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Published: 2022-08-17 06:09:42 ET

EX-99.1 2 d370565dex991.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 SIX-MONTH PERIODS ENDED JUNE 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		10-140

LOGO

Report on Review of Consolidated Interim Financial Statements

English Translation of a Report Originally Issued in Korean on August 12, 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 June 30, 2022 and the related consolidated interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2022 and 2021, and consolidated interim statements of changes in equity and cash flows for the six-month periods ended June 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 (“K-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 K-IFRS 1034 Interim Financial Reporting.

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

- 1 -

Emphasis of Matters

Without qualifying our conclusion, we draw attention to Note 3 of the 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 15, 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 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

August 12, 2022

Notice to Readers

This report is effective as of August 12, 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 SIX-MONTH PERIODS ENDED JUNE 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: (Address) 51, Sogong-ro, Jung-gu, Seoul

(Phone Number) 02-2125-2000

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

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


	June 30, 2022			December 31, 2021

	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 6)		10,015,736			7,565,818
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11 and 24)		20,227,825			13,497,234
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8 and 11)		36,300,070			39,119,789
Securities at amortized cost (Notes 4, 9 and 11)		20,143,175			17,086,274
Loans and other financial assets at amortized cost (Notes 4, 10, 11 and 39)		389,405,558			361,932,872
Investments in joint ventures and associates (Note 12)		1,361,836			1,335,167
Investment properties (Note 13)		396,859			389,495
Premises and equipment (Notes 14)		3,141,524			3,174,720
Intangible assets (Note 15)		784,914			785,386
Assets held for sale (Note 16)		8,033			26,327
Net defined benefit asset (Note 22)		123,960			21,346
Current tax assets		32,344			22,598
Deferred tax assets		87,020			31,131
Derivative assets (Designated for hedging) (Notes 4, 11 and 24)		72,211			106,764
Other assets (Notes 17 and 39)		2,844,625			2,088,950

Total assets		484,945,690			447,183,871

LIABILITIES
Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 18 and 24)		12,264,763			4,873,458
Deposits due to customers (Notes 4, 11, 19 and 39)		335,223,351			317,899,871
Borrowings (Notes 4, 11 and 20)		31,383,588			24,755,459
Debentures (Notes 4, 11 and 20)		46,817,330			44,653,864
Provisions (Notes 21, 38 and 39)		547,271			576,134
Net defined benefit liability (Note 22)		52,311			47,986
Current tax liabilities		620,178			584,491
Deferred tax liabilities		18,689			186,946
Derivative liabilities (Designated for hedging) (Notes 4, 11 and 24)		116,065			27,584
Other financial liabilities (Notes 4, 11, 23 and 39)		27,793,558			24,171,030
Other liabilities (Notes 23 and 39)		602,538			556,853

Total liabilities		455,439,642			418,333,676

EQUITY
Owners’ equity (Note 26)
Capital stock		3,640,303			3,640,303
Hybrid securities		2,593,744			2,294,381
Capital surplus		682,385			682,385
Other equity		(2,430,652	)		(2,167,614	)
Retained earnings		22,540,313			21,392,564

		27,026,093			25,842,019

Non-controlling interests		2,479,955			3,008,176

Total equity		29,506,048			28,850,195

Total liabilities and equity		484,945,690			447,183,871

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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)


	Periods ended June 30, 2022						Periods ended June 30, 2021
	Three-month			Six-month			Three-month			Six-month

	(Korean Won in millions, except per share data)
Interest income		3,272,657			6,213,415			2,383,286			4,710,471
Financial assets at FVTPL		21,062			37,735			11,046			22,420
Financial assets at FVTOCI		149,991			291,582			83,821			175,607
Financial assets at amortized cost		3,101,604			5,884,098			2,288,419			4,512,444
Interest expense		(1,157,001	)		(2,110,093	)		(680,333	)		(1,387,852	)

Net interest income (Notes 11, 28 and 39)		2,115,656			4,103,322			1,702,953			3,322,619

Fees and commissions income		634,683			1,211,603			547,051			1,065,916
Fees and commissions expense		(193,999	)		(365,219	)		(176,058	)		(336,462	)

Net fees and commissions income (Notes 11, 29 and 39)		440,684			846,384			370,993			729,454

Dividend income (Notes 11, 30 and 39)		31,899			78,922			64,148			130,738
Net gain(loss) on financial instruments at FVTPL (Notes 11, 31 and 39)		226,041			341,427			54,324			136,407
Net gain on financial assets at FVTOCI (Notes 11 and 32)		(1,921	)		(1,650	)		8,048			45,059
Net gain arising on financial assets at amortized cost (Note 11)		18,890			66,958			4,004			38,680
Impairment losses due to credit loss (Notes 33 and 39)		(330,795	)		(496,863	)		(68,583	)		(204,576	)
General and administrative expense (Notes 34 and 39)		(980,974	)		(1,957,102	)		(937,886	)		(1,855,493	)
Other net operating expense (Notes 11, 24, 34 and 39)		(315,809	)		(549,285	)		(147,673	)		(359,048	)

Operating income		1,203,671			2,432,113			1,050,328			1,983,840

Share of gain of joint ventures and associates (Note 12)		20,104			7,285			31,832			26,241
Other non-operating income(expense)		79,059			28,513			(6,174	)		7,667

Non-operating income(expense) (Note 35)		99,163			35,798			25,658			33,908

Net income before income tax expense		1,302,834			2,467,911			1,075,986			2,017,748

Income tax expense (Note 36)		(316,002	)		(608,607	)		(257,602	)		(480,497	)

Net income		986,832			1,859,304			818,384			1,537,251

Net gain(loss) on valuation of equity securities at FVTOCI		(43,477	)		(42,534	)		146,935			172,101
Changes in capital due to equity method		(1,502	)		(1,469	)		(312	)		(23	)
Remeasurement loss related to defined benefit plan		93,343			128,886			20,908			13,604

Items that will not be reclassified to profit or loss		48,364			84,883			167,531			185,682

Net gain(loss) on valuation of debt securities at FVTOCI		(297,836	)		(521,708	)		(72,540	)		(126,353	)
Changes in capital due to equity method		2,680			3,182			604			1,899
Net gain on foreign currency translation of foreign operations		191,723			250,915			5,294			86,261
Net gain(loss) on valuation of hedges of net investments in foreign operations		(40,022	)		(43,971	)		—			—
Net gain(loss) on valuation of cash flow hedge		1,520			2,924			4,052			4,046

Items that may be reclassified to profit or loss		(141,935	)		(308,658	)		(62,590	)		(34,147	)

Other comprehensive income(loss), net of tax		(93,571	)		(223,775	)		104,941			151,535

Total comprehensive income		893,261			1,635,529			923,325			1,688,786

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month

	(Korean Won in millions, except per share data)
Net income attributable to:		986,832		1,859,304		818,384		1,537,251
Net income attributable to owners		922,746		1,761,934		752,595		1,419,698
Net income attributable to non-controlling interests		64,086		97,370		65,789		117,553

Total comprehensive income attributable to:		893,261		1,635,529		923,325		1,688,786
Comprehensive income attributable to owners		825,292		1,532,364		857,879		1,569,431
Comprehensive income attributable to non-controlling interests		67,969		103,165		65,446		119,355

Earnings per share (Note 37)
Basic and diluted earnings per share (Unit: In Korean Won)		1,237		2,364		1,020		1,922

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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 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		—		—		—		—			1,419,698			1,419,698			117,553			1,537,251
Net gain on valuation of financial instruments at FVTOCI		—		—		—		45,711			—			45,711			37			45,748
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—		(33,448	)		33,448			—			—			—
Changes in capital due to equity method		—		—		—		2,673			(797	)		1,876			—			1,876
Gain on foreign currency translation of foreign operations		—		—		—		84,639			—			84,639			1,622			86,261
Gain on valuation of cash flow hedge		—		—		—		3,889			—			3,889			157			4,046
Capital related to noncurrent assets held for sale		—		—		—		(560	)		560			—			—			—
Remeasurement gain(loss) related to defined benefit plan		—		—		—		13,618			—			13,618			(14	)		13,604
Transactions with owners and others
Dividends to common stocks		—		—		—		—			(260,016	)		(260,016	)		(9,374	)		(269,390	)
Issuance of hybrid securities		—		199,452		—		—			—			199,452			—			199,452
Dividends to hybrid securities		—		—		—		—			(31,550	)		(31,550	)		(71,537	)		(103,087	)
Changes in subsidiaries’ capital		—		—		25		31,233			(31,252	)		6			(26	)		(20	)
Others		—		—		5,232		22,988			—			28,220			(109,632	)		(81,412	)

June 30, 2021 (Unaudited)		3,611,338		2,094,818		631,368		(2,176,729	)		20,398,356			24,559,151			3,601,023			28,160,174

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		—		—		—		—			1,761,934			1,761,934			97,370			1,859,304
Net loss on valuation of financial instruments at FVTOCI		—		—		—		(563,756	)		—			(563,756	)		(486	)		(564,242	)
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—		(63	)		63			—			—			—
Changes in capital due to equity method		—		—		—		1,713			—			1,713			—			1,713
Gain on foreign currency translation of foreign operations		—		—		—		244,646			—			244,646			6,269			250,915
Loss on valuation of hedges of net investments in foreign operations		—		—		—		(43,971	)		—			(43,971	)		—			(43,971	)
Gain on valuation of cash flow hedge		—		—		—		2,924			—			2,924			—			2,924
Capital related to noncurrent assets held for sale		—		—		—		(279	)		279			—			—			—
Remeasurement gain related to defined benefit plan		—		—		—		128,874			—			128,874			12			128,886
Transactions with owners and others
Dividends to common stocks		—		—		—		—			(545,787	)		(545,787	)		(9,931	)		(555,718	)
Issuance of hybrid securities		—		299,363		—		—			—			299,363			—			299,363
Dividends to hybrid securities		—		—		—		—			(41,375	)		(41,375	)		(61,890	)		(103,265	)
Redemption of hybrid securities		—		—		—		(60,491	)		—			(60,491	)		(559,565	)		(620,056	)
Changes in subsidiaries’ capital		—		—		—		27,365			(27,365	)		—			—			—

June 30, 2022 (Unaudited)		3,640,303		2,593,744		682,385		(2,430,652	)		22,540,313			27,026,093			2,479,955			29,506,048

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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month periods ended June 30
	2022			2021

	(Korean Won in millions)
Cash flows from operating activities:
Net income		1,859,304			1,537,251
Adjustments to net income:
Income tax expense		608,607			480,497
Interest income		(6,213,415	)		(4,710,471	)
Interest expense		2,110,093			1,387,852
Dividend income		(78,922	)		(130,738	)

		(3,573,637	)		(2,972,860	)

Additions of expenses not involving cash outflows:
Loss on financial instruments at FVTPL		699,378			102,439
Loss on financial assets at FVTOCI		3,115			242
Impairment loss due to credit loss		496,863			204,576
Loss on other provisions		1,796			14,651
Retirement benefit		82,285			88,663
Depreciation and amortization		449,935			385,003
Loss on foreign currency translation		114,568			—
Loss on derivatives (designated for hedge)		183,355			53,359
Loss on valuation and impairment loss of investments in joint ventures and associates		31,872			12,461
Loss on disposal of investments in joint ventures and associates		116			—
Loss on disposal of premises and equipment, intangible assets and other assets		1,487			1,798
Impairment loss on premises and equipment, intangible assets and other assets		335			639
Other loss		62,196			—

		2,127,301			863,831

Deductions of income not involving cash inflows:
Gain on financial assets at FVTOCI		1,465			45,301
Gain on other provisions		52,219			648
Gain on foreign currency translation		—			4,742
Gain on derivatives (designated for hedge)		69,151			26,477
Gain on fair value hedge		198,984			61,262
Gain on valuation of investments in joint ventures and associates		39,158			38,702
Gain on disposal of investments in joint ventures and associates		560			—
Gain on disposal of premises and equipment, intangible assets and other assets		41,719			33,345
Reversal of impairment loss on premises and equipment, intangible assets and other assets		168			96
Other income		15,880			19,313

		419,304			229,886

Changes in operating assets and liabilities:
Financial instruments at FVTPL		(677,954	)		176,818
Loans and other financial assets at amortized cost		(24,351,209	)		(24,005,568	)
Other assets		(846,756	)		(425,861	)
Deposits due to customers		14,497,529			9,979,228
Provisions		(5,815	)		(16,256	)
Net defined benefit liability		(3,105	)		(61,179	)
Other financial liabilities		2,633,176			7,264,990
Other liabilities		(41,769	)		(7,136	)

		(8,795,903	)		(7,094,964	)

Interest income received		5,906,023			4,637,247
Interest expense paid		(1,770,748	)		(1,538,731	)
Dividends received		79,174			130,823
Income tax paid		(605,666	)		(351,844	)

Net cash outflow from operating activities		(5,193,456	)		(5,019,133	)

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

(CONTINUED)


	For the six-month periods ended June 30
	2022		2021

	(Korean Won in millions)
Cash flows from investing activities:
Cash in-flows from investing activities:
Net increase in derivatives designated for hedging purpose		—		479
Disposal of financial instruments at FVTPL		3,549,922		6,219,265
Disposal of financial assets at FVTOCI		11,812,784		13,521,839
Redemption of securities at amortized cost		3,165,261		2,810,065
Disposal of investments in joint ventures and associates		109,666		22,320
Disposal of investment properties		2,021		—
Disposal of premises and equipment		42,794		56,026
Disposal of intangible assets		1,160		334
Disposal of assets held for sale		35,937		—
Net decrease of other assets		49,206		50,652

		18,768,751		22,680,980

Cash out-flows from investing activities:
Acquisition of financial instruments at FVTPL		2,893,949		6,877,285
Acquisition of financial assets at FVTOCI		9,414,426		13,506,169
Acquisition of securities at amortized cost		6,037,378		1,496,443
Acquisition of investments in joint ventures and associates		128,636		176,835
Acquisition of premises and equipment		82,330		40,454
Acquisition of intangible assets		74,347		61,454

		18,631,066		22,158,640

Net cash inflow from investing activities		137,685		522,340

Cash flows from financing activities:
Cash in-flows from financing activities:
Net increase in derivatives designated for hedging purpose		11,139		2,480
Net increase in borrowings		5,575,778		1,485,574
Issuance of debentures		14,286,117		15,187,733
Net increase of other liabilities		1,014		3,224
Issuance of hybrid securities		299,363		199,452
Net increase of liabilities for non-controlling interests		854		—

		20,174,265		16,878,463

Cash out-flows from financing activities:
Redemption of debentures		12,327,529		11,867,048
Redemption of lease liabilities		86,931		92,223
Dividends paid		545,787		260,016
Redemption of hybrid stocks		643,000		—
Dividends paid to hybrid securities		103,265		103,087
Dividends paid to non-controlling interest		9,931		9,374
Changes in non-controlling interests		—		52,947
Paid-in capital decrease on non-controlling interests		—		27

		13,716,443		12,384,722

Net cash inflow from financing activities		6,457,822		4,493,741

Effects of exchange rate changes on cash and cash equivalents		1,047,867		423,415
Net increase in cash and cash equivalents		2,449,918		420,363
Cash and cash equivalents, beginning of the period		7,565,818		9,990,983

Cash and cash equivalents, end of the period (Note 6)		10,015,736		10,411,346

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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 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 June 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 Parent company acquired 13.3% interests (excluding treasury stock, 12.9% when including treasury stock) in Woori Financial Capital Co., Ltd., and as of May 24, 2021, the 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 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(2)	Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of June 30, 2022 and December 31, 2021 are as follows:

Percentage of ownership
(%)

Financial

statements date

of use

Subsidiaries

Main business

June 30, 2022

December 31,
2021

Location

Held by Woori Financial Group Inc.

Woori Bank

Bank

100.0

Korea

June 30

Woori Card Co., Ltd.

Finance

100.0

Korea

June 30

Woori Financial Capital Co., Ltd.

Finance

100.0

Korea

June 30

Woori Investment Bank Co., Ltd.

Other credit finance business

58.7

Korea

June 30

Woori Asset Trust Co., Ltd.

Real estate trust

67.2

Korea

June 30

Woori Savings Bank (*7)

Mutual saving bank

100.0

Korea

June 30

Woori Asset Management Corp.

Finance

73.0

Korea

June 30

Woori Financial F&I Co., Ltd.

Finance

100.0

—

Korea

June 30

Woori Credit Information Co., Ltd.

Credit information

100.0

Korea

June 30

Woori Fund Service Co., Ltd.

Financial support service business

100.0

Korea

June 30

Woori Private Equity Asset Management Co., Ltd.

Finance

100.0

Korea

June 30

Woori Global Asset Management Co., Ltd.

Finance

100.0

Korea

June 30

Woori FIS Co., Ltd.

System software development & maintenance

100.0

Korea

June 30

Woori Finance Research Institute Co., Ltd.

Other service business

100.0

Korea

June 30

Held by Woori Bank

Woori America Bank(*1)

Finance

100.0

America

June 30

Woori Global Markets Asia Limited

Finance

100.0

Hong Kong

June 30

Woori Bank China Limited

Finance

100.0

China

June 30

AO Woori Bank (*10)

Finance

100.0

Russia

June 30

PT Bank Woori Saudara Indonesia 1906 Tbk(*1)

Finance

84.2

Indonesia

June 30

Banco Woori Bank do Brasil S.A.

Finance

100.0

Brazil

June 30

Korea BTL Infrastructure Fund

Finance

99.9

Korea

June 30

Woori Finance Myanmar Co., Ltd.

Finance

100.0

Myanmar

June 30

Wealth Development Bank

Finance

51.0

Philippines

June 30

Woori Bank Vietnam Limited

Finance

100.0

Vietnam

June 30

Woori Bank (Cambodia) PLC (*9)

Finance

100.0

Cambodia

June 30

Woori Bank Europe(*1)

Finance

100.0

Germany

June 30

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

Asset securitization

0.0

Korea

June 30

Asiana Saigon Inc. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

15.0

Korea

June 30

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

Asset securitization

—

0.0

Korea

—

Jeonju Iwon Ltd. (*2)

Asset securitization

0.0

Korea

June 30

Wonju I one Inc. (*2)

Asset securitization

0.0

Korea

June 30

Heitz Third Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

- 11 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Financial

statements date

of use

Subsidiaries

Main business

June 30, 2022

December 31,
2021

Location

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

—

0.0

Korea

—

ATLANTIC TRANSPORTATION 1 S.A. (*2)

Asset securitization

0.0

Marshall

islands

June 30

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

Asset securitization

0.0

Korea

June 30

HD Project Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

—

Korea

June 30

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

Asset securitization

0.0

—

Korea

June 30

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

Asset securitization

0.0

—

Korea

June 30

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

Asset securitization

0.0

—

Korea

June 30

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

Asset securitization

0.0

—

Korea

June 30

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

Securities investment and others

100.0

Korea

June 30

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

Securities investment and others

98.8

Korea

June 30

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

Securities investment and others

97.3

England

June 30

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

Securities investment and others

99.0

Korea

June 30

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

Securities investment and others

99.4

Korea

June 30

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

Securities investment and others

97.7

Korea

June 30

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

Securities investment and others

98.8

Korea

June 30

- 12 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Financial

statements date

of use

Subsidiaries

Main business

June 30, 2022

December 31,
2021

Location

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

Securities investment and others

99.3

Korea

June 30

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

Securities investment and others

98.2

98.1

Korea

June 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

June 30

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

Securities investment and others

97.0

Korea

June 30

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

Securities investment and others

97.1

Korea

June 30

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

Securities investment and others

96.9

96.0

Korea

June 30

Principal Guaranteed Trust (*4)

Trust

0.0

Korea

June 30

Principal and Interest Guaranteed Trust (*4)

Trust

0.0

Korea

June 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

June 30

Held by MAGI No.5 LuxCo S.a.r.l. ADP 16
Brussels (*2)

Asset securitization

0.0

Belgium

June 30

Held by Woori Card Co., Ltd. TUTU Finance –WCI Myanmar Co., Ltd.

