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6-K 1 d836792d6k.htm FORM 6-K Form 6-K Table of Contents

 

 

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: 001-31811

 

 

Woori Financial Group Inc.

(Translation of registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 04632, 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 ☐

 

 

 


Table of Contents


Table of Contents

Summary of 2024 First Quarter Business Report

Table of Contents

 

I.    INTRODUCTION OF THE COMPANY

     5  

II.  BUSINESS OVERVIEW

     5  

1.   Results of Operations

     5  

2.   Funding Sources and Uses of Funds

     5  

3.   Other Information Necessary for Making Investment Decisions

     6  

III.  FINANCIAL INFORMATION

     11  

1.   Condensed Financial Statements (Consolidated)

     11  

2.   Condensed Financial Statements (Separate)

     13  

3.   Dividend Information

     15  

IV.  INDEPENDENT AUDITOR’S OPINION

     16  

1.   Independent Auditor’s Opinion

     16  

2.   Compensation to the Independent Auditor

     16  

V.  CORPORATE GOVERNANCE

     18  

VI.  SHAREHOLDER INFORMATION

     18  

1.   Share Distribution

     18  

2.   Stock Price and Stock Market Performance

     19  

VII.   DIRECTORS AND EMPLOYEE INFORMATION

     20  

1.   Directors and Executives

     20  

2.   Employee Status

     20  

3.   Directors’ Compensation

     21  


Table of Contents

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

All references to “Woori Financial Group,” “we,” “us” or the “Company” are to Woori Financial Group Inc. 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.

 

4


Table of Contents
  I.

Introduction of the Company

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on March 14, 2024 under the title “Summary of 2023 Business Report.”

 

  II.

Business Overview

 

1.

Results of Operations

(unit: billions of Won)

 

Type

   2024 1Q      2023      2022  

Operating income

     1,151        3,499        4,431  

Non-operating income (expense)

     (7      18        55  

Income from continuing operations before income tax

     1,144        3,517        4,485  

Income tax expense from continuing operations (-)

     305        891        1,161  

Net income

     839        2,627        3,324  

Controlling Interest

     824        2,506        3,142  

Non-controlling Interest

     15        121        182  

 

Note 1)

Based on K-IFRS consolidated financial statements

 

2.

Funding Sources and Uses of Funds

 

a.

Sources of Funds

 

For the periods indicated other than as noted below

 

           (units: millions of Won, %)  

Classification

   Funding
Source
   2024 1Q      2023      2022  
   Average
Balance
     Interest
Rate
     Proportion      Average
Balance
     Interest
Rate
     Proportion      Average
Balance
     Interest
Rate
     Proportion  

Source

   Deposits      342,591,648        2.93        70.27        324,824,465        2.83        68.98        313,019,768        1.45        68.21  
   Borrowings      28,426,353        4.41        5.83        28,052,983        4.02        5.96        27,296,742        1.99        5.95  
   Debentures      41,467,481        4.16        8.51        42,458,653        3.55        9.02        45,945,392        2.26        10.01  
   Others      41,327,579        —         8.48        42,829,998        —         9.09        42,537,152        —         9.27  
   Total Liabilities      453,813,061        —         93.09        438,166,099        —         93.05        428,799,054        —         93.44  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   Total Equity      33,660,917        —         6.91        32,708,219        —         6.95        30,082,662        —         6.56  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   Total Liabilities & Equity      487,473,978        —         100.00        470,874,318        —         100.00        458,881,716        —         100.00  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Note 1)

Average Balance : the simple average of the balances at the start of the fiscal year and at the end of each quarter

Note 2)

Based on K-IFRS consolidated financial statements

 

5


Table of Contents
b.

Use of Funds

 

For the periods indicated other than as noted below

 

          (units: millions of Won, %)  

Type

  

Managed Item

  2024 1Q     2023     2022  
  Average
Balance
    Interest
Rate
    Proportion     Average
Balance
    Interest
Rate
    Proportion     Average
Balance
    Interest
Rate
    Proportion  

Use

   Cash & Due from Banks     18,684,512     3.59     3.83     16,692,268     3.26     3.54     16,097,533     1.52     3.51
   Marketable securities     77,289,683     2.33     15.86     75,522,522     3.61     16.04     68,661,882     1.50     14.96
   Loans     349,287,695     5.10     71.65     334,205,508     5.08     70.98     326,710,683     3.73     71.20
  

Loans in local currency

    300,538,075     4.84     61.65     287,312,990     4.84     61.02     280,414,033     3.53     61.12
  

Loans in foreign Currency

    32,394,453     6.67     6.65     31,215,114     6.64     6.63     30,916,107     4.54     6.74
  

Guarantee payments

    6,920     3.89     0.00     14,567     2.28     0.00     21,260     2.67     0.00
  

Credit card receivables

    12,143,900     6.93     2.49     11,215,186     6.85     2.38     10,026,037     7.24     2.18
  

Foreign bills bought

    4,204,347     6.03     0.86     4,447,651     5.33     0.95     5,333,246     2.58     1.16
   Bad debt expense in local currency     3,053,126     —        (0.63     2,609,403     —        (0.55     2,128,867     —        (0.46
   Others     45,265,214     —        9.29     47,063,423     —        9.99     49,540,485     —        10.79
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  

Total Assets

    487,473,978     —        100.00     470,874,318     —        100.00     458,881,716     —        100.00
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Note 1)

Average Balance : the simple average of the balances at the start of the fiscal year and at the end of each quarter

Note 2)

Based on K-IFRS consolidated financial statements

 

3.

Other Information Necessary for Making Investment Decisions

 

a.

Capital Adequacy Ratios

Group BIS Capital Adequacy Ratios

 

As of the end of the period indicated    (units: billions of Won, %)

 

Type

   2024 1Q      2023      2022  

Equity capital (A)

     35,571        34,756        31,404  

Risk weighted assets (B)

     225,028        219,792        205,307  

BIS(Capital adequacy) ratio (A/B)

     15.81        15.81        15.30  

 

Note 1)

BIS (Bank for International Settlements) Capital Adequacy Ratios = Equity capital / Risk weighted assets * 100

Note 2)

Based on K-IFRS consolidated financial statements and Basel III standards

Note 3)

2024 1Q figures are preliminary and are subject to change

 

6


Table of Contents

Capital Adequacy Ratios for Significant Subsidiaries and Consolidated Companies

 

As of the end of the periods indicated    (units: millions of Won, %)

 

Name of Company

  

Type

   2024 1Q      2023      2022  

Woori Bank Note2)

  

BIS ratio

Note1)

   Equity capital (A)      28,960,609      28,237,929      26,119,135
      Risk weighted assets (B)      181,897,182      176,073,743      167,432,214
      Capital adequacy ratio (A/B)      15.92        16.04        15.60  

Woori Card Note3)

   Adjusted capital ratio      17.08        16.03        16.54  
   Tangible common equity ratio      11.20        10.97        11.28  

Woori Financial Capital Note3)

   Adjusted capital ratio      13.99        14.35        13.78  
   Tangible common equity ratio      11.19        11.48        10.66  

Woori Investment Bank Note4)

  

BIS ratio

Note1)

   Equity capital (A)      1,140,335        1,127,425        674,082  
      Risk weighted assets (B)      4,487,880        4,664,162        4,448,524  
      Capital adequacy ratio (A/B)      25.41        24.17        15.15  

Woori Asset Trust Note5)

   Operating capital ratio      2,945.88        1,284.26        1,189.77  

Woori Asset Management Note3)

   Minimum operating capital ratio      709.44        650.26        681.18  

Woori Venture Partners Note6)

   Tangible common equity ratio      90.49        90.82        90.92  

Woori Savings Bank Note7)

   BIS Capital adequacy ratio Note1)      13.84        13.21        18.06  

Woori Private Equity Asset Management Note3)

   Minimum operating capital ratio      8,417.26        8,618.79        8,937.76  

 

Note 1)

BIS (Bank for International Settlements) Capital Adequacy Ratio : Equity capital / Risk weighted assets * 100

Note 2)

Figures for Woori Bank are based on K-IFRS consolidated financial statements and Basel III standards. 2024 1Q figures are preliminary and are subject to change

Note 3)

Figures for Woori Card, Woori Financial Capital, Woori Asset Management and Woori Private Equity Asset Management are based on the applicable standards for business reports submitted to the Financial Supervisory Service and K-IFRS separate financial statements

Note 4)

Figures for Woori Investment Bank are based on the applicable standards for business reports submitted to the Financial Supervisory Service and K-IFRS consolidated financial statements

Note 5)

Figures for Woori Asset Trust are based on K-IFRS separate financial statements

Note 6)

Figures for Woori Venture Partners are based on K-IFRS consolidated financial statements

Note 7)

Figures for Woori Savings Bank are based on K-GAAP

 

7


Table of Contents
b.

Liquidity Ratios

Won Liquidity Ratios

 

As of the end of the periods indicated

 

     (units: millions of Won, %)  

Type

   2024 1Q      2023      2022  
   Won
Liquidity
Assets
     Won
Liquidity
Liabilities
     Won
Liquidity
Ratio
     Won
Liquidity
Assets
     Won
Liquidity
Liabilities
     Won
Liquidity
Ratio
     Won
Liquidity
Assets
     Won
Liquidity
Liabilities
     Won
Liquidity
Ratio
 

Woori Financial Group Note 1)

     1,065,235      485,093      219.6      111,895      8,155      1,372.1      316,876      7,656      4,138.9

Woori Card Note 2)

     9,300,999        2,944,094        315.92        9,119,265        2,454,480        371.54        8,282,745        1,832,484        452.0  

Woori Financial Capital Note 2)

     2,471,317        1,240,659        199.2        1,919,083        1,245,067        154.1        2,468,298        1,205,067        204.8  

Woori Investment Bank Note 2)

     4,524,482        1,683,275        268.8        4,032,290        1,926,080        209.4        3,128,499        1,802,149        173.6  

Woori Asset Trust Note 2)

     366,173        19,616        1,866.7        171,860        18,555        926.2        232,036        32,755        708.4  

Woori Savings Bank Note 2), Note3)

     517,871        341,193        151.78        434,495        231,003        188.09        534,678        384,493        139.1  

Woori Venture Partners Note 2)

     106,574        9,494        1,122.6        103,367        7,210        1,433.6        109,432        10,707        1,022.1  

Woori Private Equity Asset Management Note 2)

     35,038        2,609        1,342.9        27,506        2,396        1,147.8        23,226        1,897        1,224.4  

 

Note 1)

Based on current assets and liabilities within one month of maturity

Note 2)

Based on current assets and liabilities within 90 days of maturity

Note 3)

Based on K-GAAP

Foreign Currency (FC) Liquidity Ratios

 

As of the end of the periods indicated

 

     (units: millions of Won, %)  

Type

   2024 1Q      2023      2022  
   FC
Liquidity
Assets
     FC
Liquidity
Liabilities
     FC
Liquidity
Ratio
     FC
Liquidity
Assets
     FC
Liquidity
Liabilities
     FC
Liquidity
Ratio
     FC
Liquidity
Assets
     FC
Liquidity
Liabilities
     FC
Liquidity
Ratio
 

Woori Investment Bank Note 1)

     2,465        2,303        107.03        9,450        7,362        128.36        65,102        63,365        102.74  

 

Note 1)

Based on current assets and liabilities within three months of maturity

 

8


Table of Contents

Liquidity Coverage Ratios (LCR)

(unit: %)

 

Name of
Company

  

Type

   2024 1Q      2023      2022  

Woori Bank

  

Liquidity coverage ratio Note 1)

     100.80      101.26      102.40
  

Foreign currency liquidity coverage ratio Note 2)

     161.90      162.75      143.11
  

Ratio of business purpose premises and equipment

     10.26        10.20        11.04  

 

Note 1)

The LCR is calculated as the average of daily ratios during the applicable period (same as the calculation method used for business disclosures). The applicable LCR requirements for banks were 95%, 95%, and 92.5% as of March 31, 2024, December 31,2023, and December 31, 2022, respectively

Note 2)

The foreign currency LCR is calculated based on averages of the amount of each category (same as the calculation method used for business disclosures). The applicable foreign currency LCR requirements for banks were 80% for all applicable periods.

 

c.

Profitability Ratio Note1), Note2)

 

         (units: %)  

Type

   2024 1Q     2023     2022  
   ROA     ROE     ROA     ROE     ROA      ROE  

Woori Financial Group

             

Including non-controlling interests

     0.67       10.50       0.54     8.65       0.70        12.21  

Excluding non-controlling interests

     0.66       10.32       0.52     8.25       0.66        11.54  

Woori Bank

     0.69       12.03       0.56       9.68       0.66        11.71  

Woori Card

     0.30       1.92       1.02       6.64       1.14        7.28  

Woori Financial Capital

     0.78       6.02       0.83       6.39       1.51        12.53  

Woori Investment Bank

     (0.83     (5.64     (0.93     (6.95     1.74        14.47  

Woori Asset Trust

     7.24       8.79       9.73       12.68       20.86        29.74  

Woori Savings Bank Note3)

     (2.45     (20.34     (2.42     (18.47     0.41        3.05  

Woori Asset Management

     1.44       1.59       4.97       5.30       0.75        0.80  

Woori Venture Partners

     2.07       2.28       2.63       2.90       4.06        4.51  

Woori Private Equity Asset Management

     1.97       2.07       2.07       2.16       2.60        2.75  

 

Note 1)

Based on the applicable standards* for business reports submitted to the Financial Supervisory Service. The figures for Woori Financial Group and Woori Bank are on a consolidated basis and the figures for the other subsidiaries are on a non-consolidated basis.

  *

Woori Card, Woori Financial Capital, Woori Investment Bank, Woori Savings Bank, Woori Venture Partners, Woori Private Equity Asset Management : net income for the past year / average balance of assets and equity capital for the past year

  *

Woori Financial Group and other subsidiaries: on an annualized basis based on the applicable standards for business reports submitted to the Financial Supervisory Service

Note 2)

Total assets and total equity : the simple average of the balances at the start the fiscal year and at the end of each quarter

Note 3)

Figures for Woori Savings Bank are based on K-GAAP

 

9


Table of Contents
d.

Asset Quality

Group Asset Quality

(units: billions of Won, except percentages)

 

Type

   2024 1Q      2023      2022  

Total loans

     370,976        365,780        343,821

Substandard and below loans

     1,666        1,357        1,082

Substandard and below loans ratio

     0.45        0.37        0.31  

Non-Performing Loans (“NPL”)

     1,532        1,299        997  

NPL ratio

     0.41        0.36        0.29  

Substandard and below coverage ratio (A/B)

     186.9        220.1        217.6  

Loan loss reserve (A)

     3,115      2,986        2,354  

Substandard and below loans (B)

     1,666      1,357        1,082  

 

Note 1)

Based on the applicable standards for financial holding company business reports submitted to the Financial Supervisory Service

Asset Quality for Significant Subsidiaries and Consolidated Companies Note1)

(units: %)

 

Type

   2024 1Q      2023      2022  
   Substandard
and below
ratio
     NPL ratio      Substandard
and below
coverage
ratio
     Substandard
and below
ratio
     NPL ratio      Substandard
and below
coverage
ratio
     Substandard
and below
ratio
     NPL ratio      Substandard
and below
coverage
ratio
 

Woori Bank

     0.21        0.19        279.48        0.18      0.17      320.84        0.19      0.16        263.43  

Woori Card

     1.15        —          104.78        0.97        —          104.92        0.8        —         104.92  

Woori Financial Capital

     2.57        —          107.51        2.37        —         113.21        1.22        —         198.56  

Woori Investment Bank

     0.98        0.87        358.87        0.55        0.55        578.29        0.63        0.58        151.81  

Woori Asset Trust

     64.43        —          —          32.11        —          —         32.23        —         —   

Woori Savings Bank Note 2)

     6.33        —          77.37        3.53        —          101.66        3.22        —         97.54  

 

Note 1)

Based on the applicable standards for business reports submitted to the Financial Supervisory Service

Note 2)

Based on K-GAAP

 

10


Table of Contents
  III.

Financial Information

 

1.

Condensed Financial Statements (Consolidated)

Summary Consolidated Statement of Financial Position

 

(The Company and its Consolidated Subsidiaries, as of the end of the periods indicated)

 

     (unit: millions of Won)  

Classification

   2024 1Q      2023      2022  

ASSETS

        

Cash and cash equivalents

     31,934,284        30,556,618        34,219,148  

Financial assets at fair value through profit or loss (“FVTPL”)

     23,192,488        21,544,756        19,860,573  

Financial assets at fair value through other comprehensive income

     35,987,201        37,891,495        33,085,080  

Securities at amortized cost

     23,129,662        23,996,172        28,268,516  

Loans and other financial assets at amortized cost

     379,448,788        373,148,148        355,760,729  

Investments in joint ventures and associates

     1,988,060        1,795,370        1,305,636  

Investment properties

     474,861        472,768        387,707  

Premises and equipment

     3,180,944        3,176,759        3,142,930  

Intangible assets and goodwill

     999,821        996,842        849,114  

Assets held for sale

     53,141        20,345        13,772  

Net defined benefit asset

     187,604        240,260        319,280  

Current tax assets

     117,553        203,542        53,274  

Deferred tax assets

     49,432        93,366        109,299  

Derivative assets (designated for hedging)

     62,837        26,708        37,786  

Other assets

     3,960,722        3,841,787        3,061,552  
  

 

 

    

 

 

    

 

 

 

Total assets

     504,767,398        498,004,936        480,474,396  
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Financial liabilities at FVTPL

     7,448,229        6,138,313        8,952,399  

Deposits due to customers

     355,053,538        357,784,297        342,105,209  

Borrowings

     30,162,465        30,986,746        28,429,603  

Debentures

     41,695,718        41,239,245        44,198,486  

Provisions

     652,147        806,031        545,865  

Net defined benefit liability

     3,057        6,939        35,202  

Current tax liabilities

     76,780        103,655        843,555  

Deferred tax liabilities

     499,967        470,311        31,799  

Derivative liabilities (designated for hedging)

     185,554        153,007        202,911  

Other financial liabilities

     34,245,409        26,115,005        22,811,868  

Other liabilities

     820,191        803,897        690,157  

 

11


Table of Contents

Classification

   2024 1Q     2023     2022  

Total liabilities

     470,843,055       464,607,446       448,847,054  
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Owners’ equity:

     32,223,787       31,666,881       28,761,897  

Capital stock

     3,802,676       3,802,676       3,640,303  

Hybrid securities

     4,010,141       3,611,129       3,112,449  

Capital surplus

     927,660       935,563       682,385  

Other equity

     (1,673,963     (1,668,957     (2,423,392

Retained earnings

     25,157,273       24,986,470       23,750,152  

Non-controlling interests

     1,700,556       1,730,609       2,865,445  
  

 

 

   

 

 

   

 

 

 

Total equity

     33,924,343       33,397,490       31,627,342  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     504,767,398       498,004,936       480,474,396  
  

 

 

   

 

 

   

 

 

 

Number of Consolidated Subsidiaries (excluding holding company)

     179       179       167  
  

 

 

   

 

 

   

 

 

 

Summary Consolidated Statement of Comprehensive Income

 

(The Company and its Consolidated Subsidiaries, for the periods indicated)      (unit: millions of Won, except per share amounts)  

Classification

   2024 1Q     2023 1Q     2023     2022  

Operating income

     1,150,689       1,252,000       3,499,029       4,430,524  

Net interest income

     2,198,203       2,218,821       8,742,540       8,696,579  

Net fees and commissions income

     502,931       418,094       1,720,481       1,710,170  

Dividend income

     66,782       49,080       240,293       159,982  

Net gain or loss on financial instruments at FVTPL

     515,607       238,498       488,486       238,502  

Net gain or loss on financial assets at FVTOCI

     20,476       331       (37,641     (21,498

Net gain or loss arising on financial assets at amortized cost

     46,119       64,306       203,942       74,204  

Impairment losses due to credit loss

     (366,512     (261,573     (1,894,916     (885,272

General and administrative expenses

     (1,031,667     (1,036,980     (4,443,433     (4,529,890

Other net operating expenses

     (801,250     (438,577     (1,520,723     (1,012,253

Non-operating income (expense)

     (6,732     18,321       18,424       54,850  

Net income before income tax expense

     1,143,957       1,270,321       3,517,453       4,485,374  

Income tax expense

     (305,046     (323,699     (890,559     (1,161,392

Net income

     838,911       946,622       2,626,894       3,323,982  

Net income attributable to owners

     824,001       913,686       2,506,296       3,141,680  

 

12


Table of Contents

Classification

   2024 1Q     2023 1Q     2023      2022  

Net income attributable to the non-controlling interests

     14,910       32,936       120,598        182,302  

Other comprehensive income (loss), net of tax

     (3,812     370,711       663,537        (239,819

Items that will not be reclassified to profit or loss

     (75,240     (9,744     122,334        216,767  

Items that may be reclassified to profit or loss

     71,428       380,455       541,203        (456,586
  

 

 

   

 

 

   

 

 

    

 

 

 

Total comprehensive income

     835,099       1,317,333       3,290,431        3,084,163  
  

 

 

   

 

 

   

 

 

    

 

 

 

Comprehensive income attributable to the owners

     816,769       1,272,696       3,164,464        2,909,053  

Comprehensive income attributable to non-controlling interests

     18,330       44,637       125,967        175,110  

Net income per share:

         

Basic and diluted loss per share (in Korean Won)

     1,056       1,214       3,230        4,191  

 

2.

Condensed Financial Statements (Separate)

Summary Statement of Financial Position

 

(The Company, as of the end of the period indicated)    (unit: millions of Won)

 

Classification

   2024 1Q      2023      2022  

ASSETS

        

Cash and cash equivalents

     684,829        289,507        313,361  

Financial assets at fair value through profit or loss

     —         —         689  

Financial assets at fair value through other comprehensive income

     539,869        539,709        312,771  

Loans and other financial assets at amortized cost

     1,869,156        1,104,815        2,041,877  

Investments in subsidiaries

     23,911,852        23,670,476        22,394,915  

Premises and equipment

     5,462        6,609        11,052  

Intangible assets

     3,983        4,052        4,859  

Net defined benefit asset

     106        3,941        5,947  

Current tax assets

     170,111        158,951        14,350  

Deferred tax assets

     6,640        7,478        13,433  

Other assets

     568        484        322  
  

 

 

    

 

 

    

 

 

 

Total assets

     27,192,576        25,786,022        25,113,576  
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Debentures

     1,587,843        1,587,659        1,447,762  

Provisions

     1,240        1,227        487  

 

13


Table of Contents

Classification

   2024 1Q     2023     2022  

Current tax liabilities

     35,334       32,125       721,795  

Other financial liabilities

     652,125       163,621       46,039  

Other liabilities

     1,961       392       591  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     2,278,503       1,785,024       2,216,674  
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Capital stock

     3,802,676       3,802,676       3,640,303  

Hybrid securities

     4,009,965       3,610,953       3,112,273  

Capital surplus

     11,120,236       11,120,236       10,909,281  

Other equity

     (8,438     (7,871     (26,186

Retained Earnings

     5,989,634       5,475,004       5,261,231  
  

 

 

   

 

 

   

 

 

 

Total equity

     24,914,073       24,000,998       22,896,902  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     27,192,576       25,786,022       25,113,576  
  

 

 

   

 

 

   

 

 

 

Summary Statement of Comprehensive Income

 

(The Company, for the period indicated)    (unit: millions of Won, except per share amounts)

 

Classification

   2024 1Q     2023 1Q     2023     2022  

Operating income

     1,168,850       1,457,173       1,424,670       1,185,627  

Net interest expense

     1,319       5,682       27,495       (5,030

Interest income

     12,635       13,706       64,592       25,614  

Interest expense

     (11,316     (8,024     (37,097     (30,644

Net fees and commissions loss

     (3,845     (3,337     (20,097     (15,059

Fees and commissions income

     407       399       1,625       1,596  

Fees and commissions expense

     (4,252     (3,736     (21,722     (16,655

Dividend income

     1,189,333       1,469,291       1,482,956       1,272,393  

Net gain (loss) on financial instruments at FVTPL

     —        2,023       2,023       1,018  

Provisions for impairment losses due to credit loss

     (460     (41     (348     (244

General and administrative expenses

     (17,497     (16,445     (67,359     (67,451

Non-operating income (expense)

     (18     (9     (1,043     (1,363

Net income before income tax expense

     1,168,832       1,457,164       1,423,627       1,184,264  

Income tax income (expense)

     (1,043     (785     881       (1,015

Net income

     1,167,789       1,456,379       1,424,508       1,183,249  

Other comprehensive income (loss), net of tax

     (567     7,678       18,916       (22,312

Items that will not be reclassified to profit or loss

     (567     7,678       18,916       (22,312

 

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Table of Contents

Classification

   2024 1Q     2023 1Q     2023     2022  

Net gain (loss) on valuation of equity securities at FVTOCI

     119       9,024       19,789       (24,676

Remeasurement of the net defined benefit liability

     (686     (1,346     (873     2,364  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     1,167,222       1,464,057       1,443,424       1,160,937  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share:

        

Basic and diluted income per share (in Korean Won)

     1,510       1,959       1,754       1,499  

 

3.

Dividend Information

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on March 14, 2024 under the title “Summary of 2023 Business Report.”

 

15


Table of Contents

IV. Independent Auditor’s Opinion

 

1.

Independent Auditor’s Opinion

 

    

2024 1Q

  

2023

  

2022

Auditor

   KPMG Samjong Accounting Corp.    KPMG Samjong Accounting Corp.    Samil PricewaterhouseCoopers

Auditor’s Opinion

   Note 1)    Note 2)    Note 3)

 

Note 1)

In its review report attached to this report, KPMG Samjong Accounting Corp. has stated that nothing had come to their attention that caused them to believe that the accompanying consolidated and separate interim financial statements of Woori Financial Group are not presented fairly in all material respects, in accordance with Korean IFRS.

Note 2)

In its audit report, KPMG Samjong Accounting Corp. has stated that the financial statements present fairly, in all material respects, the financial position of Woori Financial Group as of December 31, 2023, and its financial performance and its cash flows for the year then ended in accordance with Korean IFRS

Note 3)

In its audit report, Samil PricewaterhouseCoopers has stated that the financial statements present fairly, in all material respects, the financial position of Woori Financial Group as of December 31, 2022, and its financial performance and its cash flows for the year then ended in accordance with Korean IFRS.

 

2.

Compensation to the Independent Auditor

 

a.

Audit Services

 

Term

  

Auditor

  

Description

  

Contractual

   Actual
  

Fee

   Time    Fee    Time

2024 1Q

   KPMG Samjong Accounting Corp.   

1Q/1H/3Q Review

Closing audit (including internal

accounting management system)

   KRW 1,037 million    9,930 hours    KRW 210 million    1,334 hours

2023

   KPMG Samjong Accounting Corp   

1Q/1H/3Q Review

Closing audit (including internal

accounting management system)

   KRW 964 million    9,380 hours    KRW 964 million    9,613 hours

2022

  

Samil

PricewaterhouseCoopers

  

1Q/1H/3Q Review

Closing audit (including internal

accounting management system)

   KRW 1,068 million    9,380 hours    KRW 1,068 million    8,714 hours

 

Note 1)

Fee excludes VAT

Note 2)

Time includes planning time up until the commencement of the applicable services

 

b.

Other Audit Services

Not Applicable

 

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Table of Contents
c.

Current Status of Audit Service Agreements with the Independent Auditor Relating to U.S. Listing

 

Term

  

Auditor

  

Description

   Fee  

2024 1Q

  

KPMG Samjong

Accounting Corp.

   U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2024)      KRW 2,015 million  

2023

  

KPMG Samjong

Accounting Corp.

   U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2023)      KRW 1,891 million  

2022

   Samil PricewaterhouseCoopers    U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2022)      KRW 2,240 million  

 

Note 1)

Fee excludes VAT

 

d.

Non-Audit Services

 

Term

  

Date of

Execution of

Agreement

  

Description of Service

  

Service Term

   Fees

2024 1Q

   March 31, 2024    Tax adjustment (including review relating to application of consolidated tax)    April 1, 2024 ~ June 2, 2025    KRW 68 million

2023

   March 31, 2023    Tax adjustment (including review relating to application of consolidated tax)    April 1, 2023 ~ May 31, 2024    KRW 64 million

2022

   March 30, 2022    Tax adjustment (including review relating to application of consolidated tax)    April 1, 2022 ~ May 31, 2023    KRW 64 million

 

Note 1)

Fee excludes VAT

 

17


Table of Contents

V. Corporate Governance

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on March 14, 2024 under the title “Summary of 2023 Business Report.”

VI. Shareholder Information

 

1.

Share Distribution

 

a.

Share Information of the Largest Shareholder and Specially Related Parties

 

As of March 31, 2024    (units: shares, %)

 

                 Shares Held      Notes  

Name

  

Relation

   Type      Beginning balance
Note 1)
     Ending balance  
                 Number      Share      Number      Share  

Employee Stock Ownership Association of Woori Financial Group

   The largest shareholder      Common        43,990,091        5.85        43,786,634        5.90        —   

Employee Stock Ownership Association of Woori Bank

   Specially related party of the largest shareholder      Common        25,040,007        3.33        22,483,857        3.03        —   

Total

        Common        69,030,098        9.18        66,270,491        8.92        —   
        Others        —         —         —         —         —   

 

Note 1)

Beginning balance is as of December 31, 2023

 

b.

Changes in the largest shareholder

 

As of March 31, 2024    (units: shares, %)

 

Change of Date

  

Largest Shareholder

   Number Held      Share     

Notes

April 9, 2021

   Korea Deposit Insurance Corporation      110,159,443        15.25      Sales of KDIC’S 14,445,354 shares through after-hours trading Note 1)

August 10, 2021

   Korea Deposit Insurance Corporation      110,159,443        15.13     

Issuance of new common shares

(5,792,866 shares) Note 2)

 

18


Table of Contents

December 9, 2021

   Employee Stock Ownership Association of Woori Financial Group and others 1      71,346,178        9.80      Purchased 1.00% of the KDIC’s remaining shares of Woori Financial Group (8.80% share already held) Note 3)

 

Note 1)

Refer to the prior disclosure on Form 6-K on April 13, 2021, “Change in the Number of Shares Owned by the Largest Shareholder of Woori Financial Group” for further details.

Note 2)

Comprehensive stock exchange between Woori Financial Group and Woori Financial Capital

Note 3)

Refer to the prior disclosure on Form 6-K on December 10, 2021, “Changes in the Largest Shareholder” for further details.

 

c.

Share Ownership of More Than 5%

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on March 14, 2024 under the title “Summary of 2023 Business Report.”

 

2.

Stock Price and Stock Market Performance

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on March 14, 2024 under the title “Summary of 2023 Business Report.”

 

19


Table of Contents

VII. Directors and Employee Information

 

1.

Directors and Executives

As of March 31, 2024

 

Position

  

Name

   Common
Shares
Owned
    

Term

Commencement Date

  

Expiration of Term

Chief Executive Officer

   Registered    Jong-Yong Yim      10,000      March 24, 2023    Note 1)

Outside Director

   Registered    In-Sub Yoon      —       January 27, 2022    Note 2)

Outside Director

   Registered    Chan-Hyoung Chung      10,532      January 11, 2019    Note 2)

Outside Director

   Registered    Su-Young Yun      —       March 24, 2023    Note 2)

Outside Director

   Registered    Yo-Hwan Shin      —       January 27, 2022    Note 2)

Outside Director

   Registered    Sung-Bae Ji      —       March 24, 2023    Note 2)

Outside Director

   Registered    Eun-Ju Lee      —       March 28, 2024    Note 1)

Outside Director

   Registered    Sunyoung Park      —       March 26, 2024    Note 1)

Deputy President

   Non-Registered    Sung-Wook Lee      16,000      February 25, 2022    February 10, 2025

Deputy President

   Non-Registered    Gwang-Ik Jang      1,200      April 3, 2023    April 2 , 2025

Deputy President

   Non-Registered    Il-Jin Ouk      4,000      December 8, 2023    November 30, 2024

Deputy President

   Non-Registered    Jang-Keun Park      2,000      December 8, 2023    March 6, 2025

Deputy President

   Non-Registered    Jeong-Soo Lee      6,890      December 8, 2023    March 6, 2025

Deputy President

   Non-Registered    Chan-Ho Jeong      7,492      December 8, 2023    November 30, 2025

Deputy President

   Non-Registered    Yoon-Hong Song      —       December 8, 2023    November 30, 2025

Deputy President

   Non-Registered    Jae-Hwa Jeon      7,872     

December 8, 2023

   March 6, 2025

Deputy President

   Non-Registered    Kyu-Hwang Jeong      11,741     

December 8, 2023

   November 30, 2025

Managing Director

   Non-Registered    Hae-Kwang Lee      —      

December 8, 2023

   December 22, 2024

 

Note 1)

End of the annual general meeting of shareholders for FY2025

Note 2)

End of the annual general meeting of shareholders for FY2024

Note 3)

Term commencement date: date of inauguration for registered officers or directors / date of appointment for non-registered officers or directors

Note 4)

Common shares owned are as of the date of submission of this report, and those owned by executives exclude the shares owned through the Employee Stock Ownership Association.

 

2.

Employee Status

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on March 14, 2024 under the title “Summary of 2023 Business Report.”

 

20


Table of Contents
3.

Directors’ Compensation

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on March 14, 2024 under the title “Summary of 2023 Business Report.”

 

21


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.

 

   

Woori Financial Group Inc.

    (Registrant)
Date: May 16, 2024     By:  

/s/ Sung-Wook Lee

      (Signature)
      Name: Sung-Wook Lee
      Title: Deputy President

 

22

EX-99.1 2 d836792dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023


WOORI FINANCIAL GROUP INC.

 

     Page(s)  

Independent Auditor’s Review Report

     1-2  

Consolidated Interim Financial Statements

  

Consolidated Interim Statements of Financial Position

     4  

Consolidated Interim Statements of Comprehensive Income

     5-6  

Consolidated Interim Statements of Changes in Equity

     7  

Consolidated Interim Statements of Cash Flows

     8-9  

Notes to the Consolidated Interim Financial Statements

     10-143  


Independent Auditor’s Review Report

Based on a report originally issued in Korean

To the Board of Directors and Shareholders of Woori Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of Woori Financial Group Inc. and its subsidiaries (collectively the “Group”), which comprise the consolidated interim statement of financial position as of March 31, 2024, the consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2024 and 2023 and notes, comprising a summary of material accounting policy information and other explanatory information.

Management’s Responsibility

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

Auditor’s Review Responsibility

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

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements 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 that the accompanying condensed consolidated interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

Other Matters

The procedures and practices utilized in the Republic of Korea to review such condensed consolidated interim financial statements may differ from those generally accepted and applied in other countries.

The consolidated statement of financial position of the Group as of December 31, 2023, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated March 6, 2024, expressed an unqualified opinion.

 

- 1 -


The accompanying consolidated statement of financial position of the Group as of December 31, 2023, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

May 14, 2024

This report is effective as of May 14, 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 the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

 

- 2 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

The accompanying consolidated interim financial statements including all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Jong Yong Yim

President and Chief Executive Officer

Main Office Address: (Address) 51, Sogong-ro, Jung-gu, Seoul

(Phone Number) 02-2125-2000

 

- 3 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023

 

    

March 31,

2024

   

December 31,

2023

 
    

 

 
     (Korean Won in millions)  

ASSETS

    

Cash and cash equivalents (Notes 4 and 6)

     31,934,284       30,556,618  

Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, and 24)

     23,192,488       21,544,756  

Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, and 11)

     35,987,201       37,891,495  

Securities at amortized cost (Notes 4, 9, and 11)

     23,129,662       23,996,172  

Loans and other financial assets at amortized cost (Notes 4, 10, 11, and 39)

     379,448,788       373,148,148  

Investments in joint ventures and associates (Note 12)

     1,988,060       1,795,370  

Investment properties (Notes 13)

     474,861       472,768  

Premises and equipment (Notes 14)

     3,180,944       3,176,759  

Intangible assets (Note 15)

     999,821       996,842  

Assets held for sale (Note 16)

     53,141       20,345  

Net defined benefit asset (Note 22)

     187,604       240,260  

Current tax assets

     117,553       203,542  

Deferred tax assets

     49,432       93,366  

Derivative assets (Designated for hedging) (Notes 4,11 and 24)

     62,837       26,708  

Other assets (Notes 17, 39 and 40)

     3,960,722       3,841,787  
  

 

 

   

 

 

 

Total assets

     504,767,398       498,004,936  
  

 

 

   

 

 

 

LIABILITIES

    

Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 18 and 24)

     7,448,229       6,138,313  

Deposits due to customers (Notes 4,11,19 and 39)

     355,053,538       357,784,297  

Borrowings (Notes 4, 11 and 20)

     30,162,465       30,986,746  

Debentures (Notes 4, 11 and 20)

     41,695,718       41,239,245  

Provisions (Notes 21, 38 and 39)

     652,147       806,031  

Net defined benefit liability (Note 22)

     3,057       6,939  

Current tax liabilities

     76,780       103,655  

Deferred tax liabilities

     499,967       470,311  

Derivative liabilities (Designated for hedging) (Notes 4,11 and 24)

     185,554       153,007  

Other financial liabilities (Notes 4, 11, 23 and 39)

     34,245,409       26,115,005  

Other liabilities (Notes 23 and 40)

     820,191       803,897  
  

 

 

   

 

 

 

Total liabilities

     470,843,055       464,607,446  
  

 

 

   

 

 

 

EQUITY

    

Owners’ equity (Note 26)

    

Capital stock

     3,802,676       3,802,676  

Hybrid securities

     4,010,141       3,611,129  

Capital surplus

     927,660       935,563  

Other equity

     (1,673,963     (1,668,957

Retained earnings

     25,157,273       24,986,470  
  

 

 

   

 

 

 
     32,223,787       31,666,881  
  

 

 

   

 

 

 

Non-controlling interests

     1,700,556       1,730,609  
  

 

 

   

 

 

 

Total equity

     33,924,343       33,397,490  
  

 

 

   

 

 

 

Total liabilities and equity

     504,767,398       498,004,936  
  

 

 

   

 

 

 

The accompanying notes are part of this consolidated financial statements.

 

- 4 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     For the three-month periods ended March 31  
     2024     2023  
    

 

 
     (Korean Won in millions)  

Interest income

     5,469,501       4,929,138  

Financial assets at FVTPL

     57,653       43,975  

Financial assets at FVTOCI

     304,500       208,248  

Financial assets at amortized cost

     5,107,348       4,676,915  

Interest expense

     (3,271,298     (2,710,317
  

 

 

   

 

 

 

Net interest income (Notes 11, 28 and 39)

     2,198,203       2,218,821  

Fees and commissions income

     689,674       619,262  

Fees and commissions expense

     (186,743     (201,168
  

 

 

   

 

 

 

Net fees and commissions income (Notes 11, 29 and 39)

     502,931       418,094  

Dividend income (Notes 11, 30 and 39)

     66,782       49,080  

Net gain on financial instruments at FVTPL (Notes 11 and 31)

     515,607       238,498  

Net gain on financial assets at FVTOCI (Notes 11 and 32)

     20,476       331  

Net gain arising on financial assets at amortized cost (Note 11)

     46,119       64,306  

Impairment losses due to credit loss (Notes 11, 33 and 39)

     (366,512     (261,573

General and administrative expense (Notes 34 and 39)

     (1,031,667     (1,036,980

Other net operating expense (Notes 11, 24, 34 and 39)

     (801,250     (438,577
  

 

 

   

 

 

 

Operating income (Note 5)

     1,150,689       1,252,000  

Share of gain of joint ventures and associates (Note 12)

     5,509       7,142  

Other non-operating income and expense

     (12,241     11,179  
  

 

 

   

 

 

 

Non-operating income and expense (Note 35)

     (6,732     18,321  

Net income before income tax expense

     1,143,957       1,270,321  

Income tax expense (Note 36)

     (305,046     (323,699

Net income

     838,911       946,622  
  

 

 

   

 

 

 

Net gain(loss) on valuation of equity securities at FVTOCI

     (55,752     80,423  

Net gain (loss) on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

     446       —   

Changes in capital due to equity method

     (1,433     3,700  

Remeasurement gain(loss) related to defined benefit plan

     (18,501     (93,867
  

 

 

   

 

 

 

Items that will not be reclassified to profit or loss:

     (75,240     (9,744
  

 

 

   

 

 

 

Net gain(loss) on valuation of debt securities at FVTOCI

     (19,193     237,055  

Changes in capital due to equity method

     (5,830     1,388  

Net gain(loss) on foreign currency translation of foreign operations

     127,258       175,550  

Net gain(loss) on valuation of hedges of net investments in foreign operations

     (36,488     (23,205

Net gain(loss) on valuation of cash flow hedge

     5,681       (10,333
  

 

 

   

 

 

 

Items that may be reclassified to profit or loss:

     71,428       380,455  

Other comprehensive income (loss), net of tax

     (3,812     370,711  

Total comprehensive income

     835,099       1,317,333  
  

 

 

   

 

 

 

(Continued)

 

- 5 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     For the three-month periods ended March 31  
     2024      2023  
    

 

 
     (Korean Won in millions)  

Net income attributable to:

     838,911        946,622  

Net income attributable to owners

     824,001        913,686  

Net income attributable to non-controlling interests

     14,910        32,936  

Total comprehensive income attributable to:

     835,099        1,317,333  

Comprehensive income attributable to owners

     816,769        1,272,696  

Comprehensive income attributable to non-controlling interests

     18,330        44,637  

Earnings per share (Note 37)

     

Basic and diluted earnings per share (Unit: In Korean Won)

     1,056        1,214  

The accompanying notes are part of these consolidated financial statements.

 

- 6 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)

 

    

Capital

Stock

     Hybrid
securities
    

Capital

surplus

   

Other

equity

    Retained
earnings
    Owners’
equity in
total
    Non-
controlling
interests
   

Total

equity

 
    

 

 
     (Korean Won in millions)  

January 1, 2023

     3,640,303        3,112,449        682,385       (2,423,392     23,750,152       28,761,897       2,865,445       31,627,342  

Total comprehensive income

                  

Net income

     —         —         —        —        913,686       913,686       32,936       946,622  

Net gain(loss) on valuation of financial instruments at FVTOCI

     —         —         —        317,496       —        317,496       (18     317,478  

Net gain(loss) due to disposal of equity securities at FVTOCI

     —         —         —        (145     145       —        —        —   

Changes in capital due to equity method

     —         —         —        5,138       (50     5,088       —        5,088  

Gain(loss) on foreign currency translation of foreign operations

     —         —         —        163,819       —        163,819       11,731       175,550  

Loss on valuation of hedges of net investments in foreign operations

     —         —         —        (23,205     —        (23,205     —        (23,205

Loss on valuation of cash flow hedge

     —         —         —        (10,333     —        (10,333     —        (10,333

Remeasurement loss related to defined benefit plan

     —         —         —        (93,855     —        (93,855     (12     (93,867

Transactions with owners

                  

Dividends to common stocks

     —         —         —        —        (713,111     (713,111     (11,479     (724,590

Issuance of hybrid securities

     —         299,227        —        —        —        299,227       —        299,227  

Dividends to hybrid securities

     —         —         —        —        (30,414     (30,414     (19,968     (50,382

Changes in subsidiaries’ capital

     —         —         (1,868     60,491       (60,491     (1,868     (73,167     (75,035

Changes in non-controlling interests related to business combinations

     —         —         —        71,240       —        71,240       138,478       209,718  

Others

     —         —         —        248       (248     —        —        —   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

March 31, 2023 (Unaudited)

     3,640,303        3,411,676        680,517       (1,932,498     23,859,669       29,659,667       2,943,946       32,603,613  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

January 1, 2024

     3,802,676        3,611,129        935,563       (1,668,957     24,986,470       31,666,881       1,730,609       33,397,490  

Total comprehensive income

                  

Net income

     —         —         —        —        824,001       824,001       14,910       838,911  

Net loss on valuation of financial instruments at FVTOCI

     —         —         —        (74,906     —        (74,906     (39     (74,945

Net gain(loss) due to disposal of equity securities at FVTOCI

     —         —         —        491       (491     —        —        —   

Net gain (loss) on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

     —         —         —        446       —        446       —        446  

Changes in capital due to equity method

     —         —         —        (7,263     —        (7,263     —        (7,263

Gain(loss) on foreign currency translation of foreign operations

     —         —         —        123,793       —        123,793       3,465       127,258  

Loss on valuation of hedges of net investments in foreign operations

     —         —         —        (36,488     —        (36,488     —        (36,488

Gain on valuation of cash flow hedge

     —         —         —        5,681       —        5,681       —        5,681  

Remeasurement loss related to defined benefit plan

     —         —         —        (18,495     —        (18,495     (6     (18,501

Transactions with owners

                  

Dividends to common stocks

     —         —         —        —        (479,057     (479,057     (3,460     (482,517

Changes in treasury stocks

     —         —         7       —        (136,689     (136,682     —        (136,682

Issuance of hybrid securities

     —         399,012        —        —        —        399,012       —        399,012  

Dividends to hybrid securities

     —         —         —        —        (35,259     (35,259     (11,263     (46,522

Changes in subsidiaries’ capital

     —         —         —        1,695       (1,695     —        —        —   

Others

     —         —         (7,910     40       (7     (7,877     (33,660     (41,537
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

March 31, 2024 (Unaudited)

     3,802,676        4,010,141        927,660       (1,673,963     25,157,273       32,223,787       1,700,556       33,924,343  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The accompanying notes are part of these consolidated financial statements.

