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Financial risk management (Tables)

12 Months Ended

Dec. 31, 2025

Disclosure of financial risk management [Abstract]

Reflection of forward-looking information

① Upside scenario


Major variables (1), (2), (*3)	Correlation between credit risks	2024.4Q		2025
Major variables (1), (2), (*3)	Correlation between credit risks	2024.4Q		1Q		2Q		3Q		4Q
GDP growth rate (YoY %)	(-)		2.1		1.5		2.4		3.2		2.8
Private consumption index (YoY %)	(-)		1.2		1.6		2.5		2.6		2.5
Facility investment growth rate (YoY %)	(-)		4.9		4.4		6.5		1.2		3.5
Consumer price index growth rate (%)	(+)		1.6		2.2		2.4		2.4		2.3
Balance on current account (100 million dollars)	(-)		220.0		210.0		190.0		180.0		200.0
Government bond 3y yields (%)	—		2.8		3.1		3.2		3.2		3.2

② Central scenario


Major variables (1), (2), (*3)	Correlation between credit risks	2024.4Q		2025
Major variables (1), (2), (*3)	Correlation between credit risks	2024.4Q		1Q		2Q		3Q		4Q
GDP growth rate (YoY %)	(-)		2.1		1.2		2.0		2.4		2.2
Private consumption index (YoY %)	(-)		1.2		1.3		2.1		2.0		1.8
Facility investment growth rate (YoY %)	(-)		4.9		4.0		5.8		0.8		2.5
Consumer price index growth rate (%)	(+)		1.6		1.9		2.1		2.1		2.0
Balance on current account (100 million dollars)	(-)		200.0		190.0		170.0		160.0		180.0
Government bond 3y yields (%)	—		2.8		2.9		2.9		3.0		2.9

③ Downside scenario


Major variables (1), (2), (*3)	Correlation between credit risks	2024.4Q		2025
Major variables (1), (2), (*3)	Correlation between credit risks	2024.4Q		1Q		2Q		3Q		4Q
GDP growth rate (YoY %)	(-)		2.1		0.8		1.4		1.7		1.0
Private consumption index (YoY %)	(-)		1.2		0.9		1.5		1.1		0.6
Facility investment growth rate (YoY %)	(-)		4.9		2.8		4.5		0.2		1.3
Consumer price index growth rate (%)	(+)		1.6		1.6		1.8		1.8		1.7
Balance on current account (100 million dollars)	(-)		170.0		160.0		140.0		120.0		130.0
Government bond 3y yields (%)	—		2.8		2.8		2.7		2.4		2.2

④ Worst scenario


Major variables (1), (2), (*4)	Correlation between credit risks	Economic Crisis for 1 year
Major variables (1), (2), (*4)	Correlation between credit risks	Economic Crisis for 1 year
GDP growth rate (YoY %)	(-)		(5.1	)
Private consumption index (YoY %)	(-)		(11.9	)
Facility investment growth rate (YoY %)	(-)		(38.6	)
Consumer price index growth rate (%)	(+)		7.5
Balance on current account (100 million dollars)	(-)		401.1
Government bond 3y yields (%)	—		6.2

(*1)

As a result of examining the correlation between each variable, the Group applied key variables to reflect the final future economic outlook. Shinhan Bank applied key variables such as GDP growth rate, current account balance, and

3-year

government bond yield, while Shinhan Card Co., Ltd. applied key variables such as GDP growth rate. In addition to the table above, the Group has selected macroeconomic indicators such as KOSPI index.

(*2)

Considering the default forecast period, the Group reflected the future economic outlook.

(*3)

The macroeconomic outlook figures are estimated by the Group for the purpose of calculating expected credit losses based on information from domestic and foreign research institutes. Therefore, it could be different from other institutions’ estimates.

(*4)

Reflected considering the foreign exchange crisis.

① Upside scenario


Major variables (1), (2), (*3)	Correlation between credit risks		2025.4Q			2026
Major variables (1), (2), (*3)	Correlation between credit risks		2025.4Q			1Q		2Q		3Q		4Q
GDP growth rate (YoY %)		(-)		1.5			2.9		2.8		2.0		2.0
Private consumption index (YoY %)		(-)		1.9			3.2		3.3		2.2		2.0
Facility investment growth rate (YoY %)		(-)		(1.7	)		1.9		4.6		2.2		1.7
Consumer price index growth rate (%)		(+)		2.4			2.1		2.1		2.2		2.2
Balance on current account (100 million dollars)		(-)		300.0			220.0		230.0		240.0		260.0
Government bond 3y yields (%)		—		2.8			2.6		2.6		2.7		2.7
② Central scenario
Major variables (1), (2), (*3)	Correlation between credit risks		2025.4Q			2026
Major variables (1), (2), (*3)	Correlation between credit risks		2025.4Q			1Q		2Q		3Q		4Q
GDP growth rate (YoY %)		(-)		1.5			2.4		2.1		1.3		1.3
Private consumption index (YoY %)		(-)		1.9			2.7		2.6		1.2		1.2
Facility investment growth rate (YoY %)		(-)		(1.7	)		1.3		3.9		1.8		1.0
Consumer price index growth rate (%)		(+)		2.4			1.6		1.8		2.0		2.0
Balance on current account (100 million dollars)		(-)		300.0			210.0		220.0		230.0		250.0
Government bond 3y yields (%)		—		2.8			2.3		2.4		2.4		2.5

③ Downside scenario


Major variables (1), (2), (*3)	Correlation between credit risks	2025.4Q			2026
Major variables (1), (2), (*3)	Correlation between credit risks	2025.4Q			1Q			2Q		3Q		4Q
GDP growth rate (YoY %)	(-)		1.5			1.6			1.0		0.3		0.3
Private consumption index (YoY %)	(-)		1.9			1.4			1.0		0.4		0.5
Facility investment growth rate (YoY %)	(-)		(1.7	)		(0.1	)		2.4		1.2		0.4
Consumer price index growth rate (%)	(+)		2.4			1.6			1.7		1.8		1.8
Balance on current account (100 million dollars)	(-)		300.0			190.0			200.0		210.0		230.0
Government bond 3y yields (%)	—		2.8			2.1			1.9		1.6		1.7

④ Worst scenario


Major variables (1), (2), (*4)	Correlation between credit risks	Economic Crisis for 1 year
Major variables (1), (2), (*4)	Correlation between credit risks	Economic Crisis for 1 year
GDP growth rate (YoY %)	(-)		(5.1	)
Private consumption index (YoY %)	(-)		(11.9	)
Facility investment growth rate (YoY %)	(-)		(38.6	)
Consumer price index growth rate (%)	(+)		7.5
Balance on current account (100 million dollars)	(-)		401.1
Government bond 3y yields (%)	—		4.6

(*1)

3-year

government bond yield, while Shinhan Card Co., Ltd. applied key variables such as GDP growth rate. In addition to the table above, the Group has selected macroeconomic indicators such as unemployment rate.

(*2)

Considering the default forecast period, the Group reflected the future economic outlook.

(*3)

(*4)

Reflected considering the foreign exchange crisis.

Maximum exposure to credit risk

The details of the maximum exposure to credit risk for financial instruments held as of December 31, 2024 and 2025 are as follows:


	2024		2025
Due from banks and loans at amortized cost (1), (3):
Banks	W	14,058,051		12,658,709
Retail		199,809,576		208,308,298
Government/Public sector/Central bank		27,228,308		26,417,332
Corporations		218,713,457		226,554,125
Card receivable		27,714,596		27,695,043

		487,523,988		501,633,507

Due from banks and loans at FVTPL (*3):
Banks		134,609		169,972
Corporations		1,780,787		1,286,144

		1,915,396		1,456,116

Securities at FVTPL		67,134,121		71,727,860
Securities at FVOCI		92,016,210		101,282,906
Securities at amortized cost (*1)		33,315,999		31,944,368
Derivative assets		10,279,257		7,153,950
Other financial assets (1), (2)		23,116,960		43,323,340
Guarantee contracts		22,509,195		26,221,968
Loan commitments and other credit liabilities		218,980,794		220,317,053

	W	956,791,920		1,005,061,068

(*1)

The maximum exposure amounts for due from banks, loans, securities at amortized cost and other financial assets at amortized cost are the net carrying amount after deducting the allowance for credit losses.

(*2)

Other financial assets mainly comprise of accounts receivable, accrued income, deposits, domestic exchange settlement debit and suspense payments.

(*3)

Classified as similar credit risk group based on calculation of the BIS ratio under new Basel Capital Accord (Basel III).

Maximum amount of exposure to credit risk by type of collateral

iii) The maximum exposure to credit risk of loans among financial instruments held as of December 31, 2024 and 2025, by type of collateral is as follows:


	2024
Classification	12-month expected credit losses		Lifetime expected credit losses				Total
Classification	12-month expected credit losses		Non-impaired		Impaired		Total
Guarantee	W	55,422,696		11,872,362		450,079		67,745,137
Deposits and Savings		2,508,238		401,970		4,971		2,915,179
Property and equipment		1,576,438		367,086		4,154		1,947,678
Real estate		170,210,822		26,682,978		528,200		197,422,000
Securities		1,846,531		155,761		—		2,002,292
Others		7,687		—		—		7,687

Total	W	231,572,412		39,480,157		987,404		272,039,973


	2025
Classification	12-month expected credit losses		Lifetime expected credit losses				Total
Classification	12-month expected credit losses		Non-impaired		Impaired		Total
Guarantee	W	60,850,725		9,781,605		411,985		71,044,315
Deposits and Savings		2,825,303		399,325		2,570		3,227,198
Property and equipment		1,603,758		518,626		4,068		2,126,452
Real estate		185,544,412		28,636,383		721,919		214,902,714
Securities		2,363,043		78,110		34,083		2,475,236
Others		12,414		2,000		—		14,414

Total	W	253,199,655		39,416,049		1,174,625		293,790,329

Impairment information by credit risk of financial assets

iv) Impairment information by credit risk of financial assets

Details of impaired financial assets due to credit risk as of December 31, 2024 and 2025 are as follows:


	2024
	12-month expected credit losses				Lifetime expected credit losses						Total		Allowances			Net		Mitigation of credit risk due to collateral
	Grade 1		Grade 2		Grade 1		Grade 2		Impaired		Total		Allowances			Net		Mitigation of credit risk due to collateral
Due from banks and loans at amortized cost:
Banks	W	11,740,875		2,027,427		254,625		60,114		—		14,083,041		(24,990	)		14,058,051		27,874
Retail		177,166,099		6,397,386		11,714,193		4,387,929		1,198,594		200,864,201		(1,054,625	)		199,809,576		151,610,129
Government/Public sector/ Central bank		25,118,226		2,030,126		83,783		49		—		27,232,184		(3,876	)		27,228,308		2,500
Corporations		117,893,181		55,345,067		20,324,015		25,633,821		1,880,868		221,076,952		(2,363,495	)		218,713,457		117,575,757
Card receivable		21,631,071		2,974,287		1,170,078		2,436,456		642,991		28,854,883		(1,140,287	)		27,714,596		18,881

		353,549,452		68,774,293		33,546,694		32,518,369		3,722,453		492,111,261		(4,587,273	)		487,523,988		269,235,141

Securities at FVOCI (*)		83,218,889		8,736,563		10,034		50,724		—		92,016,210		—			92,016,210		—
Securities at amortized cost		31,103,200		2,219,343		—		3,644		—		33,326,187		(10,188	)		33,315,999		—

	W	467,871,541		79,730,199		33,556,728		32,572,737		3,722,453		617,453,658		(4,597,461	)		612,856,197		269,235,141


	2025
	12-month expected credit losses				Lifetime expected credit losses						Total		Allowances			Net		Mitigation of credit risk due to collateral
	Grade 1		Grade 2		Grade 1		Grade 2		Impaired		Total		Allowances			Net		Mitigation of credit risk due to collateral
Due from banks and loans at amortized cost:
Banks	W	11,039,981		1,445,815		183,147		121		—		12,669,064		(10,355	)		12,658,709		171
Retail		188,215,501		6,674,522		9,227,654		3,991,054		1,252,699		209,361,430		(1,053,132	)		208,308,298		162,423,106
Government/Public sector/ Central bank		23,669,547		2,468,610		290,730		11		—		26,428,898		(11,566	)		26,417,332		2,597
Corporations		121,819,093		56,460,975		22,692,064		25,790,138		2,091,404		228,853,674		(2,299,549	)		226,554,125		126,763,442
Card receivable		20,649,246		4,449,746		1,060,430		1,976,109		481,682		28,617,213		(922,170	)		27,695,043		18,139

		365,393,368		71,499,668		33,454,025		31,757,433		3,825,785		505,930,279		(4,296,772	)		501,633,507		289,207,455

Securities at FVOCI (*)		90,408,440		10,847,635		—		26,831		—		101,282,906		—			101,282,906		—
Securities at amortized cost		30,031,575		1,921,484		—		—		—		31,953,059		(8,691	)		31,944,368		—

	W	485,833,383		84,268,787		33,454,025		31,784,264		3,825,785		639,166,244		(4,305,463	)		634,860,781		289,207,455

(*)

Credit loss allowance recognized as other comprehensive income of securities at fair value through other comprehensive income amounted to

38,346 million and

60,301 million as of December 31, 2024 and 2025.

Credit risk exposures per credit grade of off-balance items

v) Credit risk exposures per credit grade of

off-balance

sheet items

The credit risk exposure for

off-balance

sheet items such as guarantees, loan commitments, and other credit-related liabilities as of December 31, 2024 and 2025 are as follows:


	2024
	Grade 1		Grade 2		Impaired		Total
Guarantee contracts:
12-month expected credit losses	W	19,212,434		2,786,804		—		21,999,238
Lifetime expected credit losses		361,440		127,153		—		488,593
Impaired		—		—		21,364		21,364

		19,573,874		2,913,957		21,364		22,509,195

Loan commitment and other credit line:
12-month expected credit losses		183,928,715		21,687,932		—		205,616,647
Lifetime expected credit losses		10,370,570		2,988,286		—		13,358,856
Impaired		—		—		5,291		5,291

		194,299,285		24,676,218		5,291		218,980,794

	W	213,873,159		27,590,175		26,655		241,489,989


	2025
	Grade 1		Grade 2		Impaired		Total
Guarantee contracts:
12-month expected credit losses	W	20,555,651		4,535,466		—		25,091,117
Lifetime expected credit losses		964,695		154,378		—		1,119,073
Impaired		—		—		11,778		11,778

		21,520,346		4,689,844		11,778		26,221,968

Loan commitment and other credit line:
12-month expected credit losses		185,899,148		22,774,387		—		208,673,535
Lifetime expected credit losses		8,896,231		2,642,174		—		11,538,405
Impaired		—		—		105,113		105,113

		194,795,379		25,416,561		105,113		220,317,053

	W	216,315,725		30,106,405		116,891		246,539,021

Credit risk exposures per credit quality of derivative assets

vii) Credit risk exposures per credit quality of derivative assets

Credit risk exposures per credit quality of derivative assets as of December 31, 2024 and 2025 are as follows:


	2024		2025
Grade 1	W	9,578,458		6,797,321
Grade 2		700,799		356,629

	W	10,279,257		7,153,950

(*)	Credit quality of derivative assets is classified based on the internal credit ratings.

Concentration by geographic location

viii) Concentration by geographic location

An analysis of concentration by geographic location for financial instruments, net of allowance, as of December 31, 2024 and 2025 are as follows:


	2024
Classification (*)	Korea		USA		UK		Japan		Germany		Vietnam		China		Other		Total
Due from banks and loans at amortized cost
Banks	W	6,303,730		1,284,361		624,468		334,073		354,583		1,295,863		1,633,954		2,227,019		14,058,051
Retail		185,102,271		506,525		7,064		5,165,687		3,399		4,391,692		2,002,467		2,630,471		199,809,576
Government/Public sector/Central bank		21,716,534		1,018,284		—		1,914,100		197,042		334,366		360,451		1,687,531		27,228,308
Corporations		189,219,966		5,203,409		789,820		7,075,869		218,422		4,533,648		3,125,771		8,546,552		218,713,457
Card receivable		27,356,847		12,469		528		2,992		330		274,884		42,310		24,236		27,714,596

		429,699,348		8,025,048		1,421,880		14,492,721		773,776		10,830,453		7,164,953		15,115,809		487,523,988

Deposits and loans at FVTPL
Banks		99,159		35,450		—		—		—		—		—		—		134,609
Corporations		1,457,224		163,511		—		15,402		—		5,193		—		139,457		1,780,787

		1,556,383		198,961		—		15,402		—		5,193		—		139,457		1,915,396

Securities at FVTPL		61,955,771		3,321,700		377,462		135,194		2,564		—		7,144		1,334,286		67,134,121
Derivative assets		8,199,726		687,950		41,218		152,555		274,786		3,201		1,613		918,208		10,279,257
Securities at FVOCI		81,294,290		5,367,178		441,203		564,635		35,026		50,368		708,567		3,554,943		92,016,210
Securities at amortized cost		31,113,242		207,817		—		499,988		—		761,386		116,944		616,622		33,315,999

		613,818,760		17,808,654		2,281,763		15,860,495		1,086,152		11,650,601		7,999,221		21,679,325		692,184,971

Off-balance sheet items
Guarantees		20,517,889		579,426		250,938		44,186		9,663		199,535		511,891		395,667		22,509,195
Loan commitments and other liabilities related to credit		206,833,657		1,873,831		290,909		352,256		87,212		2,187,736		2,158,798		5,196,395		218,980,794

	W	227,351,546		2,453,257		541,847		396,442		96,875		2,387,271		2,670,689		5,592,062		241,489,989


	2025
Classification (*)	Korea		USA		UK		Japan		Germany		Vietnam		China		Other		Total
Due from banks and loans at amortized cost
Banks	W	4,934,110		1,409,928		479,051		278,851		363,081		933,820		1,078,467		3,181,401		12,658,709
Retail		192,492,848		595,218		8,021		5,464,414		3,807		5,054,569		1,817,292		2,872,129		208,308,298
Government/Public sector/Central bank		15,993,867		5,354,336		—		2,137,190		178,022		403,760		303,764		2,046,393		26,417,332
Corporations		193,530,841		5,498,636		1,300,654		8,202,921		206,108		4,729,918		3,476,094		9,608,953		226,554,125
Card receivable		27,359,956		13,936		477		3,273		339		237,884		50,429		28,749		27,695,043

		434,311,622		12,872,054		1,788,203		16,086,649		751,357		11,359,951		6,726,046		17,737,625		501,633,507

Deposits and loans at FVTPL
Banks		129,110		40,862		—		—		—		—		—		—		169,972
Corporations		1,135,383		83,254		—		14,424		—		4,133		—		48,950		1,286,144

		1,264,493		124,116		—		14,424		—		4,133		—		48,950		1,456,116

Securities at FVTPL		65,274,393		3,720,780		861,745		147,328		7,399		12,012		11,839		1,692,364		71,727,860
Derivative assets		5,776,528		480,953		17,518		153,496		112,892		6,618		7,791		598,154		7,153,950
Securities at FVOCI		87,212,394		7,104,105		788,292		771,151		116,116		42,978		779,447		4,468,423		101,282,906
Securities at amortized cost		30,100,982		206,599		—		432,067		—		465,350		96,367		643,003		31,944,368

		623,940,412		24,508,607		3,455,758		17,605,115		987,764		11,891,042		7,621,490		25,188,519		715,198,707

Off-balance sheet items
Guarantees		23,442,408		802,192		273,331		38,669		26,576		202,498		734,356		701,938		26,221,968
Loan commitments and other liabilities related to credit		210,218,685		1,546,770		270,460		572,774		126,187		2,387,567		1,064,500		4,130,110		220,317,053

	W	233,661,093		2,348,962		543,791		611,443		152,763		2,590,065		1,798,856		4,832,048		246,539,021

(*)	The amounts by geographic location are presented as the net carrying amount after deducting allowances for loan losses.

