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Published: 2022-05-17 06:08:31 ET

EX-99.1 2 d351413dex991.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 PERIODS ENDED MARCH 31, 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		10-139

LOGO

Report on Review of Consolidated Interim Financial Statements

English Translation of a Report Originally Issued in Korean on May 16, 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 March 31, 2022 and the related consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 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.

LOGO

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

May 16, 2022

Notice to Readers

This report is effective as of May 16, 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 PERIODS ENDED MARCH 31, 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

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2022 (UNAUDITED) AND DECEMBER 31, 2021


	March 31, 2022			December 31, 2021
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 6)		13,058,418			7,565,818
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, and 24)		15,523,222			13,497,234
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, and 11)		40,393,420			39,119,789
Securities at amortized cost (Notes 4, 9, and 11)		18,287,488			17,086,274
Loans and other financial assets at amortized cost (Notes 4, 10, 11, and 39)		370,119,308			361,932,872
Investments in joint ventures and associates (Note 12)		1,313,378			1,335,167
Investment properties (Note 13)		398,599			389,495
Premises and equipment (Notes 14)		3,146,723			3,174,720
Intangible assets (Note 15)		790,477			785,386
Assets held for sale (Note 16)		17,092			26,327
Net defined benefit asset (Note 22)		36,661			21,346
Current tax assets		13,468			22,598
Deferred tax assets		22,125			31,131
Derivative assets (Designated for hedging) (Notes 4, 11 and 24)		62,765			106,764
Other assets (Notes 17 and 39)		2,521,162			2,088,950

Total assets		465,704,306			447,183,871

LIABILITIES
Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 18 and 24)		6,774,915			4,873,458
Deposits due to customers (Notes 4, 11, 19 and 39)		323,491,921			317,899,871
Borrowings (Notes 4, 11 and 20)		26,668,312			24,755,459
Debentures (Notes 4, 11 and 20)		45,208,829			44,653,864
Provisions (Notes 21, 38 and 39)		578,318			576,134
Net defined benefit liability (Note 22)		52,404			47,986
Current tax liabilities		839,963			584,491
Deferred tax liabilities		49,193			186,946
Derivative liabilities (Designated for hedging) (Notes 4, 11 and 24)		74,634			27,584
Other financial liabilities (Notes 4, 11, 23 and 39)		32,021,116			24,171,030
Other liabilities (Notes 6, 23 and 40)		643,390			556,853

Total liabilities		436,402,995			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		(2,272,662	)		(2,167,614	)
Retained earnings		21,639,489			21,392,564

		26,283,259			25,842,019

Non-controlling interests		3,018,052			3,008,176

Total equity		29,301,311			28,850,195

Total liabilities and equity		465,704,306			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 PERIODS ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month periods ended March 31
	2022			2021
	(Korean Won in millions, except for per share data)
Interest income		2,940,758			2,327,185
Financial assets at FVTPL		16,673			11,374
Financial assets at FVTOCI		141,591			91,786
Financial assets at amortized cost		2,782,494			2,224,025
Interest expense		(953,092	)		(707,519	)

Net interest income (Notes 11, 28 and 39)		1,987,666			1,619,666
Fees and commissions income		576,920			518,865
Fees and commissions expense		(171,220	)		(160,404	)

Net fees and commissions income (Notes 11, 29 and 39)		405,700			358,461
Dividend income (Notes 11, 30 and 39)		47,023			66,590
Net gain on financial instruments at FVTPL (Notes 11, 31 and 39)		115,386			82,083
Net gain on financial assets at FVTOCI (Notes 11 and 32)		271			37,011
Net gain arising on financial assets at amortized cost (Note 11)		48,068			34,676
Impairment losses due to credit loss (Notes 33 and 39)		(166,068	)		(135,993	)
General and administrative expense (Notes 34 and 39)		(976,128	)		(917,607	)
Other net operating expense (Notes 11, 24, 34 and 39)		(233,476	)		(211,375	)

Operating income		1,228,442			933,512
Share of loss of joint ventures and associates (Note 12)		(12,819	)		(5,591	)
Other non-operating income(expense)		(50,546	)		13,841

Non-operating income(expense) (Note 35)		(63,365	)		8,250
Net income before income tax expense		1,165,077			941,762
Income tax expense (Note 36)		(292,605	)		(222,895	)
Net income		872,472			718,867

Net gain on valuation of equity securities at FVTOCI		943			25,166
Changes in capital due to equity method		33			289
Remeasurement gain(loss) related to defined benefit plan		35,543			(7,304	)

Items that will not be reclassified to profit or loss		36,519			18,151

Net loss on valuation of debt securities at FVTOCI		(223,872	)		(53,813	)
Changes in capital due to equity method		502			1,295
Net gain on foreign currency translation of foreign operations		59,192			80,967
Net loss on valuation of hedges of net investments in foreign operations		(3,949	)		—
Net gain(loss) on valuation of cash flow hedge		1,404			(6	)

Items that may be reclassified to profit or loss		(166,723	)		28,443
Other comprehensive income(loss), net of tax		(130,204	)		46,594
Total comprehensive income		742,268			765,461

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month periods ended March 31
	2022		2021

	(Korean Won in millions, except for per share data)
Net income attributable to:		872,472		718,867
Net income attributable to owners		839,188		667,103
Net income attributable to non-controlling interests		33,284		51,764
Total comprehensive income attributable to:		742,268		765,461
Comprehensive income attributable to owners		707,072		711,552
Comprehensive income attributable to non-controlling interests		35,196		53,909
Earnings per share (Note 37)
Basic and diluted earnings per share (Unit: In Korean Won)		1,127		902

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

- 6 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 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		—		—		—		—			667,103			667,103			51,764			718,867
Net loss on valuation of financial instruments at FVTOCI		—		—		—		(28,581	)		—			(28,581	)		(66	)		(28,647	)
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—		1,257			(1,257	)		—			—			—
Changes in capital due to equity method		—		—		—		1,584			—			1,584			—			1,584
Gain on foreign currency translation of foreign operations		—		—		—		78,839			—			78,839			2,128			80,967
Gain(loss) on valuation of cash flow hedge		—		—		—		(143	)		—			(143	)		137			(6	)
Capital related to noncurrent assets held for sale		—		—		—		(48	)		48			—			—			—
Remeasurement loss related to defined benefit plan		—		—		—		(7,250	)		—			(7,250	)		(54	)		(7,304	)
Transactions with owners and others
Dividends to common stocks		—		—		—		—			(260,016	)		(260,016	)		(9,366	)		(269,382	)
Dividends to hybrid securities		—		—		—		—			(15,775	)		(15,775	)		(28,132	)		(43,907	)
Changes in subsidiaries’ capital		—		—		3		31,251			(31,251	)		3			(12	)		(9	)
Others		—		—		—		23,200			322			23,522			(23,200	)		322

March 31, 2021 (Unaudited)		3,611,338		1,895,366		626,114		(2,247,363	)		19,627,439			23,512,894			3,665,436			27,178,330

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		—		—		—		—			839,188			839,188			33,284			872,472
Net loss on valuation of financial instruments at FVTOCI		—		—		—		(222,649	)		—			(222,649	)		(280	)		(222,929	)
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—		(49	)		49			—			—			—
Changes in capital due to equity method		—		—		—		535			—			535			—			535
Gain on foreign currency translation of foreign operations		—		—		—		57,021			—			57,021			2,171			59,192
Loss on valuation of hedges of net investments in foreign operations		—		—		—		(3,949	)		—			(3,949	)		—			(3,949	)
Gain on valuation of cash flow hedge		—		—		—		1,404			—			1,404			—			1,404
Capital related to noncurrent assets held for sale		—		—		—		(247	)		247			—			—			—
Remeasurement gain related to defined benefit plan		—		—		—		35,522			—			35,522			21			35,543
Transactions with owners and others
Dividends to common stocks		—		—		—		—			(546,044	)		(546,044	)		(9,922	)		(555,966	)
Issuance of hybrid securities		—		299,363		—		—			—			299,363			—			299,363
Dividends to hybrid securities		—		—		—		—			(19,151	)		(19,151	)		(15,399	)		(34,550	)
Changes in subsidiaries’ capital		—		—		—		27,364			(27,364	)		—			1			1

March 31, 2022 (Unaudited)		3,640,303		2,593,744		682,385		(2,272,662	)		21,639,489			26,283,259			3,018,052			29,301,311

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 THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month periods ended March 31
	2022			2021

	(Korean Won in millions)
Cash flows from operating activities:
Net income		872,472			718,867
Adjustments to net income:
Income tax expense		292,605			222,895
Interest income		(2,940,758	)		(2,327,185	)
Interest expense		953,092			707,519
Dividend income		(47,023	)		(66,590	)

	(1,742,084)			(1,463,361)

Additions of expenses not involving cash outflows:
Loss on valuation of financial instruments at FVTPL		449,594			162,816
Loss on financial assets at FVTOCI		916			57
Impairment loss due to credit loss		166,068			135,993
Loss on other provisions		1,334			2,786
Retirement benefit		41,177			44,345
Depreciation and amortization		218,905			138,988
Net loss on foreign currency translation		12,528			49,017
Loss on derivatives (designated for hedge)		113,925			50,389
Loss on valuation and impairment loss of investments in joint ventures and associates		28,231			11,676
Loss on disposal of investments in joint ventures and associates		2,373			—
Loss on disposal of premises and equipment, intangible assets and other assets		685			620
Impairment loss on premises and equipment, intangible assets and other assets		336			220
Other loss		62,196			—

	1,098,268			596,907

Deductions of income not involving cash inflows:
Gain on financial assets at FVTOCI		1,187			37,068
Gain on other provisions		6,184			73
Gain on derivatives (designated for hedge)		16,450			25,999
Gain on fair value hedge		108,592			58,653
Gain on valuation of investments in joint ventures and associates		15,412			6,085
Gain on disposal of investments in joint ventures and associates		561			—
Gain on disposal of premises and equipment, intangible assets and other assets		9,019			4,459
Reversal of impairment loss on premises and equipment, intangible assets and other assets		278			144
Other income		35,718			9,654

	193,401			142,135

Changes in operating assets and liabilities:
Financial instruments at FVTPL		(283,643	)		225,557
Loans and other financial assets at amortized cost		(7,523,851	)		(16,511,538	)
Other assets		(512,646	)		(136,191	)
Deposits due to customers		4,961,070			6,480,418
Provisions		(492	)		(8,152	)
Net defined benefit liability		(3,093	)		(15,729	)
Other financial liabilities		7,086,168			9,859,829
Other liabilities		81,879			68,401

	3,805,392			(37,405)

Interest income received		2,819,364			2,276,875
Interest expense paid		(900,855	)		(777,914	)
Dividends received		23,677			28,239
Income tax paid		(82,485	)		(76,109	)

Net cash inflow from operating activities		5,700,348			1,123,964

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month periods ended March 31
	2022			2021

	(Korean Won in millions)
Cash flows from investing activities:
Cash in-flows from investing activities:
Disposal of financial instruments at FVTPL		1,537,136			2,398,523
Disposal of financial assets at FVTOCI		5,274,194			7,312,320
Redemption of securities at amortized cost		1,380,542			1,317,352
Disposal of investments in joint ventures and associates		68,984			7,000
Disposal of investment properties		2,020			—
Disposal of premises and equipment		109			7,875
Disposal of intangible assets		654			—
Disposal of assets held for sale		18,510			—
Net decrease of other assets		15,396			25,766

	8,297,545			11,068,836

Cash out-flows from investing activities:
Acquisition of financial instruments at FVTPL		1,841,788			3,417,895
Acquisition of financial assets at FVTOCI		6,748,028			7,940,822
Acquisition of securities at amortized cost		2,544,559			556,635
Acquisition of investments in joint ventures and associates		70,010			76,536
Acquisition of premises and equipment		20,217			19,279
Acquisition of intangible assets		32,401			35,203

	11,257,003			12,046,370

Net cash outflow from investing activities		(2,959,458	)		(977,534	)

Cash flows from financing activities:
Cash in-flows from financing activities:
Net increase in borrowings		1,696,091			—
Issuance of debentures		5,853,591			6,851,794
Net increase of other liabilities		773			417
Issuance of hybrid securities		299,362			—
Changes in non-controlling interests		1			—
Net increase of liabilities for non-controlling interests		2,519			—

	7,852,337			6,852,211

Cash out-flows from financing activities:
Net cash flows from hedging activities		—			11,127
Net decrease in borrowings		—			792,431
Redemption of debentures		5,258,030			5,340,389
Redemption of lease liabilities		47,061			50,329
Dividends paid to hybrid securities		34,550			43,907
Dividends paid to non-controlling interest		2,703			1,635
Paid-in capital decrease on non-controlling interests		—			12

	5,342,344			6,239,830

Net cash inflow from financing activities		2,509,993			612,381

Effects of exchange rate changes on cash and cash equivalents		241,717			399,295
Net increase in cash and cash equivalents		5,492,600			1,158,106
Cash and cash equivalents, beginning of the period		7,565,818			9,990,983

Cash and cash equivalents, end of the period (Note 6)		13,058,418			11,149,089

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 MARCH 31, 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 March 31. 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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

Percentage of ownership
(%)

Location

Financial
statements
date of use

Subsidiaries

Main business

March 31,
2022

December 31,
2021

Held by Woori Financial Group Inc.

Woori Bank

Bank

100.0

Korea

March 31

Woori Card Co., Ltd.

Finance

100.0

Korea

March 31

Woori Financial Capital Co., Ltd.

Finance

100.0

Korea

March 31

Woori Investment Bank Co., Ltd.

Other credit finance business

58.7

Korea

March 31

Woori Asset Trust Co., Ltd.

Real estate trust

67.2

Korea

March 31

Woori Savings Bank (*7)

Bank

100.0

Korea

March 31

Woori Asset Management Corp.

Finance

73.0

Korea

March 31

Woori Financial F&I Co., Ltd.

Finance

100.0

—

Korea

March 31

Woori Credit Information Co., Ltd.

Credit information

100.0

Korea

March 31

Woori Fund Service Co., Ltd.

Financial support service business

100.0

Korea

March 31

Woori Private Equity Asset Management Co., Ltd.

Finance

100.0

Korea

March 31

Woori Global Asset Management Co., Ltd.

Finance

100.0

Korea

March 31

Woori FIS Co., Ltd.

System software development & maintenance

100.0

Korea

March 31

Woori Finance Research Institute Co., Ltd.

Other service business

100.0

Korea

March 31

Held by Woori Bank

Woori America Bank(*1)

Finance

100.0

America

March 31

Woori Global Markets Asia Limited

Finance

100.0

Hong
Kong

March 31

Woori Bank China Limited

Finance

100.0

China

March 31

AO Woori Bank

Finance

100.0

Russia

March 31

PT Bank Woori Saudara Indonesia 1906 Tbk(*1)

Finance

84.2

Indonesia

March 31

Banco Woori Bank do Brasil S.A.

Finance

100.0

Brazil

March 31

Korea BTL Infrastructure Fund

Finance

99.9

Korea

March 31

Woori Finance Myanmar Co., Ltd.

Finance

100.0

Myanmar

March 31

Wealth Development Bank

Finance

51.0

Philippines

March 31

Woori Bank Vietnam Limited

Finance

100.0

Vietnam

March 31

Woori Bank (Cambodia) PLC (*9)

Finance

100.0

Cambodia

March 31

Woori Bank Europe(*1)

Finance

100.0

Germany

March 31

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

Asset securitization

0.0

Korea

March 31

Asiana Saigon Inc. (*2)

Asset securitization

0.0

Korea

March 31

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

Asset securitization

15.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

Jeonju Iwon Ltd. (*2)

Asset securitization

0.0

Korea

March 31

Wonju I one Inc. (*2)

Asset securitization

0.0

Korea

March 31

Heitz Third Co., Ltd. (*2)

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

- 11 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Location

Financial
statements
date of use

Subsidiaries

Main business

March 31,
2022

December 31,
2021

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

ATLANTIC TRANSPORTATION 1 S.A. (*2)

Asset securitization

0.0

Marshall
islands

March 31

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

Asset securitization

0.0

Korea

March 31

HD Project Co., Ltd. (*2)

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

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

Securities investment and others

100.0

Korea

March 31

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

Securities investment and others

98.8

Korea

March 31

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

Securities investment and others

97.3

England

March 31

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

Securities investment and others

99.0

Korea

March 31

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

Securities investment and others

99.4

Korea

March 31

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

Securities investment and others

97.7

Korea

March 31

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

Securities investment and others

98.8

Korea

March 31

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

Securities investment and others

99.3

Korea

March 31

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

Securities investment and others

98.1

Korea

March 31

- 12 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Location

Financial
statements
date of use

Subsidiaries

Main business

March 31,
2022

December 31,
2021

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

Securities investment and others

99.8

Korea

March 31

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

Securities investment and others

97.0

Korea

March 31

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

Securities investment and others

97.1

Korea

March 31

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

Securities investment and others

96.7

96.0

Korea

March 31

Principal Guaranteed Trust (*4)

Trust

0.0

Korea

March 31

Principal and Interest Guaranteed Trust (*4)

Trust

0.0

Korea

March 31

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

March 31

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

ADP 16 Brussels (*2)

Asset securitization

0.0

Belgium

March 31

Held by Woori Card Co., Ltd.

TUTU Finance –WCI Myanmar Co., Ltd.

Finance

100.0

Myanmar

March 31

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

Asset securitization

0.5

Korea

March 31

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

Asset securitization

0.5

Korea

March 31

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

Asset securitization

0.5

Korea

March 31

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

Asset securitization

0.5

Korea

March 31

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

Asset securitization

0.5

—

Korea

March 31

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

March 31

Held by Woori Investment Bank Co., Ltd.

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

- 13 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Location

Financial
statements
date of use

Subsidiaries

Main business

March 31,
2022

December 31,
2021

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

Korea

March 31

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

Asset securitization

5.0

0.0

Korea

March 31

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

0.0

Korea

March 31

Held by Woori Asset Management Corp.