 

- 7 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     For the three-month periods ended March 31  
     2024     2023  
    

 

 
     (Korean Won in millions)  

Cash flows from operating activities :

    

Net income

     838,911       946,622  

Adjustments to net income:

    

Income tax expense

     305,046       323,699  

Interest income

     (5,469,501     (4,929,138

Interest expense

     3,271,298       2,710,317  

Dividend income

     (66,782     (49,080
  

 

 

   

 

 

 
     (1,959,939     (1,944,202
  

 

 

   

 

 

 

Additions of expenses not involving cash outflows:

    

Loss on financial assets at FVTOCI

     —        1,849  

Impairment loss due to credit loss

     366,512       261,573  

Loss on other provisions

     12,207       3,740  

Retirement benefit

     32,118       28,139  

Depreciation and amortization

     275,993       245,979  

Net loss on foreign currency translation

     449,838       160,543  

Loss on derivatives (designated for hedge)

     43,316       5,409  

Loss on fair value hedge

     8,948       28,206  

Loss on valuation of investments in joint ventures and associates

     9,340       2,878  

Loss on disposal of investments in joint ventures and associates

     9       —   

Loss on disposal of Premises and equipment, intangible assets and other assets

     843       439  

Impairment loss on Premises and equipment, intangible assets and other assets

     1,271       —   
  

 

 

   

 

 

 
     1,200,395       738,755  
  

 

 

   

 

 

 

Deductions of income not involving cash inflows:

    

Gain on financial instruments at FVTPL

     132,871       400,618  

Gain on financial assets at FVTOCI

     20,476       2,180  

Gain on other provisions

     2,565       2,451  

Gain on derivatives (designated for hedge)

     46,788       69,880  

Gain on fair value hedge

     39,890       5,640  

Gain on valuation of investments in joint ventures and associates

     14,849       10,021  

Gain on disposal of investments in joint ventures and associates

     312       —   

Gain on disposal of Premises and equipment, intangible assets and other assets

     299       237  

Reversal of impairment loss on Premises and equipment, intangible assets and other assets

     20       137  
  

 

 

   

 

 

 
     258,070       491,164  
  

 

 

   

 

 

 

Changes in operating assets and liabilities:

    

Financial instruments at FVTPL

     429,527       (617,889

Loans and other financial assets at amortized cost

     (5,154,266     7,152,300  

Other assets

     (395,578     (192,465

Deposits due to customers

     (4,291,223     (17,586,384

Provisions

     (172,871     (22,717

Net defined benefit liability

     (7,009     (2,524

Other financial liabilities

     7,224,396       8,104,221  

Other liabilities

     10,113       43,110  
  

 

 

   

 

 

 
     (2,356,911     (3,122,348
  

 

 

   

 

 

 

Interest income received

     5,448,781       (36,967

Interest expense paid

     (3,028,527     560,131  

Dividends received

     25,489       12,456  

Income tax paid

     (130,868     (114,802
  

 

 

   

 

 

 
     2,314,875       420,818  
  

 

 

   

 

 

 

Net cash outflow from operating activities

     (220,739     (3,451,519
  

 

 

   

 

 

 

(Continued)

 

- 8 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     For the three-month periods ended March 31  
     2024     2023  
    

 

 
     (Korean Won in millions)  

Cash flows from investing activities

    

Net cash out-flows from obtaining control

     —        (209,643

Net cash out-flows from losing control

     (844     —   

Disposal of financial instruments at FVTPL

     5,307,441       3,846,186  

Acquisition of financial instruments at FVTPL

     (5,750,853     (4,169,740

Disposal of financial assets at FVTOCI

     6,899,627       5,211,812  

Acquisition of financial assets at FVTOCI

     (4,582,493     (5,146,596

Redemption of securities at amortized cost

     1,202,353       2,774,733  

Acquisition of securities at amortized cost

     (259,142     (1,651,900

Cash outflows from changes in subsidiaries

     (146,255     (80,561

Disposal of investments in joint ventures and associates

     43,034       16,889  

Acquisition of investments in joint ventures and associates

     (122,280     (52,002

Acquisition of investment properties

     —        (99,429

Disposal of Premises and equipment

     3,922       417  

Acquisition of Premises and equipment

     (36,818     (22,291

Disposal of intangible assets

     5,384       50  

Acquisition of intangible assets

     (40,732     (36,956

Disposal of assets held for sale

     2,520       —   

Net increase(decrease) of other assets

     (50,550     11,245  
  

 

 

   

 

 

 

Net cash inflow from investing activities

     2,474,314       392,214  
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Net cash in(out)-flows from hedging activities

     5,709       (453

Net increase (decrease) in borrowings

     (1,518,153     1,917,741  

Issuance of debentures

     8,158,563       5,484,615  

Redemption of debentures

     (8,002,791     (7,748,750

Redemption of lease liabilities

     (40,570     (47,793

Net increase of other liabilities

     29       460  

Acquisition of treasury stocks

     (136,711     —   

Disposal of treasury stocks

     70       —   

Issuance of hybrid securities

     399,012       299,227  

Dividends paid to hybrid securities

     (46,522     (50,382

Dividends paid to non-controlling interest

     (3,460     (11,479

Changes in non-controlling interests

     (41,374     (180,514
  

 

 

   

 

 

 

Net increase(decrease) in non-controlling equity liabilities

     (2,807     510  
  

 

 

   

 

 

 

Net cash outflow from financing activities

     (1,229,005     (336,818
  

 

 

   

 

 

 

Effects of exchange rate changes on cash and cash equivalents

     353,096       164,051  

Net increase(decrease) in cash and cash equivalents

     1,377,666       (3,232,072

Cash and cash equivalents, beginning of the period

     30,556,618       34,219,148  
  

 

 

   

 

 

 

Cash and cash equivalents, end of the Period (Note 6)

     31,934,284       30,987,076  
  

 

 

   

 

 

 

The accompanying notes are part of these consolidated financial statements.

 

- 9 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

1.

GENERAL

 

(1)

Summary of the Parent company

Woori Financial Group, Inc. (hereinafter referred to as the “Parent company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank (hereinafter referred to as the “Bank”), Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Parent company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital stock is 3,802,676 million Won. The Parent company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock transfer between the Parent company and subsidiaries as of Incorporation are as follows (Unit: Number of shares)

 

Stock transfer company

   Total number of
issued shares
     Exchange ratio
per share
     Number of Parent
company’s stocks
 

Woori Bank

     676,000,000        1.0000000        676,000,000  

Woori FIS Co., Ltd.

     4,900,000        0.2999708        1,469,857  

Woori Finance Research Institute Co., Ltd.

     600,000        0.1888165        113,289  

Woori Credit Information Co., Ltd.

     1,008,000        1.1037292        1,112,559  

Woori Fund Service Co., Ltd.

     2,000,000        0.4709031        941,806  

Woori Private Equity Asset Management Co., Ltd.

     6,000,000        0.0877992        526,795  

As of August 1, 2019, the Parent company acquired a 73% interest in Tongyang Asset Management Co., Ltd. and changed the name to Woori Asset Management Corp. Also, as of August 1, 2019, the Parent company gained 100% control of ABL Global Asset Management Co., Ltd., added it as a consolidated subsidiary and changed the name to Woori Global Asset Management Co., Ltd. on December 6, 2019.

The Parent company paid 598,391 million Won in cash and 42,103,377 new shares of the Parent company to acquire 100% interest of Woori Card Co., Ltd. from its subsidiary, Woori Bank, on September 10, 2019. On the same date, the Parent company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million Won in cash.

As of December 30, 2019, the Parent company acquired a 67.2% interest (excluding treasury stocks, 51% interest including treasury stocks) in Woori Asset Trust Co., Ltd. (formerly Kukje Asset Trust Co., Ltd.) and added it as a consolidated subsidiary at the end of 2019. As of March 31, 2023, it acquired an additional 28.1% interests (excluding treasury stock, 21.3% in the case of including treasury stock).

The Parent company acquired 76.8% (excluding treasury stocks, 74.0% interest including treasury stocks) interest in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.) on December 10, 2020. In addition, as of April 15, 2021, the Parent company acquired 13.3% interests (excluding treasury stock, 12.9% when including treasury stock) in Woori Financial Capital Co., Ltd., and as of May 24, 2021, the Parent company additionally acquired treasury stock (3.6%) which Woori Financial Capital Co., Ltd. possessed.

The Parent company paid 113,238 million Won in cash to acquire 100% interest of Woori Savings Bank from its subsidiary, Woori Financial Capital Co., Ltd., on March 12, 2021.

As of August 10, 2021, the Parent company paid 5,792,866 new shares of the Parent company to the shareholders of Woori Financial Capital Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (9.5%) of Woori Financial Capital Co., Ltd., to make it a wholly owned subsidiary.

As of January 7, 2022, the Parent company established Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies (100% interest, 200 billion Won in stock payments) and included it as a subsidiary.

 

- 10 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

As of March 23, 2023, the Parent company acquired a 53.9% interest (excluding treasury stocks, 52.0% interest including treasury stocks) in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.), and added it as a consolidated subsidiary. As of May 30, 2023, the Parent company additionally acquired treasury stock (3.5%) which Woori Venture Partners Co., Ltd. possessed.

As of August 8, 2023, the Parent company paid 22,541,465 new shares of the Parent company to the shareholders of Woori Investment Bank Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (41.3%) of Woori Investment Bank Co., Ltd., to make it a wholly owned subsidiary. In addition, on the same day, the Parent company paid 9,933,246 new shares of the Parent company to the shareholders of Woori Venture Partners Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (44.5%) of Woori Venture Partners Co., Ltd., to make it a wholly owned subsidiary.

The Parent company’s percentage of ownership in Woori Asset Management Corp. after the merger between Woori Asset Management Corp. (the surviving company) and Woori Global Asset Management Co., Ltd. (the merged company) is 77.5%. On March 29, 2024, the Parent company acquired the remaining shares (22.5%) of Woori Asset Management Corp., pursuant to which Woori Asset Management Corp. became a wholly-owned subsidiary of the parent company.

On March 25, 2024, the Parent company participated in the capital increase amount and acquired the 1,062,045 shares (96.7% after acquiring shares, 79.4% including treasury shares) of Woori Asset Trust Co., Ltd. Additionally, on March 29, 2024, Woori Asset Trust Co., Ltd. conducted a complete retirement of its 738,000 treasury shares.

 

(2)

Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of March 31, 2024 and December 31, 2023 are as follows:

 

            Percentage of ownership
(%)
     Location      Financial
statements date

Subsidiaries

   Main business      March 31,
2024
     December 31,
2023
 

Held by Woori Financial Group Inc.

              

Woori Bank

     Bank        100.0        100.0        Korea      March 31

Woori Card Co., Ltd.

     Finance        100.0        100.0        Korea      March 31

Woori Financial Capital Co., Ltd.

     Finance        100.0        100.0        Korea      March 31

Woori Investment Bank Co., Ltd

     Other credit finance business        100.0        100.0        Korea      March 31

Woori Asset Trust Co., Ltd (*1)

     Real estate trust        96.7        95.3        Korea      March 31

Woori Savings Bank

     Mutual saving bank        100.0        100.0        Korea      March 31

Woori Financial F&I Co., Ltd.

     Finance        100.0        100.0        Korea      March 31

Woori Asset Management Corp. (*1)

     Finance        100.0        73.0        Korea      March 31

Woori Venture Partners

     Other financial services        100.0        100.0        Korea      March 31

Woori Global Asset Management Co., Ltd. (*1)

     Finance        —         100.0        Korea      — 

Woori Private Equity Asset Management Co., Ltd.

     Finance        100.0        100.0        Korea      March 31

Woori Credit Information Co., Ltd.

     Credit information        100.0        100.0        Korea      March 31

Woori Fund Service Co., Ltd.

    
Financial support service
business
 
 
     100.0        100.0        Korea      March 31

Woori FIS Co., Ltd.

    
System software
development & maintenance
 
 
     100.0        100.0        Korea      March 31

Woori Finance Research Institute Co., Ltd.

     Other service business        100.0        100.0        Korea      March 31

Held by Woori Bank

              

Woori America Bank

     Finance        100.0        100.0        America      March 31

Woori Global Markets Asia Limited

     Finance        100.0        100.0        Hong Kong      March 31

Woori Bank China Limited

     Finance        100.0        100.0        China      March 31

AO Woori Bank (*7)

     Finance        100.0        100.0        Russia      March 31

PT Bank Woori Saudara Indonesia 1906 Tbk

     Finance        84.2        84.2        Indonesia      March 31

Banco Woori Bank do Brasil S.A.

     Finance        100.0        100.0        Brazil      March 31

Korea BTL Infrastructure Fund

     Finance        99.9        99.9        Korea      March 31

 

- 11 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

          Percentage of ownership
(%)
     Location    Financial
statements date

Subsidiaries

   Main business    March 31,
2024
     December 31,
2023
 

Woori Finance Myanmar Co., Ltd.

   Finance      100.0        100.0      Myanmar    March 31

Wealth Development Bank

   Finance      51.0        51.0      Philippines    March 31

Woori Bank Vietnam Limited

   Finance      100.0        100.0      Vietnam    March 31

Woori Bank (Cambodia) PLC

   Finance      100.0        100.0      Cambodia    March 31

Woori Bank Europe

   Finance      100.0        100.0      Germany    March 31

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

   Asset securitization      15.0        15.0      Korea    March 31

Jeonju Iwon Ltd. (*2)

   Asset securitization      0.0        0.0      Korea    March 31

Wonju I one Inc. (*2)

   Asset securitization      0.0        0.0      Korea    March 31

Heitz Third Co., Ltd. (*2)

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

Woori International First Co., Ltd. (*2) (*5)

   Asset securitization      —         0.0      Korea    — 

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

TY 1st Co., Ltd. (*2) (*5)

   Asset securitization      —         0.0      Korea    — 

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

Woori Steel 1st Co., Ltd (*2) (*5)

   Asset securitization      —         0.0      Korea    — 

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

Woori DS 1st co., Ltd (*2) (*5)

   Asset securitization      —         0.0      Korea    — 

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

Woori Hub The 1st Co., Ltd. (*2)

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      —         0.0      Korea    — 

Gangnam Landmark 2nd Co., Ltd(*2)

   Asset securitization      0.0        0.0      Korea    March 31

Woori HP the 1st co.,Ltd. (*2)

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

Woori High End 1st co., Ltd.(*2)

   Asset securitization      0.0        0.0      Korea    March 31

Woori HW 2nd co., Ltd.(*2)

   Asset securitization      0.0        0.0      Korea    March 31

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

   Asset securitization      0.0        0.0      Korea    March 31

Woori HR 2nt Co., Ltd. (*2)

   Asset securitization      0.0        —       Korea    March 31

Woori QS 2nt Co., Ltd. (*2)

   Asset securitization      0.0        —       Korea    March 31

Woori Plasma 1st Co., Ltd. (*2) 

   Asset securitization      0.0        —       Korea    March 31

 

- 12 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

            Percentage of ownership
(%)
     Location      Financial
statements date

Subsidiaries

   Main business      March 31,
2024
     December 31,
2023
 

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

    
Securities investment and
others
 
 
     98.8        98.8        Korea      March 31

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

    
Securities investment and
others
 
 
     97.3        97.3        England      March 31

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

    
Securities investment and
others
 
 
     99.0        99.0        Korea      March 31

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

    
Securities investment and
others
 
 
     99.4        99.4        Korea      March 31

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

    
Securities investment and
others
 
 
     98.6        98.6        Korea      March 31

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

    
Securities investment and
others
 
 
     97.0        97.0        Korea      March 31

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

    
Securities investment and
others
 
 
     97.3        97.2        Korea      March 31

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

    
Securities investment and
others
 
 
     97.4        97.4        Korea      March 31

Kiwoom Harmony Private Placement Investment Trust No. 4 (*3)

    
Securities investment and
others
 
 
     96.2        96.2        Korea      March 31

Principal Guaranteed Trust (*4)

     Trust        0.0        0.0        Korea      March 31

Principal and Interest Guaranteed Trust (*4)

     Trust        0.0        0.0        Korea      March 31

Held by Multi Asset Global Real Estate Investment Trust No. 5-2 MAGI No.5 LuxCo S.a.r.l.

     Asset securitization        54.6        54.6        Luxembourg      March 31

Held by MAGI No.5 LuxCo S.a.r.l. ADP 16 Brussels

     Asset securitization        100.0        100.0        Belgium      March 31

Held by Woori ESG Infrastructure Development General Private Investment Trust No. 1:

              

Woori Global Infrastructure Development Co., Ltd.

     Other financial services        100.0        —         Korea      March 31

Namyangju Resource Circulation Facility Development Co., Ltd.

     Other professional services        100.0        —         Korea      March 31

Held by Woori Card Co., Ltd.

              

TUTU Finance –WCI Myanmar Co., Ltd.

     Finance        100.0        100.0        Myanmar      March 31

PT Woori Finance Indonesia Tbk.

     Finance        84.5        84.5        Indonesia      March 31

Woori Card 2020-1 Asset Securitization Specialty Co., Ltd. (*2) (*5)

     Asset securitization        —         0.5        Korea      — 

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

     Asset securitization        0.5        0.5        Korea      March 31

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

     Asset securitization        0.5        0.5        Korea      March 31

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

     Asset securitization        0.5        0.5        Korea      March 31

Woori Card 2023-1 Asset Securitization Specialty Co., Ltd. (*2)

     Asset securitization        0.5        0.5        Korea      March 31

Woori Card 2023-2 Asset Securitization Specialty Co., Ltd. (*2)

     Asset securitization        0.5        0.5        Korea      March 31

Held by Woori Financial Capital Co., Ltd. 

              

 

- 13 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

          Percentage of ownership
(%)
     Location    Financial
statements date

Subsidiaries

   Main business    March 31,
2024
     December 31,
2023
 

Specified Money Market Trust

   Trust      100.0        100.0      Korea    March 31

Held by Woori Investment Bank Co., Ltd.

              

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

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

   Asset securitization      5.0        5.0      Korea    March 31

Held by Woori Asset Management Corp.

              

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

   Securities investment
and others
     85.2        84.7      Korea    March 31

Woori Together TDF 2025 (*3) (*5)

   Securities investment
and others
     —         30.1      Korea    — 

Woori Together TDF 2035 (*3)

   Securities investment
and others
     46.1        48.0      Korea    March 31

Woori Together TDF 2040 (*3)

   Securities investment
and others
     43.7        49.2      Korea    March 31

Woori Together TDF 2045 (*3)

   Securities investment
and others
     59.4        61.0      Korea    March 31

Woori Together TDF 2050 (*3)

   Securities investment
and others
     45.6        48.9      Korea    March 31

Woori Franklin Technology Master Fund (USD) (*3) (*5) (*8)

   Securities investment
and others
     —         67.3      Korea    — 

Woori Franklin Technology Feeder Fund (H) (*3) (*5)

   Securities investment
and others
     —         31.4      Korea    — 

Woori High Graded Bond Target Return Fund 1 (*3)

   Securities investment
and others
     —         87.4      Korea    — 

Woori Global Multi Asset Income Private Placement Investment Trust_Class Cs (*3)

   Securities investment
and others
     —         37.7      Korea    — 

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

              

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

   Asset securitization      5.0        5.0      Korea    March 31

WM2203 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization      5.0        5.0      Korea    March 31

WNI2206 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization      5.0        5.0      Korea    March 31

WI2209 Securitization Specialty Co., Ltd. (*2)

   Asset securitization      5.0        5.0      Korea    March 31

WN2212 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization      5.0        5.0      Korea    March 31

WK2212 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization      5.0        5.0      Korea    March 31

WH2306 Securitization Specialty Co., Ltd.(*2) 

   Asset securitization      5.0        5.0      Korea    March 31

 

- 14 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

            Percentage of ownership
(%)
     Location      Financial
statements date
 

Subsidiaries

   Main business      March 31,
2024
     December 31,
2023
 

WN2306 Securitization Specialty Co., Ltd.(*2)

     Asset securitization        5.0        5.0        Korea        March 31  

WNKN2309 Securitization Specialty Co., Ltd.(*2)

     Asset securitization        5.0        5.0        Korea        March 31  

WB2309 Securitization Specialty Co., Ltd.(*2)

     Asset securitization        5.0        5.0        Korea        March 31  

WI2311 Securitization Specialty Co., Ltd. (*2)

     Asset securitization        5.0        5.0        Korea        March 31  

WSB2312 Securitization Specialty Co., Ltd. (*2)

     Asset securitization        5.0        5.0        Korea        March 31  

WK2312 Asset Securitization Specialty Co., Ltd. (*2)

     Asset securitization        5.0        5.0        Korea        March 31  

WBS2312 Securitization Specialty Co., Ltd. (*2)

     Asset securitization        5.0        5.0        Korea        March 31  

WK2403 Asset Securitization Specialty Co., Ltd. (*2)

     Asset securitization        5.0        —         Korea        March 31  

WH2403 Securitization Specialty Co., Ltd.(*2)

     Asset securitization        5.0        —         Korea        March 31  

VOGO DL General Private Equity Investment Trust 1(*3)

    
Securities investment
and others
 
 
     99.0        99.0        Korea        March 31  

WFBS 1st Corporate Recovery Private Equity Fund

     Finance        92.7        —         Korea        March 31  

Held by Woori Venture Partners Co.,Ltd.

              

Woori Venture Partners US

    
Other financial
services
 
 
     100.0        100.0        America        March 31  

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

              

Green ESG Growth No.1 Private Equity Fund (*3)

    
Securities investment
and others
 
 
     30.3        30.3        Korea        March 31  

Woori New Growth Credit Fund 1 (*3)

    
Securities investment
and others
 
 
     100.0        100.0        Korea        March 31  

Woori PE Secondary Fund 1 (*3)

    
Securities investment
and others
 
 
     100.0        100.0        Korea        March 31  

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

              

Japanese Hotel Real Estate Private Equity Fund 1 (*3)

    
Securities investment
and others
 
 
     100.0        100.0        Korea        March 31  

Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd., Woori Savings Bank and Woori Private Equity Asset Management Co., Ltd. (*6)

              

Woori Innovative Growth Professional Investment Type Private Investment Trust No.1 (*3)

    
Securities investment
and others
 
 
     90.0        90.0        Korea        March 31  

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

              

Woori Innovative Growth Professional Investment Type Private Investment Trust No.2 (*3) 

    
Securities investment
and others
 
 
     85.0        85.0        Korea        March 31  

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

    
Securities investment
and others
 
 
     94.3        94.3        Korea        March 31  

 

- 15 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

          Percentage of ownership
(%)
     Location    Financial
statements date

Subsidiaries

   Main business    March 31,
2024
     December 31,
2023
 

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

              

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

   Securities investment
and others
     80.0        80.0      Korea    March 31

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

              

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

   Securities investment
and others
     70.0        70.0      Korea    March 31

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

              

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

   Securities investment
and others
     30.1        30.1      Korea    March 31

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

Held by Woori bank (*6)

              

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

   Securities investment
and others
     92.6        92.6      Korea    March 31

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

   Securities investment
and others
     84.5        84.3      Korea    March 31

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

   Securities investment
and others
     80.0        80.0      Korea    March 31

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

   Securities investment
and others
     90.9        90.9      Korea    March 31

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

   Securities investment
and others
     87.0        87.0      Korea    March 31

Woori Senior Loan General Type Private Investment Trust No.2(*3) 

   Securities investment
and others
     50.0        50.0      Korea    March 31

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

   Securities investment
and others
     98.8        98.8      Korea    March 31

 

- 16 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

          Percentage of ownership
(%)
     Location    Financial
statements date

Subsidiaries

   Main business    March 31,
2024
     December 31,
2023
 

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

   Securities investment
and others
     99.9        99.9      Korea    March 31

WooriG Clean Energy General Type Private Investment Trust No.2 (*3)

   Securities investment
and others
     30.5        30.8      Korea    March 31

Woori Together Institutional USD MMF No.1 C-F(*3)

   Securities investment
and others
     54.3        63.4      Korea    March 31

Woori ESG Infrastructure Development General Type Private Investment Trust No.2 (*3)

   Securities investment
and others
     50.0        50.0      Korea    March 31

Woori Dongbu Underground Expressway General type Private Special Asset Investment Trust (*3)

   Securities investment
and others
     40.0        40.0      Korea    March 31

Woori Partners General Private Investment Trust No. 3 (*3)

   Securities investment
and others
     90.9        —       Korea    March 31

Woori General Private Equity Investment Trust 1 (*3)

   Securities investment
and others
     50.0        —       Korea    March 31

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

              

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

   Securities investment
and others
     60.0        60.0      Korea    March 31

Woori Equity Investment General Type Private Investment Trust No.1 (*3)

   Securities investment
and others
     100.0        100.0      Korea    March 31

Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*3)

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

              

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

   Securities investment
and others
     63.2        63.2      Korea    March 31

Held by Woori Bank and Woori Asset Trust Co., Ltd (*6)

              

Woori General Type Private Real Estate Investment Trust No.6 (*3)

   Securities investment
and others
     85.8        85.8      Korea    March 31

WooriG Innovation Growth(Infrastructure) General Type Private Investment Trust No.2 (*3)

   Securities investment
and others
     46.4        46.4      Korea    March 31

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

              

Woori Real Estate Financial Stabilization General Private Investment Trust No. 1 (*3)

   Securities investment
and others
     100.0        —       Korea    March 31

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

              

Woori FG Digital Investment Fund 1st (*3)

   Securities investment
and others
     100.0        100.0      Korea    March 31

Woori Financial Dino Lab Investment Association No. 1 (*3) 

   Securities investment
and others
     100.0        —       Korea    March 31

 

- 17 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

          Percentage of ownership
(%)
     Location    Financial
statements date

Subsidiaries

   Main business    March 31,
2024
     December 31,
2023
 

Held by Woori Japan Private Placement Real Estate Feeder Investment Trust No.1-1 and Woori Japan Investment Trust No. 1-2(*6)

              

Woori Japan Private Placement Real Estate Master Investment Trust No.1 (*3)(*8)

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

              

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

   Securities investment
and others
     100.0        100.0      Korea    March 31

Held by Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6)

              

Woori Corporate Turnaround No.1 Private Equity Fund (*3)

   Securities investment
and others
     36.4        36.4      Korea    March 31

Held by Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 and Woori Japan General Type Private Real Estate Feeder Investment Trust No.2-1(*6)

              

Woori Japan Private Placement Real Estate Master Investment Trust No.2 (*3) (*8)

   Securities investment
and others
     100.0        100.0      Korea    March 31

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

              

GK OK Chatan (*3)

   Other financial
services
     99.0        99.9      Japan    January 31 (*9)

Held by Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (*6)

              

Woori Private Placement Investment Trust No. 3 (*3)(*8)

   Securities investment
and others
     76.5        76.5      Korea    March 31

Held by Woori Private Placement Investment Trust No. 3

              

GK Woorido(*3)

   Other financial
services
     100.0        100.0      Japan    December 31 (*9)

Held by Woori Infrastructure New Deal General Type Private Investment Trust (*6)

              

Woori Seoul- Chuncheon Highway Private Placement Special Asset Investment Trust No.1 (*3)

   Securities investment
and others
     48.0        48.0      Korea    March 31

 

(*1)

The Company acquired additional shares of Woori Asset Trust Co., Ltd and Woori Asset Management Corp. during the three-month period ended March 31, 2024. Additionally, Woori Asset Management Corp. merged with Woori Global Management Co., Ltd. through a business combination.

(*2)

The entity is a structured entity for the purpose of asset securitization. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*3)

The entity is a structured entity for the purpose of investment in securities. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*4)

The entity is a ‘money trust’ under the Financial Investment Services and Capital Markets Act. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*5)

Companies are excluded from the consolidation as of March 31, 2024.

 

- 18 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(*6)

Determined that the Group controls the investees, considering the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns, by two or more subsidiaries’ investment or operation.

(*7)

The Russia – Ukraine conflict has been escalated in February 2022, and international sanctions were imposed on Russia. Due to the sanctions, the Group may experience situations such as a decrease in value of financial assets or operating assets owned by the Group regarding the conflict, an increase in receivable payment terms, limitation to transfer funds, decrease in the profit. As of March 31, 2024, the Group expects such conflict and sanctions would have financial impacts on the business of AO Woori Bank, one of the subsidiaries, in the future. However, the Group cannot reasonably predict the financial impacts.

(*8)

As a master-feeder fund, it is the percentage of the feeder fund’s ownership in the master fund.

(*9)

As the financial statements for the end of the reporting period were not available, the most recent financial statements available from the date of settlement were used.

 

(3)

The Group has not consolidated the following entities as of March 31, 2024 and December 31, 2023 despite having more than 50% ownership interest:

 

     As of March 31, 2024  

Subsidiaries

   Location      Main Business      Percentage of
ownership (%)
 

Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1)

     Korea        Securities Investment        59.7

Kiwoom Yonsei Private Equity Investment Trust (*1)

     Korea        Securities Investment        88.9

IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)

     Korea        Securities Investment        97.9

IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)

     Korea        Securities Investment        75.0

IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)

     Korea        Securities Investment        75.0

Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)

     Korea        Securities Investment        66.7

Hangkang Sewage Treatment Plant Fund (*1)

     Korea        Securities Investment        55.6

Korea Investment Pocheon Hwado Expressway Professional Investment Fund (*1)

     Korea        Securities Investment        55.2

Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)

     Korea        Securities Investment        58.3

Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*3)

     Korea        Securities Investment        100.0

INMARK France Private Placement Investment Trust No. 18-1 (*1)

     Korea        Securities Investment        93.8

Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2)

     Korea        Securities Investment        99.5

KOTAM Global Infra Private Fund 1-4 (*2)

     Korea        Securities Investment        99.7

UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*1)

     Korea        Securities Investment        51.0

Consus GyeongJu Green Specialized Private Special Asset Investment Trust 1 (*1)

     Korea        Securities Investment        50.0

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

     Korea        Securities Investment        77.4

Consus Solar Energy Private Placement Investment Truns No.1(*1)

     Korea        Securities Investment        50.0

IGIS ESG General Private Investment Trust No.1 (*1)

     Korea        Securities Investment        60.0

Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2 (*1)

     Korea        Securities Investment        60.0

NH-Amundi WSCP VIII Private Fund 2 (*1)

     Korea        Securities Investment        65.2

AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2)

     Korea        Securities Investment        100.0

Hangang new deal infra BTL fund 4 (HNBF4) (*1)

     Korea        Securities Investment        60.0

IGIS Global Private Placement Real Estate Fund No. 316-1(*2)

     Korea        Securities Investment        99.3

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

     Korea        Securities Investment        97.7

Woori Asset Global Partnership Fund No.5(*4)

     Korea        Securities Investment        57.7

Kiwoom Harmony Private Placement Investment Trust No. 6 (*1)

     Korea        Securities Investment        77.0

Project Chile PMGD Solar (*2)

     Korea        Securities Investment        75.2

Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*2)

     Korea        Securities Investment        55.0

 

(*1)

The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager’s delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*2)

The Group does not have power over the fund of funds because the Group cannot decide the relevant activities of the fund through the related contract. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*3)

The Group does not have power over the stock market stabilization fund as the fund’s relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*4)

In this fund, one of the parties holds substantive removal rights and can remove the collective investment business operator without any cause. Consequently, the Group have no controls as it exercises decision-making rights as agent.

 

- 19 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     As of December 31, 2023  

Subsidiaries

   Location      Main Business      Percentage of
ownership (%)
 

Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1)

     Korea        Securities Investment        59.7  

Kiwoom Yonsei Private Equity Investment Trust (*1)

     Korea        Securities Investment        88.9  

IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)

     Korea        Securities Investment        97.9  

IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)

     Korea        Securities Investment        75.0  

IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)

     Korea        Securities Investment        75.0  

Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)

     Korea        Securities Investment        66.7  

Hangkang Sewage Treatment Plant Fund (*1)

     Korea        Securities Investment        55.6  

Korea Investment Pocheon Hwado Expressway Professional Investment Fund (*1)

     Korea        Securities Investment        55.1  

Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)

     Korea        Securities Investment        58.3  

Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*3)

     Korea        Securities Investment        100.0  

INMARK France Private Placement Investment Trust No. 18-1 (*1)

     Korea        Securities Investment        93.8  

Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2)

     Korea        Securities Investment        99.5  

KOTAM Global Infra Private Fund 1-4 (*2)

     Korea        Securities Investment        99.7  

UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*1)

     Korea        Securities Investment        51.0  

Consus GyeongJu Green Specialized Private Special Asset Investment Trust 1 (*1)

     Korea        Securities Investment        50.0  

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

     Korea        Securities Investment        77.3  

Consus Solar Energy Private Placement Investment Truns No.1(*1)

     Korea        Securities Investment        50.0  

IGIS ESG General Private Investment Trust No.1(*1)

     Korea        Securities Investment        60.0  

Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2(*1)

     Korea        Securities Investment        60.0  

NH-Amundi WSCP VIII Private Fund 2 (*1)

     Korea        Securities Investment        65.2  

AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2)

     Korea        Securities Investment        100.0  

Hangang new deal infra BTL fund 4 (HNBF4) (*1)

     Korea        Securities Investment        60.0  

IGIS Global Private Placement Real Estate Fund No. 316-1(*2)

     Korea        Securities Investment        99.3  

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

     Korea        Securities Investment        97.7  

Woori Asset Global Partnership Fund No.5(*4)

     Korea        Securities Investment        57.7  

Kiwoom Harmony Private Placement Investment Trust No. 6 (*1)

     Korea        Securities Investment        76.9  

Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*2)

     Korea        Securities Investment        55.0  

 

(*1)

The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager’s delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*2)

The Group does not have power over the fund of funds because the Group cannot decide the relevant activities of the fund through the related contract. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*3)

The Group does not have power over the stock market stabilization fund as the fund’s relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*4)

In this fund, one of the parties holds substantive removal rights and can remove the collective investment business operator without any cause. Consequently, the Group have no controls as it exercises decision-making rights as agent.

 

- 20 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(4)

The summarized financial information of the major subsidiaries are as follows. The financial information of each subsidiary was prepared on the basis of consolidated financial statements. (Unit: Korean Won in millions):

 

     As of March 31, 2024      For the three-month period ended March 31, 2024  

Subsidiaries

   Assets      Liabilities      Operating
revenue
     Net
income(loss)
attributable
to owners
    Comprehensive
income(loss)
attributable to
owners
 

Woori Bank

     464,600,505        438,267,065        11,719,621        789,472       771,705  

Woori Card Co., Ltd.

     17,193,935        14,523,616        555,586        29,005       35,212  

Woori Financial Capital Co., Ltd.

     12,553,972        10,927,998        422,821        32,964       33,093  

Woori Investment Bank Co., Ltd.

     6,550,609        5,433,184        114,755        12,631       15,689  

Woori Asset Trust Co., Ltd.

     541,045        74,909        25,502        7,959       7,936  

Woori Savings Bank

     1,808,534        1,627,771        36,634        1,305       1,305  

Woori Financial F&I Co., Ltd.

     1,034,503        828,683        16,402        1,383       1,383  

Woori Asset Management Corp.

     187,084        31,712        14,890        2,471       2,473  

Woori Venture Partners Co., Ltd.

     331,651        31,536        7,498        2,040       2,322  

Woori Private Equity Asset Management Co., Ltd.

     96,466        4,555        3,018        320       323  

Woori Credit Information Co., Ltd.

     42,655        5,941        10,410        536       536  

Woori Fund Service Co., Ltd.

     27,055        1,914        4,416        1,434       1,434  

Woori FIS Co., Ltd.

     55,592        7,984        50,334        (760     (651

Woori Finance Research Institute Co., Ltd.

     6,435        2,761        2,122        (159     (166

 

     As of March 31, 2023      For the three-month period ended March 31, 2023  

Subsidiaries

   Assets      Liabilities      Operating
revenue
     Net
income(loss)
attributable
to owners
    Comprehensive
income(loss)
attributable to
owners
 

Woori Bank

     458,017,067        431,313,615        11,468,014        861,713       1,229,679  

Woori Card Co., Ltd.

     17,491,193        14,830,408        547,114        45,660       35,404  

Woori Financial Capital Co., Ltd.

     12,417,338        10,796,683        375,605        39,224       38,803  

Woori Investment Bank Co., Ltd.

     6,375,625        5,273,890        120,187        8,008       8,006  

Woori Asset Trust Co., Ltd.

     337,976        79,747        33,227        17,660       17,622  

Woori Savings Bank

     1,938,948        1,759,489        30,885        (7,269     (7,269

Woori Financial F&I Co., Ltd.

     877,702        673,265        5,229        875       875  

Woori Asset Management Corp.

     161,868        32,780        12,249        2,475       2,494  

Woori Venture Partners Co., Ltd.(*)

     328,782        30,190        —         —        —   

Woori Global Asset Management Co., Ltd.

     37,512        13,526        3,639        (136     (136

Woori Private Equity Asset Management Co., Ltd.

     96,006        4,418        2,456        384       363  

Woori Credit Information Co., Ltd.

     45,662        7,981        10,390        803       803  

Woori Fund Service Co., Ltd.

     27,526        2,758        4,156        887       887  

Woori FIS Co., Ltd.

     80,563        32,304        84,735        (5,624     (5,863

Woori Finance Research Institute Co., Ltd.

     6,444        2,603        1,721        (12     (25

 

(*)

Additional investment occurred and added it as a consolidated subsidiary during the three-month period ended March 31, 2023.

 

- 21 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(5)

The financial support that the Group provides to consolidated structured entities is as follows:

 

  -

Structured entity for asset securitization

The structured entity which is established for the purpose of securitization of project financing loans, corporate bonds, and other financial assets. The Group is involved with the structured entity through provision of credit facility over asset-backed commercial papers issued by the entity, originating loans directly to the structured entity, or purchasing 100% of the subordinated debts issued by the structured entity.

 

  -

Structured entity for the investments in securities

The structured entity is established for the purpose of investments in securities. The Group acquires beneficiary certificates through its contribution of funding to the structured entity by the Group, and it is exposed to the risk that it may not be able to recover its fund depending on the result of investment performance of asset managers of the structured entity.

 

  -

Money trust under the Financial Investment Services and Capital Markets Act

The Group provides with financial guarantee of principal and interest or solely principal to some of its trust products. Due to the financial guarantees, the Group may be obliged when the principal and interest or principal of the trust product sold is short of the guaranteed amount depending on the result of investment performance of the trust product.

As of March 31, 2024 and December 31, 2023, the Group provides 2,558,890 million Won and 2,445,644 million Won of credit facilities, respectively, for the structured entities mentioned above. As of March 31, 2024 and December 31, 2023, the purchase commitment amounts to 2,860,496 million Won and 2,848,921 million Won, respectively.

 

(6)

The Group has entered into various agreements with structured entities such as asset securitization, structured finance, investment fund, and trust contract. The characteristics of interests and the nature of risks related to unconsolidated structured entities over which the Group does not have control in accordance with K-IFRS 1110 are as follows:

The interests in unconsolidated structured entities that the Group hold are classified into asset securitization, structured finance, investment fund and real-estate trust, based on the nature and the purpose of each structured entity.

Unconsolidated structured entities classified as ‘asset securitization’ are entities that issue asset-backed securities, pay the principal and interest or distributes dividends on asset-backed securities through borrowings or profits from the management, operation and sale of securitized assets. The Group has been purchasing commitments of asset-backed securities or issuing asset-backed securities through credit grants, and recognizes related interest or fee revenue. There are entities that provide additional funding and conditional debt acquisition commitments before the Group’s financial support, but the Group is still exposed to losses arising from the purchase of financial assets issued by the structured entities when it fails to renew the securities.

Unconsolidated structured entities classified as ‘structured finance’ include real estate project financing investment vehicle, social overhead capital companies, and special purpose companies for ship (aircraft) financing. Each entity is incorporated as a separate company with a limited purpose in order to efficiently pursue business goals and the fund is raised by equity investment or loans from financial institutions and participating institutions. ‘Structured financing’ is a financing method for large-scale risky business, with investments made based on feasibility of the specific business or project, instead of credit of business owner or physical collaterals. The investors receive profits from the operation of the business. The Group recognizes interest revenue, profit or loss from assessment or transactions of financial instruments, or dividend income. With regard to uncertainties involving structured financing, there are entities that provide financial support such as additional fund, guarantees and prioritized credit grants prior to the Group’s intervention, but the Group is exposed to possible losses due to loss of principal from reduction in investment value or irrecoverable loans arising from failure to collect scheduled cash flows and cessation of projects.

 

- 22 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds finances money required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit distributed to the investors. The Group recognizes pro rata amount of dividend income as an investor in the same way as ‘structured finance’, and may be exposed to losses due to reduction in investment value. Investments in MMF(Money Market Funds) as of March 31, 2024 and December 31, 2023 are 1,228,277 million Won and 1,451,874 million Won, respectively, and there is no additional commitments for MMF.

‘Real estate trust’ is to be entrusted the underlying property for the purpose of managing, disposing, operating or developing from the consignor who owns the property and distributes the proceeds achieved through the trust to the beneficiary. When the consignee does not fulfill his or her important obligations in the trust contract or it is, in fact, difficult to run the business, the Group may be exposed to the threat of compensating the loss.

The total assets of the unconsolidated structured entity held by the Group, the carrying amount of the items recognized in the consolidated financial statements, the maximum loss exposure, and the losses from the unconsolidated structured entity are as follows. The maximum loss exposure includes the amount of investment recognized in the consolidated financial statements and the amount that is likely to be confirmed in the future when satisfies certain conditions by contracts such as purchase commitments, credit offerings.