Concentration by industry sector

ix) Concentration by industry sector

An analysis of concentration by industry sector of financial instruments, net of allowance, as of December 31, 2024 and 2025 is as follows:


	2024
Classification (*)	Finance and insurance		Manufacturing		Retail and wholesale		Real estate and business		Construction service		Lodging and Restaurant		Other		Retail customers		Total
Due from banks and loans at amortized cost:
Banks	W	13,495,577		—		—		—		—		—		562,474		—		14,058,051
Retail		—		—		—		—		—		—		—		199,809,576		199,809,576
Government/Public sector/Central bank		27,042,097		—		—		—		—		—		186,211		—		27,228,308
Corporations		22,485,184		62,200,259		23,447,863		47,109,684		5,409,739		6,735,852		51,324,876		—		218,713,457
Card receivable		81,613		323,992		288,452		65,256		51,107		20,277		1,189,255		25,694,644		27,714,596

		63,104,471		62,524,251		23,736,315		47,174,940		5,460,846		6,756,129		53,262,816		225,504,220		487,523,988

Due from banks and loans at FVTPL
Banks		35,450		—		—		—		99,159		—		—		—		134,609
Corporations		859,295		391,667		301,658		149,652		10,000		—		68,515		—		1,780,787

		894,745		391,667		301,658		149,652		109,159		—		68,515		—		1,915,396

Securities at FVTPL		34,194,979		3,634,273		1,286,997		2,149,229		304,020		136,364		25,428,259		—		67,134,121
Derivative assets		8,305,868		1,263,951		26,101		39,698		6,003		1,616		634,051		1,969		10,279,257
Securities at FVOCI		35,854,914		2,636,678		712,936		1,790,042		1,056,603		12,160		49,952,877		—		92,016,210
Securities at amortized cost		9,761,249		19,984		—		539,416		260,379		—		22,734,971		—		33,315,999

		152,116,226		70,470,804		26,064,007		51,842,977		7,197,010		6,906,269		152,081,489		225,506,189		692,184,971

Off-balance sheet items
Guarantees		3,733,957		11,712,348		3,548,909		92,172		179,255		115,827		3,113,748		12,979		22,509,195
Loan commitments and other liabilities related to credit		18,218,204		34,199,306		10,324,128		4,325,044		2,408,759		531,832		20,644,317		128,329,204		218,980,794

	W	21,952,161		45,911,654		13,873,037		4,417,216		2,588,014		647,659		23,758,065		128,342,183		241,489,989


	2025
Classification (*)	Finance and insurance		Manufacturing		Retail and wholesale		Real estate and business		Construction service		Lodging and Restaurant		Other		Retail customers		Total
Due from banks and loans at amortized cost:
Banks	W	12,359,288		—		—		—		—		—		299,421		—		12,658,709
Retail		—		—		—		—		—		—		—		208,308,298		208,308,298
Government/Public sector/Central bank		26,140,603		—		—		—		—		—		276,729		—		26,417,332
Corporations		22,523,203		63,353,165		23,759,226		47,411,346		5,764,311		7,205,522		56,537,352		—		226,554,125
Card receivable		78,300		330,944		274,289		75,757		48,900		28,196		1,329,882		25,528,775		27,695,043

		61,101,394		63,684,109		24,033,515		47,487,103		5,813,211		7,233,718		58,443,384		233,837,073		501,633,507

Due from banks and loans at FVTPL
Banks		40,862		—		—		—		99,327		—		29,783		—		169,972
Corporations		575,478		399,668		3,004		156,286		—		—		151,708		—		1,286,144

		616,340		399,668		3,004		156,286		99,327		—		181,491		—		1,456,116

Securities at FVTPL		35,054,770		3,090,284		1,399,374		3,087,667		242,695		29,279		28,823,791		—		71,727,860
Derivative assets		6,068,491		829,304		13,573		19,948		2,272		329		219,516		517		7,153,950
Securities at FVOCI		45,699,181		2,242,382		465,133		1,733,913		749,831		22,340		50,370,126		—		101,282,906
Securities at amortized cost		7,108,253		9,985		—		843,938		280,851		—		23,701,341		—		31,944,368

		155,648,429		70,255,732		25,914,599		53,328,855		7,188,187		7,285,666		161,739,649		233,837,590		715,198,707

Off-balance sheet items
Guarantees		5,659,966		12,554,311		3,633,251		290,565		214,178		60,372		3,808,447		878		26,221,968
Loan commitments and other liabilities related to credit		18,227,705		31,211,151		10,863,979		6,914,971		2,269,120		444,003		20,103,475		130,282,649		220,317,053

	W	23,887,671		43,765,462		14,497,230		7,205,536		2,483,298		504,375		23,911,922		130,283,527		246,539,021

(*)	The amounts by industry sector are presented as the net carrying amount after deducting allowances for loan losses.

Market risk management from trading positions

The Group’s market risk regulatory capital for trading positions under the Basel III revised standardized approach as of December 31, 2024 and 2025 is as follows:


	2024		2025
Sensitivity risk
GIRR (*1)	W	257,705		219,512
CSR-Non-Securitized (*2)		565,017		465,046
CSR-Securitized (Non-CTP)		91,048		56,804
CSR-Non-Securitized (CTP)		508		141
Stock		210,850		92,207
Foreign (*3)		389,673		435,255
Commodity		2,829		4,293

		1,517,630		1,273,258

Default risk
Non-Securitized		—		186,037
Securitized (Excluding CTP)		121,146		103,363
Securitized (CTP)		596		251

		121,742		289,651

Residual risk		9,547		8,508

	W	1,648,919		1,571,417

(*1)

GIRR (General Interest Rate Risk): General interest rate risk, a concept that measures the risk of loss due to changes in the risk-free interest rate. In general, if the maturity is long and the value changes fluctuates a lot due to interest rate changes, the risk value is calculated to be large.

(*2)

CSR (Credit Spread Risk): Credit spread risk, a concept that measures the risk of value fluctuations as credit spreads fluctuate independently of the risk-free interest rate for products with inherent credit risk.

(*3)

Calculated by excluding structural foreign exchange positions approved by the Governor of the Financial Supervisory Service.

i-3)

Shinhan Bank

Shinhan Bank’s market risk regulatory capital for trading positions under the Basel III revised standardized approach as of December 31, 2024 and 2025 is as follows:


	2024		2025
Sensitivity risk
GIRR (*1)	W	116,501		126,382
CSR-Non-Securitized (*2)		129,603		148,185
CSR-Securitized (Non-CTP) (*3)		27,930		25,290
Stock		28,582		25,676
Foreign (*4)		368,999		454,808
Commodity		199		287

		671,814		780,628

Default risk
Non-Securitized		98,699		111,847
Securitized (Excluding CTP)		60,866		58,280

		159,565		170,127

Residual risk		2,984		4,576

	W	834,363		955,331

(*1)

GIRR: General Interest Rate Risk

(*2)

CSR: Credit Spread Risk

(*3)

CTP: Correlation Trading Portfolio

(*4)

Calculated by excluding structural foreign exchange positions approved by the Governor of the Financial Supervisory Service.

i-4)

Shinhan Card Co., Ltd.

Shinhan Card Co., Ltd.’s market risk regulatory capital for trading positions as of December 31, 2024 and 2025 under the standardized approach prescribed by the Financial Supervisory Service is as follows:


	2024		2025
Interest rate risk (*)	W	2,551		2,700

(*)

Foreign subsidiaries are excluded from the calculation.

i-5)

Shinhan Securities Co., Ltd.

The VaR of Shinhan Securities Co., Ltd.’s trading positions as of December 31, 2024 and 2025 is as follows:


	2024			2025
Interest rate risk	W	15,662			14,058
Stock price risk		14,321			33,180
Foreign exchange risk		30,310			23,847
Option volatility risk		42,703			9,381
Portfolio diversification effect		(41,549	)		(36,966	)

	W	61,447			43,500

i-6)

Shinhan Life Insurance Co., Ltd.

The VaR of Shinhan Life Insurance Co., Ltd.’s trading positions as of December 31, 2024 and 2025 is as follows:


	2024		2025
Interest rate risk	W	683		145
Stock price risk		11,523		17,365
Foreign exchange risk		55,467		69,913
Option volatility risk		559		128

	W	68,232		87,551

(*)

The market risk exposure for performance dividend-type assets held is

4,956,743 million and

5,687,547 million as of December 31, 2024 and 2025

respectively, and the minimum guaranteed risk amount that could result in an impact on the Group calculated using the internal shock scenario method as of the end of the reporting period is

280,577 million and

264,326 million as of December 31, 2024 and 2025

respectively.

Interest rate risk management from non-trading positions

ii-3)

The details of interest rate VaR and EaR for major subsidiaries as of December 31, 2024 and 2025 are as follows:

① Shinhan Bank


	2024		2025
ΔEVE (*1)	W	1,508,514		1,399,226
ΔNII (*2)		406,207		255,874

② Shinhan Card Co., Ltd.


	2024		2025
ΔEVE (*1)	W	990,898		824,951
ΔNII (*2)		600,681		587,147

③ Shinhan Securities Co., Ltd.


	2024		2025
ΔEVE (*1)	W	252,625		202,411
ΔNII (*2)		418,741		280,082

④ Shinhan Life Insurance Co., Ltd.


	2024		2025
ΔEVE (*1)	W	3,848,473		2,847,851
ΔNII (*2)		44,525		30,124

(*1)

ΔEVE is the change in economic value of equity capital that can arise from changes in interest rates that affect the present value of assets, liabilities and

off-balance

sheet items by using the Basel III standard based IRRBB method.

(*2)

ΔNII is the change in net interest income that can occur over the next year due to changes in interest rates by using the Basel III standard based IRRBB method.

