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Derivatives (Tables)

12 Months Ended

Dec. 31, 2025

Disclosure of detailed information about hedges [abstract]

(a)

The notional amounts of derivatives outstanding as of December 31, 2024 and 2025 are as follows:


	2024		2025
Foreign currency related:
Over the counter:
Currency forwards	W	167,805,176		186,552,883
Currency swaps		59,641,567		68,522,136
Currency options		2,182,530		3,410,253

		229,629,273		258,485,272
Exchange traded:
Currency futures		1,534,764		1,982,556

		231,164,037		260,467,828

Interest rates related:
Over the counter:
Interest rate forwards and swaps		57,169,341		65,847,009
Interest rate options		825,057		926,000

		57,994,398		66,773,009
Exchange traded:
Interest rate futures		4,875,687		3,962,031
Interest rate swaps (*)		142,194,805		175,593,544

		147,070,492		179,555,575

		205,064,890		246,328,584

Credit related:
Over the counter:
Credit swaps		4,231,106		5,079,897
Total return swaps		809,987		841,964

		5,041,093		5,921,861

Equity related:
Over the counter:
Equity swaps and forwards		5,975,657		2,811,480
Equity options		2,923,962		2,283,749

		8,899,619		5,095,229
Exchange traded:
Equity futures		1,600,342		1,357,692
Equity options		452,322		492,549

		2,052,664		1,850,241

		10,952,283		6,945,470


	2024		2025
Commodity related:
Over the counter:
Commodity swaps and forwards		2,121,686		1,698,190
Exchange traded:
Commodity futures		172,899		249,235

		2,294,585		1,947,425

Hedge:
Currency forwards		4,345,149		3,713,759
Currency swaps		7,993,851		9,059,479
Interest rate forwards and swaps		13,219,417		13,612,757
Equity options		18,750		—

		25,577,167		26,385,995

	W	480,094,055		547,997,163

(*)	The notional amounts of derivatives outstanding that are to be settled in the ‘Central Counter Party (CCP)’system.

Fair value of derivative instruments

(b)

Fair values of derivatives as of December 31, 2024 and 2025 are as follows:


	2024				2025
	Assets		Liabilities		Assets		Liabilities
Foreign currency related:
Over the counter:
Currency forwards	W	5,731,971		3,887,398		3,384,263		2,215,089
Currency swaps		2,299,084		3,823,249		1,703,067		2,625,865
Currency options		24,230		25,700		9,043		18,497

		8,055,285		7,736,347		5,096,373		4,859,451
Exchange traded:
Currency futures		1,527		828		107		3,365

		8,056,812		7,737,175		5,096,480		4,862,816

Interest rates related:
Over the counter:
Interest rate forwards and swaps		734,284		859,402		817,433		754,732
Interest rate options		1,157		28,907		—		29,468

		735,441		888,309		817,433		784,200
Exchange traded:
Interest rate futures		2,929		675		1,605		808

		738,370		888,984		819,038		785,008


	2024				2025
	Assets		Liabilities		Assets		Liabilities
Credit related:
Over the counter:
Credit swaps		40,325		5,208		40,643		7,187
Total return swaps		467,352		4,556		458,469		6,510

		507,677		9,764		499,112		13,697

Equity related:
Over the counter:
Equity swap and forwards		96,841		137,399		43,121		48,500
Equity options		95,173		112,088		5,880		17,480

		192,014		249,487		49,001		65,980
Exchange traded:
Equity futures		1,228		13,302		10,401		663
Equity options		66,177		4,274		43,595		24,835

		67,405		17,576		53,996		25,498

		259,419		267,063		102,997		91,478

Commodity related:
Over the counter:
Commodity swaps and forwards		914		129,833		11,044		110,854
Exchange traded:
Commodity futures		13,704		3,642		8,188		8,550

