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Published: 2021-05-17 11:09:35 ET

EX-99.1 2 d178760dex991.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, 2021 AND 2020

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		10-124

Report on Review of Consolidated Interim Financial Statements

English Translation of a Report Originally Issued in Korean on May 17, 2021

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, 2021 and the related consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2021 and 2020, and a summary of significant accounting policies and other explanatory notes, expressed in Korean Won.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

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

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

Conclusion

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

LOGO

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, 2020, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements, not presented herein, in our audit report dated March 12, 2021. The consolidated statement of financial position as at December 31, 2020, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2020.

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 17, 2021

Notice to Readers

This report is effective as of May 17, 2021, 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, 2021 AND 2020

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

- 3 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2021 (UNAUDITED) AND DECEMBER 31, 2020


	March 31, 2021			December 31, 2020
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 6)		11,149,089			9,990,983
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, and 24)		12,883,899			14,762,941
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, and 11)		30,805,644			30,028,929
Securities at amortized cost (Notes 4, 9, and 11)		16,275,197			17,020,839
Loans and other financial assets at amortized cost (Notes 4, 10, 11, and 39)		337,757,469			320,106,078
Investments in joint ventures and associates (Note 12)		1,048,325			993,291
Investment properties (Note 13)		380,583			387,464
Premises and equipment (Notes 14)		3,268,837			3,287,198
Intangible assets (Note 15)		787,344			792,077
Assets held for sale (Note 16)		57,664			60,002
Net defined benefit asset (Note 22)		2			5,658
Current tax assets		10,758			75,655
Deferred tax assets		41,865			46,088
Derivative assets (Designated for hedging) (Notes 4, 11 and 24)		149,418			174,820
Other assets (Notes 17 and 39)		1,488,290			1,348,994

Total assets		416,104,384			399,081,017

LIABILITIES
Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 18 and 24)		4,360,120			6,813,822
Deposits due to customers (Notes 4, 11, 19 and 39)		298,919,981			291,477,279
Borrowings (Notes 4, 11 and 20)		20,256,488			20,745,466
Debentures (Notes 4, 11 and 20)		39,078,257			37,479,358
Provisions (Notes 21, 38 and 39)		511,874			501,643
Net defined benefit liability (Note 22)		85,746			52,237
Current tax liabilities		430,429			370,718
Deferred tax liabilities		135,159			160,250
Derivative liabilities (Designated for hedging) (Notes 4, 11 and 24)		52,590			64,769
Other financial liabilities (Notes 4, 11, 23 and 39)		24,549,472			14,215,817
Other liabilities (Notes 23 and 39)		545,938			473,813

Total liabilities		388,926,054			372,355,172

EQUITY
Owners’ equity (Note 26)
Capital stock		3,611,338			3,611,338
Hybrid securities		1,895,366			1,895,366
Capital surplus		626,114			626,111
Other equity		(2,247,363	)		(2,347,472	)
Retained earnings		19,627,439			19,268,265

		23,512,894			23,053,608

Non-controlling interests		3,665,436			3,672,237

Total equity		27,178,330			26,725,845

Total liabilities and equity		416,104,384			399,081,017

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

- 4 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020 (UNAUDITED)


	For the three-month periods ended March 31
	2021			2020
	(Korean Won in millions, except for per share data)
Interest income		2,327,185			2,503,814
Interest expense		(707,519	)		(1,040,855	)

Net interest income (Notes 11, 28 and 39)		1,619,666			1,462,959
Fees and commissions income		518,865			410,711
Fees and commissions expense		(160,404	)		(136,731	)

Net fees and commissions income (Notes 11, 29 and 39)		358,461			273,980
Dividend income (Notes 11, 30 and 39)		66,590			47,769
Net gain on financial instruments at FVTPL (Notes 11, 31 and 39)		82,083			468,075
Net gain on financial assets at FVTOCI (Notes 11 and 32)		37,011			2,600
Net gain arising on financial assets at amortized cost (Note 11)		34,676			26,747
Impairment losses due to credit loss (Notes 33 and 39)		(135,993	)		(110,892	)
General and administrative expense (Notes 34 and 39)		(917,607	)		(892,526	)
Other net operating expense (Notes 11, 24, 34 and 39)		(211,375	)		(505,374	)

Operating income		933,512			773,338
Share of gain(loss) of joint ventures and associates (Note 12)		(5,591	)		7,154
Other non-operating income(expense)		13,841			(27,879	)

Non-operating income(expense) (Note 35)		8,250			(20,725	)
Net income before income tax expense		941,762			752,613
Income tax expense (Note 36)		(222,895	)		(194,842	)
Net income		718,867			557,771

Net gain(loss) on valuation of equity securities at FVTOCI		25,166			(110,171	)
Changes in capital due to equity method		289			—
Remeasurement loss related to defined benefit plan		(7,304	)		(19,329	)

Items that will not be reclassified to profit or loss		18,151			(129,500	)

Net gain(loss) on valuation of debt securities at FVTOCI		(53,813	)		23,999
Changes in capital due to equity method		1,295			(1,007	)
Net gain on foreign currency translation of foreign operations		80,967			13,997
Net loss on valuation of cash flow hedge		(6	)		(9,485	)

Items that may be reclassified to profit or loss		28,443			27,504
Other comprehensive income(loss), net of tax		46,594			(101,996	)
Total comprehensive income		765,461			455,775

(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, 2021 AND 2020 (UNAUDITED) (CONTINUED)


	For the three-month periods ended March 31
	2021		2020
	(Korean Won in millions, except for per share data)
Net income attributable to:		718,867		557,771
Net income attributable to owners		667,103		518,216
Net income attributable to non-controlling interests		51,764		39,555
Total comprehensive income attributable to:		765,461		455,775
Comprehensive income attributable to owners		711,552		427,259
Comprehensive income attributable to non-controlling interests		53,909		28,516
Earnings per share (Note 37)
Basic and diluted earnings per share (Unit: In Korean Won)		902		706

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

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020 (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, 2020		3,611,338		997,544		626,295		(2,249,322	)		18,524,515			21,510,370			3,981,962			25,492,332
Total comprehensive income
Net income		—		—		—		—			518,216			518,216			39,555			557,771
Net loss on valuation of financial instruments at FVTOCI		—		—		—		(85,983	)		—			(85,983	)		(189	)		(86,172	)
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—		288			(288	)		—			—			—
Changes in capital due to equity method		—		—		—		(1,007	)		—			(1,007	)		—			(1,007	)
Gain(loss) on foreign currency translation of foreign operations		—		—		—		24,880			—			24,880			(10,883	)		13,997
Loss on valuation of cash flow hedge		—		—		—		(9,485	)		—			(9,485	)		—			(9,485	)
Remeasurement loss related to defined benefit plan		—		—		—		(19,362	)		—			(19,362	)		33			(19,329	)
Transactions with owners and others
Dividends to common stocks		—		—		—		—			(505,587	)		(505,587	)		(375	)		(505,962	)
Issuance of hybrid securities		—		399,092		—		—			—			399,092			—			399,092
Dividends to hybrid securities		—		—		—		—			(8,513	)		(8,513	)		(29,213	)		(37,726	)
Changes in subsidiaries’ capital		—		—		1,494		6,350			(6,350	)		1,494			(13	)		1,481

March 31, 2020 (Unaudited)		3,611,338		1,396,636		627,789		(2,333,641	)		18,521,993			21,824,115			3,980,877			25,804,992

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 gain 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

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, 2021 AND 2020 (UNAUDITED)


	For the three-month periods ended March 31
	2021			2020
	(Korean Won in millions)
Cash flows from operating activities:
Net income		718,867			557,771
Adjustments to net income:
Income tax expense		222,895			194,842
Interest income		(2,327,185	)		(2,503,814	)
Interest expense		707,519			1,040,855
Dividend income		(66,590	)		(47,769	)

		(1,463,361	)		(1,315,886	)

Additions of expenses not involving cash outflows:
Loss on valuation of financial instruments at FVTPL		162,816			—
Loss on financial assets at FVTOCI		57			1,530
Impairment loss due to credit loss		135,993			110,892
Loss on other provisions		2,786			46,014
Retirement benefit		44,345			43,215
Depreciation and amortization		138,988			138,608
Net loss on foreign currency translation		49,017			405,573
Loss on derivatives (designated for hedge)		50,389			374
Loss on fair value hedge		—			105,769
Loss on valuation and impairment loss of investments in joint ventures and associates		11,676			7,910
Loss on disposal of premises and equipment, intangible assets and other assets		620			564
Impairment loss on premises and equipment, intangible assets and other assets		220			568

		596,907			861,017

Deductions of income not involving cash inflows:
Gain on valuation of financial instruments at FVTPL		—			340,226
Gain on financial assets at FVTOCI		37,068			4,130
Gain on other provisions		73			94
Gain on derivatives (designated for hedge)		25,999			139,993
Gain on fair value hedge		58,653			—
Gain on valuation of investments in joint ventures and associates		6,085			15,064
Gain on disposal of premises and equipment, intangible assets and other assets		4,459			6,449
Reversal of impairment loss on premises and equipment, intangible assets and other assets		144			35
Other income		9,654			—

		142,135			505,991

Changes in operating assets and liabilities:
Financial instruments at FVTPL		225,557			(169,184	)
Loans and other financial assets at amortized cost		(16,511,538	)		(8,656,631	)
Other assets		(136,191	)		(232,421	)
Deposits due to customers		6,480,418			929,558
Provisions		(8,152	)		(62,525	)
Net defined benefit liability		(15,729	)		(1,033	)
Other financial liabilities		9,859,829			6,208,981
Other liabilities		68,401			36,942

		(37,405	)		(1,946,313	)

Interest income received		2,276,875			2,543,855
Interest expense paid		(777,914	)		(1,175,868	)
Dividends received		28,239			25,933
Income tax paid		(76,109	)		(62,724	)

Net cash inflow(outflow) from operating activities		(1,123,964	)		(1,018,206	)

(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, 2021 AND 2020 (UNAUDITED)

(CONTINUED)


	For the three-month periods ended March 31
	2021			2020
	(Korean Won in millions)
Cash flows from investing activities:
Cash in-flows from investing activities:
Net cash flows from hedging activities		—			463
Disposal of financial instruments at FVTPL		2,398,523			1,926,078
Disposal of financial assets at FVTOCI		7,312,320			4,900,957
Redemption of securities at amortized cost		1,317,352			1,781,579
Disposal of investments in joint ventures and associates		7,000			1,872
Disposal of investment properties		—			348
Disposal of premises and equipment		7,875			16,937
Disposal of intangible assets		—			358
Net decrease of other assets		25,766			—

		11,068,836			8,628,592

Cash out-flows from investing activities:
Acquisition of financial instruments at FVTPL		3,417,895			2,038,061
Acquisition of financial assets at FVTOCI		7,940,822			5,264,121
Acquisition of securities at amortized cost		556,635			1,458,443
Acquisition of investments in joint ventures and associates		76,536			27,737
Acquisition of investment properties		—			1,477
Acquisition of premises and equipment		19,279			25,109
Acquisition of intangible assets		35,203			32,966
Net increase of other assets		—			2,671

		12,046,370			8,850,585

Net cash outflow from investing activities		(977,534	)		(221,993	)

Cash flows from financing activities:
Cash in-flows from financing activities:
Net increase in borrowings		—			3,119,215
Issuance of debentures		6,851,794			7,708,461
Net increase of other liabilities		417			—
Issuance of hybrid securities		—			399,092

		6,852,211			11,226,768

Cash out-flows from financing activities:
Net cash flows from hedging activities		11,127			6,902
Net decrease in borrowings		792,431			—
Redemption of debentures		5,340,389			6,768,106
Redemption of lease liabilities		50,329			59,067
Net decrease of other liabilities		—			538
Dividends paid to hybrid securities		43,907			37,726
Dividends paid to non-controlling interest		1,635			375
Paid-in capital decrease on non-controlling interests		12			—

		6,239,830			6,872,714

		612,381			4,354,054

Net increase in cash and cash equivalents		758,811			3,113,855
Cash and cash equivalents, beginning of the period		9,990,983			6,392,566
Effects of exchange rate changes on cash and cash equivalents		399,295			247,414

Cash and cash equivalents, end of the period (Note 6)		11,149,089			9,753,835

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, 2021 AND 2020 (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 3,611,338 million Won as of March 31, 2021 while the Korea Deposit Insurance Corp. (“KDIC”), the Parent company’s largest shareholder, owns 124,604,797 shares (17.25%) of the Parent company’s stocks issued. The 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 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.

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.

- 10 -

(2)	Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of March 31, 2021 and December 31, 2020 are as follows:

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

March 31,
2021

December 31,
2020

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

76.8

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 Asset Management Corp.

Finance

73.0

Korea

March 31

Woori Savings Bank (*7)

Bank

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

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

Finance

79.9

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

WB Finance Co., Ltd. (*1)

Finance

100.0

Cambodia

March 31

Woori Bank Europe

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

Hermes STX Co., Ltd. (*2)

Asset securitization

0.0

Korea

March 31

BWL First Co., LLC (*2)

Asset securitization

—

0.0

Korea

—

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

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

Asset securitization

0.0

Korea

March 31

Uri 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

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

Asset securitization

0.0

Korea

March 31

Woori the Colony Unjung Securitization Specialty Co., Ltd. (*2)

Asset securitization

0.0

Korea

March 31

Woori Dream 1st 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 Sinnonhyeon 1st Inc. (*2)

Asset securitization

0.0

Korea

March 31

- 11 -

Percentage of ownership
(%)

Financial

Subsidiaries

Main business

March 31,
2021

December 31,
2020

Location

statements date
of use

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

Uri 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 2nd Co., Ltd. (*5)

Asset securitization

—

0.0

Korea

—

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

Asset securitization

0.0

Korea

March 31

Uri 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

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

0.0

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

SPG the 1^stCo., 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 1^st 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

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

98.5

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

Woori G Japan 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

97.2

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. (*3)

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

- 12 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

March 31,
2021

December 31,
2020

Held by Woori Card Co., Ltd.

TUTU Finance –WCI Myanmar Co., Ltd.

Finance

100.0

Myanmar

March 31

Woori Card one of 2017-2 Securitization Specialty Co., Ltd. (*2)

Asset securitization

0.5

Korea

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

Held by Woori Financial Capital Co., Ltd.

Woori Savings Bank (*5)

Bank

—

100.0

Korea

—

ACE Auto Invest the 46th Securitization Specialty Co., Ltd. (*5)

Asset securitization

—

1.0

Korea

—

ACE Auto Invest the 47th Securitization Specialty Co., Ltd. (*2)

Asset securitization

1.0

Korea

March 31

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

Asset securitization

1.0

Korea

March 31

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

Asset securitization

1.0

Korea

March 31

Specified Money Market Trust

Trust

100.0

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

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

Asset securitization

5.0

Korea

March 31

WH2103 Securitization Specialty Co., Ltd.

Asset securitization

5.0

—

Korea

March 31

WN2103 Securitization Specialty Co., Ltd.

Asset securitization

5.0

—

Korea

March 31

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

Asset securitization

0.0

Korea

March 31

One Punch blue 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

99.5

99.6

Korea

March 31

- 13 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

March 31,
2021

December 31,
2020

Woori China Convertible Bond Master Fund (debt-oriented hybrid) (*3)

Securities investment
and others

33.7

34.5

Korea

March 31

Woori Yellow Chip High Yield Strategic Allocation 1 (FOF) (*5)

Securities investment
and others

—

89.8

Korea

—

Woori Together TDF 2025 (*3)

Securities investment
and others

46.0

47.6

Korea

March 31

Woori Together TDF 2030 (*3)

Securities investment
and others

44.0

47.4

Korea

March 31

Woori Together TDF 2035 (*3)

Securities investment
and others

46.4

47.8

Korea

March 31

Woori Together TDF 2040 (*3)

Securities investment
and others

47.2

48.8

Korea

March 31

Woori Together TDF 2045 (*3)

Securities investment
and others

45.7

47.7

Korea

March 31

Woori Together TDF 2050 (*3)

Securities investment
and others

74.4

87.0

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

22.2

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

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

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

WooriG GP Commitment Loan Private Placement Investment Trust No.1

Securities investment
and others

100.0

50.0

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

- 14 -

Percentage of ownership
(%)

Location

Financial
statements date
of use

Subsidiaries

Main business

March 31,
2021

December 31,
2020

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

Securities investment
and others

100.0

Korea

March 31

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

Securities investment
and others

30.1

Korea

March 31

Held by Woori bank (*6)

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

Securities investment
and others

92.6

Korea

March 31

Woori G Private Placement Real Estate Investment Trust No.1[USD] (*3)

Securities investment
and others

80.0

Korea

March 31

WooriG Global Mid-market Secondaries Private Placement Investment Trust No.1 (EUR) (*3)

Securities investment
and others

80.0

Korea

March 31

Held by Woori Financial Capital Co., Ltd.

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

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

Other financial
services

—

Japan

March 31

(*1)	The entity was merged with WB Finance Co., Ltd., which is a second-tier subsidiary, 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, 2021.

(*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 2021, the Company acquired a 100% equity of Woori Financial Savings Bank from the company’s subsidiary Woori Financial Capital Co., Ltd. which makes a business combination under the same control. For business combinations under the same control, the company accounts the business combination in the carrying amount method, and the assets and liabilities transferred are measured at the carrying amount included in the consolidated financial statements. The amounts of assets and liabilities transferred due to the business combination are 1,119,371 million won and 1,084,771 million, respectively.

(*8)	As a master-feeder fund, the equity ratio is the equity of the subsidiary in parent fund.

- 15 -

(3)	The Group has not consolidated the following entities as of March 31, 2021 and December 31, 2020 despite having more than 50% ownership interest:


	As of March 31, 2021
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
Kiwoom-Harmony Private Placement Investment Trust No.2 (*)	Korea	Securities Investment		96.3
Kiwoom-Harmony Private Placement Investment Trust No.1 (*)	Korea	Securities Investment		95.7
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		99.3
KIM Private Investment Trust 110 (Bond) (*)	Korea	Securities Investment		50.0
Hangang Green New Deal Environment Private Fund Special Investment Trust (*)	Korea	Securities Investment		50.0

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


	As of December 31, 2020
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
Kiwoom-Harmony Private Placement Investment Trust No.2 (*)	Korea	Securities Investment		96.3
Kiwoom-Harmony Private Placement Investment Trust No.1 (*)	Korea	Securities Investment		95.7
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		99.3

(*)	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.

- 16 -

(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 and 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		389,831,636		366,382,909		8,038,046		589,370			633,592
Woori Card Co., Ltd.		11,713,174		9,585,956		394,659		71,971			74,898
Woori Financial Capital Co., Ltd.		8,242,006		7,383,943		205,407		34,984			35,907
Woori Investment Bank Co., Ltd.		4,881,514		4,344,456		66,687		17,005			16,920
Woori Asset Trust Co., Ltd.		197,840		60,824		18,876		8,930			8,924
Woori Asset Management Corp.		139,997		25,248		7,586		1,700			1,700
Woori Savings Bank		1,258,484		1,147,681		18,315		4,203			3,801
Woori Credit Information Co., Ltd.		40,494		10,053		8,841		(24	)		(24	)
Woori Fund Service Co., Ltd.		19,303		2,547		3,609		740			740
Woori Private Equity Asset Management Co., Ltd.		38,031		1,623		980		393			384
Woori Global Asset Management Co., Ltd.		37,376		9,470		2,801		(222	)		(222	)
Woori FIS Co., Ltd.		96,196		63,332		68,039		(4,980	)		(5,038	)
Woori Finance Research Institute Co., Ltd.		6,622		3,078		1,705		5			1


	As of and for the year ended December 31, 2020
Subsidiaries	Assets		Liabilities		Operating revenue		Net income(loss) attributable to owners			Comprehensive income(loss) attributable to owners
Woori Bank		374,310,415		350,790,158		26,838,766		1,363,224			1,295,302
Woori Card Co., Ltd.		11,366,596		9,312,986		1,388,208		120,230			118,109
Woori Financial Capital Co., Ltd. (*)		8,880,117		8,053,840		218,945		(30,349	)		(38,293	)
Woori Investment Bank Co., Ltd.		4,332,474		3,803,594		256,079		62,937			62,275
Woori Asset Trust Co., Ltd.		185,634		56,396		79,426		35,312			35,954
Woori Asset Management Corp.		136,460		23,411		26,158		6,797			6,313
Woori Credit Information Co., Ltd.		40,860		9,830		40,010		1,879			1,600
Woori Fund Service Co., Ltd.		18,957		2,172		13,346		2,563			2,563
Woori Private Equity Asset Management Co., Ltd.		38,035		2,009		4,773		823			768
Woori Global Asset Management Co., Ltd.		37,935		9,807		10,652		(1,449	)		(1,449	)
Woori FIS Co., Ltd.		97,479		59,577		249,169		2,013			1,935
Woori Finance Research Institute Co., Ltd.		7,232		3,689		6,223		105			95

(*)	Net income(loss) attributable to owners of Woori Financial Capital for the year ended December 31, 2020 has been prepared on a cumulative basis since the entity was included as the subsidiary.