Foreign currency denominated assets and liabilities

Foreign currency denominated assets and liabilities as of December 31, 2024 and 2025 are as follows:


	2024
	USD		JPY			EUR			CNY			Other			Total
Assets:
Cash and due from banks at amortized cost	W	12,337,661		2,952,548			263,878			731,304			5,387,372			21,672,763
Due from banks at FVTPL		35,450		—			—			—			—			35,450
Loans at FVTPL		275,434		—			28,229			—			19,899			323,562
Loan at amortized cost		25,948,190		13,073,162			1,832,150			4,873,899			15,186,486			60,913,887
Securities at FVTPL		6,687,351		133,864			852,382			4,124			726,565			8,404,286
Derivative assets		1,568,025		4,578			232,197			1,987			98,297			1,905,084
Securities at FVOCI		10,334,842		171,177			521,289			681,404			2,536,312			14,245,024
Securities at amortized cost		340,153		500,269			—			117,008			1,381,765			2,339,195
Other financial assets		5,471,934		1,264,209			197,766			355,004			830,886			8,119,799

	W	62,999,040		18,099,807			3,927,891			6,764,730			26,167,582			117,959,050

Liabilities:
Deposits	W	28,517,193		15,642,126			1,194,240			5,245,526			15,132,335			65,731,420
Financial liabilities at FVTPL		3,117		—			—			—			597,058			600,175
Derivative liabilities		1,513,732		5,297			50,101			1,964			55,052			1,626,146
Borrowings		9,498,518		1,446,603			280,140			544			1,485,415			12,711,220
Debt securities issued		15,926,430		168,566			764,365			—			1,865,788			18,725,149
Financial liabilities designated at FVTPL		804,324		313			—			—			—			804,637
Other financial liabilities		6,432,533		936,178			229,063			652,514			1,061,947			9,312,235

	W	62,695,847		18,199,083			2,517,909			5,900,548			20,197,595			109,510,982

Net domestic and foreign currency exposure	W	303,193		(99,276	)		1,409,982			864,182			5,969,987			8,448,068
Off-balance derivative exposure		2,433,296		1,085,962			(397,997	)		(379,652	)		(1,555,122	)		1,186,487

Net foreign currency exposure	W	2,736,489		986,686			1,011,985			484,530			4,414,865			9,634,555


	2025
	USD		JPY		EUR		CNY			Other			Total
Assets:
Cash and due from banks at amortized cost	W	14,268,193		3,024,755		193,635		615,220			5,969,361			24,071,164
Due from banks at FVTPL		40,862		—		—		—			—			40,862
Loans at FVTPL		108,450		—		9,635		—			4,133			122,218
Loan at amortized cost		25,860,570		14,457,433		2,117,346		4,891,534			16,981,548			64,308,431
Securities at FVTPL		8,324,763		137,035		1,012,815		2,750			1,251,785			10,729,148
Derivative assets		815,479		2,217		304,637		881			84,524			1,207,738
Securities at FVOCI		13,004,888		312,632		944,285		743,545			3,314,109			18,319,459
Securities at amortized cost		368,841		432,333		—		96,420			1,140,009			2,037,603
Other financial assets		9,806,303		2,707,262		1,785,518		201,174			1,736,885			16,237,142

	W	72,598,349		21,073,667		6,367,871		6,551,524			30,482,354			137,073,765

Liabilities:
Deposits	W	31,663,691		18,053,711		2,208,668		4,903,374			17,057,680			73,887,124
Financial liabilities at FVTPL		—		—		—		—			1,522,071			1,522,071
Derivative liabilities		641,622		5,000		145,204		1,077			74,334			867,237
Borrowings		11,990,792		1,253,386		459,326		6,388			2,240,724			15,950,616
Debt securities issued		13,715,798		426,698		1,985,414		—			1,983,450			18,111,360
Financial liabilities designated at FVTPL		790,960		—		—		—			—			790,960
Other financial liabilities		11,593,718		861,743		911,334		786,180			1,805,791			15,958,766

	W	70,396,581		20,600,538		5,709,946		5,697,019			24,684,050			127,088,134

Net domestic and foreign currency exposure	W	2,201,768		473,129		657,925		854,505			5,798,304			9,985,631
Off-balance derivative exposure		2,736,104		425,121		275,984		(1,783	)		(2,754,376	)		681,050

Net foreign currency exposure	W	4,937,872		898,250		933,909		852,722			3,043,928			10,666,681

Composition of non-derivative financial instruments and derivative financial instruments by remaining period

The details of the composition of

non-derivative

financial instruments and derivative financial instruments by remaining period as of December 31, 2024 and 2025 are as follows:


	2024 (*1)
	Less than 1 month		1~3 months			3~6 months			6 months ~ 1 year		1~5 years			More than 5 years			Total
Non-derivative financial instruments:
Assets:
Cash and due from banks at amortized cost	W	36,069,005		678,029			293,900			290,070		295,757			3,107,597			40,734,358
Due from banks at FVTPL		—		—			—			—		—			35,450			35,450
Loans at FVTPL		275,263		531,544			136,762			95		660,244			276,599			1,880,507
Loans at amortized cost		37,868,875		54,775,441			69,211,593			99,131,674		145,027,757			123,300,327			529,315,667
Securities at FVTPL		41,515,377		1,066,771			473,077			894,621		8,851,339			20,043,058			72,844,243
Securities at FVOCI		45,714,502		997,618			825,089			2,680,515		10,809,850			32,861,952			93,889,526
Securities at amortized cost		878,077		3,117,274			3,152,468			3,236,438		20,604,654			5,540,522			36,529,433
Other financial assets		18,550,324		58,298			59,159			631,667		599,959			1,975,249			21,874,656

	W	180,871,423		61,224,975			74,152,048			106,865,080		186,849,560			187,140,754			797,103,840

Liabilities:
Deposits (*2)	W	217,170,450		49,309,656			56,540,309			77,227,315		30,221,968			1,261,816			431,731,514
Financial liabilities at FVTPL		954,899		—			—			—		—			—			954,899
Borrowings		12,862,532		4,757,090			6,901,957			9,990,468		11,464,431			4,896,426			50,872,904
Debt securities issued		4,859,511		8,927,081			9,122,810			17,273,392		56,429,636			4,046,575			100,659,005
Financial liabilities designated at FVTPL		439,367		861,277			991,871			1,963,789		2,473,275			1,513,662			8,243,241
Investment contract liabilities		106,106		105,788			248,954			375,300		328,874			—			1,165,022
Other financial liabilities		32,314,670		174,388			257,115			587,834		1,351,145			140,254			34,825,406

	W	268,707,535		64,135,280			74,063,016			107,418,098		102,269,329			11,858,733			628,451,991

Off-balance sheet items (*3):
Guarantee contracts	W	22,509,195		—			—			—		—			—			22,509,195
Other liabilities related to loan commitments		218,980,794		—			—			—		—			—			218,980,794

	W	241,489,989		—			—			—		—			—			241,489,989

Derivatives	W	453,751		(12,670	)		(68,634	)		6,511		(1,847,862	)		(165,170	)		(1,634,074	)


	2025 (*1)
	Less than 1 month		1~3 months			3~6 months			6 months ~ 1 year			1~5 years			More than 5 years			Total
Non-derivative financial instruments:
Assets:
Cash and due from banks at amortized cost	W	37,051,022		746,364			68,711			19,990			264,095			1,842,716			39,992,898
Due from banks at FVTPL		—		—			—			—			—			40,862			40,862
Loans at FVTPL		84,231		419,312			83			81,094			708,906			126,359			1,419,985
Loans at amortized cost		37,915,506		55,304,875			66,984,277			103,607,758			149,981,848			135,798,359			549,592,623
Securities at FVTPL		51,192,910		1,363,382			748,568			1,297,385			8,919,975			13,075,043			76,597,263
Securities at FVOCI		54,888,016		1,564,045			551,147			1,592,027			13,096,314			31,737,573			103,429,122
Securities at amortized cost		660,221		3,086,876			1,288,192			2,902,604			21,330,649			5,785,213			35,053,755
Other financial assets		38,973,471		96,390			68,338			355,372			510,306			2,044,911			42,048,788

	W	220,765,377		62,581,244			69,709,316			109,856,230			194,812,093			190,451,036			848,175,296

Liabilities:
Deposits (*2)	W	231,520,722		54,103,105			54,526,232			84,041,299			30,677,571			2,274,736			457,143,665
Financial liabilities at FVTPL		2,212,215		—			—			—			—			100,272			2,312,487
Borrowings		16,797,623		6,963,957			6,221,726			8,478,193			11,924,157			6,074,035			56,459,691
Debt securities issued		6,230,564		8,486,174			9,202,855			15,052,890			56,411,740			3,889,537			99,273,760
Financial liabilities designated at FVTPL		399,298		977,019			854,498			1,180,049			1,423,212			1,586,327			6,420,403
Investment contract liabilities		189,704		10,554			91,041			159,182			1,085,912			—			1,536,393
Other financial liabilities		51,214,836		162,838			74,360			602,583			1,318,935			225,282			53,598,834

	W	308,564,962		70,703,647			70,970,712			109,514,196			102,841,527			14,150,189			676,745,233

Off-balance sheet items (*3):
Guarantee contracts	W	26,221,968		—			—			—			—			—			26,221,968
Other liabilities related to loan commitments		220,317,053		—			—			—			—			—			220,317,053

	W	246,539,021		—			—			—			—			—			246,539,021

Derivatives	W	771,588		(810,792	)		(29,804	)		(93,500	)		(2,117,259	)		(76,279	)		(2,356,046	)

(*1)	These amounts include cash flows of principal and interest on financial assets and financial liabilities.

(*2)	Demand deposits amounting to W 160,031,760 million and W 172,840,771 million as of December 31, 2024 and 2025 are included in the ‘Less than 1 month’ category, respectively.

(*3)	Although guarantees, loan agreements, and other credit commitments provided by the Group have contractual maturities, they are classified into the earliest time bucket, as the Group is required to make payments immediately upon request by the counterparty.

The fair value hierarchy of financial instruments presented at their fair values in the statements of financial position

i) Financial instruments measured at fair value

i-1)

The fair value hierarchy of financial instruments presented at their fair values in the statements of financial position as of December 31, 2024 and 2025 are as follows:


	2024
	Level 1		Level 2		Level 3 (*3)		Total
Financial assets:
Due from banks at FVTPL	W	—		35,450		—		35,450
Loans at FVTPL (*1)		—		745,412		1,134,534		1,879,946
Securities at FVTPL:
Debt securities and other securities (*2)		11,870,768		39,052,189		16,082,867		67,005,824
Equity securities		1,618,125		64,277		1,414,926		3,097,328
Gold/silver deposits		128,297		—		—		128,297

		13,617,190		39,116,466		17,497,793		70,231,449

Derivative assets:
Trading		85,439		8,772,280		719,177		9,576,896
Hedging		—		702,361		—		702,361

		85,439		9,474,641		719,177		10,279,257

Securities at FVOCI:
Debt securities		35,984,894		56,031,316		—		92,016,210
Equity securities		866,968		—		922,191		1,789,159

		36,851,862		56,031,316		922,191		93,805,369

	W	50,554,491		105,403,285		20,273,695		176,231,471

Financial liabilities:
Financial liabilities at FVTPL:
Securities sold (*2)	W	357,841		—		—		357,841
Gold/silver deposits		597,058		—		—		597,058

		954,899		—		—		954,899

Financial liabilities designated at FVTPL:
Derivatives-combined securities (*2)		—		819,919		7,139,257		7,959,176
Debt securities issued		—		261,299		—		261,299

		—		1,081,218		7,139,257		8,220,475

Derivative liabilities:
Trading		22,721		8,476,885		536,855		9,036,461
Hedging		—		814,374		207,697		1,022,071

		22,721		9,291,259		744,552		10,058,532

	W	977,620		10,372,477		7,883,809		19,233,906

(*1)	Of the Financial assets at FVTPL invested by the Group, P-note’s valuation of amount related to Lime Asset Management is W 40.8 billion. As of December 31, 2024, in this regard, international disputes are under

way, the Group has estimated its fair value based on financial information within the recent audit report of underlying assets since it doesn’t have fair market value observable through active trading markets. Accounting estimates and assumptions used in preparing consolidated financial statements may lead to adjustment in response to changes in uncertainty, such as information and market conditions available in the future. In addition, the ultimate impact on the business, financial condition, performance, and liquidity of the Group is unpredictable.