		14,618		133,475		19,232		119,404

Hedge:
Currency forwards		12,100		213,015		18,997		176,304
Currency swaps		539,015		181,413		521,120		344,888
Interest rate forwards and swaps		151,246		623,702		76,974		627,251
Equity options		—		3,941		—		—

		702,361		1,022,071		617,091		1,148,443

	W	10,279,257		10,058,532		7,153,950		7,020,846

Gain or loss on valuation of derivatives

(c)

Gains or losses on valuation of derivatives for the years ended December 31, 2023, 2024 and 2025 are as follows:


	2023			2024			2025
Foreign currency related:
Over the counter:
Currency forwards	W	36,890			1,734,704			273,413
Currency swaps		135,712			(1,739,525	)		(28,745	)
Currency options		1,355			4,392			7,388

		173,957			(429	)		252,056
Exchange traded:
Currency futures		(955	)		804			(3,258	)

		173,002			375			248,798

Interest rates related:
Over the counter:
Interest rate forwards and swaps		181,987			115,234			187,839
Interest rate options		(2,886	)		(2,413	)		1,476

		179,101			112,821			189,315
Exchange traded:
Interest rate futures and others		(9,511	)		2,253			152

		169,590			115,074			189,467

Credit related:
Over the counter:
Credit swaps		53,042			44,223			(5,507	)
Total return swaps		—			—			9,912

		53,042			44,223			4,405


Equity related:
Over the counter:
Equity swap and forwards		(19,934	)		(61,607	)		30,008
Equity options		(159,324	)		28,708			6,807

		(179,258	)		(32,899	)		36,815
Exchange traded:
Equity futures		50,009			(12,093	)		9,935
Equity options		(13,929	)		1,085			(5,036	)

		36,080			(11,008	)		4,899

		(143,178	)		(43,907	)		41,714


	2023		2024			2025
Commodity related:
Over the counter:
Commodity swaps and forwards		37,027		(43,643	)		26,502
Commodity options		1,516		—			—

		38,543		(43,643	)		26,502
Exchange traded:
Commodity futures		1,484		10,062			(362	)

		40,027		(33,581	)		26,140

Hedge		327,016		242,379			(264,572	)

	W	619,499		324,563			245,952

Gain or loss on fair value hedges

The amounts recognized in profit or loss and the related account categories arising from hedging ineffectiveness of fair value hedges for the years ended December 31, 2023, 2024 and 2025 are as follows:


	2023
	Gains and losses on hedged items designated in fair value hedges			Gains and losses on hedging instruments designated as fair value hedges			Hedging ineffectiveness recognized in profit or loss (*2)
Fair value hedges:
Interest rate risk (*1)	W	(271,425	)		282,835			11,410
Foreign exchange risk (*1)		4,102			(5,264	)		(1,162	)

	W	(267,323	)		277,571			10,248


	2024
	Gains and losses on hedged items designated in fair value hedges			Gains and losses on hedging instruments designated as fair value hedges			Hedging ineffectiveness recognized in profit or loss (*2)
Fair value hedges:
Interest rate risk (*1)	W	(45,264	)		42,787			(2,477	)
Foreign exchange risk (*1)		44,094			(46,382	)		(2,288	)
Other price risk (*1)		(1,548	)		1,109			(439	)

	W	(2,718	)		(2,486	)		(5,204	)


	2025
	Gains and losses on hedged items designated in fair value hedges			Gains and losses on hedging instruments designated as fair value hedges		Hedging ineffectiveness recognized in profit or loss (*2)
Fair value hedges:
Interest rate risk (*1)	W	(120,061	)		138,277		18,216
Foreign exchange risk (*1)		278			14,686		14,964
Other price risk (*1)		(4,357	)		3,941		(416	)

	W	(124,140	)		156,904		32,764

(*1)	The related account categories are presented in the amounts of interest rate swap assets and liabilities, currency forward assets and liabilities, and equity option liabilities.

(*2)	Hedging ineffectiveness represents the difference between the changes in fair value of the hedging instruments and the hedged items.

