)	The banking sector includes banks and their consolidated subsidiaries (such as overseas subsidiaries)

(*2)

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

(*3)	Adjustments were made for the presentation of profit or loss in accordance with the Accounting Standards from the reporting segments in accordance with the Managerial Accounting Standards.

- 53 -


	For the nine-month period ended September 30, 2021
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Adjustments (*3)			Total
Net interest income		3,747,793			449,944			227,004			79,057			19,916			4,523,714			565,157			5,088,871
Non-interest income(expense)		1,315,502			47,787			68,095			40,846			991,182			2,463,412			(1,372,173	)		1,091,239
Impairment losses due to credit loss		(72,200	)		(102,945	)		(50,486	)		3,160			(7,531	)		(230,002	)		(81,659	)		(311,661	)
General and administrative expense		(2,403,110	)		(157,164	)		(71,142	)		(35,972	)		(322,198	)		(2,989,586	)		196,745			(2,792,841	)
Net operating income(expense)		2,587,985			237,622			173,471			87,091			681,369			3,767,538			(691,930	)		3,075,608

Share of gain of associates		35,835			—			887			233			4,164			41,119			5,663			46,782
Other non-operating income(expense)		38,683			(4,275	)		(16,416	)		(412	)		(729	)		16,851			13,489			30,340

Non-operating income(expense)		74,518			(4,275	)		(15,529	)		(179	)		3,435			57,970			19,152			77,122

Net income(expense) before tax		2,662,503			233,347			157,942			86,912			684,804			3,825,508			(672,778	)		3,152,730
Tax income(expense)		(669,108	)		(58,730	)		(29,270	)		(20,424	)		(13,939	)		(791,471	)		388			(791,083	)

Net income(loss)		1,993,395			174,617			128,672			66,488			670,865			3,034,037			(672,390	)		2,361,647
Total assets (*4)		415,976,627			14,116,832			10,259,868			5,159,742			25,627,649			471,140,718			(23,956,847	)		447,183,871
Investment in associate		858,706			—			12,403			8,846			22,165,895			23,045,850			(21,710,683	)		1,335,167
Other assets		415,117,921			14,116,832			10,247,465			5,150,896			3,461,754			448,094,868			(2,246,164	)		445,848,704
Total liabilities (*4)		391,315,108			11,858,065			9,073,104			4,559,856			3,284,269			420,090,402			(1,756,726	)		418,333,676

(*1)	The banking sector includes banks and their consolidated subsidiaries (such as overseas subsidiaries)

(*2)

Other segments include gains and losses from Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Asset Management Corp., Woori Savings Bank, Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute.

(*3)	Adjustments were made for the presentation of profit or loss in accordance with the Accounting Standards from the reporting segments in accordance with the Managerial Accounting Standards.

(*4)	Total assets and liabilities are the amounts as of December 31, 2021.

- 54 -

(3)	Operating profit or loss from external customers for the nine-month periods ended September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022		2021
Domestic		3,266,447		2,812,858
Foreign		436,218		262,750

Total		3,702,665		3,075,608

(4)	Major non-current assets as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022 (*)		December 31, 2021 (*)
Domestic		5,157,706		5,201,838
Foreign		604,327		482,930

Total		5,762,033		5,684,768

(*)	Major non-current assets included investments in joint ventures and associates, investment properties, property, plant and equipment, and intangible assets.

(5)	Information about major customers

The Group does not have any single customer that generates 10% or more of the Group’s total revenue for the nine-month periods ended September 30, 2022 and 2021.

- 55 -

6.	CASH AND CASH EQUIVALENTS

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


	September 30, 2022		December 31, 2021
Cash		2,881,250		1,742,449
Foreign currencies		646,533		503,205
Demand deposits		5,386,876		5,161,529
Fixed deposits		362,254		158,635

Total		9,276,913		7,565,818

7.	FINANCIAL ASSETS AT FVTPL

(1)	Details of financial assets at FVTPL as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Financial assets at fair value through profit or loss measured at fair value		30,318,445		13,497,234

(2)	Financial assets at fair value through profit or loss measured at fair value are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Deposits:
Gold banking asset		38,356		65,072
Securities:
Debt securities
Korean treasury and government agencies		2,598,617		995,713
Financial institutions		631,815		925,474
Corporates		594,896		751,636
Others		91,778		70,416
Equity securities		378,759		329,864
Capital contributions		1,970,125		1,287,723
Beneficiary certificates		2,674,728		3,504,547
Others		133,059		94,673

Sub-total		9,073,777		7,960,046

Loans		850,529		667,467
Derivatives assets		20,354,284		4,803,131
Other financial assets		1,499		1,518

Total		30,318,445		13,497,234

The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of September 30, 2022 and December 31, 2021.

- 56 -

8.	FINANCIAL ASSETS AT FVTOCI

(1)

Details of financial assets at FVTOCI as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Debt securities:
Korean treasury and government agencies		5,530,175		4,728,085
Financial institutions		17,185,781		22,909,615
Corporates		4,359,006		5,091,035
Bond denominated in foreign currencies		6,619,575		5,299,707
Securities loaned		—		98,535

Sub-total		33,694,537		38,126,977
Equity securities		889,260		992,812
Loans		52,192		—

Total		34,635,989		39,119,789

(2)

Details of equity securities designated as financial assets at FVTOCI as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


Purpose of acquisition	September 30, 2022		December 31, 2021		Remarks
Investment for strategic business partnership purpose		729,475		796,835
Debt-equity swap		158,004		195,971
Others		1,781		6		Insurance for mutual aid association, etc.

Total		889,260		992,812

(3)

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

Allowance for credit losses


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(12,146	)		—		—		(12,146	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision of allowance for credit losses		(188	)		—		—		(188	)
Disposal		538			—		—		538
Others (*)		(1,619	)		—		—		(1,619	)

Ending balance		(13,415	)		—		—		(13,415	)

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


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(9,631	)		—		—		(9,631	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision of allowance for credit losses		(2,565	)		—		—		(2,565	)
Disposal		1,941			—		—		1,941
Others (*)		(129	)		—		—		(129	)

Ending balance		(10,384	)		—		—		(10,384	)

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

- 57 -

Gross carrying amount


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		38,126,977			—		—		38,126,977
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		12,113,975			—		—		12,113,975
Disposal/ Recovery		(16,539,673	)		—		—		(16,539,673	)
Gain on valuation		(930,001	)		—		—		(930,001	)
Amortization based on effective interest method		8,128			—		—		8,128
Others (*)		967,323			—		—		967,323

Ending balance		33,746,729			—		—		33,746,729

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


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		28,948,141			—		—		28,948,141
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		20,219,842			—		—		20,219,842
Disposal/ Recovery		(17,526,521	)		—		—		(17,526,521	)
Gain on valuation		(172,996	)		—		—		(172,996	)
Amortization based on effective interest method		(2,873	)		—		—		(2,873	)
Others (*)		368,198			—		—		368,198

Ending balance		31,833,791			—		—		31,833,791

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

(4)

During the nine-month period ended September 30, 2022, the Group sold its equity securities, designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 39,601 million Won, and cumulative losses at disposal dates were 14,567 million Won. During the nine-month period ended September 30, 2021, the Group sold its equity securities, designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 137,313 million Won, and cumulative gains at disposal dates were 1,868 million Won.

9.	SECURITIES AT AMORTIZED COST

(1)

Details of securities at amortized cost as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Korean treasury and government agencies		10,364,094			8,882,500
Financial institutions		6,818,122			1,835,947
Corporates		6,428,887			5,818,646
Bond denominated in foreign currencies		1,534,059			554,416
Allowance for credit losses		(7,808	)		(5,235	)

Total		25,137,354			17,086,274

- 58 -

(2)

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

Loss allowance


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(5,235	)		—		—		(5,235	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision of allowance for credit losses		(2,534	)		—		—		(2,534	)
Others (*)		(39	)		—		—		(39	)

Ending balance		(7,808	)		—		—		(7,808	)

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


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(4,566	)		—		—		(4,566	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision of allowance for credit losses		(34	)		—		—		(34	)
Others (*)		(8	)		—		—		(8	)

Ending balance		(4,608	)		—		—		(4,608	)

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

Gross carrying amount


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		17,091,509			—		—		17,091,509
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		12,245,256			—		—		12,245,256
Disposal/ Recovery		(4,500,147	)		—		—		(4,500,147	)
Amortization based on effective interest method		45,433			—		—		45,433
Others (*)		263,111			—		—		263,111

Ending balance		25,145,162			—		—		25,145,162

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


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		17,025,405			—		—		17,025,405
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		3,486,036			—		—		3,486,036
Disposal/ Recovery		(3,799,589	)		—		—		(3,799,589	)
Amortization based on effective interest method		9,214			—		—		9,214
Others (*)		48,560			—		—		48,560

Ending balance		16,769,626			—		—		16,769,626

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

- 59 -

10.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

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


	September 30, 2022		December 31, 2021
Due from banks		25,991,089		15,914,139
Loans		351,834,571		336,799,510
Other financial assets		15,478,877		9,219,223

Total		393,304,537		361,932,872

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


	September 30, 2022			December 31, 2021
Due from banks in local currency:
Due from Bank of Korea (“BOK”)		15,511,192			10,219,055
Due from depository banks		150,816			159,264
Due from non-depository institutions		227			14,146
Due from the Korea Exchange		4,100			54
Others		424,992			191,501
Loss allowance		(3,927	)		(2,452	)

Sub-total		16,087,400			10,581,568

Due from banks in foreign currencies:
Due from banks on demand		6,908,041			3,615,983
Due from banks on time		602,477			205,351
Others		2,398,937			1,514,819
Loss allowance		(5,766	)		(3,582	)

Sub-total		9,903,689			5,332,571

Total		25,991,089			15,914,139

(3)	Details of restricted due from banks of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	Counterparty	September 30, 2022		Reason of restriction
Due from banks in local currency:
Due from BOK	BOK		15,511,192	Reserve deposits under BOK Act
Due from KSFC	Samsung Futures and others		25	Futures trading margin and others
Others	Korea Exchange and others		399,710	Korean Won CCP margin and others

Sub-total			15,910,927

Due from banks in foreign currencies:
Due from banks on demand	BOK and others		6,634,009	Reserve deposits under BOK Act and others
Due from banks on time	National Bank Cambodia		287	Reserve deposits and others
Others	Korea Investment & Securities and others		2,392,914	Overseas futures and options trade deposits and others

Sub-total			9,027,210

Total			24,938,137

- 60 -


	Counterparty	December 31, 2021		Reason of restriction
Due from banks in local currency:
Due from BOK	BOK		10,219,055	Reserve deposits under BOK Act
Due from KSFC	KB Securities Co. Ltd.		54	Futures trading margin
Others	Korea Federation of Savings Banks and others		75,897	Guarantees, mortgage of domestic exchange transactions and others

Sub-total			10,295,006

Due from banks in foreign currencies:
Due from banks on demand	BOK and others		3,549,695	Reserve deposits under BOK Act and others
Due from banks on time	National Bank Cambodia		237	Reserve deposits and others
Others	Korea Investment & Securities and others		1,509,471	Overseas futures and options trade deposits and others

Sub-total			5,059,403

Total			15,354,409

(4)	Changes in the allowance for credit losses and gross carrying amount of due from banks for the nine-month periods ended September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(6,034	)		—		—		(6,034	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision for allowance for credit loss		(3,420	)		—		—		(3,420	)
Others (*)		(239	)		—		—		(239	)

Ending balance		(9,693	)		—		—		(9,693	)

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


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(4,366	)		—		—		(4,366	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision for allowance for credit loss		(1,932	)		—		—		(1,932	)
Others (*)		(7	)		—		—		(7	)

Ending balance		(6,305	)		—		—		(6,305	)

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

- 61 -

Gross carrying amount


	For the nine-month period ended September 30, 2022
	Stage 1		Stage 2		Stage 3		Total
Beginning balance		15,920,173		—		—		15,920,173
Transfer to 12-month expected credit losses		—		—		—		—
Transfer to lifetime expected credit losses		—		—		—		—
Transfer to credit-impaired financial assets		—		—		—		—
Net increase		9,892,088		—		—		9,892,088
Others (*)		188,521		—		—		188,521

Ending balance		26,000,782		—		—		26,000,782

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


	For the nine-month period ended September 30, 2021
	Stage 1		Stage 2		Stage 3		Total
Beginning balance		9,867,526		—		—		9,867,526
Transfer to 12-month expected credit losses		—		—		—		—
Transfer to lifetime expected credit losses		—		—		—		—
Transfer to credit-impaired financial assets		—		—		—		—
Net decrease		7,472,661		—		—		7,472,661
Others (*)		62,557		—		—		62,557

Ending balance		17,402,744		—		—		17,402,744

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

(5)	Details of loans as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Loans in local currency		283,572,196			273,283,542
Loans in foreign currencies		31,512,938			24,508,250
Domestic banker’s usance		4,086,165			3,403,021
Credit card accounts		10,329,708			9,757,115
Bills bought in foreign currencies		5,999,051			5,310,080
Bills bought in local currency		92,756			265,275
Factoring receivables		29,576			17,406
Advances for customers on guarantees		23,694			26,766
Private placement bonds		492,744			519,150
Securitized loans		3,004,857			2,874,480
Call loans		3,987,093			3,481,219
Bonds purchased under resale agreements		5,616,178			10,332,858
Financial lease receivables		1,483,638			1,173,751
Installment financial bond		2,960,593			2,882,396
Others		150			159
Loan origination costs and fees		888,157			858,051
Discounted present value		(9,518	)		(7,299	)
Allowance for credit losses		(2,235,405	)		(1,886,710	)

Total		351,834,571			336,799,510

- 62 -

(6)	Changes in the allowance for credit losses of loans are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		(136,520	)		(97,604	)		(206,617	)		(362,766	)		(576,740	)		(251,233	)		—
Transfer to 12-month expected credit losses		(21,366	)		20,913			453			(66,117	)		60,775			5,342			—
Transfer to lifetime expected credit losses		10,671			(12,194	)		1,523			19,425			(22,285	)		2,860			—
Transfer to credit-impaired financial assets		3,236			10,014			(13,250	)		1,990			9,239			(11,229	)		—
Net reversal(provision) of allowance for credit losses		(5,820	)		(39,342	)		(101,999	)		14,681			(209,269	)		(40,528	)		(87	)
Recovery		—			—			(53,764	)		—			—			(43,085	)		—
Charge-off		—			—			113,986			—			—			108,791			67
Disposal		—			—			18,823			280			—			31,849			—
Interest income from impaired loans		—			—			8,774			—			—			7,160			—
Others		(1,619	)		(218	)		2,726			(47,188	)		(18,755	)		(50,319	)		—
Changes due to business combinations		(4,350	)		(495	)		(948	)		(479	)		(84	)		(97	)		—

Ending balance		(155,768	)		(118,926	)		(230,293	)		(440,174	)		(757,119	)		(240,489	)		(20	)


	For the nine-month period ended September 30, 2022
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		(68,814	)		(115,489	)		(70,927	)		(568,100	)		(789,833	)		(528,777	)		—
Transfer to 12-month expected credit losses		(29,746	)		29,695			51			(117,229	)		111,383			5,846			—
Transfer to lifetime expected credit losses		7,803			(7,948	)		145			37,899			(42,427	)		4,528			—
Transfer to credit-impaired financial assets		591			2,401			(2,992	)		5,817			21,654			(27,471	)		—
Net reversal(provision) of allowance for credit losses		12,251			(32,223	)		(136,985	)		21,112			(280,834	)		(279,512	)		(87	)
Recovery		—			—			(43,821	)		—			—			(140,670	)		—
Charge-off		—			—			155,452			—			—			378,229			67
Disposal		—			—			7,896			280			—			58,568			—
Interest income from impaired loans		—			—			—			—			—			15,934			—
Others		44			—			—			(48,763	)		(18,973	)		(47,593	)		—
Changes due to business combinations		—			—			—			(4,829	)		(579	)		(1,045	)		—

Ending balance		(77,871	)		(123,564	)		(91,181	)		(673,813	)		(999,609	)		(561,963	)		(20	)

- 63 -


	For the nine-month period ended September 30, 2021
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(121,527	)		(84,463	)		(205,693	)		(327,460	)		(521,907	)		(388,744	)
Transfer to 12-month expected credit losses		(18,409	)		17,601			808			(104,128	)		74,794			29,334
Transfer to lifetime expected credit losses		9,434			(12,159	)		2,725			15,691			(37,917	)		22,226
Transfer to credit-impaired financial assets		4,359			15,810			(20,169	)		1,684			23,025			(24,709	)
Net reversal(provision) of allowance for credit losses		(5,517	)		(30,811	)		(77,689	)		87,141			(62,051	)		(106,175	)
Recovery		—			—			(56,286	)		—			—			(43,135	)
Charge-off		—			—			128,148			—			—			189,088
Disposal		—			12			12,241			—			53			55,368
Interest income from impaired loans		—			—			10,807			—			—			9,695
Others		123			221			4,261			(13,767	)		(5,913	)		2,390

Ending balance		(131,537	)		(93,789	)		(200,847	)		(340,839	)		(529,916	)		(254,662	)


	For the nine-month period ended September 30, 2021
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(62,712	)		(90,481	)		(105,537	)		(511,699	)		(696,851	)		(699,974	)
Transfer to 12-month expected credit losses		(22,906	)		22,738			168			(145,443	)		115,133			30,310
Transfer to lifetime expected credit losses		7,277			(8,004	)		727			32,402			(58,080	)		25,678
Transfer to credit-impaired financial assets		514			1,671			(2,185	)		6,557			40,506			(47,063	)
Net reversal(provision) of allowance for credit losses		8,926			(28,601	)		(102,949	)		90,550			(121,463	)		(286,813	)
Recovery		—			—			(48,945	)		—			—			(148,366	)
Charge-off		—			—			154,056			—			—			471,292
Disposal		—			—			25,576			—			65			93,185
Interest income from impaired loans		—			—			—			—			—			20,502
Others		(4	)		—			—			(13,648	)		(5,692	)		6,651

Ending balance		(68,905	)		(102,677	)		(79,089	)		(541,281	)		(726,382	)		(534,598	)

- 64 -

(7)	Changes in the gross carrying amount of loans are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		135,139,685			13,500,783			499,969			170,795,255			8,458,279			541,732			—
Transfer to 12-month expected credit losses		4,376,430			(4,364,080	)		(12,350	)		1,669,485			(1,654,392	)		(15,093	)		—
Transfer to lifetime expected credit losses		(6,007,887	)		6,025,599			(17,712	)		(3,801,495	)		3,810,339			(8,844	)		—
Transfer to credit-impaired financial assets		(119,541	)		(96,236	)		215,777			(155,619	)		(90,490	)		246,109			—
Charge-off		—			—			(113,986	)		—			—			(108,791	)		(67	)
Disposal		(460,090	)		—			(47,116	)		(48,472	)		—			(110,185	)		—
Net increase(decrease)		103,326			(1,044,104	)		(14,514	)		16,915,114			(530,135	)		(71,988	)		242,384
Changes due to business combinations		57,741			2,973			7,630			31,551			1,016			687			—

Ending balance		133,089,664			14,024,935			517,698			185,405,819			9,994,617			473,627			242,317


	For the nine-month period ended September 30, 2022
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		8,239,303			1,395,139			116,075			314,174,243			23,354,201			1,157,776			—
Transfer to 12-month expected credit losses		515,505			(515,423	)		(82	)		6,561,420			(6,533,895	)		(27,525	)		—
Transfer to lifetime expected credit losses		(401,119	)		401,352			(233	)		(10,210,501	)		10,237,290			(26,789	)		—
Transfer to credit-impaired financial assets		(27,827	)		(22,541	)		50,368			(302,987	)		(209,267	)		512,254			—
Charge-off		—			—			(155,452	)		—			—			(378,229	)		(67	)
Disposal		—			—			(17,082	)		(508,562	)		—			(174,383	)		—
Net increase(decrease)		670,063			(84,709	)		157,962			17,688,503			(1,658,948	)		71,460			242,384
Changes due to business combinations		—			—			—			89,292			3,989			8,317			—

Ending balance		8,995,925			1,173,818			151,556			327,491,408			25,193,370			1,142,881			242,317

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	For the nine-month period ended September 30, 2021
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		125,990,038			12,016,711			537,106			149,574,932			7,328,741			717,909
Transfer to 12-month expected credit losses		4,103,633			(4,091,047	)		(12,586	)		1,753,834			(1,720,513	)		(33,321	)
Transfer to lifetime expected credit losses		(6,120,684	)		6,146,317			(25,633	)		(3,388,362	)		3,434,382			(46,020	)
Transfer to credit-impaired financial assets		(91,113	)		(82,941	)		174,054			(171,057	)		(152,176	)		323,233
Charge-off		—			—			(128,148	)		—			—			(189,088	)
Disposal		—			(221	)		(37,344	)		—			(990	)		(135,003	)
Net increase(decrease)		7,892,847			(816,933	)		1,161			18,036,390			(684,567	)		(108,282	)

Ending balance		131,774,721			13,171,886			508,610			165,805,737			8,204,877			529,428


	For the nine-month period ended September 30, 2021
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		7,278,975			1,078,220			180,074			282,843,945			20,423,672			1,435,089
Transfer to 12-month expected credit losses		310,387			(310,192	)		(195	)		6,167,854			(6,121,752	)		(46,102	)
Transfer to lifetime expected credit losses		(464,447	)		465,296			(849	)		(9,973,493	)		10,045,995			(72,502	)
Transfer to credit-impaired financial assets		(24,293	)		(15,671	)		39,964			(286,463	)		(250,788	)		537,251
Charge-off		—			—			(154,056	)		—			—			(471,292	)
Disposal		—			—			(56,520	)		—			(1,211	)		(228,867	)
Net increase(decrease)		1,009,906			(29,855	)		112,960			26,939,143			(1,531,355	)		5,839

Ending balance		8,110,528			1,187,798			121,378			305,690,986			22,564,561			1,159,416

(8)	Details of other financial assets are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Cash Management Account asset (CMA asset)		75,000			140,000
Receivables		12,678,760			6,852,139
Accrued income		1,506,409			1,049,857
Telex and telephone subscription rights and refundable deposits		809,052			870,707
Domestic exchange settlement debit		203,770			82,555
Other assets (*)		340,179			290,746
Allowance for credit losses		(134,293	)		(66,781	)

Total		15,478,877			9,219,223

(*)

The Group has recognized the employee embezzlement on April 2022 and Financial Supervisory Service conducted its inspection from April 28, 2022 to May 30, 2022. The Group filed a criminal complaint against employee and also took a provisional attachment of his properties. The investigation of the case is in progress by investigation agencies. The embezzlement related amount, 62,196 million Won formally included in other asset was removed and recognized loss as its uncertain recoverability.