 

     (unit : Korean Won in millions))  
     March 31, 2024  
     Asset securitization      Structured Finance      Investment Fund      Real-estate trust  

Total asset of the unconsolidated structured entities

     16,248,253        96,664,985        187,765,364        1,636,395  

Assets recognized in the consolidated financial statements related to the unconsolidated structured entities

     8,918,197        5,227,219        7,130,342        104,341  

Financial assets at FVTPL

     201,786        120,803        6,187,720        10,862  

Financial assets at FVTOCI

     2,527,555        40,225        —         —   

Financial assets at amortized cost

     6,188,856        5,065,858        —         93,479  

Investments in joint ventures and associates

     —         —         941,517        —   

Derivative assets

     —         333        1,105        —   

Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities

     215        3,118        —         26,932  

Derivative liabilities

     —         1,114        —         —   

Other liabilities (provisions)

     215        2,004        —         26,932  

The maximum exposure to risks

     9,109,294        6,191,185        10,554,293        217,074  

Investment assets

     8,918,197        5,227,219        7,130,342        104,341  

Purchase commitment

     —         —         3,422,676        —   

Credit offerings and others

     191,097        963,966        1,275        112,733  

Loss recognized on unconsolidated structured entities

     —         7,075        73,067        4,722  
     (unit : Korean Won in millions))  
     December 31, 2023  
     Asset securitization      Structured Finance      Investment Fund      Real-estate trust  

Total asset of the unconsolidated structured entities

     14,595,681        99,568,859        189,034,319        1,604,210  

Assets recognized in the consolidated financial statements related to the unconsolidated structured entities

     9,256,063        5,414,037        6,884,658        93,222  

Financial assets at FVTPL

     205,449        118,026        6,000,877        8,297  

Financial assets at FVTOCI

     2,802,592        43,696        —         —   

Financial assets at amortized cost

     6,248,022        5,252,191        66        84,925  

Investments in joint ventures and associates

     —         —         881,531        —   

Derivative assets

     —         124        2,184        —   

 

- 23 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities

     248        3,251        2,006        28,838  

Derivative liabilities

     —         1,243        2,006        —   

Other liabilities (provisions)

     248        2,008        —         28,838  

The maximum exposure to risks

         9,333,448             6,444,559            11,069,599              206,651  

Investment assets

     9,256,063        5,414,037        6,884,658        93,222  

Purchase commitment

     —         —         4,181,631        —   

Credit offerings and others

     77,385        1,030,522        3,310        113,429  

Loss recognized on unconsolidated structured entities

     149        83,885        63,372        19,337  

 

- 24 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(7)

As of March 31, 2024 and December 31, 2023, the share of non-controlling interests on the net income and equity of subsidiaries in which non-controlling interests are significant are as follows: (Unit: Korean Won in millions):

 

  1)

Accumulated non-controlling interests at the end of the reporting period

 

     March 31, 2024      December 31, 2023  

Woori Bank (*1)

     1,546,447        1,546,447  

Woori Asset Trust Co., Ltd. (*2)

     15,333        12,517  

Woori Asset Management Corp (*3)

     —         35,638  

PT Bank Woori Saudara Indonesia 1906 Tbk

     104,336        103,176  

Wealth Development Bank

     22,117        21,142  

PT Woori Finance Indonesia Tbk.

     14,266        13,631  

 

  (*1)

Hybrid securities issued by Woori Bank

  (*2)

The non-controlling interests increased by 2,507 million Won in accordance with paid-in capital increase and stock retirement during the three-month periods ended March 31, 2024.

  (*3)

The non-controlling interests decreased by 36,169 million Won in accordance with merger with Woori Global Asset Management Co., Ltd. and acquisition of shares of Yuanta Securities Korea Co., Ltd. during the three-month periods ended March 31, 2024.

 

  2)

Net income attributable to non-controlling interests

 

     For the three-month
periods ended
March 31
 
     2024      2023  

Woori Bank (*)

     11,263        19,968  

Woori Investment Bank Co., Ltd.

     —         3,404  

Woori Asset Trust Co., Ltd.

     310        5,229  

Woori Asset Management Corp

     531        635  

PT Bank Woori Saudara Indonesia 1906 Tbk

     2,238        2,997  

Wealth Development Bank

     270        413  

PT Woori Finance Indonesia Tbk.

     290        280  

 

  (*)

Distribution of the hybrid securities issued by Woori Bank

 

  3)

Dividends to non-controlling interests

 

     For the three-month
periods ended
March 31
 
     2024      2023  

Woori Bank (*)

     11,263        19,968  

Woori Investment Bank Co., Ltd.

     —         8,302  

Woori Asset Trust Co., Ltd

     —         365  

PT Bank Woori Saudara Indonesia 1906 Tbk

     3,450        2,802  

Others

     10        —   

 

  (*)

Distribution of the hybrid securities issued by Woori Bank

 

- 25 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

2.

BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

The Group maintains its accounting records in Korean Won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements. The Group’s condensed consolidated interim financial statements are condensed interim financial statements prepared in applying International Financial Reporting Standards as adopted by the Republic of Korea (“K-IFRS”) 1034 Interim Finance Reporting for some of periods in which the annual consolidated financial statements belong. It is necessary to use the Group’s annual consolidated financial statements for the year ended December 31, 2023 for understanding of the accompanying condensed consolidated interim financial statements.

 

(1)

From the accounting period beginning on January 1, 2024, the Group has newly applied the following standards and interpretations.

 

  1)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. In addition, covenants that an entity is required to comply with after the end of the reporting period would not affect classification of a liability as current or non-current at the reporting date. When an entity classifies a liability that is subject to the covenants which an entity is required to comply with within twelve months of the reporting date as non-current at the end of the reporting period, the entity shall disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period. The amendments do not have a significant impact on the consolidated interim financial statements.

 

  2)

Amendments to Korean IFRS 1007 Statement of Cash Flows, Korean IFRS 1107 Financial Instruments: Disclosures – Supplier finance arrangements

When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. There is no impact on the consolidated interim financial statements in accordance with the transitional provision that does not require to disclose the relevant information during the interim reporting period within the fiscal year in which these amendments are first applied.

 

  3)

Amendments to Korean IFRS 1116 Leases – Lease Liability in a Sale and Leaseback

When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not have a significant impact on the consolidated interim financial statements.

 

  4)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Disclosure of Cryptographic Assets

 

- 26 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

The amendments require an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments do not have a significant impact on the consolidated interim financial statements.

 

(2)

The details of K-IFRSs that have been issued and published since January 1, 2024 but have not yet reached the effective date are as follows:

 

  1)

Amendments to Korean IFRS 1021 The Effects of Changes in Foreign Exchange Rates and 1101 First-time Adoption of International Financial Reporting Standards – Lack of Exchangeability

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments should be applied for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The Group is in review for the impact of these amendments on the consolidated interim financial statements.

 

(3)

Material accounting policies and method of computation used in the preparation of the condensed interim financial statements are consistent with those of the annual financial statements for the year ended December 31, 2023, except for the one described below.

 

  -

Income tax expense

Income tax expense for the interim period is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate is applied to the pre-tax income.

 

- 27 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

3.

MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

Material accounting estimates and assumptions are continuously evaluated based on a number of factors, including historical experience and expectations of future events that are considered reasonably probable. Accounting estimates calculated based on these definitions may not match actual results.

In preparing interim financial statements, management must apply accounting policies and make judgments, estimates and assumptions that affect assets/liabilities and income/expenses. Therefore, actual results may differ from these estimates.

The significant judgments made by management in applying the accounting policies and key sources of estimation uncertainty for the preparation of interim financial statements are consistent with those made for the annual consolidated financial statements for the year ended December 31, 2023.

 

- 28 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

4.

RISK MANAGEMENT

The Group is exposed to various risks that may arise from its operating activities and the main types of risks are credit risk, market risk, liquidity risk and etc. The Risk Management Organization analyzes and assesses the level of complex risks in order to manage the risks and the risk management standards such as policies, regulations, management systems and decision-making have been established and operated for sound management of the Group.

The risk management organization is operated by Risk Management Committee, Chief Risk Officer(CRO), and Risk Management Department. The Board of Directors operates a Risk Management Committee comprised of outside directors for professional risk management. The Risk Management Committee plays a role as the top decision-making body in risk management by establishing basic policies for risk management that are in line with the Group’s management strategy and determining the risk level that the Group is willing to take.

The Chief Risk Officer (CRO) assists the Risk Management Committee and operates a Group Risk Management Council comprised of risk management managers of subsidiaries to periodically check and improve the risk burden of external environments and the Group. The risk management department is independent and is in charge of risk management of the Group. It also supports reporting and decision-making of key risk-related issues.

 

(1)

Credit risk

Credit risk represents the possibility of financial losses incurred due to the refusal of the transaction or when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Group’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

 

  1)

Credit risk management

To measure credit risk, the Group considers the possibility of failure in performing the obligation by the counterparties, credit exposure to the counterparty, the related default risk and the rate of default loss. The Group uses the credit rating model to assess the possibility of counterparty’s default risk; and when assessing the obligor’s credit rating, other than quantitative methods utilizing financial statements and others, and assessor’s judgement, the Group utilizes credit rating derived using statistical methods.

In order to manage credit risk limit, the Group establishes the appropriate credit line per obligor, company or industry by monitoring obligor’s credit line, total exposures and loan portfolios when approving the loan.

The Group mitigates credit risk resulting from the obligor’s credit condition by using financial and physical collateral, guarantees, netting agreements and purchase of credit derivatives that have low correlation with the obligor’s credit status. The Group has adopted the comprehensive method to mitigate its credit risk. Credit risk mitigation is reflected in qualifying financial collateral, trade receivables, guarantees, residential and commercial real estate and other collaterals. The Group regularly performs a revaluation of collateral reflecting such credit risk mitigation.

 

- 29 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  2)

Measurement of expected credit loss

K-IFRS 1109 requires entities to measure loss allowance equal to 12-month expected credit losses or lifetime expected credit losses after classifying financial assets into one of the three stages, depending on the degree of increase in credit risk since their initial recognition.

 

Classification

  

Stage 1

  

Stage 2

  

Stage 3

Definition    No significant increase in credit risk after initial recognition (*)    Significant increase in credit risk after initial recognition    Credit-
impaired

Loss

allowance

   12-month expected credit losses:    Lifetime expected credit losses:
  

 

Expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date

  

 

Expected credit losses that result from all possible default events over the life of the financial instrument

 

(*)

If the financial instrument has low credit risk at the end of the reporting period, the Group may assume that the credit risk has not increased significantly since initial recognition.

Loss allowance under credit impairment model is measured as the cumulative change in lifetime expected credit loss since initial recognition.

At the end of each reporting period the Group assesses whether credit risk has significantly been increased since the date of initial recognition. The Group assesses whether the credit risk has increased significantly since initial recognition by using credit rating, asset quality level, early warning system, days past due and others. For financial assets whose contractual cash flows have been modified, the Group assesses whether there is a significant increase in credit risk on the same basis.

The Group performs the below assessment to both corporate and retail exposures, and indicators of significant increase in credit risk are as follows:

 

Corporate Exposures

  

Retail Exposures

Asset quality level ‘Precautionary’ or lower    Asset quality level ‘Precautionary’ or lower
More than 30 days past due    More than 30 days past due
‘Warning’ level in early warning system    Significant decrease in credit rating(*)
Debtor experiencing financial difficulties (Capital impairment, Adverse opinion or Disclaimer of opinion by external auditors)    Deferment of repayment of principal and interest
Significant decrease in credit rating (*)    Deferment of interest
Deferment of repayment of principal and interest   
Deferment of interest   

 

(*)

The Group has applied the below indicators of significant decrease in credit rating since initial recognition as follows, and the estimation method is regularly being monitored

 

    

Credit rating

  

Significant increased indicator of the credit rating

Corporate    AAA ~ A+    More than or equal to 4 steps
   A- ~ BBB    More than or equal to 3 steps
   BBB- ~ BB+    More than or equal to 2 steps
   BB ~ BB-    More than or equal to 1 step
Retail    1 ~ 3    More than or equal to 3 steps
   4 ~ 5    More than or equal to 2 steps
   6 ~ 10    More than or equal to 1 step

 

- 30 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

The Group determined that there is no significant increase in credit risk after initial recognition for debt securities, etc. with a credit rating of A + or higher, which are deemed to have low credit risk at the end of the reporting period.

The Group concludes that credit is impaired when financial assets are under conditions stated below:

 

  -

When principal and interest of loan is overdue for 90 days or longer due to significant deterioration in credit

 

  -

For loans overdue for less than 90 days, when it is determined that not even a portion of the loan will be recovered unless claim actions such as disposal of collaterals are taken

 

  -

When other objective indicators of impairment have been noted for the financial asset.

The Group has estimated the allowance for credit losses using an estimation model that additionally reflects the forward looking information based on the past experience loss rate data.

Loss allowance is calculated by applying PD (Probability of Default) and LGD (Loss Given Default) estimated for each financial asset in consideration of factors such as obligor type, credit rating and portfolio. The estimates are regularly being reviewed in order to reduce discrepancies with actual losses.

In measuring the expected credit losses, the Group is also using reasonable and supportable macroeconomic indicators such as GDP growth rate, Personal consumption expenditures increase/decrease rate and Won-dollar exchange rate in order to forecast future economic conditions.

The Group apply future economic condition forecasting model, and the results are regularly reviewed.

 

  -

Development of estimation models through regression analysis of each obligor (corporate, retail)/year-by-year default rate and macroeconomic indicator data by year

 

Major macroeconomic indicators

  

Correlation between credit risk and macroeconomic
indicators

GDP growth rate    Negative(-) Correlation
Personal consumption expenditures increase/decrease rate    Negative(-) Correlation
Won-dollar exchange rate    Positive(+) Correlation

 

  -

Calculation of estimated default rate incorporating forward looking by applying estimated macroeconomic indicators provided by verified institutions such as Bank of Korea and National Assembly Budget Office to the estimation model developed

 

  -

Forecast of macroeconomic variables

 

  a)

Probability weight

As of March 31, 2024, the probability weights applied to the scenarios of the forecasts of macroeconomic variables is as follows (Unit: %):

 

     Base
Scenario
     Upside
Scenario
     Downside
Scenario
     Worst
Scenario
 

Probability weight

     44.36        9.41        26.23        20.00  

 

- 31 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  b)

Economic forecast of each major macroeconomic variables by scenario (prospect period: 2024) As of March 31, 2024, the forecasts of major macroeconomic variables by scenario is as follows (Unit: Won, %):

 

     Base
Scenario
     Upside
Scenario
     Downside
Scenario
     Worst
Scenario
 

GDP growth rate

     2.10        2.29        1.76        (-)5.10  

Personal consumption expenditures increase/decrease rate

     1.90        2.27        1.23        (-)12.22  

Won-dollar exchange rate

     1,263        1,255        1,277        1,560  

Considering internal and external uncertainties, Woori Bank additionally applied the Worst scenario to the three macroeconomic variable scenarios: Base, Upside, and Downside. If the probability weight of the basic, upside, and downside scenarios excluding the worst scenario is assumed to be 100%, and if the probability weight of the worst scenario is assumed to be 100%, the impact on the expected credit loss allowance is as follows (Unit: Korean Won in millions):

 

Scenario    Applied probability weight     Difference from book value
assuming 100%
 

Base, Upside, Downside

     80.00     (433,480

Worst

     20.00     1,734,008  

 

  -

The increase rate of the predicted default rate is used as a forward looking adjustment coefficient and reflected to the applicable estimate for the current year.

 

- 32 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  3)

Maximum exposure

The Group’s maximum exposure to credit risk shows the uncertainties related to the maximum possible variation of financial assets’ net value as a result of changes in the specific risk factors, prior to the consideration of collaterals that are recorded at net carrying amount after allowances and other credit enhancements. However, the maximum exposure is the fair value amount (recorded on the books) for derivatives, maximum contractual obligation for payment guarantees and unused amount of commitments for loan commitment.

The maximum exposure to credit risk as of March 31, 2024 and December, 31,2023 is as follows (Unit: Korean Won in millions):

 

          March 31,
2023
     December 31,
2023
 

Loans and other financial assets at amortized cost (*1)

   Korean treasury and government agencies      2,492,237        2,297,088  
   Banks      24,659,341        21,996,558  
   Corporates      164,188,240        159,343,530  
   Consumers      188,108,970        189,510,972  
     

 

 

    

 

 

 
  

   Sub-total

     379,448,788        373,148,148  
     

 

 

    

 

 

 

Financial assets at FVTPL (*2)

   Deposits      42,753        39,241  
   Debt securities      6,266,983        6,307,238  
   Loans      910,939        782,716  
  

Derivative assets

     7,180,459        5,798,329  
  

Others

     2,585        2,585  
     

 

 

    

 

 

 
  

   Sub-total

     14,403,719        12,930,109  
     

 

 

    

 

 

 

Financial assets at FVTOCI

   Debt securities and others      34,864,625        36,694,111  

Securities at amortized cost

   Debt securities      23,129,662        23,996,172  

Derivative assets

   Derivative assets (Designated for hedging)      62,837        26,708  

Off-balance accounts

   Payment guarantees (*3)      14,487,314        13,793,301  
   Loan commitments      132,213,536        126,829,192  
     

 

 

    

 

 

 
      Sub-total      146,700,850        140,622,493  
     

 

 

    

 

 

 
     Total      598,610,481        587,417,741  
     

 

 

    

 

 

 

 

  (*1)

Cash and cash equivalents are not included.

  (*2)

Puttable financial instruments are not included.

  (*3)

As of March 31, 2024 and December 31, 2023, the financial guarantee amount of 3,992,397 million Won and 3,661,656 million Won are included, respectively.

 

- 33 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  a)

Credit risk exposure by geographical areas

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

 

     March 31, 2024  
     Korea      China      USA      UK      Japan      Others (*)      Total  

Loans and other financial assets at amortized cost

     350,896,410        5,817,285        5,466,416        301,111        755,888        16,211,678        379,448,788  

Securities at amortized cost

     22,089,043        181,824        572,034        —         —         286,761        23,129,662  

Financial assets at FVTPL

     11,193,235        461        1,733,959        343,245        188,240        944,579        14,403,719  

Financial assets at FVTOCI

     30,244,280        551,780        2,817,559        53,372        33,107        1,164,527        34,864,625  

Derivative assets (Designated for hedging)

     55,454        —         6,268        —         1,115        —         62,837  

Off-balance accounts

     141,814,496        876,385        934,250        16,353        18,629        3,040,737        146,700,850  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     556,292,918        7,427,735        11,530,486        714,081        996,979        21,648,282        598,610,481  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

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

 

     December 31, 2023  
     Korea      China      USA      UK      Japan      Others (*)      Total  

Loans and other financial assets at amortized cost

     345,748,021        5,068,801        5,527,208        260,834        617,188        15,926,096        373,148,148  

Securities at amortized cost

     22,529,414        111,832        1,049,669        —         —         305,257        23,996,172  

Financial assets at FVTPL

     10,103,182        519        1,507,518        355,478        143,229        820,183        12,930,109  

Financial assets at FVTOCI

     32,422,652        724,786        2,367,997        7        32,194        1,146,475        36,694,111  

Derivative assets (Designated for hedging)

     26,010        —         —         —         698        —         26,708  

Off-balance accounts

     136,287,485        921,904        745,832        20,045        26,351        2,620,876        140,622,493  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     547,116,764        6,827,842        11,198,224        636,364        819,660        20,818,887        587,417,741  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

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

 

- 34 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  b)

Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of March 31, 2024 and December 31, 2023 (Unit: Korean Won in millions):

 

     March 31, 2024  
     Service      Manufacturing      Finance and
insurance
     Construction      Individuals      Others      Total  

Loans and other financial assets at amortized cost

     86,508,853        46,278,309        32,723,262        6,034,025        183,877,913        24,026,426        379,448,788  

Securities at amortized cost

     179,220        —         13,927,288        59,758        —         8,963,396        23,129,662  

Financial assets at FVTPL

     414,209        263,029        8,371,948        33,708        1,688        5,319,137        14,403,719  

Financial assets at FVTOCI

     442,736        333,996        23,060,197        420,945        —         10,606,751        34,864,625  

Derivative assets (Designated for hedging)

     —         —         62,837        —         —         —         62,837  

Off-balance accounts

     23,676,626        25,967,245        14,800,254        2,994,125        74,125,888        5,136,712        146,700,850  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     111,221,644        72,842,579        92,945,786        9,542,561        258,005,489        54,052,422        598,610,481  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     December 31, 2023  
     Service      Manufacturing      Finance and
insurance
     Construction      Individuals      Others      Total  

Loans and other financial assets at amortized cost

     84,704,246        44,591,685        30,388,823        5,583,281        185,083,452        22,796,661        373,148,148  

Securities at amortized cost

     189,193        —         14,151,799        69,720        —         9,585,460        23,996,172  

Financial assets at FVTPL

     330,193        233,528        7,184,371        81,731        2,600        5,097,686        12,930,109  

Financial assets at FVTOCI

     453,694        408,377        25,832,327        290,856        —         9,708,857        36,694,111  

Derivative assets (Designated for hedging)

     —         —         26,708        —         —         —         26,708  

Off-balance accounts

     22,561,220        22,897,412        13,804,163        2,826,738        73,042,394        5,490,566        140,622,493  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     108,238,546        68,131,002        91,388,191        8,852,326        258,128,446        52,679,230        587,417,741  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

- 35 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  4)

Credit risk exposure

 

  a)

Financial assets

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL and derivative asset (designated for hedging) as of March 31, 2024 and December 31, 2023 is as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Stage 1      Stage 2                                    
     Above
appropriate
credit rating
(*1)
     Less than a
limited credit
rating
(*2)
     Above
appropriate
credit rating
(*1)
     Less than a
limited credit
rating
(*2)
     Stage 3      Credit
impairment
model
     Total      Loss
allowance
    Total, net  

Loans and other financial assets at amortized cost

     327,088,181        26,646,311        13,023,507        12,881,102        2,189,243        908,707        382,737,051        (3,288,263     379,448,788  

Korean treasury and government agencies

     2,494,137        10        —         —         —         —         2,494,147        (1,910     2,492,237  

Banks

     24,543,176        133,849        27,626        —         16,419        —         24,721,070        (61,729     24,659,341  

Corporates

     137,503,995        19,091,302        2,848,392        4,762,862        1,102,021        908,707        166,217,279        (2,029,039     164,188,240  

General business

     90,677,666        10,310,227        2,019,138        2,773,508        680,056        —         106,460,595        (1,218,765     105,241,830  

Small- and medium-sized enterprise

     36,985,089        8,153,602        675,817        1,400,577        291,551        —         47,506,636        (533,942     46,972,694  

Project financing and others

     9,841,240        627,473        153,437        588,777        130,414        908,707        12,250,048        (276,332     11,973,716  

Consumers

     162,546,873        7,421,150        10,147,489        8,118,240        1,070,803        —         189,304,555        (1,195,585     188,108,970  

Securities at amortized cost

     23,143,111        —         —         —         —         —         23,143,111        (13,449     23,129,662  

Financial assets at FVTOCI (*3)

     34,683,141        181,484        —         —         —         —         34,864,625        (26,095     34,864,625  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     384,914,433        26,827,795        13,023,507        12,881,102        2,189,243        908,707        440,744,787        (3,327,807     437,443,075  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     March 31, 2024  
     Collateral value  
     Stage 1      Stage 2      Stage 3      Credit
impairment
model
     Total  

Loans and other financial assets at amortized cost

     227,438,960        20,784,344        825,261        908,508        249,957,073  

Korean treasury and government agencies

     43,261        —         —         —         43,261  

Banks

     2,194,379        —         —         —         2,194,379  

Corporates

     95,555,959        5,630,317        453,244        908,508        102,548,028  

General business

     54,830,433        3,917,339        200,911        —         58,948,683  

Small- and medium-sized enterprise

     33,998,569        1,491,543        142,187        —         35,632,299  

Project financing and others

     6,726,957        221,435        110,146        908,508        7,967,046  

Consumers

     129,645,361        15,154,027        372,017        —         145,171,405  

Securities at amortized cost

     —         —         —         —         —   

Financial assets at FVTOCI (*3)

     —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     227,438,960        20,784,344        825,261        908,508        249,957,073  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*3)

Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount.

 

- 36 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     December 31, 2023  
     Stage 1      Stage 2                                    
     Above
appropriate
credit rating
(*1)
     Less than a
limited credit
rating
(*2)
     Above
appropriate
credit rating
(*1)
     Less than a
limited credit
rating
(*2)
     Stage 3      Credit
impairment
model
     Total      Loss
allowance
    Total, net  

Loans and other financial assets at amortized cost

     321,115,435        26,073,686        12,728,437        13,702,855        1,906,434        768,487        376,295,334        (3,147,186     373,148,148  

Korean treasury and government agencies

     2,299,323        21        —         —         —         —         2,299,344        (2,256     2,297,088  

Banks

     21,880,151        122,383        21,771        —         15,295        —         22,039,600        (43,042     21,996,558  

Corporates

     132,702,723        18,890,349        2,630,918        5,411,611        882,459        768,487        161,286,547        (1,943,017     159,343,530  

General business

     87,551,345        10,147,028        1,773,713        3,150,829        548,169        —         103,171,084        (1,161,824     102,009,260  

Small- and medium-sized enterprise

     36,220,660        8,182,558        753,275        1,587,473        225,463        —         46,969,429        (508,736     46,460,693  

Project financing and others

     8,930,718        560,763        103,930        673,309        108,827        768,487        11,146,034        (272,457     10,873,577  

Consumers

     164,233,238        7,060,933        10,075,748        8,291,244        1,008,680        —         190,669,843        (1,158,871     189,510,972  

Securities at amortized cost

     24,010,113        —         —         —         —         —         24,010,113        (13,941     23,996,172  

Financial assets at FVTOCI (*3)

     36,481,028        213,083        —         —         —         —         36,694,111        (27,379     36,694,111  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     381,606,576        26,286,769        12,728,437        13,702,855        1,906,434        768,487        436,999,558        (3,188,506     433,838,431  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     December 31, 2023  
     Collateral value  
     Stage 1      Stage 2      Stage 3      Credit
impairment
model
     Total  

Loans and other financial assets at amortized cost

     224,611,919        21,235,346        767,731        768,275        247,383,271  

Korean treasury and government agencies

     39,199        —         —         —         39,199  

Banks

     2,136,530        —         —         —         2,136,530  

Corporates

     92,544,712        5,915,710        382,605        768,275        99,611,302  

General business

     52,951,331        4,058,593        169,855        —         57,179,779  

Small- and medium-sized enterprise

     33,580,230        1,590,947        112,117        —         35,283,294  

Project financing and others

     6,013,151        266,170        100,633        768,275        7,148,229  

Consumers

     129,891,478        15,319,636        385,126        —         145,596,240  

Securities at amortized cost

     —         —         —         —         —   

Financial assets at FVTOCI (*3)

     —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     224,611,919        21,235,346        767,731        768,275        247,383,271  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*3)

Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount.

 

- 37 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  b)

Payment Guarantees and commitments

The credit quality of the payment guarantees and loan commitments as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Stage 1      Stage 2                
Financial assets    Above
appropriate
credit rating
(*1)
     Less than a
limited credit
rating
(*2)
     Above
appropriate
credit rating
(*1)
     Less than a
limited
credit rating
(*2)
     Stage 3      Total  

Off-balance accounts:

                 

Payment Guarantees

     13,093,062        1,130,887        84,044        143,399        35,922        14,487,314  

Loan Commitments

     125,906,053        3,467,642        2,320,366        480,838        38,637        132,213,536  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     138,999,115        4,598,529        2,404,410        624,237        74,559        146,700,850  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.

 

     December 31, 2023  

Financial assets

   Stage 1      Stage 2      Stage 3      Total  
   Above
appropriate
credit rating
(*1)
     Less than a
limited credit
rating
(*2)
     Above
appropriate
credit rating
(*1)
     Less than a
limited
credit rating
(*2)
 

Off-balance accounts:

                 

Payment Guarantees

     12,515,536        1,150,185        73,192        40,890        13,498        13,793,301  

Loan Commitments

     120,623,982        3,512,099        2,166,380        496,824        29,907        126,829,192  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     133,139,518        4,662,284        2,239,572        537,714        43,405        140,622,493  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.

 

  5)

Collateral and other credit enhancements

For the three-month period ended March 31, 2024 and for the year ended December 31, 2023, there have been no significant changes in the value of collateral or other credit enhancements held by the Group and there have been no significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Group.

 

(2)

Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates.

 

  1)

Market risk management

Market risk management refers to the process of making and implementing decisions for the avoidance, acceptance or mitigation of risks by identifying the underlying source of the risks, measuring its level, and evaluating the appropriateness of the level of accepted market risks for both trading and non-trading activities.

 

  a)

Trading activities

The Group uses the standard approach and internal model approach (Woori Bank) in measuring market risk for trading positions, and allocates market risk capital through the Risk Management Committee. Risk management departments of the Group and its subsidiaries manage limits in detail including those on risk and loss with their management result regularly reported to the Risk Management Committee.

 

- 38 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Subsidiaries such as Woori Bank manage market internal capital limits using the Basel III standard approach, and other subsidiaries manage market risks by applying the simple method.

The Basel III standard approach consists of a sensitivity method that measures linear and nonlinear losses that may occur due to unfavorable fluctuations in market risk factors, bankruptcy risks that may occur due to sudden bankruptcy, and residual risk-bearing equity capital for other losses.

Woori Bank, a major subsidiary subject to Basel III standard approach of market risk management, has the following equity capital required for market risk.(Unit : Korean Won in millions)

 

    

Risk Group

   March 31, 2024      December 31, 2023  

Sensitivity-based risk

   General interest rate risk      41,091        37,832  
   Equity risk      19,539        9,376  
   Commodity risk      7        12  
   Foreign exchange risk      245,768        249,044  
   Non-securitization credit spread risk      26,461        27,371  
   Securitization (excluding CTP (Correlation Trading Portfolio)) credit spread risk      —         —   
   CTP credit spread risk      —         —   

Default risk

   Non-Securitization bankruptcy risk      1,202        —   
   Securitization (excluding CTP) default risk      —         —   
   CTP default risk      —         —   

Residual risk

   Residual risk      974        692  
     

 

 

    

 

 

 

Total

        335,042        324,327  
     

 

 

    

 

 

 

 

  b)

Non-trading activities

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

ΔNII represents a change in net interest income that may occur over a certain period (e.g. one year) due to changes in interest rates, and ΔEVE indicates the economic value changes in equity capital that could be caused by changes in interest rates affecting the present value of asset, liabilities, and off-balance accounts.

ΔEVE and ΔNII calculated on interest risk in banking book(IRRBB) basis for assets and liabilities by subsidiary as of March 31, 2024 and December 31, 2023 are as follows(Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  
     ΔEVE (*1)      ΔNII (*2)      ΔEVE (*1)      ΔNII (*2)  

Woori Bank

     464,292        720,198        683,660        743,489  

Woori Card Co., Ltd.

     84,320        75,694        80,720        76,846  

Woori Financial Capital Co., Ltd.

     56,943        19,978        48,523        17,585  

Woori Investment Bank Co., Ltd.

     5,653        18,236        4,464        15,303  

Woori Asset Trust Co., Ltd.

     2,615        11,955        1,210        7,018  

Woori Asset Management Corp.

     1,164        2,689        832        2,154  

Woori Savings Bank

     6,947        8,790        7,347        11,077  

 

- 39 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Woori Private Equity Asset Management Co., Ltd.

     36        823        80        775  

Woori Global Asset Management Co., Ltd.

     —         —         536        269  

Woori Financial F&I Co., Ltd.

     85,187        9,706        63,852        3,961  

Woori Venture Partners Co., Ltd.

     545        2,693        340        2,782  

 

(*1)

ΔEVE: change in Economic Value of Equity

(*2)

ΔNII: change in Net Interest Income

 

- 40 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

At the interest rate re-pricing date, cash flows (both principal and interest) of interest bearing assets and liabilities, which is the basis of non-trading position interest rate risk management are as follows: (Unit: Korean Won in millions):

 

     March 31, 2024  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Asset:

                    

Loans and other financial assets at amortized cost

     250,918,787        51,360,566        13,227,859        19,795,530        58,504,856        3,937,520        397,745,118  

Financial assets at FVTPL

     2,363,151        69,818        28,130        67,531        48,846        75        2,577,551  

Financial assets at FVTOCI

     5,302,701        2,475,261        2,327,983        2,465,916        23,269,102        924,984        36,765,947  

Securities at amortized cost

     1,481,397        3,348,310        1,417,913        890,835        15,286,119        2,087,474        24,512,048  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     260,066,036        57,253,955        17,001,885        23,219,812        97,108,923        6,950,053        461,600,664  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liability:

                    

Deposits due to customers

     161,484,249        49,101,227        58,978,446        26,236,157        62,692,358        50,585        358,543,022  

Borrowings

     21,087,172        3,573,972        2,503,264        1,994,218        3,573,271        454,167        33,186,064  

Debentures

     7,789,788        4,385,825        5,678,608        3,897,794        19,719,142        3,076,262        44,547,419  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     190,361,209        57,061,024        67,160,318        32,128,169        85,984,771        3,581,014        436,276,505  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     December 31, 2023  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Asset:

                    

Loans and other financial assets at amortized cost

     245,179,685        55,105,699        17,928,072        12,101,395        55,840,540        3,594,287        389,749,678  

Financial assets at FVTPL

     2,155,339        178,206        37,672        22,719        52,341        90        2,446,367  

Financial assets at FVTOCI

     5,976,531        3,489,341        2,425,700        3,008,905        22,852,783        756,272        38,509,532  

Securities at amortized cost

     1,451,409        1,230,486        3,335,565        1,416,082        15,907,380        2,171,914        25,512,836  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     254,762,964        60,003,732        23,727,009        16,549,101        94,653,044        6,522,563        456,218,413  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liability:

                    

Deposits due to customers

     169,127,109        52,395,270        32,948,424        47,030,448        60,621,757        34,406        362,157,414  

Borrowings

     20,147,327        5,157,330        1,933,137        2,575,993        4,112,788        437,839        34,364,414  

Debentures

     7,741,466        5,188,081        4,104,309        5,168,597        18,443,853        3,223,255        43,869,561  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     197,015,902        62,740,681        38,985,870        54,775,038        83,178,398        3,695,500        440,391,389  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  2)

Currency risk

Currency risk arises from the financial instruments denominated in foreign currencies other than the functional currency. Therefore, no currency risk arises from non-monetary items or financial instruments denominated in the functional currency.

Financial instruments in foreign currencies exposed to currency risk as of March 31, 2024 and December 31, 2023 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):

 

- 41 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

    March 31, 2024  
    USD     JPY     CNY     EUR     Others     Total  
    Foreign
currency
    Korean
Won
equivalent
    Foreign
currency
    Korean
Won
equivalent
    Foreign
currency
    Korean
Won
equivalent
    Foreign
currency
    Korean
Won
equivalent
    Korean
Won
equivalent
    Korean
Won
equivalent
 

Asset   Cash and cash equivalents

    7,923       10,670,672       110,874       986,204       1,413       262,477       547       794,610       1,169,100       13,883,063  

Loans and other financial assets at amortized cost

    27,561       37,119,243       149,587       1,331,246       24,139       4,483,850       2,550       3,704,695       4,902,559       51,541,593  

Financial assets at FVTPL

    934       1,257,774       19,449       172,992       —        —        322       467,642       103,390       2,001,798  

Financial assets at FVTOCI

    3,468       4,670,355       —        —        2,843       528,083       6       8,681       749,032       5,956,151  

Securities at amortized cost

    718       966,895       —        —        979       181,875       65       93,829       183,786       1,426,385  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    40,604       54,684,939       279,910       2,490,442       29,374       5,456,285       3,490       5,069,457       7,107,867       74,808,990  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liability Financial liabilities at FVTPL

    368       495,612       36,915       328,348       —        —        296       430,701       61,815       1,316,476  

Deposits due to customers

    22,845       30,767,644       281,557       2,504,395       23,762       4,413,802       2,012       2,922,812       5,795,745       46,404,398  

Borrowings

    8,358       11,256,960       39,201       348,685       694       128,908       383       556,522       2,723,372       15,014,447  

Debentures

    5,507       7,417,496       —        —        —        —        195       283,002       —        7,700,498  

Other financial liabilities

    4,961       6,681,169       20,626       183,468       2,064       383,393       370       537,679       413,493       8,199,202  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    42,039       56,618,881       378,299       3,364,896       26,520       4,926,103       3,256       4,730,716       8,994,425       78,635,021  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Off-balanceaccounts

    8,218       11,067,962       27,862       247,823       1,874       348,056       747       1,085,614       1,260,511       14,009,966  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    December 31, 2023  
    USD     JPY     CNY     EUR     Others     Total  
    Foreign
currency
    Korean
Won
equivalent
    Foreign
currency
    Korean
Won
equivalent
    Foreign
currency
    Korean
Won
equivalent
    Foreign
currency
    Korean
Won
equivalent
    Korean
Won
equivalent
    Korean
Won
equivalent
 

Asset   Cash and cash equivalents

    8,540       11,011,576       108,421       989,519       1,377       248,965       641       914,960       1,145,464       14,310,484  

Loans and other financial assets at amortized cost

    24,463       31,542,764       138,242       1,261,674       30,536       5,522,075       1,791       2,554,897       4,585,588       45,466,998  

Financial assets at FVTPL

    884       1,140,110       49,640       453,047       —        —        280       399,828       72,351       2,065,336  

Financial assets at FVTOCI

    3,136       4,044,155       —        —        3,882       701,938       6       8,549       738,710       5,493,352  

Securities at amortized cost

    1,223       1,576,690       —        —        618       111,839       68       97,393       184,938       1,970,860  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    38,246       49,315,295       296,303       2,704,240       36,413       6,584,817       2,786       3,975,627       6,727,051       69,307,030  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liability Financial liabilities at FVTPL

    350       451,700       23,806       217,266       —        —        209       297,521       98,885       1,065,372  

Deposits due to customers

    23,962       30,896,247       279,377       2,549,759       23,162       4,188,690       2,122       3,027,521       5,531,242       46,193,459  

Borrowings

    9,339       12,041,139       70,741       645,621       1,658       299,748       225       321,529       2,632,379       15,940,416  

Debentures

    4,811       6,202,675       —        —        —        —        195       277,871       —        6,480,546  

Other financial liabilities

    3,448       4,446,194       26,977       246,206       7,752       1,401,956       99       141,404       387,310       6,623,070  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    41,910       54,037,955       400,901       3,658,852       32,572       5,890,394       2,850       4,065,846       8,649,816       76,302,863  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Off-balanceaccounts

    7,748       9,990,349       30,143       275,101       2,043       369,483       796       1,135,845       568,935       12,339,713  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 42 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

Liquidity risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations from its financial liabilities.

 

  1)

Liquidity risk management

Liquidity risk management is to prevent potential cash shortages as a result of mismatching maturity of assets and liabilities or unexpected cash outflows. The consolidated financial liabilities that are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives instruments are excluded from those financial liabilities as they reflect expected cash flows for a pre-determined period.

Assets and liabilities are grouped by account under Asset Liability Management (“ALM”) in accordance with the characteristics of the account. The Group manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.), while maintaining the gap ratio at or below the target limit.

 

  2)

Maturity analysis of non-derivative financial liabilities

 

  a)

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over
5 years
     Total  

Financial liabilities at FVTPL

     142,816        —         —         119,289        —         —         262,105  

Deposits due to customers

     230,495,823        35,528,819        48,101,460        27,853,546        18,129,881        1,492,174        361,601,703  

Borrowings

     12,992,820        5,115,791        4,631,196        3,432,650        4,260,396        520,835        30,953,688  

Debentures

     5,676,735        5,667,175        6,547,558        3,897,794        19,719,142        3,076,262        44,584,666  

Lease liabilities

     51,109        67,036        40,163        33,829        165,224        26,039        383,400  

Other financial liabilities

     22,210,687        100,863        46,060        28,200        1,106,977        3,868,775        27,361,562  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     271,569,990        46,479,684        59,366,437        35,365,308        43,381,620        8,984,085        465,147,124  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     December 31, 2023  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over
5 years
     Total  

Financial liabilities at FVTPL

     39,524        89,287        —         —         10,256        56,221        195,288  

Deposits due to customers

     236,125,560        39,103,357        22,776,074        50,089,672        16,898,791        1,549,490        366,542,944  

Borrowings

     11,415,214        6,626,722        4,345,143        4,579,032        4,331,196        437,839        31,735,146  

Debentures

     5,510,096        5,328,382        5,383,741        6,035,590        18,439,577        3,223,255        43,920,641  

Lease liabilities

     74,228        42,106        58,241        33,679        151,127        25,172        384,553  

Other financial liabilities

     15,059,935        233,081        21,356        26,403        1,025,252        4,195,930        20,561,957  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     268,224,557        51,422,935        32,584,555        60,764,376        40,856,199        9,487,907        463,340,529  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

- 43 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  b)

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Financial liabilities at FVTPL

     142,816        —         —         119,289        —         —         262,105  

Deposits due to customers

     236,233,519        37,868,347        45,449,904        24,975,808        15,895,423        516,287        360,939,288  

Borrowings

     12,995,252        5,116,927        4,632,280        3,515,024        4,173,371        520,834        30,953,688  

Debentures

     5,676,735        5,667,175        6,547,558        3,897,794        19,719,142        3,076,262        44,584,666  

Lease liabilities

     52,353        68,399        41,541        34,139        176,910        26,453        399,795  

Other financial liabilities

     22,211,337        101,175        46,363        28,783        1,105,128        3,868,775        27,361,561  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     277,312,012        48,822,023        56,717,646        32,570,837        41,069,974        8,008,611        464,501,103  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     December 31, 2023  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Financial liabilities at FVTPL

     39,524        89,287        —         —         10,256        56,221        195,288  

Deposits due to customers

     241,935,362        41,132,677        23,468,344        44,082,420        14,717,842        505,146        365,841,791  

Borrowings

     11,419,501        6,630,868        4,346,740        4,579,314        4,331,196        437,839        31,745,458  

Debentures

     5,512,545        5,330,733        5,386,014        6,037,688        18,443,853        3,223,255        43,934,088  

Lease liabilities

     74,228        43,350        59,604        35,057        162,874        25,834        400,947  

Other financial liabilities

     15,059,935        233,081        21,356        26,403        1,025,252        4,195,930        20,561,957  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     274,041,095        53,459,996        33,282,058        54,760,882        38,691,273        8,444,225        462,679,529  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  3)

Maturity analysis of derivative financial liabilities

Derivatives held for trading purpose are not managed in accordance with their contractual maturity, since the Group holds such financial instruments with the purpose of disposing or redemption before their maturity. As such, those derivatives are incorporated as “within 3 months” in the table below. Derivatives designated for hedging purpose are estimated by offsetting cash inflows and cash outflows.

The cash flow by the maturity of derivative financial liabilities as of March 31, 2024 and December 31, 2023 is as follows (Unit: Korean Won in millions):

 

         Remaining maturity  
         Within 3
months
    4 to 6
months
    7 to 9
months
    10 to 12
months
    1 to 5
years
     Over 5
years
    Total  

March 31, 2023

 

Cash flow risk hedge

     (1,296     (1,265     (1,097     (854     446        —        (4,066
 

Fair value risk hedge

     57,798       (5,378     54,063       (12,378     109,647        (17,716     186,036  
 

Trading purpose

     7,016,286       —        —        —        —         —        7,016,286  

December 31, 2023

 

Cash flow risk hedge

     (1,223     (875     (590     (302     13,689        —        10,699  
 

Fair value risk hedge

     29,176       34,370       157       35,272       30,241        —        129,216  
 

Trading purpose

     5,943,024       —        —        —        —         —        5,943,024  

 

- 44 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  4)

Maturity analysis of off-balance accounts (Payment guarantees, commitments, and etcs)

A payment guarantee represents an irrevocable undertaking that the Group should meet a customer’s obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Group has promised a credit to the customer. Loan commitments include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for payment guarantees, such as financial guarantees for debentures issued or loans, unused loan commitments, and other credits, however, under the terms of the guarantees and unused loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Payment guarantees

     14,487,314        13,793,301  

Loan commitments

     132,213,536        126,829,192  

Other commitments

     4,856,749        4,854,099  

 

(4)

Operational risk

The Group defines the operational risk that could cause a negative effect on capital resulting from inadequate internal process, labor work and systematic problem or external factors.