Due to the ineffectiveness of hedge of cash flow risk and hedge of net investment in foreign operations during the year

ii)

Due to the hedging ineffectiveness of cash flow risk and net investment in foreign operations for the years ended December 31, 2023, 2024 and 2025, the amounts recognized in the profit or loss and other comprehensive income are as follows:


	2023
	Gains (losses) on hedges recognized in other comprehensive income			Hedging ineffectiveness recognized in profit or loss (*2)			Amounts reclassified from cash flow hedge reserve to profit or loss
Cash flow hedges:
Interest rate risk (*1)	W	99,268			(512	)		(1,760	)
Foreign exchange risk (*1)		(10,294	)		(7,069	)		(25,698	)
Discontinuation of cash flow hedges		(5,531	)		—			14,659
Hedge of net investments:
Foreign exchange risk (*1)		(3,903	)		3,673			—

	W	79,540			(3,908	)		(12,799	)


	2024
	Gains (losses) on hedges recognized in other comprehensive income			Hedging ineffectiveness recognized in profit or loss (*2)			Amounts reclassified from cash flow hedge reserve to profit or loss
Cash flow hedges:
Interest rate risk (*1)	W	89,293			(5,034	)		(151	)
Foreign exchange risk (*1)		2,548			(6,184	)		210,424
Discontinuation of cash flow hedges		(39,621	)		—			47,957
Hedge of net investments:
Foreign exchange risk (*1)		(221,221	)		(1,191	)		—

	W	(169,001	)		(12,409	)		258,230


	2025
	Gains (losses) on hedges recognized in other comprehensive income			Hedging ineffectiveness recognized in profit or loss (*2)			Amounts reclassified from cash flow hedge reserve to profit or loss
Cash flow hedges:
Interest rate risk (*1)	W	(209,145	)		(8,743	)		1,567
Foreign exchange risk (*1)		(35,688	)		2,776			(160,443	)
Discontinuation of cash flow hedges		1,532			—			(28	)
Hedge of net investments:
Foreign exchange risk (*1)		59,096			21,422			—

	W	(184,205	)		15,455			(158,904	)

(*1)	The related account categories are presented in the amounts of interest rate swap assets and liabilities, currency forward assets and liabilities and borrowings.

(*2)	Hedging ineffectiveness represents the difference between the changes in fair value of the hedging instruments and the hedged items.

Nominal amounts and average hedge ratios for hedging instruments

(e)

Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity

Hedging purpose and strategy

The Group transacts with derivative financial instruments to hedge its interest rate risk, currency risk and stock price fluctuation risk arising from the assets and liabilities of the Group. The Group applies the fair value hedge accounting for the changes in the market interest rates, foreign exchange rates and stock price of the Korean won structured notes, foreign currency financial debentures, Korean won structured deposits, foreign currency investment receivables and beneficiary securities in foreign currency; and cash flow hedge accounting for forward interest rate, interest rate swaps, forward currency and currency swaps to hedge cash flow risk due to interest rates and foreign exchange rates of the Korean won debt, foreign currency debt, foreign currency structured deposits, the Korean won bonds and foreign currency bonds, etc. In addition, in order to hedge the exchange rate risk of the net investment in overseas business, the Group applies the net investment hedge accounting for foreign operations using currency forward and

non-derivative

financial instruments.

ii)

The notional amounts and the average hedge ratios for hedging instruments as of December 31, 2024 and 2025 are as follows:


	2024
	1 year or less			1~2 years			2~3 years			3~4 years			4~5 years			More than 5 years			Total
Interest rate risk:
Notional values:	W	910,440			2,621,365			1,943,818			2,350,027			1,161,927			4,231,840			13,219,417
Average price condition (*1)		3.43	%		3.07	%		4.08	%		4.82	%		4.17	%		3.60	%		3.82	%
Average hedge ratio:		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Exchange risk: (*2)
Notional values:	W	4,319,632			2,421,806			3,072,483			2,870,442			1,059,147			447,703			14,191,213
Average hedge ratio:		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Other price risk: (*3)
Notional values:	W	—			—			18,750			—			—			—			18,750
Average hedge ratio:		—			—			100	%		—			—			—			100	%

(*1)

Interest rate swaps consist of 3M CD, USD SOFR, 3M Euribor, and 3M AUD Bond.