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


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,675	)		(5,580	)		(57,526	)		(66,781	)
Transfer to 12-month expected credit losses		(305	)		291			14			—
Transfer to lifetime expected credit losses		213			(236	)		23			—
Transfer to credit-impaired financial assets		457			1,152			(1,609	)		—
Provision of allowance for credit losses		(787	)		(3,573	)		(66,658	)		(71,018	)
Charge-off		—			—			1,662			1,662
Disposal		—			—			616			616
Others		310			(9	)		927			1,228

Ending balance		(3,787	)		(7,955	)		(122,551	)		(134,293	)


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,666	)		(5,450	)		(74,179	)		(83,295	)
Transfer to 12-month expected credit losses		(261	)		231			30			—
Transfer to lifetime expected credit losses		149			(395	)		246			—
Transfer to credit-impaired financial assets		146			110			(256	)		—
Reversal(provision) of allowance for credit losses		174			182			(6,343	)		(5,987	)
Charge-off		—			—			8,446			8,446
Disposal		—			—			1,098			1,098
Others		(692	)		(28	)		1,141			421

Ending balance		(4,150	)		(5,350	)		(69,817	)		(79,317	)

(10)	Changes in the gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		9,004,539			106,597			174,868			9,286,004
Transfer to 12-month expected credit losses		9,100			(9,085	)		(15	)		—
Transfer to lifetime expected credit losses		(39,926	)		39,946			(20	)		—
Transfer to credit-impaired financial assets		(2,411	)		(2,887	)		5,298			—
Charge-off		—			—			(1,662	)		(1,662	)
Disposal		(6	)		—			(758	)		(764	)
Net increase(decrease)		6,288,459			(20,887	)		61,652			6,329,224
Changes due to business combinations		368			—			—			368

Ending balance		15,260,123			113,684			239,363			15,613,170


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		7,267,426			76,418			188,187			7,532,031
Transfer to 12-month expected credit losses		8,712			(8,697	)		(15	)		—
Transfer to lifetime expected credit losses		(16,536	)		16,562			(26	)		—
Transfer to credit-impaired financial assets		(782	)		(723	)		1,505			—
Charge-off		—			—			(8,446	)		(8,446	)
Disposal		—			(2	)		(1,302	)		(1,304	)
Net increase(decrease)		1,452,206			(1,530	)		22,018			1,472,694

Ending balance		8,711,026			82,028			201,921			8,994,975

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11.

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1)	The fair value hierarchy

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

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

•

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

•

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

•

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

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

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(2)	Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		38,356		—		—		38,356
Debt securities		2,406,281		1,509,740		1,085		3,917,106
Equity securities		72,646		—		306,113		378,759
Capital contributions		—		—		1,970,125		1,970,125
Beneficiary certificates		38,817		1,179,002		1,456,909		2,674,728
Loans		—		706,416		144,113		850,529
Derivative assets		82,883		20,111,880		159,521		20,354,284
Others		—		—		134,558		134,558

Sub-total		2,638,983		23,507,038		4,172,424		30,318,445

Financial assets at FVTOCI
Debt securities		10,825,512		22,869,025		—		33,694,537
Equity securities		328,138		—		561,122		889,260
Loans		—		—		52,192		52,192

Sub-total		11,153,650		22,869,025		613,314		34,635,989

Derivative assets (Designated for hedging)		—		131,025		—		131,025

Total		13,792,633		46,507,088		4,785,738		65,085,459

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		37,737		—		—		37,737
Derivative liabilities		57,476		21,263,193		14,467		21,335,136
Securities sold		60,081		—		—		60,081

Sub-total		155,294		21,263,193		14,467		21,432,954

Derivative liabilities (Designated for hedging)		—		208,641		—		208,641

Total		155,294		21,471,834		14,467		21,641,595

(*)

Among financial assets and financial liabilities measured at fair value, the amount transferred from Level 2 to Level 1 is 3,499,648 million Won. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed. A change in the judgement of the active market where the financial product was traded resulted the transfer between levels.

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	December 31, 2021
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		65,072		—		—		65,072
Debt securities		817,584		1,923,538		2,117		2,743,239
Equity securities		25,879		—		303,985		329,864
Capital contributions		—		—		1,287,723		1,287,723
Beneficiary certificates		74,271		2,326,202		1,104,074		3,504,547
Loans		—		453,832		213,635		667,467
Derivative assets		10,911		4,762,872		29,348		4,803,131
Others		—		—		96,191		96,191

Sub-total		993,717		9,466,444		3,037,073		13,497,234

Financial assets at FVTOCI
Debt securities		5,578,455		32,548,522		—		38,126,977
Equity securities		411,357		—		581,455		992,812

Sub-total		5,989,812		32,548,522		581,455		39,119,789

Derivative assets (Designated for hedging)		—		106,764		—		106,764

Total		6,983,529		42,121,730		3,618,528		52,723,787

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		65,016		—		—		65,016
Derivative liabilities		10,259		4,552,368		4,641		4,567,268
Securities sold		211,408		29,766		—		241,174

Sub-total		286,683		4,582,134		4,641		4,873,458

Derivative liabilities (Designated for hedging)		—		27,584		—		27,584

Total		286,683		4,609,718		4,641		4,901,042

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

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

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

Valuation methods and input variables for each type of financial instrument classified into level 2 in September 30, 2022 and December 31, 2021 are as follows:


	Valuation methods	Input variables
Debt securities	Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread.	Risk-free market rate and credit spread

Beneficiary certificates	The beneficiary certificates classified as Level 2 are measured at the standard price.	Values of underlying assets such as bond

Derivatives	Fair value is measured by models such as option model (Closed form), DCF model, FDM and Monte Carlo Simulation.	Discount rate, values of underlying assets such as foreign exchange rate and stock prices, volatility, risk-free market rate, forward rate, etc.

Loans	The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor.	Risk-free market rate and credit spread

Valuation methods and input variables for each type of financial instrument classified into level 3 in September 30, 2022 and December 31, 2021 are as follows:


	Valuation methods	Input variables
Loans	Fair value is calculated by using the Binomial Tree, which is a valuation technique commonly used in the market taking into account the price and variability of the underlying asset, and LSMC. The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor.	Values of underlying assets, volatility, Risk-free market rate and credit spread

Debt securities	The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to debt securities issuers. Fair value is measured by models such as LSMC(Least-Squares Monte Carlo), Hull-white.	Risk-free market rate, credit spread, discount rate originated credit grade, volatility of stock price, volatility of interest rate

Equity securities, capital contributions and Beneficiary certificates	Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Precedent transaction analysis, Net Asset Value Method, LSMC, Hull-white and Binomial Tree, Imputed Market Value Model more than one method is used given the characteristic of the subject of fair value measurement.	Risk-free market rate, market risk premium, corporate Beta, discount rate originated credit grade, stock prices, volatility of underlying asset, net asset value, volatility of stock price, volatility of interest rate, Capital increase amount, Fluctuation rate of real estate sale price, etc

Derivatives	Fair value is measured by models such as option model (Closed form), DCF model, FDM and Monte Carlo Simulation.	Discount rate, values of underlying assets such as foreign exchange rate and stock prices, volatility, etc.

Others	Fair value is measured by DCF model, Binomial Tree, LSMC, etc.	Stock prices, volatility of underlying assets, etc.

- 71 -

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:


	Fair value measurement technique	Type	Significant unobservable inputs	Range(%)	Impact of changes in significant unobservable inputs on fair value measurement
Loans	Binomial Tree		Stock prices	22.49%	Variation of fair value increases as volatility of stock price increases.

	DCF model		Discount rate	1.98%~2.18%	Fair value decreases as discount rate increases.

Derivative assets	Option valuation model and others	Equity related	Correlation coefficient	0.17~0.67	Variation of fair value increases as correlation coefficient increases.

Derivative liabilities	Option valuation model and others	Equity related	Correlation coefficient	0.17~0.67	Variation of fair value increases as correlation coefficient increases.

			Volatility of underlying asset	11.74% ~ 97.16%	Variation of fair value increases as volatility of underlying assets increases.

Equity securities, capital contributions, and beneficiary certificates	Binomial Tree		Stock prices, Volatility of underlying asset	25.28%	Variation of fair value increases as volatility of underlying asset increases.

	DCF model and others		Discount rate	0.00%~16.73%	Fair value increases as discount rate decreases.

			Terminal growth rate	0%~1%	Fair value increases as terminal growth rate increases.

			Liquidation value	0.00%	Fair value increases as liquidation value increases.

Others	Binomial Tree		Stock prices, Volatility of underlying asset	19.26%~36.42%	Variation of fair value increases as volatility of underlying asset increases.

	DCF model		Discount rate	0.00%	Fair value increases as discount rate decreases.

			Terminal growth rate	1.00%	Fair value increases as terminal growth rate increases.

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

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(3)	Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Beginning balance		Net Income (loss) (*1)			Other comprehensive income		Purchases/ issuances		Disposals/ settlements			Transfer to or out of Level 3 (*2)		Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		2,117		(32	)		—		—		(1,000	)		—		1,085
Equity securities		303,985		2,361			—		14,673		(14,906	)		—		306,113
Capital contributions		1,287,723		181,704			—		615,083		(114,385	)		—		1,970,125
Beneficiary certificates		1,104,074		38,304			—		398,761		(84,230	)		—		1,456,909
Loans		213,635		7,175			—		628,016		(704,713	)		—		144,113
Derivative assets		29,348		130,178			—		2,561		(2,566	)		—		159,521
Others		96,191		15,759			—		29,836		(7,228	)		—		134,558

Sub-total		3,037,073		375,449			—		1,688,930		(929,028	)		—		4,115,124

Financial assets at FVTOCI
Equity securities		581,455		—			6,262		2,188		(28,783	)		—		561,122
Loans		—		—			2,068		547,834		(497,710	)		—		52,192
Sub-total		581,455		—			8,330		550,022		(526,493	)		—		613,314

Total		3,618,528		375,449			8,330		2,238,952		(1,455,521	)		—		4,785,738

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		4,641		(3,711	)		—		16,554		(3,017	)		—		14,467

Total		4,641		(3,711	)		—		16,554		(3,017	)		—		14,467

(*1)

The losses that increase financial liabilities are presented as positive amounts, and the gains that decrease financial liabilities are presented as negative amounts. The gain amounting to 340,712 million Won for the nine-month period ended September 30, 2022, which is from financial assets and liabilities that the Group holds as at the end of the period, has been recognized in net gain(loss) on financial assets at FVTPL and net gain(loss) on financial assets at FVTOCI in the consolidated statement of comprehensive income.

(*2)	The Group recognizes transfers between levels at the end of reporting period within such events have occurred or conditions have changed.

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	For the nine-month period ended September 30, 2021
	Beginning balance		Net Income (loss) (*1)			Other comprehensive income		Purchases/ issuances			Disposals/ settlements			Transfer to or out of Level 3 (*2)			Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		4,618		(770	)		—		1,000			(2,521	)		—			2,327
Equity securities		450,371		(22,176	)		—		17,007			(102,254	)		—			342,948
Capital contributions		865,685		59,119			—		343,951			(186,324	)		—			1,082,431
Beneficiary certificates		1,917,811		14,201			—		278,155			(41,690	)		—			2,168,477
Loans		209,062		13,252			—		622,344			(585,296	)		—			259,362
Derivative assets		7,872		19,007			—		4,122			(1,076	)		(5,838	)		24,087
Others		84,979		12,152			—		6,998			(12,625	)		—			91,504

Sub-total		3,540,398		94,785			—		1,273,577			(931,786	)		(5,838	)		3,971,136

Financial assets at FVTOCI
Equity securities		570,715		—			21,937		480			(118	)		—			593,014

Total		4,111,113		94,785			21,937		1,274,057			(931,904	)		(5,838	)		4,564,150

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		20,136		2,233			—		(2,654	)		(11,001	)		(6,254	)		2,460
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		19,630		(102	)		—		—			(19,528	)		—			—
Derivative liabilities (Designated for hedging)		—		—			—		—			—			—			—

Total		39,766		2,131			—		(2,654	)		(30,529	)		(6,254	)		2,460

(*1)

The losses that increase financial liabilities are presented as positive amounts, and the gains that decrease financial liabilities are presented as negative amounts. The gain amounting to 109,455 million Won for the nine-month period ended September 30, 2021, which is from financial assets and liabilities that the Group holds as at the end of the period, has been recognized in net gain(loss) on financial assets at FVTPL and net gain(loss) on financial assets at FVTOCI in the consolidated statement of comprehensive income.

(*2)	The Group recognizes transfers between levels at the end of reporting period within such events have occurred or conditions have changed.

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(4)	Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows.

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

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 4,800,206 million Won and 3,623,168 million Won as of September 30, 2022 and December 31, 2021 respectively, equity instruments of 3,521,355 million Won and 3,030,775 million Won whose carrying amount are considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis.

The sensitivity on fluctuation of input variables by financial instruments as of September 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


	September 30, 2022
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		3,448		(2,997	)		—		—
Loans (*2)		195		(193	)		—		—
Debt securities		5		(6	)		—		—
Equity securities (2) (3) (*4)		9,694		(7,633	)		—		—
Beneficiary certificates (*4)		754		(754	)		—		—
Financial assets at FVTOCI
Equity securities (3) (4)		—		—			38,313		(28,043	)

Total		14,096		(11,583	)		38,313		(28,043	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		1,543		(1,561	)		—		—

Total		1,543		(1,561	)		—		—

(*1)

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

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

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

(*4)

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

- 75 -


	December 31, 2021
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		1,668		(1,191	)		—		—
Loans (*2)		682		(671	)		—		—
Debt securities		13		(12	)		—		—
Equity securities (2) (3) (*4)		6,348		(5,331	)		—		—
Beneficiary certificates (*4)		1,305		(1,171	)		—		—
Others (*2)		921		(876	)		—		—
Financial assets at FVTOCI
Equity securities (3) (4)		—		—			30,391		(23,865	)

Total		10,937		(9,252	)		30,391		(23,865	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		205		(264	)		—		—

Total		205		(264	)		—		—

(*1)

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

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

(*4)

- 76 -

(5)	Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,690,933		21,179,102		—		23,870,035		25,137,354
Loans and other financial assets at amortized cost		—		12,253,306		372,999,112		385,252,418		393,304,537
Financial liabilities:
Deposits due to customers		—		331,570,085		—		331,570,085		332,347,105
Borrowings		—		30,865,263		2,130,402		32,995,665		33,400,405
Debentures		—		47,261,077		—		47,261,077		48,848,451
Other financial liabilities		—		31,507,102		446,366		31,953,468		32,394,235



	December 31, 2021
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,122,401		14,921,119		—		17,043,520		17,086,274
Loans and other financial assets at amortized cost		—		3		359,918,500		359,918,503		361,932,872
Financial liabilities:
Deposits due to customers		—		318,070,829		—		318,070,829		317,899,871
Borrowings		—		23,393,520		1,270,305		24,663,825		24,755,459
Debentures		—		44,500,963		—		44,500,963		44,653,864
Other financial liabilities		—		23,154,733		379,534		23,534,267		23,827,821

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


	Valuation methods	Input variables
Securities at amortized cost	The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread.	Risk-free market rate and credit spread

Loans and other financial assets at amortized cost	The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.	Risk-free market rate, credit spread and prepayment rate

Deposits due to customers, borrowings, debentures and other financial liabilities	The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group.	Risk-free market rate, credit spread and forward rate

- 77 -

(6)	Financial instruments by category

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


	September 30, 2022
	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Financial assets
Deposits		38,356		—		25,991,089		—		26,029,445
Securities		9,073,777		34,635,989		25,137,354		—		68,847,120
Loans		850,529		—		351,834,571		—		352,685,100
Derivative assets		20,354,284		—		—		131,025		20,485,309
Other financial assets		1,499		—		15,478,877		—		15,480,376

Total		30,318,445		34,635,989		418,441,891		131,025		483,527,350


	September 30, 2022
	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Financial liabilities
Deposits due to customers		37,737		332,347,105		—		332,384,842
Borrowings		60,081		33,400,405		—		33,460,486
Debentures		—		48,848,451		—		48,848,451
Derivative liabilities		21,335,136		—		208,641		21,543,777
Other financial liabilities		—		32,394,235		—		32,394,235

Total		21,432,954		446,990,196		208,641		468,631,791


	December 31, 2021
	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Financial assets
Deposits		65,072		—		15,914,139		—		15,979,211
Securities		7,960,046		39,119,789		17,086,274		—		64,166,109
Loans		667,467		—		336,799,510		—		337,466,977
Derivative assets		4,803,131		—		—		106,764		4,909,895
Other financial assets		1,518		—		9,219,223		—		9,220,741

Total		13,497,234		39,119,789		379,019,146		106,764		431,742,933


	December 31, 2021
	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Financial liabilities
Deposits due to customers		65,016		317,899,871		—		317,964,887
Borrowings		241,174		24,755,459		—		24,996,633
Debentures		—		44,653,864		—		44,653,864
Derivative liabilities		4,567,268		—		27,584		4,594,852
Other financial liabilities		—		23,827,821		—		23,827,821

Total		4,873,458		411,137,015		27,584		416,038,057

- 78 -

(7)	Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category during the nine-month periods ended September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Interest income (expense)			Fees and commissions income (expense)			Provision of credit loss			Gain (loss) on valuation and transactions			Others		Total
Financial assets at FVTPL		67,888			(6	)		—			669,978			101,128		838,988
Financial assets at FVTOCI		452,534			1,487			(187	)		(8,846	)		22,107		467,095
Securities at amortized cost		323,763			—			(2,534	)		—			—		321,229
Loans and other financial assets at amortized cost		9,194,131			431,519			(613,759	)		74,349			—		9,086,240
Financial liabilities at amortized cost		(3,685,092	)		1,610			—			—			—		(3,683,482	)
Net derivatives (designated for hedging)		—			—			—			177,035			—		177,035

Total		6,353,224			434,610			(616,480	)		912,516			123,235		7,207,105


	For the nine-month period ended September 30, 2021
	Interest income (expense)			Fees and commissions income (expense)			Provision of credit loss			Gain on valuation and transactions		Others		Total
Financial assets at FVTPL		33,286			(225	)		—			238,204		243,152		514,417
Financial assets at FVTOCI		266,195			1,211			(2,565	)		45,830		19,785		330,456
Securities at amortized cost		239,631			—			(34	)		—		—		239,597
Loans and other financial assets at amortized cost		6,654,339			367,405			(325,645	)		97,755		—		6,793,854
Financial liabilities at amortized cost		(2,099,008	)		1,662			—			—		—		(2,097,346	)
Net derivatives (designated for hedging)		—			—			—			70,438		—		70,438

Total		5,094,443			370,053			(328,244	)		452,227		262,937		5,851,416

- 79 -

12.