 

  1)

Operational risk management

The Group has established and operated a group operational risk management system to cope with new Basel III global regulations, which is implemented since 2023, and the management of operational risks follows the procedures for risk recognition, evaluation, measurement, monitoring and reporting, risk control and mitigation.

 

  2)

Operational risk measurement

The Group applies the standard approach for the purpose of calculating operational risk required equity capital.

- The standard approach is to calculate operational risk required equity capital by multiplying the Business Indicator Component(BIC), which is calculated by multiplying Business Indicator(BI) that is a measure based on consolidated financial statements and adjustment coefficient, and the Internal Loss Multiplier(ILM), an adjusted multiplier based on the average past loss and operating index.

“Operational risk required equity capital” = Business Indicator Component (BIC) × Internal Loss Multiplier(ILM)

“Business Indicator Component(BIC)” = Business Index(BI) × Adjustment Coefficient

“Internal Loss Multiplier(ILM)” = ln (exp(1)-1 + (Loss Component(LC)/Business Indicator Component(BIC)^0.8)

 

Bucket

  

Business Index (BI) section

     The coefficient    

1

  

1.4 trillion Won or less

     12

2

  

More than 1.4 trillion Won and less than or equal to 42 trillion Won

     15

3

  

Over 42 trillion Won

     18

 

- 45 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

5.

OPERATING SEGMENTS

In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker (“CODM”) utilizes the method of disclosing the financial information of the segments based on the organization of the Group. This financial information of the segments in this note is regularly reviewed by the CODM.

 

(1)

Segment by type of organization

The Group’s reporting segments consist of banking, credit card, capital, comprehensive finance and other sectors, and the composition of such reporting segments was divided based on internal report data periodically reviewed by the management to evaluate the performance of the segment and make decisions on the resources to be distributed.

 

    

Operational scope

Banking    Loans/deposits and relevant services for customers of Woori Bank
Credit card    Credit card, cash services, card loans and accompanying business of Woori Card Co., Ltd.
Capital    Installments, loans including lease financing, and accompanying business of Woori Financial Capital Co., Ltd.
Investment Banking    Securities operation, sale of financial instruments, project financing and other related activities for comprehensive financing of Woori Investment bank Co., Ltd.
Others    Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Asset Management Corp., Ltd., Woori Financial F&I Co., Ltd., Woori Savings Bank., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute, Woori Venture Partners Co., Ltd.

 

- 46 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(2)

The composition of each organization’s sectors for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

           For the three-month period ended March 31, 2024  
     Banking(*1)     Credit
card
    Capital     Investment
banking
    Others (*2)     Sub-total     Other
adjustments
(*3)
    Internal
adjustments
(*4)
    Consolidated
Adjustments
(*5)
    Total  

Net interest income

     1,625,102       166,110       65,818       32,192       26,342       1,915,564       29,579       255,605       (2,545     2,198,203  

Non-interest income(expense)

     506,112       32,996       22,832       14,140       1,280,280       1,856,360       7,491       (209,464     (1,303,722     350,665  

Impairment losses due to credit loss

     (178,478     (91,643     (23,286     (17,012     (10,618     (321,037     —        (46,170     695       (366,512

General and administrative expense

     (875,892     (68,188     (21,977     (13,651     (102,923     (1,082,631     (248     —        51,212       (1,031,667
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net operating income(expense)

     1,076,844       39,275       43,387       15,669       1,193,081       2,368,256       36,822       (29     (1,254,360     1,150,689  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Share of gain of associates

     654       —        (708     59       (1,041     (1,036     (9     —        6,554       5,509  

Other non-operating expense

     (9,891     (391     (35     (91     (472     (10,880     881       29       (2,271     (12,241
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income(expense)

     (9,237     (391     (743     (32     (1,513     (11,916     872       29       4,283       (6,732
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income(expense) before tax

     1,067,607       38,884       42,644       15,637       1,191,568       2,356,340       37,694       —        (1,250,077     1,143,957  

Tax expense

     (275,618     (9,589     (9,680     (3,006     (7,251     (305,144     —        —        98       (305,046
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income(loss)

     791,989       29,295       32,964       12,631       1,184,317       2,051,196       37,694       —        (1,249,979     838,911  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

     464,600,505       17,193,935       12,553,972       6,550,609       31,323,597       532,222,618       3,191,181       —        (30,646,401     504,767,398  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investment in associate

     1,010,874       —        34,243       4,543       24,122,568       25,172,228       25,428       —        (23,209,596     1,988,060  

Other assets

     463,589,631       17,193,935       12,519,729       6,546,066       7,201,029       507,050,390       3,165,753       —        (7,436,805     502,779,338  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     438,267,065       14,523,616       10,927,998       5,433,184       4,896,269       474,048,132       197,977       —        (3,403,054     470,843,055  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*1)

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

(*2)

Other segments includes gains and losses from Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute and Woori Venture Partners Co., Ltd.

(*3)

Other segments includes the funds subject to Group’s consolidation not included in the reporting segment.

(*4)

Internal reconciliation includes the adjustment of deposit insurance premiums of 120,868 million Won and fund contribution fees of 134,508 million Won from net interest income expenses to non-interest income expenses in order to present the profit and loss adjustment between reporting divisions in accordance with management accounting standards as profit and loss in accordance with accounting standards.

(*5)

Consolidation adjustments include the elimination of 51,852 million Won of internal transactions between Woori FIS Co., Ltd., the group’s IT service agency, and affiliates, and the removal of 1,189,333 million Won of dividends received by the holding company from its subsidiaries.

 

- 47 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

          For the three-month period ended March 31, 2023  
    Banking(*1)     Credit
card
    Capital     Investment
banking
    Others (*2)     Sub-total     Other
adjustments
(*3)
    Internal
adjustments
(*4)
    Consolidated
Adjustments
(*5)
    Total  

Net interest income

    1,892,461       169,777       86,514       25,524       25,816       2,200,092       (195,352     215,769       (1,688     2,218,821  

Non-interest income(expense)

    217,060       57,352       35,321       13,222       1,597,711       1,920,666       151,319       (152,787     (1,587,466     331,732  

Impairment losses due to credit loss

    (79,730     (102,586     (51,400     (15,206     (12,875     (261,797     63,523       (63,349     50       (261,573

General and administrative expense

    (888,387     (65,596     (21,044     (13,138     (135,555     (1,123,720     (111     —        86,851       (1,036,980
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net operating income(expense)

    1,141,404       58,947       49,391       10,402       1,475,097       2,735,241       19,379       (367     (1,502,253     1,252,000  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Share of gain(loss) of joint ventures and associates

    2,298       —        343       73       (52     2,662       (54     —        4,534       7,142  

Other non-operating expense

    11,969       138       (5     46       (159     11,989       440       367       (1,617     11,179  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income(expense)

    14,267       138       338       119       (211     14,651       386       367       2,917       18,321  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income(expense) before tax

    1,155,671       59,085       49,729       10,521       1,474,886       2,749,892       19,765       —        (1,499,336     1,270,321  

Tax expense

    (290,540     (13,145     (10,505     (2,513     (8,463     (325,166     2       —        1,465       (323,699
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income(loss)

    865,131       45,940       39,224       8,008       1,466,423       2,424,726       19,767       —        (1,497,871     946,622  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    441,112,879       15,987,931       12,037,681       5,800,284       29,940,329       504,879,104       2,282,243       —        (29,082,092     478,079,255  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investment to joint ventures and associates

    908,637       —        38,427       3,941       22,956,697       23,907,702       29,611       —        (22,454,270     1,483,043  

Other assets

    440,204,242       15,987,931       11,999,254       5,796,343       6,983,632       480,971,402       2,252,632       —        (6,627,822     476,596,212  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    415,507,697       13,570,227       10,497,048       5,137,602       4,717,684       449,430,258       124,620       —        (4,079,236     445,475,642  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*1)

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

(*2)

Other segments include Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Inc., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute., and Woori Venture Partners Co.,Ltd

(*3)

Other Adjustments are composed of group-consolidated funds that are not included in the reporting segment.

(*4)

Internal adjustment includes adjustment of KRW 112,060 million in deposit insurance premiums and KRW 103,891 million in fund contribution fees from net interest income to non-interest income to present income adjustment between reporting sectors in accordance with management accounting standards.

(*5)

Consolidation adjustments include the elimination of KRW 85,787 million of internal transactions between Woori FIS Co., Ltd., the group’s IT service agency, and affiliates, and the removal of KRW 1,469,291 million of dividends received by the holding company from its subsidiaries.

 

- 48 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

Operating profit or loss from external customers for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
Details    2024      2023  

Domestic

     1,049,603        848,212  

Foreign

     101,086        403,788  
  

 

 

    

 

 

 

Total

     1,150,689        1,252,000  
  

 

 

    

 

 

 

 

(4)

Major non-current assets as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

Details (*)    March 31, 2024      December 31, 2023  

Domestic

     6,004,662        5,804,919  

Foreign

     639,024        636,820  
  

 

 

    

 

 

 

Total

        6,643,686           6,441,739  
  

 

 

    

 

 

 

 

(*)

Major non-current assets included joint ventures and related business investments, investment properties, Premises and equipment, and intangible assets.

 

(5)

Information about major customers

The Group does not have any single customer that generates 10% or more of the Group’s total revenue for the three-month periods ended March 31, 2024 and 2023.

 

- 49 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

6.

STATEMENTS OF CASH FLOWS

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Cash

     1,696,020        1,464,606  

Foreign currencies

     683,199        715,495  

Demand deposits

     29,297,442        28,248,420  

Fixed deposits

     257,623        128,097  
  

 

 

    

 

 

 

Total

     31,934,284        30,556,618  
  

 

 

    

 

 

 

 

(2)

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

 

      Counterparty      March 31, 2024      

Reason of restriction

Due from banks in local currency:

     

Due from BOK

   BOK      13,245,251      Reserve deposits under the BOK Act
     

 

 

    

Due from banks in foreign currencies:

     

Due from banks on demand

   Bank of Japan and others      1,043,298      Reserve deposits etc.
     

 

 

    

Total

     14,288,549     
  

 

 

    

 

     Counterparty    December 31, 2023     

Reason of restriction

Due from banks in local currency:

     

Due from BOK

   BOK      13,420,310      Reserve deposits under the BOK Act
     

 

 

    

Due from banks in foreign currencies:

 

  

Due from banks on demand

   Bank of Japan and others      957,627      Reserve deposits etc
     

 

 

    

Total

     14,377,937     
     

 

 

    

 

- 50 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

7.

FINANCIAL ASSETS AT FVTPL

 

(1)

Details of financial assets at FVTPL as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Financial assets at fair value through profit or loss

     23,192,488        21,544,756  

 

(2)

Financial assets at fair value through profit or loss as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Deposits:

     

Gold banking asset

     42,753        39,241  

Securities:

     

Debt securities

     

Korean treasury and government agencies

     4,475,941        4,310,612  

Financial institutions

     627,658        778,832  

Corporates

     570,039        433,488  

Securities loaned

     331,178        625,398  

Others

     262,167        158,908  

Equity securities

     402,546        421,989  

Capital contributions

     2,530,232        2,459,646  

Beneficiary certificates

     5,630,319        5,509,915  

Others

     182,378        181,691  
  

 

 

    

 

 

 

Sub-total

     15,012,458        14,880,479  
  

 

 

    

 

 

 

Loans

     910,939        782,716  

Derivatives assets

     7,180,459        5,798,329  

Other financial assets

     45,879        43,991  
  

 

 

    

 

 

 

Total

     23,192,488        21,544,756  
  

 

 

    

 

 

 

The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of March 31, 2024 and December 31, 2023.

 

- 51 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

8.

FINANCIAL ASSETS AT FVTOCI

 

(1)

Details of financial assets at FVTOCI as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Debt securities:

     

Korean treasury and government agencies

     6,402,095        5,728,241  

Financial institutions

     18,092,578        20,885,924  

Corporates

     3,999,603        3,994,432  

Bond denominated in foreign currencies

     5,854,561        5,493,295  

Securities loaned

     414,257        592,219  
  

 

 

    

 

 

 

Sub-total

     34,763,094        36,694,111  
  

 

 

    

 

 

 

Equity securities

     1,122,576        1,197,384  

Loans

     101,531        —   
  

 

 

    

 

 

 

Total

     35,987,201        37,891,495  
  

 

 

    

 

 

 

 

(2)

Details of equity securities designated as financial assets at FVTOCI as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

Purpose of acquisition

   March 31,
2024
     December 31,
2023
    

Remarks

Investment for strategic business partnership purpose

     951,010        1,039,203     

Debt-equity swap

     171,560        158,175     

Others

     6        6      Insurance for mutual aid association, etc.
  

 

 

    

 

 

    

Total

     1,122,576        1,197,384     
  

 

 

    

 

 

    

 

(3)

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

 

  1)

Loss allowance

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (27,379      —         —         (27,379

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Reversal of loss allowance

     259        —         —         259  

Disposal

     998        —         —         998  

Others (*)

     27        —         —         27  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

        (26,095      —         —            (26,095
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (11,805      —         —         (11,805

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Provision of loss allowance

     (413      —         —         (413

Disposal

     49        —         —         49  

Others (*)

     (101      —         —         (101
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

        (12,270      —         —            (12,270
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

- 52 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  2)

Gross carrying amount

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     36,694,111        —         —         36,694,111  

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Acquisition

     4,874,159        —         —         4,874,159  

Disposal / Recovery

     (6,946,499      —         —         (6,946,499

Gain (loss) on valuation

     (25,817      —         —         (25,817

Amortization based on effective interest method

     34,175        —         —         34,175  

Others (*)

     234,496        —         —         234,496  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     34,864,625        —         —         34,864,625  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     32,145,758        —         —         32,145,758  

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Acquisition

     5,146,596        —         —         5,146,596  

Disposal / Recovery

     (5,210,330      —         —         (5,210,330

Gain (loss) on valuation

     321,670        —         —         321,670  

Amortization based on effective interest method

     39,526        —         —         39,526  

Others (*)

     258,235        —         —         258,235  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     32,701,455        —         —         32,701,455  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

(4)

During three-month periods ended March 31, 2024 and 2023, the Group sold its equity securities., designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 1,382 million Won and 1,531 million Won respectively, and cumulative gains at disposal dates were 667 million Won and 197 million Won.

 

- 53 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

9.

SECURITIES AT AMORTIZED COST

 

(1)

Details of securities at amortized cost as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Korean treasury and government agencies

     7,940,187        8,143,585  

Financial institutions

     6,630,968        6,660,465  

Corporates

     7,145,612        7,235,202  

Bond denominated in foreign currencies

     1,426,344        1,970,861  

Allowance for credit losses

     (13,449      (13,941
  

 

 

    

 

 

 

Total

     23,129,662        23,996,172  
  

 

 

    

 

 

 

 

(2)

Changes in the loss allowance and gross carrying amount of securities at amortized cost are as follows (Unit: Korean Won in millions):

 

  1)

Loss allowance

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (13,941      —         —         (13,941

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Net provision of loss allowance

     528        —         —         528  

Others (*)

     (36      —         —         (36
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

         (13,449      —         —              (13,449
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (8,385      —         —         (8,385

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Net provision of loss allowance

     124        —         —         124  

Others (*)

     (14      —         —         (14
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

         (8,275      —         —              (8,275
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

- 54 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  2)

Gross carrying amount

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     24,010,113        —         —         24,010,113  

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Acquisition

     259,142        —         —         259,142  

Disposal / Recovery

     (1,202,353      —         —         (1,202,353

Amortization based on effective interest method

     23,051        —         —         23,051  

Others (*)

     53,158        —         —         53,158  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     23,143,111        —         —         23,143,111  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     28,276,901        —         —         28,276,901  

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Acquisition

     1,651,900        —         —         1,651,900  

Disposal / Recovery

     (2,774,733      —         —         (2,774,733

Amortization based on effective interest method

     55,903        —         —         55,903  

Others (*)

     82,829        —         —         82,829  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     27,292,800        —         —         27,292,800  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Others consist of foreign currencies translation, etc.

 

- 55 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

10.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

 

(1)

Details of loans and other financial assets at amortized cost as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Due from banks

     2,150,620        1,950,573  

Loans

     362,422,232        358,577,179  

Other financial assets

     14,875,936        12,620,396  
  

 

 

    

 

 

 

Total

     379,448,788        373,148,148  
  

 

 

    

 

 

 

 

(2)

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

 

     March 31, 2024      December 31, 2023  

Due from banks in local currency:

     

Due from depository banks

     135,074        108,344  

Due from non-depository institutions

     312        136  

Due from the Korea Exchange

     1,659        68  

Others

     201,078        135,390  

Loss allowance

     (54      (59
  

 

 

    

 

 

 

Sub-total

     338,069        243,879  
  

 

 

    

 

 

 

Due from banks in foreign currencies:

     

Due from banks on demand

     232,792        221,292  

Due from banks on time

     270,749        366,117  

Others

     1,324,607        1,135,072  

Loss allowance

     (15,597      (15,787
  

 

 

    

 

 

 

Sub-total

     1,812,551        1,706,694  
  

 

 

    

 

 

 

Total

        2,150,620          1,950,573  
  

 

 

    

 

 

 

 

(3)

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

 

    

Counterparty

     March 31, 2024       

Reason of restriction

Due from banks in local currency:      

Due from KSFC

   Korea Securities Finance Corp.      1,659      Reserve requirement for custormer deposits

Others

   Korea Federation of Savings Bank and others      127,355      Domestic currency exchange and collateral related to promissory notes and others
     

 

 

    
   Sub-total      129,014     
  

 

 

    
Due from banks in foreign currencies:      

Due from banks on demand

   National Bank of Cambodia and others      227,084      Reserve deposits and others

Due from banks on time

   National Bank of Cambodia      269      Usage deposits for fund settlement system

Others

   People’s Bank of China and others      1,166,734      Reserve deposits and others
     

 

 

    
   Sub-total      1,394,087     
  

 

 

    
  

Total

     1,523,101     
  

 

 

    

 

- 56 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

    

Counterparty

   December 31, 2023     

Reason of restriction

Due from banks in local currency:

     

Due from KSFC

   KB Securities Co., Ltd. and SI SECURITIES CORPORATION      68      Futures margin

Others

   Korea Federation of Savings Bank and others      129,974      Domestic currency exchange and collateral related to promissory notes and others
     

 

 

    
  

Sub-total

     130,042     
  

 

 

    

Due from banks in foreign currencies:

     

Due from banks on demand

   National Bank of Cambodia and others      216,147      Reserve deposits and others

Due from banks on time

   National Bank of Cambodia      321      Usage deposits for fund settlement system

Others

   People’s Bank of China and others      1,062,130      Reserve deposits and others
     

 

 

    
  

Sub-total

     1,278,598     
  

 

 

    
  

Total

     1,408,640     
  

 

 

    

 

(4)

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

 

  1)

Allowance for credit losses

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (15,846      —         —         (15,846

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Provision for allowance for credit loss

     (191      —         —         (191

Others (*)

     386        —         —         386  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     (15,651      —         —         (15,651
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage  2      Stage  3      Total  

Beginning balance

     (12,317      —         —         (12,317

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Provision for allowance for credit loss

     (1,261      —         —         (1,261

Others (*)

     41        —         —         41  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     (13,537      —         —         (13,537
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Changes due to foreign currencies translation, etc.

 

- 57 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  2)

Gross carrying amount

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     1,966,419        —         —         1,966,419  

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Net decrease

     174,051        —         —         174,051  

Others (*)

     25,801        —         —         25,801  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     2,166,271        —         —         2,166,271  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Changes due to foreign currencies translation, etc.

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     3,006,989        —         —         3,006,989  

Transfer to 12-month expected credit losses

     —         —         —         —   

Transfer to lifetime expected credit losses

     —         —         —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Net increase(decrease)

     824,898        —         —         824,898  

Changes due to business combinations

     113,000        —         —         113,000  

Others (*)

     30,050        —         —         30,050  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     3,974,937        —         —         3,974,937  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Changes due to foreign currencies translation, etc.

 

(5)

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

 

     March 31, 2024      December 31, 2023  

Loans in local currency

     301,264,149        298,157,823  

Loans in foreign currencies

     30,583,859        28,585,389  

Domestic banker’s usance

     2,791,494        2,726,633  

Credit card accounts

     11,778,354        12,531,620  

Bills bought in foreign currencies

     4,192,738        4,215,956  

Bills bought in local currency

     349,789        496,148  

Factoring receivables

     7,644        8,712  

Advances for customers on guarantees

     11,155        9,996  

Private placement bonds

     629,595        688,437  

Securitized loans

     3,457,274        3,203,135  

Call loans

     4,023,381        2,719,546  

Bonds purchased under resale agreements

     1,589,733        3,356,392  

Financial lease receivables

     1,310,177        1,362,279  

Installment financial bond

     2,684,944        2,635,720  

Others

     121        119  

Loan origination costs and fees

     867,658        865,694  

Discounted present value

     (8,185      (11,360

Allowance for credit losses

     (3,111,648      (2,975,060
  

 

 

    

 

 

 

Total

     362,422,232        358,577,179  
  

 

 

    

 

 

 

 

- 58 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(6)

Changes in the loss allowance of loans are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     (196,845     (134,002     (220,845     (947,688     (762,644     (363,703     (89

Transfer to 12-month expected credit losses

     (20,899     20,190       709       (31,184     31,163       21       —   

Transfer to lifetime expected credit losses

          13,414       (15,887     2,473       17,149       (21,905     4,756       —   

Transfer to credit-impaired financial assets

     4,688           26,756       (31,444     12,436           43,654       (56,090     —   

Net reversal(provision) of allowance for credit losses

     649       (32,795     (85,999     (18,137     (15,103     (111,271     (198

Recovery

     —        —        (18,930     —        —        (11,421     —   

Charge-off

     —        —        67,489       —        —        36,051       —   

Disposal

     —        200        10,143       17       1,654          37,508       88  

Interest income from impaired loans

     —        —        3,706       —        —        5,428       —   

Others

     (744     103       9,291            1,874       82       (1,026     —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     (199,737     (135,435     (263,407     (965,533     (723,099     (459,747     (199
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the three-month period ended March 31, 2024  
     Credit card accounts     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     (97,734     (118,112     (133,398     (1,242,267     (1,014,758     (717,946     (89

Transfer to 12-month expected credit losses

     (20,818     20,744       74       (72,901     72,097       804       —   

Transfer to lifetime expected credit losses

     7,951       (8,677     726           38,514       (46,469        7,955       —   

Transfer to credit-impaired financial assets

     1,398           24,665       (26,063     18,522           95,075       (113,597     —   

Net reversal(provision) of allowance for credit losses

           11,303       (34,259     (74,350     (6,185     (82,157     (271,620     (198

Recovery

     —        —        (7,040     —        —        (37,391     —   

Charge-off

     —        —        82,732       —        —        186,272       —   

Disposal

     —        —        6,367       17       1,854       54,018       88  

Interest income from impaired loans

     —        —        —        —        —        9,134       —   

Others

     —        —        —        1,130       185       8,265       —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     (97,900     (115,639     (150,952     (1,263,170     (974,173     (874,106     (199
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 59 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     For the three-month period ended March 31, 2023  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     (147,876     (128,089     (241,942     (453,621     (818,234     (241,465     (27

Transfer to 12-month expected credit losses

     (19,222         18,692       530       (23,792     22,869       923       —   

Transfer to lifetime expected credit losses

           10,096       (12,547     2,451       9,051       (17,468     8,417       —   

Transfer to credit-impaired financial assets

     4,764       30,872       (35,636     2,376           26,939       (29,315     —   

Net reversal(provision) of allowance for credit losses

     804       (35,511     (40,884     (49,915     (29,597     (24,524     (190

Recovery

     —        —        (15,571     —        —        (23,918     73  

Charge-off

     —        —         52,951       —        —        52,880       —   

Disposal

     —        —        20,939       236       —           24,364       —   

Interest income from impaired loans

     —        —        4,847       —        —        3,892       —   

Changes due to business combinations

     (868     —        —        —        —        —        —   

Others

     (720     (89     603       1,812       (2,072     162       —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     (153,022     (126,672     (251,712     (513,853     (817,563     (228,584     (144
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the three-month period ended March 31, 2023  
     Credit card receivables     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     (71,139     (127,814     (103,946     (672,636     (1,074,137     (587,353     (27

Transfer to 12-month expected credit losses

     (22,535         22,509       26       (65,549     64,070          1,479       —   

Transfer to lifetime expected credit losses

     6,269       (6,753     484       25,416       (36,768     11,352       —   

Transfer to credit-impaired financial assets

     1,447         28,022       (29,469          8,587           85,833       (94,420     —   

Net reversal(provision) of allowance for credit losses

          9,828       (26,278     (62,211     (39,283     (91,386     (127,619     (190

Recovery

     —        —        (10,928     —        —        (50,417     73  

Charge-off

     —        —        73,598       —        —        179,429       —   

Disposal

     —        —        19,939       236       —        65,242       —   

Interest income from impaired loans

     —        —        —        —        —        8,739       —   

Changes due to business combinations

     —        —        —        (868     —        —        —   

Others

     (1,315     —        —        (223     (2,161     765       —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     (77,445     (110,314     (112,507     (744,320     (1,054,549     (592,803     (144
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 60 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(7)

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

 

     For the three-month period ended March 31, 2024  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     132,812,981       14,714,396       642,086       188,612,028       10,621,387       856,844       768,487  

Transfer to 12-month expected credit losses

     3,207,910       (3,202,688     (5,222     1,219,158       (1,219,084     (74     —   

Transfer to lifetime expected credit losses

     (4,374,213     4,401,063       (26,850     (1,373,553     1,392,914       (19,361     —   

Transfer to credit-impaired financial assets

     (77,277     (166,971     244,248       (207,727     (319,573     527,300       —   

Charge-off

     —        —        (67,489     —        —        (36,051     —   

Disposal

     —        (8,912     (72,520     (82     (7,560     (162,828     (40,077

Net increase(decrease)

     557,570       (806,580     (21,614     5,952,431       (619,985     (115,410     180,297  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     132,126,971       14,930,308       692,639       194,202,255       9,848,099       1,050,420       908,707  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the three-month period ended March 31, 2024  
     Credit card accounts     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     11,287,068       983,611       253,351       332,712,077       26,319,394       1,752,281       768,487  

Transfer to 12-month expected credit losses

     227,107       (227,000     (107     4,654,175       (4,648,772     (5,403     —   

Transfer to lifetime expected credit losses

     (437,044     438,077       (1,033     (6,184,810     6,232,054       (47,244     —   

Transfer to credit-impaired financial assets

     (27,983     (68,968     96,951       (312,987     (555,512     868,499       —   

Charge-off

     —        —        (82,732     —        —        (186,272     —   

Disposal

     —        —        (10,707     (82     (16,472     (246,055     (40,077

Net increase(decrease)

     (560,617     (118,186     22,693       5,949,384       (1,544,751     (114,331     180,297  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     10,488,531       1,007,534       278,416       336,817,757       25,785,941       2,021,475       908,707  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 61 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     For the three-month period ended March 31, 2023  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     131,328,377       14,020,582       564,057       179,552,435       9,486,297       625,998       313,717  

Transfer to 12-month expected credit losses

     3,062,883       (3,058,361     (4,522     1,005,290       (997,018     (8,272     —   

Transfer to lifetime expected credit losses

     (3,648,516     3,664,599       (16,083     (1,298,250     1,315,676       (17,426     —   

Transfer to credit-impaired financial assets

     (79,211     (156,909     236,120       (88,777     (183,514     272,291       —   

Charge-off

     —        —        (52,951     —        —        (52,880     —   

Disposal

     —        —        (49,790     (18,051     (1     (129,175     (33,103

Net increase(decrease)

     (1,967,424     (725,505     (25,912     (2,506,248     (507,958     (287,675     —   

Changes due to business combinations

     1,144       —        —        —        —        —        —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     128,697,253       13,744,406       650,919       176,646,399       9,113,482       402,861       280,614  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the three-month period ended March 31, 2023  
     Credit card receivables     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
 

Beginning balance

     9,115,460       1,066,380       179,410       319,996,272       24,573,259       1,369,465       313,717  

Transfer to 12-month expected credit losses

     286,477       (286,438     (39     4,354,650       (4,341,817     (12,833     —   

Transfer to lifetime expected credit losses

     (288,079     288,757       (678     (5,234,845     5,269,032       (34,187     —   

Transfer to credit-impaired financial assets

     (23,219     (78,645     101,864       (191,207     (419,068     610,275       —   

Charge-off

     —        —        (73,598     —        —        (179,429     —   

Disposal

     —        —        (42,232     (18,051     (1     (221,197     (33,103

Net increase(decrease)

     72,290       (97,169     27,018       (4,401,382     (1,330,632     (286,569     —   

Changes due to business combinations

     —        —        —        1,144       —        —        —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

       9,162,929        892,885       191,745       314,506,581       23,750,773       1,245,525         280,614   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 62 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(8)

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

 

     March 31, 2024      December 31, 2023  

Cash Management Account asset (CMA asset)

     106,000        91,000  

Receivables

     11,331,445        9,061,936  

Accrued income

     2,068,992        1,972,330  

Telex and telephone subscription rights and refundable deposits

     835,585        793,510  

Domestic exchange settlement debit

     272,757        446,570  

Other assets

     422,121        411,330  

Allowance for credit losses

     (160,964      (156,280
  

 

 

    

 

 

 

Total

     14,875,936        12,620,396  
  

 

 

    

 

 

 

 

(9)

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

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (9,019      (17,062      (130,199      (156,280

Transfer to 12-month expected credit losses

     (355          343        12        —   

Transfer to lifetime expected credit losses

            208        (255      47        —   

Transfer to credit-impaired financial assets

     108        1,808        (1,916      —   

Reversal (provision) of loss allowance

     453        (3,217      (314      (3,078

Charge-off

     —         —         605               605  

Disposal

     —         —         592        592  

Others

     1,587        (2      (4,388      (2,803
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     (7,018      (18,385      (135,561      (160,964
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (4,178      (9,133      (125,869      (139,180

Transfer to 12-month expected credit losses

     (271          259        12        —   

Transfer to lifetime expected credit losses

            158        (202      44        —   

Transfer to credit-impaired financial assets

     121        1,644        (1,844      (79

Reversal (provision) of loss allowance

     (91      (2,543      (26      (2,660

Charge-off

     —         —         313        313  

Disposal

     —         —              388               388  

Changes due to business combinations

     (1,611      —         —         (1,611

Others

     (43      (1      (54      (98
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     (5,915      (9,976      (127,036      (142,927
  

 

 

    

 

 

    

 

 

    

 

 

 

 

- 63 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(10)

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

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     12,510,625        111,898        154,153        12,776,676  

Transfer to 12-month expected credit losses

     12,937        (12,925      (12      —   

Transfer to lifetime expected credit losses

     (19,124      19,196        (72      —   

Transfer to credit-impaired financial assets

     (3,244      (9,197      12,441        —   

Charge-off

     —         —         (605      (605

Disposal

     —         (3      (630      (633

Net increase (decrease)

     2,249,270        9,699        2,493        2,261,462  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     14,750,464        118,668        167,768        15,036,900  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     8,886,721        21,454        78,502        8,986,677  

Transfer to 12-month expected credit losses

     11,239        (11,226      (13      —   

Transfer to lifetime expected credit losses

     (13,781      13,825        (44      —   

Transfer to credit-impaired financial assets

     (884      (4,728      5,812        200  

Charge-off

     —         —         (313      (313

Disposal

     —         —         (375      (375

Net increase (decrease)

     4,682,662        93,868        169,176        4,945,706  

Changes due to business combinations

     13,240        —         —         13,240  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     13,579,197        113,193        252,745        13,945,135  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

- 64 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

11.

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

 

(1)

The fair value hierarchy

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

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

 

   

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

 

   

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

 

   

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

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

 

- 65 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(2)

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

 

     March 31, 2024  
     Level 1 (*)      Level 2 (*)      Level 3      Total  

Financial assets:

           

Financial assets at FVTPL

           

Deposits

     42,753        —         —         42,753  

Debt securities

     4,357,092        1,902,081        7,810        6,266,983  

Equity securities

     38,168        —         364,378        402,546  

Capital contributions

     —         —         2,530,232        2,530,232  

Beneficiary certificates

     169,330        3,605,899        1,855,090        5,630,319  

Loans

     —         858,658        52,281        910,939  

Derivative assets

     3,849        7,117,995        58,615        7,180,459  

Other financial assets in foreign currency

     —         —         44,296        44,296  

Others

     —         —         183,961        183,961  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     4,611,192        13,484,633        5,096,663        23,192,488  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial assets at FVTOCI

           

Debt securities

     13,482,585        21,280,509        —         34,763,094  

Equity securities

     595,926        —         526,650        1,122,576  

Loans

     —         —         101,531        101,531  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     14,078,511        21,280,509        628,181        35,987,201  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative assets (designated for hedging)

     —         62,837        —         62,837  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     18,689,703        34,827,979        5,724,844        59,242,526  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities:

           

Financial liabilities at FVTPL

           

Deposits due to customers

     42,886        —         —         42,886  

Derivative liabilities

     2,634        7,008,816        4,836        7,016,286  

Securities sold

     219,218        —         —         219,218  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     264,738        7,008,816        4,836        7,278,390  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities designated to be measured at FVTPL

           

Deposits due to customers

     —         169,839        —         169,839  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative liabilities (designated for hedging)

     —         185,554        —         185,554  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     264,738        7,364,209        4,836        7,633,783  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

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

 

- 66 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     December 31, 2023  
     Level 1 (*)      Level 2 (*)      Level 3      Total  

Financial assets:

           

Financial assets at FVTPL

           

Deposits

     39,241        —         —         39,241  

Debt securities

     4,414,956        1,888,052        4,230        6,307,238  

Equity securities

     68,691        19        353,279        421,989  

Capital contributions

     —         —         2,459,646        2,459,646  

Beneficiary certificates

     169,012        3,634,938        1,705,965        5,509,915  

Loans

     —         726,714        56,002        782,716  

Derivative assets

     113        5,669,078        129,138        5,798,329  

Other financial assets in foreign currency

     —         —         42,408        42,408  

Others

     —         —         183,274        183,274  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     4,692,013        11,918,801        4,933,942        21,544,756  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial assets at FVTOCI

           

Debt securities

     12,392,117        24,301,994        —         36,694,111  

Equity securities

     649,220        —         548,164        1,197,384  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     13,041,337        24,301,994        548,164        37,891,495  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative assets (designated for hedging)

     —         26,708        —         26,708  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     17,733,350        36,247,503        5,482,106        59,462,959  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities:

           

Financial liabilities at FVTPL

           

Deposits due to customers

     39,524        —         —         39,524  

Derivative liabilities

     8,303        5,932,727        1,994        5,943,024  

Securities sold

     155,765        —         —         155,765  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     203,592        5,932,727        1,994        6,138,313  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative liabilities (designated for hedging)

     —         153,007        —         153,007  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     203,592        6,085,734        1,994        6,291,320  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

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

 

- 67 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

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

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

 

  1)

Valuation methods and input variables for each type of financial instrument classified into level 2 as of March 31, 2024 and December 31, 2023 are as follows:

 

    

Valuation methods

  

Input variables

Debt securities    Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread and LSMC and Hull-White model.    Risk-free market rate, credit spread, discount rate originated from credit grade, volatility of stock and volatility of interest rate
Equity securities and beneficiary certificates    The beneficiary certificates are measured at net asset value method, DCF model(Discounted Cash Flow Model), Binomial Tree model and T-F model.    Values of underlying assets such as bond, discount rate, volatility of stock, terminal growth rate etc.
Derivatives    Fair value is measured by models such as option model.    Discount rate, volatility, exchange rate, stock prices, fair value originated from forward price etc.
Loans    The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor.    Risk-free market rate and credit spread
Deposits    Fair value is measured by Hull-White model.    Swaption Volume etc.

 

  2)

Valuation methods and input variables for each type of financial instrument classified into level 3 as of December 31, 2024 and 2023 are as follows:

 

    

Valuation methods

  

Input variables

Loans    Fair value is measured by using the DCF model (Discounted Cash Flow Model) and LSMC(Hull-White) etc. which is a valuation technique commonly used in the market taking into account values and volatility of underlying assets.    Values of underlying assets, volatility, discount rate, volatility of stock, volatility of interest rate
Debt securities    Fair value is measured by models such as LSMC(Least-Squares Monte Carlo), Hull-White model.    Discount rate originated from credit grade, volatility of stocks , volatility of interest rate etc.
Equity securities, capital contributions and Beneficiary certificates    Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Net Asset Value Method, LSMC, Binomial Tree Model, Hull-White and Precedent Transactions model, one or more methods are used given the characteristic of the subject of fair value measurement.    Risk-free market rate, market risk premium, corporate Beta, stock prices, volatility of underlying asset, discount rate originated from credit grade, volatility of interest rate, volatility of real estate value, terminal growth rate, PBR, PSR etc.
Derivatives    Fair value is measured by models such as option model.    Correlation, etc.
Others    The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the binomial tree, which is commonly used valuation techniques in the market.    Stock price, volatility of underlying assets, etc.

 

- 68 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

 

 

              

March 31, 2024

    

Fair value measurement
technique

  

Type

  

Significant

unobservable

inputs

  

Range

  

Impact of changes in

significant unobservable

inputs on fair value

measurement

Loans    DCF model and others       Discount rate    2.15%~6.72%    Fair value increases as discount rate decreases.
   LMSC(Hull-White)       Volatility    17.83%~26.16%    Fair value increases as volatility increases.
Derivative assets    Option valuation model and others    Equity related    Correlation coefficient    0.32~0.68    Variation of fair value increases as correlation coefficient increases.
Derivative liabilities    Option valuation model and others    Equity related    Correlation coefficient    0.32~0.68    Variation of fair value increases as correlation coefficient increases.
Equity securities, capital contributions, and Beneficiary certificates    Binomial Tree       Discount rate    3.58%    Fair value increases as discount rate decreases.
         Stock prices, Volatility of underlying asset    26.87%~76.22%    Variation of fair value increases as volatility of underlying asset and stock price increases.
   T-F model       Discount rate    6.98%    Fair value increases as discount rate decreases.
         Volatility of stock    34.60%    Variation of fair value increases as volatility increases.
   DCF model and others       Discount rate    5.12%~21.07%    Fair value increases as discount rate decreases.
         Terminal growth rate    0.00%~2.00%    Fair value increases as terminal growth rate increases.
         Liquidation value    -1.00%~1.00%    Fair value increases as liquidation value increases.
   LMSC(Hull-White)       Volatility    17.32%~17.67%    Fair value increases as volatility increases.
Others    Binomial Tree       Stock prices, Volatility of underlying asset    19.35%~68.48%    Variation of fair value increases as volatility of underlying asset and stock price increases.
   DCF model and others       Discount rate    11.03%    Fair value increases as discount rate decreases.
         Terminal growth rate    0.00%    Fair value increases as terminal growth rate increases.

 

- 69 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

 

              

December 31, 2023

    

Fair value measurement
technique

  

Type

  

Significant

unobservable

inputs

  

Range

  

Impact of changes in

significant unobservable

inputs on fair value

measurement

Loans    DCF model and others       Discount rate    4.05%~6.58%    Fair value increases as discount rate decreases.
   LSMC(Hull-White)       Volatility of stock    0.19%~0.24%    Fair value increases as volatility of stock increases.
         Volatility of interest rate    0.47%~0.91%    Fair value increases as volatility of interest rate increases.
         Discount rate    13.78%~21.92%    Fair value increases as discount rate decreases.
Derivative assets    Option valuation model and others    Equity related    Correlation coefficient    0.32~0.68    Variation of fair value increases as correlation coefficient increases.
Derivative liabilities    Option valuation model and others    Equity related    Correlation coefficient    0.32~0.68    Variation of fair value increases as correlation coefficient increases.
Equity securities, capital contributions, and beneficiary certificates    Binomial Tree       Discount rate    3.58%    Fair value increases as discount rate decreases.
         Stock prices, Volatility of underlying asset, Volatility of stocks    27.34%~76.22%    Variation of fair value increases as volatility of underlying asset and stock price increases.
   Risk-adjusted discount rate method (Tsiveriotis-Fernandes)       Discount rate    6.98%    Fair value increases as discount rate decreases.
         Volatility of stock    34.6%    Variation of fair value increases as volatility of stock increases.
   DCF model and others       Discount rate    5.08%~19.90%    Fair value increases as discount rate decreases.
         Terminal growth rate    0.00%, 1.00%    Fair value increases as terminal growth rate increases.
         Liquidation value    -1.00%~1.00%    Fair value increases as liquidation value increases.
   LSMC(Hull-White)       Discount rate    5.06%~6.86%    Fair value increases as discount rate decreases.
Others    Binomial Tree       Stock prices, Volatility of underlying asset    15.48%~76.22%    Variation of fair value increases as volatility of underlying asset and stock price increases.
         Discount rate    10.42%    Fair value increases as discount rate decreases.
         Growth rate    0.00%    Fair value increases as terminal growth rate increases

Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.

 

- 70 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions):

 

          For the three-month period ended March 31, 2024  
          Beginning
balance
     Net
income
(loss) (*1)
    Other
comprehensive
income
    Purchases/
issuances
     Disposals /
settlements
    Transfer to
or out of
Level 3 (*2)
    Ending
balance
 

Financial assets:

                   

Financial assets at FVTPL

                   

Debt securities

        4,230        3,580       —        —         —        —        7,810  

Equity securities

        353,279        (3,997     —        13,222        (73     1,947       364,378  

Capital contributions

        2,459,646        20,283       —        108,522        (58,219     —        2,530,232  

Beneficiary certificates

        1,705,965        14,392       —        92,946        47,808       (6,021     1,855,090  

Loans

        56,002        47       —        178,807        (182,575     —        52,281  

Derivative assets

        129,138        1,462       —        —         (71,985     —        58,615  

Other foreign currency financial assets

        42,408        1,888       —        —         —        —        44,296  

Others

        183,274        1,687       —        —         (1,000     —        183,961  
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Sub-total

        4,933,942        39,342       —        393,497        (266,044     (4,074     5,096,663  
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Financial assets at FVTOCI

                   

Equity securities

        548,164        —        (21,588     74        —        —        526,650  

Loans

        —         —        (18     193,450        (91,901     —        101,531  
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Sub-total

        548,164        —        (21,606     193,524        (91,901     —        628,181  
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total

        5,482,106        39,342       (21,606     587,021        (357,945     (4,074     5,724,844  
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Financial liabilities:

                   

Financial liabilities at FVTPL

                   

Derivative liabilities

        1,994        3,383       —        —         (541     —        4,836  
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total

        1,994        3,383       —        —         (541     —        4,836  
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounting to 24,719 million Won for the year ended March 31, 2024, which is from financial assets and liabilities that the Group holds as at the end of the year.