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

Securities investment and others

89.7

93.6

Korea

March 31

Woori Together TDF 2025 (*5)

Securities investment and others

—

34.1

Korea

March
31-

Woori Together TDF 2030 (*5)

Securities investment and others

—

32.3

Korea

March
31-

Woori Together TDF 2035 (*3)

Securities investment and others

52.9

56.0

Korea

March 31

Woori Together TDF 2040 (*3)

Securities investment and others

52.4

55.7

Korea

March 31

Woori Together TDF 2045 (*3)

Securities investment and others

61.7

65.2

Korea

March 31

Woori Together TDF 2050 (*3)

Securities investment and others

60.4

63.6

Korea

March 31

Woori Star50 Feeder Fund(H) (*3)

Securities investment and others

44.1

44.8

Korea

March 31

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

Securities investment and others

—

40.8

Korea

March
31-

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

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

Asset securitization

5.0

—

Korea

March 31

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

March 31

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

March 31

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

March 31

- 14 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Location

Financial
statements
date of use

Subsidiaries

Main business

March 31,
2022

December 31,
2021

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

March 31

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

Securities investment and others

94.3

Korea

March 31

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

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

Securities investment and others

100.0

Korea

March 31

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

Securities investment and others

80.0

Korea

March 31

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

Securities investment and others

100.0

—

Korea

March 31

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

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

Securities investment and others

69.9

—

Korea

March 31

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

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

Securities investment and others

100.0

Korea

March 31

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

Securities investment and others

100.0

Korea

March 31

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

Securities investment and others

100.0

Korea

March 31

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

Securities investment and others

100.0

Korea

March 31

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

Securities investment and others

30.1

Korea

March 31

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

Securities investment and others

100.0

Korea

March 31

Held by Woori bank (*6)

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

Securities investment and others

92.6

Korea

March 31

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

Securities investment and others

80.0

Korea

March 31

- 15 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Percentage of ownership
(%)

Location

Financial
statements
date of use

Subsidiaries

Main business

March 31,
2022

December 31,
2021

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

Securities investment and others

80.0

Korea

March 31

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

Securities investment and others

90.9

Korea

March 31

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

Securities investment and others

87.0

Korea

March 31

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

WooriG Renewable New Deal Fund No.1 (*3)

Securities investment and others

60.0

—

Korea

March 31

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

March 31

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

Securities investment and others

63.2

Korea

March 31

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)

March 31

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

Securities investment and others

100.0

Korea

March 31

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

March 31

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

Securities investment and others

100.0

Korea

March 31

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)

March 31

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

Securities investment and others

100.0

Korea

March 31

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

March 31

GK OK Chatan (*3)

Other financial services

99.9

Japan

January 31

(*10)

(*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 March 31, 2022.

(*6)

Determined that the Group controls the investees, considering 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, by two or more subsidiaries’ investment or operation.

(*7)	During March 2022, the Company acquired a 100% equity of Woori Financial Savings Bank from the company’s subsidiary Woori Financial Capital Co., Ltd.

- 16 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

(*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.

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

As of March 31, 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

97.9

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

KIM 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

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.

- 17 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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 revision of the Capital Market Act, a specialized investment type private equity fund has been changed to a general private equity fund.

- 18 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 March 31, 2022				For the three-month period ended March 31, 2022
Subsidiaries	Assets		Liabilities		Operating revenue		Net income(loss) attributable to owners			Comprehensive income(loss) attributable to owners
Woori Bank		432,118,831		408,066,364		8,095,263		716,423			579,446
Woori Card Co., Ltd.		14,733,388		12,421,379		453,010		85,536			94,688
Woori Financial Capital Co., Ltd.		11,205,461		9,796,801		291,908		49,127			50,180
Woori Investment Bank Co., Ltd.		5,575,560		4,973,184		93,943		19,989			19,974
Woori Asset Trust Co., Ltd.		277,412		89,525		35,375		20,684			20,677
Woori Savings Bank		1,528,847		1,304,005		25,502		6,025			6,025
Woori Asset Management Corp.		146,385		24,190		7,178		688			688
Woori Financial F&I Co., Ltd.		200,575		1,165		314		(302	)		(302	)
Woori Credit Information Co., Ltd.		40,125		8,453		8,717		163			163
Woori Fund Service Co., Ltd.		22,450		2,882		4,087		1,082			1,082
Woori Private Equity Asset Management Co., Ltd.		42,688		4,409		1,323		145			141
Woori Global Asset Management Co., Ltd.		35,981		8,386		2,707		(91	)		(91	)
Woori FIS Co., Ltd.		111,644		69,894		69,492		(4,064	)		(4,163	)
Woori Finance Research Institute Co., Ltd.		5,674		2,075		1,607		(7	)		(8	)


	As of December 31, 2021				For the three-month period ended March 31, 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		8,038,046		589,370			633,592
Woori Card Co., Ltd.		14,116,832		11,858,065		394,659		71,971			74,898
Woori Financial Capital Co., Ltd.		10,259,868		9,073,104		205,407		34,984			35,907
Woori Investment Bank Co., Ltd.		5,159,742		4,559,856		66,687		17,005			16,920
Woori Asset Trust Co., Ltd.		254,773		86,418		18,876		8,930			8,924
Woori Asset Management Corp.		151,651		30,144		7,586		1,700			1,700
Woori Savings Bank		1,444,508		1,222,888		18,315		4,203			3,801
Woori Credit Information Co., Ltd.		40,510		8,532		8,841		(24	)		(24	)
Woori Fund Service Co., Ltd.		22,168		2,582		3,609		740			740
Woori Private Equity Asset Management Co., Ltd.		42,790		4,652		980		393			384
Woori Global Asset Management Co., Ltd.		35,265		7,579		2,801		(222	)		(222	)
Woori FIS Co., Ltd.		105,138		59,225		68,039		(4,980	)		(5,038	)
Woori Finance Research Institute Co., Ltd.		5,864		2,257		1,705		5			1

- 19 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 March 31, 2022 and December 31, 2021, the Group provides 2,830,329 million Won and 2,480,131 million Won of credit facilities, respectively, for the structured entities mentioned above. As of March 31, 2022 and December 31, 2021, the purchase commitment amount is 2,788,803 million Won and 2,263,387 million Won.

- 20 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 March 31, 2022 and December 31, 2021 are 932,750 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 arrangements, credit offerings. As of March 31, 2022 and December 31, 2021, the purchase commitment amount is 3,433,148 million Won and 3,033,231 million Won, respectively.

- 21 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	March 31, 2022
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		14,210,610		87,724,782		112,481,637		1,403,061
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		8,593,751		4,901,133		4,513,079		32,711
Financial assets at FVTPL		197,907		94,557		3,895,218		10,480
Financial assets at FVTOCI		4,077,617		41,108		—		—
Financial assets at amortized cost		4,318,227		4,763,404		31,071		22,231
Investments in joint ventures and associates		—		—		586,790		—
Derivative assets		—		2,064		—		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		950		6,493		—		3,184
Derivative liabilities		322		4,679		—		—
Other liabilities(provisions)		628		1,814		—		3,184
The maximum exposure to risks		8,756,716		5,968,248		4,520,600		88,824
Investment assets		8,593,751		4,901,133		4,513,079		32,711
Credit facilities and others		162,965		1,067,115		7,521		56,113
Loss(reversal) recognized on unconsolidated structured entities		37		27,233		44,003		(2,685	)


	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		5,728,977		4,221,072		115,212
Investment assets		8,518,101		4,633,475		4,214,747		54,662
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 MARCH 31, 2022 AND 2021 (UNAUDITED)

(7)	As of March 31, 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


	March 31, 2022		December 31, 2021
Woori Bank (*)		2,555,166		2,555,166
Woori Investment Bank Co., Ltd.		253,009		251,879
Woori Asset Trust Co., Ltd.		66,678		60,726
Woori Asset Management Corp		33,990		33,768
PT Bank Woori Saudara Indonesia 1906 Tbk		90,185		87,741
Wealth Development Bank		20,963		20,835

(*)	Hybrid securities issued by Woori Bank

Net income attributable to non-controlling interests


	For the three-month periods ended March 31
	2022		2021
Woori Bank (*)		15,399		28,132
Woori Financial Capital Co., Ltd.		—		11,699
Woori Investment Bank Co., Ltd.		8,355		6,668
Woori Asset Trust Co., Ltd.		6,318		2,466
Woori Asset Management Corp		222		417
PT Bank Woori Saudara Indonesia 1906 Tbk		2,926		2,135
Wealth Development Bank		55		238

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

Dividends to non-controlling interests


	For the three-month periods ended March 31
	2022		2021
Woori Bank (*)		15,399		28,132
Woori Financial Capital Co., Ltd.		—		4,121
Woori Investment Bank Co., Ltd.		7,220		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 MARCH 31, 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 qualify for recognition in revised Conceptual Framework for Financial Reporting. However, the amendments add an exception for the recognition of liabilities and contingent liabilities within the scope of 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 amendments should be applied for annual periods beginning on or after January 1, 2022, and earlier application is permitted. 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 amendments should be applied for annual periods beginning on or after January 1, 2022, and earlier application is permitted. 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 amendments should be applied for annual periods beginning on or after January 1, 2022, and earlier application is permitted. 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 MARCH 31, 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 management’s best estimate of the weighted average annual income tax rate expected for the full financial year. 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 MARCH 31, 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.

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 March 31, 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.

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):


		March 31, 2022		December 31, 2021
Total loans (Loan receivables, payment guarantees) that are subject to loan deferment and interest deferment.	Corporate		2,462,304		2,428,496
	Retail		175,772		167,146

	Total		2,638,076		2,595,642

Total loans changed its stage from 12-month to lifetime(Stage 2) expected credit losses.	Corporate		2,186,905		2,125,492
	Retail		139,136		134,920

	Total		2,326,041		2,260,412

The expected credit loss allowances that are additionally recognized.	Corporate		278,057		275,057
	Retail		10,025		9,657

	Total		288,082		284,714

In addition, as of March 31, 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 March 31, 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):


	March 31, 2022		December 31, 2021
Corporate		50,935		48,583
Retail		6,155		6,237

Total		57,090		54,820

- 26 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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 March 31, 2022, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 6,742 million Won, and the cumulative expected credit loss allowance have increased for 188 million Won.

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 March 31, 2022, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 78,839 million Won and cumulative expected credit loss allowance have increased for 17,141 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 separate financial statements for the year ended December 31, 2021.

- 27 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 MARCH 31, 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 sees 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.

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

- 29 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

•

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

a) Probability weight

As of March 31, 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 (prospect period: 2022) As of March 31, 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 March 31, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


			March 31, 2022			December 31, 2021
Corporate	GDP growth rate	Increase by 1% point		(71,439	)		(68,140	)
	GDP growth rate	Decrease by 1% point		78,102			74,495
	Personal consumption expenditures price index rate	Increase by 1% point		(42,623	)		(40,654	)
	Personal consumption expenditures price index rate	Decrease by 1% point		45,111			43,028
Retail	GDP growth rate	Increase by 1% point		(8,683	)		(8,798	)
	GDP growth rate	Decrease by 1% point		9,044			9,163
	Consumer price index rate	Increase by 1% point		(29,084	)		(29,469	)
	Consumer price index rate	Decrease by 1% point		33,903			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 MARCH 31, 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 March 31, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


		March 31, 2022		December 31, 2021
Loans and other financial assets at amortized cost (*1)	Korean treasury and government agencies		19,646,901		14,934,813
	Banks		22,755,109		24,733,020
	Corporates		136,601,123		131,027,256
	Consumers		191,116,175		191,237,783

	Sub-total		370,119,308		361,932,872

Financial assets at FVTPL (*2)	Deposit		50,581		65,072
	Debt securities		2,848,453		2,743,239
	Loans		935,636		667,467
	Derivative assets		5,978,669		4,803,131
	Others		1,518		1,518

	Sub-total		9,814,857		8,280,427

Financial assets at FVTOCI	Debt securities		39,425,384		38,126,977
Securities at amortized cost	Debt securities		18,287,488		17,086,274
Derivative assets	Derivative assets (Designated for hedging)		62,765		106,764
Off-balance accounts	Guarantees (*3)		13,366,889		12,987,809
	Loan commitments		117,725,006		114,414,462

	Sub-total		131,091,895		127,402,271

	Total		568,801,697		552,935,585

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

(*2)	Puttable financial instruments are not included.

(*3)	As of March 31, 2022 and December 31, 2021, the financial guarantee amount of 4,080,253 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 MARCH 31, 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):


	March 31, 2022
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		345,536,749		5,406,363		4,440,262		195,571		725,218		13,815,145		370,119,308
Securities at amortized cost		17,357,190		585,299		143,985		—		—		201,014		18,287,488
Financial assets at FVTPL		7,263,917		1,512		1,292,384		236,260		109,244		911,540		9,814,857
Financial assets at FVTOCI		35,192,654		886,625		1,852,108		1,847		42,609		1,449,541		39,425,384
Derivative assets (Designated for hedging)		21,635		—		41,130		—		—		—		62,765
Off-balance accounts		127,352,854		1,083,064		381,838		30,299		16,558		2,227,282		131,091,895

Total		532,724,999		7,962,863		8,151,707		463,977		893,629		18,604,522		568,801,697

(*) 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.

b) 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 March 31, 2022 and December 31, 2021 (Unit: Korean Won in millions):


	March 31, 2022
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		69,879,832		39,967,474		47,265,897		4,888,679		186,761,540		21,355,886		370,119,308
Securities at amortized cost		379,218		—		6,892,721		240,426		—		10,775,123		18,287,488
Financial assets at FVTPL		164,614		204,365		7,722,254		13,106		494		1,710,024		9,814,857
Financial assets at FVTOCI		420,292		262,040		29,319,340		152,743		—		9,270,969		39,425,384
Derivative assets (Designated for hedging)		—		—		62,765		—		—		—		62,765
Off-balance accounts		19,097,898		20,212,196		12,038,365		3,943,129		69,807,579		5,992,728		131,091,895

Total		89,941,854		60,646,075		103,301,342		9,238,083		256,569,613		49,104,730		568,801,697


	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 MARCH 31, 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 March 31, 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 >


			March 31, 2022
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		909,241		16		6,033
		General wholesale business		1,682,837		312		—

		Sub-total		2,592,078		328		6,033

	Accommodation business			1,432,636		172		20,684
	Travel business			57,726		—		—
	Art/sports, leisure service			1,724,885		49		—
	Food business			1,294,144		27		—
	Transportation business			384,290		3		9,687
	Education business			446,242		3		—
	Others			1,600,142		448		—

	Sub-total			9,532,143		1,030		36,404

Manufacturing	Textile			2,670,168		419		10,925
	Metal			1,703,752		748		—
	Non-metal			675,138		148		7,267
	Chemical			3,587,872		296		—
	Transportation			3,721,321		1,817		—
	Electronics			990,938		713		—
	Others			91,246		—		—

	Sub-total			13,440,435		4,141		18,192

	Total			22,972,578		5,171		54,596


			March 31, 2022
			Off-balance accounts		Total
Service business	Distribution business	General retail business		885,332		1,800,622
		General wholesale business		489,663		2,172,812

	Sub-total			1,374,995		3,973,434

	Accommodation business			192,023		1,645,515
	Travel business			10,971		68,697
	Art/sports, leisure service			119,931		1,844,865
	Food business			177,380		1,471,551
	Transportation business			221,717		615,697
	Education business			47,964		494,209
	Others			315,559		1,916,149

	Sub-total			2,460,540		12,030,117

Manufacturing	Textile			989,625		3,671,137
	Metal			1,335,869		3,040,369
	Non-metal			377,760		1,060,313
	Chemical			3,873,333		7,461,501
	Transportation			2,128,714		5,851,852
	Electronics			2,081,077		3,072,728
	Others			8,702		99,948

	Sub-total			10,795,080		24,257,848

	Total			13,255,620		36,287,965

- 33 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 MARCH 31, 2022 AND 2021 (UNAUDITED)

< Woori Card Co., Ltd. >


	March 31, 2022
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		3,563		—		—		11,529		15,092
Travel business		4,286		—		—		20,563		24,849
Aviation		766		—		—		4,307		5,073
Cosmetics industry		7,698		—		—		11,040		18,738
Distribution business		15,261		—		—		38,675		53,936
Food industry		73,672		—		—		123,462		197,134
Art/sports, leisure service		13,975		—		—		44,326		58,301

Total		119,221		—		—		253,902		373,123


	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 MARCH 31, 2022 AND 2021 (UNAUDITED)


			March 31, 2022
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		88,881		—		—
		General wholesale business		334,363		—		—

		Sub-total		423,244		—		—

	Accommodation business			8,379		—		—
	Travel business			65		—		—
	Art/sports, leisure service			9,756		—		—
	Food business			142,814		—		—
	Transportation business			683,922		—		—
	Education business			25,255		—		—
	Others			117,364		—		—

	Sub-total			1,410,799		—		—

Manufacturing	Textile			794		—		—
	Metal			3,082		—		—
	Non-metal			761		—		—
	Chemical			188		—		—
	Transportation			478		—		—
	Electronics			4,358		—		—
	Cosmetics			746		—		—
	Others			118,452		—		—

	Sub-total			128,859		—		—

Total COVID-19 vulnerable business				1,539,658		—		—
Other business	Others			7,061,785		29,222		—

Total				8,601,443		29,222		—


			March 31, 2022
			Off-balance accounts		Total
Service business	Distribution business	General retail business		—		88,881
		General wholesale business		—		334,363

		Sub-total		—		423,244

	Accommodation business			—		8,379
	Travel business			—		65
	Art/sports, leisure service			—		9,756
	Food business			—		142,814
	Transportation business			—		683,922
	Education business			—		25,255
	Others			150,987		268,351

	Sub-total			150,987		1,561,786

Manufacturing	Textile			—		794
	Metal			—		3,082
	Non-metal			—		761
	Chemical			—		188
	Transportation			—		478
	Electronics			—		4,358
	Cosmetics			—		746
	Others			13,791		132,243

	Sub-total			13,791		142,650

Total COVID-19 vulnerable business				164,778		1,704,436
Other business	Others			812,184		7,903,191

Total				976,962		9,607,627

- 36 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 MARCH 31, 2022 AND 2021 (UNAUDITED)

< Woori Investment Bank Co., Ltd. >


	March 31, 2022
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		50,184		—		—		—		50,184
Distribution business		12,029		9,981		—		—		22,010
Art/sports, leisure service		64,580		—		—		—		64,580

Total		126,793		9,981		—		—		136,774


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


	March 31, 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		323,709,091		23,125,413		13,854,309		10,154,456		1,245,465		66,343		372,155,077		(2,035,769	)		370,119,308
Korean treasury and government agencies		19,651,954		4		9		—		—		—		19,651,967		(5,066	)		19,646,901
Banks		22,156,637		561,316		14,401		—		36,968		—		22,769,322		(14,214	)		22,755,108
Corporates		114,462,131		15,989,730		2,968,193		3,790,268		528,493		66,343		137,805,158		(1,204,036	)		136,601,122
General business		72,081,207		8,987,056		2,118,707		2,572,224		384,873		—		86,144,067		(824,333	)		85,319,734
Small- and medium-sized enterprise		35,245,668		6,451,186		823,323		1,179,315		143,165		—		43,842,657		(325,579	)		43,517,078
Project financing and others		7,135,256		551,488		26,163		38,729		455		66,343		7,818,434		(54,124	)		7,764,310
Consumers		167,438,369		6,574,363		10,871,706		6,364,188		680,004		—		191,928,630		(812,453	)		191,116,177
Securities at amortized cost		18,293,009		—		—		—		—		—		18,293,009		(5,521	)		18,287,488
Financial assets at FVTOCI (*3)		39,126,245		299,139		—		—		—		—		39,425,384		(15,177	)		39,425,384

