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6-K 1 d830917d6k.htm FORM 6-K Form 6-K Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024

Commission File Number: 000-53445

KB Financial Group Inc.

(Translation of registrant’s name into English)

26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

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Index

1. Summary of the 2024 First Quarter Business Report

2. Exhibit 99.1 KB Financial Group Review Report for the First Quarter of 2024 (Consolidated)

3. Exhibit 99.2 KB Financial Group Review Report for the First Quarter of 2024 (Separate)

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TABLE OF CONTENTS



1.		Introduction to the Company

1.1.		Business Purpose

1.2.		History

1.3.		Overview of the Business Group

1.4.		Capital Structure

1.5.		Dividends

1.6.		Amendments to the Articles of Incorporation

2.		Business

2.1.		Results of Operations

2.2.		Sources and Uses of Funds

2.3.		Other Information to Consider in Making an Investment Decision

3.		Financial Information

3.1.		Consolidated Financial Information

3.2.		Separate Financial Information

3.3.		Other Selected Financial Data

3.4.		Other Financial Information

4.		Independent Public Accountants

4.1.		Audit/ Review Services

4.2.		Public Company Accounting Oversight Board (“PCAOB”) Audit Services

4.3.		Change in Auditor

5.		Corporate Governance and Affiliated Companies

5.1.		Board of Directors & Committees under the Board

5.2.		Audit Committee

5.3.		Compensation to Directors

5.4.		Top 5 Highest-Paid Individuals

5.5.		Affiliated Companies

6.		Directors, Senior Management and Employees

6.1.		Executive Directors

6.2.		Non-standing Directors

6.3.		Non-executive Directors

6.4.		Senior Management

6.5.		Employees

7.		Major Shareholders and Related Party Transactions

7.1.		Major Shareholders

7.2.		Changes in the Largest Shareholder

7.3.		Employee Stock Ownership Association

7.4.		Investments in Affiliated Companies

7.5.		Related Party Transactions

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Summary of 2024 First Quarter Business Report

On May 16, 2024, KB Financial Group Inc. (“KB Financial Group,” the “Company” or the “Group”) filed its business report for the first quarter of 2024 (the “Business Report”) with the Financial Services Commission of Korea and the Korea Exchange. This is a summary of the Business Report translated into English.

Except where indicated otherwise, financial information contained in this summary have been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“K-IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “KB Financial Group,” “we,” “us,” the “Company” or the “Group” are to KB Financial Group and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

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1.	Introduction to the Company

1.1.	Business Purpose

KB Financial Group is a financial holding company that was established in September 2008. Its main business purpose is to hold shares in companies that are engaged in financial or related services, as well as govern and manage such companies. Its consolidated subsidiaries are primarily engaged in the banking business, as well as the credit card business, the financial investment business, the insurance business and other related businesses.

1.2.

History

[Not required to be disclosed in quarterly reports]

1.3. Overview of the Business Group

[Not required to be disclosed in quarterly reports]

1.4.	Capital Structure

1.4.1.

Common Shares

Changes in Capital


(As of March 31, 2024)								(Unit: Won, shares)
Date	Type	Number of Shares Issued or Cancelled		Par Value		Price		Remarks
September 29, 2008	Common Stock		356,351,693		5,000		48,444	Establishment of the Company
September 2, 2009	Common Stock		30,000,000		5,000		37,250	% increase in number of common shares: 8.41865%
October 19, 2016	Common Stock		31,759,844		5,000		35,474	% increase in number of common shares: 8.22045%
December 12, 2019	Common Stock		2,303,617		5,000		—	Share Cancellation(1)
February 14, 2022	Common Stock		3,455,426		5,000		—	Share Cancellation(1)
August 1, 2022	Common Stock		3,455,426		5,000		—	Share Cancellation(1)
April 4, 2023	Common Stock		5,385,996		5,000		—	Share Cancellation(1)

Note: (1)

The cancelled shares constituted treasury shares acquired pursuant to a resolution of the board of directors of the Company within the limits of profit available for dividend payment, and as such, there was no change in paid-in capital.

Number of Shares

[Not required to be disclosed in quarterly reports]

1.4.2. Voting Rights


(As of March 31, 2024)				(Unit: shares)
Items		Number of Shares		Notes
Total number of issued shares	Common shares		403,511,072		—
Total number of issued shares	Preferred shares		—		—
Shares without voting rights	Common shares		20,747,247		Treasury shares
Shares without voting rights	Preferred shares		—		—

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Shares for which voting rights cannot be exercised pursuant to the Articles of Incorporation	—	—	—
Shares for which voting rights are restricted under relevant laws and regulations	—	—	—
Shares with restored voting rights	—	—	—
Total shares for which voting rights may be exercised	Common shares	382,763,825	—
Total shares for which voting rights may be exercised	Preferred shares	—	—

Notes: (1)

On July 25, 2023, the board of directors of the Company resolved to acquire and cancel certain of the Company’s treasury shares. Pursuant to such resolution, the Company entered into a trust agreement with Samsung Securities Co., Ltd. for the acquisition of Won 300 billion worth of treasury shares between August 1, 2023 and July 31, 2024 and has completed such acquisition on December 5, 2023, having acquired a total of 5,584,514 treasury shares. The Company plans to cancel such treasury shares after the trust agreement expires on July 31, 2024.

(2)

On February 7, 2024, the board of directors of the Company resolved to acquire and cancel certain of the Company’s treasury shares. Pursuant to such resolution, the Company entered into a trust agreement with Samsung Securities Co., Ltd. for the acquisition of Won 320 billion worth of treasury shares between February 8, 2024 and August 7, 2024, and is currently in the process of acquiring such shares, all of which the Company plans to cancel. For more information, please refer to the Company’s report on Form 6-K furnished to the Securities and Exchange Commission on February 7, 2024.

1.5.

Dividends

Since 2022, KB Financial Group has been pursuing a CET1 ratio-based shareholder return policy, whereby the Group’s principle is to utilize a portion of its excess capital exceeding its CET1 ratio of 13% to actively return value to its shareholders.

In order to enhance corporate value and shareholders’ value, the Group manages its shareholder return policy by using the ‘Total Shareholder Return Ratio’ as an indicator for its shareholder return, which includes distribution of cash dividends as well as share buybacks and cancellations. The Group plans to continually try to gradually expand its Total Shareholder Return Ratio.

In 2024, KB Financial Group implemented an ‘Equal Quarterly Dividend Distribution Policy,’ which aims to enhance the predictability of the Group’s dividend payments by paying an equal amount of total dividends each quarter while also maintaining at least the previous year’s level of, and gradually increasing the amount of, its dividends per share. In addition, the Group aims to enhance its shareholders’ value by striving to expand its shareholder return while also remaining flexible about buying back and cancelling its treasury shares in light of changes to its profit levels, the volatility of the financial market and changes in the regulatory landscape. Such cash dividend and share buyback and cancellation plans may be modified depending on economic conditions, the regulatory environment, or the Group’s business objectives.

KB Financial Group aims to manage its CET1 target ratio to be at least 13% (consisting of the regulatory requirement of 10.5% plus a management buffer of 2.5%), which also takes into consideration a capacity for absorbing losses in the event of an economic shock equivalent to that of the level of the Asian financial crisis in 1997.

In order to manage such CET1 target ratio, the Group plans to benchmark systemic growth indicators, such as nominal GDP growth rates, to set its mid-term goals for asset growth. However, the Group may modify such goals to better fulfill the Group’s public role and to attain sustainable growth in light of changes to the macroeconomic and regulatory environment, the importance and role of financial institutions, including banks, in the domestic economy, the Group’s public duty to maintain the stability of the social system, or the Group’s business objectives such as investments in new businesses or M&A initiatives.

Furthermore, the Group plans to manage its CET1 ratio at an optimal balance point by increasing its shareholder returns and complying with changes in financial regulations, including the introduction of the counter-cyclical capital buffer and the stress capital buffer, while also maintaining the soundness of the Group’s asset quality.

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(Unit: in millions of Won, except per share amounts and percentages)

Items		January 1, 2024 to March 31, 2024		January 1, 2023 to December 31, 2023(1)		January 1, 2022 to December 31, 2022(2)
Par value per share (Won)			5,000		5,000		5,000
(Consolidated) Net income			1,049,133		4,631,932		4,394,830
(Consolidated) Earnings per share (Won)			2,627		11,580		10,955
Total cash dividends			300,000		1,173,937		1,149,421
Total stock dividends			—		—		—
(Consolidated) Cash dividend payout ratio (%)			28.6		25.3		26.0
Cash dividend yield (%)	Common shares		1.1		4.9		5.8
	—		—		—		—
Stock dividend yield (%)	Common shares		—		—		—
Stock dividend yield (%)	—		—		—		—
Cash dividend per share (Won)	Common shares		784		3,060		2,950
Cash dividend per share (Won)	—		—		—		—
Stock dividend per share	Common shares		—		—		—
Stock dividend per share	—		—		—		—

Notes:

(1)

Includes a quarterly dividend amount of Won 195,967 million (Won 510 per common share) in the first quarter of fiscal year 2023, a quarterly dividend amount of Won 195,967 million (Won 510 per common share) in the second quarter of fiscal year 2023, and a quarterly dividend amount of Won 194,998 million (Won 510 per common share) in the third quarter of fiscal year 2023 paid in 2023, and an annual dividend amount of Won 587,006 million (Won 1,530 per common share).

(2)

Includes a quarterly dividend amount of Won 194,817 million (Won 500 per common share) in the first quarter of fiscal year 2022, a quarterly dividend amount of Won 194,817 million (Won 500 per common share) in the second quarter of fiscal year 2022, and a quarterly dividend amount of Won 194,817 million (Won 500 per common share) in the third quarter of fiscal year 2022.

1.6.	Amendments to the Articles of Incorporation

[Not required to be disclosed in quarterly reports]

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Business

2.1.	Results of Operations


								(Unit: in millions of Won)
	For the three months ended March 31, 2024			For the three months ended March 31, 2023			For the year ended December 31, 2023			For the year ended December 31, 2022
Net interest income		3,151,485			2,823,865			12,141,717			11,515,325
Interest income		7,613,962			6,866,583			29,145,079			20,787,577
Interest expense		(4,462,477	)		(4,042,718	)		(17,003,362	)		(9,272,252	)
Net fee and commission income		990,093			914,006			3,673,524			3,514,902
Fee and commission income		1,396,300			1,334,702			5,368,074			5,125,930
Fee and commission expense		(406,207	)		(420,696	)		(1,694,550	)		(1,611,028	)
Net insurance income		538,379			392,407			1,422,952			1,311,091
Insurance income		2,727,558			2,663,134			10,978,808			10,072,490
Insurance expense		(2,189,179	)		(2,270,727	)		(9,555,856	)		(8,761,399	)
Net gains (losses) on financial assets/liabilities at fair value through profit or loss		249,133			773,407			2,163,065			(1,139,818	)
Other insurance finance income (expense)		(112,426	)		(269,060	)		(459,135	)		841,227
Net other operating expenses		(404,710	)		(260,124	)		(2,712,989	)		(2,262,123	)
General and administrative expenses		(1,628,236	)		(1,566,286	)		(6,647,406	)		(6,643,654	)
Operating profit before provision for credit losses		2,783,718			2,808,215			9,581,728			7,136,950
Provision for credit losses		(428,270	)		(668,188	)		(3,146,409	)		(1,847,775	)
Net operating profit		2,355,448			2,140,027			6,435,319			5,289,175

Notes:

(1)

Based on K-IFRS (on a consolidated basis).

(2)

KB Financial Group’s results of operations for the three months ended March 31, 2024 and the year ended December 31, 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), a new accounting standard that became effective on January 1, 2023. For comparison purposes, the figures for the year ended December 31, 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117.

(3)

KB Financial Group’s results of operations for the three months ended March 31, 2023 above have been restated retrospectively to reflect the application of the variable fee approach for measuring insurance liabilities in accordance with the Financial Supervisory Service’s guidelines on actuarial assumptions.

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2.2.	Sources and Uses of Funds

2.2.1. Sources of Funds


(Unit: in millions of Won)
		For the three months ended March 31, 2024						For the year ended December 31, 2023						For the year ended December 31, 2022
		Average Balance		Interest Rate (%)		Ratio (%)		Average Balance		Interest Rate (%)		Ratio (%)		Average Balance		Interest Rate (%)		Ratio (%)
Won Currency	Deposits		353,362,143		2.53		46.40		338,691,272		2.52		45.63		333,078,280		1.27		47.87
	Certificate of deposit		11,317,560		4.05		1.49		10,417,992		4.07		1.40		5,511,822		2.35		0.79
	Borrowings		33,205,228		3.54		4.36		33,891,286		3.27		4.57		31,064,028		1.91		4.46
	Call money		1,277,497		3.52		0.17		1,384,033		3.52		0.19		1,314,525		2.02		0.19
	Debentures		45,217,883		4.44		5.94		56,008,914		3.36		7.55		58,290,290		2.39		8.38
	Others		23,364,082		4.20		3.06		22,355,370		4.37		3.01		20,866,612		2.34		3.00

Subtotal			467,744,393		2.91		61.42		462,748,867		2.81		62.35		450,125,557		1.52		64.69

Foreign Currency	Deposits		36,735,274		4.22		4.82		36,526,597		3.88		4.92		34,076,754		2.09		4.90
	Borrowings		21,612,976		4.21		2.84		24,087,170		3.77		3.25		22,970,783		1.90		3.30
	Call money		2,242,651		3.62		0.29		2,014,719		3.19		0.27		1,572,913		1.87		0.23
	Debentures		24,944,501		1.87		3.28		13,607,050		3.14		1.83		11,978,139		2.09		1.72
	Others		1,095,224		4.59		0.15		1,067,253		3.51		0.14		1,685,165		1.46		0.24

Subtotal			86,630,626		3.53		11.38		77,302,789		3.69		10.41		72,283,754		2.01		10.39

Others	Total shareholders’ equity		99,516,573		—		13.07		95,694,663		—		12.89		67,612,953		—		9.72
	Allowances		1,448,531		—		0.19		1,061,174		—		0.14		1,128,687		—		0.16
	Others		106,213,010		—		13.94		105,428,693		—		14.21		104,628,576		—		15.04

Subtotal			207,178,114		—		27.20		202,184,530		—		27.24		173,370,216		—		24.92

Total			761,553,133		—		100.00		742,236,186		—		100.00		695,779,527		—		100.00

Notes:

(1)

Based on K-IFRS (on a consolidated basis).

(2)

The figures for the three months ended March 31, 2024 and the year ended December 31, 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), a new accounting standard that became effective on January 1, 2023. The figures for the year ended December 31, 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117.

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2.2.2. Uses of Funds


																		(Unit: in millions of Won)
		For the three months ended March 31, 2024								For the year ended December 31, 2023								For the year ended December 31, 2022
		Average Balance			Interest Rate (%)		Ratio (%)			Average Balance			Interest Rate (%)		Ratio (%)			Average Balance			Interest Rate (%)		Ratio (%)
Won Currency	Due from banks		15,999,945			0.79		2.10			16,471,530			0.92		2.22			16,038,688			0.63		2.31
	Securities		208,973,283			2.25		27.44			199,538,723			2.72		26.88			166,950,909			1.17		23.99
	Loans		381,204,035			4.84		50.06			370,190,671			4.81		49.88			361,188,713			3.51		51.91
	Guarantee payments under payment guarantee		7,511			1.51		—			5,114			0.81		—			6,891			0.19		—
	Call loan		390,699			3.56		0.05			286,735			3.62		0.04			694,196			2.02		0.10
	Private placement corporate bonds		1,116,725			3.41		0.15			1,206,821			2.90		0.16			828,547			3.43		0.12
	Credit cards		23,048,134			8.21		3.03			22,789,066			7.93		3.07			22,069,290			6.94		3.17
	Others		3,762,817			17.94		0.49			3,415,038			17.44		0.46			4,438,987			9.45		0.64
	Allowance		(4,153,738	)		—		(0.55	)		(3,561,894	)		—		(0.48	)		(2,814,578	)		—		(0.40	)

Subtotal			630,349,411			4.11		82.77			610,341,804			4.23		82.23			569,401,643			2.94		81.84

Foreign Currency	Due from banks		9,715,545			2.70		1.28			9,292,372			2.28		1.25			9,239,891			0.76		1.33
	Securities		25,088,696			4.28		3.29			25,883,766			4.16		3.49			20,610,143			1.81		2.96
	Loans		38,641,424			7.14		5.07			39,403,960			6.97		5.31			37,267,941			5.32		5.36
	Call loan		7,360,291			5.08		0.97			7,399,847			4.49		1.00			8,829,592			2.12		1.27
	Bills bought		1,479,334			5.79		0.19			2,047,390			5.58		0.28			2,541,838			2.32		0.37
	Allowance		(1,534,963	)		—		(0.20	)		(1,322,830	)		—		(0.18	)		(1,021,192	)		—		(0.15	)
	Others		3,036,235			—		0.40			3,070,684			—		0.41			2,248,320			—		0.32

Subtotal			83,786,562			5.53		11.00			85,775,189			5.30		11.56			79,716,533			3.38		11.46

Others	Cash		1,650,386			—		0.22			1,681,170			—		0.23			1,831,093			—		0.26
	Fixed assets held for business		9,567,942			—		1.26			8,813,616			—		1.19			8,077,249			—		1.16
	Others		36,198,832			—		4.75			35,624,407			—		4.79			36,753,009			—		5.28

Subtotal			47,417,160			—		6.23			46,119,193			—		6.21			46,661,351			—		6.70

Total			761,553,133			—		100.00			742,236,186			—		100.00			695,779,527			—		100.00

Notes:

(1)

Based on K-IFRS (on a consolidated basis).

(2)

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2.3. Other Information to Consider in Making an Investment Decision

2.3.1. Capital Adequacy


KB Financial Group			(Unit: in billions of Won, except percentages)
	As of March 31, 2024		As of December 31, 2023		As of December 31, 2022
Total capital (A)		55,189		53,744		48,970
Risk-weighted assets (B)		333,754		321,319		302,984
BIS ratio (A/B)		16.54%		16.73%		16.16%

Notes:

(1) Calculated in accordance with Basel III.

(2) The figures as of March 31, 2024 are preliminary.


Kookmin Bank			(Unit: in billions of Won, except percentages)
	As of March 31, 2024		As of December 31, 2023		As of December 31, 2022
Total capital (A)		39,394		39,040		36,233
Risk-weighted assets (B)		227,577		215,962		207,558
BIS ratio (A/B)		17.31%		18.08%		17.46%

Notes:

(1) Calculated in accordance with Basel III.

(2) The figures as of March 31, 2024 are preliminary.


KB Securities Co., Ltd.			(Unit: in billions of Won, except percentages)
	As of March 31, 2024		As of December 31, 2023		As of December 31, 2022
Net operating capital (A)		5,189		5,058		4,554
Total amount at risk (B)		2,870		2,934		2,655
Maintenance equity margin (C)		134		134		134
Net capital ratio (A-B)/(C)		1,727.37%		1,582.09%		1,414.74%
Capital surplus (A-B)		2,319		2,124		1,899


KB Insurance Co., Ltd.			(Unit: in billions of Won, except percentages)
	As of March 31, 2024		As of December 31, 2023		As of December 31, 2022
Available capital (A)		11,646		11,669		4,608
Required capital (B)		5,703		5,404		2,684
Solvency ratio (A/B)(2)		204.20%		215.94%		171.66%

Notes:

(1) The figures as of March 31, 2024 are preliminary.

(2) Pursuant to the change in capital adequacy system from the Risk-Based Capital (“RBC”) system to the Korean Insurance Capital Standard (“K-ICS”) system in 2023, the figures as of March 31, 2024 and December 31, 2023 were calculated based on the K-ICS method, whereas the figures as of December 31, 2022 were calculated based on the RBC method.

2.3.2. Overseas Credit Ratings

[Not required to be disclosed in quarterly reports]

2.3.3. Domestic Credit Ratings

[Not required to be disclosed in quarterly reports]

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2.3.4. Early Retirement Program

To enhance productivity by improving its labor structure, Kookmin Bank implemented a voluntary early retirement program following negotiations with its labor union.


Subsidiary	Date of Retirement	Number of Retired Persons
Kookmin Bank	January 28, 2019	615
	January 20, 2020	462
	January 30, 2021	800
	January 21, 2022	674
	January 18, 2023	713
	January 19, 2024	674

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3.	Financial Information

3.1.	Consolidated Financial Information

3.1.1. Consolidated Statements of Financial Position


(Unit: in millions of Won)
	As of March 31, 2024		As of December 31, 2023
Cash and due from financial institutions		30,509,269		29,836,311
Financial assets at fair value through profit or loss		77,356,807		77,038,267
Derivative financial assets		7,260,440		6,157,628
Loans measured at amortized cost		448,194,423		444,805,287
Financial investments		124,966,655		122,199,529
Investments in associates and joint ventures		700,626		722,222
Insurance assets		268,419		229,640
Reinsurance assets		1,552,936		1,655,168
Property and equipment		5,310,307		4,945,699
Investment property		3,962,852		4,109,784
Intangible assets		1,961,022		1,950,858
Net defined benefit assets		382,385		374,090
Current income tax assets		274,900		244,317
Deferred income tax assets		335,124		274,225
Assets held for sale		119,494		208,230
Other assets		29,084,622		20,986,897

Total assets		732,240,281		715,738,152

Financial liabilities at fair value through profit or loss		11,267,107		10,920,435
Derivative financial liabilities		7,236,591		6,210,639
Deposits		418,070,668		406,512,434
Borrowings		62,993,551		69,583,561
Debentures		70,002,922		69,176,668
Insurance contract liabilities		50,704,289		50,308,552
Reinsurance contract liabilities		37,353		36,030
Provisions		2,062,011		1,444,418
Net defined benefit liabilities		72,939		81,869
Current income tax liabilities		146,395		145,335
Deferred income tax liabilities		2,004,644		2,179,966
Other liabilities		48,434,480		40,264,935

Total liabilities		673,032,950		656,864,842

Equity attributable to shareholders of the parent company		57,136,088		56,929,804

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	As of March 31, 2024			As of December 31, 2023
Share capital		2,090,558			2,090,558
Hybrid securities		5,431,863			5,032,803
Capital surplus		16,639,873			16,647,916
Accumulated other comprehensive income		1,531,423			2,295,165
Retained earnings		32,439,145			32,029,199
Treasury shares		(996,774	)		(1,165,837	)
Non-controlling interests		2,071,243			1,943,506

Total equity		59,207,331			58,873,310

Total liabilities and equity		732,240,281			715,738,152

Number of companies included as a consolidated entity		351			371

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3.1.2. Consolidated Statements of Comprehensive Income


(Unit: in millions of Won, except per share amounts)
	First Quarter of 2024						First Quarter of 2023
	Specified Quarter			Cumulative			Specified Quarter			Cumulative
Net interest income		3,151,485			3,151,485			2,823,865			2,823,865
Interest income		7,613,962			7,613,962			6,866,583			6,866,583
Interest income from financial instruments at fair value through other comprehensive income and amortized cost		7,228,877			7,228,877			6,527,556			6,527,556
Interest income from financial instruments at fair value through profit or loss		376,753			376,753			333,477			333,477
Insurance finance interest income		8,332			8,332			5,550			5,550
Interest expense		(4,462,477	)		(4,462,477	)		(4,042,718	)		(4,042,718	)
Interest expense		(4,066,526	)		(4,066,526	)		(3,639,880	)		(3,639,880	)
Insurance finance interest expense		(395,951	)		(395,951	)		(402,838	)		(402,838	)
Net fee and commission income		990,093			990,093			914,006			914,006
Fee and commission income		1,396,300			1,396,300			1,334,702			1,334,702
Fee and commission expense		(406,207	)		(406,207	)		(420,696	)		(420,696	)
Net insurance income		538,379			538,379			392,407			392,407
Insurance income		2,727,558			2,727,558			2,663,134			2,663,134
Insurance income		2,689,474			2,689,474			2,498,548			2,498,548
Reinsurance income		38,084			38,084			164,586			164,586
Insurance expense		(2,189,179	)		(2,189,179	)		(2,270,727	)		(2,270,727	)
Insurance service expense		(1,973,227	)		(1,973,227	)		(2,073,226	)		(2,073,226	)
Reinsurance expense		(215,952	)		(215,952	)		(197,501	)		(197,501	)
Net gains on financial assets/liabilities at fair value through profit or loss		249,133			249,133			773,407			773,407
Other insurance finance expenses		(112,426	)		(112,426	)		(269,060	)		(269,060	)
Net other operating expenses		(404,710	)		(404,710	)		(260,124	)		(260,124	)
General and administrative expenses		(1,628,236	)		(1,628,236	)		(1,566,286	)		(1,566,286	)
Operating income before provision for credit losses		2,783,718			2,783,718			2,808,215			2,808,215
Provision for credit losses		(428,270	)		(428,270	)		(668,188	)		(668,188	)
Net operating income		2,355,448			2,355,448			2,140,027			2,140,027
Net non-operating expenses		(947,964	)		(947,964	)		(96,161	)		(96,161	)
Share of loss of associates and joint ventures		(1,419	)		(1,419	)		(2,496	)		(2,496	)
Net other non-operating expenses		(946,545	)		(946,545	)		(93,665	)		(93,665	)
Profit before income tax expense		1,407,484			1,407,484			2,043,866			2,043,866
Income tax expense		(344,270	)		(344,270	)		(533,575	)		(533,575	)
Profit for the period		1,063,214			1,063,214			1,510,291			1,510,291
Other comprehensive income (loss) for the period, net of tax		(759,802	)		(759,802	)		484,795			484,795

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	First Quarter of 2024						First Quarter of 2023
	Specified Quarter			Cumulative			Specified Quarter			Cumulative
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities		8,995			8,995			5,828			5,828
Share of other comprehensive loss of associates and joint ventures		—			—			(2	)		(2	)
Losses on equity securities at fair value through other comprehensive income		(12,566	)		(12,566	)		(110	)		(110	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		(8,843	)		(8,843	)		(49,975	)		(49,975	)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences		162,945			162,945			115,819			115,819
Gains (losses) on debt securities at fair value through other comprehensive income		(657,227	)		(657,227	)		1,525,457			1,525,457
Share of other comprehensive loss of associates and joint ventures		(142	)		(142	)		(4,158	)		(4,158	)
Losses on cash flow hedging instruments		(36,797	)		(36,797	)		(35,465	)		(35,465	)
Losses on hedging instruments of net investments in foreign operations		(51,203	)		(51,203	)		(30,133	)		(30,133	)
Insurance finance expenses		(164,964	)		(164,964	)		(1,042,466	)		(1,042,466	)
Total comprehensive income for the period		303,412			303,412			1,995,086			1,995,086
Profit attributable to:
Shareholders of the parent company		1,049,133			1,049,133			1,508,708			1,508,708
Non-controlling interests		14,081			14,081			1,583			1,583
Total comprehensive income for the period attributable to:
Shareholders of the parent company		281,279			281,279			1,982,382			1,982,382
Non-controlling interests		22,133			22,133			12,704			12,704
Earnings per share
Basic earnings per share (Won)		2,627			2,627			3,782			3,782
Diluted earnings per share (Won)		2,584			2,584			3,697			3,697

Note: (1)

The figures for the first quarter of 2023 have been restated retrospectively to reflect the application of the variable fee approach for measuring insurance liabilities in accordance with the Financial Supervisory Service’s guidelines on actuarial assumptions.

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3.2.	Separate Financial Information

3.2.1. Separate Statements of Financial Position


(Unit: in millions of Won)
	As of March 31, 2024			As of December 31, 2023
Cash and due from financial institutions		2,621,612			256,337
Financial assets at fair value through profit or loss		1,062,613			1,376,423
Loans measured at amortized cost		643,195			608,286
Investments in subsidiaries		26,717,817			26,717,817
Property and equipment		3,766			3,080
Intangible assets		15,409			15,954
Net defined benefit assets		3,347			3,694
Deferred income tax assets		7,873			4,492
Other assets		1,069,424			542,815

Total assets		32,145,056			29,528,898

Borrowings		465,000			100,000
Debentures		3,267,247			3,871,820
Current income tax liabilities		127,739			104,299
Other liabilities		1,093,802			410,704

Total liabilities		4,953,788			4,486,823

Share capital		2,090,558			2,090,558
Hybrid securities		5,431,563			5,032,518
Capital surplus		14,748,242			14,754,747
Accumulated other comprehensive loss		(6,762	)		(6,809	)
Retained earnings		5,924,441			4,336,898
Treasury Shares		(996,774	)		(1,165,837	)

Total equity		27,191,268			25,042,075

Total liabilities and equity		32,145,056			29,528,898

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3.2.2. Separate Statements of Comprehensive Income


(Unit: in millions of Won, except per share amounts)
	First Quarter of 2024						First Quarter of 2023
	Specified Quarter			Cumulative			Specified Quarter			Cumulative
Net interest expense		(13,725	)		(13,725	)		(20,054	)		(20,054	)
Interest income		9,817			9,817			6,670			6,670
Interest income from financial instruments at amortized cost		9,115			9,115			5,551			5,551
Interest income from financial instruments at fair value through profit or loss		702			702			1,119			1,119
Interest expense		(23,542	)		(23,542	)		(26,724	)		(26,724	)
Net fee and commission expense		(1,142	)		(1,142	)		(1,247	)		(1,247	)
Fee and commission income		378			378			372			372
Fee and commission expense		(1,520	)		(1,520	)		(1,619	)		(1,619	)
Net gains on financial assets at fair value through profit or loss		15,579			15,579			45,428			45,428
Net other operating income		2,243,250			2,243,250			2,192,380			2,192,380
General and administrative expenses		(24,187	)		(24,187	)		(22,902	)		(22,902	)
Operating profit before provision for credit losses		2,219,775			2,219,775			2,193,605			2,193,605
Reversal of (provision for) credit losses		(96	)		(96	)		0			0
Operating profit		2,219,679			2,219,679			2,193,605			2,193,605
Net non-operating income (expense)		(646	)		(646	)		13			13
Profit before income tax		2,219,033			2,219,033			2,193,618			2,193,618
Income tax income (expense)		3,586			3,586			(10,691	)		(10,691	)
Profit for the year		2,222,619			2,222,619			2,182,927			2,182,927
Other comprehensive income for the year, net of tax		47			47			17			17
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities		47			47			17			17

Total comprehensive income for the year		2,222,666			2,222,666			2,182,944			2,182,944

Earnings per share
Basic earnings per share (Won)		5,706			5,706			5,520			5,520
Diluted earnings per share (Won)		5,612			5,612			5,394			5,394

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3.3.	Other Selected Financial Data

3.3.1. Won-denominated Liquidity Ratio


	(Unit: in millions of Won, except percentages)
	As of March 31, 2024			As of December 31, 2023			As of December 31, 2022
Current assets in Won (A)		3,150,241			656,555			959,935
Current liabilities in Won (B)		1,041,158			255,693			592,727
Liquidity ratio (A/B)		302.57	%		256.77	%		161.95	%

Notes: (1)

Based on K-IFRS (on a separate basis).

(2)	Calculated based on Won-denominated assets and liabilities due within one month.

3.3.2. Profitability Ratios


				(Unit: %)
	For the three months ended March 31, 2024		For the year ended December 31, 2023	For the year ended December 31, 2022
Net income as a percentage of average total assets (ROA)		0.59	0.65	0.57
Net income as a percentage of average shareholders’ equity (ROE)		7.40	8.37	8.17

Note:

Based on K-IFRS (on a consolidated basis).

3.3.3. 20 Largest Exposures of Kookmin Bank by Borrower (As of March 31, 2024)


	(Unit: in billions of Won)
Company	Credit Extended
LG Display Co., Ltd.		1,959
Samsung Electronics Co., Ltd.		1,540
KB Kookmin Card Co., Ltd.		1,284
E-MART Inc.		1,181
HD Hyundai Heavy Industries Co., Ltd.		1,134
SK On Co., Ltd.		1,105
Hanwha Solutions Corporation		986
Strada Holdco L.P.		945
LG Energy Solution, Ltd.		911
SK Inc.		898
Samsung Heavy Industries Co., Ltd.		873
Samsung SDI Co., Ltd.		839
Hyundai Samho Heavy Industries Co., Ltd.		762
SK hynix Inc.		741
Construction Guarantee Cooperative		727
LG Chem, Ltd.		727
Shinhan Card Co., Ltd.		718
Posco International Corporation		701
HDC Hyundai Development Company		693
Hanwha Ocean Co., Ltd.		650

Total		19,374

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3.3.4. 10 Largest Exposures of Kookmin Bank by Chaebol Group (As of March 31, 2024)


	(Unit: in billions of Won)
Group	Credit Extended
SK		6,364
Samsung		5,168
LG		4,764
Hyundai Motor		4,340
Lotte		3,717
HD Hyundai (former Hyundai Heavy Industries)		3,519
Hanwha		3,286
POSCO		1,989
Shinsegae		1,681
GS		1,659

Total		36,487

3.3.5. Kookmin Bank’s Loan Concentration by Industry (As of March 31, 2024)


(Unit: in billions of Won, except percentages)
Industry	Total Credit		Percentage of Total Credit
Manufacturing		56,198		26.3
Construction		5,525		2.6
Real estate activities		53,825		25.2
Wholesale and retail trade		30,209		14.1
Accommodation and food service activities		10,937		5.1
Financial activities		8,447		4.0
Others		48,610		22.7

Total		213,750		100.0

3.3.6. Top 20 Non-Performing Loans of Kookmin Bank (As of March 31, 2024)


		(Unit: in billions of Won)
Borrower	Industry	Total Credit		Allowance for Loan Losses
Borrower A	Real estate activities		254.1		117.0
Borrower B	Construction		40.1		39.3
Borrower C	Manufacturing		26.5		22.1
Borrower D	Construction		22.6		19.6
Borrower E	Real estate activities		14.8		4.3
Borrower F	Real estate activities		14.8		4.3
Borrower G	Wholesale and retail trade		11.2		11.0
Borrower H	Real estate activities		11.0		2.0
Borrower I	Manufacturing		8.5		2.8
Borrower J	Real estate activities		7.8		0.8
Borrower K	Accommodation and food service activities		7.8		0.2
Borrower L	Manufacturing		7.6		5.3
Borrower M	Manufacturing		6.8		3.8
Borrower N	Real estate activities		6.5		0.8
Borrower O	Transportation and warehousing business		5.0		1.0
Borrower P	Manufacturing		4.5		3.2
Borrower Q	Publishing, film, broadcasting and information services		4.4		3.4
Borrower R	Manufacturing		3.8		0.2
Borrower S	Accommodation and food service activities		3.8		0.2
Borrower T	Manufacturing		3.6		3.5

—	—		465.3		244.9

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3.4.	Other Financial Information

See Exhibits 99.1 and 99.2 attached hereto for our consolidated and separate financial statements and relevant notes, which have been prepared in accordance with K-IFRS and reviewed by our independent auditors as stated in their review reports. The review reports will also be available on our website at www.kbfg.com.

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4.	Independent Public Accountants

4.1.	Audit / Review Services

(Unit: in millions of Won)

Period

Auditor

Activity

Agreed Per Contract(1)

Actual(2)

Compensation(3)

Estimated
Hours

Compensation(3)

Accrued
Hours

January 1 to March 31, 2024

Samil PricewaterhouseCoopers

Quarterly, semi-annual and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)

1,296

10,970

462

1,463

January 1 to December 31, 2023

Samil PricewaterhouseCoopers

Quarterly, semi-annual and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)

1,264

11,675

1,264

11,309

January 1 to December 31, 2022

KPMG Samjong Accounting Corp.

Quarterly, semi-annual and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)

1,291

11,364

1,291

11,028

Notes:

(1)

Total compensation and estimated hours are established at the time of the execution of the audit and review services contract.

(2)

Actual compensation and hours are accrued from January 1 of each applicable year to the date of the audit or review report issued during such year.

(3)

Excluding value-added taxes.

4.2.	Public Company Accounting Oversight Board (“PCAOB”) Audit Services


(Unit: in millions of Won)
Period	Auditor	Activity	Service Period	Compensation(1)
January 1 to March 31, 2024	Samil Pricewaterhouse Coopers	PCAOB audit of consolidated financial statements and internal control over financial reporting	May 1, 2024 to April 30, 2025		804
January 1 to December 31, 2023	Samil Pricewaterhouse Coopers	PCAOB audit of consolidated financial statements and internal control over financial reporting	May 1, 2023 to April 30, 2024		784
January 1 to December 31, 2022	KPMG Samjong Accounting Corp.	PCAOB audit of consolidated financial statements and internal control over financial reporting	May 1, 2022 to April 30, 2023		697

Note:

(1)

Total compensation (excluding value-added taxes) is established at the time of the execution of the audit and review services contract.

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4.3.	Change in Auditor

Pursuant to the Act on External Audit of Stock Companies and the related regulations thereunder, the Securities and Futures Commission under the Financial Services Commission had designated KPMG Samjong Accounting Corp. as the external auditor for the Company for the fiscal years ended December 31, 2020, 2021 and 2022. Following the end of KPMG Samjong Accounting Corp.’s designated period as the auditor, the Company selected Samil PricewaterhouseCoopers to be its new external auditor for the fiscal years ending December 31, 2023, 2024 and 2025, in accordance with the criteria and processes set forth by relevant laws and regulations. As such, the external auditor for the Company and its subsidiaries for the fiscal year ended December 31, 2023 was Samil PricewaterhouseCoopers.

5.	Corporate Governance and Affiliated Companies

5.1.	Board of Directors & Committees under the Board

[Not required to be disclosed in quarterly reports]

5.2.	Audit Committee

[Not required to be disclosed in quarterly reports]

5.3.	Compensation to Directors

[Not required to be disclosed in quarterly reports]

5.4.	Top 5 Highest-Paid Individuals

[Not required to be disclosed in quarterly reports]

5.5.	Affiliated Companies

[Not required to be disclosed in quarterly reports]

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6.	Directors, Senior Management and Employees

6.1.	Executive Directors

As of March 31, 2024 we had one executive director. The name, position and the end of the term of our executive director and the number of shares of our common stock he owned as of March 31, 2024 are set forth below.


Name	Date of Birth	Position	Common Shares Owned	End of Term
Jong Hee Yang	June 1961	Chairman & Chief Executive Officer	5,914	November 20, 2026

6.2.	Non-standing Directors

As of March 31, 2024, we had one non-standing director. The name, position and the end of the term of our non-standing director and the number of shares of our common stock he owned as of March 31, 2024 are set forth below.


Name	Date of Birth	Position	Common Shares Owned	End of Term(1)
Jae Keun Lee	May 1966	Non-standing Director	1,119	March 21, 2025

Note: (1)

The date designated as Mr. Jae Keun Lee’s end of term is the date of the annual general meeting of shareholders for fiscal year 2024, which is expected be held in March 2025.

6.3.	Non-executive Directors

As of March 31, 2024, we had seven non-executive directors. The name, position and the end of the term of our non-executive directors and the number of shares of our common stock they respectively owned as of March 31, 2024 were as follows.


Name	Date of Birth	Position	Common Shares Owned		End of Term
Seon-joo Kwon	November 1956	Non-executive Director		—	March 21, 2025
Whajoon Cho	February 1957	Non-executive Director		—	March 23, 2025
Gyutaeg Oh	February 1959	Non-executive Director		—	March 21, 2025
Jungsung Yeo	April 1960	Non-executive Director		—	March 23, 2025
Jaehong Choi	August 1962	Non-executive Director		—	March 21, 2025
Myong-Hwal Lee	May 1964	Non-executive Director		—	March 21, 2026
Sung-Yong Kim	March 1966	Non-executive Director			March 23, 2025

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6.4.	Senior Management

Members of our senior management as of March 31, 2024 are as follows.


Name	Date of Birth	Position	Common Shares Owned(1)		End of Term
Seung Jong Lee	January 1966	Senior Executive Vice President and Chief Strategy Officer		1,198	December 31, 2024
Jae Kwan Kim	July 1968	Senior Executive Vice President and Chief Finance Officer		4,807	December 31, 2024
Cheal Soo Choi	October 1966	Senior Executive Vice President and Chief Risk Management Officer		504	December 31, 2024
Scott Y.H. Seo	March 1966	Senior Executive Vice President and Chief Business Officer of Global		2,000	December 31, 2024
Young Suh Cho	February 1971	Senior Executive Vice President, Chief Digital Officer and Chief IT Officer		1,000	December 31, 2024
Dae Hwan Lim	November 1965	Senior Executive Vice President and Chief Compliance Officer		1,715	December 31, 2025
Bong Joong Kwon	November 1969	Senior Managing Director and Head of the IR Division		2,103	December 31, 2024
Hyo Ik Park	January 1970	Senior Managing Director and Chief Business Officer of Insurance		784	December 31, 2024
Dae Hyun Cha	January 1966	Senior Managing Director and Chief Officer of Audit Department		1,244	December 31, 2024
Keoung Nam Kim	August 1967	Managing Director and Head of the ESG Division		1,213	December 31, 2024
Sang Rock Na	August 1972	Managing Director and General Manager of the Financial Planning Department		743	December 31, 2025
Hyo Sung Jeon	March 1971	Managing Director and Chief Human Resources Officer		1,272	December 31, 2025
Ki Won Seo	November 1972	Managing Director and General Manager of the Office of Board of Directors		665	December 31, 2025
Jin Young Park	September 1972	Chief Public Relation Officer		1,680	December 31, 2024
Jin Ho Jeong	October 1967	Head of the DT Division		2,138	December 31, 2024
Chang Hwa Yook	December 1967	Head of the AI Division		657	December 31, 2024
Sang Won Oh	December 1967	Head of the IT Division		676	December 31, 2024
Yoon Ha	March 1971	Head of the Customer Experience Design Center		—	December 31, 2024
Soon Young Oh	August 1977	Head of the Financial AI Center		—	December 31, 2024
Ki Eun Park	September 1970	Head of the Group Architecture Center		261	December 31, 2024
Joo Hyun Kim	November 1970	Head of the Group Cloud Center		281	December 31, 2024
Chan Yong Park	September 1965	Head of the Planning & Coordination Department		1,134	December 31, 2024

Note:

(1)

The numbers of common shares owned are as of March 31, 2024 and includes those owned in the holder’s name under the employee stock ownership association’s account, and may differ from the number of shares owned as reported pursuant to Article 173 of the Financial Investment Services and Capital Markets Act.

Subsequent to the end of the first quarter of 2024, the following individuals joined as members of our senior management in April 2024.


Name	Date of Birth	Position	Common Shares Owned(3)		End of Term
Shin Dong Jeung(1)	January 1966	Senior Managing Director and the Head of KB Research		—	December 31, 2024
Young Sei Park(2)	January 1968	Head of Consumer Protection Division		522	December 31, 2024

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Notes:

(1)

Newly appointed on April 6, 2024.

(2)

Newly appointed on April 26, 2024.

(3)

The number of common shares owned is as of March 31, 2024 and includes those owned in the holder’s name under the employee stock ownership association’s account, and may differ from the number of shares owned as reported pursuant to Article 173 of the Financial Investment Services and Capital Markets Act.

As of March 31, 2024, the following management also served as senior management at our subsidiaries.


Name	Subsidiary	Position	Appointment Date
Jae Keun Lee	Kookmin Bank	Chief Executive Officer	January 2022
Keoung Nam Kim	Kookmin Bank	Managing Director, ESG Division	January 2024
Jin Young Park	Kookmin Bank	Managing Director, Brand & PR Group	January 2024
Jin Ho Jeong	Kookmin Bank	Senior Executive Vice President, DT Initiative Division	January 2024
Chang Hwa Yook	Kookmin Bank	Senior Executive Vice President, AI/Data Innovation Division	January 2024
Sang Won Oh	Kookmin Bank	Senior Executive Vice President, Tech Development Division	January 2024
Yoon Ha	Kookmin Bank	Head of the Customer Experience Design Center	January 2022
Soon Young Oh	Kookmin Bank	Managing Director, Financial AI Center	June 2022
Ki Eun Park	Kookmin Bank	Senior Executive Vice President, Tech Development Division	January 2024
Joo Hyun Kim	Kookmin Bank	Head of the Cloud Platform Department	February 2022
Chan Yong Park	Kookmin Bank	Senior Executive Vice President, Planning & Coordination Department	January 2024
Seung Jong Lee	KB Securities	Non-standing Director	March 2024
	KB Life Insurance	Non-standing Director	March 2024
Jae Kwan Kim	KB Insurance	Non-standing Director	March 2024
	KB Kookmin Card	Non-standing Director	March 2024
Sang Rock Na	KB Capital	Non-standing Director	March 2021
	KB Investment	Non-standing Director	August 2020

Subsequent to the end of the first quarter of 2024, the following addition was made to our list of management members who also served as senior management members at our subsidiaries, on April 26, 2024.


Name	Subsidiary	Position	Appointment Date
Young Sei Park	Kookmin Bank	Senior Executive Vice President, Consumer Protection Group	January 2024

6.5.