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES

(1)	Investments in associates accounted for using the equity method of accounting are as follows:


		Percentage of ownership (%)
Joint ventures and associates	Main business	September 30, 2022		December 31, 2021		Location		Financial statements as of
Woori Bank
W Service Networks Co., Ltd. (*1)	Freight & staffing services		4.9		4.9		Korea		2022.8.31 (*5)
Korea Credit Bureau Co., Ltd. (*2)	Credit information		9.9		9.9		Korea		2022.9.30
Korea Finance Security Co., Ltd. (*1)	Security service		15.0		15.0		Korea		2022.8.31 (*5)
Wongwang Co., Ltd. (*3)	Wholesale and real estate		29.0		29.0		Korea		—
Sejin Construction Co., Ltd. (*3)	Construction		29.6		29.6		Korea		—
ARES-TECH Co., Ltd. (*3)	Electronic component manufacturing		23.4		23.4		Korea		—
Reading Doctors Co., Ltd. (3)(11)	Other services		—		35.4		Korea		—
Cultizm Korea LTD Co., Ltd. (3)(11)	Wholesale and retail sales		—		31.3		Korea		—
NK Eng Co., Ltd. (*3)	Manufacturing		23.1		23.1		Korea		—
Beomgyo.,Ltd. (*3)	Telecommunication equipment retail sales		23.1		23.1		Korea		—
Woori Growth Partnerships New Technology Private Equity Fund	Other financial services		23.1		23.1		Korea		2022.9.30
2016KIF-IMM Woori Bank Technology Venture Fund	Other financial services		20.0		20.0		Korea		2022.9.30
K BANK Co., Ltd. (*2)	Finance		12.6		12.6		Korea		2022.8.31 (*5)
Woori Bank-Company K Korea Movie Asset Fund(*9)	Other financial services		25.0		25.0		Korea		2022.9.30
Partner One Value Up I Private Equity Fund	Other financial services		23.3		23.3		Korea		2022.9.30
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership	Other financial services		20.0		20.0		Korea		2022.9.30
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund	Other financial services		25.0		25.0		Korea		2022.9.30
LOTTE CARD Co., Ltd.	Credit card and installment financing		20.0		20.0		Korea		2022.6.30 (*5)
Together-Korea Government Private Pool Private Securities Investment Trust No.3	Other financial services		100.0		100.0		Korea		2022.9.30
Genesis Environmental Energy Company 1st Private Equity Fund(*8)	Trust and collective investment		—		24.8		Korea		—
Union Technology Finance Investment Association	Other financial services		29.7		29.7		Korea		2022.9.30
Dicustody Co., Ltd.(*2)	Other information technology and computer operation related services		1.0		1.0		Korea		2022.9.30
Orient Shipyard Co., Ltd.(*3)	Manufacture of sections for ships		22.7		—		Korea		—
BTS 2nd Private Equity Fund	Other financial services		20.0		—		Korea		2022.9.30
Woori Bank (*6)
Japanese Hotel Real Estate Private Equity Fund 2	Other financial services		19.9		19.9		Korea		2022.9.30

- 80 -


		Percentage of ownership (%)
Joint ventures and associates	Main business	September 30, 2022		December 31, 2021		Location		Financial statements as of
Woori Seoul Beltway Private Special Asset Fund No.1	Trust and collective investment		25.0		25.0		Korea		2022.9.30
Woori Multi-Return Securities Investment Trust 3 (Balanced Bond) (*8)	Collective investment business		—		20.0		Korea		—
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F	Collective investment business		28.6		14.5		Korea		2022.9.30
Woori Safe Plus General Type Private Investment Trust S-8(Bond)	Collective investment business		16.7		—		Korea		2022.9.30
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1(*10)	Collective investment business		25.1		—		Korea		2022.9.30
Woori Financial Capital Co., Ltd.
WOORI TAERIM 1st Fund	Other financial services		25.6		25.6		Korea		2022.9.30
Portone-Cape Fund No.1	Other financial services		20.0		20.0		Korea		2022.9.30
KIWOOM WOORI Financial 1st Fund (*7)	Other financial services		9.1		9.1		Korea		2022.9.30
DeepDive WOORI 2021-1 Financial Investment Fund (*7)	Other financial services		11.9		11.9		Korea		2022.9.30
Darwin Green Packaging Private Equity Fund	Other financial services		20.4		20.4		Korea		2022.9.30
DS Power Semicon Private Equity Fund	Other financial services		21.0		—		Korea		2022.9.30
Koreawide partners 2nd Private Equity Fund	Other financial services		26.7		—		Korea		2022.9.30
Woori Investment Bank Co., Ltd. (*6)
Woori FirstValue Private Real Estate Fund No.2	Real estate business		12.0		12.0		Korea		2022.9.30
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust	Investment trust and discretionary investment business		0.2		0.3		Korea		2022.9.30
Woori Asset Management Co., Ltd.
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)(*12)	Collective investment business		22.8		—		Korea		2022.9.30
Woori Together TDF 2025(*12)	Collective investment business		23.5		—		Korea		2022.9.30
Woori Together TDF 2030(*12)	Collective investment business		24.1		—		Korea		2022.9.30
Woori Private Equity Asset Management Co., Ltd.
Woori Hanhwa Eureka Private Equity Fund (*2)	Other financial services		0.8		0.8		Korea		2022.9.30
Aarden Woori Apparel 1st Private Equity Fund (*2)	Other financial services		0.5		0.5		Korea		2022.9.30
Woori Dyno 1st Private Equity Fund (*2)	Other financial services		19.6		—		Korea		2022.9.30
Australia Green Energy 1st PEF	Other financial services		4.0		—		Korea		2022.9.30
Japanese Hotel Real Estate Private Equity Fund 1
Godo Kaisha Oceanos 1	Other financial services		47.8		47.8		Japan		2022.7.31 (*5)

- 81 -


		Percentage of ownership (%)
Joint ventures and associates	Main business	September 30, 2022		December 31, 2021		Location		Financial statements as of
Woori G Japan Private Placement Real Estate Master Investment Trust No.2
Woori Zip 1	Other financial services		63.4		63.9		Japan		2022.6.30 (*5)
Woori Zip 2	Other financial services		63.3		63.8		Japan		2022.6.30 (*5)
Woori bank and Woori card Co., Ltd. (*6)
Dongwoo C & C Co., Ltd. (*3)	Construction		24.5		24.5		Korea		—
SJCO Co., Ltd. (*3)	Aggregate transportation and wholesale		29.8		29.7		Korea		—
G2 Collection Co., Ltd. (*3)	Wholesale and retail sales		29.2		29.2		Korea		—
The Base Enterprise Co., Ltd. (3)(11)	Manufacturing		—		48.4		Korea		—
Kyesan Engineering Co., Ltd. (*3)	Construction		23.3		23.3		Korea		—
Good Software Lap Co., Ltd. (*3)	Service		29.4		29.4		Korea		—
QTS Shipping Co., Ltd. (3)(11)	Complex transportation brokerage		—		49.8		Korea		—
DAEA SNC Co., Ltd. (*3)	Wholesale and retail sales		25.5		25.5		Korea		—
Force TEC Co., Ltd.	Manufacturing		24.5		24.5		Korea		2022.6.30 (*5)
PREXCO Co., Ltd. (*3)	Manufacturing		28.1		28.1		Korea		—
JiWon Plating Co., Ltd. (*3)	Plating		20.8		20.8		Korea		—
Youngdong Sea Food Co., Ltd. (*3)	Processed sea food manufacturing		24.5		24.5		Korea		—
KUM HWA Co., Ltd.	Telecommunication equipment retail sales		20.1		20.1		Korea		2022.6.30 (*5)
Jinmyung Plus Co., Ltd	Manufacturing		21.3		21.3		Korea		2022.6.30 (*5)
Woori bank and Woori Financial Capital Co., Ltd. (*6)
JC Assurance No.2 Private Equity Fund	Other financial services		23.5		24.4		Korea		2022.9.30
Dream Company Growth no.1 PEF	Other financial services		27.8		27.8		Korea		2022.9.30
HMS-Oriens 1st Fund	Other financial services		22.8		22.8		Korea		2022.9.30
Woori G Senior Loan Private Placement Investment Trust No.1	Collective investment business		21.7		21.7		Korea		2022.9.30
Genesis Eco No.1 Private Equity Fund	Other financial services		29.0		29.0		Korea		2022.9.30
Paratus Woori Materials, Parts, Equipments Private Equity Fund	Other financial services		29.9		29.9		Korea		2022.9.30
Midas No. 8 Private Equity Joint Venture Company	Other financial services		28.5		28.5		Korea		2022.9.30
Orchestra Private Equity Fund IV	Other financial services		28.2		—		Korea		2022.9.30
Synaptic Green No.1 PEF	Other financial services		21.1		—		Korea		2022.9.30
IGEN2022No. 1 Private Equity Fund	Other financial services		24.8		—		Korea		2022.9.30
Woori Bank and Woori Investment Bank Co., Ltd. (*6)

- 82 -

Percentage of ownership
(%)

Joint ventures and associates

Main business

September 30,
2022

December 31,
2021

Location

Financial
statements as of

PCC-Woori LP Secondary Fund

Other financial services

38.8

Korea

2022.9.30

Woori bank and Woori Asset Management Co., Ltd. (*6)

Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1(*10)

Collective investment business

—

27.5

Korea

—

Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6)

Woori-Q Corporate Restructuring Private Equity Fund

Other financial services

35.5

38.1

Korea

2022.9.30

Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (*6)

Woori-Shinyoung Growth-Cap Private Equity Fund I

Other financial services

35.0

Korea

2022.9.30

(*1)	Most of the significant business transactions of associates are with the Group as of September 30, 2022 and December 31, 2021.

(*2)	The Group can participate in decision-making body and exercise significant influence over financial policies and operational policies decision making of the associates.

(*3)	There is no investment balance as of September 30, 2022 and December 31, 2021.

(*4)	Woori G Oncorp Corporate support of Major Industry General Type Private Placement Investment Trust (Type 2) and other 15 joint ventures and associates can exercise significant influence but was classified as an item measured at fair value through profit or loss.

(*5)

The equity method was applied using the most recent financial statements available from the settlement date because no financial statements were available at the end of the reporting period and the significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the subsidiary were duly reflected.

(*6)	Two or more subsidiaries may invest or operate to exert significant influence on the decision-making process for activities related to the investee.

(*7)	The Group can participate as a co-operator to exert significant influence.

(*8)	It was excluded due to liquidation.

(*9)	It was dissoluted and will be liquidated.

(*10)

Woori Asset Management Corp. has redeemed the fund but it is still participating as a General Partner.

(*11)

It was excluded as Woori Bank sold its shares during the period.

(*12)

It was reclassified to associate from subsidiary resulted from the loss of control along with the changes in percentage of ownership.

- 83 -

(2)	Changes in the carrying value of investments in associates accounted for using the equity method of accounting are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Acquisition cost		January 1, 2022		Share of profits (losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			September 30, 2022
W Service Networks Co., Ltd.		108		183		31			—		—			(4	)		—			210
Korea Credit Bureau Co., Ltd.		3,313		9,423		(3,597	)		—		—			—			—			5,826
Korea Finance Security Co., Ltd.		3,267		3,101		(610	)		—		—			—			—			2,491
Woori Growth Partnerships New Technology Private Equity Fund		12,942		12,448		532			—		(2,049	)		—			—			10,931
2016KIF-IMM Woori Bank Technology Venture Fund		7,594		12,630		(1,432	)		—		(802	)		(736	)		—			9,660
K BANK Co., Ltd.		236,232		239,493		7,996			—		—			—			(4,799	)		242,690
Woori Bank-Company K Korea Movie Asset Fund		—		345		91			—		—			—			—			436
Partner One Value Up I Private Equity Fund		5,039		6,576		(2,863	)		—		—			—			—			3,713
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		7,556		11,153		1,472			—		(2,180	)		—			—			10,445
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,305		4,254		—			50		—			—			—			4,304
LOTTE CARD Co.,Ltd.		346,810		458,295		40,851			—		—			(12,960	)		8,068			494,254
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,070		109			—		—			—			—			10,179
Genesis Environmental Energy Company 1st Private Equity Fund		—		4,126		(41	)		—		(3,738	)		(347	)		—			—
Union Technology Finance Investment Association		15,000		12,388		(200	)		2,250		—			—			—			14,438
Dicustody Co., Ltd.		1		1		—			—		—			—			—			1
BTS 2nd Private Equity Fund		3,026		—		(86	)		3,026		—			—			—			2,940
Japanese Hotel Real Estate Private Equity Fund 2		3,174		3,196		140			—		—			(279	)		(116	)		2,941
Woori Seoul Beltway Private Special Asset Fund		9,152		7,551		163			1,659		—			(156	)		—			9,217
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		—		10,023		—			—		(9,950	)		(73	)		—			—
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		160,000		151,822		1,259			50,000		(40,002	)		(1,972	)		—			161,107
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		10,000		—		67			10,000		—			(48	)		—			10,019
WOORI TAERIM 1st Fund		1,100		991		(3	)		—		—			—			—			988
Portone-Cape Fund No.1		340		489		(20	)		—		—			—			—			469
KIWOOM WOORI Financial 1st Investment Fund		1,000		973		(15	)		—		—			—			—			958
DeepDive WOORI 2021-1 Financial Investment Fund		900		993		(8	)		—		(100	)		(3	)		—			882
Darwin Green Packaging Private Equity Fund		4,000		3,957		404			—		—			(400	)		—			3,961
DS Power Semicon Private Equity Fund		3,000		—		236			3,000		—			(269	)		—			2,967
Koreawide partners 2nd Private Equity Fund		20,000		—		—			20,000		—			—			—			20,000

- 84 -


	For the nine-month period ended September 30, 2022
	Acquisition cost		January 1, 2022		Share of profits (losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			September 30, 2022
Woori FirstValue Private Real Estate Fund No.2		9,000		763		(6	)		—		(199	)		—			—			558
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		100		100		2			—		—			—			—			102
Woori BIG2 Plus Securities Investment Trust (Balanced Bond)		1,200		—		(177	)		—		1,235			—			—			1,058
Woori Together TDF 2025		2,000		—		(188	)		—		2,192			—			—			2,004
Woori Together TDF 2030		2,000		—		(210	)		—		2,248			—			—			2,038
Woori Hanhwa Eureka Private Equity Fund		15		327		(50	)		—		(148	)		(49	)		—			80
Aarden Woori Apparel 1st Private Equity Fund		100		99		(1	)		—		—			—			—			98
Woori Dyno 1st Private Equity Fund		2,000		—		(12	)		2,000		—			—			—			1,988
Australia Green Energy 1st PEF		4,913		—		(1	)		4,913		—			—			—			4,912
Godo Kaisha Oceanos 1		10,800		9,905		36			—		—			(950	)		(97	)		8,894
Woori Zip 1		10,143		10,496		(71	)		—		—			—			(377	)		10,048
Woori Zip 2		14,254		14,732		(110	)		—		—			—			(529	)		14,093
Force TEC Co., Ltd. (*)		—		—		56			—		—			—			(56	)		—
KUM HWA Co., Ltd. (*)		—		—		—			—		—			—			—			—
Jinmyung Plus Co., Ltd		—		—		13			—		—			—			—			13
JC Assurance No.2 Private Equity Fund		29,349		17,728		(17,728	)		—		—			—			—			—
Dream Company Growth no.1 PEF		7,412		7,914		432			—		—			(471	)		—			7,875
HMS-Oriens 1st Fund		12,000		12,007		876			—		—			—			—			12,883
Woori G Senior Loan No.1		81,274		88,029		2,844			14,073		(19,888	)		(2,782	)		—			82,276
Genesis Eco No.1 Private Equity Fund		12,000		11,120		(52	)		194		—			—			—			11,262
Paratus Woori Materials, Parts, Equipments Private Equity Fund		17,700		17,493		(177	)		—		—			—			—			17,316
Midas No. 8 Private Equity Joint Venture Company		18,735		18,968		339			—		—			(530	)		—			18,777
Orchestra Private Equity Fund IV		10,000		—		(266	)		10,000		—			—			—			9,734
Synaptic Green No.1 PEF		8,000		—		(170	)		8,000		—			—			—			7,830
IGEN2022No. 1 Private Equity Fund		7,822		—		680			8,000		(475	)		(165	)		—			8,040
PCC-Woori LP Secondary Fund		10,100		12,350		252			—		—			—			—			12,602
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		10,000		73,787		(3,578	)		—		(60,509	)		(190	)		—			9,510
Woori-Q Corporate Restructuring Private Equity Fund		26,790		46,155		997			262		(18,908	)		—			—			28,506
Woori-Shinyoung Growth-Cap Private Equity Fund I		17,018		28,713		10,870			—		—			—			—			39,583

		1,192,584		1,335,167		39,076			137,427		(153,273	)		(22,384	)		2,094			1,338,107

(*)	As a result of discontinuation of the equity method, related companies’ losses amount not recognized is 489 million Won for Force TEC Co., Ltd. and 1 million Won for KUM HWA Co., Ltd. and cumulated amount is 1,286 million Won for Force TEC Co., Ltd. and 3 million Won for KUM HWA Co., Ltd.