Total		381,128,345		23,424,552		13,854,309		10,154,456		1,245,465		66,343		429,873,470		(2,056,467	)		427,832,180


	March 31, 2022
	Collateral value
	Stage1		Stage2		Stage3		Total
Loans and other financial assets at amortized cost		209,876,508		18,287,721		583,206		228,747,435
Korean treasury and government agencies		20,535		—		—		20,535
Banks		1,546,180		—		3,670		1,549,850
Corporates		76,660,709		4,613,977		293,928		81,568,614
General business		41,471,380		3,099,628		211,910		44,782,918
Small- and medium-sized enterprise		31,702,563		1,514,349		81,803		33,298,715
Project financing and others		3,486,766		—		215		3,486,981
Consumers		131,649,084		13,673,744		285,608		145,608,436
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		209,876,508		18,287,721		583,206		228,747,435

(*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 MARCH 31, 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 MARCH 31, 2022 AND 2021 (UNAUDITED)

Guarantees and commitments

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


	March 31, 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		11,952,183		1,018,347		25,149		303,233		67,977		13,366,889
Loan Commitments		111,990,015		3,026,786		2,059,260		648,585		360		117,725,006

Total		123,942,198		4,045,133		2,084,409		951,818		68,337		131,091,895

(*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 three-month period ended March 31, 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 MARCH 31, 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 three-month period March 31, 2022 and for the year ended December 31, 2021, and the VaR of the Bank as of March 31, 2022 and December 31, 2021 are as follows (Unit: Korean Won in millions):


	March 31, 2022			For the three-month period ended March 31, 2022									December 31, 2021			For the year ended December 31, 2021
Risk factor	March 31, 2022			Average			Maximum			Minimum			December 31, 2021			Average			Maximum			Minimum
Interest rate		6,998			5,718			7,298			4,298			4,177			4,681			14,017			2,405
Stock price		4,719			4,659			12,448			1,806			2,972			3,637			6,676			1,609
Foreign currencies		11,975			6,981			11,975			5,421			5,904			6,745			13,144			4,747
Diversification		(13,306	)		(6,956	)		(14,380	)		(4,201	)		(6,072	)		(7,300	)		(20,006	)		(3,627	)

Total VaR(*)		10,386			10,402			17,341			7,324			6,981			7,763			13,831			5,134

(*)	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 MARCH 31, 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 risk in banking book(IRRBB) basis for assets and liabilities by subsidiary as of the end of March 31, 2022 and December 31, 2021 are as follows(Unit: Korean Won in millions):


	March 31, 2022				December 31, 2021
	ΔEVE (*1)		ΔNII (*2)		ΔEVE (*1)		ΔNII (*2)
Woori Bank		841,050		224,402		920,290		195,186
Woori Card Co., Ltd.		115,446		77,544		126,576		59,114
Woori Financial Capital Co., Ltd.		62,417		631		58,794		1,384
Woori Investment Bank Co., Ltd.		22,740		4,077		17,607		5,556
Woori Asset Trust Co., Ltd.		1,109		608		820		1,709
Woori Asset Management Corp.		1,049		737		1,411		504
Woori Savings Bank		17,300		1,255		15,175		949
Woori Private Equity Asset Management Co., Ltd.		1		70		32		59
Woori Global Asset Management Co., Ltd.		535		147		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 MARCH 31, 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):


	March 31, 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		211,863,575		53,604,141		13,620,104		17,097,923		62,570,551		4,517,617		363,273,911
Financial assets at FVTPL		1,733,223		115,421		44,818		56,898		167,953		15,118		2,133,431
Financial assets at FVTOCI		6,795,317		3,810,136		3,817,443		3,303,525		21,713,095		825,872		40,265,388
Securities at amortized cost		1,518,388		813,438		949,912		1,444,948		12,567,867		1,994,177		19,288,730

Total		221,910,503		58,343,136		18,432,277		21,903,294		97,019,466		7,352,784		424,961,460

Liability:
Deposits due to customers		139,327,275		47,454,624		43,282,129		28,213,184		65,641,255		71,358		323,989,825
Borrowings		13,106,823		4,366,183		1,741,726		1,327,705		5,968,192		439,284		26,949,913
Debentures		8,450,619		3,525,442		3,239,467		5,098,547		23,219,830		3,266,325		46,800,230

Total		160,884,717		55,346,249		48,263,322		34,639,436		94,829,277		3,776,967		397,739,968


	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 MARCH 31, 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 March 31, 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):


	March 31, 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		5,845		7,077,625		12,144		120,561		1,656		314,610		99		133,579		696,305		8,342,680
Loans and other financial assets at amortized cost		27,321		33,080,795		170,679		1,713,025		23,629		4,489,913		2,503		3,381,511		5,985,628		48,650,872
Financial assets at FVTPL		569		689,476		17,221		170,957		—		—		361		487,426		162,638		1,510,497
Financial assets at FVTOCI		3,257		3,944,036		—		—		4,225		802,855		22		29,119		873,703		5,649,713
Securities at amortized cost		350		423,526		—		—		3,081		585,439		36		48,240		149,163		1,206,368

Total		37,342		45,215,458		200,044		2,004,543		32,591		6,192,817		3,021		4,079,875		7,867,437		65,360,130

Liability Financial liabilities at FVTPL		243		294,718		24,919		247,377		—		—		294		397,372		312,877		1,252,344
Deposits due to customers		21,057		25,495,908		215,450		2,138,861		28,047		5,329,550		1,981		2,676,970		5,084,686		40,725,975
Borrowings		5,804		7,028,060		10,559		104,821		1,204		228,790		322		435,385		2,491,845		10,288,901
Debentures		4,033		4,883,583		—		—		—		—		—		—		359,662		5,243,245
Other financial liabilities		3,587		4,343,063		41,507		412,060		3,650		693,554		177		238,985		307,720		5,995,382

Total		34,724		42,045,332		292,435		2,903,119		32,901		6,251,894		2,774		3,748,712		8,556,790		63,505,847

Off-balance accounts		8,274		10,017,845		41,514		412,126		2,656		504,710		569		769,399		526,893		12,230,973

- 45 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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

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 and commitments/financial guarantee are presented at the nominal amount.

- 46 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


		USD(*1)
		Total Amount(*2)		Interest Rate Provision
Non-derivative financial assets	Financial assets at FVTOCI		662,146		662,146
	Financial assets at amortized cost		5,265,601		5,084,635

	Total		5,927,747		5,746,781

Non-derivative financial liabilities
	Financial liabilities at amortized cost		671,994		671,994

Derivatives	Interest rate(trading)		27,322,631		27,322,631
	Currency(trading)		35,934,992		35,674,892
	Interest rate(hedging)		2,875,650		2,875,650


	Total		66,133,273		65,873,173


Off-balance accounts	Commitment and Financial Guarantee		—		—

(*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.

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


	March 31, 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		50,316		10,129		90,274		207,455		—		—		358,174
Deposits due to customers		223,992,747		31,308,997		29,575,641		30,778,651		8,937,644		1,600,121		326,193,801
Borrowings		10,585,743		4,438,824		2,709,273		2,570,309		6,213,716		451,392		26,969,257
Debentures		4,540,257		5,320,945		5,388,072		5,098,547		23,219,830		3,266,325		46,833,976
Lease liabilities		47,065		37,782		32,797		25,517		158,961		36,544		338,666
Other financial liabilities		24,223,898		91,499		13,164		18,943		864,861		1,957,303		27,169,668

Total		263,440,026		41,208,176		37,809,221		38,699,422		39,395,012		7,311,685		427,863,542


	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

- 47 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


	March 31, 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		50,316		10,129		90,274		207,455		—		—		358,174
Deposits due to customers		230,230,459		33,423,983		28,487,091		25,982,144		7,553,291		99,119		325,776,087
Borrowings		10,585,743		4,438,824		2,709,273		2,570,309		6,213,716		451,392		26,969,257
Debentures		4,540,257		5,320,945		5,388,072		5,098,547		23,219,830		3,266,325		46,833,976
Lease liabilities		47,085		37,849		32,953		25,741		165,019		39,710		348,357
Other financial liabilities		24,223,898		91,499		13,164		18,943		864,861		1,957,303		27,169,668

Total		269,677,758		43,323,229		36,720,827		33,903,139		38,016,717		5,813,849		427,455,519


	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 March 31, 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
March 31, 2022	Cash flow risk hedge		374			21			(20	)		(40	)		20,230			8,287			28,852
	Fair value risk hedge		1,763			(3,397	)		7,043			1,006			72,455			—			78,870
	Trading purpose		6,406,019			—			—			—			—			—			6,406,019
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):


	March 31, 2022		December 31, 2021
Guarantees		13,366,889		12,987,809
Loan commitments		117,725,006		114,414,462
Other commitments		4,522,628		3,427,331

- 48 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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.

- 49 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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

- 50 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


	For the period ended March 31, 2022
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Adjustments (*3)			Total
Net interest income		1,485,287			163,591			92,210			28,551			11,918			1,781,557			206,109			1,987,666
Non-interest income(expense)		407,176			43,348			18,693			21,574			1,370,383			1,861,174			(1,478,202	)		382,972
Impairment losses due to credit loss		(69,899	)		(28,250	)		(21,168	)		(8,865	)		(1,153	)		(129,335	)		(36,733	)		(166,068	)
General and administrative expense		(831,007	)		(62,184	)		(22,774	)		(14,576	)		(116,254	)		(1,046,795	)		70,667			(976,128	)

Net operating income(expense)		991,557			116,505			66,961			26,684			1,264,894			2,466,601			(1,238,159	)		1,228,442

Share of gain of associates		3,398			—			(6	)		54			2,603			6,049			(18,868	)		(12,819	)
Other non-operating expense		(47,623	)		(646	)		(5	)		(244	)		(924	)		(49,442	)		(1,104	)		(50,546	)

Non-operating income(expense)		(44,225	)		(646	)		(11	)		(190	)		1,679			(43,393	)		(19,972	)		(63,365	)

Net income(expense) before tax		947,332			115,859			66,950			26,494			1,266,573			2,423,208			(1,258,131	)		1,165,077
Tax expense		(227,920	)		(30,323	)		(17,823	)		(6,505	)		(8,862	)		(291,433	)		(1,172	)		(292,605	)

Net income(loss)		719,412			85,536			49,127			19,989			1,257,711			2,131,775			(1,259,303	)		872,472

Total assets		432,118,831			14,733,388			11,205,461			5,575,560			27,732,091			491,365,331			(25,661,025	)		465,704,306
Investment in associate		830,414			—			17,170			10,068			22,371,310			23,228,962			(21,915,584	)		1,313,378
Other assets		431,288,417			14,733,388			11,188,291			5,565,492			5,360,781			468,136,369			(3,745,441	)		464,390,928
Total liabilities		408,066,363			12,421,379			9,796,801			4,973,184			4,199,171			439,456,899			(3,053,904	)		436,402,995

(*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.

- 51 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the year ended December 31, 2021
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Adjustments (*3)			Total
Net interest income		1,198,862			141,138			68,398			24,824			5,582			1,438,804			180,862			1,619,666
Non-interest income(expense)		438,287			27,069			20,471			7,217			784,099			1,277,143			(909,697	)		367,446
Impairment losses due to credit loss		(68,827	)		(20,291	)		(17,685	)		412			(1,880	)		(108,271	)		(27,722	)		(135,993	)
General and administrative expense		(794,984	)		(50,867	)		(21,476	)		(10,530	)		(109,030	)		(986,887	)		69,280			(917,607	)

Net operating income(expense)		773,338			97,049			49,708			21,923			678,771			1,620,789			(687,277	)		933,512

Share of gain of associates		(6,038	)		—			(31	)		85			509			(5,475	)		(116	)		(5,591	)
Other non-operating expense		16,127			(942	)		(16,011	)		9			(6	)		(823	)		14,664			13,841

Non-operating income(expense)		10,089			(942	)		(16,042	)		94			503			(6,298	)		14,548			8,250

Net income(expense) before tax		783,427			96,107			33,666			22,017			679,274			1,614,491			(672,729	)		941,762
Tax expense		(191,676	)		(24,136	)		1,318			(5,012	)		(3,192	)		(222,698	)		(197	)		(222,895	)

Net income(loss)		591,751			71,971			34,984			17,005			676,082			1,391,793			(672,926	)		718,867

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 amounts at the end of the previous year.

- 52 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

(3)	Operating profit or loss from external customers for the three-month periods ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2022		2021
Domestic		1,100,591		852,480
Foreign		127,851		81,032

Total		1,228,442		933,512

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


	March 31, 2022 (*)		December 31, 2021 (*)
Domestic		5,169,619		5,201,838
Foreign		479,558		482,930

Total		5,649,177		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 three-month periods ended March 31, 2022 and 2021.

- 53 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

6.	CASH AND CASH EQUIVALENTS

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


	March 31, 2022		December 31, 2021
Cash		3,744,162		1,742,449
Foreign currencies		493,371		503,205
Demand deposits		8,470,845		5,161,529
Fixed deposits		350,040		158,635

Total		13,058,418		7,565,818

7.	FINANCIAL ASSETS AT FVTPL

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


	March 31, 2022		December 31, 2021
Financial assets at fair value through profit or loss measured at fair value		15,523,222		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):


	March 31, 2022		December 31, 2021
Deposits:
Gold banking asset		50,581		65,072
Securities:
Debt securities
Korean treasury and government agencies		1,369,979		995,713
Financial institutions		883,123		925,474
Corporates		483,536		751,636
Others		110,815		70,416
Equity securities		354,254		329,864
Capital contributions		1,529,055		1,287,723
Beneficiary certificates		3,720,593		3,504,547
		105,463		94,673

Sub-total		8,556,818		7,960,046

Loans		935,636		667,467
Derivatives assets		5,978,669		4,803,131
Other financial assets		1,518		1,518

Total		15,523,222		13,497,234

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

- 54 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

8.	FINANCIAL ASSETS AT FVTOCI

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


	March 31, 2022		December 31, 2021
Debt securities:
Korean treasury and government agencies		4,976,430		4,728,085
Financial institutions		22,568,773		22,909,615
Corporates		5,238,679		5,091,035
Bond denominated in foreign currencies		5,649,656		5,299,707
Securities loaned		991,846		98,535

Sub-total		39,425,384		38,126,977

Equity securities		968,036		992,812

Total		40,393,420		39,119,789

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


Purpose of acquisition	March 31, 2022		December 31, 2021		Remarks
Investment for strategic business partnership purpose		775,581		796,835
Debt-equity swap		192,449		195,971
Others		6		6		Insurance for mutual aid association, etc.

Total		968,036		992,812

(3)	Changes in the allowance for credit losses and gross carrying amount of financial assets at FVTOCI for the three-month period ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the three-month period ended March 31, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(12,147	)		—		—		(12,147	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision of allowance for credit losses		(719	)		—		—		(719	)
Disposal		205			—		—		205
Others (*)		(2,516	)		—		—		(2,516	)

Ending balance		(15,177	)		—		—		(15,177	)

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


	For the three-month period ended March 31, 2021
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(9,631	)		—		—		(9,631	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision of allowance for credit losses		(1,018	)		—		—		(1,018	)
Disposal		1,029			—		—		1,029
Others (*)		(82	)		—		—		(82	)

Ending balance		(9,702	)		—		—		(9,702	)

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

- 55 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Gross carrying amount


	For the three-month period ended March 31, 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		6,747,888			—		—		6,747,888
Disposal/ Recovery		(5,245,480	)		—		—		(5,245,480	)
Loss on valuation		(310,189	)		—		—		(310,189	)
Amortization based on effective interest method		8,242			—		—		8,242
Others (*)		97,946			—		—		97,946

Ending balance		39,425,384			—		—		39,425,384

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


	For the three-month period ended March 31, 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		7,940,702			—		—		7,940,702
Disposal/ Recovery		(7,309,538	)		—		—		(7,309,538	)
Gain on valuation		(22,384	)		—		—		(22,384	)
Amortization based on effective interest method		(4,476	)		—		—		(4,476	)
Others (*)		146,164			—		—		146,164

Ending balance		29,698,609			—		—		29,698,609

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

(4) During the three-month periods ended March 31, 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 67 million Won, and cumulative losses at disposal dates were 67 million Won. During the three-month periods ended March 31, 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 8,675 million Won, and cumulative losses at disposal dates were 1,733 million Won.