(*2)

The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

 

- 71 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     For the three-month period ended March 31, 2023  
     Beginning
balance
     Business
combination
     Net
income
(loss) (*1)
    Other
comprehensive
income
    Purchases/
issuances
     Disposals /
settlements
    Transfer to
or out of
Level 3 (*2)
    Ending
balance
 

Financial assets:

                   

Financial assets at FVTPL

                   

Debt securities

     1,078        —         6       —        —         —        —        1,084  

Equity securities

     307,851        8,604        1,747       —        7,279        (73     —        325,408  

Capital contributions

     1,976,474        10,446        27,111       —        112,085        (103,292     —        2,022,824  

Beneficiary certificates

     1,458,776        —         30,505       —        34,795        10,022       —        1,534,098  

Loans

     104,505        —         519       —        309,485        (339,648     —        74,861  

Derivative assets

     93,970        —         (34,421     —        71        (3,250     —        56,370  

Other foreign currency financial assets

     41,679        —         1,200       —        —         —        —        42,879  

Others

     144,840        —         5,232       —        5,999        (996     —        155,075  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Sub-total

     4,129,173        19,050        31,899       —        469,714        (437,237     —        4,212,599  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Financial assets at FVTOCI

                   

Equity securities

     557,065        —         —        (7,586     137        (2,087     (23     547,506  

Loans

     —         —         —        —        39,698        —        —        39,698  

Sub-total

     557,065        —         —        (7,586     39,835        (2,087     (23     587,204  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total

     4,686,238        19,050        31,899       (7,586     509,549        (439,324     (23     4,799,803  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Financial liabilities:

                   

Financial liabilities at FVTPL

                   

Derivative liabilities

     9,449        —         7,721       —        71        (8,776     —        8,465  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total

     9,449        —         7,721       —        71        (8,776     —        8,465  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounting to 82,899 million Won for the three- month period ended March 31, 2023, which is from financial assets and liabilities that the Group holds as at the end of the year.

(*2)

The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

 

- 72 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(4)

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

The sensitivity analysis of the financial instruments has been performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity-linked securities beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 5,729,679 million Won and 5,484,098 million Won as of March 31, 2024 and December 31, 2023, respectively, equity instruments of 4,492,401 million Won and 4,704,747 million Won whose carrying amount are considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis.

The sensitivity on fluctuation of input variables by financial instruments as of March 31, 2024 and December 31, 2023 is as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Net income (loss)      Other comprehensive
income (loss)
 
     Favorable      Unfavorable      Favorable      Unfavorable  

Financial assets:

           

Financial assets at FVTPL

           

Derivative assets (*1)

     52        (45      —         —   

Loans (*2)

     241        (238      —         —   

Debt securities (*3)

     636        (640      —         —   

Equity securities (*4) (*5) (*6)

     9,595        (7,901      —         —   

Beneficiary certificates (*6)

     722        (722      —         —   

Others (*4)

     3,857        (3,698      —         —   

Financial assets at FVTOCI

           

Equity securities (*5) (*6) (*7)

     —         —         23,717        (19,459
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     15,103        (13,244      23,717        (19,459
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities:

           

Financial liabilities at FVTPL

           

Derivative liabilities (*1)

     33        (14      —         —   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     33        (14      —         —   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing correlation, which is major unobservable variables, by 10%, respectively.

(*2)

Fair value changes of equity securities are calculated by increasing or decreasing growth rate (0%p~1%p) and discount rate or liquidation value (-1%p~1%p), which are major unobservable variables.

(*3)

Fair value changes of equity securities are calculated by increasing or decreasing stock price volatility, which is major unobservable variables, by 10%,

(*4)

Fair value changes of equity securities are calculated by increasing or decreasing stock price (-10%p~10%p) and volatility (-10%p~10%p), which are major unobservable variables.

(*5)

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

(*6)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.

(*7)

Fair value changes of equity securities are calculated by increasing or decreasing correlation between growth rate and discount rate, which are major unobservable variables.

 

- 73 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     December 31, 2023  
     Net income (loss)     Other comprehensive
income (loss)
 
     Favorable      Unfavorable     Favorable      Unfavorable  

Financial assets:

          

Financial assets at FVTPL

          

Derivative assets (*1)

     88        (95     —         —   

Loans (*2)

     202        (199     —         —   

Debt securities(*3)

     21        (22     —         —   

Equity securities (*2) (*3) (*4)

     11,562        (8,953     —         —   

Beneficiary certificates (*4)

     722        (722     —         —   

Others (*2)

     4,098        (3,921     —         —   

Financial assets at FVTOCI

          

Equity securities (*3) (*4)

     —         —        28,020        (22,302
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     16,693        (13,912     28,020        (22,302
  

 

 

    

 

 

   

 

 

    

 

 

 

Financial liabilities:

          

Financial liabilities at FVTPL

          

Derivative liabilities (*1)

     10        (7     —         —   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     10        (7     —         —   
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(*1)

Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable variables, by 10%.

(*2)

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

(*3)

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

(*4)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.

 

- 74 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(5)

Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Fair value      Carrying
amount
 
     Level 1      Level 2      Level 3      Total  

Financial assets:

              

Securities at amortized cost

     1,859,630        20,939,032        —         22,798,662        23,129,662  

Loans and other financial assets at amortized cost

     —         12,821,093        371,946,345        384,767,438        379,448,788  

Financial liabilities:

              

Deposits due to customers

     —         358,707,834        —         358,707,834        355,053,538  

Borrowings

     —         28,644,950        1,521,722        30,166,672        30,162,465  

Debentures

     —         41,477,602        —         41,477,602        41,695,718  

Other financial liabilities (*)

     —         32,144,582        1,254,463        33,399,045        33,887,430  

 

(*)

Lease liabilities are excluded as of March 31, 2024.

 

     December 31, 2023  
     Fair value      Carrying
amount
 
     Level 1      Level 2      Level 3      Total  

Financial assets:

              

Securities at amortized cost

     2,361,627        21,303,099        —         23,664,726        23,996,172  

Loans and other financial assets at amortized cost

     —         9,905,518        364,211,207        374,116,725        373,148,148  

Financial liabilities:

              

Deposits due to customers

     —         360,186,521        —         360,186,521        357,784,297  

Borrowings

     —         31,065,237        87,342        31,152,579        30,986,746  

Debentures

     —         40,504,019        —         40,504,019        41,239,245  

Other financial liabilities (*)

     —         24,584,447        609,620        25,194,067        25,780,550  

 

(*)

Lease liabilities are excluded as of December 31, 2023.

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

 

    

Valuation methods

  

Input variables

Securities at amortized cost

  

The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread.

  

Risk-free market rate and credit spread

Loans and other financial assets at amortized cost

  

The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.

  

Risk-free market rate, credit spread and prepayment rate

Deposits due to customers, borrowings, debentures and other financial liabilities

  

The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group.

  

Risk-free market rate, credit spread and forward rate

 

- 75 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(6)

Financial instruments by category

Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
Financial assets    Financial assets at
FVTPL
     Financial assets at
FVTOCI
     Financial
assets at
amortized cost
     Derivatives
assets
(designated for
hedging)
     Total  

Deposits

     42,753        —         2,150,620        —         2,193,373  

Securities

     15,012,458        35,885,670        23,129,662        —         74,027,790  

Loans

     910,939        101,531        362,422,232        —         363,434,702  

Derivative assets

     7,180,459        —         —         62,837        7,243,296  

Other financial assets

     45,879        —         14,875,936        —         14,921,815  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     23,192,488        35,987,201        402,578,450        62,837        461,820,976  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     March 31, 2024  
Financial liabilities    Financial liabilities at
FVTPL
     Financial
liabilities
designated to
be measured
at FVTPL
     Financial
liabilities at
amortized cost
     Derivatives
liabilities
(designated for
hedging)
     Total  

Deposits due to customers

     42,886        169,839        355,053,538        —         355,266,263  

Borrowings

     219,218        —         30,162,465        —         30,381,683  

Debentures

     —         —         41,695,718        —         41,695,718  

Derivative liabilities

     7,016,286        —         —         185,554        7,201,840  

Other financial liabilities (*)

     —         —         33,887,430        —         33,887,430  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     7,278,390        169,839        460,799,151        185,554        468,432,934  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Lease liabilities are excluded as of March 31, 2024.

 

     December 31, 2023  
Financial assets    Financial assets at
FVTPL
     Financial assets at
FVTOCI
     Financial
assets at
amortized cost
     Derivatives
assets
(designated for
hedging)
     Total  

Deposits

     39,241        —         1,950,573        —         1,989,814  

Securities

     14,880,479        37,891,495        23,996,172        —         76,768,146  

Loans

     782,716        —         358,577,179        —         359,359,895  

Derivative assets

     5,798,329        —         —         26,708        5,825,037  

Other financial assets

     43,991        —         12,620,396        —         12,664,387  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     21,544,756        37,891,495        397,144,320        26,708        456,607,279  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     December 31, 2023  
Financial liabilities    Financial liabilities at
FVTPL
     Financial
liabilities at
amortized cost
     Derivatives
liabilities
(designated for
hedging)
     Total  

Deposits due to customers

     39,524        357,784,297        —         357,823,821  

Borrowings

     155,765        30,986,746        —         31,142,511  

Debentures

     —         41,239,245        —         41,239,245  

Derivative liabilities

     5,943,024        —         153,007        6,096,031  

Other financial liabilities (*)

     —         25,780,550        —         25,780,550  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     6,138,313        455,790,838        153,007        462,082,158  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Lease liabilities are excluded as of December 31, 2023.

 

- 76 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(7)

Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category during the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Interest income
(expense)
    Fees and
commissions
income
(expense)
     Reversal
(provision) of
credit loss
    Gain or loss on
transactions
and valuation
    Dividends,
etc.
     Total  

Financial instruments at FVTPL

     57,653       611        —        516,052       54,365        628,681  

Financial instruments designated to be measured at FVTPL (*)

     (1,179     —         —        (445     —         (1,624

Financial assets at FVTOCI

     304,500       402        259       20,476       12,417        338,054  

Securities at amortized cost

     174,404       —         528       —        —         174,932  

Loans and other financial assets at amortized cost

     4,932,944       135,630        (363,428     46,119       —         4,751,265  

Financial liabilities at amortized cost

     (3,266,923     37        —        —        —         (3,266,886

Net derivatives (designated for hedging)

     —        —         —        34,414       —         34,414  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     2,201,399       136,680        (362,641     616,616       66,782        2,658,836  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(*)

The amounts recognized in profit or loss and other comprehensive income related to financial liabilities designated to be measured at FVTPL are 446 million Won during the three-month periods ended March 31, 2024.

 

     For the three-month period ended March 31, 2023  
     Interest Income
(expense)
    Fees and
Commissions
Income
(expense)
    Reversal
(provision) of
credit loss
    Gain or loss on
transactions
and valuation
     Dividends,
etc.
     Total  

Financial instruments at FVTPL

     43,975       (9     —        238,498        37,765        320,229  

Financial assets at FVTOCI

     208,248       217       (413     331        11,315        219,698  

Securities at amortized cost

     205,206       —        124       —         —         205,330  

Loans and other financial assets at amortized cost

     4,471,709       144,288       (262,400     64,306        —         4,417,903  

Financial liabilities at amortized cost

     (2,707,657     365       —        —         —         (2,707,292

Net derivatives (designated for hedging)

     —        —        —        41,905        —         41,905  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     2,221,481       144,861       (262,689     345,040        49,080        2,497,773  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

- 77 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

12.

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES

 

(1)

Investments in associates accounted for using the equity method of accounting are as follows:

 

         

Percentage of ownership (%)

             

Joint ventures and associates

  

Main business

  

March 31,

2024

   December 31,
2023
    

Location

   Financial
statements as of
 

Woori Bank

              

W Service Networks Co., Ltd. (*1) (*4)

   Freight & staffing services    4.9      4.9      Korea      2024-02-29  

Korea Credit Bureau Co., Ltd. (*2)

   Credit information    9.9      9.9      Korea      2024-03-31  

Korea Finance Security Co., Ltd. (*2) (*4)

   Security service    15.0      15.0      Korea      2024-02-29  

Wongwang Co., Ltd. (*3)

   Wholesale and real estate    29.0      29.0      Korea      —   

Sejin Construction Co., Ltd. (*3)

   Construction    29.6      29.6      Korea      —   

ARES-TECH Co., Ltd. (*3)

   Electronic component manufacturing    23.4      23.4      Korea      —   

Beomgyo.,Ltd. (*3)

   Telecommunication equipment retail sales    23.1      23.1      Korea      —   

NK Eng Co., Ltd. (*3)

   Manufacturing    23.1      23.1      Korea      —   

K BANK Co., Ltd. (*2) (*4)

   Finance    12.6      12.6      Korea      2024-02-29  

Partner One Value Up I Private Equity Fund

   Other financial services    23.3      23.3      Korea      2024-03-31  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

   Other financial services    20.0      20.0      Korea      2024-03-31  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

   Other financial services    25.0      25.0      Korea      2024-03-31  

LOTTE CARD Co., Ltd. (*4)

   Credit card and installment financing    20.0      20.0      Korea      2023-12-31  

Union Technology Finance Investment Association

   Other financial services    29.7      29.7      Korea      2024-03-31  

Dicustody Co., Ltd.(*2)

   Other information technology and computer operation related services    1.0      1.0      Korea      2024-03-31  

Orient Shipyard Co., Ltd. (*4)

   Manufacture of sections for ships    22.7      22.7      Korea      2024-03-31  

Joongang Network Solution Co.,Ltd. (*4)

   Other information technology and computer operation related services    25.3      25.3      Korea      2023-12-31  

Win Mortgage Co.,LTd. (*1) (*4)

   Other financial services    4.5      4.5      Korea      2023-12-31  

Together-Korea Government Private Pool Private Securities Investment Trust No. 3

   Other financial services    100.0      100.0      Korea      2024-03-31  

BTS 2nd Private Equity Fund

   Other financial services    20.0      20.0      Korea      2024-03-31  

STASSETS FUND III

   Other financial services    28.3      28.3      Korea      2024-03-31  

SF CREDIT PARTNERS, LLC(*2)

   Other financial services    10.0      10.0      Korea      2024-03-31  

Woori Bank (*5)

              

Japanese Hotel Real Estate Private Equity Fund No.2

   Other financial services    19.9      19.9      Korea      2024-03-31  

Woori Seoul Beltway Private Special Asset Fund No.1

   Trust and collective investment    25.0      25.0      Korea      2024-03-31  

 

- 78 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

         

Percentage of ownership (%)

             

Joint ventures and associates

  

Main business

  

March 31,

2024

   December 31,
2023
    

Location

   Financial
statements as of
 

Woori General Private Securities Investment Trust(Bond) No.1 (*7)

   Collective investment business    —       25.0      Korea      —   

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

   Collective investment business    10.8      15.0      Korea      2024-03-31  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

   Collective investment business    8.8      9.1      Korea      2024-03-31  

Woori General Private Securities Investment Trust(Bond) No.2

   Collective investment business    27.3      27.3      Korea      2024-03-31  

Woori Smart General Private Equity Investment Trust 1(bond)

   Collective investment business    28.6      28.6      Korea      2024-03-31  

Woori General Private Securities Investment Trust(Bond) No.3

   Collective investment business    29.3      27.8      Korea      2024-03-31  

Woori Asset Global Partnership Fund No. 5

   Collective investment business    57.7      57.7      Korea      2024-03-31  

Woori Short Term Government and Special Bank Bond Active ETF

   Collective investment business    20.6      20.8      Korea      2024-03-31  

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

   Collective investment business    28.9      29.3      Korea      2024-03-31  

Woori General Private Securities Investment Trust No. 5 (bond) (*11)

   Collective investment business    28.6      —       Korea      2024-03-31  

Woori Big Satisfaction General Private Securities Investment Trust No. 3 (bond) (*11)

   Collective investment business    9.1      —       Korea      2024-03-31  

Woori General Private Securities Investment Trust No. 6 (bond) (*11)

   Collective investment business    28.6      —       Korea      2024-03-31  

Woori Big Satisfaction Corporation MMF No. 1 (Government Bond) (*11)

   Collective investment business    3.4      —       Korea      2024-03-31  

Woori Financial Capital Co., Ltd.

              

WOORI TAERIM 1st Fund

   Other financial services    25.6      25.6      Korea      2024-03-31  

Portone-Cape Fund No.1

   Other financial services    20.0      20.0      Korea      2024-03-31  

DeepDive WOORI 2022-1 Financial Investment Fund (*6)

   Other financial services    11.9      11.9      Korea      2024-03-31  

Darwin Green Packaging Private Equity Fund

   Other financial services    20.4      20.4      Korea      2024-03-31  

Koreawide partners 2nd Private Equity Fund

   Other financial services    26.7      26.7      Korea      2024-03-31  

Woori Investment Bank Co., Ltd.

              

Woori FirstValue Private Real Estate Fund No.2

   Real estate business    12.0      12.0      Korea      2024-03-31  

WooriG Real Infrastructure Blind General Type Private Placement Investment Trust (*7)

   Investment trust and discretionary investment business    —       0.1      Korea      —   

Woori Asset Management Co. Ltd.

              

Woori Together TDF 2025(*11)

   Collective investment business    28.9      —       Korea      2024-03-31  

Woori Together TDF 2030

   Collective investment business    27.3      28.0      Korea      2024-03-31  

Woori Together OCIO Target Return Feeder fund (Balance Bond) (*7)

   Collective investment business    —       20.4      Korea      —   

 

- 79 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

         

Percentage of ownership (%)

             

Joint ventures and associates

  

Main business

  

March 31,

2024

   December 31,
2023
    

Location

   Financial
statements as of
 

Woori Private Equity Asset Management Co., Ltd.

              

Australia Green Energy 1st PEF(*2)

   Other financial services    4.0      4.0      Korea      2024-03-31  

Aarden Woori Apparel 1st Private Equity Fund (*2)

   Other financial services    0.5      0.5      Korea      2024-03-31  

Woori Dyno 1st Private Equity Fund (*2)

   Other financial services    19.6      19.6      Korea      2024-03-31  
              

Woori Venture Partners Co., Ltd.

              

KTB-KORUS FUND(*8)

   Asset Management    37.5      37.5      Korea      2024-03-31  

KTB China Platform Fund(*10)

   Asset Management    18.7      18.7      Korea      2024-03-31  

KTBN Venture Fund No.7(*9)

   Asset Management    20.1      20.1      Korea      2024-03-31  

KTBN Venture Fund No.8(*9)

   Asset Management    21.7      21.7      Korea      2024-03-31  

KTBN Digital Contents Korea Fund No.9(*9)

   Asset Management    30.0      30.0      Korea      2024-03-31  

KTBN Media Contents Fund(*10)

   Asset Management    15.0      15.0      Korea      2024-03-31  

KTB China Synergy Fund(*10)

   Asset Management    15.1      15.1      Korea      2024-03-31  

NAVER-KTB Audio Contents Fund(*10)

   Asset Management    1.0      1.0      Korea      2024-03-31  

KTBN Venture Fund No.13(*10)

   Asset Management    19.6      19.6      Korea      2024-03-31  

KTBN Future Contents Fund(*10)

   Asset Management    13.3      13.3      Korea      2024-03-31  

KTBN Venture Fund No.16(*10)

   Asset Management    10.3      10.3      Korea      2024-03-31  

KTBN Venture Fund No.18(*10)

   Asset Management    10.1      10.1      Korea      2024-03-31  

KB-KTB Technology Venture Fund(*10)

   Asset Management    18.2      18.2      Korea      2024-03-31  

Woori 2022 Scaleup Venture Fund

   Asset Management    20.0      20.0      Korea      2024-03-31  

Woori 2022 Start-up Venture Fund

   Asset Management    30.1      30.1      Korea      2024-03-31  

KTB-NHN China Private Equity Fund(*8)

   Asset Management    33.3      33.3      Korea      2024-03-31  

KTBN GI Private Equity Fund(*10)

   Asset Management    5.0      5.0      Korea      2024-03-31  

Chirochem

   Medical material Manufacturing    28.6      28.6      Korea      2024-03-31  

Daishin Balance No.18 Special Purpose Acquisition Company (*11)

   Other financial services    49.6      —       Korea      2024-03-31  

Japanese Hotel Real Estate Private Equity Fund 1

              

Godo Kaisha Oceanos 1 (*4)

   Other financial services    47.8      47.8      Japan      2024-01-31  

Woori Japan Private Placement Real Estate Master Investment Trust No.2

              

Woori Zip 1(*4)

   Other financial services    62.4      62.4      Japan      2023-12-31  

Woori Zip 2 (*4)

   Other financial services    62.7      62.8      Japan      2023-12-31  

Woori bank and Woori card Co., Ltd. (*5)

              

Dongwoo C & C Co., Ltd. (*3)

   Construction    24.5      24.5      Korea      —   

SJCO Co., Ltd. (*3)

   Aggregate transportation and wholesale    28.7      29.8      Korea      —   

 

- 80 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

         

Percentage of ownership (%)

             

Joint ventures and associates

  

Main business

  

March 31,

2024

   December 31,
2023
    

Location

   Financial
statements as of
 

G2 Collection Co., Ltd. (*3)

   Wholesale and retail sales    29.2      29.2      Korea      —   

KG Fashion Co., Ltd.(*4)

   Manufacturing    20.8      20.8      Korea      2024-02-29  

Kyesan Engineering Co., Ltd. (*3)

   Construction    23.3      23.3      Korea      —   

Good Software Lap Co., Ltd. (*3)

   Service    29.4      29.4      Korea      —   

DAEA SNC Co., Ltd. (*3)

   Wholesale and retail sales    25.5      25.5      Korea      —   

PREXCO Co., Ltd. (*3)

   Manufacturing    28.1      28.1      Korea      —   

JiWon Plating Co., Ltd. (*3)

   Plating    20.8      20.8      Korea      —   

Youngdong Sea Food Co., Ltd. (*3)

   Processed sea food manufacturing    24.5      24.5      Korea      —   

KUM HWA Co., Ltd.

   Telecommunication equipment retail sales    20.1      20.1      Korea      2024-03-31  

Jinmyung Plus Co., Ltd.(*4)

   Manufacturing    21.3      21.3      Korea      2023-12-31  

Rea Company (*4)

   Other financial services    26.1      24.5      Korea      2023-12-31  

ARAM CMC Co.,Ltd. (*4)

   Other financial services    20.1      20.0      Korea      2024-02-29  

Woori bank and Woori Financial Capital Co., Ltd. (*5)

              

JC Assurance No.2 Private Equity Fund

   Other financial services    23.4      23.5      Korea      2024-03-31  

Dream Company Growth no.1 PEF

   Other financial services    0.0      27.8      Korea      2024-03-31  

HMS-Oriens 1st Fund

   Other financial services    22.8      22.8           2024-03-31  

Woori Senior Loan Private Placement Investment Trust No.1

   Collective investment business    21.6      21.7      Korea      2024-03-31  

Genesis Eco No.1 Private Equity Fund

   Other financial services    29.0      29.0      Korea      2024-03-31  

Paratus Woori Material Component Equipment joint venture company

   Other financial services    29.9      29.9      Korea      2024-03-31  

Midas No. 8 Private Equity Joint Venture Company

   Other financial services    28.5      28.5      Korea      2024-03-31  

Orchestra Private Equity Fund IV

   Other financial services    28.2      28.2      Korea      2024-03-31  

Synaptic Green No.1 PEF

   Other financial services    21.1      21.1      Korea      2024-03-31  

IGEN2023No. 1 Private Equity Fund

   Other financial services    24.8      24.8      Korea      2024-03-31  

PCC-Woori LP Secondary Fund

   Other financial services    38.9      38.9      Korea      2024-03-31  

Synaptic Future Growth Private Equity Fund 1

   Other financial investment    23.8      23.8      Korea      2024-03-31  

Woori Bank and Woori Asset Management Co. Ltd.(*5)

              

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

   Collective investment business    13.5      14.1      Korea      2024-03-31  

Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks) (*11)

   Collective investment business    24.2      —       Korea      2024-03-31  

Woori Investment Bank Co., Ltd. and Woori Asset Trust Co., Ltd. (*5)

              

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2 (*11)

   Collective investment business    2.1      —            2024-03-31  

 

- 81 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

         

Percentage of ownership (%)

             

Joint ventures and associates

  

Main business

  

March 31,

2024

   December 31,
2023
    

Location

   Financial
statements as of
 

Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*5)

              

Woori-Q Corporate Restructuring Private Equity Fund(*12)

   Other financial services    32.4      32.4      Korea      2024-03-31  

Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (*5)

              

Woori-Shinyoung Growth-Cap Private Equity Fund I

   Other financial services    35.0      35.0      Korea      2024-03-31  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

   Other financial services    32.7      32.7      Korea      2024-03-31  

 

(*1)

Most of the significant business transactions of associates are with the Group as of March 31, 2024 and December 31, 2023.

(*2)

The Group can participate in decision-making body and exercise significant influence over financial policies and operational policies decision making of the associates.

(*3)

There is no investment balance as of March 31, 2024 and December 31, 2023.

(*4)

The equity method was applied using the most recent financial statements available from the settlement date because no financial statements were available at the end of the reporting period and the significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the subsidiary were duly reflected.

(*5)

Two or more subsidiaries may invest or operate to exert significant influence on the decision-making process for activities related to the investee.

(*6)

The Group can participate as a co-operator to exert significant influence.

(*7)

It was excluded from associates in current period.

(*8)

It has been liquidating as of March 31, 2024.

(*9)

It was excluded from associates during the period.

(*10)

The Group classified it as an associate because it has significant influence as a general partner of the investment association.

(*11)

It was added to associates in current period.

(*12)

It was classified as an associate due to holding of voting rights according to the initial investment agreement ratio.

 

- 82 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(2)

Changes in the carrying value of investments in associates accounted for using the equity method of accounting are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Acquisition
cost
     January 1,
2024
     Share of
profits(losses)
and others
    Acquisition      Disposal/
Reclassification
    Dividends     Change in
capital
    March 31,
2024
 

W Service Networks Co., Ltd.

     108        216        (44     —         —        (5     —        167  

Korea Credit Bureau Co., Ltd.

     3,313        6,433        679       —         —        (90     —        7,022  

Korea Finance Security Co., Ltd.

     3,267        3,285        145       —         —        —        —        3,430  

K BANK Co., Ltd.

     236,232        260,052        (1,577     —         —        —        975       259,450  

Partner One Value Up I Private Equity Fund

     5,039        3,230        54       —         —        —        —        3,284  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     3,816        8,247        101       —         (540     —        —        7,808  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     4,436        4,437        —        —         —        —        —        4,437  

LOTTE CARD Co.,Ltd.

     346,810        587,392        444       —         —        (15,591     (9,983     562,262  

Union Technology Finance Investment Association

     13,449        12,270        (307     —         —        —        —        11,963  

Dicustody Co., Ltd.

     1        1        —        —         —        —        —        1  

Orient Shipyard Co., Ltd.(*)

     —         —         —        —         —        —        —        —   

Joongang Network Solution Co.,Ltd.

     —         88        83       —         —        —        (87     84  

Win Mortgage Co.,LTd.

     23        105        (16     —         —        (2     —        87  

Together-Korea Government Private Pool Private Securities Investment Trust No.3

     10,000        10,540        77       —         —        —        —        10,617  

BTS 2nd Private Equity Fund

     7,026        4,838        56       1,800        —        —        —        6,694  

STASSETS FUND III

     9,000        8,406        (76     —         —        —        —        8,330  

SF CREDIT PARTNERS, LLC

     13,059        12,845        344       —         —        —        553       13,742  

Rea Company

     —         —         —        —         —        —        —        —   

ARAM CMC Co.,Ltd.

     —         —         —        —         —        —        —        —   

Japanese Hotel Real Estate Private Equity Fund No.2

     3,174        2,688        4       —         —        (13     (68     2,611  

Woori Seoul Beltway Private Special Asset Fund No.1

     13,427        12,590        133       965        —        (129     —        13,559  

Woori General Private Securities Investment Trust(Bond) No.1

     50,000        51,686        586       —         (50,102     (2,170     —        —   

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

     100,000        105,564        (755     —         —        (4,202     —        100,607  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

     10,000        10,330        102       —         —        (429     —        10,003  

Woori General Private Securities Investment Trust(Bond) No.2

     30,000        30,829        370       —         —        —        —        31,199  

Woori Smart General Private Equity Investment Trust 1(bond)

     40,000        41,135        527       —         —        —        —        41,662  

Woori General Private Securities Investment Trust(Bond) No.3

     28,988        51,205        341       —         (21,510     —        —        30,036  

Woori Asset Global Partnership Fund No.5

     22,500        22,071        248       —         —        —        —        22,319  

WOORI TAERIM 1st Fund

     1,100        988        —        —         —        —        —        988  

Portone-Cape Fund No.1

     340        445        (256     —         —        —        —        189  

DeepDive WOORI 2021-1 Financial Investment Fund

     126        1,236        (463     —         (96     (266     —        411  

Darwin Green Packaging Private Equity Fund

     4,000        3,957        (15     —         —        —        —        3,942  

Koreawide partners 2nd Private Equity Fund

     20,000        19,235        —        —         —        —        —        19,235  

Woori FirstValue Private Real Estate Fund No.2

     9,000        560        2       —         —        —        —        562  

WooriG Real Infrastructure Blind General Type Private Placement Investment Trust

     —         55        —        —         (55     —        —        —   

Woori Together TDF 2025

     3,000        —         97       —         3,245       —        —        3,342  

Woori Together TDF 2030

     3,000        3,324        128       —         —        —        —        3,452  

Woori Together OCIO Target Return Feeder fund (Balance Bond)

     —         10,376        298       —         (10,674     —        —        —   

 

- 83 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     For the three-month period ended March 31, 2024  
     Acquisition
cost
     January 1,
2024
     Share of
profits(losses)
and others
    Acquisition      Disposal/
Reclassification
    Dividends     Change in
capital
    March 31,
2024
 

Australia Green Energy 1st PEF

     4,913        4,811        (9     —         —        —        —        4,802  

Aarden Woori Apparel 1st Private Equity Fund

     100        133        (38     —         —        —        —        95  

Woori Dyno 1st Private Equity Fund

     2,000        2,358        (6     —         —        —        —        2,352  

KTB-KORUS FUND

     3,626        3,359        —        —         —        —        —        3,359  

KTB China Platform Fund

     17,023        16,059        441       —         —        —        —        16,500  

KTBN Venture Fund No.7

     16,972        16,044        (1     —         —        (1,633     —        14,410  

KTBN Venture Fund No.8

     3,325        2,511        (193     —         —        (569     —        1,749  

KTBN Digital Contents Korea Fund No.9

     5,329        5,597        70       —         —        —        —        5,667  

KTBN Media Contents Fund

     330        283        1       —         —        —        —        284  

KTB China Synergy Fund

     21,629        20,405        (701     —         —        (3,296     —        16,408  

NAVER-KTB Audio Contents Fund

     284        288        —        —         —        —        —        288  

KTBN Venture Fund No.13

     13,279        14,158        (26     —         —        (1,801     —        12,331  

KTBN Future Contents Fund

     3,892        4,561        (14     —         —        —        —        4,547  

KTBN Venture Fund No.16

     17,546        18,561        (185     —         —        —        —        18,376  

KTBN Venture Fund No.18

     26,308        26,970        (89     —         —        —        —        26,881  

KB-KTB Technology Venture Fund

     7,755        7,600        (26     —         —        —        —        7,574  

WOORI 2022 Scaleup Venture Fund

     14,000        13,578        (113     —         —        —        —        13,465  

WOORI 2022 Start-up Venture Fund

     7,804        2,433        (44     5,240        —        —        —        7,629  

KTB-NHN China Private Equity Fund

     1,272        3        (1     —         —        —        —        2  

KTBN GI Private Equity Fund

     189        617        233       —         —        —        30       880  

Chirochem

     102        102        —        —         —        —        —        102  

Daishin Balance No.18 Special Purpose Acquisition Company

     700        —         (3     700        —        —        122       819  

Godo Kaisha Oceanos 1

     10,800        7,978        —        —         —        —        (26     7,952  

Woori Zip 1

     8,566        7,629        (3     —         (134     —        (197     7,295  

Woori Zip 2

     11,841        10,695        (6     —         (234     —        (274     10,181  

KG Fashion Co., Ltd.(*)

     —         —         —        —         —        —        —        —   

KUM HWA Co., Ltd. (*)

     —         —         —        —         —        —        —        —   

Jinmyung Plus Co., Ltd.

     —         14        2       —         —        —        —        16  

JC Assurance No.2 Private Equity Fund

     29,349        —         —        —         —        —        —        —   

Dream Company Growth no.1 PEF

     —         7,809        (300     —         (7,509     —        —        —   

HMS-Oriens 1st Fund

     12,000        14,030        210       —         —        —        —        14,240  

Woori Senior Loan Private Placement Investment Trust No.1

     61,741        75,590        347       —         (12,653     (916     —        62,368  

Genesis Eco No.1 Private Equity Fund

     12,000        10,942        174       —         —        —        —        11,116  

Paratus Woori Material Component Equipment joint venture company

     17,700        16,979        (65     —         —        —        —        16,914  

Midas No. 8 Private Equity Joint Venture Company

     18,537        18,465        (62     —         —        —        —        18,403  

Orchestra Private Equity Fund IV

     9,700        9,555        161       —         —        —        —        9,716  

Synaptic Green No.1 PEF

     8,000        7,611        —        —         —        —        —        7,611  

IGEN2022No. 1 Private Equity Fund

     7,422        7,983        260       —         —        (151     —        8,092  

PCC-Woori LP Secondary Fund

     10,435        10,530        (96     —         —        —        —        10,434  

Synaptic Future Growth Private Equity Fund

     7,359        7,069        504       64        —        —        —        7,637  

Woori-Q Corporate Restructuring Private Equity Fund

     17,441        20,283        (68     —         —        —        —        20,215  

Woori-Shinyoung Growth-Cap Private Equity Fund I

     17,018        33,481        (3,795     —         —        —        —        29,686  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

     34,006        32,987        4,500       —         —        —        —        37,487  

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

     3,200        2,543        (281     1,000        229       —        —        3,491  

 

- 84 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     For the three-month period ended March 31, 2024  
     Acquisition
cost
     January 1,
2024
     Share of
profits(losses)
and others
     Acquisition      Disposal/
Reclassification
     Dividends     Change in
capital
    March 31,
2024
 

Woori Short Term Government and Special Bank Bond Active ETF

     12,008        12,286        118        —         —         —        —        12,404  

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

     29,001        29,821        439        —         —         —        —        30,260  
                   

 

 

   

Woori General Private Securities Investment Trust No. 5 (bond)

     60,000        —         564        60,000        —         —        —        60,564  
                   

 

 

   

Woori Big Satisfaction General Private Securities Investment Trust No. 3 (bond)

     10,000        —         58        10,000        —         —        —        10,058  
                   

 

 

   

Woori General Private Securities Investment Trust No. 6 (bond)

     40,000        —         153        40,000        —         —        —        40,153  
                   

 

 

   

Woori Big Satisfaction Corporation MMF No. 1 (Government Bond)

     202,701        —         1,996        —         203,695        —        —        205,691  
                   

 

 

   

Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks)

     2,000        —         52        2,000        —         —        —        2,052  
                   

 

 

   

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2

     2,004        —         17        511        1,484        (3     —        2,009  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 
     1,817,441        1,795,370        5,485        122,280        105,146        (31,266     (8,955     1,988,060  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

(*)

The amount for which no loss was recognized for associates due to discontinuation of the equity method was 7 million Won for Orient Shipyard Co.,Ltd., 9 million Won in KG FASHION CO., LTD., 101 million Won in Rea Company, 12 million Won in ARAM CMC Co.,Ltd. and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 35 million Won for Orient Shipyard Co.,Ltd., 129 million Won in KG FASHION CO., LTD., 101 million Won in Rea Company, 12 million Won in ARAM CMC Co.,Ltd.

 

     For the three-month period ended March 31, 2023  
     Acquisition
cost
     January 1,
2023
     Share of
profits(losses)
and others
    Acquisition      Business
combination
     Disposal/
Reclassification
    Dividends     Change in
capital
    March 31,
2023
 

W Service Networks Co., Ltd.

     108        208        (29     —         —         —        —        —        179  

Korea Credit Bureau Co., Ltd.

     3,313        5,709        466       —         —         —        (90     —        6,085  

Korea Finance Security Co., Ltd.

     3,267        2,374        (89     —         —         —        —        1,011       3,296  

Woori Growth Partnerships New Technology Private Equity Fund

     12,942        10,889        (41     —         —         —        —        —        10,848  

2016KIF-IMM Woori Bank Technology Venture Fund

     7,594        9,474        539       —         —         —        —        —        10,013  

K BANK Co., Ltd.

     236,232        247,789        255       —         —         —        —        2,309       250,353  

Woori Bank-Company K Korea Movie Asset Fund

     —         239        22       —         —         —        —        —        261  

Partner One Value Up I Private Equity Fund

     5,039        4,278        (655     —         —         —        —        —        3,623  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     7,556        10,285        158       —         —         —        —        —        10,443  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     4,354        4,355        —        —         —         —        —        —        4,355  

LOTTE CARD Co.,Ltd.

     346,810        514,131        1,448       —         —         —        (13,199     (1,228     501,152  

Force TEC Co., Ltd. (*)

     —         —         —        —         —         —        —        —        —   

Together-Korea Government Private Pool Private Securities Investment Trust No. 3

     10,000        10,243        68       —         —         —        —        —        10,311  

Union Technology Finance Investment Association

     13,449        14,462        (176     —         —         (1,189     —        —        13,097  

 

- 85 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     For the three-month period ended March 31, 2023  
     Acquisition
cost
     January 1,
2023
     Share of
profits(losses)
and others
    Acquisition      Business
combination
     Disposal/
Reclassification
    Dividends     Change in
capital
     March 31,
2023
 

KUM HWA Co., Ltd. (*)

     —         —         —        —         —         —        —        —         —   

Dicustody Co., Ltd.

     1        1        —        —         —         —        —        —         1  

Jinmyung Plus Co., Ltd.

     —         10        4       —         —         —        —        —         14  

Orient Shipyard Co., Ltd.

     —         —         —        —         —         —        —        —         —   

BTS 2nd Private Equity Fund

     4,156        2,881        (58     1,130        —         —        —        —         3,953  

Central Network Solutions Co., Ltd.

     —         —         —        —         —         —        —        —         —   

STASSETS FUND III

     1,500        1,230        (78     —         —         —        —        —         1,152  

KG Fashion Co.,Ltd.

     —         —         —        —         —         —        —        —         —   

Win Mortgage Co.Ltd.

     23        —         69       23        —         —        —        —         92  

Woori-Q Corporate Restructuring Private Equity Fund

     27,063        27,536        1,319       —         —         —        —        —         28,855  

Aarden Woori Apparel 1st Private Equity Fund

     100        97        36       —         —         —        —        —         133  

Woori Dyno 1st Private Equity Fund

     2,000        1,994        (3     —         —         —        —        —         1,991  

Australia Green Energy 1st PEF

     4,913        4,858        (12     —         —         —        —        —         4,846  

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

     1,200        1,074        62       —         —         —        —        —         1,136  

Woori Together TDF 2030

     2,000        2,033        72       —         —         —        —        —         2,105  

Woori Together TDF 2025

     2,000        1,990        67       —         —         —        —        —         2,057  

WOORI Star50 feeder fund(H)

     200        126        14       —         —         —        —        —         140  

Portone-Cape Fund No.1

     340        464        70       —         —         —        —        —         534  

WOORI TAERIM 1st Fund

     1,100        988        —        —         —         —        —        —         988  

KIWOOM WOORI Financial 1st Investment Fund

     1,000        953        (5     —         —         —        —        —         948  

DeepDive WOORI 2021-1 Financial Investment Fund

     900        878        (5     —         —         —        —        —         873  

PCC-Woori LP Secondary Fund

     10,435        12,984        124       —         —         (4     —        —         13,104  

DS Power Semicon Private Equity Fund

     3,000        2,976        220       —         —         —        (218     —         2,978  

Koreawide partners 2nd Private Equity Fund

     20,000        20,000        (28     —         —         —        —        —         19,972  

Darwin Green Packaging Private Equity Fund

     4,000        3,945        (17     —         —         —        —        —         3,928  

Japanese Hotel Real Estate Private Equity Fund 2

     3,174        2,855        (2     —         —         —        (40     83        2,896  

Woori Seoul Beltway Private Special Asset Fund No.1

     10,640        9,874        96       849        —         —        (91     —         10,728  

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

     110,000        112,025        3,337       —         —         —        (3,779     —         111,583  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

     10,000        10,182        188       —         —         —        (359     —         10,011  

Woori FirstValue Private Real Estate Fund No.2

     9,000        558        (1     —         —         —        —        —         557  

WooriG Real Infrastructure Blind General Type Private Placement Investment Trust

     100        102        (1     —         —         (5     —        —         96  

 

- 86 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     For the three-month period ended March 31, 2023  
     Acquisition
cost
     January 1,
2023
     Share of
profits(losses)
and others
    Acquisition      Business
combination
     Disposal/
Reclassification
    Dividends     Change in
capital
    March 31,
2023
 

JC Assurance No.2 Private Equity Fund

     19,141        —         —        —         —         —        —        —        —   

Dream Company Growth no.1 PEF

     7,412        7,861        (12     —         —         —        —        —        7,849  

HMS-Oriens 1st Fund

     12,000        13,252        191       —         —         —        —        —        13,443  

Woori G Senior Loan Private Placement Investment Trust No.1

     78,843        81,861        920       —         —         (866     (920     —        80,995  

Genesis Eco No.1 Private Equity Fund

     12,000        11,216        (89     —         —         —        —        —        11,127  

Paratus Woori Material Component Equipment joint venture company

     30,000        17,250        (65     —         —         —        —        —        17,185  

Midas No. 8 Private Equity Joint Venture

     18,735        18,713        (58     —         —         —        —        —        18,655  

CompanyOrchestra Private Equity Fund IV

     9,878        9,698        (37     —         —         —        —        —        9,661  

Synaptic Green No.1 PEF

     8,000        7,793        (36     —         —         —        —        —        7,757  

Woori-Shinyoung Growth-Cap Private Equity Fund I

     43,089        43,274        (1,229     —         —         —        —        (77     41,968  

IGEN2022No. 1 Private Equity Fund

     8,000        8,010        (35     —         —         —        —        —        7,975  

Woori General Private Securities Investment Trust(Bond)

     50,000        —         201       50,000        —         —        —        —        50,201  

KTB-KORUS FUND

     3,626        —         —        —         3,626        —        —        —        3,626  

KTB China Platform Fund

     17,023        —         —        —         17,023        —        —        —        17,023  

KTBN Venture Fund No.7

     16,972        —         —        —         16,972        —        —        —        16,972  

KTBN Venture Fund No.8

     3,325        —         —        —         3,325        —        —        —        3,325  

KTBN Digital Contents Korea Fund No.9

     5,329        —         —        —         5,329        —        —        —        5,329  

KTBN Media Contents Fund

     330        —         —        —         330        —        —        —        330  

KTB China Synergy Fund

     21,629        —         —        —         21,629        —        —        —        21,629  

NAVER-KTB Audio Contents Fund

     284        —         —        —         284        —        —        —        284  

KTBN Venture Fund No.13

     13,279        —         —        —         13,279        —        —        —        13,279  

KTBN Future Contents Fund

     3,892        —         —        —         3,892        —        —        —        3,892  

KTBN Venture Fund No.16

     17,546        —         —        —         17,546        —        —        —        17,546  

KTBN Venture Fund No.18

     23,458        —         —        —         23,458        —        —        —        23,458  

KB-KTB Technology Venture Fund

     5,755        —         —        —         5,755        —        —        —        5,755  

DAOL 2022 Scaleup Venture Fund

     355        —         —        —         355        —        —        —        355  

DAOL 2022 Start-up Venture Fund

     2,564        —         —        —         2,564        —        —        —        2,564  

KTB-NHN China Private Equity Fund

     1,272        —         —        —         1,272        —        —        —        1,272  

KTBN GI Private Equity Fund

     189        —         —        —         189        —        —        —        189  

Chirochem

     102        —         —        —         102        —        —        —        102  

Woori Zip 1

     9,131        8,690        (60     —         —         (123     —        255       8,762  

Woori Zip 2

     12,681        12,180        (21     —         —         (247     —        356       12,268  

Godo Kaisha Oceanos 1

     10,800        8,788        28       —         —         —        (236     —        8,580  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     1,346,149        1,305,636        7,132       52,002        136,930        (2,434     (18,932     2,709       1,483,043  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

(*)

POSTECH shares, which did not recognize a loss of 50 million Won due to the discontinuation of the equity method during the current period, were disposed of. As a result of discontinuation of the equity method, related companies’ losses amount not recognized is 2 million Won for KUM HWA Co., Ltd. and cumulated amount is 3,473 million Won for Orient Shipyard Co., Ltd. and 4 million Won for KUM HWA Co., Ltd.