(*2)

The average exchange rates of net investment hedge instruments are USD/KRW 1,280.52, JPY/KRW 9.25, EUR/KRW 1,402.37, GBP/KRW 1,561.57, AUD/KRW 892.94, CAD/KRW 991.06, CNY/KRW 189.50, SEK/KRW 127.54.

(*3)

The equity option, which has an exercise price of

324,027.


	2025
	1 year or less			1~2 years			2~3 years			3~4 years			4~5 years			More than 5 years			Total
Interest rate risk:
Notional values:	W	2,485,060			2,219,475			2,553,701			2,008,399			450,481			3,895,641			13,612,757
Average price condition (*1)		1.86	%		1.60	%		1.75	%		1.73	%		1.14	%		0.42	%		1.34	%
Average hedge ratio:		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Exchange risk: (*2)
Notional values:	W	4,344,598			3,288,511			3,353,841			1,941,689			992,587			747,109			14,668,335
Average hedge ratio:		100	%		100	%		100	%		100	%		100	%		100	%		100	%

(*1)

Interest rate swaps consist of 3M CD, USD SOFR, 3M USD Libor, 3M Euribor, 3M AUD Bond and 3M JPY TONAR.

(*2)

The average exchange rates of net investment hedge instruments are USD/KRW

1,307.41

, JPY/KRW

9.43

, EUR/KRW

1,487.33

, GBP/KRW

1,568.02

, AUD/KRW

896.37

, CAD/KRW

999.37

and SEK/KRW

131.64

Effect of derivatives on statement financial position, statement of comprehensive income, statement of changes in equity

iii)

The effect of hedging derivatives on the consolidated statements of financial position, comprehensive income, and changes in equity as of December 31, 2023, 2024 and 2025 is as follows:


	2023
	Notional amount		Carrying amount of assets (*)		Carrying amount of liabilities (*)		Changes in fair value in the period
Fair value hedges
Interest rate forward and swap	W	10,112,789		65,787		614,219		246,594
Currency forward		308,117		2,949		791		(327	)
Cash flow hedges
Interest rate swap		2,356,791		53,830		90,676		99,442
Currency swap		4,448,030		111,024		99,093		(21,649	)
Currency forward		1,150,734		12,593		30,925		2,170
Hedge of net investments in foreign operations
Currency forward		683,382		6,038		2,776		4,537
Borrowings		1,466,795		—		1,462,329		(4,767	)


	2024
	Notional amount		Carrying amount of assets (*)		Carrying amount of liabilities (*)		Changes in fair value in the period
Fair value hedges
Interest rate forward and swap	W	10,347,033		57,685		579,563		42,787
Currency forward		429,939		—		39,395		(46,382	)
Equity options		18,750		—		3,941		1,109
Cash flow hedges
Interest rate swap		2,872,383		93,562		44,139		60,694
Currency swap		7,993,851		539,015		181,413		314,114
Currency forward		1,723,440		2,087		138,694		(104,727	)
Hedge of net investments in foreign operations
Currency forward		2,191,770		10,013		34,926		(41,071	)
Borrowings		1,852,212		—		1,848,316		(181,341	)


	2025
	Notional amount		Carrying amount of assets (*)		Carrying amount of liabilities (*)		Changes in fair value in the period
Fair value hedges
Interest rate forward and swap	W	10,339,461		45,898		431,007		138,277
Currency forward		434,282		1,079		14,708		14,686
Equity options		—		—		—		3,941
Cash flow hedges
Interest rate swap		3,273,296		31,076		196,244		(214,598	)
Currency swap		9,059,478		521,120		344,888		(218,169	)
Currency forward		1,898,541		1,104		161,596		34,038
Hedge of net investments in foreign operations
Currency forward		1,380,935		16,814		—		51,154
Borrowings		1,895,100		—		1,891,783		29,364

(*)

The related account categories are presented as interest rate swap assets / liabilities and currency forward assets / liabilities etc.