Employees

[Not required to be disclosed in quarterly reports]

Table of Contents

7.	Major Shareholders and Related Party Transactions

7.1.	Major Shareholders

[Not required to be disclosed in quarterly reports]

7.2.	Changes in the Largest Shareholder


					(Unit: shares, %)
Name of Largest Shareholder	Date of Change in Largest Shareholder/ Date of Change in Number of Shares Owned	Number of Shares of Common Stock(1)			Percentage of Total Issued Shares(2)
Korean National Pension Service	February 1, 2020		41,462,588	(3)		9.97
Korean National Pension Service	October 12, 2020		41,402,150			9.96
Korean National Pension Service	December 31, 2020		41,287,280			9.93
Korean National Pension Service	June 30, 2021		40,626,942			9.77
Korean National Pension Service	December 31, 2021		37,626,516			9.05
Korean National Pension Service	January 27, 2022		37,188,199	(4)		8.94
Korean National Pension Service	March 31, 2022		36,008,504			8.73
Korean National Pension Service	June 30, 2022		33,830,623			8.20
Korean National Pension Service	September 30, 2022		32,594,691			7.97
Korean National Pension Service	October 12, 2022		32,457,827	(5)		7.94
Korean National Pension Service	December 31, 2022		32,499,151			7.95
Korean National Pension Service	March 31, 2023		33,572,593			8.21
Korean National Pension Service	June 30, 2023		33,183,590			8.22
Korean National Pension Service	September 30, 2023		35,321,767			8.75
Korean National Pension Service	October 6, 2023		35,273,578			8.74
Korean National Pension Service	December 31, 2023		33,473,917			8.30
Korean National Pension Service	February 29, 2024		33,704,092			8.35
Korean National Pension Service	March 31, 2024		33,200,471			8.23

Notes:

(1)

Based on our shareholder registry as of the end of each applicable year unless specified otherwise.

(2)

Total number of shares of common stock issued as of the following dates:

From December 12, 2019 to February 14, 2022: 415,807,920

From February 14, 2022 to August 1, 2022: 412,352,494

From August 1, 2022 to April 4, 2023: 408,897,068

After April 4, 2023: 403,511,072

(3)

Based on disclosure made by the Korean National Pension Service in a statement of acquisition filing on February 7, 2020.

(4)

Based on disclosure made by the Korean National Pension Service in a statement of disposal filing on February 4, 2022.

(5)

Based on disclosure made by the Korean National Pension Service in a statement of disposal filing on November 2, 2022.

7.3.	Employee Stock Ownership Association

[Not required to be disclosed in quarterly reports]

7.4.	Investments in Affiliated Companies

[Not required to be disclosed in quarterly reports]

Table of Contents

7.5.	Related Party Transactions

7.5.1. Purchase of capital securities issued by KB Securities Co., Ltd.

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Securities Co., Ltd.

Subsidiary

No. 1 Private Placement of Capital Securities in Won

200

March 31, 2022

4.300%

March 31,

2052 (may be extended)

Working capital

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Securities Co., Ltd.

Subsidiary

No. 3 Private Placement of Capital Securities in Won

230

September 30, 2022

5.500%

September 30,

2052 (may be extended)

Working capital

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Securities Co., Ltd.

Subsidiary

No. 4 Private Placement of Capital Securities in Won

100

May 8, 2023

5.350%

May 8,

2053 (may be extended)

Working capital

7.5.2. Purchase of capital securities issued by KB Capital Co., Ltd.

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd.

Subsidiary

No. 299 Private Placement of Capital Securities in Won

March 27, 2015

6.548%(1)

March 27,

2045 (may be extended)

Working capital

Note:

(1) The interest rate has increased from its initial rate due to the non-exercise of the call option.

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd..

Subsidiary

No. 320 Private Placement of Capital Securities in Won

September 24,

2015

5.989%(1)

September 24, 2045

(may be extended)

Working capital

Note:

(1) The interest rate has increased from its initial rate due to the non-exercise of the call option.

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd.

Subsidiary

No. 343 Private Placement of Capital Securities in Won

March 29, 2016

6.305%(1)

March 29,

2046 (may be extended)

Working capital

Note:

(1) The interest rate has increased from its initial rate due to the non-exercise of the call option.

Table of Contents

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd.

Subsidiary

No. 352 Private Placement of Capital Securities in Won

June 28, 2016

6.466%(1)

June 28,

2046

(may be extended)

Working capital

Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd.

Subsidiary

No. 367 Private Placement of Capital Securities in Won

November 28, 2016

6.952%(1)

November 28, 2046 (may be extended)

Working capital

Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd.

Subsidiary

No. 378 Private Placement of Capital Securities in Won

April 27, 2017

7.664%(1)

April 27,

2047
(may be extended)

Working capital

Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd.

Subsidiary

No. 460 Private Placement of Capital Securities in Won

100

September 25, 2020

3.376%

September 25, 2050 (may be extended)

Working capital

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Capital Co., Ltd.

Subsidiary

No. 486 Private Placement of Capital Securities in Won

100

February 17, 2022

4.495%

February 17,

2052 (may be extended)

Working capital

7.5.3. Purchase of subordinated bonds issued by KB Savings Bank Co., Ltd.

(Unit: in billions of Won)

Issuer

Relationship

Type

Issue
Amount

Issue Date

Interest
Rate

Maturity Date

Use of
Proceeds

KB Savings Bank Co., Ltd.

Subsidiary

No. 1 Subordinated Bonds in Won

June 25, 2021

1.600%

June 25,

2031

Working capital

Table of Contents

7.5.4. Prepayments and Loans to Subsidiaries

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

July 14, 2017

2.654%

July 12, 2024

Notes: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

July 13, 2018

2.654%

July 12, 2024

Notes: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

March 8, 2019

2.694%

March 7, 2025

Notes: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

March 9, 2020

2.694%

March 7, 2025

Notes: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

July 13, 2020

2.654%

July 12, 2024

Notes: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

December 20, 2021

2.685%

December 19, 2024

Note: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

July 13, 2022

2.654%

July 12, 2024

Note: (1) Unsecured credit loans.

Table of Contents

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Investment Co., Ltd.

Subsidiary

Loans(1)

July 13, 2023

2.654%

July 12, 2024

Note: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Capital Co., Ltd.

Subsidiary

Loans(1)

200

November 25, 2022

2.470%

November 24, 2024

Note: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Real Estate Trust Co., Ltd.

Subsidiary

Loans(1)

July 25, 2023

4.275%

July 24, 2024

Note: (1) Unsecured credit loans.

(Unit: in billions of Won)

Name

Relationship

Account

Loan Amount

Current
Balance

Credit Offering

Date

Interest
Rate

Maturity Date

KB Real Estate Trust Co., Ltd.

Subsidiary

Loans(1)

February 28, 2024

4.081%

February 18, 2025

Note: (1) Unsecured credit loans.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	KB Financial Group Inc.

	(Registrant)

Date: May 16, 2024	By: /s/ Jae Kwan Kim

	(Signature)

	Name:	Jae Kwan Kim

	Title:	Senior Executive Vice President and Chief Finance Officer

EX-99.1 2 d830917dex991.htm EX-99.1 EX-99.1 Table of Contents

Exhibit 99.1

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Financial Statements

March 31, 2024 and 2023

(Unaudited)

Table of Contents

KB Financial Group Inc. and Subsidiaries


	Page(s)
Report on Review of Condensed Consolidated Interim Financial Statements		3-4

Consolidated Interim Financial Statements

Consolidated Interim Statements of Financial Position		5

Consolidated Interim Statements of Comprehensive Income		6-7

Consolidated Interim Statements of Changes in Equity		8

Consolidated Interim Statements of Cash Flows		9-10

Notes to the Consolidated Interim Financial Statements		11

Table of Contents

Report on Review of Condensed Consolidated Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and the Board of Directors of

KB Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of KB Financial Group Inc. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the consolidated interim statement of financial position of the Group as at March 31, 2024, and the related consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2024 and 2023, and material accounting policy information and other selected explanatory notes, expressed in Korean Won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) No. 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

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

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS No. 1034 Interim Financial Reporting.

Table of Contents

Other Matters

We have audited the consolidated statement of financial position of the Group as at December 31, 2023, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements in our audit report dated March 6, 2024. The consolidated statement of financial position as at December 31, 2023, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2023.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

May 16, 2024

This report is effective as of May 16, 2024, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Financial Position

March 31, 2024 and December 31, 2023


(in millions of Korean won)	Notes		March 31, 2024 (Unaudited)			December 31, 2023
Assets
Cash and due from financial institutions		4,6,7,30		30,509,269			29,836,311
Financial assets at fair value through profit or loss		4,6,11		77,356,807			77,038,267
Derivative financial assets		4,6,8		7,260,440			6,157,628
Loans measured at amortized cost		4,6,9,10		448,194,423			444,805,287
Financial investments		4,6,11		124,966,655			122,199,529
Investments in associates and joint ventures				700,626			722,222
Insurance contract assets		29		268,419			229,640
Reinsurance contract assets		29		1,552,936			1,655,168
Property and equipment				5,310,307			4,945,699
Investment property				3,962,852			4,109,784
Intangible assets				1,961,022			1,950,858
Net defined benefit assets		18		382,385			374,090
Current income tax assets				274,900			244,317
Deferred income tax assets		12,25		335,124			274,225
Assets held for sale				119,494			208,230
Other assets		4,6		29,084,622			20,986,897

Total assets				732,240,281			715,738,152

Liabilities
Financial liabilities at fair value through profit or loss		4,6,13		11,267,107			10,920,435
Derivative financial liabilities		4,6,8		7,236,591			6,210,639
Deposits		4,6,14		418,070,668			406,512,434
Borrowings		4,6,15		62,993,551			69,583,561
Debentures		4,6,16		70,002,922			69,176,668
Insurance contract liabilities		29		50,704,289			50,308,552
Reinsurance contract liabilities		29		37,353			36,030
Provisions		17		2,062,011			1,444,418
Net defined benefit liabilities		18		72,939			81,869
Current income tax liabilities				146,395			145,335
Deferred income tax liabilities		12,25		2,004,644			2,179,966
Other liabilities		4,6		48,434,480			40,264,935

Total liabilities				673,032,950			656,864,842

Equity
Share capital				2,090,558			2,090,558
Hybrid securities				5,431,863			5,032,803
Capital surplus				16,639,873			16,647,916
Accumulated other comprehensive income (loss)		27		1,531,423			2,295,165
Retained earnings				32,439,145			32,029,199
Treasury shares				(996,774	)		(1,165,837	)

Equity attributable to shareholders of the Parent Company		19		57,136,088			56,929,804
Non-controlling interests				2,071,243			1,943,506

Total equity				59,207,331			58,873,310

Total liabilities and equity				732,240,281			715,738,152

The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Comprehensive Income

Three-month Periods Ended March 31, 2024 and 2023


(in millions of Korean won, except per share amounts)	Notes		2024 (Unaudited)			2023 (Unaudited)
Interest income				7,613,962			6,866,583
Interest income from financial instruments at fair value through other comprehensive income and amortized cost				7,228,877			6,527,556
Interest income from financial instruments at fair value through profit or loss				376,753			333,477
Insurance finance interest income				8,332			5,550
Interest expense				(4,462,477	)		(4,042,718	)
Interest expense				(4,066,526	)		(3,639,880	)
Insurance finance interest expense				(395,951	)		(402,838	)

Net interest income		5,20		3,151,485			2,823,865

Fee and commission income				1,396,300			1,334,702
Fee and commission expense				(406,207	)		(420,696	)

Net fee and commission income		5,21		990,093			914,006

Insurance income				2,727,558			2,663,134
Insurance income				2,689,474			2,498,548
Reinsurance income				38,084			164,586
Insurance expense				(2,189,179	)		(2,270,727	)
Insurance service expense				(1,973,227	)		(2,073,226	)
Reinsurance expense				(215,952	)		(197,501	)

Net insurance income		5,29		538,379			392,407

Net gains (losses) on financial instruments at fair value through profit or loss		5,22		249,133			773,407

Other insurance finance income (expenses)		29		(112,426	)		(269,060	)

Net other operating expenses		5,23		(404,710	)		(260,124	)

General and administrative expenses		5,18,24		(1,628,236	)		(1,566,286	)

Operating income before provision for credit losses		4		2,783,718			2,808,215

Provision for credit losses		5,7,9,10,17		(428,270	)		(668,188	)

Net operating income		5		2,355,448			2,140,027

Share of profit (loss) of associates and joint ventures		5		(1,419	)		(2,496	)
Net other non-operating income (expenses)		5		(946,545	)		(93,665	)

Net non-operating income (expenses)				(947,964	)		(96,161	)

Profit before income tax expense		5		1,407,484			2,043,866
Income tax expense		5,25		(344,270	)		(533,575	)

Profit for the period		5		1,063,214			1,510,291

(Continued)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Comprehensive Income

Three-month Periods Ended March 31, 2024 and 2023


(in millions of Korean won, except per share amounts)	Notes		2024 (Unaudited)			2023 (Unaudited)
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities				8,995			5,828
Share of other comprehensive income (loss) of associates and joint ventures				—			(2	)
Gains (losses) on equity securities at fair value through other comprehensive income				(12,566	)		(110	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk				(8,843	)		(49,975	)

				(12,414	)		(44,259	)

Items that may be reclassified subsequently to profit or loss:
Currency translation differences				162,945			115,819
Gains (losses) on debt securities at fair value through other comprehensive income				(657,227	)		1,525,457
Share of other comprehensive income (loss) of associates and joint ventures				(142	)		(4,158	)
Gains on cash flow hedging instruments		8		(36,797	)		(35,465	)
Losses on hedging instruments of net investments in foreign operations		8		(51,203	)		(30,133	)
Insurance finance income (expense)		29		(164,964	)		(1,042,466	)

				(747,388	)		529,054

Other comprehensive income (loss) for the period, net of tax				(759,802	)		484,795

Total comprehensive income (loss) for the period				303,412			1,995,086

Profit attributable to:		5
Shareholders of the Parent Company				1,049,133			1,508,708
Non-controlling interests				14,081			1,583

				1,063,214			1,510,291

Total comprehensive income (loss) for the period attributable to:
Shareholders of the Parent Company				281,279			1,982,382
Non-controlling interests				22,133			12,704

				303,412			1,995,086

Earnings per share (in Korean won)		28
Basic earnings per share				2,627			3,782
Diluted earnings per share				2,584			3,697

The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Changes in Equity

Three-month Periods Ended March 31, 2024 and 2023


		Equity attributable to shareholders of the Parent Company
(in millions of Korean won)	Notes	Share capital		Hybrid securities		Capital surplus			Accumulated other comprehensive income			Retained earnings			Treasury shares			Non-controlling interests			Total equity
Balance as of January 1, 2023 (Before the restatement)			2,090,558		4,434,251		16,940,731			1,312,521			28,922,273			(836,188	)		1,280,102			54,144,248
Changes in accounting policies			—		—		—			(62,599	)		26,152			—			—			(36,447	)

Balance as of January 1, 2023 (After the restatement)			2,090,558		4,434,251		16,940,731			1,249,922			28,948,425			(836,188	)		1,280,102			54,107,801

Comprehensive income for the period
Profit (loss) for the period			—		—		—			—			1,508,708			—			1,583			1,510,291
Remeasurements of net defined benefit liabilities			—		—		—			5,032			—			—			796			5,828
Currency translation differences			—		—		—			105,479			—			—			10,340			115,819
Gains (losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings			—		—		—			1,525,920			(558	)		—			(15	)		1,525,347
Share of other comprehensive loss of associates and joint ventures			—		—		—			(4,160	)		—			—			—			(4,160	)
Gains (losses) on cash flow hedging instruments			—		—		—			(35,465	)		—			—			—			(35,465	)
Losses on hedging instruments of net investments in foreign operations			—		—		—			(30,133	)		—			—			—			(30,133	)
Insurance finance income			—		—		—			(1,042,466	)		—			—			—			(1,042,466	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk			—		—		—			(49,975	)		—			—			—			(49,975	)

Total comprehensive income (loss) for the period			—		—		—			474,232			1,508,150			—			12,704			1,995,086

Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company			—		—		—			—			(564,970	)		—			—			(564,970	)
Issuance of hybrid securities			—		598,552		—			—			—			—			409,085			1,007,637
Dividends on hybrid securities			—		—		—			—			(40,703	)		—			(17,467	)		(58,170	)
Acquisition of treasury shares			—		—		—			—			—			(271,745	)		—			(271,745	)
Others			—		—		(42	)		—			—			—			(2,224	)		(2,266	)

Total transactions with shareholders			—		598,552		(42	)		—			(605,673	)		(271,745	)		389,394			110,486

Balance as of March 31, 2023 (Unaudited)			2,090,558		5,032,803		16,940,689			1,724,154			29,850,902			(1,107,933	)		1,682,200			56,213,373

Balance as of January 1, 2024			2,090,558		5,032,803		16,647,916			2,295,165			32,029,199			(1,165,837	)		1,943,506			58,873,310

Comprehensive income for the period
Profit for the period			—		—		—			—			1,049,133			—			14,081			1,063,214
Remeasurements of net defined benefit liabilities			—		—		—			8,751			—			—			244			8,995
Currency translation differences			—		—		—			155,039			—			—			7,906			162,945
Losses on financial instruments at fair value through other comprehensive income and transfer to retained earnings			—		—		—			(665,583	)		(4,111	)		—			(99	)		(669,793	)
Share of other comprehensive income of associates and joint ventures			—		—		—			(142	)		—			—			—			(142	)
Losses on cash flow hedging instruments			—		—		—			(36,797	)		—			—			—			(36,797	)
Losses on hedging instruments of net investments in foreign operations			—		—		—			(51,203	)		—			—			—			(51,203	)
Insurance finance expenses			—		—		—			(164,964	)		—			—			—			(164,964	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk			—		—		—			(8,843	)		—			—			—			(8,843	)

Total comprehensive income (loss) for the period			—		—		—			(763,742	)		1,045,022			—			22,132			303,412

Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company			—		—		—			—			(587,006	)		—			—			(587,006	)
Issuance of hybrid securities			—		399,060		—			—			—			—			129,973			529,033
Dividends on hybrid securities			—		—		—			—			(48,070	)		—			(22,477	)		(70,547	)
Acquisition of treasury shares			—		—		—			—			—			(65,537	)		—			(65,537	)
Disposal of treasury shares			—		—		—			—			—			234,600			—			234,600
Gains on disposal of treasury shares			—		—		3,975			—			—			—			—			3,975
Others			—		—		(12,018	)		—			—			—			(1,891	)		(13,909	)

Total transactions with shareholders			—		399,060		(8,043	)		—			(635,076	)		169,063			105,605			30,609

Balance as of March 31, 2024 (Unaudited)			2,090,558		5,431,863		16,639,873			1,531,423			32,439,145			(996,774	)		2,071,243			59,207,331

The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes. Consolidated Interim Statements of Cash Flows

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KB Financial Group Inc. and Subsidiaries

Three-month Periods Ended March 31, 2024 and 2023


(in millions of Korean won)	Notes	2024 (Unaudited)			2023 (Unaudited)
Cash flows from operating activities
Profit for the period			1,063,214			1,510,291

Adjustment for non-cash items
Net gains on financial assets at fair value through profit or loss			(126,306	)		(615,765	)
Net losses on derivative financial instruments for hedging purposes			65,926			18,329
Provision for credit losses			428,270			668,188
Net gains on financial investments			(13,521	)		(18,464	)
Share of loss of associates and joint ventures			1,419			2,496
Depreciation and amortization expense			216,882			205,533
Other net losses on property and equipment/intangible assets			73,294			63,603
Share-based payments			59,901			11,361
Provision for policy reserves			—			382
Post-employment benefits			46,391			36,787
Net interest income			(19,621	)		(6,321	)
Gains (losses) on foreign currency translation			462,154			(26,314	)
Insurance finance income			(2,841,375	)		(2,651,431	)
Reinsurance finance expense			440,770			270,218
Other expenses			226,100			194,570

			(979,716	)		(1,846,828	)

Changes in operating assets and liabilities
Financial asset at fair value through profit or loss			208,850			(834,106	)
Derivative financial instruments			(14,054	)		(23,761	)
Loans measured at fair value through other comprehensive income			(98,728	)		(116,388	)
Loans measured at amortized cost			(3,016,264	)		652,151
Current income tax assets			(30,583	)		(14,496	)
Deferred income tax assets			(56,432	)		(11,503	)
Other assets			(8,319,607	)		(6,854,888	)
Financial liabilities at fair value through profit or loss			290,139			(1,062,396	)
Deposits			10,349,069			(6,603,254	)
Current income tax liabilities			1,060			(866,500	)
Deferred income tax liabilities			101,545			1,428,984
Other liabilities			7,133,780			10,039,564
Insurance contract assets			(38,778	)		(69,242	)
Reinsurance contract assets			(336,303	)		(283,615	)
Insurance contract liabilities			3,001,188			3,013,729
Reinsurance contract liabilities			8,218			20,595
Investment contract liabilities			(144,464	)		(225,062	)

			9,038,636			(1,810,188	)

Net cash inflow (outflow) from operating activities			9,122,134			(2,146,725	)

(Continued)

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KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Cash Flows

Three-month Periods Ended March 31, 2024 and 2023


(in millions of Korean won)	Notes		2024 (Unaudited)			2023 (Unaudited)
Cash flows from investing activities
Net cash flows from derivative financial instruments for hedging purposes				(870	)		(2,269	)
Disposal of financial asset at fair value through profit or loss				4,267,546			3,614,766
Acquisition of financial asset at fair value through profit or loss				(4,503,400	)		(1,869,263	)
Disposal of financial investments				11,127,360			12,662,216
Acquisition of financial investments				(14,070,438	)		(9,658,046	)
Disposal of investments in associates and joint ventures				45,989			28,692
Acquisition of investments in associates and joint ventures				(25,069	)		(10,961	)
Disposal of property and equipment				960			1,199
Acquisition of property and equipment				(33,589	)		(34,071	)
Acquisition of investment property				—			(123,549	)
Disposal of intangible assets				3,070			185
Acquisition of intangible assets				(82,508	)		(178,208	)
Net cash flows from changes in ownership of subsidiaries				(40,273	)		(287,482	)
Others				(89,912	)		58,805

Net cash inflow (outflow) from investing activities				(3,401,134	)		4,202,014

Cash flows from financing activities
Net cash flows from derivative financial instruments for hedging purposes				(51,604	)		18,952
Net decrease in borrowings				(7,702,793	)		(4,072,109	)
Increase in debentures				9,124,882			13,466,265
Decrease in debentures				(7,423,739	)		(13,977,682	)
Increase in other payables to trust accounts				786,222			—
Decrease in other payables to trust accounts				—			(103,073	)
Issuance of hybrid securities				399,060			598,552
Dividends paid on hybrid securities				(48,070	)		(40,703	)
Acquisition of treasury shares				(65,537	)		(271,745	)
Redemption of principal of lease liabilities				(73,284	)		(224,646	)
Decrease in non-controlling interests				107,496			391,618
Others				(65,601	)		(299,133	)

Net cash outflow from financing activities				(5,012,968	)		(4,513,704	)

Effect of exchange rate changes on cash and cash equivalents				165,735			22,044

Net increase (decrease) in cash and cash equivalents				873,767			(2,436,371	)
Cash and cash equivalents at the beginning of the period		30		25,826,588			26,534,798

Cash and cash equivalents at the end of the period		30		26,700,355			24,098,427

The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

1. The Parent Company

KB Financial Group Inc. (the “Parent Company”) was incorporated on September 29, 2008, under the Financial Holding Companies Act of Korea. KB Financial Group Inc. and its subsidiaries (the “Group”) derive substantially all of their revenue and income from providing a broad range of banking and related financial services to consumers and corporations. The Parent Company’s main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The Parent Company’s headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd. and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Group established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Group acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Group included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Group included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd.

The Parent Company’s share capital as of March 31, 2024, is 2,090,558 million. The Parent Company has been listed on the Korea Exchange (“KRX”) since October 10, 2008, and on the New York Stock Exchange (“NYSE”) for its American Depositary Shares (“ADS”) since September 29, 2008. Number of shares authorized in its Articles of Incorporation is 1,000 million.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

2. Basis of Preparation

2.1 Application of Korean IFRS

The Group maintains its accounting records in Korean won and prepares statutory consolidated financial statements in the Korean language in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying consolidated financial statements have been translated into English from the Korean language consolidated financial statements.

The consolidated financial statements of the Group have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”) that have been adopted by the Republic of Korea.

The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Group’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

The Group’s consolidated interim financial statements for the three-month period ended March 31, 2024, have been prepared in accordance with Korean IFRS No.1034 Interim Financial Reporting and contain less information than is required in annual consolidated financial statements. Selected explanatory notes include descriptions of transactions or events that are significant in understanding change in financial position and financial performance of the Group since the end of the previous annual reporting period. These consolidated interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of March 31, 2024.

2.1.1 The Group has applied the following new and amended standards for the first time for its annual reporting period commencing January 1, 2024.

- Amendment of Korean IFRS No.1001 “Presentation of Financial Statements” - Classification of Liabilities into Current and Non-Current and Non-current Liabilities with Covenants

Liabilities are classified as current or non-current based on their substantive rights existing at the end of the reporting period, without considering the possibility of exercising the right to delay the payment or management’s expectations. Also, if the transfer of equity instruments is included in the payment of liabilities, it is excluded if the option to pay with equity instruments is recognized separately from the liability in a compound financial instrument and meets the definition of equity instruments. These amendments do not have a significant impact on the financial statements.

- Amendment of Korean IFRS No.1007 “Statement of Cash Flows” and No.1107 “Financial Instruments: Disclosures” – Disclosure of Supplier Finance Arrangements

The amendments require disclosure of the effects of supplier finance arrangements on the Group’s liabilities, cash flows and exposure to liquidity risk. These amendments do not have a significant impact on the financial statements.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

2.1.1 The Group has applied the following new and amended standards for the first time for its annual reporting period commencing January 1, 2024. (cont’d)

- Amendment of Korean IFRS No.1116 “Leases” - Lease Liability in a Sale and Leaseback

The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. These amendments do not have a significant impact on the financial statements.

- Amendment of Korean IFRS No.1001 “Presentation of Financial Statements” – Disclosure of Virtual Asset

The amendments require additional disclosure for virtual assets held by the Group, virtual assets entrusted by customers to the Group, and the issuance and transfer of virtual assets. These amendments do not have a significant impact on the financial statements.

2.1.2 The following are the accounting standards that have been established or announced but have not yet been implemented, which the Group has not applied

- Amendment of Korean IFRS No.1021 “The Effects of Changes in Foreign Exchange Rates” and Korean IFRS No.1101 “First-time Adoption of International Financial Reporting Standards” - Lack of exchangeability

The amendments require the Group to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Group is exposed. This amendment will be applied to the financial statements for the accounting year beginning on or after January 1, 2025. These amendments do not have a significant impact on the financial statements.

2.1.3 Restatement of financial statements for the three-month period ended March 31, 2023 for the application of “Variable Fee Approach”

The Group has initially applied on December 31, 2023, guidelines for calculating policy reserves and recognizing revenue for insurance companies announced by Financial Supervisory Service (FSS) in South Korea. Under these guidelines, the Group applied the “Variable Fee Approach” to the financial statements for the year and as of December 31, 2023. The effects of this change have been retrospectively applied to the comparative disclosure for past periods as a “change in accounting policy.” The consolidated statements of comprehensive income, changes in equity, and cash flows for the three-month period ended March 31, 2023 for the comparative disclosure have been restated to reflect the impact of this retrospective application. The effect of the change in accounting policy to the consolidated statement of financial position as of March 31, 2023 and the consolidated statement of comprehensive income for the three-month period ended March 31, 2023 is as follows.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

2.1.3.1 the consolidated statement of comprehensive income for the three-month period ended March 31, 2023


	Before the effects of change in accounting policy			After the effects of change in accounting policy			Net increase (decrease)
Interest income		2,785,593			2,823,865			38,272
Insurance finance interest expense		(441,110	)		(402,838	)		38,272
Net insurance income		380,647			392,407			11,760
Insurance income		2,662,112			2,663,134			1,022
Insurance expense		(2,281,465	)		(2,270,727	)		10,738
Other insurance finance income (expenses)		(234,030	)		(269,060	)		(35,030	)
Net operating income		2,125,025			2,140,027			15,002
Net non-operating income (expenses)		(96,161	)		(96,161	)		—
Profit before income tax expense		2,028,864			2,043,866			15,002
Income tax expense		(529,650	)		(533,575	)		(3,925	)
Profit for the period		1,499,214			1,510,291			11,077
Other comprehensive income (loss) for the period, net of tax		486,208			484,795			(1,413	)
Insurance finance income (expense)		(1,041,053	)		(1,042,466	)		(1,413	)
Total comprehensive income (loss) for the period		1,985,422			1,995,086			9,664

2.1.3.2 Due to the effects of change in accounting policy stated above, the Group’s total liabilities and equity has increased and decreased by 36,447 million, and there is no effect on the consolidated statement of cash flows.

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

2.2 Measurement Basis

The consolidated financial statements have been prepared based on the historical cost accounting model unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the financial statements of each entity of the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency“). The consolidated financial statements are presented in Korean won, which is the Parent Company‘s functional and presentation currency.

2.4 Critical Accounting Estimates

The Group applies accounting policies and uses judgements, accounting estimates and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses). Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment at the reporting date are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

Uncertainties in estimates and assumptions with significant risks used in the preparation of these condensed consolidated interim financial statements are the same as 2023 financial statements, except for the method of estimating income tax expense.

3. Material Accounting Policies

The material accounting policies and calculation methods applied in the preparation of these consolidated interim financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2023, except for the impact of changes due to adopting new and amended standards and interpretations described in Note 2.1 and below paragraph.

The Group is subject to Pillar2 income taxes, and has applied a temporary exemption provision regarding the recognition and disclosure of deferred taxes related to the Pillar 2 rules. Income tax expense for the interim period is measured applying the expected average annual income tax rate applicable on expected total annual income.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

The financial risks that the Group is exposed to are credit risk, market risk, liquidity risk, operational risk, and others.

This note regarding financial risk management provides information about the risks that the Group is exposed to and about its objectives, policies, risk assessment and management procedures, and capital management. Additional quantitative information is disclosed throughout the consolidated financial statements.

The Group’s risk management system focuses on efficiently supporting long-term strategy and management decisions of the Group by increasing risk transparency, preventing risk transfer between subsidiaries and preemptive response to rapidly changing financial environments. Credit risk, market risk, operational risk, interest rate risk, insurance risk, liquidity risk, credit concentration risk, strategy risk, and reputation risk are recognized as the Group’s significant risks and measured and managed by quantifying them in the form of internal capital or Value at Risk (“VaR”) using statistical methods.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

The Risk Management Committee, as the ultimate decision-making body, deals with risk-related issues, such as establishing risk management strategies in accordance with the strategic direction determined by the board of directors, determining the affordable level of risk appetite, reviewing the level of risk and the status of risk management activities, approving the application of risk management systems, methodologies, and major improvements, and establishing and approving risk management policies and procedures to timely recognize, measure, monitor, and control risks arising from various transactions by the Group.

4.1.2.2 Risk Management Council

The Risk Management Council is responsible for consulting on matters delegated by the Risk Management Committee and requests for review by the Management Executive Committee, consulting on details of each subsidiary’s risk management policies and procedures, monitoring the Group’s risk management status, and establishing and implementing necessary measures.

4.1.2.3 Risk Management Department

The Risk Management Department performs the Group’s risk management detailed policies, procedures, and business processes, and is responsible for calculating the Group’s risk-weighted assets, monitoring and managing internal capital limits.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty’s default, breach of contract, and deterioration of credit quality. For risk management purposes, the Group manages all factors of credit risk exposure, such as default risk of individual borrowers, country risk, and risk of specific sectors in an integrated way.

4.2.2 Credit risk management

The Group measures the expected loss and internal capital for the assets subject to credit risk management, including on-balance and off-balance assets, and uses them as management indicators. The Group allocates and manages credit risk internal capital limits.

In addition, to prevent excessive concentration of exposures by borrower and industry, the total exposure limit at the Group level is introduced, applied, and managed to control the credit concentration risk.

All of the Kookmin Bank’s loan customers (individuals and corporates) are assigned a credit rating and managed by a comprehensive internal credit evaluation system. For individuals, the credit rating is evaluated by utilizing personal information, income and job information, asset information, and bank transaction information. For corporates, the credit rating is evaluated by analyzing and utilizing financial and non-financial information which measures current and future corporate value and ability to repay the debt. Also, the extent to which corporates have the ability to meet debt obligations is comprehensively considered.

The credit rating, once assigned, serves as the fundamental instrument in Kookmin Bank’s credit risk management, and is applied in a wide range of credit risk management processes, including credit approval, credit limit management, loan pricing, and assessment of allowances for credit losses. For corporates, Kookmin Bank conducts a regular credit evaluation at least once a year, and the review and supervision departments regularly validate the adequacy of credit ratings to manage credit risks.

KB Kookmin Card Co., Ltd.’s credit scoring system is divided into Application Scoring System (“ASS”) and Behavior Scoring System (“BSS”). For applications that meet the eligibility criteria for card issuance, the card will be issued only if the ASS credit rating is above the standard. KB Kookmin Card Co., Ltd.’s internal information, external information from the credit bureau company and others, and personal information on the application are used to calculate the ASS credit rating. The BSS, which is recalculated on a weekly basis, predicts the delinquency probability of cardholders, and utilizes it to monitor cardholders and portfolio risk.

In order to establish a credit risk management system, the Group manages credit risk by forming a separate risk management organization. In particular, independently of the Sales Group, the Credit Management & Analysis Group of Kookmin Bank, a subsidiary, is in charge of loan policy, loan system, credit rating, credit analysis, follow-up management, and corporate restructuring. The Risk Management Group of Kookmin Bank is responsible for establishing policies on credit risk management, measuring and limiting internal capital of credit risk, setting credit limits, credit review, and verification of credit rating models.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.3 Maximum exposure to credit risk

The Group’s maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023

Financial assets
Due from financial institutions measured at amortized cost *		27,967,981		27,579,279
Financial assets at fair value through profit or loss:
Due from financial institutions measured at fair value through profit or loss		56,158		79,811
Securities measured at fair value through profit or loss		72,403,696		72,658,432
Loans measured at fair value through profit or loss		424,590		183,726
Financial instruments indexed to the price of gold		99,514		93,743
Derivatives		7,260,440		6,157,628
Loans measured at amortized cost *		448,194,423		444,805,287
Financial investments:
Securities measured at fair value through other comprehensive income		82,138,000		78,926,437
Securities measured at amortized cost *		38,963,163		39,701,389
Loans measured at fair value through other comprehensive income		899,713		801,050
Other financial assets *		24,666,655		16,544,513

		703,074,333		687,531,295

Off-balance sheet items
Acceptances and guarantees contracts		14,534,690		13,763,222
Financial guarantee contracts		7,595,798		7,828,205
Commitments		206,046,395		203,906,179

		228,176,883		225,497,606

		931,251,216		913,028,901

*	After netting of allowance

4.2.4 Credit risk of loans

The Group maintains allowances for loan losses associated with credit risk of loans to manage its credit risk.

The Group assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial assets at fair value through other comprehensive income. Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurring in a certain range by reflecting reasonable and supportable information that is reasonably available at the end of the reporting period without undue cost or effort, including information about past events, current conditions, and forecasts of future economic conditions. The Group measures the expected credit losses of loans classified as financial assets at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income in the consolidated financial statements.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.4.1 Credit risk exposure

Credit qualities of loans as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Loans measured at amortized cost *
Corporate
Grade 1		143,169,747		7,232,694		3,938		—		150,406,379
Grade 2		66,423,252		11,128,347		73,252		—		77,624,851
Grade 3		3,634,556		3,607,094		10,130		—		7,251,780
Grade 4		622,265		1,186,209		44,101		—		1,852,575
Grade 5		16,195		584,658		3,071,387		—		3,672,240

		213,866,015		23,739,002		3,202,808		—		240,807,825

Retail
Grade 1		166,590,778		4,185,542		14,816		—		170,791,136
Grade 2		6,998,522		3,696,494		34,374		—		10,729,390
Grade 3		5,108,022		1,537,938		30,118		—		6,676,078
Grade 4		229,121		336,086		26,399		—		591,606
Grade 5		39,636		794,257		1,158,978		—		1,992,871

		178,966,079		10,550,317		1,264,685		—		190,781,081

Credit card
Grade 1		10,660,264		253,644		—		—		10,913,908
Grade 2		5,853,010		928,811		—		—		6,781,821
Grade 3		1,638,621		1,346,853		—		—		2,985,474
Grade 4		8,612		345,973		—		—		354,585
Grade 5		2,669		227,610		888,387		—		1,118,666

		18,163,176		3,102,891		888,387		—		22,154,454

		410,995,270		37,392,210		5,355,880		—		453,743,360

Loans measured at fair value through other comprehensive income
Corporate
Grade1		858,969		—		—		—		858,969
Grade2		40,744		—		—		—		40,744
Grade3		—		—		—		—		—
Grade4		—		—		—		—		—
Grade5		—		—		—		—		—

		899,713		—		—		—		899,713

		899,713		—		—		—		899,713

		411,894,983		37,392,210		5,355,880		—		454,643,073

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.4.1 Credit risk exposure (cont’d)


(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Loans measured at amortized cost *
Corporate
Grade 1		142,216,615		6,765,165		2,122		—		148,983,902
Grade 2		65,606,587		10,632,633		40,942		—		76,280,162
Grade 3		3,547,489		3,964,877		8,231		—		7,520,597
Grade 4		654,654		1,285,650		31,645		—		1,971,949
Grade 5		16,188		581,524		2,871,510		—		3,469,222

		212,041,533		23,229,849		2,954,450		—		238,225,832

Retail
Grade 1		165,579,777		4,147,682		11,945		—		169,739,404
Grade 2		7,133,302		3,664,451		30,019		—		10,827,772
Grade 3		4,941,476		1,614,245		26,804		—		6,582,525
Grade 4		258,300		375,964		24,908		—		659,172
Grade 5		42,561		776,597		1,064,258		—		1,883,416

		177,955,416		10,578,939		1,157,934		—		189,692,289

Credit card
Grade 1		10,776,164		253,905		—		—		11,030,069
Grade 2		5,854,931		936,657		—		—		6,791,588
Grade 3		1,645,099		1,416,715		—		—		3,061,814
Grade 4		7,827		431,083		—		—		438,910
Grade 5		2,432		229,439		795,719		—		1,027,590

		18,286,453		3,267,799		795,719		—		22,349,971

		408,283,402		37,076,587		4,908,103		—		450,268,092

Loans measured at fair value through other comprehensive income
Corporate
Grade1		762,041		—		—		—		762,041
Grade2		39,009		—		—		—		39,009
Grade3		—		—		—		—		—
Grade4		—		—		—		—		—
Grade5		—		—		—		—		—

		801,050		—		—		—		801,050

		801,050		—		—		—		801,050

		409,084,452		37,076,587		4,908,103		—		451,069,142

*	Before netting of allowance

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.4.1 Credit risk exposure (cont’d)

Credit qualities of loans graded according to internal credit ratings as of March 31, 2024 and December 31, 2023, are as follows:


	Range of probability of default (%)	Retail	Corporate
Grade 1	0.0 ~ 1.0	1 ~ 5 grade	AAA ~ BBB+
Grade 2	1.0 ~ 5.0	6 ~ 8 grade	BBB ~ BB
Grade 3	5.0 ~ 15.0	9 ~ 10 grade	BB- ~ B
Grade 4	15.0 ~ 30.0	11 grade	B- ~ CCC
Grade 5	30.0 ~	12 grade or under	CC or under

4.2.4.2 Quantification of the extent to which collateral and other credit enhancements mitigate credit risk of loans as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Total
	12-month expected credit losses		Non-impaired		Impaired		Total
Guarantees		116,198,625		7,831,250		464,257		124,494,132
Deposits and savings		2,397,734		131,574		13,564		2,542,872
Property and equipment		15,758,623		1,030,099		270,960		17,059,682
Real estate		201,414,317		19,644,398		2,215,639		223,274,354

		335,769,299		28,637,321		2,964,420		367,371,040


(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Total
	12-month expected credit losses		Non-impaired		Impaired		Total
Guarantees		114,669,115		7,639,754		425,696		122,734,565
Deposits and savings		2,461,434		129,853		15,176		2,606,463
Property and equipment		15,121,688		1,109,156		442,084		16,672,928
Real estate		196,412,901		19,374,276		2,893,235		218,680,412

		328,665,138		28,253,039		3,776,191		360,694,368

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.5 Credit risk of securities

Credit qualities of securities exposed to credit risk other than equity securities among financial investments as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Securities measured at amortized cost *
Grade 1		35,122,500		—		—		—		35,122,500
Grade 2		3,852,160		—		—		—		3,852,160
Grade 3		7,608		—		—		—		7,608
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		38,982,268		—		—		—		38,982,268

Securities measured at fair value through other comprehensive income
Grade 1		75,150,463		—		—		—		75,150,463
Grade 2		6,964,230		—		—		—		6,964,230
Grade 3		23,307		—		—		—		23,307
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		82,138,000		—		—		—		82,138,000

		121,120,268		—		—		—		121,120,268


(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Securities measured at amortized cost *
Grade 1		35,812,502		—		—		—		35,812,502
Grade 2		3,907,307		—		—		—		3,907,307
Grade 3		852		—		—		—		852
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		39,720,661		—		—		—		39,720,661

Securities measured at fair value through other comprehensive income
Grade 1		72,574,183		—		—		—		72,574,183
Grade 2		6,326,108		—		—		—		6,326,108
Grade 3		26,146		—		—		—		26,146
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		78,926,437		—		—		—		78,926,437

		118,647,098		—		—		—		118,647,098

*	Before netting of allowance

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.5 Credit risk of securities (cont’d)

Credit qualities of securities other than equity securities, according to the credit ratings by external credit rating agencies as of March 31, 2024 and December 31, 2023, are as follows:

Credit

quality

Domestic

Foreign

KIS

NICE P&I

KAP

FnPricing Inc.

S&P

Fitch-IBCA

Moody’s

Grade 1

AA0 to AAA

A- to AAA

A3 to Aaa

Grade 2

A- to AA-

BBB- to BBB+

Baa3 to Baa1

Grade 3

BBB0 to BBB+

BB to BB+

Ba2 to Ba1

Grade 4

BB0 to BBB-

B+ to BB-

B1 to Ba3

Grade 5

BB- or under

B or under

B2 or under

Credit qualities of debt securities denominated in Korean won are based on the lowest credit rating by the domestic credit rating agencies above, and those denominated in foreign currencies are based on the lowest credit rating by the foreign credit rating agencies above.

4.2.6 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Due from financial institutions measured at amortized cost *
Grade 1		26,736,982		—		—		—		26,736,982
Grade 2		471,123		—		—		—		471,123
Grade 3		52,722		—		—		—		52,722
Grade 4		1		—		—		—		1
Grade 5		708,148		—		—		—		708,148

		27,968,976		—		—		—		27,968,976


(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Non-impaired		Impaired		Not applying expected credit losses		Total
Due from financial institutions measured at amortized cost *
Grade 1		26,279,729		—		—		—		26,279,729
Grade 2		503,794		—		—		—		503,794
Grade 3		108,290		—		—		—		108,290
Grade 4		—		—		—		—		—
Grade 5		688,487		—		—		—		688,487

		27,580,300		—		—		—		27,580,300

*	Before netting of allowance

The classification criteria of the credit qualities of due from financial institutions as of March 31, 2024 and December 31, 2023, are the same as the criteria for securities other than equity securities.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.7 Credit risk concentration analysis

4.2.7.1 Classifications of corporate loans by industry as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Loans		%		Allowances			Carrying amount
Financial institutions		24,672,053		10.19		(169,055	)		24,502,998
Manufacturing		53,429,634		22.07		(605,983	)		52,823,651
Service		108,565,271		44.84		(1,213,332	)		107,351,939
Wholesale and retail		30,090,096		12.43		(499,166	)		29,590,930
Construction		7,700,884		3.18		(289,504	)		7,411,380
Public sector		2,291,992		0.94		(79,322	)		2,212,670
Others		15,382,198		6.35		(293,383	)		15,088,815

		242,132,128		100.00		(3,149,745	)		238,982,383


(In millions of Korean won)	December 31, 2023
	Loans		%		Allowances			Carrying amount
Financial institutions		25,194,810		10.53		(147,964	)		25,046,846
Manufacturing		51,666,785		21.60		(619,644	)		51,047,141
Service		106,907,060		44.69		(1,247,642	)		105,659,418
Wholesale and retail		29,904,053		12.50		(502,211	)		29,401,842
Construction		7,047,906		2.95		(280,598	)		6,767,308
Public sector		2,259,364		0.94		(83,029	)		2,176,335
Others		16,230,630		6.79		(276,811	)		15,953,819

		239,210,608		100.00		(3,157,899	)		236,052,709

4.2.7.2 Classifications of retail loans and credit card receivables as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Loans		%		Allowances			Carrying amount
Housing loan		97,153,595		45.63		(247,814	)		96,905,781
General loan		93,627,486		43.97		(1,178,070	)		92,449,416
Credit card		22,154,454		10.40		(973,308	)		21,181,146

		212,935,535		100.00		(2,399,192	)		210,536,343


(In millions of Korean won)	December 31, 2023
	Loans		%		Allowances			Carrying amount
Housing loan		97,142,065		45.81		(227,758	)		96,914,307
General loan		92,550,224		43.65		(1,141,322	)		91,408,902
Credit card		22,349,971		10.54		(935,826	)		21,414,145

		212,042,260		100.00		(2,304,906	)		209,737,354

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.7.3 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance		27,968,976		100.00		(995	)		27,967,981

		27,968,976		100.00		(995	)		27,967,981

Due from financial institutions measured at fair value through profit or loss
Finance and insurance		56,158		100.00		—			56,158

		56,158		100.00		—			56,158

Securities measured at fair value through profit or loss
Government and government funded institutions		21,800,343		30.11		—			21,800,343
Finance and insurance		37,444,753		51.72		—			37,444,753
Others		13,158,600		18.17		—			13,158,600

		72,403,696		100.00		—			72,403,696

Derivative financial assets
Government and government funded institutions		40,134		0.55		—			40,134
Finance and insurance		6,743,741		92.88		—			6,743,741
Others		476,565		6.57		—			476,565

		7,260,440		100.00		—			7,260,440

Securities measured at fair value through other comprehensive income
Government and government funded institutions		46,310,777		56.38		—			46,310,777
Finance and insurance		23,257,723		28.32		—			23,257,723
Others		12,569,500		15.30		—			12,569,500

		82,138,000		100.00		—			82,138,000

Securities measured at amortized cost
Government and government funded institutions		15,887,369		40.76		(709	)		15,886,660
Finance and insurance		22,766,041		58.39		(17,805	)		22,748,236
Others		328,858		0.85		(591	)		328,267

		38,982,268		100.00		(19,105	)		38,963,163

		228,809,538				(20,100	)		228,789,438

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023


(In millions of Korean won)	December 31, 2023
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance		27,580,300		100.00		(1,021	)		27,579,279

		27,580,300		100.00		(1,021	)		27,579,279

Due from financial institutions measured at fair value through profit or loss
Finance and insurance		79,811		100.00		—			79,811

		79,811		100.00		—			79,811

Securities measured at fair value through profit or loss
Government and government funded institutions		21,022,824		28.94		—			21,022,824
Finance and insurance		37,426,249		51.51		—			37,426,249
Others		14,209,359		19.55		—			14,209,359

		72,658,432		100.00		—			72,658,432

Derivative financial assets
Government and government funded institutions		52,508		0.85		—			52,508
Finance and insurance		5,785,110		93.95		—			5,785,110
Others		320,010		5.20		—			320,010

		6,157,628		100.00		—			6,157,628

Securities measured at fair value through other comprehensive income
Government and government funded institutions		44,790,264		56.75		—			44,790,264
Finance and insurance		21,546,428		27.30		—			21,546,428
Others		12,589,745		15.95		—			12,589,745

		78,926,437		100.00		—			78,926,437

Securities measured at amortized cost
Government and government funded institutions		16,391,846		41.27		(655	)		16,391,191
Finance and insurance		22,960,878		57.80		(17,965	)		22,942,913
Others		367,937		0.93		(652	)		367,285

		39,720,661		100.00		(19,272	)		39,701,389

		225,123,269				(20,293	)		225,102,976

Due from financial institutions, financial instruments at fair value through profit or loss linked to gold price, and derivative financial instruments are mostly related to the finance and insurance industry with high credit ratings.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Group becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Group manages its liquidity risk through analysis of the contractual maturity of interest-bearing assets and liabilities, assets and liabilities related to the other inflows and outflows of funds, and off-balance sheet items related to the inflows and outflows of funds such as currency derivative instruments and others.