- 17 -

(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, 2021 and December 31, 2020, the Group provides 2,615,888 million Won and 2,547,148 million Won of credit facilities, respectively, for the structured entities mentioned above. As of March 31, 2021 and December 31, 2020, the purchase commitment amount is 1,332,305 million Won and 854,231 million Won, respectively.

- 18 -

(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 Korean 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 the structured entities recognize 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. ‘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, 2021 and December 31, 2020 are 330,681 million Won and 427,375 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, 2021 and December 31, 2020, the purchase commitment amount is 4,477,805 million Won and 4,266,319 million Won, respectively.

- 19 -


	March 31, 2021
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		3,193,391		78,955,103		56,498,129		963,772
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		498,245		4,334,600		3,777,246		23,018
Financial assets at FVTPL		346,038		57,699		3,279,336		8,872
Financial assets at FVTOCI		40,013		41,177		—		—
Financial assets at amortized cost		111,060		4,226,093		39,955		14,146
Investments in joint ventures and associates		—		5,924		457,955		—
Derivative assets		1,134		3,707		—		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		85		882		574		400
Derivative liabilities		—		152		574		—
Other liabilities(provisions)		85		730		—		400
The maximum exposure to risks		644,650		5,306,668		3,777,335		83,393
Investment assets		498,245		4,334,600		3,777,246		23,018
Credit facilities and others		146,405		972,068		89		60,375
Loss recognized on unconsolidated structured entities		—		1,223		10,243		2


	December 31, 2020
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		3,900,254		69,010,369		44,629,638		76,772
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		648,700		4,291,535		3,350,605		22,402
Financial assets at FVTPL		374,231		167,271		2,922,716		—
Financial assets at FVTOCI		163,808		41,378		—		—
Financial assets at amortized cost		109,008		4,072,321		39,955		22,402
Investments in joint ventures and associates		—		5,958		387,902		—
Derivative assets		1,653		4,607		32		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		130		963		—		400
Other liabilities(provisions)		130		963		—		400
The maximum exposure to risks		970,628		5,366,037		3,438,924		65,722
Investment assets		648,700		4,291,535		3,350,605		22,402
Credit facilities and others		321,928		1,074,502		88,319		43,320
Loss recognized on unconsolidated structured entities		—		6,079		25,454		2,363

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(7)	As of March 31, 2021 and December 31, 2020, 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, 2021		December 31, 2020
Woori Bank (*)		3,105,070		3,105,070
Woori Financial Capital Co., Ltd.		150,868		166,369
Woori Investment Bank Co., Ltd.		225,311		222,289
Woori Asset Trust Co., Ltd.		51,837		49,738
Woori Asset Management Corp		31,786		31,369
PT Bank Woori Saudara Indonesia 1906 Tbk		82,226		79,890
Wealth Development Bank		20,238		19,521

(*)	Hybrid securities issued by Woori Bank

Net income attributable to non-controlling interests


	For the three-month periods ended March 31
	2021		2020
Woori Bank (*)		28,132		29,213
Woori Financial Capital Co., Ltd.		11,699		—
Woori Investment Bank Co., Ltd.		6,668		5,426
Woori Asset Trust Co., Ltd.		2,466		2,652
Woori Asset Management Corp		417		179
PT Bank Woori Saudara Indonesia 1906 Tbk		2,135		1,891
Wealth Development Bank		238		185

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

Dividends to non-controlling interests


	For the three-month periods ended March 31
	2021		2020
Woori Bank (*)		28,132		29,213
Woori Financial Capital Co., Ltd.		4,121		—
Woori Investment Bank Co., Ltd.		3,610		—
Woori Asset Trust Co., Ltd		365		365
PT Bank Woori Saudara Indonesia 1906 Tbk		1,262		—

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

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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 (Korean IFRS). The accompanying consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements. The Group’s condensed consolidated interim financial statements are condensed interim financial statements prepared in applying International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) 1034 Interim Finance Reporting for some of periods in which the annual consolidated financial statements belong. It is necessary to use the Group’s annual consolidated financial statements for the year ended December 31, 2020 for understanding of the accompanying condensed consolidated interim financial statements.

(1)	From the accounting period beginning on January 1, 2021, the Group has newly applied the following standards and interpretations.

Korean IFRS 1109 ‘Financial Instruments’, Korean IFRS 1039 ‘Financial Instruments : Recognition and Measurement, Korean IFRS 1107 ‘Financial Instruments: Disclosures’, Korean IFRS 1104 ‘Insurance Contracts’ and Korean IFRS 1116 ‘Lease’; Interest Rate Benchmark Reform-Phase 2

The amendment indicates that the effective interest rate shall be adjusted rather than the carrying amount when changing the interest rate benchmark for financial instruments measured at amortized cost. In addition, it allows hedge accounting to continue without interruption even when changes to interest rate benchmark occur in the hedging relationship. The amendment does not have a significant impact on the consolidated financial statements. The Group has applied ‘Interest Rate Benchmark Reform-Phase 2’, which is an amendment to Korean IFRS

1109, 1039, 1107 and 1116, beginning on January 1, 2021. In accordance with the transition provisions, the amendments were applied retrospectively to the hedging relationship and financial instruments. The comparative financial statements have not been restated and there is no effect of the adoption of the amendments on the beginning balance of reserves.

① Hedging relationship

The Phase 2 amendments address issues arising from ‘Interest Rate Benchmark Reform-Phase 1’, including when the designation and documentation of hedges should be updated and when alternative rates are permitted as hedged risk. The Phase 1 amendments include an exceptional regulation that temporarily mitigates the application of specific hedge accounting requirements to hedging relationships directly affected by ‘Interest Rate Benchmark Reform’. Due to this mitigation, ‘Interest Rate Benchmark Reform’ typically does not stop hedge accounting until there is a change of the contract. However, hedge ineffectiveness continues to be recorded in the income statement. It also suggests when the application of these exceptions should end, for instance, exceptional regulation should end when uncertainties due to ‘Interest Rate Benchmark Reform’ no longer appear.

For the period beginning January 1, 2021, the Group has applied the following hedge accounting mitigation provisions provided in the Phase 2 amendments:

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Designation of a hedging relationship: When the Phase 1 amendments cause to apply, the Group will reflect the changes required by the Interest Rate Benchmark Reform by amending the formal designation of the hedging relationship as previously documented to make one or more of these changes: will amend the designation of a hedging relationship to reflect the changes required by the Interest Rate Benchmark Reform when there is a change in one or more of the followings:

•

Designating the alternative benchmark rate (contractually or non-contractually specified) as a hedged risk;

•

Amending the description of the hedged item so it refers to the alternative benchmark rate; or

•

Amending the description of the hedging instrument.

The Group will amend the hedging relationship documentation to reflect these amendments by the end of the reporting period during which the changes are made. These amendments do not require the discontinuance of the hedging relationship.

② Financial instruments measured at amortized cost

For financial instruments measured at amortized cost(including financial assets at FVTOCI-debt instruments), the Phase 2 amendments do not require the financial instrument to recognize gains or losses from the change because the change in the contractual cash flow basis required by the interest rate reform is reflected by adjusting the effective interest rate.

A similar practical expedient exists for lease liabilities. This practical expedient is applicable only to changes required by interest rate indicator reform. When the changes are necessary as a direct result of Interest Rate Benchmark Reform and the new criteria for determining contractual cash flows are economically equivalent to the previous one, it is considered as a required change due to Interest Rate Benchmark Reform.

If some or all of the changes in the instrument’s contractual cash flow calculation criteria do not meet the above criteria, the Group shall first apply the practical expedient to the changes made under the Interest Rate Benchmark Reform and then apply the general financial instrument requirements(In other words, the entity shall determine whether a modification or elimination is made and recognizes immediately in profit or loss any modification on financial instrument which has not been eliminated).

For lease liabilities which basis for determining contractual cash flows is changed, as a practical expedient, the lease liabilities are remeasured at a discount rate that reflects the change in interest rates due to the Interest Rate Benchmark Reform. If an additional lease change is made in addition to the lease changes required by the Interest Rate Benchmark Reform, the general requirements of Korean IFRS 1116 apply to the accounting for all simultaneous lease changes, including those required by the Interest Rate Benchmark Reform.

- 23 -

The details of 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 at the carrying amount, while the derivative financial instrument and commitments/financial guarantee is at the nominal amount.


	USD		EUR		GBP		JPY		CHF		Total
Non-derivative financial assets
Financial assets at FVTOCI		601,567		—		—		—		—		601,567
Financial assets at amortized cost		3,374,127		73,079		117,499		5,427,745		—		8,992,450

Sub-total		3,975,694		73,079		117,499		5,427,745		—		9,594,017

Non-derivative financial liabilities
Financial liabilities at amortized cost		571,284		—		—		—		—		571,284
Derivative finance
Interest rate related(trading)		23,354,298		—		391,751		592,975		1,203		24,340,227
Currency related(trading)		41,725,086		—		396,424		172,810		—		42,294,320
Interest rate related(hedging)		2,096,975		—		—		—		—		2,096,975

Sub-total		67,176,359		—		788,175		765,785		1,203		68,731,522

Commitments and financial guarantee		3,866		—		—		143,826		—		147,692

Amendments to Korean IFRS 1116 Lease—Covid-19 related rent concession continuously offered after June 30, 2021

As a practical expedient, a lessee may elect not to assess whether a rent concession occurring as a direct consequence of the COVID-19 pandemic is a lease modification. The scope of the practical expedient has been expanded to reduce lease fees that affect lease payments due on or before June 30, 2022. Lessee should consistently apply practical expedients to contracts with similar characteristics in similar circumstances.

(2)	The details of Korean IFRSs that have been issued and published since January 1, 2021 but have not yet reached the effective date are as follows:

Amendments to Korean IFRS 1103 Business Combination – Definition of a Business 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 Korean IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets, and Korean 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 Korean 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.

- 24 -

Amendments to Korean 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 Korean IFRS 2018-2020

Annual improvements of Korean IFRS 2018-2020 Cycle 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.

•

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

•

Korean IFRS 1109 Financial Instruments - Fees related to the 10% test for derecognition of financial liabilities

•

Korean IFRS 1116 Leases- Lease incentives

•

Korean IFRS 1041 Agriculture - Measuring fair value

Amendments to Korean 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 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, 2020, 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 -

3.	SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

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, and uncertainties in recovery or deterioration will persist.

The Group will continue to assess the adequacy of forward-looking information related to the duration of the impact of COVID-19 on economy and government policies.

The Bank determined that the credit risk of loans affected by the loan deferment has significantly increased; and evaluated that the possibility of default is high. As a result, total loans (Loans, payment guarantees) that are subject to loan deferment and interest deferment amount to 2,066,301 million Won, and expected credit loss allowance have increased for 17,117 million Won.

Total loans (Loans, payment guarantees) that are subject to loan deferment and interest deferment consist of corporate loan of 1,921,959 million Won and retail loan of 144,342 million Won. Among total loans, loans changed its stage from 12-month to lifetime (Stage 2) expected credit losses amount to 1,917,357 million Won, which consist of corporate loan of 1,798,313 million Won and retail loan of 119,044 million Won.

As of March 31, 2021, Woori Card has 8,050 million Won in financial assets at amortized cost related to borrowers eligible for financial support, and the additional provision is 182 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 important decisions made by management on the application of accounting policy of the Group and the main sources of estimation uncertainty in preparing condensed consolidated interim financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2020, unless otherwise stated.

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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 and 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.

- 27 -

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, 2021 and December 31, 2020 is as follows (Unit: Korean Won in millions):


		March 31, 2021		December 31, 2020
Loans and other financial assets at amortized cost (*1)	Korean treasury and government agencies		19,669,326		9,725,719
	Banks		18,195,425		19,493,188
	Corporates		119,911,374		114,131,996
	Consumers		179,981,344		176,755,175

	Sub-total		337,757,469		320,106,078

Financial assets at FVTPL (*2)	Deposit		66,266		48,796
	Debt securities		3,502,830		2,887,097
	Loans		476,584		676,291
	Derivative assets		4,362,548		6,901,742

	Sub-total		8,408,228		10,513,926

Financial assets at FVTOCI	Debt securities		29,698,609		28,948,141
Securities at amortized cost	Debt securities		16,275,197		17,020,839
Derivative assets	Derivative assets (Designated for hedging)		149,418		174,820
Off-balance accounts	Guarantees (*3)		12,127,827		11,809,456
	Loan commitments		115,036,099		112,088,680

	Sub-total		127,163,926		123,898,136

	Total		519,452,847		500,661,940

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

(*2)	Puttable financial instruments are not included.

(*3)	As of March 31, 2021 and December 31, 2020, the financial guarantee amount of 4,053,785 million Won and 4,163,382 million Won are included, respectively.

- 28 -

a) Credit risk exposure by geographical areas

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


	March 31, 2021
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		313,132,814		4,275,538		4,196,223		2,039,335		1,111,711		13,001,848		337,757,469
Securities at amortized cost		16,050,605		34,354		33,933		—		—		156,305		16,275,197
Financial assets at FVTPL		6,382,604		13,361		801,455		235,851		169,445		805,512		8,408,228
Financial assets at FVTOCI		26,119,371		1,091,878		1,153,422		4,394		25,804		1,303,740		29,698,609
Derivative assets (Designated for hedging)		—		—		139,646		3,908		—		5,864		149,418
Off-balance accounts		123,595,084		1,072,381		422,200		41,360		46,024		1,986,877		127,163,926

Total		485,280,478		6,487,512		6,746,879		2,324,848		1,352,984		17,260,146		519,452,847

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


	December 31, 2020
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		296,186,751		4,356,747		3,988,304		1,990,490		1,404,670		12,179,116		320,106,078
Securities at amortized cost		16,749,531		—		110,597		—		—		160,711		17,020,839
Financial assets at FVTPL		6,954,630		13,403		1,083,096		493,285		480,760		1,488,752		10,513,926
Financial assets at FVTOCI		25,966,333		608,893		1,092,636		5		5,460		1,274,814		28,948,141
Derivative assets (Designated for hedging)		—		—		165,458		3,740		—		5,622		174,820
Off-balance accounts		119,699,069		1,393,734		399,678		38,389		41,378		2,325,888		123,898,136

Total		465,556,314		6,372,777		6,839,769		2,525,909		1,932,268		17,434,903		500,661,940

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

Credit risk exposure by industries

①

The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of March 31, 2021 and December 31, 2020 (Unit: Korean Won in millions):


	March 31, 2021
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		59,020,737		35,580,021		43,633,152		3,767,989		175,193,247		20,562,323		337,757,469
Securities at amortized cost		451,795		6,650		8,160,978		261,992		—		7,393,782		16,275,197
Financial assets at FVTPL		182,054		144,011		6,467,153		17,458		9,616		1,587,936		8,408,228
Financial assets at FVTOCI		399,077		233,107		21,674,437		165,999		—		7,225,989		29,698,609
Derivative assets (Designated for hedging)		—		—		149,418		—		—		—		149,418
Off-balance accounts		18,971,473		21,190,767		10,838,259		3,406,166		66,378,228		6,379,033		127,163,926

Total		79,025,136		57,154,556		90,923,397		7,619,604		241,581,091		43,149,063		519,452,847


	December 31, 2020
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		56,627,927		35,933,953		35,450,774		3,493,000		172,116,780		16,483,644		320,106,078
Securities at amortized cost		492,172		6,691		8,926,909		302,225		—		7,292,842		17,020,839
Financial assets at FVTPL		301,296		234,712		8,520,127		32,240		14,619		1,410,932		10,513,926
Financial assets at FVTOCI		475,881		207,903		23,017,149		142,396		—		5,104,812		28,948,141
Derivative assets (Designated for hedging)		—		—		174,820		—		—		—		174,820
Off-balance accounts		18,828,656		21,460,581		12,086,935		4,060,358		62,477,117		4,984,489		123,898,136

Total		76,725,932		57,843,840		88,176,714		8,030,219		234,608,516		35,276,719		500,661,940

- 29 -

②

The detailed industries of financial assets and corporate loans that might get affected by the spread of COVID-19 as of March 31, 2021 and December 31, 2020 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, 2021
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		1,006,794		2,587		5,690
		General wholesale business		1,465,944		1,346		—
		Sub-total		2,472,738		3,933		5,690
	Accommodation business			1,613,159		4,182		5,700
	Travel business			62,853		—		—
	Art/sports, leisure service			1,490,969		9,640		—
	Food business			1,134,120		927		—
	Transportation business			362,787		334		—
	Education business			398,394		239		—
	Others			1,354,334		1,772		6,830
	Sub-total			8,889,354		21,027		18,220
Manufacturing	Textile			2,472,433		2,528		—
	Metal			1,376,619		8,452		—
	Non-metal			711,046		4,631		—
	Chemical			1,852,008		9,068		—
	Transportation			3,701,044		1,617		—
	Electronics			1,413,869		11,777		—
	Cosmetics			334,930		385		—
	Others			472,985		178		—
	Sub-total			12,334,934		38,636		—

	Total			21,224,288		59,663		18,220


			March 31, 2021
			Off-balance accounts		Total
Service business	Distribution business	General retail business		957,374		1,972,445
		General wholesale business		488,053		1,955,343
		Sub-total		1,445,427		3,927,788
	Accommodation business			153,528		1,776,569
	Travel business			15,654		78,507
	Art/sports, leisure service			121,640		1,622,249
	Food business			155,156		1,290,203
	Transportation business			240,256		603,377
	Education business			55,575		454,208
	Others			303,188		1,666,124
	Sub-total			2,490,424		11,419,025
Manufacturing	Textile			1,025,369		3,500,330
	Metal			1,569,538		2,954,609
	Non-metal			312,695		1,028,372
	Chemical			3,236,070		5,097,146
	Transportation			2,083,125		5,785,786
	Electronics			1,773,661		3,199,307
	Cosmetics			48,869		384,184
	Others			1,246,294		1,719,457
	Sub-total			11,295,621		23,669,191

	Total			13,786,045		35,088,216

- 30 -


			December 31, 2020
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		1,070,789		11,944		5,461
		General wholesale business		1,407,563		3,573		—
		Sub-total		2,478,352		15,517		5,461
	Accommodation business			1,525,157		9,305		5,471
	Travel business			59,858		—		—
	Art/sports, leisure service			1,467,643		17,739		—
	Food business			1,078,832		2,515		—
	Transportation business			395,873		461		8,752
	Education business			367,701		489		—
	Others			1,286,578		2,691		—
	Sub-total			8,659,994		48,717		19,684
Manufacturing	Textile			2,281,344		6,608		6,559
	Metal			1,390,290		47,903		—
	Non-metal			698,478		8,357		—
	Chemical			1,819,207		19,161		—
	Transportation			3,268,095		2,060		—
	Electronics			1,424,297		19,280		—
	Cosmetics			323,231		217		—
	Others			368,123		277		—
	Sub-total			11,573,065		103,863		6,559

	Total			20,233,059		152,580		26,243


			December 31, 2020
			Off-balance accounts		Total
Service business	Distribution business	General retail business		897,101		1,985,295
		General wholesale business		483,360		1,894,496
		Sub-total		1,380,461		3,879,791
	Accommodation business			152,059		1,691,992
	Travel business			21,350		81,208
	Art/sports, leisure service			114,388		1,599,770
	Food business			135,680		1,217,027
	Transportation business			193,578		598,664
	Education business			48,064		416,254
	Others			318,641		1,607,910
	Sub-total			2,364,221		11,092,616
Manufacturing	Textile			1,064,005		3,358,516
	Metal			1,581,887		3,020,080
	Non-metal			377,506		1,084,341
	Chemical			3,233,405		5,071,773
	Transportation			2,183,616		5,453,771
	Electronics			1,789,605		3,233,182
	Cosmetics			54,518		377,966
	Others			1,483,551		1,851,951
	Sub-total			11,768,093		23,451,580

	Total			14,132,314		34,544,196

- 31 -

< Woori Card Co., Ltd. >


	March 31, 2021
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		1,825		—		—		12,988		14,813
Travel business		2,036		—		—		25,279		27,315
Aviation		429		—		—		4,186		4,615
Cosmetics industry		2,506		—		—		13,763		16,269
Distribution business		6,537		—		—		45,193		51,730
Food industry		29,293		—		—		163,464		192,757
Art/sports, leisure service		6,632		—		—		51,447		58,079
Total		49,258		—		—		316,320		365,578


	December 31, 2020
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		4,959		—		—		12,315		17,274
Travel business		2,175		—		—		25,367		27,542
Aviation		479		—		—		4,179		4,658
Cosmetics industry		2,462		—		—		13,376		15,838
Distribution business		8,050		—		—		44,354		52,404
Food industry		33,084		—		—		163,711		196,795
Art/sports, leisure service		6,156		—		—		51,962		58,118
Total		57,365		—		—		315,264		372,629