9.	SECURITIES AT AMORTIZED COST

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


	March 31, 2022			December 31, 2021
Korean treasury and government agencies		9,654,621			8,882,500
Financial institutions		1,585,316			1,835,947
Corporates		5,846,703			5,818,646
Bond denominated in foreign currencies		1,206,369			554,416
Allowance for credit losses		(5,521	)		(5,235	)

Total		18,287,488			17,086,274

- 56 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month period ended March 31, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(5,235	)		—		—		(5,235	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of allowance for credit losses		(283	)		—		—		(283	)
Others (*)		(3	)		—		—		(3	)

Ending balance		(5,521	)		—		—		(5,521	)

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


	For the three-month period ended March 31, 2021
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(4,566	)		—		—		(4,566	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of allowance for credit losses		187			—		—		187
Others (*)		(1	)		—		—		(1	)

Ending balance		(4,380	)		—		—		(4,380	)

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

Gross carrying amount


	For the three-month period ended March 31, 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		2,544,559			—		—		2,544,559
Disposal/ Recovery		(1,380,347	)		—		—		(1,380,347	)
Amortization based on effective interest method		10,207			—		—		10,207
Others (*)		27,081			—		—		27,081

Ending balance		18,293,009			—		—		18,293,009

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


	For the three-month period ended March 31, 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		556,634			—		—		556,634
Disposal/ Recovery		(1,317,360	)		—		—		(1,317,360	)
Amortization based on effective interest method		713			—		—		713
Others (*)		14,185			—		—		14,185

Ending balance		16,279,577			—		—		16,279,577

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

- 57 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022		December 31, 2021
Due from banks		20,973,308		15,914,139
Loans		338,493,520		336,799,510
Other financial assets		10,652,480		9,219,223

Total		370,119,308		361,932,872

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


	March 31, 2022			December 31, 2021
Due from banks in local currency:
Due from Bank of Korea (“BOK”)		16,589,343			10,219,055
Due from depository banks		118,672			159,264
Due from non-depository institutions		16,216			14,146
Due from the Korea Exchange		40			54
Others		128,820			191,501
Loss allowance		(3,983	)		(2,452	)

Sub-total		16,849,108			10,581,568

Due from banks in foreign currencies:
Due from banks on demand		1,531,334			3,615,983
Due from banks on time		604,312			205,351
Others		1,992,253			1,514,819
Loss allowance		(3,699	)		(3,582	)

Sub-total		4,124,200			5,332,571

Total		20,973,308			15,914,139

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


	Counterparty	March 31, 2022		Reason of restriction
Due from banks in local currency:
Due from BOK	BOK		16,589,343	Reserve deposits under BOK Act
Due from KSFC	KB Securities Co., Ltd.		40	Futures trading margin
Others	Korea Federation of Savings Banks and others		102,707	Guarantees, mortgage of domestic exchange transactions and others

	Sub-total		16,692,090

Due from banks in foreign currencies:
Due from banks on demand	BOK and others		1,492,394	Reserve deposits under BOK Act and others
Due from banks on time	National Bank Cambodia		303	Reserve deposits and others
Others	Korea Investment & Securities and others		1,987,122	Overseas futures and options trade deposits and others

	Sub-total		3,479,819

	Total		20,171,909

- 58 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month period ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the three-month period ended March 31, 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		(1,884	)		—		—		(1,885	)
Others (*)		236			—		—		236
Ending balance		(7,682	)		—		—		(7,682	)

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


	For the three-month period ended March 31, 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		(2,565	)		—		—		(2,565	)
Others (*)		(81	)		—		—		(81	)
Ending balance		(7,012	)		—		—		(7,012	)

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

- 59 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Gross carrying amount


	For the three-month period ended March 31, 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		5,042,281		—		—		5,042,281
Others (*)		18,536		—		—		18,536

Ending balance		20,980,990		—		—		20,980,990

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


	For the three-month period ended March 31, 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		10,903,125		—		—		10,903,125
Others (*)		19,779		—		—		19,779

Ending balance		20,790,430		—		—		20,790,430

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

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


	March 31, 2022			December 31, 2021
Loans in local currency		276,919,142			273,283,542
Loans in foreign currencies		26,070,510			24,508,250
Domestic banker’s usance		3,586,262			3,403,021
Credit card accounts		9,701,875			9,757,115
Bills bought in foreign currencies		5,904,042			5,310,080
Bills bought in local currency		219,537			265,275
Factoring receivables		29,765			17,406
Advances for customers on guarantees		21,648			26,766
Private placement bonds		541,624			519,150
Securitized loans		2,890,407			2,874,480
Call loans		2,906,565			3,481,219
Bonds purchased under resale agreements		6,305,302			10,332,858
Financial lease receivables		1,303,974			1,173,751
Installment financial bond		3,184,361			2,882,396
Others		160			159
Loan origination costs and fees		874,189			858,051
Discounted present value		(7,257	)		(7,299	)
Allowance for credit losses		(1,958,586	)		(1,886,710	)

Total		338,493,520			336,799,510

- 60 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

(6)	Changes in the allowance for credit losses of loans for the three-month period ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31, 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		(22,896	)		15,332			7,564			(19,239	)		15,692			3,547			—
Transfer to lifetime expected credit losses		9,577			(11,905	)		2,328			6,219			(8,650	)		2,431			—
Transfer to credit-impaired financial assets		2,056			17,185			(19,241	)		934			11,212			(12,146	)		—
Net reversal(provision) of allowance for credit losses		7,454			(28,329	)		(24,265	)		7,069			(82,050	)		3,598			—
Recovery		—			—			(18,087	)		—			—			(22,993	)		—
Charge-off		—			—			32,053			—			—			41,799			—
Disposal		—			—			76			—			—			13,018			—
Interest income from impaired loans		—			—			3,114			—			—			2,395			—
Others		(447	)		133			2,598			(8,649	)		2,129			5,572			—

Ending balance		(140,776	)		(105,188	)		(220,477	)		(376,432	)		(638,407	)		(214,012	)		—


	For the three-month period ended March 31, 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		(19,587	)		19,569			18			(61,722	)		50,593			11,129			—
Transfer to lifetime expected credit losses		7,225			(7,471	)		246			23,021			(28,026	)		5,005			—
Transfer to credit-impaired financial assets		599			17,069			(17,668	)		3,589			45,466			(49,055	)		—
Net reversal(provision) of allowance for credit losses		10,830			(31,823	)		(21,994	)		25,353			(142,202	)		(42,661	)		—
Recovery		—			—			(14,473	)		—			—			(55,553	)		—
Charge-off		—			—			41,455			—			—			115,307			—
Disposal		—			—			7,896			—			—			20,990			—
Interest income from impaired loans		—			—			—			—			—			5,509			—
Others		45			—			—			(9,051	)		2,262			8,170			—

Ending balance		(69,702	)		(118,145	)		(75,447	)		(586,910	)		(861,740	)		(509,936	)		—

- 61 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month period ended March 31, 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		(12,878	)		12,405			473			(20,632	)		20,531			101
Transfer to lifetime expected credit losses		16,566			(17,852	)		1,286			7,217			(8,543	)		1,326
Transfer to credit-impaired financial assets		3,189			18,390			(21,579	)		1,287			15,498			(16,785	)
Net reversal(provision) of allowance for credit losses		(12,435	)		(15,786	)		(19,748	)		12,260			(40,624	)		(19,543	)
Recovery		—			—			(17,993	)		—			—			(16,073	)
Charge-off		—			—			41,837			—			—			44,920
Disposal		—			—			4,355			—			—			7,470
Interest income from impaired loans		—			—			3,566			—			—			3,498
Others		(298	)		90			1,669			108			(973	)		(5,795	)

Ending balance		(127,383	)		(87,216	)		(211,827	)		(327,220	)		(536,018	)		(389,625	)


	For the three-month period ended March 31, 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		(16,999	)		16,861			138			(50,509	)		49,797			712
Transfer to lifetime expected credit losses		7,374			(7,633	)		259			31,157			(34,028	)		2,871
Transfer to credit-impaired financial assets		595			14,388			(14,983	)		5,071			48,276			(53,347	)
Net reversal(provision) of allowance for credit losses		7,316			(25,766	)		(19,974	)		7,141			(82,176	)		(59,265	)
Recovery		—			—			(16,361	)		—			—			(50,427	)
Charge-off		—			—			52,038			—			—			138,795
Disposal		—			—			—			—			—			11,825
Interest income from impaired loans		—			—			—			—			—			7,064
Others		(2	)		—			—			(192	)		(883	)		(4,126	)

Ending balance		(64,428	)		(92,631	)		(104,420	)		(519,031	)		(715,865	)		(705,872	)

- 62 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


	For the three-month period ended March 31, 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		2,922,878			(2,908,817	)		(14,061	)		871,965			(864,982	)		(6,983	)		—
Transfer to lifetime expected credit losses		(3,799,921	)		3,815,133			(15,212	)		(1,394,198	)		1,401,149			(6,951	)		—
Transfer to credit-impaired financial assets		(33,726	)		(80,929	)		114,655			(39,692	)		(81,263	)		120,955			—
Charge-off		—			—			(32,053	)		—			—			(41,799	)		—
Disposal		—			—			(3,356	)		—			—			(39,918	)		—
Net increase(decrease)		169,969			(445,143	)		(26,238	)		2,485,697			(190,919	)		(121,676	)		66,343

Ending balance		134,398,885			13,881,027			523,704			172,719,027			8,722,264			445,360			66,343


	For the three-month period ended March 31, 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		338,060			(338,029	)		(31	)		4,132,903			(4,111,828	)		(21,075	)		—
Transfer to lifetime expected credit losses		(331,972	)		332,320			(348	)		(5,526,091	)		5,548,602			(22,511	)		—
Transfer to credit-impaired financial assets		(9,745	)		(48,486	)		58,231			(83,163	)		(210,678	)		293,841			—
Charge-off		—			—			(41,455	)		—			—			(115,307	)		—
Disposal		—			—			(17,082	)		—			—			(60,356	)		—
Net increase(decrease)		39,780			(40,595	)		4,331			2,695,446			(676,657	)		(143,583	)		66,343

Ending balance		8,275,426			1,300,349			119,722			315,393,338			23,903,640			1,088,785			66,343

- 63 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month period ended March 31, 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		2,872,732			(2,867,562	)		(5,170	)		755,089			(754,608	)		(481	)
Transfer to lifetime expected credit losses		(4,120,438	)		4,139,532			(19,094	)		(1,255,079	)		1,258,930			(3,851	)
Transfer to credit-impaired financial assets		(27,097	)		(79,943	)		107,040			(38,465	)		(95,028	)		133,493
Charge-off		—			—			(41,837	)		—			—			(44,920	)
Disposal		—			—			(14,500	)		—			—			(41,523	)
Net increase(decrease)		3,763,717			(609,902	)		(23,295	)		(1,966,948	)		(273,327	)		(83,400	)

Ending balance		128,478,952			12,598,836			540,250			147,069,529			7,464,708			677,227


	For the three-month period ended March 31, 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		246,052			(245,887	)		(165	)		3,873,873			(3,868,057	)		(5,816	)
Transfer to lifetime expected credit losses		(419,090	)		419,451			(361	)		(5,794,607	)		5,817,913			(23,306	)
Transfer to credit-impaired financial assets		(9,781	)		(42,185	)		51,966			(75,343	)		(217,156	)		292,499
Charge-off		—			—			(52,038	)		—			—			(138,795	)
Disposal		—			—			—			—			—			(56,023	)
Net increase(decrease)		485,267			(63,478	)		(918	)		2,282,036			(946,707	)		(107,613	)

Ending balance		7,581,423			1,146,121			178,558			283,129,904			21,209,665			1,396,035

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


	March 31, 2022			December 31, 2021
Cash Management Account asset (CMA asset)		80,000			140,000
Receivables		7,918,685			6,852,139
Accrued income		1,211,336			1,049,857
Telex and telephone subscription rights and refundable deposits		854,606			870,707
Domestic exchange settlement debit		371,915			82,555
Other assets		285,439			290,746
Allowance for credit losses		(69,501	)		(66,781	)

Total		10,652,480			9,219,223

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


	For the three-month period ended March 31, 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		(136	)		126			10			—
Transfer to lifetime expected credit losses		156			(177	)		21			—
Transfer to credit-impaired financial assets		112			937			(1,049	)		—
Reversal(Provision) of allowance for credit losses		(33	)		(3,381	)		271			(3,143	)
Charge-off		—			—			405			405
Disposal		—			—			194			194
Others		313			(1	)		(488	)		(176	)

Ending balance		(3,263	)		(8,076	)		(58,162	)		(69,501	)


	For the three-month period ended March 31, 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		(128	)		122			6			—
Transfer to lifetime expected credit losses		201			(213	)		12			—
Transfer to credit-impaired financial assets		167			774			(941	)		—
Provision of allowance for credit losses		355			(871	)		172			(344	)
Charge-off		—			—			477			477
Disposal		—			—			229			229
Others		(1,596	)		(1	)		1,487			(110	)

Ending balance		(4,667	)		(5,639	)		(72,737	)		(83,043	)

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


	For the three-month period ended March 31, 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		6,212			(6,202	)		(10	)		—
Transfer to lifetime expected credit losses		(36,288	)		36,315			(27	)		—
Transfer to credit-impaired financial assets		(1,460	)		(3,502	)		4,962			—
Charge-off		—			—			(405	)		(405	)
Disposal		—			—			(227	)		(227	)
Net increase		1,487,173			(28,083	)		(22,481	)		1,436,609

Ending balance		10,460,176			105,125			156,680			10,721,981


	For the three-month period ended March 31, 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		5,480			(5,471	)		(9	)		—
Transfer to lifetime expected credit losses		(10,549	)		10,564			(15	)		—
Transfer to credit-impaired financial assets		(4,366	)		(2,195	)		6,561			—
Charge-off		—			—			(477	)		(477	)
Disposal		—			—			(313	)		(313	)
Net increase		5,824,630			(41,005	)		(52,608	)		5,731,017

Ending balance		13,082,621			38,311			141,326			13,262,258

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 MARCH 31, 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):


	March 31, 2022
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		50,581		—		—		50,581
Debt securities		1,174,269		1,671,978		1,206		2,847,453
Equity securities		27,205		—		327,049		354,254
Capital contributions		—		—		1,529,055		1,529,055
Beneficiary certificates		207,739		2,273,373		1,239,481		3,720,593
Loans		—		753,245		182,391		935,636
Derivative assets (Designated for trading)		32,803		5,884,302		61,564		5,978,669
Others		—		—		106,981		106,981

Sub-total		1,492,597		10,582,898		3,447,727		15,523,222

Financial assets at FVTOCI
Debt securities		6,848,000		32,577,384		—		39,425,384
Equity securities		425,218		—		542,818		968,036

Sub-total		7,273,218		32,577,384		542,818		40,393,420

Derivative assets (Designated for hedging)		—		62,765		—		62,765

Total		8,765,815		43,223,047		3,990,545		55,979,407

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		50,316		—		—		50,316
Derivative liabilities (Designated for trading)		12,028		6,391,243		3,574		6,406,845
Securities sold		307,859		9,895		—		317,754

Sub-total		370,203		6,401,138		3,574		6,774,915

Derivative liabilities (Designated for hedging)		—		74,634		—		74,634

Total		370,203		6,475,772		3,574		6,849,549

(*)	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 MARCH 31, 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 March 31, 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 March 31, 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, 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
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, LSMC, etc.	Stock prices, volatility of underlying assets, etc.

- 69 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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	28.78%	Variation of fair value increases as volatility of underlying asset increases.
	LSMC		Stock prices, Volatility of underlying asset	24.60%	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	20.12%~60.50%	Variation of fair value increases as volatility of underlying assets increases.
		Equity related	Correlation coefficient	0.14~0.76	Variation of fair value increases as correlation coefficient increases.
	DCF model	Interest rate related	Credit risk adjustment ratio	100.00%	Variation of 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	20.12%~60.50%	Variation of fair value increases as volatility of underlying assets increases.
		Equity related	Correlation coefficient	0.14~0.76	Variation of fair value increases as correlation coefficient increases.
Equity securities, capital contributions, and beneficiary certificates	Income approach		Discount rate	5.27%~36.73%	Fair value increases as discount rate decreases.
			Terminal growth rate and others	0.00%~1.00%	Fair value increases as terminal growth rate increases.
	DCF model and others		Terminal growth rate	1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	0.00%	Variation of liquidation value increases as volatility of underlying assets increases
RCPS	LSMC		Stock prices, Volatility of underlying asset	19.36%~33.48%	Variation of fair value increases as volatility of underlying asset increases.
	Income approach		Discount rate	20.59%	Fair value increases as discount rate decreases.
			Terminal growth rate	1.00%	Fair value increases as 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 MARCH 31, 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 three-month period ended March 31, 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		89		—			—			—			(1,000	)		1,206
Equity securities		303,985		395		—			31,868			(9,199	)		—			327,049
Capital contributions		1,287,723		71,682		—			219,163			(49,513	)		—			1,529,055
Beneficiary certificates		1,104,074		17,094		—			163,442			(45,129	)		—			1,239,481
Loans		213,635		3,777		—			112,411			(147,432	)		—			182,391
Derivative assets		29,348		32,208		—			493			(485	)		—			61,564
Others		96,191		4,096		—			6,857			(1,163	)		1,000			106,981

Sub-total		3,037,073		129,341		—			534,234			(252,921	)		—			3,447,727

Financial assets at FVTOCI
Equity securities		581,455		—		(12,511	)		141			(26,267	)		—			542,818

Total		3,618,528		129,341		(12,511	)		534,375			(279,188	)		—			3,990,545

Financial liabilities:
Derivative liabilities		4,641		2,402		—			(641	)		(2,828	)		—			3,574

Total		4,641		2,402		—			(641	)		(2,828	)		—			3,574

(*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 103,979 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.

- 71 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month period ended March 31, 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		(460	)		—			—			—			—		4,158
Equity securities		450,371		13,895			—			3,240			(23,852	)		—		443,654
Capital contributions		865,685		6,383			—			96,735			(102,571	)		—		866,232
Beneficiary certificates		1,917,811		9,590			—			37,243			(26,232	)		—		1,938,412
Loans		209,062		3,698			—			134,553			(60,102	)		—		287,211
Derivative assets		7,872		234			—			508			(3,049	)		—		5,565
Others		84,979		5,560			—			1,000			(1,508	)		—		90,031

Sub-total		3,540,398		38,900			—			273,279			(217,314	)		—		3,635,263

Financial assets at FVTOCI
Equity securities		570,715		—			(7,120	)		121			—			—		563,716

Total		4,111,113		38,900			(7,120	)		273,400			(217,314	)		—		4,198,979

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		20,136		12,749			—			(2,525	)		(9,997	)		—		20,363
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		19,630		(962	)		—			—			(14,713	)		—		3,955

Total		39,766		11,787			—			(2,525	)		(24,710	)		—		24,318

(*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 23,545 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 MARCH 31, 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 3,994,120 million Won and 3,623,168 million Won as of March 31, 2022 and December 31, 2021 respectively, equity instruments of 2,827,719 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 March 31, 2022 and December 31, 2021 is as follows (Unit: Korean Won in millions):


	March 31, 2022
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		2,114		(1,694	)		—		—
Loans (*2)		387		(382	)		—		—
Debt securities		15		(15	)		—		—
Equity securities (2) (3) (*4)		6,131		(5,124	)		—		—
Beneficiary certificates (*4)		1,492		(1,357	)		—		—
Others (*2)		1,682		(1,648	)		—		—
Financial assets at FVTOCI
Equity securities (3) (4)		—		—			34,332		(26,472	)

Total		11,821		(10,220	)		34,332		(26,472	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		161		(154	)		—		—

Total		161		(154	)		—		—

(*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%.