(*2)

Financial instruments (Beneficiary certificates:

175 billion and derivatives-combined securities:

175 billion) related to GEN2 Partners asset management were delayed in repurchase for the year ended December 31, 2020. The

Group

estimated fair value using the net asset value based on the most recent data available for the repurchase suspension fund. Since then, it has an uncertainty in measuring fair value due to market conditions.

(*3)

Shinhan Securities Co.,

Ltd.’s

level 3

over-the-counter

derivatives

are

recognized

86,279 million in financial assets measured at fair value through profit or loss,

7,146,909 million in financial liabilities designated at fair value through profit or loss,

718,788 million in derivative assets, and

535,162 million in derivative liabilities. The fair value of

over-the-counter

derivatives classified as level 3 above is measured using Shinhan Securities Co., Ltd.’s internal valuation model


	2025
	Level 1		Level 2		Level 3 (*3)		Total
Financial assets:
Due from banks at FVTPL	W	—		40,862		—		40,862
Loans at FVTPL (*1)		—		506,781		908,473		1,415,254
Securities at FVTPL:
Debt securities and other securities (*2)		12,198,754		41,464,110		17,441,328		71,104,192
Equity securities		2,900,162		461,978		1,507,261		4,869,401
Gold/silver deposits		623,668		—		—		623,668

		15,722,584		41,926,088		18,948,589		76,597,261

Derivative assets:
Trading		63,896		5,876,734		596,229		6,536,859
Hedging		—		617,091		—		617,091

		63,896		6,493,825		596,229		7,153,950

Securities at FVOCI:
Debt securities		37,077,188		64,196,579		9,139		101,282,906
Equity securities		998,372		—		935,672		1,934,044

		38,075,560		64,196,579		944,811		103,216,950

	W	53,862,040		113,164,135		21,398,102		188,424,277

Financial liabilities:
Financial liabilities at FVTPL:
Securities sold (*2)	W	790,416		—		—		790,416
Gold/silver deposits		1,522,071		—		—		1,522,071

		2,312,487		—		—		2,312,487

Financial liabilities designated at FVTPL:
Derivatives-combined securities (*2)		—		255,532		5,834,683		6,090,215
Debt securities issued		—		287,849		—		287,849

		—		543,381		5,834,683		6,378,064

Derivative liabilities:
Trading		38,222		5,540,526		293,655		5,872,403
Hedging		—		994,626		153,817		1,148,443

		38,222		6,535,152		447,472		7,020,846

	W	2,350,709		7,078,533		6,282,155		15,711,397

(*1)

Of the Financial assets at FVTPL invested by the Group,

P-note’s

valuation of amount related to Lime Asset Management is

27.0 billion. As of December 31, 2025, in this regard, international disputes are under way, the Group has estimated its fair value based on financial information within the recent audit report of underlying assets since it doesn’t have fair market value observable through active trading markets.

(*2)	Financial instruments (Beneficiary certificates: W 181.8 billion and derivatives-combined securities: W 181.8 billion) related to GEN2 Partners asset management were delayed in repurchase for the year ended

December 31, 2020. The Group estimated fair value using the net asset value based on the most recent data available for the repurchase suspension fund. Since then, it has an uncertainty in measuring fair value due to market conditions.

(*3)

Using its internal valuation model, Shinhan Securities Co., Ltd.’s level 3

over-the-counter

derivatives

are

recognized

47,665 million in financial assets measured at fair value through profit or loss,

5,834,683 million in financial liabilities designated at fair value through profit or loss,

146,924 million in derivative assets, and

284,145 million in derivative liabilities.

Changes in carrying values of financial instruments classified as Level 3

Changes in carrying amounts of financial instruments classified as Level 3 for the years ended December 31, 2024 and 2025 are as follows:


	2024
	Financial asset at FVTPL			Securities at FVOCI			Financial liabilities designated at FVTPL			Held for trading						Held for hedging
	Financial asset at FVTPL			Securities at FVOCI			Financial liabilities designated at FVTPL			Derivative assets			Derivative liabilities			Derivative assets		Derivative liabilities
Beginning balance	W	17,327,888			949,183			(6,725,252	)		632,213			(783,587	)		—		(224,195	)
Recognized in total comprehensive income for the year:
Recognized in profit or loss for the period (*1)		355,895			—			(74,680	)		64,091			(307,946	)		—		16,498
Recognized in other comprehensive income (loss) for the year		3,287			(77,241	)		(8,614	)		—			—			—		—

		359,182			(77,241	)		(83,294	)		64,091			(307,946	)		—		16,498

Purchase		7,120,860			55,431			—			1,318,715			(11,529	)		—		—
Issue		—			—			(7,993,276	)		—			—			—		—
Settlement		(5,798,938	)		(5,153	)		7,662,565			(1,299,773	)		566,207			—		—
Transfer to level 3 (*2)		17,407			—			—			3,931			—			—		—
Transfer out of level 3 (*2)		(394,072	)		(29	)		—			—			—			—		—

Ending balance	W	18,632,327			922,191			(7,139,257	)		719,177			(536,855	)		—		(207,697	)


	2025
	Financial asset at FVTPL			Securities at FVOCI			Financial liabilities designated at FVTPL			Held for trading						Held for hedging
	Financial asset at FVTPL			Securities at FVOCI			Financial liabilities designated at FVTPL			Derivative assets			Derivative liabilities			Derivative assets		Derivative liabilities
Beginning balance	W	18,632,327			922,191			(7,139,257	)		719,177			(536,855	)		—		(207,697	)
Recognized in total comprehensive income for the year:
Recognized in profit or loss for the period (*1)		8,721			—			(225,030	)		95,523			155,722			—		36,007
Recognized in other comprehensive income (loss) for the year		(531	)		69,448			(4,165	)		—			—			—		—

		8,190			69,448			(229,195	)		95,523			155,722			—		36,007

Purchase		5,875,977			6,324			—			87,869			(30,005	)		—		(13,580	)
Issue		—			—			(6,407,756	)		—			—			—		—
Settlement		(4,667,721	)		(62,292	)		7,941,525			(306,359	)		117,483			—		31,453
Transfer to level 3 (*2)		65,173			9,140			—			23			—			—		—
Transfer out of level 3 (*2)		(56,884	)		—			—			(4	)		—			—		—

Ending balance	W	19,857,062			944,811			(5,834,683	)		596,229			(293,655	)		—		(153,817	)

(*1)

Recognized profit or loss of the changes in carrying amount of financial instruments classified as Level 3 for the years ended December 31, 2024 and 2025 are included in the accounts of the consolidated statements of comprehensive income, of which the amounts and the related accounts are as follows:


	2024
	Amounts recognized in profit or loss			Recognized profit or loss from the financial instruments held as of December 31
Net gain on financial assets at FVTPL	W	112,040			443,935
Net gain (loss) on financial liabilities designated at FVTPL		(74,680	)		102,961
Net other operating income		16,498			16,497

	W	53,858			563,393


	2025
	Amounts recognized in profit or loss			Recognized profit or loss from the financial instruments held as of December 31
Net gain on financial assets at FVTPL	W	259,966			250,113
Net gain (loss) on financial liabilities designated at FVTPL		(225,030	)		2,884
Net other operating income		36,007			36,007

	W	70,943			289,004

(*2)	Transfers between levels result from changes in the availability of observable market data for the financial instruments. The Group recognizes such transfers at the end of the reporting period in which the change occurs.

Valuation techniques and inputs used in measuring the fair value of financial instruments

i-3)

Valuation techniques and significant inputs not observable in markets

①

Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of December 31, 2024 and 2025 are as follows:


	2024
Type of financial instrument	Valuation technique		Carrying value		Significant inputs
Assets
Financial assets at FVTPL
Debt securities		DCF, NAV, Option model (*)	W	39,833,051	Discount rate, interest rate, stock price, etc.
Equity securities		NAV		64,277	Price of underlying assets such as stocks, bonds, etc.

				39,897,328

Derivative assets
Trading		Option model (*), Implied forward interest rate, DCF		8,772,280	Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc.
Hedging				702,361

				9,474,641

Securities at FVOCI
Debt securities		DCF, Option model (*)		56,031,316	Interest rate, discount rate, etc.

			W	105,403,285

Liabilities
Financial liabilities designated at FVTPL
Derivative-linked securities sold		Option model (*), NAV	W	819,919	Underlying asset price
Debt securities issued				261,299	Discount rate, volatility

				1,081,218

Derivative liabilities
Trading		Option model (*), Forward interest rate, DCF		8,476,885	Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc.
Hedging				814,374

				9,291,259

			W	10,372,477


	2025
Type of financial instrument	Valuation technique	Carrying value		Significant inputs
Assets
Financial assets at FVTPL
Debt securities	DCF, NAV, Option model (*)	W	42,011,753	Discount rate, interest rate, stock price, etc.
Equity securities	NAV, Option model (*)		461,978	Price of underlying assets such as stocks, bonds, etc., dividend yield

			42,473,731

Derivative assets
Trading	Option model (*), Implied forward interest rate, DCF		5,876,734	Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc.
Hedging			617,091

			6,493,825

Securities at FVOCI
Debt securities	DCF, Option model (*)		64,196,579	Interest rate, discount rate, etc.