 

- 87 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

Summary financial information relating to investments in associates accounted for using the equity method of accounting is as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Assets      Liabilities      Operating
revenue
     Net
income
(loss)
    Other
comprehensive
income(loss)
    Total
comprehensive
income(loss)
 

W Service Networks Co., Ltd.

     6,179        2,675        3,223        1       —        1  

Korea Credit Bureau Co., Ltd.

     127,442        59,088        41,506        6,629       —        6,629  

Korea Finance Security Co., Ltd.

     35,195        12,328        8,323        458       —        458  

K BANK Co., Ltd.

     23,971,875        22,081,085        167,991        24,504       (593     23,911  

Partner One Value Up I Private Equity Fund

     14,412        291        234        234       —        234  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     39,177        142        648        506       —        506  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     15,659        99        —         (94     —        (94

LOTTE CARD Co.,Ltd.(*1)

     22,545,240        19,454,428        2,546,444        364,452       (69,803     294,649  

Union Technology Finance Investment Association

     40,278        —         5        5       —        5  

Dicustody Co., Ltd.

     92        —         —         —        —        —   

Orient Shipyard Co., Ltd.(*)

     7,078        23,626        —         (23     —        (23

Joongang Network Solution Co.,Ltd.

     1,433        2,758        7,889        332       —        332  

Win Mortgage Co.,LTd.

     3,375        1,389        12,740        42       —        42  

Together-Korea Government Private Pool Private Securities Investment Trust No.3

     10,620        1        306        300       —        300  

BTS 2nd Private Equity Fund

     33,750        278        —         (395     —        (395

STASSETS FUND III

     29,711        279        8        (267     —        (267

SF CREDIT PARTNERS, LLC

     158,313        26,186        10,366        4,467       5,531       9,998  

Rea Company

     1,733        1,257        1,000        (1,107     —        (1,107

ARAM CMC Co.,Ltd.

     758        635        296        4       —        4  

Japanese Hotel Real Estate Private Equity Fund No.2

     13,156        12        9        2       (342     (340

Woori Seoul Beltway Private Special Asset Fund No.1

     54,237        2        549        534       —        534  

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

     1,076,489        141,985        11,263        10,111       —        10,111  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

     114,111        7        1,158        1,126       —        1,126  

Woori General Private Securities Investment Trust(Bond) No.2

     224,957        110,560        2,369        1,357       —        1,357  

Woori Smart General Private Equity Investment Trust 1(bond)

     290,892        145,074        3,171        1,844       —        1,844  

Woori General Private Securities Investment Trust(Bond) No.3

     300,736        198,186        3,865        1,613       —        1,613  

Woori Asset Global Partnership Fund No.5

     39,230        545        961        430       —        430  

WOORI TAERIM 1st Fund

     4,045        183        —         —        —        —   

Portone-Cape Fund No.1

     1,070        125        —         (25     —        (25

DeepDive WOORI 2021-1 Financial Investment Fund

     3,467        12        2,562        (3,686     —        (3,686

Darwin Green Packaging Private Equity Fund

     19,317        —         —         (73     —        (73

Koreawide partners 2nd Private Equity Fund

     75,033        2,901        —         —        —        —   

Woori FirstValue Private Real Estate Fund No.2

     67,037        62,357        15        14       —        14  

Woori Together TDF 2025

     11,575        7        363        363       —        363  

Woori Together TDF 2030

     12,673        17        490        489       —        489  

Australia Green Energy 1st PEF

     121,206        13        183        (237     —        (237

Aarden Woori Apparel 1st Private Equity Fund

     20,332        95        —         (7,893     —        (7,893

Woori Dyno 1st Private Equity Fund

     12,039        42        52        11       —        11  

KTB-KORUS FUND

     8,957        —         —         —        —        —   

KTB China Platform Fund

     88,257        1        2,910        2,360       —        2,360  

KTBN Venture Fund No.7

     71,734        —         3,663        (7     —        (7

KTBN Venture Fund No.8

     8,282        239        30        (891     —        (891

KTBN Digital Contents Korea Fund No.9

     20,503        1,613        249        232       —        232  

KTBN Media Contents Fund

     1,896        —         9        9       —        9  

 

- 88 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     March 31, 2024  
     Assets      Liabilities      Operating
revenue
    Net
income
(loss)
    Other
comprehensive
income(loss)
     Total
comprehensive
income(loss)
 

KTB China Synergy Fund

     118,109        9,157        213       (4,653     —         (4,653

NAVER-KTB Audio Contents Fund

     29,411        647        —        (3     —         (3

KTBN Venture Fund No.13

     63,054        167        229       (136     —         (136

KTBN Future Contents Fund

     34,216        115        7       (109     —         (109

KTBN Venture Fund No.16

     179,578        415        3,981       (1,812     —         (1,812

KTBN Venture Fund No.18

     265,676        636        481       (871     —         (871

KB-KTB Technology Venture Fund

     41,839        180        40       (142     —         (142

WOORI 2022 Scaleup Venture Fund

     68,043        806        244       (562     —         (562

WOORI 2022 Start-up Venture Fund

     25,490        155        9       (146     —         (146

KTB-NHN China Private Equity Fund

     11        4        —        (2     —         (2

KTBN GI Private Equity Fund

     17,631        41        —        4,635       609        5,244  

Chirochem

     732        375        1,054       —        —         —   

Daishin Balance No.18 Special Purpose Acquisition Company

     2,397        748        —        (6     246        240  

Godo Kaisha Oceanos 1

     61,672        45,038        652       1       —         1  

Woori Zip 1

     43,070        30,896        504       (29     —         (29

Woori Zip 2

     60,705        43,857        749       14       —         14  

KG Fashion Co., Ltd.

     2,373        2,877        128       (51     —         (51

KUM HWA Co., Ltd.

     4        167        —        —        —         —   

Jinmyung Plus Co., Ltd.

     494        422        177       5       —         5  

JC Assurance No.2 Private Equity Fund

     121,562        587        —        —        —         —   

Dream Company Growth no.1 PEF

     74        70        763       694       —         694  

HMS-Oriens 1st Fund

     62,422        4        —        921       —         921  

Woori Senior Loan Private Placement Investment Trust No.1

     288,098        18        3,848       3,630       —         3,630  

Genesis Eco No.1 Private Equity Fund

     38,662        310        —        (317     —         (317

Paratus Woori Material Component Equipment joint venture company

     58,295        1,725        —        (218     —         (218

Midas No. 8 Private Equity Joint Venture Company

     64,839        235        18       (217     —         (217

Orchestra Private Equity Fund IV

     34,495        4        700       571       —         571  

Synaptic Green No.1 PEF

     36,151        3        1       (172     —         (172

IGEN2022No. 1 Private Equity Fund

     32,579        10        1,055       1,045       —         1,045  

PCC-Woori LP Secondary Fund

     27,027        169        3       (171     —         (171

Synaptic Future Growth Private Equity Fund

     32,205        63        —        (41     —         (41

Woori-Q Corporate Restructuring Private Equity Fund

     63,554        908        42       (410     —         (410

Woori-Shinyoung Growth-Cap Private Equity Fund I

     86,708        1,820        (10,541     (10,855     —         (10,855

NH Woori Newdeal Growth Alpha Private Equity Fund 1

     116,192        1,588        —        (5     —         (5

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

     26,507        572        1,015       1,015       —         1,015  

Woori Short Term Government and Special Bank Bond Active ETF

     60,168        11        607       566       —         566  

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

     126,276        21,722        1,761       1,539       —         1,539  

Woori General Private Securities Investment Trust No. 5 (bond)

     316,941        104,965        2,205       1,975       —         1,975  

Woori Big Satisfaction General Private Securities Investment Trust No. 3 (bond)

     145,064        34,425        725       640       —         640  

Woori General Private Securities Investment Trust No. 6 (bond)

     174,853        34,318        573       536       —         536  

Woori Big Satisfaction Corporation MMF No. 1 (Government Bond)

     6,274,489        150,107        57,726       57,464       —         57,464  

Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks)

     8,534        —         237       237       —         237  

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2

     95,321        —         739       739       —         739  

 

- 89 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(*1)

The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

 

     December 31, 2023  
     Assets      Liabilities      Operating
revenue
    Net
income
(loss)
    Other
comprehensive
income(loss)
    Total
comprehensive
income(loss)
 

W Service Networks Co., Ltd.

     6,887        2,496        19,350       1,069       —        1,069  

Korea Credit Bureau Co., Ltd.

     131,164        68,756        163,707       8,012       —        8,012  

Korea Finance Security Co., Ltd.

     36,185        14,287        44,709       (464     6,730       6,266  

K BANK Co., Ltd.

     20,799,599        18,903,298        826,894       49,853       47,885       97,738  

Partner One Value Up I Private Equity Fund

     14,182        293        (4,107     (4,505     —        (4,505

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     41,533        305        6,501       5,823       —        5,823  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     15,754        100        2       (388     —        (388

LOTTE CARD Co., Ltd. (*1)

     22,329,308        19,191,007        1,937,383       363,673       (19,888     343,785  

Union Technology Finance Investment Association

     41,543        233        2,261       (838     —        (838

Dicustody Co., Ltd.

     92        —         —        (3     —        (3

Orient Shipyard Co., Ltd.

     10,708        27,225        —        (124     —        (124

Joongang Network Solution Co.,Ltd.

     1,505        3,156        5,758       5       —        5  

Win Mortgage Co.,LTd.

     3,518        1,197        9,309       378       —        378  

Together-Korea Government Private Pool Private Securities Investment Trust No. 3

     10,543        1        227       222       —        222  

BTS 2nd Private Equity Fund

     25,030        837        4       (1,213     —        (1,213

STASSETS FUND III

     30,014        312        95       (1,145     —        (1,145

SF CREDIT PARTNERS, LLC

     149,157        25,996        7,618       (4,610     (2,819     (7,429

Rea Company

     2,248        3,736        802       (694     —        (694

ARAM CMC Co.,Ltd.

     669        485        1,005       (254     —        (254

Japanese Hotel Real Estate Private Equity Fund No.2

     13,541        12        54       46       (602     (556

Woori Seoul Beltway Private Special Asset Fund No.1

     50,362        2        1,858       1,805       —        1,805  

Woori General Private Securities Investment Trust(Bond) No.1

     414,760        208,014        12,617       6,746       —        6,746  

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

     828,793        126,879        34,607       31,283       —        31,283  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

     113,413        6        4,774       4,542       —        4,542  

Woori General Private Securities Investment Trust(Bond) No.2

     224,205        111,165        5,767       3,040       —        3,040  

Woori Smart General Private Equity Investment Trust 1(bond)

     289,553        145,580        7,373       3,973       —        3,973  

Woori General Private Securities Investment Trust(Bond) No.3

     532,139        347,809        9,304       4,342       —        4,342  

Woori Asset Global Partnership Fund No.5

     38,537        281        —        (744     —        (744

WOORI TAERIM 1st Fund

     4,045        183        —        —        —        —   

Portone-Cape Fund No.1

     2,324        100        —        (103     —        (103

DeepDive WOORI 2021-1 Financial Investment Fund

     10,400        19        9,607       9,467       —        9,467  

Darwin Green Packaging Private Equity Fund

     19,390        —         759       451       —        451  

Koreawide partners 2nd Private Equity Fund

     75,064        2,931        —        (2,831     —        (2,831

Woori FirstValue Private Real Estate Fund No.2

     67,024        62,357        32       18       —        18  

WooriG Real Infrastructure Blind General Type Private Placement Investment Trust

     114,909        92        6,053       4,892       —        4,892  

Woori Together TDF 2030

     11,944        61        2,528       1,017       —        1,017  

Woori Together OCIO Target Return Feeder fund (Balance Bond)

     50,831        1        2,446       2,444       —        2,444  

Australia Green Energy 1st PEF

     121,454        24        508       (1,189     —        (1,189

Aarden Woori Apparel 1st Private Equity Fund

     28,219        90        1       (332     —        (332

Woori Dyno 1st Private Equity Fund

     12,068        43        2,053       1,886       —        1,886  

KTB-KORUS FUND

     8,957        1        127       (712     —        (712

 

- 90 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     December 31, 2023  
     Assets      Liabilities      Operating
revenue
    Net
income
(loss)
    Other
comprehensive
income(loss)
    Total
comprehensive
income(loss)
 

KTB China Platform Fund

     85,909        13        2,411       (5,160     —        (5,160

KTBN Venture Fund No.7

     79,871        —         6,420       508       —        508  

KTBN Venture Fund No.8

     11,758        207        2,359       (4,559     —        (4,559

KTBN Digital Contents Korea Fund No.9

     20,257        1,599        3,030       (1,142     —        (1,142

KTBN Media Contents Fund

     1,887        —         199       (35     —        (35

KTB China Synergy Fund

     145,464        9,977        23,055       (8,686     —        (8,686

NAVER-KTB Audio Contents Fund

     29,419        652        1,017       237       —        237  

KTBN Venture Fund No.13

     72,943        737        21,662       18,507       —        18,507  

KTBN Future Contents Fund

     34,696        486        7,394       4,776       —        4,776  

KTBN Venture Fund No.16

     182,850        1,875        40,201       11,133       —        11,133  

KTBN Venture Fund No.18

     268,437        2,526        31,543       8,036       —        8,036  

KB-KTB Technology Venture Fund

     42,046        246        2,055       (1,076     —        (1,076

WOORI 2022 Scaleup Venture Fund

     68,626        826        504       (2,758     —        (2,758

WOORI 2022 Start-up Venture Fund

     8,237        156        42       (576     —        (576

KTB-NHN China Private Equity Fund

     16        7        946       (315     (319     (634

KTBN GI Private Equity Fund

     12,391        45        —        7,146       712       7,858  

Chirochem

     732        375        4,215       148       —        148  

Godo Kaisha Oceanos 1

     62,021        45,334        2,765       192       —        192  

Woori Zip 1

     44,448        31,702        2,066       (198     —        (198

Woori Zip 2

     62,642        45,012        3,023       (167     —        (167

KG Fashion Co., Ltd.

     2,559        3,022        943       (569     —        (569

KUM HWA Co., Ltd.

     4        167        —        —        —        —   

Jinmyung Plus Co., Ltd.

     519        454        146       (3     —        (3

JC Assurance No.2 Private Equity Fund

     121,596        8        —        (628     —        (628

Dream Company Growth no.1 PEF

     28,366        255        1,490       1,300       —        1,300  

HMS-Oriens 1st Fund

     61,498        1        3,957       3,408       —        3,408  

Woori G Senior Loan Private Placement Investment Trust No.1

     349,154        22        17,759       16,726       —        16,726  

Genesis Eco No.1 Private Equity Fund

     38,064        314        —        (947     —        (947

Paratus Woori Material Component Equipment joint venture company

     58,298        1,510        —        (906     —        (906

Midas No. 8 Private Equity Joint Venture Company

     65,063        242        1,956       1,002       —        1,002  

Orchestra Private Equity Fund IV

     34,041        122        1,680       1,172       —        1,172  

Synaptic Green No.1 PEF

     36,325        175        4       (867     —        (867

IGEN2022No. 1 Private Equity Fund

     32,255        124        1,847       1,350       —        1,350  

PCC-Woori LP Secondary Fund

     27,773        668        908       (6,350     —        (6,350

Synaptic Future Growth Private Equity Fund 1

     30,049        301        2       (951     —        (951

Woori-Q Corporate Restructuring Private Equity Fund

     63,265        456        4,945       3,018       —        3,018  

Woori-Shinyoung Growth-Cap Private Equity Fund I

     97,265        1,522        (26,435     (27,768     —        (27,768

NH Woori Newdeal Growth Alpha Private Equity Fund 1

     100,215        1,588        2       (3,605     —        (3,605

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

     16,630        5        1,383       1,383       —        1,383  

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

     133,729        32,028        3,006       2,831       —        2,831  

Woori Short Term Government and Special Bank Bond Active ETF

     62,185        3,212        1,222       978       —        978  

 

(*1)

The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

 

- 91 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(4)

The entities that the Group has not applied equity method of accounting although the Group’s common share ratio is more than 20% as of March 31, 2024 and December 31, 2023 are as follows:

 

     March 31, 2024  

Associate (*)

   Number of shares owned      Ownership (%)  

CL Tech Co., Ltd.

     10,191        28.6  

Market & Farm Co., Ltd.

     14,694        23.7  

 

(*)

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

 

     December 31, 2023  

Associate (*)

   Number of shares owned      Ownership (%)  

CL Tech Co., Ltd.

     10,191        28.6  

 

(*)

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

 

(5)

As of March 31, 2024 and December 31, 2023, the reconciliations from the net assets of the associates to the carrying amount of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won in millions except for ownership):

 

     March 31, 2024  
     Total net
asset
    Ownership
(%)
     Ownership
portion of
net assets
    Basis
difference
     Impairment      Intercompany
transaction
    Book
value
 

W Service Networks Co., Ltd.

     3,409       4.9      167       —         —         —        167  

Korea Credit Bureau Co., Ltd.

     68,354       9.9      6,776       246        —         —        7,022  

Korea Finance Security Co., Ltd.

     22,867       15.0      3,430       —         —         —        3,430  

K BANK Co., Ltd. (*)

     1,888,997       12.6      237,556       21,894        —         —        259,450  

Partner One Value Up I Private Equity Fund

     14,121       23.3      3,284       —         —         —        3,284  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     39,035       20.0      7,808       —         —         —        7,808  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     15,560       25.0      3,890       —         —         547       4,437  

LOTTE CARD Co.,Ltd.(*)

     2,811,317       20.0      562,262       —         —         —        562,262  

Union Technology Finance Investment Association

     40,278       29.7      11,963       —         —         —        11,963  

Dicustody Co., Ltd.

     92       1.0      1       —         —         —        1  

Orient Shipyard Co., Ltd.(*)

     (16,548     22.7      (3,761     —         —         3,761       —   

Joongang Network Solution Co.,Ltd.

     (1,325     25.3      (336     —         —         420       84  

Win Mortgage Co.,LTd.

     1,936       4.5      87       —         —         —        87  

Together-Korea Government Private Pool Private Securities Investment Trust No.3

     10,619       100.0      10,617       —         —         —        10,617  

BTS 2nd Private Equity Fund

     33,472       20.0      6,694       —         —         —        6,694  

STASSETS FUND III

     29,432       28.3      8,330       —         —         —        8,330  

SF CREDIT PARTNERS, LLC

     132,127       10.0      13,213       —         —         529       13,742  

Rea Company

     476       26.1      117       —         —         (117     —   

ARAM CMC Co.,Ltd.

     123       20.1      25       —         —         (25     —   

Japanese Hotel Real Estate Private Equity Fund No.2

     13,145       19.9      2,611       —         —         —        2,611  

Woori Seoul Beltway Private Special Asset Fund No.1

     54,235       25.0      13,559       —         —         —        13,559  

 

- 92 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     March 31, 2024  
     Total net
asset
     Ownership
(%)
     Ownership
portion of
net assets
     Basis
difference
     Impairment      Intercompany
transaction
     Book
value
 

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

     934,504        10.8      100,607        —         —         —         100,607  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

     114,103        8.8      10,003        —         —         —         10,003  

Woori General Private Securities Investment Trust(Bond) No.2

     114,397        27.3      31,199        —         —         —         31,199  

Woori Smart General Private Equity Investment Trust 1(bond)

     145,817        28.6      41,662        —         —         —         41,662  

Woori General Private Securities Investment Trust(Bond) No.3

     102,550        29.3      30,036        —         —         —         30,036  

Woori Asset Global Partnership Fund No.5

     38,686        57.7      22,319        —         —         —         22,319  

WOORI TAERIM 1st Fund

     3,862        25.6      988        —         —         —         988  

Portone-Cape Fund No.1

     945        20.0      189        —         —         —         189  

DeepDive WOORI 2021-1 Financial Investment Fund

     3,455        11.9      411        —         —         —         411  

Darwin Green Packaging Private Equity Fund

     19,317        20.4      3,942        —         —         —         3,942  

Koreawide partners 2nd Private Equity Fund

     72,132        26.7      19,235        —         —         —         19,235  

Woori FirstValue Private Real Estate Fund No.2

     4,680        12.0      562        —         —         —         562  

Woori Together TDF 2025

     11,556        28.9      3,342        —         —         —         3,342  

Woori Together TDF 2030

     12,637        27.3      3,452        —         —         —         3,452  

Australia Green Energy 1st PEF

     121,193        4.0      4,802        —         —         —         4,802  

Aarden Woori Apparel 1st Private Equity Fund

     20,237        0.5      95        —         —         —         95  

Woori Dyno 1st Private Equity Fund

     11,997        19.6      2,352        —         —         —         2,352  

KTB-KORUS FUND

     8,957        37.5      3,359        —         —         —         3,359  

KTB China Platform Fund

     88,255        18.7      16,500        —         —         —         16,500  

KTBN Venture Fund No.7

     71,733        20.1      14,410        —         —         —         14,410  

KTBN Venture Fund No.8

     8,043        21.7      1,749        —         —         —         1,749  

KTBN Digital Contents Korea Fund No.9

     18,890        30.0      5,667        —         —         —         5,667  

KTBN Media Contents Fund

     1,896        15.0      284        —         —         —         284  

KTB China Synergy Fund

     108,951        15.1      16,408        —         —         —         16,408  

NAVER-KTB Audio Contents Fund

     28,765        1.0      288        —         —         —         288  

KTBN Venture Fund No.13

     62,887        19.6      12,331        —         —         —         12,331  

KTBN Future Contents Fund

     34,101        13.3      4,547        —         —         —         4,547  

KTBN Venture Fund No.16

     179,163        10.3      18,376        —         —         —         18,376  

KTBN Venture Fund No.18

     265,040        10.1      26,881        —         —         —         26,881  

KB-KTB Technology Venture Fund

     41,659        18.2      7,574        —         —         —         7,574  

WOORI 2022 Scaleup Venture Fund

     67,237        20.0      13,465        —         —         —         13,465  

WOORI 2022 Start-up Venture Fund

     25,334        30.1      7,629        —         —         —         7,629  

KTB-NHN China Private Equity Fund

     7        33.3      2        —         —         —         2  

KTBN GI Private Equity Fund

     17,590        5.0      880        —         —         —         880  

Chirochem

     358        28.6      102        —         —         —         102  

Daishin Balance No.18 Special Purpose Acquisition Company

     1,650        49.6      819        —         —         —         819  

Godo Kaisha Oceanos 1

     16,634        47.8      7,952        —         —         —         7,952  

 

- 93 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     March 31, 2024  
     Total net
asset
    Ownership
(%)
     Ownership
portion of
net assets
    Basis
difference
     Impairment     Intercompany
transaction
     Book
value
 

Woori Zip 1

     12,174       62.4      7,295       —         —        —         7,295  

Woori Zip 2

     16,847       62.7      10,181       —         —        —         10,181  

KG Fashion Co., Ltd.

     (504     20.8      (105     —         —        105        —   

KUM HWA Co., Ltd.

     (163     20.1      (33     —         —        33        —   

Jinmyung Plus Co., Ltd.

     72       21.3      16       —         —        —         16  

JC Assurance No.2 Private Equity Fund

     120,975       23.4      28,308       —         (28,308     —         —   

Dream Company Growth no.1 PEF

     5       0.0      —        —         —        —         —   

HMS-Oriens 1st Fund

     62,418       22.8      14,240       —         —        —         14,240  

Woori Senior Loan Private Placement Investment Trust No.1

     288,080       21.6      62,368       —         —        —         62,368  

Genesis Eco No.1 Private Equity Fund

     38,352       29.0      11,116       —         —        —         11,116  

Paratus Woori Material Component Equipment joint venture company

     56,570       29.9      16,914       —         —        —         16,914  

Midas No. 8 Private Equity Joint Venture Company

     64,605       28.5      18,403       —         —        —         18,403  

Orchestra Private Equity Fund IV

     34,491       28.2      9,716       —         —        —         9,716  

Synaptic Green No.1 PEF

     36,148       21.1      7,611       —         —        —         7,611  

IGEN2022No. 1 Private Equity Fund

     32,569       24.8      8,092       —         —        —         8,092  

PCC-Woori LP Secondary Fund

     26,858       38.9      10,434       —         —        —         10,434  

Synaptic Future Growth Private Equity Fund

     32,142       23.8      7,637       —         —        —         7,637  

Woori-Q Corporate Restructuring Private Equity Fund

     62,646       32.4      20,215       —         —        —         20,215  

Woori-Shinyoung Growth-Cap Private Equity Fund I

     84,888       35.0      29,686       —         —        —         29,686  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

     114,604       32.7      37,487       —         —        —         37,487  

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

     25,935       13.5      3,491       —         —        —         3,491  

Woori Short Term Government and Special Bank Bond Active ETF

     60,157       20.6      12,404       —         —        —         12,404  

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

     104,554       28.9      30,260       —         —        —         30,260  

Woori General Private Securities Investment Trust No. 5 (bond)

     211,975       28.6      60,564       —         —        —         60,564  

Woori Big Satisfaction General Private Securities Investment Trust No. 3 (bond)

     110,640       9.1      10,058       —         —        —         10,058  

Woori General Private Securities Investment Trust No. 6 (bond)

     140,536       28.6      40,153       —         —        —         40,153  

Woori Big Satisfaction Corporation MMF No. 1 (Government Bond)

     6,124,382       3.4      205,691       —         —        —         205,691  

Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks)

     8,534       24.2      2,052       —         —        —         2,052  

 

- 94 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     March 31, 2024  
     Total
net asset
     Ownership
(%)
     Ownership
portion of
net assets
     Basis
difference
     Impairment      Intercompany
transaction
     Book
value
 

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2

     95,321        2.1      2,009        —         —         —         2,009  

 

(*)

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

 

     December 31, 2023  
     Total net
asset
    Ownership
(%)
     Ownership
portion of
net assets
    Basis
difference
     Impairment      Intercompany
transaction
    Book
value
 

W Service Networks Co., Ltd.

     4,391       4.9        216       —         —         —        216  

Korea Credit Bureau Co., Ltd.

     62,408       9.9        6,186       247        —         —        6,433  

Korea Finance Security Co., Ltd.

     21,898       15.0        3,285       —         —         —        3,285  

K BANK Co., Ltd. (*)

     1,893,785       12.6        238,158       21,894        —         —        260,052  

Partner One Value Up I Private Equity Fund

     13,889       23.3        3,230       —         —         —        3,230  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     41,228       20.0        8,247       —         —         —        8,247  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     15,654       25.0        3,914       —         —         523       4,437  

LOTTE CARD Co., Ltd. (*)

     2,936,964       20.0        587,392       —         —         —        587,392  

Union Technology Finance Investment Association

     41,310       29.7        12,270       —         —         —        12,270  

Dicustody Co., Ltd.

     92       1.0        1       —         —         —        1  

Orient Shipyard Co., Ltd.

     (16,517     22.7        (3,754     —         —         3,754       —   

Joongang Network Solution Co.,Ltd.

     (1,651     25.3        (419     —         —         507       88  

Win Mortgage Co.,LTd.

     2,321       4.5        105       —         —         —        105  

Together-Korea Government Private Pool Private Securities Investment Trust No. 3

     10,542       100.0        10,540       —         —         —        10,540  

BTS 2nd Private Equity Fund

     24,193       20.0        4,838       —         —         —        4,838  

STASSETS FUND III

     29,702       28.3        8,406       —         —         —        8,406  

SF CREDIT PARTNERS, LLC

     123,161       10.0        12,316       —         —         529       12,845  

Rea Company

     (1,488     24.5        (365     —         —         365       —   

ARAM CMC Co.,Ltd.

     184       20.0        37       —         —         (37     —   

Japanese Hotel Real Estate Private Equity Fund No.2

     13,529       19.9        2,688       —         —         —        2,688  

Woori Seoul Beltway Private Special Asset Fund No.1

     50,360       25.0        12,590       —         —         —        12,590  

Woori General Private Securities Investment Trust(Bond) No.1

     206,746       25.0        51,686       —         —         —        51,686  

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

     701,914       15.0        105,564       —         —         —        105,564  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

     113,407       9.1        10,330       —         —         —        10,330  

Woori General Private Securities Investment Trust(Bond) No.2

     113,040       27.3        30,829       —         —         —        30,829  

Woori Smart General Private Equity Investment Trust 1(bond)

     143,973       28.6        41,135       —         —         —        41,135  

 

- 95 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     December 31, 2023  
     Total net
asset
    Ownership
(%)
     Ownership
portion of
net assets
    Basis
difference
     Impairment     Intercompany
transaction
     Book
value
 

Woori General Private Securities Investment Trust(Bond) No.3

     184,330       27.8        51,205       —         —        —         51,205  

Woori Asset Global Partnership Fund No.5

     38,256       57.7        22,071       —         —        —         22,071  

WOORI TAERIM 1st Fund

     3,862       25.6        988       —         —        —         988  

Portone-Cape Fund No.1

     2,224       20.0        445       —         —        —         445  

DeepDive WOORI 2021-1 Financial Investment Fund

     10,381       11.9        1,236       —         —        —         1,236  

Darwin Green Packaging Private Equity Fund

     19,390       20.4        3,957       —         —        —         3,957  

Koreawide partners 2nd Private Equity Fund

     72,133       26.7        19,235       —         —        —         19,235  

Woori FirstValue Private Real Estate Fund No.2

     4,667       12.0        560       —         —        —         560  

WooriG Real Infrastructure Blind General Type Private Placement Investment Trust

     114,817       0.1        55       —         —        —         55  

Woori Together TDF 2030

     11,894       28.0        3,324       —         —        —         3,324  

Woori Together OCIO Target Return Feeder fund (Balance Bond)

     50,837       20.4        10,376       —         —        —         10,376  

Australia Green Energy 1st PEF

     121,430       4.0        4,811       —         —        —         4,811  

Aarden Woori Apparel 1st Private Equity Fund

     28,129       0.5        133       —         —        —         133  

Woori Dyno 1st Private Equity Fund

     12,025       19.6        2,358       —         —        —         2,358  

KTB-KORUS FUND

     8,956       37.5        3,359       —         —        —         3,359  

KTB China Platform Fund

     85,895       18.7        16,059       —         —        —         16,059  

KTBN Venture Fund No.7

     79,871       20.1        16,044       —         —        —         16,044  

KTBN Venture Fund No.8

     11,551       21.7        2,511       —         —        —         2,511  

KTBN Digital Contents Korea Fund No.9

     18,658       30        5,597       —         —        —         5,597  

KTBN Media Contents Fund

     1,887       15        283       —         —        —         283  

KTB China Synergy Fund

     135,487       15.1        20,405       —         —        —         20,405  

NAVER-KTB Audio Contents Fund

     28,767       1        288       —         —        —         288  

KTBN Venture Fund No.13

     72,206       19.6        14,158       —         —        —         14,158  

KTBN Future Contents Fund

     34,210       13.3        4,561       —         —        —         4,561  

KTBN Venture Fund No.16

     180,975       10.3        18,561       —         —        —         18,561  

KTBN Venture Fund No.18

     265,911       10.1        26,970       —         —        —         26,970  

KB-KTB Technology Venture Fund

     41,800       18.2        7,600       —         —        —         7,600  

WOORI 2022 Scaleup Venture Fund

     67,800       20        13,578       —         —        —         13,578  

WOORI 2022 Start-up Venture Fund

     8,081       30.1        2,433       —         —        —         2,433  

KTB-NHN China Private Equity Fund

     9       33.3        3       —         —        —         3  

KTBN GI Private Equity Fund

     12,346       5        617       —         —        —         617  

Chirochem

     357       28.6        102       —         —        —         102  

Godo Kaisha Oceanos 1

     16,687       47.8        7,978       —         —        —         7,978  

Woori Zip 1

     12,746       62.4        7,629       —         —        —         7,629  

Woori Zip 2

     17,630       62.8        10,695       —         —        —         10,695  

KG Fashion Co., Ltd.

     (463     20.8        (96     —         —        96        —   

KUM HWA Co., Ltd.

     (163     20.1        (33     —         —        33        —   

Jinmyung Plus Co., Ltd.

     65       21.3        14       —         —        —         14  

JC Assurance No.2 Private Equity Fund

     121,588       23.5        28,610       —         (28,610     —         —   

Dream Company Growth no.1 PEF

     28,111       27.8        7,809       —         —        —         7,809  

HMS-Oriens 1st Fund

     61,497       22.8        14,030       —         —        —         14,030  

 

- 96 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

     December 31, 2023  
     Total net
asset
     Ownership
(%)
     Ownership
portion of
net assets
     Basis
difference
     Impairment      Intercompany
transaction
     Book
value
 

Woori G Senior Loan Private Placement Investment Trust No.1

     349,132        21.7        75,590        —         —         —         75,590  

Genesis Eco No.1 Private Equity Fund

     37,750        29.0        10,942        —         —         —         10,942  

Paratus Woori Material Component Equipment joint venture company

     56,788        29.9        16,979        —         —         —         16,979  

Midas No. 8 Private Equity Joint Venture Company

     64,821        28.5        18,465        —         —         —         18,465  

Orchestra Private Equity Fund IV

     33,919        28.2        9,555        —         —         —         9,555  

Synaptic Green No.1 PEF

     36,150        21.1        7,611        —         —         —         7,611  

IGEN2022No. 1 Private Equity Fund

     32,131        24.8        7,983        —         —         —         7,983  

PCC-Woori LP Secondary Fund

     27,105        38.9        10,530        —         —         —         10,530  

Synaptic Future Growth Private Equity Fund 1

     29,748        23.8        7,069        —         —         —         7,069  

Woori-Q Corporate Restructuring Private Equity Fund

     62,809        32.4        20,283        —         —         —         20,283  

Woori-Shinyoung Growth-Cap Private Equity Fund I

     95,743        35.0        33,481        —         —         —         33,481  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

     98,627        32.7        32,987        —         —         —         32,987  

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

     16,625        14.1        2,543        —         —         —         2,543  

Woori 25-09 Corporate Bond (AA- or higher) Active ETF

     101,701        29.3        29,821        —         —         —         29,821  

Woori Short Term Government and Special Bank Bond Active ETF

     58,973        20.8        12,286        —         —         —         12,286  

 

(*)

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

 

- 97 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

13.

INVESTMENT PROPERTIES

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Acquisition cost

     516,470        510,990  

Accumulated depreciation

     (41,523      (38,136

Accumulated impairment losses

     (86      (86
  

 

 

    

 

 

 

Net carrying value

     474,861        472,768  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month period ended March 31  
     2024      2023  

Beginning balance

     472,768        387,707  

Acquisition

     —         99,429  

Depreciation

     (3,779      (1,149

Transfer

     9,124        (886

Foreign currencies translation adjustments

     (3,252      4,118  
  

 

 

    

 

 

 

Ending balance

     474,861        489,219  
  

 

 

    

 

 

 

 

14.

PREMISES AND EQUIPMENT

 

(1)

Details of Premises and equipment as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Land      Building      Equipment
and vehicles
     Leasehold
improvement
     Construction
in progress
     Structures      Total  

Premises and equipment (owned)

     1,698,764        699,479        266,207        61,164        37,107        —         2,762,721  

Right-of-use asset

     —         393,070        25,153        —         —         —         418,223  

Carrying value

     1,698,764        1,092,549        291,360        61,164        37,107        —         3,180,944  

 

     December 31, 2023  
     Land      Building      Equipment
and vehicles
     Leasehold
improvement
     Construction
in progress
     Structures      Total  

Premises and equipment (owned)

     1,709,712        719,738        265,064        61,369        37,194        —         2,793,077  

Right-of-use asset

     —         362,702        20,980        —         —         —         383,682  

Carrying value

     1,709,712        1,082,440        286,044        61,369        37,194        —         3,176,759  

 

(2)

Details of Premises and equipment (owned) as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Land     Building     Equipment
and vehicles
    Leasehold
improvement
    Construction
in progress
     Structures     Total  

Acquisition cost

     1,699,424       1,085,164       1,246,887       490,519       37,107        20       4,559,121  

Accumulated depreciation

     —        (385,685     (980,680     (429,355     —         (20     (1,795,740

Accumulated impairment losses

     (660     —        —        —        —         —        (660

Net carrying value

     1,698,764       699,479       266,207       61,164       37,107        —        2,762,721  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

     December 31, 2023  
     Land     Building     Equipment
and vehicles
    Leasehold
improvement
    Construction
in progress
     Structures     Total  

Acquisition cost

     1,710,372       1,098,682       1,229,740       486,763       37,194        20       4,562,771  

Accumulated depreciation

     —        (378,944     (964,676     (425,394     —         (20     (1,769,034

Accumulated impairment losses

     (660     —        —        —        —         —        (660

Net carrying value

     1,709,712       719,738       265,064       61,369       37,194        —        2,793,077  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

- 98 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

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

 

     For the three-month period ended March 31, 2024  
     Land     Building     Equipment
and vehicles
    Leasehold
improvement
    Construction
in progress
    Structures      Total  

Beginning balance

     1,709,712       719,738       265,064       61,369       37,194       —         2,793,077  

Acquisitions

     —        4,194       27,518       4,353       776       —         36,841  

Disposals

     (344     —        (3,064     (920     —        —         (4,328

Depreciation

     —        (8,257     (24,655     (5,401     —        —         (38,313

Classification of assets held for sale

     (9,530     (9,200     —        —        —        —         (18,730

Transfer

     (1,431     (7,693     255       270       (525     —         (9,124

Foreign currencies translation adjustments

     357       138       864       973       197       —         2,529  

Others

     —        559       225       520       (535     —         769  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Ending balance

     1,698,764       699,479       266,207       61,164       37,107       —         2,762,721  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Land     Building     Equipment
and vehicles
    Leasehold
improvement
    Construction
in progress
    Structures      Total  

Beginning balance

     1,695,357       730,676       261,278       58,352       32,184       —         2,777,847  

Acquisitions

     96       1,530       14,833       4,199       1,638       —         22,296  

Disposals

     (80     (115     (327     (248     —        —         (770

Depreciation

     —        (8,157     (25,853     (5,099     —        —         (39,109

Transfer

     142       337       —        —        —        —         479  

Foreign currencies translation adjustments

     1,339       662       1,577       772       57       —         4,407  

Business combination

     9,537       9,548       318       —        —        —         19,403  

Others

     4,531       (4,123     (10,773     (98     (295     —         (10,758
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Ending balance

     1,710,922       730,358       241,053       57,878       33,584       —         2,773,795  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

(4)

Details of right-of-use assets as of March 31, 2024 and December 31 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2023  
     Building      Equipment and vehicles      Total  

Acquisition cost

     792,653        41,138        833,791  

Accumulated depreciation

     (399,583      (15,985      (415,568
  

 

 

    

 

 

    

 

 

 

Net carrying value

     393,070        25,153        418,223  
  

 

 

    

 

 

    

 

 

 

 

     December 31, 2023  
     Building      Equipment and vehicles      Total  

Acquisition cost

     735,396        40,389        775,785  

Accumulated depreciation

     (372,694      (19,409      (392,103
  

 

 

    

 

 

    

 

 

 

Net carrying value

     362,702        20,980        383,682  
  

 

 

    

 

 

    

 

 

 

 

- 99 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(5)

Details of changes in right-of-use assets for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Building     Equipment and vehicles     Total  

Beginning balance

     362,702       20,980       383,682  

New contracts

     73,181       7,297       80,478  

Changes in contract

     8,145       2       8,147  

Termination

     (2,018     (754     (2,772

Depreciation

     (55,066     (3,312     (58,378

Business combination

     —        —        —   

Others

     6,126       940       7,066  
  

 

 

   

 

 

   

 

 

 

Ending balance

     393,070       25,153       418,223  
  

 

 

   

 

 

   

 

 

 

 

     For the three-month period ended March 31, 2023  
     Building     Equipment and vehicles     Total  

Beginning balance

     349,494       15,589       365,083  

New contracts

     78,774       1,858       80,632  

Changes in contract

     (22,486     27       (22,459

Termination

     (3,225     (123     (3,348

Depreciation

     (49,582     (2,778     (52,360

Business combination

     674       272       946  

Others

     6,672       124       6,796  
  

 

 

   

 

 

   

 

 

 

Ending balance

     360,321       14,969       375,290  
  

 

 

   

 

 

   

 

 

 

 

15.

INTANGIBLE ASSETS

 

(1)

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

 

     March 31, 2024  
     Goodwill      Industrial
property rights
    Development
cost
    Other
intangible
assets
    Membership
deposit
    Construction
in progress
     Total  

Acquisition cost

     450,360        2,304       875,318       1,400,480       52,159       8,834        2,789,455  

Accumulated amortization

     —         (1,832     (631,563     (1,119,682     —        —         (1,753,077

Accumulated impairment losses

     —         —        —        (33,552     (3,005     —         (36,557
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net carrying value

     450,360        472       243,755       247,246       49,154       8,834        999,821  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

     December 31, 2023  
     Goodwill      Industrial
property rights
    Development
cost
    Other
intangible
assets
    Membership
deposit
    Construction
in progress
     Total  

Acquisition cost

     445,093        2,292       859,678       1,388,397       50,857       8,142        2,754,459  

Accumulated amortization

     —         (1,783     (617,587     (1,101,688     —        —         (1,721,058

Accumulated impairment losses

     —         —        —        (33,553     (3,006     —         (36,559
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net carrying value

     445,093        509       242,091       253,156       47,851       8,142        996,842  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

- 100 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(2)

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

 

     For the three-month period ended March 31, 2023  
     Goodwill      Industrial
property
rights
    Development
cost
    Other
intangible
assets
    Membership
deposit
    Construction
in progress
    Total  

Beginning balance

     445,093        509       242,091       253,156       47,851       8,142       996,842  

Acquisitions

     —         12       19,161       18,735       2,044       3,878       43,830  

Disposal

     —         —        —        (4,674     (737     —        (5,411

Amortization (*)

     —         (49     (17,497     (22,195     —        —        (39,741

Impairment losses

     —         —        —        —        (96     —        (96

Transfer

     —         1       —        616       —        (616     1  

Foreign currencies translation adjustments

     5,267        —        —        1,167       90       258       6,782  

Others

     —         (1     —        441       2       (2,828     (2,386
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     450,360        472       243,755       247,246       49,154       8,834       999,821  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*)

Amortization of other intangible assets amounting to 6,547 million Won is included in other operating expenses.

 

     For the three-month period ended March 31, 2023  
     Goodwill      Industrial
property
rights
    Development
cost
    Other
intangible
assets
    Membership
deposit
    Construction
in progress
    Total  

Beginning balance

     397,527        643       212,627       192,373       42,917       3,027       849,114  

Acquisitions

     —         14       24,133       52,146       181       1,354       77,828  

Disposal

     —         —        —        —        (50     —        (50

Amortization (*)

     —         (53     (23,953     (20,622     —        —        (44,628

Reversal of impairment losses

     —         —        —        —        44       —        44  

Business combination

     41,527        —        —        18,882       2,572       —        62,981  

Foreign currencies translation adjustments

     12,380        —        2       2,471       105       102       15,060  

Others

     —         —        —        544       10       (607     (53
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

     451,434        604       212,809       245,794       45,779       3,876       960,296  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*)

Amortization of other intangible assets amounting to 4,458 million Won is included in other operating expenses.