- 32 -


			March 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		12,617		—		—
		General wholesale business		160,140		—		—
		Sub-total		172,757		—		—
	Accommodation business			29,938		—		—
	Travel business			1,704		—		—
	Art/sports, leisure service			384		—		—
	Food business			1,043		—		—
	Transportation business			45,234		—		—
	Education business			1,365		—		—
	Others			201,059		—		—
	Sub-total			453,484		—		—
Manufacturing	Textile			3,419		—		—
	Metal			17,089		—		—
	Non-metal			15,798		—		—
	Chemical			3,802		—		—
	Transportation			57,127		—		—
	Electronics			8,506		—		—
	Cosmetics			325		—		—
	Others			36,132		—		—
	Sub-total			142,198		—		—
Total COVID-19 vulnerable business				595,682		—		—
Other business	Others			5,677,920		15,100		—

	Total			6,273,602		15,100		—


			March 31, 2021
			Off-balance accounts		Total
Service business	Distribution business	General retail business		—		12,617
		General wholesale business		—		160,140
		Sub-total		—		172,757
	Accommodation business			—		29,938
	Travel business			—		1,704
	Art/sports, leisure service			—		384
	Food business			—		1,043
	Transportation business			—		45,234
	Education business			—		1,365
	Others			28,544		229,603
	Sub-total			28,544		482,028
Manufacturing	Textile			—		3,419
	Metal			—		17,089
	Non-metal			—		15,798
	Chemical			—		3,802
	Transportation			—		57,127
	Electronics			—		8,506
	Cosmetics			—		325
	Others			1,486		37,618
	Sub-total			1,486		143,684
Total COVID-19 vulnerable business				30,030		625,712
Other business	Others			870,684		6,563,704

	Total			900,714		7,189,416

- 33 -


			December 31, 2020
			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		8,978		—		—
		General wholesale business		57,587		—		—
		Sub-total		66,565		—		—
	Accommodation business			6,292		—		—
	Travel business			1,293		—		—
	Art/sports, leisure service			615		—		—
	Food business			21,774		—		—
	Transportation business			28,270		—		—
	Education business			1,132		—		—
	Others			365,860		27,364		—
	Sub-total			491,801		27,364		—
Manufacturing	Textile			29,415		—		—
	Metal			17,963		—		—
	Non-metal			4,780		—		—
	Chemical			2,501		—		—
	Transportation			52,514		—		—
	Electronics			12,665		—		—
	Others			5,335		—		—
	Sub-total			125,173		—		—
Total COVID-19 vulnerable business				616,974		27,364		—
Other business	Others			6,202,754		225,078		—

	Total			6,819,728		252,442		—


			December 31, 2020
			Off-balance accounts		Total
Service business	Distribution business	General retail business		—		8,978
		General wholesale business		—		57,587
		Sub-total		—		66,565
	Accommodation business			—		6,292
	Travel business			—		1,293
	Art/sports, leisure service			—		615
	Food business			—		21,774
	Transportation business			—		28,270
	Education business			—		1,132
	Others			38,681		431,905
	Sub-total			38,681		557,846
Manufacturing	Textile			—		29,415
	Metal			3,365		21,328
	Non-metal			—		4,780
	Chemical			—		2,501
	Transportation			—		52,514
	Electronics			—		12,665
	Others			—		5,335
	Sub-total			3,365		128,538
Total COVID-19 vulnerable business				42,046		686,384
Other business	Others			333,766		6,761,598

	Total			375,812		7,447,982

- 34 -

< Woori Investment Bank Co., Ltd. >


	March 31, 2021
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		43,661		—		—		—		43,661
Distribution business		14,503		19,941		—		—		34,444
Art/sports, leisure service		27,299		—		—		—		27,299
Total		85,463		19,941		—		—		105,404


	December 31, 2020
	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		44,900		—		—		—		44,900
Distribution business		15,716		20,000		—		—		35,716
Art/sports, leisure service		28,000		—		—		—		28,000
Total		88,616		20,000		—		—		108,616

- 35 -

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, 2021 and December 31, 2020 is as follows (Unit: Korean Won in millions):


	March 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		292,870,341		24,132,609		11,330,419		9,917,557		1,537,366		339,788,292		(2,030,823	)		337,757,469
Korean treasury and government agencies		19,620,948		881		52,300		—		—		19,674,129		(4,802	)		19,669,327
Banks		17,349,390		811,286		45,125		—		—		18,205,801		(10,377	)		18,195,424
Corporates		97,828,200		16,617,454		2,297,180		3,611,073		826,422		121,180,329		(1,268,956	)		119,911,373
General business		63,435,725		10,053,282		1,714,086		2,378,801		590,157		78,172,051		(922,318	)		77,249,733
Small- and medium-sized enterprise		28,891,269		6,018,927		579,923		1,169,600		200,015		36,859,734		(299,770	)		36,559,964
Project financing and others		5,501,206		545,245		3,171		62,672		36,250		6,148,544		(46,868	)		6,101,676
Consumers		158,071,803		6,702,988		8,935,814		6,306,484		710,944		180,728,033		(746,688	)		179,981,345
Securities at amortized cost		16,279,577		—		—		—		—		16,279,577		(4,380	)		16,275,197
Financial assets at FVTOCI (*3)		29,535,849		162,760		—		—		—		29,698,609		(9,702	)		29,698,609

Total		338,685,767		24,295,369		11,330,419		9,917,557		1,537,366		385,766,478		(2,044,905	)		383,731,275


	March 31, 2021
	Collateral value
	Stage1		Stage2		Stage3		Total
Loans and other financial assets at amortized cost		195,312,852		16,254,951		681,156		212,248,959
Korean treasury and government agencies		19,217		—		—		19,217
Banks		1,119,546		—		—		1,119,546
Corporates		68,635,132		4,139,408		415,451		73,189,991
General business		38,354,905		2,737,977		306,812		41,399,694
Small- and medium-sized enterprise		27,739,109		1,399,751		97,531		29,236,391
Project financing and others		2,541,118		1,680		11,108		2,553,906
Consumers		125,538,957		12,115,543		265,705		137,920,205
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		195,312,852		16,254,951		681,156		212,248,959

(*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.

- 36 -


	December 31, 2020
	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		278,729,012		21,249,885		10,356,251		10,143,839		1,623,276		322,102,263		(1,996,185	)		320,106,078
Korean treasury and government agencies		9,674,891		1,063		52,279		—		—		9,728,233		(2,514	)		9,725,719
Banks		19,301,570		105,890		75,876		—		25,598		19,508,934		(15,745	)		19,493,189
Corporates		93,889,922		14,873,376		1,890,564		3,860,389		839,234		115,353,485		(1,221,491	)		114,131,994
General business		61,082,336		9,013,955		1,349,053		2,585,868		576,078		74,607,290		(869,744	)		73,737,546
Small- and medium-sized enterprise		27,504,992		5,415,312		538,909		1,207,706		227,003		34,893,922		(304,077	)		34,589,845
Project financing and others		5,302,594		444,109		2,602		66,815		36,153		5,852,273		(47,670	)		5,804,603
Consumers		155,862,629		6,269,556		8,337,532		6,283,450		758,444		177,511,611		(756,435	)		176,755,176
Securities at amortized cost		17,025,405		—		—		—		—		17,025,405		(4,566	)		17,020,839
Financial assets at FVTOCI (*3)		28,789,281		158,860		—		—		—		28,948,141		(9,631	)		28,948,141

Total		324,543,698		21,408,745		10,356,251		10,143,839		1,623,276		368,075,809		(2,010,382	)		366,075,058


	December 31, 2020
	Collateral value
	Stage1		Stage2		Stage3		Total
Loans and other financial assets at amortized cost		187,731,443		15,677,871		696,709		204,106,023
Korean treasury and government agencies		19,280		—		—		19,280
Banks		1,003,971		—		—		1,003,971
Corporates		62,817,305		3,963,101		400,340		67,180,746
General business		35,578,470		2,670,480		271,815		38,520,765
Small- and medium-sized enterprise		25,404,002		1,290,941		118,265		26,813,208
Project financing and others		1,834,833		1,680		10,260		1,846,773
Consumers		123,890,887		11,714,770		296,369		135,902,026
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		187,731,443		15,677,871		696,709		204,106,023

(*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.

- 37 -

Guarantees and commitments

The credit quality of the guarantees and loan commitments as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 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		11,066,660		792,876		28,063		168,247		71,981		12,127,827
Loan Commitments		108,643,033		3,362,891		2,094,752		932,548		2,875		115,036,099

Total		119,709,693		4,155,767		2,122,815		1,100,795		74,856		127,163,926

(*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, 2020
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		10,152,900		1,382,592		11,504		191,962		70,498		11,809,456
Loan Commitments		105,108,967		4,045,595		1,951,649		977,185		5,284		112,088,680

Total		115,261,867		5,428,187		1,963,153		1,169,147		75,782		123,898,136

(*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, 2021 and for the year ended December 31, 2020, 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.

- 38 -

(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, 2021 and for the year ended December 31, 2020, and the VaR of the Bank as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021			For the three-month period ended March 31, 2021									December 31, 2020			For the year ended December 31, 2020
Risk factor	March 31, 2021			Average			Maximum			Minimum			December 31, 2020			Average			Maximum			Minimum
Interest rate		2,849			7,535			14,017			2,704			6,815			7,959			15,065			2,427
Stock price		2,535			3,710			6,423			1,797			2,283			5,783			14,394			1,982
Foreign currencies		5,475			10,629			13,144			4,849			11,160			8,814			11,233			4,613
Diversification		(4,835	)		(11,956	)		(19,754	)		(4,005	)		(11,087	)		(11,175	)		(18,796	)		(3,452	)

Total VaR(*)		6,024			9,918			13,830			5,345			9,171			11,381			21,896			5,570

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

- 39 -

Non-trading activities

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

DNII represents a change innet interest income that may occur over a certain period (e.g. one year) due to changes in net interest income, and DEVE 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.

DEVE and DNII calculated on interest risk in banking book(IRRBB) basis for assets and liabilities by subsidiary as of the end of March 31, 2021 and December 31, 2020 are as follows(Unit: Korean Won in millions):


	March 31, 2021				December 31, 2020 (*3)
	DEVE (*1)		DNII (*2)		DEVE (*1)		DNII (*2)
Woori Bank		756,566		38,260		634,596		66,138
Woori Card Co., Ltd.		103,537		27,205		—		—
Woori Financial Capital Co., Ltd.		47,571		173		—		—
Woori Investment Bank Co., Ltd.		8,579		6,121		—		—
Woori Asset Trust Co., Ltd.		788		850		—		—
Woori Asset Management Corp.		1,496		225		—		—
Woori Savings Bank		11,038		242		—		—
Woori Private Equity Asset Management Co., Ltd.		878		64		—		—
Woori Global Asset Management Co., Ltd.		369		59		—		—

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

(*2)	DNII: change in Net Interest Income

(*3)	As of December 31, 2020, for the remaining subsidiaries except the bank, consolidated trusts, and consolidated subsidiaries of the bank, EVE and NII were not calculated.

For the remaining subsidiaries except the Bank, consolidated trusts, and consolidated subsidiaries of the Bank as of December 31, 2020, the interest rate EaR and VaR calculated based on the BIS Framework are as follows (Unit: Korean Won in millions):


	December 31, 2020
	EaR (*1)		VaR (*2)
Woori Card Co., Ltd.		106,645		157,085
Woori Financial Capital Co., Ltd.		3,701		12,550
Woori Investment Bank Co., Ltd.		1,479		5,005
Woori Asset Trust Co., Ltd.		3,211		398
Woori Asset Management Corp.		64		493
Woori Private Equity Asset Management Co., Ltd.		193		37
Woori Global Asset Management Co., Ltd.		119		318

(*1)	EaR (Earning at Risk): Change of maximum expected income and expense

(*2)	VaR (Value at Risk): Maximum expected losses

- 40 -

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, 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		178,526,455		49,707,111		11,491,408		15,962,264		65,297,986		5,902,194		326,887,418
Financial assets at FVTPL		571,104		52,420		55,087		42,177		265,515		21,312		1,007,615
Financial assets at FVTOCI		4,365,723		3,287,909		2,232,078		3,168,049		16,695,000		465,061		30,213,820
Securities at amortized cost		1,593,537		928,967		1,859,638		1,131,489		10,356,846		1,080,477		16,950,954

Total		185,056,819		54,976,407		15,638,211		20,303,979		92,615,347		7,469,044		375,059,807

Liability:
Deposits due to customers		132,744,772		44,173,222		40,944,579		24,492,917		56,330,327		104,065		298,789,882
Borrowings		10,653,724		3,113,232		1,026,086		924,025		4,100,234		450,572		20,267,873
Debentures		3,592,208		4,017,007		3,363,593		2,738,276		24,050,275		2,992,336		40,753,695

Total		146,990,704		51,303,461		45,334,258		28,155,218		84,480,836		3,546,973		359,811,450


	December 31, 2020
	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		177,214,415		54,035,826		12,410,513		11,140,520		64,799,854		5,170,572		324,771,700
Financial assets at FVTPL		609,542		263,510		91,791		94,879		150,148		13,239		1,223,109
Financial assets at FVTOCI		4,344,718		3,339,086		3,751,882		2,915,238		14,648,033		473,124		29,472,081
Securities at amortized cost		1,372,094		1,471,309		933,715		1,869,352		11,080,632		1,018,002		17,745,104

Total		183,540,769		59,109,731		17,187,901		16,019,989		90,678,667		6,674,937		373,211,994

Liability:
Deposits due to customers		127,557,303		46,471,099		35,455,403		29,354,652		52,395,811		50,655		291,284,923
Borrowings		11,223,338		2,832,846		1,126,728		949,892		3,828,384		452,495		20,413,683
Debentures		3,246,233		3,396,427		3,929,346		3,495,915		21,899,788		3,257,026		39,224,735

Total		142,026,874		52,700,372		40,511,477		33,800,459		78,123,983		3,760,176		350,923,341

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.

- 41 -

Financial instruments in foreign currencies exposed to currency risk as of March 31, 2021 and December 31, 2020 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):


		March 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		4,547		5,153,627		24,308		249,972		4,109		708,198		151		200,402		695,225		7,007,424
	Loans and other financial assets at amortized cost		24,159		27,384,678		121,191		1,245,031		24,242		4,178,168		2,280		3,028,648		4,458,788		40,295,313
	Financial assets at FVTPL		316		358,279		18,007		186,813		82		14,090		289		384,461		72,661		1,016,304
	Financial assets at FVTOCI		2,747		3,113,631		—		—		5,304		914,135		37		49,284		598,560		4,675,610
	Securities at amortized cost		244		277,092		—		—		199		34,366		24		31,452		124,861		467,771

	Total		32,013		36,287,307		163,506		1,681,816		33,936		5,848,957		2,781		3,694,247		5,950,095		53,462,422

Liability	Financial liabilities at FVTPL		353		399,730		24,716		253,919		—		—		254		337,151		190,383		1,181,183
	Deposits due to customers		17,535		19,876,350		206,979		2,126,360		26,710		4,603,422		1,468		1,949,735		3,829,092		32,384,959
	Borrowings		5,012		5,680,656		9,679		99,432		433		74,603		524		696,318		459,964		7,010,973
	Debentures		4,622		5,238,897		—		—		—		—		—		—		400,296		5,639,193
	Other financial liabilities		3,996		4,529,406		4,973		51,087		4,713		812,319		128		170,631		233,630		5,797,073

	Total		31,518		35,725,039		246,347		2,530,798		31,856		5,490,344		2,374		3,153,835		5,113,365		52,013,381

Off-balance accounts			7,334		8,313,475		25,581		262,802		3,141		541,426		536		712,062		607,071		10,436,836


		December 31, 2020
		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		5,584		6,074,879		22,832		240,710		4,580		764,686		115		154,154		501,900		7,736,329
	Loans and other financial assets at amortized cost		21,687		23,595,957		172,782		1,821,554		24,230		4,045,435		2,001		2,678,382		4,857,438		36,998,766
	Financial assets at FVTPL		280		304,146		18,855		198,781		73		11,989		248		332,182		88,745		935,843
	Financial assets at FVTOCI		2,741		2,981,832		—		—		2,601		434,258		37		49,789		565,893		4,031,772
	Securities at amortized cost		319		347,570		—		—		—		—		34		45,197		115,534		508,301

	Total		30,611		33,304,384		214,469		2,261,045		31,484		5,256,368		2,435		3,259,704		6,129,510		50,211,011

Liability	Financial liabilities at FVTPL		426		463,678		14,493		152,792		—		—		158		211,525		115,429		943,424
	Deposits due to customers		16,664		18,130,448		220,153		2,320,983		26,733		4,463,300		1,532		2,050,400		3,443,631		30,408,762
	Borrowings		5,657		6,154,464		48,446		510,750		—		—		590		789,955		697,234		8,152,403
	Debentures		3,973		4,322,800		—		—		—		—		—		—		444,711		4,767,511
	Other financial liabilities		2,381		2,590,147		6,705		70,690		1,853		309,319		64		85,553		193,128		3,248,837

	Total		29,101		31,661,537		289,797		3,055,215		28,586		4,772,619		2,344		3,137,433		4,894,133		47,520,937

Off-balance accounts			7,441		8,095,297		24,992		263,478		3,007		502,106		533		712,846		556,988		10,130,715

- 42 -

(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, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 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		91,174		10,046		31,709		145,350		—		—		278,279
Deposits due to customers		202,939,311		30,930,651		29,328,550		26,647,737		9,201,264		1,793,756		300,841,269
Borrowings		9,037,059		2,966,604		1,972,685		1,579,947		4,316,029		461,907		20,334,231
Debentures		3,592,208		4,017,007		3,363,593		2,738,276		24,050,275		2,976,324		40,737,683
Lease liabilities		48,626		46,366		40,196		29,750		184,148		30,870		379,956
Other financial liabilities		17,924,779		76,388		10,546		10,294		559,815		1,724,166		20,305,988

Total		233,633,157		38,047,062		34,747,279		31,151,354		38,311,531		6,987,023		382,877,406


	December 31, 2020
	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		64,183		135,232		42,418		112,102		—		—		353,935
Deposits due to customers		191,660,253		34,349,298		25,213,410		31,144,452		9,230,904		1,793,143		293,391,460
Borrowings		10,159,819		2,524,572		1,714,490		1,866,810		4,177,634		463,376		20,906,701
Debentures		3,246,233		3,396,427		3,929,346		3,495,915		21,899,788		3,257,228		39,224,937
Lease liabilities		53,429		44,551		40,809		34,761		201,113		34,780		409,443
Other financial liabilities		8,121,978		70,277		10,294		10,897		451,096		2,142,772		10,807,314

Total		213,305,895		40,520,357		30,950,767		36,664,937		35,960,535		7,691,299		365,093,790

- 43 -

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 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		91,174		10,046		31,709		145,350		—		—		278,279
Deposits due to customers		210,270,481		32,873,363		27,511,216		21,823,469		7,787,832		150,129		300,416,490
Borrowings		8,948,026		2,907,290		1,957,937		1,579,947		4,196,669		461,907		20,051,776
Debentures		3,592,208		4,017,007		3,363,593		2,738,276		24,050,275		2,976,324		40,737,683
Lease liabilities		48,969		46,506		40,509		31,147		189,994		32,809		389,934
Other financial liabilities		17,924,666		76,388		10,546		10,294		559,815		1,724,166		20,305,875

Total		240,875,524		39,930,600		32,915,510		26,328,483		36,784,585		5,345,335		382,180,037


	December 31, 2020
	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		68,909		131,496		41,428		112,102		—		—		353,935
Deposits due to customers		199,931,480		35,912,096		23,924,403		25,477,917		7,582,278		105,413		292,933,587
Borrowings		10,159,819		2,524,572		1,714,490		1,866,810		4,177,634		463,376		20,906,701
Debentures		3,246,233		3,396,427		3,929,346		3,495,915		21,899,788		3,257,228		39,224,937
Lease liabilities		53,429		44,894		40,949		35,074		208,125		36,950		419,421
Other financial liabilities		8,121,978		70,277		10,294		10,897		451,096		2,142,772		10,807,314

Total		221,581,848		42,079,762		29,660,910		30,998,715		34,318,921		6,005,739		364,645,895

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, 2021 and December 31, 2020 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, 2021	Cash flow risk hedge		2,815		495			216		(272	)		29,809		—		33,063
	Fair value risk hedge		395		(1,352	)		410		(1,323	)		16,603		—		14,733
	Trading purpose		4,081,530		—			—		—			—		—		4,081,530
December 31, 2020	Cash flow risk hedge		2,655		6,004			515		239			55,744		—		65,157
	Fair value risk hedge		255		(302	)		233		(287	)		126		—		25
	Trading purpose		6,460,472		—			—		—			—		—		6,460,472

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, 2021		December 31, 2020
Guarantees		12,127,827		11,809,456
Loan commitments		115,036,099		112,088,680
Other commitments		4,723,483		4,933,086

- 44 -

(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.