		W	113,164,135

Liabilities
Financial liabilities designated at FVTPL
Derivative-linked securities sold	Option model (*), NAV	W	255,532	Underlying asset price
Debt securities issued	Option model (*), NAV		287,849	Discount rate, volatility

			543,381

Derivative liabilities
Trading	Option model (*), Forward interest rate, DCF		5,540,526	Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc.
Hedging			994,626

			6,535,152

		W	7,078,533

(*)	Option models applied to measure fair value include the Black-Scholes model, Hull-White model and methods such as Monte Carlo simulation are applied to some products depending on the product type.

②

Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of December 31, 2024 and 2025 are as follows:

2024

Type of financial instrument

Valuation
technique

Carrying
Value (*2)

Significant unobservable inputs

Range

Financial assets

Financial assets at FVTPL

Debt securities, loans

DCF, NAV, Option model (*1), Income approach

17,217,401

The volatility of the underlying
asset, Discount rate, Correlations,

Growth rate, Liquidation Value

0.56~81.72%

2.74~11.07%

4.74~82.57%

0.00%

Equity securities

DCF, NAV, Option model (*1),

Comparable company analysis, Transaction case price, Dividend discount model (DDM), Cost method

1,414,926

The volatility of the underlying

asset, Discount rate, Growth rate,

Interest rate volatility

25.58~53.67%

3.60~15.44%

0.00%

0.46~0.73%

18,632,327

Derivative assets

Equity and foreign exchange related

Option model (*1)

125,445

The volatility of the underlying asset,

Correlations

10.35~41.28%

41.60~73.24%

Interest rates related

85,141

The volatility of the underlying asset,

Correlations

0.46~0.66%

-38.28~69.59%

Credit and commodity related

508,591

The volatility of the underlying asset,
Correlations, Hazard Rate

30.92~31.36%

99.88~99.96%

0.16~8.90%

719,177

Securities at FVOCI

Equity securities

DCF, NAV, Option model (*1),

Comparable company analysis

922,191

The volatility of the underlying

asset, Discount rate, Growth rate,

Interest rate volatility

22.95%

4.75~14.03%

-1.00~1.00%

0.41~67.91%

20,273,695

2024

Type of financial instrument

Valuation
technique

Carrying
Value (*2)

Significant unobservable inputs

Range

Financial liabilities

Financial liabilities designated at fair value through profit or loss

Equity related

Option model (*1)

7,139,257

The volatility of the underlying asset, Correlations

0.46~57.68%

-46.56~83.10%

Derivative liabilities

Equity and foreign exchange related

Option model (*1)

181,858

The volatility of the underlying asset, Correlations

7.86~57.68%

-46.56~83.10%

Interest rates related

428,049

The volatility of the underlying asset, Regression coefficient,

Correlations

0.46~1.09%

0.00~2.32%

-38.28~90.34%

Credit and commodity related

134,645

The volatility of the underlying asset, Correlations, Hazard Rate

6.98%

0.00%

0.29~6.05%

744,552

7,883,809

2025

Type of financial instrument

Valuation
technique

Carrying
Value (*2)

Significant unobservable inputs

Range

Financial assets

Financial assets at FVTPL

Debt securities

DCF, NAV,
Option model (*1),
Income approach

18,349,801

The volatility of the underlying asset, Discount rate, Correlations, Growth rate, Interest rate volatility, Liquidation Value

0.50~67.94%

4.04~17.95%

31.11~69.16%

0.00%

0.46~0.70%

0.00%

Equity securities

DCF, NAV,
Option model (*1),

Comparable
company analysis,
Transaction case
price, Dividend
discount model
(DDM),

Cost method

1,507,261

The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value

0.00~68.67%

3.14~45.20%

0.00%

0.46~0.70%

0.00%

19,857,062

Derivative assets

Equity and foreign exchange related

Option model (*1)

25,130

The volatility of the underlying asset, Correlations

10.63~61.54%

30.33~82.07%

Interest rates related

71,254

The volatility of the underlying asset, Correlations

0.48~1.51%

-70.00~61.85%

Credit and commodity related

499,845

The volatility of the underlying asset, Correlations, Hazard Rate

30.76~31.08%

99.63%

0.08~9.29%

596,229

2025

Type of financial instrument

Valuation
technique

Carrying
Value (*2)

Significant unobservable inputs

Range

Financial assets

Securities at FVOCI

Debt securities

Option
model (*1)

9,139

Discount rate,

Interest rate volatility

6.23%

7.92%

Equity securities

DCF, NAV,
Option model
(*1), Comparable
company analysis,
Cost method

935,672

The volatility of the underlying asset, Discount rate, Growth rate, Interest rate volatility, Liquidation Value

23.87%

4.23~16.33%

0.00%

0.46~0.70%

0.00%

944,811

21,398,102

Financial liabilities

Financial liabilities designated at fair value through profit or loss

Equity related

Option model (*1)

5,834,683

The volatility of the underlying asset, Correlations

0.48~61.54%

-70.00~82.07%

Derivative liabilities

Equity and foreign exchange related

Option model (*1)

21,150

The volatility of the underlying asset, Correlations

8.20~61.54%

0.23~82.07%

Interest rates related

335,811

The volatility of the underlying asset, Regression coefficient, Correlations

0.48~1.51%

0.01~0.98%

-70.00~90.34%

Credit and commodity related

90,511

The volatility of the underlying asset, Correlations, Hazard Rate

0.65~1.51%

-70.00~61.85%

0.21~9.22%

447,472

6,282,155

(*1)	The option models used by the Group for valuation purposes include the Black-Scholes model, the Hull-White model, and Monte Carlo simulation, among others.

(*2)	Valuation techniques and input variables are not disclosed for items whose carrying amounts are considered to approximate fair value.

Sensitivity for changing in unobservable inputs

i-4)

Sensitivity for changing in unobservable inputs

For level 3 fair value measurement, the effects of changes in one or more of the unobservable inputs on profit or loss, or other comprehensive income as of December 31, 2024 and 2025 are as follows:


	2024
	Favorable changes		Unfavorable changes
Financial assets:
Effects on profit or loss for the period (1), (2):
Financial assets at FVTPL	W	38,489		(33,351	)
Derivative assets		14,813		(14,777	)
Securities at FVOCI (*2)		74,482		(49,291	)

	W	127,784		(97,419	)

Financial liabilities:
Effects on profit or loss for the period (*1):
Financial liabilities designated at FVTPL	W	19,782		(20,339	)
Derivative liabilities		25,420		(21,955	)

	W	45,202		(42,294	)


	2025
	Favorable changes		Unfavorable changes
Financial assets:
Effects on profit or loss for the period (1), (2):
Financial assets at FVTPL	W	35,062		(34,827	)
Derivative assets		15,446		(14,723	)
Securities at FVOCI (*2)		60,531		(42,863	)

	W	111,039		(92,413	)

Financial liabilities:
Effects on profit or loss for the period (*1):
Financial liabilities designated at FVTPL	W	14,685		(14,764	)
Derivative liabilities		6,889		(7,538	)

	W	21,574		(22,302	)

(*1)	Fair value changes are calculated by increasing or decreasing the volatility of the underlying asset (-10~10%p) or correlations (-10~10%p), a significant unobservable input.

(*2)	Fair value changes are calculated by increasing or decreasing the growth rate and discount rate, which are a significant unobservable input, from -1% p to 1%p.

The method of measuring the fair value of financial instruments measured at amortized cost

ii-1)

The method of calculating the fair value of financial instruments measured at amortized cost is as follows:


Type		Measurement methods of fair value

Cash and due from banks		The carrying amount and the fair value for cash are identical and most of deposits are floating interest rate deposits or overnight deposits of a short-term instrument. For this reason, the book value is used as a proxy for fair value.

Loans		The fair value of the loans is measured by discounting the expected cash flow using a discount rate that reflects the market interest rate and the credit risk of the borrower.

Securities		An external professional evaluation agency is used to calculate the valuation amount using the market information. The agency calculates the fair value based on active market prices, and DCF model is used to calculate the fair value if there is no quoted price.

Deposits and borrowings		The carrying amount and the fair value for demand deposits, cash management account deposits, call money as short-term instrument are identical. The remaining liabilities and borrowings were calculated as fair value by discounting contractual cash flows at the market interest rate that reflects the residual risk.

Debt securities issued		Where available, the fair value of deposits and borrowings is based on the published price quotations in an active market. In case there is no data for an active market price, it is measured by discounting the contractual cash flow at the market interest rate that reflects the residual risk.

Investment contract liabilities		The carrying amount of accumulated pension benefits of retirement pension contract holders, as defined under the Insurance Business Act and the Regulations on Supervision of Insurance Business, is used as a proxy for fair value as reliable estimates of expected future cash flows are not available.

Other financial assets and other financial liabilities		The carrying amount is measured at fair value for short-term and suspense accounts, such as spot exchange, inter-bank fund transfer, and domestic exchange of payments, and for the remaining financial instruments, the present value is calculated by discounting the contractual cash flows at the market interest rate that reflects the residual risk.

The carrying value and the fair value of financial instruments measured at amortized cost

ii-2)

The carrying amount and the fair value of financial instruments measured at amortized cost as of December 31, 2024 and 2025 are as follows:


	2024				2025
	Carrying amount		Fair value		Carrying amount		Fair value
Assets:
Deposits at amortized cost (*)	W	38,228,750		38,159,135		36,859,627		36,793,298
Loans at amortized cost		449,295,238		452,724,752		464,773,880		466,291,620
Securities at amortized cost:
Government bonds		21,808,057		21,625,666		22,779,176		22,300,505
Financial institution bonds		3,787,661		3,828,599		1,837,790		1,851,292
Corporation bonds		7,720,281		7,694,086		7,327,402		7,239,123

		33,315,999		33,148,351		31,944,368		31,390,920

Other financial assets		23,116,960		23,469,322		43,323,340		43,674,984

	W	543,956,947		547,501,560		576,901,215		578,150,822

Liabilities:
Deposit liabilities:
Demand deposits	W	160,031,759		160,031,759		172,840,773		172,840,773
Time deposits		236,527,490		236,878,216		238,328,250		238,238,605
Certificate of deposit		10,409,701		10,481,318		17,001,339		16,970,158
Issued bill deposit		7,624,787		7,624,245		8,921,064		8,920,096
CMA deposits		4,451,561		4,451,561		4,889,093		4,889,093
Others		3,735,747		3,735,726		5,668,452		5,668,466

		422,781,045		423,202,825		447,648,971		447,527,191

Borrowing debts:
Call-money		1,197,823		1,197,823		1,437,100		1,437,100
Bills sold		8,872		8,831		11,887		11,846
Bonds sold under repurchase agreements		11,542,956		11,542,956		14,988,698		14,988,698
Borrowings		37,170,722		37,236,104		38,957,149		38,924,550

		49,920,373		49,985,714		55,394,834		55,362,194

Debt securities issued:
Borrowings in Korean won		75,106,885		75,610,971		74,937,216		74,697,509
Borrowings in foreign currency		18,658,969		18,759,433		18,054,206		18,273,309

		93,765,854		94,370,404		92,991,422		92,970,818

Investment contract liabilities		1,165,022		1,165,022		1,536,393		1,536,393
Other financial liabilities		39,472,400		39,429,575		57,890,911		57,832,606

	W	607,104,694		608,153,540		655,462,531		655,229,202

(*)	Cash is not included.