4.3.2 Liquidity risk management and indicator

The liquidity risk is managed by risk management policies and liquidity risk management guidelines set forth in these policies that apply to all risk management policies and procedures that may arise throughout the overall business of the Group.

The Group calculates and manages liquidity ratio and others for all transactions and off-balance transactions related to liquidity, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

The cash flows disclosed in the maturity analysis are undiscounted contractual amounts including principal and future interest payments; as such, amounts in the table below do not match with those in the consolidated statements of financial position which are based on discounted cash flows. The future interest payments for floating-rate liabilities are calculated on the assumption that the current interest rate is the same until maturity.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of March 31, 2024 and December 31 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1		3,810,390		—		—		—		—		—		3,810,390
Financial liabilities designated at fair value through profit or loss 1		7,456,717		—		—		—		—		—		7,456,717
Derivatives held for trading 1		6,977,285		—		—		—		—		—		6,977,285
Derivatives held for hedging 2		9,878		3,720		32,027		74,089		105,900		10,577		236,191
Deposits 3		177,878,926		35,669,707		51,179,303		139,457,653		21,566,677		2,141,791		427,894,057
Borrowings		10,430,550		12,789,120		8,717,538		20,331,948		11,988,335		1,588,777		65,846,268
Debentures		9,189		2,511,572		7,129,482		22,530,201		37,714,336		5,189,504		75,084,284
Lease liabilities		252		30,469		55,412		216,896		620,720		175,784		1,099,533
Other financial liabilities		734,249		33,943,190		376,584		362,157		1,109,236		262,508		36,787,924

		207,307,436		84,947,778		67,490,346		182,972,944		73,105,204		9,368,941		625,192,649

Off-balance sheet items
Commitments 4		206,046,395		—		—		—		—		—		206,046,395
Acceptances and guarantees contracts		14,534,690		—		—		—		—		—		14,534,690
Financial guarantee contracts 5		7,595,798		—		—		—		—		—		7,595,798

		228,176,883		—		—		—		—		—		228,176,883

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of March 31, 2024 and December 31 2023, are as follows: (cont’d)


(In millions of Korean won)	December 31, 2023
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years			Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1		2,953,472		—		—		—		—		—			2,953,472
Financial liabilities designated at fair value through profit or loss 1		7,966,963		—		—		—		—		—			7,966,963
Derivatives held for trading 1		5,966,512		—		—		—		—		—			5,966,512
Derivatives held for hedging 2		7,856		11,887		16,968		48,476		50,888		(4,255	)		131,820
Deposits 3		175,103,423		35,688,530		55,092,937		131,347,718		17,325,661		1,764,854			416,323,123
Borrowings		10,729,326		18,654,410		6,594,666		21,356,372		12,432,385		1,195,946			70,963,105
Debentures		10,077		3,843,626		5,556,957		21,137,247		37,653,013		5,727,779			73,928,699
Lease liabilities		243		27,478		43,005		172,528		366,002		34,804			644,060
Other financial liabilities		875,267		25,693,343		166,001		331,289		1,128,101		264,861			28,458,862

		203,613,139		83,919,274		67,470,534		174,393,630		68,956,050		8,983,989			607,336,616

Off-balance sheet items
Commitments 4		203,906,179		—		—		—		—		—			203,906,179
Acceptances and guarantees contracts		13,763,222		—		—		—		—		—			13,763,222
Financial guarantee contracts 5		7,828,205		—		—		—		—		—			7,828,205

		225,497,606		—		—		—		—		—			225,497,606

Financial liabilities measured or designated at fair value through profit or loss and derivatives held for trading are not managed by contractual maturity because they are expected to be traded or redeemed before maturity. Therefore, the carrying amounts of those financial instruments are included in the ‘On demand’ category.

2	Cash flows of derivatives held for hedging are shown at net amount of cash inflows and outflows by remaining contractual maturity.

3	Deposits that are contractually repayable on demand or on short notice are included in the ‘On demand’ category.

4	Commitments are included in the ‘On demand’ category because payments can be requested at any time.

5	Cash flows under financial guarantee contracts are classified based on the earliest period that the contract can be executed.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc., which arise from securities, derivatives, and others. The most significant risks associated with trading positions are interest rate risk, currency risk, and additional risks include stock price risk. The non-trading position is also exposed to interest rate risk. The Group manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position.

4.4.2 Risk management

The Group sets and monitors internal capital limits for market risk and interest rate risk to manage the risks of trading and non-trading positions. In order to manage market risk efficiently, the Group maintains risk management systems and procedures such as trading policies and procedures, market risk management guidelines for trading positions, and interest rate risk management guidelines for non-trading positions. The entire process is carried out through consultation with the Risk Management Council and approval by the Risk Management Committee of the Group. However, insurance companies that are engaged in the insurance business are not subject to these guidelines and are monitored by setting internal capital limits for market risk and interest rate risk based on K-ICS.

In the case of Kookmin Bank, a major subsidiary, the Risk Management Council establishes and enforces overall market risk management policies for market risk management and decides to establish position limits, loss limits, VaR limits, and approves non-standard new products. In addition, the Market Risk Management Subcommittee, chaired by Chief Risk Officer (“CRO”), is a practical decision-making body for market risk management and determines position limits, loss limits, VaR limits, sensitivity limits, and scenario loss limits for each department of the business group.

Kookmin Bank’s Asset-Liability Management Committee (“ALCO”) determines interest rate and commission operating standards and Asset Liability Management (“ALM”) operation policies and enacts and revises relevant guidelines. The Risk Management Committee and the Risk Management Council monitor the establishment and enforcement of ALM risk management policies and enact and revise ALM risk management guidelines. Interest rate risk limits are set based on future asset and liability positions and expected interest rate volatility, which reflect annual business plans. The Financial Planning Department and the Risk Management Department regularly measure and monitor interest rate risk and report the status and limit of interest rate risk including changes in Economic Value of Equity (“ΔEVE”), changes in Net Interest Income (“ΔNII”), and duration gap to the ALCO and the Risk Management Council on a monthly basis, and to the Risk Management Committee on a quarterly basis. To ensure the adequacy of interest rate risk and liquidity risk management, the Risk Management Department assigns the limits, monitors and reviews the procedures and tasks of ALM operations conducted by the ALM department, and reports related matters to the management independently.

Kookmin Bank is closely monitoring the outputs of various industry groups and markets that manage the transition to the new interest rate benchmark, including announcements by regulation authority and various consultative bodies related to the transition to alternative interest rate. In response to these announcements, Kookmin Bank has completed most of the transition and replacement plans according to LIBOR transition programs and plans consisting of major business areas such as finance, accounting, tax, legal, IT, and risk. The program is under the control of the CFO and related matters are reported to the board of directors and consultative bodies with senior management as members. Kookmin Bank continues its efforts as a market participant to actively express opinions so that the index interest rate benchmark reform can be carried out in the direction of minimizing the financial and non-financial impacts and operational risks and minimizing confusion among stakeholders.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.5 Operational Risk

4.5.1 Concept

Operational risk of the Group refers to the risk of loss that may occur due to improper or incorrect internal procedures, personnel, systems or external events. Operational risk management plays a role in enhancing the stability and soundness of financial institutions by managing the appropriate level of capital and supplementing the internal control system.

4.5.2 Risk management

The purpose of operational risk management is not only to comply with supervisory and regulatory requirements, but also to spread risk management culture, strengthen internal control, improve processes, and provide timely feedback to management and all employees. The Parent Company manages the Group’s overall operational risk, and each subsidiary establishes and implements operational risk management policies according to its own risk level and implements and operates related systems. The Group Risk Management Committee establishes and allocates risk capital of operational risk for each subsidiary, and subsidiaries manage operational risks at an appropriate level within the allocated risk capital.

5. Segment Information

5.1 Overall Segment Information and Business Segments

The Group classifies reporting segments based on the nature of the products and services provided, the type of customer, and the Group’s management organization.


Banking business	Corporate banking	Loans, deposit products, and other related financial services to large, small and medium-sized enterprises and SOHOs

	Retail banking	Loans, deposit products, and other related financial services to individuals and households

	Other banking services	Trading activities in securities and derivatives, funding, and other supporting activities

Securities business		Investment banking, brokerage services, and other supporting activities

Non-life insurance business		Non-life insurance and other supporting activities

Credit card business		Credit sale, cash advance, card loan, and other supporting activities

Life insurance business		Life insurance and other supporting activities

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1 Overall Segment Information and Business Segments (cont’d)

Financial information by business segment as of March 31, 2024 and December 31, 2023 and for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Banking business												Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
	Corporate banking			Retail banking			Other banking services			Sub-total			Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
Net operating revenues (expenses) from external customers		1,300,924			1,055,321			80,319			2,436,564			542,284			498,748			522,979			141,599			269,780			—			4,411,954
Intersegment net operating revenues (expenses)		116,522			—			132,949			249,471			(37,630	)		(65,755	)		(11,568	)		(10,378	)		81,116			(205,256	)		—

		1,417,446			1,055,321			213,268			2,686,035			504,654			432,993			511,411			131,221			350,896			(205,256	)		4,411,954

Net interest income (expenses)		1,431,416			826,993			294,502			2,552,911			149,895			(20,521	)		414,216			(64,352	)		173,697			(54,361	)		3,151,485
Interest income		3,034,689			1,962,793			834,250			5,831,732			439,844			217,557			608,654			153,284			391,376			(28,485	)		7,613,962
Interest expense		(1,603,273	)		(1,135,800	)		(539,748	)		(3,278,821	)		(289,949	)		(238,078	)		(194,438	)		(217,636	)		(217,679	)		(25,876	)		(4,462,477	)
Net fee and commission income (expenses)		110,801			66,750			122,816			300,367			196,692			(8,764	)		199,631			1,513			316,564			(15,910	)		990,093
Fee and commission income		154,464			104,496			149,201			408,161			259,509			2,885			458,703			3,872			350,590			(87,420	)		1,396,300
Fee and commission expense		(43,663	)		(37,746	)		(26,385	)		(107,794	)		(62,817	)		(11,649	)		(259,072	)		(2,359	)		(34,026	)		71,510			(406,207	)
Net insurance income		—			—			—			—			—			391,588			2,198			124,992			—			19,601			538,379
Insurance income		—			—			—			—			—			2,496,998			4,646			236,373			—			(10,459	)		2,727,558
Insurance expense		—			—			—			—			—			(2,105,410	)		(2,448	)		(111,381	)		—			30,060			(2,189,179	)
Net gains (losses) on financial instruments at fair value through profit or loss		10,155			—			145,196			155,351			112,495			71,072			958			103,083			(5,978	)		(187,848	)		249,133
Net other insurance finance expense		—			—			—			—			—			(13,506	)		—			(98,920	)		—			—			(112,426	)
Net other operating income (expenses)		(134,926	)		161,578			(349,246	)		(322,594	)		45,572			13,124			(105,592	)		64,905			(133,387	)		33,262			(404,710	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1 Overall Segment Information and Business Segments (cont’d)


(In millions of Korean won)	2024
	Banking business												Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
	Corporate banking			Retail banking			Other banking services			Sub-total			Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
General and administrative expenses		(452,877	)		(487,636	)		(142,945	)		(1,083,458	)		(255,213	)		(30,025	)		(144,298	)		(25,474	)		(117,967	)		28,199			(1,628,236	)
Operating income (expenses) before provision for credit losses		964,569			567,685			70,323			1,602,577			249,441			402,968			367,113			105,747			232,929			(177,057	)		2,783,718
Reversal (provision) of credit losses		(127,496	)		(37,312	)		2,624			(162,184	)		2,021			(7,681	)		(194,448	)		435			(66,116	)		(297	)		(428,270	)
Net operating income (expenses)		837,073			530,373			72,947			1,440,393			251,462			395,287			172,665			106,182			166,813			(177,354	)		2,355,448
Share of profit (loss) of associates and joint ventures		—			—			5,507			5,507			(6,873	)		611			272			(65	)		(1,882	)		1,011			(1,419	)
Net other non-operating income (expenses)		(47,656	)		—			(901,619	)		(949,275	)		(3,402	)		(410	)		14,286			3,057			(2,261	)		(8,540	)		(946,545	)
Segment profit (loss) before income tax expense		789,417			530,373			(823,165	)		496,625			241,187			395,488			187,223			109,174			162,670			(184,883	)		1,407,484
Income tax benefit (expense)		(192,988	)		(132,756	)		206,372			(119,372	)		(43,700	)		(103,123	)		(47,835	)		(32,188	)		(9,632	)		11,580			(344,270	)

Profit (loss) for the period		596,429			397,617			(616,793	)		377,253			197,487			292,365			139,388			76,986			153,038			(173,303	)		1,063,214

Profit (loss) attributable to shareholders of the Parent Company		591,150			397,617			(599,232	)		389,535			197,969			292,157			139,136			76,986			152,293			(198,943	)		1,049,133
Profit (loss) attributable to non-controlling interests		5,279			—			(17,561	)		(12,282	)		(482	)		208			252			—			745			25,640			14,081
Total assets *		226,002,542			166,517,087			151,450,918			543,970,547			62,950,478			37,403,913			29,546,996			32,112,427			66,490,642			(40,234,722	)		732,240,281
Total liabilities *		211,566,140			205,619,346			91,265,234			508,450,720			56,467,484			31,560,271			24,755,690			28,479,679			26,733,011			(3,413,905	)		673,032,950

*	Assets and liabilities of the reporting segments are amounts before intersegment transactions.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1 Overall Segment Information and Business Segments (cont’d)


(In millions of Korean won)	2023
	Banking business												Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
	Corporate banking			Retail banking			Other banking services			Sub-total			Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
Net operating revenues (expenses) from external customers		1,399,752			1,171,870			(36,633	)		2,534,989			497,743			399,571			478,640			167,820			295,738			—			4,374,501
Intersegment net operating revenues (expenses)		50,960			—			103,765			154,725			6,703			(25,065	)		(29,333	)		1,523			98,772			(207,325	)		—

		1,450,712			1,171,870			67,132			2,689,714			504,446			374,506			449,307			169,343			394,510			(207,325	)		4,374,501

Net interest income (expenses)		1,310,460			891,578			145,393			2,347,431			141,553			(63,370	)		401,249			(83,595	)		142,774			(62,177	)		2,823,865
Interest income		2,717,968			1,879,678			673,706			5,271,352			402,547			188,252			569,280			140,521			317,664			(23,033	)		6,866,583
Interest expense		(1,407,508	)		(988,100	)		(528,313	)		(2,923,921	)		(260,994	)		(251,622	)		(168,031	)		(224,116	)		(174,890	)		(39,144	)		(4,042,718	)
Net fee and commission income (expenses)		110,367			72,582			124,489			307,438			161,130			(5,488	)		156,456			(2,404	)		293,347			3,527			914,006
Fee and commission income		149,310			109,231			159,007			417,548			218,886			8,636			434,934			462			329,284			(75,048	)		1,334,702
Fee and commission expense		(38,943	)		(36,649	)		(34,518	)		(110,110	)		(57,756	)		(14,124	)		(278,478	)		(2,866	)		(35,937	)		78,575			(420,696	)
Net insurance income		—			—			—			—			—			276,686			2,498			113,702			—			(479	)		392,407
Insurance income		—			—			—			—			—			2,447,515			5,194			219,813			—			(9,388	)		2,663,134
Insurance expense		—			—			—			—			—			(2,170,829	)		(2,696	)		(106,111	)		—			8,909			(2,270,727	)
Net gains (losses) on financial instruments at fair value through profit or loss		(21,032	)		—			287,576			266,544			124,058			132,324			547			355,684			53,854			(159,604	)		773,407
Net other insurance finance income		—			—			—			—			—			(3,592	)		—			(265,468	)		—			—			(269,060	)
Net other operating income (expenses)		50,917			207,710			(490,326	)		(231,699	)		77,705			37,946			(111,443	)		51,424			(95,465	)		11,408			(260,124	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1 Overall Segment Information and Business Segments (cont’d)


(In millions of Korean won)	2023
	Banking business												Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
	Corporate banking			Retail banking			Other banking services			Sub-total			Securities			Non-life insurance			Credit card			Life insurance			Others			Consolidation adjustments			Total
General and administrative expenses		(436,384	)		(462,932	)		(130,966	)		(1,030,282	)		(233,963	)		(34,641	)		(159,344	)		(26,516	)		(109,610	)		28,070			(1,566,286	)
Operating income before provision for credit losses		1,014,328			708,938			(63,834	)		1,659,432			270,483			339,865			289,963			142,827			284,900			(179,255	)		2,808,215
Reversal (provision) of credit losses		(361,075	)		(30,185	)		(32	)		(391,292	)		(8,170	)		711			(178,121	)		199			(92,484	)		969			(668,188	)
Net operating income (expenses)		653,253			678,753			(63,866	)		1,268,140			262,313			340,576			111,842			143,026			192,416			(178,286	)		2,140,027
Share of profit (loss) of associates and joint ventures		—			—			4,910			4,910			(17,976	)		610			282			—			942			8,736			(2,496	)
Net other non-operating income (expenses)		(3,701	)		—			(34,185	)		(37,886	)		(57,381	)		2,743			(289	)		2,482			681			(4,015	)		(93,665	)
Segment profit (loss) before income tax expense		649,552			678,753			(93,141	)		1,235,164			186,956			343,929			111,835			145,508			194,039			(173,565	)		2,043,866
Income tax benefit (expense)		(165,547	)		(171,687	)		23,994			(313,240	)		(46,304	)		(89,955	)		(28,693	)		(40,757	)		(34,917	)		20,291			(533,575	)

Profit (loss) for the period		484,005			507,066			(69,147	)		921,924			140,652			253,974			83,142			104,751			159,122			(153,274	)		1,510,291

Profit (loss) attributable to shareholders of the Parent Company		482,549			507,066			(58,099	)		931,516			140,596			253,811			81,989			104,751			158,566			(162,521	)		1,508,708
Profit (loss) attributable to non-controlling interests		1,456			—			(11,048	)		(9,592	)		56			163			1,153			—			556			9,247			1,583
Total assets *		221,851,975			165,821,667			142,339,211			530,012,853			61,266,989			37,729,688			29,365,575			31,953,218			63,413,640			(38,003,811	)		715,738,152
Total liabilities *		201,871,592			203,560,029			88,032,505			493,464,126			54,967,833			31,474,133			24,545,751			27,823,185			25,562,612			(972,798	)		656,864,842

*	Assets and liabilities of the reporting segments are amounts before intersegment transactions and as of December 31, 2023.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.2 Services and Geographical Segments

5.2.1 Services information

Net operating revenues from external customers by service for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Banking service		2,436,564		2,534,989
Securities service		542,284		497,743
Non-life insurance service		498,748		399,571
Credit card service		522,979		478,640
Life insurance service		141,599		167,820
Others		269,780		295,738

		4,411,954		4,374,501

5.2.2 Geographical information

Geographical net operating revenues from external for the three-month periods ended March 31, 2024 and 2023, and major non-current assets as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	Net operating revenues from external customers				Major non-current assets
	2024		2023		March 31, 2024		December 31, 2023
Domestic		4,065,183		3,989,699		10,053,525		9,851,765
United States		22,639		23,366		67,525		55,125
New Zealand		3,837		2,653		963		1,051
China		46,904		45,626		22,302		21,138
Cambodia		141,325		145,274		56,571		53,322
United Kingdom		14,886		10,968		4,956		4,616
Indonesia		88,499		80,924		419,463		418,115
Others		28,681		75,991		28,750		32,405
Consolidation adjustments		—		—		580,126		568,804

		4,411,954		4,374,501		11,234,181		11,006,341

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6. Financial Assets and Financial Liabilities

6.1 Classification and Fair Value of Financial Instruments

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Carrying amount		Fair value
Financial assets
Cash and due from financial institutions		30,509,269		30,509,401
Financial assets at fair value through profit or loss:		77,356,807		77,356,807
Due from financial institutions		56,158		56,158
Debt securities		72,403,696		72,403,696
Equity securities		4,372,849		4,372,849
Loans		424,590		424,590
Others		99,514		99,514
Derivatives held for trading		6,874,933		6,874,933
Derivatives held for hedging		385,507		385,507
Loans measured at amortized cost		448,194,423		448,654,837
Securities measured at amortized cost		38,963,163		38,019,696
Financial assets at fair value through other comprehensive income:		86,003,492		86,003,492
Debt securities		82,138,000		82,138,000
Equity securities		2,965,779		2,965,779
Loans		899,713		899,713
Other financial assets		24,666,655		24,666,655

	712,954,249		712,471,328

Financial liabilities
Financial liabilities at fair value through profit or loss		3,810,390		3,810,390
Financial liabilities designated at fair value through profit or loss		7,456,717		7,456,717
Derivatives held for trading		6,977,285		6,977,285
Derivatives held for hedging		259,306		259,306
Deposits		418,070,668		420,447,015
Borrowings		62,993,551		62,896,490
Debentures		70,002,922		70,052,812
Other financial liabilities		46,242,487		46,242,487

	615,813,326		618,142,502

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)	December 31, 2023
	Carrying amount		Fair value
Financial assets
Cash and due from financial institutions		29,836,311		29,833,886
Financial assets at fair value through profit or loss:		77,038,267		77,038,267
Due from financial institutions		79,811		79,811
Debt securities		72,658,432		72,658,432
Equity securities		4,022,555		4,022,555
Loans		183,726		183,726
Others		93,743		93,743
Derivatives held for trading		5,777,682		5,777,682
Derivatives held for hedging		379,946		379,946
Loans measured at amortized cost		444,805,287		445,144,428
Securities measured at amortized cost		39,701,389		38,763,702
Financial assets at fair value through other comprehensive income:		82,498,140		82,498,140
Debt securities		78,926,437		78,926,437
Equity securities		2,770,653		2,770,653
Loans		801,050		801,050
Other financial assets		16,544,513		16,544,513

		696,581,535		695,980,564

Financial liabilities
Financial liabilities at fair value through profit or loss		2,953,472		2,953,472
Financial liabilities designated at fair value through profit or loss		7,966,963		7,966,963
Derivatives held for trading		5,966,512		5,966,512
Derivatives held for hedging		244,127		244,127
Deposits		406,512,434		406,711,081
Borrowings		69,583,561		69,390,346
Debentures		69,176,668		68,975,750
Other financial liabilities		37,416,916		37,416,916

		599,820,653		599,625,167

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Group discloses the fair value of each class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is a quoted price in an active market.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)

Methods of determining fair value of financial instruments are as follows:


Cash and due from financial institutions		Fair value of cash is same as carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable on demand. Fair value of general deposit is measured using Discounted Cash Flow (“DCF”) Model.

Securities		Fair value of securities and others that are traded in an active market is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments among DCF Model, Free Cash Flow to Equity Model, Comparable Company Analysis, Dividend Discount Model, Risk Adjusted Discount Rate Method, and Net Asset Value Method.

Loans		Fair value of loans is determined using DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.

Derivatives and financial instruments at fair value through profit or loss		Fair value of exchange traded derivatives is determined using quoted price in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Group uses internally developed valuation models that are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including Finite Difference Method (“FDM”), MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Closed Form, and Tree Model or valuation results from independent external professional valuation institutions.

Deposits		Carrying amount of demand deposits is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of time deposits is determined using DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.

Borrowings		Carrying amount of overdrafts in foreign currency is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of other borrowings is determined using DCF Model.

Debentures		Fair value is determined using valuation results of external professional valuation institutions, which are calculated using market inputs.

Other financial assets and other financial liabilities		Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions and their maturities are relatively short or not defined.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2 Fair value hierarchy

The Group believes that valuation techniques used for measuring the fair value of financial instruments are reasonable and that the fair value recognized in the consolidated statement of financial position is appropriate. However, the fair value of the financial instruments recognized in the consolidated statement of financial position may be different if other valuation techniques or assumptions are used. Additionally, as there are a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

The Group classifies and discloses fair value of the financial instruments into the three fair value levels as follows:

Level 1:

The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2:

The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3:

The fair values are based on unobservable inputs for the asset or liability.

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement would be categorized within Level 3 of the fair value hierarchy.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position

Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:		22,757,060		36,117,355		18,482,392		77,356,807
Due from financial institutions		—		—		56,158		56,158
Debt securities		20,180,059		35,511,972		16,711,665		72,403,696
Equity securities		2,477,487		382,597		1,512,765		4,372,849
Loans		—		222,786		201,804		424,590
Others		99,514		—		—		99,514
Derivatives held for trading		28,169		6,787,028		59,736		6,874,933
Derivatives held for hedging		—		385,507		—		385,507
Financial assets at fair value through other comprehensive income:		39,944,298		44,559,709		1,499,485		86,003,492
Debt securities		39,245,441		42,892,559		—		82,138,000
Equity securities		698,857		767,437		1,499,485		2,965,779
Loans		—		899,713		—		899,713

		62,729,527		87,849,599		20,041,613		170,620,739

Financial liabilities
Financial liabilities at fair value through profit or loss		3,810,390		—		—		3,810,390
Financial liabilities designated at fair value through profit or loss		185,091		943,716		6,327,910		7,456,717
Derivatives held for trading		214,448		6,062,294		700,543		6,977,285
Derivatives held for hedging		—		259,306		—		259,306

		4,209,929		7,265,316		7,028,453		18,503,698

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)


(In millions of Korean won)	December 31, 2023
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:		20,695,760		38,118,478		18,224,029		77,038,267
Due from financial institutions		—		26,020		53,791		79,811
Debt securities		18,541,335		37,663,855		16,453,242		72,658,432
Equity securities		2,060,682		428,367		1,533,506		4,022,555
Loans		—		236		183,490		183,726
Others		93,743		—		—		93,743
Derivatives held for trading		58,948		5,624,691		94,043		5,777,682
Derivatives held for hedging		—		379,946		—		379,946
Financial assets at fair value through other comprehensive income:		38,630,447		42,416,785		1,450,908		82,498,140
Debt securities		37,921,922		41,004,515		—		78,926,437
Equity securities		708,525		611,220		1,450,908		2,770,653
Loans		—		801,050		—		801,050

		59,385,155		86,539,900		19,768,980		165,694,035

Financial liabilities
Financial liabilities at fair value through profit or loss		2,953,472		—		—		2,953,472
Financial liabilities designated at fair value through profit or loss		56,686		881,791		7,028,486		7,966,963
Derivatives held for trading		104,866		5,100,869		760,777		5,966,512
Derivatives held for hedging		—		244,127		—		244,127

		3,115,024		6,226,787		7,789,263		17,131,074

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the consolidated statements of financial position as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:		36,117,355
Debt securities		35,511,972	DCF Model, Closed Form, Monte Carlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, Binomial Model, and others	Projected cash flow, Fair value of underlying asset, Dividend yield, Price of underlying asset, Interest rate, Discount rate, Volatility, Correlation coefficient, and others
Equity securities		382,597	DCF Model	Interest rate, Discount rate, and others
Loans		222,786	DCF Model	Interest rate, Discount rate, and others
Derivatives held for trading		6,787,028	DCF Model, Closed Form, FDM, Monte Carlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, Option Model and others	Price of underlying asset, Underlying asset index, Interest rate, Dividend yield, Volatility, Foreign exchange rate, Discount rate, and others
Derivatives held for hedging		385,507	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward exchange rate, Volatility, Foreign exchange rate, CRS interest rate, and others
Financial assets at fair value through other comprehensive income:		44,559,709
Debt securities		42,892,559	DCF Model, Option Model	Underlying asset index, Discount rate, and others
Equity securities		767,437	DCF Model	Discount rate
Loans		899,713	DCF Model	Discount rate

		87,849,599

Financial liabilities
Financial liabilities designated at fair value through profit or loss		943,716	DCF Model, Closed Form, Monte Carlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, Net Asset Value Method	Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate
Derivatives held for trading		6,062,294	DCF Model, Closed Form, Monte Carlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model and others	Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate, Volatility, and others
Derivatives held for hedging		259,306	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward exchange rate, Volatility, Foreign exchange rate, risk-free interest rate and others

		7,265,316

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)


(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:		38,118,478
Due from financial institutions		26,020	DCF Model, Hull-white Model	Projected cash flow, Discount rate, Volatility, Correlation coefficient
Debt securities		37,663,855	DCF Model, Closed Form, Monte Carlo Simulation Model, Black-Scholes Model, Hull-white Model, Net Asset Value Method, Binomial Model, and others	Projected cash flow, Fair value of transferred asset, Dividend yield, Price of underlying asset, Interest rate, Discount rate, Volatility, Correlation coefficient, and others
Equity securities		428,367	DCF Model	Interest rate, Discount rate, and others
Loans		236	DCF Model	Interest rate, Discount rate, and others
Derivatives held for trading		5,624,691	DCF Model, Closed Form, FDM, Monte Carlo Simulation, Black-Scholes Model, Hull-white Model, Binomial Model, Option Model and others	Price of underlying asset, Underlying asset index, interest rate, Dividend yield, Volatility, Foreign exchange rate, Discount rate, and others
Derivatives held for hedging		379,946	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward exchange rate, Volatility, Foreign exchange rate, CRS interest rate and others
Financial assets at fair value through other comprehensive income:		42,416,785
Debt securities		41,004,515	DCF Model, Option Model	Underlying asset index, Discount rate, and others
Equity securities		611,220	DCF Model	Discount rate
Loans		801,050	DCF Model	Discount rate

		86,539,900

Financial liabilities
Financial liabilities designated at fair value through profit or loss		881,791	DCF Model, Closed Form, Monte Carlo Simulation Model, Black-Scholes Model, Hull-white Model, Binomial Model, Net Asset Value Model	Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate
Derivatives held for trading		5,100,869	DCF Model, Closed Form, Monte Carlo Simulation Model, Black-Scholes Model, Hull-white Model, Binomial Model, and others	Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate, Volatility, and others
Derivatives held for hedging		244,127	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward exchange rate, Volatility, Foreign exchange rate, risk-free interest rate and others

		6,226,787

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		3,140,087		25,317,716		2,051,598		30,509,401
Loans measured at amortized cost		—		112,551		448,542,286		448,654,837
Securities measured at amortized cost 2		4,405,406		33,588,616		25,674		38,019,696
Other financial assets 2		—		—		24,666,655		24,666,655

		7,545,493		59,018,883		475,286,213		541,850,589

Financial liabilities
Deposits 1		—		172,434,438		248,012,577		420,447,015
Borrowings 3		—		5,650,338		57,246,152		62,896,490
Debentures		—		62,208,265		7,844,547		70,052,812
Other financial liabilities 2		—		—		46,242,487		46,242,487

		—		240,293,041		359,345,763		599,638,804


(In millions of Korean won)	December 31, 2023
	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		2,775,618		24,501,232		2,557,036		29,833,886
Loans measured at amortized cost		—		145,330		444,999,098		445,144,428
Securities measured at amortized cost 2		4,328,010		34,410,808		24,884		38,763,702
Other financial assets 2		—		—		16,544,513		16,544,513

		7,103,628		59,057,370		464,125,531		530,286,529

Financial liabilities
Deposits 1		—		167,135,143		239,575,938		406,711,081
Borrowings 3		—		5,835,132		63,555,214		69,390,346
Debentures		—		61,678,464		7,297,286		68,975,750
Other financial liabilities 2		—		—		37,416,916		37,416,916

		—		234,648,739		347,845,354		582,494,093

1	The amounts included in Level 2 are the carrying amounts which are reasonable approximations of fair value.

2	The amounts included in Level 3 are the carrying amounts which are reasonable approximations of fair value.

3	Borrowings of 38,746 million and 38,191 million included in Level 2 are the carrying amounts which are reasonable approximations of fair value as of March 31, 2024 and December 31, 2023, respectively.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)

For financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, valuation techniques and inputs are not disclosed.

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Fair value		Valuation techniques		Inputs
Financial assets
Loans measured at amortized cost		112,551		DCF Model	Discount rate
Securities measured at amortized cost		33,588,616		DCF Model, MonteCarlo Simulation	Discount rate, Interest rate

		33,701,167

Financial liabilities
Borrowings		5,611,592		DCF Model	Discount rate
Debentures		62,208,265		DCF Model	Discount rate

		67,819,857


(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques		Inputs
Financial assets
Loans measured at amortized cost		145,330		DCF Model	Discount rate
Securities measured at amortized cost		34,410,808		DCF Model, MonteCarlo Simulation	Discount rate, Interest rate

		34,556,138

Financial liabilities
Borrowings		5,796,941		DCF Model	Discount rate
Debentures		61,678,464		DCF Model	Discount rate

		67,475,405

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 3, and whose fair value is disclosed as of March 31, 2024 and December 31, 2023 are as follows:


(In millions of Korean won)	March 31, 2024
	Fair value		Valuation techniques		Inputs
Financial assets
Cash and due from financial institutions		2,051,598		DCF Model	Credit spread, Other spread, Interest rate
Loans measured at amortized cost		448,542,286		DCF Model	Credit spread, Other spread, Prepayment rate, Interest rate

		450,593,884

Financial liabilities
Deposits		248,012,577		DCF Model	Other spread, Prepayment rate, Interest rate
Borrowings		57,246,152		DCF Model	Other spread, Interest rate
Debentures		7,844,547		DCF Model	Other spread, Interest rate

		313,103,276


(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques		Inputs
Financial assets
Cash and due from financial institutions		2,557,036		DCF Model	Credit spread, Other spread, Interest rate
Loans measured at amortized cost		444,999,098		DCF Model	Credit spread, Other spread, Prepayment rate, Interest rate

		447,556,134

Financial liabilities
Deposits		239,575,938		DCF Model	Other spread, Prepayment rate, Interest rate
Borrowings		63,555,214		DCF Model	Other spread, Interest rate
Debentures		7,297,286		DCF Model	Other spread, Interest rate

		310,428,438

6.2 Disclosure of Fair Value Hierarchy Level 3

6.2.1 Valuation policy and process of Level 3 fair value

The Group uses external, independent and qualified valuation service in addition to internal valuation models to determine the fair value of financial instruments at the end of every reporting period.

If the changes in situation and events which cause transfers between the fair value hierarchy level for a financial asset or liability occur, the Group’s policy is to recognize such transfers as having occurred at the beginning of the reporting period.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.2 Changes in fair value (Level 3) measured using valuation technique based on unobservable inputs in the market

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Financial assets at fair value through profit or loss								Financial investments			Financial liabilities at fair value through profit or loss			Net derivative financial instruments
	Due from financial institutions measured at fair value through profit or loss		Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss			Equity securities measured at fair value through other comprehensive income			Financial liabilities designated at fair value through profit or loss			Derivatives held for trading
Beginning		53,791		17,986,749			183,491			1,450,908			(7,028,486	)		(666,734	)
Total gains or losses:
Profit or loss		2,367		176,494			(253,741	)		1,436			10,787			(135,364	)
Other comprehensive income (loss)		—		1			—			(1,454	)		(12,756	)		—
Purchases		—		950,341			272,054			45,616			—			2,182
Sales		—		(883,601	)		—			2,979			—			(2,392	)
Issues		—		—			—			—			(324,168	)		(43	)
Settlements		—		—			—			—			1,026,713			161,544
Transfers into Level 3 *		—		7,112			—			—			—			—
Transfers out of Level 3 *		—		(12,666	)		—			—			—			—

Ending		56,158		18,224,430			201,804			1,499,485			(6,327,910	)		(640,807	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Financial assets at fair value through profit or loss							Financial investments			Financial liabilities at fair value through profit or loss			Net derivative financial instruments
	Due from financial institutions measured at fair value through profit or loss		Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss		Equity securities measured at fair value through other comprehensive income			Financial liabilities designated at fair value through profit or loss			Derivatives held for trading
Beginning		45,025		16,479,588			149,074		1,486,478			(8,231,303	)		(659,816	)
Total gains or losses:
Profit or loss		3,737		211,261			30,964		1,696			(514,692	)		152,843
Other comprehensive income (loss)		—		—			—		(18,206	)		(50,226	)		—
Purchases		—		978,438			—		56,257			—			214
Sales		—		(1,685,844	)		—		(40,388	)		—			(4,247	)
Issues		—		—			—		—			(941,315	)		(752	)
Settlements		—		—			—		—			1,428,746			18,015
Transfers into Level 3 *		—		—			—		—			—			—
Transfers out of Level 3 *		—		(9	)		—		—			—			—

Ending		48,762		15,983,434			180,038		1,485,837			(8,308,790	)		(493,743	)

*	Transfers into or out of Level 3 of the fair value hierarchy occurred due to the change in the availability of observable market data.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024							2023
	Net losses on financial instruments at fair value through profit or loss			Other operating income		Net interest income		Net losses on financial instruments at fair value through profit or loss			Other operating income		Net interest income
Total gains (losses) recognized in profit or loss for the period		(305,911	)		107,890		—		(183,641)			69,450		—
Total gains (losses) recognized in profit or loss from financial instruments held at the end of the reporting period		(291,576	)		95,352		—		(146,510	)		178,692		—

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3 Sensitivity analysis of changes in unobservable inputs

6.2.3.1 Information about fair value measurements using unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)

March 31, 2024

Fair value

Valuation techniques

Unobservable inputs

Range of

unobservable

inputs (%)

Relationship of

unobservable inputs

to fair value

Financial assets

Financial assets at fair value through profit or loss:

Due from financial institutions

56,158

Hull-white Model

Volatility

56.12 ~ 69.15

The higher the volatility, the higher the fair value fluctuation

Debt securities

16,711,665

DCF Model, Closed Form, FDM, Monte Carlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others

Growth rate

0.00 ~ 100.00

The higher the growth rate, the higher the fair value

Volatility

10.00 ~ 97.30

The higher the volatility, the higher the fair value fluctuation

Discount rate

0.00 ~ 15.14

The lower the discount rate, the higher the fair value

Volatility of stock price

10.00 ~ 30.08

The higher the volatility, the higher the fair value

Correlation coefficient between underlying assets

-59.75 ~ 90.00

The higher the correlation coefficient, the higher the fair value fluctuation

Liquidation value

-1.00 ~ 1.00

The higher the liquidation value, the higher the fair value

Recovery rate

The higher the recovery rate, the higher the fair value

Rate of real estate price fluctuation

-1.00 ~ 1.00

The higher the sale price of real estate, the higher the fair value

Equity securities

1,512,765

Income Approach, Market Value Approach, Asset Value Approach, DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Dividend Discount Model, Usage of Past Transactions, Binomial Model, and others

Growth rate

0.00 ~ 1.00

The higher the growth rate, the higher the fair value

Discount rate

8.00 ~ 34.00

The lower the discount rate, the higher the fair value

Volatility

0.40 ~ 45.50

The higher the volatility, the higher the fair value fluctuation

Loans

201,804

DCF Model

Discount rate

9.87

The lower the discount rate, the higher the fair value

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)

(In millions of Korean won)

March 31, 2024

Fair value

Valuation techniques

Unobservable inputs

Range of

unobservable

inputs (%)

Relationship of

unobservable inputs

to fair value

Derivatives held for trading:

Stock and index

36,603

DCF Model, Closed Form, Monte Carlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model

Volatility of underlying asset

12.41 ~ 50.38

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-59.75 ~ 77.99

The higher the correlation coefficient, the higher the fair value fluctuation

Currency, interest rate, and others

23,133

DCF Model, Hull-white Model, Monte Carlo Simulation, Closed Form

Volatility

4.07 ~ 97.30

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-59.75 ~ 77.66

The higher the correlation coefficient, the higher the fair value fluctuation

Financial assets at fair value through other comprehensive income:

Equity securities

1,499,485

DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, IMV Model, Income Approach, Net Asset Value Method, Market Value Approach, and others

Growth rate

0.00 ~ 2.00

The higher the growth rate, the higher the fair value

Discount rate

8.83 ~ 19.90

The lower the discount rate, the higher the fair value

Volatility

20.60 ~ 27.96

The higher the volatility, the higher the fair value fluctuation

20,041,613

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)

(In millions of Korean won)

March 31, 2024

Fair value

Valuation techniques

Unobservable inputs

Range of

unobservable

inputs (%)

Relationship of

unobservable inputs

to fair value

Financial liabilities

Financial liabilities designated at fair value through profit or loss:

Derivative-linked securities

6,327,910

DCF Model, Closed Form, Monte Carlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others

Volatility of underlying asset

1.00 ~ 97.30

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-59.75 ~ 89.87

The higher the correlation coefficient, the higher the fair value fluctuation

Derivatives held for trading:

Stock and index

311,550

DCF Model, Closed Form, Monte Carlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset Value Method, and others

Volatility of underlying asset

12.41 ~ 50.38

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-59.75 ~ 77.99

The higher the correlation coefficient, the higher the fair value fluctuation

Others

388,993

DCF Model, Hull-white Model, Monte Carlo Simulation, Closed Form

Discount rate

4.53 ~ 4.74

The lower the discount rate, the higher the fair value

Volatility of underlying asset

6.47 ~ 97.30

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient between underlying assets

-49.47 ~ 89.87

The higher the correlation coefficient, the higher the fair value fluctuation

7,028,453

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)

(In millions of Korean won)

December 31, 2023

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of

unobservable inputs

to fair value

Financial assets

Financial assets at fair value through profit or loss:

Due from financial institutions

53,791

Hull-white Model

Interest rate

3.20

The lower the interest rate, the higher the fair value

Debt securities

16,453,242

DCF Model, Closed Form, Monte Carlo Simulation, Hull-white Model, Black-Scholes Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others

Growth rate

1.00 ~ 3.00

The higher the growth rate, the higher the fair value

Volatility

14.01 ~ 76.22

The higher the volatility, the higher the fair value fluctuation

Discount rate

2.48 ~ 16.27

The lower the discount rate, the higher the fair value

Volatility of stock price

10.00 ~ 32.55

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient between underlying assets

-60.02 ~ 89.73

The higher the correlation coefficient, the higher the fair value fluctuation

Liquidation value

-1.00 ~ 1.00

The higher the liquidation value, the higher the fair value

Recovery rate

40.00

The higher the recovery rate, the higher the fair value

Rate of real estate price fluctuation

-1.00 ~ 1.00

The higher the sale price of real estate, the higher the fair value

Equity securities

1,533,506

Growth rate

0.00 ~ 1.00

The higher the growth rate, the higher the fair value

Discount rate

2.15 ~ 38.00

The lower the discount rate, the higher the fair value

Volatility of stock price

0.51 ~ 45.50

The higher the volatility, the higher the fair value fluctuation

Loans

183,490

DCF Model

Discount rate

9.87

The lower the discount rate, the higher the fair value

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)

(In millions of Korean won)

December 31, 2023

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of

unobservable inputs to fair

value

Derivatives held for trading:

Stock and index

72,540

DCF Model, Closed Form, FDM, Monte Carlo Simulation, Hull-white Model, Black-Scholes Model, Binomial Model, Net Asset Value

Volatility of underlying asset

13.79 ~ 52.45

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

-60.02 ~ 77.96

The higher the correlation coefficient, the higher the fair value fluctuation

Currency, interest rate, and others

21,503

DCF Model, Hull-white Model, Monte Carlo Simulation, Closed Form

Volatility

9.10 ~ 107.11

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient

60.17 ~ 78.88

The higher the correlation coefficient, the higher the fair value fluctuation

Financial assets at fair value through other comprehensive income:

Equity securities

1,450,908

Risk Adjusted Discount Rate Method, IMV Model, DCF Model, Comparable Company Analysis, Dividend Discount Model, Net Asset Value Method, Market Value Approach, Income Approach and others

Growth rate

0.00 ~ 2.00

The higher the growth rate, the higher the fair value

Discount rate

8.83 ~ 19.90

The lower the discount rate, the higher the fair value

Volatility

20.60 ~ 27.96

The higher the volatility, the higher the fair value fluctuation

19,768,980

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)

(In millions of Korean won)

December 31, 2023

Fair value

Valuation techniques

Unobservable inputs

Range of
unobservable
inputs (%)

Relationship of

unobservable inputs to fair

value

Financial liabilities

Financial liabilities designated at fair value through profit or loss:

Derivative-linked securities

7,028,486

DCF Model, Closed Form, FDM, Monte Carlo Simulation, Hull-white Model, Black-Scholes Model, Net Asset Valuation

Volatility of underlying asset

1.00 ~ 107.11

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient between underlying assets

-60.02 ~ 89.73

The higher the correlation coefficient, the higher the fair value fluctuation

Derivatives held for trading:

Stock and index

437,662

DCF Model, Closed Form, Monte Carlo Simulation, Hull-white Model, Black-Scholes Model, Net Asset Valuation

Volatility of underlying asset

13.79 ~ 52.45

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient between underlying assets

-60.02 ~ 77.96

The higher the correlation coefficient, the higher the fair value fluctuation

Others

323,115

DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form

Discount rate

5.07 ~ 5.19

The lower the discount rate, the higher the fair value

Volatility of underlying asset

4.49 ~ 107.11

The higher the volatility, the higher the fair value fluctuation

Correlation coefficient between underlying assets

-60.02 ~ 89.73

The higher the correlation coefficient, the higher the fair value fluctuation

7,789,263

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. Level 3 financial instruments subject to sensitivity analysis are (a) equity-related derivatives, currency-related derivatives, and interest rate related derivatives whose fair value changes are recognized in profit or loss, (b) financial liabilities designated at fair value through profit or loss, and (c) due from financial institutions, debt securities (including beneficiary certificates), equity securities, and loans whose fair value changes are recognized in profit or loss or other comprehensive income or loss.