Finance

100.0

Myanmar

June 30

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

Asset securitization

—

0.5

Korea

—

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

Asset securitization

0.5

Korea

June 30

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

Asset securitization

0.5

Korea

June 30

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

Asset securitization

0.5

Korea

June 30

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

Asset securitization

0.5

—

Korea

June 30

Held by Woori Financial Capital Co., Ltd.

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

Asset securitization

—

1.0

Korea

—

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

Asset securitization

1.0

Korea

June 30

Held by Woori Investment Bank Co., Ltd.

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

- 13 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Financial

statements date

of use

Subsidiaries

Main business

June 30, 2022

December 31,
2021

Location

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

0.0

Korea

June 30

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

—

Korea

—

Held by Woori Asset Management Corp.

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

Securities investment and others

89.5

93.6

Korea

June 30

Woori Together TDF 2025 (*5)

Securities investment and others

—

34.1

Korea

—

Woori Together TDF 2030 (*5)

Securities investment and others

—

32.3

Korea

—

Woori Together TDF 2035 (*3)

Securities investment and others

60.4

56.0

Korea

June 30

Woori Together TDF 2040 (*3)

Securities investment and others

59.6

55.7

Korea

June 30

Woori Together TDF 2045 (*3)

Securities investment and others

71.1

65.2

Korea

June 30

Woori Together TDF 2050 (*3)

Securities investment and others

69.4

63.6

Korea

June 30

Woori Star50 Feeder Fund(H) (*3)

Securities investment and others

38.8

44.8

Korea

June 30

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

Securities investment and others

—

40.8

Korea

—

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

Securities investment and others

99.8

—

Korea

June 30

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

Securities investment and others

85.8

—

Korea

June 30

Woori Together OCIO Target Return Master
fund (*3)

Securities investment and others

100

—

Korea

June 30

Woori Together OCIO Target Return Feeder
fund (*3)

Securities investment and others

87.7

—

Korea

June 30

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

Securities investment and others

62.6

—

Korea

June 30

Woori Smart Balance Securities Investment Trust(Equity) (*3)

Securities investment and others

33.3

—

Korea

June 30

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

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

Asset securitization

5.0

—

Korea

June 30

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

Asset securitization

5.0

—

Korea

June 30

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

Asset securitization

5.0

—

Korea

June 30

- 14 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Financial

statements date

of use

Subsidiaries

Main business

June 30, 2022

December 31,
2021

Location

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

June 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

June 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

June 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

June 30

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

Securities investment and others

94.3

Korea

June 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

June 30

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

Securities investment and others

80.0

Korea

June 30

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

Securities investment and others

100.0

—

Korea

June 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

June 30

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

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

Securities investment and others

—

100.0

Korea

—

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

Securities investment and others

100.0

Korea

June 30

- 15 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Financial

statements date

of use

Subsidiaries

Main business

June 30, 2022

December 31,
2021

Location

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

Securities investment and others

100.0

Korea

June 30

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

Securities investment and others

100.0

Korea

June 30

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

Securities investment and others

30.1

Korea

June 30

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

Securities investment and others

100.0

Korea

June 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

June 30

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

Securities investment and others

80.0

Korea

June 30

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

Securities investment and others

80.0

Korea

June 30

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

Securities investment and others

90.9

Korea

June 30

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

Securities investment and others

87.0

Korea

June 30

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

Securities investment and others

50.0

—

Korea

June 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

June 30

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

Securities investment and others

100.0

—

Korea

June 30

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

June 30

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

Securities investment and others

63.2

Korea

June 30

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

June 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

June 30

- 16 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Financial

statements date

of use

Subsidiaries

Main business

June 30, 2022

December 31,
2021

Location

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

June 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

April 30(*8)

(*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 June 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 June 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. 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.

- 17 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	As of June 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 Highway Infra Private Placement Special Asset 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 Infrastructure Private Equity Investment Trust No. 1-4 (*)	Korea	Securities Investment	99.7
Hana UBS Class One Private Equity No. 3 C2 (*)	Korea	Securities Investment	51.0
Consus Gyeongju Green Private Equity Investment Trust No. 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

(*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.

- 18 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	As of June 30, 2022				For the six-month period ended June 30, 2022
Subsidiaries	Assets		Liabilities		Operating revenue		Net income(loss) attributable to owners			Comprehensive income(loss) attributable to owners
Woori Bank		448,831,125		424,705,346		20,883,969		1,554,466			1,314,111
Woori Card Co., Ltd.		15,864,203		13,496,147		946,525		134,333			152,025
Woori Financial Capital Co., Ltd.		12,563,778		11,081,408		638,526		125,518			126,139
Woori Investment Bank Co., Ltd.		5,408,443		4,780,735		193,628		45,337			45,306
Woori Asset Trust Co., Ltd.		290,463		83,037		69,896		40,231			40,216
Woori Savings Bank		1,735,147		1,507,322		51,189		9,008			9,008
Woori Asset Management Corp.		141,007		19,578		14,971		(157	)		(79	)
Woori Financial F&I Co., Ltd.		246,189		46,674		2,036		(197	)		(197	)
Woori Credit Information Co., Ltd.		41,676		8,847		18,744		1,091			1,320
Woori Fund Service Co., Ltd.		22,888		2,259		8,164		2,142			2,142
Woori Private Equity Asset Management Co., Ltd.		92,748		3,418		2,759		1,451			1,439
Woori Global Asset Management Co., Ltd.		33,862		6,340		6,207		(165	)		(165	)
Woori FIS Co., Ltd.		104,460		70,287		139,902		(11,541	)		(11,741	)
Woori Finance Research Institute Co., Ltd.		5,444		2,080		3,216		(234	)		(243	)


	As of December 31, 2021				For the six-month period ended June 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		11,760,294		1,279,637			1,429,762
Woori Card Co., Ltd.		14,116,832		11,858,065		741,298		121,435			126,396
Woori Financial Capital Co., Ltd.		10,259,868		9,073,104		422,966		82,527			83,600
Woori Investment Bank Co., Ltd.		5,159,742		4,559,856		149,233		44,035			44,015
Woori Asset Trust Co., Ltd.		254,773		86,418		42,764		21,571			21,557
Woori Asset Management Corp.		151,651		30,144		16,067		4,422			4,476
Woori Savings Bank		1,444,508		1,222,888		36,648		9,262			8,859
Woori Credit Information Co., Ltd.		40,510		8,532		18,947		1,109			1,106
Woori Fund Service Co., Ltd.		22,168		2,582		7,452		1,512			1,512
Woori Private Equity Asset Management Co., Ltd.		42,790		4,652		1,963		3,706			3,647
Woori Global Asset Management Co., Ltd.		35,265		7,579		6,414		105			105
Woori FIS Co., Ltd.		105,138		59,225		130,485		(9,075	)		(9,193	)
Woori Finance Research Institute Co., Ltd.		5,864		2,257		3,410		(107	)		(114	)

- 19 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 June 30, 2022 and December 31, 2021, the Group provides 2,702,952 million Won and 2,480,131 million Won of credit facilities, respectively, for the structured entities mentioned above. As of June 30, 2022 and December 31, 2021, the purchase commitment amount is 2,925,865 million Won and 2,263,387 million Won.

- 20 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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

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 June 30, 2022 and December 31, 2021 are 116,691 million Won and 853,140 million Won, respectively, and there is no additional commitments for MMF.

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

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

- 21 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	June 30, 2022
	Asset securitization vehicle	Structured Finance	Investment Funds	Real-estate trust
Total asset of the unconsolidated structured entities	14,233,592	76,286,660	110,912,573		1,281,643
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities	8,058,044	5,342,847	4,417,362		34,690
Financial assets at FVTPL	219,160	84,823	3,773,749		10,637
Financial assets at FVTOCI	3,496,930	46,083	—		—
Financial assets at amortized cost	4,341,954	5,210,969	67,879		24,053
Investments in joint ventures and associates	—	—	575,734		—
Derivative assets	—	972	—		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities	1,522	9,210	—		3,378
Derivative liabilities	808	7,115	—		—
Other liabilities(provisions)	714	2,095	—		3,378
The maximum exposure to risks	8,320,263	6,552,479	8,026,847		93,434
Investment assets	8,058,044	5,342,847	4,417,362		34,690
Purchase commitment	—	—	3,603,194		—
Credit facilities and others	262,219	1,209,632	6,291		58,744
Loss(reversal) recognized on unconsolidated structured entities	63	29,567	59,909		(2,139	)


	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 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(7)	As of June 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 are significant are as follows (Unit: Korean Won in millions):

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


	June 30, 2022	December 31, 2021
Woori Bank (*)	1,995,601	2,555,166
Woori Investment Bank Co., Ltd.	263,582	251,879
Woori Asset Trust Co., Ltd.	72,622	60,726
Woori Asset Management Corp	33,749	33,768
PT Bank Woori Saudara Indonesia 1906 Tbk	94,697	87,741
Wealth Development Bank	21,646	20,835

(*)	Hybrid securities issued by Woori Bank

Net income attributable to non-controlling interests


	For the six-month periods ended June 30
	2022			2021
Woori Bank (*)		61,890			71,537
Woori Financial Capital Co., Ltd.		—			16,329
Woori Investment Bank Co., Ltd.		18,934			18,330
Woori Asset Trust Co., Ltd.		12,265			6,149
Woori Asset Management Corp		(40	)		1,119
PT Bank Woori Saudara Indonesia 1906 Tbk		3,738			3,512
Wealth Development Bank		565			559

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

Dividends to non-controlling interests


	For the six-month periods ended June 30
	2022		2021
Woori Bank (*)		61,890		71,537
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 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 (“K-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 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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):


		June 30, 2022		December 31, 2021
Total loans (Loan receivables, payment guarantees) that are subject to loan deferment and interest deferment.	Corporate		2,352,312		2,428,496
	Retail		218,228		167,146

	Total		2,570,540		2,595,642

Total loans changed its stage from 12-month to lifetime(Stage 2) expected credit losses.	Corporate		2,064,111		2,125,492
	Retail		170,611		134,920

	Total		2,234,722		2,260,412

The expected credit loss allowances that are additionally recognized.	Corporate		287,162		275,057
	Retail		13,378		9,657

	Total		300,540		284,714

In addition, as of June 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 June 30, 2022, 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):


	June 30, 2022		December 31, 2021
Corporate		182,853		48,583
Retail		19,435		6,237

Total		202,288		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 June 30, 2022, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 6,569 million Won, and the cumulative expected credit loss allowance have increased for 179 million Won.

- 26 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 30, 2022, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 69,025 million Won and cumulative expected credit loss allowance have increased for 14,966 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, unless otherwise stated, are identical to ones used in the Company’s annual consolidated financial statements for the year ended December 31, 2021.

- 27 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

4.	RISK MANAGEMENT

The Group’s operating activity is exposed to various financial risks and the 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 resulting from the obligor’s credit condition by using financial and physical collateral, guarantees, netting agreements and credit derivatives. The Group has adopted the entrapment method to mitigate its credit risk. Credit risk mitigation is reflected in qualifying financial collateral, trade receivables, guarantees, residential and commercial real estate and other collaterals. The Group regularly performs a revaluation of collateral reflecting such credit risk mitigation.

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.

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

- 28 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

At the end of each reporting period, the Group assesses whether credit risk reflecting forward-looking information has significantly been increased since the date of initial recognition. When assessing whether credit risk has significantly been increased, the changes in the probability of default over the financial instrument’s remaining life is used instead of changes in the amount of expected credit losses.

Woori Bank 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 30 days past due		More than 30 days past due

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

Debtor experiencing financial difficulties (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 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.

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.

- 29 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 price index rate		Negative(-) Correlation

Consumer price index 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 June 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 June 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 price index rate		3.60		4.01		2.85
Consumer price index 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 June 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


			June 30, 2022			December 31, 2021
Corporate	GDP growth rate	Increase by 1% point		(57,838	)		(68,140	)
		Decrease by 1% point		63,216			74,495
	Personal consumption expenditures price index rate	Increase by 1% point		(34,533	)		(40,654	)
		Decrease by 1% point		36,514			43,028
Retail	GDP growth rate	Increase by 1% point		(7,013	)		(8,798	)
		Decrease by 1% point		7,309			9,163
	Consumer price index rate	Increase by 1% point		(23,498	)		(29,469	)
		Decrease by 1% point		27,414			34,352

•

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.

- 30 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


		June 30, 2022		December 31, 2021
Loans and other financial assets at amortized cost (*1)	Korean treasury and government agencies		33,451,167		14,934,813
	Banks		21,089,338		24,733,020
	Corporates		141,064,817		131,027,256
	Consumers		193,800,236		191,237,783

	Sub-total		389,405,558		361,932,872

Financial assets at FVTPL (*2)	Deposit		47,731		65,072
	Debt securities		3,123,694		2,743,239
	Loans		949,446		667,467
	Derivative assets		11,246,420		4,803,131
	Others		1,533		1,518

	Sub-total		15,368,824		8,280,427

Financial assets at FVTOCI	Debt securities		35,391,884		38,126,977
Securities at amortized cost	Debt securities		20,143,175		17,086,274
Derivative assets	Derivative assets (Designated for hedging)		72,211		106,764
Off-balance accounts	Guarantees (*3)		13,994,723		12,987,809
	Loan commitments		118,639,497		114,414,462

	Sub-total		132,634,220		127,402,271

	Total		593,015,872		552,935,585

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

(*2)	Puttable financial instruments are not included.

(*3)	As of June 30, 2022 and December 31, 2021, the financial guarantee amount of 4,018,956 million Won and 3,960,383 million Won are included, respectively.

- 31 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Credit risk exposure by geographical areas

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


	June 30, 2022
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		361,628,118		5,764,768		4,860,930		219,170		768,679		16,163,893		389,405,558
Securities at amortized cost		18,878,184		562,747		411,751		—		—		290,493		20,143,175
Financial assets at FVTPL		10,159,490		2,580		2,773,548		439,229		223,546		1,770,431		15,368,824
Financial assets at FVTOCI		30,798,341		809,042		2,363,398		1,797		42,752		1,376,554		35,391,884
Derivative assets (Designated for hedging)		68,260		—		3,951		—		—		—		72,211
Off-balance accounts		128,505,812		1,170,806		415,655		31,188		42,418		2,468,341		132,634,220

Total		550,038,205		8,309,943		10,829,233		691,384		1,077,395		22,069,712		593,015,872

(*)	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 June 30, 2022 and December 31, 2021 (Unit: Korean Won in millions):


	June 30, 2022
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		73,920,852		40,473,676		59,713,807		5,252,361		189,227,598		20,817,264		389,405,558
Securities at amortized cost		369,171		—		7,968,632		240,241		—		11,565,131		20,143,175
Financial assets at FVTPL		279,187		305,932		12,503,089		17,403		—		2,263,213		15,368,824
Financial assets at FVTOCI		438,061		291,203		25,197,293		95,341		—		9,369,986		35,391,884
Derivative assets (Designated for hedging)		—		—		72,211		—		—		—		72,211
Off-balance accounts		19,225,683		20,564,783		11,601,825		3,877,677		70,742,921		6,621,331		132,634,220

Total		94,232,954		61,635,594		117,056,857		9,483,023		259,970,519		50,636,925		593,015,872


	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

- 32 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

②

The detailed industries of financial assets and corporate loans that might get affected by the spread of COVID-19 as of June 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 >


			June 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		1,151,813		769		6,473
		General wholesale business		1,745,675		653		—

		Sub-total		2,897,488		1,422		6,473

	Accommodation business			1,386,163		—		22,126
	Travel business			55,158		—		—
	Art/sports, leisure service			1,793,554		191		—
	Food business			1,401,731		—		—
	Transportation business			375,697		—		10,379
	Education business			462,291		15		—
	Others			1,581,677		62		—

	Sub-total			9,953,759		1,690		38,978

Manufacturing	Textile			2,733,444		956		9,123
	Metal			1,607,860		1,699		—
	Non-metal			781,994		574		7,794
	Chemical			3,792,553		180		—
	Electronics			1,308,067		450		—
	Others			3,987,031		4,563		—

	Sub-total			14,210,949		8,422		16,917

	Total			24,164,708		10,112		55,895


			June 30, 2022
			Off-balance accounts		Total
Service business	Distribution business	General retail business		728,765		1,887,820
		General wholesale business		511,530		2,257,858

		Sub-total		1,240,295		4,145,678

	Accommodation business			212,064		1,620,353
	Travel business			11,402		66,560
	Art/sports, leisure service			112,172		1,905,917
	Food business			183,462		1,585,193
	Transportation business			173,470		559,546
	Education business			50,866		513,172
	Others			311,547		1,893,286

	Sub-total			2,295,278		12,289,705

Manufacturing	Textile			1,020,645		3,764,168
	Metal			1,385,689		2,995,248
	Non-metal			415,880		1,206,242
	Transportation			3,644,382		7,437,115
	Electronics			1,883,657		3,192,174
	Others			2,086,618		6,078,212

	Sub-total			10,436,871		24,673,159

	Total			12,732,149		36,962,864

- 33 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


			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

- 34 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

< Woori Card Co., Ltd. >


	June 30, 2022
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		5,013		—		—		10,062		15,075
Travel business		7,149		—		—		20,553		27,702
Aviation		951		—		—		3,883		4,834
Cosmetics industry		10,129		—		—		11,227		21,356
Distribution business		22,307		—		—		36,625		58,932
Food industry		109,002		—		—		113,405		222,407
Art/sports, leisure service		28,003		—		—		43,426		71,429

Total		182,554		—		—		239,181		421,735


	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

- 35 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


			June 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		104,362		—		—
		General wholesale business		392,600		—		—

		Sub-total		496,962		—		—

	Accommodation business			9,838		—		—
	Travel business			76		—		—
	Art/sports, leisure service			11,455		—		—
	Food business			167,689		—		—
	Transportation business			803,043		—		—
	Education business			29,653		—		—
	Others			137,806		—		—

	Sub-total			1,656,522		—		—

Manufacturing	Textile			824		—		—
	Metal			3,201		—		—
	Non-metal			791		—		—
	Chemical			196		—		—
	Transportation			496		—		—
	Electronics			4,526		—		—
	Cosmetics			776		—		—
	Others			123,036		—		—

	Sub-total			133,846		—		—

Total COVID-19 vulnerable business				1,790,368		—		—
Other business	Others			7,701,002		24,130		—

	Total			9,491,370		24,130		—


			June 30, 2022
			Off-balance accounts		Total
Service business	Distribution business	General retail business		—		104,362
		General wholesale business		—		392,600

		Sub-total		—		496,962

	Accommodation business			—		9,838
	Travel business			—		76
	Art/sports, leisure service			—		11,455
	Food business			—		167,689
	Transportation business			—		803,043
	Education business			—		29,653
	Others			176,882		314,688

	Sub-total			176,882		1,833,404

Manufacturing	Textile			—		824
	Metal			—		3,201
	Non-metal			—		791
	Chemical			—		196
	Transportation			—		496
	Electronics			—		4,526
	Cosmetics			—		776
	Others			14,292		137,328

	Sub-total			14,292		148,138

Total COVID-19 vulnerable business				191,174		1,981,542
Other business	Others			865,063		8,590,195

	Total			1,056,237		10,571,737

- 36 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


			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

- 37 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

< Woori Investment Bank Co., Ltd. >


	June 30, 2022
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		50,295		—		—		—		50,295
Distribution business		9,094		59,836		—		—		68,930
Art/sports, leisure service		59,123		—		—		—		59,123

Total		118,512		59,836		—		—		178,348


	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

- 38 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


	June 30, 2022
	Stage 1				Stage 2
	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		340,817,299		24,249,500		13,842,794		11,378,305		1,265,605		182,339		391,735,842		(2,330,284	)		389,405,558
Korean treasury and government agencies		33,459,765		3		8		—		—		—		33,459,776		(8,609	)		33,451,167
Banks		20,456,802		428,256		4,521		—		29,351		182,339		21,101,269		(11,931	)		21,089,338
Corporates		117,279,362		17,174,684		2,695,430		4,732,709		593,966		—		142,476,151		(1,411,334	)		141,064,817
General business		75,933,539		9,542,105		1,806,546		3,474,872		428,296		—		91,185,358		(1,011,118	)		90,174,240
Small- and medium-sized enterprise		33,270,759		6,802,881		866,811		1,216,591		162,394		—		42,319,436		(337,048	)		41,982,388
Project financing and others		8,075,064		829,698		22,073		41,246		3,276		—		8,971,357		(63,168	)		8,908,189
Consumers		169,621,370		6,646,557		11,142,835		6,645,596		642,288		—		194,698,646		(898,410	)		193,800,236
Securities at amortized cost		20,149,257		—		—		—		—		—		20,149,257		(6,082	)		20,143,175
Financial assets at FVTOCI (*3)		35,051,816		340,068		—		—		—		—		35,391,884		(12,915	)		35,391,884

Total		396,018,372		24,589,568		13,842,794		11,378,305		1,265,605		182,339		447,276,983		(2,349,281	)		444,940,617


	June 30, 2022
	Collateral value
	Stage1		Stage2		Stage3		Credit impairment model		Total
Loans and other financial assets at amortized cost		210,493,425		19,335,780		494,860		182,346		230,506,411
Korean treasury and government agencies		20,513		—		—		—		20,513
Banks		1,657,486		—		—		182,346		1,839,832
Corporates		78,843,812		5,069,731		265,867		—		84,179,410
General business		42,338,942		3,535,959		190,365		—		46,065,266
Small- and medium-sized enterprise		32,162,060		1,533,772		75,287		—		33,771,119
Project financing and others		4,342,810		—		215		—		4,343,025
Consumers		129,971,614		14,266,049		228,993		—		144,466,656
Securities at amortized cost		—		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—		—

Total		210,493,425		19,335,780		494,860		182,346		230,506,411

(*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.