The fair value hierarchy of financial instruments which are not measured at their fair values in the statements of financial position

ii-3)

The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the statements of financial position but disclosed with their fair value as of December 31, 2024 and 2025 are as follows:


	2024
	Level 1		Level 2		Level 3		Total
Deposits at amortized cost (*)	W	537,760		37,621,375		—		38,159,135
Loans at amortized cost		—		965,455		451,759,297		452,724,752
Securities at amortized cost:
Government bonds		11,292,066		10,333,600		—		21,625,666
Financial institution bonds		331,421		3,497,178		—		3,828,599
Corporation bonds		—		7,694,086		—		7,694,086

		11,623,487		21,524,864		—		33,148,351

Other financial assets		—		13,474,763		9,994,559		23,469,322

	W	12,161,247		73,586,457		461,753,856		547,501,560

Liabilities:
Deposit liabilities:
Demand deposits	W	—		160,031,759		—		160,031,759
Time deposits		—		—		236,878,216		236,878,216
Certificate of deposit		—		—		10,481,318		10,481,318
Issued bill deposit		—		—		7,624,245		7,624,245
CMA deposits		—		4,451,561		—		4,451,561
Other		—		3,694,921		40,805		3,735,726

		—		168,178,241		255,024,584		423,202,825

Borrowing debts:
Call-money		—		1,197,823		—		1,197,823
Bills sold		—		—		8,831		8,831
Bonds sold under repurchase agreements		—		—		11,542,956		11,542,956
Borrowings		—		19,922		37,216,182		37,236,104

		—		1,217,745		48,767,969		49,985,714

Debt securities issued:
Borrowings in won		—		43,460,315		32,150,656		75,610,971
Borrowings in foreign currency		—		12,899,498		5,859,935		18,759,433

		—		56,359,813		38,010,591		94,370,404

Investment contract liabilities		—		—		1,165,022		1,165,022
Other financial liabilities		—		10,428,026		29,001,549		39,429,575

	W	—		236,183,825		371,969,715		608,153,540


	2025
	Level 1		Level 2		Level 3		Total
Deposits at amortized cost (*)	W	269,329		36,523,969		—		36,793,298
Loans at amortized cost		—		700,039		465,591,581		466,291,620
Securities at amortized cost:
Government bonds		10,815,330		11,485,175		—		22,300,505
Financial institution bonds		80,367		1,770,925		—		1,851,292
Corporation bonds		—		7,239,123		—		7,239,123

		10,895,697		20,495,223		—		31,390,920

Other financial assets		—		29,465,771		14,209,213		43,674,984

	W	11,165,026		87,185,002		479,800,794		578,150,822

Liabilities:
Deposit liabilities:
Demand deposits	W	—		172,840,773		—		172,840,773
Time deposits		—		—		238,238,605		238,238,605
Certificate of deposit		—		—		16,970,158		16,970,158
Issued bill deposit		—		—		8,920,096		8,920,096
CMA deposits		—		4,889,093		—		4,889,093
Other		—		5,625,593		42,873		5,668,466

		—		183,355,459		264,171,732		447,527,191

Borrowing debts:
Call-money		—		1,437,100		—		1,437,100
Bills sold		—		—		11,846		11,846
Bonds sold under repurchase agreements		—		—		14,988,698		14,988,698
Borrowings		—		108,795		38,815,755		38,924,550

		—		1,545,895		53,816,299		55,362,194

Debt securities issued:
Borrowings in won		—		40,127,224		34,570,285		74,697,509
Borrowings in foreign currency		—		12,618,554		5,654,755		18,273,309

		—		52,745,778		40,225,040		92,970,818

Investment contract liabilities		—		—		1,536,393		1,536,393
Other financial liabilities		—		22,535,595		35,297,011		57,832,606

	W	—		260,182,727		395,046,475		655,229,202

(*)	Cash is not included.

Valuation techniques and inputs used in the fair value measurements categorized within Level 2 and Level 3 for fair value disclosures, which are not recognized at fair value

ii-4)

Valuation techniques and inputs used in the fair value measurements categorized within Level 2 and Level 3 for fair value disclosures, which are not recognized at fair value, as of December 31, 2024 and 2025, are as follows:


	2024
	Fair value (*)		Valuation technique		Inputs
Financial instruments classified as level 2:
Assets
Due from banks at amortized cost	W	37,621,375		DCF	Discount rate
Loans at amortized cost		965,455		DCF	Discount rate, Credit spread, Prepayment rate
Securities at amortized cost		21,524,864		DCF	Discount rate
Other financial assets		13,474,763		DCF	Discount rate
Financial instruments classified as level 3:
Assets
Loans at amortized cost		451,759,297		DCF	Discount rate, Credit spread, Prepayment rate
Other financial assets		9,994,559		DCF	Discount rate

	W	535,340,313

Financial instruments classified as level 2:
Liabilities
Deposits	W	168,178,241		DCF	Discount rate
Borrowings		1,217,745		DCF	Discount rate
Debt securities issued		56,359,813		DCF	Discount rate
Other financial liabilities		10,428,026		DCF	Discount rate
Financial instruments classified as level 3:
Liabilities
Deposits		255,024,584		DCF	Discount rate
Borrowings		48,767,969		DCF	Discount rate
Debt securities issued		38,010,591		DCF	Discount rate, Regression coefficient, Correlations
Investment contract liabilities		1,165,022		—	—
Other financial liabilities		29,001,549		DCF	Discount rate

	W	608,153,540


	2025
	Fair value (*)		Valuation technique		Inputs
Financial instruments classified as level 2:
Assets
Due from banks at amortized cost	W	36,523,969		DCF	Discount rate
Loans at amortized cost		700,039		DCF	Discount rate, Credit spread, Prepayment rate
Securities at amortized cost		20,495,223		DCF	Discount rate
Other financial assets		29,465,771		DCF	Discount rate
Financial instruments classified as level 3:
Assets
Loans at amortized cost		465,591,581		DCF	Discount rate, Credit spread, Prepayment rate
Other financial assets		14,209,213		DCF	Discount rate

	W	566,985,796

Financial instruments classified as level 2:
Liabilities
Deposits	W	183,355,459		DCF	Discount rate
Borrowings		1,545,895		DCF	Discount rate
Debt securities issued		52,745,778		DCF	Discount rate
Other financial liabilities		22,535,595		DCF	Discount rate
Financial instruments classified as level 3:
Liabilities
Deposits		264,171,732		DCF	Discount rate
Borrowings		53,816,299		DCF	Discount rate
Debt securities issued		40,225,040		DCF	Discount rate, Regression coefficient, Correlations
Investment contract liabilities		1,536,393		—	—
Other financial liabilities		35,297,011		DCF	Discount rate

	W	655,229,202

(*)	Valuation techniques and inputs are not disclosed when the carrying amount is a reasonable approximation of fair value.

Changes in gains or losses on valuation at the transaction

iii) Changes in gains or losses on valuation at the transaction date for the years ended December 31, 2024 and 2025, are as follows:


	2024			2025
Beginning balance	W	(81,747	)		(89,230)
New transactions		(33,712	)		(40,646	)
Recognized in profit for the year		26,229			40,199

Ending balance	W	(89,230	)		(89,677	)

Classification by categories of financial instruments

The carrying amounts of each category of financial assets and financial liabilities as of December 31, 2024 and 2025 are as follows:


	2024
	Financial assets at FVTPL		Financial assets at FVOCI		Financial assets at amortized cost		Derivatives held for hedging		Total
Assets:
Cash and due from banks at amortized cost	W	—		—		40,525,712		—		40,525,712
Due from banks at FVTPL		35,450		—		—		—		35,450
Securities at FVTPL		70,231,449		—		—		—		70,231,449
Derivatives assets		9,576,896		—		—		702,361		10,279,257
Loans at FVTPL		1,879,946		—		—		—		1,879,946
Loans at amortized cost		—		—		449,295,238		—		449,295,238
Securities at FVOCI		—		93,805,369		—		—		93,805,369
Securities at amortized cost		—		—		33,315,999		—		33,315,999
Others		—		—		23,116,960		—		23,116,960

	W	81,723,741		93,805,369		546,253,909		702,361		722,485,380


	2024
	Financial liabilities at FVTPL		Financial liabilities designated at FVTPL		Financial liabilities at amortized cost		Derivatives held for hedging		Total
Liabilities:
Deposits	W	—		—		422,781,045		—		422,781,045
Financial liabilities at FVTPL		954,899		—		—		—		954,899
Financial liabilities designated at FVTPL		—		8,220,475		—		—		8,220,475
Derivatives liabilities		9,036,461		—		—		1,022,071		10,058,532
Borrowings		—		—		49,920,373		—		49,920,373
Debt securities issued		—		—		93,765,854		—		93,765,854
Investment contract liabilities		—		—		1,165,022		—		1,165,022
Others		—		—		39,472,400		—		39,472,400