- 45 -

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 Asset Management Corp., Ltd., Woori Savings Bank, 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

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


	For the three-month period ended March 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

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 income(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		389,831,636			11,713,174			8,242,006			4,881,514			25,067,160			439,735,490			(23,631,106	)		416,104,384
Total liabilities		366,382,909			9,585,956			7,383,943			4,344,456			3,124,177			390,821,441			(1,895,387	)		388,926,054

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

(*2)

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

- 46 -


	For the three-month period ended March 31, 2020
	Banking (*1)			Credit card			Investment banking			Others (*2)			Sub-total			Adjustments (*3)			Total
Net interest income		1,127,437			141,972			14,790			963			1,285,162			177,797			1,462,959
Non-interest income(expense)		445,175			7,492			4,424			773,419			1,230,510			(916,713	)		313,797
Impairment losses due to credit loss		(65,511	)		(34,551	)		2,386			(548	)		(98,224	)		(12,668	)		(110,892	)
General and administrative expense		(804,390	)		(48,657	)		(6,691	)		(100,104	)		(959,842	)		67,316			(892,526	)
Net operating income(expense)		702,711			66,256			14,909			673,730			1,457,606			(684,268	)		773,338

Non-operating income(expense)		(22,131	)		(1,139	)		(335	)		(429	)		(24,034	)		3,309			(20,725	)

Net income(expense) before tax		680,580			65,117			14,574			673,301			1,433,572			(680,959	)		752,613
Tax income(expense)		(173,928	)		(14,145	)		(1,220	)		(4,526	)		(193,819	)		(1,023	)		(194,842	)

Net income(loss)		506,652			50,972			13,354			668,775			1,239,753			(681,982	)		557,771
Total assets (*4)		374,120,064			11,366,596			4,332,474			31,872,690			421,691,824			(22,610,807	)		399,081,017
Total liabilities (*4)		348,706,682			9,312,986			3,803,594			9,606,742			371,430,004			925,168			372,355,172

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

(*2)

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

(*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.

(3)

Operating profit or loss from external customers for the three-month periods ended March 31, 2021 and 2020 are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2021		2020
Domestic		852,480		699,594
Foreign		81,032		73,744

Total		933,512		773,338

(4)

Major non-current assets as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021 (*)		December 31, 2020 (*)
Domestic		5,046,376		5,026,161
Foreign		438,713		433,869

Total		5,485,089		5,460,030

(*)	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, 2021 and 2020.

- 47 -

6.	CASH AND CASH EQUIVALENTS

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


	March 31, 2021		December 31, 2020
Cash		3,269,824		1,611,282
Foreign currencies		508,868		514,565
Demand deposits		7,027,972		7,314,353
Fixed deposits		342,425		550,783

Total		11,149,089		9,990,983

7.	FINANCIAL ASSETS AT FVTPL

(1)	Details of financial assets at FVTPL as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021		December 31, 2020
Financial assets at fair value through profit or loss measured at fair value		12,883,899		14,762,941

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


	March 31, 2021		December 31, 2020
Deposits:
Gold banking asset		66,266		48,796
Securities:
Debt securities
Korean treasury and government agencies		1,149,077		1,020,418
Financial institutions		1,236,332		873,031
Corporates		1,095,152		761,681
Others		22,269		231,967
Equity securities		568,177		570,772
Capital contributions		866,232		865,685
Beneficiary certificates		3,041,262		2,812,558

Sub-total		7,978,501		7,136,112

Loans		476,584		676,291
Derivatives assets		4,362,548		6,901,742

Total		12,883,899		14,762,941

The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of March 31, 2021 and December 31, 2020.

- 48 -

8.	FINANCIAL ASSETS AT FVTOCI

(1)	Details of financial assets at FVTOCI as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021		December 31, 2020
Debt securities:
Korean treasury and government agencies		3,970,734		2,922,671
Financial institutions		16,818,781		17,996,660
Corporates		3,767,094		3,896,744
Bond denominated in foreign currencies		4,675,556		4,031,721
Securities loaned		466,444		100,345

Sub-total		29,698,609		28,948,141

Equity securities		1,107,035		1,080,788

Total		30,805,644		30,028,929

(2)	Details of equity securities designated as financial assets at FVTOCI as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


Purpose of acquisition	March 31, 2021		December 31, 2020		Remarks
Investment for strategic business partnership purpose		814,139		778,657
Debt-equity swap		292,891		302,090
Others		5		41	Development Trust management purpose, etc.

Total		1,107,035		1,080,788

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

Allowance for credit losses


	For the 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.


	For the three-month period ended March 31, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(8,569	)		—		—		(8,569	)
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		(12	)		—		—		(12	)
Disposal		151			—		—		151
Others (*)		(90	)		—		—		(90	)

Ending balance		(8,520	)		—		—		(8,520	)

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

- 49 -

Gross carrying amount


	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	)
Loss 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.


	For the three-month period ended March 31, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		26,795,161			—		—		26,795,161
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		5,264,084			—		—		5,264,084
Disposal/ Recovery		(4,898,348	)		—		—		(4,898,348	)
Gain on valuation		46,321			—		—		46,321
Amortization based on effective interest method		19,532			—		—		19,532
Others (*)		136,440			—		—		136,440

Ending balance		27,363,190			—		—		27,363,190

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

(4) 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, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021			December 31, 2020
Korean treasury and government agencies		7,034,237			6,947,495
Financial institutions		4,173,395			4,843,534
Corporates		4,604,173			4,726,075
Bond denominated in foreign currencies		467,772			508,301
Allowance for credit losses		(4,380	)		(4,566	)

Total		16,275,197			17,020,839

- 50 -

(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, 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.


	For the three-month period ended March 31, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(5,511	)		—		—		(5,511	)
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		143			—		—		143
Others (*)		(1	)		—		—		(1	)

Ending balance		(5,369	)		—		—		(5,369	)

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

Gross carrying amount


	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.


	For the three-month period ended March 31, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		20,326,050			—		—		20,326,050
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		1,458,443			—		—		1,458,443
Disposal/ Recovery		(1,781,580	)		—		—		(1,781,580	)
Amortization based on effective interest method		248			—		—		248
Others (*)		19,240			—		—		19,240

Ending balance		20,022,401			—		—		20,022,401

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

- 51 -

10.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

(1)	Details of loans and other financial assets at amortized cost as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021		December 31, 2020
Due from banks		20,783,418		9,863,160
Loans		303,794,836		302,794,182
Other financial assets		13,179,215		7,448,736

Total		337,757,469		320,106,078

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


	March 31, 2021			December 31, 2020
Due from banks in local currency:
Due from Bank of Korea (“BOK”)		17,497,653			6,519,226
Due from depository banks		87,126			84,195
Due from non-depository institutions		365			266
Due from the Korea Exchange		100,156			227
Others		203,092			172,914
Loss allowance		(4,261	)		(1,576	)

Sub-total		17,884,131			6,775,252

Due from banks in foreign currencies:					—
Due from banks on demand		1,410,358			1,608,126
Due from banks on time		209,298			296,489
Others		1,282,382			1,186,083
Loss allowance		(2,751	)		(2,790	)

Sub-total		2,899,287			3,087,908

Total		20,783,418			9,863,160

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


	Counterparty	March 31, 2021		Reason of restriction
Due from banks in local currency:
Due from BOK	BOK		17,497,653	Reserve deposits under BOK Act
Due from KSFC	KB Securities Co. Ltd.		100,156	Futures trading margin
Others	Korea Federation of Savings Banks and others		125,370	Guarantees, mortgage of domestic exchange transactions and others

Sub-total			17,723,179

Due from banks in foreign currencies:
Due from banks on demand	BOK and others		1,406,684	Reserve deposits under BOK Act and others
Due from banks on time	National Bank Cambodia		57	Reserve deposits and others
Others	Korea Investment & Securities and others		1,277,113	Overseas futures and options trade deposits and others

Sub-total			2,683,854

Total			20,407,033

- 52 -


	Counterparty	December 31, 2020		Reason of restriction
Due from banks in local currency:
Due from BOK	BOK		6,519,226	Reserve deposits under BOK Act
Due from KSFC	KB Securities Co. Ltd.		227	Futures trading margin
Others	Korea Federation of Savings Banks and others		89,562	Guarantees, mortgage of domestic exchange transactions and others

Sub-total			6,609,015

Due from banks in foreign currencies:
Due from banks on demand	BOK and others		1,544,492	Reserve deposits under BOK Act and others
Due from banks on time	National Bank Cambodia		54	Reserve deposits and others
Others	Korea Investment & Securities and others		1,180,570	Overseas futures and options trade deposits and others

Sub-total			2,725,116

Total			9,334,131

(4)	Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	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.


	For the three-month period ended March 31, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(4,860	)		—		—		(4,860	)
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		(904	)		—		—		(904	)
Others (*)		(742	)		—		—		(742	)

Ending balance		(6,506	)		—		—		(6,506	)

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

- 53 -

Gross carrying amount


	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.


	For the three-month period ended March 31, 2020
	Stage 1		Stage 2		Stage 3		Total
Beginning balance		14,497,083		—		—		14,497,083
Transfer to 12-month expected credit losses		—		—		—		—
Transfer to lifetime expected credit losses		—		—		—		—
Transfer to credit-impaired financial assets		—		—		—		—
Net increase		3,121,044		—		—		3,121,044
Others (*)		17,120		—		—		17,120

Ending balance		17,635,247		—		—		17,635,247

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

(5)	Details of loans are as follows (Unit: Korean Won in millions):


	March 31, 2021			December 31, 2020
Loans in local currency		256,281,727			249,264,947
Loans in foreign currencies		20,686,054			20,025,092
Domestic banker’s usance		2,524,326			2,240,830
Credit card accounts		8,911,986			8,542,619
Bills bought in foreign currencies		5,139,172			5,763,427
Bills bought in local currency		205,444			133,650
Factoring receivables		35,715			38,017
Advances for customers on guarantees		28,729			31,300
Private placement bonds		553,425			353,585
Securitized loans		2,531,416			2,561,914
Call loans		2,338,827			2,352,034
Bonds purchased under resale agreements		2,852,160			10,145,749
Financial lease receivables		785,297			586,216
Installment financial bond		2,111,082			1,925,493
Others		179			380
Loan origination costs and fees		756,992			744,109
Discounted present value		(6,927	)		(6,656	)
Allowance for credit losses		(1,940,768	)		(1,908,524	)

Total		303,794,836			302,794,182

- 54 -

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


	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	)

- 55 -


	For the three-month period ended March 31, 2020
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(85,148	)		(77,962	)		(125,588	)		(324,258	)		(297,718	)		(390,045	)
Transfer to 12-month expected credit losses		(14,504	)		14,098			406			(13,021	)		12,662			359
Transfer to lifetime expected credit losses		8,585			(10,443	)		1,858			8,375			(9,663	)		1,288
Transfer to credit-impaired financial assets		1,466			11,165			(12,631	)		1,418			12,971			(14,389	)
Net reversal(provision) of allowance for credit losses		6,115			(14,734	)		(24,506	)		11,218			(17,337	)		(12,728	)
Recovery		—			—			(15,738	)		—			—			(34,868	)
Charge-off		—			—			42,110			—			—			50,982
Disposal		—			—			—			—			—			—
Interest income from impaired loans		—			—			2,387			—			—			3,684
Others		(217	)		8			654			(9,957	)		(53	)		(119	)

Ending balance		(83,703	)		(77,868	)		(131,048	)		(326,225	)		(299,138	)		(395,836	)


	For the three-month period ended March 31, 2020
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(74,726	)		(71,533	)		(128,042	)		(484,132	)		(447,213	)		(643,675	)
Transfer to 12-month expected credit losses		(10,742	)		10,679			63			(38,267	)		37,439			828
Transfer to lifetime expected credit losses		7,204			(7,535	)		331			24,164			(27,641	)		3,477
Transfer to credit-impaired financial assets		632			18,689			(19,321	)		3,516			42,825			(46,341	)
Net reversal(provision) of allowance for credit losses		3,091			(19,748	)		(30,992	)		20,424			(51,819	)		(68,226	)
Recovery		—			—			(15,724	)		—			—			(66,330	)
Charge-off		—			—			60,908			—			—			154,000
Disposal		—			—			23,653			—			—			23,653
Interest income from impaired loans		—			—			—			—			—			6,071
Others		(2	)		—			—			(10,176	)		(45	)		535

Ending balance		(74,543	)		(69,448	)		(109,124	)		(484,471	)		(446,454	)		(636,008	)

- 56 -

(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, 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


	For the three-month period ended March 31, 2020
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		111,253,283			12,448,807			417,674			134,443,979			4,910,598			740,257
Transfer to 12-month expected credit losses		3,206,575			(3,201,133	)		(5,442	)		691,467			(688,581	)		(2,886	)
Transfer to lifetime expected credit losses		(3,734,638	)		3,757,519			(22,881	)		(1,070,228	)		1,075,017			(4,789	)
Transfer to credit-impaired financial assets		(27,175	)		(93,870	)		121,045			(52,348	)		(101,371	)		153,719
Charge-off		—			—			(42,110	)		—			—			(50,982	)
Disposal		—			—			—			—			—			—
Net increase(decrease)		1,037,546			(947,250	)		(42,498	)		6,137,168			(261,553	)		(51,285	)

Ending balance		111,735,591			11,964,073			425,788			140,150,038			4,934,110			784,034


	For the three-month period ended March 31, 2020
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		7,278,467			885,832			228,367			252,975,729			18,245,237			1,386,298
Transfer to 12-month expected credit losses		218,959			(218,881	)		(78	)		4,117,001			(4,108,595	)		(8,406	)
Transfer to lifetime expected credit losses		(289,664	)		290,097			(433	)		(5,094,530	)		5,122,633			(28,103	)
Transfer to credit-impaired financial assets		(12,081	)		(50,884	)		62,965			(91,604	)		(246,125	)		337,729
Charge-off		—			—			(60,908	)		—			—			(154,000	)
Disposal		—			—			(43,781	)		—			—			(43,781	)
Net increase(decrease)		(307,275	)		(48,298	)		3,184			6,867,439			(1,257,101	)		(90,599	)

Ending balance		6,888,406			857,866			189,316			258,774,035			17,756,049			1,399,138

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


	March 31, 2021			December 31, 2020
Cash Management Account asset (CMA asset)		210,500			210,000
Receivables		9,642,992			3,809,929
Accrued income		950,925			864,107
Telex and telephone subscription rights and refundable deposits		909,604			936,878
Domestic exchange settlement debit		1,348,987			1,518,775
Other assets		199,250			192,342
Allowance for credit losses		(83,043	)		(83,295	)

Total		13,179,215			7,448,736

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


	For the 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	)		—
Reversal(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	)


	For the three-month period ended March 31, 2020
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,196	)		(1,666	)		(72,277	)		(77,139	)
Transfer to 12-month expected credit losses		(96	)		91			5			—
Transfer to lifetime expected credit losses		516			(118	)		(398	)		—
Transfer to credit-impaired financial assets		24			739			(763	)		—
Provision of allowance for credit losses		(574	)		(993	)		(442	)		(2,009	)
Charge-off		—			—			70			70
Disposal		—			—			—			—
Others		(5	)		—			(21	)		(26	)

Ending balance		(3,331	)		(1,947	)		(73,826	)		(79,104	)

(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, 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


	For the three-month period ended March 31, 2020
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		8,059,844			92,647			117,874			8,270,365
Transfer to 12-month expected credit losses		6,176			(6,168	)		(8	)		—
Transfer to lifetime expected credit losses		(8,572	)		8,592			(20	)		—
Transfer to credit-impaired financial assets		(320	)		(2,529	)		2,849			—
Charge-off		—			—			(70	)		(70	)
Net increase(decrease)		649,342			(39,923	)		17,086			626,505

Ending balance		8,706,470			52,619			137,711			8,896,800

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11.

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1)	The fair value hierarchy

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

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

•

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

•

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

•

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

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

- 59 -

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


	March 31, 2021
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		66,266		—		—		66,266
Debt securities		694,161		2,804,511		4,158		3,502,830
Equity securities		34,492		—		443,654		478,146
Capital contributions		—		—		866,232		866,232
Beneficiary certificates		326,920		775,930		1,938,412		3,041,262
Loans		—		189,373		287,211		476,584
Derivative assets (Designated for trading)		1,686		4,355,297		5,565		4,362,548
Others		—		—		90,031		90,031

Sub-total		1,123,525		8,125,111		3,635,263		12,883,899

Financial assets at FVTOCI
Debt securities		4,576,767		25,121,842		—		29,698,609
Equity securities		543,319		—		563,716		1,107,035

Sub-total		5,120,086		25,121,842		563,716		30,805,644

Derivative assets (Designated for hedging)		—		149,418		—		149,418

Total		6,243,611		33,396,371		4,198,979		43,838,961

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		66,814		—		—		66,814
Derivative liabilities (Designated for trading)		5,264		4,056,214		20,363		4,081,841
Securities sold		207,510		—		—		207,510

Sub-total		279,588		4,056,214		20,363		4,356,165

Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		—		—		3,955		3,955

Derivative liabilities (Designated for hedging)		—		52,590		—		52,590

Total		279,588		4,108,804		24,318		4,412,710

(*)	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.

- 60 -


	December 31, 2020
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		48,796		—		—		48,796
Debt securities		516,597		2,365,882		4,618		2,887,097
Equity securities		35,422		—		450,371		485,793
Capital contributions		—		—		865,685		865,685
Beneficiary certificates		24,895		869,852		1,917,811		2,812,558
Loans		—		467,229		209,062		676,291
Derivative assets (Designated for trading)		18,416		6,875,454		7,872		6,901,742
Others		—		—		84,979		84,979

Sub-total		644,126		10,578,417		3,540,398		14,762,941

Financial assets at FVTOCI
Debt securities		3,092,237		25,855,904		—		28,948,141
Equity securities		510,073		—		570,715		1,080,788

Sub-total		3,602,310		25,855,904		570,715		30,028,929

Derivative assets (Designated for hedging)		—		174,820		—		174,820

Total		4,246,436		36,609,141		4,111,113		44,966,690

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		49,279		—		—		49,279
Derivative liabilities (Designated for trading)		6,024		6,433,727		20,136		6,459,887
Securities sold		285,026		—		—		285,026

Sub-total		340,329		6,433,727		20,136		6,794,192

Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		—		—		19,630		19,630

Derivative liabilities (Designated for hedging)		—		64,769		—		64,769

Total		340,329		6,498,496		39,766		6,878,591

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

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

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

Valuation methods and input variables for each type of financial instrument classified into level 2 in March 31, 2021 and December 31, 2020 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 MMF and are measured at the standard price.	Standard price

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, 2021 and December 31, 2020 are as follows:


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

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

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, and Binomial Tree, 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, stock prices, volatility of underlying asset, net asset of the investment association and discount rate

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

Equity-linked securities	Fair value is measured by models such as option model (Closed form), DCF model, FDM and Monte Carlo Simulation.	Values of underlying assets, discount rate, dividends, volatility, correlation coefficient, foreign exchange rate, etc.

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

- 62 -

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	31.88%	Variation of fair value increases as volatility of underlying asset increases.

	LSMC		Stock prices, Volatility of underlying asset	29.06%	Variation of fair value increases as volatility of underlying asset increases.

Derivative assets	Option valuation model and others	Interest rate related	Correlation coefficient	0.90~0.98	Variation of fair value increases as correlation coefficient increases.

			Volatility of underlying asset	21.30~85.10%	Variation of fair value increases as volatility of underlying assets increases.

		Equity related	Correlation coefficient	0.28~0.76	Variation of fair value increases as correlation coefficient increases.

			Volatility of underlying asset	—	Variation of fair value increases as volatility of underlying assets 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	21.30~85.10%	Variation of fair value increases as volatility of underlying assets increases.

		Equity related	Correlation coefficient	0.28~0.76	Variation of fair value increases as correlation coefficient increases.

			Volatility of underlying asset	—	Variation of fair value increases as volatility of underlying assets increases.

Equity-linked securities	Monte Carlo Simulation and others	Equity related	Correlation coefficient	0.49~0.64	Fair value of equity-linked securities increases if both historical volatility and correlation coefficient increase. However, when correlation coefficient decreases despite the increase in historical volatility, the fair value variation of equity-linked securities may decrease.

			Volatility of underlying asset	21.30~40.60%

- 63 -


	Fair value measurement technique	Type	Input variable	Range(%)	Impact of changes in significant unobservable inputs on fair value measurement
Equity securities, capital contributions, and beneficiary certificates	LSMC		Stock prices, Volatility of underlying asset	25.06~32.90%	Variation of fair value increases as volatility of underlying asset increases.

	DCF model and others		Discount rate	5.95~36.92%	Fair value increases as discount rate decreases.

			Terminal growth rate	0.00~1.00%	Fair value increases as terminal growth rate increases.

			Liquidation value	0.00%	Variation of liquidation value increases as volatility of underlying assets increases

Others	Income approach		Discount rate	12.69%	Fair value increases as discount rate decreases.