- 39 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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.

- 40 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Guarantees and commitments

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


	June 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		12,597,300		1,061,082		42,731		279,148		14,462		13,994,723
Loan Commitments		113,029,288		2,848,180		1,941,876		819,737		416		118,639,497

Total		125,626,588		3,909,262		1,984,607		1,098,885		14,878		132,634,220

(*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 six-month period ended June 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.

- 41 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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.

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 six-month period ended June 30, 2022 and for the year ended December 31, 2021, and the VaR of the Bank as of June 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	June 30, 2022		For the six-month period ended June 30, 2022									December 31, 2021			For the year ended December 31, 2021
Risk factor	June 30, 2022		Average			Maximum			Minimum			December 31, 2021			Average			Maximum			Minimum
Interest rate		10,139		7,345			10,658			4,298			4,177			4,681			14,017			2,405
Stock price		8,315		5,813			12,448			1,806			2,972			3,637			6,676			1,609
Foreign currencies		16,344		10,398			16,344			5,421			5,904			6,745			13,144			4,747
Diversification		(16,760		(11,175	)		(19,783	)		(4,201	)		(6,072	)		(7,300	)		(20,007	)		(3,628	)

Total VaR(*)		18,038		12,381			19,667			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.

- 42 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Non-trading activities

From the end of 2019 for the Bank and the beginning of 2022 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 net interest income, 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 others.

ΔEVE and ΔNII calculated on Interest Rate Risk in the Banking Book(IRRBB) basis for assets and liabilities by subsidiary as of the end of June 30, 2022 and December 31, 2021 are as follows(Unit: Korean Won in millions):


	June 30, 2022				December 31, 2021
	ΔEVE (*1)		ΔNII (*2)		ΔEVE (*1)		ΔNII (*2)
Woori Bank		765,420		188,062		920,290		195,186
Woori Card Co., Ltd.		137,090		98,227		126,576		59,114
Woori Financial Capital Co., Ltd.		80,475		102		58,794		1,384
Woori Investment Bank Co., Ltd.		19,564		1,852		17,607		5,556
Woori Asset Trust Co., Ltd.		1,115		4,089		820		1,709
Woori Asset Management Corp.		946		1,008		1,411		504
Woori Savings Bank		13,663		1,450		15,175		949
Woori Private Equity Asset Management Co., Ltd.		727		597		32		59
Woori Global Asset Management Co., Ltd.		539		209		246		143

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

(*2)	ΔNII: change in Net Interest Income

- 43 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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):


	June 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		215,233,060		57,494,257		18,625,202		15,787,277		62,770,143		4,561,166		374,471,105
Financial assets at FVTPL		1,022,084		77,574		59,168		24,823		163,502		15,100		1,362,251
Financial assets at FVTOCI		5,230,713		3,741,943		3,082,759		3,833,026		19,292,930		1,038,864		36,220,235
Securities at amortized cost		1,436,679		1,044,044		1,474,389		353,672		14,988,501		2,096,129		21,393,414

Total		222,922,536		62,357,818		23,241,518		19,998,798		97,215,076		7,711,259		433,447,005

Liability:
Deposits due to customers		138,496,679		59,388,708		44,782,507		25,518,072		67,959,493		71,581		336,217,040
Borrowings		16,289,238		4,574,186		1,673,413		1,694,208		7,457,604		469,995		32,158,644
Debentures		11,909,416		3,215,614		4,696,407		4,766,554		20,734,185		3,214,652		48,536,828

Total		166,695,333		67,178,508		51,152,327		31,978,834		96,151,282		3,756,228		416,912,512


	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

- 44 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 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):


		June 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		4,471		5,780,359		8,620		81,581		1,613		310,950		115		155,259		594,048		6,922,197
	Loans and other financial assets at amortized cost		30,040		38,838,072		145,030		1,372,641		27,534		5,307,195		2,777		3,749,758		6,978,805		56,246,471
	Financial assets at FVTPL		751		971,574		16,905		160,001		—		—		324		437,223		106,894		1,675,692
	Financial assets at FVTOCI		3,498		4,522,171		—		—		3,735		720,009		2		2,838		823,904		6,068,922
	Securities at amortized cost		563		728,241		—		—		2,920		562,904		59		79,389		189,101		1,559,635

Total			39,323		50,840,417		170,555		1,614,223		35,802		6,901,058		3,277		4,424,467		8,692,752		72,472,917

Liability	Financial liabilities at FVTPL		435		562,469		25,276		239,222		—		—		352		475,135		297,505		1,574,331
	Deposits due to customers		20,697		26,758,805		238,782		2,259,953		27,466		5,294,072		1,773		2,393,197		5,865,230		42,571,257
	Borrowings		8,246		10,661,561		13,955		132,082		202		38,885		361		487,583		1,560,753		12,880,864
	Debentures		4,185		5,410,526		—		—		—		—		—		—		349,966		5,760,492
	Other financial liabilities		4,399		5,687,110		9,979		94,442		8,403		1,619,595		375		506,913		428,161		8,336,221

Total			37,962		49,080,471		287,992		2,725,699		36,071		6,952,552		2,861		3,862,828		8,501,615		71,123,165

Off-balance accounts			8,376		10,829,806		40,541		383,703		2,766		533,241		563		760,745		695,141		13,202,636

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


		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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 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		697,345		456,395
	Financial assets at amortized cost		5,400,568		3,748,814

	Total		6,097,913		4,205,209

Non-derivative financial liabilities	Financial liabilities at amortized cost		717,560		717,560

Derivatives	Interest rate(trading)		26,772,718		26,545,918
	Currency(trading)		37,188,148		36,010,048
	Interest rate(hedging)		2,391,865		2,391,865

	Total		66,352,731		64,947,831

(*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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(3)	Liquidity risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations 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 June 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	June 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		47,663		40,291		—		79,693		—		—		167,647
Deposits due to customers		224,226,534		42,958,563		30,885,889		28,299,770		10,641,637		1,565,835		338,578,228
Borrowings		11,128,657		5,759,979		2,908,193		3,929,117		8,034,436		469,995		32,230,377
Debentures		5,814,796		5,830,325		6,115,330		5,683,659		21,979,570		3,214,652		48,638,332
Lease liabilities		42,376		37,800		30,589		24,894		152,717		38,139		326,515
Other financial liabilities		19,776,032		96,136		142,855		18,176		734,610		2,435,448		23,203,257

Total		261,036,058		54,723,094		40,082,856		38,035,309		41,542,970		7,724,069		443,144,356


	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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	June 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		47,663		40,291		—		79,693		—		—		167,647
Deposits due to customers		231,601,293		44,464,499		29,290,197		23,859,489		8,840,637		59,895		338,116,010
Borrowings		11,128,657		5,759,979		2,908,193		3,929,117		8,034,436		469,995		32,230,377
Debentures		5,814,796		5,830,325		6,115,330		5,683,659		21,979,570		3,214,652		48,638,332
Lease liabilities		42,443		37,955		30,813		25,095		158,925		40,955		336,186
Other financial liabilities		19,776,032		96,136		142,855		18,176		734,610		2,435,448		23,203,257

Total		268,410,884		56,229,185		38,487,388		33,595,229		39,748,178		6,220,945		442,691,809


	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 June 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
June 30, 2022	Cash flow risk hedge		664			79			330			2			43,647			5,894			50,616
	Fair value risk hedge		6,979			(4,836	)		23,652			1,617			95,779			—			123,191
	Trading purpose		12,086,057			—			162			—			—			—			12,086,219
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

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 are as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Guarantees		13,994,723		12,987,809
Loan commitments		118,639,497		114,414,462
Other commitments		4,055,170		3,427,331

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 Services Inc., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	For the six-month period ended June 30, 2022
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Adjustments (*3)			Total
Net interest income		3,085,426			333,803			188,052			58,260			29,148			3,694,689			408,633			4,103,322
Non-interest income(expense)		866,035			75,929			49,717			40,002			1,489,684			2,521,367			(1,738,536	)		782,831
Impairment losses due to credit loss		(301,791	)		(103,745	)		(23,391	)		(9,354	)		(8,987	)		(447,268	)		(49,595	)		(496,863	)
General and administrative expense		(1,665,281	)		(122,250	)		(42,849	)		(28,859	)		(240,359	)		(2,099,598	)		142,496			(1,957,102	)

Net operating income(expense)		1,984,389			183,737			171,529			60,049			1,269,486			3,669,190			(1,237,002	)		2,432,188

Share of gain of associates		23,664			—			542			227			1,728			26,161			(18,876	)		7,285
Other non-operating income(expense)		32,166			(2,280	)		(52	)		(58	)		1,503			31,279			(2,766	)		28,513

Non-operating income(expense)		55,830			(2,280	)		490			169			3,231			57,440			(21,642	)		35,798

Net income(expense) before tax		2,040,219			181,457			172,019			60,218			1,272,717			3,726,630			(1,258,644	)		2,467,986
Tax expense		(481,432	)		(47,124	)		(47,070	)		(14,881	)		(16,839	)		(607,346	)		(1,845	)		(609,191	)

Net income(loss)		1,558,787			134,333			124,949			45,337			1,255,878			3,119,284			(1,260,489	)		1,858,795

Total assets		448,831,125			15,864,203			12,563,778			5,408,443			27,302,742			509,970,291			(25,025,110	)		484,945,181
Investment in associate		851,514			—			36,642			10,361			22,422,634			23,321,151			(21,960,115	)		1,361,036
Other assets		447,979,611			15,864,203			12,527,136			5,398,082			4,880,108			486,649,140			(3,064,995	)		483,584,145
Total liabilities		424,705,346			13,496,147			11,081,977			4,780,735			3,760,519			457,824,724			(2,385,082	)		455,439,642

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

(*2)

Other segments include 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 Inc., 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month period ended June 30, 2021
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Adjustments (*3)			Total
Net interest income		2,455,888			289,977			144,326			51,365			12,114			2,953,670			368,949			3,322,619
Non-interest income(expense)		880,871			43,409			41,251			27,751			889,701			1,882,983			(1,161,693	)		721,290
Impairment losses due to credit loss		(76,945	)		(66,694	)		(31,589	)		2,566			(3,646	)		(176,308	)		(28,268	)		(204,576	)
General and administrative expense		(1,604,531	)		(102,815	)		(41,224	)		(24,014	)		(216,169	)		(1,988,753	)		133,260			(1,855,493	)

Net operating income(expense)		1,655,283			163,877			112,764			57,668			682,000			2,671,592			(687,752	)		1,983,840

Share of gain of associates		18,053			—			169			119			4,150			22,491			3,750			26,241
Other non-operating income(expense)		14,020			(2,701	)		(16,020	)		(390	)		(1,490	)		(6,581	)		14,248			7,667

Non-operating income(expense)		32,073			(2,701	)		(15,851	)		(271	)		2,660			15,910			17,998			33,908

Net income(expense) before tax		1,687,356			161,176			96,913			57,397			684,660			2,687,502			(669,754	)		2,017,748
Tax expense		(403,630	)		(39,741	)		(14,386	)		(13,362	)		(8,811	)		(479,930	)		(567	)		(480,497	)

Net income(loss)		1,283,726			121,435			82,527			44,035			675,849			2,207,572			(670,321	)		1,537,251

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)	Banking includes gains and losses from separate Bank and local subsidiaries abroad.

(*2)

Other segments include Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Credit Information Co., Ltd., Woori Fund Service Inc., 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.

- 53 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	For the six-month periods ended June 30
	2022	2021
Domestic	2,213,714	1,834,105
Foreign	218,399	149,735

Total	2,432,113	1,983,840

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


	June 30, 2022 (*)	December 31, 2021 (*)
Domestic	5,196,712	5,201,838
Foreign	488,421	482,930

Total	5,685,133	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 six-month periods ended June 30, 2022 and 2021.

- 54 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

6.	CASH AND CASH EQUIVALENTS

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


	June 30, 2022		December 31, 2021
Cash		1,902,722		1,742,449
Foreign currencies		601,355		503,205
Demand deposits		7,202,637		5,161,529
Fixed deposits		309,022		158,635

Total		10,015,736		7,565,818

7.	FINANCIAL ASSETS AT FVTPL

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


	June 30, 2022		December 31, 2021
Financial assets at fair value through profit or loss measured at fair value		20,227,825		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):


	June 30, 2022		December 31, 2021
Deposits:
Gold banking asset		47,731		65,072
Securities:
Debt securities
Korean treasury and government agencies		1,829,870		995,713
Financial institutions		672,416		925,474
Corporates		528,908		751,636
Others		91,500		70,416
Equity securities		364,517		329,864
Capital contributions		1,764,420		1,287,723
Beneficiary certificates		2,598,907		3,504,547
		132,157		94,673

Sub-total		7,982,695		7,960,046

Loans		949,446		667,467
Derivatives assets		11,246,420		4,803,131
Other financial assets		1,533		1,518

Total		20,227,825		13,497,234

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

- 55 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

8.	FINANCIAL ASSETS AT FVTOCI

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


	June 30, 2022		December 31, 2021
Debt securities:
Korean treasury and government agencies		5,620,153		4,728,085
Financial institutions		19,169,359		22,909,615
Corporates		4,533,510		5,091,035
Bond denominated in foreign currencies		6,068,862		5,299,707
Securities loaned		—		98,535

Sub-total		35,391,884		38,126,977

Equity securities		908,186		992,812

Total		36,300,070		39,119,789

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


Purpose of acquisition	June 30, 2022		December 31, 2021		Remarks
Investment for strategic business partnership purpose		732,822		796,835
Debt-equity swap		175,357		195,971
Others		6		6		Insurance for mutual aid association, etc.

Total		908,185		992,812

(3)	Changes in the allowance for credit losses and gross carrying amount of financial assets at FVTOCI for the six-month periods ended June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the six-month period ended June 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		—			—		—		—
Reversal of allowance for credit losses		220			—		—		220
Disposal		369			—		—		369
Others (*)		(1,358	)		—		—		(1,358	)

Ending balance		(12,915	)		—		—		(12,915	)

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


	For the six-month period ended June 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		—			—		—		—
Provision of allowance for credit losses		(2,097	)		—		—		(2,097	)
Disposal		1,670			—		—		1,670
Others (*)		(134	)		—		—		(134	)

Ending balance		(10,192	)		—		—		(10,192	)

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

- 56 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Gross carrying amount


	For the six-month period ended June 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		9,414,126			—		—		9,414,126
Disposal/ Recovery		(11,777,181	)		—		—		(11,777,181	)
Loss on valuation		(722,270	)		—		—		(722,270	)
Amortization based on effective interest method		6,053			—		—		6,053
Others (*)		344,179			—		—		344,179

Ending balance		35,391,884			—		—		35,391,884

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


	For the six-month period ended June 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		13,505,927			—		—		13,505,927
Disposal/ Recovery		(13,436,584	)		—		—		(13,436,584	)
Loss on valuation		(109,965	)		—		—		(109,965	)
Amortization based on effective interest method		(7,024	)		—		—		(7,024	)
Others (*)		150,297			—		—		150,297

Ending balance		29,050,792			—		—		29,050,792

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

(4)

During the six-month period ended June 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 105 million Won, and cumulative gains at disposal dates were 87 million Won. During the six-month period ended June 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 84,460 million Won, and cumulative losses at disposal dates were 46,135 million Won.