- 85 -


	For the nine-month period ended September 30, 2021
	Acquisition cost		January 1, 2021		Share of profits (losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital		September 30, 2021
W Service Networks Co., Ltd.		108		191		(8	)		—		—			(4	)		—		179
Korea Credit Bureau Co., Ltd.		3,313		8,125		909			—		—			(90	)		—		8,944
Korea Finance Security Co., Ltd.		3,267		3,066		(93	)		—		—			—			—		2,973
Woori Growth Partnerships New Technology Private Equity Fund		16,371		15,032		(917	)		—		(567	)		—			—		13,548
2016KIF-IMM Woori Bank Technology Venture Fund		8,396		13,238		1,049			—		(3,497	)		(631	)		—		10,159
K BANK Co., Ltd. (*1)		236,232		174,097		63,770			—		—			—			221		238,088
Smart Private Equity Fund No.2		—		1,481		(796	)		—		(685	)		—			—		—
Woori Bank-Company K Korea Movie Asset Fund		476		2,788		218			—		(1,624	)		(176	)		—		1,206
Partner One Value Up I Private Equity Fund		5,039		9,816		2,455			—		(4,961	)		(800	)		—		6,510
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		14,236		9,756		—			5,040		(560	)		—			—		14,236
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,192		4,129		—			63		—			—			—		4,192
LOTTE CARD Co.,Ltd.		346,810		422,832		24,275			—		—			(10,374	)		5,470		442,203
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,023		30			—		—			—			—		10,053
Genesis Environmental Energy Company 1st Private Equity Fund		3,738		3,979		46			—		—			—			—		4,025
Union Technology Finance Investment Association		10,500		4,485		(260	)		6,000		—			—			—		10,225
Dicustody Co., Ltd.		1		—		—			1		—			—			—		1
Japanese Hotel Real Estate Private Equity Fund 2		3,291		3,234		166			—		—			(141	)		12		3,271
Woori G Clean Energy No.1		2,477		1,024		—			1,462		(2,338	)		(148	)		—		—
Woori Goseong Power EBL Private Special Asset Fund		14,915		15,118		370			—		—			(370	)		—		15,118
Woori Seoul Beltway Private Special Asset Fund		6,273		5,613		87			1,392		—			(84	)		—		7,008
Woori Corporate Private Securities Fund 1(Bond)		10,000		—		—			10,000		(10,000	)		—			—		—
Woori G Star Private Placement Investment Trust No.33 [FI]		20,000		—		—			20,000		(20,000	)		—			—		—
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		10,000		—		(8	)		10,000		—			—			—		9,992
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		50,000		—		574			50,000		—			—			—		50,574
WOORI TAERIM 1st Fund		1,100		283		714			—		—			—			—		997
Portone-Cape Fund No.1		340		960		189			—		(660	)		—			—		489
KIWOOM WOORI Financial 1st Investment Fund		1,000		994		(15	)		—		—			—			—		979
DeepDive WOORI 2021-1 Financial Investment Fund		1,000		—		(2	)		1,000		—			—			—		998

- 86 -


	For the nine-month period ended September 30, 2021
	Acquisition cost		January 1, 2021		Share of profits (losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			September 30, 2021
Woori FirstValue Private Real Estate Fund No.2		9,000		2,130		(637	)		—		—			(730	)		—			763
Woori High plus G.B. Securities Feeder Fund1(G.B.)		6,000		6,076		(71	)		—		—			—			35			6,040
Woori Star50 Master Fund ClassC-F		200		184		35			—		(219	)		—			—			—
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		200		—		3			—		201			—			—			204
Woori Hanhwa Eureka Private Equity Fund		186		403		130			—		(214	)		—			—			319
Aarden Woori Apparel 1st Private Equity Fund		100		—		(1	)		100		—			—			—			99
Godo Kaisha Oceanos 1		10,800		10,193		62			—		—			(370	)		(6	)		9,879
Woori Zip 1		16,380		—		—			16,380		(5,355	)		—			—			11,025
Woori Zip 2		22,883		—		—			22,855		(7,481	)		—			—			15,374
Force TEC Co., Ltd. (*2)		—		393		(393	)		—		—			—			—			—
KUM HWA Co., Ltd. (*2)		—		—		—			—		—			—			—			—
JC Assurance No.2 Private Equity Fund		29,349		29,050		(437	)		299		—			—			—			28,912
Dream Company Growth no.1 PEF		8,000		7,705		693			—		—			(471	)		—			7,927
HMS-Oriens 1st Fund		12,000		12,000		377			—		—			—			—			12,377
Woori G Senior Loan No.1		73,610		52,045		2,024			21,651		—			(1,255	)		—			74,465
Genesis Eco No.1 Private Equity Fund		11,805		—		(729	)		11,805		—			—			—			11,076
Paratus Woori Materials, Parts, Equipments Private Equity Fund		17,300		—		(88	)		17,700		—			—			—			17,612
PCC-Woori LP Secondary Fund		10,100		8,128		369			2,525		—			—			—			11,022
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		110,221		93,474		756			20,000		(30,000	)		(2,503	)		—			81,727
Woori-Q Corporate Restructuring Private Equity Fund		20,267		22,904		901			119		(2,996	)		—			—			20,928
Woori-Shinyoung Growth-Cap Private Equity Fund I		17,840		38,342		21,067			12,799		(32,532	)		(10,754	)		—			28,922

		1,159,316		993,291		116,814			231,191		(123,488	)		(28,901	)		5,732			1,194,639

(*1)	70,120 million Won is included in deemed gains on disposal due to a decrease in the percentage of ownership due to an unequal capital increase.

(*2)	As a result of discontinuation of the equity method, related companies’ losses amount not recognized is 67 million Won for Force TEC Co., Ltd. and 1 million Won for KUM HWA Co., Ltd.

- 87 -

(3)	Summary financial information relating to investments in associates accounted for using the equity method of accounting is as follows (Unit: Korean Won in millions):


	September 30, 2022
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)			Total comprehensive income(loss)
W Service Networks Co., Ltd.		6,564		2,315		14,386		1,238			—			1,238
Korea Credit Bureau Co., Ltd.		144,334		88,052		105,259		14,991			—			14,991
Korea Finance Security Co., Ltd.		29,070		12,463		34,857		(3,077	)		—			(3,077	)
Woori Growth Partnerships New Technology Private Equity Fund		47,548		182		3,981		2,367			—			2,367
2016KIF-IMM Woori Bank Technology Venture Fund		48,666		364		658		(6,908	)		—			(6,908	)
K BANK Co., Ltd.		15,495,987		13,738,981		321,688		60,387			(42,023	)		18,364
Woori Bank-Company K Korea Movie Asset Fund(*1)		1,743		—		402		402			—			402
Partner One Value Up I Private Equity Fund		15,964		1		2		(12,262	)		—			(12,262	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		52,422		196		7,975		7,359			—			7,359
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,709		95		1		(285	)		—			(285	)
LOTTE CARD Co.,Ltd (*2)		19,020,160		16,316,622		1,184,776		175,848			31,518			207,366
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,181		1		152		143			—			143
Union Technology Finance Investment Association		48,899		290		224		(672	)		—			(672	)
Dicustody Co., Ltd.		95		—		—		(3	)		—			(3	)
BTS 2nd Private Equity Fund		15,027		328		1		(431	)		—			(431	)
Japanese Hotel Real Estate Private Equity Fund 2		14,820		14		760		698			(582	)		116
Woori Seoul Beltway Private Special Asset Fund No.1		36,869		2		686		654			—			654
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		676,853		113,021		8,264		6,528			—			6,528
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		60,075		7		624		558			—			558
WOORI TAERIM 1st Fund		4,047		185		—		(13	)		—			(13	)
Portone-Cape Fund No.1		2,344		—		—		(103	)		—			(103	)
KIWOOM WOORI Financial 1st Investment Fund		10,597		55		1		(166	)		—			(166	)
DeepDive WOORI 2021-1 Financial Investment Fund		7,424		12		57		(66	)		—			(66	)
Darwin Green Packaging Private Equity Fund		19,408		—		2,215		1,981			—			1,981
DS Power Semicon Private Equity Fund		14,181		40		1,100		892			—			892
Koreawide partners 2nd Private Equity Fund		77,307		2,306		3,020		1			—			1
Woori FirstValue Private Real Estate Fund No.2		67,010		62,357		1		(49	)		—			(49	)
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		68,272		55		2,372		2,163			—			2,163
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		4,663		3		301		(695	)		—			(695	)
Woori Together TDF 2025		8,458		28		1,470		(1,120	)		—			(1,120	)
Woori Together TDF 2030		8,394		28		1,564		(1,268	)		—			(1,268	)
Woori Hanhwa Eureka Private Equity Fund		9,933		30		167		(6,251	)		—			(6,251	)
Aarden Woori Apparel 1st Private Equity Fund		20,826		83		8		(244	)		—			(244	)
Woori Dyno 1st Private Equity Fund		10,178		42		127		(63	)		—			(63	)
Australia Green Energy 1st PEF		123,966		1		2		(35	)		—			(35	)
Godo Kaisha Oceanos 1		63,958		45,353		2,226		75			—			75
Woori Zip 1		50,362		34,525		1,601		21			—			21
Woori Zip 2		71,269		49,015		2,324		(171	)		—			(171	)
Force TEC Co., Ltd.		9,019		22,617		17,139		(1,947	)		(290	)		(2,237	)
KUM HWA Co., Ltd.		4		155		—		(4	)		—			(4	)
Jinmyung Plus Co.,Ltd.		629		565		119		(33	)		—			(33	)

- 88 -


	September 30, 2022
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)		Total comprehensive income(loss)
JC Assurance No.2 Private Equity Fund		122,015		3		—		(929	)		—		(929	)
Dream Company Growth no.1 PEF		28,394		44		1,695		1,556			—		1,556
HMS-Oriens 1st Fund		56,474		4		2,070		1,660			—		1,660
Woori G Senior Loan Private Placement Investment Trust No.1		380,059		21		13,951		13,138			—		13,138
Genesis Eco No.1 Private Equity Fund		38,858		2		47		(433	)		—		(433	)
Paratus Woori Materials, Parts, Equipments Private Equity Fund		58,311		396		7		(592	)		—		(592	)
Midas No. 8 Private Equity Joint Venture Company		66,153		234		1,901		1,191			—		1,191
Orchestra Private Equity Fund IV		34,555		—		1		(574	)		—		(574	)
Synaptic Green No.1 PEF		37,195		1		2		(806	)		—		(806	)
IGEN2022No. 1 Private Equity Fund		32,485		122		—		2,739			—		2,739
PCC-Woori LP Secondary Fund		32,445		—		854		173			—		173
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		37,859		—		3,691		(2,567	)		—		(2,567	)
Woori-Q Corporate Restructuring Private Equity Fund		80,535		272		3,019		725			—		725
Woori-Shinyoung Growth-Cap Private Equity Fund I		113,503		308		31,151		30,227			—		30,227

(*1)	It was dissoluted and will be liquidated. It is financial information as of December 16, 2021.

(*2)	The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

- 89 -


	December 31, 2021
	Assets		Liabilities		Operating revenue			Net income (loss)			Other comprehensive income(loss)			Total comprehensive income(loss)
W Service Networks Co., Ltd.		6,208		2,504		17,019			840			—			840
Korea Credit Bureau Co., Ltd.		113,859		21,284		127,751			20,486			—			20,486
Korea Finance Security Co., Ltd.		34,957		14,286		57,462			249			—			249
Woori Growth Partnerships New Technology Private Equity Fund		54,173		231		3,807			(2,228	)		—			(2,228	)
2016KIF-IMM Woori Bank Technology Venture Fund		63,983		837		23,010			21,119			—			21,119
K BANK Co., Ltd.		14,021,789		12,291,131		250,502			19,348			(32,072	)		(12,724	)
Woori Bank-Company K Korea Movie Asset Fund		1,383		2		1,075			543			—			543
Partner One Value Up I Private Equity Fund		28,273		—		11,972			10,914			—			10,914
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		56,363		597		11,422			10,077			—			10,077
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,799		5		—			(332	)		—			(332	)
LOTTE CARD Co.,Ltd (*)		15,980,312		13,460,156		1,499,867			184,919			25,612			210,531
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,073		1		41			37			—			37
Genesis Environmental Energy Company 1st Private Equity Fund		20,610		3,941		11,347			694			—			694
Union Technology Finance Investment Association		41,996		290		13			(1,168	)		—			(1,168	)
Dicustody Co., Ltd.		98		—		—			(2	)		—			(2	)
Japanese Hotel Real Estate Private Equity Fund 2		16,104		14		911			1,196			(373	)		823
Woori Seoul Beltway Private Special Asset Fund No.1		30,206		1		536			500			—			500
Woori Multi-Return Securities Investment Trust 3 (Balanced Bond)		101,644		51,530		5			2			—			2
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		1,209,228		158,524		89			79			—			79
WOORI TAERIM 1st Fund		4,047		172		—			2,770			—			2,770
Portone-Cape Fund No.1		2,447		—		1,050			947			—			947
KIWOOM WOORI Financial 1st Investment Fund		10,818		111		1			(221	)		—			(221	)
DeepDive WOORI 2021-1 Financial Investment Fund		8,340		—		—			(60	)		—			(60	)
Darwin Green Packaging Private Equity Fund		19,387		—		—			(213	)		—			(213	)
Woori FirstValue Private Real Estate Fund No.2		69,672		63,309		—			(5,303	)		—			(5,303	)
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		35,796		1		(34	)		(35	)		—			(35	)
Woori Hanhwa Eureka Private Equity Fund		40,817		133		20,193			19,821			—			19,821
Aarden Woori Apparel 1st Private Equity Fund		21,075		89		—			(214	)		—			(214	)
Godo Kaisha Oceanos 1		66,087		45,367		3,141			267			—			267
Woori Zip 1		52,259		35,833		1,106			(26	)		—			(26	)
Woori Zip 2		74,033		50,951		1,536			(50	)		—			(50	)
Force TEC Co., Ltd.		11,904		23,508		20,941			(9,188	)		—			(9,188	)
KUM HWA Co., Ltd.		20		176		58			(10	)		—			(10	)
Jinmyung Plus Co.,Ltd.		568		445		209			5			—			5
JC Assurance No.2 Private Equity Fund		118,397		—		—			(1,040	)		—			(1,040	)
Dream Company Growth no.1 PEF		28,533		44		—			1,500			—			1,500
HMS-Oriens 1st Fund		52,659		28		2,750			2,179			—			2,179
Woori G Senior Loan Private Placement Investment Trust No.1		406,634		25		14,553			13,669			—			13,669
Genesis Eco No.1 Private Equity Fund		38,369		4		308			(377	)		—			(377	)
Paratus Woori Material Component Equipment joint venture company		58,507		—		7			(693	)		—			(693	)
Midas No. 8 Private Equity Joint Venture Company		66,699		112		1			(113	)		—			(113	)

- 90 -


	December 31, 2021
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)		Total comprehensive income(loss)
PCC-Woori LP Secondary Fund		31,585		—		5,720		4,162			—		4,162
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		257,891		—		3,239		3,239			—		3,239
Woori-Q Corporate Restructuring Private Equity Fund		121,057		555		327		(1,547	)		—		(1,547	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		82,087		314		83,143		81,550			—		81,550

(*)	The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

- 91 -

(4)	The entities that the Group has not applied equity method of accounting although the Group’s ownership interest is more than 20% as of September 30, 2022 and December 31, 2021 are as follows:


	September 30, 2022
Associate (*)	Number of shares owned		Ownership (%)
Yuil PESC Co., Ltd.		8,642		24.0
CL Tech Co., Ltd.		10,191		28.6
S.WIN Co., Ltd.		20,301		20.0
Choongang Network Solution Co., Ltd.		90,006		25.7

(*)	Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.


	December 31, 2021
Associate (*)	Number of shares owned		Ownership (%)
Orient Shipyard Co., Ltd.		464,812		21.4
Yuil PESC Co., Ltd.		8,642		24.0
CL Tech Co., Ltd.		13,759		38.6
S.WIN Co., Ltd.		20,301		20.0

(*)	Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.

(5)	As of September 30, 2022 and December 31, 2021, the reconciliations from the net assets of the associates to the book value of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won in millions except for ownership):


	September 30, 2022
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
W Service Networks Co., Ltd.		4,249		4.9		210		—		—		—		210
Korea Credit Bureau Co., Ltd.		56,282		9.9		5,580		246		—		—		5,826
Korea Finance Security Co., Ltd.		16,607		15.0		2,491		—		—		—		2,491
Woori Growth Partnerships New Technology Private Equity Fund		47,367		23.1		10,931		—		—		—		10,931
2016KIF-IMM Woori Bank Technology Venture Fund		48,301		20.0		9,660		—		—		—		9,660
K BANK Co., Ltd. (*)		1,755,730		12.6		220,796		21,894		—		—		242,690
Woori Bank-Company K Korea Movie Asset Fund		1,743		25.0		436		—		—		—		436
Partner One Value Up Ist Private Equity Fund		15,964		23.3		3,713		—		—		—		3,713
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		52,226		20.0		10,445		—		—		—		10,445
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,614		25.0		3,903		—		—		401		4,304
LOTTE CARD Co., Ltd (*)		2,471,270		20.0		494,254		—		—		—		494,254
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,180		100.0		10,179		—		—		—		10,179
Union Technology Finance Investment Association		48,609		29.7		14,438		—		—		—		14,438
Dicustody Co., Ltd.		95		1.0		1		—		—		—		1
BTS 2nd Private Equity Fund		14,699		20.0		2,940		—		—		—		2,940
Japanese Hotel Real Estate Private Equity Fund No.2		14,806		19.9		2,941		—		—		—		2,941

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	September 30, 2022
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment			Intercompany transaction		Book value
Woori Seoul Beltway Private Special Asset Fund No.1		36,867			25.0		9,217			—		—			—		9,217
Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F		563,832			28.6		161,107			—		—			—		161,107
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		60,068			16.7		10,019			—		—			—		10,019
WOORI TAERIM 1st Fund		3,862			25.6		988			—		—			—		988
Portone-Cape Fund No.1		2,344			20.0		469			—		—			—		469
KIWOOM WOORI Financial 1st Investment Fund		10,542			9.1		958			—		—			—		958
DeepDive WOORI 2021-1 Financial Investment Fund		7,412			11.9		882			—		—			—		882
Darwin Green Packaging Private Equity Fund		19,408			20.4		3,961			—		—			—		3,961
DS Power Semicon Private Equity Fund		14,141			21.0		2,967			—		—			—		2,967
Koreawide partners 2nd Private Equity Fund		75,001			26.7		20,000			—		—			—		20,000
Woori FirstValue Private Real Estate Fund No.2		4,653			12.0		558			—		—			—		558
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		68,217			0.2		102			—		—			—		102
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		4,660			22.8		1,058			—		—			—		1,058
Woori Together TDF 2025		8,430			23.5		2,004			—		—			—		2,004
Woori Together TDF 2030		8,366			24.1		2,038			—		—			—		2,038
Woori Hanhwa Eureka Private Equity Fund		9,903			0.8		80			—		—			—		80
Aarden Woori Apparel 1st Private Equity Fund		20,743			0.5		98			—		—			—		98
Woori Dyno 1st Private Equity Fund		10,136			19.6		1,988			—		—			—		1,988
Australia Green Energy 1st PEF		123,965			4.0		4,912			—		—			—		4,912
Godo Kaisha Oceanos 1		18,605			47.8		8,894			—		—			—		8,894
Woori Zip 1		15,837			63.4		10,048			—		—			—		10,048
Woori Zip 2		22,254			63.3		14,093			—		—			—		14,093
Force TEC		(13,598	)		24.5		(3,337	)		—		—			3,337		—
KUM HWA Co., Ltd.		(151	)		20.1		(30	)		—		—			30		—
Jinmyung Plus Co.,Ltd.		64			21.3		13			—		—			—		13
JC Assurance No.2 Private Equity Fund		122,012			23.5		17,728			—		(17,728	)		—		—
Dream Company Growth no.1 PEF		28,350			27.8		7,875			—		—			—		7,875
HMS-Oriens 1st Fund		56,470			22.8		12,883			—		—			—		12,883
Woori G Senior Loan General Type Private Investment Trust No.1		380,038			21.7		82,276			—		—			—		82,276
Genesis Eco No.1 Private Equity Fund		38,856			29.0		11,262			—		—			—		11,262
Paratus Woori Material Component Equipment joint venture company		57,915			29.9		17,316			—		—			—		17,316
Midas No. 8 Private Equity Joint Venture Company		65,919			28.5		18,777			—		—			—		18,777
Orchestra Private Equity Fund IV		34,555			28.2		9,734			—		—			—		9,734
Synaptic Green No.1 PEF		37,194			21.1		7,830			—		—			—		7,830

- 93 -


	September 30, 2022
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
IGEN2022No. 1 Private Equity Fund		32,363		24.8		8,040		—		—		—		8,040
PCC-Woori LP Secondary Fund		32,445		38.8		12,602		—		—		—		12,602
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		37,859		25.1		9,510		—		—		—		9,510
Woori-Q Corporate Restructuring Private Equity Fund		80,263		35.5		28,506		—		—		—		28,506
Woori-Shinyoung Growth-Cap Private Equity Fund I		113,195		35.0		39,583		—		—		—		39,583

(*)	The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

- 94 -


	December 31, 2021
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
W Service Networks Co., Ltd.		3,704		4.9		183		—		—		—		183
Korea Credit Bureau Co., Ltd.		92,575		9.9		9,177		246		—		—		9,423
Korea Finance Security Co., Ltd.		20,671		15.0		3,101		—		—		—		3,101
Woori Growth Partnerships New Technology Private Equity Fund		53,942		23.1		12,448		—		—		—		12,448
2016KIF-IMM Woori Bank Technology Venture Fund		63,146		20.0		12,630		—		—		—		12,630
K BANK Co., Ltd. (*)		1,730,307		12.6		217,599		21,894		—		—		239,493
Woori Bank-Company K Korea Movie Asset Fund		1,381		25.0		345		—		—		—		345
Partner One Value Up Ist Private Equity Fund		28,273		23.3		6,576		—		—		—		6,576
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		55,767		20.0		11,153		—		—		—		11,153
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,794		25.0		3,949		—		—		305		4,254
LOTTE CARD Co., Ltd (*)		2,291,474		20.0		458,295		—		—		—		458,295
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,071		100.0		10,070		—		—		—		10,070
Genesis Environmental Energy Company 1st Private Equity Fund		16,669		24.8		4,126		—		—		—		4,126
Union Technology Finance Investment Association		41,706		29.7		12,388		—		—		—		12,388
Dicustody Co., Ltd.		98		1.0		1		—		—		—		1
Japanese Hotel Real Estate Private Equity Fund No.2		16,090		19.9		3,196		—		—		—		3,196
Woori Seoul Beltway Private Special Asset Fund No.1		30,205		25.0		7,551		—		—		—		7,551
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		50,114		20.0		10,023		—		—		—		10,023
Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F		1,050,704		14.5		151,822		—		—		—		151,822
WOORI TAERIM 1st Fund		3,875		25.6		991		—		—		—		991
Portone-Cape Fund No.1		2,447		20.0		489		—		—		—		489
KIWOOM WOORI Financial 1st Investment Fund		10,707		9.1		973		—		—		—		973
DeepDive WOORI 2021-1 Financial Investment Fund		8,340		11.9		993		—		—		—		993
Darwin Green Packaging Private Equity Fund		19,387		20.4		3,957		—		—		—		3,957
Woori FirstValue Private Real Estate Fund No.2		6,363		12.0		763		—		—		—		763
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		35,795		0.3		100		—		—		—		100
Woori Hanhwa Eureka Private Equity Fund		40,684		0.8		327		—		—		—		327
Aarden Woori Apparel 1st Private Equity Fund		20,986		0.5		99		—		—		—		99
Godo Kaisha Oceanos 1		20,720		47.8		9,905		—		—		—		9,905
Woori Zip 1		16,426		63.9		10,496		—		—		—		10,496

- 95 -


	December 31, 2021
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment			Intercompany transaction			Book value
Woori Zip 2		23,082			63.8		14,732			—		—			—			14,732
Force TEC		(11,604	)		24.5		(2,843	)		—		—			2,843			—
KUM HWA Co., Ltd.		(156	)		20.1		(31	)		—		—			31			—
Jinmyung Plus Co.,Ltd.		123			21.3		25			—		—			(25	)		—
JC Assurance No.2 Private Equity Fund		118,397			24.4		29,349			—		(11,621	)		—			17,728
Dream Company Growth no.1 PEF		28,489			27.8		7,914			—		—			—			7,914
HMS-Oriens 1st Fund		52,631			22.8		12,007			—		—			—			12,007
Woori G Senior Loan General Type Private Investment Trust No.1		406,609			21.7		88,029			—		—			—			88,029
Genesis Eco No.1 Private Equity Fund		38,365			29.0		11,120			—		—			—			11,120
Paratus Woori Materials, Parts, Equipments Private Equity Fund		58,507			29.9		17,493			—		—			—			17,493
Midas No. 8 Private Equity Joint Venture Company		66,587			28.5		18,968			—		—			—			18,968
PCC-Woori LP Secondary Fund		31,585			38.8		12,350			—		—			—			12,350
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		257,891			27.5		73,787			—		—			—			73,787
Woori-Q Corporate Restructuring Private Equity Fund		120,502			38.1		46,155			—		—			—			46,155
Woori-Shinyoung Growth-Cap Private Equity Fund I		81,773			35.0		28,713			—		—			—			28,713

(*)	The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

13.