			Growth rate	1.00%	Fair value increases as growth rate increases.

	LSMC		Stock prices, Volatility of underlying asset	25.06~36.97%	Variation of fair value increases as volatility of underlying asset 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.

- 64 -

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

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.

- 65 -


	For the three-month period ended March 31, 2020
	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		5,826		116			—			—		(27	)		—			5,915
Equity securities		528,621		14,399			—			1,461		(3,714	)		32			540,799
Capital contributions		515,199		(4,884	)		—			37,316		(7,565	)		300			540,366
Beneficiary certificates		1,275,734		6,729			—			100,225		(35,738	)		—			1,346,950
Loans		152,629		159			—			51,809		(29,718	)		—			174,879
Derivative assets		25,048		277,382			—			13,045		(16,551	)		(3,469	)		295,455

Sub-total		2,503,057		293,901			—			203,856		(93,313	)		(3,137	)		2,904,364

Financial assets at FVTOCI
Equity securities		493,698		—			(11,702	)		37		(4	)		(300	)		481,729

Total		2,996,755		293,901			(11,702	)		203,893		(93,317	)		(3,437	)		3,386,093

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		72,039		(2,992	)		—			8,237		(48,483	)		—			28,801
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		87,626		(10,771	)		—			—		(54,681	)		—			22,174
Derivative liabilities (Designated for hedging)		321		—			—			—		(321	)		—			—

Total		159,986		(13,763	)		—			8,237		(103,485	)		—			50,975

(*1)

The losses that increase financial liabilities are presented as positive amounts, and the gains that decrease financial liabilities are presented as negative amounts. The loss amounting to 312,180 million Won for the three-month period ended March 31, 2020, which is from financial assets and liabilities that the Group holds as at the end of the period, has been recognized in net gain(loss) on financial assets at FVTPL and net gain(loss) on financial assets at FVTOCI in the consolidated statement of comprehensive income.

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

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

The sensitivity analysis of the financial instruments has been performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of

level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity-linked securities beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 4,223,297 million Won and 4,150,879 million Won as of March 31, 2021 and December 31, 2020 respectively, equity instruments of 3,549,738 million Won and 3,052,432 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, 2021 and December 31, 2020 is as follows (Unit: Korean Won in millions):


	March 31, 2021
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		781		4			—		—
Loans (*2)		1,689		(1,671	)		—		—
Debt securities		12		(11	)		—		—
Equity securities (2) (3) (*4)		7,109		(7,164	)		—		—
Beneficiary certificates (*4)		1,427		(1,404	)		—		—
Others (*2)		1,177		(1,081	)		—		—
Financial assets at FVTOCI Equity securities (3) (4)		—		—			25,458		(19,298	)

Total		12,195		(11,327	)		25,458		(19,298	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		927		(841	)		—		—
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities (*1)		38		(40	)		—		—

Total		965		(881	)		—		—

(*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%.

- 67 -


	December 31, 2020
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		110		(257	)		—		—
Loans (*2)		933		(932	)		—		—
Debt securities		13		(10	)		—		—
Equity securities (2) (3) (*4)		8,539		(7,337	)		—		—
Beneficiary certificates (*4)		1,403		(1,537	)		—		—
Others (*2)		640		(547	)		—		—
Financial assets at FVTOCI Equity securities (3) (4)		—		—			21,587		(16,740	)

Total		11,638		(10,620	)		21,587		(16,740	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		776		(405	)		—		—
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities (*1)		57		(45	)		—		—

Total		833		(450	)		—		—

(*1)

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

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

(*4)

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(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, 2021
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,776,033		13,673,295		—		16,449,328		16,275,197
Loans and other financial assets at amortized cost		—		3		335,716,354		335,716,354		337,757,469
Financial liabilities:
Deposits due to customers		—		299,304,657		—		299,304,657		298,919,981
Borrowings		—		20,168,210		132,573		20,300,783		20,256,488
Debentures		—		39,260,149		—		39,260,149		39,078,257
Other financial liabilities		—		23,377,189		562,360		23,939,549		24,159,996


	December 31, 2020
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,968,875		14,299,748		—		17,268,623		17,020,839
Loans and other financial assets at amortized cost		—		—		318,144,845		318,144,845		320,106,078
Financial liabilities:
Deposits due to customers		—		291,767,282		—		291,767,282		291,477,279
Borrowings		—		20,586,930		176,745		20,763,675		20,745,466
Debentures		—		37,931,989		—		37,931,989		37,479,358
Other financial liabilities		—		13,305,067		286,489		13,591,556		13,808,386

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


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

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

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

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(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, 2021
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Deposits		66,266		—		20,783,418		—		20,849,684
Securities		7,978,501		30,805,644		16,275,197		—		55,059,342
Loans		476,584		—		303,794,836		—		304,271,420
Derivative assets		4,362,548		—		—		149,418		4,511,966
Other financial assets		—		—		13,179,215		—		13,179,215

Total		12,883,899		30,805,644		354,032,666		149,418		397,871,627


	March 31, 2021
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities designated at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Deposits due to customers		66,814		—		298,919,981		—		298,986,795
Borrowings		207,510		3,955		20,256,488		—		20,467,953
Debentures		—		—		39,078,257		—		39,078,257
Derivative liabilities		4,081,841		—		—		52,590		4,134,431
Other financial liabilities		—		—		24,159,996		—		24,159,996

Total		4,356,165		3,955		382,414,722		52,590		386,827,432


	December 31, 2020
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Deposits		48,796		—		9,863,160		—		9,911,956
Securities		7,136,112		30,028,929		17,020,839		—		54,185,880
Loans		676,291		—		302,794,182		—		303,470,473
Derivative assets		6,901,742		—		—		174,820		7,076,562
Other financial assets		—		—		7,448,736		—		7,448,736

Total		14,762,941		30,028,929		337,126,917		174,820		382,093,607


	December 31, 2020
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities designated at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Deposits due to customers		49,279		—		291,477,279		—		291,526,558
Borrowings		285,026		19,630		20,745,466		—		21,050,122
Debentures		—		—		37,479,358		—		37,479,358
Derivative liabilities		6,459,887		—		—		64,769		6,524,656
Other financial liabilities		—		—		13,808,386		—		13,808,386

Total		6,794,192		19,630		363,510,489		64,769		370,389,080

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(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, 2021 and 2020 are as follows (Unit: Korean Won in millions):


	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		Others		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


	For the three-month period ended March 31, 2020
	Interest income(expense)			Fees and commissions income		Reversal(provision) of credit loss			Gain(loss) on valuation and transactions		Others		Total
Financial assets at FVTPL		12,529			—		—			468,075		30,635		511,239
Financial assets at FVTOCI		126,177			—		(12	)		2,600		17,134		145,899
Securities at amortized cost		104,059			—		143			—		—		104,202
Loans and other financial assets at amortized cost		2,261,049			87,320		(102,534	)		26,747		—		2,272,582
Financial liabilities at amortized cost		(1,037,697	)		—		—			—		—		(1,037,697	)
Net derivatives (designated for hedging)		—			—		—			33,850		—		33,850

Total		1,466,117			87,320		(102,403	)		531,272		47,769		2,030,075

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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, 2021		December 31, 2020		Location		Financial statements as of
Woori Bank
W Service Networks Co., Ltd. (*1)		Freight & staffing services		4.9		4.9		Korea		2021.2.28	(*4)
Korea Credit Bureau Co., Ltd. (*2)		Credit information		9.9		9.9		Korea		2021.3.31
Korea Finance Security Co., Ltd. (*1)		Security service		15.0		15.0		Korea		2021.2.28	(*4)
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		2021.3.31
2016KIF-IMM Woori Bank Technology Venture Fund		Other financial services		20.0		20.0		Korea		2021.3.31
K BANK Co., Ltd. (*2)		Finance		26.2		26.2		Korea		2021.2.28	(*4)
Smart Private Equity Fund No.2		Other financial services		20.0		20.0		Korea		2021.3.31
Woori Bank-Company K Korea Movie Asset Fund		Other financial services		25.0		25.0		Korea		2021.3.31
Well to Sea No. 3 Private Equity Fund (*5)		Finance		50.0		50.0		Korea		—
Partner One Value Up I Private Equity Fund		Other financial services		23.3		23.3		Korea		2021.3.31
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		Other financial services		20.0		20.0		Korea		2021.3.31
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		Other financial services		25.0		25.0		Korea		2021.3.31
LOTTE CARD Co., Ltd.		Credit card and installment financing		20.0		20.0		Korea		2020.12.31	(*4)
Together-Korea Government Private Pool Private Securities Investment Trust No.3		Other financial services		100.0		100.0		Korea		2021.3.31
Genesis Environmental Energy Company 1st Private Equity Fund		Trust and collective investment		24.8		24.8		Korea		2021.3.31
Union Technology Finance Investment Association		Trust and collective investment		29.7		29.7		Korea		2021.3.31
Woori Bank (*6)
Japanese Hotel Real Estate Private Equity Fund 2		Other financial services		19.9		19.9		Korea		2021.3.31
Woori G Clean Energy No.1		Investment trust and discretionary investment business		29.3		29.3		Korea		2021.3.31
Woori Goseong Power EBL Private Special Asset Fund		Trust and collective investment		16.7		16.7		Korea		2021.3.31

- 72 -


		Percentage of ownership (%)
Joint ventures and associates	Main business	March 31, 2021		December 31, 2020		Location	Financial statements as of
Woori Seoul Beltway Private Special Asset Fund	Trust and collective investment		25.0		25.0	Korea		2021.3.31
Woori Corporate Private Securities Fund 1(Bond)	Collective investment business		20.0		—	Korea		2021.3.31
Woori G Star Private Placement Investment Trust No.33 [FI]	Collective investment business		15.8		—	Korea		2021.3.31
Woori Financial Capital Co., Ltd.
AJU TAERIM 1st Fund	Other financial services		25.6		25.6	Korea		2021.3.31
Portone-Cape Fund No.1	Other financial services		20.0		20.0	Korea		2021.3.31
KIWOOM PE AJU Investment Fund (*7)	Other financial services		9.1		9.1	Korea		2021.3.31
Woori Investment Bank Co., Ltd. (*6)
Woori FirstValue Private Real Estate Fund No.2	Real estate business		12.0		12.0	Korea		2021.3.31
Woori Asset Management Co. Ltd.
Woori High plus G.B. Securities Feeder Fund1(G.B.)	Collective investment business		22.6		21.8	Korea		2021.3.31
Woori Star50 Master Fund ClassC-F	Collective investment business		20.0		24.5	Korea		2021.3.31
Woori Private Equity Asset Management Co., Ltd.
Uri Hanhwa Eureka Private Equity Fund (*2)	Other financial services		0.8		0.8	Korea		2021.3.31
Japanese Hotel Real Estate Private Equity Fund 1
Godo Kaisha Oceanos 1	Other financial services		47.8		47.8	Japan		2021.1.31	(*4)
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		28.7		28.7	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		25.8		25.8	Korea		2020.12.31	(*4)
Sinseong Trading Co., Ltd. (*3)	Manufacturing		27.9		27.9	Korea		—
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		—	Korea		2020.12.31	(*4)

- 73 -


			Percentage of ownership (%)
Joint ventures and associates	Main business		March 31, 2021		December 31, 2020		Location		Financial statements as of
Woori bank and Woori Financial Capital Co., Ltd. (*6)
JC Assurance No.2 Private Equity Fund		Collective investment business		29.3		29.3		Korea		2021.3.31
Dream Company Growth no.1 PEF		Collective investment business		27.8		27.8		Korea		2021.3.31
HMS-Oriens 1st Fund		Trust and collective investment		22.8		22.8		Korea		2021.3.31
Woori G Senior Loan No.1		Investment trust and discretionary investment business		21.7		21.7		Korea		2021.3.31
Genesis Eco No.1 Private Equity Fund		Other financial services		29.0		—		Korea		2021.3.31
Woori Bank and Woori Investment Bank Co., Ltd. (*6)
PCC-Woori LP Secondary Fund		Other financial services		38.8		38.8		Korea		2021.3.31
Woori bank and Woori Asset Management Co., Ltd. (*6)
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		Collective investment business		25.1		23.3		Korea		2021.3.31
Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6)
Woori-Q Corporate Restructuring Private Equity Fund		Trust and collective investment		38.4		38.4		Korea		2021.3.31
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		35.0		Korea		2021.3.31

(*1)	Most of the significant business transactions of associates are with the Group as of March 31, 2021 and December 31, 2020.

(*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, 2021 and December 31, 2020.

(*4)

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.

(*5)	The estimated recoverable amount of 15,434 million won at the time of liquidation was classified as receivable.

(*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)	Woori G IPO10 [FI_Bal][F]C(F), Woori G Egis Bond[FI][F](C(F)) can exert significant influence but was classified as an item measured at fair value through profit or loss.

- 74 -

(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, 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

- 75 -


	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
Force TEC Co., Ltd.		—		393		(169	)		—		—			—			154			378
KUM HWA Co., Ltd.		—		—		—			—		—			—			—			—
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

- 76 -


	For the three-month period ended March 31, 2020
	Acquisition cost		January 1, 2020		Share of profits(losses)			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			March 31, 2020
W Service Networks Co., Ltd.		108		186		(32	)		—		—			—			—			154
Korea Credit Bureau Co., Ltd.		3,313		6,845		340			—		—			(90	)		—			7,095
Korea Finance Security Co., Ltd.		3,267		3,287		44			—		—			—			—			3,331
Saman Corporation		8,521		849		(396	)		—		—			—			36			489
Woori Growth Partnerships New Technology Private Equity Fund		18,666		19,212		(425	)		—		—			—			—			18,787
2016KIF-IMM Woori Bank Technology Venture Fund		12,385		15,141		—			—		—			—			(1,064	)		14,077
K BANK Co., Ltd.		73,150		31,254		(3,810	)		—		—			—			47			27,491
Smart Private Equity Fund No.2		2,915		2,764		(10	)		—		—			—			—			2,754
Woori Bank-Company K Korea Movie Asset Fund		2,100		3,323		244			—		(900	)		—			—			2,667
Well to Sea No.3 Private Equity Fund		101,483		209,023		8,678			—		—			(256	)		(590	)		216,855
Partner One Value Up I Private Equity Fund		10,000		9,908		(29	)		—		—			—			—			9,879
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		6,596		4,576		—			2,020		—			—			—			6,596
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,054		4,375		—			—		(321	)		—			—			4,054
LOTTE CARD Co.,Ltd		346,810		409,444		4,752			810		—			(5,710	)		342			409,638
Japanese Hotel Real Estate Private Equity Fund 2		3,291		3,291		(4	)		—		—			—			45			3,332
Woori All-in-One World EMP 40 [Bond Mixed-FOF]		5,000		—		(460	)		5,000		—			—			—			4,540
Uri Hanhwa Eureka Private Equity Fund		350		342		(1	)		—		—			—			—			341
Godo Kaisha Oceanos 1		10,800		10,952		197			—		—			(395	)		—			10,754
Woori-Shinyoung Growth-Cap Private Equity Fund I		32,572		11,841		(229	)		19,906		—			—			27			31,545
Chin Hung International Inc.		130,779		51,176		(1,616	)		—		—			—			35			49,595
PCC-Woori LP Secondary Fund		2,525		2,525		(61	)		—		—			—			—			2,464
Woori-Q Corporate Restructuring Private Equity Fund		6,129		6,046		(42	)		—		—			—			—			6,004

		784,814		806,360		7,140			27,736		(1,221	)		(6,451	)		(1,122	)		832,442

- 77 -

(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, 2021
	Assets		Liabilities		Operating revenue			Net income (loss)
W Service Networks Co., Ltd.		5,548		2,511		3,146			88
Korea Credit Bureau Co., Ltd.		114,454		38,853		30,618			3,512
Korea Finance Security Co., Ltd.		33,217		12,951		10,956			(192	)
Woori Growth Partnerships New Technology Private Equity Fund		62,173		231		6			(237	)
2016KIF-IMM Woori Bank Technology Venture Fund		58,508		—		2			5
K BANK Co., Ltd.		7,511,879		7,032,658		22,709			(10,170	)
Smart Private Equity Fund No.2		13,611		25		—			(30	)
Woori Bank-Company K Korea Movie Asset Fund		5,407		20		249			229
Partner One Value Up I Private Equity Fund		42,043		3		73			(90	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		46,072		323		188			(138	)
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,640		14		—			—
LOTTE CARD Co.,Ltd (*)		14,690,553		12,327,352		1,733,450			95,545
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,035		1		197			32
Genesis Environmental Energy Company 1st Private Equity Fund		16,085		71		—			(63	)
Union Technology Finance Investment Association		25,194		290		2			(295	)
Japanese Hotel Real Estate Private Equity Fund 2		15,771		14		224			197
Woori G Clean Energy No.1		8,691		5		206			202
Woori Goseong Power EBL Private Special Asset Fund		90,713		21		755			732
Woori Seoul Beltway Private Special Asset Fund		25,193		1		107			99
Woori Corporate Private Securities Fund 1(Bond)		63,287		13,371		50			49
Woori G Star Private Placement Investment Trust No.33 [FI]		126,689		25		2,290			1,230
AJU TAERIM 1st Fund		1,192		107		—			(21	)
Portone-Cape Fund No.1		1,398		—		—			(103	)
KIWOOM PE AJU Investment Fund		10,929		54		—			(54	)
Woori FirstValue Private Real Estate Fund No.2		14,919		2,469		(5,299	)		(5,303	)
Woori High plus G.B. Securities Feeder Fund1(G.B.)		26,869		—		18			18
Woori Star50 Master Fund ClassC-F		857		—		(1	)		(1	)
Uri Hanhwa Eureka Private Equity Fund		50,167		115		20			(96	)
Godo Kaisha Oceanos 1		66,195		45,552		2,047			(57	)
Force TEC Co., Ltd.		45,741		44,272		33,917			(1,071	)
KUM HWA Co., Ltd.		33		179		85			(27	)
JC Assurance No.2 Private Equity Fund		98,421		13		—			(10	)
Dream Company Growth no.1 PEF		28,675		43		—			(51	)
HMS-Oriens 1st Fund		53,153		—		678			521
Woori G Senior Loan No.1		301,159		19		3,015			2,837
Genesis Eco No.1 Private Equity Fund		26,846		10		—			(157	)
PCC-Woori LP Secondary Fund		21,227		4		467			301
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		451,173		—		1,425			1,425
Woori-Q Corporate Restructuring Private Equity Fund		63,804		878		237			(294	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		109,363		466		—			(339	)

(*)	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.

- 78 -


	December 31, 2020
	Assets		Liabilities		Operating revenue		Net income (loss)
W Service Networks Co., Ltd.		6,305		2,448		18,525		1,197
Korea Credit Bureau Co., Ltd.		117,077		37,599		107,810		13,391
Korea Finance Security Co., Ltd.		36,978		16,536		60,599		(1,985	)
Woori Growth Partnerships New Technology Private Equity Fund		65,390		252		1,589		(9,601	)
2016KIF-IMM Woori Bank Technology Venture Fund		64,109		1,198		7,425		6,201
K BANK Co., Ltd.		4,040,051		3,530,074		68,144		(83,989	)
Smart Private Equity Fund No.2		13,667		51		1		(204	)
Woori Bank-Company K Korea Movie Asset Fund		11,273		119		1,926		1,461
Well to Sea No.3 Private Equity Fund		22,001		3,102		610,535		16,061
Partner One Value Up I Private Equity Fund		42,205		—		308		(329	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		46,542		655		1,024		(411	)
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,747		—		284		(85	)
LOTTE CARD Co.,Ltd (*)		14,578,716		12,238,805		1,255,593		78,781
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,025		1		187		23
Genesis Environmental Energy Company 1st Private Equity Fund		16,192		118		1,400		974
Union Technology Finance Investment Association		15,151		51		1		(50	)
Japanese Hotel Real Estate Private Equity Fund 2		16,293		15		1,359		1,271
Woori G Clean Energy No.1		3,496		1		33		32
Woori Goseong Power EBL Private Special Asset Fund		90,728		21		3,060		2,969
Woori Seoul Beltway Private Special Asset Fund		22,452		1		352		323
AJU TAERIM 1st Fund		1,192		86		—		(22	)
Portone-Cape Fund No.1		4,800		—		—		—
KIWOOM PE AJU Investment Fund		10,986		57		—		(71	)
Woori FirstValue Private Real Estate Fund No.2		20,220		2,467		9		(9	)
Woori High plus G.B. Securities Feeder Fund1(G.B.)		27,870		—		148		148
Woori Star50 Master Fund ClassC-F		1,011		246		11		11
Uri Hanhwa Eureka Private Equity Fund		50,382		235		8,150		7,676
Godo Kaisha Oceanos 1		66,793		45,472		1,425		14
Force TEC Co., Ltd.		47,077		45,552		25,914		(415	)
JC Assurance No.2 Private Equity Fund		98,431		13		—		(732	)
Dream Company Growth no.1 PEF		28,727		43		—		(116	)
HMS-Oriens 1st Fund		52,685		53		90		20
Woori G Senior Loan No.1		240,414		15		1,721		1,584
PCC-Woori LP Secondary Fund		20,927		4		2,082		1,425
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		402,015		—		10,727		10,727
Woori-Q Corporate Restructuring Private Equity Fund		58,355		433		206		(1,590	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		110,452		825		23,875		21,106

(*)	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.