 

- 101 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

16.

ASSETS HELD FOR SALE

Assets held for sale are as follows (Unit: Korean Won in millions):

 

Assets (*)

   March 31, 2024      December 31, 2023  

Premises and equipment

     30,304        11,573  

Others

     22,837        8,772  
  

 

 

    

 

 

 

Total

     53,141        20,345  
  

 

 

    

 

 

 

 

(*)

The Group classifies assets as held for sale that are highly likely to be sold within one year from March 31, 2024 and December 31, 2023.

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

The Group has decided to sell some of the Premises and equipment through internal consultation during the current period and classified the property as non-current assets held for sale. The assets are expected to be sold within 12 months. On the other hand, other assets that are expected to be sold as of the end of the current period are classified as assets that are expected to be sold within one year due to the possibility of being sold as buildings and land acquired through auction.

 

- 102 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

17.   OTHER ASSETS

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

 

     March 31, 2024      December 31, 2023  

Lease assets

     3,415,571        3,306,464  

Prepaid expenses

     404,188        345,202  

Advance payments

     64,000        95,025  

Non-operational assets

     40,347        34,625  

Others

     36,616        60,471  
  

 

 

    

 

 

 

Total

     3,960,722        3,841,787  
  

 

 

    

 

 

 

 

18.

FINANCIAL LIABILITIES AT FVTPL

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Financial instruments at fair value through profit or loss

     7,278,390        6,138,313  
  

 

 

    

 

 

 

Financial liabilities designated to be measured at FVTPL

     169,839        —   
  

 

 

    

 

 

 

Total

     7,448,229        6,138,313  
  

 

 

    

 

 

 

 

(2)

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

 

     March 31, 2024      December 31, 2023  

Deposits

     

Gold banking liabilities

     42,886        39,524  

Borrowings

     

Securities sold

     219,218        155,765  

Derivative liabilities

     7,016,286        5,943,024  
  

 

 

    

 

 

 

Total

     7,278,390        6,138,313  
  

 

 

    

 

 

 

 

(3)

Financial liabilities designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Deposits

     

Fixed deposits

     169,839        —   

These contracts are designated as financial liabilities at fair value through profit or loss because these contracts contain one or more embedded derivatives and are hybrid (combined) contracts in accordance with K-IFRS 1109 Financial Instrument.

 

(4)

Changes in fair value due to change in credit risk reflected in financial liabilities designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Financial liabilities designated to be measured at FVTPL as of March 31, 2024

     169,839        —   

Changes in fair value due to change in credit risk

     446        —   

Accumulated change in fair value due to change in credit risk

     446        —   

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

 

- 103 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(5)

The difference between carrying amount and maturity amount of financial liabilities designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Carrying amount

     169,839        —   

Nominal amount at maturity

     170,000        —   

Defference

     (161      —   

 

19.

DEPOSITS DUE TO CUSTOMERS

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

 

     March 31, 2024      December 31, 2023  

Deposits in local currency:

     

Deposits on demand

     8,967,846        8,803,962  

Deposits at termination

     284,484,807        282,846,971  

Mutual installment

     21,198        21,602  

Deposits on notes payables

     4,063,662        4,119,801  

Deposits on CMA

     103,253        95,237  

Certificate of deposits

     10,050,507        14,767,307  

Other deposits

     1,088,830        1,117,673  
  

 

 

    

 

 

 

Sub-total

     308,780,103        311,772,553  
  

 

 

    

 

 

 

Deposits in foreign currencies:

     

Deposits in foreign currencies

     46,407,991        46,196,650  

Present value discount

     (136,215      (184,906

Customers’ deposits for beneficiary

     1,659        —   
  

 

 

    

 

 

 

Total

     355,053,538        357,784,297  
  

 

 

    

 

 

 

 

20.

BORROWINGS AND DEBENTURES

 

(1)

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

 

    

March 31, 2024

 
    

Lenders

   Interest rate (%)      Amount  

Borrowings in local currency:

        

Borrowings from The BOK

   The BOK      2.0        1,437,723  

Borrowings from government funds

   Small Enterprise and Market Service and others      0.0 ~ 3.5        2,069,764  

Others

   The Korea Development Bank and others      0.0 ~ 5.9        10,825,018  
        

 

 

 

Sub-total

           14,332,505  

Borrowings in foreign currencies:

        

Borrowings in foreign currencies

   The Export-Import Bank of Korea and others      0.0 ~ 10.6        13,422,485  

Bills sold

   Others      0.0 ~ 2.7        5,591  

Call money

   Bank and others      1.8 ~ 9.0        1,231,228  

Bonds sold under repurchase agreements

   Other financial institutions      1.0 ~ 10.7        1,192,429  

Present value discount

           (21,773
        

 

 

 

Total

           30,162,465  
        

 

 

 

 

- 104 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

    

December 31, 2023

 
    

Lenders

   Interest rate (%)      Amount  

Borrowings in local currency:

        

Borrowings from The BOK

   The BOK      2.0        1,565,444  

Borrowings from government funds

   Small Enterprise and Market Service and others      0.0 ~ 3.4        1,996,579  

Others

   The Korea Development Bank and others      0.0 ~ 6.7        11,206,471  
        

 

 

 

Sub-total

           14,768,494  

Borrowings in foreign currencies:

        

Borrowings in foreign currencies

   The Export-Import Bank of Korea and others      0.0 ~ 10.0        14,006,644  

Bills sold

   Others      0.0 ~ 2.7        6,325  

Call money

   Bank and others      4.1 ~ 6.6        1,115,923  

Bonds sold under repurchase agreements

   Other financial institutions      1.0 ~ 11.7        1,119,991  

Present value discount

           (30,631
        

 

 

 

Total

           30,986,746  
        

 

 

 

 

(2)

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

 

     March 31, 2024      December 31, 2023  
     Interest rate (%)      Amount      Interest rate (%)      Amount  

Face value of bond (*):

           

Ordinary bonds

     0.8 ~ 7.5        34,765,809        0.8 ~ 7.5        34,393,418  

Subordinated bonds

     1.9 ~ 5.1        5,316,201        1.9 ~ 5.1        5,241,848  

Other bonds

     1.6 ~ 17.0        1,690,004        1.6 ~ 17.0        1,667,895  
     

 

 

       

 

 

 

Sub-total

        41,772,014           41,303,161  
     

 

 

       

 

 

 

Discounts on bonds

        (76,296         (63,916
     

 

 

       

 

 

 

Total

        41,695,718           41,239,245  
     

 

 

       

 

 

 

 

(*)

Included debentures under fair value hedge amounting to 5,122,554 million won and 3,943,224 million won as of March 31, 2024 and December 31, 2023 respectively. Also, debentures under cash flow hedge amounting to 959,085 million won and 932,392 million won are included as of March 31, 2024 and December 31, 2023 respectively.

 

21.

PROVISIONS

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Asset retirement obligation

     96,204        95,179  

Provisions for guarantees (*1)

     84,051        80,703  

Provisions for unused loan commitments

     137,633        135,335  

Other provisions (*2)

     334,259        494,814  
  

 

 

    

 

 

 

Total

     652,147        806,031  
  

 

 

    

 

 

 

 

(*1)

Provisions for guarantees includes provision for financial guarantee of 50,109 million won and 50,125 million won as of March 31, 2024 and December 31, 2023, respectively.

(*2)

Other provisions consist of provision for litigation, loss compensation and others.

 

(2)

Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won in millions):

 

- 105 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  1)

Provisions for guarantees

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     70,678        2,800        7,225        80,703  

Transfer to 12-month expected credit loss

     81        (81      —         —   

Transfer to expected credit loss for the entire period

     (50      50        —         —   

Transfer to credit-impaired financial assets

     —         —         —         —   

Provisions used

     —         —         —         —   

Net provision (reversal) of unused amount

     3,041        (771      177        2,447  

Others (*)

     896        5        —         901  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     74,646        2,003        7,402        84,051  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Recognized as a result of new financial guarantee contract valued at initial fair value.

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     44,496        24,327        7,685        76,508  

Transfer to 12-month expected credit loss

     101        (101      —         —   

Transfer to expected credit loss for the entire period

     (13      13        —         —   

Transfer to credit-impaired financial assets

     (3      (6      9        —   

Provisions used

     —         —         —         —   

Net provision (reversal) of unused amount

     (984      (848      (567      (2,399

Others (*)

     (2,485      (2      —         (2,487
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     41,112        23,383        7,127        71,622  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Recognized as a result of new financial guarantee contract valued at initial fair value.

 

  2)

Provisions for unused loan commitment

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     108,775        26,328        232        135,335  

Transfer to 12-month expected credit loss

     6,499        (6,469      (30      —   

Transfer to expected credit loss for the entire period

     (1,958      1,964        (6      —   

Transfer to credit-impaired financial assets

     (67      (156      223        —   

Net provision (reversal) of unused amount

     (1,718      3,475        (333      1,424  

Others

     534        133        207        874  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     112,065        25,275        293        137,633  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     67,640        38,188        205        106,033  

Transfer to 12-month expected credit loss

     5,907        (5,881      (26      —   

Transfer to expected credit loss for the entire period

     (1,302      1,303        (1      —   

 

- 106 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Transfer to credit-impaired financial assets(52)

        (157      209        —   

Net provision (reversal) of unused amount

     (5,566      6,997        (148      1,283  

Others

     240        (27      —         213  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     66,867        40,423        239        107,529  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(3)

Changes in asset retirement obligation for the three-month periods ended March 31, 2024 and 2023, are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31  
     2024      2023  

Beginning balance

     95,179        82,717  

Provisions provided

     3,181        1,661  

Provisions used

     (1,627      (1,027

Reversal of provisions unused

     (223      —   

Unwinding of discount

     287        295  

Increase (decrease) of restoration expense,etc.

     (593      6,504  
  

 

 

    

 

 

 

Ending balance

     96,204        90,150  
  

 

 

    

 

 

 

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased property as of March 31,2024, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each property’s lease period, and the Group has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost.

 

(4)

Changes in other provisions for the three-month periods ended March 31, 2024 and 2023, are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31  
     2024      2023  

Beginning balance

     494,814        280,607  

Provisions provided

     12,207        3,743  

Provisions used

     (174,322      (23,885

Reversal of provisions unused

     (2,342      (1,874

Foreign currencies translation adjustments

     3,327        207  

Others

     575        2  
  

 

 

    

 

 

 

Ending balance

     334,259        258,800  
  

 

 

    

 

 

 

 

(5)

Others

 

  1)

The Group recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund (DLF) in 2019 and provisions for fines expected to be imposed by the Financial Services Commission as the best estimate of expenditure required to fulfill its current obligations at the end of the period.

 

  2)

The Group recognized provisions for estimated compensation amounts related to the prepayment arising from the delay in the redemption of funds before the prior fiscal year and the dispute settlement as the best estimate of the expenditure amounting to 236.4 billion won. In addition, The Group recognized provision amounting to 7.5 billion won for estimated compensation of expected customer loss related to equity-linked securities during the current period.

 

- 107 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

22.

NET DEFINED BENEFIT LIABILITY(ASSET)

The Group’s pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

 

Volatility of asset    The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate.

Decrease in profitability of blue- chip bonds

   A decrease in profitability of blue-chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.
Risk of inflation    Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

 

(1)

Details of net defined benefit liability are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Present value of defined benefit obligation

     1,568,178        1,574,087  

Fair value of plan assets

     (1,752,725      (1,807,408
  

 

 

    

 

 

 

Net defined benefit liabilities(assets) (*)

     (184,547      (233,321
  

 

 

    

 

 

 

 

(*)

Net defined benefit assets of 184,547 million won as of March 31, 2024 are the subtracted amount of the net defined benefit liability of 3,057 million won from the net defined benefit assets of 240,260 million won. Net defined benefit assets of 233,321 million won as of December 31, 2023 are the subtracted amount of the net defined benefit liability of 6,939 million won from the net defined benefit assets of 240,260 million won.

 

(2)

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

 

     For the three-month period ended March 31  
     2024      2023  

Beginning balance

     1,574,087        1,377,545  

Current service cost

     35,593        32,846  

Interest cost

     17,689        18,106  

Remeasurements

  

Financial assumption

     (16,983      52,747  
  

Demographic assumptions

     (2      —   
  

Experience adjustments

     38,057        66,544  

Retirement benefit paid

     (77,676      (76,762

Foreign currencies translation adjustments

     44        27  

Others

     (2,631      (599
  

 

 

    

 

 

 

Ending balance

     1,568,178        1,470,454  
  

 

 

    

 

 

 

 

- 108 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

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

 

     For the three-month period ended March 31  
     2024      2023  

Beginning balance

     1,807,408        1,661,623  

Interest income

     21,164        22,813  

Remeasurements

     (4,066      (8,247

Retirement benefit paid

     (70,666      (74,238

Others

     (1,115      (376
  

 

 

    

 

 

 

Ending balance

     1,752,725        1,601,575  
  

 

 

    

 

 

 

 

(4)

The fair value of the plan assets by composition is as follows as of March 31, 2024 and December 31, 2023.

 

     March 31, 2024      December 31, 2023  

Cash and due from banks and others

     1,752,725        1,807,408  

Meanwhile, among plan assets, realized returns on plan assets amount to 17,098 million won and 14,566 million won for the three-month periods ended March 31, 2024 and 2023, respectively.

 

(5)

Amounts related to the defined benefit plan that are recognized in the consolidated statements of comprehensive income are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31  
     2024      2023  

Current service cost

     35,593        32,846  

Net interest expense

     (3,475      (4,707
  

 

 

    

 

 

 

Cost recognized in net income

     32,118        28,139  
  

 

 

    

 

 

 

Remeasurements (*)

     25,139        127,538  
  

 

 

    

 

 

 

Cost recognized in total comprehensive income

     57,257        155,677  
  

 

 

    

 

 

 

 

(*)

Amount before tax

Retirement benefits related to defined contribution plans recognized as expenses are 1,354 million won, and 1,262 million won for the three-month periods ended March 31, 2024 and 2023, respectively.

 

- 109 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

23.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

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

 

     March 31, 2024      December 31, 2023  

Other financial liabilities:

     

Accounts payable

     12,760,468        10,188,192  

Accrued expenses

     4,314,240        4,339,314  

Borrowings from trust accounts

     6,317,081        5,207,791  

Agency business revenue

     361,357        271,946  

Foreign exchange payables

     786,478        887,817  

Domestic exchange settlement credits

     4,818,896        1,386,697  

Lease liabilities

     357,978        334,456  

Other miscellaneous financial liabilities

     4,548,087        3,520,039  

Present value discount

     (19,176      (21,247
  

 

 

    

 

 

 

Sub-total

     34,245,409        26,115,005  
  

 

 

    

 

 

 

Other liabilities:

     

Unearned income

     401,806        390,455  

Other miscellaneous liabilities

     418,385        413,442  
  

 

 

    

 

 

 

Sub-total

     820,191        803,897  
  

 

 

    

 

 

 

Total

     35,065,600        26,918,902  
  

 

 

    

 

 

 

 

- 110 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

24.   DERIVATIVES

 

  (1)

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

 

            March 31, 2024  
            Assets      Liabilities  
     Nominal
amount
     For cash
flow hedge
     For fair value
hedge
     For
trading
     For cash
flow hedge
     For fair value
hedge
     For trading  

Interest rate:

                    

Futures

     199,569        —         —         —         —         —         —   

Forwards

     3,940,000        —         —         139,109        —         —         94,167  

Swaps

     143,886,007        54        7,383        334,860        —         182,034        243,426  

Purchase options

     150,000        —         —         7,730        —         —         —   

Written options

     400,000        —         —         —         —         —         16,014  
                       —   

Currency:

                    

Futures

     2,976        —         —         —         —         —         —   

Forwards

     101,597,117        —         —         2,781,699        —         —         651,185  

Swaps

     82,242,855        55,400        —         3,064,794        3,520        —         4,768,396  

Purchase options

     263,354        —         —         1,341        —         —         —   

Written options

     368,578        —         —         —         —         —         1,703  

Equity:

                    

Futures

     776,700        —         —         —         —         —         —   

Forwards

     137        —         —         41        —         —         —   

Swaps

     298,321        —         —         55,747        —         —         4,836  

Purchase options

     13,244,443        —         —         795,138        —         —         —   

Written options

     14,634,347        —         —         —         —         —         1,236,559  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     362,004,404        55,454        7,383        7,180,459        3,520        182,034        7,016,286  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
            December 31, 2023  
            Assets      Liabilities  
     Nominal
amount
     For cash
flow hedge
     For fair value
hedge
     For
trading
     For cash
flow hedge
     For fair value
hedge
     For trading  

Interest rate:

                    

Futures

     317,018        —         —         —         —         —         —   

Forwards

     3,960,000        —         —         83,198        —         —         169,527  

Swaps

     138,734,758        —         698        367,333        512        135,263        213,885  

Purchase options

     150,000        —         —         6,556        —         —         —   

Written options

     400,000        —         —         —         —         —         15,359  

Currency:

                    

Futures

     1,728        —         —         —         —         —         —   

Forwards

     97,713,561        —         —         1,935,832        —         —         885,870  

Swaps

     79,160,356        26,010        —         2,669,550        17,232        —         3,643,463  

Purchase options

     139,309        —         —         1,500        —         —         —   

Written options

     122,696        —         —         —         —         —         585  

Equity:

                    

Futures

     480,311        —         —         —         —         —         —   

Forwards

     137        —         —         36        —         —         —   

Swaps

     461,112        —         —         126,028        —         —         1,994  

Purchase options

     16,444,709        —         —         608,296        —         —         —   

Written options

     16,887,247        —         —         —         —         —         1,012,341  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     354,972,942        26,010        698        5,798,329        17,744        135,263        5,943,024  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 18), and derivatives designated for hedging are presented as a separate line item in the consolidated statements of financial position.

 

- 111 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(2)

Overview of the Group’s hedge accounting

 

  1)

Fair value hedge

As of March 31, 2024, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 4,751,414 million won, and local currency debentures amounting to 371,140 million won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign and local currency denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments.

Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is hedged as the foreign currency denominated debentures fixed interest rate terms are converted to floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value of hedging instrument to the face value of the hedged item.

In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument.

The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Group expects the fair value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction.

The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is Compounding SOFR or CD 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate and pays interest at a variable interest rate.

 

  2)

Cash Flow Hedge

As of the March 31, 2024, the Group has applied cash flow hedge on local currency denominated debentures amounting to 179,955 million won and debentures on foreign currency amounting to 779,130 million won The Group’s hedging strategies are to ① Mitigate risks of cash flow fluctuation from variable interest rate debentures on local currency due to changes in market interest rate by entering into an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of cash flow fluctuation from principal and interest of variable interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and interest rates by entering into a currency swap contract and thereby designating it as hedging instrument; ③ Mitigate the risks of cash flow fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and ④ Mitigate the risks of cash flow fluctuation in variable interest rate foreign currency borrowings resulting from changes in market interest rates and designate it as a hedging instrument through entering into currency swap contracts and interest rate swap contracts.

This means exchanging a predetermined nominal amount as set forth in the interest rate swap contract adjusted by the differences between the fixed and variable interest rates, which results in the conversion of interest rates of debentures in local currency from variable interest into fixed interest, eliminating the cash flow fluctuation risk.

 

- 112 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

In addition, this also means a payment of predetermined principal amount as set forth in the currency swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest rate to USD or applying fixed interest rate to SGD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest.

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

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

Thus, there could be hedge ineffectiveness arising from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction.

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

 

  3)

Hedges of Net Investment in Foreign Operations

Foreign currency exposure arises from the Group’s net investments in Woori America Bank, Woori Bank(Cambodia) PLC and Hong Kong Woori Investment Bank, and overseas branches, which use USD as their functional currency. The risk arises from fluctuations in the spot exchange rate between USD and KRW. This may result in different net investment amounts.

The risk hedged in the net investment hedging is the volatility of KRW against USD, which may reduce the carrying amount of the Group’s net investments in Woori America Bank, Woori Bank(Cambodia) PLC and Hong Kong Woori Investment Bank.

A portion of the Group’s net investments in Woori America Bank, Woori Bank(Cambodia) PLC and Hong Kong Woori Investment Bank, and overseas branches are hedged in USD denominated foreign currency bonds(Carrying amount as of March 31, 2024: USD 863,959,317) and mitigate foreign exchange risk arising from the net assets of subsidiaries.

The bonds were designated as a hedging instrument for changes in the value of net investment resulting from fluctuations in the USD/KRW spot exchange rate.

To assess the effectiveness of the hedging instrument, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing (offsetting) changes in the carrying amount of the liability due to changes in the spot exchange rate with changes. The Group’s policy is to hedge the net investment only within the principal range of the liability.

 

- 113 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

The nominal amount of the hedging instrument is as follows (Unit: USD, AUD, EUR, and Korean Won in millions):

 

     March 31, 2024  
     1 year or less      1 year to 5 years      More than 5
years
     Total  

Fair value hedge

 

Interest rate risk

           

Interest rate swap (USD)

     1,025,000,000        2,650,000,000        —         3,675,000,000  

Interest rate swap (KRW)

     240,000        —         130,000        370,000  

Cash flow hedge

           

Interest rate risk

           

Interest rate swap (KRW)

     —         140,000        —         140,000  

Foreign currencies translation risk and interest rate risk

           

Currency swap (USD)

     —         470,000,000        —         470,000,000  

Foreign currencies translation risk

           

Currency swap (USD)

     —         100,000,000        —         100,000,000  

Currency swap (EUR)

     —         194,780,000        —         194,780,000  

Hedges of net investment in foreign operations

           

Exchange risk

           

Foreign currency bond (USD)

     400,000,000        463,959,317        —         863,959,317  
     December 31, 2023  
     1 year or less      1 year to 5 years      More than 5
years
     Total  

Fair value hedge

 

Interest rate risk

           

Interest rate swap (USD)

     1,000,000,000        1,975,000,000        —         2,975,000,000  

Interest rate swap (KRW)

     240,000        —         20,000        260,000  

Cash flow hedge

           

Interest rate risk

           

Interest rate swap (KRW)

     —         140,000        —         140,000  

Foreign currencies translation risk and interest rate risk

           

Currency swap (USD)

     —         270,000,000        —         270,000,000  

Foreign currencies translation risk

           

Currency swap (USD)

     —         100,000,000        —         100,000,000  

Currency swap (EUR)

     —         194,780,000        —         194,780,000  

Hedges of net investment in foreign operations

           

Exchange risk

           

Foreign currency bond (USD)

     400,000,000        463,959,317        —         863,959,317  

 

- 114 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(4)

The average interest rate and average currency rate of the hedging instrument are as follows:

 

    

March 31, 2024

    

Average interest rate and average exchange rate

Fair value hedge

  

Interest rate risk

  

Interest rate swap (USD)

   Fixed 3.82% receipt and (C.SOFR) + 1.37% paid

Interest rate swap (KRW)

   Fixed 4.21% receipt and CD 3M paid

Cash flow hedge

  

Interest rate risk

  

Interest rate swap (KRW)

   KRW CMS 5Y+0.46% receipt, 3.65% paid

Foreign currencies translation risk and interest rate risk

  

Currency swap (USD)

   USD 1M SOFR+1.12% receipt, KRW 4.37% paid, USD/KRW = 1,293.97

Foreign currencies translation risk

  

Currency swap (USD)

   USD 1.75% receipt, KRW 1.63% paid, USD/KRW = 1,138.50

Currency swap (EUR)

   EUR 1.98% receipt, KRW 3.40% paid, EUR/KRW = 1,344.08

Hedges of net investment

  

Exchanging rate risk

  

Foreign currency denominated debentures(USD/KRW)

   1,328.23
    

December 31, 2023

    

Average interest rate and average exchange rate

Fair value hedge

  

Interest rate risk

  

Interest rate swap (USD)

   Fixed 3.60% receipt and (C.SOFR) + 1.47% paid

Interest rate swap (KRW)

   Fixed 4.13% receipt and CD 3M paid

Cash flow hedge

  

Interest rate risk

  

Interest rate swap (KRW)

   KRW CMS 5Y+0.46% receipt, 3.65% paid

Foreign currencies translation risk and interest rate risk

  

Currency swap (USD)

   USD 1M SOFR+1.12% receipt, KRW 4.37% paid, USD/KRW = 1,293.97

Foreign currencies translation risk

  

Currency swap (USD)

   USD 1.75% receipt, KRW 1.63% paid, USD/KRW = 1,138.50

Currency swap (EUR)

   EUR 1.98% receipt, KRW 3.40% paid, EUR/KRW = 1,344.08

Hedges of net investment

  

Exchanging rate risk

  

Foreign currency denominated debentures(USD/KRW)

   1,306.12

 

- 115 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(5)

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

 

     March 31, 2024  
     Nominal amount of
the hedging
instrument
     Carrying amount of the
hedging instrument
    

Line item in the
statement of financial
position where the
hedging instrument is
located

   Changing in fair
value used for
calculating hedge
ineffectiveness
 
     Assets      Liabilities  

Fair value hedge

              

Interest rate risk

              

Interest rate Swap(USD)

     3,675,000,000        7,383        182,034     

Derivative assets

(designated for hedging)

Derivative liabilities

(designated for hedging)

     (34,377

Interest rate Swap(KRW)

     370,000           

Cash flow hedge

              

Interest rate risk

              

Interest rate swap(KRW)

     140,000        54        —      

Derivative assets

(designated for hedging)

     446  

Foreign currency translation risk and interest rate risk

              

Currency swap(USD)

     470,000,000        26,094        3,520     

Derivative assets

(designated for hedging)

Derivative liabilities

(designated for hedging)

     29,825  

Foreign currency translation risk

              

Currency swap(USD)

     100,000,000        16,320        —      

Derivative assets

(designated for hedging)

     4,933  

Currency swap(EUR)

     194,780,000        12,986        —      

Derivative assets

(designated for hedging)

     4,077  

Hedges of net investment in foreign operations

              

Exchange rate risk

              

Foreign currency bond(USD)

     863,959,317        —         1,163,580      Foreign currency bond      (49,576
     December 31, 2023  
     Nominal amounts of
the hedging
instrument
     Carrying amount of the
hedging instrument
    

Line item in the
statement of financial
position where the
hedging instrument is
located

   Changing in fair
value used for
calculating hedge
ineffectiveness
 
     Assets      Liabilities  

Fair value hedge

              

Interest rate risk

              

Interest rate Swap(USD)

     2,975,000,000        698        135,263     

Derivative assets

(designated for hedging)

     55,651  

Interest rate Swap(KRW)

     260,000  

Cash flow hedge

              

Interest rate risk

              

Interest rate swap(KRW)

     140,000        —         512     

Derivative liabilities

(designated for hedging)

     (2,433

Foreign currency translation risk and interest rate risk

              

Currency swap(USD)

     270,000,000        7,356        17,232     

Derivative assets

(designated for hedging)

Derivative liabilities

(designated for hedging)

     (913

Foreign currency translation risk

              

Currency swap(USD)

     100,000,000        10,956        —      

Derivative assets

(designated for hedging)

     (5,644

Currency swap(EUR)

     194,780,000        7,698        —      

Derivative assets

(designated for hedging)

     19,063  

Hedges of net investment in foreign operations

              

Exchange rate risk

              

Foreign currency bond(USD)

     863,959,317        —         1,113,989      Foreign currency bond      (19,088

 

- 116 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(6)

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

 

     March 31, 2024  
     Carrying amount of
the hedged item
     Accumulated amount of
fair value hedge
adjustments on the
hedged item included
in the carrying amount
of the hedged item
     Line item in the
statement of financial
position in which the
hedged item is
included
     Changing in
fair value used
for calculating
hedge
ineffectiveness
    Cash flow
hedge
reserve
(*2)
 
     Assets      Liabilities      Assets      Liabilities  

Fair value hedge

                   

Interest rate risk

                   

Debentures(*1)

     —         5,122,554        —         180,270        Debentures        30,943       —   

Cash flow hedge

                   

Interest rate risk

                   

Debentures

     —         179,955        —         —         Debentures        (447     40  

Foreign currencies translation risk and interest rate risk

                   

Debentures

     —         362,091        —         —         Debentures        (29,825     9,836  

Foreign currencies translation risk

                   

Debentures

     —         417,039        —         —         Debentures        (9,010     (24,719

Hedges of net investment in foreign operations Exchange rate risk

                   

Foreign operations net asset

     —         1,163,580        —         —        
Foreign operations
net asset
 
 
     49,576       (71,238

 

(*1)

The accumulated profit on debentures on foreign currency amounted to 179,130 million won, and the accumulated loss on debentures on local currency amounted to 1,140 million won, as of March 31, 2024.

(*2)

After tax amount

 

     December 31, 2023  
     Carrying amount of
the hedged item
     Accumulated amount of
fair value hedge
adjustments on the
hedged item included
in the carrying amount
of the hedged item
     Line item in
the statement
of financial
position in
which the
hedged item
is included
     Changing in
fair value used
for calculating
hedge
ineffectiveness
    Cash flow
hedge
reserve
(*2)
 
     Assets      Liabilities      Assets      Liabilities  

Fair value hedge

                   

Interest rate risk

                   

Debentures(*1)

     —         3,943,224        —         142,902        Debentures        (58,306     —   

Cash flow hedge

                   

Interest rate risk

                   

Debentures

     —         179,945        —         —         Debentures        2,433       25  

Foreign currencies translation risk and interest rate risk

                   

Debentures

     —         346,388        —         —         Debentures        22,914       (8,819

Foreign currencies translation risk

                   

Debentures

     —         406,059        —         —         Debentures        (13,419     (11,416

Hedges of net investment in foreign operations Exchange rate risk

                   

Foreign operations net asset

     —         1,113,989        —         —        
Foreign operations
net asset
 
 
     19,088       (34,750

 

- 117 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(*1)

The accumulated profit on debentures on foreign currency amounted to 141,818 million won, and the accumulated loss on debentures on local currency amounted to 1,084 million won, as of December 31, 2023.

(*2)

After tax amount

 

(7)

Amounts recognized in profit or loss due to the ineffective portion of fair value hedges are as follows (Unit: Korean Won in millions):

 

            For the three-month period ended March 31, 2024
            Hedge ineffectiveness
recognized in profit or
loss
   

Line item in the profit or loss that includes
hedge ineffectiveness

Fair value hedge

     Interest rate risk        (3,434   Other net operating income(expense)
            For the three-month period ended March 31, 2023
            Hedge ineffectiveness
recognized in profit or
loss
   

Line item in the profit or loss that includes
hedge ineffectiveness

Fair value hedge

     Interest rate risk        (4,253   Other net operating income(expense)

 

(8)

Reclassification of profit or loss from other comprehensive income and equity related to cash flow hedges are as follows (Unit: Korean Won in millions):

 

          For the three-month period ended March 31, 2024
          Changes in
the value
of hedging
instruments
recognized
in OCI
    Hedge
ineffectiveness
recognized in
profit or loss
     Changes in
the value
of foreign
basis
spread
recognized
in OCI
    Line item recognized
in the profit or loss
   Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss
    Line item affected in
profit or loss due to
reclassification

Cash flow hedge

   Interest rate risk      446       —         —      Other net
operating
income
(expense)
     —      Other net
operating
income
(expense)
   Foreign currencies translation risk and interest rate risk      29,825       —         2,625     Other net
operating
income
(expense)
     (26,978   Other net
operating
income
(expense)
   Foreign currencies translation risk      9,010       —         1,641     Other net
operating
income
(expense)
     (10,871   Other net
operating
income
(expense)
          For the three-month period ended March 31, 2023
          Changes in
the value
of hedging
instruments
recognized
in OCI
    Hedge
ineffectiveness
recognized in
profit or loss
     Changes in
the value
of foreign
basis
spread
recognized
in OCI
    Line item recognized
in the profit or loss
   Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss
    Line item affected in
profit or loss due to
reclassification

Cash flow hedge

   Interest rate risk      (1,711     —         —      Other net
operating
income
(expense)
     —      Other net
operating
income
(expense)
   Foreign currencies translation risk and interest rate risk      21,002       —         (2,255   Other net
operating
income
(expense)
     (25,866   Other net
operating
income
(expense)
   Foreign currencies translation risk      15,972       —         2,343     Other net
operating
income
(expense)
     (20,269   Other net
operating
income
(expense)

 

- 118 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(9)

The amounts recognized in profit or loss and other comprehensive income related to the hedging of net investments in foreign operations are as follows (Unit: Korean Won in millions):

 

           March 31, 2024  
           Other comprehensive income     Profit or loss  
           Hedge gain or loss
recognized in other
comprehensive income
    Income tax
effect
     Sub-total     Hedge ineffectiveness
recognized in profit or
loss
     Line item
recognizing
ineffectiveness
 

Hedges of net investment in foreign operations

   
Foreign
exchange risk
 
 
     (49,576     13,088        (36,488     —         —   
           March 31, 2023  
           Other comprehensive income     Profit or loss  
           Hedge gain or loss
recognized in other
comprehensive income
    Income tax
effect
     Sub-total     Hedge ineffectiveness
recognized in profit or
loss
     Line item
recognizing
ineffectiveness
 

Hedges of net investment in foreign operations

   
Foreign
exchange risk
 
 
     (31,530     8,324        (23,205     —         —   

No amount was reclassified from reserve of hedges of net investment in foreign operations to profit or loss for the three-month periods ended March 31, 2024 and 2023.

 

25.

DEFERRED DAY 1 PROFITS OR LOSSES

Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31  
     2024      2023  

Beginning balance

     7,848        17,964  

Amounts recognized in losses

     (5,879      (3,428
  

 

 

    

 

 

 

Ending balance

     1,969        14,536  
  

 

 

    

 

 

 

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded the transaction price as at the time of acquisition, even though there are difference noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or losses as of March 31, 2024 and 2023.

 

26.

EQUITY

 

(1)

Details of equity as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Capital

     

Common stock capital

     3,802,676        3,802,676  

Hybrid securities

     4,010,141        3,611,129  

Capital surplus

     

Paid in capital in excess of par

     854,499        854,499  

Others

     73,161        81,064  
  

 

 

    

 

 

 

Sub-total

     927,660        935,563  
  

 

 

    

 

 

 

Capital adjustments

     

Treasury stocks

     (39,309      (39,348

Other adjustments (*1)

     (1,646,839      (1,648,535
  

 

 

    

 

 

 

Sub-total

     (1,686,148      (1,687,883
  

 

 

    

 

 

 

Accumulated other comprehensive income

     

 

- 119 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Gain (loss) on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

     446        -  

Financial assets at FVTOCI

     5,281        79,694  

Changes in capital due to equity method

     (3,794      3,471  

Gain (loss) on foreign currency translation of foreign operations

     139,373        15,579  

Gain (loss) on hedges of net investment in foreign operations

     (71,238      (34,750

Remeasurements of defined benefit plan

     (42,758      (24,262

Gain (loss) on valuation of cash flow hedge

     (15,125      (20,806
  

 

 

    

 

 

 

Sub-total

     12,185        18,926  
  

 

 

    

 

 

 

Retained earnings (*2) (*3)

     25,157,273        24,986,470  

Non-controlling interest (*4)

     1,700,556        1,730,609  
  

 

 

    

 

 

 

Total

     33,924,343        33,397,490  
  

 

 

    

 

 

 

 

(*1)

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

(*2)

The regulatory reserve for credit losses in retained earnings amounted to 2,392,542 million Won and 2,839,475 million Won as of March 31, 2024 and December 31, 2023, respectively in accordance with the relevant article.

(*3)

The earned surplus reserve in retained earnings amounted to 442,650 million Won and 300,190 million Won as of March 31, 2024 and December 31, 2023 in accordance with the Article 53 of the Financial Holding Company Act.

(*4)

The hybrid securities issued by Woori Bank amounting to 1,546,447 million Won and 1,546,447 million Won as of March 31, 2024 and December 31, 2023, respectively, are recognized as non-controlling interests. 11,263 million Won and 19,968 million Won of dividends for the hybrid securities issued by Woori Bank are allocated to net profit and loss of the non-controlling interests for the three-month periods ended March 31, 2024 and 2023, respectively.

 

(2)

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

 

     March 31, 2024      December 31, 2023  

Shares of common stock authorized

     4,000,000,000 Shares        4,000,000,000 Shares  
Par value      5,000 Won        5,000 Won  

Shares of common stock issued

     742,591,501 Shares        751,949,461 Shares  

Capital stock

     3,802,676 million Won        3,802,676 million Won  

 

(3)

Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):

 

     Issue date      Maturity      Interest rate (%)      March 31,
2024
     December 31,
2023
 

Securities in local currency

     2019-07-18        —         3.49        500,000        500,000  

Securities in local currency

     2019-10-11        —         3.32        500,000        500,000  

Securities in local currency

     2020-02-06        —         3.34        400,000        400,000  

Securities in local currency

     2020-06-12        —         3.23        300,000        300,000  

Securities in local currency

     2020-10-23        —         3.00        200,000        200,000  

Securities in local currency

     2021-04-08        —         3.15        200,000        200,000  

Securities in local currency

     2021-10-14        —         3.60        200,000        200,000  

Securities in local currency

     2022-02-17        —         4.10        300,000        300,000  

 

- 120 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Securities in local currency

     2022-07-28        —         4.99        300,000       300,000  

Securities in local currency

     2022-10-25        —         5.97        220,000       220,000  

Securities in local currency

     2023-02-10        —         4.65        300,000       300,000  

Securities in local currency

     2023-09-07        —         5.04        200,000       200,000  

Securities in local currency

     2024-02-07        —         4.49        400,000       —   

Issuance cost

 

     (9,859     (8,871
           

 

 

   

 

 

 

Total

 

     4,010,141       3,611,129  
           

 

 

   

 

 

 

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

 

(4)

Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Beginning
balance
    Increase
(decrease) (*)
    Reclassification
adjustments
    Income tax
effect
    Ending
balance
 

Net gain (loss) on valuation of financial assets at FVTOCI

     79,694       (83,308     (21,538     30,433       5,281  

Net gain (loss) on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

     —        606       —        (160     446  

Changes in capital due to equity method

     3,471       (9,948     —        2,683       (3,794

Gain (loss) on foreign currency translation of foreign operations

     15,579       128,454       —        (4,660     139,373  

Gain (loss) on hedges of net investment in foreign operations

     (34,750     (49,576     —        13,088       (71,238

Remeasurement gain (loss) related to defined benefit plan

     (24,262     (25,119     —        6,623       (42,758

Gain (loss) on valuation of cash flow hedge

     (20,806     5,939       (239     (19     (15,125
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     18,926       (32,952     (21,777     47,988       12,185  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*)

The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income are changes due to the period evaluation, and the reclassification adjustments amounting to 491 million Won are due to disposal of equity securities during the period.

 

     For the three-month period ended March 31, 2023  
     Beginning
balance
    Increase
(decrease) (*)
    Reclassification
adjustments
    Income tax
effect
    Ending
balance
 

Net gain (loss) on valuation of financial assets at FVTOCI

     (645,731     431,221       (332     (113,539     (328,381

Changes in capital due to equity method

     475       7,475       —        (2,337     5,613  

Gain (loss) on foreign currency translation of foreign operations

     (24,202     168,793       —        (4,974     139,617  

Gain (loss) on hedges of net investment in foreign operations

     (20,701     (31,530     —        8,324       (43,907

Remeasurement gain (loss) related to defined benefit plan

     55,235       (127,579     —        33,725       (38,619

Gain (loss) on valuation of cash flow hedge

     (4,282     (10,535     (256     459       (14,614
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     (639,206     437,845       (588     (78,342     (280,291
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*)

The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income and changes in capital due to equity method are changes due to the period evaluation, and the

 

- 121 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

reclassification adjustments amounting to (145) million Won and 50 million Won are due to disposal of equity securities and changes in capital due to equity method, respectively during the period.

 

(5)

Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Group calculates and discloses the regulatory reserve for credit loss.

 

1)

Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Beginning balance

     2,392,542        2,839,475  

Planned provision of regulatory reserve (reversal) for credit loss

     55,958        (446,933
  

 

 

    

 

 

 

Ending balance

     2,448,500        2,392,542  
  

 

 

    

 

 

 

 

2)

Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

 

     For the three-month periods ended March 31  
     2024      2023  

Net income before regulatory reserve

     838,911        946,622  

Provision of regulatory reserve (reversal) for credit loss

     55,958        (55,213

Adjusted net income after the provision of regulatory reserve

     782,953        1,001,835  

Dividends to hybrid securities

     (35,259      (30,414

Adjusted net income after regulatory reserve and dividends to hybrid securities

     747,694        971,421  

Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)

     1,001        1,335  

 

(6)

Changes in treasury stocks for the three-month periods ended March 31, 2024 are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Beginning
balance
     Acquisition      Disposal etc.      Ending
balance
 

Number of shares

     3,427,497        9,359,729        (9,363,295      3,423,931  

Carrying value

     39,348        136,711        (136,750      39,309  

 

     For the three-month period ended March 31, 2023  
     Beginning
balance
     Acquisition      Disposal
etc.
     Ending
balance
 

Number of shares

     343,991        —         —         343,991  

Carrying value

     3,819        —         —         3,819  

 

- 122 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

27.

DIVIDENDS

 

(1)

Dividends per share and the total dividends for the fiscal year ending December 31, 2023 were 640 Won and 481,213 million Won, respectively, and the dividends were approved at the regular general shareholders’ meeting held on March 22, 2024 and fixed record date as February 29, 2024. Dividends were paid in April 2024.

 

28.

NET INTEREST INCOME

 

(1)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Financial assets at FVTPL

     57,653        43,975  

Financial assets at FVTOCI

     304,500        208,248  

Financial assets at amortized cost:

     

Securities at amortized cost

     174,404        205,206  

Loans and other financial assets at amortized cost:

     

Interest on due from banks

     166,700        131,147  

Interest on loans

     4,741,811        4,323,140  

Interest of other receivables

     24,433        17,422  
  

 

 

    

 

 

 

Subtotal

     4,932,944        4,471,709  
  

 

 

    

 

 

 

Total

     5,469,501        4,929,138  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Interest on deposits due to customers

     2,371,219        1,998,250  

Interest on borrowings

     366,565        287,463  

Interest on debentures

     428,781        334,255  

Other interest expense

     101,824        87,981  

Interest on lease liabilities

     2,909        2,368  
  

 

 

    

 

 

 

Total

     3,271,298        2,710,317  
  

 

 

    

 

 

 

 

- 123 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

29.

NET FEES AND COMMISSIONS INCOME

 

(1)

Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Fees and commission received for brokerage

     48,859        41,664  

Fees and commission received related to credit

     44,489        44,755  

Fees and commission received for electronic finance

     31,534        31,123  

Fees and commission received on foreign exchange handling

     14,129        13,603  

Fees and commission received on foreign exchange

     27,649        19,840  

Fees and commission received for guarantee

     23,768        19,365  

Fees and commission received on credit card

     150,709        149,191  

Fees and commission received on securities business

     14,826        14,894  

Fees and commission from trust management

     60,715        64,529  

Fees and commission received on credit information

     2,615        2,475  

Fees and commission received related to lease

     205,707        163,736  

Other fees

     64,674        54,087  
  

 

 

    

 

 

 

Total

     689,674        619,262  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Fees and commissions paid

     75,763        78,993  

Credit card commission

     107,140        118,141  

Securities business commission

     320        344  

Others

     3,520        3,690  
  

 

 

    

 

 

 

Total

     186,743        201,168  
  

 

 

    

 

 

 

 

30.