INVESTMENT PROPERTIES

(1)	Details of investment properties are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Acquisition cost		422,211			415,163
Accumulated depreciation		(30,146	)		(25,582	)
Accumulated impairment losses		(86	)		(86	)

Net carrying value		391,979			389,495

(2)	Changes in investment properties are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022			2021
Beginning balance		389,495			387,464
Disposal		(1,194	)		—
Depreciation		(2,958	)		(2,106	)
Transfer		5,995			1,643
Foreign currencies translation adjustments		641			1,991
Others		—			185

Ending balance		391,979			389,177

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14.

PREMISES AND EQUIPMENT

(1)	Details of premises and equipment as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,699,298		736,597		243,958		58,941		31,842		1		2,770,637
Right-of-use asset		—		368,251		17,430		—		—		—		385,681

Carrying value		1,699,298		1,104,848		261,388		58,941		31,842		1		3,156,318


	December 31, 2021
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,719,325		756,964		258,361		51,354		3,171		1		2,789,176
Right-of-use asset		—		367,480		18,064		—		—		—		385,544

Carrying value		1,719,325		1,124,444		276,425		51,354		3,171		1		3,174,720

(2)	Details of premises and equipment (owned) as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,699,958			1,078,213			1,166,617			477,879			31,842		20			4,454,529
Accumulated depreciation		—			(341,616	)		(922,659	)		(418,938	)		—		(19	)		(1,683,232	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,699,298			736,597			243,958			58,941			31,842		1			2,770,637


	December 31, 2021
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,719,985			1,076,091			1,156,479			475,195			3,171		20			4,430,941
Accumulated depreciation		—			(319,127	)		(898,118	)		(423,841	)		—		(19	)		(1,641,105	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,719,325			756,964			258,361			51,354			3,171		1			2,789,176

- 97 -

(3)	Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress			Structures			Total
Beginning balance		1,719,325			756,964			258,361			51,354			3,171			1			2,789,176
Acquisitions		28			10,200			50,053			20,499			31,402			—			112,182
Disposals		(20,048	)		(822	)		(761	)		(616	)		—			—			(22,247	)
Depreciation		—			(24,077	)		(72,501	)		(15,711	)		—			—			(112,289	)
Classified as held-for-sale		(6,405	)		(6,704	)		—			—			—			—			(13,109	)
Transfer		(2,290	)		(3,705	)		—			—			—			—			(5,995	)
Foreign currencies translation adjustments		2,349			1,226			5,350			3,260			237			—			12,422
Acquisitions through business combination		5,917			3,523			2,586			—			—			—			12,026
Others		422			(8	)		870			155			(2,968	)		—			(1,529	)

Ending balance		1,699,298			736,597			243,958			58,941			31,842			1			2,770,637


	For the nine-month period ended September 30, 2021
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress			Structures			Total
Beginning balance		1,726,045			787,040			268,225			50,085			8,246			2			2,839,643
Acquisitions		—			12,791			43,294			14,957			9,838			—			80,880
Disposals		—			(1,969	)		(1,430	)		(867	)		—			—			(4,266	)
Depreciation		—			(25,160	)		(69,945	)		(15,892	)		—			(1	)		(110,998	)
Classified as held-for-sale		(759	)		(1,412	)		—			—			—			—			(2,171	)
Transfer		(1,590	)		(53	)		12,606			—			(12,606	)		—			(1,643	)
Foreign currencies translation adjustments		994			654			2,695			1,458			104			—			5,905
Others		3,057			(3,066	)		(283	)		(418	)		(1,066	)		—			(1,776	)

Ending balance		1,727,747			768,825			255,162			49,323			4,516			1			2,805,574

(4)	Details of right-of-use assets as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Building			Equipment and vehicles			Total
Acquisition cost		707,576			32,333			739,909
Accumulated depreciation		(339,325	)		(14,903	)		(354,228	)

Net carrying value		368,251			17,430			385,681


	December 31, 2021
	Building			Equipment and vehicles			Total
Acquisition cost		650,906			30,559			681,465
Accumulated depreciation		(283,426	)		(12,495	)		(295,921	)

Net carrying value		367,480			18,064			385,544

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(5)	Details of changes in right-of-use assets for the nine-month periods ended September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Building			Equipment and vehicles			Total
Beginning balance		367,480			18,064			385,544
New contracts		157,667			8,391			166,058
Changes in contract		(12,217	)		45			(12,172	)
Termination		(12,768	)		(775	)		(13,543	)
Depreciation		(157,380	)		(8,352	)		(165,732	)
Acquisitions through business combination		819			—			819
Others		24,650			57			24,707

Ending balance		368,251			17,430			385,681


	For the nine-month period ended September 30, 2021
	Building			Equipment and vehicles			Total
Beginning balance		435,132			12,423			447,555
New contracts		140,112			14,390			154,502
Changes in contract		4,262			184			4,446
Termination		(42,235	)		(1,176	)		(43,411	)
Depreciation		(173,679	)		(7,898	)		(181,577	)
Others		25,273			(227	)		25,046

Ending balance		388,865			17,696			406,561

15.

INTANGIBLE ASSETS

(1)	Details of intangible assets are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		429,228		2,164			724,583			1,236,240			42,011			8,071		2,442,297
Accumulated amortization		—		(1,520	)		(518,675	)		(1,009,508	)		—			—		(1,529,703	)
Accumulated impairment losses		—		—			—			(33,552	)		(3,413	)		—		(36,965	)

Net carrying value		429,228		644			205,908			193,180			38,598			8,071		875,629


	December 31, 2021
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		345,449		2,057			661,959			1,174,565			40,955			717		2,225,702
Accumulated amortization		—		(1,334	)		(454,251	)		(947,830	)		—			—		(1,403,415	)
Accumulated impairment losses		—		—			—			(33,553	)		(3,348	)		—		(36,901	)

Net carrying value		345,449		723			207,708			193,182			37,607			717		785,386

- 99 -

(2)	Details of changes in intangible assets are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		345,449		723			207,708			193,182			37,607			717			785,386
Acquisitions		—		107			62,436			39,621			1,917			5,020			109,101
Disposal		—		—			—			(2	)		(1,131	)		—			(1,133	)
Amortization (*)		—		(186	)		(64,484	)		(55,763	)		—			—			(120,433	)
Impairment losses		—		—			—			—			(6	)		—			(6	)
Transfer		—		—			300			182			—			(482	)		—
Acquisitions through business combination		57,670		—			—			7,795			—			—			65,465
Foreign currencies translation adjustments		26,109		—			(3	)		5,622			222			818			32,768
Others		—		—			(49	)		2,543			(11	)		1,998			4,481

Ending balance		429,228		644			205,908			193,180			38,598			8,071			875,629

(*)	Amortization of other intangible assets amounting to 10,967 million Won is included in other operating expenses.


	For the nine-month period ended September 30, 2021
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		334,290		709			208,873			205,445			36,091			6,669			792,077
Acquisitions		—		128			52,793			31,258			1,607			791			86,577
Disposal		—		—			—			—			(334	)		—			(334	)
Amortization (*)		—		(170	)		(60,263	)		(51,288	)		—			—			(111,721	)
Impairment losses		—		—			—			(18	)		(133	)		—			(151	)
Transfer		—		—			3,749			2,920			—			(6,669	)		—
Foreign currencies translation adjustments		10,917		—			—			2,877			201			—			13,995
Others		—		—			—			1,064			(200	)		534			1,398

Ending balance		345,207		667			205,152			192,258			37,232			1,325			781,841

(*)	Amortization of other intangible assets amounting to 10,386 million Won is included in other operating expenses.

16.

ASSETS HELD FOR SALE

Assets held for sale are as follows (Unit: Korean Won in millions):


Assets (*)	September 30, 2022		December 31, 2021
Premises and equipment		13,692		8,900
Investments of associates		—		11,472
Others		4,089		5,955

Total		17,781		26,327

(*)	The Group classifies assets as held for sale that are highly likely to be sold within one year from September 30, 2022 and December 31, 2021.

The Group measured assets held for sale at the lower of their net fair value or carrying amount.

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17.

OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Lease assets		2,505,789		1,782,887
Prepaid expenses		389,219		189,808
Advance payments		71,068		61,042
Assets for non-business use		21,573		16,248
Others		84,814		38,965

Total		3,072,463		2,088,950

18.

FINANCIAL LIABILITIES AT FVTPL

(1)	Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Financial instruments at fair value through profit or loss measured at fair value		21,432,954		4,873,458

(2) Financial liabilities at fair value through profit or loss measured at fair value are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Deposits
Gold banking liabilities		37,737		65,016
Borrowings
Securities sold		60,081		241,174
Derivative liabilities		21,335,136		4,567,268

Total		21,432,954		4,873,458

(3)	The Group does not have financial liabilities at fair value through profit or loss designated as upon initial recognition as of September 30, 2022 and December 31, 2021

(4)	There is no cumulative change in financial liabilities at fair value through profit or loss designated as upon initial recognition due to changes in credit risk as of September 30, 2022 and December 31, 2021.

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19.

DEPOSITS DUE TO CUSTOMERS

Details of deposits due to customers by type are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Deposits in local currency
Deposits on demand		13,387,338			18,029,136
Deposits at termination		263,108,956			254,319,473
Mutual installment		23,627			24,620
Deposits on notes payables		3,507,697			2,954,066
Deposits on CMA		72,122			92,360
Certificate of deposits		4,784,299			3,586,423
Other deposits		1,222,272			1,286,719

Sub-total		286,106,311			280,292,797

Deposits in foreign currencies
Deposits in foreign currencies		46,286,957			37,643,900

Present value discount		(46,163	)		(36,826	)

Total		332,347,105			317,899,871

20.

BORROWINGS AND DEBENTURES

(1)	Details of borrowings are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Lenders	Interest rate (%)		Amount
Borrowings in local currency
Borrowings from BOK	BOK		0.3 ~ 1.3		3,073,720
Borrowings from government funds	Small Enterprise And Market Service and others		0.0 ~ 3.5		2,062,857
Others	The Korea Development Bank and others		0.0 ~ 6.3		12,376,682

Sub-total					17,513,259

Borrowings in foreign currencies
Borrowings in foreign currencies	The Export-Import Bank of Korea and others		(0.4) ~ 10.6		13,956,552
Bills sold	Others		0.0 ~ 2.1		3,474
Call money	Bank and others		0.8 ~ 7.0		785,523
Bonds sold under repurchase agreements	Other financial institutions		1.0 ~ 6.0		1,229,124
Present value discount					(87,527	)

Total					33,400,405

- 102 -


	December 31, 2021
	Lenders	Interest rate (%)		Amount
Borrowings in local currency
Borrowings from BOK	BOK		0.3		3,144,897
Borrowings from government funds	Small Enterprise And Market Service and others		0.0 ~ 2.4		2,053,611
Others	The Korea Development Bank and others		0.0 ~ 3.1		9,984,518

Sub-total					15,183,026

Borrowings in foreign currencies (*)
Borrowings in foreign currencies	JPMorgan Chase & Co. and others		(0.5) ~ 7.3		8,545,077
Bills sold	Others		0.0 ~ 1.3		9,111
Call money	Bank and others		(0.5) ~ 2.6		317,961
Bonds sold under repurchase agreements	Other financial institutions		(0.5) ~ 10.6		749,976
Present value discount					(49,692	)

Total					24,755,459

(*)	Included borrowings in foreign currencies under fair value hedge amounting to 35,694 million Won as of December 31, 2021.

(2)	Details of debentures are as follows (Unit: Korean Won in millions):


	September 30, 2022					December 31, 2021
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.8 ~ 5.2		41,222,707			0.7 ~ 3.6		37,004,942
Subordinated bonds		1.9 ~ 5.1		6,347,657			1.9 ~ 5.1		6,767,442
Other bonds		1.6 ~ 17.0		1,313,642			0.8 ~ 17.0		911,190

Sub-total				48,884,006					44,683,574

Discounts on bonds				(35,555	)				(29,710	)

Total				48,848,451					44,653,864

(*)

Included debentures under fair value hedge amounting to 3,449,598 million Won and 2,366,724 million Won as of September 30, 2022 and December 31, 2021 respectively. Also, debentures under cash flow hedge amounting to 1,470,277 million Won and 819,298 million Won are included as of September 30, 2022 and December 31, 2021 respectively.

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21.

PROVISIONS

(1)	Details of provisions are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Asset retirement obligation		83,183		80,777
Provisions for guarantees (*1)		82,523		74,866
Provisions for unused loan commitments		113,568		112,296
Other provisions (*2)		254,775		308,195

Total		534,049		576,134

(*1)	Provisions for guarantees includes provision for financial guarantee of 55,852 million Won and 53,321 million Won as of September 30, 2022 and December 31, 2021, respectively.

(*2)	Other provisions consist of provision for litigation, loss compensation and others.

(2)	Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won in millions):

Provisions for guarantees


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		52,830			15,269			6,767		74,866
Transfer to 12-month expected credit loss		1,141			(1,141	)		—		—
Transfer to expected credit loss for the entire period		(199	)		199			—		—
Transfer to credit-impaired financial assets		(3	)		(13	)		16		—
Provisions used		(3,801	)		—			—		(3,801	)
Net provision(reversal) of unused amount		(3,030	)		6,555			1,137		4,662
Others (*)		6,795			1			—		6,796

Ending balance		53,733			20,870			7,920		82,523

(*)	Recognized as a result of new financial guarantee contract valued at initial fair value.


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		64,804			16,745			8,043			89,592
Transfer to 12-month expected credit loss		2,613			(2,611	)		(2	)		—
Transfer to expected credit loss for the entire period		(160	)		160			—			—
Transfer to credit-impaired financial assets		(31	)		(163	)		194			—
Provisions used		(4,978	)		—			—			(4,978	)
Net provision(reversal) of unused amount		(4,049	)		305			(207	)		(3,951	)
Others (*)		(1,435	)		12			—			(1,423	)

Ending balance		56,764			14,448			8,028			79,240

(*)	Recognized as a result of new financial guarantee contract valued at initial fair value.

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Provisions for unused loan commitment


	For the nine-month period ended September 30, 2022
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		67,440			44,536			320			112,296
Transfer to 12-month expected credit loss		13,731			(13,645	)		(86	)		—
Transfer to expected credit loss for the entire period		(2,670	)		2,741			(71	)		—
Transfer to credit-impaired financial assets		(79	)		(299	)		378			—
Net provision(reversal) of unused amount		(8,834	)		10,040			(314	)		892
Others		380			—			—			380

Ending balance		69,968			43,373			227			113,568


	For the nine-month period ended September 30, 2021
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		63,240			55,726			3,189			122,155
Transfer to 12-month expected credit loss		13,009			(12,655	)		(354	)		—
Transfer to expected credit loss for the entire period		(2,510	)		3,161			(651	)		—
Transfer to credit-impaired financial assets		(127	)		(265	)		392			—
Reversal of unused amount		(9,785	)		(2,544	)		(303	)		(12,632	)
Others		132			—			—			132

Ending balance		63,959			43,423			2,273			109,655

(3)	Changes in asset retirement obligation for the nine-month periods ended September 30, 2022 and 2021, are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022			2021
Beginning balance		80,777			68,402
Provisions provided		3,474			1,165
Provisions used		(6,058	)		(4,415	)
Reversal of provisions unused		(22	)		(163	)
Unwinding of discount		657			384
Increase in recovery cost and others		4,355			14,873

Ending balance		83,183			80,246

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased premises as of September 30, 2022, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each premise’s lease period, and the Group has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost.

- 105 -

(4)	Changes in other provisions for the nine-month periods ended September 30, 2022 and 2021, are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022			2021
Beginning balance		308,195			221,494
Provisions provided		8,136			76,049
Provisions used		(14,016	)		(8,619	)
Reversal of provisions unused (*)		(55,531	)		(537	)
Foreign currencies translation adjustments		7,971			4,141
Others		20			23

Ending balance		254,775			292,551

(*)

The Group was investigated by U.S. prosecutors (Federal and NY State prosecutors) and other U.S. government agencies for violation of U.S. sanctions against Iran, Sudan, Syria and Cuba while providing Korean-Won settlement service for trading with Iran in the course of its business. The Office of Foreign Assets Control closed the investigation in December 2020 without imposing any other sanctions, and the New York State Financial Supervisory Service also closed the investigation in February 2022 without any additional sanctions. In June 2022, the Group reversed the provision recognized referring the opinion of an independent legal expert that there is a remote possibility of additional sanctions imposed by the U.S. prosecution on this case.

(5)

Others

The Group recognized the provision of the estimated compensation amount related to the miss-selling of the Derivative Linked Fund (DLF) incurred during 2019 and a fine expected to be imposed by the Financial Supervisory Service as the best estimate for the expenditure required to meet its obligations at the end of the reporting period.

During the period ended December 31, 2020, the Group recognized the provisions as the best estimate due to the expected losses of clients arising from the delay in the redemption of funds by Lime Asset Management and the dispute settlement by the Financial Supervisory Service. As of September 30, 2022, the provision for this case is 112.4 billion Won.

On October 22, 2021, the Group made a resolution to pay in advance for Platform Asia Fund, etc., which is being delayed in redemption at the board meeting of its subsidiary Woori Bank. The best estimate such as estimated compensation amount for expected customer losses was recognized as provision. As of the end of September 2022, the sales of Platform Asia, Heritage DLS, and Gentoo Partners DLS are 85 billion Won, 22.3 billion Won, and 90.2 billion Won, respectively, and the provisions are 35.7 billion Won, 13.4 billion Won, and 10.8 billion Won, respectively.

- 106 -

22.

NET DEFINED BENEFIT LIABILITY (ASSET)

The retirement benefit of the Group is based on the defined benefit retirement pension plan.

Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:


Volatility of asset		The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate.