- 79 -

(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, 2021 and December 31, 2020 are as follows:


	March 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

(*)	Even though 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, thus it is excluded from the investment in joint ventures and associates.


	December 31, 2020
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

(*)	Even though 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, thus it is excluded from the investment in joint ventures and associates.

(5)	As of March 31, 2021 and December 31, 2020, 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, 2021
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment			Intercompany transaction			Book value
W Service Networks Co., Ltd.		3,037		4.9		150		—		—			—			150
Korea Credit Bureau Co., Ltd.		75,601		9.9		7,492		246		—			3			7,741
Korea Finance Security Co., Ltd.		20,265		15.0		3,040		—		—			—			3,040
Woori Growth Partnerships New Technology Private Equity Fund		61,942		23.1		14,296		—		—			(2	)		14,294
2016KIF-IMM Woori Bank Technology Venture Fund		58,508		20.0		11,702		—		—			655			12,357
K BANK Co., Ltd. (1) (2)		479,221		26.2		125,556		44,117		(3,634	)		—			166,039
Smart Private Equity Fund No.2 (*2)		13,586		20.0		2,717		—		(2,041	)		—			676
Woori Bank-Company K Korea Movie Asset Fund		5,387		25.0		1,347		—		—			—			1,347
Partner One Value Up Ist Private Equity Fund		42,040		23.3		9,779		—		—			(2	)		9,777
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		45,749		20.0		9,150		—		—			606			9,756
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,626		25.0		3,906		—		—			224			4,130
LOTTE CARD Co., Ltd (*1)		2,084,862		20.0		416,972		—		—			1			416,973
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,033		100.0		10,033		—		—			(1	)		10,032
Genesis Environmental Energy Company 1st Private Equity Fund		16,014		24.8		3,964		—		—			—			3,964
Union Technology Finance Investment Association		24,903		29.7		7,396		—		—			1			7,397
Japanese Hotel Real Estate Private Equity Fund 2		15,757		19.9		3,130		—		—			—			3,130

- 80 -


	March 31, 2021
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment		Intercompany transaction		Book value
Woori G Clean Energy No.1		8,686			29.3		2,546			—		—		—		2,546
Woori Goseong Power EBL Private Special Asset Fund		90,692			16.7		15,115			—		—		—		15,115
Woori Seoul Beltway Private Special Asset Fund		25,192			25.0		6,298			—		—		—		6,298
Woori Corporate Private Securities Fund 1(Bond)		49,916			20.0		9,978			—		—		—		9,978
Woori G Star Private Placement Investment Trust No.33 [FI]		126,664			15.8		20,094			—		—		—		20,094
AJU TAERIM 1st Fund		1,085			25.6		278			—		—		—		278
Portone-Cape Fund No.1		1,398			20.0		279			—		—		—		279
KIWOOM PE AJU Investment Fund		10,875			9.1		989			—		—		—		989
Woori FirstValue Private Real Estate Fund No.2		12,450			12.0		1,494			—		—		—		1,494
Woori High plus G.B. Securities Feeder Fund1(G.B.)		26,869			22.6		6,067			—		—		—		6,067
Woori Star50 Master Fund ClassC-F		857			20.0		171			—		—		—		171
Uri Hanhwa Eureka Private Equity Fund		50,051			0.8		402			—		—		—		402
Godo Kaisha Oceanos 1		20,643			47.8		9,870			—		—		—		9,870
Force TEC		1,469			25.8		378			—		—		—		378
KUM HWA Co., Ltd.		(146	)		20.1		(29	)		—		—		29		—
JC Assurance No.2 Private Equity Fund		98,408			29.3		28,833			—		—		—		28,833
Dream Company Growth no.1 PEF		28,632			27.8		7,953			—		—		—		7,953
HMS-Oriens 1st Fund		53,153			22.8		12,007			—		—		—		12,007
Woori G Senior Loan No.1		301,140			21.7		65,195			—		—		—		65,195
Genesis Eco No.1 Private Equity Fund		26,836			29.0		7,778			—		—		—		7,778
PCC-Woori LP Secondary Fund		21,224			38.8		8,243			—		—		1		8,244
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		451,173			25.1		111,327			—		—		—		111,327
Woori-Q Corporate Restructuring Private Equity Fund		62,925			38.4		24,140			—		—		—		24,140
Woori-Shinyoung Growth-Cap Private Equity Fund I		108,897			35.0		38,086			—		—		—		38,086

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

(*2)	As a result of conducting an impairment test on the investment stocks of the related companies, the recoverable value was less than the carrying amount and thus the impairment loss was recognized.

- 81 -


	December 31, 2020
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment			Intercompany transaction			Book value
W Service Networks Co., Ltd.		3,857		4.9		191		—		—			—			191
Korea Credit Bureau Co., Ltd.		79,478		9.9		7,876		246		—			3			8,125
Korea Finance Security Co., Ltd.		20,442		15.0		3,066		—		—			—			3,066
Woori Growth Partnerships New Technology Private Equity Fund		65,138		23.1		15,034		—		—			(2	)		15,032
2016KIF-IMM Woori Bank Technology Venture Fund		62,911		20.0		12,582		—		—			656			13,238
K BANK Co., Ltd. (1) (2)		509,978		26.2		133,614		44,117		(3,634	)		—			174,097
Smart Private Equity Fund No.2 (*2)		13,616		20.0		2,723		—		(1,242	)		—			1,481
Woori Bank-Company K Korea Movie Asset Fund		11,154		25.0		2,788		—		—			—			2,788
Well to Sea No.3 Private Equity Fund (*3)		18,899		50.0		—		—		—			—			—
Partner One Value Up Ist Private Equity Fund		42,205		23.3		9,817		—		—			(1	)		9,816
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		45,888		20.0		9,178		—		—			578			9,756
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,747		25.0		3,937		—		—			192			4,129
LOTTE CARD Co., Ltd (*1)		2,114,159		20.0		422,832		—		—			—			422,832
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,024		100.0		10,024		—		—			(1	)		10,023
Genesis Environmental Energy Company 1st Private Equity Fund		16,074		24.8		3,979		—		—			—			3,979
Union Technology Finance Investment Association		15,100		29.7		4,485		—		—			—			4,485
Japanese Hotel Real Estate Private Equity Fund 2		16,278		19.9		3,234		—		—			—			3,234
Woori G Clean Energy No.1		3,495		29.3		1,024		—		—			—			1,024
Woori Goseong Power EBL Private Special Asset Fund		90,707		16.7		15,118		—		—			—			15,118
Woori Seoul Beltway Private Special Asset Fund		22,451		25.0		5,613		—		—			—			5,613
AJU TAERIM 1st Fund		1,106		25.6		283		—		—			—			283
Portone-Cape Fund No.1		4,800		20.0		960		—		—			—			960
KIWOOM PE AJU Investment Fund		10,929		9.1		994		—		—			—			994
Woori FirstValue Private Real Estate Fund No.2		17,753		12.0		2,130		—		—			—			2,130
Woori High plus G.B. Securities Feeder Fund1(G.B.)		27,870		21.8		6,076		—		—			—			6,076
Woori Star50 Master Fund ClassC-F		765		24.5		184		—		—			—			184
Uri Hanhwa Eureka Private Equity Fund		50,147		0.8		403		—		—			—			403
Godo Kaisha Oceanos 1		21,321		47.8		10,193		—		—			—			10,193
Force TEC		1,526		25.8		393		—		—			—			393
JC Assurance No.2 Private Equity Fund		98,418		29.3		29,050		—		—			—			29,050
Dream Company Growth no.1 PEF		28,684		27.8		7,705		—		—			—			7,705
HMS-Oriens 1st Fund		52,632		22.8		12,000		—		—			—			12,000
Woori G Senior Loan No.1		240,399		21.7		52,045		—		—			—			52,045
PCC-Woori LP Secondary Fund		20,923		38.8		8,126		—		—			2			8,128

- 82 -


	December 31, 2020
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		402,015		23.3		93,474		—		—		—		93,474
Woori-Q Corporate Restructuring Private Equity Fund		57,922		38.4		22,220		—		—		684		22,904
Woori-Shinyoung Growth-Cap Private Equity Fund I		109,627		35.0		38,342		—		—		—		38,342

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

(*2)	As a result of conducting an impairment test on the investment stocks of the related companies, the recoverable value was less than the carrying amount and thus the impairment loss was recognized.

(*3)	The estimated recoverable amount of 15,687 million Won at the time of liquidation was classified as receivable.

13.

INVESTMENT PROPERTIES

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


	March 31, 2021			December 31, 2020
Acquisition cost		403,771			409,702
Accumulated depreciation		(23,102	)		(22,152	)
Accumulated impairment losses		(86	)		(86	)

Net carrying value		380,583			387,464

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


	For the three-month period ended March 31
	2021			2020
Beginning balance		387,464			280,239
Acquisition		—			1,477
Disposal		—			(348	)
Depreciation		(574	)		(547	)
Transfer		(3,865	)		(4,631	)
Foreign currencies translation adjustments		(2,329	)		380
Others		(113	)		412

Ending balance		380,583			276,982

- 83 -

14.

PREMISES AND EQUIPMENT

(1)	Details of premises and equipment as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,732,427		777,925		254,434		48,780		9,888		1		2,823,455
Right-of-use asset		—		431,045		14,337		—		—		—		445,382
Carrying value		1,732,427		1,208,970		268,771		48,780		9,888		1		3,268,837


	December 31, 2020
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,726,045		787,040		268,225		50,085		8,246		2		2,839,643
Right-of-use asset		—		435,132		12,423		—		—		—		447,555
Carrying value		1,726,045		1,222,172		280,648		50,085		8,246		2		3,287,198

(2)	Details of premises and equipment (owned) as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,733,087			1,075,072			1,142,988			478,024			9,888		20			4,439,079
Accumulated depreciation		—			(297,147	)		(888,554	)		(429,244	)		—		(19	)		(1,614,964	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,732,427			777,925			254,434			48,780			9,888		1			2,823,455


	December 31, 2020
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,726,705			1,076,647			1,142,653			478,290			8,246		20			4,432,561
Accumulated depreciation		—			(289,607	)		(874,428	)		(428,205	)		—		(18	)		(1,592,258	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,726,045			787,040			268,225			50,085			8,246		2			2,839,643

- 84 -

(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, 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


	For the three-month period ended March 31, 2020
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress			Structures		Total
Beginning balance		1,761,159			802,299			278,016			54,839			1,287			2		2,897,602
Acquisitions		—			1,209			17,996			5,784			120			—		25,109
Disposals		(6,422	)		(332	)		(595	)		(108	)		—			—		(7,457	)
Depreciation		—			(9,133	)		(23,417	)		(9,657	)		—			—		(42,207	)
Transfer		4,313			318			—			—			—			—		4,631
Foreign currencies translation adjustments		(1,053	)		(925	)		432			293			(16	)		—		(1,269	)
Others		—			(3,634	)		594			375			(32	)		—		(2,697	)

Ending balance		1,757,997			789,802			273,026			51,526			1,359			2		2,873,712

(4)	Details of right-of-use assets as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021
	Building			Equipment and vehicles			Total
Acquisition cost		742,371			29,775			772,146
Accumulated depreciation		(311,326	)		(15,438	)		(326,764	)

Net carrying value		431,045			14,337			445,382


	December 31, 2020
	Building			Equipment and vehicles			Total
Acquisition cost		720,417			28,463			748,880
Accumulated depreciation		(285,285	)		(16,040	)		(301,325	)

Net carrying value		435,132			12,423			447,555

- 85 -

(5)	Details of changes in right-of-use assets for the three-month periods ended March 31, 2021 and 2020 are as follows (Unit: Korean Won in millions):


	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


	For the three-month period ended March 31, 2020
	Building			Equipment and vehicles			Total
Beginning balance		449,878			17,236			467,114
New contracts		83,925			1,221			85,146
Changes in contract		6,004			—			6,004
Termination		(777	)		(271	)		(1,048	)
Depreciation		(59,968	)		(2,497	)		(62,465	)
Others		11,130			(140	)		10,990

Ending balance		490,192			15,549			505,741

15.

INTANGIBLE ASSETS

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


	March 31, 2021
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		337,222		1,810			601,743			1,132,593			40,678			505		2,114,551
Accumulated amortization		—		(1,157	)		(394,841	)		(894,111	)		—			—		(1,290,109	)
Accumulated impairment losses		—		—			—			(33,534	)		(3,564	)		—		(37,098	)

Net carrying value		337,222		653			206,902			204,948			37,114			505		787,344


	December 31, 2020
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		334,290		1,810			582,998			1,114,615			39,454			6,669		2,079,836
Accumulated amortization		—		(1,101	)		(374,125	)		(875,636	)		—			—		(1,250,862	)
Accumulated impairment losses		—		—			—			(33,534	)		(3,363	)		—		(36,897	)

Net carrying value		334,290		709			208,873			205,445			36,091			6,669		792,077

- 86 -

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


	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.


	For the three-month period ended March 31, 2020
	Goodwill			Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		350,682			692			225,193			234,147			29,330			4,066			844,110
Acquisitions		—			8			13,227			7,236			2,031			361			22,863
Disposal		—			—			—			—			(300	)		—			(300	)
Amortization (*)		—			(49	)		(17,019	)		(16,319	)		—			—			(33,387	)
Impairment losses		—			—			—			—			(7	)		—			(7	)
Transfer		—			—			428			3			—			(431	)		—
Foreign currencies translation adjustments		(5,974	)		—			—			(1,228	)		76			—			(7,126	)
Others		(1,560	)		—			—			201			(42	)		—			(1,401	)

Ending balance		343,148			651			221,829			224,040			31,088			3,996			824,752

(*)	Amortization of other intangible assets amounting to 3,385 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, 2021		December 31, 2020
Premises and equipment		1,707		2,130
Investments of associates		48,452		50,411
Others		7,505		7,461

Total		57,664		60,002

(*)	The Group classifies assets as held for sale that are highly likely to be sold within one year from March 31, 2021 and December 31, 2020.

The Group measured assets held for sale at the lower of their net fair value or carrying amount.

- 87 -

17.

OTHER ASSETS

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


	March 31, 2021		December 31, 2020
Lease assets		1,150,252		1,116,175
Prepaid expenses		256,363		170,820
Advance payments		39,921		28,256
Assets for non-business use		12,139		12,135
Others		29,615		21,608

Total		1,488,290		1,348,994

18.

FINANCIAL LIABILITIES AT FVTPL

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


	March 31, 2021		December 31, 2020
Financial instruments at fair value through profit or loss measured at fair value		4,356,165		6,794,192
Financial liabilities at fair value through profit or loss designated as upon initial recognition		3,955		19,630

Total		4,360,120		6,813,822

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


	March 31, 2021		December 31, 2020
Deposits
Gold banking liabilities		66,814		49,279
Borrowings
Securities sold		207,510		285,026
Derivative liabilities		4,081,841		6,459,887

Total		4,356,165		6,794,192

(3)	Financial liabilities at fair value through profit or loss designated as upon initial recognition as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021		December 31, 2020
Equity-linked securities
Equity-linked securities in short position		3,955		19,630

The Group designated the financial liability at a fair value through profit or loss since the financial liability is a compound contract that includes one or more embedded derivatives which IFRS 1109 ‘Financial Instruments’ allows designation of fair value through profit or loss.

(4)	There are no accumulated changes in credit risk adjustments to financial liabilities at fair value through profit or loss designated as upon initial recognition.

The adjustment to reflect Group’s credit risk is considered in measuring the fair value of equity-linked securities index. The Group’s credit risk is determined by adjusting credit spread observed in credit rating of Group.

- 88 -

(5)	The difference between carrying amount and maturity amount of financial liabilities at fair value through profit or loss designated as upon initial recognition (Financial liabilities designated as at FVTPL) are as follows (Unit: Korean Won in millions):


	March 31, 2021			December 31, 2020
Carrying amount		3,955			19,630
Nominal amount at maturity		5,164			25,780

Difference		(1,209	)		(6,150	)

19.

DEPOSITS DUE TO CUSTOMERS

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


	March 31, 2021			December 31, 2020
Deposits in local currency
Deposits on demand		14,580,877			12,454,024
Deposits at termination		244,650,792			242,397,664
Mutual installment		25,710			26,319
Deposits on notes payables		2,753,141			2,647,492
Deposits on CMA		111,906			110,413
Certificate of deposits		2,979,923			2,072,389
Other deposits		1,444,488			1,372,461

Sub-total		266,546,837			261,080,762

Deposits in foreign currencies
Deposits in foreign currencies		32,384,961			30,408,762

Present value discount		(11,817	)		(12,245	)

Total		298,919,981			291,477,279

20.

BORROWINGS AND DEBENTURES

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


	March 31, 2021
	Lenders	Interest rate (%)		Amount
Borrowings in local currency
Borrowings from BOK	BOK		0.3		3,078,436
Borrowings from government funds	Small Enterprise And Market Service and others		0.0 ~ 3.5		2,122,270
Others	The Korea Development Bank and others		0.0 ~ 4.0		7,457,252

Sub-total					12,657,958

Borrowings in foreign currencies
Borrowings in foreign currencies	JPMorgan Chase & Co. and others		(0.4) ~ 7.3		6,428,859
Bills sold	Others		0.0 ~ 0.9		9,220
Call money	Bank and others		(0.4) ~ 2.1		416,073
Bonds sold under repurchase agreements	Other financial institutions		(0.5) ~ 10.6		744,952
Present value discount					(574	)

Total					20,256,488

- 89 -


	December 31, 2020
	Lenders	Interest rate (%)		Amount
Borrowings in local currency
Borrowings from BOK	BOK		0.3		2,678,120
Borrowings from government funds	Small Enterprise And Market Service and others		0.0 ~ 5.0		2,155,129
Others	The Korea Development Bank and others		0.0 ~ 5.5		7,255,938

Sub-total					12,089,187

Borrowings in foreign currencies
Borrowings in foreign currencies	JPMorgan Chase & Co. and others		(0.4) ~ 7.3		7,573,722
Bills sold	Others		0.0 ~ 0.9		8,924
Call money	Bank and others		(0.3) ~ 3.8		416,370
Bonds sold under repurchase agreements	Other financial institutions		(0.5) ~ 10.6		657,823
Present value discount					(560	)

Total					20,745,466

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


	March 31, 2021					December 31, 2020
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.7 ~ 4.5		31,270,454			0.8 ~ 4.5		29,623,445
Subordinated bonds		1.9 ~ 5.9		7,001,310			1.9 ~ 5.9		6,955,515
Other bonds		0.7 ~ 17.0		836,751			0.6 ~ 17.0		925,677

Sub-total				39,108,515					37,504,637

Discounts on bonds				(30,258	)				(25,279	)

Total				39,078,257					37,479,358

(*)

Included debentures under fair value hedge amounting to 3,441,597 million Won and 2,767,208 million Won as of March 31, 2021 and December 31, 2020 respectively. Also, debentures under cash flow hedge amounting to 885,064 million Won and 857,531 million Won are included as of March 31, 2021 and December 31, 2020 respectively.

- 90 -

21.

PROVISIONS

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


	March 31, 2021		December 31, 2020
Asset retirement obligation		81,679		68,402
Provisions for guarantees (*1)		85,626		89,592
Provisions for unused loan commitments		119,306		122,155
Other provisions (*2)		225,263		221,494

Total		511,874		501,643

(*1)	Provisions for guarantees includes provision for financial guarantee of 61,980 million Won and 66,232 million Won as of March 31, 2021 and December 31, 2020, 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, 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

(*)	Others have occurred as a result of new financial guarantee contract valued at initial fair value.


	For the three-month period ended March 31, 2020
	Stage1			Stage2			Stage3		Total
Beginning balance		50,801			26,303			15,382		92,486
Transfer to 12-month expected credit loss		55			(55	)		—		—
Transfer to expected credit loss for the entire period		(64	)		64			—		—
Transfer to credit-impaired financial assets		(2	)		—			2		—
Provisions used		(5,287	)		—			—		(5,287	)
Net provision(reversal) of unused amount		(736	)		1,598			5,546		6,408
Others (*)		4,040			—			—		4,040

Ending balance		48,807			27,910			20,930		97,647

(*)	Others have occurred as a result of new financial guarantee contract valued at initial fair value.