Results of the sensitivity analysis of changes in unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Profit or loss					Other comprehensive income or loss
	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss: 1
Due from financial institutions		200		(212	)		—		—
Debt securities 4		88,720		(94,860	)		—		—
Equity securities 3		19,367		(13,528	)		—		—
Loans 5		2,182		(1,980	)		—		—
Derivatives held for trading 2		6,290		(6,977	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities 3		—		—			92,546		(56,705	)

		116,759		(117,557	)		92,546		(56,705	)

Financial liabilities
Financial liabilities designated at fair value through profit or loss 1		34,367		(34,317	)		—		—
Derivatives held for trading 2		17,380		(18,192	)		—		—

		51,747		(52,509	)		—		—

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.3.2 Sensitivity analysis of changes in unobservable inputs (cont’d)


(In millions of Korean won)	December 31, 2023
	Profit or loss					Other comprehensive income or loss
	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss: 1
Due from financial institutions		211		(224	)		—		—
Debt securities 4		94,310		(94,063	)		—		—
Equity securities 3		25,683		(17,107	)		—		—
Loans 5		2,218		(2,010	)		—		—
Derivatives held for trading 2		8,150		(8,723	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities 3		—		—			95,829		(56,625	)

		130,572		(122,127	)		95,829		(56,625	)

Financial liabilities
Financial liabilities designated at fair value through profit or loss 1		43,114		(42,487	)		—		—
Derivatives held for trading 2		17,983		(19,125	)		—		—

		61,097		(61,612	)		—		—

For financial instruments at fair value through profit or loss, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate, recovery rate, liquidation value by ±1%p and volatility of underlying asset, growth rate by ±1%p or ±10% and correlation coefficient by ±10%.

2	For derivative financial instruments, changes in fair value are calculated by shifting principal unobservable input parameters such as price of underlying asset and volatility by ± 10%.

3	For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p) and growth rate (-1%p~1%p).

For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting rate of real estate price fluctuation by -1%p~1%p, and for beneficiary certificates whose underlying assets are equity investments, changes in fair value are calculated by shifting principal unobservable input parameters such as liquidation value by -1%p~1%p and discount rate by -1%p~1%p.

5	For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate by -1%p~1%p.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.2.4 Valuation gains and losses on transaction day

When the Group measures the fair value of OTC derivatives using inputs that are not based on observable market data, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price, and the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. When the fair value of the financial instruments is subsequently determined using observable market inputs, the remaining deferred amount is recognized in profit or loss.

Changes in deferred valuation gains and losses on transaction day for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Balance at the beginning of the period		23,431			71,504
New transactions		13,646			29,001
Changes during the period		(22,055	)		(45,228	)

Balance at the end of the period		15,022			55,277

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.3 Carrying Amount of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortized cost. Carrying amount of financial assets and liabilities by category as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)
	March 31, 2024
	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial assets
Cash and due from financial institutions		—		—		—		30,509,269		—		30,509,269
Financial assets at fair value through profit or loss		77,356,807		—		—		—		—		77,356,807
Derivative financial assets		6,874,933		—		—		—		385,507		7,260,440
Loans measured at amortized cost		—		—		—		448,194,423		—		448,194,423
Financial investments		—		83,037,714		2,965,778		38,963,163		—		124,966,655
Other financial assets		—		—		—		24,666,655		—		24,666,655

		84,231,740		83,037,714		2,965,778		542,333,510		385,507		712,954,249


(In millions of Korean won)
	March 31, 2024
	Financial instruments at fair value through profit or loss		Financial instruments designated at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial liabilities
Financial liabilities at fair value through profit or loss		3,810,390		7,456,717		—		—		11,267,107
Derivative financial liabilities		6,977,285		—		—		259,306		7,236,591
Deposits		—		—		418,070,668		—		418,070,668
Borrowings		—		—		62,993,551		—		62,993,551
Debentures		—		—		70,002,922		—		70,002,922
Other financial liabilities *		—		—		46,242,487		—		46,242,487

		10,787,675		7,456,717		597,309,628		259,306		615,813,326

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6.3 Carrying Amount of Financial Instruments by Category (cont’d)


(In millions of Korean won)
	December 31, 2023
	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial assets
Cash and due from financial institutions		—		—		—		29,836,311		—		29,836,311
Financial assets at fair value through profit or loss		77,038,267		—		—		—		—		77,038,267
Derivative financial assets		5,777,682		—		—		—		379,946		6,157,628
Loans measured at amortized cost		—		—		—		444,805,287		—		444,805,287
Financial investments		—		79,727,487		2,770,653		39,701,389		—		122,199,529
Other financial assets		—		—		—		16,544,513		—		16,544,513

		82,815,949		79,727,487		2,770,653		530,887,500		379,946		696,581,535


(In millions of Korean won)
	December 31, 2023
	Financial instruments at fair value through profit or loss		Financial instruments designated at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial liabilities
Financial liabilities at fair value through profit or loss		2,953,472		7,966,963		—		—		10,920,435
Derivative financial liabilities		5,966,512		—		—		244,127		6,210,639
Deposits		—		—		406,512,434		—		406,512,434
Borrowings		—		—		69,583,561		—		69,583,561
Debentures		—		—		69,176,668		—		69,176,668
Other financial liabilities *		—		—		37,416,916		—		37,416,916

		8,919,984		7,966,963		582,689,579		244,127		599,820,653

*	Other financial liabilities include lease liabilities that are not included in the category of financial instruments measured at amortized cost.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

7. Due from Financial Institutions Measured at Amortized Cost

7.1 Details of due from financial institutions as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)		Financial institutions	Interest rate (%) as of March 31, 2024	March 31, 2024		December 31, 2023
Due from financial institutions in Korean won	Due from the Bank of Korea	The Bank of Korea	0.00 ~ 3.52		16,072,745		13,731,708
Due from financial institutions in Korean won	Due from banks	Hana Bank and others	0.00 ~ 6.00		2,413,422		3,953,940
	Due from others	Samsung securities and others	0.00 ~ 5.00		1,168,654		1,030,310

					19,654,821		18,715,958

Due from financial institutions in foreign currencies	Due from banks in foreign currencies	OCBC and others	0.00 ~ 5.16		5,727,337		6,210,917
Due from financial institutions in foreign currencies	Time deposits in foreign currencies	AGRICULTURAL BANK OF CHINA NEW YORK BRANCH and others	0.00 ~ 7.35		330,751		442,122
	Due from others	THE BANK OF NEW YORK MELLON and others	0.00 ~ 9.50		2,256,067		2,211,303
					8,314,155		8,864,342

					27,968,976		27,580,300

*	Before netting of allowance

7.2 Details of restricted due from financial institutions as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)		Financial institutions	March 31, 2024	December 31, 2023		Reasons of restriction
Due from financial institutions in Korean won	Due from the Bank of Korea	The Bank of Korea	16,072,745		13,731,708	Bank of Korea Act
	Due from banks	Korea Development Bank and others	63,929		40,721	Net settlement and others
	Due from others	Samsung futures and others	603,918		799,361	Derivatives margin account and others

			16,740,592		14,571,790

Due from financial institutions in foreign currencies	Due from banks in foreign currencies	The Bank of Korea and others	1,545,872		1,630,348	Bank of Korea Act and others
	Time deposits in foreign currencies	AGRICULTURAL BANK OF CHINA NEW YORK BRANCH and others	90,096		86,406	Bank Act of the State of New York and others
	Due from others	THE BANK OF NEW YORK MELLON and others	1,867,049		1,689,065	Derivatives margin account and others

			3,503,017		3,405,819

			20,243,609		17,977,609

*	Before netting of allowance

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

7.3 Changes in allowances for credit losses of due from financial institutions for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired		Impaired
Beginning		1,021			—		—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—		—
Transfer to lifetime expected credit losses		—			—		—
Impairment		—			—		—
Reversal of credit losses		(291	)		—		—
Others		266			—		—

Ending		996			—		—


(In millions of Korean won)	2023
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired		Impaired
Beginning		2,743			—		—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—		—
Transfer to lifetime expected credit losses		—			—		—
Impairment		—			—		—
Provision for credit losses		(954	)		—		—
Others		2			—		—

Ending		1,791			—		—

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8. Derivative Financial Instruments and Hedge Accounting

The Group’s derivative operations focus on addressing the needs of the Group’s corporate clients to hedge their risk exposure and hedging the Group’s risk exposure that results from such client contracts. The Group also engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Group’s own assets and liabilities. In addition, the Group engages in proprietary trading of derivatives within the predetermined transaction limit.

The Group provides and trades a range of derivative financial instruments, including:

•

Interest rate swaps relating to interest rate risk in Korean won

•

Cross-currency swaps, forwards, and options relating to currency risk

•

Stock index options linked with the Korea Composite Stock Price Index (“KOSPI”)

In particular, the Group applies fair value hedge accounting using interest rate swaps, currency forwards, and others to hedge the risk of changes in fair value due to the changes in interest rate and foreign exchange rate of structured debentures in Korean won, debentures in foreign currencies, structured deposits in foreign currencies, and others. The Group applies cash flow hedge accounting using interest rate swaps, currency swaps, and others to hedge the risk of changes in cash flows of floating rate debt securities in Korean won, borrowings in foreign currencies, group of loans measured at amortized cost, and others. In addition, the Group applies net investments in foreign operations hedge accounting by designating debentures in foreign currencies and cross currency forwards as hedging instruments to hedge the currency risk of net investments in foreign operations.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.1 Details of derivative financial instruments held for trading as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)


	March 31, 2024						December 31, 2023
	Notional amount		Assets		Liabilities		Notional amount		Assets		Liabilities
Interest rate
Forwards		16,231,153		487,672		351,937		14,872,481		488,542		465,983
Futures *		5,120,393		1,363		1,931		5,398,495		6,226		4,576
Swaps		444,759,409		619,219		584,614		416,613,927		556,985		574,865
Options		8,434,000		217,645		205,989		9,384,000		203,718		208,277

		474,544,955		1,325,899		1,144,471		446,268,903		1,255,471		1,253,701

Currency
Forwards		170,984,144		2,306,167		1,512,544		136,805,906		1,316,968		1,273,558
Futures *		657,025		744		457		576,730		696		989
Swaps		83,492,034		2,789,026		3,343,357		84,027,181		2,731,314		2,426,152
Options		1,292,075		4,769		6,072		1,238,475		7,668		4,713

		256,425,278		5,100,706		4,862,430		222,648,292		4,056,646		3,705,412

Stock and index
Futures *		2,464,509		7,843		39,184		1,352,920		11,179		13,232
Swaps		5,492,511		267,298		396,864		5,165,523		330,132		493,475
Options		4,591,170		119,875		232,855		4,880,805		80,576		240,274

		12,548,190		395,016		668,903		11,399,248		421,887		746,981

Credit
Swaps		3,267,227		27,125		18,697		2,864,357		17,799		8,695

		3,267,227		27,125		18,697		2,864,357		17,799		8,695

Commodity
Futures *		54,171		363		1,789		26,037		1,305		106
Swaps		34,791		7,318		7,321		31,635		4,348		4,352
Options		89,964		452		450		100,484		1,091		1,147

		178,926		8,133		9,560		158,156		6,744		5,605

Others		841,084		18,054		273,224		788,841		19,135		246,118

		747,805,660		6,874,933		6,977,285		684,127,797		5,777,682		5,966,512

*	Gains or losses arising from some daily mark-to-market futures are reflected in the margin accounts.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.2 Average price conditions of future nominal cash flows by type of hedge accounting as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument		3,570,730		2,710,800		1,494,037		335,441		810,437		2,003,030		10,924,475
Average price condition (%)		4.38		5.00		5.15		5.58		6.93		4.02		4.84
Average price condition (KRW/USD)		1,269.75		1,265.88		1,267.35		—		—		—		1,269.01
Average price condition (KRW/EUR)		1,375.47		1,441.10		1,440.95		—		—		—		1,408.43
Average price condition (KRW/AUD)		881.84		846.74		—		—		—		—		875.61
Average price condition (KRW/GBP)		1,587.90		1,535.25		—		—		—		—		1,536.92
Cash flow hedge
Nominal amount of the hedging instrument		1,443,626		2,505,607		2,045,905		1,293,798		145,536		160,000		7,594,472
Average price condition (%)		3.73		4.10		2.92		5.59		2.67		3.11		4.30
Average price condition (KRW/USD)		1,204.48		1,192.85		1,213.46		1,299.33		1,306.77		—		1,264.01
Average price condition (KRW/EUR)		1,364.00		1,374.73		—		1,392.00		—		—		1,372.29
Average price condition (KRW/AUD)		853.4		889		—		—		—		—		866.92
Hedge of net investments in foreign operations
Nominal amount of the hedging instrument		51,313		—		216,835		—		—		—		268,148
Average price condition (KRW/USD)		1,071.00		—		1,178.92		—		—		—		1,158.26

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.2 Average price conditions of future nominal cash flows by type of hedge accounting as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)	December 31, 2023
	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument		2,998,238		3,555,510		1,667,087		349,482		267,778		2,304,270		11,142,365
Average price condition (%)		4.77		4.86		5.18		5.23		5.73		4.93		4.95
Average price condition (KRW/USD)		1,257.22		1,277.42		1,242.04		—		—		—		1,257.90
Average price condition (KRW/EUR)		1,373.58		1,427.96		1,436.77		—		—		—		1,404.28
Average price condition (KRW/AUD)		872.12		840.73		—		—		—		—		869.67
Average price condition (KRW/GBP)		—		1,536.92		—		—		—		—		1,536.92
Cash flow hedge
Nominal amount of the hedging instrument		1,651,669		2,035,885		1,994,375		1,364,708		154,813		160,000		7,361,450
Average price condition (%)		4.6		3.05		11.94		7.98		2.67		3.11		10.68
Average price condition (KRW/USD)		1,220.93		1,221.93		1,230.48		1,325.04		1,147.95		—		1,235.39
Average price condition (KRW/EUR)		1,364.00		1,374.73		—		—		1,392.00		—		1,372.29
Average price condition (KRW/AUD)		856.4		851.5		889		—		—		—		866.92
Hedge of net investments in foreign operations
Nominal amount of the hedging instrument		31,332		—		207,593		—		—		—		238,925
Average price condition (KRW/USD)		1,071.00		—		1,178.92		—		—		—		1,164.76

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.3 Fair Value Hedge

8.3.1 Details of fair value hedged items as of March 31, 2024 and December 31, 2023 and changes in fair value for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)		March 31, 2024										2024
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair value
		Assets		Liabilities		Assets			Liabilities			Changes in fair value
Hedge accounting Interest rate
	Debt securities in Korean won		1,867,013		—		(48,179	)		—			1,150
	Debt securities in foreign currencies		2,239,261		—		(103,701	)		—			(6,366	)
	Deposits in Korean won		—		238,801		—			(1,199	)		1,184
	Deposits in foreign currencies		—		32,476		—			(7,929	)		1,262
	Debentures in Korean won		—		3,188,807		—			(159,150	)		16,975
	Debentures in foreign currencies		—		1,419,984		—			(88,432	)		19,726

			4,106,274		4,880,068		(151,880	)		(256,710	)		33,931

Currency
	Debt securities in foreign currencies		1,460,576		—		155,583			—			59,342

			1,460,576		—		155,583			—			59,342

			5,566,850		4,880,068		3,703			(256,710	)		93,273

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.3.1 Details of fair value hedged items as of March 31, 2024 and December 31, 2023 and changes in fair value for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)		December 31, 2023										2023
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair value
		Assets		Liabilities		Assets			Liabilities			Changes in fair value
Hedge accounting Interest rate
	Debt securities in Korean won		1,975,442		—		(50,746	)		—			31,436
	Debt securities in foreign currencies		2,585,073		—		(111,902	)		—			32,577
	Deposits in Korean won		—		49,985		—			(15	)		—
	Deposits in foreign currencies		—		32,016		—			(6,667	)		(723	)
	Debentures in Korean won		—		5,678,927		—			(141,073	)		(62,513	)
	Debentures in foreign currencies		—		1,310,952		—			(68,706	)		(13,577	)

			4,560,515		7,071,880		(162,648	)		(216,461	)		(12,800	)

Currency
	Debt securities in foreign currencies		1,525,072		—		140,391			—			3,524

			1,525,072		—		140,391			—			3,524

			6,085,587		7,071,880		(22,257	)		(216,461	)		(9,276	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.3.2 Details of derivative instruments designated as fair value hedge as of March 31, 2024 and December 31, 2023 and changes in fair value for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	March 31, 2024						2024
	Notional amount		Carrying amount				Changes in fair value
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Swaps		9,409,871		106,144		95,116		(29,393	)
Currency
Forwards		1,514,604		7,126		46,372		(48,944	)

		10,924,475		113,270		141,488		(78,337	)


(In millions of Korean won)	December 31, 2023						2023
	Notional amount		Carrying amount				Changes in fair value
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Swaps		9,654,617		111,360		75,776		19,106
Currency
Forwards		1,487,748		18,916		28,793		(34,224	)

		11,142,365		130,276		104,569		(15,118	)

8.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)
	2024		2023
Hedge accounting
Interest rate		5,606		6,306
Currency		10,398		(30,700	)

		16,004		(24,394	)

8.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Losses on hedging instruments		(77,269	)		(16,661	)
Gains (losses) on hedged items attributable to the hedged risk		92,365			(8,396)
		15,096			(25,057	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.4 Cash Flow Hedge

8.4.1 Details of cash flow hedged items as of March 31, 2024 and December 31, 2023 and changes in fair value for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	Cash flow hedge reserve						Changes in fair value
	March 31, 2024			December 31, 2023			2024			2023
Hedge accounting
Interest rate risk		76,801			113,361			49,800			11,856
Currency risk		(40,043	)		(39,806	)		(39,134	)		(9,580	)

		36,758			73,555			10,666			2,276

8.4.2 Details of derivative instruments designated as cash flow hedge as of March 31, 2024 and December 31, 2023 and changes in fair value for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	March 31, 2024						2024
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Forwards		813,751		52,628		14,008		(43,599	)
Swaps		2,675,285		76,116		566		19,495
Currency
Swaps		4,105,436		143,493		100,348		55,773
		7,594,472		272,237		114,922		31,669


(In millions of Korean won)	December 31, 2023						2023
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Forwards		750,396		105,124		7,856		3,269
Swaps		3,115,818		59,376		3,547		(27,615	)
Currency
Swaps		3,495,236		85,170		122,848		9,301
		7,361,450		249,670		134,251		(15,045	)

8.4.3 Gains or losses on cash flow hedging instruments and hedged items attributable to the hedged risk for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023

Gains (losses) on hedging instruments:		31,669		(15,045	)
Effective portion of gains (losses) on cash flow hedging instruments (recognized in other comprehensive income or loss)		31,166		(15,587	)
Ineffective portion of gains on cash flow hedging instruments (recognized in profit or loss)		503		542

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.4.4 Amounts recognized in other comprehensive income (loss) and reclassified from equity to profit or loss related to derivative instruments designated as cash allow hedge for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Other comprehensive income (loss)		31,166			(15,587	)
Reclassification to profit or loss		(63,308	)		(16,462	)
Income tax effect		(4,655	)		(3,416	)

		(36,797	)		(35,465	)

8.5 Hedge of Net Investments in Foreign Operations

8.5.1 Details of net investments in foreign operations hedged items as of March 31, 2024 and December 31, 2023 and changes in fair value for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	Foreign currency translation reserve						Changes in fair value
	March 31, 2024			December 31, 2023			2024		2023
Hedge accounting
Currency risk		(180,604	)		(129,401	)		69,570		40,949

8.5.2 Details of financial instruments designated as hedge of net investments in foreign operations as of March 31, 2024 and December 31, 2023 and changes in fair value for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	March 31, 2024						2024
	Notional amount		Assets		Liabilities		Changes in fair value
Currency
Forwards		51,313		—		2,896		2,411
Debentures in foreign currencies		1,507,798		—		1,507,798		(71,981	)

		1,559,111		—		1,510,694		(69,570	)


(In millions of Korean won)	December 31, 2023						2023
	Notional amount		Assets		Liabilities		Changes in fair value
Currency
Forwards		31,332		—		5,307		(1,748	)
Debentures in foreign currencies		1,435,817		—		1,435,817		(39,201	)

		1,467,149		—		1,441,124		(40,949	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8.5.3 Fair value of non-derivative financial instruments designated as hedge of net investments in foreign operations as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Debentures in foreign currencies		1,579,807		1,509,978

8.5.4 Gains or losses on net investments in foreign operations hedging instruments and hedged items attributable to the hedged risk for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Losses on hedging instruments:		(69,570	)		(40,949	)
Effective portion of losses on hedge of net investments in foreign operations (recognized in other comprehensive income or loss)		(69,570	)		(40,949	)
Ineffective portion of losses on hedge of net investments in foreign operations (recognized in profit or loss)		—			—

8.5.5 Effective portion of gains or losses on net investments in foreign operations hedging instruments recognized in other comprehensive income (loss) for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Other comprehensive loss		(69,570	)		(40,949	)
Reclassification to profit or loss		—			—
Income tax effect		18,367			10,816

		(51,203	)		(30,133	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

9. Loans Measured at Amortized Cost

9.1 Details of loans as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Loans measured at amortized cost		453,130,650			449,676,848
Deferred loan origination fees and costs		612,710			591,244
Less: Allowances for credit losses		(5,548,937	)		(5,462,805	)

		448,194,423			444,805,287

9.2 Details of loans to banks as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Loans measured at amortized cost		10,981,368			11,569,466
Less: Allowances for credit losses		(17,034	)		(20,429	)

		10,964,334			11,549,037

9.3 Details of loan types and customer types of loans to customers other than banks as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Retail			Corporate			Credit card			Total
Loans in Korean won		179,209,001			192,453,487			—			371,662,488
Loans in foreign currencies		5,125,327			27,151,871			—			32,277,198
Domestic import usance bills		—			3,723,360			—			3,723,360
Off-shore funding loans		—			511,664			—			511,664
Call loans		—			50,000			—			50,000
Bills bought in Korean won		—			2,200			—			2,200
Bills bought in foreign currencies		—			2,319,674			—			2,319,674
Guarantee payments under acceptances and guarantees		—			10,808			—			10,808
Credit card receivables in Korean won		—			—			22,105,714			22,105,714
Credit card receivables in foreign currencies		—			—			48,740			48,740
Bonds purchased under repurchase agreements		—			2,071,470			—			2,071,470
Privately placed bonds		—			448,930			—			448,930
Factored receivables		45			189			—			234
Lease receivables		436,064			296,833			—			732,897
Loans for installment credit		6,010,644			785,971			—			6,796,615

		190,781,081			229,826,457			22,154,454			442,761,992

Proportion (%)		43.09			51.91			5.00			100.00
Less: Allowances for credit losses		(1,425,884	)		(3,132,711	)		(973,308	)		(5,531,903	)

		189,355,197			226,693,746			21,181,146			437,230,089

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

9.3 Details of loan types and customer types of loans to customers other than banks as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)	December 31, 2023
	Retail			Corporate			Credit card			Total
Loans in Korean won		178,476,837			190,160,636			—			368,637,473
Loans in foreign currencies		4,859,698			25,449,011			—			30,308,709
Domestic import usance bills		—			3,398,981			—			3,398,981
Off-shore funding loans		—			507,683			—			507,683
Call loans		—			269,198			—			269,198
Bills bought in Korean won		—			1,861			—			1,861
Bills bought in foreign currencies		—			1,276,579			—			1,276,579
Guarantee payments under acceptances and guarantees		—			20,085			—			20,085
Credit card receivables in Korean won		—			—			22,304,522			22,304,522
Credit card receivables in foreign currencies		—			—			45,449			45,449
Bonds purchased under repurchase agreements		—			3,633,073			—			3,633,073
Privately placed bonds		—			901,609			—			901,609
Factored receivables		70			99			—			169
Lease receivables		447,494			337,407			—			784,901
Loans for installment credit		5,908,190			700,144			—			6,608,334

		189,692,289			226,656,366			22,349,971			438,698,626

Proportion (%)		43.24			51.67			5.09			100.00
Less: Allowances for credit losses		(1,369,081	)		(3,137,470	)		(935,825	)		(5,442,376	)

		188,323,208			223,518,896			21,414,146			433,256,250

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

10. Allowances for Credit Losses

10.1 Changes in allowances for credit losses of loans measured at amortized cost for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024

	Retail									Corporate									Credit card
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired
Beginning		584,650			283,382			501,049			939,640			935,715			1,282,544			206,525			328,152			401,148
Transfer between stages:
Transfer to 12-month expected credit losses		52,734			(48,864	)		(3,870	)		82,515			(80,082	)		(2,433	)		43,883			(42,197	)		(1,686	)
Transfer to lifetime expected credit losses		(44,333	)		65,072			(20,739	)		(139,469	)		148,638			(9,169	)		(21,078	)		26,881			(5,803	)
Impairment		(6,759	)		(68,933	)		75,692			(1,885	)		(75,837	)		77,722			(1,303	)		(73,343	)		74,646
Write-offs		—			—			(134,934	)		—			—			(64,496	)		—			—			(150,998	)
Sales		(272	)		(246	)		(19,227	)		—			(333	)		(33,303	)		—			—			—
Provision (reversal) for credit losses 1,2		(8,568	)		48,997			167,253			23,907			(17,231	)		62,931			(21,793	)		71,923			151,760
Others (exchange differences, etc.)		617			291			2,892			(3,596	)		3,299			20,668			39			42			(13,490	)

Ending		578,069			279,699			568,116			901,112			914,169			1,334,464			206,273			311,458			455,577

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

10.1 Changes in allowances for credit losses of loans measured at amortized cost for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023

	Retail									Corporate									Credit card
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired
Beginning		602,037			284,816			450,513			522,552			561,936			901,288			163,185			354,315			320,342
Transfer between stages:
Transfer to 12-month expected credit losses		55,094			(52,194	)		(2,900	)		61,522			(42,662	)		(18,860	)		54,295			(49,988	)		(4,307	)
Transfer to lifetime expected credit losses		(37,148	)		51,168			(14,020	)		(33,114	)		48,928			(15,814	)		(20,725	)		22,301			(1,576	)
Impairment		(4,115	)		(46,781	)		50,896			(1,277	)		(35,598	)		36,875			(661	)		(67,502	)		68,163
Write-offs		—			—			(112,702	)		—			—			(37,236	)		—			—			(118,121	)
Sales		(207	)		(347	)		(1,624	)		99			(188	)		(4,921	)		—			—			—
Provision (reversal) for credit losses 1,2		(15,086	)		55,445			132,533			141,358			126,828			103,854			(22,119	)		75,525			124,060
Others (exchange differences, etc.)		1,157			536			16,322			2,605			4,182			43,329			187			9			(9,295	)

Ending		601,732			292,643			519,018			693,745			663,426			1,008,515			174,162			334,660			379,266

Provision for credit losses in the consolidated statements of comprehensive income also includes provision (reversal) for credit losses of due from financial institutions (Note 7.3), provision (reversal) for credit losses of financial investments (Note 11.5), provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note 18.2), provision (reversal) for credit losses of financial guarantee contracts (Note 18.3), and provision (reversal) for credit losses of other financial assets.

2	Includes 72,724 million and 92,434 million of collections from written-off loans for the three-month periods ended March 31, 2024 and 2023, respectively.

The amount of financial assets that the Group wrote off during the current year but is continuing recovery activities is 350,428 million. Also, the Group manages the written-off loans that their legal extinctive prescriptions have not been completed, and that have not been collected. The balances of those loans are 10,236,175 million and 10,301,118 million as of March 31, 2024 and December 31, 2023, respectively.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

10.2 Changes in gross carrying amount of loans for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024

	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired			Impaired
Beginning		408,283,402			37,076,587			4,908,103
Transfer between stages:
Transfer to 12-month expected credit losses		9,509,690			(9,035,604	)		(474,086	)
Transfer to lifetime expected credit losses (non-impaired)		(12,012,888	)		12,238,947			(226,059	)
Transfer to lifetime expected credit losses (impaired)		(258,842	)		(1,224,810	)		1,483,652
Write-offs		—			—			(350,428	)
Sales		(1,291,854	)		(19,985	)		(199,428	)
Net increase (decrease) (execution, repayment, and others)		6,765,762			(1,642,925	)		214,126

Ending		410,995,270			37,392,210			5,355,880


(In millions of Korean won)	2023

	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired			Impaired
Beginning		399,089,134			34,563,171			3,547,610
Transfer between stages:
Transfer to 12-month expected credit losses		10,798,013			(10,353,019	)		(444,994	)
Transfer to lifetime expected credit losses (non-impaired)		(10,306,126	)		10,618,206			(312,080	)
Transfer to lifetime expected credit losses (impaired)		(761,095	)		(860,228	)		1,621,323
Write-offs		—			(1	)		(268,058	)
Sales		(1,520,510	)		(6,142	)		(40,956	)
Net increase (decrease) (execution, repayment, and others)		2,962,015			(1,519,686	)		50,030

Ending		400,261,431			32,442,301			4,152,875

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

11. Financial Assets at Fair Value through Profit or Loss and Financial Investments

11.1 Details of financial assets at fair value through profit or loss and financial investments as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023

Financial assets at fair value through profit or loss
Debt securities:
Government and public bonds		10,148,069			10,100,109
Financial bonds		11,564,212			12,793,559
Corporate bonds		6,791,335			6,677,388
Asset-backed securities		38,706			68,093
Beneficiary certificates		22,396,103			20,511,995
Derivative-linked securities		1,931,370			2,197,575
Other debt securities		19,533,901			20,309,713
Equity securities:
Stocks		3,882,186			3,498,880
Other equity securities		490,663			523,675
Loans:
Privately placed bonds		168,637			150,208
Other loans		255,953			33,518
Due from financial institutions:
Other due from financial institutions		56,158			79,811
Others		99,514			93,743

		77,356,807			77,038,267

Financial investments
Financial assets at fair value through other comprehensive income
Debt securities:
Government and public bonds		34,565,457			33,455,476
Financial bonds		22,099,092			20,898,723
Corporate bonds		23,132,771			22,492,869
Asset-backed securities		2,228,260			1,963,242
Other debt securities		112,420			116,127
Equity securities:
Stocks		1,955,021			1,951,150
Equity investments		1,541			9,560
Other equity securities		1,009,217			809,943
Loans:
Privately placed bonds		899,713			801,050

		86,003,492			82,498,140

Financial assets at amortized cost
Debt securities:
Government and public bonds		6,430,277			6,507,625
Financial bonds		14,152,349			14,257,747
Corporate bonds		8,895,850			9,368,943
Asset-backed securities		9,326,099			9,418,498
Other debt securities		177,693			167,848
Less: Allowances for credit losses		(19,105	)		(19,272	)

		38,963,163			39,701,389

		124,966,655			122,199,529

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

11.2 Dividend income from equity securities designated at fair value through other comprehensive income for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)		2024				2023
		From the equity securities derecognized		From the equity securities held		From the equity securities derecognized		From the equity securities held
Equity securities measured at fair value through other comprehensive income:
Stocks	Listed		—		3,597		—		136
	Unlisted		—		15,119		245		13,395
Other equity securities			343		10,732		—		6,605

			343		29,448		245		20,136

11.3 Derecognized equity securities measured at fair value through other comprehensive income for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)		2024					2023
		Disposal price		Accumulated other comprehensive income (loss) as of disposal date			Disposal price		Accumulated other comprehensive income as of disposal date
Equity securities measured at fair value through other comprehensive income:
Stocks	Listed		8,054		(5,586	)		—		(758	)
	Unlisted		—		—			—		—

			8,054		(5,586	)		—		(758	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

11.4 Provision (reversal) for credit losses of financial investments for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Provision		Reversal			Total
Securities measured at fair value through other comprehensive income		3,282		(1,717	)		1,565
Loans measured at fair value through other comprehensive income		236		(171	)		65
Securities measured at amortized cost		720		(903	)		(183	)

		4,238		(2,791	)		1,447


(In millions of Korean won)	2023
	Provision		Reversal			Total
Securities measured at fair value through other comprehensive income		1,292		(998	)		294
Loans measured at fair value through other comprehensive income		62		(3	)		59
Securities measured at amortized cost		958		(366	)		592

		2,312		(1,367)			945

11.5 Changes in allowances for credit losses of financial investments for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired		Impaired
Beginning		44,465			—		77
Transfer between stages:
Transfer to 12-month expected credit losses		—			—		—
Transfer to lifetime expected credit losses		—			—		—
Sales		(787	)		—		—
Provision for credit losses		1,447			—		—
Others		242			—		—

Ending		45,367			—		77


(In millions of Korean won)	2023
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non-impaired			Impaired
Beginning		16,343			270			76
Transfer between stages:
Transfer to 12-month expected credit losses		—			—			—
Transfer to lifetime expected credit losses		—			—			—
Sales		(330	)		(270	)		—
Provision for credit losses		892			53			—
Others		190			—			—

Ending		17,095			53			76

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

12. Deferred Income Tax Assets and Liabilities

Details of deferred income tax assets and liabilities as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Assets			Liabilities			Net amount
Other provisions		483,040			(14	)		483,026
Allowances for credit losses		26,810			—			26,810
Impairment losses of property and equipment		12,256			(1,395	)		10,861
Share-based payments		22,615			—			22,615
Provisions for acceptances and guarantees		54,648			(14	)		54,634
Gains or losses on valuation of derivatives		268,010			(256,078	)		11,932
Present value discount		13,897			(14	)		13,883
Gains or losses on fair value hedge		—			(67,771	)		(67,771	)
Accrued interest		120			(232,872	)		(232,752	)
Deferred loan origination fees and costs		15,146			(182,714	)		(167,568	)
Advanced depreciation provision		—			(4,003	)		(4,003	)
Gains or losses on revaluation		313			(290,487	)		(290,174	)
Investments in subsidiaries and others		51,507			(350,226	)		(298,719	)
Gains or losses on valuation of security investment		1,071,034			(286,232	)		784,802
Defined benefit liabilities		560,926			(145	)		560,781
Accrued expenses		183,202			—			183,202
Retirement insurance expense		—			(612,444	)		(612,444	)
Adjustments to the prepaid contributions		—			(38,922	)		(38,922	)
Derivative-linked securities		5,500			(192,646	)		(187,146	)
Others *		1,168,521			(3,091,088	)		(1,922,567	)

		3,937,545			(5,607,065	)		(1,669,520	)

Offsetting of deferred income tax assets and liabilities		(3,602,421	)		3,602,421			—

		335,124			(2,004,644	)		(1,669,520	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

12. Deferred Income Tax Assets and Liabilities (cont’d)


(In millions of Korean won)	December 31, 2023
	Assets			Liabilities			Net amount
Other provisions		317,698			—			317,698
Allowances for credit losses		29,768			—			29,768
Impairment losses of property and equipment		8,516			(1,407	)		7,109
Share-based payments		24,326			—			24,326
Provisions for acceptances and guarantees		48,917			—			48,917
Gains or losses on valuation of derivatives		238,875			(184,469	)		54,406
Present value discount		14,471			(13	)		14,458
Gains or losses on fair value hedge		—			(57,146	)		(57,146	)
Accrued interest		146			(213,708	)		(213,562	)
Deferred loan origination fees and costs		14,593			(179,868	)		(165,275	)
Advanced depreciation provision		—			(4,003	)		(4,003	)
Gains or losses on revaluation		313			(290,547	)		(290,234	)
Investments in subsidiaries and others		56,338			(216,908	)		(160,570	)
Gains or losses on valuation of security investment		912,706			(354,353	)		558,353
Defined benefit liabilities		575,599			(26	)		575,573
Accrued expenses		323,229			—			323,229
Retirement insurance expense		—			(627,556	)		(627,556	)
Adjustments to the prepaid contributions		—			(33,005	)		(33,005	)
Derivative-linked securities		5,735			(262,523	)		(256,788	)
Others *		1,091,821			(3,143,260	)		(2,051,439	)

		3,663,051			(5,568,792	)		(1,905,741	)

Offsetting of deferred income tax assets and liabilities		(3,388,826	)		3,388,826			—

		274,225			(2,179,966	)		(1,905,741	)

*	Includes Purchase Price Allocation (“PPA”) amount arising from the acquisition of KB Life Insurance Co., Ltd., KB Insurance Co., Ltd.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

13. Financial Liabilities at Fair Value through Profit or Loss

13.1 Details of financial liabilities at fair value through profit or loss and financial liabilities designated at fair value through profit or loss as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023

Financial liabilities at fair value through profit or loss
Borrowed securities sold		3,709,269		2,860,034
Others		101,121		93,438

		3,810,390		2,953,472

Financial liabilities designated at fair value through profit or loss
Derivative-linked securities		7,456,717		7,966,963

		7,456,717		7,966,963

		11,267,107		10,920,435

13.2 Difference between the amount contractually required to pay at maturity and carrying amount of financial liabilities designated at fair value through profit or loss as of March 31, 2024 and December 31, 2023 are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Amount contractually required to pay at maturity		7,369,124			7,871,014
Carrying amount		7,456,717			7,966,963

Difference		(87,593	)		(95,949	)

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

14. Deposits

Details of deposits as of March 31, 2024 and December 31, 2023 are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Demand deposits
Demand deposits in Korean won		156,536,778			151,836,599
Demand deposits in foreign currencies		11,039,095			11,517,076

		167,575,873			163,353,675

Time deposits
Time deposits in Korean won		208,057,334			201,194,217
Fair value adjustments of fair value hedged time deposits in foreign currencies		(1,199	)		(15	)

		208,056,135			201,194,202

Time deposits in foreign currencies		25,301,928			24,602,818
Fair value adjustments of fair value hedged time deposits in foreign currencies		(7,929	)		(6,667	)

		25,293,999			24,596,151

		233,350,134			225,790,353

Certificates of deposits		12,058,479			12,145,510

Investment contract liabilities		5,086,182			5,222,896

		418,070,668			406,512,434

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

15. Borrowings

15.1 Details of borrowings as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
General borrowings		51,384,383		50,675,884
Bonds sold under repurchase agreements and others		8,930,895		15,652,135
Call money		2,678,273		3,255,542

		62,993,551		69,583,561

15.2 Details of general borrowings as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)		Lenders	Interest rate (%) as of March 31, 2024	March 31, 2024	December 31, 2023
Borrowings in Korean won	Borrowings from the Bank of Korea	The Bank of Korea	2.00	2,380,413	2,520,472
	Borrowings from the government	SEMAS and others	0.00~3.50	2,550,458	2,500,160
	Borrowings from banks	Shinhan Bank and others	2.70~6.99	1,705,226	1,764,900
	Borrowings from non-banking financial institutions	Korea Securities Finance Corporation and others	1.79~6.70	2,684,893	2,780,823
	Other borrowings	The Korea Development Bank and others	0.00~7.50	23,308,070	22,645,638

				32,629,060	32,211,993

Borrowings in foreign currencies	Due to banks	Hana Bank and others	—	38,746	38,191
	Borrowings from banks	Citicorp International Ltd and others	0.00~13.50	15,448,785	15,437,388
	Borrowings from other financial institutions	The Export-Import Bank of Korea and others	5.86~6.04	25,255	24,662
	Other borrowings	Standard Chartered Bank and others	0.00~5.85	3,242,537	2,963,650

				18,755,323	18,463,891

				51,384,383	50,675,884

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

16. Debentures

16.1 Details of debentures as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	Interest rate (%) as of March 31, 2024		March 31, 2024			December 31, 2023
Debentures in Korean won
Structured debentures		4.25~6.35		90,620			90,640
Exchangeable bonds *		—		—			240,000
Subordinated fixed rate debentures		2.02~4.90		4,453,116			4,453,970
Fixed rate debentures		1.18~7.68		46,846,733			45,624,127
Floating rate debentures		3.49~6.05		4,490,000			5,410,000

				55,880,469			55,818,737
Fair value adjustments of fair value hedged debentures in Korean won				(159,149	)		(141,073	)
Less: Discount on debentures in Korean won				(30,862	)		(29,670	)
Less: Adjustment for exchange right of exchangeable bonds in Korean won				—			(5,104	)

				55,690,458			55,642,890

Debentures in foreign currencies
Floating rate debentures		0.01~6.88		3,276,255			2,532,921
Fixed rate debentures		0.05~12.00		11,162,233			11,109,296

				14,438,488			13,642,217
Fair value adjustments of fair value hedged debentures in foreign currencies				(88,432	)		(68,706	)
Less: Discount on debentures in foreign currencies				(37,592	)		(39,733	)

				14,312,464			13,533,778

				70,002,922			69,176,668

Fair value of the liability component of exchangeable bonds is calculated by using market interest rate of bonds under the same conditions without the exchange right. The residual amount, after deducting liability component from the issuance amount, represents the value of exchange right and is recorded in equity. Shares to be exchanged are 5 million treasury shares of KB Financial Group Inc. with the exchange price of 48,000. Exchange rights were fully exercised on February 14, 2024.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

17. Provisions

17.1 Details of provisions as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Provisions for credit losses of unused loan commitments		369,854		379,666
Provisions for credit losses of acceptances and guarantees		203,353		183,454
Provisions for credit losses of financial guarantee contracts		7,448		6,500
Provisions for restoration costs		158,412		155,214
Others		1,322,944		719,584

		2,062,011		1,444,418

17.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the three-month periods ended March 31, 2024 and 2023, are as follows:

(In millions of Korean won)


	2024
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired
Beginning		232,674			136,318			10,674			30,849			148,197			4,408
Transfer between stages:
Transfer to 12-month expected credit losses		19,697			(19,193	)		(504	)		13			(13	)		—
Transfer to lifetime expected credit losses		(8,009	)		8,064			(55	)		(213	)		213			—
Impairment		(195	)		(663	)		858			(52	)		(22	)		74
Provision (reversal) for credit losses		(17,949	)		5,696			(391	)		(29	)		2,435			11,131
Others (exchange differences, etc.)		1,582			1,260			(10	)		827			5,442			93

Ending		227,800			131,482			10,572			31,395			156,252			15,706

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

17.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)


	2023
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired			Impaired			12-month expected credit losses			Non- impaired			Impaired
Beginning		179,885			151,067			11,230			26,906			118,724			7,899
Transfer between stages:
Transfer to 12-month expected credit losses		40,637			(40,129	)		(508	)		215			(215	)		—
Transfer to lifetime expected credit losses		(6,773	)		7,000			(227	)		(72	)		173			(101	)
Impairment		(157	)		(919	)		1,076			—			(101	)		101
Provision (reversal) for credit losses		(6,071	)		5,763			1,359			2,145			20,163			341
Others (exchange differences, etc.)		706			536			(76	)		(3,559	)		2,551			4,233

Ending		208,227			123,318			12,854			25,635			141,295			12,473

17.3 Changes in provisions for credit losses of financial guarantee contracts for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Beginning		6,500		2,955
Provision		948		594
Others		—		(13	)

Ending		7,448		3,536

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

17.4 Changes in provisions for restoration costs for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Beginning		155,214			159,033
Provision		3,354			1,739
Reversal		(640	)		(844	)
Used		(870	)		(2,177	)
Unwinding of discount		1,326			1,600
Effect of changes in discount rate		28			56

Ending		158,412			159,407

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

17.5 Changes in other provisions for the three-month periods ended March 31, 2024 and 2023, are as follows:

(In millions of Korean won)


	2024
	Membership rewards program			Dormant accounts			Litigations			Others			Total
Beginning 1		47			3,359			185,667			530,511			719,584
Increase		20			171			6,416			936,347			942,954
Decrease		(15	)		(626	)		(32,438	)		(307,150	)		(340,229	)
Others		—			—			635			—			635

Ending 2		52			2,904			160,280			1,159,708			1,322,944

(In millions of Korean won)


	2023
	Membership rewards program			Dormant accounts			Litigations			Others			Total
Beginning		46			2,794			113,527			159,635			276,002
Increase		21			826			716			16,534			18,097
Decrease		(16	)		(818	)		(24,082	)		(16,391	)		(41,307	)
Others		—			—			3,007			(506	)		2,501

Ending		51			2,802			93,168			159,272			255,293

1	Includes other provisions of 333,290 million related to the Livelihood finance support program as of December 31, 2023.