Decrease in profitability of blue-chip bonds		A decrease in profitability of blue-chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation		Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1)	Details of net defined benefit liability (asset) are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Present value of defined benefit obligation		1,382,258			1,618,098
Fair value of plan assets		(1,534,467	)		(1,591,458	)

Net defined benefit liabilities (asset) (*)		(152,209	)		26,640

(*)

Net defined benefit asset amount of 152,209 million Won as of September 30, 2022 is net amount of defined benefit liability of 43,425 million Won and defined benefit asset of 195,634 million Won. Also, net definied benefit liability amount of 26,640 as of December 31, 2021 is net amount of defined benefit liability of 47,986 and defined benefit asset of 21,346 million Won.

(2)	Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):


		For the nine-month period ended September 30
		2022			2021
Beginning balance			1,618,098			1,610,680
Current service cost			124,869			133,844
Interest cost			36,131			29,821
Remeasurements	Financial assumption		(326,703	)		(72,540	)
	Demographic assumptions		—			—
	Experience adjustments		10,469			10,716
Retirement benefit paid			(82,258	)		(97,241	)
Foreign currencies translation adjustments			277			130
Others			1,375			827

Ending balance			1,382,258			1,616,237

- 107 -

(3)	Changes in the plan assets are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022			2021
Beginning balance		1,591,458			1,564,101
Interest income		37,344			30,610
Remeasurements		(15,636	)		(11,476	)
Employer’s contributions		6,000			62,509
Retirement benefit paid		(84,715	)		(96,526	)
Others		16			24

Ending balance		1,534,467			1,549,242

(4)	Fair value of plan assets as of September 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Cash and due from banks		1,534,467		1,591,458

Meanwhile, among plan assets, realized returns on plan assets amount to 21,708 million Won and 19,134 million Won for the nine-month periods ended September 30, 2022 and 2021, respectively.

(5)	The amounts recognized in net income and total comprehensive income in relation to defined benefit plans are as follows: (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022			2021
Current service cost		124,869			133,844
Net interest expense(income)		(1,213	)		(789	)

Cost recognized in net income		123,656			133,055

Remeasurements (*)		(300,598	)		(50,348	)

Cost (income) recognized in total comprehensive income		(176,942	)		82,707

(*)	Amount before tax

Meanwhile, retirement benefits related to defined contribution plans recognized as expenses are 3,266 million Won and 3,572 million Won for the nine-month periods ended September 30, 2022 and 2021, respectively.

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23.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Other financial liabilities:
Accounts payable		13,036,448			6,969,170
Accrued expenses		2,385,271			2,070,639
Borrowings from trust accounts		3,246,887			3,107,456
Agency business revenue		1,040,175			433,041
Foreign exchange payables		685,858			782,176
Domestic exchange settlement credits		3,724,376			6,708,220
Lease liabilities		341,548			343,213
Other miscellaneous financial liabilities		8,295,238			3,772,437
Present value discount		(20,018	)		(15,322	)

Sub-total		32,735,783			24,171,030

Other liabilities:
Unearned income		341,195			291,147
Other miscellaneous liabilities		356,808			265,706

Sub-total		698,003			556,853

Total		33,433,786			24,727,883

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24.

DERIVATIVES

(1)	Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):


	September 30, 2022
			Assets						Liabilities
	Nominal amount		For cash flow hedge		For fair value hedge		For trading		For cash flow hedge		For fair value hedge		For trading
Interest rate:
Futures		43,220		—		—		—		—		—		—
Forwards		2,620,000		—		—		287,300		—		—		—
Swaps		149,233,542		4,129		—		483,355		—		208,641		636,326
Purchase options		170,000		—		—		10,435		—		—		—
Written options		260,000		—		—		—		—		—		18,176
Currency:
Futures		42,872		—		—		—		—		—		—
Forwards		146,058,380		—		—		10,439,088		—		—		4,012,450
Swaps		120,162,371		126,896		—		7,396,335		—		—		14,175,911
Purchase options		969,407		—		—		45,164		—		—		—
Written options		1,335,288		—		—		—		—		—		15,299
Equity:
Futures		657,139		—		—		—		—		—		—
Forwards		233		—		—		120		—		—		—
Swaps		720,369		—		—		159,400		—		—		283
Purchase options		29,850,848		—		—		1,533,087		—		—		—
Written options		34,587,913		—		—		—		—		—		2,476,690

Total		486,711,582		131,025		—		20,354,284		—		208,641		21,335,135


	December 31, 2021
			Assets						Liabilities
	Nominal amount		For cash flow hedge		For fair value hedge		For trading		For cash flow hedge		For fair value hedge		For trading
Interest rate:
Futures		118,423		—		—		—		—		—		—
Forwards		340,000		—		—		16,434		—		—		—
Swaps		134,196,188		351		95,103		136,185		—		20,287		305,443
Purchase options		170,000		—		—		3,959		—		—		—
Written options		340,000		—		—		—		—		—		8,552
Currency:
Futures		7,445		—		—		—		—		—		—
Forwards		114,072,910		—		—		2,466,893		—		—		993,823
Swaps		101,117,559		11,310		—		1,444,634		7,297		—		2,345,735
Purchase options		1,079,610		—		—		10,968		—		—		—
Written options		1,686,787		—		—		—		—		—		8,952
Equity:
Futures		337,916		—		—		—		—		—		—
Forwards		233		—		—		64		—		—		—
Swaps		642,963		—		—		27,031		—		—		3,784
Purchase options		17,503,553		—		—		696,963		—		—		—
Written options		19,106,573		—		—		—		—		—		900,979

Total		390,720,160		11,661		95,103		4,803,131		7,297		20,287		4,567,268

- 110 -

Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 18), and derivatives designated for hedging are presented as a separate line item in the consolidated statements of financial position.

(2)	Overview of the Group’s hedge accounting

The hedging relationships that the Group applies fair value hedge accounting and cash flow hedge accounting to are affected by interest rate which is related with Interest Rate Benchmark Reform. The interest rates to which the hedging relationships are exposed are USD 1M LIBOR, USD 3M LIBOR Compounding SOFR, AUD 3M BBSW, CD 3M. The nominal amounts of hedging instruments related to Group are USD 203,335,000, USD 1,950,000,000, USD 525,000,000, AUD 150,000,000 and 150,000 million Won, respectively. The Group pays close attention to discussions in the market and industry regarding the applicable alternative benchmark interest rates for the exposed interest rate. The Group determined that such uncertainty is expected to be no longer exist when the exposed interest rates are replaced by the applicable benchmark interest rates.

Fair value hedge

As of the September 30, 2022, the Group has applied fair value hedge on fixed interest rate debentures on local currency amounting to 145,517 million Won and debentures on foreign currency amounting to 3,304,081 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign currency denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments.

Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is hedged as the foreign currency denominated debentures fixed interest rate terms are converted to floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value of hedging instrument to the face value of the hedged item.

In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument.

The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Group expects the fair value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction.

The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is USD Libor 3M AUD BBSW 3M, Compounding SOFR or CD 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate and pays interest at a variable interest rate.

- 111 -

Cash Flow Hedge

As of the September 30, 2022, the Group has applied cash flow hedge on local currency amounting to 229,878 million Won, debentures on foreign currency amounting to 1,240,399 million Won. The Group’s hedging strategies are to ① Mitigate risks of cash flow fluctuation from variable interest rate debentures on local currency due to changes in market interest rate by entering into an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of cash flow fluctuation from principal and interest of variable interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and interest rates by entering into a currency swap contract and thereby designating it as hedging instrument; ③ Mitigate the risks of cash flow fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency due to changes in foreign exchange rates by entering into a currency swap contract and thereby designating it as hedging instrument and ④ Mitigate the risks of cash flow fluctuation in variable interest rate foreign currency borrowings resulting from changes in market interest rates and designate it as a hedging instrument through entering into currency swap contracts and interest rate swap contracts.

This means exchanging a predetermined nominal amount as set forth in the interest rate swap contract adjusted by the differences between the fixed and variable interest rates, which results in the conversion of interest rates of debentures in local currency from variable interest into fixed interest, eliminating the cash flow fluctuation risk.

In addition, this also means a payment of predetermined principal amount as set forth in the currency swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest rate to USD or applying fixed interest rate to USD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest.

The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face amount of the hedged item in accordance with interest rate swap and currency swap.

Only interest rate and foreign exchange rate fluctuation risk, which are the most significant factor in the cash flow fluctuation of the hedged item, is addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging.

Accordingly, hedge ineffectiveness may arise from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction.

The interest rate swap, currency swap contract and the hedged item are all affected by the changes in market interest rate and foreign exchange rates which are basic factors of the derivative. The Group expects that the value of interest rate swap contract, currency swap contract and value of the hedged item will generally fluctuate in opposite direction.

Hedges of Net Investment in Foreign Operations

Foreign currency exposure arises from the Group’s net investments in Woori America Bank, Woori Cambodia Bank and Hong Kong Woori Investment Bank, which use USD as their functional currency. The risk arises from fluctuations in the spot exchange rate between USD and KRW. This may result in different net investment amounts.

The risk hedged in the net investment hedging is the weakness of KRW against USD, which may reduce the carrying amount of the Group’s net investments in Woori America Bank, Woori Cambodia Bank and Hong Kong Woori Investment Bank.

A portion of the Group’s net investments in Woori America Bank, Woori Cambodia Bank and Hong Kong Woori Investment Bank are hedged in USD denominated foreign currency bonds(Carrying amount as of September 30, 2022: USD 864,390,437) and mitigate foreign exchange risk arising from the net assets of subsidiaries.

- 112 -

The bonds was designated as a hedging instrument for changes in the value of net investment resulting from fluctuations in the USD/KRW spot exchange rate.

To assess the effectiveness of the hedging instrument, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing (offsetting) changes in the carrying amount of the liability due to changes in the spot exchange rate with changes. The Group’s policy is to hedge the net investment only within the principal range of the liability.

(3)	The nominal amounts of the hedging instrument are as follows (Unit: USD, AUD, EUR and Korean Won in millions):


	September 30, 2022
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swap (USD)		—		2,075,000,000		300,000,000		2,375,000,000
Interest rate swap (AUD)		—		150,000,000		—		150,000,000
Interest rate swap (KRW)		—		150,000		—		150,000
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		—		190,000		—		190,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		33,335,000		270,000,000		—		303,335,000
Foreign currencies translation risk
Currency swap (USD)		80,000,000		180,000,000		—		260,000,000
Currency swap (EUR)		—		194,780,000		—		194,780,000
Hedges of net investment in foreign operations
Exchange risk
Foreign currency bond (USD)		272,390,437		592,000,000		—		864,390,437


	December 31, 2021
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swap (USD)		—		1,550,000,000		300,000,000		1,850,000,000
Interest rate swap (AUD)		—		150,000,000		—		150,000,000
Interest rate swap (EUR)		—		26,591,163		—		26,591,163
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		—		50,000		—		50,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		200,000,000		270,000,000		—		470,000,000
Foreign currencies translation risk
Currency swap (USD)		—		180,000,000		—		180,000,000

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(4)	The average interest rate and average currency rate of the hedging instrument as of September 30, 2022 and December 31, 2021 are as follows:


		September 30, 2022
		Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)		Fixed 3.62% receipt and Libor 3M + 1.45% paid
Interest rate swap (USD)		Fixed 2.05% receipt and (C.SOFR) + 0.65% paid
Interest rate swap (AUD)		Fixed 0.84% receipt and BBSW 3M + 0.72% paid
Interest rate swap (KRW)		Fixed 3.13% receipt and CD 3M paid
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		KRW CMS 5Y + 0.46% receipt, KRW 3.65% paid
Interest rate swap (KRW)		KRW CD+0.33% receipt, KRW 1.68% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		USD 1M Libor + 0.79% receipt, KRW 0.80% paid, USD/KRW = 1,226.29
Foreign currencies translation risk
Currency swap (USD)		USD 1.50% receipt, KRW 1.57% paid, USD/KRW = 1,140.50
Currency swap (EUR)		EUR 1.98% receipt, KRW 3.86% paid, EUR/KRW = 1,344.08
Hedges of net investment in foreign operations
Currency Risk
Foreign currency bond (USD)		Libor 3M + 0.81% paid
Foreign currency bond (USD)		USD C-SOFR+0.83% paid


		December 31, 2021
		Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)		Fixed 3.62% receipt and Libor 3M + 1.45% paid
Interest rate swap (AUD)		Fixed 0.84% receipt and BBSW 3M + 0.72% paid
Interest rate swap (EUR)		EURIBOR 3M + 0.09% receipt and 1.5% fixed paid
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		KRW CD + 0.33% receipt, 1.68% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		USD 1M Libor + 0.70% receipt, KRW 0.93% paid, USD/KRW = 1,206.60
Foreign currencies translation risk
Currency swap (USD)		USD 1.50% receipt, KRW 1.57% paid, USD/KRW = 1,140.50

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(5)	The amounts related to items designated as hedging instruments are as follows (Unit: USD, AUD, EUR and Korean Won in millions):


	September 30, 2022
	Nominal amounts of the hedging instrument		Carrying amounts of the hedging instrument				Line item in the statement of financial position where the hedging instrument is located		Changing in fair value used for calculating hedge ineffectiveness
	Nominal amounts of the hedging instrument		Assets		Liabilities
Fair value hedge
Interest rate risk
Interest rate Swap (USD)		2,375,000,000						Derivative assets (designated for hedging)
Interest rate Swap (AUD)		150,000,000		—		208,641		Derivative liabilities (designated for hedging)		(278,133	)
Interest rate Swap (KRW)		150,000
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		190,000		4,129		—		Derivative liabilities (designated for hedging)		3,778
Foreign currency translation risk and interest rate risk
Currency swap (USD)		303,335,000		72,923		—		Derivative liabilities (designated for hedging)		106,233
Foreign currency translation risk
Currency swap (USD)		260,000,000		46,300		—		Derivative liabilities (designated for hedging)		39,471
Currency swap (EUR)		194,780,000		7,673		—				7,458
Hedges of net investment in foreign operations
Exchange rate risk
Foreign currency bond (USD)		864,390,437		—		1,240,227		Foreign currency bond		(173,246	)

	December 31, 2021
	Nominal amounts of the hedging instrument		Carrying amounts of the hedging instrument				Line item in the statement of financial position where the hedging instrument is located		Changing in fair value used for calculating hedge ineffectiveness
	Nominal amounts of the hedging instrument		Assets		Liabilities
Fair value hedge
Interest rate risk
Interest rate Swap (USD)		1,850,000,000						Derivative assets (designated for hedging
Interest rate Swap (AUD)		150,000,000		95,086		20,287		Derivative liabilities (designated for hedging)		57,221
Interest rate Swap (EUR)		26,591,163
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		50,000		351		—		Derivative liabilities (designated for hedging)		1,896
Foreign currency translation risk and interest rate risk
Currency swap (USD)		470,000,000		3,631		7,297		Derivative liabilities (designated for hedging)		60,564
Foreign currency translation risk
Currency swap (USD)		180,000,000		7,679		—		Derivative liabilities (designated for hedging)		8,218

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(6)	Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Carrying amounts of the hedged item				Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item				Line item in the statement of financial position in which the hedged item is included		Changing in fair value used for calculating hedge ineffectiveness			Cash flow hedge reserve (*)
	Assets		Liabilities		Assets		Liabilities							Cash flow hedge reserve (*)
Fair value hedge
Interest rate risk
Debentures		—		3,449,598		—		235,756		Debentures		300,335			—
Cash flow hedge
Interest rate risk
Debentures		—		229,878		—		—		Debentures		(3,742	)		2,994
Foreign currencies translation risk and interest rate risk
Debentures		—		435,022		—		—		Debentures		(80,196	)		9,576
Foreign currencies translation risk
Debentures		—		805,377		—		—		Debentures		(54,386	)		(14,716	)
Hedges of net investment in foreign operations
Exchange rate risk
Foreign operations net asset		—		1,240,227		—		—		Foreign operations net asset		173,246			125,603

(*)	After tax amount


	December 31, 2021
	Carrying amounts of the hedged item				Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item				Line item in the statement of financial position in which the hedged item is included		Changing in fair value used for calculating hedge ineffectiveness			Cash flow hedge reserve (*)
	Assets		Liabilities		Assets		Liabilities							Cash flow hedge reserve (*)
Fair value hedge
Interest rate risk
Debentures		—		2,366,724		—		53,160		Debentures		100,343			—
Foreign currency borrowing		—		35,694		—		—		Foreign currency borrowings		(17	)		(17	)
Cash flow hedge
Interest rate risk
Debentures		—		49,977		—		—		Debentures		(1,760	)		281
Foreign currencies translation risk and interest rate risk
Debentures		—		556,607		—		—		Debentures		(53,832	)		5,859
Foreign currencies translation risk
Debentures		—		212,715		—		—		Debentures		(7,609	)		(305	)

(*)	After tax amount

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(7)	Amounts recognized in profit or loss due to the ineffective portion of fair value hedges are as follows (Unit: Korean Won in millions):


		For the nine-month period ended September 30, 2022
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss that includes hedge ineffectiveness
Fair value hedge	Interest rate risk		22,202	Other net operating income (expense)
	Foreign exchange rate risk		—	Other net operating income (expense)


		For the nine-month period ended September 30, 2021
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss that includes hedge ineffectiveness
Fair value hedge	Interest rate risk		15,263	Other net operating income (expense)
	Foreign exchange rate risk		479	Other net operating income (expense)

(8)	Reclassification of profit or loss from other comprehensive income and equity related to cash flow hedges are as follows (Unit: Korean Won in millions):


		For the nine-month period ended September 30, 2022
		Changes in the value of hedging instruments recognized in OCI		Hedge ineffectiveness recognized in profit or loss			Changes in the value of foreign basis spread recognized in OCI			Line item recognized in the profit or loss	Amounts reclassified from cash flow hedge reserve to profit or loss			Line item affected in profit or loss due to reclassification
Cash flow hedge	Interest rate risk		3,742		37			—		Other net operating income (expense)		—		Other net operating income (expense)
	Foreign currencies translation risk and interest rate risk		106,233		—			(3,608	)	Other net operating income (expense)		(98,908	)	Other net operating income (expense)
	Foreign currencies translation risk		46,929		—			(635	)	Other net operating income (expense)		(57,486	)	Other net operating income(expense)

		For the nine-month period ended September 30, 2021
		Changes in the value of hedging instruments recognized in OCI		Hedge ineffectiveness recognized in profit or loss			Changes in the value of foreign basis spread recognized in OCI			Line item recognized in the profit or loss	Amounts reclassified from cash flow hedge reserve to profit or loss			Line item affected in profit or loss due to reclassification
Cash flow hedge	Interest rate risk		1,518		91			—		Other net operating income (expense)		—		Other net operating income (expense)
	Foreign currencies translation risk and interest rate risk		59,263		169			(1,628	)	Other net operating income (expense)		(26,041	)	Other net operating income (expense)
	Foreign currencies translation risk		10,169		(258	)		(223	)	Other net operating income (expense)		(95	)	Other net operating income (expense)

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(9)	The amounts recognized in profit or loss and other comprehensive income related to the hedging of net investments in foreign operations are as follows (Unit: Korean Won in millions):

For the nine-month period ended September 30, 2022

Profit or loss
recognized in OCI

Hedge ineffectiveness
recognized in profit or loss

Line item which
recognized the hedge
ineffectiveness

Hedges of net investment in foreign operation

Exchange rate risk

125,603

—

25.

DEFERRED DAY 1 PROFITS OR LOSSES

Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022			2021
Beginning balance		29,111			6,939
New transactions		21,659			43,471
Amounts recognized in losses		(23,162	)		(24,674	)

Ending balance		27,608			25,736

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded as the transaction price at the time of acquisition, even though there are difference noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or loss at the end of September 30, 2022 and 2021.

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26.

EQUITY

(1)	Details of equity as of September 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Capital
Common stock capital		3,640,303			3,640,303
Hybrid securities		2,892,989			2,294,381
Capital surplus
Paid in capital in excess of par		643,544			643,544
Others		38,841			38,841

Sub-total		682,385			682,385

Capital adjustments
Treasury stock		(3,819	)		(3,819	)
Other adjustments (*1)		(1,780,367	)		(1,747,242	)

Sub-total		(1,784,186	)		(1,751,061	)

Accumulated other comprehensive income
Financial assets at FVTOCI		(867,218	)		(162,522	)
Changes in capital due to equity method		2,064			(138	)
Gain(loss) from foreign business translation		489,062			(63,781	)
Loss from hedges of net investment in foreign operations		(125,603	)		—
Remeasurements of defined benefit plan		21,983			(195,944	)
Gain on evaluation of cash flow hedge		2,510			5,553
Capital related to noncurrent assets held for sale		—			279

Sub-total		(477,202	)		(416,553	)

Retained earnings (2) (3)		23,298,284			21,392,564
Non-controlling interest (*4)		2,875,841			3,008,176

Total		31,128,414			28,850,195

(*1)	Included 178,060 million Won in capital transaction gains and losses recognized by Woori Bank and (formerly) Woori Financial Group in 2014 and 2,238,228 million Won due to the spin-off of Gyeongnam Bank and Gwangju Bank.