9.	SECURITIES AT AMORTIZED COST

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


	June 30, 2022			December 31, 2021
Korean treasury and government agencies		10,094,337			8,882,500
Financial institutions		2,413,619			1,835,947
Corporates		6,081,666			5,818,646
Bond denominated in foreign currencies		1,559,635			554,416
Allowance for credit losses		(6,082	)		(5,235	)

Total		20,143,175			17,086,274

- 57 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 six-month period ended June 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		—			—		—		—
Provision of allowance for credit losses		(835	)		—		—		(835	)
Others (*)		(12	)		—		—		(12	)

Ending balance		(6,082	)		—		—		(6,082	)

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


	For the six-month period ended June 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		—			—		—		—
Reversal of allowance for credit losses		293			—		—		293
Others (*)		(1	)		—		—		(1	)

Ending balance		(4,274	)		—		—		(4,274	)

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

Gross carrying amount


	For the six-month period ended June 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		6,037,379			—		—		6,037,379
Disposal/ Recovery		(3,165,016	)		—		—		(3,165,016	)
Amortization based on effective interest method		25,928			—		—		25,928
Others (*)		159,457			—		—		159,457

Ending balance		20,149,257			—		—		20,149,257

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


	For the six-month period ended June 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		1,496,443			—		—		1,496,443
Disposal/ Recovery		(2,812,675	)		—		—		(2,812,675	)
Amortization based on effective interest method		4,416			—		—		4,416
Others (*)		15,926			—		—		15,926

Ending balance		15,729,515			—		—		15,729,515

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

- 58 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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):


	June 30, 2022		December 31, 2021
Due from banks		29,320,045		15,914,139
Loans		346,851,470		336,799,510
Other financial assets		13,234,043		9,219,223

Total		389,405,558		361,932,872

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


	June 30, 2022			December 31, 2021
Due from banks in local currency:
Due from Bank of Korea (“BOK”)		21,794,887			10,219,055
Due from depository banks		136,820			159,264
Due from non-depository institutions		131			14,146
Due from the Korea Exchange		1,026			54
Others		267,929			191,501
Loss allowance		(5,308	)		(2,452	)

Sub-total		22,195,485			10,581,568

Due from banks in foreign currencies:
Due from banks on demand		4,223,376			3,615,983
Due from banks on time		619,921			205,351
Others		2,286,347			1,514,819
Loss allowance		(5,084	)		(3,582	)

Sub-total		7,124,560			5,332,571

Total		29,320,045			15,914,139

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


	Counterparty	June 30, 2022	Reason of restriction
Due from banks in local currency:
Due from BOK	BOK	21,794,887	Reserve deposits under BOK Act
Due from KSFC	Samsung Futures and others	1,038	Futures trading margin and others
Others	Korea Federation of Savings Banks and others	220,886	Korean Won CCP margin and others

Sub-total		22,016,811

Due from banks in foreign currencies:
Due from banks on demand	BOK and others	4,042,614	Reserve deposits under BOK Act and others
Due from banks on time	National Bank Cambodia	259	Reserve deposits and others
Others	Korea Investment & Securities and others	2,281,072	Overseas futures and options trade deposits and others

Sub-total		6,323,945

Total		28,340,756

- 59 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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 six-month periods ended June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the six-month period ended June 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		(4,195	)		—		—		(4,195	)
Others (*)		(163	)		—		—		(163	)

Ending balance		(10,392	)		—		—		(10,392	)

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


	For the six-month period ended June 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		(3,235	)		—		—		(3,235	)
Others (*)		(29	)		—		—		(29	)

Ending balance		(7,630	)		—		—		(7,630	)

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

- 60 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Gross carrying amount


	For the six-month period ended June 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		13,324,549		—		—		13,324,549
Others (*)		85,715		—		—		85,715

Ending balance		29,330,437		—		—		29,330,437

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


	For the six-month period ended June 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 increase		11,845,544		—		—		11,845,544
Others (*)		27,979		—		—		27,979

Ending balance		21,741,049		—		—		21,741,049

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

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


	June 30, 2022			December 31, 2021
Loans in local currency		281,587,917			273,283,542
Loans in foreign currencies		27,918,412			24,508,250
Domestic banker’s usance		3,577,348			3,403,021
Credit card accounts		10,017,240			9,757,115
Bills bought in foreign currencies		5,802,264			5,310,080
Bills bought in local currency		232,618			265,275
Factoring receivables		37,304			17,406
Advances for customers on guarantees		23,523			26,766
Private placement bonds		530,667			519,150
Securitized loans		3,199,998			2,874,480
Call loans		2,999,733			3,481,219
Bonds purchased under resale agreements		7,458,070			10,332,858
Financial lease receivables		1,391,938			1,173,751
Installment financial bond		3,386,512			2,882,396
Others		150			159
Loan origination costs and fees		882,943			858,051
Discounted present value		(8,156	)		(7,299	)
Allowance for credit losses		(2,187,011	)		(1,886,710	)

Total		346,851,470			336,799,510

- 61 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(6)	Changes in the allowance for credit losses of loans for the six-month periods ended June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 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		(26,915	)		21,357			5,558			(51,780	)		44,270			7,510			—
Transfer to lifetime expected credit losses		10,798			(12,924	)		2,126			18,224			(20,614	)		2,390			—
Transfer to credit-impaired financial assets		3,091			12,317			(15,408	)		1,928			11,464			(13,392	)		—
Net reversal(provision) of allowance for credit losses		(388	)		(36,505	)		(53,291	)		5,052			(215,973	)		(10,067	)		—
Recovery		—			—			(36,740	)		—			—			(33,022	)		—
Charge-off		—			—			70,928			—			—			66,791			—
Disposal		36			64			1,848			344			—			34,450			—
Interest income from impaired loans		—			—			7,659			—			—			4,944			—
Others		(207	)		14			3,005			(31,638	)		(14,884	)		(36,371	)		—

Ending balance		(150,105	)		(113,281	)		(220,932	)		(420,636	)		(772,477	)		(228,000	)		—


	For the six-month period ended June 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		(26,094	)		26,069			25			(104,789	)		91,696			13,093			—
Transfer to lifetime expected credit losses		8,368			(8,564	)		196			37,390			(42,102	)		4,712			—
Transfer to credit-impaired financial assets		660			3,583			(4,243	)		5,679			27,364			(33,043	)		—
Net reversal(provision) of allowance for credit losses		12,765			(30,132	)		(83,398	)		17,429			(282,610	)		(146,755	)		—
Recovery		—			—			(29,344	)		—			—			(99,106	)		—
Charge-off		—			—			95,814			—			—			233,533			—
Disposal		—			—			7,897			380			64			44,194			—
Interest income from impaired loans		—			—			—			—			—			12,603			—
Others		48			—			—			(31,797	)		(14,870	)		(33,366	)		—

Ending balance		(73,067	)		(124,533	)		(83,980	)		(643,808	)		(1,010,291	)		(532,912	)		—

- 62 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month period ended June 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		(17,090	)		16,288			802			(96,884	)		67,540			29,344
Transfer to lifetime expected credit losses		10,008			(12,300	)		2,292			15,840			(38,334	)		22,494
Transfer to credit-impaired financial assets		2,240			14,716			(16,956	)		1,733			24,473			(26,206	)
Net reversal(provision) of allowance for credit losses		(3,047	)		(26,459	)		(52,462	)		82,307			(49,412	)		(86,337	)
Recovery		—			—			(37,106	)		—			—			(25,508	)
Charge-off		—			—			81,855			—			—			133,534
Disposal		—			—			7,224			—			—			15,486
Interest income from impaired loans		—			—			7,126			—			—			6,634
Others		93			364			3,288			(7,112	)		(2,499	)		6,450

Ending balance		(129,323	)		(91,854	)		(209,630	)		(331,576	)		(520,139	)		(312,853	)


	For the six-month period ended June 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		(22,258	)		22,110			148			(136,232	)		105,938			30,294
Transfer to lifetime expected credit losses		7,774			(8,529	)		755			33,622			(59,163	)		25,541
Transfer to credit-impaired financial assets		714			3,830			(4,544	)		4,687			43,019			(47,706	)
Net reversal(provision) of allowance for credit losses		8,752			(22,880	)		(63,397	)		88,012			(98,751	)		(202,196	)
Recovery		—			—			(33,196	)		—			—			(95,810	)
Charge-off		—			—			94,160			—			—			309,549
Disposal		—			—			—			—			—			22,710
Interest income from impaired loans		—			—			—			—			—			13,760
Others		(1	)		—			—			(7,020	)		(2,135	)		9,738

Ending balance		(67,731	)		(95,950	)		(111,611	)		(528,630	)		(707,943	)		(634,094	)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	For the six-month period ended June 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		3,957,415			(3,942,577	)		(14,838	)		1,621,200			(1,603,561	)		(17,639	)		—
Transfer to lifetime expected credit losses		(5,485,367	)		5,503,346			(17,979	)		(3,350,543	)		3,358,862			(8,319	)		—
Transfer to credit-impaired financial assets		(85,063	)		(93,079	)		178,142			(122,307	)		(101,150	)		223,457			—
Charge-off		—			—			(70,928	)		—			—			(66,791	)		—
Disposal		(275	)		(235	)		(10,406	)		(48,472	)		—			(97,191	)		—
Net increase(decrease)		992,447			(759,783	)		(35,739	)		10,566,829			(430,835	)		(128,305	)		182,339

Ending balance		134,518,842			14,208,455			528,221			179,461,962			9,681,595			446,944			182,339


	For the six-month period ended June 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		433,931			(433,889	)		(42	)		6,012,546			(5,980,027	)		(32,519	)		—
Transfer to lifetime expected credit losses		(415,939	)		416,246			(307	)		(9,251,849	)		9,278,454			(26,605	)		—
Transfer to credit-impaired financial assets		(27,646	)		(32,338	)		59,984			(235,016	)		(226,567	)		461,583			—
Charge-off		—			—			(95,814	)		—			—			(233,533	)		—
Disposal		—			—			(17,082	)		(48,747	)		(235	)		(124,679	)		—
Net increase(decrease)		308,695			(9,668	)		73,475			11,867,971			(1,200,286	)		(90,569	)		182,339

Ending balance		8,538,344			1,335,490			136,289			322,519,148			25,225,540			1,111,454			182,339

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month period ended June 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		3,730,443			(3,721,667	)		(8,776	)		1,534,004			(1,501,081	)		(32,923	)
Transfer to lifetime expected credit losses		(6,030,431	)		6,053,085			(22,654	)		(3,097,859	)		3,143,555			(45,696	)
Transfer to credit-impaired financial assets		(64,415	)		(86,834	)		151,249			(166,253	)		(149,253	)		315,506
Charge-off		—			—			(81,855	)		—			—			(133,534	)
Disposal		—			—			(26,261	)		—			—			(66,527	)
Net increase(decrease)		4,935,139			(931,914	)		(25,244	)		7,239,175			(673,197	)		(122,212	)

Ending balance		128,560,774			13,329,381			523,565			155,083,999			8,148,765			632,523


	For the six-month period ended June 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		307,122			(306,941	)		(181	)		5,571,569			(5,529,689	)		(41,880	)
Transfer to lifetime expected credit losses		(473,197	)		474,086			(889	)		(9,601,487	)		9,670,726			(69,239	)
Transfer to credit-impaired financial assets		(27,962	)		(27,424	)		55,386			(258,630	)		(263,511	)		522,141
Charge-off		—			—			(94,160	)		—			—			(309,549	)
Disposal		—			—			—			—			—			(92,788	)
Net increase(decrease)		973,542			(88,350	)		44,553			13,147,856			(1,693,461	)		(102,903	)

Ending balance		8,058,480			1,129,591			184,783			291,703,253			22,607,737			1,340,871

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


	June 30, 2022			December 31, 2021
Cash Management Account asset (CMA asset)		87,000			140,000
Receivables		10,398,364			6,852,139
Accrued income		1,313,191			1,049,857
Telex and telephone subscription rights and refundable deposits		820,269			870,707
Domestic exchange settlement debit		406,020			82,555
Other assets		342,080			290,746
Allowance for credit losses		(132,881	)		(66,781	)

Total		13,234,043			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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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	For the six-month period ended June 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		(207	)		194			13			—
Transfer to lifetime expected credit losses		216			(246	)		30			—
Transfer to credit-impaired financial assets		340			394			(734	)		—
Provision of allowance for credit losses		(181	)		(3,298	)		(63,900	)		(67,379	)
Charge-off		—			—			854			854
Disposal		—			—			347			347
Others		298			(3	)		(217	)		78

Ending balance		(3,209	)		(8,539	)		(121,133	)		(132,881	)


	For the six-month period ended June 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		(204	)		196			8			—
Transfer to lifetime expected credit losses		156			(173	)		17			—
Transfer to credit-impaired financial assets		178			414			(592	)		—
Reversal(Provision) of allowance for credit losses		564			(930	)		(4,179	)		(4,545	)
Charge-off		—			—			987			987
Disposal		—			—			557			557
Others		(1,873	)		(4	)		1,292			(585	)

Ending balance		(4,845	)		(5,947	)		(76,089	)		(86,881	)

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


	For the six-month period ended June 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		8,376			(8,362	)		(14	)		—
Transfer to lifetime expected credit losses		(40,256	)		40,286			(30	)		—
Transfer to credit-impaired financial assets		(2,075	)		(2,247	)		4,322			—
Charge-off		—			—			(854	)		(854	)
Disposal		(5	)		—			(462	)		(467	)
Net increase		4,061,356			(38,338	)		59,223			4,082,241

Ending balance		13,031,935			97,936			237,053			13,366,924


	For the six-month period ended June 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		7,997			(7,984	)		(13	)		—
Transfer to lifetime expected credit losses		(13,729	)		13,759			(30	)		—
Transfer to credit-impaired financial assets		(800	)		(1,038	)		1,838			—
Charge-off		—			—			(987	)		(987	)
Disposal		—			—			(686	)		(686	)
Net increase		2,157,975			26,038			8,322			2,192,335

Ending balance		9,418,869			107,193			196,631			9,722,693

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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


	June 30, 2022
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		47,731		—		—		47,731
Debt securities		1,657,004		1,464,514		1,176		3,122,694
Equity securities		31,859		—		332,658		364,517
Capital contributions		—		—		1,764,420		1,764,420
Beneficiary certificates		53,397		1,155,681		1,389,829		2,598,907
Loans		—		752,350		197,096		949,446
Derivative assets (Designated for trading)		65,825		11,099,709		80,886		11,246,420
Others		—		—		133,690		133,690

Sub-total		1,855,816		14,472,254		3,899,755		20,227,825

Financial assets at FVTOCI
Debt securities		10,858,471		24,533,413		—		35,391,884
Equity securities		351,751		—		556,435		908,186

Sub-total		11,210,222		24,533,413		556,435		36,300,070

Derivative assets (Designated for hedging)		—		72,211		—		72,211

Total		13,066,038		39,077,878		4,456,190		56,600,106

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		47,663		—		—		47,663
Derivative liabilities (Designated for trading)		19,938		12,064,909		2,465		12,087,312
Securities sold		129,788		—		—		129,788

Sub-total		197,389		12,064,909		2,465		12,264,763

Derivative liabilities (Designated for hedging)		—		116,065		—		116,065

Total		197,389		12,180,974		2,465		12,380,828

(*)	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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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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 (Designated for trading)		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 (Designated for trading)		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.

- 69 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 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 net asset value method.	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 June 30, 2022 and December 31, 2021 are as follows:


	Valuation methods	Input variables
Loans and bond with option	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, credit spread, discount rate and terminal growth rate
Debt securities	The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to debt securities issuers. Fair value is measured by models such as LSMC(Least-Squares Monte Carlo), Hull-white.	Risk-free market rate, credit spread, discount rate originated credit grade, volatility of stock price, volatility of interest rate
Equity securities, capital contributions and Beneficiary certificates	Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, 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, 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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	Input variable	Range(%)	Impact of changes in significant unobservable inputs on fair value measurement
Loans	Binomial Tree		Stock prices, Volatility of underlying asset	22.31%	Variation of fair value increases as volatility of underlying asset increases.
	LSMC		Stock prices, Volatility of underlying asset	—	Variation of fair value increases as volatility of underlying asset increases.
Derivative assets	Option valuation model and others	Interest rate related	Correlation coefficient	0.90~0.98	Variation of fair value increases as correlation coefficient increases.
			Volatility of underlying asset	21.00%~35.10%	Variation of fair value increases as volatility of underlying assets increases.
		Equity related	Correlation coefficient	0.15~0.72	Variation of fair value increases as correlation coefficient increases.
	DCF model	Interest rate related	Credit risk adjustment ratio	100.00%	Fair value decreases as credit risk adjustment ratio increases.
Derivative liabilities	Option valuation model and others	Interest rate related	Correlation coefficient	0.90~0.98	Variation of fair value increases as correlation coefficient increases.
			Volatility of underlying asset	21.00%~35.10%	Variation of fair value increases as volatility of underlying assets increases.
		Equity related	Correlation coefficient	0.15~0.72	Variation of fair value increases as correlation coefficient increases.
Equity securities, capital contributions, and beneficiary certificates	Binomial Tree		Stock prices, Volatility of underlying asset	23.14%	Variation of fair value increases as volatility of underlying asset increases.
	DCF model and others		Discount rate	2.10%~17.65%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%, 1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	0.00%	Fair value increases as liquidation value increases.
Others	Binomial Tree		Stock prices, Volatility of underlying asset	17.82%~34.63%	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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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 six-month period ended June 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		59			—		—			(1,000	)		—		1,176
Equity securities		303,985		(4,449	)		—		47,955			(14,833	)		—		332,658
Capital contributions		1,287,723		157,518			—		419,686			(100,507	)		—		1,764,420
Beneficiary certificates		1,104,074		39,954			—		306,097			(60,296	)		—		1,389,829
Loans		213,635		5,358			—		367,966			(389,863	)		—		197,096
Derivative assets		29,348		49,793			—		2,651			(906	)		—		80,886
Others		96,191		12,604			—		27,870			(2,975	)		—		133,690

Sub-total		3,037,073		260,837			—		1,172,225			(570,380	)		—		3,899,755

Financial assets at FVTOCI
Equity securities		581,455		—			982		303			(26,305	)		—		556,435

Total		3,618,528		260,837			982		1,172,528			(596,685	)		—		4,456,190

Financial liabilities:
Derivative liabilities		4,641		2,026			—		(1,012	)		(3,190	)		—		2,465

Total		4,641		2,026			—		(1,012	)		(3,190	)		—		2,465

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The statements of comprehensive income includes gain of 228,110 million Won included in net gain(loss) on financial assets at FVTPL and net gain(loss) on financial assets at FVTOCI pertaining to the assets and liabilities held by the Group at the end of the period.

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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month period ended June 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		(765	)		—			—			—			—			3,853
Equity securities		450,371		(12,065	)		—			13,083			(25,416	)		—			425,973
Capital contributions		865,685		35,844			—			209,861			(123,577	)		—			987,813
Beneficiary certificates		1,917,811		23,203			—			166,461			(72,654	)		—			2,034,821
Loans		209,062		9,231			—			444,975			(371,797	)		—			291,471
Derivative assets		7,872		(243	)		—			512			(1,770	)		(5,838	)		533
Others		84,979		6,944			—			6,998			(5,156	)		—			93,765

Sub-total		3,540,398		62,149			—			841,890			(600,370	)		(5,838	)		3,838,229

Financial assets at FVTOCI
Equity securities		570,715		—			(1,555	)		242			(119	)		—			569,283

Total		4,111,113		62,149			(1,555	)		842,132			(600,489	)		(5,838	)		4,407,512

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		20,136		25,916			—			(4,642	)		(12,509	)		(6,254	)		22,647
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		19,630		(102	)		—			—			(19,528	)		—			—

Total		39,766		25,814			—			(4,642	)		(32,037	)		(6,254	)		22,647

(*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 27,221 million Won for the six-month period ended June 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 which events have occurred or conditions have changed.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 4,458,654 million Won and 3,623,168 million Won as of June 30, 2022 and December 31, 2021 respectively, equity instruments of 2,902,737 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 June 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


	June 30, 2022
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		3,565		(3,242	)		—		—
Loans (*2)		263		(260	)		—		—
Debt securities		17		(16	)		—		—
Equity securities (2) (3) (*4)		10,150		(8,013	)		—		—
Beneficiary certificates (*4)		579		(579	)		—		—
Financial assets at FVTOCI
Equity securities (3) (4)		—		—			30,887		(22,850	)

Total		14,574		(12,110	)		30,887		(22,850	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		132		(166	)		—		—

Total		132		(166	)		—		—

(*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%.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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):


	June 30, 2022
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,732,274		16,598,751		—		19,331,025		20,143,175
Loans and other financial assets at amortized cost		—		10,054,070		371,964,854		382,018,924		389,405,558
Financial liabilities:
Deposits due to customers		—		334,509,547		—		334,509,547		335,223,351
Borrowings		—		29,136,174		1,894,242		31,030,416		31,383,588
Debentures		—		45,640,039		—		45,640,039		46,817,330
Other financial liabilities		—		26,658,912		412,048		27,070,960		27,461,278


	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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(6)	Financial instruments by category

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


	June 30, 2022
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Deposits		47,731		—		29,320,045		—		29,367,776
Securities		7,982,695		36,300,070		20,143,175		—		64,425,940
Loans		949,446		—		346,851,470		—		347,800,916
Derivative assets		11,246,420		—		—		72,211		11,318,631
Other financial assets		1,533		—		13,234,043		—		13,235,576

Total		20,227,825		36,300,070		409,548,733		72,211		466,148,839


	June 30, 2022
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Deposits due to customers		47,663		335,223,351		—		335,271,014
Borrowings		129,788		31,383,588		—		31,513,376
Debentures		—		46,817,330		—		46,817,330
Derivative liabilities		12,087,312		—		116,065		12,203,377
Other financial liabilities		—		27,461,278		—		27,461,278