2	Includes other provisions (non-operating expenses) of 861,544 million related to the voluntary compensation for equity-linked securities products tied to the performance of the Hang Seng China Enterprise Index as of March 31, 2024. The amount is subject to change upon finalization of loss amount.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

18. Net Defined Benefit Liabilities

18.1 Defined Benefit Plan

The Group operates defined benefit plans which have the following characteristics:

•

The Group has the obligation to pay the agreed benefits to all its current and former employees.

•

The Group assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities recognized in the consolidated statement of financial position are calculated by the independent actuary in accordance with actuarial valuation method. The defined benefit obligation is calculated using the projected unit credit method. Assumptions based on market data and historical data such as discount rate, future salary increase rate, mortality, and consumer price index are used which are updated annually.

Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends which may affect net defined benefit liabilities and future payments. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in the period incurred through other comprehensive income.

18.2 Details of net defined benefit liabilities as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Present value of defined benefit obligation		2,307,499			2,362,952
Fair value of plan assets		(2,616,945	)		(2,655,173	)

Net defined benefit liabilities *		(309,446	)		(292,221	)

As of March 31, 2024, the net defined benefit asset of 309,446 million is the amount obtained by subtracting the net defined benefit liability of 72,939 million from the net defined benefit asset of 382,385 million. Similarly, as of December 31, 2023, the net defined benefit asset of 292,221 million is the amount obtained by subtracting the net defined benefit liability of 81,869 million from the net defined benefit asset of 374,090 million.

18.3 Details of post-employment benefits recognized in profit or loss for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Current service cost		55,876			47,963
Net interest expense on net defined benefit liabilities		(3,270	)		(5,717	)

Post-employment benefits *		52,606			42,246

Includes post-employment benefits amounting to 5,368 million recognized as insurance service expenses, 847 million recognized as other operating expenses and 34 million recognized as advanced payments for the three-month period ended March 31, 2024, and 4,707 million recognized as insurance service expenses, 706 million recognized as other operating expenses and 34 million recognized as advanced payments for the three-month period ended March 31, 2023.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

19. Equity

19.1 Share Capital

19.1.1 Details of share capital as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won and in number of shares)	March 31, 2024		December 31, 2023
Type of share	Ordinary share		Ordinary share
Number of authorized shares		1,000,000,000		1,000,000,000
Par value per share (In Korean won)		5,000		5,000
Number of issued shares		403,511,072		403,511,072
Share capital *		2,090,558		2,090,558

*	Due to the retirement of shares deducted through retained earnings, it is different from the total par value of the shares issued.

19.1.2 Changes in outstanding shares for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In number of shares)	2024			2023
Beginning		378,663,825			389,634,335
Increase		5,000,000			—
Decrease		(900,000	)		(5,385,996	)

Ending		382,763,825			384,248,339

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

19.2 Hybrid Securities

Details of hybrid securities classified as equity as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)


Hybrid securities	Issuance date		Maturity		Interest rate (%) as of March 31, 2024	March 31, 2024		December 31, 2023
The 1-1st *		May 2, 2019		Perpetual bond	3.23		349,309		349,309
The 1-2nd		May 2, 2019		Perpetual bond	3.44		49,896		49,896
The 2-1st		May 8, 2020		Perpetual bond	3.30		324,099		324,099
The 2-2nd		May 8, 2020		Perpetual bond	3.43		74,812		74,812
The 3-1st		Jul. 14, 2020		Perpetual bond	3.17		369,099		369,099
The 3-2nd		Jul. 14, 2020		Perpetual bond	3.38		29,922		29,922
The 4-1st		Oct. 20, 2020		Perpetual bond	3.00		433,996		433,996
The 4-2nd		Oct. 20, 2020		Perpetual bond	3.28		64,855		64,855
The 5-1st		Feb. 19, 2021		Perpetual bond	2.67		419,071		419,071
The 5-2nd		Feb. 19, 2021		Perpetual bond	2.87		59,862		59,862
The 5-3rd		Feb. 19, 2021		Perpetual bond	3.28		119,727		119,727
The 6-1st		May 28, 2021		Perpetual bond	3.20		165,563		165,563
The 6-2nd		May 28, 2021		Perpetual bond	3.60		109,708		109,708
The 7-1st		Oct. 8, 2021		Perpetual bond	3.57		208,468		208,468
The 7-2nd		Oct. 8, 2021		Perpetual bond	3.80		59,834		59,834
The 8-1st		Feb. 16, 2022		Perpetual bond	4.00		442,970		442,970
The 8-2nd		Feb. 16, 2022		Perpetual bond	4.30		155,626		155,626
The 9-1st		May 12, 2022		Perpetual bond	4.68		478,829		478,829
The 9-2nd		May 12, 2022		Perpetual bond	4.97		19,906		19,906
The 10-1st		Aug. 26, 2022		Perpetual bond	4.90		407,936		407,936
The 10-2nd		Aug. 26, 2022		Perpetual bond	5.15		70,819		70,819
The 10-3rd		Aug. 26, 2022		Perpetual bond	5.30		19,944		19,944
The 11-1st		Feb. 03, 2023		Perpetual bond	4.90		548,681		548,681
The 11-2nd		Feb. 03, 2023		Perpetual bond	5.03		49,871		49,871
The 12nd		Feb. 28, 2024		Perpetual bond	4.39		399,060		—

						5,431,863		5,032,803

*	As a result of exercising the call option for the Company’s write-down contingent convertible bonds on May 2, 2024, 350,000 million was fully redeemed before maturity.

The above hybrid securities are early redeemable by the Group after 5 or 7 or 10 years from the issuance date. On the other hand, hybrid securities of 1,282,993 million issued by Kookmin Bank, hybrid securities of 232,647 million issued by KB Securities Co., Ltd. and hybrid securities of 49,800 million issued by KB Life Insurance Co., Ltd. are recognized as non-controlling interests and are early redeemable after 5 years from the issuance date and each interest payment date thereafter.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

19.3 Capital Surplus

Details of capital surplus as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Paid-in capital in excess of par value		13,190,274			13,190,274
Losses on sales of treasury shares		(477,358	)		(481,332	)
Other capital surplus		3,926,957			3,927,041
Consideration for exchange right of exchangeable bonds		—			11,933

		16,639,873			16,647,916

19.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Remeasurements of net defined benefit liabilities		(152,544	)		(161,295	)
Currency translation differences		416,791			261,752
Losses on financial instruments at fair value through other comprehensive income		(3,401,082	)		(2,735,499	)
Share of other comprehensive loss of associates and joint ventures		(3,460	)		(3,318	)
Gains (Losses) on cash flow hedging instruments		36,758			73,555
Losses on hedging instruments of net investments in foreign operations		(180,604	)		(129,401	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		(20,643	)		(11,800	)
Insurance finance income		4,836,207			5,001,171

		1,531,423			2,295,165

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

19.5 Retained Earnings

19.5.1 Details of retained earnings as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Legal reserves 1		1,219,809		1,007,686
Voluntary reserves		982,000		982,000
Unappropriated retained earnings 2		30,237,336		30,039,513

		32,439,145		32,029,199

With respect to the allocation of net profit earned in a fiscal term, the Parent Company must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 53 of the Financial Holding Company Act. This reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce accumulated deficit.

2	The regulatory reserve for credit losses the Group appropriated in retained earnings is 4,119,834 million and 4,320,506 million as of March 31, 2024 and December 31, 2023, respectively.

19.5.2 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 26 through 28 of Regulations on Supervision of Financial Holding Companies.

19.5.2.1 Details of regulatory reserve for credit losses as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Regulatory reserve for credit losses attributable to:
Shareholders of the Parent Company		4,119,834		4,320,506
Non-controlling interests		190,027		173,393

		4,309,861		4,493,899

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

19.5.2.2 Regulatory reserve for credit losses estimated to be appropriated and adjusted profit after provision of regulatory reserve for credit losses for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won, except for earnings per share)	2024			2023
Provision (reversal) of regulatory reserve for credit losses		(200,672	)		(313,637	)
Adjusted profit after provision of regulatory reserve for credit losses 1,2		1,201,735			1,781,642
Adjusted basic earnings per share after provision of regulatory reserve for credit losses 1		3,153			4,591
Adjusted diluted earnings per share after provision of regulatory reserve for credit losses 1		3,102			4,599

1	Adjusted profit after provision of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision of regulatory reserve for credit losses before tax to the net profit attributable to shareholders of the Parent Company.

2	After deducting dividends on hybrid securities

19.6 Treasury Shares

Changes in treasury shares for the three-month periods ended March 31, 2024 and 2023, are as follows:

(In millions of Korean won and in number of shares)


	2024
	Beginning		Acquisition		Disposal			Retirement		Ending
Number of treasury shares *		24,847,247		900,000		(5,000,000	)		—		20,747,247
Carrying amount		1,165,837		65,537		(234,600	)		—		996,774

(In millions of Korean won and in number of shares)


	2023
	Beginning		Acquisition		Retirement		Ending
Number of treasury shares		19,262,733		5,385,996		—		24,648,729
Carrying amount		836,188		271,745		—		1,107,933

*	5 million treasury shares deposited at the Korea Securities Depository for the exchange of exchangeable bonds was all disposed of on February 14, 2024 through the exercise of exchange rights.

In accordance with the resolution of the Board of Directors on July 25, 2023, the Group acquired 5,584,514 shares ( 300,000 million) and plans to retire of treasury stocks by July 31, 2024. In addition, The Group plans to acquire 320,000 million of its own shares and retire the treasury shares by August 7, 2024 pursuant to board resolutions dated February 7, 2024.

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

20. Net Interest Income

Details of interest income, interest expense, and net interest income for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Interest income
Due from financial institutions measured at fair value through profit or loss		913		485
Securities measured at fair value through profit or loss		372,264		330,092
Loans measured at fair value through profit or loss		3,576		2,900
Securities measured at fair value through other comprehensive income		623,512		511,736
Loans measured at fair value through other comprehensive income		13,125		7,575
Due from financial institutions measured at amortized cost		93,475		75,884
Securities measured at amortized cost		307,929		255,082
Loans measured at amortized cost		6,039,993		5,552,026
Insurance finance income		8,332		5,550
Others		150,843		125,253

		7,613,962		6,866,583

Interest expense
Deposits		2,631,776		2,342,923
Borrowings		645,113		582,311
Debentures		616,766		557,749
Insurance finance expense		395,951		402,838
Others		172,871		156,897

		4,462,477		4,042,718

Net interest income		3,151,485		2,823,865

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

21. Net Fee and Commission Income

Details of fee and commission income, fee and commission expense, and net fee and commission income for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Fee and commission income
Banking activity fees		47,463		45,928
Lending activity fees		28,193		25,327
Credit card and debit card related fees		418,739		402,588
Agent activity fees		55,992		54,535
Trust and other fiduciary fees		72,437		88,705
Fund management related fees		30,539		33,070
Acceptances and guarantees fees		22,254		15,731
Foreign currency related fees		81,175		75,005
Securities agency fees		28,843		30,218
Other business account commission on consignment		14,582		12,706
Commissions received on securities business		174,464		137,652
Lease fees		288,083		263,563
Others		133,536		149,674

		1,396,300		1,334,702

Fee and commission expense
Trading activity related fees *		12,824		11,760
Lending activity fees		9,092		9,073
Credit card and debit card related fees		204,629		207,452
Outsourcing related fees		33,464		43,309
Foreign currency related fees		25,333		20,535
Others		120,865		128,567

		406,207		420,696

Net fee and commission income		990,093		914,006

*	Fees from financial instruments at fair value through profit or loss

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

22. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

22.1 Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments at fair value through profit or loss for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Gains on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		872,699		1,489,471
Equity securities		282,413		319,666

		1,155,112		1,809,137

Derivatives held for trading:
Interest rate		2,346,403		3,298,710
Currency		5,437,728		4,014,823
Stock or stock index		514,218		922,046
Credit		17,759		10,858
Commodity		10,864		9,503
Others		23,779		68,260

		8,350,751		8,324,200

Financial liabilities at fair value through profit or loss		93,805		38,162
Other financial instruments		1,843		656

		9,601,511		10,172,155

Losses on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		609,137		286,461
Equity securities		132,773		65,800

		741,910		352,261

Derivatives held for trading:
Interest rate		2,045,669		3,497,435
Currency		5,738,349		4,098,293
Stock or stock index		626,449		677,621
Credit		18,132		13,814
Commodity		13,700		15,531
Others		65,165		68,441

		8,507,464		8,371,135

Financial liabilities at fair value through profit or loss		112,942		152,685
Other financial instruments		1,823		471

		9,364,139		8,876,552

Net gains (losses) on financial instruments at fair value through profit or loss		237,372		1,295,603

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

22.2 Net Gains or Losses on Financial Instruments Designated at Fair Value through Profit or Loss

Net gains or losses on financial instruments designated at fair value through profit or loss include gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments designated at fair value through profit or loss for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Gains on financial instruments designated at fair value through profit or loss
Financial liabilities designated at fair value through profit or loss		140,797		152,957

		140,797		152,957

Losses on financial instruments designated at fair value through profit or loss
Financial liabilities designated at fair value through profit or loss		129,036		675,153

		129,036		675,153

Net gains (losses) on financial instruments designated at fair value through profit or loss		11,761		(522,196	)

100

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

23. Net Other Operating Income and Expenses

Details of other operating income and expenses for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Other operating income
Gains on financial instruments at fair value through other comprehensive income:
Gains on redemption of financial instruments at fair value through other comprehensive income		971			532
Gains on disposal of financial instruments at fair value through other comprehensive income		46,328			46,369

		47,299			46,901

Gains on financial assets at amortized cost:
Gains on sale of loans measured at amortized cost		55,059			19,355
Gains on disposal of securities measured at amortized cost		96			115

		55,155			19,470

Gains on hedge accounting		151,435			164,463
Gains on foreign exchange transactions		1,393,777			3,110,232
Dividend income		29,791			20,381
Others		157,885			132,436

		1,835,342			3,493,883

Other operating expenses
Losses on financial instruments at fair value through other comprehensive income:
Losses on redemption of financial instruments at fair value through other comprehensive income		31			2
Losses on disposal of financial instruments at fair value through other comprehensive income		33,843			28,550

		33,874			28,552

Losses on financial assets at amortized cost:
Losses on sale of loans measured at amortized cost		2,378			4,773

		2,378			4,773

Losses on hedge accounting		124,997			191,188
Losses on foreign exchange transactions		1,218,048			2,803,202
Deposit insurance fee		144,527			142,696
Credit guarantee fund fee		82,705			73,773
Depreciation expenses of operating lease assets		178,440			173,383
Others		455,083			336,440

		2,240,052			3,754,007

Net other operating expenses		(404,710	)		(260,124	)

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

24. General and Administrative Expenses

24.1 Details of general and administrative expenses for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Expenses related to employee
Employee benefits—salaries		653,623		662,478
Employee benefits—others		248,842		230,410
Post-employment benefits—defined benefit plans		46,391		36,787
Post-employment benefits—defined contribution plans		9,057		7,695
Termination benefits		2,269		956
Share-based payments		59,901		11,361

		1,020,083		949,687

Depreciation and amortization		216,882		205,533

Other general and administrative expenses
Rental expense		21,212		24,975
Tax and dues		76,783		68,777
Communication		11,212		11,413
Electricity and utilities		12,628		9,858
Publication		1,726		1,992
Repairs and maintenance		9,234		11,188
Vehicle		4,263		4,210
Travel		4,140		3,829
Training		8,721		8,832
Service fees		54,001		52,430
Electronic data processing expenses		88,265		95,359
Advertising		35,318		43,992
Others		63,768		74,211

		391,271		411,066

		1,628,236		1,566,286

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

24.2 Share-based Payments

24.2.1 Stock grants

The Group changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

24.2.1.1 Details of stock grants linked to long-term performance as of March 31, 2024, are as follows:


(In number of shares)	Grant date	Number of granted shares 1		Vesting conditions 2
KB Financial Group Inc.
Series 34	Feb. 1, 2022		654	Services fulfillment, market performance 3 30%, and non-market performance 4 70%
Series 36	Jan. 1, 2023		25,717	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 37	Apr. 1, 2023		2,087	Services fulfillment, market performance 3 30%, and non-market performance 4 70%
Series 38	Nov. 21, 2023		55,547	Services fulfillment, market performance 3 35%, and non-market performance 4 65%
Series 39	Jan. 1, 2024		93,783	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Deferred grant in 2015			2,123	Satisfied
Deferred grant in 2020			284	Satisfied
Deferred grant in 2021			9,060	Satisfied
Deferred grant in 2022			26,240	Satisfied
Deferred grant in 2023			85,663	Satisfied

			301,158

Kookmin Bank
Series 85	Jan. 1, 2022		6,740	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100% Services fulfillment, market performance 3 30%, and EPS & Asset Quality 5 70%
Series 86	Feb. 1, 2022		1,525	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 88	Mar. 14, 2022		5,179	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 90	Jul. 18, 2022		3,716	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 91	Aug. 24, 2022		7,277	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 92	Jan. 1, 2023		150,035	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 94	Apr. 1, 2023		5,997	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 96	Jan. 1, 2024		367,067	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

24.2.1.1 Details of stock grants linked to long-term performance as of March 31, 2024, are as follows: (cont’d)


(In number of shares)	Grant date	Number of granted shares 1		Vesting conditions 2
Deferred grant in 2021			52,347	Satisfied
Deferred grant in 2022			58,485	Satisfied
Deferred grant in 2023			138,055	Satisfied
Deferred grant in 2024			1,902	Satisfied

			798,325

Other subsidiaries
Stock granted in 2012			160	Services fulfillment, market performance 3 0~50%, and non-market performance 4 50~100%
Stock granted in 2013			219
Stock granted in 2014			1,028
Stock granted in 2015			1,287
Stock granted in 2016			234
Stock granted in 2017			5,834
Stock granted in 2018			14,316
Stock granted in 2019			18,106
Stock granted in 2020			54,131
Stock granted in 2021			54,206
Stock granted in 2022			152,354
Stock granted in 2023			383,947
Stock granted in 2024			234,922

			920,744

			2,020,227

1	Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of March 31, 2024 (Deferred grants are residual shares vested as of March 31, 2024).

Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.

3	Relative TSR (Total Shareholder Return): [(Fair value at the end of the contract—Fair value at the beginning of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract.

4	Performance results of company and employee

5	EPS, Asset Quality

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

24.2.1.2 Details of stock grants linked to short-term performance as of March 31, 2024, are as follows:


(In number of shares)	Estimated number of vested shares *		Vesting conditions
KB Financial Group Inc.
Stock granted in 2015		1,078	Satisfied
Stock granted in 2016		2,076	Satisfied
Stock granted in 2020		156	Satisfied
Stock granted in 2021		11,857	Satisfied
Stock granted in 2022		29,285	Satisfied
Stock granted in 2023		41,923	Satisfied
Stock granted in 2024		7,183	Proportional to service period
Kookmin Bank
Stock granted in 2016		706	Satisfied
Stock granted in 2020		8,351	Satisfied
Stock granted in 2021		53,465	Satisfied
Stock granted in 2022		123,292	Satisfied
Stock granted in 2023		118,637	Satisfied
Stock granted in 2024		27,768	Proportional to service period
Other subsidiaries
Stock granted in 2015		2,672	Satisfied
Stock granted in 2016		12,312	Satisfied
Stock granted in 2017		27,164	Satisfied
Stock granted in 2018		66,024	Satisfied
Stock granted in 2019		69,405	Satisfied
Stock granted in 2020		123,145	Satisfied
Stock granted in 2021		346,018	Satisfied
Stock granted in 2022		405,934	Satisfied
Stock granted in 2023		616,556	Satisfied
Stock granted in 2024		32,851	Proportional to service period

		2,127,858

24.2.1.3 The accrued expenses for share-based payments related to stock grants are 209,361 million and 202,243 million as of March 31, 2024 and December 31, 2023, respectively, and the compensation costs amounting to 67,878 million and 10,870 million were recognized for the three-month periods ended March 31, 2024 and 2023, respectively.

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

24.2.2 Mileage stock

24.2.2.1 Details of mileage stock as of March 31, 2024, are as follows:


(In number of shares) Grant date	Number of granted shares 1		Expected exercise period (years) 2		Remaining shares
Stock granted in 2019
Nov. 1, 2019		119		0.00~0.58		48
Nov. 8, 2019		14		0.00~0.60		6
Dec. 5, 2019		56		0.00~0.68		39
Dec. 6, 2019		84		0.00~0.68		25
Dec. 31, 2019		87		0.00~0.75		22
Stock granted in 2020
Jan. 18, 2020		28,645		0.00~0.80		12,308
May 12, 2020		46		0.00~1.11		38
Jun. 30, 2020		206		0.00~1.25		147
Aug. 26, 2020		40		0.00~1.40		27
Oct. 29, 2020		160		0.00~1.58		107
Nov. 6, 2020		45		0.00~1.60		37
Nov. 30, 2020		35		0.00~1.67		29
Dec. 2, 2020		57		0.00~1.67		26
Dec. 4, 2020		154		0.00~1.68		53
Dec. 30, 2020		88		0.00~1.75		47
Stock granted in 2021
Jan. 15, 2021		28,156		0.00~1.79		13,759
Apr. 5, 2021		89		0.00~2.01		53
Jul. 1, 2021		54		0.00~2.25		36
Jul. 2, 2021		11		0.00~2.25		11
Jul. 27, 2021		70		0.00~2.32		48
Nov. 1, 2021		71		0.00~2.59		53
Nov. 16, 2021		53		0.00~2.63		13
Dec. 3, 2021		91		0.00~2.67		62
Dec. 6, 2021		87		0.00~2.68		51
Dec. 30, 2021		76		0.00~2.75		57
Stock granted in 2022
Jan. 14, 2022		20,909		0.00~2.79		13,937
Apr. 4, 2022		65		0.00~3.01		49
Apr. 19, 2022		33		0.00~3.05		29
Jul. 1, 2022		62		0.00~3.25		0
Aug. 3, 2022		62		0.00~3.34		15
Aug. 9, 2022		80		0.00~3.36		52
Oct. 19, 2022		55		0.00~3.55		23
Nov. 1, 2022		177		0.00~3.59		127
Dec. 1, 2022		49		0.00~3.67		49
Dec. 2, 2022		42		0.00~3.67		15
Dec. 6, 2022		88		0.00~3.68		57
Dec. 12, 2022		114		0.00~3.70		67
Dec. 15, 2022		42		0.00~3.71		37
Dec. 30, 2022		114		0.00~3.75		63

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

24.2.2.1 Details of mileage stock as of March 31, 2024, are as follows: (cont’d)


(In number of shares) Grant date	Number of granted shares 1		Expected exercise period (years) 2		Remaining shares
Stock granted in 2023
Jan. 9, 2023		23,071		0.00~3.78		15,651
Jan. 14, 2023		742		0.00~3.79		551
Mar. 7, 2023		58		0.00~3.93		58
Mar. 27, 2023		58		0.00~3.99		58
Mar. 31, 2023		97		0.00~4.00		97
May 4, 2023		105		0.00~4.09		105
Jul. 3, 2023		63		0.00~4.25		63
Jul. 26, 2023		38		0.00~4.32		37
Jul. 31, 2023		220		0.00~4.33		203
Oct. 20, 2023		80		0.00~4.55		75
Nov. 1, 2023		78		0.00~4.59		78
Dec. 1, 2023		49		0.00~4.67		49
Dec. 13, 2023		115		0.00~4.70		115
Dec. 14, 2023		57		0.00~4.70		57
Dec. 27, 2023		19		0.00~4.74		19
Dec. 28, 2023		162		0.00~4.74		162
Dec. 29, 2023		95		0.00~4.75		95
Stock granted in 2024
Jan. 9, 2024		611		0.00~4.78		595
Jan. 10, 2024		16,912		0.00~4.78		16,334
Jan. 31, 2024		297		0.00~4.84		298

		123,413				76,322

Mileage stock is exercisable for four years after one year from the grant date at the closing price of the end of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a one-year grace period.

2	Assessed based on the stock price as of March 31, 2024. These shares are vested immediately at grant date.

24.2.2.2 The accrued expenses for share-based payments related to mileage stock are 5,304 million and 3,910 million as of March 31, 2024 and December 31, 2023, respectively. The compensation costs amounting to 2,162 million and 1,351 million were recognized as expenses for the three-month periods ended March 31, 2024 and 2023, respectively.

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

25. Income Tax Expense

25.1 Details of income tax expense for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Income tax payable
Current income tax expense		245,459			(670,583	)
Adjustments of income tax of prior years’ recognized in current tax		22,675			(11,223	)

		268,134			(681,806	)

Changes in deferred income tax assets and liabilities *		(236,221	)		1,347,744

Income tax recognized directly in equity and others
Remeasurements of net defined benefit liabilities		(3,105	)		(1,849	)
Currency translation differences		(10,202	)		(4,505	)
Net gains or losses on financial assets at fair value through other comprehensive income		235,484			(547,924	)
Share of other comprehensive income or loss of associates and joint ventures		51			(2,570	)
Gains or losses on cash flow hedging instruments		(4,655	)		(3,431	)
Gains or losses on hedging instruments of net investments in foreign operations		18,367			10,816
Gain on revaluation of property, plant and equipment		—			84
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		3,172			18,002
Insurance finance income		59,172			382,718

Others		14,073			16,296
Income tax expense		344,270			533,575

26. Dividends

The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2023, amounting to 587,006 million ( 1,530 per share) were declared at the annual general shareholders’ meeting on March 22, 2024. The Group’s consolidated financial statements as of and for the three-month period ended March 31, 2024, reflect this dividend payable. Meanwhile, the annual dividends and quarterly dividends paid in 2023 were 564,970 million ( 1,450 per share) and 586,931 million ( 510 per share), respectively.

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

27. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Beginning			Changes except for reclassifi- cation			Reclassification to profit or loss			Transfer within equity		Tax effect			Ending
Remeasurements of net defined benefit liabilities		(161,295	)		11,856			—			—		(3,105	)		(152,544	)
Currency translation differences		261,752			165,241			—			—		(10,202	)		416,791
Losses on financial instruments at fair value through other comprehensive income		(2,735,499	)		(886,066	)		(20,587	)		5,586		235,484			(3,401,082	)
Share of other comprehensive loss of associates and joint ventures		(3,318	)		(193	)		—			—		51			(3,460	)
Gains (losses) on cash flow hedging instruments		73,555			31,166			(63,308	)		—		(4,655	)		36,758
Losses on hedging instruments of net investments in foreign operations		(129,401	)		(69,570	)		—			—		18,367			(180,604	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		(11,800	)		(12,015	)		—			—		3,172			(20,643	)
Finance gains or losses on insurance contract assets (liabilities)		5,001,171			(224,136	)		—			—		59,172			4,836,207

		2,295,165			(983,717	)		(83,895	)		5,586		298,284			1,531,423

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

27. Accumulated Other Comprehensive Income (Loss) (cont’d)

Changes in accumulated other comprehensive income (loss) for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2023
	Beginning			Changes except for reclassifi- cation			Reclassification to profit or loss			Transfer within equity		Tax effect			Ending
Remeasurements of net defined benefit liabilities		(88,770	)		6,881			—			—		(1,849	)		(83,738	)
Currency translation differences		254,446			109,984			—			—		(4,505	)		359,925
Losses on financial instruments at fair value through other comprehensive income		(6,081,560	)		2,058,906			14,180			758		(547,924	)		(4,555,640	)
Share of other comprehensive loss of associates and joint ventures		(3,342	)		(1,590	)		—			—		(2,570	)		(7,502	)
Gains (losses) on cash flow hedging instruments		19,632			(15,587	)		(16,447	)		—		(3,431	)		(15,833	)
Losses on hedging instruments of net investments in foreign operations		(114,742	)		(40,949	)		—			—		10,816			(144,875	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk		41,063			(67,977	)		—			—		18,002			(8,912	)
Gains on revaluation of property and equipment		—			(84	)		—			—		84			—
Finance gains or losses on insurance contract assets (liabilities)		7,223,195			(1,425,184	)		—			—		382,718			6,180,729

		1,249,922			624,400			(2,267	)		758		(148,659	)		1,724,154

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

28. Earnings per Share

28.1 Basic Earnings per Share

Basic earnings per share is calculated by dividing profit attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding.

28.1.1 Weighted average number of ordinary shares outstanding


(In number of shares)	2024			2023
	Number of shares			Number of shares
Number of issued ordinary shares		403,511,072			408,897,068
Number of treasury shares *		(20,747,247	)		(24,648,729	)

Average number of ordinary shares outstanding		381,106,133			388,114,802

*	Initial date of treasury stock that was deducted by retirement is April 4, 2023.

28.1.2 Basic earnings per share


(In Korean won and in number of shares)	2024			2023
Profit attributable to shareholders of the Parent Company		1,049,133,025,995			1,508,708,638,102
Deduction: Dividends on hybrid securities		(48,070,325,000	)		(40,704,075,000	)

Profit attributable to ordinary equity holders of the Parent Company (A)		1,001,062,700,995			1,468,004,563,102
Weighted average number of ordinary shares outstanding (B)		381,106,133			388,114,802
Basic earnings per share (A/B)		2,627			3,782

28.2 Diluted Earnings per Share

Diluted earnings per share is calculated through increasing the weighted average number of ordinary shares outstanding by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Group has dilutive potential ordinary shares such as stock grants and ordinary share exchange right of exchangeable bonds.

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price during the period) based on the monetary value of stock grants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the settlement of stock grants.

Exchangeable bonds are included in potential ordinary shares from the exercisable date of the exchange right, and interest expense after tax for the period is added to profit for diluted earnings per share.

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

28.2.1 Adjusted profit for diluted earnings per share


(In Korean won)	2024			2023
Profit attributable to shareholders of the Parent Company		1,049,133,025,995			1,508,708,638,102
Deduction: Dividends on hybrid securities		(48,070,325,000	)		(40,704,075,000	)

Profit attributable to ordinary equity holders of the Parent Company		1,001,062,700,995			1,468,004,563,102
Adjustments: Interest expense on exchangeable bonds		306,631,690			604,566,012

Adjusted profit for diluted earnings per share		1,001,369,332,685			1,468,609,129,114

28.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share


(In number of shares)	2024		2023
Weighted average number of ordinary shares outstanding		381,106,133		388,114,802
Adjustment:
Stock grants		4,036,449		4,129,985
Exchangeable bonds		2,417,582		5,000,000

Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share		387,560,164		397,244,787

28.2.3 Diluted earnings per share


(In Korean won and in number of shares)	2024		2023
Adjusted profit for diluted earnings per share		1,001,369,332,685		1,468,609,129,114
Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share		387,560,164		397,244,787

Diluted earnings per share		2,584		3,697

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29. Insurance Contracts

29.1 Insurance Contracts Assets and Liabilities

29.1.1 Details of insurance contract assets and insurance contract liabilities as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024
	Life insurance												Non-life insurance
	Death			Health			Pension		Variables		Compound		Long-term		General		Automobile		Overseas
Insurance contract assets		—			—			—		—		—		260,634		7,785		—		—
Insurance contract liabilities		12,574,094			466,061			6,844,575		6,351,510		—		20,490,938		1,537,083		2,191,144		248,884

Net insurance contract liabilities		12,574,094			466,061			6,844,575		6,351,510		—		20,230,304		1,529,298		2,191,144		248,884

Reinsurance contract assets		407			—			—		—		5,462		444,345		876,267		9,568		216,887
Reinsurance contract liabilities		15,520			17,839			—		—		122		—		3,872		—		—

Net reinsurance contract assets (liabilities)		(15,113	)		(17,839	)		—		—		5,340		444,345		872,395		9,568		216,887

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.1.1 Details of insurance contract assets and insurance contract liabilities as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)	December 31, 2023
	Life insurance												Non-life insurance
	Death			Health			Pension		Variables		Compound		Long-term		General		Automobile		Overseas
Insurance contract assets		—			—			—		—		—		219,782		9,858		—		—
Insurance contract liabilities		12,184,805			449,459			6,992,772		6,256,123		—		20,429,882		1,505,850		2,224,924		264,737

Net insurance contract liabilities		12,184,805			449,459			6,992,772		6,256,123		—		20,210,100		1,495,992		2,224,924		264,737

Reinsurance contract assets		365			—			—		—		5,545		455,016		957,040		10,513		226,689
Reinsurance contract liabilities		14,913			17,275			—		—		—		—		3,842		—		—

Net reinsurance contract assets (liabilities)		(14,548	)		(17,275	)		—		—		5,545		455,016		953,198		10,513		226,689

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.2 Details of insurance service results for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Life insurance														Non-life insurance								Total
	Death			Health			Pension			Variables			Compound		Long-term		General		Automobile		Overseas		Total
Insurance revenue:
Insurance contracts not applying the premium allocation approach:
Expected insurance claims and expenses		65,874			8,752			10,085			22,670			—		1,114,813		—		—		—		1,222,194
Changes in risk adjustment due to release of risk		4,643			691			1,622			1,347			—		42,062		—		—		—		50,365
Changes in contractual service margin recognized in profit or loss for the services provided		67,584			4,740			11,692			22,207			—		215,162		—		—		—		321,385
Recovery of insurance acquisition cash flows		7,092			811			3,970			2,657			—		49,665		—		—		—		64,195
Other insurance revenues		(836	)		(140	)		(329	)		(147	)		—		—		—		—		—		(1,452	)

		144,357			14,854			27,040			48,734			—		1,421,702		—		—		—		1,656,687

Insurance revenue for insurance contracts applying the premium allocation approach		—			—			—			—			—		—		326,395		695,844		10,548		1,032,787

Total insurance revenue		144,357			14,854			27,040			48,734			—		1,421,702		326,395		695,844		10,548		2,689,474

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.2 Details of insurance service results for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2024
	Life insurance															Non-life insurance												Total
	Death			Health			Pension			Variables			Compound			Long-term			General			Automobile			Overseas			Total
Insurance service expenses:
Incurred claims and expenses		(39,119	)		(7,312	)		(7,782	)		(19,878	)		—			(1,110,357	)		(206,400	)		(586,771	)		(5,574	)		(1,983,193	)
Amortization of insurance acquisition cash flows		(7,092	)		(811	)		(3,970	)		(2,657	)		—			(46,668	)		(34,629	)		(79,163	)		(623	)		(175,613	)
Changes in fulfilment cash flows relating to incurred claims		(10,288	)		(1,489	)		(1,735	)		(2,530	)		—			146,669			74,617			(11,892	)		—			193,352
Losses on onerous contracts and reversals		665			5,421			(599	)		8,515			—			(17,820	)		(289	)		—			—			(4,107	)
Other insurance service expenses		(1,019	)		(179	)		(1,945	)		(523	)		—			—			—			—			—			(3,666	)

Insurance service expenses for insurance contracts not applying the premium allocation approach		(56,853	)		(4,370	)		(16,031	)		(17,073	)		—			(1,028,176	)		—			—			—			(1,122,503	)
Insurance service expenses for insurance contracts applying the premium allocation approach		—			—			—			—			—			—			(166,701	)		(677,826	)		(6,197	)		(850,724	)

Total insurance service expenses		(56,853	)		(4,370	)		(16,031	)		(17,073	)		—			(1,028,176	)		(166,701	)		(677,826	)		(6,197	)		(1,973,227	)

Reinsurance income:
Recovery of incurred reinsurance claims and expenses		402			309			—			—			561			22,243			71,811			20			15,050			110,396
Changes in fulfilment cash flows relating to incurred claims		304			111			—			—			864			(19,277	)		(57,656	)		987			—			(74,667	)
Recognition and reversal of loss-recovery component		96			(73	)		—			—			(1,420	)		3,493			259			—			—			2,355

Reinsurance income for reinsurance contracts not applying the premium allocation approach		802			347			—			—			5			6,375			1			(1	)		—			7,529
Reinsurance income for reinsurance contracts applying the premium allocation approach		—			—			—			—			—			84			14,413			1,008			15,050			30,555

Total reinsurance income		802			347			—			—			5			6,459			14,414			1,007			15,050			38,084

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.2 Details of insurance service results for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2024
	Life insurance													Non-life insurance												Total
	Death			Health			Pension		Variables		Compound			Long-term			General			Automobile			Overseas			Total
Reinsurance expense:
Reinsurance contracts not applying the premium allocation approach:
Expected recovery of incurred claims and expenses		(295	)		(469	)		—		—		(298	)		(43,277	)		—			—			—			(44,339	)
Changes in risk adjustment due to release of risk		(44	)		(23	)		—		—		(10	)		(2,323	)		—			—			—			(2,400	)
Contractual service margin recognized in profit or loss for the services received		(481	)		35			—		—		181			(494	)		—			—			—			(759	)
Other reinsurance expenses		5			5			—		—		126			—			—			—			—			136

		(815	)		(452	)		—		—		(1	)		(46,094	)		—			—			—			(47,362	)

Reinsurance expenses for reinsurance contracts applying the premium allocation approach		—			—			—		—		—			(602	)		(145,460	)		(1,441	)		(21,087	)		(168,590	)

Total reinsurance expense		(815	)		(452	)		—		—		(1	)		(46,696	)		(145,460	)		(1,441	)		(21,087	)		(215,952	)

Total insurance service result		87,491			10,379			11,009		31,661		4			353,289			28,648			17,584			(1,686	)		538,379

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.2 Details of insurance service results for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Life insurance														Non-life insurance								Total
	Death			Health			Pension			Variables			Compound		Long-term		General		Automobile		Overseas		Total
Insurance revenue:
Insurance contracts not applying the premium allocation approach:
Expected insurance claims and expenses		62,479			8,083			9,510			21,411			—		1,010,661		—		—		—		1,112,144
Changes in risk adjustment due to release of risk		4,159			714			1,290			1,174			—		45,090		—		—		—		52,427
Contractual service margin recognized in profit or loss for the services provided		71,328			4,545			9,089			22,200			—		197,115		—		—		—		304,277
Recovery of insurance acquisition cash flows		1,554			643			1,218			1,011			—		39,045		—		—		—		43,471
Other insurance revenues		(256	)		(54	)		(116	)		(286	)		—		—		—		—		—		(712	)

		139,264			13,931			20,991			45,510			—		1,291,911		—		—		—		1,511,607

Insurance revenue for insurance contracts applying the premium allocation approach		—			—			—			—			—		—		308,606		656,324		22,011		986,941

Total insurance revenue		139,264			13,931			20,991			45,510			—		1,291,911		308,606		656,324		22,011		2,498,548

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.2 Details of insurance service results for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Life insurance															Non-life insurance												Total
	Death			Health			Pension			Variables			Compound			Long-term			General			Automobile			Overseas			Total
Insurance service expenses:
Incurred claims and expenses		(51,467	)		(7,373	)		(7,250	)		(20,362	)		—			(1,003,510	)		(339,518	)		(540,391	)		(24,941	)		(1,994,812	)
Amortization of insurance acquisition cash flows		(1,554	)		(643	)		(1,218	)		(1,011	)		—			(35,311	)		(26,589	)		(74,436	)		(683	)		(141,445	)
Changes in fulfilment cash flows relating to incurred claims		(7,820	)		(3,064	)		(1,871	)		(2,986	)		—			(4,789	)		88,913			(5,522	)		—			62,861
Losses on onerous contracts and reversals		(1,341	)		148			(597	)		6,779			—			(2,980	)		769			—			—			2,778
Other insurance service expenses		(1,405	)		(62	)		(872	)		(269	)		—			—			—			—			—			(2,608	)

Insurance service expenses for insurance contracts not applying the premium allocation approach		(63,587	)		(10,994	)		(11,808	)		(17,849	)		—			(1,046,590	)		—			—			—			(1,150,828	)
Insurance service expenses for insurance contracts applying the premium allocation approach		—			—			—			—			—			—			(276,425	)		(620,349	)		(25,624	)		(922,398	)

Total insurance service expenses		(63,587	)		(10,994	)		(11,808	)		(17,849	)		—			(1,046,590	)		(276,425	)		(620,349	)		(25,624	)		(2,073,226	)

Reinsurance income:
Recovery of incurred reinsurance claims and expenses		42			284			—			—			152			32,639			195,307			311			6,022			234,757
Changes in fulfilment cash flows relating to incurred claims		(227	)		(129	)		—			—			(173	)		5,815			(76,205	)		422			—			(70,497	)
Recognition and reversal of loss-recovery component		(22	)		(2	)		—			—			189			212			(51	)		—			—			326

Reinsurance income for reinsurance contracts not applying the premium allocation approach		(207	)		153			—			—			168			37,930			—			—			—			38,044
Reinsurance income for reinsurance contracts applying the premium allocation approach		—			—			—			—			—			736			119,051			733			6,022			126,542

Total reinsurance income		(207	)		153			—			—			168			38,666			119,051			733			6,022			164,586

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.2 Details of insurance service results for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Life insurance													Non-life insurance												Total
	Death			Health			Pension		Variables		Compound			Long-term			General			Automobile			Overseas			Total
Reinsurance expense:
Reinsurance contracts not applying the premium allocation approach:
Expected recovery of incurred claims and expenses		(223	)		(541	)		—		—		(332	)		(36,635	)		—			—			—			(37,731	)
Changes in risk adjustment due to release of risk		(32	)		(37	)		—		—		(14	)		(2,070	)		—			—			—			(2,153	)
Changes in contractual service margin recognized in profit or loss for the services received		(245	)		(227	)		—		—		(270	)		1,330			—			—			—			588
Other reinsurance expenses		4			2			—		—		42			—			—			—			—			48

		(496	)		(803	)		—		—		(574	)		(37,375	)		—			—			—			(39,248	)

Reinsurance expenses for reinsurance contracts applying the premium allocation approach		—			—			—		—		—			(252	)		(147,900	)		(2,923	)		(7,178	)		(158,253	)

Total reinsurance expense		(496	)		(803	)		—		—		(574	)		(37,627	)		(147,900	)		(2,923	)		(7,178	)		(197,501	)

Total insurance service result		74,974			2,287			9,183		27,661		(406	)		246,360			3,332			33,785			(4,769	)		392,407

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.3 Details of insurance finance income and expenses for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Life insurance						Non-life insurance									Total
	Variables			Others			Long-term			General and Automobile			Overseas			Total
Insurance finance income (expenses)
Insurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)		(23,855	)		(182,975	)		(184,028	)		(1,452	)		—			(392,310	)
Effect of changes in discount rates and financial assumptions		(10,650	)		6,424			—			—			—			(4,226	)
Effect of exchange rate fluctuations		(4,070	)		(10,500	)		—			(20,059	)		—			(34,629	)
Changes in the fair value of the underlying assets of insurance contract with direct participation features		(80,064	)		—			—			—			—			(80,064	)
Other insurance finance income (expenses)		—			—			(528	)		(710	)		(112	)		(1,350	)

		(118,639	)		(187,051	)		(184,556	)		(22,221	)		(112	)		(512,579	)

Insurance finance income (expenses) recognized in other comprehensive income		(15,847	)		(93,584	)		(118,422	)		(4,482	)		—			(232,335	)

Total insurance finance income (expenses)		(134,486	)		(280,635	)		(302,978	)		(26,703	)		(112	)		(744,914	)

Reinsurance finance income (expenses)
Reinsurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)		—			(259	)		4,418			532			—			4,691
Effect of changes in discount rates and financial assumptions		—			(24	)		—			—			—			(24	)
Effect of exchange rate fluctuations		—			(35	)		—			17,455			—			17,420
Other reinsurance finance income (expenses)		—			—			720			(10,277	)		4			(9,553	)

		—			(318	)		5,138			7,710			4			12,534

Reinsurance finance income (expenses) recognized in other comprehensive income		—			(606	)		3,949			4,856			—			8,199

Total reinsurance finance income (expenses)		—			(924	)		9,087			12,566			4			20,733

Total		(134,486	)		(281,559	)		(293,891	)		(14,137	)		(108	)		(724,181	)

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

29.3 Details of insurance finance income and expenses for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Life insurance						Non-life insurance									Total
	Variables			Others			Long-term			General and Automobile			Overseas			Total
Insurance finance income (expenses)
Insurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)		(22,181	)		(190,969	)		(186,952	)		(1,291	)		—			(401,393	)
Effect of changes in discount rates and financial assumptions		(65,683	)		31,289			—			—			—			(34,394	)
Effect of exchange rate fluctuations		(2,700	)		(4,562	)		—			(12,276	)		—			(19,538	)
Changes in the fair value of the underlying assets of insurance contract with direct participation features		(223,638	)		—			—			—			—			(223,638	)
Other insurance finance income (expenses)		—			—			271			(645	)		53			(321	)

		(314,202	)		(164,242	)		(186,681	)		(14,212	)		53			(679,284	)

Insurance finance income (expenses) recognized in other comprehensive income		(34,227	)		(663,224	)		(744,916	)		(1,704	)		—			(1,444,071	)

Total insurance finance income (expenses)		(348,429	)		(827,466	)		(931,597	)		(15,916	)		53			(2,123,355	)

Reinsurance finance income (expenses)
Reinsurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)		—			(255	)		3,578			782			—			4,105
Effect of changes in discount rates and financial assumptions		—			(157	)		—			—			—			(157	)
Effect of exchange rate fluctuations		—			(19	)		—			9,028			—			9,009
Other reinsurance finance income (expenses)		—			—			75			(91	)		(5	)		(21	)

		—			(431	)		3,653			9,719			(5	)		12,936

Reinsurance finance income (expenses) recognized in other comprehensive income		—			(1,611	)		19,433			1,124			—			18,946

Total reinsurance finance income (expenses)		—			(2,042	)		23,086			10,843			(5	)		31,882

Total		(348,429	)		(829,508	)		(908,511	)		(5,073	)		48			(2,091,473	)

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

30. Statements of Cash Flows

30.1 Details of cash and cash equivalents as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Cash		2,302,065			2,114,596
Checks issued by other banks		239,224			142,437
Due from the Bank of Korea		17,618,617			15,362,056
Due from other financial institutions		10,349,363			12,217,222

		30,509,269			29,836,311

Due from financial institutions measured at fair value through profit or loss		56,157			79,810

		30,565,426			29,916,121

Deduction:
Restricted due from financial institutions		(3,193,776	)		(3,273,428	)
Due from financial institutions with original maturities over three months		(671,295	)		(816,105	)

		(3,865,071	)		(4,089,533	)

		26,700,355			25,826,588

30.2 Cash inflows and outflows from income tax, interest, and dividends for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	Activities	2024		2023
Income tax paid	Operating		209,894		195,493
Interest received	Operating		7,142,710		6,648,075
Interest paid	Operating		3,776,007		2,631,378
Dividends received	Operating		94,401		73,944
Dividends paid	Financing		48,070		40,703

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

31. Contingent Liabilities and Commitments

31.1 Details of acceptances and guarantees as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Confirmed acceptances and guarantees
Confirmed acceptances and guarantees in Korean won:
Acceptances and guarantees for KB purchasing loan		140,751		148,786
Others		976,356		945,027

		1,117,107		1,093,813

Confirmed acceptances and guarantees in foreign currencies:
Acceptances of letter of credit		397,583		277,370
Letter of guarantees		62,266		47,665
Bid bond		20,739		12,549
Performance bond		1,289,771		1,111,589
Refund guarantees		3,602,865		3,561,227
Others		3,891,236		3,572,149

		9,264,460		8,582,549

Financial guarantee contracts:
Acceptances and guarantees for mortgage		80,967		94,027
Overseas debt guarantees		472,927		470,579
International financing guarantees in foreign currencies		635,404		616,554

		1,189,298		1,181,160

		11,570,865		10,857,522

Unconfirmed acceptances and guarantees
Guarantees of letter of credit		2,881,140		2,785,484
Refund guarantees		1,271,983		1,301,376

		4,153,123		4,086,860

		15,723,988		14,944,382

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

31.2 Details of commitments as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Commitments
Corporate loan commitments		54,288,668		55,688,438
Retail loan commitments		58,433,257		56,142,850
Credit line of credit cards		84,866,414		83,325,862
Purchase of other securities		8,458,056		8,749,029

		206,046,395		203,906,179

Financial guarantee contracts
Credit line		5,679,300		5,901,644
Purchase of securities		727,200		745,401

		6,406,500		6,647,045

		212,452,895		210,553,224

31.3 Other Matters

a) The Group has 84 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of 1,498,061 million, and 295 pending lawsuits as a defendant (excluding simple lawsuits related to the collection or management of loans) with aggregate claims amount of 1,240,892 million, which arose in the normal course of the business, as of March 31, 2024. Details of major pending lawsuits in which the Group is a defendant are as follows:

(In number of cases, in millions of Korean won)

Company

Lawsuits

No. of
cases

Amount

Description of the lawsuits

Status of the lawsuits

Kookmin Bank

Request for a return of redemption amount

56,579

Kookmin Bank invested the assets entrusted by OO Asset Management and OO Investment Trust Management in the Fairfield Sentry Limited (the Fairfield Sentry Limited reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff) and then redeemed them and returned them to the beneficiaries. Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses.

Bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit against Kookmin Bank seeking to return the amount of redemptions received by Kookmin Bank through Fairfield Sentry Limited.

Application for dismissal by the defendant has been denied, and further proceedings are scheduled. [Related litigation is in progress at the New York Southern District Federal Bankruptcy Court (10-3777) at the written complaint review stage]

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

31.3 Other Matters (cont’d)

Company

Lawsuits

No. of
cases

Amount

Description of the lawsuits

Status of the lawsuits

Kookmin Bank

Expropriation of long-term leasehold rights

336,700

Kookmin Bank invested assets entrusted by OO Asset Management Co., Ltd. in loans that are directly or indirectly collateralized by long-term leasehold rights of the building and land (hereinafter referred to as “the real estate in this case”) of Union Station in Washington, D.C., the United States.

The Plaintiff, who is the operator of the railway facility, filed this lawsuit against those concerned with the real estate in this case, including Kookmin Bank, to expropriate the real estate in this case and determine indemnity.

Kookmin Bank submitted the response letter and will proceed with the process in the future.

Return of unjust enrichment

147,130

As Russia’s OOO Bank, which was trading with Kookmin Bank through a foreign exchange account, was listed on the SDN (Specifically Designated Nationals) list of the Office of Foreign Assets Control (OFAC) under the U.S. Treasury Department, Kookmin Bank froze the foreign currency account in the name of the OOO Bank.

Accordingly, Russia’s OOO Bank filed a lawsuit seeking the return of the account balance to the Moscow City Commercial Court in Russia.

Responding to local court trial schedule.

Claim for damages

94,081

PT Bank KB Bukopin Tbk requested an auction of TMJ’s shares in order to collect the loan to TMJ (a distressed company); NKLI won the auction and then received a loan from the bank for the purpose of purchasing TMJ shares. NKLI’s intention was to take control over TMJ and launch mining business; however, NKLI was unable to take control and launch the business due to legal disputes with the bankruptcy trustee of TMJ and court-appointed mine management company, and also lost a lawsuit against the mine management company.

As a result, NKLI filed a legal suit to PT Bank KB Bukopin Tbk stating that the bank’s recommendation to purchase TMJ’s shares was inappropriate since the bank did not intentionally share the legal issues and associated risks thereof.

A legal representative has been appointed to handle the case, and the first trial is in progress.

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

31.3 Other Matters (cont’d)

(In number of cases, in millions of Korean won)

Company

Lawsuits

No. of
cases

Amount

Description of the lawsuits

Status of the lawsuits

KB Securities Co., Ltd.

Request for the return of unjust enrichment and transaction amount (Australian fund)

55,655

As an investment broker for a private fund that lends money to a corporation (borrower) investing in Australian disability apartment rental business, KB Securities Co., Ltd. brokered investments of 326,500 million in trust products and funds to individual and institutional investors. However, due to the local Australian borrower’s breach of contract, the fund management was suspended, and related to this, a lawsuit was filed against KB Securities Co., Ltd. for the return of unjust enrichment and transaction amount.

No.1 case: The third trial is in progress (The first trial: On February 7, 2023, a ruling was made to pay the principal investment of 29,800 million and the delayed interest on it. The second trial: On January 29, 2024, the conclusion was different; a ruling was made to pay the principal investment of 12,000 million and the delayed interest on it.)

No. 2 case: The second trial is in progress (The first trial: On February 14, 2024, a ruling was made to pay the principal investment of 12,200 million and the delayed interest on it.)

No. 3 case: The second trial is in progress (The first trial: On October 26, 2023, a ruling was made to pay the remaining principal and interest of 8,460 million and the delayed interest on the principal of 8,290 million)

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

31.3 Other Matters (cont’d)

b) On April 7, 2023, Kookmin Bank entered into a new share subscription agreement with STIC Eugene Star Holdings Inc. (hereinafter referred to as “STIC”), under which STIC will acquire 31,900,000,000 shares at a price of IDR 3.19 trillion, which Kookmin Bank’s subsidiary, PT Bank KB Bukopin Tbk, issued. As a result of the agreement, Kookmin Bank will hold a call option to purchase the shares held by STIC, starting from 2 years and 6 months after the date of acquisition, for a period of 6 months. If Kookmin Bank does not exercise the call option during the designated period, STIC will have the right to sell the acquired shares back to the bank, also known as holding a put option right, within 1 year after the expiration of the call option exercise period.

c) Kookmin Bank is currently under investigation by the Fair-Trade Commission regarding the possibility of unfair joint actions by commercial banks. It is impossible to predict the outcome of the investigation.

d) As of March 31, 2024, KB Real Estate Trust Co., Ltd. may lend 2,782,700 million to the trust accounts, which is part of the total project cost related to borrowing-type land trust contracts (including maintenance projects). Whether or not KB Real Estate Trust Co., Ltd. will lend to a trust account is not an unconditional payment obligation, and it is judged by considering all matters such as the fund balance plan of its own account and trust business.

e) KB Real Estate Trust Co., Ltd. is carrying out the completion guarantee management-type land trust project (56 cases, including Gonghang-dong Airport City, excluding construction project), that bears responsibility for the completion guarantee when the construction company fails to fulfill responsibility for the completion guarantee and bears responsibility for compensating for damages to lending financial institutions as of March 31, 2024. The total credit line of PF loan related to the completion guarantee management-type land trust project is 4,722,600 million, and the used credit line is 3,479,000 million as of March 31, 2024. The amount of compensation for damages charged to KB Real Estate Trust Co., Ltd. is measured after determining whether the damage occurred due to the company’s failure to fulfill the completion guarantee. Since the amount of loss cannot be measured reliably, this impact is not reflected in the Financial statements as of and for the three-month period ended March 31, 2024. The Group plans to continuously monitor the process progress at each business site.

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

32. Subsidiaries

32.1 Details of major consolidated subsidiaries as of March 31, 2024, are as follows:


Investor	Investee	Ownership (%)	Location	Date of financial statements	Industry
KB Financial Group Inc.	Kookmin Bank	100.00	Korea	Mar. 31	Banking and foreign exchange transaction

	KB Kookmin Card Co., Ltd.	100.00	Korea	Mar. 31	Credit card and installment financing

	KB Asset Management Co., Ltd.	100.00	Korea	Mar. 31	Collective investment and advisory

	KB Capital Co., Ltd.	100.00	Korea	Mar. 31	Financial Leasing

	KB Savings Bank Co., Ltd.	100.00	Korea	Mar. 31	Savings banking

	KB Real Estate Trust Co., Ltd.	100.00	Korea	Mar. 31	Real estate trust management

	KB Investment Co., Ltd.	100.00	Korea	Mar. 31	Capital investment

	KB Data System Co., Ltd.	100.00	Korea	Mar. 31	Software advisory, development, and supply

	KB Securities Co., Ltd.	100.00	Korea	Mar. 31	Financial investment

	KB Insurance Co., Ltd.	100.00	Korea	Mar. 31	Non-life insurance

	KB Life Insurance Co., Ltd.	100.00	Korea	Mar. 31	Life insurance

Kookmin Bank	KB PRASAC BANK PLC. 3	100.00	Cambodia	Mar. 31	Banking and foreign exchange transaction

	Kookmin Bank (China) Ltd.	100.00	China	Mar. 31	Banking and foreign exchange transaction

	KB Microfinance Myanmar Co., Ltd.	100.00	Myanmar	Mar. 31	Microfinance services

	PT Bank Syariah Bukopin	95.92	Indonesia	Mar. 31	Banking

	PT Bukopin Finance	99.24	Indonesia	Mar. 31	Installment financing

	KB Bank Myanmar Co., Ltd.	100.00	Myanmar	Mar. 31	Banking and foreign exchange transaction

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

32.1 Details of major consolidated subsidiaries as of March 31, 2024, are as follows: (cont’d)


Investor	Investee	Ownership (%)	Location	Date of financial statements	Industry

Kookmin Bank, KB Kookmin Card Co., Ltd., KB Securities Co., Ltd., KB Insurance Co., Ltd., KB Capital Co., Ltd.	PT Bank KB Bukopin, Tbk.	67.57 1	Indonesia	Mar. 31	Banking and foreign exchange transaction

KB Securities Co., Ltd.	KBFG Securities America Inc.	100.00	United States	Mar. 31	Investment advisory and securities trading

	KB Securities Hong Kong Ltd.	100.00	China	Mar. 31	Investment advisory and securities trading

	KB Securities Vietnam Joint Stock Company	99.81	Vietnam	Mar. 31	Investment advisory and securities trading

	KB FINA Joint Stock Company	77.82	Vietnam	Mar. 31	Investment advisory and securities trading

	PT KB VALBURY SEKURITAS	65.00	Indonesia	Mar. 31	Investment advisory and securities trading

KB Insurance Co., Ltd.	Leading Insurance Services, Inc.	100.00	United States	Mar. 31	Management service

	KBFG Insurance(China) Co., Ltd.	100.00	China	Mar. 31	Non-life insurance

	PT. KB Insurance Indonesia	70.00	Indonesia	Mar. 31	Non-life insurance

	KB Claims Survey & Adjusting	100.00	Korea	Mar. 31	Claim service

	KB Sonbo CNS	100.00	Korea	Mar. 31	Management service

	KB Healthcare Co., Ltd.	100.00	Korea	Mar. 31	Information and communication

KB Life Insurance Co., Ltd.	KB Life Partners Co., Ltd.	100.00	Korea	Mar. 31	Insurance agent

	KB Golden Life Care Co., Ltd.	100.00	Korea	Mar. 31	Service

KB Kookmin Card Co., Ltd.	KB Credit Information Co., Ltd.	100.00	Korea	Mar. 31	Collection of receivables or credit investigation

	KB Daehan Specialized Bank Plc.	97.45	Cambodia	Mar. 31	Auto Installment finance

	PT. KB Finansia Multi Finance	80.00	Indonesia	Mar. 31	Auto Installment finance

	KB J Capital Co., Ltd.	77.40	Thailand	Mar. 31	Service

	i-Finance Leasing Plc.	100.00	Cambodia	Mar. 31	Leasing

KB Capital Co., Ltd.	PT Sunindo Kookmin Best Finance	85.00	Indonesia	Mar. 31	Auto Installment finance

	Teamwink Inc.	95.95	Korea	Mar. 31	E-commerce

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

32.1 Details of major consolidated subsidiaries as of March 31, 2024, are as follows: (cont’d)


Investor	Investee	Ownership (%)	Location	Date of financial statements	Industry

KB Kookmin Card Co., Ltd., KB Capital Co., Ltd.	KB KOLAO Leasing Co., Ltd.	80.00	Laos	Mar. 31	Auto Installment finance

Kookmin Bank, KB Data System Co., Ltd.	PT KB Data Systems Indonesia	100.00	Indonesia	Mar. 31	Service

KB Asset Management Co., Ltd.	KBAM Shanghai Advisory Services Co., Ltd.	100.00	China	Mar. 31	General advisory

	PT KB Valbury Capital Management 2	70.00	Indonesia	Mar. 31	Collective investment

	KB Asset Management Singapore PTE. LTD.	100.00	Singapore	Mar. 31	Collective investment

1	Among the ownership in PT Bank KB Bukopin, Tbk., 0.05% (100,000,000 shares) is no-voting shares with no-dividends.

2	In January 2024, PT KB Valbury Capital Management was changed from a subsidiary of KB Securities Co., Ltd. to a subsidiary of KB Asset Management Co., Ltd.

On September 1, 2023, PRASAC Microfinance Institution PLC. (merging entity), a subsidiary of Kookmin Bank Co., Ltd., merged with Kookmin Bank Cambodia PLC. (merged entity), issuing 20,272,269 shares in exchange for the transfer consideration. The official name of PRASAC Microfinance Institution PLC. (merging entity) has changed to KB PRASAC BANK PLC.

32.2 Details of consolidated structured entities as of March 31, 2024, are as follows:


	Consolidated structured entities	Reasons for consolidation
Trusts	Kookmin Bank (development trust) and 10 others	The Group controls the trust because it has power to determine management performance of the trust and is significantly exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of principal and fixed rate of return.

Asset-backed securitization	Taejon Samho The First Co., Ltd. and 86 others	The Group controls these investees because it has power over relevant activities in the event of default, is significantly exposed to variable returns by providing lines of credit or ABCP purchase commitments or acquiring subordinated debt and has ability to affect those returns through its power.

Investment funds and others	KB Global Platform Fund No.2 and 208 others	Funds are consolidated if the Group, as a collective investor or operating manager (member), etc., can manage fund assets on behalf of other investors or dismiss the collective investor and operating manager, and is substantially exposed to significant variable returns or has such rights.

If the Group holds more than half of the ownership interests but does not have the power over relevant activities of structured entities in accordance with agreements with trust and other related parties, those structured entities are excluded from the consolidation.

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

32.3 Condensed financial information of major subsidiaries as of March 31, 2024 and December 31, 2023 and for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	March 31, 2024						2024
	Assets		Liabilities		Equity		Operating revenue		Profit (loss) attributable to shareholders of the Parent Company			Total compre- hensive income (loss) attributable to shareholders of the Parent Company
Kookmin Bank 1		543,970,547		508,450,720		35,519,827		14,403,010		389,535			470,533
KB Securities Co., Ltd. 1,2		62,950,479		56,467,484		6,482,995		3,384,564		197,969			212,006
KB Insurance Co., Ltd. 1,2		37,403,913		31,560,270		5,843,643		3,126,998		292,157			(162,236	)
KB Kookmin Card Co., Ltd.1		29,546,996		24,755,690		4,791,306		1,097,248		139,136			156,576
KB Life Insurance Co., Ltd.1		32,112,427		28,479,681		3,632,746		757,340		76,986			(346,587	)
KB Asset Management Co., Ltd. 1		337,614		91,815		245,799		58,739		18,567			18,674
KB Capital Co., Ltd. 1,2		16,916,177		14,600,575		2,315,602		631,742		61,553			61,653
KB Real Estate Trust Co., Ltd.		940,967		701,850		239,117		32,027		(46,936	)		(46,944	)
KB Savings Bank Co., Ltd.		2,802,219		2,597,201		205,018		68,183		11,271			11,243
KB Investment Co., Ltd. 1		1,524,451		1,246,955		277,496		17,973		(2,001	)		(1,978	)
KB Data System Co., Ltd. 1		60,501		39,113		21,388		59,883		426			500

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

32.3 Condensed financial information of major subsidiaries as of March 31, 2024 and December 31, 2023 and for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	December 31, 2023						2023
	Assets		Liabilities		Equity		Operating revenue		Profit (loss) attributable to shareholders of the Parent Company			Total compre- hensive income (loss) attributable to shareholders of the Parent Company
Kookmin Bank 1		530,012,853		493,464,126		36,548,727		14,919,122		931,516			1,281,320
KB Securities Co., Ltd. 1,2		61,266,990		54,967,833		6,299,157		4,321,240		140,596			123,755
KB Insurance Co., Ltd. 1,2		37,729,688		31,474,132		6,255,556		3,064,662		253,811			346,148
KB Kookmin Card Co., Ltd.1		29,365,575		24,545,752		4,819,823		1,023,991		81,989			72,806
KB Life Insurance Co., Ltd.1,2,3		31,953,218		27,823,185		4,130,033		1,040,256		104,751			(137,990	)
KB Asset Management Co., Ltd. 1		377,919		109,645		268,274		53,970		17,972			18,314
KB Capital Co., Ltd. 1,2		16,560,800		14,300,771		2,260,029		533,705		46,936			47,681
KB Real Estate Trust Co., Ltd.		859,408		573,348		286,060		35,796		18,755			18,755
KB Savings Bank Co., Ltd.		2,661,999		2,468,223		193,776		55,815		(10,954	)		(10,979	)
KB Investment Co., Ltd. 1		1,544,836		1,265,361		279,475		15,177		2,320			2,320
KB Data System Co., Ltd. 1		61,508		40,616		20,892		57,638		306			421
KB Credit Information Co., Ltd. 3		42,803		25,653		17,150		9,562		59			54

1	Financial information is based on its consolidated financial statements.

2	Includes fair value adjustments arising from the acquisition.

3	The Parent Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on June 30, 2023.

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

32.4 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

32.4.1 The Group has provided payment guarantees of 3,098,003 million to K plus 1st L.L.C and other consolidated structured entities.

32.4.2 The Group has provided capital commitment to 61 consolidated structured entities including KB Sinansan Line Private Special Asset Fund (SOC). The unexecuted amount of the capital commitment is 1,801,470 million. Based on the capital commitment, the Group is subject to increase its investment upon the request of the asset management company or the additional agreement among investors.

32.4.3 The Group has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

32.5 Changes in Subsidiaries

32.5.1 Subsidiaries newly included in consolidation for the three-month period ended March 31, 2024, are as follows:


Company		Reasons of obtaining control
KB NA Sound Point Private Special Asset Fund 2(USD) and 3 others.		Holds more than half of the ownership interests

TLDC PTE.LTD. and 4 others.		Has power over relevant activities in the event of default and is exposed to significant variable returns by providing lines of credit or ABCP purchase commitments or acquiring subordinated debt

KB Global Private Real Estate Debt Fund 31 and 3 others.		Holds the power to determine the operation of the funds and is exposed to variable returns by holding significant amount of ownership interests

32.5.2 Subsidiaries excluded from consolidation for the three-month period ended March 31, 2024, are as follows:


Company		Reasons of losing control
Beomeolandmark 2nd Ltd. and 22 others.		Termination of the commitments

KB Global Commerce Private Equity Investment Fund and 1 another.		Liquidation

Orient Kwang-yang Co., Ltd. and 1 another.		Disposal

KB Money Market Active Securities Fund (Bond) and 5 others.		Decrease in ownership interests to less than majority

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33. Related Party Transactions

According to Korean IFRS No.1024, the Group includes investments in associates, key management personnel (including family members), and post-employment benefit plans of the Group and its related party companies in the scope of related parties. The Group discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the consolidated financial statements. Refer to Note 12 for details of investments in associates and joint ventures.

33.1 Details of significant profit or loss arising from transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)		2024		2023
Associates and joint ventures
Balhae Infrastructure Company	Fee and commission income		1,297		1,241
Korea Credit Bureau Co., Ltd.	Fee and commission income		187		199
	Fee and commission expense		2,326		2,081
	Insurance income		1		1
	Provision for credit losses		1		—
	Other operating expenses		3		4
Incheon Bridge Co., Ltd.	Interest income		2,517		1,980
	Interest expense		205		150
	Fee and commission income		8		6
	Fee and commission expense		2		2
	Insurance income		54		55
	Gains on financial instruments at fair value through profit or loss		—		52
	Losses on financial instruments at fair value through profit or loss		114		—
	Reversal of credit losses		2		—
Aju Good Technology Venture Fund	Interest expense		2		51
Star-Lord General Investors Private Real Estate Investment Company No.10	Insurance income		34		35
	Interest income		1,477		1,463
	Interest expense		78		164
	Provision for credit losses		3		—
	General and administrative expenses		2,050		2,410
KG Capital Co., Ltd. *	Interest income		—		221
	Fee and commission income		—		12
	Fee and commission expense		—		1
	Insurance income		—		9
	Other operating income		—		99
	Other operating expenses		—		5
	Reversal of credit losses		—		27
Food Factory Co., Ltd.	Interest income		13		34
	Insurance income		—		3
POSCO-KB Shipbuilding Fund	Fee and commission income		—		(18	)
Paycoms Co., Ltd. *	Interest income		—		2

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.1 Details of significant profit or loss arising from transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)		2024		2023
Big Dipper Co., Ltd.	Fee and commission expense		23		129
KB-TS Technology Venture Private Equity Fund	Fee and commission income		47		166
KB-SJ Tourism Venture Fund	Fee and commission income		31		131
Banksalad Co., Ltd.	Fee and commission income		9		9
Banksalad Co., Ltd.	Fee and commission expense		1		3
RMGP Bio-Pharma Investment Fund, L.P.	Fee and commission income		13		7
RMGP Bio-Pharma Investment Fund, L.P.	Gains on financial instruments at fair value through profit or loss		1		—
KB-MDI Centauri Fund LP	Fee and commission income		110		119
Hibiscus Fund LP	Fee and commission income		170		440
RMG-KB BioAccess Fund L.P.	Fee and commission income		82		80
RMG-KB BioAccess Fund L.P.	Gains on financial instruments at fair value through profit or loss		8		—
S&E Bio Co., Ltd.	Interest expense		4		2
Contents First Inc.	Interest income		139		56
	Interest expense		9		35
	Fee and commission income		1		—
	Provision for credit losses		10		6
	Reversal of credit losses		2		—
December & Company Inc. *	Insurance income		—		48
Pin Therapeutics Inc.	Interest expense		—		41
Wyatt Corp.	Insurance income		29		31
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Interest expense		4		1
	Fee and commission income		—		72
Spark Biopharma Inc.	Interest expense		79		144
Skydigital Inc.	Fee and commission income		1		1
KB No.21 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		106		66
KB No.21 Special Purpose Acquisition Company	Interest expense		19		15
KB No.22 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		1,373		164
KB No.23 Special Purpose Acquisition Company *	Gains on financial instruments at fair value through profit or loss		—		180
KB No.23 Special Purpose Acquisition Company *	Interest expense		—		17
KB No.24 Special Purpose Acquisition Company *	Interest expense		—		2
KB No.25 Special Purpose Acquisition Company	Interest expense		13		—
KB No.25 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		40		—
KB No.26 Special Purpose Acquisition Company	Interest expense		15		—
KB No.26 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		419		—

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March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.1 Details of significant profit or loss arising from transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)		2024		2023
KB No.27 Special Purpose Acquisition Company	Interest expense		41		—
KB No.27 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		208		—
KB No.28 Special Purpose Acquisition Company	Interest expense		7		—
KB SPROTT Renewable Private Equity Fund No.1	Fee and commission income		80		84
KB-Stonebridge Secondary Private Equity Fund	Fee and commission income		101		190
COSES GT Co., Ltd.	Interest income		—		8
SuperNGine Co., Ltd.	Interest income		10		—
Desilo Inc.	Interest income		4		3
	Provision for credit losses		—		3
Turing Co., Ltd.	Interest expense		11		1
	Interest income		16		—
Grinergy Co., Ltd.	Provision for credit losses		—		1
TeamSparta Inc.	Fee and commission income		6		—
	Interest expense		38		55
Chabot Mobility Co., Ltd.	Fee and commission expense		537		414
Wemade Connect Co., Ltd.	Insurance income		—		1
	Interest expense		81		83
TMAP Mobility Co., Ltd.	Interest expense		814		26
	Fee and commission income		1		—
	Fee and commission expense		135		257
	Provision for credit losses		—		1
	Insurance income		128		—
Nextrade Co., Ltd.	Interest expense		726		718
WJ Private Equity Fund No.1	Fee and commission income		2		2
Channel Corporation	Interest expense		10		26
CWhy Inc.	Insurance income		1		1
KB Social Impact Investment Fund	Fee and commission income		70		64
KB-UTC Inno-Tech Venture Fund	Fee and commission income		23		134
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Fee and commission income		173		551
2020 KB Fintech Renaissance Fund	Fee and commission income		37		37
KB Material and Parts No.1 PEF	Fee and commission income		88		439
FineKB Private Equity Fund No.1	Fee and commission income		134		116
	Gains on financial instruments at fair value through profit or loss		32		—
Paramark KB Fund No.1	Fee and commission income		32		32
KB-Badgers Future Mobility ESG Fund No.1	Fee and commission income		323		321
	Gains on financial instruments at fair value through profit or loss		1		—

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.1 Details of significant profit or loss arising from transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)		2024			2023
KB-KTB Technology Venture Fund	Fee and commission income		89			275
KB-Solidus Global Healthcare Fund	Fee and commission income		17			81
	Gains on financial instruments at fair value through profit or loss		700			—
Gomi corporation Inc.	Interest income		27			19
	Insurance income		1			—
	Provision for credit losses		1			22
	Reversal of credit losses		13			—
KB Cape No.1 Private Equity Fund	Fee and commission income		—			73
KB-GeneN Medical Venture Fund No.1	Fee and commission income		22			22
KB-BridgePole Venture Investment Fund *	Fee and commission income		—			33
KB-BridgePole Venture Investment Fund No.2	Fee and commission income		26			—
KB-Kyobo New Mobility Power Fund	Fee and commission income		20			19
KB Co-Investment Private Equity Fund No.1	Fee and commission income		258			31
KB-NP Green ESG New Technology Venture Capital Fund	Fee and commission income		297			290
KB-FT Green Growth 1st Technology Investment Association	Fee and commission income		34			33
KB-SUSUNG 1st Investment Fund	Fee and commission income		48			—
KB-FT 1st Green Growth Investment Fund	Interest expense		6			—
U-KB Credit No.1S Private Equity	Fee and commission income		241			—
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP *	Interest expense		(38	)		—
KB-SOLIDUS Healthcare Investment Fund	Fee and commission income		200			—
AKK Robotech Valueup New Technology Investment Fund	Fee and commission income		9			—
New Daegu Busan Expressway Co., Ltd.	Interest income		857			—
	Reversal of credit losses		3			—
	Interest expense		958			—

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.1 Details of significant profit or loss arising from transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)		2024		2023
AIM FUTURE, Inc.	Interest income		11		—
	Interest expense		20		—
ADP Holdings Co., Ltd.	Interest expense		8		—
ADPGREEN	Interest expense		2		—
Others
Retirement pension	Fee and commission income		435		396
	Interest expense		15		14

*	Excluded from the Group’s related party as of March 31, 2024.

Meanwhile, the Group purchased installment financial assets, etc. from KG Capital Co., Ltd. amounting to 193,215 million for the three-month periods ended March 31, 2023.

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)		March 31, 2024		December 31, 2023
Associates and joint ventures
Balhae Infrastructure Company	Other assets		1,297		1,304
Korea Credit Bureau Co., Ltd.	Loans measured at amortized cost (gross amount)		173		37
	Allowances for credit losses		2		—
	Deposits		3,836		17,003
	Provisions		2		2
	Insurance liabilities		—		1
Incheon Bridge Co., Ltd.	Financial assets at fair value through profit or loss		33,168		33,282
	Loans measured at amortized cost (gross amount)		77,887		80,512
	Allowances for credit losses		37		38
	Other assets		509		528
	Deposits		36,616		40,992
	Provisions		45		45
	Insurance liabilities		33		87
	Other liabilities		673		504
Jungdo Co., Ltd.	Deposits		4		4
Dae-A Leisure Co., Ltd.	Deposits		150		150
Aju Good Technology Venture Fund	Deposits		2,815		1,202
Aju Good Technology Venture Fund	Other liabilities		—		1
Star-Lord General Investors Private Real Estate Investment Company No.10	Loans measured at amortized cost (gross amount)		149,665		149,590
	Allowances for credit losses		8		5
	Property and equipment		6,972		8,934
	Other assets		8,740		8,689
	Insurance liabilities		10		44
	Other liabilities		9,352		11,741
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Deposits		9		—
WJ Private Equity Fund No.1	Other assets		2		2
WJ Private Equity Fund No.1	Deposits		101		103
KB Cape No.1 Private Equity Fund	Financial assets at fair value through profit or loss		1,935		1,935
KB Cape No.1 Private Equity Fund	Other assets		—		73
RAND Bio Science Co., Ltd.	Deposits		4		4
RAND Bio Science Co., Ltd.	Loans measured at amortized cost (gross amount)		1		1

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)		March 31, 2024		December 31, 2023
Food Factory Co., Ltd.	Financial assets at fair value through profit or loss		738		738
	Loans measured at amortized cost (gross amount)		2,090		2,137
	Allowances for credit losses		2		2
	Other assets		12		5
	Deposits		172		629
	Insurance liabilities		1		2
	Other liabilities		7		1
POSCO-KB Shipbuilding Fund	Other assets		678		678
Big Dipper Co., Ltd.	Loans measured at amortized cost (gross amount)		15		14
	Deposits		—		40
	Other liabilities		8		8
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		45		46
Iwon Alloy Co., Ltd.	Deposits		1		1
RMGP Bio-Pharma Investment Fund, L.P.	Financial assets at fair value through profit or loss		6,691		5,938
RMGP Bio-Pharma Investment Fund, L.P.	Other liabilities		49		62
RMGP Bio-Pharma Investment, L.P.	Financial assets at fair value through profit or loss		21		20
Wyatt Co., Ltd.	Financial assets at fair value through profit or loss		6,000		6,000
	Deposits		1		1
	Insurance liabilities		44		73
Skydigital Inc.	Deposits		32		65
Banksalad Co., Ltd.	Financial assets at fair value through profit or loss		9,148		9,148
Spark Biopharma Inc.	Financial assets at fair value through profit or loss		7,450		7,450
	Loans measured at amortized cost (gross amount)		15		17
	Deposits		9,188		11,419
	Other liabilities		17		90
UPRISE, Inc.	Financial assets at fair value through profit or loss		5,710		5,710
Stratio, Inc.	Financial assets at fair value through profit or loss		1,000		1,000
Honest Fund, Inc.	Financial assets at fair value through profit or loss		3,999		3,999

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)		March 31, 2024		December 31, 2023
CellinCells Co., Ltd.	Financial assets at fair value through profit or loss		2,000		2,000
	Loans measured at amortized cost (gross amount)		2		3
	Deposits		85		37
Channel Corporation	Financial assets at fair value through profit or loss		16,906		16,906
	Deposits		5		2,030
	Other liabilities		—		11
KB No.21 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		3,092		2,987
	Deposits		2,245		2,261
	Other liabilities		57		38
KB No.22 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		4,358		2,985
KB No.22 Special Purpose Acquisition Company	Deposits		1,765		1,848
KB No.23 Special Purpose Acquisition Company *	Financial assets at fair value through profit or loss		—		1,489
KB No.25 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		1,985		2,025
	Deposits		1,574		1,586
	Other liabilities		52		39
KB No.26 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		2,623		2,204
	Deposits		1,723		1,761
	Other liabilities		53		37
KB No.27 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		6,262		6,054
	Deposits		4,485		4,497
	Other liabilities		106		65
KB No.28 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		995		—
	Deposits		2,180		—
	Other liabilities		7		—
KB No.29 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		1,490		—
COSES GT Co., Ltd.	Loans measured at amortized cost (gross amount)		2		1
COSES GT Co., Ltd.	Deposits		14		1
CWhy Inc.	Insurance liabilities		10		—
MitoImmune Therapeutics	Financial assets at fair value through profit or loss		7,000		7,000

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)		March 31, 2024		December 31, 2023
KB-Solidus Global Healthcare Fund	Other assets		—		284
Bioprotect Ltd.	Financial assets at fair value through profit or loss		4,474		4,474
Gomi corporation Inc.	Financial assets at fair value through profit or loss		4,000		4,000
	Loans measured at amortized cost (gross amount)		2,112		2,155
	Allowances for credit losses		50		62
	Other assets		5		5
	Deposits		133		78
	Other liabilities		1		1
	Provisions		3		3
	Insurance liabilities		1		—
Go2joy Co., Ltd.	Financial assets at fair value through profit or loss		1,200		1,200
S&E Bio Co., Ltd.	Financial assets at fair value through profit or loss		4,000		4,000
	Loans measured at amortized cost (gross amount)		6		13
	Deposits		1,576		2,342
	Other liabilities		2		13
Bluepointpartners Inc.	Financial assets at fair value through profit or loss		1,874		1,874
4N Inc.	Deposits		2		49
Xenohelix Co., Ltd.	Financial assets at fair value through profit or loss		3,100		3,100
Xenohelix Co., Ltd.	Deposits		477		904
Contents First Inc.	Financial assets at fair value through profit or loss		7,277		7,277
	Loans measured at amortized cost (gross amount)		11,056		10,365
	Allowances for credit losses		16		7
	Other assets		5		4
	Deposits		819		1,072
	Provisions		1		1
	Other liabilities		7		6
KB-MDI Centauri Fund LP	Financial assets at fair value through profit or loss		18,993		18,993
KB-MDI Centauri Fund LP	Other assets		331		221
2020 KB Fintech Renaissance Fund	Other assets		37		37
OKXE Inc.	Financial assets at fair value through profit or loss		800		800

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)		March 31, 2024		December 31, 2023
Mantisco Co., Ltd.	Loans measured at amortized cost (gross amount)		8		13
	Financial assets at fair value through profit or loss		3,000		3,000
	Deposits		458		46
Pin Therapeutics Inc.	Loans measured at amortized cost (gross amount)		9		11
	Financial assets at fair value through profit or loss		5,000		5,000
	Deposits		453		265
IMBiologics Corp.	Loans measured at amortized cost (gross amount)		2		5
IMBiologics Corp.	Financial assets at fair value through profit or loss		7,000		7,000
SuperNGine Co., Ltd.	Loans measured at amortized cost (gross amount)		603		603
	Deposits		80		69
	Allowances for credit losses		6		6
	Other assets		1		1
	Financial assets at fair value through profit or loss		1,996		1,996
Desilo Inc.	Financial assets at fair value through profit or loss		3,168		3,168
	Loans measured at amortized cost (gross amount)		300		300
	Allowances for credit losses		5		5
	Deposits		5		3
Turing Co., Ltd.	Financial assets at fair value through profit or loss		3,000		3,000
	Loans measured at amortized cost (gross amount)		1,901		1,901
	Allowances for credit losses		14		14
	Other assets		7		11
	Deposits		2,139		1,726
	Other liabilities		18		6
IGGYMOB Co., Ltd.	Financial assets at fair value through profit or loss		5,000		5,000
	Loans measured at amortized cost (gross amount)		7		7
	Deposits		5		—
Kukka Co., Ltd.	Financial assets at fair value through profit or loss		2,490		2,490
Kukka Co., Ltd.	Deposits		4		—
ZIPDOC Inc.	Financial assets at fair value through profit or loss		2,000		2,000
ZIPDOC Inc.	Deposits		52		181

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)		March 31, 2024		December 31, 2023
TeamSparta Inc.	Loans measured at amortized cost (gross amount)		572		307
	Financial assets at fair value through profit or loss		4,001		4,001
	Allowances for credit losses		—		1
	Deposits		7,787		7,672
	Other liabilities		101		62
	Provisions		3		1
Chabot Mobility Co., Ltd.	Financial assets at fair value through profit or loss		2,000		2,000
	Deposits		43		164
	Insurance liabilities		2		—
Wemade Connect Co., Ltd.	Financial assets at fair value through profit or loss		12,293		12,293
	Loans measured at amortized cost (gross amount)		34		44
	Allowances for credit losses		5		6
	Provisions		9		8
	Deposits		9,043		8,843
	Insurance liabilities		1		1
	Other liabilities		52		53
Nextrade Co., Ltd.	Deposits		56,203		56,203
Nextrade Co., Ltd.	Other liabilities		3,900		3,174
TMAP Mobility Co., Ltd.	Loans measured at amortized cost (gross amount)		58		106
	Allowances for credit losses		1		1
	Deposits		110,091		80,016
	Insurance liabilities		183		—
	Other liabilities		732		763
	Provisions		2		2
FutureConnect Co., Ltd.	Financial assets at fair value through profit or loss		1,499		1,499
Gushcloud Talent Agency	Financial assets at fair value through profit or loss		3,688		3,688
Grinergy Co., Ltd.	Loans measured at amortized cost (gross amount)		2		—
	Financial assets at fair value through profit or loss		6,486		6,486
	Provisions		1		1
NexThera Co., Ltd.	Financial assets at fair value through profit or loss		3,000		3,000
FineKB Private Equity Fund No.1	Other assets		22		13
Paramark KB Fund No.1	Other liabilities		2		34
KB-Badgers Future Mobility ESG Fund No.1	Other liabilities		323		—
KB Social Impact Investment Fund	Other assets		330		260
Checkmate Therapeutics Inc.	Financial assets at fair value through profit or loss		3,200		3,200

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)		March 31, 2024		December 31, 2023
Hibiscus Fund L.P.	Financial assets at fair value through profit or loss		12,915		12,915
Hibiscus Fund L.P.	Other assets		81		258
RMG-KB BioAccess Fund L.P.	Financial assets at fair value through profit or loss		5,362		5,036
RMG-KB BP Management Ltd.	Financial assets at fair value through profit or loss		188		174
KB Co-Investment Private Equity Fund No.1	Other assets		253		255
Spoon Radio Co., Ltd.	Financial assets at fair value through profit or loss		19,506		19,506
Neuroptika Inc.	Financial assets at fair value through profit or loss		5,879		5,879
Bitgoeul Cheomdan Green 1st Co., Ltd.	Deposits		822		833
KB-FT Green Growth No.1 New Technology Business Investment Association	Deposits		700		700
	Other liabilities		21		8
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP *	Deposits		—		3,790
	Other liabilities		—		42
Bigwave Robotics Crop.	Loans measured at amortized cost (gross amount)		31		31
	Financial assets at fair value through profit or loss		2,750		2,750
	Deposits		2		4
Blinkers Inc.	Financial assets at fair value through profit or loss		999		999
3D Interactive Co., Ltd.	Loans measured at amortized cost (gross amount)		20		42
	Allowances for credit losses		1		2
	Financial assets at fair value through profit or loss		2,300		2,300
	Deposits		750		1,501
XL8 INC.	Financial assets at fair value through profit or loss		5,148		5,148
Elev8-Capital Fund I	Financial assets at fair value through profit or loss		9,352		6,656
New Daegu Busan Expressway Co., Ltd.	Loans measured at amortized cost (gross amount)		60,624		72,742
	Allowances for credit losses		3		4
	Other assets		55		57
	Deposits		150,848		146,169
	Other liabilities		629		1,891

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)		March 31, 2024		December 31, 2023
AIM FUTURE, Inc.	Financial assets at fair value through profit or loss		2,000		2,000
	Loans measured at amortized cost (gross amount)		905		900
	Allowances for credit losses		2		2
	Other assets		1		1
	Deposits		2,780		3,393
	Other liabilities		29		48
Novorex Inc.	Financial assets at fair value through profit or loss		2,000		2,000
	Loans measured at amortized cost (gross amount)		25		—
	Deposits		6		7
Seokwang T&I Co., Ltd	Insurance liabilities		1		2
ADP Holdings Co., Ltd.	Deposits		2,384		—
ADP Holdings Co., Ltd.	Other liabilities		8		—
ADPGREEN	Deposits		1,259		—
ADPGREEN	Other liabilities		1		—
Logpresso Inc.	Financial assets at fair value through profit or loss		3,000		—
Logpresso Inc.	Deposits		434		—
Key management personnel	Loans measured at amortized cost (gross amount)		5,781		5,490
	Allowances for credit losses		3		5
	Other assets		9		7
	Deposits		20,078		15,902
	Provisions		2		2
	Insurance liabilities		2,257		2,293
	Other liabilities		533		429
Others
Retirement pension	Other assets		667		364
Retirement pension	Other liabilities		934		606

*	Excluded from the Group’s related party as of March 31, 2024, therefore, the remaining outstanding balances with those entities are not disclosed.