- 73 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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)

- 74 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,216,420		15,667,862		—		17,884,282		18,287,488
Loans and other financial assets at amortized cost		—		7,739,045		358,510,179		366,249,224		370,119,308
Financial liabilities:
Deposits due to customers		—		323,373,949		—		323,373,949		323,491,921
Borrowings		—		25,183,882		1,290,357		26,474,239		26,668,312
Debentures		—		44,585,011		—		44,585,011		45,208,829
Other financial liabilities		—		30,425,202		927,628		31,352,830		31,677,845


	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

- 75 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Deposits		50,581		—		20,973,308		—		21,023,889
Securities		8,556,818		40,393,420		18,287,488		—		67,237,726
Loans		935,636		—		338,493,520		—		339,429,156
Derivative assets		5,978,669		—		—		62,765		6,041,434
Other financial assets		1,518		—		10,652,480		—		10,653,998

Total		15,523,222		40,393,420		388,406,796		62,765		444,386,203


	March 31, 2022
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Deposits due to customers		50,316		323,491,921		—		323,542,237
Borrowings		317,753		26,668,312		—		26,986,065
Debentures		—		45,208,829		—		45,208,829
Derivative liabilities		6,406,846		—		74,634		6,481,480
Other financial liabilities		—		31,677,845		—		31,677,845

Total		6,774,915		427,046,907		74,634		433,896,456


	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

- 76 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month periods ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31, 2022
	Interest income(expense)			Fees and commissions income		Provision of credit loss			Gain(loss) on valuation and transactions		Dividends, etc.		Total
Financial assets at FVTPL		16,673			236		—			115,386		32,447		164,742
Financial assets at FVTOCI		141,591			408		(719	)		271		14,576		156,127
Securities at amortized cost		88,964			—		(283	)		—		—		88,681
Loans and other financial assets at amortized cost		2,693,530			133,378		(164,537	)		48,068		—		2,710,439
Financial liabilities at amortized cost		(951,322	)		558		—			—		—		(950,764	)
Net derivatives (designated for hedging)		—			—		—			11,117		—		11,117

Total		1,989,436			134,580		(165,539	)		174,842		47,023		2,180,342


	For the three-month period ended March 31, 2021
	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		11,375			—		—			82,083		53,318		146,776
Financial assets at FVTOCI		91,786			403		(1,018	)		37,011		13,272		141,454
Securities at amortized cost		82,243			—		187			—		—		82,430
Loans and other financial assets at amortized cost		2,141,782			112,710		(137,209	)		34,676		—		2,151,959
Financial liabilities at amortized cost		(705,558	)		—		—			—		—		(705,558	)
Net derivatives (designated for hedging)		—			—		—			34,263		—		34,263

Total		1,621,628			113,113		(138,040	)		188,033		66,590		1,851,324

- 77 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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	March 31, 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		2022.2.28(*5)
Korea Credit Bureau Co., Ltd. (*2)	Credit information	9.9		9.9	Korea		2022.3.31
Korea Finance Security Co., Ltd. (*1)	Security service	15.0		15.0	Korea		2022.2.28(*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)	Other services	35.4		35.4	Korea		—
Cultizm Korea LTD Co., Ltd. (*3)	Wholesale and retail sales	31.3		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		2022.3.31
2016KIF-IMM Woori Bank Technology Venture Fund	Other financial services	20.0		20.0	Korea		2022.3.31
K BANK Co., Ltd. (*2)	Finance	12.6		12.6	Korea		2022.2.28(*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		2022.3.31
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership	Other financial services	20.0		20.0	Korea		2022.3.31
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund	Other financial services	25.0		25.0	Korea		2022.3.31
LOTTE CARD Co., Ltd.	Credit card and installment financing	20.0		20.0	Korea		2021.12.31(*5)
Together-Korea Government Private Pool Private Securities Investment Trust No.3	Other financial services	100.0		100.0	Korea		2022.3.31
Genesis Environmental Energy Company 1st Private Equity Fund(*8)	Trust and collective investment	—		24.8	Korea		2022.3.31
Union Technology Finance Investment Association	Trust and collective investment	29.7		29.7	Korea		2022.3.31
Dicustody Co., Ltd.(*2)	Other information technology and computer operation related services	1.0		1.0	Korea		2022.3.31
Woori Bank (*6)
Japanese Hotel Real Estate Private Equity Fund 2	Other financial services	19.9		19.9	Korea		2022.3.31
Woori Seoul Beltway Private Special Asset Fund No.1	Trust and collective investment	25.0		25.0	Korea		2022.3.31
Woori Multi-Return Securities Investment Trust 3 (Balanced Bond)	Collective investment business	20.0		20.0	Korea		2022.3.31

- 78 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


		Percentage of ownership (%)
Joint ventures and associates	Main business	March 31, 2022	December 31, 2021		Location	Financial statements as of
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F	Collective investment business	20.6		14.5	Korea		2022.3.31
Woori Safe Plus General Type Private Investment Trust S-8(Bond)	Collective investment business	9.1		—	Korea		2022.3.31
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1(*10)	Collective investment business	23.3		—	Korea		2022.3.31
Woori Financial Capital Co., Ltd.
WOORI TAERIM 1st Fund	Other financial services	25.6		25.6	Korea		2022.3.31
Portone-Cape Fund No.1	Other financial services	20.0		20.0	Korea		2022.3.31
KIWOOM WOORI Financial 1st Fund (*7)	Other financial services	9.1		9.1	Korea		2022.3.31
DeepDive WOORI 2021-1 Financial Investment Fund (*7)	Other financial services	11.9		11.9	Korea		2022.3.31
Darwin Green Packaging Private Equity Fund	Other financial services	20.4		20.4	Korea		2022.3.31
DS Power Semicon Private Equity Fund	Other financial services	21.0		—	Korea		2022.3.31
Woori Investment Bank Co., Ltd. (*6)
Woori FirstValue Private Real Estate Fund No.2	Real estate business	12.0		12.0	Korea		2022.3.31
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust	Investment trust and discretionary investment business	0.1		0.3	Korea		2022.3.31
Woori Asset Management Co., Ltd.
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)	Collective investment business	24.4		—	Korea		2022.3.31
Woori Together TDF 2025	Collective investment business	27.7		—	Korea		2022.3.31
Woori Together TDF 2030	Collective investment business	26.1		—	Korea		2022.3.31
Woori Private Equity Asset Management Co., Ltd.
Woori Hanhwa Eureka Private Equity Fund (*2)	Other financial services	0.8		0.8	Korea		2022.3.31
Aarden Woori Apparel 1st Private Equity Fund (*2)	Other financial services	0.5		0.5	Korea		2022.3.31
Woori Dyno 1st Private Equity Fund (*2)	Other financial services	19.6		—	Korea		2022.3.31
Japanese Hotel Real Estate Private Equity Fund 1
Godo Kaisha Oceanos 1	Other financial services	47.8		47.8	Japan		2022.1.31(*5)
Woori G Japan Private Placement Real Estate Master Investment Trust No.2
Woori Zip 1	Other financial services	63.9		63.9	Japan		2021.12.31(*5)
Woori Zip 2	Other financial services	63.8		63.8	Japan		2021.12.31(*5)

- 79 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


		Percentage of ownership (%)
Joint ventures and associates	Main business	March 31, 2022	December 31, 2021		Location	Financial statements as of
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)	Manufacturing	48.4		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)	Complex transportation brokerage	49.8		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		2021.12.31 (*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		2021.12.31 (*5)
Jinmyung Plus Co., Ltd	Manufacturing	21.3		21.3	Korea		2021.12.31 (*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		2022.3.31
Dream Company Growth no.1 PEF	Collective investment business	27.8		27.8	Korea		2022.3.31
HMS-Oriens 1st Fund	Trust and collective investment	22.8		22.8	Korea		2022.3.31
Woori G Senior Loan Private Placement Investment Trust No.1	Investment trust and discretionary investment business	21.7		21.7	Korea		2022.3.31
Genesis Eco No.1 Private Equity Fund	Other financial services	29.0		29.0	Korea		2022.3.31
Paratus Woori Materials, Parts, Equipments Private Equity Fund	Other financial services	29.9		29.9	Korea		2022.3.31
Midas No. 8 Private Equity Joint Venture Company	Other financial services	28.5		28.5	Korea		2022.3.31
Orchestra Private Equity Fund IV	Other financial services	28.2		—	Korea		2022.3.31
Synaptic Green No.1 PEF	Other financial services	21.1		—	Korea		2022.3.31
Woori Bank and Woori Investment Bank Co., Ltd. (*6)
PCC-Woori LP Secondary Fund	Other financial services	38.8		38.8	Korea		2022.3.31
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		2022.3.31
Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6)

- 80 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Percentage of ownership (%)

Joint ventures and associates

Main business

March 31,
2022

December 31,
2021

Location

Financial
statements as of

Woori-Q Corporate Restructuring Private Equity Fund

Trust and collective investment

35.5

38.1

Korea

2022.3.31

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

2022.3.31

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

(*4)	WooriG Oncorp Corporate support of Major Industry General Type Private Placement Investment Trust (Type 2) and other 17 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 General Partner.

- 81 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month period ended March 31, 2022
	Acquisition cost		January 1, 2021		Share of profits(losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			March 31, 2022
W Service Networks Co., Ltd.		108		183		(46	)		—		—			—			—			137
Korea Credit Bureau Co., Ltd.		3,313		9,423		(4,745	)		—		—			—			—			4,678
Korea Finance Security Co., Ltd.		3,267		3,101		(171	)		—		—			—			—			2,930
Woori Growth Partnerships New Technology Private Equity Fund		14,991		12,448		(47	)		—		—			—			—			12,401
2016KIF-IMM Woori Bank Technology Venture Fund		8,056		12,630		(416	)		—		(340	)		(616	)		—			11,258
K BANK Co., Ltd.		236,232		239,493		2,218			—		—			—			(936	)		240,775
Woori Bank-Company K Korea Movie Asset Fund		—		345		—			—		—			—			—			345
Partner One Value Up I Private Equity Fund		5,039		6,576		(1,329	)		—		—			—			—			5,247
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		9,736		11,153		101			—		—			—			—			11,254
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,255		4,254		—			—		—			—			—			4,254
LOTTE CARD Co.,Ltd.		346,810		458,295		6,653			—		—			(12,960	)		1,764			453,752
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,070		27			—		—			—			—			10,097
Genesis Environmental Energy Company 1st Private Equity Fund		—		4,126		(41	)		—		(3,738	)		(347	)		—			—
Union Technology Finance Investment Association		15,000		12,388		(88	)		2,250		—			—			—			14,550
Dicustody Co., Ltd.		1		1		—			—		—			—			—			1
Japanese Hotel Real Estate Private Equity Fund 2		3,291		3,196		110			—		—			(72	)		(160	)		3,074
Woori Seoul Beltway Private Special Asset Fund		8,198		7,551		44			687		—			(40	)		—			8,242
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		10,000		10,023		64			—		—			—			—			10,087
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		170,000		151,822		477			20,000		—			(1,972	)		—			170,327
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		10,000		—		74			10,000		—			(48	)		—			10,026
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		(5	)		—		—			—			—			968
DeepDive WOORI 2021-1 Financial Investment Fund		1,000		993		(5	)		—		—			—			—			988
Darwin Green Packaging Private Equity Fund		4,000		3,957		(18	)		—		—			—			—			3,939
DS Power Semicon Private Equity Fund		3,000		—		(27	)		3,000		—			—			—			2,973
Woori FirstValue Private Real Estate Fund No.2		9,000		763		—			—		—			—			—			763

- 82 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month period ended March 31, 2022
	Acquisition cost		January 1, 2021		Share of profits(losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			March 31, 2022
Woori High plus G.B. Securities Feeder Fund1(G.B.)		100		100		—			—		—			—			—			100
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		1,200		—		(49	)		—		—			—			1,235			1,186
Woori Together TDF 2025		2,000		—		3			—		—			—			2,193			2,196
Woori Together TDF 2030		2,000		—		17			—		—			—			2,247			2,264
Woori Hanhwa Eureka Private Equity Fund		86		327		(32	)		—		(102	)		—			—			193
Aarden Woori Apparel 1st Private Equity Fund		100		99		—			—		—			—			—			99
Woori Dyno 1st Private Equity Fund		2,000		—		(3	)		2,000		—			—			—			1,997
Godo Kaisha Oceanos 1		10,800		9,905		15			—		—			(128	)		(46	)		9,746
Woori Zip 1		10,143		10,496		12			—		—			—			(382	)		10,126
Woori Zip 2		14,254		14,732		(15	)		—		—			—			(536	)		14,181
Force TEC Co., Ltd. (*)		—		—		(16	)		—		—			—			16			—
KUM HWA Co., Ltd. (*)		—		—		—			—		—			—			—			—
Jinmyung Plus Co., Ltd		—		—		25			—		—			—			—			25
JC Assurance No.2 Private Equity Fund		29,349		17,728		(17,728	)		—		—			—			—			—
Dream Company Growth no.1 PEF		7,706		7,914		(12	)		—		—			—			—			7,902
HMS-Oriens 1st Fund		12,000		12,007		624			—		—			—			—			12,631
Woori G Senior Loan No.1		81,792		88,029		966			14,073		(19,888	)		(857	)		—			82,323
Genesis Eco No.1 Private Equity Fund		11,805		11,120		42			—		—			—			—			11,162
Paratus Woori Materials, Parts, Equipments Private Equity Fund		17,700		17,493		(58	)		—		—			—			—			17,435
Midas No. 8 Private Equity Joint Venture Company		19,000		18,968		(65	)		—		—			—			—			18,903
Orchestra Private Equity Fund IV		10,000		—		(186	)		10,000		—			—			—			9,814
Synaptic Green No.1 PEF		8,000		—		(3	)		8,000		—			—			—			7,997
PCC-Woori LP Secondary Fund		10,100		12,350		144			—		—			—			—			12,494
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		50,000		73,787		(3,091	)		—		(21,606	)		(190	)		—			48,900
Woori-Q Corporate Restructuring Private Equity Fund		26,528		46,155		3,599			—		(21,161	)		—			—			28,593
Woori-Shinyoung Growth-Cap Private Equity Fund I		17,018		28,713		(125	)		—		—			—			—			28,588

		1,221,418		1,335,167		(13,129	)		70,010		(66,835	)		(17,230	)		5,395			1,313,378

(*)	As a result of discontinuation of the equity method, related companies’ losses amount not recognized is 60 million Won for Force TEC Co., Ltd. and 2 million Won for KUM HWA Co., Ltd. and cumulated amount is 857 million Won for Force TEC Co., Ltd. and 4 million Won for KUM HWA Co., Ltd..

- 83 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month period ended March 31, 2021
	Acquisition cost		January 1, 2021		Share of profits(losses)			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			March 31, 2021
W Service Networks Co., Ltd.		108		191		(41	)		—		—			—			—			150
Korea Credit Bureau Co., Ltd.		3,313		8,125		(294	)		—		—			(90	)		—			7,741
Korea Finance Security Co., Ltd.		3,267		3,066		(26	)		—		—			—			—			3,040
Woori Growth Partnerships New Technology Private Equity Fund		16,371		15,032		(164	)		—		(567	)		—			(7	)		14,294
2016KIF-IMM Woori Bank Technology Venture Fund		11,060		13,238		(48	)		—		(833	)		—			—			12,357
K BANK Co., Ltd.		236,232		174,097		(8,268	)		—		—			—			210			166,039
Smart Private Equity Fund No.2		2,915		1,481		(805	)		—		—			—			—			676
Woori Bank-Company K Korea Movie Asset Fund		600		2,788		59			—		(1,500	)		—			—			1,347
Partner One Value Up I Private Equity Fund		10,000		9,816		(22	)		—		—			—			(16	)		9,778
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		9,756		9,756		—			—		—			—			—			9,756
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,129		4,129		—			—		—			—			—			4,129
LOTTE CARD Co.,Ltd		346,810		422,832		3,101			—		—			(10,374	)		1,414			416,973
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,023		9			—		—			—			—			10,032
Genesis Environmental Energy Company 1st Private Equity Fund		3,738		3,979		(15	)		—		—			—			—			3,964
Union Technology Finance Investment Association		7,500		4,485		(88	)		3,000		—			—			—			7,397
Japanese Hotel Real Estate Private Equity Fund 2		3,291		3,234		39			—		—			(63	)		(80	)		3,130
Woori G Clean Energy No.1		2,477		1,024		59			1,463		—			—			—			2,546
Woori Goseong Power EBL Private Special Asset Fund		14,915		15,118		122			—		—			(125	)		—			15,115
Woori Seoul Beltway Private Special Asset Fund		6,273		5,613		25			682		—			(22	)		—			6,298
Woori Corporate Private Securities Fund 1(Bond)		10,000		—		(22	)		10,000		—			—			—			9,978
Woori G Star Private Placement Investment Trust No.33 [FI]		20,000		—		94			20,000		—			—			—			20,094
AJU TAERIM 1st Fund		1,100		283		(5	)		—		—			—			—			278
Portone-Cape Fund No.1		340		960		(21	)		—		(660	)		—			—			279
KIWOOM PE AJU Investment Fund		1,000		994		(5	)		—		—			—			—			989
Woori FirstValue Private Real Estate Fund No.2		9,000		2,130		(636	)		—		—			—			—			1,494
Woori High plus G.B. Securities Feeder Fund1(G.B.)		6,000		6,076		(9	)		—		—			—			—			6,067
Woori Star50 Master Fund ClassC-F		200		184		(13	)		—		—			—			—			171
Uri Hanhwa Eureka Private Equity Fund		350		403		(1	)		—		—			—			—			402
Godo Kaisha Oceanos 1		10,800		10,193		(27	)		—		—			(271	)		(25	)		9,870
Force TEC Co., Ltd.		—		393		(169	)		—		—			—			154			378
KUM HWA Co., Ltd.		—		—		—			—		—			—			—			—

- 84 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	For the three-month period ended March 31, 2021
	Acquisition cost		January 1, 2021		Share of profits(losses)			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			March 31, 2021
JC Assurance No.2 Private Equity Fund		29,050		29,050		(217	)		—		—			—			—			28,833
Dream Company Growth no.1 PEF		8,000		7,705		248			—		—			—			—			7,953
HMS-Oriens 1st Fund		12,000		12,000		7			—		—			—			—			12,007
Woori G Senior Loan No.1		64,950		52,045		614			12,991		—			(455	)		—			65,195
Genesis Eco No.1 Private Equity Fund		8,400		—		(622	)		8,400		—			—			—			7,778
PCC-Woori LP Secondary Fund		7,575		8,128		116			—		—			—			—			8,244
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		110,221		93,474		357			20,000		—			(2,504	)		—			111,327
Woori-Q Corporate Restructuring Private Equity Fund		23,146		22,904		1,236			—		—			—			—			24,140
Woori-Shinyoung Growth-Cap Private Equity Fund I		32,480		38,342		(159	)		—		—			—			(97	)		38,086