- 91 -

Provisions for unused loan commitment


	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


	For the three-month period ended March 31, 2020
	Stage1			Stage2			Stage3			Total
Beginning balance		65,038			43,164			4,352			112,554
Transfer to 12-month expected credit loss		3,708			(3,596	)		(112	)		—
Transfer to expected credit loss for the entire period		(1,725	)		1,851			(126	)		—
Transfer to credit-impaired financial assets		(52	)		(90	)		142			—
Net provision(reversal) of unused amount		(2,388	)		3,944			525			2,081
Others		41			—			—			41

Ending balance		64,622			45,273			4,781			114,676

(3)	Changes in asset retirement obligation for the three-month periods ended March 31, 2021 and 2020, obligation are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2021			2020
Beginning balance		68,402			66,485
Provisions provided		15,361			2,801
Provisions used		(1,794	)		(118	)
Reversal of provisions unused		(2	)		(74	)
Unwinding of discount		103			72
Others		(391	)		—

Ending balance		81,679			69,166

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, 2021, 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.

- 92 -

(4)	Changes in other provisions for the three-month periods ended March 31, 2021 and 2020, are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2021			2020
Beginning balance		221,494			172,455
Provisions provided		2,780			38,365
Provisions used		(1,607	)		(51,660	)
Reversal of provisions unused		(49	)		(20	)
Foreign currencies translation adjustments		2,668			2,107
Others		(23	)		—

Ending balance		225,263			161,247

(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.

For the three-month period ended March 31, 2021, the Group recognized the provisions for the required expenditure as the best estimate to fulfill its obligations as of March 31, 2021 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, 2021, the provision for this case is 106.8 billion Won and the advance payment is 114.5 billion Won.

- 93 -

22.

NET DEFINED BENEFIT LIABILITY(ASSET)

The characteristics of the Group’s defined benefit retirement pension plans are as follows:

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, 2021			December 31, 2020
Present value of defined benefit obligation		1,583,463			1,610,680
Fair value of plan assets		(1,497,719	)		(1,564,101	)

Net defined benefit liabilities (*)		85,744			46,579

(*)	Net defined benefit liability of 85,744 million Won and 46,579 million Won as of March 31, 2021 and December 31, 2020 is the subtracted amount of the net defined benefit asset of 2 million Won 5,658 million Won from the net defined benefit liability of 85,746 million Won and 52,237 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
		2021			2020
Beginning balance			1,610,680			1,442,859
Current service cost			44,608			43,402
Interest cost			9,924			8,369
Remeasurements	Financial assumption		(49,725	)		(2,956	)
	Demographic assumptions		—			—
	Experience adjustments		56,114			28,216
Retirement benefit paid			(88,648	)		(43,695	)
Foreign currencies translation adjustments			31			(140	)
Others			479			1,208

Ending balance			1,583,463			1,477,263

- 94 -

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


	For the three-month period ended March 31
	2021			2020
Beginning balance		1,564,101			1,352,971
Interest income		10,187			8,556
Remeasurements		(3,685	)		(1,443	)
Employer’s contributions		9			200
Retirement benefit paid		(72,928	)		(42,862	)
Others		35			—

Ending balance		1,497,719			1,317,422

(4)	Fair value of plan assets as of March 31, 2021 and December 31, 2020 is as follows (Unit: Korean Won in millions):


	March 31, 2021		December 31, 2020
Cash and due from banks		1,497,719		1,564,101

Meanwhile, among plan assets, realized returns on plan assets amount to 6,502 million Won and 7,113 million Won for the three-month periods ended March 31, 2021 and 2020, respectively.

(5)	Current service cost, net interest income, loss(gain) on the curtailment or settlement and remeasurements recognized in the consolidated statements comprehensive income are as follows (Unit: Korean Won in millions):


	For the three-month period ended March 31
	2021			2020
Current service cost		44,608			43,402
Net interest income		(263	)		(187	)

Cost recognized in net income		44,345			43,215

Remeasurements (*)		10,074			26,703

Cost recognized in total comprehensive income		54,419			69,918

(*)	Amount before tax

Meanwhile, retirement benefits related to defined contribution plans recognized as expenses are 1,288 million Won and 1,131 million Won for the three-month periods ended March 31, 2021 and 2020, respectively.

- 95 -

23.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

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


	March 31, 2021			December 31, 2020
Other financial liabilities:
Accounts payable		9,792,333			4,028,639
Accrued expenses		1,732,870			2,049,401
Borrowings from trust accounts		3,604,184			2,984,031
Agency business revenue		398,459			466,485
Foreign exchange payables		883,614			789,189
Domestic exchange settlement credits		129,135			180,251
Lease liabilities		389,476			407,431
Other miscellaneous financial liabilities		7,628,148			3,317,358
Present value discount		(8,747	)		(6,968	)

Sub-total		24,549,472			14,215,817

Other liabilities:
Unearned income		250,774			254,702
Other miscellaneous liabilities		295,164			219,111

Sub-total		545,938			473,813

Total		25,095,410			14,689,630

- 96 -

24.

DERIVATIVES

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


			March 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		220,736		—		—		—		—		—		—
Swaps		132,440,724		—		149,418		242,534		676		14,210		427,069
Purchase options		250,000		—		—		4,993		—		—		—
Written options		265,668		—		—		—		—		—		6,822
Currency:
Futures		29,754		—		—		—		—		—		—
Forwards		105,489,954		—		—		1,778,048		—		—		1,228,007
Swaps		91,905,430		—		—		1,598,431		37,704		—		1,408,866
Purchase options		1,332,023		—		—		21,783		—		—		—
Written options		1,828,351		—		—		—		—		—		10,967
Equity:
Futures		179,497		—		—		—		—		—		—
Forwards		11		—		—		—		—		—		—
Swaps		391,904		—		—		553		—		—		13,886
Purchase options		11,166,873		—		—		716,206		—		—		—
Written options		12,338,439		—		—		—		—		—		986,224

Total		357,839,364		—		149,418		4,362,548		38,380		14,210		4,081,841


			December 31, 2020
			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		184,413		—		—		—		—		—		—
Swaps		137,057,240		—		174,820		318,545		1,476		28		524,190
Purchase options		330,000		—		—		6,271		—		—		—
Written options		285,440		—		—		—		—		—		5,419
Currency:
Futures		2,546		—		—		—		—		—		—
Forwards		105,146,634		—		—		2,541,957		—		—		2,848,980
Swaps		87,249,320		—		—		3,325,135		63,265		—		2,415,610
Purchase options		1,147,877		—		—		59,329		—		—		—
Written options		1,632,048		—		—		—		—		—		23,271
Equity:
Futures		123,742		—		—		—		—		—		—
Forwards		11		—		—		—		—		—		—
Swaps		269,039		—		—		—		—		—		12,533
Purchase options		9,863,110		—		—		650,505		—		—		—
Written options		10,369,009		—		—		—		—		—		629,884

Total		353,660,429		—		174,820		6,901,742		64,741		28		6,459,887

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.

- 97 -

(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, USD 6M LIBOR and AUD 3M BBSW. The nominal amounts of hedging instruments related to 1M LIBOR, 3M LIBOR, 6M LIBOR and 3M BBSW in the hedging relationships of the Group are USD 370,000,000, USD 2,530,000,000, USD 500,000,000 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, 2021, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 3,441,597 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 (6M) 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.

- 98 -

Cash Flow Hedge

As of the March 31, 2021, the Group has applied cash flow hedge on local currency denominated debentures amounting to 149,947 million Won, debentures on foreign currency amounting to 735,117 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 SGD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest.

The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face amount of the hedged item in accordance with interest rate swap and currency swap.

Only interest rate and foreign exchange rate fluctuation risk, which is the most significant factor in the cash flow fluctuation of the hedged item, is addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging.

Accordingly, hedge ineffectiveness may arise from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction.

The interest rate swap, currency swap contract and the hedged item are all affected by the changes in market interest rate and foreign exchange rates which are basic factors of the derivative. The Group expects that the value of interest rate swap contract, currency swap contract and value of the hedged item will generally fluctuate in opposite direction.

- 99 -

(3)	The nominal amounts of the hedging instrument are as follows (Unit: USD, EUR, SGD, JPY and Korean Won in millions):


	March 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)		1,000,000,000		1,550,000,000		300,000,000		2,850,000,000
Interest rate swap (AUD)		—		150,000,000		—		150,000,000
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		100,000		50,000		—		150,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		80,000,000		470,000,000		—		550,000,000
Foreign currencies translation risk
Currency swap (USD)		—		100,000,000		—		100,000,000

	December 31, 2020
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swap (USD)		1,000,000,000		1,000,000,000		300,000,000		2,300,000,000
Interest rate swap (AUD)		—		150,000,000		—		150,000,000
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		100,000		50,000		—		150,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		130,000,000		470,000,000		—		600,000,000
Foreign currencies translation risk
Currency swap (SGD)		68,000,000		—		—		68,000,000

- 100 -

(4)	The average interest rate and average currency rate of the hedging instrument as of March 31, 2021 and December 31, 2020 are as follows:


		March 31, 2021
		Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)		Fixed 3.41%% receipt and Libor 3M + 1.36% floating paid Fixed 5.88% receipt and Libor 6M+2.15% floating 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 3Y CMS+0.40% receipt, 2.38% paid KRW CD+0.69% receipt, 1.99% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		USD 1M Libor+0.70% receipt, KRW 0.93% paid, USD/KRW = 1,207 USD 3M Libor+0.91% receipt, KRW 1.21% paid, USD/KRW = 1,159
Foreign currencies translation risk
Currency swap (USD)		USD 1.75% receipt, KRW 1.63% paid, USD/KRW = 1,139


		December 31, 2020
		Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)		Fixed 4.22% receipt and Libor 3M+1.71% floating paid Fixed 5.88% receipt and Libor 6M+2.15% floating 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 3Y CMS+0.40% receipt, 2.38% paid KRW CD+0.69% receipt, 2.06% paid KRW CD+0.33% receipt, 1.68% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		USD 3M Libor+0.80% receipt, KRW 1.45% paid, USD/KRW = 1,155 USD 1M Libor+0.67% receipt, KRW 1.14% paid, USD/KRW = 1,190 USD 1M Libor+0.69% receipt, KRW 1.02% paid, USD/KRW = 1,199
Foreign currencies translation risk
Currency swap (SGD)		SGD 1.91% receipt, KRW 1.98% paid, SGD/KRW = 827

- 101 -

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

March 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
2,850,000,000

Derivative assets

(designated for hedging)

Interest rate

swap

AUD
150,000,000

149,418

14,210

Derivative liabilities

(designated for hedging)

(50,683

)

Cash flow hedge

Interest rate risk

Interest

rate swap

KRW
150,000

676

Derivative liabilities

(designated for hedging)

800

Foreign currency translation risk and interest rate risk

Currency swap

USD
550,000,000

35,562

Derivative liabilities

(designated for hedging)

28,433

Foreign currency translation risk

Currency swap

USD
100,000,000

2,142

Derivative liabilities

(designated for hedging)

(601

)

December 31, 2020

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
2,300,000,000

Derivative assets

(designated for hedging)

Interest rate

swap

AUD
150,000,000

174,820

Derivative liabilities

(designated for hedging)

57,221

Cash flow hedge

Interest rate risk

Interest

rate swap

KRW
150,000

—

1,476

Derivative liabilities

(designated for hedging)

(196

)

Foreign currency translation risk and interest rate risk

Currency swap

USD
600,000,000

—

62,893

Derivative liabilities

(designated for hedging)

(69,319

)

Foreign currency translation risk

Currency swap

SGD
68,000,000

—

373

Derivative liabilities

(designated for hedging)

(4,699

)

- 102 -

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


	March 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		—		3,441,597		—		92,142		Debentures		58,653			—
Cash flow hedge
Interest rate risk
Debentures		—		149,947		—		—		Debentures		(782	)		(329	)
Foreign currencies translation risk and interest rate risk
Debentures		—		622,475		—		—		Debentures		(21,701	)		242
Foreign currencies translation risk
Debentures		—		112,642		—		—		Debentures		1,210			(1,190	)

(*)	After tax amount


	December 31, 2020
	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		—		2,767,208		—		144,741		Debentures		(59,073	)		—
Cash flow hedge
Interest rate risk
Debentures		—		149,936		—		—		Debentures		188			(909	)
Foreign currencies translation risk and interest rate risk
Debentures		—		651,704		—		—		Debentures		61,823			(95	)
Foreign currencies translation risk
Debentures		—		55,891		—		—		Debentures		6,564			(268	)

(*)	After tax amount

- 103 -

(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, 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)


		For the three-month period ended March 31, 2020
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss that includes hedge ineffectiveness
Fair value hedge	Interest rate risk		3,751	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, 2021
		Changes in the value of hedging instruments recognized in OCI			Hedge ineffective ness 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)


		For the three-month period ended March 31, 2020
		Changes in the value of hedging instruments recognized in OCI			Hedge ineffective ness 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		(801	)		32		—		Other net operating income(expense)		—		Other net operating income(expense)
	Foreign currencies translation risk and interest rate risk		24,787			525		(5,803	)	Other net operating income(expense)		(27,954	)	Other net operating income(expense)
	Foreign currencies translation risk		472			152		(886	)	Other net operating income(expense)		39		Other net operating income(expense)

- 104 -

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
	2021			2020
Beginning balance		6,939			52,260
New transactions		23,025			26,268
Amounts recognized in losses		(6,007	)		(27,923	)

Ending balance		23,957			50,605

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, 2021 and 2020.

26.

EQUITY

(1)	Details of equity as of March 31, 2021 and December 31, 2020 are as follows (Unit: Korean Won in millions):


	March 31, 2021			December 31, 2020
Capital
Common stock capital		3,611,338			3,611,338
Hybrid securities		1,895,366			1,895,366
Capital surplus
Paid in capital in excess of par		608,348			608,348
Others		17,766			17,763

Sub-total		626,114			626,111

Capital adjustments
Treasury stock		—			—
Other adjustments (*1)		(1,720,861	)		(1,775,312	)

Sub-total		(1,720,861	)		(1,775,312	)

Accumulated other comprehensive income
Financial assets at FVTOCI		(37,157	)		(9,833	)
Changes in capital due to equity method		(1,026	)		(2,609	)
Loss from foreign business translation		(219,524	)		(298,363	)
Remeasurements of defined benefit plan		(268,445	)		(261,195	)
Loss on evaluation of cash flow hedge		(1,529	)		(1,386	)
Capital related to noncurrent assets held for sale		1,179			1,226

Sub-total		(526,502	)		(572,160	)

Retained earnings (2) (3)		19,627,439			19,268,265
Non-controlling interest (*4)		3,665,436			3,672,237

Total		27,178,330			26,725,845

(*1)	Included 178,060 million Won in capital transaction gains and losses recognized by Woori Bank and (formerly) Woori Financial Group in 2014 and 2,238,228 million Won due to the spin-off of Gyeongnam Bank and Gwangju Bank.

(*2)	The regulatory reserve for credit losses in retained earnings amounted to 2,568,367 million Won and 2,547,547 million Won as of March 31, 2021 and December 31, 2020, respectively in accordance with the relevant article.

(*3)	The earned surplus reserve in retained earnings amounted to 122,370 million Won and 62,830 million Won as of March 31, 2021 and December 31, 2020 in accordance with the Article 53 of the Financial Holding Company Act.

(*4)

The hybrid securities issued by Woori Bank amounting to 3,105,070 million Won as of March 31, 2021 and December 31, 2020, respectively, are recognized as non-controlling interests. 28,132 million Won and 29,213 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, 2021 and 2020, respectively.

- 105 -

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


	March 31, 2021		December 31, 2020
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		722,267,683 Shares		722,267,683 Shares
Capital stock		3,611,338 million Won		3,611,338 million Won

(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, 2021			December 31, 2020
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		2020-02-06		—		3.34		400,000			400,000
Securities in local currency		2020-06-12		—		3.23		300,000			300,000
Securities in local currency		2020-10-23		—		3.00		200,000			200,000
Issuance cost								(4,634	)		(4,634	)

Total								1,895,366			1,895,366

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date of issuance.

(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, 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.

- 106 -


	For the three-month period ended March 31, 2020
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect			Ending balance
Net gain(loss) on valuation of financial assets at FVTOCI		(71,914	)		(114,432	)		(2,732	)		31,469			(157,609	)
Changes in capital due to equity method		915			(1,389	)		—			382			(92	)
Gain(loss) on foreign currency translation of foreign operations		(152,987	)		34,317			—			(9,437	)		(128,107	)
Remeasurement gain(loss) related to defined benefit plan		(270,977	)		(26,706	)		—			7,344			(290,339	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		(5,692	)		(13,083	)		—			3,598			(15,177	)

Total		(500,655	)		(121,293	)		(2,732	)		33,356			(591,324	)

(*)	The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive income is a change due to the period evaluation and the reclassification adjustments amounting to 288 million Won are due to disposal of equity securities during the period.

(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, 2021		December 31, 2020
Beginning balance		2,568,367		2,547,547
Planned provision(reversal) of regulatory reserve for credit loss		83,080		20,820

Ending balance		2,651,447		2,568,367

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
	2021			2020
Net income before regulatory reserve		718,867			557,771
Provision(reversal) of regulatory reserve for credit loss		83,080			67,919
Adjusted net income after the provision of regulatory reserve		635,787			489,852
Dividends to hybrid securities		(15,775	)		(8,513	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		620,012			481,339
Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)		858			667

- 107 -

27.

DIVIDENDS

Dividends per share and the total dividends for the fiscal year ending December 31, 2020 were 360 Won and 260,017 million Won, respectively, and the dividends were approved at the regular general shareholders’ meeting held on March 26, 2021, and were paid in April, 2021.

28.

NET INTEREST INCOME

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


	For the three-month periods ended March 31
	2021		2020
Financial assets at FVTPL		11,374		12,529
Financial assets at FVTOCI		91,786		126,177
Financial assets at amortized cost
Securities at amortized cost		82,243		104,059
Loans and other financial assets at amortized cost
Interest on due from banks		9,454		22,869
Interest on loans		2,124,345		2,229,901
Interest of other receivables		7,983		8,279

Subtotal		2,141,782		2,261,049

Total		2,327,185		2,503,814

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


	For the three-month periods ended March 31
	2021		2020
Interest on deposits due to customers		467,451		749,171
Interest on borrowings		48,554		84,671
Interest on debentures		181,628		188,493
Other interest expense		7,925		15,362
Interest on lease liabilities		1,961		3,158

Total		707,519		1,040,855

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
	2021		2020
Fees and commission received for brokerage		47,124		40,227
Fees and commission received related to credit		49,481		52,928
Fees and commission received for electronic finance		31,956		31,684
Fees and commission received on foreign exchange handling		13,264		14,391
Fees and commission received on foreign exchange		13,583		16,675
Fees and commission received for guarantee		17,537		18,128
Fees and commission received on credit card		137,394		123,287
Fees and commission received on securities business		24,061		16,431
Fees and commission from trust management		47,204		50,363
Fees and commission received on credit information		2,422		3,403
Fees and commission received related to lease		82,192		1,686
Other fees		52,647		41,508

Total		518,865		410,711

- 108 -

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


	For the three-month periods ended March 31
	2021		2020
Fees and commissions paid		59,846		41,360
Credit card commission		97,749		93,136
Brokerage commission		239		61
Others		2,570		2,174

Total		160,404		136,731

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
	2021		2020
Dividend income related to financial assets at FVTPL		53,318		30,635
Dividend income related to financial assets at FVTOCI		13,272		17,134

Total		66,590		47,769

(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
	2021		2020
Dividend income recognized from assets held
Equity securities		13,272		17,134

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
	2021		2020
Gain on financial instruments at FVTPL measured at fair value		81,121		457,304
Gain on financial instruments at FVTPL designated as upon initial recognition		962		10,771

Total		82,083		468,075

- 109 -

(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
			2021			2020
Financial assets at FVTPL	Securities	Gain on transactions and valuation		78,819			48,626
		Loss on transactions and valuation		(51,874	)		(68,367	)

		Sub-total		26,945			(19,741	)

	Loans	Gain on transactions and valuation		5,497			69
		Loss on transactions and valuation		(1,395	)		(762	)

		Sub-total		4,102			(693	)

	Other financial assets	Gain on transactions and valuation		5,299			2,866
		Loss on transactions and valuation		(3,554	)		(2,687	)

		Sub-total		1,745			179

	Sub-total			32,792			(20,255	)

Derivatives (Held for trading)	Interest rates derivatives	Gain on transactions and valuation		454,579			630,560
		Loss on transactions and valuation		(375,637	)		(944,777	)

		Sub-total		78,942			(314,217	)

	Currency derivatives	Gain on transactions and valuation		4,133,873			6,155,635
		Loss on transactions and valuation		(4,171,473	)		(5,387,589	)

		Sub-total		(37,600	)		768,046

	Equity derivatives	Gain on transactions and valuation		809,549			1,148,971
		Loss on transactions and valuation		(801,857	)		(1,125,034	)

		Sub-total		7,692			23,937

	Other derivatives	Gain on transactions and valuation		—			—
		Loss on transactions and valuation		(705	)		(207	)

		Sub-total		(705	)		(207	)

	Sub-total			48,329			477,559

	Net, total			81,121			457,304

(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
	2021		2020
Loss on equity-linked securities		962		10,771

- 110 -

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
	2021		2020
Gain on redemption of securities		1		(39	)
Gain on transactions of securities		37,010		2,639

Total		37,011		2,600

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
	2021			2020
Impairment loss due to credit loss on financial assets measured at FVTOCI		(1,018	)		(12	)
Reversal of impairment loss due to credit loss on securities at amortized cost		187			143
Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost		(137,209	)		(102,534	)
Provision for provision on guarantee		(857	)		(6,408	)
Reversal of(provision for) unused loan commitment		2,904			(2,081	)

Total		(135,993	)		(110,892	)

- 111 -

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
			2021			2020
Employee benefits	Short-term employee benefits	Salaries		404,239			395,336
	Short-term employee benefits	Employee fringe benefits		130,109			121,556
	Share based payment			2,353			(429	)
	Retirement benefit service costs			45,633			44,346
	Termination			281			(337	)

	Subtotal			582,615			560,472

Depreciation and amortization				135,425			134,676
Other general and administrative expenses	Rent			19,306			14,926
	Taxes and public dues			37,156			34,187
	Service charges			53,058			56,887
	Computer and IT related			26,510			26,423
	Telephone and communication			18,137			16,825
	Operating promotion			9,203			11,023
	Advertising			9,565			9,352
	Printing			1,650			1,895
	Traveling			1,704			2,177
	Supplies			1,708			3,237
	Insurance premium			2,554			2,805
	Reimbursement			(526	)		670
	Maintenance			4,905			3,906
	Water, light, and heating			4,358			4,453
	Vehicle maintenance			2,346			2,474
	Others			7,933			6,138

	Sub-total			199,567			197,378

	Total			917,607			892,526

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


	For the three-month periods ended March 31
	2021		2020
Gain on transactions of foreign exchange		121,832		77,384
Gain related to derivatives (Designated for hedging)		25,999		139,993
Gain on fair value hedged items		58,653		—
Others		24,341		8,806

Total		230,825		226,183

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


	For the three-month periods ended March 31
	2021		2020
Losses on transactions of foreign exchange		116,039		416,996
KDIC deposit insurance premium		97,545		89,211
Contribution to miscellaneous funds		86,146		78,634
Losses related to derivatives (Designated for hedging)		50,389		374
Losses on fair value hedged items		—		105,769
Others (*)		92,081		40,573

Total		442,200		731,557

(*)	Other expense includes such expenses amounting to 2,989 million Won and 3,385 million Won, respectively, of intangible asset amortization expense for the three-month periods ended March 31, 2021 and 2020, respectively.