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.3 Details of significant lending transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Beginning		Loan		Collection			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.		37		173		(37	)		173
Incheon Bridge Co., Ltd.		113,794		12		(2,751	)		111,055
Star-Lord General Investors Private Real Estate Investment Company No.10		149,590		75		—			149,665
KB Cape No.1 Private Equity Fund		1,935		—		—			1,935
RAND Bio Science Co., Ltd.		1		1		(1	)		1
Food Factory Co., Ltd.		2,875		7		(54	)		2,828
Big Dipper Co., Ltd.		14		15		(14	)		15
RMGP Bio-Pharma Investment Fund, L.P.		5,938		753		—			6,691
RMGP Bio-Pharma Investment, L.P.		20		1		—			21
Wyatt Corp.		6,000		—		—			6,000
Banksalad Co., Ltd.		9,148		—		—			9,148
UPRISE, Inc.		5,710		—		—			5,710
Stratio, Inc.		1,000		—		—			1,000
Honest Fund, Inc.		3,999		—		—			3,999
CellinCells Co., Ltd.		2,003		2		(3	)		2,002
KB No.21 Special Purpose Acquisition Company		2,987		105		—			3,092
KB No.22 Special Purpose Acquisition Company		2,985		1,373		—			4,358
KB No.25 Special Purpose Acquisition Company		2,025		—		(40	)		1,985
KB No.26 Special Purpose Acquisition Company		2,204		419		—			2,623
KB No.27 Special Purpose Acquisition Company		6,054		208		—			6,262
KB No.28 Special Purpose Acquisition Company		—		995		—			995
KB No.29 Special Purpose Acquisition Company		—		1,490		—			1,490
COSES GT Co., Ltd.		1		2		(1	)		2
Channel Corporation		16,906		—		—			16,906
MitoImmune Therapeutics		7,000		—		—			7,000
Bioprotect Ltd.		4,474		—		—			4,474
Gomi corporation Inc.		6,155		12		(55	)		6,112
Go2joy Co., Ltd.		1,200		—		—			1,200
S&E Bio Co., Ltd.		4,013		6		(13	)		4,006
Bluepointpartners Inc.		1,874		—		—			1,874
Xenohelix Co., Ltd.		3,100		—		—			3,100
Contents First Inc.		17,642		1,056		(365	)		18,333
KB-MDI Centauri Fund LP		18,993		—		—			18,993

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.3 Details of significant lending transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2024
	Beginning		Loan		Collection			Ending
OKXE Inc.		800		—		—			800
Checkmate Therapeutics Inc.		3,200		—		—			3,200
Mantisco Co., Ltd.		3,013		8		(13	)		3,008
IMBiologics Corp.		7,005		2		(5	)		7,002
Spark Biopharma Inc.		7,467		15		(17	)		7,465
Pin Therapeutics Inc.		5,011		9		(11	)		5,009
Hibiscus Fund LP		12,915		—		—			12,915
SuperNGine Co., Ltd.		2,599		3		(3	)		2,599
Desilo Inc.		3,468		—		—			3,468
RMG-KB BioAccess Fund L.P.		5,036		326		—			5,362
RMG-KB BP Management Ltd.		174		14		—			188
IGGYMOB Co., Ltd.		5,007		7		(7	)		5,007
Turing Co., Ltd.		4,901		—		—			4,901
Kukka Co., Ltd.		2,490		—		—			2,490
ZIPDOC Inc.		2,000		—		—			2,000
Gushcloud Talent Agency		3,688		—		—			3,688
Grinergy		6,486		2		—			6,488
NexThera Co., Ltd.		3,000		—		—			3,000
Chabot Mobility Co., Ltd.		2,000		—		—			2,000
TeamSparta Inc.		4,308		572		(307	)		4,573
FutureConnect Co., Ltd.		1,499		—		—			1,499
Wemade Connect Co., Ltd.		12,337		34		(44	)		12,327
TMAP Mobility Co., Ltd		106		58		(106	)		58
Spoon Radio Co., Ltd.		19,506		—		—			19,506
Neuroptika Inc.		5,879		—		—			5,879
Bigwave Robotics Crop.		2,781		31		(31	)		2,781
Blinkers Inc.		999		—		—			999
3D Interactive Co., Ltd.		2,342		20		(42	)		2,320
XL8 INC.		5,148		—		—			5,148
Elev8-Capital Fund I		6,656		2,696		—			9,352
AIM FUTURE, Inc.		2,900		5		—			2,905
New Daegu Busan Expressway Co., Ltd.		72,742		8		(12,126	)		60,624
Novorex Inc.		2,000		25		—			2,025
Logpresso Inc.		—		3,000		—			3,000
Key management personnel		5,490		2,757		(2,466	)		5,781

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.3 Details of significant lending transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Beginning		Loan		Collection			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.		38		128		(38	)		128
Incheon Bridge Co., Ltd.		128,159		63		(3,686	)		124,536
Star-Lord General Investors Private Real Estate Investment Company No.10		149,294		72		—			149,366
KB Cape No.1 Private Equity Fund		2,017		—		—			2,017
RAND Bio Science Co., Ltd.		—		1		—			1
KG Capital Co., Ltd. *		40,040		34		(20,040	)		20,034
Food Factory Co., Ltd.		4,041		7		(25	)		4,023
Paycoms Co., Ltd. *		1,172		—		—			1,172
Big Dipper Co., Ltd.		18		13		(18	)		13
RMGP Bio-Pharma Investment Fund, L.P.		6,384		—		—			6,384
RMGP Bio-Pharma Investment, L.P.		17		—		—			17
Wyatt Corp.		6,000		—		—			6,000
Banksalad Co., Ltd.		10,470		—		—			10,470
UPRISE, Inc.		5,248		—		—			5,248
Stratio, Inc.		1,000		—		—			1,000
Honest Fund, Inc.		3,999		—		—			3,999
CellinCells Co., Ltd.		2,007		2		(7	)		2,002
KB No.21 Special Purpose Acquisition Company		2,959		66		—			3,025
KB No.22 Special Purpose Acquisition Company		1,972		164		—			2,136
KB No.23 Special Purpose Acquisition Company *		2,971		181		—			3,152
KB No.24 Special Purpose Acquisition Company *		6,975		500		—			7,475
KB No.25 Special Purpose Acquisition Company		—		895		—			895
COSES GT Co., Ltd.		5,436		4		(6	)		5,434
Channel Corporation		18,099		—		—			18,099
MitoImmune Therapeutics		7,000		—		—			7,000
Bioprotect Ltd.		3,802		—		—			3,802
Gomi corporation Inc.		6,234		35		(34	)		6,235
Go2joy Co., Ltd.		1,200		—		—			1,200
ClavisTherapeutics, Inc.		2,000		—		—			2,000
S&E Bio Co., Ltd.		4,010		7		(10	)		4,007
Bluepointpartners Inc.		2,133		—		—			2,133
4N Inc.		200		—		—			200
Xenohelix Co., Ltd.		2,100		—		—			2,100
Contents First Inc.		17,294		—		(7	)		17,287
KB-MDI Centauri Fund LP		17,471		—		—			17,471
OKXE Inc.		800		—		—			800
Checkmate Therapeutics Inc.		3,200		—		—			3,200
Mantisco Co., Ltd.		3,015		19		(15	)		3,019
IMBiologics Corp.		5,004		3		(4	)		5,003
Spark Biopharma Inc.		7,467		15		(17	)		7,465

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.3 Details of significant lending transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Beginning		Loan		Collection			Ending
G1 Playground Co., Ltd.		1,000		—		—			1,000
Pin Therapeutics Inc.		5,013		40		(13	)		5,040
Hibiscus Fund LP		10,221		—		—			10,221
SuperNGine Co., Ltd.		2,002		20		(6	)		2,016
Desilo Inc.		3,468		—		—			3,468
RMG-KB BioAccess Fund L.P.		2,753		298		—			3,051
RMG-KB BP Management Ltd.		77		7		—			84
IGGYMOB Co., Ltd.		5,015		13		(15	)		5,013
Turing Co., Ltd.		3,000		—		—			3,000
Kukka Co., Ltd.		2,490		—		—			2,490
ZIPDOC Inc.		2,000		—		—			2,000
Gushcloud Talent Agency		4,165		—		—			4,165
Grinergy		2,500		1		—			2,501
NexThera Co., Ltd.		2,000		—		—			2,000
Chabot Mobility Co., Ltd.		2,000		—		—			2,000
TeamSparta Inc.		4,001		—		—			4,001
FutureConnect Co., Ltd.		1,499		—		—			1,499
Wemade Connect Co., Ltd.		12,052		32		(52	)		12,032
TMAP Mobility Co., Ltd		—		29		—			29
Taeyoungjungkong Co., Ltd.		—		55		(7	)		48
Key management personnel		6,299		878		(898	)		6,279

*	Excluded from the Group’s related party as of March 31, 2024.

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.4 Details of significant borrowing transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Beginning		Borrowing		Repayment			Others 1			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.		17,003		—		—			(13,167	)		3,836
Incheon Bridge Co., Ltd.		40,992		—		—			(4,376	)		36,616
Jungdo Co., Ltd.		4		—		—			—			4
Dae-A Leisure Co., Ltd.		150		—		—			—			150
Iwon Alloy Co., Ltd.		1		—		—			1			2
Skydigital Inc.		65		—		—			(33	)		32
Aju Good Technology Venture Fund		1,202		—		—			1,613			2,815
KB-KDBC Pre-IPO New Technology Business Investment Fund		46		—		—			(1	)		45
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		—		—		—			9			9
WJ Private Equity Fund No.1		103		—		—			(2	)		101
KB No.21 Special Purpose Acquisition Company		2,261		—		—			(16	)		2,245
KB No.22 Special Purpose Acquisition Company		1,848		—		—			(83	)		1,765
KB No.25 Special Purpose Acquisition Company		1,586		—		—			(12	)		1,574
KB No.26 Special Purpose Acquisition Company		1,761		—		—			(38	)		1,723
KB No.27 Special Purpose Acquisition Company		4,497		—		—			(12	)		4,485
KB No.28 Special Purpose Acquisition Company		—		1,890		—			290			2,180
RAND Bio Science Co., Ltd.		4		—		—			—			4
Food Factory Co., Ltd.		629		—		—			(457	)		172
Big Dipper Co., Ltd.		40		—		—			(40	)		—
Wyatt Corp.		1		—		—			—			1
CellinCells Co., Ltd.		37		—		—			48			85
COSES GT Co., Ltd.		1		—		—			13			14
Gomi corporation Inc.		78		—		—			55			133
S&E Bio Co., Ltd.		2,342		—		(500	)		(266	)		1,576
4N Inc.		49		—		—			(47	)		2
Contents First Inc.		1,072		—		—			(253	)		819

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.4 Details of significant borrowing transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2024
	Beginning		Borrowing		Repayment			Others 1			Ending
Mantisco Co., Ltd.		46		—		—			412			458
Pin Therapeutics Inc.		265		—		—			188			453
Spark Biopharma Inc.		11,419		8,756		(12,216	)		1,229			9,188
SuperNGine Co., Ltd.		69		—		—			11			80
Desilo Inc.		3		—		—			2			5
Turing Co., Ltd.		1,726		1,000		—			(587	)		2,139
IGGYMOB Co., Ltd.		—		—		—			5			5
TMAP Mobility Co., Ltd.		80,016		110,000		(80,000	)		75			110,091
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP 2		3,790		2,910		(621	)		(6,079	)		—
Nextrade Co., Ltd.		56,203		—		—			—			56,203
Kukka Co., Ltd.		—		—		—			4			4
ZIPDOC Inc.		181		—		—			(129	)		52
TeamSparta Inc.		7,672		—		—			115			7,787
Chabot Mobility Co., Ltd.		164		—		—			(121	)		43
Wemade Connect Co., Ltd.		8,843		8,500		(8,500	)		200			9,043
Channel Corporation		2,030		—		(2,000	)		(25	)		5
Bitgoeul Cheomdan Green 1st Co., Ltd.		833		—		—			(11	)		822
KB-FT Green Growth No.1 New Technology Business Investment Association		700		—		—			—			700
Bigwave Robotics Crop.		4		—		—			(2	)		2
3D Interactive Co., Ltd.		1,501		—		—			(751	)		750
AIM FUTURE, Inc.		3,393		1,000		(2,000	)		387			2,780
New Daegu Busan Expressway Co., Ltd.		146,169		96,000		(50,432	)		(40,889	)		150,848
Novorex Inc.		7		—		—			(1	)		6
Xenohelix Co., Ltd.		904		—		—			(427	)		477
ADP Holdings Co., Ltd.		—		1,885		—			499			2,384
ADPGREEN		—		7,751		(7,701	)		1,209			1,259
Logpresso Inc.		—		—		—			434			434
Key management personnel		15,902		7,724		(4,854	)		1,306			20,078

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.4 Details of significant borrowing transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Beginning		Borrowing		Repayment			Others 1			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.		27,889		—		—			(25,909	)		1,980
Incheon Bridge Co., Ltd.		48,639		—		(2,500	)		(1,751	)		44,388
Jungdo Co., Ltd.		4		—		—			—			4
Dae-A Leisure Co., Ltd.		154		—		—			(5	)		149
Iwon Alloy Co., Ltd.		1		—		—			(1	)		—
Computerlife Co., Ltd.		3		—		—			(3	)		—
Skydigital Inc.		10		—		—			(6	)		4
Aju Good Technology Venture Fund		7,222		1,323		—			2,547			11,092
KB-KDBC Pre-IPO New Technology Business Investment Fund		317		—		—			(260	)		57
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		1,526		—		—			(898	)		628
WJ Private Equity Fund No.1		221		—		—			(59	)		162
KG Capital Co., Ltd. 2		10		—		—			12			22
KB No.21 Special Purpose Acquisition Company		2,263		—		—			(11	)		2,252
KB No.22 Special Purpose Acquisition Company		1,948		—		—			(25	)		1,923
KB No.23 Special Purpose Acquisition Company 2		2,205		—		—			(19	)		2,186
KB No.24 Special Purpose Acquisition Company 2		9,983		—		—			(10	)		9,973
RAND Bio Science Co., Ltd.		3		—		—			2			5
Food Factory Co., Ltd.		664		—		—			(364	)		300
Paycoms Co., Ltd. 2		1		—		—			—			1
Big Dipper Co., Ltd.		19		—		—			(18	)		1
Wyatt Corp.		1		—		—			—			1
UPRISE, Inc.		27		—		—			—			27
CellinCells Co., Ltd.		37		—		—			26			63
COSES GT Co., Ltd.		1,213		—		—			(452	)		761
Gomi corporation Inc.		915		—		—			(834	)		81
S&E Bio Co., Ltd.		6,419		—		—			1,336			7,755
4N Inc.		5		—		—			12			17
Contents First Inc.		5,010		2,000		(4,000	)		(524	)		2,486
December & Company Inc. 2		1		—		—			—			1

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.4 Details of significant borrowing transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)	2023
	Beginning		Borrowing		Repayment			Others 1			Ending
Mantisco Co., Ltd.		623		—		—			590			1,213
Pin Therapeutics Inc.		6,033		5,001		(3,600	)		979			8,413
Spark Biopharma Inc.		17,534		6,031		(8,424	)		(125	)		15,016
SuperNGine Co., Ltd.		17		—		—			87			104
Desilo Inc.		1		—		—			7			8
Turing Co., Ltd.		2,788		—		—			(564	)		2,224
IGGYMOB Co., Ltd.		254		—		—			(44	)		210
TMAP Mobility Co., Ltd.		30,000		—		(30,000	)		—			—
Nextrade Co., Ltd.		56,202		—		—			—			56,202
ZIPDOC Inc.		915		—		—			(262	)		653
TeamSparta Inc.		12,502		—		—			1,217			13,719
Chabot Mobility Co., Ltd.		86		—		—			(28	)		58
Wemade Connect Co., Ltd.		10,370		9,500		(7,717	)		(2,016	)		10,137
Channel Corporation		3,000		3,000		(3,000	)		—			3,000
Key management personnel		17,619		5,193		(4,541	)		3,441			21,712

1	Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount.

2	Excluded from the Group’s related party as of March 31, 2024.

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.5 Details of significant investment and withdrawal transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024				2023
	Equity investment and others		Withdrawal and others		Equity investment and others		Withdrawal and others
Balhae Infrastructure Company		—		1,541		—		979
KB-SJ Tourism Venture Fund		—		2,910		—		—
Korea Credit Bureau Co., Ltd.		—		90		—		90
KB-Solidus Global Healthcare Fund		—		700		—		—
December & Company Inc. *		—		—		—		19,171
KB Material and Parts No.1 PEF		—		3,400		—		—
KB-TS Technology Venture Private Equity Fund		—		1,344		—		672
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		—		2,228		—		1,600
Aju Good Technology Venture Fund		—		560		—		3,800
G payment Joint Stock Company		113		—		312		—
Paramark KB Fund No.1		3,180		—		—		—
FineKB Private Equity Fund No.1		6,790		—		—		2,141
KB-BridgePole Venture Investment Fund *		—		136		—		—
JS Private Equity Fund No.3		—		755		—		—
Star-Lord General Investors Private Real Estate Investment Company No.10		—		—		—		363
KB Co-Investment Private Equity Fund No.1		759		—		—		—
KB-NP Green ESG New Technology Venture Capital Fund		4,350		—		4,350		—
KB-Badgers Future Mobility ESG Fund No.1		1,314		—		2,295		—
Lakewood-AVES Fund No.1		—		—		2,000		—
MW-Pyco NewWave New Technology Investment Fund 4th		—		—		2,000		—
KB No.25 Special Purpose Acquisition Company		—		—		5		—
Friend 55 New Technology Business Investment Fund *		—		1,200		—		—
Shinhan-Eco Venture Fund 2nd		200		—		—		—
U-KB Credit No.1S Private Equity		63		—		—		—
KB No.28 Special Purpose Acquisition Company		5		—		—		—
Timefolio Athleisure Investment Fund		4,000		—		—		—
COMPA Global Scale-Up Fund No.3		1,000		—		—		—
AKK Robotech Valueup New Technology Investment Fund		1,000		—		—		—
YG MCE PROJECT NO.1 Fund		1,500		—		—		—
KB No.29 Special Purpose Acquisition Company		10		—		—		—

*	Excluded from the Group’s related party as of March 31, 2024.

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.6 Unused commitments provided to related parties as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won or in a US Dollar or Malaysian ringgit or the Indonesian Rupiah)		March 31, 2024		December 31, 2023
Associates and joint ventures
Balhae Infrastructure Company	Purchase of securities		6,154		6,154
Korea Credit Bureau Co., Ltd.	Unused lines of credit for credit card		427		563
Incheon Bridge Co., Ltd.	Loan commitments in Korean won		20,000		20,000
	Unused lines of credit for credit card		88		88
TeamSparta Inc.	Loan commitments in Korean won		1,000		1,000
	Unused lines of credit for credit card		368		633
3D Interactive Co., Ltd.	Unused lines of credit for credit card		30		8
Food Factory Co., Ltd.	Unused lines of credit for credit card		52		55
CellinCells Co., Ltd.	Unused lines of credit for credit card		22		21
RAND Bio Science Co., Ltd.	Unused lines of credit for credit card		24		24
Big Dipper Co., Ltd.	Unused lines of credit for credit card		30		31
Gomi corporation Inc.	Unused lines of credit for credit card		38		45
COSES GT Co., Ltd.	Unused lines of credit for credit card		28		29
Spark Biopharma Inc.	Unused lines of credit for credit card		35		33
Mantisco Co., Ltd.	Unused lines of credit for credit card		22		17
IMBiologics Corp.	Unused lines of credit for credit card		21		18
SuperNGine Co., Ltd.	Unused lines of credit for credit card		37		37
IGGYMOB Co., Ltd.	Unused lines of credit for credit card		43		43
Pin Therapeutics Inc.	Unused lines of credit for credit card		41		39
Grinergy Co., Ltd.	Unused lines of credit for credit card		8		10
S&E Bio Co., Ltd.	Unused lines of credit for credit card		44		37
Wemade Connect Co., Ltd.	Unused lines of credit for credit card		166		156
TMAP Mobility Co., Ltd.	Unused lines of credit for credit card		758		710
Contents First Inc.	Unused lines of credit for credit card		444		135
Bigwave Robotics Crop.	Unused lines of credit for credit card		69		69
New Daegu Busan Expressway Co., Ltd.	Unused lines of credit for credit card		14		—
AIM FUTURE, Inc.	Unused lines of credit for credit card		38		—
Novorex Inc.	Unused lines of credit for credit card		11		—
Xenohelix Co., Ltd.	Unused lines of credit for credit card		10		—
KB-TS Technology Venture Private Equity Fund	Purchase of securities		110		110
KB-Stonebridge Secondary Private Equity Fund	Purchase of securities		864		864
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Purchase of securities		13,488		13,488
All Together Korea Fund No.2	Purchase of securities		990,000		990,000
KB-KTB Technology Venture Fund	Purchase of securities		5,600		5,600

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Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.6 Unused commitments provided to related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won or in a US Dollar or the Indonesian Rupiah)		March 31, 2024		December 31, 2023
KB-SOLIDUS Healthcare Investment Fund	Purchase of securities		46,884		46,884
KB Co-Investment Private Equity Fund No.1	Purchase of securities		12,765		13,524
KB-Badgers Future Mobility ESG Fund No.1	Purchase of securities		36,009		37,323
U-KB Credit No.1 Private Equity	Purchase of securities		33,520		33,582
KB-NP Green ESG New Technology Venture Capital Fund	Purchase of securities		25,200		29,550
FineKB Private Equity Fund No.1	Purchase of securities		2,335		9,125
FineKB Private Equity Fund No.2	Purchase of securities		—		500
KB-Solidus Global Healthcare Fund	Purchase of securities		2,120		2,120
	Commitments on loss absorption priority		4,500		4,500
Paramark KB Fund No.1	Purchase of securities		11,310		14,490
Smart Korea KB Future9-Sejong Venture Fund	Purchase of securities		2,000		2,000
Shinhan-Eco Venture Fund 2nd	Purchase of securities		475		675
RMGP Bio-Pharma Investment Fund, L.P.	Purchase of securities		USD 3,039,947		USD 3,622,333
RMGP Bio-Pharma Investment, L.P.	Purchase of securities		USD 9,076		USD 10,027
RMG-KB BP Management Ltd.	Purchase of securities		USD 645,302		USD 630,679
RMG-KB BioAccess Fund L.P.	Purchase of securities		USD 24,478,080		USD 24,722,014
Elev8-Capital Fund I	Purchase of securities		IDR 2,445,497,800		IDR 2,445,497,800
Ascent Global Fund III	Purchase of securities		USD 35,000,000		USD 35,000,000
Key management personnel	Loan commitments in Korean won		2,873		2,666

158

Table of Contents

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.7 Details of compensation to key management personnel for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Short-term employee benefits		Post-employment benefits		Share-based payments		Total
Registered directors (executive)		2,771		263		4,466		7,500
Registered directors (non-executive)		278		—		—		278
Non-registered directors		2,925		133		9,585		12,643

		5,974		396		14,051		20,421

(In millions of Korean won)	2023
	Short-term employee benefits		Post-employment benefits		Share-based payments		Total
Registered directors (executive)		2,139		261		1,103		3,503
Registered directors (non-executive)		290		—		—		290
Non-registered directors		3,994		182		2,751		6,927

		6,423		443		3,854		10,720

159

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

33.8 Details of collateral provided by related parties as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	Assets held as collateral	March 31, 2024		December 31, 2023
Key management personnel	Time deposits and others		648		638
	Real estate		6,693		6,326

As of March 31, 2024, Incheon Bridge Co., Ltd., a related party of the Group, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to 611,000 million to the project financing group consisting of the Group and 5 other institutions, and as subordinated collateral amounting to 384,800 million to subordinated debt holders consisting of the Group and 2 other institutions. Also, it provides certificate of credit guarantee amounting to 400,000 million as collateral to the project financing group consisting of the Group and 5 other institutions.

34. Events after the reporting period

According to the resolution of the board of directors on April 25, 2024, the quarterly dividend per share of 784 (total dividend: 300,087 million) with dividend record date of March 31, 2024 were paid on May 9, 2024. The Group’s financial statements as of March 31, 2024, do not reflect this dividend payable. As a result of exercising the call option for the Group’s 1-1st write-down contingent convertible bonds on May 2, 2024, 350,000 million was fully redeemed before maturity.

160

EX-99.2 3 d830917dex992.htm EX-99.2 EX-99.2 Table of Contents

Exhibit 99.2

KB Financial Group Inc.

Separate Interim Financial Statements

March 31, 2024 and 2023

(Unaudited)

Table of Contents

KB Financial Group Inc.


	Page(s)
Report on Review of Condensed Separate Interim Financial Statements		3-4

Separate Interim Financial Statements

Separate Interim Statements of Financial Position		5

Separate Interim Statements of Comprehensive Income		6

Separate Interim Statements of Changes in Equity		7

Separate Interim Statements of Cash Flows		8

Notes to the Separate Interim Financial Statements		9-54

Table of Contents

Report on Review of Condensed Separate Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and the Board of Directors of

KB Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of KB Financial Group Inc. (the “Company”). These condensed separate interim financial statements consist of the separate interim statement of financial position of the Company as at March 31, 2024, and the related separate interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2024 and 2023, and material accounting policy information and other selected explanatory notes, expressed in Korean Won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed separate interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) No.1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed separate interim financial statements based on our review.

Conclusion

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

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Other Matters

We have audited the separate statement of financial position of the Company as at December 31, 2023, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements in our audit report dated March 6, 2024. The separate statement of financial position as at December 31, 2023, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2023.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

May 16, 2024

This report is effective as of May 16, 2024, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

Table of Contents

KB Financial Group Inc.

Separate Interim Statements of Financial Position

March 31, 2024 and December 31, 2023


(In millions of Korean won)	Notes		March 31, 2024 (Unaudited)			December 31, 2023
Assets
Cash and due from financial institutions		4,5,6,23		2,621,612			256,337
Financial assets at fair value through profit or loss		4,5,7		1,062,613			1,376,423
Loans measured at amortized cost		4,5,8		643,195			608,286
Investments in subsidiaries		9		26,717,817			26,717,817
Property and equipment				3,766			3,080
Intangible assets				15,409			15,954
Net defined benefit assets		13		3,347			3,694
Deferred income tax assets		10		7,873			4,492
Other assets		4,5		1,069,424			542,815

Total assets				32,145,056			29,528,898

Liabilities
Borrowings		4,5,11		465,000			100,000
Debentures		4,5,12		3,267,247			3,871,820
Current income tax liabilities				127,739			104,299
Other liabilities		4,5		1,093,802			410,704

Total liabilities				4,953,788			4,486,823

Equity		14
Share capital				2,090,558			2,090,558
Hybrid securities				5,431,563			5,032,518
Capital surplus				14,748,242			14,754,747
Accumulated other comprehensive loss				(6,762	)		(6,809	)
Retained earnings				5,924,441			4,336,898
Treasury shares				(996,774	)		(1,165,837	)

Total equity				27,191,268			25,042,075

Total liabilities and equity				32,145,056			29,528,898

The above separate interim statements of financial position should be read in conjunction with the accompanying Separate Interim Statements of Comprehensive Income

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KB Financial Group Inc.

Three-Month Periods Ended March 31, 2024 and 2023


(In millions of Korean won, except per share amounts)	Notes		2024			2023
Interest income				9,817			6,670
Interest income from financial instruments at amortized cost				9,115			5,551
Interest income from financial instruments at fair value through profit or loss				702			1,119
Interest expense				(23,542	)		(26,724	)

Net interest expense		16		(13,725	)		(20,054	)

Fee and commission income				378			372
Fee and commission expense				(1,520	)		(1,619	)

Net fee and commission expense		17		(1,142	)		(1,247	)

Net gains (losses) on financial instruments at fair value through profit or loss		18		15,579			45,428

Net other operating income		19		2,243,250			2,192,380

General and administrative expenses		20		(24,187	)		(22,902	)

Operating income before provision for credit losses				2,219,775			2,193,605
Provision for credit losses				(96	)		—

Net operating income				2,219,679			2,193,605
Net non-operating income (expense)				(646	)		13

Profit before tax				2,219,033			2,193,618
Income tax benefit (expense)		21		3,586			(10,691	)

Profit for the period				2,222,619			2,182,927

Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities				47			17

Other comprehensive income(loss) for the period, net of tax				47			17

Total comprehensive income for the period				2,222,666			2,182,944

Earnings per share		22
Basic earnings per share				5,706			5,520
Diluted earnings per share				5,612			5,394

The above separate interim statements of comprehensive income should be read in conjunction with the accompanying notes.

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KB Financial Group Inc.

Separate Interim Statements of Changes in Equity

Three-Month Periods Ended March 31, 2024 and 2023


(In millions of Korean won)	Share capital		Hybrid securities		Capital surplus			Accumulated other comprehensive income			Retained earnings			Treasury shares			Total equity
Balance as of January 1, 2023		2,090,558		4,433,981		14,754,747			(5,847	)		3,794,565			(836,188	)		24,231,816

Comprehensive income for the period
Profit for the period		—		—		—			—			2,182,927			—			2,182,927
Remeasurements of net defined benefit liabilities		—		—		—			17			—			—			17

Total comprehensive income for the period		—		—		—			17			2,182,927			—			2,182,944

Transactions with shareholders
Annual dividends		—		—		—			—			(564,970	)		—			(564,970	)
Acquisition of treasury shares		—		—		—			—			—			(271,745	)		(271,745	)
Issuance of hybrid securities		—		598,537		—			—			—			—			598,537
Dividends on hybrid securities		—		—		—			—			(40,703	)		—			(40,703	)

Total transactions with shareholders		—		598,537		—			—			(605,673	)		(271,745	)		(278,881	)

Balance as of March 31, 2023		2,090,558		5,032,518		14,754,747			(5,830	)		5,371,819			(1,107,933	)		26,135,879

Balance as of January 1, 2024		2,090,558		5,032,518		14,754,747			(6,809	)		4,336,898			(1,165,837	)		25,042,075

Comprehensive income for the period
Profit for the period		—		—		—			—			2,222,619			—			2,222,619
Remeasurements of net defined benefit liabilities		—		—		—			47			—			—			47

Total comprehensive income for the period		—		—		—			47			2,222,619			—			2,222,666

Transactions with shareholders
Annual dividends		—		—		—			—			(587,006	)		—			(587,006	)
Acquisition of treasury shares		—		—		—			—			—			(65,537	)		(65,537	)
Disposal of treasury shares		—		—		—			—			—			234,600			234,600
Consideration for exchange right of exchangeable bonds		—		—		(11,933	)		—			—			—			(11,933	)
Issuance of hybrid securities		—		399,045		—			—			—			—			399,045
Dividends on hybrid securities		—		—		—			—			(48,070	)		—			(48,070	)
Others		—		—		5,428			—			—			—			5,428

Total transactions with shareholders		—		399,045		(6,505	)		—			(635,076	)		169,063			(73,473	)

Balance as of March 31, 2024		2,090,558		5,431,563		14,748,242			(6,762	)		5,924,441			(996,774	)		27,191,268

The above separate interim statements of changes in equity should be read in conjunction with the accompanying notes.

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KB Financial Group Inc.

Separate Interim Statements of Cash Flows

Three-Month Periods Ended March 31, 2024 and 2023


(In millions of Korean won)	Notes		2024			2023
Cash flows from operating activities
Profit for the period				2,222,619			2,182,927

Adjustment for non-cash items
Depreciation and amortization expense				1,526			1,446
Provision for credit losses				96			—
Share-based payments				4,573			1,098
Net interest expense				1,290			731
Valuation losses (gains) on financial assets at fair value through profit or loss				(1,847	)		(32,503	)
Net other income (expense)				1,023			380

				6,661			(28,848	)

Changes in operating assets and liabilities
Deferred income tax assets				(3,586	)		10,692
Other assets				(417,743	)		(2,038	)
Other liabilities				(5,573	)		(3,624	)

				(426,902	)		5,030

Net cash inflow from operating activities				1,802,378			2,159,109

Cash flows from investing activities
Disposal of financial assets at fair value through profit of loss				316,080			300,000
Increase in loans measured at amortized cost				(35,000	)		—
Acquisition of property and equipment				(7	)		(95	)
Acquisition of intangible assets				(74	)		(140	)
Disposal of intangible assets				—			34
Net increase in guarantee deposits paid				1,607			78
Other investing activities				—			(161	)

Net cash inflow from investing activities				282,606			299,716

Cash flows from financing activities
Increase in borrowings				365,000			—
Decrease in debentures				(370,000	)		(410,000	)
Redemption of principal of lease liabilities				(147	)		(139	)
Acquisition of treasury shares				(65,537	)		(271,745	)
Issuance of hybrid securities				399,045			598,537
Dividends paid on hybrid securities				(48,070	)		(40,704	)

Net cash inflow (outflow) from financing activities				280,291			(124,051	)

Net increase in cash and cash equivalents				2,365,275			2,334,774
Cash and cash equivalents at the beginning of the period		23		116,334			231,053

Cash and cash equivalents at the end of the period		23		2,481,609			2,565,827

The above separate statements of cash flows should be read in conjunction with the accompanying notes.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

1. The Company

KB Financial Group Inc. (the “Company”), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfers with the former shareholders of Kookmin Bank, KB Investment & Securities Co., Ltd., KB Asset Management Co., Ltd., KB Real Estate Trust Co., Ltd., KB Investment Co., Ltd., KB Futures Co., Ltd., KB Credit Information Co., Ltd., and KB Data Systems Co., Ltd., and the Company’s main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. The Company’s share capital as of March 31, 2024, is 2,090,558 million. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd., and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Company established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Company acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Company included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Company included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd. The Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on June 30, 2023.

The Company has been listed on the Korea Exchange (“KRX”) since October 10, 2008, and on the New York Stock Exchange (“NYSE”) for its American Depositary Shares (“ADS”) since September 29, 2008. Number of shares authorized on its Articles of Incorporation is 1,000 million.

2. Basis of Preparation

2.1 Application of Korean IFRS

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying separate financial statements have been translated into English from the Korean language separate financial statements.

The separate financial statements of the Company have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”) that have been adopted by the Republic of Korea.

The preparation of separate financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Company’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

The separate financial statements have been prepared in accordance with Korean IFRS No.1027 Separate Financial Statements.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

2.1 Application of Korean IFRS (cont’d)

The Company’s condensed separate interim financial statements for the three-month period ended March 31, 2024, have been prepared in accordance with Korean IFRS No.1034 Interim Financial Reporting and contain less information than is required in annual separate financial statements. Selected explanatory notes include descriptions of transactions or events that are significant in understanding change in financial position and financial performance of the Company since the end of the previous annual reporting period. These separate interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of March 31, 2024.

2.1.1 The Company has applied the following new and amended standards for the first time for its annual reporting period commencing January 1, 2024.

•

Amendment of Korean IFRS No.1001 “Presentation of Financial Statements” – Classification of Liabilities into Current and Non-Current and Non-current Liabilities with Covenants

•

Amendment of Korean IFRS No.1007 “Statement of Cash Flows” and No.1107 “Financial Instruments: Disclosures” – Disclosure of Supplier Finance Arrangements

The amendments require disclosure of the effects of supplier finance arrangements on the Company’s liabilities, cash flows and exposure to liquidity risk. These amendments do not have a significant impact on the financial statements.

•

Amendment of Korean IFRS No.1116 “Leases” – Lease Liability in a Sale and Leaseback

•

Amendment of Korean IFRS No.1001 “Presentation of Financial Statements” – Disclosure of Virtual Asset

The amendments require additional disclosure for virtual assets held by the Company, virtual assets entrusted by customers to the Company, and the issuance and transfer of virtual assets. These amendments do not have a significant impact on the financial statements.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

2.1.2 The following are the accounting standards that have been established or announced but have not yet been implemented, which the Group has not applied

•

Amendment of Korean IFRS No.1021 “The Effects of Changes in Foreign Exchange Rates” and Korean IFRS No.1101 “First-time Adoption of International Financial Reporting Standards” – Lack of exchangeability

The amendments require the Company to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Company is exposed. This amendment will be applied to the financial statements for the accounting year beginning on or after January 1, 2025. These amendments do not have a significant impact on the financial statements.

2.2 Measurement Basis

The separate financial statements have been prepared under the historical cost convention unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the separate financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (“functional currency”). The separate financial statements are presented in Korean won, which is the Company’s functional and presentation currency.

2.4 Critical Accounting Estimates

The Company applies accounting policies and uses judgements, accounting estimates, and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses) in preparing the separate financial statements. Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

Uncertainties in estimates and assumptions with significant risks used in the preparation of these condensed separate interim financial statements are the same as 2023 financial statements, except for the method of estimating income tax expense.

3. Material Accounting Policies

The material accounting policies and calculation methods applied in the preparation of these condensed separate interim financial statements are the same as those applied to the separate financial statements for the year ended December 31, 2023, except for the impact of changes due to adopting new and amended standards and interpretations described in Note 2.1 and below paragraph.

The Company is subject to Pillar2 income taxes, and has applied a temporary exemption provision regarding the recognition and disclosure of deferred taxes related to the Pillar 2 rules.

Income tax expense for the interim period is measured applying the expected average annual income tax rate applicable on expected total annual income.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

The financial risks that the Company is exposed to are credit risk, market risk, liquidity risk, operational risk and others.

This note regarding financial risk management provides information about the risks that the Company is exposed to and about its objectives, policies, risk assessment and management procedures, and capital management. Additional quantitative information is disclosed throughout the separate financial statements.

The Company’s risk management system focuses on efficiently supporting long-term strategy and management decisions of the Company by increasing risk transparency, preventing risk transfer between subsidiaries and preemptive response to rapidly changing financial environments. Credit risk, market risk, liquidity risk, operational risk, interest rate risk, insurance risk, credit concentration risk, strategy risk, and reputation risk are recognized as significant risks.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

4.1.2.2 Risk Management Council

The Risk Management Council is responsible for consulting on matters delegated by the Risk Management Committee and requests for review by the Group Management Executive Committee, consulting on details of each subsidiary’s risk management policies and procedures, monitoring the Group’s risk management status, and establishing and implementing necessary measures.

4.1.2.3 Risk Management Department

The Risk Management Department performs the Company’s risk management detailed policies, procedures, and business processes, and is responsible for calculating the Group’s risk-weighted assets, monitoring and managing internal capital limits.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty’s default, breach of contract, and deterioration of credit quality. For risk management purposes, the Company considers default risk of individual borrowers.

4.2.2 Credit risk management

The Company measures the expected losses of assets subject to credit risk management and uses them as a management indicator.

4.2.3 Maximum exposure to credit risk

The Company’s maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Due from financial institutions		2,621,612		256,337
Loans measured at amortized cost *		643,195		608,286
Loans measured at fair value through profit or loss		49,753		48,981
Other financial assets *		462,889		57,562
		3,777,449		971,166

*	After netting of allowance

4.2.4 Credit risk of loans

The Company maintains allowances for loan losses associated with credit risk of loans to manage its credit risk.

The Company assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial asset at fair value through other comprehensive income. Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurring in a certain range by reflecting reasonable and supportable information that is reasonably available at the end of the reporting period without undue cost or effort, including information about past events, current conditions, and forecasts of future economic conditions. The Company measures the expected credit losses on loans classified as financial assets at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income in the financial statements.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.4 Credit risk of loans (cont’d)

Credit qualities of loans measured at amortized cost as of March 31, 2024 and December 31 2023, are classified as follows:


	March 31, 2024
(In millions of Korean won)	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Not-impaired		Impaired		Not applying expected credit losses		Total
Loans measured at amortized cost *
Corporate
Grade 1		645,000		—		—		—		645,000
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		645,000		—		—		—		645,000


	December 31, 2023
(In millions of Korean won)	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
	12-month expected credit losses		Not-impaired		Impaired		Not applying expected credit losses		Total
Loans measured at amortized cost *
Corporate
Grade 1		610,000		—		—		—		610,000
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		610,000		—		—		—		610,000

*	Before netting of allowance

Credit qualities of loans graded according to the probability of default as March 31, 2023 and December 31 2022, are as follows:


		Range of probability of default (%)
Grade 1		0.0 ~ 1.0
Grade 2		1.0 ~ 5.0
Grade 3		5.0 ~ 15.0
Grade 4		15.0 ~ 30.0
Grade 5		30.0 ~

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.5 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of March 31, 2024 and December 31 2023, are as follows:


	March 31, 2024
	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
(In millions of Korean won)	12-month expected credit losses		Not-impaired		Impaired		Not applying expected credit losses		Total
Due from financial institutions measured at amortized cost
Grade 1		2,621,612		—		—		—		2,621,612
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		2,621,612		—		—		—		2,621,612


	December 31, 2023
(In millions of Korean won)	12-month expected credit losses		Lifetime expected credit losses				Not applying expected credit losses		Total
(In millions of Korean won)	12-month expected credit losses		Not-impaired		Impaired		Not applying expected credit losses		Total
Due from financial institutions measured at amortized cost
Grade 1		256,337		—		—		—		256,337
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		256,337		—		—		—		256,337

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.2.6 Credit risk concentration analysis

4.2.6.1 Classifications of corporate loans by industry as of March 31, 2024 and December 31, 2023, are as follows:


	March 31, 2024
(In millions of Korean won)	Corporate loans *		%		Allowances			Carrying amount
Financial institutions		694,753		100.00		(1,805	)		692,948


	December 31, 2023
(In millions of Korean won)	Corporate loans *		%		Allowances			Carrying amount
Financial institutions		658,981		100.00		(1,714	)		657,267

*	Amount includes loans measured at fair value through profit or loss and amortized cost.

4.2.6.2 Classifications of due from financial institutions by industry as of March 31, 2024 and December 31 2023, are as follows:


	March 31, 2024
(In millions of Korean won)	Amount		%		Allowances		Carrying amount
Due from financial institutions measured at amortized cost
Financial institutions		2,621,612		100.00		—		2,621,612


	December 31, 2023
(In millions of Korean won)	Amount		%		Allowances		Carrying amount
Due from financial institutions measured at amortized cost
Financial institutions		256,337		100.00		—		256,337

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Company becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Company manages its liquidity risk through analysis of the contractual maturity of all financial assets and liabilities and discloses in six categories such as on demand, less than one month, between one month to three months, between three months to one year, between one year to five years, and over five years.

4.3.2. Liquidity risk management

4.3.3. Analysis of remaining contractual maturity of financial liabilities

The cash flows disclosed in the maturity analysis are undiscounted contractual amounts including principal and future interest payments; as such, amounts in the table below do not match with those in the statements of financial position which are based on discounted cash flows. The future interest payments for floating-rate liabilities are calculated on the assumption that the current interest rate is the same until maturity.

Remaining contractual maturity of financial liabilities as of March 31, 2024 and December 31 2023, are as follows:


	March 31, 2024
(In millions of Korean won)	On Demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Financial liabilities
Borrowings		—		—		—		465,000		—		—		465,000
Debentures		—		3,074		301,313		568,281		1,661,184		979,272		3,513,124
Lease liabilities		—		51		93		409		730		—		1,283
Other financial liabilities		—		601,547		—		5,391		—		—		606,938

	—		604,672		301,406		1,039,081		1,661,914		979,272		4,586,345


	December 31, 2023
(In millions of Korean won)	On Demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Financial liabilities
Borrowings		—		—		—		100,000		—		—		100,000
Debentures		—		3,074		388,246		757,507		1,880,375		1,115,241		4,144,443
Lease liabilities		—		50		62		256		245		—		613
Other financial liabilities		—		2,063		—		—		—		—		2,063

		—		5,187		388,308		857,763		1,880,620		1,115,241		4,247,119

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc. The Company manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position.

4.4.2 Trading position

In accordance with Financial Holding Companies Act, the Company’s main business is to control financial companies or companies closely related to the financial service. And the Company cannot perform any other business other than managing activities as a holding company, therefore there is no risk of trading position.

4.4.3 Non-trading position

Non-trading position refers to the part except trading position, and the main risk the Company is managing is interest rate risk.

4.4.3.1 Interest rate risk

(a) Definition of interest rate risk

Interest rate risk refers to the risk of changes in the value (fair value) of the items in the statement of financial position due to changes in interest rate and the risk of changes in cash flows related to interest income and interest expense arising from investment and financing activities.

(b) Observation method and management indicator on interest rate risk

The main objective of interest rate risk management is to protect the value changes from interest rate fluctuations. In addition to the Interest Rate Risk in the Banking Book (“IRRBB”) standard methodology required for disclosure to measure interest rate risk.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5. Financial Assets and Financial Liabilities

5.1 Classification and Fair Value of Financial Instruments

5.1.1 Carrying amount and fair value of financial assets and liabilities by category as of March 31, 2024 and December 31, 2023, are as follows:


	March 31, 2024
(In millions of Korean won)	Carrying amount		Fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities		1,012,860		1,012,860
Loans		49,753		49,753
Financial assets at amortized cost
Due from financial institutions		2,621,612		2,621,612
Loans		643,195		643,195
Other financial assets		462,889		462,889

		4,790,309		4,790,309

Financial liabilities
Financial liabilities at amortized cost
Borrowings		465,000		465,000
Debentures		3,267,247		3,135,782
Other financial liabilities		615,122		615,122
		4,347,369		4,215,904


	December 31, 2023
(In millions of Korean won)	Carrying amount		Fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities		1,011,362		1,011,362
Beneficiary certificates		316,080		316,080
Loans		48,981		48,981
Financial assets at amortized cost
Due from financial institutions		256,337		256,337
Loans		608,286		608,286
Other financial assets		57,562		57,562

		2,298,608		2,298,608

Financial liabilities
Financial liabilities at amortized cost
Borrowings		100,000		100,000
Debentures		3,871,820		3,715,939
Other financial liabilities		10,381		10,381

		3,982,201		3,826,320

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company discloses the fair value of each class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is quoted price in an active market.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1.1 Carrying amount and fair value of financial assets and liabilities by category as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)

Methods of determining fair value of financial instruments are as follows:


Cash and due from financial institutions		Fair value of cash is same as carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable on demand. Fair value of general deposit is measured using Discounted Cash Flow (“DCF”) Model.

Securities		Fair value of financial instruments that are quoted in an active market is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments among DCF Model, Imputed Market Value Model, Free Cash Flow to Equity Model, Dividend Discount Model, Risk Adjusted Discount Rate Method, and Net Asset Value Method.

Derivatives		Fair value of exchange traded derivatives is determined using quoted price in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Company uses internally developed valuation models that are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including the Finite Difference Method (“FDM”), and the MonteCarlo Simulation or valuation results from independent external professional valuation institution.

Loans		Fair value of loans is determined using DCF model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.

Borrowings		DCF model is used to determine the fair value of borrowings, but in the case of short-term maturity, carrying amount is a reasonable approximation of fair value.

Debentures		Fair value is determined by using valuation results of external professional valuation institutions, which are calculated using market inputs.

Other financial assets and other financial liabilities		Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions and their maturities are relatively short or not defined.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1.2 Fair value hierarchy

The Company believes that valuation techniques used for measuring the fair value of financial instruments are reasonable and that the fair value recognized in the statements of financial position is appropriate. However, the fair value of the financial instruments recognized in the statements of financial position may be different if other valuation techniques or assumptions are used. Additionally, as there are a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

The Company classifies and discloses fair value of the financial instruments into the three fair value levels as follows:


Level 1 :		The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 :		The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 :		The fair values are based on unobservable inputs for the asset or liability.

5.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the statements of financial position

Fair value hierarchy of financial assets at fair value in the statements of financial position as of March 31, 2024 and December 31, 2023, are as follows:


	March 31, 2024
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities		—		—		1,012,860		1,012,860
Loans		—		49,753		—		49,753

		—		49,753		1,012,860		1,062,613


	December 31, 2023
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities		—		—		1,011,362		1,011,362
Beneficiary certificates		—		316,080		—		316,080
Loans		—		48,981		—		48,981

		—		365,061		1,011,362		1,376,423

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the statements of financial position (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the statements of financial position as of March 31, 2024 and December 31, 2023, are as follows:

March 31, 2024

(In millions of Korean won)

Fair value

Valuation
techniques

Inputs

Financial assets

Financial assets at fair value through profit or loss:

Loans

49,753

DCF model

Interest rate,

Discount rate, etc.