		1,047,367		993,291		(5,591	)		76,536		(3,560	)		(13,904	)		1,553			1,048,325

- 85 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)			Total comprehensive income(loss)
W Service Networks Co., Ltd.		5,433		2,660		3,138		(310	)		—			(310	)
Korea Credit Bureau Co., Ltd.		127,818		83,117		33,699		3,409			—			3,409
Korea Finance Security Co., Ltd.		30,075		10,542		9,436		(150	)		—			(150	)
Woori Growth Partnerships New Technology Private Equity Fund		53,938		201		—		(205	)		—			(205	)
2016KIF-IMM Woori Bank Technology Venture Fund		56,415		127		2		(1,832	)		—			(1,832	)
K BANK Co., Ltd.		13,860,912		12,119,718		67,656		14,443			(11,305	)		3,138
Woori Bank-Company K Korea Movie Asset Fund		1,383		2		1,075		543			—			543
Partner One Value Up I Private Equity Fund		22,570		7		—		(5,663	)		—			(5,663	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		57,029		761		709		502			—			502
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,704		98		—		(93	)		—			(93	)
LOTTE CARD Co.,Ltd (*)		16,964,859		14,400,719		2,009,633		219,766			34,431			254,197
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,099		1		69		64			—			64
Union Technology Finance Investment Association		49,275		290		6		(296	)		—			(296	)
Dicustody Co., Ltd.		98		—		—		—			—			—
Japanese Hotel Real Estate Private Equity Fund 2		15,490		13		350		336			(585	)		(249	)
Woori Seoul Beltway Private Special Asset Fund No.1		32,970		1		41		39			—			39
Woori Multi-Return Securities Investment Trust 3 (Balanced Bond)		93,063		42,629		512		320			—			320
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		930,473		102,316		3,777		3,330			—			3,330
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		110,242		9		332		302			—			302
WOORI TAERIM 1st Fund		4,047		185		—		(13	)		—			(13	)
Portone-Cape Fund No.1		2,347		—		—		(100	)		—			(100	)
KIWOOM WOORI Financial 1st Investment Fund		10,708		54		—		(54	)		—			(54	)
DeepDive WOORI 2021-1 Financial Investment Fund		8,300		—		—		(40	)		—			(40	)
Darwin Green Packaging Private Equity Fund		19,315		13		—		(86	)		—			(86	)
DS Power Semicon Private Equity Fund		14,211		40		—		(128	)		—			(128	)
Woori FirstValue Private Real Estate Fund No.2		69,670		63,309		—		(2	)		—			(2	)
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust		60,344		29		228		140			—			140
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		5,018		163		146		(152	)		—			(152	)
Woori Together TDF 2025		8,467		526		159		(295	)		—			(295	)
Woori Together TDF 2030		8,800		149		169		(287	)		—			(287	)
Woori Hanhwa Eureka Private Equity Fund		24,023		22		4		(19	)		—			(19	)
Aarden Woori Apparel 1st Private Equity Fund		20,987		91		1		(89	)		—			(89	)
Woori Dyno 1st Private Equity Fund		10,200		15		—		(15	)		—			(15	)
Godo Kaisha Oceanos 1		65,694		45,307		775		30			—			30
Woori Zip 1		50,382		34,554		575		19			—			19
Woori Zip 2		71,262		49,020		778		(23	)		—			(23	)
Force TEC Co., Ltd.		12,979		24,339		29,767		(9,009	)		(8,480	)		(17,489	)
KUM HWA Co., Ltd.		10		157		58		(1	)		—			(1	)
Jinmyung Plus Co.,Ltd.		568		445		209		5			—			5
JC Assurance No.2 Private Equity Fund		122,123		—		—		(299	)		—			(299	)

- 86 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	March 31, 2022
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)		Total comprehensive income(loss)
Dream Company Growth no.1 PEF		28,489		43		—		(43	)		—		(43	)
HMS-Oriens 1st Fund		55,370		3		689		556			—		556
Woori G Senior Loan Private Placement Investment Trust No.1		380,276		24		4,739		4,462			—		4,462
Genesis Eco No.1 Private Equity Fund		38,511		2		47		(109	)		—		(109	)
Paratus Woori Materials, Parts, Equipments Private Equity Fund		58,510		196		4		(192	)		—		(192	)
Midas No. 8 Private Equity Joint Venture Company		66,597		236		9		(226	)		—		(226	)
Orchestra Private Equity Fund IV		35,000		160		1		(288	)		—		(288	)
Synaptic Green No.1 PEF		37,987		—		—		(13	)		—		(13	)
PCC-Woori LP Secondary Fund		32,167		3		59		(107	)		—		(107	)
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		209,438		—		1,132		(650	)		—		(650	)
Woori-Q Corporate Restructuring Private Equity Fund		80,996		500		3,019		1,641			—		1,641
Woori-Shinyoung Growth-Cap Private Equity Fund I		81,774		310		3		(307	)		—		(307	)

(*)	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.

- 87 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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	)
WooriG 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	)

- 88 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 March 31, 2022 and December 31, 2021 are as follows:


	March 31, 2022
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
BK Family CO., Ltd.		4,118		34.3
Choongang Network Solution Co., Ltd.		90,006		25.7

(*)	Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.


	December 31, 2021
Associate (*)	Number of shares owned		Ownership (%)
Orient Shipyard Co., Ltd.		464,812		21.4
Yuil PESC Co., Ltd.		8,642		24.0
CL Tech Co., Ltd.		13,759		38.6
S.WIN Co., Ltd.		20,301		20.0

(*)	Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.

(5)	As of March 31, 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):


	March 31, 2022
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
W Service Networks Co., Ltd.		2,773		4.9		137		—		—		—		137
Korea Credit Bureau Co., Ltd.		44,701		9.9		4,432		246		—		—		4,678
Korea Finance Security Co., Ltd.		19,533		15.0		2,930		—		—		—		2,930
Woori Growth Partnerships New Technology Private Equity Fund		53,737		23.1		12,401		—		—		—		12,401
2016KIF-IMM Woori Bank Technology Venture Fund		56,288		20.0		11,258		—		—		—		11,258
K BANK Co., Ltd. (*)		1,740,504		12.6		218,881		21,894		—		—		240,775
Woori Bank-Company K Korea Movie Asset Fund		1,381		25.0		345		—		—		—		345
Partner One Value Up Ist Private Equity Fund		22,563		23.3		5,247		—		—		—		5,247
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		56,268		20.0		11,254		—		—		—		11,254
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,606		25.0		3,901		—		—		353		4,254
LOTTE CARD Co., Ltd (*)		2,268,759		20.0		453,752		—		—		—		453,752
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,098		100		10,097		—		—		—		10,097
Union Technology Finance Investment Association		48,985		29.7		14,550		—		—		—		14,550
Dicustody Co., Ltd.		98		1.0		1		—		—		—		1

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	March 31, 2022
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment			Intercompany transaction		Book value
Japanese Hotel Real Estate Private Equity Fund No.2		15,477			19.9		3,074			—		—			—		3,074
Woori Seoul Beltway Private Special Asset Fund No.1		32,969			25.0		8,242			—		—			—		8,242
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		50,434			20.0		10,087			—		—			—		10,087
Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F		828,157			20.6		170,327			—		—			—		170,327
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		110,233			9.1		10,026			—		—			—		10,026
WOORI TAERIM 1st Fund		3,862			25.6		988			—		—			—		988
Portone-Cape Fund No.1		2,347			20.0		469			—		—			—		469
KIWOOM WOORI Financial 1st Investment Fund		10,654			9.1		968			—		—			—		968
DeepDive WOORI 2021-1 Financial Investment Fund		8,300			11.9		988			—		—			—		988
Darwin Green Packaging Private Equity Fund		19,302			20.4		3,939			—		—			—		3,939
DS Power Semicon Private Equity Fund		14,171			21.0		2,973			—		—			—		2,973
Woori FirstValue Private Real Estate Fund No.2		6,361			12.0		763			—		—			—		763
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust		60,315			0.1		100			—		—			—		100
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		4,855			24.4		1,186			—		—			—		1,186
Woori Together TDF 2025		7,941			27.7		2,196			—		—			—		2,196
Woori Together TDF 2030		8,651			26.1		2,264			—		—			—		2,264
Woori Hanhwa Eureka Private Equity Fund		24,001			0.8		193			—		—			—		193
Aarden Woori Apparel 1st Private Equity Fund		20,896			0.5		99			—		—			—		99
Woori Dyno 1st Private Equity Fund		10,185			19.6		1,997			—		—			—		1,997
Godo Kaisha Oceanos 1		20,387			47.8		9,746			—		—			—		9,746
Woori Zip 1		15,828			63.9		10,126			—		—			—		10,126
Woori Zip 2		22,242			63.8		14,181			—		—			—		14,181
Force TEC		(11,360	)		24.5		(2,788	)		—		—			2,788		—
KUM HWA Co., Ltd.		(147	)		20.1		(29	)		—		—			29		—
Jinmyung Plus Co.,Ltd.		123			21.3		25			—		—			—		25
JC Assurance No.2 Private Equity Fund		122,123			24.4		17,728			—		(17,728	)		—		—
Dream Company Growth no.1 PEF		28,446			27.8		7,902			—		—			—		7,902
HMS-Oriens 1st Fund		55,367			22.8		12,631			—		—			—		12,631
WooriG Senior Loan General Type Private Investment Trust No.1		380,252			21.7		82,323			—		—			—		82,323
Genesis Eco No.1 Private Equity Fund		38,509			29.0		11,162			—		—			—		11,162
Paratus Woori Material Component Equipment joint venture company		58,314			29.9		17,435			—		—			—		17,435
Midas No. 8 Private Equity Joint Venture Company		66,361			28.5		18,903			—		—			—		18,903

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)


	March 31, 2022
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
Orchestra Private Equity Fund IV		34,840		28.2		9,814		—		—		—		9,814
Synaptic Green No.1 PEF		37,987		21.1		7,997		—		—		—		7,997
PCC-Woori LP Secondary Fund		32,164		38.8		12,494		—		—		—		12,494
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		209,438		23.3		48,900		—		—		—		48,900
Woori-Q Corporate Restructuring Private Equity Fund		80,496		35.5		28,593		—		—		—		28,593
Woori-Shinyoung Growth-Cap Private Equity Fund I		81,464		35.0		28,588		—		—		—		28,588

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

- 92 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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
WooriG 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

- 93 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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
WooriG 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):


	March 31, 2022			December 31, 2021
Acquisition cost		428,129			415,163
Accumulated depreciation		(29,444	)		(25,582	)
Accumulated impairment losses		(86	)		(86	)

Net carrying value		398,599			389,495

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


	For the three-month period ended March 31
	2022			2021
Beginning balance		389,495			387,464
Disposal		(1,194	)		—
Depreciation		(981	)		(574	)
Transfer		13,479			(3,865	)
Foreign currencies translation adjustments		(2,605	)		(2,329	)
Others		405			(113	)

Ending balance		398,599			380,583

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

14.

PREMISES AND EQUIPMENT

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


	March 31, 2022
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,713,762		741,812		246,885		50,745		4,404		1		2,757,609
Right-of-use asset		—		371,415		17,699		—		—		—		389,114

Carrying value		1,713,762		1,113,227		264,584		50,745		4,404		1		3,146,723


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


	March 31, 2022
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,714,422			1,065,986			1,145,384			473,194			4,404		20			4,403,410
Accumulated depreciation		—			(324,174	)		(898,499	)		(422,449	)		—		(19	)		(1,645,141	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,713,762			741,812			246,885			50,745			4,404		1			2,757,609


	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 MARCH 31, 2022 AND 2021 (UNAUDITED)

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


	For the three-month period ended March 31, 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		—			1,948			12,558			4,293			1,441			—		20,240
Disposals		—						(290	)		(145	)		—			—		(435	)
Depreciation		—			(8,004	)		(24,102	)		(5,193	)		—			—		(37,299	)
Classified as held-for-sale		(946	)		(629	)		—			—			—			—		(1,575	)
Transfer		(4,869	)		(8,610	)		—			—			—			—		(13,479	)
Foreign currencies translation adjustments		252			145			663			379			66			—		1,505
Others		—			(2	)		(305	)		57			(274	)		—		(524	)

Ending balance		1,713,762			741,812			246,885			50,745			4,404			1		2,757,609


	For the three-month period ended March 31, 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		—			2,923			9,291			4,150			2,514			—			18,878
Disposals		—			—			(323	)		(343	)		—			—			(666	)
Depreciation		—			(8,128	)		(23,544	)		(5,432	)		—			(1	)		(37,105	)
Classified as held-for-sale		(465	)		(1,242	)		346			10			(396	)		—			(1,747	)
Transfer		3,649			217			—			—			—			—			3,866
Foreign currencies translation adjustments		153			164			1,042			630			31			—			2,020
Others		3,045			(3,049	)		(603	)		(320	)		(507	)		—			(1,434	)

Ending balance		1,732,427			777,925			254,434			48,780			9,888			1			2,823,455

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


	March 31, 2022
	Building			Equipment and vehicles			Total
Acquisition cost		680,470			30,288			710,758
Accumulated depreciation		(309,055	)		(12,589	)		(321,644	)

Net carrying value		371,415			17,699			389,114


	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 MARCH 31, 2022 AND 2021 (UNAUDITED)

(5)	Details of changes in right-of-use assets for the three-month periods ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31, 2022
	Building			Equipment and vehicles			Total
Beginning balance		367,480			18,064			385,544
New contracts		56,780			2,540			59,320
Changes in contract		802			124			926
Termination		(5,733	)		(351	)		(6,084	)
Depreciation		(55,238	)		(2,700	)		(57,938	)
Others		7,324			22			7,346

Ending balance		371,415			17,699			389,114


	For the three-month period ended March 31, 2021
	Building			Equipment and vehicles			Total
Beginning balance		435,132			12,423			447,555
New contracts		40,218			5,468			45,686
Changes in contract		1,938			33			1,971
Termination		(3,512	)		(489	)		(4,001	)
Depreciation		(61,140	)		(2,790	)		(63,930	)
Others		18,409			(308	)		18,101

Ending balance		431,045			14,337			445,382

15.

INTANGIBLE ASSETS

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


	March 31, 2022
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		348,105		2,112			684,622			1,194,100			40,785			1,110		2,270,834
Accumulated amortization		—		(1,397	)		(475,054	)		(966,908	)		—			—		(1,443,359	)
Accumulated impairment losses		—		—			—			(33,552	)		(3,446	)		—		(36,998	)

Net carrying value		348,105		715			209,568			193,640			37,339			1,110		790,477


	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 MARCH 31, 2022 AND 2021 (UNAUDITED)

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


	For the three-month period ended March 31, 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		—		54			22,674			16,565			319			689			40,301
Disposal		—		—			—			—			(654	)		—			(654	)
Amortization (*)		—		(62	)		(20,811	)		(18,250	)		—			—			(39,123	)
Impairment losses		—		—			—			—			32			—			32
Transfer		—		—			—			278			—			(278	)		—
Foreign currencies translation adjustments		2,656		—			(3	)		600			45			—			3,298
Others		—		—			—			1,265			(10	)		(18	)		1,237

Ending balance		348,105		715			209,568			193,640			37,339			1,110			790,477

(*)

Amortization of other intangible assets amounting to 3,599 million Won is included in other operating expenses.


	For the three-month period ended March 31, 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		—		—			15,000			11,532			1,070			—			27,602
Disposal		—		—			—			—			—			—			—
Amortization (*)		—		(56	)		(20,719	)		(16,604	)		—			—			(37,379	)
Impairment losses		—		—			—			—			(116	)		—			(116	)
Transfer		—		—			3,748			2,921			—			(6,669	)		—
Foreign currencies translation adjustments		2,932		—			—			919			69			—			3,920
Others		—		—			—			735			—			505			1,240

Ending balance		337,222		653			206,902			204,948			37,114			505			787,344

(*) Amortization of other intangible assets amounting to 2,989 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 (*)	March 31, 2022		December 31, 2021
Premises and equipment		9,914		8,900
Investments of associates		1,313		11,472
Others		5,865		5,955

Total		17,092		26,327

(*)

The Group classifies assets as held for sale that are highly likely to be sold within one year from March 31, 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.

During the current period, the Group decided to sell some of its tangible assets through internal decision making process and classified the real estate as non-current assets held for sale. The sale of the asset is expected to be completed within 12 months. In addition, investments in associates are classified as assets held for sale as of March 31, 2022, because they are highly likely to be sold within one year from the end of the current period according to the management’s decision to sell. Meanwhile, as of the end of the current period, buildings and land acquired through an auction that were recognized in other assets are classified as assets held for sale because they are highly likely to be sold within one year.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

17.

OTHER ASSETS

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


	March 31, 2022		December 31, 2021
Lease assets		2,059,544		1,782,887
Prepaid expenses		305,494		189,808
Advance payments		103,291		61,042
Assets for non-business use		16,877		16,248
Others		35,956		38,965
Total		2,521,162		2,088,950

18.

FINANCIAL LIABILITIES AT FVTPL

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


	March 31, 2022		December 31, 2021
Financial instruments at fair value through profit or loss measured at fair value		6,774,915		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):


	March 31, 2022		December 31, 2021
Deposits
Gold banking liabilities		50,316		65,016
Borrowings
Securities sold		317,753		241,174
Derivative liabilities		6,406,846		4,567,268
Total		6,774,915		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 March 31, 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 March 31, 2022 and December 31, 2021.

- 99 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022			December 31, 2021
Deposits in local currency
Deposits on demand		15,038,212			18,029,136
Deposits at termination		258,115,996			254,319,473
Mutual installment		24,278			24,620
Deposits on notes payables		3,554,545			2,954,066
Deposits on CMA		79,136			92,360
Certificate of deposits		4,731,312			3,586,423
Other deposits		1,262,522			1,286,719

Sub-total		282,806,001			280,292,797

Deposits in foreign currencies
Deposits in foreign currencies		40,725,975			37,643,900

Present value discount		(40,055	)		(36,826	)

Total		323,491,921			317,899,871

20.

BORROWINGS AND DEBENTURES

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


	March 31, 2022
	Lenders	Interest rate (%)		Amount
Borrowings in local currency
Borrowings from BOK	BOK		0.3		3,032,351
Borrowings from government funds	Small Enterprise And Market Service and others		0.0 ~ 3.3		2,050,865
Others	The Korea Development Bank and others		0.0 ~ 4.2		10,811,798

Sub-total					15,895,014

Borrowings in foreign currencies
Borrowings in foreign currencies	JPMorgan Chase & Co., and others		(0.5) ~ 10.6		9,393,624
Bills sold	Others		0.0 ~ 1.4		8,236
Call money	Bank and others		0.0 ~ 2.7		499,324
Bonds sold under repurchase agreements	Other financial institutions		(0.5) ~ 10.6		917,908
Present value discount					(45,794	)

Total					26,668,312

- 100 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022					December 31, 2021
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.8 ~ 3.6		37,827,554			0.7 ~ 3.6		37,004,942
Subordinated bonds		1.9 ~ 5.1		6,244,143			1.9 ~ 5.1		6,767,442
Other bonds		0.6 ~ 17.0		1,173,082			0.8 ~ 17.0		911,190

Sub-total				45,244,779					44,683,574

Discounts on bonds				(35,950	)				(29,710	)

Total				45,208,829					44,653,864

(*)

Included debentures under fair value hedge amounting to 2,944,760 million Won and 2,366,724 million Won as of March 31, 2022 and December 31, 2021 respectively. Also, debentures under cash flow hedge amounting to 875,913 million Won and 819,298 million Won are included as of March 31, 2022 and December 31, 2021 respectively.

- 101 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

21.