Total		12,264,763		440,885,547		116,065		453,266,375


	December 31, 2021
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
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	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(7)	Income or expense from financial instruments by category

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


	For the six-month period ended June 30, 2022
	Interest income(expense)			Fees and commissions income		Reversal (provision) of credit loss			Gain(loss) on valuation and transactions			Dividends, etc.		Total
Financial assets at FVTPL		37,735			6		—			341,427			60,355		439,523
Financial assets at FVTOCI		291,582			1,044		220			(1,650	)		18,567		309,763
Securities at amortized cost		188,108			—		(835	)		—			—		187,273
Loans and other financial assets at amortized cost		5,695,990			285,632		(483,511	)		66,958			—		5,565,069
Financial liabilities at amortized cost		(2,106,454	)		1,109		—			—			—		(2,105,345	)
Net derivatives (designated for hedging)		—			—		—			84,780			—		84,780

Total		4,106,961			287,791		(484,126	)		491,515			78,922		4,481,063


	For the six-month period ended June 30, 2021
	Interest income(expense)			Fees and commissions income(expense)			Reversal (provision) of credit loss			Gain(loss) on valuation and transactions		Dividends, etc.		Total
Financial assets at FVTPL		22,420			(42	)		—			136,407		114,442		273,227
Financial assets at FVTOCI		175,607			840			(2,097	)		45,059		16,296		235,705
Securities at amortized cost		161,372			—			293			—		—		161,665
Loans and other financial assets at amortized cost		4,351,072			244,135			(220,715	)		38,680		—		4,413,172
Financial liabilities at amortized cost		(1,384,080	)		1,114			—			—		—		(1,382,966	)
Net derivatives (designated for hedging)		—			—			—			34,380		—		34,380

Total		3,326,391			246,047			(222,519	)		254,526		130,738		3,735,183

- 78 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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	June 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	2022.5.31(*5)
Korea Credit Bureau Co., Ltd. (*2)	Credit information		9.9		9.9	Korea	2022.6.30
Korea Finance Security Co., Ltd. (*1)	Security service		15.0		15.0	Korea	2022.5.31(*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	2022.6.30
2016KIF-IMM Woori Bank Technology Venture Fund	Other financial services		20.0		20.0	Korea	2022.6.30
K BANK Co., Ltd. (*2)	Finance		12.6		12.6	Korea	2022.5.31(*5)
Woori Bank-Company K Korea Movie Asset Fund(*9)	Other financial services		25.0		25.0	Korea	2021.12.16(*5)
Partner One Value Up I Private Equity Fund	Other financial services		23.3		23.3	Korea	2022.6.30
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership	Other financial services		20.0		20.0	Korea	2022.6.30
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund	Other financial services		25.0		25.0	Korea	2022.6.30
LOTTE CARD Co., Ltd.	Credit card and installment financing		20.0		20.0	Korea	2022.3.31(*5)
Together-Korea Government Private Pool Private Securities Investment Trust No.3	Other financial services		100.0		100.0	Korea	2022.6.30
Genesis Environmental Energy Company 1st Private Equity Fund(*8)	Trust and collective investment		—		24.8	Korea	—
Union Technology Finance Investment Association	Trust and collective investment		29.7		29.7	Korea	2022.6.30
Dicustody Co., Ltd.(*2)	Other information technology and computer operation related services		1.0		1.0	Korea	2022.6.30
Orient Shipyard Co., Ltd.(*3)	Manufacture of sections for ships		22.7		—	Korea	—

Woori Bank (*6)
Japanese Hotel Real Estate Private Equity Fund 2	Other financial services		19.9		19.9	Korea	2022.6.30
Woori Seoul Beltway Private Special Asset Fund No.1	Trust and collective investment		25.0		25.0	Korea	2022.6.30

- 79 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


		Percentage of ownership (%)
Joint ventures and associates	Main business	June 30, 2022		December 31, 2021		Location	Financial statements as of
Woori Multi-Return Securities Investment Trust 3 (Balanced Bond)	Collective investment business		20.0		20.0	Korea	2022.6.30
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F	Collective investment business		26.6		14.5	Korea	2022.6.30
Woori Safe Plus General Type Private Investment Trust S-8(Bond)	Collective investment business		16.6		—	Korea	2022.6.30
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1(*10)	Collective investment business		22.2		—	Korea	2022.6.30

Woori Financial Capital Co., Ltd.
WOORI TAERIM 1st Fund	Other financial services		25.6		25.6	Korea	2022.6.30
Portone-Cape Fund No.1	Other financial services		20.0		20.0	Korea	2022.6.30
KIWOOM WOORI Financial 1st Fund (*7)	Other financial services		9.1		9.1	Korea	2022.6.30
DeepDive WOORI 2021-1 Financial Investment Fund (*7)	Other financial services		11.9		11.9	Korea	2022.6.30
Darwin Green Packaging Private Equity Fund	Other financial services		20.4		20.4	Korea	2022.6.30
DS Power Semicon Private Equity Fund	Other financial services		21.0		—	Korea	2022.6.30
Koreawide partners 2nd Private Equity Fund	Other financial services		26.7		—	Korea	2022.6.30

Woori Investment Bank Co., Ltd. (*6)
Woori FirstValue Private Real Estate Fund No.2	Real estate business		12.0		12.0	Korea	2022.6.30
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust	Investment trust and discretionary investment business		0.2		0.3	Korea	2022.6.30

Woori Asset Management Co., Ltd.
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)(*12)	Collective investment business		22.2		—	Korea	2022.6.30
Woori Together TDF 2025(*12)	Collective investment business		24.8		—	Korea	2022.6.30
Woori Together TDF 2030(*12)	Collective investment business		24.2		—	Korea	2022.6.30

Woori Private Equity Asset Management Co., Ltd.
Woori Hanhwa Eureka Private Equity Fund (*2)	Other financial services		0.8		0.8	Korea	2022.6.30
Aarden Woori Apparel 1st Private Equity Fund (*2)	Other financial services		0.5		0.5	Korea	2022.6.30
Woori Dyno 1st Private Equity Fund (*2)	Other financial services		19.6		—	Korea	2022.6.30

Japanese Hotel Real Estate Private Equity Fund 1
Godo Kaisha Oceanos 1	Other financial services		47.8		47.8	Japan	2022.04.30(*5)

- 80 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


		Percentage of ownership (%)
Joint ventures and associates	Main business	June 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		61		63.9	Japan	2022.3.31(*5)
Woori Zip 2	Other financial services		60.5		63.8	Japan	2022.3.31(*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		29.7		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	2022.3.31(*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	2022.3.31(*5)
Jinmyung Plus Co., Ltd	Manufacturing		21.3		21.3	Korea	2022.3.31(*5)

Woori bank and Woori Financial Capital Co., Ltd. (*6)
JC Assurance No.2 Private Equity Fund	Collective investment business		24.4		24.4	Korea	2022.6.30
Dream Company Growth no.1 PEF	Collective investment business		27.8		27.8	Korea	2022.6.30
HMS-Oriens 1st Fund	Trust and collective investment		22.8		22.8	Korea	2022.6.30
Woori G Senior Loan Private Placement Investment Trust No.1	Investment trust and discretionary investment business		21.7		21.7	Korea	2022.6.30
Genesis Eco No.1 Private Equity Fund	Other financial services		29.0		29.0	Korea	2022.6.30
Paratus Woori Materials, Parts, Equipments Private Equity Fund	Other financial services		29.9		29.9	Korea	2022.6.30
Midas No. 8 Private Equity Joint Venture Company	Other financial services		28.5		28.5	Korea	2022.6.30
Orchestra Private Equity Fund IV	Other financial services		28.2		—	Korea	2022.6.30
Synaptic Green No.1 PEF	Other financial services		21.1		—	Korea	2022.6.30
IGEN2022No. 1 Private Equity Fund	Other financial services		24.8		—	Korea	2022.6.30

- 81 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Percentage of ownership (%)

Joint ventures and associates

Main business

June 30, 2022

December 31,
2021

Location

Financial

statements as of

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

PCC-Woori LP Secondary Fund

Other financial services

38.8

Korea

2022.6.30

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

Trust and collective investment

35.5

38.1

Korea

2022.6.30

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

2022.6.30

(*1)	Most of the significant business transactions of associates are with the Group as of June 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 June 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 14 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 December 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.

- 82 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 six-month period ended June 30, 2022
	Acquisition cost		January 1, 2021		Share of profits(losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2022
W Service Networks Co., Ltd.		108		183		13			—		—			(4	)		—			192
Korea Credit Bureau Co., Ltd.		3,313		9,423		(4,104	)		—		—			—			—			5,319
Korea Finance Security Co., Ltd.		3,267		3,101		(251	)		—		—			—			—			2,850
Woori Growth Partnerships New Technology Private Equity Fund		13,731		12,448		579			—		(1,260	)		—			—			11,767
2016KIF-IMM Woori Bank Technology Venture Fund		8,056		12,629		(1,277	)		—		(340	)		(616	)		—			10,396
K BANK Co., Ltd.		236,232		239,493		5,575			—		—			—			(2,890	)		242,178
Woori Bank-Company K Korea Movie Asset Fund		—		345		—			—		—			—			—			345
Partner One Value Up I Private Equity Fund		5,039		6,575		(3,032	)		—		—			—			—			3,543
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		9,736		11,153		1,249			—		—			—			—			12,402
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,305		4,255		—			50		—			—			—			4,305
LOTTE CARD Co.,Ltd.		346,810		458,295		23,843			—		—			(12,960	)		5,572			474,750
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,070		59			—		—			—			—			10,129
Genesis Environmental Energy Company 1st Private Equity Fund		—		4,126		(41	)		—		(3,738	)		(347	)		—			—
Union Technology Finance Investment Association		15,000		12,388		(175	)		2,250		—			—			—			14,463
Dicustody Co., Ltd.		1		1		—			—		—			—			—			1
Japanese Hotel Real Estate Private Equity Fund 2		3,174		3,196		57			—		—			(164	)		(254	)		2,835
Woori Seoul Beltway Private Special Asset Fund		8,503		7,551		98			1,001		—			(94	)		—			8,556
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		10,000		10,023		(1	)		—		—			(73	)		—			9,949
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		200,000		151,822		596			50,000		—			(1,972	)		—			200,446
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		10,000		—		35			10,000		—			(48	)		—			9,987
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		(9	)		—		—			—			—			964
DeepDive WOORI 2021-1 Financial Investment Fund		1,000		993		(10	)		—		—			—			—			983
Darwin Green Packaging Private Equity Fund		4,000		3,957		419			—		—			(400	)		—			3,976
DS Power Semicon Private Equity Fund		3,000		—		157			3,000		—			(192	)		—			2,965
Koreawide partners 2nd Private Equity Fund		20,000		—		(137	)		20,000		—			—			—			19,863

- 83 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Acquisition cost		January 1, 2021		Share of profits(losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2022
Woori FirstValue Private Real Estate Fund No.2		9,000		763		—			—		(199	)		—			—			564
Woori High plus G.B. Securities Feeder Fund1(G.B.)		100		100		2			—		—			—			—			102
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		1,200		—		(136	)		—		1,239			—			—			1,103
Woori Together TDF 2025		2,000		—		(185	)		—		2,193			—			—			2,008
Woori Together TDF 2030		2,000		—		(206	)		—		2,247			—			—			2,041
Woori Hanhwa Eureka Private Equity Fund		86		327		(45	)		—		(77	)		(24	)		—			181
Aarden Woori Apparel 1st Private Equity Fund		100		99		(1	)		—		—			—			—			98
Woori Dyno 1st Private Equity Fund		2,000		—		(17	)		2,000		—			—			—			1,983
Godo Kaisha Oceanos 1		10,800		9,905		8			—		—			(497	)		(113	)		9,303
Woori Zip 1		10,143		10,496		13			—		—			—			(852	)		9,657
Woori Zip 2		14,254		14,732		(74	)		—		—			—			(1,196	)		13,462
Force TEC Co., Ltd. (*)		—		—		(16	)		—		—			—			16			—
KUM HWA Co., Ltd. (*)		—		—		—			—		—			—			—			—
Jinmyung Plus Co., Ltd		—		—		16			—		—			—			—			16
JC Assurance No.2 Private Equity Fund		29,349		17,728		(17,728	)		—		—			—			—			—
Dream Company Growth no.1 PEF		7,706		7,914		(27	)		—		—			—			—			7,887
HMS-Oriens 1st Fund		12,000		12,007		749			—		—			—			—			12,756
Woori G Senior Loan No.1		81,274		88,029		1,900			14,073		(19,888	)		(1,829	)		—			82,285
Genesis Eco No.1 Private Equity Fund		11,805		11,120		(6	)		—		—			—			—			11,114
Paratus Woori Materials, Parts, Equipments Private Equity Fund		17,700		17,493		(118	)		—		—			—			—			17,375
Midas No. 8 Private Equity Joint Venture Company		19,000		18,968		(129	)		—		—			—			—			18,839
Orchestra Private Equity Fund IV		10,000		—		(232	)		10,000		—			—			—			9,768
Synaptic Green No.1 PEF		8,000		—		(134	)		8,000		—			—			—			7,866
IGEN2022No. 1 Private Equity Fund		8,000		—		(76	)		8,000		—			—			—			7,924
PCC-Woori LP Secondary Fund		10,100		12,350		445			—		—			—			—			12,795
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		20,000		73,787		(3,569	)		—		(50,937	)		(190	)		—			19,091
Woori-Q Corporate Restructuring Private Equity Fund		26,790		46,155		1,270			262		(19,057	)		—			—			28,630
Woori-Shinyoung Growth-Cap Private Equity Fund I		17,018		28,714		1,653			—		—			—			—			30,367

		1,248,140		1,335,167		6,977			128,636		(89,817	)		(19,410	)		283			1,361,836

(*)	As a result of discontinuation of the equity method, related companies’ losses amount not recognized is 81 million Won for Force TEC Co., Ltd. and 1 million Won for KUM HWA Co., Ltd. and cumulated amount is 878 million Won for Force TEC Co., Ltd. and 3 million Won for KUM HWA Co., Ltd..

- 84 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month period ended June 30, 2021
	Acquisition cost		January 1, 2021		Share of profits(losses)			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2021
W Service Networks Co., Ltd.		108		191		(21	)		—		—			(4	)		—			166
Korea Credit Bureau Co., Ltd.		3,313		8,125		458			—		—			(90	)		—			8,493
Korea Finance Security Co., Ltd.		3,267		3,066		(56	)		—		—			—			—			3,010
Woori Growth Partnerships New Technology Private Equity Fund		16,371		15,032		(614	)		—		(567	)		—			(7	)		13,844
2016KIF-IMM Woori Bank Technology Venture Fund		11,060		13,238		(182	)		—		(833	)		—			—			12,223
K BANK Co., Ltd.		236,232		174,097		(8,332	)		—		—			—			(1,772	)		163,993
Smart Private Equity Fund No.2		—		1,481		(796	)		—		(685	)		—			—			—
Woori Bank-Company K Korea Movie Asset Fund		600		2,788		86			—		(1,500	)		—			—			1,374
Partner One Value Up I Private Equity Fund		10,000		9,816		(76	)		—		—			—			(16	)		9,724
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		12,826			—		—			(10,374	)		3,248			428,532
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,023		18			—		—			—			—			10,041
Genesis Environmental Energy Company 1st Private Equity Fund		3,738		3,979		28			—		—			—			—			4,007
Union Technology Finance Investment Association		10,500		4,485		(175	)		6,000		—			—			—			10,310
Japanese Hotel Real Estate Private Equity Fund 2		3,291		3,234		76			—		—			(104	)		(98	)		3,108
Woori G Clean Energy No.1		2,477		1,024		138			1,462		—			—			—			2,624
Woori Goseong Power EBL Private Special Asset Fund		14,915		15,118		245			—		—			(246	)		—			15,117
Woori Seoul Beltway Private Special Asset Fund		6,273		5,613		54			831		—			(48	)		—			6,450
Woori Corporate Private Securities Fund 1(Bond)		10,000		—		(27	)		10,000		—			—			—			9,973
Woori G Star Private Placement Investment Trust No.33 [FI]		20,000		—		63			20,000		—			—			—			20,063
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		10,000		—		(28	)		10,000		—			—			—			9,972
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		50,000		—		444			50,000		—			—			—			50,444
AJU TAERIM 1st Fund		1,100		283		(11	)		—		—			—			—			272
Portone-Cape Fund No.1		340		960		189			—		(660	)		—			—			489
KIWOOM PE AJU Investment Fund		1,000		994		(10	)		—		—			—			—			984
Woori FirstValue Private Real Estate Fund No.2		9,000		2,130		(637	)		—		—			—			—			1,493
Woori High plus G.B. Securities Feeder Fund1(G.B.)		6,000		6,076		(29	)		—		—			—			—			6,047
Woori Star50 Master Fund ClassC-F		—		184		35			—		(219	)		—			—			—

- 85 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	For the six-month period ended June 30, 2021
	Acquisition cost		January 1, 2021		Share of profits(losses)			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2021
Uri Hanhwa Eureka Private Equity Fund		350		403		(2	)		—		—			—			—			401
Aarden Woori Apparel 1st Private Equity Fund		100		—		—			100		—			—			—			100
Godo Kaisha Oceanos 1		10,800		10,193		(2	)		—		—			(370	)		(32	)		9,789
Force TEC Co., Ltd.		—		393		(393	)		—		—			—			—			—
KUM HWA Co., Ltd.		—		—		1			—		—			—			—			1
JC Assurance No.2 Private Equity Fund		29,349		29,050		(370	)		299		—			—			—			28,979
Dream Company Growth no.1 PEF		8,000		7,705		234			—		—			—			—			7,939
HMS-Oriens 1st Fund		12,000		12,000		250			—		—			—			—			12,250
Woori G Senior Loan No.1		64,950		52,045		1,289			12,991		—			(562	)		—			65,763
Genesis Eco No.1 Private Equity Fund		10,704		—		(683	)		10,704		—			—			—			10,021
Paratus Woori Materials, Parts, Equipments Private Equity Fund		16,400		—		(2	)		16,400		—			—			—			16,398
PCC-Woori LP Secondary Fund		10,100		8,128		160			2,525		—			—			—			10,813
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		110,221		93,474		490			20,000		—			(2,503	)		—			111,461
Woori-Q Corporate Restructuring Private Equity Fund		20,148		22,904		1,068			—		(2,996	)		—			—			20,976
Woori-Shinyoung Growth-Cap Private Equity Fund I		41,622		38,342		20,537			10,420		—			—			(96	)		69,202

		1,139,567		993,291		26,241			176,835		(8,020	)		(14,301	)		1,227			1,175,274

- 86 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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):