(*2)	The regulatory reserve for credit losses in retained earnings amounted to 2,966,960 million Won and 2,568,367 million Won as of September 30, 2022 and December 31, 2021, respectively in accordance with the relevant article.

(*3)	The earned surplus reserve in retained earnings amounted to 181,860 million Won and 122,370 million Won as of September 30, 2022 and December 31, 2021 in accordance with the Article 53 of the Financial Holding Company Act.

(*4)

The hybrid securities issued by Woori Bank amounting to 2,334,816 million Won and 2,555,166 million Won as of September 30, 2022 and December 31, 2021, respectively, are recognized as non-controlling interests. 77,290 million Won and 100,158 million Won of dividends for the hybrid securities issued by Woori Bank are allocated to net profit and loss of the non-controlling interests for the nine-month period ended September 30, 2022 and 2021, respectively.

(2)	The number of authorized shares and others of the Group are as follows:


	September 30, 2022		December 31, 2021
Shares of common stock authorized		4,000,000,000 Shares		4,000,000,000 Shares
Par value		5,000 Won		5,000 Won
Shares of common stock issued		728,060,549 Shares		728,060,549 Shares
Capital stock		3,640,303 million Won		3,640,303 million Won

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(3)	Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):


	Issue date		Maturity	Interest rate (%)		September 30, 2022			December 31, 2021
Securities in local currency		2019-07-18	—		3.49		500,000			500,000
Securities in local currency		2019-10-11	—		3.32		500,000			500,000
Securities in local currency		2021-02-06	—		3.34		400,000			400,000
Securities in local currency		2021-06-12	—		3.23		300,000			300,000
Securities in local currency		2021-10-23	—		3.00		200,000			200,000
Securities in local currency		2022-04-08	—		3.15		200,000			200,000
Securities in local currency		2021-10-14	—		3.60		200,000			200,000
Securities in local currency		2022-02-17	—		4.10		300,000			—
Securities in local currency		2022-07-28	—		4.99		300,000			—
Issuance cost							(7,011	)		(5,619	)

Total							2,892,989			2,294,381

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date of issuance.

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(4)	Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain(loss) on valuation of financial assets at FVTOCI		(162,522	)		(970,590	)		8,846			257,048			(867,218	)
Changes in capital due to equity method		(138	)		3,173			—			(971	)		2,064
Gain(loss) on foreign currency translation of foreign operations		(63,781	)		569,194			—			(16,351	)		489,062
Gain(loss) on hedges of net investment in foreign operations		—			(173,246	)		—			47,643			(125,603	)
Remeasurement gain(loss) related to defined benefit plan		(195,944	)		300,589			—			(82,662	)		21,983
Gain(loss) on valuation of derivatives designated as cash flow hedges		5,553			(4,176	)		(21	)		1,154			2,510
Capital related to non-current assets held for sale		279			(385	)		—			106			—

Total		(416,553	)		(275,441	)		8,825			205,967			(477,202	)

(*)

The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive income and capital related to noncurrent assets held for sale is a change due to the period evaluation and the reclassification adjustments amounting to 10,343 million Won and (279) million Won are due to disposal of equity securities at FVTOCI and assets held for sale during the period.


	For the nine-month period ended September 30, 2021
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain(loss) on valuation of financial assets at FVTOCI		(9,833	)		(40,336	)		(45,830	)		21,900			(74,099	)
Changes in capital due to equity method		(2,609	)		5,445			—			(1,961	)		875
Gain(loss) on foreign currency translation of foreign operations		(298,363	)		228,423			—			(4,542	)		(74,482	)
Remeasurement gain(loss) related to defined benefit plan		(261,195	)		50,334			—			(13,842	)		(224,703	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		(1,386	)		4,340			1,221			(242	)		3,933
Capital related to non-current assets held for sale		1,226			(1,242	)		—			341			325

Total		(572,160	)		246,964			(44,609	)		1,654			(368,151	)

(*)

The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive income and capital related to non-current assets held for sale is a change due to the period evaluation and the reclassification adjustments amounting to (1,354) million Won, 906 million Won and (901) million Won are due to disposal of equity securities at FVTOCI, investment stocks accounted for using the equity method and assets held for sale during the period.

- 121 -

(5)	Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Group calculates and discloses the regulatory reserve for credit loss.

Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Beginning balance		2,966,960			2,568,367
Planned provision(reversal) of regulatory reserve for credit loss		(67,358	)		398,593

Ending balance		2,899,602			2,966,960

Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):


	Periods ended September 30, 2022						Periods ended September 30, 2021
	Three-month			Nine-month			Three-month			Nine-month
Net income before regulatory reserve		933,385			2,792,689			824,396			2,361,647
Provision(reversal) of regulatory reserve for credit loss		(28,262	)		(67,358	)		111,154			275,001
Adjusted net income after the provision of regulatory reserve		961,647			2,860,047			713,242			2,086,646
Dividends to hybrid securities		(22,225	)		(63,600	)		(17,350	)		(48,900	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		939,422			2,796,447			695,892			2,037,746
Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)		1,291			3,843			959			2,817

(6)	Treasury stocks

Changes in treasury stocks for the nine-month periods ended September 30, 2022 and 2021 are as follows (Unit: number of shares and Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Number of shares		Carrying amount		Number of shares		Carrying amount
Beginning balance		343,991		3,819		2		—
Acquisition		—		—		343,989		3,819
Disposal		—		—		—		—
Ending balance		343,991		3,819		343,991		3,819

- 122 -

27.

DIVIDENDS

(1)	Dividends per share and the total dividends for the fiscal year ending December 31, 2021 were 750 Won and 546,044 million Won, respectively, and the dividends were approved at the regular general shareholders’ meeting held on March 25, 2022 and were paid in April 2022.

(2)	On July 22, 2022, in accordance with a resolution of the Board of Directors, the Group declared the interim dividend of 150 Won per share (total dividend of 109,209 million Won) with June 30, 2022, and the dividends were paid in August 2022.

28.

NET INTEREST INCOME

(1)	Details of interest income recognized is as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Financial assets at FVTPL		30,153		67,888		10,866		33,286
Financial assets at FVTOCI		160,952		452,534		90,588		266,195
Financial assets at amortized cost
Securities at amortized cost		135,655		323,763		78,259		239,631
Loans and other financial assets at amortized cost
Interest on due from banks		73,087		113,240		12,516		32,454
Interest on loans		3,412,647		9,050,827		2,283,458		6,598,961
Interest of other receivables		12,407		30,064		7,293		22,924

Subtotal		3,498,141		9,194,131		2,303,267		6,654,339

Total		3,824,901		10,038,316		2,482,980		7,193,451

(2)	Details of interest expense recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Interest on deposits due to customers		1,070,504		2,512,075		454,996		1,367,342
Interest on borrowings		171,743		355,431		68,475		164,340
Interest on debentures		282,637		701,150		178,881		538,037
Other interest expense		53,754		116,436		12,576		29,289
Interest on lease liabilities		1,937		5,576		1,800		5,572

Total		1,580,575		3,690,668		716,728		2,104,580

- 123 -

29.

NET FEES AND COMMISSIONS INCOME

(1)	Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Fees and commission received for brokerage		45,375		115,647		46,249		142,240
Fees and commission received related to credit		45,010		148,129		47,497		154,306
Fees and commission received for electronic finance		32,730		98,682		32,942		99,638
Fees and commission received on foreign exchange handling		14,675		42,485		13,952		41,491
Fees and commission received on foreign exchange		25,834		70,779		19,491		51,430
Fees and commission received for guarantee		14,003		62,115		19,974		56,046
Fees and commission received on credit card		150,342		446,091		140,717		419,240
Fees and commission received on securities business		23,973		80,663		25,768		83,513
Fees and commission from trust management		65,439		203,946		57,372		155,807
Fees and commission received on credit information		2,657		7,754		2,456		7,555
Fees and commission received related to lease		150,851		413,028		97,498		266,132
Other fees		53,635		146,808		42,199		134,633

Total		624,524		1,836,127		546,115		1,612,031

(2)	Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Fees and commissions paid		77,248		223,751		59,330		186,319
Credit card commission		118,646		330,355		106,664		310,180
Brokerage commission		394		1,081		587		1,143
Others		3,716		10,036		3,212		8,613

Total		200,004		565,223		169,793		506,255

30.

DIVIDEND INCOME

(1)	Details of dividend income recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Dividend income related to financial assets at FVTPL		40,774		101,129		128,710		243,152
Dividend income related to financial assets at FVTOCI		3,539		22,106		3,489		19,785

Total		44,313		123,235		132,199		262,937

(2)	Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

Periods ended September 30, 2022

Periods ended September 30, 2021

Three-month

Nine-month

Three-month

Nine-month

Dividend income recognized from assets held

Equity securities

3,539

22,106

3,489

19,785

- 124 -

31.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE

(1)	Details of gains or losses related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Gain(loss) on financial instruments at FVTPL measured at fair value		328,551		669,978		101,797		238,102
Gain(loss) on financial instruments at FVTPL designated as upon initial recognition		—		—		—		102

Total		328,551		669,978		101,797		238,204

(2)	Details of net gain or loss on financial instruments at fair value through profit or loss measured at fair value and financial instruments held for trading are as follows (Unit: Korean Won in millions):


			Periods ended September 30, 2022						Periods ended September 30, 2021
			Three-month			Nine-month			Three-month			Nine-month
Financial assets at FVTPL	Securities	Gain on transactions and valuation		50,715			315,146			51,753			197,197
		Loss on transactions and valuation		(285,307	)		(620,011	)		(65,275	)		(164,756	)

		Sub-total		(234,592	)		(304,865	)		(13,522	)		32,441

	Loans	Gain on transactions and valuation		1,747			10,268			4,288			18,377
		Loss on transactions and valuation		608			(1,922	)		(331	)		(4,412	)

		Sub-total		2,355			8,346			3,957			13,965

	Other financial assets	Gain on transactions and valuation		4,431			20,908			6,121			13,940
		Loss on transactions and valuation		(3,205	)		(11,396	)		(4,847	)		(10,259	)

		Sub-total		1,226			9,512			1,274			3,681

Sub-total				(231,011	)		(287,007	)		(8,291	)		50,087

Derivatives (Held for trading)	Interest rates derivatives	Gain on transactions and valuation		2,147,630			4,768,289			456,140			1,302,063
		Loss on transactions and valuation		(1,517,085	)		(3,171,025	)		(423,691	)		(1,169,665	)

		Sub-total		630,545			1,597,264			32,449			132,398

	Currency derivatives	Gain on transactions and valuation		11,943,991			21,870,380			4,498,144			9,030,249
		Loss on transactions and valuation		(11,951,370	)		(22,450,056	)		(4,413,937	)		(8,980,937	)

		Sub-total		(7,379	)		(579,676	)		84,207			49,312

	Equity derivatives	Gain on transactions and valuation		1,376,789			2,937,561			303,661			1,368,291
		Loss on transactions and valuation		(1,440,431	)		(2,998,219	)		(307,253	)		(1,358,205	)

		Sub-total		(63,642	)		(60,658	)		(3,592	)		10,086

	Other derivatives	Gain on transactions and valuation		38			55			—			—
		Loss on transactions and valuation		—			—			(2,976	)		(3,781	)

		Sub-total		38			55			(2,976	)		(3,781	)

Sub-total				559,562			956,985			110,088			188,015

Net total				328,551			669,978			101,797			238,102

- 125 -

(3)	Details of net gain (loss) on financial instruments at fair value through profit or loss designated as upon initial recognition and Losses on financial instruments designated as at fair value through profit or loss are as follows (Unit: Korean Won in millions):

Periods ended September 30, 2022

Periods ended September 30, 2021

Three-month

Nine-month

Three-month

Nine-month

Gain(loss) on equity-linked securities

—

102

32.

NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022						Periods ended September 30, 2021
	Three-month			Nine-month			Three-month			Nine-month
Gain(loss) on redemption of securities		1			(7	)		(8	)		(18	)
Gain(loss) on transactions of securities		(7,197	)		(8,839	)		779			45,848

Total		(7,196	)		(8,846	)		771			45,830

33.

REVERSAL OF (PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Reversal of (provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022						Periods ended September 30, 2021
	Three-month			Nine-month			Three-month			Nine-month
Impairment loss due to credit loss on financial assets measured at FVTOCI		(407	)		(187	)		(468	)		(2,565	)
Provision for impairment loss due to credit loss on securities at amortized cost		(1,699	)		(2,534	)		(327	)		(34	)
Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost		(130,248	)		(613,759	)		(104,930	)		(325,645	)
Reversal of(provision for) provision on guarantee		5,007			(4,662	)		(3,646	)		3,951
Reversal of(provision for) unused loan commitment		2,176			(892	)		2,286			12,632

Total		(125,171	)		(622,034	)		(107,085	)		(311,661	)

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34.

GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME (EXPENSES)

(1)	Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):


			Periods ended September 30, 2022					Periods ended September 30, 2021
			Three-month			Nine-month		Three-month		Nine-month
Employee benefits	Short-term employee benefits	Salaries		424,736			1,250,909		405,650		1,199,919
		Employee fringe benefits		126,582			424,465		131,487		400,739
	Share based payment			(2,818	)		3,584		2,344		10,202
	Retirement benefit service costs			42,450			126,922		45,625		136,627
	Termination			—			118		279		834

		Subtotal		590,950			1,805,998		585,385		1,748,321

Depreciation and amortization				125,216			387,487		129,405		393,910

Other general and administrative expenses	Rent			25,585			68,348		22,781		63,517
	Taxes and public dues			32,326			123,266		28,751		107,280
	Service charges			58,483			171,755		58,564		172,279
	Computer and IT related			32,838			92,859		30,275		85,509
	Telephone and communication			20,657			60,009		19,437		57,049
	Operating promotion			14,853			39,214		10,465		29,424
	Advertising			39,777			84,740		21,356		49,707
	Printing			1,407			4,275		1,262		4,282
	Traveling			3,050			7,632		1,801		5,170
	Supplies			1,975			5,967		1,887		5,299
	Insurance premium			3,518			9,284		2,578		7,618
	Maintenance			5,924			16,468		5,457		15,235
	Water, light, and heating			4,472			12,451		3,943		11,270
	Vehicle maintenance			4,024			10,796		3,043		8,245
	Others			14,668			36,276		10,958		28,726

		Sub-total		263,557			743,340		222,558		650,610

	Total			979,723			2,936,825		937,348		2,792,841

(2)	Details of other operating income recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Gain on transactions of foreign exchange		144,095		467,748		75,413		408,153
Gain related to derivatives (Designated for hedging)		88,198		157,349		34,583		61,060
Gain on fair value hedged items		101,351		300,335		11,664		72,926
Others		56,869		199,834		16,537		68,751

Total		390,513		1,125,266		138,197		610,890

(3)	Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Losses on transactions of foreign exchange		570,930		958,899		135,178		352,476
KDIC deposit insurance premium		107,137		313,647		103,039		301,257
Contribution to miscellaneous funds		103,319		298,507		94,309		270,910
Losses related to derivatives (Designated for hedging)		97,293		280,649		8,242		61,601
Losses on fair value hedged items		—		—		1,947		1,947
Others (*)		178,293		489,308		95,697		281,962

Total		1,056,972		2,341,010		438,412		1,270,153

(*)

Other expense includes such expenses amounting to 10,967 million Won and 10,386 million Won, respectively, of intangible asset amortization expense and expenses amounting to 280,931 million Won and 177,592 million Won, respectively, of lease asset amortization expense for the nine-month periods ended September 30, 2022 and 2021, respectively.

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(4)	Share-based payment

Details of performance condition share-based payment granted to executives as of September 30, 2022 and December 31, 2021 are as follows.

Performance condition share-based payment


Subject to		Shares granted for the year 2019
Type of payment		Cash-settled
Vesting period		January 1, 2019 ~ December 31, 2022
Date of payment		2023-01-01
Fair value (*1)		11,293 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		0.25 years
Number of shares remaining	As of September 30, 2022	602,474 shares
	As of December 31, 2021	602,474 shares
Number of shares granted (*2)	As of September 30, 2022	602,474 shares
	As of December 31, 2021	602,474 shares
Subject to		Shares granted for the year 2020
Type of payment		Cash-settled
Vesting period		January 1, 2020 ~ December 31, 2023
Date of payment		2024-01-01
Fair value (*1)		10,737 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		1.25 years
Number of shares remaining	As of September 30, 2022	944,343 shares
	As of December 31, 2021	944,343 shares
Number of shares granted (*2)	As of September 30, 2022	944,343 shares
	As of December 31, 2021	944,343 shares
Subject to		Shares granted for the year 2021
Type of payment		Cash-settled
Vesting period		January 1, 2021 ~ December 31, 2024
Date of payment		2025-01-01
Fair value (*1)		10,208 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		2.25 years
Number of shares remaining	As of September 30, 2022	1,105,515 shares
	As of December 31, 2021	1,105,515 shares
Number of shares granted (*2)	As of September 30, 2022	1,105,515 shares
	As of December 31, 2021	1,105,515 shares
Subject to		Shares granted for the year 2022
Type of payment		Cash-settled
Vesting period		January 1, 2022 ~ December 31, 2025
Date of payment		2026-01-01
Fair value (*1)		9,706 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05 %
Expected maturity date		3.25 years
Number of shares remaining	As of September 30, 2022	726,163 shares
	As of December 31, 2021	—
Number of shares granted (*2)	As of September 30, 2022	726,163 shares
	As of December 31, 2021	—

- 128 -

(*1)

As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated to measure the liability according to the Black Scholes model based on the base price at the time of each settlement.

(*2)

It is a system in which the amount of stock payable is determined at the beginning, and the payment rate is determined in accordance with the degree of achievement of the pre-set performance target. Performance is evaluated by long-term performance indicators such as relative shareholder return, net profit, return on equity (ROE), non-performing loan ratio, and job performance.

The Group accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of September 30, 2022 and December 31, 2021, the book value of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 35,276 million Won and 31,597 million Won, respectively, including the book value of liabilities related to key management of 16,736 million Won and 13,319 million Won, respectively.

- 129 -

35.

NON-OPERATING INCOME (EXPENSES)

(1)	Details of gains or losses on valuation of investments in joint ventures and associates are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022					Periods ended September 30, 2021
	Three-month		Nine-month			Three-month		Nine-month
Gains on valuation of investments in joint ventures and associates		31,820		70,978			18,847		57,549
Losses on valuation of investments in joint ventures and associates		280		(13,866	)		1,694		(9,977	)
Impairment losses of investments in joint ventures and associates		—		(17,727	)		—		(790	)

Total		32,100		39,385			20,541		46,782

(2)	Details of other non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022						Periods ended September 30, 2021
	Three-month			Nine-month			Three-month			Nine-month
Other non-operating incomes		18,818			133,077			92,821			159,152
Other non-operating expenses		(33,261	)		(119,007	)		(70,148	)		(128,812	)

Total		(14,443	)		14,070			22,673			30,340

(3)	Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022					Periods ended September 30, 2021
	Three-month			Nine-month		Three-month			Nine-month
Rental fee income		5,336			18,225		4,583			13,747
Gains on disposal of investments in joint ventures and associates		38			599		70,644			70,644
Gains on disposal of premises and equipment, intangible assets and other assets		267			41,986		12,977			46,322
Reversal of impairment loss of premises and equipment, intangible assets and other assets		(32	)		136		(4	)		92
Others (*)		13,209			72,131		4,621			28,347

Total		18,818			133,077		92,821			159,152

(*)	Others include other extraordinary gains related to other provisions amount of 49,055 million Won for the nine-month periods ended September 30, 2022.