	W	9,991,360		8,220,475		607,104,694		1,022,071		626,338,600


	2025
	Financial assets at FVTPL		Financial assets at FVOCI		Financial assets at amortized cost		Derivatives held for hedging		Total
Assets:
Cash and due from banks at amortized cost	W	—		—		39,742,605		—		39,742,605
Due from banks at FVTPL		40,862		—		—		—		40,862
Securities at FVTPL		76,597,261		—		—		—		76,597,261
Derivatives assets		6,536,859		—		—		617,091		7,153,950
Loans at FVTPL		1,415,254		—		—		—		1,415,254
Loans at amortized cost		—		—		464,773,880		—		464,773,880
Securities at FVOCI		—		103,216,950		—		—		103,216,950
Securities at amortized cost		—		—		31,944,368		—		31,944,368
Others		—		—		43,323,340		—		43,323,340

	W	84,590,236		103,216,950		579,784,193		617,091		768,208,470


	2025
	Financial liabilities at FVTPL		Financial liabilities designated at FVTPL		Financial liabilities at amortized cost		Derivatives held for hedging		Total
Liabilities:
Deposits	W	—		—		447,648,971		—		447,648,971
Financial liabilities at FVTPL		2,312,487		—		—		—		2,312,487
Financial liabilities designated at FVTPL		—		6,378,064		—		—		6,378,064
Derivatives liabilities		5,872,403		—		—		1,148,443		7,020,846
Borrowings		—		—		55,394,834		—		55,394,834
Debt securities issued		—		—		92,991,422		—		92,991,422
Investment contract liabilities		—		—		1,536,393		—		1,536,393
Others		—		—		57,890,911		—		57,890,911

	W	8,184,890		6,378,064		655,462,531		1,148,443		671,173,928

Transfers that do not qualify for derecognition

i) Transfers that do not qualify for derecognition

i-1)

Repurchase agreements (Repo)

As of December 31, 2024 and 2025, the details of financial instruments that do not qualify for derecognition, as the Group sold securities with an obligation to repurchase them at a fixed price under repurchase agreements, are as follows:


	2024		2025
Transferred asset:
Securities at FVTPL	W	10,141,306		7,687,437
Securities at FVOCI		645,888		4,615,372
Securities at amortized cost		199,261		87,569
Loans at amortized cost		20,600		10,700

	W	11,007,055		12,401,078

Related liabilities:
Bonds sold under repurchase agreements (*)	W	11,542,956		14,988,698

(*)

As of December 31, 2024 and 2025, borrowed securities pledged as collateral in connection with repurchase agreements amounted to

1,502,252 million and

3,643,514 million, respectively.

i-2)

Securities loaned

If the securities owned by the Group are loaned, the ownership of the securities is transferred, but is required to be returned at the end of the loan period. Therefore, the Group continues to recognize the entire securities loaned as it holds most of the risks and compensation of the securities.

Securities loaned as of December 31, 2024 and 2025 are as follows:


	2024		2025		Borrowers
Government bonds	W	13,611,571		14,992,877	Korea Securities Finance Corp., Korea Securities Depository, etc.
Financial institutions bonds		607,175		408,766	Korea Securities Finance Corp., Korea Securities Depository, etc.
Corporation bonds		465,211		519,713	BNP Paribas Securities Corp.
Equity securities		15,826		40,277	Korea Securities Depository, etc.

	W 14,699,783		15,961,633

Offsetting financial assets and financial liabilities

Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2024 and 2025 are as follows:


	2024
	Gross amounts of recognized financial assets/ liabilities		Gross amounts of recognized financial assets/ liabilities set off in the statement of financial position		Net amounts of financial assets/ liabilities presented in the statement of financial position		Related amounts not set off in the statement of financial position				Net amount
	Gross amounts of recognized financial assets/ liabilities						Financial instruments		Cash collateral received		Net amount
Assets:
Derivatives (*1)	W	10,560,214		—		10,560,214		13,744,859		522,860		5,592,302
Other financial instruments (*1)		9,299,807		—		9,299,807		13,744,859		522,860		5,592,302
Securities repurchased under repurchase agreements and bonds purchased under repurchase agreements (*2)		17,514,396		—		17,514,396		15,238,643		—		2,275,753
Securities loaned (*2)		6,456,316		—		6,456,316		6,393,972		—		62,344
Domestic exchange settlement debit (*3)		39,697,639		34,787,860		4,909,779		—		—		4,909,779
Receivables from disposal of securities (*4)		4,879,073		2,199,610		2,679,463		1,925,615		—		753,848

	W	88,407,445		36,987,470		51,419,975		37,303,089		522,860		13,594,026

Liabilities:
Derivatives (1), (5)	W	18,245,590		—		18,245,590		14,692,837		1,000		11,767,096
Other financial instruments (*1)		8,215,343		—		8,215,343		14,692,837		1,000		11,767,096
Bonds sold under repurchase agreements (*2)		11,542,956		—		11,542,956		10,667,259		—		875,697
Securities borrowed (*2)		357,842		—		357,842		357,842		—		—
Domestic exchange settlement pending (*3)		36,593,966		34,787,860		1,806,106		1,735,983		—		70,123
Payable from purchase of securities (*4)		4,868,572		2,199,610		2,668,962		1,926,038		—		742,924

	W	79,824,269		36,987,470		42,836,799		29,379,959		1,000		13,455,840

(*1)

The Group has certain derivative transactions subject to the ISDA (International Swaps and Derivatives Association) agreement. According to the ISDA agreement, when credit events (e.g. default) of counterparties occur, all derivative agreements are terminated and set off. At the time of termination, the parties to the transaction will offset the amount of payment or payment to each other, and one party will pay the other party a single amount will be paid to the other party.

(*2)	Resale and repurchase agreements and securities borrowing and lending agreements are also similar to ISDA agreements with respect to legally enforceable netting arrangements.

For securities lending transactions executed through intermediaries, such as the Korea Securities Depository and the Korea Securities Finance Corporation (i.e., competitive transactions), collateral is pledged in the name of the intermediary. Accordingly, direct netting agreements and the enforceability of collateral between the transaction counterparties do not apply.

In this regard, the amount of securities lent for which a pledge has been established in the name of the intermediary amounted to

5,186,364 million as of December 31, 2024.

(*3)	The Group has legally enforceable right to set off and settles financial assets and liabilities on a net basis under normal business terms. Therefore, domestic exchanges settlement receivables (payables) are recorded on a net basis in the consolidated statements of financial position.

(*4)

It is an account that deals with bonds and liabilities based on the settlement of listed stocks traded in the market. The Group currently has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis. Therefore, the net amount is presented in the consolidated statement of financial position. The offset amount of related bonds and liabilities based on the settlement of

over-the-counter

derivatives

in-house

payment by Central Clearing System is included.

(*5)

As of December 31, 2024, the total amount of financial liabilities includes

7,966,828 million of ELS (equity-linked securities) products and of DLS (derivative linked securities) products. In the course of this transaction, the Group has provided collateral for some transactions. The financial instruments provided as collateral of

586,768 million are included in the related instruments not offset in the statement of financial position.


	2025
	Gross amounts of recognized financial assets/ liabilities		Gross amounts of recognized financial assets/ liabilities set off in the statement of financial position		Net amounts of financial assets/ liabilities presented in the statement of financial position		Related amounts not set off in the statement of financial position				Net amount
	Gross amounts of recognized financial assets/ liabilities						Financial instruments		Cash collateral received		Net amount
Assets:
Derivatives (*1)	W	7,215,469		—		7,215,469		22,362,966		425,193		2,546,676
Other financial instruments (*1)		18,119,366		—		18,119,366		22,362,966		425,193		2,546,676
Securities repurchased under repurchase agreements and bonds purchased under repurchase agreements (*2)		14,417,309		—		14,417,309		14,220,871		—		196,438
Securities loaned (*2)		1,274,760		—		1,274,760		1,101,854		—		172,906
Domestic exchange settlement debit (*3)		49,477,452		38,218,494		11,258,958		—		—		11,258,958
Receivables from disposal of securities (*4)		14,771,529		7,247,688		7,523,841		6,110,092		—		1,413,749

	W	105,275,885		45,466,182		59,809,703		43,795,783		425,193		15,588,727

Liabilities:
Derivatives (1), (5)	W	13,236,855		—		13,236,855		22,987,953		1,000		8,021,031
Other financial instruments (*1)		17,773,129		—		17,773,129		22,987,953		1,000		8,021,031
Bonds sold under repurchase agreements (*2)		14,988,698		—		14,988,698		11,768,314		—		3,220,384
Securities borrowed (*2)		790,416		—		790,416		790,416		—		—
Domestic exchange settlement pending (*3)		42,413,447		38,218,494		4,194,953		4,097,860		—		97,093
Payable from purchase of securities (*4)		14,808,991		7,247,688		7,561,303		6,110,113		—		1,451,190

	W	104,011,536		45,466,182		58,545,354		45,754,656		1,000		12,789,698

(*1)

(*2)	Resale and repurchase agreements and securities borrowing and lending agreements are also similar to ISDA agreements with respect to legally enforceable netting arrangements.

(*3)	The Group has legally enforceable right to set off and settles financial assets and liabilities on a net basis under normal business terms. Therefore, domestic exchanges settlement receivables (payables) are recorded on a net basis in the consolidated statements of financial position.

(*4)

over-the-counter

derivatives

in-house

payment by Central Clearing System is included.

(*5)

As of December 31, 2025, the total amount of financial liabilities includes

6,090,215 million of ELS (equity-linked securities) products and of DLS (derivative linked securities) products. In the course of this transaction, the Group has provided collateral for some transactions. The financial instruments provided as collateral of

156,351 million are included in the related instruments not offset in the statement of financial position.

The capital ratio of the Group based on Basel III

The Basel III capital ratios of the Group as of December 31, 2024 and 2025 are as follows:


	2024			2025
Capital:
Common Equity Tier 1 capital	W	44,562,500			47,115,338
Additional tier 1 capital		5,824,082			5,890,967

Total Tier I capital		50,386,582			53,006,305
Tier II capital		3,516,787			3,254,292

Total capital (A)	W	53,903,369			56,260,597

Total risk-weighted assets (B)	W	342,375,264			352,907,638
Total capital ratio (A/B)		15.74	%		15.94	%
Tier 1 capital ratio		14.72	%		15.02	%
Common Equity Tier 1 capital ratio		13.02	%		13.35	%

(*)	As of December 31, 2025, the Group maintains an appropriate capital adequacy ratio in accordance with the BIS capital regulation system and the capital ratios as of that date are provisional.