	June 30, 2022
	Assets		Liabilities		Operating revenue			Net income (loss)			Other comprehensive income(loss)			Total comprehensive income(loss)
W Service Networks Co., Ltd.		6,534		2,645		8,996			878			—			878
Korea Credit Bureau Co., Ltd.		135,621		84,456		69,450			9,874			—			9,874
Korea Finance Security Co., Ltd.		29,348		10,346		22,398			(681	)		—			(681	)
Woori Growth Partnerships New Technology Private Equity Fund		51,177		187		3,981			2,571			—			2,571
2016KIF-IMM Woori Bank Technology Venture Fund		52,230		246		362			(6,136	)		—			(6,136	)
K BANK Co., Ltd.		13,344,250		11,591,623		184,523			41,132			(26,844	)		14,288
Woori Bank-Company K Korea Movie Asset Fund(*1)		1,383		2		1,075			543			—			543
Partner One Value Up I Private Equity Fund		15,238		—		11,972			10,914			—			10,914
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		62,423		414		6,662			6,242			—			6,242
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,806		97		—			(190	)		—			(190	)
LOTTE CARD Co.,Ltd (*2)		17,390,511		14,785,584		550,214			90,761			19,041			109,802
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,132		1		101			94			—			94
Union Technology Finance Investment Association		48,982		290		13			(589	)		—			(589	)
Dicustody Co., Ltd.		97		—		—			(1	)		—			(1	)
Japanese Hotel Real Estate Private Equity Fund 2		14,286		13		303			289			(1,277	)		(988	)
Woori Seoul Beltway Private Special Asset Fund No.1		34,227		1		45			43			—			43
Woori Multi-Return Securities Investment Trust 3 (Balanced Bond)		81,275		31,529		377			(3	)		—			(3	)
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		905,953		153,029		3,822			2,847			—			2,847
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		60,129		6		401			353			—			353
WOORI TAERIM 1st Fund		4,047		185		—			(13	)		—			(13	)
Portone-Cape Fund No.1		2,344		—		—			(103	)		—			(103	)
KIWOOM WOORI Financial 1st Investment Fund		10,708		109		—			(109	)		—			(109	)
DeepDive WOORI 2021-1 Financial Investment Fund		8,256		—		—			(83	)		—			(83	)
Darwin Green Packaging Private Equity Fund		19,483		—		2,215			2,055			—			2,055
DS Power Semicon Private Equity Fund		14,175		43		750			582			—			582
Koreawide partners 2nd Private Equity Fund		77,506		3,020		—			(514	)		—			(514	)
Woori FirstValue Private Real Estate Fund No.2		67,057		62,357		—			(3	)		—			(3	)
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		67,202		50		1,232			1,079			—			1,079
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		5,061		116		204			(542	)		—			(542	)
Woori Together TDF 2025		8,223		114		705			(998	)		—			(998	)
Woori Together TDF 2030		8,620		196		759			(1,156	)		—			(1,156	)
Woori Hanhwa Eureka Private Equity Fund		22,369		31		(5,604	)		(5,643	)		—			(5,643	)
Aarden Woori Apparel 1st Private Equity Fund		20,913		97		1			(170	)		—			(170	)
Woori Dyno 1st Private Equity Fund		10,166		51		65			(85	)		—			(85	)
Godo Kaisha Oceanos 1		64,812		45,351		1,505			17			—			17
Woori Zip 1		50,337		34,508		1,131			21			—			21
Woori Zip 2		71,334		49,091		1,572			(119	)		—			(119	)
Force TEC Co., Ltd.		12,302		24,235		7,852			(573	)		—			(573	)
KUM HWA Co., Ltd.		7		157		—			(4	)		—			(4	)
Jinmyung Plus Co.,Ltd.		569		492		209			(20	)		—			(20	)

- 87 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	June 30, 2022
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)		Total comprehensive income(loss)
JC Assurance No.2 Private Equity Fund		122,338		17		—		(619	)		—		(619	)
Dream Company Growth no.1 PEF		28,444		50		—		(95	)		—		(95	)
HMS-Oriens 1st Fund		55,919		6		1,376		1,102			—		1,102
Woori G Senior Loan Private Placement Investment Trust No.1		380,097		21		9,319		8,775			—		8,775
Genesis Eco No.1 Private Equity Fund		38,344		—		47		(273	)		—		(273	)
Paratus Woori Materials, Parts, Equipments Private Equity Fund		58,314		200		6		(392	)		—		(392	)
Midas No. 8 Private Equity Joint Venture Company		66,366		232		22		(453	)		—		(453	)
Orchestra Private Equity Fund IV		34,678		—		1		(451	)		—		(451	)
Synaptic Green No.1 PEF		37,366		—		1		(634	)		—		(634	)
IGEN2022No. 1 Private Equity Fund		32,020		126		—		(306	)		—		(306	)
PCC-Woori LP Secondary Fund		32,942		—		1,005		671			—		671
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		86,155		—		2,271		(2,532	)		—		(2,532	)
Woori-Q Corporate Restructuring Private Equity Fund		81,222		683		3,019		1,001			—		1,001
Woori-Shinyoung Growth-Cap Private Equity Fund I		81,469		309		5		(611	)		—		(611	)

(*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.

- 88 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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	)

- 89 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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.

- 90 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 June 30, 2022 and December 31, 2021 are as follows:


	June 30, 2022
Associate (*)	Number of shares owned		Ownership (%)
Yuil PESC Co., Ltd.		8,642		24
CL Tech Co., Ltd.		10,191		28.60
S.WIN Co., Ltd.		20,301		20
Choongang Network Solution Co., Ltd.		90,006		25.70

(*)	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 June 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):


	June 30, 2022
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
W Service Networks Co., Ltd.		3,889		4.9		192		—		—		—		192
Korea Credit Bureau Co., Ltd.		51,166		9.9		5,073		246		—		—		5,319
Korea Finance Security Co., Ltd.		19,002		15.0		2,850		—		—		—		2,850
Woori Growth Partnerships New Technology Private Equity Fund		50,990		23.1		11,767		—		—		—		11,767
2016KIF-IMM Woori Bank Technology Venture Fund		51,984		20.0		10,396		—		—		—		10,396
K BANK Co., Ltd. (*)		1,751,654		12.6		220,284		21,894		—		—		242,178
Woori Bank-Company K Korea Movie Asset Fund		1,381		25.0		345		—		—		—		345
Partner One Value Up Ist Private Equity Fund		15,238		23.3		3,543		—		—		—		3,543
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		62,009		20.0		12,402		—		—		—		12,402
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,709		25.0		3,928		—		—		377		4,305
LOTTE CARD Co., Ltd (*)		2,373,751		20.0		474,750		—		—		—		474,750
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,130		100.0		10,129		—		—		—		10,129
Union Technology Finance Investment Association		48,691		29.7		14,463		—		—		—		14,463
Dicustody Co., Ltd.		97		1.0		1		—		—		—		1
Japanese Hotel Real Estate Private Equity Fund No.2		14,273		19.9		2,835		—		—		—		2,835
Woori Seoul Beltway Private Special Asset Fund No.1		34,226		25.0		8,556		—		—		—		8,556

- 91 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	June 30, 2022
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment			Intercompany transaction		Book value
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		49,746			20.0		9,949			—		—			—		9,949
Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F		752,924			26.6		200,446			—		—			—		200,446
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		60,123			16.6		9,987			—		—			—		9,987
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		10,599			9.1		964			—		—			—		964
DeepDive WOORI 2021-1 Financial Investment Fund		8,256			11.9		983			—		—			—		983
Darwin Green Packaging Private Equity Fund		19,483			20.4		3,976			—		—			—		3,976
DS Power Semicon Private Equity Fund		14,132			21.0		2,965			—		—			—		2,965
Koreawide partners 2nd Private Equity Fund		74,486			26.7		19,863			—		—			—		19,863
Woori FirstValue Private Real Estate Fund No.2		4,700			12.0		564			—		—			—		564
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		67,152			0.2		102			—		—			—		102
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		4,945			22.2		1,103			—		—			—		1,103
Woori Together TDF 2025		8,109			24.8		2,008			—		—			—		2,008
Woori Together TDF 2030		8,424			24.2		2,041			—		—			—		2,041
Woori Hanhwa Eureka Private Equity Fund		22,338			0.8		181			—		—			—		181
Aarden Woori Apparel 1st Private Equity Fund		20,816			0.5		98			—		—			—		98
Woori Dyno 1st Private Equity Fund		10,115			19.6		1,983			—		—			—		1,983
Godo Kaisha Oceanos 1		19,461			47.8		9,303			—		—			—		9,303
Woori Zip 1		15,829			61.0		9,657			—		—			—		9,657
Woori Zip 2		22,243			60.5		13,462			—		—			—		13,462
Force TEC		(11,933	)		24.5		(2,928	)		—		—			2,928		—
KUM HWA Co., Ltd.		(150	)		20.1		(30	)		—		—			30		—
Jinmyung Plus Co.,Ltd.		77			21.3		16			—		—			—		16
JC Assurance No.2 Private Equity Fund		122,321			24.4		17,728			—		(17,728	)		—		—
Dream Company Growth no.1 PEF		28,394			27.8		7,887			—		—			—		7,887
HMS-Oriens 1st Fund		55,913			22.8		12,756			—		—			—		12,756
Woori G Senior Loan General Type Private Investment Trust No.1		380,076			21.7		82,285			—		—			—		82,285
Genesis Eco No.1 Private Equity Fund		38,344			29.0		11,114			—		—			—		11,114
Paratus Woori Material Component Equipment joint venture company		58,114			29.9		17,375			—		—			—		17,375
Midas No. 8 Private Equity Joint Venture Company		66,134			28.5		18,839			—		—			—		18,839
Orchestra Private Equity Fund IV		34,678			28.2		9,768			—		—			—		9,768
Synaptic Green No.1 PEF		37,366			21.1		7,866			—		—			—		7,866

- 92 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	June 30, 2022
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
IGEN2022No. 1 Private Equity Fund		31,894		24.8		7,924		—		—		—		7,924
PCC-Woori LP Secondary Fund		32,942		38.8		12,795		—		—		—		12,795
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		86,155		22.2		19,091		—		—		—		19,091
Woori-Q Corporate Restructuring Private Equity Fund		80,539		35.5		28,630		—		—		—		28,630
Woori-Shinyoung Growth-Cap Private Equity Fund I		81,160		35.0		30,367		—		—		—		30,367

(*)	The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

- 93 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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

- 94 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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):


	June 30, 2022			December 31, 2021
Acquisition cost		428,335			415,163
Accumulated depreciation		(31,390	)		(25,582	)
Accumulated impairment losses		(86	)		(86	)

Net carrying value		396,859			389,495

(2)	Changes in investment properties are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2022			2021
Beginning balance		389,495			387,464
Disposal		(1,194	)		—
Depreciation		(1,977	)		(1,411	)
Transfer		15,972			2,497
Foreign currencies translation adjustments		(5,792	)		(1,954	)
Others		355			54

Ending balance		396,859			386,650

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

14.

PREMISES AND EQUIPMENT

(1)	Details of premises and equipment as of June 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	June 30, 2022
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,695,266		737,184		240,317		55,449		36,590		1		2,764,807
Right-of-use asset		—		359,134		17,583		—		—		—		376,717

Carrying value		1,695,266		1,096,318		257,900		55,449		36,590		1		3,141,524


	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 June 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	June 30, 2022
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,695,926			1,068,076			1,134,272			475,440			36,590		20			4,410,324
Accumulated depreciation		—			(330,892	)		(893,955	)		(419,991	)		—		(19	)		(1,644,857	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,695,266			737,184			240,317			55,449			36,590		1			2,764,807


	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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(3)	Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 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		26			7,347			28,207			13,498			33,507			—		82,585
Disposals		(19,021	)		—			(626	)		(509	)		—			—		(20,156	)
Depreciation		—			(16,023	)		(48,226	)		(10,328	)		—			—		(74,577	)
Classified as held-for-sale		(946	)		(898	)		—			—			—			—		(1,844	)
Transfer		(5,346	)		(10,626	)		—			—			—			—		(15,972	)
Foreign currencies translation adjustments		807			425			2,296			1,349			352			—		5,229
Others		421			(5	)		305			85			(440	)		—		366

Ending balance		1,695,266			737,184			240,317			55,449			36,590			1		2,764,807


	For the six-month period ended June 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		—			5,583			18,651			7,898			7,909			—			40,041
Disposals		—			(7	)		(534	)		(767	)		—			—			(1,308	)
Depreciation		—			(16,926	)		(46,511	)		(10,636	)		—			(1	)		(74,074	)
Classified as held-for-sale		(759	)		(1,412	)		—			—			—			—			(2,171	)
Transfer		(2,558	)		61			191			—			(191	)		—			(2,497	)
Foreign currencies translation adjustments		113			125			984			630			33			—			1,885
Others		3,030			(3,035	)		(296	)		(428	)		(995	)		—			(1,724	)

Ending balance		1,725,871			771,429			240,710			46,782			15,002			1			2,799,795

(4)	Details of right-of-use assets as of June 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	June 30, 2022
	Building			Equipment and vehicles			Total
Acquisition cost		679,254			31,362			710,616
Accumulated depreciation		(320,120	)		(13,779	)		(333,899	)

Net carrying value		359,134			17,583			376,717


	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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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(5)	Details of changes in right-of-use assets for the six-month periods ended June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2022
	Building			Equipment and vehicles			Total
Beginning balance		367,480			18,064			385,544
New contracts		96,102			5,690			101,792
Changes in contract		1,272			42			1,314
Termination		(9,508	)		(771	)		(10,279	)
Depreciation		(110,156	)		(5,472	)		(115,628	)
Others		13,944			30			13,974

Ending balance		359,134			17,583			376,717


	For the six-month period ended June 30, 2021
	Building			Equipment and vehicles			Total
Beginning balance		435,132			12,423			447,555
New contracts		79,493			6,969			86,462
Changes in contract		1,385			—			1,385
Termination		(36,763	)		(793	)		(37,556	)
Depreciation		(117,665	)		(5,396	)		(123,061	)
Others		15,806			(192	)		15,614

Ending balance		377,388			13,011			390,399

15.

INTANGIBLE ASSETS

(1)	Details of intangible assets are as follows (Unit: Korean Won in millions):


	June 30, 2022
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		354,902		2,154			702,011			1,205,759			41,206			801		2,306,833
Accumulated amortization		—		(1,459	)		(496,623	)		(986,879	)		—			—		(1,484,961	)
Accumulated impairment losses		—		—			—			(33,552	)		(3,406	)		—		(36,958	)

Net carrying value		354,902		695			205,388			185,328			37,800			801		784,914


	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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(2)	Details of changes in intangible assets are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 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		—		97			40,072			24,334			717			266			65,486
Disposal		—		—			—			(501	)		(658	)		—			(1,159	)
Amortization (*)		—		(125	)		(42,354	)		(36,861	)		—			—			(79,340	)
Impairment losses		—		—			—			—			48			—			48
Transfer		—		—			—			182			—			(182	)		—
Foreign currencies translation adjustments		9,453		—			(6	)		2,201			96			—			11,744
Others		—		—			(32	)		2,791			(10	)		—			2,749

Ending balance		354,902		695			205,388			185,328			37,800			801			784,914

(*)	Amortization of other intangible assets amounting to 7,274 million Won is included in other operating expenses.


	For the six-month period ended June 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		—			—			33,807			18,253			1,097			237			53,394
Disposal		—			—			—			(9	)		(316	)		—			(325	)
Amortization (*)		—			(111	)		(40,196	)		(33,871	)		—			—			(74,178	)
Impairment losses		—			—			—			(18	)		(116	)		—			(134	)
Transfer		—			—			3,749			2,920			—			(6,669	)		—
Foreign currencies translation adjustments		3,193			—			—			878			92			—			4,163
Others		(503	)		—			1			815			(199	)		503			617

Ending balance		336,980			598			206,234			194,413			36,649			740			775,614

(*)	Amortization of other intangible assets amounting to 6,808 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 (*)	June 30, 2022		December 31, 2021
Premises and equipment		2,427		8,900
Investments of associates		—		11,472
Investment properties		1,485		—
Others		4,121		5,955

Total		8,033		26,327

(*)	The Group classifies assets as held for sale that are highly likely to be sold within one year from June 30, 2022, and December 31, 2021.

The Group measured assets held for sale at the lower of fair value less costs to sell and carrying amount.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

17.

OTHER ASSETS

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


	June 30, 2022		December 31, 2021
Lease assets		2,377,490		1,782,887
Prepaid expenses		307,768		189,808
Advance payments		80,455		61,042
Assets for non-business use		19,912		16,248
Others		59,000		38,965

Total		2,844,625		2,088,950

18.

FINANCIAL LIABILITIES AT FVTPL

(1)	Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Financial instruments at fair value through profit or loss measured at fair value		12,264,763		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):


	June 30, 2022		December 31, 2021
Deposits
Gold banking liabilities		47,663		65,016
Borrowings
Securities sold		129,788		241,174
Derivative liabilities		12,087,312		4,567,268

Total		12,264,763		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 June 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 June 30, 2022 and December 31, 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

19.

DEPOSITS DUE TO CUSTOMERS

Details of deposits due to customers by type are as follows (Unit: Korean Won in millions):


	June 30, 2022			December 31, 2021
Deposits in local currency
Deposits on demand		14,788,989			18,029,136
Deposits at termination		265,994,830			254,319,473
Mutual installment		23,984			24,620
Deposits on notes payables		3,393,892			2,954,066
Deposits on CMA		83,257			92,360
Certificate of deposits		7,181,248			3,586,423
Other deposits		1,244,898			1,286,719

Sub-total		292,711,098			280,292,797

Deposits in foreign currencies
Deposits in foreign currencies		42,571,257			37,643,900

Present value discount		(59,004	)		(36,826	)

Total		335,223,351			317,899,871

20.

BORROWINGS AND DEBENTURES

(1)	Details of borrowings are as follows (Unit: Korean Won in millions):


	June 30, 2022
	Lenders	Interest rate (%)	Amount
Borrowings in local currency
Borrowings from BOK	BOK	0.3 ~ 0.8		3,215,483
Borrowings from government funds	Small Enterprise And Market Service and others	0.0 ~ 3.5		2,091,528
Others	The Korea Development Bank and others	0.0 ~ 4.3		12,602,838

Sub-total				17,909,849

Borrowings in foreign currencies
Borrowings in foreign currencies	Export-Import Bank of Korea and others	(0.5) ~ 10.1		11,887,707
Bills sold	Others	0.0 ~ 1.8		8,596
Call money	Bank and others	0.0 ~ 3.5		635,159
Bonds sold under repurchase agreements	Other financial institutions	(0.5) ~ 10.6		1,029,755
Present value discount				(87,478	)

Total				31,383,588

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)


	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

(2)	Details of debentures are as follows (Unit: Korean Won in millions):


	June 30, 2022					December 31, 2021
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.8 ~ 4.4		39,621,921			0.7 ~ 3.6		37,004,942
Subordinated bonds		1.9 ~ 5.1		6,105,147			1.9 ~ 5.1		6,767,442
Other bonds		0.6 ~ 17.0		1,125,476			0.8 ~ 17.0		911,190

Sub-total				46,852,544					44,683,574

Discounts on bonds				(35,214	)				(29,710	)

Total				46,817,330					44,653,864

(*)

Included debentures under fair value hedge amounting to 3,200,704 million Won and 2,366,724 million Won as of June 30, 2022 and December 31, 2021 respectively. Also, debentures under cash flow hedge amounting to 983,166 million Won and 819,298 million Won are included as of June 30, 2022 and December 31, 2021 respectively.

- 102 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

21.

PROVISIONS

(1)	Details of provisions are as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Asset retirement obligation		83,478		80,777
Provisions for guarantees (*1)		87,182		74,866
Provisions for unused loan commitments		115,544		112,296
Other provisions (*2)		261,067		308,195

Total		547,271		576,134

(*1)

Provisions for guarantees includes provision for financial guarantee of 56,948 million Won and 53,321 million Won as of June 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 six-month period ended June 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		1,246			(1,246	)		—		—
Transfer to expected credit loss for the entire period		(205	)		205			—		—
Transfer to credit-impaired financial assets		(4	)		(35	)		39		—
Provisions used		(2,169	)		—			—		(2,169	)
Net provision(reversal) of unused amount		(2,794	)		11,665			798		9,669
Others (*)		4,816			—			—		4,816

Ending balance		53,720			25,858			7,604		87,182

(*)

Effect of initial recognition of new financial guarantee contract that is measured at fair value.