- 112 -

(4)	Share-based payment

Details of performance condition share-based payment granted to executives as of March 31, 2021 and December 31, 2020 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)		9,222 Won
Valuation method		Black-Scholes Model
Expected dividend rate		4.28%
Expected maturity date		1.75 years
Number of shares remaining	As of March 31, 2021	602,474 shares
Number of shares remaining	As of December 31, 2020	602,474 shares
Number of shares granted (*2)	As of March 31, 2021	602,474 shares
Number of shares granted (*2)	As of December 31, 2020	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)		8,836 Won
Valuation method		Black-Scholes Model
Expected dividend rate		4.28%
Expected maturity date		2.75 years
Number of shares remaining	As of March 31, 2021	944,343 shares
Number of shares remaining	As of December 31, 2020	944,343 shares
Number of shares granted (*2)	As of March 31, 2021	944,343 shares
Number of shares granted (*2)	As of December 31, 2020	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)		8,466 Won
Valuation method		Black-Scholes Model
Expected dividend rate		4.28%
Expected maturity date		3.75 years
Number of shares remaining	As of March 31, 2021	268,784 shares
Number of shares remaining	As of December 31, 2020	—
Number of shares granted (*2)	As of March 31, 2021	268,784 shares
Number of shares granted (*2)	As of December 31, 2020	—

(*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.

- 113 -

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, 2021 and December 31, 2020, the book value of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 16,176 million Won and 13,823 million Won, respectively.

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
	2021			2020
Gains on valuation of investments in joint ventures and associates		6,085			15,064
Losses on valuation of investments in joint ventures and associates		(10,877	)		(7,910	)
Impairment losses of investments in joint ventures and associates		(799	)		—

Total		(5,591	)		7,154

(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
	2021			2020
Other non-operating incomes		24,827			19,224
Other non-operating expenses		(10,986	)		(47,103	)

Total		13,841			(27,879	)

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


	For the three-month periods ended March 31
	2021		2020
Rental fee income		3,663		3,580
Gains on disposal of premises and equipment, intangible assets and other assets		4,459		6,449
Reversal of impairment loss of premises and equipment, intangible assets and other assets		144		35
Others		16,561		9,160

Total		24,827		19,224

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


	For the three-month periods ended March 31
	2021		2020
Depreciation on investment properties		574		547
Operating expenses on investment properties		184		224
Losses on disposal of premises and equipment, intangible assets and other assets		620		564
Impairment losses of premises and equipment, intangible assets and other assets		220		568
Donation		2,588		4,538
Others		6,800		40,662

Total		10,986		47,103

- 114 -

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
	2021			2020
Current tax expense
Current tax expense with respect to the current period		233,532			58,235
Adjustments recognized in the current period in relation to the tax expense of prior periods		912			(2,624	)

Sub-total		234,444			55,611

Deferred tax expense
Change in deferred tax assets(liabilities) due to temporary differences		(20,868	)		104,501
Income tax expense directly attributable to equity		9,319			34,730

Sub-total		(11,549	)		139,231

Income tax expense		222,895			194,842

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, 2021, is 23.7% (The weighted average annual effective tax rate for the March 31, 2020, is 25.9%).

- 115 -

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
	2021			2020
Net income attributable to common shareholders		667,103			518,216
Dividends to hybrid securities		(15,775	)		(8,513	)
Net income attributable to common shareholders		651,328			509,703
Weighted average number of common shares outstanding (Unit: million shares)		722			722
Basic EPS (Unit: Korean Won)		902			706

(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, 2021
	Period	Number of shares			Dates (Unit: Day)		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


	For the three-month period ended March 31, 2020
	Period	Number of shares			Dates		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period	2020-01-01 ~ 2020-03-31		722,267,683			91		65,726,359,153
Treasury stock	2020-01-01 ~ 2020-03-31		(2	)		91		(182	)

Sub-total (①)								65,726,358,971

Weighted average number of common shares outstanding (②=(①/91)								722,267,681

Diluted EPS is equal to basic EPS because there is no dilution effect for the three-month periods ended March 31, 2021 and 2020.

38.

CONTINGENT LIABILITIES AND COMMITMENTS

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


	March 31, 2021		December 31, 2020
Confirmed guarantees
Guarantee for loans		36,188		103,229
Acceptances		488,197		602,014
Guarantees in acceptances of imported goods		97,905		78,395
Other confirmed guarantees		6,564,462		6,491,608

Sub-total		7,186,752		7,275,246

Unconfirmed guarantees
Local letters of credit		251,030		187,146
Letters of credit		3,113,180		3,025,923
Other unconfirmed guarantees		675,264		403,652

Sub-total		4,039,474		3,616,721

Commercial paper purchase commitments and others		901,601		917,489

Total		12,127,827		11,809,456

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


	March 31, 2021		December 31, 2020
Loan commitments		115,036,099		112,088,680
Other commitments (*)		8,167,464		7,827,774

(*)	As of March 31, 2021 and December 31, 2020, the amount of unsecured bills (purchase note sales) and discounts on electronic short-term bond sales (purchase) are 3,443,981 million Won and 2,894,688 million Won, respectively.

(3)	Litigation case

Legal cases where the Group is involved are as follows (Unit: Korean Won in millions):

March 31, 2021

December 31, 2020

As plaintiff

As defendant

As plaintiff

As defendant

Number of cases (*)

141 cases

485 cases

138 cases

460 cases

Amount of litigation

323,528

384,842

413,852

413,744

Provisions for litigations

24,685

24,336

(*)	The number of lawsuits as of March 31, 2021 and December 31, 2020 do not include fraud lawsuits, etc. and those lawsuits that are filed only to extend the statute of limitation.

(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 127,657 million Won as other financial liabilities for the second sales agreement..

Lime Asset Management Co., Ltd. announced the suspension of redemption of many funds in operation in October 2019. The Group’s total amount of sales of fund under management of Lime Asset Management Co., Ltd.’s subject to redemption suspension is 1,348 accounts and 270.3 billion Won at the end of March 2021. In December 2020, Lime Asset Management Co., Ltd.’s business registration was revoked, and funds subject to redemption suspension were transferred to Wellbridge Asset Management Co., Ltd., which was jointly established by distributors. The Financial Supervisory Service Dispute Mediation Committee was held on 23 February 2021 to discuss the incomplete sales of vendors. The consolidated company held a board meeting on March 15, 2021 to accept the decision of the Dispute Mediation Committee and resolve to expand the application of autonomous mediation, and is currently in the process of confirming the validity and compensation.

As of March 31, 2021, Woori Asset Trust Co., Ltd., a subsidiary, has agreed to carry out construction completion obligations for 55 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 March 31, 2021, the total PF loan amount of PF loan institutions invested in the project of the Land Trust responsible for Construction and Management is 1,615,588 million Won. Although additional losses may occur in relation to the construction completion obligations, the financial statements at March 31, 2021 do not reflect these effects since losses are unlikely and the amount cannot be estimated reliably.

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39.

RELATED PARTY TRANSACTIONS

Related parties of the Group as of March 31, 2021 and December 31, 2020, 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, 2021 and 2020 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, 2021			December 31, 2020
Associates	W Service Networks Co., Ltd.	Loans		36			21
		Deposits due to customers		2,176			2,183
		Accrued expenses		6			6
		Other liabilities		470			459
	Korea Credit Bureau Co., Ltd.	Loans		1			1
		Deposits due to customers		1,635			2,311
		Other liabilities		7			5
	Korea Finance Security Co., Ltd.	Loans		3,421			3,440
		Loss allowance		(6	)		(6	)
		Deposits due to customers		2,923			1,927
		Other liabilities		1			1
	Chin Hung International Inc.	Loans		—			257
		Loss allowance		—			(3	)
		Deposits due to customers		7,472			8,715
		Other liabilities		170			171
	LOTTE CARD Co. Ltd.	Loans		6,563			7,500
		Loss allowance		(67	)		(77	)
		Other assets		9			12
		Deposits due to customers		2,778			2,697
		Other liabilities		113			113
	K BANK Co., Ltd.	Loans		200			104
		Account receivables		53			26
		Other assets		—			2
	Well to Sea No.3 Private Equity Fund	Deposits due to customers		357			4,997
	Others (1) (2)	Other assets		740			651
		Deposits due to customers		2,245			5,831
		Other liabilities		1			5

(*1)

Others include Smart Private Equity Fund No.2, IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, Woori G IPO10 [FI_Bal][F]C(F), Woori G Star Private Placement Investment Trust No.33 [FI], Woori G Senior Loan No.1, Woori G Egis Bond[FI][F](C(F)), Woori G Clean Energy No.1, Woori Star50 Master Fund ClassC-F, Dongwoo C & C Co., Ltd., Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Woori-Q Corporate Restructuring Private Equity Fund, Woori High plus G.B. Securities Feeder Fund1(G.B.), Uri Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private Equity Fund 2, Partner One Value Up I Private Equity Fund and etc., as of March 31, 2021.

(*2)

Others include Smart Private Equity Fund No.2, IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, Woori G IPO10 [FI_Bal][F]C(F), Woori G Senior Loan No.1, Woori G Egis Bond[FI][F](C(F)), Woori G Clean Energy No.1, Woori Star50 Master Fund ClassC-F, Dongwoo C & C Co., Ltd., Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Woori-Q Corporate Restructuring Private Equity Fund, Woori High plus G.B. Securities Feeder Fund1(G.B.), Uri Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private Equity Fund 2, Partner One Value Up I Private Equity Fund and etc., as of December 31, 2020.

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(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	2021			2020
Associates	W Service Network Co., Ltd.	Other income		8			8
		Interest expenses		2			4
		Fees expenses		162			85
		Other expenses		480			432
	Korea Credit Bureau Co., Ltd.	Interest expenses		2			—
		Fees expenses		837			741
	Korea Finance Security Co., Ltd.	Interest income		19			—
		Interest expenses		1			1
		Provision for allowance for credit loss		—			4
		Other expenses		22			26
	Chin Hung International Inc	Interest expenses		4			7
		Reversal of allowance for credit loss		—			(1	)
	LOTTE CARD Co., Ltd.	Interest income		74			77
		Fees income		982			678
		Interest expenses		2			27
		Reversal of allowance for credit loss		(9	)		—
	K BANK Co., Ltd.	Fees income		503			346
	Well to Sea No.3 Private Equity Fund	Interest income		—			399
		Provision for allowance for credit loss		—			2
	Others (1) (2)	Fees income		721			616
		Other income		—			4
		Interest expenses		3			8

(*1)

Others include AJU TAERIM 1st Fund, Woori G IPO10 [FI_Bal][F]C(F), Woori G Star Private Placement Investment Trust No.33 [FI], Woori G Senior Loan No.1, Woori G Egis Bond[FI][F](C(F)), Woori G Clean Energy No.1, Woori Star50 Master Fund ClassC-F, Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Woori-Q Corporate Restructuring Private Equity Fund, Woori High plus G.B. Securities Feeder Fund1(G.B.), Uri Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private Equity Fund 2, Partner One Value Up I Private Equity Fund, PCC-Woori LP Secondary Fund and etc., as of March 31, 2021.

(*2)

Others include Smart Private Equity Fund No.2, IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, AJU TAERIM 1st Fund, Woori G IPO10 [FI_Bal][F]C(F),Woori G Senior Loan No.1, Woori G Egis Bond[FI][F](C(F)), Woori G Clean Energy No.1, Woori Star50 Master Fund ClassC-F, Saman Corporation, Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Woori-Q Corporate Restructuring Private Equity Fund, Woori High plus G.B. Securities Feeder Fund1(G.B.), Uri Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private Equity Fund 2, Partner One Value Up I Private Equity Fund, PCC-Woori LP Secondary Fund and etc., as of March 31, 2020.

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(3)	Major loan transactions with related parties for the three-month periods ended March 31, 2021 and 2020 are as follows (Unit: Korean Won in millions):


		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.


		For the three-month period ended March 31, 2020
Related parties		Beginning balance		Loan		Collection		Ending balance (*)
Associates	W Service Network Co., Ltd.		23		112		99		36
	Korea Credit Bureau Co., Ltd.		3		2		4		1
	Korea Finance Security Co., Ltd.		1,860		2,235		162		3,933
	Chin Hung International Inc		244		624		709		159
	LOTTE CARD Co., Ltd.		7,500		—		—		7,500
	K BANK Co., Ltd.		141		561		563		139
	Well to Sea No. 3 Private Equity Fund		4,490		1,600		—		6,090

(*)	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 period March 31, 2021 and 2020 are as follows (Unit: Korean Won in millions):


		For the three-month period ended March 31, 2021
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	W Service Networks Co., Ltd		1,180		—		—		1,180
	Partner One Value Up I Private Equity Fund		863		—		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.


		For the three-month period ended March 31, 2020
Related parties		Beginning balance		Borrowings		Repayment and others		Ending balance (*1)
Associates	Saman Corporation (*2)		2,522		141		—		2,663
	W Service Networks Co., Ltd		1,180		—		—		1,180
	Chin Hung International Inc		400		—		400		—
	Partner One Value Up I Private Equity Fund		1,150		1,356		1,150		1,356

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

(*2)	Excluded from the related parties due to the loss of significant influence for the three-month period ended March 31, 2020.

(5)	There are no major borrowing transactions with related parties for the three-month periods ended March 31, 2021 and 2020.

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


Warrantee	March 31, 2021		December 31, 2020		Warranty
Korea Finance Security Co., Ltd.		839		820	Unused loan commitment
Korea Credit Bureau Co., Ltd.		34		34	Unused loan commitment
W Service Network Co., Ltd.		164		179	Unused loan commitment
Chin Hung International Inc.		15,874		16,167	Unused loan commitment
K BANK Co., Ltd.		100		196	Unused loan commitment
LOTTE CARD Co. Ltd.		500,000		500,000	Unused loan commitment

As of March 31, 2021 and December 31, 2020, the recognized payment guarantee provisions are 283 million Won and 284 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, 2021		December 31, 2020		Warranty
Together-Korea Government Private Pool Private Securities Investment Trust No.3		990,000		990,000	Securities purchase commitment
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		9,704		9,704	Securities purchase commitment
Woori G Senior Loan No.1		40,050		53,041	Securities purchase commitment
Woori G Clean Energy No.1		6,023		7,485	Securities purchase commitment
Woori Star50 Master Fund ClassC-F		500		—	Securities purchase commitment
Woori Seoul Beltway Private Special Asset Fund		40,710		41,393	Securities purchase commitment
Woori-Shinyoung Growth-Cap Private Equity Fund I		12,799		12,799	Securities purchase commitment
Woori-Q Corporate Restructuring Private Equity Fund		36,355		36,355	Securities purchase commitment
Union Technology Finance Investment Association		7,500		10,500	Securities purchase commitment
Genesis Eco No.1 Private Equity Fund		3,600		—	Securities purchase commitment
Genesis Environmental Energy Company 1st Private Equity Fund		916		916	Securities purchase commitment
JC Assurance No.2 Private Equity Fund		1,650		1,650	Securities purchase commitment
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		550		550	Securities purchase commitment
PCC-Woori LP Secondary Fund		2,525		2,525	Securities purchase commitment

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


	For the three-month period ended March 31
	2021		2020
Short-term employee salaries		6,416		5,549
Retirement benefit service costs		290		273
Share-based compensation		1,005		(151	)

Total		7,711		5,671

Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 4,614 million Won and 3,888 million Won, as of March 31, 2021 and December 31, 2020, 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 11,568 million Won and 11,155 million Won, respectively, as of March 31, 2021 and December 31, 2020.

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40.

LEASES

(1)

Lessor

Finance lease

①

The total investment in finance lease and the present value of the minimum lease payments to be recovered are as follows (Unit: Korean Won in millions):


	March 31, 2021
	Total investment in lease		Net investment in lease
Within one year		35,635		34,965
After one year but within two years		62,171		58,074
After two years but within three years		154,171		139,788
After three years but within four years		205,902		183,357
After four years but within five years		372,109		328,940
After five years		35		27

Total		830,023		745,151


	December 31, 2020
	Total investment in lease		Net investment in lease
Within one year		24,649		23,957
After one year but within two years		48,781		45,575
After two years but within three years		132,894		120,414
After three years but within four years		171,137		151,756
After four years but within five years		277,282		244,481
After five years		16		12

Total		654,759		586,195

②

The unrealized interest income of the finance lease is as follows (Unit: Korean Won in millions):


	March 31, 2021		December 31, 2020
Total investment in lease		830,023		654,759
Net investment in lease		745,151		586,195
Present value of minimum lease payments		745,151		586,133
Present value of unguaranteed residual value		—		62

Unearned interest income		84,872		68,564

Operating lease

①

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


	March 31, 2021			December 31, 2020
Acquisition cost		1,563,505			1,507,156
Accumulated depreciation		(413,253	)		(390,981	)

Net carrying value		1,150,252			1,116,175

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②

The details of changes in operating lease assets as of March 31, 2021 are as follows and there is no details of changes in operating lease assets as of March 31, 2020 (Unit: Korean Won in millions):


	Amount
Beginning balance		1,116,175
Acquisition		112,107
Disposal		(24,539	)
Depreciation		(54,197	)
Others		706

Ending balance		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, 2021		December 31, 2020
Within one year		251,902		240,005
After one year but within two years		229,922		223,074
After two years but within three years		155,872		156,859
After three years but within four years		80,919		80,174
After four years but within five years		26,633		24,992

Total		745,248		725,104

④

There is no adjusted lease payments recognized as profit or loss for the three-month periods ended March 31, 2021 and 2020.

(2)

Lessee

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


	March 31, 2021		December 31, 2020
Lease payments
Within one year		165,300		173,885
After one year but within five years		183,877		200,844
After five years		30,875		34,787

Total		380,052		409,516

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


	For the three-month periods ended March 31
	2021		2020
Total cash outflows from lease		51,197		59,525

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
	2021		2020
Lease payments for short-term leases		437		369
Lease payments for which the underlying asset is of low value		431		89

Total		868		458

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 9,654 million Won, to reflect changes in lease payments arising from the rent concession.

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41.

EVENTS AFTER THE REPORTING PERIOD

(1)	On April 15, 2021, Parent Company additionally acquired 7,395,000 shares of common stock which is 13.3% equity (excluding treasury stocks, 12.9% interest including treasury stocks) of Woori Financial Capital Co., Ltd., the subsidiary, from Aju Corporation.

(2)	Woori Savings Bank, a subsidiary of the Parent Company, decided to raise the capital increase of 100 billion Won (all allocated to the parent company) at the Board of Directors’ meeting on May 6, 2021, and the Parent Company made a full payment of stock on May 13, 2021.

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