Effect of hedging items on statement financial position, statement of comprehensive income, statement of changes in equity

iv)

The effect of hedged items on the consolidated statements of financial position, comprehensive income, and changes in equity as of December 31, 2023, 2024 and 2025 is as follows:


	2023
	Carrying amount of assets (*)		Carrying amount of liabilities (*)		Assets of Cumulative fair value hedge adjustment			Liabilities of Cumulative fair value hedge adjustment			Changes of fair value in the year			Cash flow hedge reserve			Foreign currency translation reserves
Fair value hedges
Interest rate risk Borrowings and others	W	685,340		9,224,390		41,643			(579,315	)		(240,965	)		—			—
Foreign exchange risk Securities in foreign currency		544,706		—		—			—			1,313			—			—
Other price risk Loans		5,809		—		(1,548	)		—			(1,548	)		—			—
Cash flow hedges
Interest rate risk Debentures in won and debentures in foreign currency		641,750		1,029,542		—			—			(11,068	)		26,648			—
Foreign exchange risk Debentures in foreign currency and loans in foreign currency		2,490,098		2,342,230		—			—			69,784			(17,812	)		—
Hedge of net investments in foreign operations
Foreign exchange risk Net assets in foreign operation		—		—		—			—			3,903			—			(36,931	)


	2024
	Carrying amount of assets (*)		Carrying amount of liabilities (*)		Assets of Cumulative fair value hedge adjustment			Liabilities of Cumulative fair value hedge adjustment			Changes of fair value in the year			Cash flow hedge reserve			Foreign currency translation reserves
Fair value hedges
Interest rate risk Borrowings and others	W	996,275		9,167,678		11,271			(540,967	)		(45,264	)		—			—
Foreign exchange risk Securities in foreign currency		480,273		—		—			—			44,094			—			—
Other price risk Loans		5,809		—		(1,548	)		—			(1,548	)		—			—
Cash flow hedges
Interest rate risk Debentures in won and debentures in foreign currency		357,441		749,708		—			—			(3,449	)		25,943			—
Foreign exchange risk Debentures in foreign currency and loans in foreign currency		2,971,800		5,045,127		—			—			773,828			(8,638	)		—
Hedge of net investments in foreign operations
Foreign exchange risk Net assets in foreign operation		—		—		—			—			221,221			—			184,291


	2025
	Carrying amount of assets (*)		Carrying amount of liabilities (*)		Assets of Cumulative fair value hedge adjustment			Liabilities of Cumulative fair value hedge adjustment			Changes of fair value in the year			Cash flow hedge reserve			Foreign currency translation reserves
Fair value hedges
Interest rate risk Borrowings and others	W	1,217,304		8,984,247		(7,991	)		(373,328	)		(120,061	)		—			—
Foreign exchange risk Securities in foreign currency		380,113		—		—			—			278			—			—
Other price risk Loans		—		—		(5,905	)		—			(4,357	)		—			—
Cash flow hedges
Interest rate risk Debentures in won and debentures in foreign currency		438,011		349,941		—			—			2,303			(187,801	)		—
Foreign exchange risk Debentures in foreign currency and loans in foreign currency		3,629,809		6,030,836		—			—			234,512			(57,429	)		—
Hedge of net investments in foreign operations
Foreign exchange risk Net assets in foreign operation		—		—		—			—			(59,096	)		—			125,194

(*)

The related account categories are presented in the amounts of borrowings, bonds, and others.