	For the six-month period ended June 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		2,219			(2,219	)		—		—
Transfer to expected credit loss for the entire period		(218	)		218			—		—
Transfer to credit-impaired financial assets		(39	)		—			39		—
Provisions used		(3,155	)		—			—		(3,155	)
Net provision(reversal) of unused amount		(3,177	)		(6,423	)		2,003		(7,597	)
Others (*)		(2,109	)		4			—		(2,105	)

Ending balance		58,325			8,325			10,085		76,735

(*)

Effect of initial recognition of new financial guarantee contract that is measured at fair value.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Provisions for unused loan commitment


	For the six-month period ended June 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		11,743			(11,697	)		(46	)		—
Transfer to expected credit loss for the entire period		(2,715	)		2,796			(81	)		—
Transfer to credit-impaired financial assets		(133	)		(275	)		408			—
Net provision(reversal) of unused amount		(5,148	)		8,445			(229	)		3,068
Others		180			—			—			180

Ending balance		71,367			43,805			372			115,544


	For the six-month period ended June 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		12,672			(12,348	)		(324	)		—
Transfer to expected credit loss for the entire period		(2,834	)		3,489			(655	)		—
Transfer to credit-impaired financial assets		(120	)		(299	)		419			—
Net provision(reversal) of unused amount		(12,007	)		2,001			(340	)		(10,346	)
Others		49			—			—			49

Ending balance		61,000			48,569			2,289			111,858

(3)	Changes in asset retirement obligation for the six-month periods ended June 30, 2022 and 2021, are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2022			2021
Beginning balance		80,777			68,402
Provisions provided		1,715			612
Provisions used		(3,684	)		(3,055	)
Reversal of provisions unused		(22	)		(112	)
Unwinding of discount		413			218
Others		4,279			14,911

Ending balance		83,478			80,976

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 June 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(4)	Changes in other provisions for the six-month periods ended June 30, 2022 and 2021, are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2022			2021
Beginning balance		308,195			221,494
Provisions provided		1,782			14,651
Provisions used		(2,231	)		(7,899	)
Reversal of provisions unused (*)		(51,714	)		(537	)
Foreign currencies translation adjustments		5,019			3,113
Others		16			106

Ending balance		261,067			230,928

(*)

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. 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 the previous term 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 June 30, 2022, the provision for this case is 114.5 billion Won. In addition, the provision for the expected fine related to incomplete sales is 7.2 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 June 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. In addition, the provision for the expected fine related to incomplete sales of Heritage DLS is 700 million Won.

- 105 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

22.

NET DEFINED BENEFIT LIABILITY(ASSET)

The retirement benefit of the consolidated company is based on the defined benefit retirement pension plan.

Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:


Volatility of asset		The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate.

Decrease in profitability of blue chip bonds		A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation		Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1)	Details of net defined benefit liability are as follows (Unit: Korean Won in millions):


	June 30, 2022			December 31, 2021
Present value of defined benefit obligation		1,458,494			1,618,098
Fair value of plan assets		(1,530,143	)		(1,591,458	)

Net defined benefit liabilities(asset) (*)		(71,649	)		26,640

(*)

Net defined benefit asset amount of 71,649 million Won as of June 30, 2022 is net amount of defined benefit liability of 52,311 million Won and defined benefit asset of 123,960 million Won. Also, net defined 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 six-month periods ended June 30
	2022			2021
Beginning balance		1,618,098			1,610,680
Current service cost		83,104			89,184
Interest cost		24,106			19,897
Remeasurements Financial assumption		(216,698	)		(57,040	)
Demographic assumptions		—			—
Experience adjustments		27,459			30,247
Retirement benefit paid		(77,912	)		(92,981	)
Foreign currencies translation adjustments		93			22
Others		244			635

Ending balance		1,458,494			1,600,644

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(3)	Changes in the plan assets are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2022			2021
Beginning balance		1,591,458			1,564,101
Interest income		24,925			20,418
Remeasurements		(11,466	)		(8,030	)
Employer’s contributions		6,000			61,009
Retirement benefit paid		(80,807	)		(92,811	)
Others		33			30

Ending balance		1,530,143			1,544,717

(4)	Fair value of plan assets as of June 30, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Cash and due from banks		1,530,143		1,591,458

Meanwhile, among plan assets, realized returns on plan assets amount to 13,459 million Won and 12,388 million Won for the six-month periods ended June 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 six-month periods ended June 30
	2022			2021
Current service cost		83,104			89,184
Net interest income		(819	)		(521	)

Cost recognized in net income		82,285			88,663

Remeasurements (*)		(177,773	)		(18,763	)

Cost recognized in total comprehensive income		(95,488	)		69,900

(*)

Amount before tax

Meanwhile, retirement benefits related to defined contribution plans recognized as expenses are 2,188 million Won and 2,399 million Won for the six-month periods ended June 30, 2022 and 2021, respectively.

- 107 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

23.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):


	June 30, 2022			December 31, 2021
Other financial liabilities:
Accounts payable		11,230,394			6,969,170
Accrued expenses		1,969,726			2,070,639
Borrowings from trust accounts		3,801,465			3,107,456
Agency business revenue		456,236			433,041
Foreign exchange payables		782,843			782,176
Domestic exchange settlement credits		4,484,215			6,708,220
Lease liabilities		332,280			343,213
Other miscellaneous financial liabilities		4,755,396			3,772,437
Present value discount		(18,997	)		(15,322	)

Sub-total		27,793,558			24,171,030

Other liabilities:
Unearned income		325,885			291,147
Other miscellaneous liabilities		276,653			265,706

Sub-total		602,538			556,853

Total		28,396,096			24,727,883

- 108 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

24.

DERIVATIVES

(1)	Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):


			June 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		78,930		—		—		—		—		—		—
Forwards		1,530,000		—		—		139,666		—		—		3
Swaps		140,072,587		2,269		3,951		298,817		—		116,065		489,738
Purchase options		170,000		—		—		8,302		—		—		—
Written options		260,000		—		—		—		—		—		14,093

Currency:
Futures		30,512		—		—		—		—		—		—
Forwards		136,659,126		—		—		5,610,007		—		—		2,174,753
Swaps		114,824,506		65,991		—		4,097,818		—		—		7,715,087
Purchase options		1,155,790		—		—		28,714		—		—		—
Written options		1,704,290		—		—		—		—		—		16,114

Equity:
Futures		709,062		—		—		—		—		—		—
Forwards		233		—		—		81		—		—		—
Swaps		818,682		—		—		77,622		—		—		2,011
Purchase options		23,147,584		—		—		985,392		—		—		—
Written options		26,697,628		—		—		—		—		—		1,675,513

Total		447,858,930		68,260		3,951		11,246,419		—		116,065		12,087,312


			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

- 109 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 1M LIBOR, 3M LIBOR, Compounding SOFR, 3M BBSW, CD 3M in the hedging relationships of the Group are USD 303,334,000, 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 June 30, 2022, the Group has applied fair value hedge on fixed interest rate debentures on local currency amounting to 146,216 million Won and debentures on foreign currency amounting to 3,054,488 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.

- 110 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Cash Flow Hedge

As of the June 30, 2022, the Group has applied cash flow hedge debentures on local currency amounting to 229,864 million Won, debentures on foreign currency amounting to 753,302 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 risks, which are the most significant factor in the cash flow fluctuation of the hedged item, are 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 June 30, 2022: USD 672,390,437) and mitigate foreign exchange risk arising from the net assets of subsidiaries.

- 111 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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):


	June 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)		133,334,000		270,000,000		—		403,334,000
Foreign currencies translation risk
Currency swap (USD)		—		180,000,000		—		180,000,000
Hedges of net investment in foreign operations
Exchange risk
Foreign currency bond (USD)		272,390,437		400,000,000		—		672,390,437


	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

- 112 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(4)	The average interest rate and average currency rate of the hedging instrument as of June 30, 2022 and December 31, 2021 are as follows:


		June 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, 1.68% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		USD 1M Libor + 0.73% receipt, KRW 0.89% paid, USD/KRW = 1,212.59
Foreign currencies translation risk
Currency swap (USD)		USD 1.50% receipt, KRW 1.57% paid, USD/KRW = 1,140.50
Hedges of net investment in foreign operations
Currency Risk
Foreign currency bond (USD)		Libor 3M + 0.81% 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

- 113 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(5)	The amounts related to items designated as hedging instruments are as follows (Unit: USD, AUD, EUR and Korean Won in millions):


	June 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		3,951		116,065	Derivative liabilities (designated for hedging)		(183,357	)
Interest rate Swap(KRW)		150,000
Cash flow hedge
Interest rate risk
Interest rate swap(KRW)		190,000		2,269		—	Derivative liabilities (designated for hedging)		1,918
Foreign currency translation risk and interest rate risk
Currency swap(USD)		403,334,000		42,890		—	Derivative liabilities (designated for hedging)		55,963
Foreign currency translation risk
Currency swap(USD)		180,000,000		23,101		—	Derivative liabilities (designated for hedging)		16,747
Hedges of net investment in foreign operations
Exchange rate risk
Foreign currency bond(USD)		672,390,437		—		869,334	Foreign currency bond		(60,650	)


	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		95,086		20,287	Derivative assets (designated for hedging		57,221
Interest rate Swap(AUD)		150,000,000					Derivative liabilities (designated for hedging)
Interest rate Swap(EUR)		26,591,163		17		—	Derivative assets (designated for hedging Derivative liabilities (designated for hedging)		17
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

- 114 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(6)	Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in millions):


	June 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		—		3,200,704		—		140,902	Debentures		198,984			—
Cash flow hedge
Interest rate risk
Debentures		—		229,864		—		—	Debentures		(1,881	)		1,645
Foreign currencies translation risk and interest rate risk
Debentures		—		521,161		—		—	Debentures		(48,396	)		10,197
Foreign currencies translation risk
Debentures		—		232,141		—		—	Debentures		(16,747	)		(3,140	)
Hedges of net investment in foreign operations
Exchange rate risk
Foreign operations net asset		—		—		—		—	Foreign operations net asset		60,650			(43,971	)

(*)	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

- 115 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 six-month period ended June 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		16,147	Other net operating income(expense)
	Foreign exchange rate risk		—	Other net operating income(expense)


		For the six-month period ended June 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		7,897	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 six-month period ended June 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		1,881		37		—		Other net operating income(expense)		—		Other net operating income(expense)
	Foreign currencies translation risk and interest rate risk		55,963		—		(1,839	)	Other net operating income(expense)		(49,785	)	Other net operating income(expense)
	Foreign currencies translation risk		16,747		—		(1,326	)	Other net operating income(expense)		(19,332	)	Other net operating income(expense)


		For the six-month period ended June 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		1,243		28			—		Other net operating income(expense)		—		Other net operating income(expense)
	Foreign currencies translation risk and interest rate risk		30,957		169			(1,628	)	Other net operating income(expense)		(26,041	)	Other net operating income(expense)
	Foreign currencies translation risk		617		(258	)		(223	)	Other net operating income(expense)		(95	)	Other net operating income(expense)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 six-month period ended June 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		(43,971	)		—		—

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 six-month periods ended June 30
	2022			2021
Beginning balance		29,111			6,939
New transactions		22,124			37,040
Amounts recognized in losses		(13,771	)		(12,564	)

Ending balance		37,464			31,415

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded the transaction price as at the time of acquisition, even though there are difference noted between the transaction price and the fair value, which is deferred and amortized to maturity using the effective interest method and reflected in profit and loss. The table above presents the difference yet to be realized as profit or loss at the end of June 30, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

26.

EQUITY

(1)	Details of equity as of June 30, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	June 30, 2022			December 31, 2021
Capital
Common stock capital		3,640,303			3,640,303
Hybrid securities		2,593,744			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		(726,340	)		(162,522	)
Changes in capital due to equity method		1,575			(138	)
Gain(loss) from foreign business translation		180,865			(63,781	)
Loss from hedges of net investment in foreign operations		(43,971	)		—
Remeasurements of defined benefit plan		(67,071	)		(195,944	)
Gain on evaluation of cash flow hedge		8,476			5,553
Capital related to noncurrent assets held for sale		—			279

Sub-total		(646,466	)		(416,553	)

Retained earnings (2) (3)		22,540,313			21,392,564
Non-controlling interest (*4)		2,479,955			3,008,176

Total		29,506,048			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 Kyongnam 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 June 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 June 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 1,995,601 million Won and 2,555,166 million Won as of June 30, 2022 and December 31, 2021, respectively, are recognized as non-controlling interests. 61,890 million Won and 71,537 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 six-month periods ended June 30, 2022 and 2021, respectively.

(2)	The number of authorized shares and others of the Group are as follows:


	June 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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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 (%)		June 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		2021-04-08		—		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			—
Issuance cost								(6,256	)		(5,619	)

Total								2,593,744			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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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(4)	Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 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	)		(770,085	)		1,650			204,617			(726,340	)
Changes in capital due to equity method		(138	)		2,419			—			(706	)		1,575
Gain(loss) on foreign currency translation of foreign operations		(63,781	)		249,478			—			(4,832	)		180,865
Gain(loss) on hedges of net investment in foreign operations		—			(60,650	)		—			16,679			(43,971	)
Remeasurement gain(loss) related to defined benefit plan		(195,944	)		177,756			—			(48,883	)		(67,071	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		5,553			3,497			(21	)		(533	)		8,476
Capital related to noncurrent assets held for sale		279			(385	)		—			106			—

Total		(416,553	)		(397,970	)		1,629			166,428			(646,466	)

(*)

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 (63) 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 six-month period ended June 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	)		63,949			(45,059	)		(6,627	)		2,430
Changes in capital due to equity method		(2,609	)		2,495			—			178			64
Gain(loss) on foreign currency translation of foreign operations		(298,363	)		85,763			—			(1,124	)		(213,724	)
Remeasurement gain(loss) related to defined benefit plan		(261,195	)		18,782			—			(5,164	)		(247,577	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		(1,386	)		3,084			896			(91	)		2,503
Capital related to noncurrent assets held for sale		1,226			(772	)		—			212			666

Total		(572,160	)		173,301			(44,163	)		(12,616	)		(455,638	)

(*)

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 (33,448) million Won, 797 million Won and (560) 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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):


	June 30, 2022			December 31, 2021
Beginning balance		2,966,960			2,568,367
Planned provision(reversal) of regulatory reserve for credit loss		(39,096	)		398,593

Ending balance		2,927,864			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 June 30, 2022						Periods ended June 30, 2021
	Three-month			Six-month			Three-month			Six-month
Net income before regulatory reserve		986,832			1,859,304			818,384			1,537,251
Provision(reversal) of regulatory reserve for credit loss		(57,538	)		(39,096	)		80,767			163,847
Adjusted net income after the provision of regulatory reserve		1,044,370			1,898,400			737,617			1,373,404
Dividends to hybrid securities		(22,224	)		(41,375	)		(15,775	)		(31,550	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		1,022,146			1,857,025			721,842			1,341,854
Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)		1,405			2,552			1,000			1,858

(6)	There are no changes in treasury stocks for the six-month periods ended June 30, 2022 and 2021.

- 121 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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, the Group declared the interim dividend of 150 Won per share (total dividend of 109,209 million Won) with July 30, 2022 as the record date, in accordance with a resolution of the Board of Directors.

28.

NET INTEREST INCOME

(1)

Details of interest income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month
Financial assets at FVTPL		21,062		37,735		11,046		22,420
Financial assets at FVTOCI		149,991		291,582		83,821		175,607
Financial assets at amortized cost
Securities at amortized cost		99,144		188,108		79,129		161,372
Loans and other financial assets at amortized cost
Interest on due from banks		25,983		40,153		10,484		19,938
Interest on loans		2,967,048		5,638,180		2,191,158		4,315,503
Interest of other receivables		9,429		17,657		7,648		15,631

Subtotal		3,002,460		5,695,990		2,209,290		4,351,072

Total		3,272,657		6,213,415		2,383,286		4,710,471

(2)

Details of interest expense recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month
Interest on deposits due to customers		793,003		1,441,571		444,895		912,346
Interest on borrowings		109,658		183,688		47,311		95,865
Interest on debentures		219,705		418,513		177,528		359,156
Other interest expense		32,766		62,682		8,788		16,713
Interest on lease liabilities		1,869		3,639		1,811		3,772

Total		1,157,001		2,110,093		680,333		1,387,852

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

29.

Net Fees and Commissions Income

(1)	Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month
Fees and commission received for brokerage		33,123		70,272		48,867		95,991
Fees and commission received related to credit		53,322		103,119		57,328		106,809
Fees and commission received for electronic finance		32,835		65,952		34,739		66,696
Fees and commission received on foreign exchange handling		14,137		27,810		14,275		27,539
Fees and commission received on foreign exchange		27,328		44,945		18,356		31,939
Fees and commission received for guarantee		28,605		48,112		18,535		36,072
Fees and commission received on credit card		154,277		295,749		141,129		278,523
Fees and commission received on securities business		28,796		56,690		33,684		57,745
Fees and commission from trust management		71,250		138,507		51,231		98,435
Fees and commission received on credit information		2,642		5,097		2,676		5,099
Fees and commission received related to lease		139,431		262,177		86,442		168,634
Other fees		48,937		93,173		39,789		92,434

Total		634,683		1,211,603		547,051		1,065,916

(2)	Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month
Fees and commissions paid		79,592		146,503		67,143		126,989
Credit card commission		110,763		211,709		105,766		203,516
Brokerage commission		412		687		317		556
Others		3,232		6,320		2,832		5,401

Total		193,999		365,219		176,058		336,462

30.