(4)	Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended September 30, 2022				Periods ended September 30, 2021
	Three-month		Nine-month		Three-month		Nine-month
Depreciation on investment properties		980		2,958		695		2,106
Operating expenses on investment properties		380		1,034		301		868
Losses on disposal of investments in joint ventures and associate		—		116		110		110
Losses on disposal of premises and equipment, intangible assets and other assets		735		2,222		1,135		2,933
Impairment losses of premises and equipment, intangible assets and other assets		55		390		2		641
Donation		23,568		28,411		3,473		25,516
Others (*)		7,543		83,876		64,432		96,638

Total		33,261		119,007		70,148		128,812

(*)	Others include other extraordinary losses related to embezzlement amount of 62,196 million Won and other extraordinary losses related to other provisions amount of 99 million Won for the nine-month periods ended September 30, 2022.

Others include other extraordinary losses related to other provisions amount of 69,769 million Won for the nine-month periods ended September 30, 2021.

- 130 -

36.

INCOME TAX EXPENSE

Details of income tax expenses are as follows (Unit: Korean Won in millions):


	For the nine-month periods ended September 30
	2022			2021
Current tax expense
Current tax expense with respect to the current period		1,082,374			710,901
Adjustments recognized in the current period in relation to the tax expense of prior periods		(13,917	)		(18,714	)

Sub-total		1,068,457			692,187

Deferred tax expense
Change in deferred tax assets(liabilities) due to temporary differences		(310,878	)		97,242
Income tax expense directly attributable to equity		205,967			1,654
Others		(116	)		—

Sub-total		(105,027	)		98,896

Income tax expense		963,430			791,083

Income tax expense was recognized based on the estimate of the best weighted average annual effective tax rate expected for the interim period. The weighted average annual effective tax rate for the September 30, 2022, is 25.6% (The weighted average annual effective tax rate for the September 30, 2021, is 25.1%).

- 131 -

37.

EARNINGS PER SHARE (“EPS”)

(1)	Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):


	Periods ended September 30, 2022						Periods ended September 30, 2021
	Three-month			Nine-month			Three-month			Nine-month
Net income attributable to common shareholders		899,811			2,661,745			778,238			2,197,936
Dividends to hybrid securities		(22,225	)		(63,600	)		(17,350	)		(48,900	)
Net income attributable to common shareholders		877,586			2,598,145			760,888			2,149,036
Weighted average number of common shares outstanding (Unit: million shares)		728			728			725			723
Basic EPS (Unit: Korean Won)		1,206			3,570			1,049			2,971

(2)	The weighted average number of common shares outstanding is as follows (Unit: number of shares, days):


	For the nine-month period ended September 30, 2022
	Period		Number of shares			Dates (Unit: Day)		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		2022-01-01 ~ 2022-09-30		728,060,549			273		198,760,529,877
Treasury stocks		2022-01-01 ~ 2022-09-30		(343,991	)		273		(93,909,543	)

Sub-total (①)									198,666,620,334

Weighted average number of common shares outstanding (②=(①/273)									727,716,558


	For the nine-month period ended September 30, 2021
	Period		Number of shares			Dates		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		2021-01-01 ~ 2021-09-30		722,267,683			273		197,179,077,459
Treasury stocks		2021-01-01 ~ 2021-09-30		(2	)		273		(546	)
Issuance of new shares (comprehensive share exchange)		2021-08-10 ~ 2021-09-30		5,792,866			52		301,229,032
Acquisition of treasury stocks		2021-08-10 ~ 2021-09-30		(343,989	)		52		(17,887,428	)

Sub-total (①)									197,462,418,517

Weighted average number of common shares outstanding (②=(①/273)									723,305,562

Diluted EPS is equal to basic EPS because there is no dilution effect for the nine-month periods ended September 30, 2022 and 2021.

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38.

CONTINGENT LIABILITIES AND COMMITMENTS

(1)	Details of guarantees are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Confirmed guarantees
Guarantee for loans		41,557		38,897
Acceptances		501,493		622,758
Guarantees in acceptances of imported goods		100,192		111,195
Other confirmed guarantees		7,723,574		7,215,557

Sub-total		8,366,816		7,988,407

Unconfirmed guarantees
Local letters of credit		221,201		243,072
Letters of credit		3,415,052		3,186,513
Other unconfirmed guarantees		1,172,633		778,088

Sub-total		4,808,886		4,207,673

Commercial paper purchase commitments and others		741,367		791,729

Total		13,917,069		12,987,809

(*)	The amount of financial guarantees are 4,090,433 million Won and 3,960,383 million Won as of September 30, 2022 and December 31, 2021, respectively.

(2)	Details of unused loan commitments and others are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Loan commitments		120,893,557		114,414,462
Other commitments (*)		6,673,160		5,652,557

(*)	The amount of unsecured bills (purchase note sales) and discounts on electronic short-term bond sales (purchase) are 2,478,003 million Won and 2,225,226 million Won as of September 30, 2022 and December 31, 2021, respectively.

(3)	Litigation case

As of September 30, 2022 and December 31, 2021, the contents of the litigation case are as follows.

Litigation case that the key Group is a defendant in a lawsuit pending (excluding fraud lawsuits and those lawsuits that are filed only to extend the statute of limitation, etc.) are 520 cases (litigation value of 575,835 million Won) and 475 cases (litigation value of 578,505 million Won) as of September 30, 2022 and December 31, 2021 respectively, and provisions for litigations are 25,675 million Won and 24,823 million Won.

(4)	Other commitments

The Group decided to enter into a stock sales agreement with a major shareholder of Woori Asset Trust Co., Ltd. (formerly, Kukje Asset Trust Co., Ltd.) to acquire 44.5% of interest (58.6% of voting rights) in July 2019, and to acquire additional 21.3% of interest (28.0% of voting rights) after a certain period. As a result, the Group acquired the interest of the first sales agreement in December 2019 and is planning to acquire the interest of the second sales agreement after a certain period. In regard to this acquisition, the Group recognized 123,166 million Won as other financial liabilities for the second sales agreement.

As of September 30, 2022, Woori Asset Trust Co., Ltd., a subsidiary, has agreed to carry out construction completion obligations for 93 constructions, which includes the construction of residential and commercial complexes in Busan (U-dong, Haeundae-gu). Land Trust responsible for Construction and Management is a trust that bears the obligation to fulfill the responsibility of the constructor and to compensate the loan financial institution for damages if the Group fails to fulfill the construction completion obligation. As of September 30, 2022, the total PF loan amount of PF loan institutions invested in the project of the Land Trust responsible for Construction and Management is 3,199,736 million Won. Although additional losses may occur in relation to the construction completion obligations, the financial statements as of September 30, 2022 do not reflect these effects since losses are unlikely and the amount cannot be estimated reliably.

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Pursuant to some contracts related to asset securitization, the Group utilizes various prerequisites as triggering events causing early redemption, limiting risks that investors bear due to change in asset quality. Breach of such triggering clause leads to an early redemption of the securitized bonds.

As of September 30, 2022, Woori Asset Trust Co., Ltd, a subsidiary, could borrow part of its total business expense related to its 8 development trust contracts including Boutique Terrace Haeundae Hotel from trust accounts, and the maximum amount of additional loan amount (unused loan commitment) is 54,845 million Won. In relation to those projects, the Group’s trust accounts loan is not unconditional payment obligation, and it would be judged by considering all related matters such as its own account and the fund balance plan for each trust projects.

39.

RELATED PARTY TRANSACTIONS

Related parties of the Group as of September 30, 2022 and December 31, 2021, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the nine-month periods ended September 30, 2022 and 2021 are as follows. Please see Note 12 for the details of joint ventures and associates.

(1)	Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):


Related parties		Account title	September 30, 2022			December 31, 2021
Associates	W Service Networks Co., Ltd.	Loans		22			20
		Deposits due to customers		3,413			2,832
		Accrued expenses		7			6
		Other liabilities		419			425
	Korea Credit Bureau Co., Ltd.	Loans		1			2
		Deposits due to customers		3,149			1,557
		Other liabilities		16			—
	Korea Finance Security Co., Ltd.	Loans		3,527			3,425
		Loss allowance		(43	)		(6	)
		Deposits due to customers		2,147			1,887
		Other liabilities		7			2
	LOTTE CARD Co., Ltd.	Loans		938			3,750
		Account receivables		13			—
		Loss allowance		(11	)		(39	)
		Other assets		8			10
		Deposits due to customers		17,123			13,482
		Other liabilities		106			91
	K BANK Co., Ltd.	Loans		4			99
		Account receivables		34			29
		Other assets		1,772			—
		Other liabilities		68,506			84,935
	Others (*)	Loans		71,286			73,940
		Loss allowance		(30	)		(124	)
		Other assets		870			739
		Deposits due to customers		1,678			1,063
		Other liabilities		160			3

(*)	Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, Woori Growth Partnerships New Technology Private Equity Fund, Partner One Value Up I Private Equity Fund, and etc., as of September 30, 2022 and December 31, 2021.

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(2)	Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):


			For the nine-month period ended September 30
Related parties		Account title	2022		2021
Associates	W Service Network Co., Ltd.	Other income		25		25
		Interest expenses		7		5
		Fees expenses		410		464
		Other expenses		1,415		1,416
	Korea Credit Bureau Co., Ltd.	Interest expenses		16		4
		Fees expenses		2,776		2,613
		Other expenses		103		—
	Korea Finance Security Co., Ltd.	Interest income		95		58
		Interest expenses		4		2
		Provision for allowance for credit loss		43		—
		Other expenses		42		70
	LOTTE CARD Co., Ltd.	Interest income		77		156
		Fees income		6,667		8,482
		Interest expenses		906		262
		Reversal of allowance for credit loss		13		29
	K BANK Co., Ltd.	Fees income		621		1,506
		Fees expenses		738		467
	Others (*)	Interest income		557		499
		Fees income		4,844		2,316
		Interest expenses		7		9
		Reversal of allowance for credit loss		94		—

(*)	Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, Woori Growth Partnerships New Technology Private Equity Fund, Partner One Value Up I Private Equity Fund, and etc., as of September 30, 2022 and 2021.

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(3)	Major loan transactions with related parties for the nine-month periods ended September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


		For the nine-month period ended September 30, 2022
Related parties		Beginning balance		Loan		Collection		Others			Ending balance (*)
Associates	W Service Network Co., Ltd.		20		185		183		—			22
	Korea Credit Bureau Co., Ltd.		2		11		12		—			1
	Korea Finance Security Co., Ltd.		3,425		2,394		2,292		—			3,527
	LOTTE CARD Co., Ltd.		3,750		—		2,812		—			938
	K BANK Co., Ltd.		99		304		399		—			4
	Godo Kaisha Oceanos 1		43,033		41,467		43,033		21			41,488
	Woori Zip 1		12,775		—		—		(459	)		12,316
	Woori Zip 2		18,132		—		—		(651	)		17,481

(*)	Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.


		For the nine-month period ended September 30, 2021
Related parties		Beginning balance		Loan		Collection		Others		Ending balance (*)
Associates	W Service Network Co., Ltd.		21		187		173		—		35
	Korea Credit Bureau Co., Ltd.		1		6		6		—		1
	Korea Finance Security Co., Ltd.		3,440		255		273		—		3,422
	LOTTE CARD Co., Ltd.		7,500		—		2,812		—		4,688
	K BANK Co., Ltd.		104		1,432		1,400		—		136
	Godo Kaisha Oceanos 1		44,036		—		—		164		44,200
	Woori Zip 1		—		13,121		—		—		13,121
	Woori Zip 2		—		18,624		—		—		18,624

(*)	Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.

(4)	Details of changes in major deposits due to customers with related parties for the nine-month period September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


		For the nine-month period ended September 30, 2022
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	W Service Networks Co., Ltd		1,180		1,200		1,180		1,200
	Partner One Value Up I Private Equity Fund		329		450		579		200
	Korea Credit Bureau Co., Ltd.		—		3,000		—		3,000

(*)	Details of payment between related parties, demand deposit due to customers and etc. are excluded.


		For the nine-month period ended September 30, 2021
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	W Service Networks Co., Ltd		1,180		1,180		1,180		1,180
	Partner One Value Up I Private Equity Fund		863		637		914		586
	Korea Credit Bureau Co., Ltd.		1,000		—		1,000		—

(*)	Details of payment between related parties, demand deposit due to customers and etc. are excluded.

(5)	There are no major borrowing transactions with related parties for the nine-month periods ended September 30, 2022 and 2021.

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(6)	Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):


Warrantee	September 30, 2022		December 31, 2021		Warranty
Korea Finance Security Co., Ltd.		733		835	Unused loan commitment
Korea Credit Bureau Co., Ltd.		34		33	Unused loan commitment
W Service Network Co., Ltd.		78		180	Unused loan commitment
K BANK Co., Ltd.		296		201	Unused loan commitment
LOTTE CARD Co. Ltd.		500,000		500,000	Unused loan commitment
Dicustody Co., Ltd.		10		—	Unused loan commitment

As of September 30, 2022 and December 31, 2021, the recognized payment guarantee provisions are 113 million Won and 93 million Won, respectively, in relation to the guarantees provided to the related parties above.

(7)	Amount of commitments with the related parties


Warrantee	September 30, 2022		December 31, 2021		Warranty
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		4,664		4,664	Securities purchase commitment
Woori G Senior Loan General Type Private Investment Trust No.1		—		14,284	Securities purchase commitment
Woori Seoul Beltway Private Special Asset Fund No.1		37,799		39,458	Securities purchase commitment
Woori-Q Corporate Restructuring Private Equity Fund		12,828		11,109	Securities purchase commitment
Union Technology Finance Investment Association		—		2,250	Securities purchase commitment
Genesis Eco No.1 Private Equity Fund		—		195	Securities purchase commitment
Genesis Environmental Energy Company 1st Private Equity Fund		—		916	Securities purchase commitment
JC Assurance No.2 Private Equity Fund		859		1,351	Securities purchase commitment
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		375		425	Securities purchase commitment
Woori G Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)		39		669	Securities purchase commitment
BTS 2nd Private Equity Fund		6,974		—	Securities purchase commitment

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(8)	Major investment and Recovery transactions

The details of major investment and recovery transactions with related parties for the for the nine-month periods ended September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30, 2022
Related parties	Investment and others(*)		Recovery and others(*)
Woori High Plus Bond Sec Feeder Inv Trust 3(USD)		—		1,052
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		—		21,606
Woori 2023 Maturity Securities Investment Trust(Bond)		200		—
Woori K-New Opening Target Return Securities Investment Trust(Equity)		200		—
WOORI Republic of Korea Treasury Bond Active ETF(Bond)		3,000		—
Woori Long-term government bond securities Investment Trust No.1		—		1,951
Woori China Mainland Stock Securities Investment Trust H(Securities)		—		443
Woori Two-year Bond Securities Investment Trust 2(Bond)		—		213
Woori Bank Plus Public Offering stock 10 securities Investment Trust 2(Bond Mixed)		200		—
Woori 2024 Maturity Securities Investment Trust 1(Bond)		200		—
Woori G Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)		630		—

(*)

Investment and recovery transactions of associates that are not treated as FVTPL are described in Note 12.(2)


	For the nine-month period ended September 30, 2021
Related parties	Investment and others(*)		Recovery and others(*)
Woori China Mainland Objective Convertible Securities Investment Trust No. 1 (FOF)		—		312
Woori Long-term government bond securities Investment Trust No.1		2,000		—
Woori New MMF No.3		—		20,105
Woori Corporate Private Securities Fund 1(Bond)		—		9,513
Woori Multi-Return Securities Investment Trust 1		8,000		—
Woori Multi-Return Securities Investment Trust 2 (Balanced Bond)		8,000		—
Woori Short term Plus Securities Investment Trust		200		—
Woori Smart New Deal 30 Target Conversion Securities Investment trust No.1		200		208
Woori Smart New Deal 30 Target Conversion Securities Investment trust No.2		200		209
Woori China Mainland Stock Securities Investment Trust H(Securities)		—		568
Woori BIG2 Securities Investment Trust(Balanced Bond)		200		—
Woori Smart Balance Securities Investment Trust (Stock)		500		—
Woori Smart New Deal 30 Target Return Securities Investment Trust 3(Balanced Bond)		200		—
Woori ACE Public Offering stock Alpha Securities Investment Trust (Bond Mixed)		200		—
Woori G IGIS Securities Investment Trust [Bond] C(F)		—		1,306
WooriG Public Offering stock 10 securities Investment Trust [Bond mixed] C(F)		—		1,064
WooriG Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)		301		—

(*)

Investment and recovery transactions of associates that are not treated as FVTPL are described in Note 12.(2)

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(9)	Compensation for key management is as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022		2021
Short-term employee salaries		16,961		15,542
Retirement benefit service costs		659		642
Share-based compensation		1,683		4,122

Total		19,303		20,306

Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 4,361 million Won and 3,821 million Won, as of September 30, 2022 and December 31, 2021, respectively and with respect to the assets, the Group has not recognized any allowance nor related impairment loss due to credit losses. Also, liabilities from transaction with key management amount to 10,032 million Won and 11,542 million Won, respectively, as of September 30, 2022 and December 31, 2021.

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40.

LEASES

(1)

Lessor

Finance lease

①

The total investment in finance lease and the present value of the minimum lease payments to be recovered are as follows (Unit: Korean Won in millions):


	September 30, 2022
	Total investment in lease		Net investment in lease
Within one year		147,626		134,517
After one year but within two years		219,276		204,345
After two years but within three years		350,693		323,637
After three years but within four years		503,666		455,783
After four years but within five years		423,484		365,233
After five years		30		29

Total		1,644,775		1,483,544


	December 31, 2021
	Total investment in lease		Net investment in lease
Within one year		70,740		69,030
After one year but within two years		133,398		124,904
After two years but within three years		239,895		218,911
After three years but within four years		367,991		331,685
After four years but within five years		486,490		429,034
After five years		2		1

Total		1,298,516		1,173,565

②

The unrealized interest income of the finance lease is as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Total investment in lease		1,644,775		1,298,516
Net investment in lease		1,483,544		1,173,565
Present value of minimum lease payments		1,483,544		1,173,565
Present value of unguaranteed residual value		—		—

Unearned interest income		161,231		124,951

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Operating lease

①

The details of operating lease assets are as follows (Unit: Korean Won in millions):


	September 30, 2022			December 31, 2021
Prepaid lease assets		6,217			4,579
Operating lease assets
Acquisition cost		3,177,677			2,299,968
Accumulated depreciation		(678,105	)		(521,660	)
Net carrying value		2,499,572			1,778,308

Total		2,505,789			1,782,887

②

The details of changes in operating lease assets as of September 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	September 30, 2022			September 30, 2021
Beginning balance		1,778,308			1,116,175
Acquisition		1,078,066			629,326
Disposal		(95,834	)		(69,984	)
Depreciation		(280,931	)		(177,592	)
Others		19,963			11,609

Ending balance		2,499,572			1,509,534

③

The future lease payments to be received under the lease contracts are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Within one year		539,016		377,153
After one year but within two years		497,126		347,539
After two years but within three years		399,141		262,176
After three years but within four years		271,609		170,391
After four years but within five years		101,389		79,555

Total		1,808,281		1,236,814

④

There is no adjusted lease payments recognized as profit or loss for the nine-month periods ended September 30, 2022 and 2021.

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(2)

Lessee

The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):


	September 30, 2022		December 31, 2021
Lease payments
Within one year		148,844		151,259
After one year but within five years		145,901		155,707
After five years		38,601		38,275

Total		333,346		345,241

Total cash outflows from lease are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022		2021
Total cash outflows from lease		141,619		135,532

Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):


	For the nine-month period ended September 30
	2022		2021
Lease payments for short-term leases		1,101		1,191
Lease payments for which the underlying asset is of low value		991		1,039

Total		2,092		2,230

Variable lease payments that were not included in the measurement of lease liabilities for the nine-month periods ended September 30, 2022 were 2,162 million Won.

The Group uses a practical expedient for rent concession as a direct consequence of COVID-19. Accordingly, the amount recognized in profit or loss during the reporting period is 15,880 million Won, to reflect changes in lease payments arising from the rent concession.

41.

BUSINESS COMBINATION

The Group acquired 82.03% of its stake in PT Batavia Prosperindo Finance Tbk, an Indonesian listed company, to enter the local financial industry in Indonesia, and changed its name to PT Woori Finance Indonesia Tbk.

As of the acquisition date, the transfer price, acquisition assets, liabilities, and non-controlling interests related to the business combination are as follows (Unit: Korean Won in millions):


	Amount
Fair value of transfer price
Cash		130,424
Amount recognized as assets and liabilities
Cash and cash equivalents		5,607
Financial assets at amortized cost		95,587
Other assets		24,096
Debentures		25,932
Other liabilities		10,150
Fair value of identifiable net assets		89,208
Non-controlling interests		16,454
Goodwill		57,670

- 142 -