PROVISIONS

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


	March 31, 2022		December 31, 2021
Asset retirement obligation		84,193		80,777
Provisions for guarantees (*1)		82,111		74,866
Provisions for unused loan commitments		106,795		112,296
Other provisions (*2)		305,219		308,195

Total		578,318		576,134

(*1)

Provisions for guarantees includes provision for financial guarantee of 52,805 million Won and 53,321 million Won as of March 31, 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 three-month period ended March 31, 2022
	Stage1			Stage2			Stage3		Total
Beginning balance		52,830			15,269			6,767		74,866
Transfer to 12-month expected credit loss		146			(146	)		—		—
Transfer to expected credit loss for the entire period		(10	)		10			—		—
Transfer to credit-impaired financial assets		—			(3	)		3		—
Provisions used		(1,238	)		—			—		(1,238	)
Net provision(reversal) of unused amount		(4,156	)		9,923			306		6,073
Others (*)		2,410			—			—		2,410

Ending balance		49,982			25,053			7,076		82,111

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


	For the three-month period ended March 31, 2021
	Stage1			Stage2			Stage3			Total
Beginning balance		64,804			16,745			8,043			89,592
Transfer to 12-month expected credit loss		210			(210	)		—			—
Transfer to expected credit loss for the entire period		(24	)		24			—			—
Transfer to credit-impaired financial assets		—			(13	)		13			—
Provisions used		(1,707	)		—			—			(1,707	)
Net provision(reversal) of unused amount		(646	)		1,917			(414	)		857
Others (*)		(3,117	)		1			—			(3,116	)

Ending balance		59,520			18,464			7,642			85,626

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

- 102 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Provisions for unused loan commitment


	For the three-month period ended March 31, 2022
	Stage1			Stage2			Stage3			Total
Beginning balance		67,440			44,536			320			112,296
Transfer to 12-month expected credit loss		7,264			(7,224	)		(40	)		—
Transfer to expected credit loss for the entire period		(1,608	)		1,680			(72	)		—
Transfer to credit-impaired financial assets		(58	)		(89	)		147			—
Net provision(reversal) of unused amount		(6,080	)		574			(38	)		(5,544	)
Others		42			1			—			43

Ending balance		67,000			39,478			317			106,795


	For the three-month period ended March 31, 2021
	Stage1			Stage2			Stage3			Total
Beginning balance		63,240			55,726			3,189			122,155
Transfer to 12-month expected credit loss		9,035			(8,714	)		(321	)		—
Transfer to expected credit loss for the entire period		(1,599	)		1,801			(202	)		—
Transfer to credit-impaired financial assets		(38	)		(71	)		109			—
Net provision(reversal) of unused amount		(6,975	)		4,390			(319	)		(2,904	)
Others		55			—			—			55

Ending balance		63,718			53,132			2,456			119,306

(3)	Changes in asset retirement obligation for the three-month periods ended March 31, 2022 and 2021, are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2022			2021
Beginning balance		80,777			68,402
Provisions provided		636			15,361
Provisions used		(1,767	)		(1,794	)
Reversal of provisions unused		—			(2	)
Unwinding of discount		175			103
Others		4,372			(391	)

Ending balance		84,193			81,679

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 March 31, 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.

- 103 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

(4)	Changes in other provisions for the three-month periods ended March 31, 2022 and 2021, are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2022			2021
Beginning balance		308,195			221,494
Provisions provided		1,327			2,780
Provisions used		(1,358	)		(1,607	)
Reversal of provisions unused		(5,713	)		(49	)
Foreign currencies translation adjustments		2,766			2,668
Others		2			(23	)

Ending balance		305,219			225,263

(5)

Others

The Group has been offering Korean Won settlement services for trade with Korea and Iran; however, the Group has stopped the services for trade in line with U.S. economic sanctions on September 23, 2019. The Group resumed the service humanitarian goods trade only since July 13, 2020. In connection with these services, the Group is currently being investigated by the U.S. government agencies including the U.S. prosecutors (United States Attorney’s Office and New York State Attorney General’s Office) and New York State Financial Supervisory Service as to whether the Group has violated United States laws by participating in prohibited transactions involving the following countries: Iran, Sudan, Syria and Cuba, which have been sanctioned by the U.S. In this regard, Office of Foreign Assets Control concluded its investigation in December 2020 without taking any additional sanctions, but the investigation procedures of the U.S. Public Prosecutors’ Office and the New York State Financial Supervisory Service have yet to be completed.

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 March 31, 2022, the provision for this case is 115.8 billion Won and the advance payment 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 March 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.

- 104 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022			December 31, 2021
Present value of defined benefit obligation		1,543,715			1,618,098
Fair value of plan assets		(1,527,972	)		(1,591,458	)

Net defined benefit liabilities (*)		15,743			26,640

(*)

Net defined benefit liability of 15,743 million Won and 26,640 million Won as of March 31, 2022 and December 31, 2021 is the subtracted amount of the net defined benefit asset of 36,661 million Won and 21,346 million Won from the net defined benefit liability of 52,404 million Won and 47,986 million Won.

(2)	Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2022			2021
Beginning balance		1,618,098			1,610,680
Current service cost		41,585			44,608
Interest cost		12,020			9,924
Remeasurements Financial assumption		(108,330	)		(49,725	)
Demographic assumptions		—			—
Experience adjustments		53,819			56,114
Retirement benefit paid		(73,560	)		(88,648	)
Foreign currencies translation adjustments		31			31
Others		52			479

Ending balance		1,543,715			1,583,463

- 105 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


	For the three-month period ended March 31
	2022			2021
Beginning balance		1,591,458			1,564,101
Interest income		12,428			10,187
Remeasurements		(5,487	)		(3,685	)
Employer’s contributions		—			9
Retirement benefit paid		(70,467	)		(72,928	)
Others		40			35

Ending balance		1,527,972			1,497,719

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


	March 31, 2022		December 31, 2021
Cash and due from banks		1,527,972		1,591,458

Meanwhile, among plan assets, realized returns on plan assets amount to 6,941 million Won and 6,502 million Won for the three-month periods ended March 31, 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 three-month period ended March 31
	2022			2021
Current service cost		41,585			44,608
Net interest income		(408	)		(263	)

Cost recognized in net income		41,177			44,345

Remeasurements (*)		(49,024	)		10,074

Cost recognized in total comprehensive income		(7,847	)		54,419

(*)	Amount before tax

Meanwhile, retirement benefits related to defined contribution plans recognized as expenses are 1,203 million Won and 1,288 million Won for the three-month periods ended March 31, 2022 and 2021, respectively.

- 106 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022			December 31, 2021
Other financial liabilities:
Accounts payable		9,100,531			6,969,170
Accrued expenses		1,878,330			2,070,639
Borrowings from trust accounts		4,116,041			3,107,456
Agency business revenue		553,721			433,041
Foreign exchange payables		1,143,229			782,176
Domestic exchange settlement credits		4,177,071			6,708,220
Lease liabilities		343,271			343,213
Other miscellaneous financial liabilities		10,726,320			3,772,437
Present value discount		(17,398	)		(15,322	)

Sub-total		32,021,116			24,171,030

Other liabilities:
Unearned income		299,784			291,147
Other miscellaneous liabilities		343,606			265,706

Sub-total		643,390			556,853

Total		32,664,506			24,727,883

- 107 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

24.

DERIVATIVES

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


			March 31, 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		97,521		—		—		—		—		—		—
Forwards		785,000		—		—		55,593		—		—		—
Swaps		133,004,635		816		41,130		211,206		—		74,634		362,839
Purchase options		170,000		—		—		6,055		—		—		—
Written options		280,000		—		—		—		—		—		10,879
Currency:
Futures		6,236		—		—		—		—		—		—
Forwards		117,577,526		—		—		2,597,322		—		—		1,113,055
Swaps		105,320,103		20,819		—		2,146,506		—		—		3,665,376
Purchase options		1,238,943		—		—		14,307		—		—		—
Written options		1,944,965		—		—		—		—		—		11,628
Equity:
Futures		595,384		—		—		—		—		—		—
Forwards		233		—		—		68		—		—		—
Swaps		680,231		—		—		58,973		—		—		3,215
Purchase options		20,193,726		—		—		888,639		—		—		—
Written options		22,120,257		—		—		—		—		—		1,239,855

Total		404,014,760		21,635		41,130		5,978,669		—		74,634		6,406,847


			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

- 108 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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. The nominal amounts of hedging instruments related to 1M LIBOR, 3M LIBOR, Compounding SOFR, 3M BBSW in the hedging relationships of the Group are USD 470,000,000, USD 1,850,000,000, USD 525,000,000 and AUD 150,000,000, 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 March 31, 2022, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 2,944,760 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 plus spread and AUD BBSW 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.

- 109 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Cash Flow Hedge

As of the March 31, 2022, the Group has applied cash flow hedge on local currency denominated debentures amounting to 89,980 million Won, debentures on foreign currency amounting to 785,932 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 March 31, 2022: USD 672,390,437) and mitigate foreign exchange risk arising from the net assets of subsidiaries.

- 110 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 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
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
Hedges of net investment in foreign operations
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

- 111 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


		March 31, 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% floating 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
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
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% floating 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

- 112 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):

March 31, 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

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

41,130

74,634

Derivative liabilities

(designated for hedging)

(113,925

)

Cash flow hedge

Interest rate risk

Interest rate swap

KRW 50,000

816

—

Derivative liabilities

(designated for hedging)

466

Foreign currency translation risk and interest rate risk

Currency swap

USD 470,000,000

11,034

—

Derivative liabilities (designated for hedging)

14,778

Foreign currency translation risk

Currency swap

USD 180,000,000

9,785

—

Derivative liabilities (designated for hedging)

1,829

Hedges of net investment in foreign operations

Exchange rate risk

Foreign currency bond

USD 672,390,437

—

814,130

Foreign currency bond

(5,446

)

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

Assets

Liabilities

Fair value hedge

Interest rate risk

Interest rate swap

USD 1,850,000,000

Derivative assets

(designated for hedging

Interest rate swap

AUD 150,000,000

95,086

20,287

Derivative liabilities

(designated for hedging)

57,221

Interest rate swap

EUR 26,591,163

—

Cash flow hedge

Interest rate risk

Interest rate swap

KRW 50,000

351

—

Derivative liabilities

(designated for hedging)

1,896

Foreign currency translation risk and interest rate risk

Currency swap

USD 470,000,000

3,631

7,297

Derivative liabilities (designated for hedging)

60,564

Foreign currency translation risk

Currency swap

USD 180,000,000

7,679

—

Derivative liabilities (designated for hedging)

8,218

- 113 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 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		—		2,944,760		—		(54,369	)		Debentures		108,592			—
Cash flow hedge
Interest rate risk
Debentures		—		89,980		—		—			Debentures		(461	)		615
Foreign currencies translation risk and interest rate risk
Debentures		—		568,616		—		—			Debentures		(14,778	)		8,668
Foreign currencies translation risk
Debentures		—		217,316		—		—			Debentures		(1,829	)		(2,080	)
Hedges of net investment in foreign operations
Exchange rate risk Foreign operations net asset		—		—		—		—			Foreign operations net asset		5,446			(3,949	)

(*)	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

- 114 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month period ended March 31, 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		(5,333	)	Other net operating income(expense)


		For the three-month period ended March 31, 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		7,970	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 three-month period ended March 31, 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		461		5		—		Other net operating income(expense)		—		Other net operating income(expense)
	Foreign currencies translation risk and interest rate risk		14,778		—		(79	)	Other net operating income(expense)		(11,891	)	Other net operating income(expense)
	Foreign currencies translation risk		1,829		—		277		Other net operating income(expense)		(4,554	)	Other net operating income(expense)


		For the three-month period ended March 31, 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		800			—			—		Other net operating income(expense)		—		Other net operating income(expense)
	Foreign currencies translation risk and interest rate risk		28,141			291			(2,065	)	Other net operating income(expense)		(25,938	)	Other net operating income(expense)
	Foreign currencies translation risk		(343	)		(258	)		(587	)	Other net operating income(expense)		(445	)	Other net operating income(expense)

- 115 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month period ended March 31, 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		(3,949	)		—		—

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 three-month period ended March 31
	2022			2021
Beginning balance		29,111			6,939
New transactions		8,492			23,025
Amounts recognized in losses		(6,465	)		(6,007	)

Ending balance		31,138			23,957

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 March 31, 2022 and 2021.

- 116 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

26.

EQUITY

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


	March 31, 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)		(1,719,877	)		(1,747,242	)

Sub-total		(1,723,696	)		(1,751,061	)

Accumulated other comprehensive income
Financial assets at FVTOCI		(385,219	)		(162,522	)
Changes in capital due to equity method		398			(138	)
Loss from foreign business translation		(6,760	)		(63,781	)
Loss from hedges of net investment in foreign operations		(3,949	)		—
Remeasurements of defined benefit plan		(160,424	)		(195,944	)
Loss on evaluation of cash flow hedge		6,956			5,553
Capital related to noncurrent assets held for sale		32			279

Sub-total		(548,966	)		(416,553	)

Retained earnings (2) (3)		21,639,489			21,392,564
Non-controlling interest (*4)		3,018,052			3,008,176

Total		29,301,311			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 March 31, 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 March 31, 2022 and December 31, 2021 in accordance with the Article 53 of the Financial Holding Company Act.

(*4)

The hybrid securities issued by Woori Bank amounting to 2,555,166 million Won and 2,555,166 million Won as of March 31, 2022 and December 31, 2021, respectively, are recognized as non-controlling interests. 15,399 million Won and 28,132 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 three-month period ended March 31, 2022 and 2021, respectively.

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


	March 31, 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

- 117 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 (%)		March 31, 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.

- 118 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month period ended March 31, 2022
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect			Ending balance
Net gain(loss) on valuation of financial assets at FVTOCI		(162,522	)		(301,116	)		(271	)		78,690			(385,219	)
Changes in capital due to equity method		(138	)		809			—			(273	)		398
Gain(loss) on foreign currency translation of foreign operations		(63,781	)		58,000			—			(979	)		(6,760	)
Gain(loss) on hedges of net investment in foreign operations		—			(5,447	)		—			1,498			(3,949	)
Remeasurement gain(loss) related to defined benefit plan		(195,944	)		48,993			—			(13,473	)		(160,424	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		5,553			1,879			57			(533	)		6,956
Capital related to noncurrent assets held for sale		279			(341	)		—			94			32

Total		(416,553	)		(197,223	)		(214	)		65,024			(548,966	)

(*)

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 (49) million Won and (247) million Won are due to disposal of equity securities at FVTOCI and assets held for sale during the period.


	For the three-month period ended March 31, 2021
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect			Ending balance
Net gain(loss) on valuation of financial assets at FVTOCI		(9,833	)		313			(37,011	)		9,374			(37,157	)
Changes in capital due to equity method		(2,609	)		2,185			—			(601	)		(1,025	)
Gain(loss) on foreign currency translation of foreign operations		(298,363	)		81,426			—			(2,587	)		(219,524	)
Remeasurement gain(loss) related to defined benefit plan		(261,195	)		(10,000	)		—			2,750			(268,445	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		(1,386	)		(1,005	)		497			365			(1,529	)
Capital related to noncurrent assets held for sale		1,226			(66	)					18			1,178

Total		(572,160	)		72,853			(36,514	)		9,319			(526,502	)

(*)

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 1,257 million Won and (66) million Won are due to disposal of equity securities at FVTOCI 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 MARCH 31, 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):


	March 31, 2022		December 31, 2021
Beginning balance		2,966,960		2,568,367
Planned provision of regulatory reserve for credit loss		18,442		398,593

Ending balance		2,985,402		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):


	For the three-month periods ended March 31
	2022			2021
Net income before regulatory reserve		872,472			718,867
Provision of regulatory reserve for credit loss		18,442			83,080
Adjusted net income after the provision of regulatory reserve		854,030			635,787
Dividends to hybrid securities		(19,151	)		(15,775	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		834,879			620,012
Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)		1,147			858

(6)	There are no changes in treasury stocks for the three-month periods ended March 31, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

27.

DIVIDENDS

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.

28.

NET INTEREST INCOME

(1)	Interest income recognized is as follows (Unit: Korean Won in millions):


	For the three-month periods ended March 31
	2022		2021
Financial assets at FVTPL		16,673		11,374
Financial assets at FVTOCI		141,591		91,786
Financial assets at amortized cost
Securities at amortized cost		88,964		82,243
Loans and other financial assets at amortized cost
Interest on due from banks		14,170		9,454
Interest on loans		2,671,132		2,124,345
Interest of other receivables		8,228		7,983

Subtotal		2,693,530		2,141,782

Total		2,940,758		2,327,185

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


	For the three-month periods ended March 31
	2022		2021
Interest on deposits due to customers		648,568		467,451
Interest on borrowings		74,030		48,554
Interest on debentures		198,808		181,628
Other interest expense		29,916		7,925
Interest on lease liabilities		1,770		1,961

Total		953,092		707,519

- 121 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	For the three-month periods ended March 31
	2022		2021
Fees and commission received for brokerage		37,149		47,124
Fees and commission received related to credit		49,797		49,481
Fees and commission received for electronic finance		33,117		31,956
Fees and commission received on foreign exchange handling		13,673		13,264
Fees and commission received on foreign exchange		17,617		13,583
Fees and commission received for guarantee		19,507		17,537
Fees and commission received on credit card		141,472		137,394
Fees and commission received on securities business		27,894		24,061
Fees and commission from trust management		67,257		47,204
Fees and commission received on credit information		2,455		2,422
Fees and commission received related to lease		122,746		82,192
Other fees		44,236		52,647

Total		576,920		518,865

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


	For the three-month periods ended March 31
	2022		2021
Fees and commissions paid		66,911		59,846
Credit card commission		100,946		97,749
Brokerage commission		275		239
Others		3,088		2,570

Total		171,220		160,404

30.