DIVIDEND INCOME

(1)	Details of dividend income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month
Dividend income related to financial assets at FVTPL		27,908		60,355		61,125		114,442
Dividend income related to financial assets at FVTOCI		3,991		18,567		3,023		16,296

Total		31,899		78,922		64,148		130,738

(2)	Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

Periods ended June 30, 2022

Periods ended June 30, 2021

Three-month

Six-month

Three-month

Six-month

Dividend income recognized from assets held

Equity securities

3,991

18,567

3,023

16,296

- 123 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month			Six-month
Gain(loss) on financial instruments at FVTPL measured at fair value		226,041		341,427		55,184			136,305
Gain(loss) on financial instruments at FVTPL designated as upon initial recognition		—		—		(860	)		102

Total		226,041		341,427		54,324			136,407

(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 June 30, 2022						Periods ended June 30, 2021
			Three-month			Six-month			Three-month			Six-month
Financial assets at FVTPL	Securities	Gain on transactions and valuation		131,796			264,431			66,625			145,444
		Loss on transactions and valuation		(195,672	)		(334,705	)		(47,607	)		(99,481	)

		Sub-total		(63,876	)		(70,274	)		19,018			45,963

	Loans	Gain on transactions and valuation		3,085			8,522			8,592			14,089
		Loss on transactions and valuation		(1,241	)		(2,531	)		(2,686	)		(4,081	)

		Sub-total		1,844			5,991			5,906			10,008

	Other financial assets	Gain on transactions and valuation		7,105			16,478			2,520			7,819
		Loss on transactions and valuation		(2,661	)		(8,191	)		(1,858	)		(5,412	)

		Sub-total		4,444			8,287			662			2,407

Sub-total				(57,588	)		(55,996	)		25,586			58,378

Derivatives (Held for trading)	Interest rates derivatives	Gain on transactions and valuation		1,226,728			2,620,659			391,344			845,923
		Loss on transactions and valuation		(821,449	)		(1,653,940	)		(370,337	)		(745,974	)

		Sub-total		405,279			966,719			21,007			99,949

	Currency derivatives	Gain on transactions and valuation		7,190,283			9,926,389			398,232			4,532,105
		Loss on transactions and valuation		(7,309,919	)		(10,498,686	)		(395,527	)		(4,567,000	)

		Sub-total		(119,636	)		(572,297	)		2,705			(34,895	)

	Equity derivatives	Gain on transactions and valuation		831,615			1,560,772			255,081			1,064,630
		Loss on transactions and valuation		(833,642	)		(1,557,788	)		(249,095	)		(1,050,952	)

		Sub-total		(2,027	)		2,984			5,986			13,678

	Other derivatives	Gain on transactions and valuation		13			17			—			—
		Loss on transactions and valuation		—			—			(100	)		(805	)

		Sub-total		13			17			(100	)		(805	)

Sub-total				283,629			397,423			29,598			77,927

Net, total				226,041			341,427			55,184			136,305

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(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 June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month			Six-month
Gain(loss) on equity-linked securities		—		—		(860	)		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 June 30, 2022						Periods ended June 30, 2021
	Three-month			Six-month			Three-month			Six-month
loss on redemption of securities		(5	)		(8	)		(11	)		(10	)
Gain(loss) on transactions of securities		(1,916	)		(1,642	)		8,059			45,069

Total		(1,921	)		(1,650	)		8,048			45,059

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 June 30, 2022						Periods ended June 30, 2021
	Three-month			Six-month			Three-month			Six-month
Reversal of(provision for) impairment loss due to credit loss on financial assets measured at FVTOCI		939			220			(1,079	)		(2,097	)
Reversal of(provision for) impairment loss due to credit loss on securities at amortized cost		(552	)		(835	)		106			293
Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost		(318,974	)		(483,511	)		(83,507	)		(220,715	)
Reversal of(provision for) provision on guarantee		(3,596	)		(9,669	)		8,454			7,597
Reversal of(provision for) unused loan commitment		(8,612	)		(3,068	)		7,443			10,346

Total		(330,795	)		(496,863	)		(68,583	)		(204,576	)

- 125 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 30, 2022					Periods ended June 30, 2021
			Three-month			Six-month		Three-month		Six-month
Employee benefits	Short-term employee benefits	Salaries		408,941			826,173		390,030		794,269
		Employee fringe benefits		135,591			297,882		139,143		269,252
	Share based payment			(530	)		6,402		5,505		7,858
	Retirement benefit service costs			42,093			84,473		45,369		91,002
	Termination			—			118		274		555

		Subtotal		586,095			1,215,048		580,321		1,162,936

Depreciation and amortization				131,511			262,271		129,080		264,505
Other general and administrative expenses	Rent			20,702			42,763		21,430		40,736
	Taxes and public dues			47,561			90,940		41,373		78,529
	Service charges			58,782			113,272		60,657		113,715
	Computer and IT related			34,428			60,019		28,724		55,234
	Telephone and communication			20,539			39,352		19,475		37,612
	Operating promotion			13,496			24,361		9,756		18,959
	Advertising			34,619			44,964		18,786		28,351
	Printing			1,463			2,868		1,370		3,020
	Traveling			2,572			4,582		1,665		3,369
	Supplies			1,927			3,992		1,704		3,412
	Insurance premium			2,925			5,766		2,486		5,040
	Maintenance			5,130			10,544		4,873		9,778
	Water, light, and heating			3,243			7,979		2,969		7,327
	Vehicle maintenance			3,866			6,772		2,856		5,202
	Others			12,115			21,609		10,361		17,768

		Sub-total		263,368			479,783		228,485		428,052

	Total			980,974			1,957,102		937,886		1,855,493

(2)	Details of other operating income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month
Gain on transactions of foreign exchange		197,978		323,652		210,908		332,740
Gain related to derivatives (Designated for hedging)		52,701		69,151		478		26,477
Gain on fair value hedged items		90,392		198,984		2,609		61,262
Others		70,652		142,966		27,874		52,215

Total		411,723		734,753		241,869		472,694

(3)	Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022				Periods ended June 30, 2021
	Three-month		Six-month		Three-month		Six-month
Losses on transactions of foreign exchange		300,440		387,969		101,259		217,299
KDIC deposit insurance premium		100,061		206,510		100,673		198,218
Contribution to miscellaneous funds		98,686		195,188		90,455		176,601
Losses related to derivatives (Designated for hedging)		69,430		183,355		2,970		53,359
Others (*)		158,915		311,016		94,185		186,265

Total		727,532		1,284,038		389,542		831,742

(*)	Other expense includes 7,274 million Won and 6,808 million Won for intangible asset amortization cost and 178,412 million Won and 112,279 million Won for lease depreciation cost for the six-month periods ended June 30, 2022 and 2021, respectively.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(4)	Share-based payment

Details of performance condition share-based payment granted to executives as of June 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)		13,054 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		0.5 years
Number of shares remaining	As of June 30, 2022	602,474 shares
	As of December 31, 2021	602,474 shares
Number of shares granted (*2)	As of June 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)		12,411 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		1.5 years
Number of shares remaining	As of June 30, 2022	944,343 shares
	As of December 31, 2021	944,343 shares
Number of shares granted (*2)	As of June 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)		11,800 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		2.5 years
Number of shares remaining	As of June 30, 2022	1,105,515 shares
	As of December 31, 2021	1,105,515 shares
Number of shares granted (*2)	As of June 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)		11,219 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		3.5 years
Number of shares remaining	As of June 30, 2022	488,419 shares
	As of December 31, 2021	—
Number of shares granted (*2)	As of June 30, 2022	488,419 shares
	As of December 31, 2021	—

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(*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 June 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 37,998 million Won and 31,597 million Won, respectively.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 30, 2022						Periods ended June 30, 2021
	Three-month			Six-month			Three-month			Six-month
Gains on valuation of investments in joint ventures and associates		23,745			39,158			32,617			38,702
Losses on valuation of investments in joint ventures and associates		(3,641	)		(14,146	)		(794	)		(11,671	)
Impairment losses of investments in joint ventures and associates		—			(17,727	)		9			(790	)

Total		20,104			7,285			31,832			26,241

(2)	Details of other non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022						Periods ended June 30, 2021
	Three-month			Six-month			Three-month			Six-month
Other non-operating incomes		89,603			114,259			41,503			66,330
Other non-operating expenses		(10,544	)		(85,746	)		(47,677	)		(58,663	)

Total		79,059			28,513			(6,174	)		7,667

(3)	Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022					Periods ended June 30, 2021
	Three-month			Six-month		Three-month			Six-month
Rental fee income		7,637			12,889		5,501			9,164
Gains on disposal of investments in joint ventures		—			561		—			—
Gains on disposal of premises and equipment, intangible assets and other assets		32,700			41,719		28,886			33,345
Reversal of impairment loss of premises and equipment, intangible assets and other assets		(110	)		168		(48	)		96
Others(*)		49,376			58,922		7,164			23,725

Total		89,603			114,259		41,503			66,330

(*)

Others include other extraordinary gains related to other provisions amount of 45,276 million Won for the six-month periods ended June 30, 2022.

(4)	Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2022					Periods ended June 30, 2021
	Three-month			Six-month		Three-month		Six-month
Depreciation on investment properties		996			1,977		837		1,411
Operating expenses on investment properties		320			654		383		567
Losses on disposal of investments in joint ventures		(2,257	)		116		—		—
Losses on disposal of premises and equipment, intangible assets and other assets		802			1,487		1,178		1,798
Impairment losses of premises and equipment, intangible assets and other assets		(1	)		335		418		639
Donation		3,429			4,843		19,456		22,043
Others (*)		7,255			76,334		25,405		32,205

Total		10,544			85,746		47,677		58,663

(*)

Others include other extraordinary losses related to the employee embezzlement and other provisions amount of 62,196 million Won and 99 million Won, respectively, for the six-month period ended June 30, 2022. Others include other extraordinary losses related to other provisions amount of 10,990 million Won for the six-month period ended June 30, 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

36.

INCOME TAX EXPENSE

Details of income tax expenses are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2022			2021
Current tax expense
Current tax expense with respect to the current period		681,424			399,935
Adjustments recognized in the current period in relation to the tax expense of prior periods		(15,099	)		(18,331	)

Sub-total		666,325			381,604

Deferred tax expense
Change in deferred tax assets(liabilities) due to temporary differences		(224,146	)		111,509
Income tax expense directly attributable to equity		166,428			(12,616	)

Sub-total		(57,718	)		98,893

Income tax expense		608,607			480,497

Weighted average annual effective tax rate		24.7	%		23.8	%

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 30, 2022						Periods ended June 30, 2021
	Three-month			Six-month			Three-month			Six-month
Net income attributable to common shareholders		922,746			1,761,934			752,595			1,419,698
Dividends to hybrid securities		(22,225	)		(41,375	)		(15,775	)		(31,550	)
Net income attributable to common shareholders		900,521			1,720,559			736,820			1,388,148
Weighted average number of common shares outstanding (Unit: million shares)		728			728			722			722
Basic EPS (Unit: Korean Won)		1,237			2,364			1,020			1,922

(2)	The weighted average number of common shares outstanding is as follows (Unit: number of shares, days)


	For the six-month period ended June 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 ~ 2022-06-30		728,060,549			181		131,778,959,369
Treasury stock		2022-01-01 ~ 2022-06-30		(343,991	)		181		(62,262,371	)

Sub-total (①)									131,716,696,998

Weighted average number of common shares outstanding (②=(①/181)									727,716,558


	For the six-month period ended June 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 ~ 2021-06-30		722,267,683			181		130,730,450,623
Treasury stock		2021-01-01 ~ 2021-06-30		(2	)		181		(362	)

Sub-total (①)									130,730,450,261

Weighted average number of common shares outstanding (②=(①/181)									722,267,681

Diluted EPS is equal to basic EPS because there is no dilution effect for the six-month periods ended June 30, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

38.

CONTINGENT LIABILITIES AND COMMITMENTS

(1)	Details of guarantees are as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Confirmed guarantees
Guarantee for loans		42,584		38,897
Acceptances		578,149		622,758
Guarantees in acceptances of imported goods		83,222		111,195
Other confirmed guarantees		7,240,534		7,215,557

Sub-total		7,944,489		7,988,407

Unconfirmed guarantees
Local letters of credit		230,187		243,072
Letters of credit		4,001,197		3,186,513
Other unconfirmed guarantees		1,073,384		778,088

Sub-total		5,304,768		4,207,673

Commercial paper purchase commitments and others		745,466		791,729

Total		13,994,723		12,987,809

(*)	Includes financial guarantees of 4,018,956 million won and 3,960,383 million won as of June 30, 2022 and December 31, 2021, respectively.

(2)	Details of unused loan commitments and others are as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Loan commitments		118,639,497		114,414,462
Other commitments (*)		7,223,134		5,652,557

(*)	The amount of unsecured bills (purchase note sales) and discounts on electronic short-term bond sales (purchase) are 3,167,964 million Won and 2,225,226 million Won as of June 30, 2022 and December 31, 2021, respectively.

(3)	Litigation case

As of June 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 500 cases (litigation value of 565,941 million Won) and 475 cases (litigation value of 578,505 million Won) as of June 30, 2021 and December 31, 2021 respectively, and provisions for litigations are 23,808 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 122,578 million Won as other financial liabilities for the second sales agreement.

As of June 30, 2022 Woori Asset Trust Co., Ltd., a subsidiary, has agreed to carry out construction completion obligations for 103 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 June 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 3,318,157 million Won. Although additional losses may occur in relation to the construction completion obligations, the financial statements as of June 30, 2022 do not reflect these effects since losses are unlikely and the amount cannot be estimated reliably.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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 June 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 58,744 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 June 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 six-month periods ended June 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	June 30, 2022			December 31, 2021
Associates	W Service Networks Co., Ltd.	Loans		22			20
		Deposits due to customers		3,075			2,832
		Accrued expenses		7			6
		Other liabilities		422			425
	Korea Credit Bureau Co., Ltd.	Loans		1			2
		Deposits due to customers		193			1,557
	Korea Finance Security Co., Ltd.	Loans		3,439			3,425
		Loss allowance		(7	)		(6	)
		Deposits due to customers		6,379			1,887
		Other liabilities		2			2
	LOTTE CARD Co., Ltd.	Loans		1,875			3,750
		Loss allowance		(23	)		(39	)
		Other assets		9			10
		Deposits due to customers		14,044			13,482
		Other liabilities		106			91
	K BANK Co., Ltd.	Loans		43			99
		Account receivables		46			29
		Other liabilities		103,828			84,935
	Others (*)	Loans		67,927			73,940
		Loss allowance		(28	)		(124	)
		Other assets		980			739
		Deposits due to customers		13,198			1,063
		Other liabilities		2			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 June 30, 2022 and December 31, 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(2)	Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):


			For the six-month periods ended June 30
Related parties		Account title	2022		2021
Associates	W Service Network Co., Ltd.	Other income		17		17
		Interest expenses		4		3
		Fees expenses		275		349
		Other expenses		934		921
	Korea Credit Bureau Co., Ltd.	Interest expenses		—		4
		Fees expenses		1,773		1,746
		Other expenses		68		—
	Korea Finance Security Co., Ltd.	Interest income		56		38
		Interest expenses		3		1
		Provision of allowance for credit loss		1		—
		Other expenses		32		46
	LOTTE CARD Co., Ltd.	Interest income		61		159
		Fees income		48		4,874
		Interest expenses		530		112
		Reversal of allowance for credit loss		1		19
	K BANK Co., Ltd.	Fees income		539		1,025
		Fees expenses		512		16
	Others (*)	Interest income		354		213
		Fees income		3,623		1,483
		Interest expenses		3		5
		Reversal of allowance for credit loss		96		4

(*)	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., for the six-month periods ended June 30, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(3)	Major loan transactions with related parties for the six-month periods ended June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


		For the six-month period ended June 30, 2022
Related parties		Beginning balance		Loan		Collection		Foreign currency exchange, etc.			Ending balance (*)
Associates	W Service Network Co., Ltd.		20		119		117		—			22
	Korea Credit Bureau Co., Ltd.		2		7		8		—			1
	Korea Finance Security Co., Ltd.		3,425		2,196		2,182		—			3,439
	LOTTE CARD Co., Ltd.		3,750		—		1,875		—			1,875
	K BANK Co., Ltd.		99		285		341		—			43
	Godo Kaisha Oceanos 1		43,033		41,467		43,033		(1,934	)		39,533
	Woori ZIP 1		12,775		—		—		(1,039	)		11,736
	Woori ZIP 2		18,132		—		—		(1,474	)		16,658

(*)	Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.


		For the six-month period ended June 30, 2021
Related parties		Beginning balance		Loan		Collection		Others			Ending balance (*)
Associates	W Service Network Co., Ltd.		21		121		128		—			14
	Korea Credit Bureau Co., Ltd.		1		4		4		—			1
	Korea Finance Security Co., Ltd.		3,440		178		195		—			3,423
	LOTTE CARD Co., Ltd.		7,500		—		1,875		—			5,625
	K BANK Co., Ltd.		104		933		975		—			62
	Godo Kaisha Oceanos 1		44,036		—		—		(1,342	)		42,694

(*)	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 six-month periods ended June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


		For the six-month period ended June 30, 2022
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	W Service Networks Co., Ltd		1,180		—		—		1,180
	Partner One Value Up I Private Equity Fund		329		250		329		250

(*)	Details of payment between related parties, demand deposit due to customers and etc. are excluded.


		For the six-month period ended June 30, 2021
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	W Service Networks Co., Ltd		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 six-month periods ended June 30, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(6)	Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):


Warrantee	June 30, 2022		December 31, 2021		Warranty
Korea Finance Security Co., Ltd.		821		835	Unused loan commitment
Korea Credit Bureau Co., Ltd.		34		33	Unused loan commitment
W Service Network Co., Ltd.		178		180	Unused loan commitment
K BANK Co., Ltd.		257		201	Unused loan commitment
LOTTE CARD Co., Ltd.		500,000		500,000	Unused loan commitment
Dicustody Co., Ltd.		10		—	Unused loan commitment

As of June 30, 2022 and December 31, 2021, the recognized payment guarantee provisions are 108 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	June 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		38,457		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		130		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)		119		669		Securities purchase commitment

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(8)	Major investment and Recovery transactions

The details of major investment and recovery transactions with related parties for the for the six-month periods ended June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2022
The same parent company and its associates	Investment and others (*)		Recovery and others (*)
Woori Long-term government bond securities Investment Trust No.1		—		1,951
WOORI Republic of Korea Treasury Bond Active ETF(Bond)		3,000		—
Woori K-New Opening Target Return Securities Investment Trust(Equity)		200		—
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		—		21,606
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 High Plus Bond Sec Feeder Inv Trust 3(USD)		—		1,052
Woori China Mainland Stock Securities Investment Trust H(Securities)		—		443
Woori 2023 Maturity Securities Investment Trust(Bond)		200		—
Woori G Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)		550		—

(*)	Investment and recovery transactions of associates that are not treated as FVTPL are described in Note 12.(2)


	For the six-month period ended June 30, 2021
The same parent company and its associates	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		—
Woori Smart New Deal 30 Target Conversion Securities Investment trust No.2		200		—
Woori China Mainland Stock Securities Investment Trust H(Securities)		—		568
Woori China Convertible Bond Hedging feeder Investment Trust H (debt-oriented hybrid)		—		1,690
Woori G IGIS Securities Investment Trust [Bond] C(F)		—		1,306

(*)	Investment and recovery transactions of associates that are not treated as FVTPL are described in Note 12.(2)

(9)	Compensation for key management is as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2022		2021
Short-term employee salaries		12,099		10,335
Retirement benefit service costs		445		409
Share-based compensation		2,794		3,079

Total		15,338		13,823

Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 3,886 million Won and 3,821 million Won, as of June 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 26,036 million Won and 24,861 million Won, respectively, as of June 30, 2022 and December 31, 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

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):


	June 30, 2022
	Total investment in lease		Net investment in lease
Within one year		106,753		98,332
After one year but within two years		186,519		174,273
After two years but within three years		308,990		284,903
After three years but within four years		478,957		434,134
After four years but within five years		459,038		400,188
After five years		34		33

Total		1,540,291		1,391,863


	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):


	June 30, 2022		December 31, 2021
Total investment in lease		1,540,291		1,298,516
Net investment in lease		1,391,863		1,173,565
Present value of minimum lease payments		1,391,863		1,173,565
Present value of unguaranteed residual value		—		—

Unearned interest income		148,428		124,951

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

Operating lease

①

The details of prepaid lease assets and operating lease assets are as follows (Unit: Korean Won in millions):


	June 30, 2022			December 31, 2021
Prepaid lease assets		11,178			4,579
Operating lease assets
Acquisition cost		2,989,249			2,299,968
Accumulated depreciation		(622,937	)		(521,660	)
Net carrying value		2,366,312			1,778,308

Total		2,377,490			1,782,887

②

The details of changes in operating lease assets as of June 30, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	June 30, 2022			June 30, 2021
Beginning balance		1,778,308			1,116,175
Acquisition		805,277			349,216
Disposal		(58,437	)		(48,682	)
Depreciation		(178,412	)		(112,279	)
Others		19,576			4,972

Ending balance		2,366,312			1,309,402

③

The future lease payments to be received under the lease contracts are as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Within one year		497,434		377,153
After one year but within two years		456,892		347,539
After two years but within three years		365,967		262,176
After three years but within four years		252,772		170,391
After four years but within five years		109,402		79,555

Total		1,682,467		1,236,814

④

There are no adjusted lease payments recognized as profit or loss for the six-month periods ended June 30, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2022 AND 2021 (UNAUDITED)

(2)

Lessee

The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):


	June 30, 2022		December 31, 2021
Lease payments
Within one year		136,561		151,259
After one year but within five years		153,225		155,707
After five years		38,139		38,275

Total		327,925		345,241

Total cash outflows from lease are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2022		2021
Total cash outflows from lease		93,226		93,758

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 six-month periods ended June 30
	2022		2021
Lease payments for short-term leases		5,645		814
Lease payments for which the underlying asset is of low value		650		721

Total		6,295		1,535

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.

EVENTS AFTER THE REPORTING PERIOD

On July 22, 2022, the Board of Directors has declared an interim dividend of 150 won per share (109,209 million won in total) and fixed record date as June 30, 2022.

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