December 31, 2023

(In millions of Korean won)

Fair value

Valuation
techniques

Inputs

Financial assets

Financial assets at fair value through profit or loss:

Beneficiary certificates

316,080

DCF model

Interest rate,

Discount rate, etc.

Loans

48,981

DCF model

Interest rate,

Discount rate, etc.

365,061

5.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of March 31, 2024 and December 31, 2023, are as follows:


	March 31, 2024
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		—		2,621,612		—		2,621,612
Loans measured at amortized cost 2		—		—		643,195		643,195
Other financial assets 3		—		—		462,889		462,889

		—		2,621,612		1,106,084		3,727,696

Financial liabilities
Borrowings 4		—		465,000		—		465,000
Debentures		—		3,135,782		—		3,135,782
Other financial liabilities 3		—		—		615,122		615,122

		—		3,600,782		615,122		4,215,904

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)


	December 31, 2023
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		—		256,337		—		256,337
Loans measured at amortized cost 2		—		—		608,286		608,286
Other financial assets 3		—		—		57,562		57,562

		—		256,337		665,848		922,185

Financial liabilities
Borrowings 4		—		100,000		—		100,000
Debentures		—		3,715,939		—		3,715,939
Other financial liabilities 3		—		—		10,381		10,381

		—		3,815,939		10,381		3,826,320

1	Because due from financial institutions classified as level 2 are deposits on demand and with remaining maturities of less than one year, carrying amounts are reasonable approximations of fair values.

2	Because loans measured at amortized cost classified as level 3 are loans with residual maturity of less than one year, carrying amounts are reasonable approximations of fair values.

3	For other financial assets and other financial liabilities classified as level 3, carrying amounts are reasonable approximations of fair values.

4	For borrowings classified as level 2, carrying amount is reasonable approximations of fair value.

Financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, valuation techniques and inputs are not disclosed.

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of March 31, 2024 and December 31, 2023, are as follows:

Fair value

Valuation
techniques

Inputs

(In millions of Korean won)

March 31,
2024

December 31,
2023

Financial liabilities

Debentures

3,135,782

3,715,939

DCF
model

Discount
rate

5.2 Disclosure of Fair Value Hierarchy Level 3

5.2.1 Valuation policy and process of Level 3 fair value

The Company uses external, independent and qualified valuation service to determine the fair value of financial instruments at the end of every reporting period.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.2.2 Changes in fair value (Level 3) measured using valuation technique based on unobservable inputs in the market

5.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the three-month periods ended March 31, 2024 and 2023, are as follows:


	2024		2023
(In millions of Korean won)	Financial assets at fair value through profit or loss		Financial assets at fair value through profit or loss
Beginning		1,011,363		874,171
Total gains or losses:
- Profit or loss		1,497		27,660
- Other comprehensive income		—		—
Purchases		—		—
Sales		—		—
Issues		—		—
Settlements		—		—
Transfers into Level 3		—		—
Transfers out of Level 3		—		—

Ending		1,012,860		901,831

5.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the three-month periods ended March 31, 2024 and 2023, are as follows:


	2024						2023
(In millions of Korean won)	Gains on financial instruments at fair value through profit or loss		Other operating income		Net interest income		Losses on financial instruments at fair value through profit or loss		Other operating income		Net interest income
Total gains (losses) included in profit or loss for the period		1,497		—		—		27,660		—		—
Total gains (losses) for the period included in profit or loss for financial instruments held at the end of the reporting period		1,497		—		—		27,660		—		—

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.2.3 Sensitivity analysis of changes in unobservable inputs

5.2.3.1 Information about fair value measurements using unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows:

March 31, 2024

(In millions of Korean won)

Fair
value

Valuation
techniques

Inputs

Unobservable
inputs

Range of
unobservable
inputs (%)

Relationship of
unobservable inputs
to fair value

Financial assets

Financial assets at fair value through profit or loss:

Hybrid securities

1,012,860

Hull and
White
Model,
MonteCarlo
Simulation

Matrix
YTM,
Additional
spread
by
grade,
Risk
spread of
company,
Valid
credit
rating,
Disclosed
information
of
securities,
Estimated
volatility
of
Interest
rate

Discount
rate

4.89 ~ 6.59

The lower the discount rate, the higher the fair value

Volatility
of
interest
rate

0.55

The higher the volatility, the higher the fair value fluctuation

December 31, 2023

(In millions of Korean won)

Fair
value

Valuation
techniques

Inputs

Unobservable
inputs

Range of
unobservable
inputs (%)

Relationship of
unobservable inputs
to fair value

Financial assets

Financial assets at fair value through profit or loss:

Hybrid securities

1,011,362

Hull and
White
Model,
MonteCarlo
Simulation

Matrix
YTM,
Additional
spread
by
grade,
Risk
spread of
company,
Valid
credit
rating,
Disclosed
information
of
securities,
Estimated
volatility
of
Interest
rate

Discount
rate

5.05 ~ 6.30

The lower the discount rate, the higher the fair value

Volatility
of
interest
rate

0.61

The higher the volatility, the higher the fair value fluctuation

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

5.2.3.2 Sensitivity analysis of changes in unobservable inputs

Results of the sensitivity analysis of changes in unobservable inputs as of March 31, 2024 and December 31, 2023, are as follows:

March 31, 2024

Profit or loss

Other comprehensive
income or loss

(In millions of Korean won)

Favorable
changes

Unfavorable
changes

Favorable
changes

Unfavorable
changes

Financial assets

Financial assets at fair value through profit or loss:

Hybrid securities *

10,664

(10,416

)

—

*	The changes in fair value are calculated by increasing or decreasing discount rates (4.89% ~ 6.59%) by 1%p, which are principal unobservable input parameters.

December 31, 2023

Profit or loss

Other comprehensive
income or loss

(In millions of Korean won)

Favorable
changes

Unfavorable
changes

Favorable
changes

Unfavorable
changes

Financial assets

Financial assets at fair value through profit or loss:

Hybrid securities *

6,866

(6,746

)

—

*	The changes in fair value are calculated by increasing or decreasing discount rates (5.05% ~ 6.30%) by 1%p, which are principal unobservable input parameters.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

6. Due from Financial Institutions

6.1 Details of due from financial institutions as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)		Financial Institution		Interest rate (%) as of March 31, 2024		March 31, 2024		December 31, 2023
Due from financial institutions in Korean won	Due from banks		Kookmin Bank		0.00 ~ 1.20		2,223,794		114,336
	Due from banks		KB Savings Bank Co., Ltd.		2.50 ~ 3.90		140,000		140,000
			Standard Chartered Bank		3.15		9,872		2,001
			Shinhan Bank		3.5		247,946		—

							2,621,612		256,337

6.2 Details of restricted due from financial institution as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)

Financial
Institution

March 31,
2024

December 31,
2023

Reasons of restriction

Due from financial institutions in Korean won

Kookmin Bank

Pledged as collateral for the
overdraft account

7. Financial Assets at Fair Value through Profit or Loss

Details of financial assets at fair value through profit or loss as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023

Financial assets at fair value through profit or loss:
Hybrid securities		1,012,860		1,011,362
Beneficiary certificates		—		316,080
Loans		49,753		48,981

		1,062,613		1,376,423

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

8. Loans Measured at Amortized Cost

Details of loans measured at amortized cost as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Loans measured at amortized cost		645,000			610,000
Less: Allowances for loan losses		(1,805	)		(1,714	)

		643,195			608,286

9. Investments in Subsidiaries

9.1 Details of subsidiaries as of March 31, 2024, are as follows:


Name of subsidiaries	Industry	Location
Kookmin Bank	Banking and foreign exchange transaction	Korea
KB Securities Co., Ltd.	Financial investment	Korea
KB Insurance Co., Ltd.	Non-life insurance	Korea
KB Kookmin Card Co., Ltd.	Credit card and installment financial business	Korea
KB Life Insurance Co., Ltd.	Life insurance	Korea
KB Asset Management Co., Ltd.	Investment advisory and investment trust	Korea
KB Capital Co., Ltd.	Financial leasing	Korea
KB Real Estate Trust Co., Ltd.	Real estate trust management	Korea
KB Savings Bank Co., Ltd.	Savings banking	Korea
KB Investment Co., Ltd.	Capital investment	Korea
KB Data System Co., Ltd.	System software, development and supply	Korea

9.2 Details of investments in subsidiaries as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won, except for shares)	As of March 31, 2024				Carrying amount
(In millions of Korean won, except for shares)
Name of subsidiaries	Number of issued shares		Ownership (%)		March 31, 2024		December 31, 2023
Kookmin Bank		404,379,116		100.00		14,821,721		14,821,721
KB Securities Co., Ltd.		298,620,424		100.00		3,342,391		3,342,391
KB Insurance Co., Ltd.		66,500,000		100.00		2,375,430		2,375,430
KB Kookmin Card Co., Ltd.		92,000,000		100.00		1,953,175		1,953,175
KB Life Insurance Co., Ltd.		16,201,518		100.00		2,795,367		2,795,367
KB Asset Management Co., Ltd.		7,667,550		100.00		96,312		96,312
KB Capital Co., Ltd.		32,175,147		100.00		873,811		873,811
KB Real Estate Trust Co., Ltd.		16,000,000		100.00		121,553		121,553
KB Savings Bank Co., Ltd.		8,001,912		100.00		176,813		176,813
KB Investment Co., Ltd.		22,525,328		100.00		154,910		154,910
KB Data System Co., Ltd.		800,000		100.00		6,334		6,334

						26,717,817		26,717,817

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

10. Deferred Income Tax Assets and Liabilities

Details of deferred income tax assets and liabilities as of March 31, 2024 and December 31, 2023, are as follows:


	March 31, 2024
(In millions of Korean won)	Assets			Liabilities			Net amount
Share-based payments		4,300			—			4,300
Membership rights		227			—			227
Defined benefit obligation		1,800			—			1,800
Plan assets		—			(2,890	)		(2,890	)
Short-term employee benefits		717			—			717
Losses on valuation of financial assets at fair value through profit or loss		4,524			—			4,524
Others		1,600			(2,405	)		(805	)

		13,168			(5,295	)		7,873

Offsetting of deferred tax assets and liabilities		(5,295	)		5,295			—

		7,873			—			7,873


	December 31, 2023
(In millions of Korean won)	Assets			Liabilities			Net amount
Share-based payments		4,704			—			4,704
Membership rights		227			—			227
Defined benefit obligation		2,369			—			2,369
Plan assets		—			(2,369	)		(2,369	)
Short-term employee benefits		403			—			403
Losses on valuation of financial assets at fair value through profit or loss		675			—			675
Others		2,159			(3,676	)		(1,517	)

		10,537			(6,045	)		4,492

Offsetting of deferred tax assets and liabilities		(6,045	)		6,045			—

		4,492			—			4,492

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

11. Borrowings

11.1 Details of borrowings as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023

Borrowings		465,000		100,000

11.2 Details of borrowings as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)

Lenders

Borrowing
date

Maturity
date

Interest rate
(%) as of
March 31, 2024

March 31,
2024

December 31,
2023

Borrowings in Korean won

Other borrowings

HI INVESTMENT & SECURITIES co., Ltd.

Jul. 21, 2023

Jul. 19, 2024

4.15

100,000

Other borrowings

KIWOOM SECURITIES co., Ltd.

Feb. 20, 2024

Feb. 18, 2025

3.81

200,000

—

Other borrowings

Hanyang SECURITIES co., Ltd.

Feb. 21, 2024

Feb. 19, 2025

3.81

65,000

—

Other borrowings

SK SECURITIES co., Ltd.

Mar. 21, 2024

Mar. 20, 2025

3.80

100,000

—

465,000

100,000

11.3 Maturities of borrowings as of March 31, 2024 are as follows:


	March 31, 2024
(In millions of Korean won)	Up to 3 months		3~6 months		6~12 months		1~3 years		Over 3 years		Total
Borrowings in Korean won		—		100,000		365,000		—		—		465,000

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

12. Debentures

12.1 Details of debentures as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	Issuance date	Maturity date	Interest rate (%) as of March 31, 2024		March 31, 2024		December 31, 2023
Unguaranteed debentures No.15-3	May 12, 2016	May 12, 2026		2.01		200,000		200,000
Unguaranteed debentures No.18-3	Jul. 25, 2016	Jul. 25, 2026		1.69		80,000		80,000
Unguaranteed debentures No.19-3	Aug. 25, 2016	Aug. 25, 2026		1.69		120,000		120,000
Unguaranteed debentures No.25-4	May 24, 2017	May 24, 2027		2.62		80,000		80,000
Unguaranteed debentures No.26-2	Jun. 27, 2017	Jun. 27, 2024		2.34		200,000		200,000
Unguaranteed debentures No.27	Jul. 19, 2017	Jul. 19, 2024		2.41		100,000		100,000
Unguaranteed debentures No.28-2	Aug. 30, 2017	Aug. 30, 2024		2.43		30,000		30,000
Unguaranteed debentures No.28-3	Aug. 30, 2017	Aug. 30, 2027		2.60		60,000		60,000
Unguaranteed debentures No.29-2	Sep. 19, 2017	Sep. 19, 2024		2.44		110,000		110,000
Unguaranteed debentures No.31-3	Feb. 28, 2018	Feb. 28, 2028		3.02		60,000		60,000
Unguaranteed debentures No.32-3	Apr. 6, 2018	Apr. 6, 2028		2.86		20,000		20,000
Unguaranteed debentures No.33-2	Jun. 12, 2018	Jun. 12, 2028		2.92		30,000		30,000
Unguaranteed debentures No.34-3	Jul. 25, 2018	Jul. 25, 2025		2.71		20,000		20,000
Unguaranteed debentures No.34-4	Jul. 25, 2018	Jul. 25, 2028		2.76		20,000		20,000
Unguaranteed debentures No.36-2	Feb. 22, 2019	Feb. 22, 2024		2.11		—		230,000
Unguaranteed debentures No.36-3	Feb. 22, 2019	Feb. 22, 2029		2.22		60,000		60,000
Unguaranteed debentures No.37-1	Mar. 15, 2019	Mar. 15, 2024		2.06		—		140,000
Unguaranteed debentures No.37-2	Mar. 15, 2019	Mar. 15, 2029		2.16		70,000		70,000
Unguaranteed debentures No.38-1	Jun. 19, 2019	Jun. 19, 2026		1.73		80,000		80,000
Unguaranteed debentures No.38-2	Jun. 19, 2019	Jun. 19, 2029		1.77		120,000		120,000
Unguaranteed debentures No.39-1	Oct. 15, 2019	Oct. 15, 2024		1.60		80,000		80,000
Unguaranteed debentures No.39-2	Oct. 15, 2019	Oct. 15, 2029		1.67		40,000		40,000
Unguaranteed debentures No.40-1	Dec. 4, 2019	Dec. 4, 2024		1.76		70,000		70,000
Unguaranteed debentures No.40-2	Dec. 4, 2019	Dec. 4, 2029		1.87		30,000		30,000
Unguaranteed debentures No.41-2	Jan. 16, 2020	Jan. 16, 2025		1.74		100,000		100,000
Unguaranteed debentures No.41-3	Jan. 16, 2020	Jan. 16, 2030		1.88		40,000		40,000
Subordinated debentures No.1-1	Feb. 18, 2020	Feb. 18, 2030		2.21		370,000		370,000
Subordinated debentures No.1-2	Feb. 18, 2020	Feb. 18, 2035		2.26		30,000		30,000
Unguaranteed debentures No.42-1	May 13, 2020	May 13, 2025		1.59		130,000		130,000
Unguaranteed debentures No.42-2	May 13, 2020	May 13, 2030		1.78		70,000		70,000
Unguaranteed debentures No.43-2	Jun. 16, 2020	Jun. 16, 2025		1.44		110,000		110,000
Unguaranteed debentures No.43-3	Jun. 16, 2020	Jun. 16, 2030		1.63		50,000		50,000
Exchangeable bonds No.1 *	Jun. 30, 2020	Jun. 30, 2025		—		—		240,000
Unguaranteed debentures No.44-3	Aug. 11, 2020	Aug. 9, 2024		1.18		30,000		30,000
Unguaranteed debentures No.44-4	Aug. 11, 2020	Aug. 11, 2027		1.39		20,000		20,000
Unguaranteed debentures No.46-2	Jan. 14, 2021	Jan. 14, 2026		1.43		30,000		30,000
Unguaranteed debentures No.46-3	Jan. 14, 2021	Jan. 14, 2028		1.62		10,000		10,000
Unguaranteed debentures No.46-4	Jan. 14, 2021	Jan. 14, 2031		1.84		100,000		100,000
Unguaranteed debentures No.48-1	Jun. 16, 2022	Jun. 17, 2024		4.15		85,000		85,000
Unguaranteed debentures No.48-2	Jun. 16, 2022	Jun. 16, 2025		4.27		240,000		240,000
Unguaranteed debentures No.48-3	Jun. 16, 2022	Jun. 16, 2027		4.34		80,000		80,000
Unguaranteed debentures No.48-4	Jun. 16, 2022	Jun. 16, 2032		4.40		95,000		95,000

						3,270,000		3,880,000

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

12.1 Details of debentures as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)	Issuance date	Maturity date	Interest rate (%) as of March 31, 2024	March 31, 2024			December 31, 2023

	Less: Bond Discounts				(2,753	)		(3,076	)
	Less: adjustment on exchange right				—			(5,104	)

					3,267,247			3,871,820

12.2 Maturities of debentures as of March 31, 2024 and December 31, 2023, are as follows:


	March 31, 2024
(In millions of Korean won)	Up to 3 months		3~6 months		6~12 months		1~3 years		Over 3 years		Total
Debentures in Korean won		285,000		270,000		250,000		1,010,000		1,455,000		3,270,000


	December 31, 2023
(In millions of Korean won)	Up to 3 months		3~6 months		6~12 months		1~3 years		Over 3 years		Total
Debentures in Korean won		370,000		285,000		420,000		1,350,000		1,455,000		3,880,000

12.3 Changes in debentures based on par value for the three-month periods ended March 31, 2024 and 2023, are as follows:


	2024
(In millions of Korean won)	Beginning		Issue		Repayment			Ending
Debentures in Korean won		3,880,000		—		(610,000	)		3,270,000


	2023
(In millions of Korean won)	Beginning		Issue		Repayment			Ending
Debentures in Korean won		4,970,000		—		(410,000	)		4,560,000

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

13. Net Defined Benefit Liabilities (Assets)

13.1 Defined Benefit Plan

The Company operates defined benefit plans which have the following characteristics:

•

The Company has the obligation to pay the agreed benefits to all its current and former employees.

•

The Company assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities recognized in the statements of financial position are calculated in accordance with actuarial valuation method using assumptions based on market data and historical data such as discount rate, future salary increase rate, and mortality. Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends.

13.2 Details of the net defined benefit liabilities as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Present value of defined benefit obligation		17,325			19,639
Fair value of plan assets		(20,672	)		(23,333	)

Net defined benefit liabilities (assets)		(3,347	)		(3,694	)

13.3 Details of post-employment benefits recognized in profit or loss for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Current service cost		449			458
Net interest expense(income) on net defined benefit liabilities		(39	)		(56	)

Post-employment benefits		410			402

(*)	The gains or losses related to the defined benefit pension plan is fully included in general administrative expenses.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

14. Equity

14.1 Share Capital

14.1.1 Details of share capital as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023

Type of share	Ordinary share		Ordinary share
Number of authorized shares		1,000,000,000		1,000,000,000
Par value per share (In Korean won)		5,000		5,000
Number of issued shares		403,511,072		403,511,072
Share capital *		2,090,558		2,090,558

*	Due to the retirement of shares deducted through retained earnings, it is different from the total par value of the shares issued.

14.1.2 Changes in shares for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In number of shares)	2024			2023
Beginning		378,663,825			389,634,335
Increase		5,000,000			—
Decrease		(900,000	)		(5,385,996	)

Ending		382,763,825			384,248,339

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

14.2 Hybrid Securities

Details of hybrid securities classified as equity as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)


Hybrid securities	Issuance date		Maturity		Interest rate (%) as of March 31, 2024	March 31, 2024		December 31, 2023
The 1-1st *		May 2, 2019		Perpetual bond	3.23		349,204		349,204
The 1-2nd		May 2, 2019		Perpetual bond	3.44		49,881		49,881
The 2-1st		May 8, 2020		Perpetual bond	3.30		324,099		324,099
The 2-2nd		May 8, 2020		Perpetual bond	3.43		74,812		74,812
The 3-1st		Jul. 14, 2020		Perpetual bond	3.17		369,099		369,099
The 3-2nd		Jul. 14, 2020		Perpetual bond	3.38		29,922		29,922
The 4-1st		Oct. 20, 2020		Perpetual bond	3.00		433,918		433,918
The 4-2nd		Oct. 20, 2020		Perpetual bond	3.28		64,843		64,843
The 5-1st		Feb. 19, 2021		Perpetual bond	2.67		419,056		419,056
The 5-2nd		Feb. 19, 2021		Perpetual bond	2.87		59,862		59,862
The 5-3rd		Feb. 19, 2021		Perpetual bond	3.28		119,727		119,727
The 6-1st		May 28, 2021		Perpetual bond	3.20		165,563		165,563
The 6-2nd		May 28, 2021		Perpetual bond	3.60		109,708		109,708
The 7-1st		Oct. 8, 2021		Perpetual bond	3.57		208,453		208,453
The 7-2nd		Oct. 8, 2021		Perpetual bond	3.80		59,834		59,834
The 8-1st		Feb. 16, 2022		Perpetual bond	4.00		442,955		442,955
The 8-2nd		Feb. 16, 2022		Perpetual bond	4.30		155,626		155,626
The 9-1st		May 12, 2022		Perpetual bond	4.68		478,814		478,814
The 9-2nd		May 12, 2022		Perpetual bond	4.97		19,906		19,906
The 10-1st		Aug. 26, 2022		Perpetual bond	4.90		407,936		407,936
The 10-2nd		Aug. 26, 2022		Perpetual bond	5.15		70,819		70,819
The 10-3rd		Aug. 26, 2022		Perpetual bond	5.30		19,944		19,944
The 11-1st		Feb 3, 2023		Perpetual bond	4.90		548,666		548,666
The 11-2nd		Feb 3, 2023		Perpetual bond	5.03		49,871		49,871
The 12		Feb 28, 2024		Perpetual bond	4.39		399,045		—

						5,431,563		5,032,518

*	As a result of exercising the call option for the Company’s write-down contingent convertible bonds on May 2, 2024, 350,000 million was fully redeemed before maturity.

The above hybrid securities are early redeemable by the Company after 5 or 7or 10 years from the issuance date.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

14.3 Capital Surplus

Details of capital surplus as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Paid-in capital in excess of par value		13,190,275		13,190,275
Other capital surplus		1,467,346		1,465,893
Gains on sales of treasury shares		90,621		86,646
Consideration for exchange right of exchangeable bonds		—		11,933

		14,748,242		14,754,747

14.4 Accumulated Other Comprehensive Income (Loss)

Details of accumulated other comprehensive income (loss) as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Remeasurements of net defined benefit liabilities		(6,762	)		(6,809	)

14.5 Retained Earnings

14.5.1 Details of retained earnings as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023

Legal reserves		1,219,809		1,007,686
Voluntary reserves		982,000		982,000
Regulatory reserve for credit losses		4,061		9,340
Unappropriated retained earnings		3,718,571		2,337,872

		5,924,441		4,336,898

With respect to the allocation of net profit earned in a fiscal term, the Company must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 53 of the Financial Holding Company Act. The reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce accumulated deficit.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

14.5.2 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 26 through 28 of the Regulations on Supervision of Financial Holding Companies.

14.5.2.1 Details of regulatory reserve for credit losses as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024		December 31, 2023
Amounts before appropriation		4,061		9,340
Amounts estimated to be appropriated (reversed)		2,663		(5,279	)

		6,724		4,061

14.5.2.2 Regulatory reserve for credit losses estimated to be appropriated (reversed) and adjusted profit after provision (reversal) of regulatory reserve for credit losses for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won, except for per share amounts)	2024		2023
Regulatory reserve for credit losses estimated to be appropriated (reversed)		2,663		(838	)
Adjusted profit after provision (reversal) of regulatory reserve for credit losses 1,2		2,171,886		2,143,062
Adjusted basic earnings per share after provision (reversal) of regulatory reserve for credit losses 1		5,699		5,522
Adjusted diluted earnings per share after provision (reversal) of regulatory reserve for credit losses 1		5,605		5,396

1	Adjusted profit after provision (reversal) of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision (reversal) of regulatory reserve for credit losses before tax to the net profit for the period.

2	After deducting dividends on hybrid securities

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

14.6 Treasury Shares

Changes in treasury shares for the three-month periods ended March 31, 2024 and 2023, are as follows:


	2024
(In millions of Korean won and in number of shares)	Beginning		Acquisition		Disposal			Retirement		Ending
Number of treasury shares *		24,847,247		900,000		(5,000,000	)		—		20,747,247

Carrying amount		1,165,837		65,537		(234,600	)		—		996,774


	2023
	Beginning		Acquisition		Retirement		Ending
Number of treasury shares *		19,262,733		5,385,996		—		24,648,729

Carrying amount		836,188		271,745		—		1,107,933

*	5 million treasury shares deposited at the Korea Securities Depository for the exchange of exchangeable bonds were disposed on February 14, 2024, due to the exercise of exchange right.

In accordance with the resolution of the Board of Directors on July 25, 2023, the Company acquired 5,584,514 shares ( 300,000 million) and plans to retire of treasury stocks by July 31, 2024. In addition, The Company plans to acquire 320,000 million of its own shares and retire the treasury shares by August 7, 2024 pursuant to board resolutions dated February 7, 2024.

15. Dividends

The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2023 amounting to 587,006 million ( 1,530 per share) were declared at the annual general shareholders’ meeting on March 22, 2024. The financial statements as of March 31, 2024 reflect this dividend payable. Meanwhile, the annual dividends to the shareholders of the Parent Company for the year ended December 31, 2022 and quarterly dividend paid in 2023 were 564,970 million ( 1,450 per share) and 586,931 million ( 510 per share), respectively.

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

16. Net Interest Expense

Details of interest income, interest expense, and net interest expense for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Interest income
Due from financial institutions		3,446			2,236
Loans measured at amortized cost		4,394			3,180
Loans measured at fair value through profit or loss		702			1,119
Others		1,275			135

		9,817			6,670

Interest expense
Borrowings		2,238			—
Debentures		21,293			26,718
Others		11			6

		23,542			26,724

Net interest expense		(13,725	)		(20,054	)

17. Net Fee and Commission Expense

Details of fee and commission income, fee and commission expense, and net fee and commission expense for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Fee and commission income
Fees earned in Korean won		378			372

Fee and commission expense
Fees paid in Korean won		1,337			1,459
Fees paid in foreign currency		183			160

		1,520			1,619

Net fee and commission expense		(1,142	)		(1,247	)

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

18. Net Gains or Losses on Financial Instruments at Fair value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial assets at fair value through profit or loss for the three-month periods ended March, 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Gains on financial instruments at fair value through profit or loss
Dividend income from financial assets at fair value through profit or loss		13,584		12,247
Gains on valuation of financial assets at fair value through profit or loss		2,163		32,503
Gains on disposal of financial assets at fair value through profit or loss		148		678

		15,895		45,428

Losses on financial instruments at fair value through profit or loss
Losses on valuation of financial assets at fair value through profit or loss		316		—

		316		—

Net gains (losses) on financial instruments at fair value through profit or loss		15,579		45,428

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

19. Net Other Operating Income and Expenses

Details of other operating income and expenses for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Other operating income
Dividend income from subsidiaries		2,243,250		2,192,380

		2,243,250		2,192,380

Net other operating income		2,243,250		2,192,380

20. General and Administrative Expenses

20.1 Details of general and administrative expenses for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Expenses related to employee
Employee benefits—salaries		8,730		9,822
Employee benefits—others		1,038		923
Post-employment benefits—defined benefit plans		410		402
Post-employment benefits—defined contribution plans		4		1
Share-based payments		4,573		1,098

		14,755		12,246

Depreciation and amortization		1,526		1,446

Other general and administrative expenses
Travel		89		212
Communications		263		327
Tax and dues		229		239
Publication		47		55
Rental expense		419		521
Vehicle		22		26
Service fees		3,876		4,850
Advertising		421		439
Training		228		277
Others		2,312		2,264

		7,906		9,210

		24,187		22,902

Table of Contents

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

20.2 Share-based Payments

Share-based payments plan for executives and employees of the Company and its subsidiaries as of March 31, 2024, are as follows:

20.2.1 Stock grants linked to long-term performance


(In number of shares)	Grant date	Number of granted shares 1		Vesting conditions 2
KB Financial Group Inc.
Series 34	Jan. 1, 2022		654	Services fulfillment, market performance 3 30%, and non-market performance 4 70%
Series 36	Jan. 1, 2023		25,717	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 37	Apr. 1, 2023		2,087	Services fulfillment, market performance 3 30%, and non-market performance 4 70%
Series 38	Nov. 21, 2023		55,547	Services fulfillment, market performance 3 35%, and non-market performance 4 65%
Series 39	Jan. 1, 2024		93,783	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Deferred grant in 2015			2,123	Satisfied
Deferred grant in 2020			284	Satisfied
Deferred grant in 2021			9,060	Satisfied
Deferred grant in 2022			26,240	Satisfied
Deferred grant in 2023			85,663	Satisfied

			301,158

Kookmin Bank
Series 85	Jan. 1, 2022		6,740	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100% Services fulfillment, market performance 3 30%, and EPS & Asset Quality 5 70%
Series 86	Feb. 1, 2022		1,525	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 88	Mar. 14, 2022		5,179	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 90	Jul. 18, 2022		3,716	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 91	Aug. 24, 2022		7,277	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 92	Jan. 1, 2023		150,035	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 94	Apr. 1, 2023		5,997	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%
Series 96	Jan. 1, 2024		367,067	Services fulfillment, market performance 3 0~30%, and non-market performance 4 70~100%

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

20.2.1 Stock grants linked to long-term performance (cont’d)


(In number of shares)	Grant date	Number of granted shares 1		Vesting conditions 2
Deferred grant in 2021			52,347	Satisfied
Deferred grant in 2022			58,485	Satisfied
Deferred grant in 2023			138,055	Satisfied
Deferred grant in 2024			1,902	Satisfied

			798,325

Other subsidiaries
Stock granted in 2012			160
Stock granted in 2013			219
Stock granted in 2014			1,028
Stock granted in 2015			1,287
Stock granted in 2016			234
Stock granted in 2017			5,834
Stock granted in 2018			14,316	Services fulfillment, market performance 3 0~50%, and non-market performance 4 50~100%
Stock granted in 2019			18,106
Stock granted in 2020			54,131
Stock granted in 2021			54,206
Stock granted in 2022			152,354
Stock granted in 2023			383,947
Stock granted in 2024			234,922

			920,744

			2,020,227

1	Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of March 31, 2024 (Deferred grants are residual shares vested as of March 31, 2024).

3	Relative TSR (Total Shareholder Return): [(Fair value at the end of the contract—Fair value at the beginning of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract

4	Performance results of company and employee

5	EPS, Asset Quality

The stock grant linked to long-term performance is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

20.2.2 Stock grants linked to short-term performance


(In number of shares)	Estimated number of vested shares *		Vesting conditions
KB Financial Group Inc.
Stock granted in 2015		1,078	Satisfied
Stock granted in 2016		2,076	Satisfied
Stock granted in 2020		156	Satisfied
Stock granted in 2021		11,857	Satisfied
Stock granted in 2022		29,285	Satisfied
Stock granted in 2023		41,923	Satisfied
Stock granted in 2024		7,183	Proportional to service period
Kookmin Bank
Stock granted in 2016		706	Satisfied
Stock granted in 2020		8,351	Satisfied
Stock granted in 2021		53,465	Satisfied
Stock granted in 2022		123,292	Satisfied
Stock granted in 2023		118,637	Satisfied
Stock granted in 2024		27,768	Proportional to service period
Other subsidiaries
Stock granted in 2015		2,672	Satisfied
Stock granted in 2016		12,312	Satisfied
Stock granted in 2017		27,164	Satisfied
Stock granted in 2018		66,024	Satisfied
Stock granted in 2019		69,405	Satisfied
Stock granted in 2020		123,145	Satisfied
Stock granted in 2021		346,018	Satisfied
Stock granted in 2022		405,934	Satisfied
Stock granted in 2023		616,556	Satisfied
Stock granted in 2024		32,851	Proportional to service period

		2,127,858

Share-based payments arrangement for subsidiaries was transferred to the Company in 2010, and the related compensation cost paid to the executives and employees of subsidiaries is reimbursed by subsidiaries. The accrued expenses for share-based payments as of March 31, 2024 and December 31, 2023, are 209,361 million and 202,249 million, respectively, and the receivables to be reimbursed by subsidiaries for the compensation costs as of March 31, 2024 and December 31, 2023, are 193,075 million and 184,433 million, respectively. And compensation costs from share-based payments amounting to 4,573 million and 1,098 million were recognized for the three-month periods ended March 31, 2024 and 2023, respectively.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

21. Income Tax Benefit (Expense)

Details of income tax benefit (expense) for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Income tax payable		—		—
Changes in deferred tax assets and liabilities		3,381		(10,697	)
Origination and reversal of temporary differences		3,381		(10,697	)
Income tax recognized directly in equity		205		6
Remeasurements of net defined benefit liabilities		17		6
Consideration for exchange right of exchangeable bonds		188		—

Income tax benefit (expense)		3,586		(10,691	)

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

22. Earnings per Share

22.1 Basic Earnings per Share

Basic earnings per share is calculated from the earnings attributable to ordinary shares.

22.1.1 Weighted average number of ordinary shares outstanding


(In number of shares)	March 31, 2024			March 31, 2023
Number of issued ordinary shares		403,511,072			408,897,068
Number of treasury shares *		(20,747,247	)		(24,648,729	)

Weighted average number of ordinary shares outstanding		381,106,133			388,114,802

*	Initial date of treasury shares that was deducted by the retirement is April 4, 2023.

22.1.2 Basic earnings per share


(In Korean won and in number of shares)	2024			2023
Profit for the period		2,222,618,523,505			2,182,927,002,717
Deduction: Dividends on hybrid securities		(48,070,325,000	)		(40,704,075,000	)

Profit attributable to ordinary equity holders (A)		2,174,548,198,505			2,142,222,927,717
Weighted average number of ordinary shares outstanding (B)		381,106,133			388,114,802

Basic earnings per share (A/B)		5,706			5,520

22.2 Diluted Earnings per Share

Diluted earnings per share is calculated through increasing the weighted average number of ordinary shares outstanding by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Company has dilutive potential ordinary shares such as stock grants and ordinary share exchange right of exchangeable bonds.

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price for the year) based on the monetary value of stock grants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the settlement of stock grants.

22.2.1 Adjusted profit for diluted earnings per share


(In Korean won)	2024		2023
Profit attributable to the ordinary equity holders *		2,174,548,198,505		2,142,222,927,717
Adjustment:
Interest expense on exchangeable bonds		306,631,690		604,566,012

Adjusted profit for diluted earnings per share		2,174,854,830,195		2,142,827,493,729

*	The amount is after deducting dividends on hybrid securities.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

22.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share


(In number of shares)	2024		2023
Weighted average number of ordinary shares outstanding		381,106,133		388,114,802
Adjustment:
Stock grants		4,036,449		4,129,985
Exchangeable bonds		2,417,582		5,000,000

Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share		387,560,164		397,244,787

22.2.3 Diluted earnings per share


(In Korean won and in number of shares)	2024		2023
Adjusted profit for diluted earnings per share		2,174,854,830,195		2,142,827,493,729
Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share		387,560,164		397,244,787

Diluted earnings per share		5,612		5,394

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

23. Statement of Cash Flows

23.1 Details of cash and cash equivalents as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	March 31, 2024			December 31, 2023
Due from financial institutions		2,621,612			256,337
Deduction:
Restricted due from financial institutions		(3	)		(3	)
Due from financial institutions with original maturities over three months		(140,000	)		(140,000	)

		(140,003	)		(140,003	)

		2,481,609			116,334

23.2 Significant non-cash transactions for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	2024		2023
Changes in receivables and payables from consolidated tax return		100,223		(759,088	)
Changes in receivables and payables related to stock grants		8,641		(43,256	)
Changes in receivables related to subsidiary’s interim dividend		399,974		—
Recognition of dividends payable due to appropriation of retained earnings		587,006		564,970
Exchange of treasury shares through the exercise of exchange rights related to exchangeable bonds		240,000		—

23.3 Cash inflows and outflows from income tax, interest, and dividends for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)	Activity		2024		2023
Income tax paid		Operating		2,139		2,264
Interest received		Operating		6,391		4,332
Interest paid		Operating		35,178		26,434
Dividends received		Operating		1,856,884		2,206,801
Dividends paid		Financing		48,070		40,703

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

24. Contingent Liabilities and Commitments

24.1 Commitments made with financial institutions as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)		March 31, 2024				December 31, 2023
		Amount of commitments		Amount borrowed		Amount of commitments		Amount borrowed
General loan	Hana Bank		200,000		—		200,000		—
General loan	Shinhan Bank		200,000		—		200,000		—
General loan	NongHyup Bank		300,000		—		300,000		—

24.2 Other Matters (including litigation)

The Company has 1 pending lawsuit as a defendant with aggregate claims amount of 0.1 million, which arose in the normal course of management activities, as of March 31, 2024.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

25. Related Party Transactions

According to Korean IFRS No.1024, the Company includes subsidiaries and key management personnel (including family members) in the scope of related parties. The Company discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the financial statements. Refer to Note 9 for details of subsidiaries. Key management personnel include the executives of the Company, their close family members, and the companies where the executives and/or their close family members have control or joint control.

25.1 Details of significant profit or loss arising from transactions with related parties for the three-month periods ended March 31, 2024 and 2023 are as follows:


(In millions of Korean won)
Subsidiaries	Profit or loss	2024		2023
Kookmin Bank	Interest income		2,183		1,552
	Fee and commission income		325		297
	Net other operating income 1		1,467,896		1,346,582
	General and administrative expenses		2,641		2,687
KB Securities Co., Ltd.	Fee and commission income		23		20
	Net gains on financial assets at fair value through profit or loss		6,821		23,967
	Net other operating income 1		150,000		100,000
	General and administrative expenses		166		103
KB Insurance Co., Ltd.	Fee and commission income		24		34
	General and administrative expenses		457		532
	Net other operating income 1		249,974		349,990
KB Kookmin Card Co., Ltd.	Fee and commission income		6		9
	Net other operating income 1		185,380		200,008
	General and administrative expenses		110		75
	Net non-operating income		1		1
KB Life Insurance Co., Ltd.	Fee and commission income		9		11
	Net other operating income 1		150,000		100,000
	General and administrative expenses		327		67
KB Asset Management Co., Ltd.	Net other operating income 1		40,000		60,000
	General and administrative expenses		16		—
KB Capital Co., Ltd	Interest income		1,232		1,184
KB Capital Co., Ltd	Fee and commission income		3		4
	Net gains on financial assets at fair value through profit or loss		8,260		15,940
	General and administrative expenses		35		—
	Provision for credit losses		3		1
KB Real Estate Trust. Co., Ltd.	Interest income		662		—
	Net other operating income 1		—		35,000
	Provision for credit losses		93		—

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

25.1 Details of significant profit or loss arising from transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows: (cont’d)


(In millions of Korean won)
Subsidiaries	Profit or loss	2024			2023
KB Savings Bank Co., Ltd.	Interest income		1,633			1,211
	Net gains (losses) on financial assets at fair value through profit or loss		350			2,037
KB Investment Co., Ltd.	Interest income		2,386			1,916
	Provision (reversal) for credit losses		(1	)		1
KB Data Systems Co., Ltd.	General and administrative expenses		735			692
	Net other operating income 1		—			600

Other related parties	Profit or loss	2024			2023
KB Credit Information Co., Ltd 2	Interest income		—			80
	Net other operating income 1		—			200

1	Net other operating income includes dividend income from subsidiaries.

2	The Company sold the 100% shares of KB Credit Information Co., Ltd. to Kookmin Card Co., Ltd. on June 30, 2023.

25.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)
Subsidiaries	Assets or liabilities	March 31, 2024		December 31, 2023
Kookmin Bank	Cash and due from financial institutions		2,223,794		114,336
	Other assets		320,444		308,475
	Other liabilities		51,165		45
	Property and equipment		1,300		1,055
KB Securities Co., Ltd.	Financial assets at fair value through profit or loss		523,383		523,188
	Other assets		142,926		92,212
	Other liabilities		164		1
KB Insurance Co., Ltd.	Other assets		270,704		21,170
	Other liabilities		52,137		42,956
KB Kookmin Card Co., Ltd.	Other assets		92,311		56,852
	Other liabilities		620		730
KB Life Insurance Co., Ltd.	Other assets		160,616		9,552
	Other liabilities		149,643		132,548
KB Asset Management Co., Ltd.	Other assets		12,141		11,508
	Other liabilities		16		—
KB Capital Co., Ltd.	Financial assets at fair value through profit or loss		489,477		488,175
	Loans measured at amortized cost (gross amount)		200,000		200,000
	Allowances for credit losses		522		522
	Other assets		34,098		19,364
	Other liabilities		40		—

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

25.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of March 31, 2024 and December 31, 2023, are as follows: (cont’d)


(In millions of Korean won)
Subsidiaries	Assets or liabilities	March 31, 2024		December 31, 2023
KB Real Estate Trust Co., Ltd.	Loans measured at amortized cost (gross amount)		85,000		50,000
	Allowances for credit losses		222		131
	Other assets		4,227		3,949
	Other liabilities		8,910		8,910
KB Savings Bank Co., Ltd.	Cash and due from financial institutions		140,000		140,000
	Financial assets at fair value through profit or loss		49,752		48,980
	Other assets		5,582		4,729
	Other liabilities		2,599		2,599
KB Investment Co., Ltd.	Loans measured at amortized cost (gross amount)		360,000		360,000
	Allowances for credit losses		1,061		1,061
	Other assets		8,997		8,579
KB Data Systems Co., Ltd.	Intangible assets		351		331
	Other assets		2,034		1,972
	Other liabilities		1,139		1,118


Other related parties	Assets or liabilities	March 31, 2024		December 31, 2023
KB Credit Information Co., Ltd *	Other assets		—		996
	Other liabilities		—		94

*	The Company sold the 100% shares of KB Credit Information Co., Ltd. to Kookmin Card Co., Ltd. on June 30, 2023.

25.3 Right-of-use assets and lease liabilities with related parties as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)

March 31,
2024

December 31,
2023

Subsidiary

Kookmin Bank

Right-of-use assets

1,300

1,055

25.4 Unused commitments provided from related parties as of March 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)

March 31,
2024

December 31,
2023

Subsidiary

KB Kookmin Card Co., Ltd.

Unused lines of credit for credit card

2,595

2,270

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

25.5 There were no share transactions with related parties for the three-month periods ended March 31, 2024 and 2023.

25.6 Details of significant lending transactions with related parties for the three-month periods ended March 31, 2024 and 2023, are as follows:


(In millions of Korean won)		2024
(In millions of Korean won)		Beginning		Loan		Collection		Ending
Subsidiary	KB Investment Co., Ltd.		360,000		—		—		360,000
	KB Capital Co., Ltd.		200,000		—		—		200,000
	KB Savings Bank Co., Ltd. *		70,000		—		—		70,000
	KB Real Estate Trust Co., Ltd.		50,000		35,000		—		85,000


(In millions of Korean won)		2023
(In millions of Korean won)		Beginning		Loan		Collection		Ending
Subsidiary	KB Investment Co., Ltd.		310,000		—		—		310,000
	KB Credit Information Co., Ltd.		13,500		—		—		13,500
	KB Capital Co., Ltd.		200,000		—		—		200,000
	KB Savings Bank Co., Ltd. *		70,000		—		—		70,000

*	Par value of subordinated bond issued by KB Savings Bank Co., Ltd. The difference between par value and fair value at the acquisition date was accounted for as investments in subsidiaries.

25.7 Details of compensation to key management personnel for the three-month periods ended March 31, 2024 and 2023, are as follows:


	2024
(In millions of Korean won)	Short-term employee benefits		Post- employment benefits		Share-based payments		Total
Registered directors (executive)		246		—		1,121		1,367
Registered directors (non-executive)		184		—		—		184
Non-registered directors		1,121		16		3,452		4,589

		1,551		16		4,573		6,140


	2023
(In millions of Korean won)	Short-term employee benefits		Post- employment benefits		Share-based payments		Total
Registered directors (executive)		420		16		213		649
Registered directors (non-executive)		176		—		—		176
Non-registered directors		1,452		75		885		2,412

		2,048		91		1,098		3,237

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31, 2023

26. Events after the reporting period

According to the resolution of the board of directors on April 25, 2024, the quarterly dividend per share of 784 (total dividend: 300,087 million) with dividend record date of March 31, 2024 were paid on May 9, 2024. The Company’s financial statements as of March 31, 2024, do not reflect this dividend payable. As a result of exercising the call option for the Company’s write-down contingent convertible bonds on May 2, 2024, 350,000 million was fully redeemed before maturity.