DIVIDEND INCOME

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


	For the three-month periods ended March 31
	2022		2021
Dividend income related to financial assets at FVTPL		32,447		53,318
Dividend income related to financial assets at FVTOCI		14,576		13,272

Total		47,023		66,590

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


	For the three-month periods ended March 31
	2022		2021
Dividend income recognized from assets held
Equity securities		14,576		13,272

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	For the three-month periods ended March 31
	2022		2021
Gain on financial instruments at FVTPL measured at fair value		115,386		81,121
Gain on financial instruments at FVTPL designated as upon initial recognition		—		962

Total		115,386		82,083

(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):


			For the three-month periods ended March 31
			2022			2021
Financial assets at FVTPL	Securities	Gain on transactions and valuation		132,635			78,819
		Loss on transactions and valuation		(139,033	)		(51,874	)
		Sub-total		(6,398	)		26,945

	Loans	Gain on transactions and valuation		5,437			5,497
		Loss on transactions and valuation		(1,290	)		(1,395	)

		Sub-total		4,147			4,102

	Other financial assets	Gain on transactions and valuation		9,373			5,299
		Loss on transactions and valuation		(5,530	)		(3,554	)

		Sub-total		3,843			1,745

		Sub-total		1,592			32,792

Derivatives (Held for trading)	Interest rates derivatives	Gain on transactions and valuation		1,393,931			454,579
		Loss on transactions and valuation		(832,491	)		(375,637	)

		Sub-total		561,440			78,942

	Currency derivatives	Gain on transactions and valuation		2,736,106			4,133,873
		Loss on transactions and valuation		(3,188,767	)		(4,171,473	)

		Sub-total		(452,661	)		(37,600	)

	Equity derivatives	Gain on transactions and valuation		729,157			809,549
		Loss on transactions and valuation		(724,146	)		(801,857	)

		Sub-total		5,011			7,692

	Other derivatives	Gain on transactions and valuation		4			—
		Loss on transactions and valuation		—			(705	)

		Sub-total		4			(705	)

		Sub-total		113,794			48,329

	Net, total			115,386			81,121

- 123 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	For the three-month periods ended March 31
	2022		2021
Loss on equity-linked securities		—		962

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):


	For the three-month periods ended March 31
	2022			2021
Gain on redemption of securities		(3	)		1
Gain on transactions of securities		274			37,010

Total		271			37,011

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):


	For the three-month periods ended March 31
	2022			2021
Impairment loss due to credit loss on financial assets measured at FVTOCI		(719	)		(1,018	)
Reversal of(provision for) impairment loss due to credit loss on securities at amortized cost		(283	)		187
Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost		(164,537	)		(137,209	)
Provision for provision on guarantee		(6,073	)		(857	)
Reversal of unused loan commitment		5,544			2,904

Total		(166,068	)		(135,993	)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


			For the three-month periods ended March 31
			2022		2021
Employee benefits	Short-term employee benefits	Salaries		417,232		404,239
		Employee fringe benefits		162,291		130,109
	Share based payment			6,932		2,353
	Retirement benefit service costs			42,380		45,633
	Termination			118		281

		Subtotal		628,953		582,615

Depreciation and amortization				130,761		135,425
Other general and administrative expenses	Rent			22,061		19,306
	Taxes and public dues			43,379		37,156
	Service charges			54,490		53,058
	Computer and IT related			25,591		26,510
	Telephone and communication			18,813		18,137
	Operating promotion			10,865		9,203
	Advertising			10,345		9,565
	Printing			1,405		1,650
	Traveling			2,010		1,704
	Supplies			2,065		1,708
	Insurance premium			2,841		2,554
	Maintenance			5,414		4,905
	Water, light, and heating			4,736		4,358
	Vehicle maintenance			2,906		2,346
	Others			9,493		7,407

		Sub-total		216,414		199,567

	Total			976,128		917,607

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


		For the three-month periods ended March 31
		2022		2021
Gain on transactions of foreign exchange			125,675		121,832
Gain related to derivatives (Designated for hedging)			16,450		25,999
Gain on fair value hedged items			108,592		58,653
Others			72,313		24,341

	Total		323,030		230,825

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


		For the three-month periods ended March 31
		2022		2021
Losses on transactions of foreign exchange			87,529		116,039
KDIC deposit insurance premium			106,449		97,545
Contribution to miscellaneous funds			96,502		86,146
Losses related to derivatives (Designated for hedging)			113,925		50,389
Losses on fair value hedged items			—		—
Others (*)			152,101		92,081

	Total		556,506		442,200

(*)

Other expense includes 3,599 million Won and 2,989 million Won for intangible asset amortization cost and 83,564 million Won and 54,198 million Won for lease depreciation cost for the three-month periods ended March 31, 2022 and 2021, respectively.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

(4)	Share-based payment

Details of performance condition share-based payment granted to executives as of March 31, 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)		14,269 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		0.75 years
Number of shares remaining	As of March 31, 2022	602,474 shares
	As of December 31, 2021	602,474 shares
Number of shares granted (*2)	As of March 31, 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)		13,566 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		1.75 years
Number of shares remaining	As of March 31, 2022	944,343 shares
	As of December 31, 2021	944,343 shares
Number of shares granted (*2)	As of March 31, 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)		12,898 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		2.75 years
Number of shares remaining	As of March 31, 2022	1,105,515 shares
	As of December 31, 2021	1,105,515 shares
Number of shares granted (*2)	As of March 31, 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)		12,263 Won
Valuation method		Black-Scholes Model
Expected dividend rate		5.05%
Expected maturity date		3.75 years
Number of shares remaining	As of March 31, 2022	233,476 shares
	As of December 31, 2021	—
Number of shares granted (*2)	As of March 31, 2022	233,476 shares
	As of December 31, 2021	—

- 126 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 March 31, 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 38,529 million Won and 31,597 million Won, respectively.

- 127 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	For the three-month periods ended March 31
	2022			2021
Gains on valuation of investments in joint ventures and associates		15,412			6,085
Losses on valuation of investments in joint ventures and associates		(10,504	)		(10,877	)
Impairment losses of investments in joint ventures and associates		(17,727	)		(799	)

Total		(12,819	)		(5,591	)

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


	For the three-month periods ended March 31
	2022			2021
Other non-operating incomes		24,656			24,827
Other non-operating expenses		(75,202	)		(10,986	)

Total		(50,546	)		13,841

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


	For the three-month periods ended March 31
	2022		2021
Rental fee income		5,252		3,663
Gains on disposal of investments in joint ventures		561		—
Gains on disposal of premises and equipment, intangible assets and other assets		9,019		4,459
Reversal of impairment loss of premises and equipment, intangible assets and other assets		278		144
Others		9,546		16,561

Total		24,656		24,827

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


	For the three-month periods ended March 31
	2022		2021
Depreciation on investment properties		981		574
Operating expenses on investment properties		334		184
Losses on disposal of investments in joint ventures		2,373		—
Losses on disposal of premises and equipment, intangible assets and other assets		685		620
Impairment losses of premises and equipment, intangible assets and other assets		336		220
Donation		1,414		2,588
Others (*)		69,079		6,800

Total		75,202		10,986

(*)	Others include 902 million Won of other extra ordinary losses related to other provisions and 62,196 million Won of other extraordinary losses related to accounts payable for the three-month period ended March 31, 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

36.

INCOME TAX EXPENSE

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


	For the three-month periods ended March 31
	2022			2021
Current tax expense
Current tax expense with respect to the current period		359,997			233,532
Adjustments recognized in the current period in relation to the tax expense of prior periods		(3,671	)		912

Sub-total		356,326			234,444

Deferred tax expense
Change in deferred tax assets(liabilities) due to temporary differences		(128,745	)		(20,868	)
Income tax expense directly attributable to equity		65,024			9,319

Sub-total		(63,721	)		(11,549	)

Income tax expense		292,605			222,895

Income tax expense was recognized based on the estimate of the best weighted average annual effective tax rate expected for the interim period. The weighted average annual effective tax rate for the March 31, 2022, is 25.1% (The weighted average annual effective tax rate for the March 31, 2021, is 23.7%).

- 129 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	For the three-month periods ended March 31
	2022			2021
Net income attributable to common shareholders		839,188			667,103
Dividends to hybrid securities		(19,151	)		(15,775	)
Net income attributable to common shareholders		820,037			651,328
Weighted average number of common shares outstanding (Unit: million shares)		728			722
Basic EPS (Unit: Korean Won)		1,127			902

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


	For the three-month period ended March 31, 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 ~ 2022-03-31		728,060,549			90		65,525,449,410
Treasury stock		2022-01-01 ~ 2022-03-31		(343,991	)		90		(30,959,190	)

Sub-total (①)									65,494,490,220

Weighted average number of common shares outstanding (②=(①/90)									727,716,558


	For the three-month period ended March 31, 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 ~ 2021-03-31		722,267,683			90		65,004,091,470
Treasury stock		2021-01-01 ~ 2021-03-31		(2	)		90		(180	)

Sub-total (①)									65,004,091,290

Weighted average number of common shares outstanding (②=(①/90)									722,267,681

Diluted EPS is equal to basic EPS because there is no dilution effect for the three-month periods ended March 31, 2022 and 2021.

- 130 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

38.

CONTINGENT LIABILITIES AND COMMITMENTS

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


	March 31, 2022		December 31, 2021
Confirmed guarantees
Guarantee for loans		44,260		38,897
Acceptances		567,196		622,758
Guarantees in acceptances of imported goods		115,295		111,195
Other confirmed guarantees		7,096,722		7,215,557

Sub-total		7,823,473		7,988,407

Unconfirmed guarantees
Local letters of credit		254,278		243,072
Letters of credit		3,600,251		3,186,513
Other unconfirmed guarantees		897,301		778,088

Sub-total		4,751,830		4,207,673

Commercial paper purchase commitments and others		791,586		791,729

Total		13,366,889		12,987,809

(*)	Includes financial guarantees of 4,080,253 million won and 3,963,383 million won as of March 31, 2022 and December 31, 2021, respectively.

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


	March 31, 2022		December 31, 2021
Loan commitments		117,725,006		114,414,462
Other commitments (*)		7,820,576		5,652,557

(*)	The amount of unsecured bills (purchase note sales) and discounts on electronic short-term bond sales (purchase) are 3,297,948 million Won and 2,225,226 million Won as of March 31, 2022 and December 31, 2021, respectively.

(3)	Litigation case

As of March 31, 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 509 cases (litigation value of 576,412 million Won) and 475 cases (litigation value of 578,505 million Won) as of March 31, 2021 and December 31, 2021 respectively, and provisions for litigations are 23,598 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 121,993 million Won as other financial liabilities for the second sales agreement.

As of March 31, 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 December 31, 2022, the total PF loan amount of PF loan institutions invested in the project of the Land Trust responsible for Construction and Management is 3,063,966 million Won. Although additional losses may occur in relation to the construction completion obligations, the financial statements as of March 31, 2022 do not reflect these effects since losses are unlikely and the amount cannot be estimated reliably.

- 131 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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.

39.

RELATED PARTY TRANSACTIONS

Related parties of the Group as of March 31, 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 three-month periods ended March 31, 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	March 31, 2022			December 31, 2021
Associates	W Service Networks Co., Ltd.	Loans		16			20
		Deposits due to customers		2,469			2,832
		Accrued expenses		5			6
		Other liabilities		417			425
	Korea Credit Bureau Co., Ltd.	Loans		1			2
		Deposits due to customers		505			1,557
	Korea Finance Security Co., Ltd.	Loans		3,421			3,425
		Loss allowance		(5	)		(6	)
		Deposits due to customers		8,761			1,887
		Other liabilities		2			2
	LOTTE CARD Co., Ltd.	Loans		2,812			3,750
		Loss allowance		(29	)		(39	)
		Other assets		9			10
		Deposits due to customers		13,818			13,482
		Other liabilities		91			91
	K BANK Co., Ltd.	Loans		42			99
		Account receivables		28			29
		Other liabilities		107,147			84,935
	Others (*)	Loans		71,249			73,940
		Loss allowance		(25	)		(124	)
		Other assets		789			739
		Deposits due to customers		1,490			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 March 31, 2022 and December 31, 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


			For the three-month period ended March 31
Related parties		Account title	2022		2021
Associates	W Service Network Co., Ltd.	Other income		6		8
		Interest expenses		2		2
		Fees expenses		139		162
		Other expenses		466		480
	Korea Credit Bureau Co., Ltd.	Interest expenses		—		2
		Fees expenses		891		837
		Other expenses		34		—
	Korea Finance Security Co., Ltd.	Interest income		24		19
		Interest expenses		1		1
		Other expenses		16		22
	LOTTE CARD Co., Ltd.	Interest income		33		74
		Fees income		23		982
		Interest expenses		231		2
		Reversal of allowance for credit loss		10		9
	K BANK Co., Ltd.	Fees income		436		503
		Fees expenses		368		—
	Others (*)	Interest income		184		—
		Fees income		1,614		721
		Interest expenses		1		3
		Reversal of allowance for credit loss		99		—

(*)	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 three-month period ended March 31, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

(3)	Major loan transactions with related parties for the three-month periods ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):


		For the three-month period ended March 31, 2022
Related parties		Beginning balance		Loan		Collection		Foreign currency exchange, etc.			Ending balance (*)
Associates	W Service Network Co., Ltd.		20		60		64		—			16
	Korea Credit Bureau Co., Ltd.		2		4		5		—			1
	Korea Finance Security Co., Ltd.		3,425		79		83		—			3,421
	LOTTE CARD Co., Ltd.		3,750		—		937		—			2,813
	K BANK Co., Ltd.		99		130		187		—			42
	Godo Kaisha Oceanos 1		43,033		—		—		(1,566	)		41,467
	Woori ZIP 1		12,775		—		—		(465	)		12,310
	Woori ZIP 2		18,132		—		—		(660	)		17,472

(*)

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


		For the three-month period ended March 31, 2021
Related parties		Beginning balance		Loan		Collection		Ending balance (*)
Associates	W Service Network Co., Ltd.		21		76		61		36
	Korea Credit Bureau Co., Ltd.		1		2		2		1
	Korea Finance Security Co., Ltd.		3,440		90		109		3,421
	LOTTE CARD Co., Ltd.		7,500		—		937		6,563
	K BANK Co., Ltd.		104		625		529		200

(*)

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 three-month periods March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):


		For the three-month period ended March 31, 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		—		—		329

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


		For the three-month period ended March 31, 2021
Related parties		Beginning balance		Borrowings		Repayment and others		Ending balance (*1)
Associates	W Service Networks Co., Ltd		1,180		—		—		1,180
	Partner One Value Up I Private Equity Fund		863		—		482		381
	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 three-month periods ended March 31, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

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


Warrantee	March 31, 2022		December 31, 2021		Warranty
Korea Finance Security Co., Ltd.		839		835	Unused loan commitment
Korea Credit Bureau Co., Ltd.		34		33	Unused loan commitment
W Service Network Co., Ltd.		184		180	Unused loan commitment
K BANK Co., Ltd.		258		201	Unused loan commitment
LOTTE CARD Co., Ltd.		500,000		500,000	Unused loan commitment
Dicustody Co., Ltd.		10		—	Unused loan commitment

As of March 31, 2022 and December 31, 2021, the recognized payment guarantee provisions are 93 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	March 31, 2022		December 31, 2021		Warranty
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		4,664		4,664	Securities purchase commitment
WooriG Senior Loan General Type Private Investment Trust No.1		211		14,284	Securities purchase commitment
Woori Seoul Beltway Private Special Asset Fund No.1		38,771		39,458	Securities purchase commitment
Woori-Q Corporate Restructuring Private Equity Fund		13,090		11,109	Securities purchase commitment
Union Technology Finance Investment Association		—		2,250	Securities purchase commitment
Genesis Eco No.1 Private Equity Fund		195		195	Securities purchase commitment
Genesis Environmental Energy Company 1st Private Equity Fund		—		916	Securities purchase commitment
JC Assurance No.2 Private Equity Fund		1,351		1,351	Securities purchase commitment
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		425		425	Securities purchase commitment
WooriG Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)		669		669	Securities purchase commitment

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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 three-month periods ended March 31, 2022 and 2021 are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31, 2022
The same parent company and its associates	Investment and others(*)		Recovery and others(*)
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		—		21,606
Woori High Plus Bond Sec Feeder Inv Trust 3(USD)		—		1,052
Woori Bank Plus Public Offering stock 10 securities Investment Trust 2(Bond Mixed)		200		—
Woori Two-year Bond Securities Investment Trust 2(Bond)		—		213
Woori China Mainland Stock Securities Investment Trust H(Securities)		—		443

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


	For the three-month period ended March 31, 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)		—		156
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		—

(*) 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 three- month period ended March 31
	2022		2021
Short-term employee salaries		5,637		6,416
Retirement benefit service costs		194		290
Share-based compensation		2,535		1,005

Total		8,366		7,711

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 3,573 million Won and 3,821 million Won, as of March 31, 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 24,722 million Won and 24,861 million Won, respectively, as of March 31, 2022 and December 31, 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 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):


	March 31, 2022
	Total investment in lease		Net investment in lease
Within one year		85,905		79,010
After one year but within two years		152,499		142,299
After two years but within three years		265,220		244,072
After three years but within four years		434,689		393,803
After four years but within five years		505,582		444,657
After five years		2		2

Total		1,443,897		1,303,843


	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):


	March 31, 2022		December 31, 2021
Total investment in lease		1,443,897		1,298,516
Net investment in lease		1,303,843		1,173,565
Present value of minimum lease payments		1,303,843		1,173,565
Present value of unguaranteed residual value		—		—

Unearned interest income		140,054		124,951

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

Operating lease

①

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


	March 31, 2022			December 31, 2021
Prepaid lease assets		4,347			4,579
Operating lease assets
Acquisition cost		2,626,785			2,299,968
Accumulated depreciation		(571,588	)		(521,660	)
Net carrying value		2,055,197			1,778,308

Total		2,059,544			1,782,887

②

The details of changes in operating lease assets as of March 31, 2022 are as follows and there is no details of changes in operating lease assets as of March 31, 2021 (Unit: Korean Won in millions):


	March 31, 2022			March 31, 2021
Beginning balance		1,778,308			1,116,175
Acquisition		378,046			112,107
Disposal		(25,187	)		(24,539	)
Depreciation		(83,564	)		(54,197	)
Others		7,594			706

Ending balance		2,055,197			1,150,252

③

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


	March 31, 2022		December 31, 2021
Within one year		428,503		377,153
After one year but within two years		389,729		347,539
After two years but within three years		303,390		262,176
After three years but within four years		204,928		170,391
After four years but within five years		95,060		79,555

Total		1,421,610		1,236,814

④

There are no adjusted lease payments recognized as profit or loss for the three-month periods ended March 31, 2022 and 2021.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND 2021 (UNAUDITED)

(2)

Lessee

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


	March 31, 2022		December 31, 2021
Lease payments
Within one year		143,316		151,259
After one year but within five years		158,988		155,707
After five years		36,544		38,275
Total		338,848		345,241

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


	For the three-month periods ended March 31
	2022		2021
Total cash outflows from lease		47,764		51,197

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 three- month periods ended March 31
	2022		2021
Lease payments for short-term leases		387		437
Lease payments for which the underlying asset is of low value		316		431
Total		703		868

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 8,173 million Won, to reflect changes in lease payments arising from the rent concession.

41.

EVENTS AFTER THE REPORTING PERIOD

Woori Bank Co., Ltd., a subsidiary of the Group, recognized the embezzlement of internal employees in April 2022. Investigation agencies are investigating the facts of the case, and Group determined the case as Events after the Reporting Period that requires correction and reflected the relevant amount as a loss in the financial statements as of March 31, 2022. The relevant amount is described in Note 35.(4)

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