DIVIDEND INCOME

 

(1)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Dividend income related to financial assets at FVTPL

     54,365        37,765  

Dividend income related to financial assets at FVTOCI

     12,417        11,315  
  

 

 

    

 

 

 

Total

     66,782        49,080  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Dividend income recognized from assets held:

     

Equity securities

     12,417        11,315  

 

- 124 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

31.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE

 

(1)

Details of gains or losses related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Gain on financial instruments at fair value through profit or loss

     516,052        238,498  
  

 

 

    

 

 

 

Loss on credit risk fluctuation of financial instuments designated to be measured at FVTPL

     (445      —   
  

 

 

    

 

 

 

 

(2)

Details of net gain or loss on financial instruments at fair value through profit or loss and financial instruments held for trading are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024     2023  

Financial assets at FVTPL

   Securities    Gain on transactions and valuation      157,959       289,932  
      Loss on transactions and valuation      (268,576     (68,583
        

 

 

   

 

 

 
     

Sub-total

     (110,617     221,349  
        

 

 

   

 

 

 
   Loans    Gain on transactions and valuation      1,513       3,852  
      Loss on transactions and valuation      (755     (1,700
        

 

 

   

 

 

 
     

Sub-total

     758       2,152  
        

 

 

   

 

 

 
   Other financial assets    Gain on transactions and valuation      3,723       3,184  
      Loss on transactions and valuation      (3,336     (5,214
        

 

 

   

 

 

 
     

Sub-total

     387       (2,030
        

 

 

   

 

 

 
     

Sub-total

     (109,472     221,471  
        

 

 

   

 

 

 

Derivatives (Held for trading)

   Interest rates derivatives    Gain on transactions and valuation      796,469       1,295,563  
      Loss on transactions and valuation      (517,952     (1,450,186
        

 

 

   

 

 

 
     

Sub-total

     278,517       (154,623
        

 

 

   

 

 

 
   Currency derivatives    Gain on transactions and valuation      4,399,697       3,588,500  
      Loss on transactions and valuation      (4,032,644     (3,408,720
        

 

 

   

 

 

 
     

Sub-total

     367,053       179,780  
        

 

 

   

 

 

 
   Equity derivatives    Gain on transactions and valuation      958,469       1,088,009  
      Loss on transactions and valuation      (978,520     (1,096,108
        

 

 

   

 

 

 
     

Sub-total

     (20,051     (8,099
        

 

 

   

 

 

 
   Other derivatives    Gain on transactions and valuation      5       —   
      Loss on transactions and valuation      —        (31
        

 

 

   

 

 

 
     

Sub-total

     5       (31
        

 

 

   

 

 

 
     

Sub-total

     625,524       17,027  
        

 

 

   

 

 

 

Net, total

     516,052       238,498  
  

 

 

   

 

 

 

 

(3)

Details of gains or losses on credit risk fluctuation of financial instruments designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024     2023  

Gain (Loss) on deposits

    
  

 

 

   

 

 

 

Gain (Loss) on fixed deposits

          (445 )           —   
  

 

 

   

 

 

 

 

- 125 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

32.

NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in millions) :

 

     For the three-month periods ended March 31  
     2024      2023  

Gain (Loss) on redemption of securities

     —         38  

Gain (Loss) on transactions of securities

     20,476        293  
  

 

 

    

 

 

 

Total

     20,476            331  
  

 

 

    

 

 

 

 

33.

REVERSAL OF (PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Reversal of (provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Reversal(provision) due to credit loss on financial assets measured at FVTOCI

     259        (413

Reversal(provision) for impairment loss due to credit loss on securities at amortized cost

     528        124  

Reversal(provision) for impairment loss due to credit loss on loan and other financial assets at amortized cost

     (363,428      (262,400

Reversal(provision) for guarantees

     (2,447      2,399  

Reversal(provision) for unused loan commitment

     (1,424      (1,283
  

 

 

    

 

 

 

Total

       (366,512      (261,573
  

 

 

    

 

 

 

 

- 126 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

34.

GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME (EXPENSES)

 

(1)

Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Employee benefits

  

Short-term employee benefits

   Salaries      434,391        418,624  
      Employee fringe benefits      163,399        151,527  
   Share based payment      8,756        (369
   Retirement benefit service costs      33,471        29,401  
   Termination      (3,503      6,488  
        

 

 

    

 

 

 
  

Subtotal

     636,514        605,671  
        

 

 

    

 

 

 

Depreciation and amortization

     129,884        131,639  

Other general and administrative expenses

   Rent      31,276        28,794  
   Taxes and public dues      54,154        48,025  
   Service charges      60,688        58,938  
   Computer and IT related      29,000        30,696  
   Telephone and communication      22,002        20,905  
   Operating promotion      12,218        12,271  
   Advertising      24,088        15,398  
   Printing      1,282        1,281  
   Traveling      3,007        3,058  
   Supplies      2,253        1,946  
   Insurance premium      3,697        3,693  
   Maintenance      6,048        6,051  
   Water, light, and heating      5,626        5,849  
   Vehicle maintenance      3,440        3,241  
   Others (*)      6,490        59,524  
        

 

 

    

 

 

 
  

Sub-total

     265,269         299,670   
        

 

 

    

 

 

 
  

Total

         1,031,667        1,036,980  
        

 

 

    

 

 

 

 

(*)

In-house welfare fund contributions amounted to 40,047 million Won as of March 31, 2023.

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Gains on transactions of foreign exchange

     68,254        430,075  

Gains related to derivatives (designated for hedging)

     46,788        69,880  

Gains on fair value hedged items

     39,890        5,640  

Others

     72,721        90,111  
  

 

 

    

 

 

 

Total

       227,653         595,706   
  

 

 

    

 

 

 

 

- 127 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Losses on transactions of foreign exchange

     469,650        582,765  

KDIC deposit insurance premium

     120,868        112,060  

Contribution to miscellaneous funds

     134,508        103,891  

Losses related to derivatives (Designated for hedging)

     43,316        5,409  

Losses on fair value hedged items

     8,948        28,206  

Others (*)

     251,613        201,952  
  

 

 

    

 

 

 

Total

     1,028,903         1,034,283   
  

 

 

    

 

 

 

 

(*)

Other expense includes 6,547 million Won and 4,458 million Won for intangible asset amortization cost and 135,782 million Won and 108,733 million Won for lease depreciation cost for the years ended March 31, 2024 and 2023, respectively.

 

(4)

Share-based payment

Details of performance condition share-based payment granted to executives as of March 31, 2024 and December 31, 2023 are as follows.

 

  1)

Performance condition share-based payment

 

Subject to

   Shares granted for the year 2020

Type of payment

   Cash-settled

Vesting period

   January 1, 2020 ~ December 31, 2023

Date of payment

   2024-01-01

Fair value (*1)

   12,885 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.25%

Expected maturity date

   0 year

Number of shares remaining

   As of March 31, 2024    755,073 shares
   As of December 31, 2023    944,343 shares

Number of shares granted (*2)

   As of March 31, 2024    755,073 shares
   As of December 31, 2023    944,343 shares

Subject to

   Shares granted for the year 2021

Type of payment

   Cash-settled

Vesting period

   January 1, 2021 ~ December 31, 2024

Date of payment

   2025-01-01

Fair value (*1)

   14,059 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   0.75 year

Number of shares remaining

   As of March 31, 2024    1,105,515 shares
   As of December 31, 2023    1,105,515 shares

Number of shares granted (*2)

   As of March 31, 2024    1,105,515 shares
   As of December 31, 2023    1,105,515 shares

 

- 128 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

Subject to

   Shares granted for the year 2022

Type of payment

   Cash-settled

Vesting period

   January 1, 2022 ~ December 31, 2025

Date of payment

   2026-01-01

Fair value (*1)

   13,177 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   1.75 year

Number of shares remaining

   As of March 31, 2024    968,119 shares
   As of December 31, 2023    968,119 shares

Number of shares granted (*2)

   As of March 31, 2024    968,119 shares
   As of December 31, 2023    968,119 shares

Subject to

   Shares granted for the year 2023

Type of payment

   Cash-settled

Vesting period

   January 1, 2023 ~ December 31, 2026

Date of payment

   2027-01-01

Fair value (*1)

   12,351 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   2.75 years

Number of shares remaining

   As of March 31, 2024    924,077 shares
   As of December 31, 2023    924,077 shares

Number of shares granted (*2)

   As of March 31, 2024    924,077 shares
   As of December 31, 2023    924,077 shares

Subject to

   Shares granted for the year 2024

Type of payment

   Cash-settled

Vesting period

   January 1, 2024 ~ December 31, 2027

Date of payment

   2028-01-01

Fair value (*1)

   11,577 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   3.75 years

Number of shares remaining

   As of March 31, 2024    354,439 shares
   As of December 31, 2023   

Number of shares granted (*2)

   As of March 31, 2024    354,439 shares
   As of December 31, 2023   

 

(*1)

As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated to measure the liability according to the Black Scholes model based on the base price at the time of each settlement.

(*2)

It is a system in which the amount of stock payable is determined at the beginning, and the payment rate is determined in accordance with the degree of achievement of the pre-set performance target. Performance is evaluated by long-term performance indicators such as relative shareholder return, net profit, return on equity (ROE), non-performing loan ratio, and job performance.

 

  2)

The Group accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of March 31, 2024 and December 31, 2023, the carrying amount of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 43,816 million Won and 46,741 million Won, respectively, including the carrying amount of liabilities related to key management of 18,203 million Won and 19,924 million Won, respectively.

 

- 129 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

35.

NON-OPERATING INCOME (EXPENSES)

 

(1)

Details of gains or losses on valuation of investments in joint ventures and associates are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Gains on valuation of investments in joint ventures and associates

     14,849          10,021  

Losses on valuation of investments in joint ventures and associates

     (9,340      (2,878
  

 

 

    

 

 

 

Total

       5,509        7,143  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Other non-operating incomes

      11,746          21,573  

Other non-operating expenses

     (23,987      (10,394
  

 

 

    

 

 

 

Total

     (12,241      11,179  
  

 

 

    

 

 

 

 

(3)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Rental fee income

     4,381        4,432  

Gains on disposal of investments in joint ventures and associates

     312        —   

Gains on disposal of Premises and equipment, intangible assets and other assets

     299        237  

Reversal of impairment losses of Premises and equipment, intangible assets and other assets

     20        137  

Others (*)

     6,734         16,767   
  

 

 

    

 

 

 

Total

      11,746          21,573  
  

 

 

    

 

 

 

 

(*)

‘Others’ for the three-month period ended March 31, 2023 include 577 million Won of other special gain related to other provisions.

 

(4)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Depreciation on investment properties

     3,779        1,149  

Operating expenses on investment properties

     611        478  

Losses on disposal of investments in joint ventures and associates

     9        —   

Losses on disposal of Premises and equipment, intangible assets and other assets

     843        439  

Impairment losses of Premises and equipment, intangible assets and other assets

     1,271        —   

Donation

     2,173        1,566  

Others (*)

     15,301        6,762  
  

 

 

    

 

 

 

Total

      23,987           10,394   
  

 

 

    

 

 

 

 

(*)

Other special losses related to other provisions for the three-month periods ended March 31, 2024 and 2023 are 10,003 million Won and 199 million Won, respectively.

 

- 130 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

36.

INCOME TAX EXPENSE

 

(1)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Current tax expense:

     

Current tax expense with respect to the current period

     190,104        144,061  

Adjustments recognized in the current period in relation to the tax expense of prior periods

     (7,092      (3,997

Income tax expense directly attributable to other equity

     13,088        8,324  
  

 

 

    

 

 

 

Sub-total

     196,100        148,388  
  

 

 

    

 

 

 

Deferred tax expense

     

Change in deferred tax assets (liabilities) due to temporary differences

     73,589        268,574  

Income tax expense (income) directly attributable to equity

     34,900        (93,350
  

 

 

    

 

 

 

Others

     457        87  
  

 

 

    

 

 

 

Sub-total

     108,946        175,311  
  

 

 

    

 

 

 

Income tax expense

     305,046        323,699  
  

 

 

    

 

 

 

Income tax expense was recognized based on the best estimate of the weighted average annual effective tax rate expected for the interim period. The weighted average annual effective tax rate for the March 31, 2024, is 26.7% (The weighted average annual effective tax rate for the March 31, 2023, is 25.5%).

 

- 131 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

37.

EARNINGS PER SHARE (“EPS”)

 

(1)

Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

 

     For the three-month periods ended March 31  
     2024      2023  

Net income attributable to shareholders

     824,001        913,686  

Dividends to hybrid securities

     (35,259      (30,414

Net income attributable to common shareholders

     788,742        883,272  

Weighted average number of common shares outstanding (Unit: million shares)

     747        728  

Basic EPS (Unit: Korean Won)

     1,056        1,214  

 

(2)

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

 

     For the year ended March 31, 2024  
     Number of
shares
     Accumulated number
of shares outstanding
during period
 

Common shares issued at the beginning of the period

     751,949,461        68,427,400,951  

Treasury stocks

     (3,427,497      (311,902,227

Acquisition and retirement of treasury stock etc.

     (9,359,729      (168,541,358

Disposal of treasury stock

     5,335        352,512  
     

 

 

 

Sub-total (①)

        67,947,309,878  
     

 

 

 

Weighted average number of common shares outstanding (②=(①/91))

 

     746,673,735  
     

 

 

 

 

     For the year ended March 31, 2023  
     Number of
shares
     Accumulated number
of shares outstanding
during period
 

Common shares issued at the beginning of the period

     728,060,549        65,525,449,410  

Treasury stocks

     (343,991      (30,959,190
     

 

 

 

Sub-total (①)

 

     65,494,490,220  
     

 

 

 

Weighted average number of common shares outstanding (②=(①/90))

 

     727,716,558  
     

 

 

 

Diluted EPS is equal to basic EPS because there is no dilution effect for the three-month periods ended 31, 2024 and 2023.

 

- 132 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

38.

CONTINGENT LIABILITIES AND COMMITMENTS

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Confirmed guarantees

     

Guarantee for loans

     60,790        58,205  

Acceptances

     415,592        467,964  

Guarantees in acceptances of imported goods

     84,798        74,916  

Other confirmed guarantees

     8,962,816        8,050,815  
  

 

 

    

 

 

 

Sub-total

     9,523,996        8,651,900  
  

 

 

    

 

 

 

Unconfirmed guarantees

     

Local letters of credit

     239,201        161,608  

Letters of credit

     2,734,785        2,873,350  

Other unconfirmed guarantees

     1,381,154        1,516,585  
  

 

 

    

 

 

 

Sub-total

     4,355,140        4,551,543  
  

 

 

    

 

 

 

Commercial paper purchase commitments and others

     608,178        589,858  
  

 

 

    

 

 

 

Total (*)

     14,487,314        13,793,301  
  

 

 

    

 

 

 

 

(*)

Includes financial guarantees of 3,992,397 million won and 3,661,656 million won as of March 31, 2024 and December 31, 2023, respectively.

 

(2)

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

 

     March 31, 2024      December 31, 2023  

Loan commitments

     132,213,536        126,829,192  

Other commitments (*)

     7,981,014        7,339,952  

 

(*)

As of March 31, 2024 and December 31, 2023, the amount of unsecured bills (purchase bills sales) and discounts on electronic short-term bond sales (purchase) are 3,124,265 million won and 2,485,853 million won, respectively.

 

(3)

Litigation case

Litigation case that the key Group is a defendant in a lawsuit pending (excluding fraud lawsuits and those lawsuits that are filed only to extend the statute of limitation, etc.) are 654 cases (litigation value of 498,258 million Won) and 603 cases (litigation value of 513,863 million Won) as of March 31, 2024 and December 31, 2023 respectively, and provisions for litigations are 27,404 million Won and 28,581 million Won.

 

- 133 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(4)

Other commitments

 

  1)

As of March 31, 2024, Woori FIS Co., Ltd, a subsidiary, has been provided with a payment guarantee limit of 6,457 million Won in relation to bid guarantees and contract/defect guarantees from the Korean Software Financial Cooperative, but there is no committed amount. In relation to the guarantee, the capital contributions to the Korean Software Financial Cooperative are provided as collateral. In addition, as of December 31, 2023, Seoul Guarantee Insurance Company is providing a payment guarantee of 374 million Won related to the return of subsidy to the daycare center at work.

 

  2)

As of March 31, 2024, Woori FIS Co., Ltd, a subsidiary agreed with Shinhan Bank for short-term borrowings of 20 billion Won for one year (2023.11.16.~2024.11.16.), and there is no outstanding balance of short-term borrowings as of March 31, 2024.

 

  3)

As of March 31, 2024, Woori Savings bank is provided with a guarantee of 1,635 million Won from Seoul Guarantee Insurance Company in relation to provisional attachment for recovery of loans, etc.

 

  4)

As of March 31, 2024, Woori Asset Trust, a subsidiary, has committed to fulfill responsibility for the completion of 36 projects, including a residential-commercial complex in U-dong, Haeundae-gu, Busan. Responsible completion type management land trust is a trust that bears the obligation of responsible completion when the construction company fails to fulfill the obligation of responsible completion, and the obligation to compensate losses to the lending financial institution if Woori Asset Trust fails to fulfill the obligation of responsible completion. As of March 31, 2024, the total amount of PF(Project Financing) loans from PF lending financial institutions invested in the responsible completion type management land trust business is 1,987,513 million Won. Although additional losses may occur in relation to these contracts for liability obligations, these effects were not reflected in the financial statements at the end of the current period because the possibility is not high and the amount of losses cannot be reliably estimated. Meanwhile, Woori Asset Trust Co., Ltd. has failed to fulfill the responsibility of the completion of 7 projects including the Okjeong Knowledge Industry Center in Yangju. The total amount of PF limit from PF lending financial institutions invested in projects is 315,000 million Won and the amount of PF loans is 197,068 million Won. Also, as of March 31, 2024, Woori Asset Trust may lend a trust account for a part of the total project cost in relation to 25 debt-type land trust contracts including Busan Haeundae Udong Beautique Terrace Hotel and responsible completion management land trust contracts in Gyeongseo-dong, Seo-gu, Incheon, and additional business sites in progress. The maximum loan amount (unused limit) is 112,734 million Won. Whether or not Woori Asset Trust lends a trust account in relation to the relevant businesses is not an unconditional payment obligation, and it is determined by considering overall matters such as the unique account and the fund balance plan of each trust business.

 

  5)

Pursuant to some contracts related to asset securitization, the Group utilizes various prerequisites as triggering events causing early redemption, limiting risks that investors bear due to change in asset quality. Breach of such triggering clause leads to an early redemption of the securitized bonds.

 

  6)

During the prior period, there was an investigation by Fair Trade Commission regarding Loan-To-Value ratio. The Group received the review report in January 2024, but cannot reasonably estimate its impact on consolidated interim financial statements.

 

- 134 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

39.

RELATED PARTY TRANSACTIONS

Related parties of the Group as of March 31, 2024 and December 31, 2023, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the three-month period ended March 31, 2024 and 2023 are as follows. Please refer to Note 12 for the details of joint ventures and associates.

 

(1)

Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

 

   

Related parties

  

Account title

   March 31, 2024      December 31, 2023  

Associates

 

W Service Networks Co., Ltd.

   Loans      62        108  
     Deposits due to customers      2,616        3,245  
     Accrued expenses      7        7  
     Other liabilities      52        100  
 

Korea Credit Bureau Co., Ltd.

   Loans      —         1  
     Deposits due to customers      756        771  
     Accrued expenses      1        1  
 

Korea Finance Security Co., Ltd.

   Loans      2,028        3,228  
     Loss allowance      (45      (71
     Deposits due to customers      11,394        1,323  
     Other liabilities      20        6  
 

LOTTE CARD Co. Ltd.

   Loans      13,468        12,209  
     Account receivables      23        31  
     Loss allowance      (28      (269
     Other assets      51        2  
     Deposits due to customers      75,658        62,587  
     Other liabilities      289        289  
 

K BANK Co., Ltd.

   Loans      36        54  
     Account receivables      15        13  
     Other assets      61        18  
     Other liabilities      154,751        214,135  
 

Others (*1)

   Loans      63,564        65,558  
     Loss allowance      (269      (61
     Other assets      48,103        47,828  
     Deposits due to customers      4,417        4,212  
     Other liabilities      1,295        992  

 

(*1)

Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership and etc., as of March 31, 2024 and December 31, 2023.

 

- 135 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(2)

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

 

              For the three-month period ended March 31  
   

Related parties

  

Account title

   2024      2023  

Associates

 

W Service Network Co., Ltd.

   Interest expenses      9        3  
    

Fees expenses

     136        120  
    

Other expenses

     280        477  
 

Korea Credit Bureau Co., Ltd.

  

Interest expenses

     —         9  
    

Fees expenses

     1,009        926  
    

Other expenses

     25        38  
 

Korea Finance Security Co., Ltd.

  

Interest income

     36        54  
    

Interest expenses

     1        1  
    

Provision(Reversal) of allowance for credit loss

     (13      (3
    

Other expenses

     7        9  
 

LOTTE CARD Co., Ltd.

  

Interest income

     231        7  
    

Fees income

     1,026        982  
    

Interest expenses

     902        1,268  
    

Provision(Reversal) of allowance for credit loss

     (241      143  
 

K BANK Co., Ltd.

  

Fees income

     38        78  
    

Fees expenses

     —         128  
 

Others (*)

  

Interest income

     198        183  
    

Fees income

     6,560        1,734  
    

Dividend income

     366        —   
    

Other income

     2,269        308  
    

Interest expenses

     3,679        2  
    

Other expenses

     623        —   
    

Provision(Reversal) of allowance for credit loss

     208        2  

 

(*)

Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership and etc., as of March 31, 2024 and 2023.

 

- 136 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(3)

Major loan transactions with related parties for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
    

Related parties

   Beginning
balance
     Loan      Collection      Others     Ending
balance (*)
 

Associates

   W Service Network Co., Ltd.      108        170        216        —        62  
   Korea Credit Bureau Co., Ltd.      1        —         1        —        —   
   Korea Finance Security Co., Ltd.      3,228        291        1,491        —        2,028  
   LOTTE CARD Co., Ltd.      12,209        13,306        12,209        162       13,468  
   K BANK Co., Ltd.      54        98        116        —        36  
   One Mortgage      15        54        55        —        14  
   ARAM CMC CO.LTD      41        —         —         —        41  
   Godo Kaisha Oceanos 1      38,121        —         —         (1,297     36,824  
   Woori Zip 1      11,317        —         —         (287     11,030  
   Woori Zip 2      16,063        —         —         (408     15,655  

 

(*)

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

 

     For the three-month period ended March 31, 2023  
    

Related parties

   Beginning
balance
     Loan      Collection      Others      Ending
balance (*)
 

Associates

   W Service Network Co., Ltd.      120        72        165        —         27  
   Korea Credit Bureau Co., Ltd.      2        1        2        —         1  
   Korea Finance Security Co., Ltd.      3,433        101        304        —         3,230  
   LOTTE CARD Co., Ltd.      50,000        12,599        50,000        —         12,599  
   K BANK Co., Ltd.      3        8        9        —         2  
   One Mortgage      —         94        73        —         21  
   Godo Kaisha Oceanos 1      39,814        —         —         1,180        40,994  
   Woori Zip 1      11,819        —         —         350        12,169  
   Woori Zip 2      16,776        —         —         497        17,273  
   Central Network Solutions Co., Ltd.      251        —         —         —         251  

 

(*)

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

 

- 137 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(4)

Details of changes in major deposits due to customers with related parties for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
    

Related parties

   Beginning
balance
     Increase      Decrease      Ending
balance (*)
 

Associates

   W Service Networks Co., Ltd      1,000        1,000        1,000        1,000  
   One Mortgage      600        300        600        300  

 

(*)

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

 

     For the three-month period ended March 31, 2023  
    

Related parties

   Beginning
balance
     Increase      Decrease      Ending
balance (*)
 

Associates

   W Service Networks Co., Ltd.      1,200        1,000        1,200        1,000  
   Partner One Value Up I Private Equity Fund      100        —         100        —   
   Korea Credit Bureau Co., Ltd.      3,000        —         3,000        —   

 

(*)

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

 

(5)

There are no major borrowing transactions with related parties for the three-month periods ended March 31, 2024 and 2023.

 

(6)

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

 

Warrantee

   March 31, 2024      December 31, 2023      Warranty

Korea Finance Security Co., Ltd.

     1,832        632      Unused loan commitment

Korea Credit Bureau Co., Ltd.

     35        34      Unused loan commitment

W Service Network Co., Ltd.

     118        72      Unused loan commitment

K BANK Co., Ltd.

     264        246      Unused loan commitment

LOTTE CARD Co. Ltd.

     498,400        498,400      Unused loan commitment

One Mortgage

     36        34      Unused loan commitment

As of March 31, 2024 and December 31, 2023, the recognized payment guarantee provisions are 308 million Won and 294 million Won, respectively, in relation to the guarantees provided to the related parties above.

 

- 138 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(7)

Amount of commitments with the related parties

 

Warrantee

   March 31, 2024      December 31, 2023      Warranty

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     4,664        4,664      Securities purchase
commitment

Woori Seoul Beltway Private Special Asset Fund No.1

     33,471        34,437      Securities purchase
commitment

Woori-Q Corporate Restructuring Private Equity Fund

     12,186        12,186      Securities purchase
commitment

JC Assurance No.2 Private Equity Fund

     1,351        1,351      Securities purchase
commitment

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     243        243      Securities purchase
commitment

BTS 2nd Private Equity Fund

     2,974        4,774      Securities purchase
commitment

STASSETS FUND III

     6,000        6,000      Securities purchase
commitment

Together Korea Government Private Securities Investment Trust No.3

     990,000        990,000      Securities purchase
commitment

NH Woori Newdeal Growth Alpha Private Equity Fund 1

     36,941        36,941      Securities purchase
commitment

Synaptic Future Growth Private Equity Fund 1

     5,641        4,389      Securities purchase
commitment

Woori Asset Global Partnership Fund No.5

     127,500        127,500      Securities purchase
commitment

 

(8)

Major investment and Recovery transactions

There are no major investment and recovery transactions with related parties for the three-month periods ended 2024 and 2023. Investment and recovery transactions of associates that are not treated as financial assets at fair value through profit or loss are described in Note 12.(2)

 

(9)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Short-term employee salaries

     5,581        5,337  

Retirement benefit service costs

     392        269  

Share-based compensation

     2,879        (62
  

 

 

    

 

 

 

Total

     8,852        5,544  
  

 

 

    

 

 

 

Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 3,487 million won and 3,932 million won, as of March 31, 2024 and December 31, 2023 respectively and with respect to the assets, the Group has not recognized any allowance nor related impairment loss due to credit losses. Also, liabilities from transaction with key management amount to 62,817 million won and 34,054 million won, respectively, as of March 31, 2024 and December 31, 2023.

 

- 139 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

40.

LEASES

 

(1)

Lessor

 

  1)

Finance lease

 

 

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

 

     March 31, 2024  
     Total investment in lease      Net investment in lease  

Within one year

     237,882        219,316  

After one year but within two years

     360,703        337,359  

After two years but within three years

     453,926        417,543  

After three years but within four years

     252,400        222,073  

After four years but within five years

     130,404        113,523  

After five years

     16        15  
  

 

 

    

 

 

 

Total

     1,435,331        1,309,829  
  

 

 

    

 

 

 

 

     December 31, 2023  
     Total investment in lease      Net investment in lease  

Within one year

     226,242        208,121  

After one year but within two years

     330,524        308,793  

After two years but within three years

     446,742        412,015  

After three years but within four years

     364,917        323,331  

After four years but within five years

     127,001        109,675  

After five years

     24        24  
  

 

 

    

 

 

 

Total

     1,495,450        1,361,959  
  

 

 

    

 

 

 

 

 

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

 

     March 31, 2024      December 31, 2023  

Total investment in lease

     1,435,331        1,495,450  

Net investment in lease

     1,309,829        1,361,959  

Present value of minimum lease payments

     1,309,829        1,361,959  

Present value of unguaranteed residual value

     —         —   
  

 

 

    

 

 

 

Unearned interest income

     125,502        133,491  
  

 

 

    

 

 

 

 

- 140 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

  2)

Operating lease

 

 

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

 

     March 31, 2024      December 31, 2023  

Prepaid lease assets

     53        20,538  

Operating lease assets

     

Acquisition cost

     4,403,748        4,199,535  

Accumulated depreciation

     (988,230      (913,609

Net carrying value

     3,415,518        3,285,926  
  

 

 

    

 

 

 

Total

     3,415,571        3,306,464  
  

 

 

    

 

 

 

 

 

The details of changes in operating lease assets as of March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024             March 31, 2023  

Beginning balance

     3,285,926           2,590,457  

Acquisition

     308,412           164,458  

Disposal

     (51,310         (50,527

Depreciation

     (135,782         (108,734

Others

     8,272           (3,856
  

 

 

       

 

 

 

Ending balance

     3,415,518           2,591,798  
  

 

 

       

 

 

 

 

 

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

 

     March 31, 2024      December 31, 2023  

Within one year

     784,774        748,283  

After one year but within two years

     703,588        681,591  

After two years but within three years

     519,940        517,967  

After three years but within four years

     281,341        286,677  

After four years but within five years

     119,145        121,621  
  

 

 

    

 

 

 

Total

     2,408,788        2,356,139  
  

 

 

    

 

 

 

 

 

There are no adjusted lease payments recognized as profit or loss for the three-month periods ended March 31, 2024 and 2023.

 

- 141 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

(2)

Lessee

 

1)

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

 

     March 31, 2024      December 31, 2023  

Lease payments

     

Within one year

     187,983        206,798  

After one year but within five years

     155,709        146,755  

After five years

     26,039        25,356  
  

 

 

    

 

 

 

Total

     369,731        378,909  
  

 

 

    

 

 

 

 

2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Total cash outflows from lease

      53,030         57,540  

 

3)

Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Lease payments for short-term leases

     88        2,769  

Lease payments for which the underlying asset is of low value

     321        351  
  

 

 

    

 

 

 

Total

        409          3,120  
  

 

 

    

 

 

 

Variable lease payments that were not included in the measurement of lease liabilities for the years ended March 31, 2024 and 2023 were 12,051 million Won and 6,627 million Won.

 

- 142 -


WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023

 

41.

EVENTS AFTER THE REPORTING PERIOD

 

(1)

On April 8, 2024, the Group acquired an additional 1.95% shares in Woori Asset Trust Co., Ltd., the subsidiary of the Group.

 

(2)

On April 26, 2024, the Group’s board of directors resolved to pay a quarterly dividend of 180 Won per share (total dividend of 133,657 million Won) with the record date set as March 31, 2024. Dividends were paid in May 2024.

 

(3)

On May 3, 2024, Woori Investment Bank Co., Ltd., a subsidiary of the Group, and Korea Foss Securities co., Ltd. signed a merger agreement. Once the merger process is completed through each company’s general shareholders’ meeting or resolution of board of directors and approval by the Financial Services Commission, the merged company will be incorporated as a subsidiary of the Group.

 

- 143 -

EX-99.2 3 d836792dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023


WOORI FINANCIAL GROUP INC.

 

     Page(s)  

Independent Auditor’s Review Report

     1-2  

Separate Interim Financial Statements

  

Separate Interim Statements of Financial Position

     4  

Separate Interim Statements of Comprehensive Income

     5  

Separate Interim Statements of Changes in Equity

     6  

Separate Interim Statements of Cash Flows

     7  

Notes to the Separate Interim Financial Statements

     8-44  

 


Independent Auditor’s Review Report

Based on a report originally issued in Korean

To the Board of Directors and Shareholders of Woori Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of Woori Financial Group Inc. (the “Company”), which comprise the separate interim statement of financial position as of March 31, 2024, the separate interim statement of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2024, and 2023 and notes, comprising of material accounting policy information and other explanatory information.

Management’s Responsibility

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

Auditor’s Review Responsibility

Our responsibility is to issue a report on these condensed separate interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements 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 separate interim financial statements referred to above do not present fairly, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

 

- 1 -


Other Matters

The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries.

The separate statement of financial position of the Company as of December 31, 2023, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and their report thereon, dated March 6, 2024, expressed an unqualified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2023, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

May 14, 2024

This report is effective as of May 14, 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 the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

 

- 2 -


WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH PERIODS

ENDED MARCH 31, 2024 AND 2023

The accompanying separate financial statements including all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Jong Yong Yim

President and Chief Executive Officer

Main Office Address: (Road Name Address) 51, Sogong-ro, Jung-gu, Seoul

(Phone Number) 02-2125-2000


WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023

 

    

March 31,

2024

   

December 31,

2023

 
    

 

 
     (Korean Won in millions)  

ASSETS

    

Cash and cash equivalents (Notes 5 and 31)

     684,829       289,507  

Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 7 and 9)

     539,869       539,709  

Loans and other financial assets at amortized cost (Notes 4, 8, 9 and 31)

     1,869,156       1,104,815  

Investments in subsidiaries (Notes 10 and 31)

     23,911,852       23,670,476  

Premises and equipment (Notes 11 and 31)

     5,462       6,609  

Intangible assets (Note 12)

     3,983       4,052  

Net defined benefit asset (Note 16)

     106       3,941  

Current tax assets (Note 28)

     170,111       158,951  

Deferred tax assets (Note 28)

     6,640       7,478  

Other assets (Note 13)

     568       484  
  

 

 

   

 

 

 

Total assets

     27,192,576       25,786,022  
  

 

 

   

 

 

 

LIABILITIES

    

Debentures (Notes 4, 9 and 14)

     1,587,843       1,587,659  

Provisions (Note 15)

     1,240       1,227  

Current tax liabilities (Note 28)

     35,334       32,125  

Other financial liabilities (Notes 4, 9, 17, 31 and 32)

     652,125       163,621  

Other liabilities (Note 17)

     1,961       392  
  

 

 

   

 

 

 

Total liabilities

     2,278,503       1,785,024  
  

 

 

   

 

 

 

EQUITY (Note 19)

    

Capital stock

     3,802,676       3,802,676  

Hybrid securities

     4,009,965       3,610,953  

Capital surplus

     11,120,236       11,120,236  

Other equity

     (8,438     (7,871

Retained earnings

     5,989,634       5,475,004  
  

 

 

   

 

 

 

Total equity

     24,914,073       24,000,998  
  

 

 

   

 

 

 

Total liabilities and equity

     27,192,576       25,786,022  
  

 

 

   

 

 

 

The accompanying notes are part of these financial statements.

 

- 4 -


WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     For the three-month periods ended March 31  
     2024     2023  
    

 

 
     (Korean Won in millions)  

Interest income

     12,635       13,706  

Interest expense

     (11,316     (8,024
  

 

 

   

 

 

 

Net interest income (Notes 9, 21 and 31)

     1,319       5,682  

Fees and commissions income

     407       399  

Fees and commissions expense

     (4,252     (3,736
  

 

 

   

 

 

 

Net fees and commissions loss (Notes 22 and 31)

     (3,845     (3,337

Dividend income (Notes 23 and 31)

     1,189,333       1,469,291  

Net gain on financial instruments at FVTPL (Notes 9 and 24)

     —        2,023  

Provision of impairment losses due to credit loss (Notes 9, 25 and 31)

     (460     (41

General and administrative expenses (Notes 26 and 31)

     (17,497     (16,445
  

 

 

   

 

 

 

Operating income

     1,168,850       1,457,173  

Non-operating income(expense) (Note 27)

     (18     (9

Net income before income tax expense

     1,168,832       1,457,164  

Income tax expense (Note 28)

     (1,043     (785

Net income

     1,167,789       1,456,379  
  

 

 

   

 

 

 

Net gain on valuation of equity securities at FVTOCI (Note 19)

     119       9,024  

Remeasurement loss related to defined benefit plan (Notes 16 and 19)

     (686     (1,346
  

 

 

   

 

 

 

Items that will not be reclassified to profit or loss:

     (567     7,678  
  

 

 

   

 

 

 

Other comprehensive loss, net of tax

     (567     7,678  

Total comprehensive income

     1,167,222       1,464,057  
  

 

 

   

 

 

 

Earnings per share (Notes 19 and 29)

    

Basic and diluted earnings per share (Unit: In Korean Won)

     1,510       1,959  

The accompanying notes are part of these financial statements.

 

- 5 -


WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

 

     Capital
stock
    

Capital
surplus

     Hybrid
securities
     Other
equity
    Retained
earnings
   

Total

equity

 
    

 

 
     (Korean Won in millions)  

January 01, 2023

     3,640,303        10,909,281        3,112,273        (26,186     5,261,231       22,896,902  

Total comprehensive income

               

Net income

     —         —         —         —        1,456,379       1,456,379  

Net gain on valuation of equity securities at FVTOCI

     —         —         —         9,024       —        9,024  

Remeasurement loss related to defined benefit plan

     —         —         —         (1,346     —        (1,346

Transactions with owners

               

Dividends to common stocks

     —         —         —         —        (713,497     (713,497

Issuance of hybrid securities

     —         —         299,228        —        —        299,228  

Dividends to hybrid securities

     —         —         —         —        (30,414     (30,414
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

March 31, 2023 (Unaudited)

     3,640,303        10,909,281        3,411,501        (18,508     5,973,699       23,916,276  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

January 01, 2024

     3,802,676        11,120,236        3,610,953        (7,871     5,475,004       24,000,998  

Total comprehensive income

               

Net income

     —         —         —         —        1,167,789       1,167,789  

Net loss on valuation of equity securities at FVTOCI

     —         —         —         119       —        119  

Remeasurement loss related to defined benefit plan

     —         —         —         (686     —        (686

Transactions with owners

               

Dividends to common stocks

     —         —         —         —        (481,213     (481,213

Issuance of hybrid securities

     —         —         399,012        —        —        399,012  

Dividends to hybrid securities

     —         —         —         —        (35,258     (35,258

Acquisition of treasury stocks

     —         —         —         (136,688     —        (136,688

Retirement of treasury stocks

     —         —         —         136,688       (136,688     —   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

March 31, 2024 (Unaudited)

     3,802,676        11,120,236        4,009,965        (8,438     5,989,634       24,914,073  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

The accompanying notes are part of these financial statements.

 

- 6 -


WOORI FINANCIAL GROUP INC.

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 

     For the three-month periods ended March 31  
     2024     2023  
    

 

 
Cash flows from operating activities:     

Net income

     1,167,789       1,456,379  

Adjustments to net income:

    

Income tax expense

     1,043       785  

Interest income

     (12,635     (13,706

Interest expense

     11,316       8,024  

Dividend income

     (1,189,333     (1,469,291
  

 

 

   

 

 

 
     (1,189,609     (1,474,188
  

 

 

   

 

 

 

Adjustments for profit/loss items not involving cash flows:

    

Provision of impairment losses due to credit loss

     460       41  

Net loss(gain) on valuation of financial instruments at FVTPL

     —        (2,023

Retirement benefit

     1,228       907  

Depreciation and amortization

     1,675       1,785  

Gain on disposal of premises and equipment, intangible assets and other assets

     (1     —   
  

 

 

   

 

 

 
     3,362       710  
  

 

 

   

 

 

 

Changes in operating assets and liabilities:

    

Loans and other financial assets at amortized cost

     (5,531     265  

Other assets

     (83     (196

Net defined benefit liability

     1,675       740  

Other financial liabilities

     (2,268     (8,375

Other liabilities

     1,568       2,087  
  

 

 

   

 

 

 
     (4,639     (5,479
  

 

 

   

 

 

 

Interest income received

     9,545       12,499  

Interest expense paid

     (11,118     (7,843

Dividends received

     1,189,362       1,457,543  

Income tax paid

     (983     (543
  

 

 

   

 

 

 

Net cash provided by operating activities

     1,163,709       1,439,078  
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Net decrease on other investment assets

     (753,000     (170,000

Acquisition of investments in subsidiaries

     (241,376     (389,254

Acquisition of premises and equipment

     (21     (13

Acquisition of intangible assets

     (303     (289
  

 

 

   

 

 

 
     (994,700     (559,556
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Issuance of hybrid securities

     399,012       299,228  

Acquisition of treasury stocks

     (136,688     —   

Redemption of lease liabilities

     (753     (797

Dividends paid to hybrid securities

     (35,258     (30,414
  

 

 

   

 

 

 
     226,313       268,017  
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     395,322       1,147,539  

Cash and cash equivalents, beginning of the period

     289,507       313,361  
  

 

 

   

 

 

 

Cash and cash equivalents, end of the period (Note 5)

     684,829       1,460,900  
  

 

 

   

 

 

 

The accompanying notes are part of these financial statements.

 

- 7 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

1.

GENERAL

 

(1)

Summary of the parent company

Woori Financial Group, Inc. (hereinafter referred to the “Company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank, Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,802,676 million Won. The Company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock transfer from the Company and subsidiaries as of incorporation are as follows (Unit: Number of shares):

 

Stock transfer company

   Total number of
issued shares
     Exchange ratio
per share
     Number of Parent
company’s stocks
 

Woori Bank

     676,000,000        1        676,000,000  

Woori FIS Co., Ltd.

     4,900,000        0.2999708        1,469,857  

Woori Finance Research Institute Co., Ltd.

     600,000        0.1888165        113,289  

Woori Credit Information Co., Ltd.

     1,008,000        1.1037292        1,112,559  

Woori Fund Service Co., Ltd.

     2,000,000        0.4709031        941,806  

Woori Private Equity Asset Management Co., Ltd.

     6,000,000        0.0877992        526,795  

As of August 1, 2019, the Company acquired a 73% interest in Tongyang Asset Management Co., Ltd. and changed the name to Woori Asset Management Corp. Also, as of August 1, 2019, the Company gained 100% control of ABL Global Asset Management Co., Ltd., added it as a consolidated subsidiary and changed the name to Woori Global Asset Management Co., Ltd. on December 6, 2019.

The Company paid 598,391 million Won in cash and 42,103,377 new shares of the Company to acquire 100% interest of Woori Card Co., Ltd. from its subsidiary Woori Bank on September 10, 2019. On the same date, the Company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million Won in cash.

As of December 30, 2019, the Company acquired 67.2% interests (excluding treasury stock, 51.0% when including treasury stock) in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.) In addition, as of March 31, 2023, the Company acquired an additional 28.1% interests in Woori Asset Trust Co. (excluding treasury stock, 21.3% when including treasury stock).

As of December 10, 2020, the Company acquired 76.8% interests (excluding treasury stock, 74.0% when including treasury stock) in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.). In addition, as of April 15, 2021, the Company acquired an additional 13.3% interests in Woori Financial Capital Co., Ltd. (excluding treasury stock, 12.9% in the case of including treasury stock), and as of May 24, 2021, the Company additionally acquired treasury stock(3.6%) which Woori Financial Capital possessed.

As of March 12, 2021, the Company paid 113,238 million Won in cash to acquire 100% interests on Woori Savings Bank from Woori Financial Capital Co., Ltd., our subsidiary.

As of August 10, 2021, the Company paid 5,792,866 new shares of the Company to the shareholders of Woori Financial Capital Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (9.5%) of Woori Financial Capital Co., Ltd., to make it a wholly owned subsidiary.

As of January 7, 2022, Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies, was established (100% stock, 200 billion Won in stock payments) and incorporated as a subsidiary.

 

- 8 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

As of March 23, 2023, the Company acquired 53.9% interests in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.) (excluding treasury stock, 52.0% in the case of including treasury stock). In addition, as of May 30, 2023, the Company additionally acquired treasury stock held by Woori Venture Partners Co., Ltd. (3.5%).

As of August 8, 2023, the Company paid 22,541,465 new shares of the Company to the shareholders of Woori Investment Bank Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (41.3%) of Woori Investment Bank Co., Ltd., to make it a wholly owned subsidiary. In addition, on the same day, the Company paid 9,933,246 new shares of the Company to the shareholders of Woori Venture Partners Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (44.5%) of Woori Venture Partners Co., Ltd., to make it a wholly owned subsidiary.

As of January 29, 2024, the Company owned interest (77.55%) of Woori Asset Management Corp, as a result of merger with Woori Asset Management Corp (surviving company) and Woori Global Asset Management Co., Ltd. (dissolution company), which was liquidated. As of March 29, 2024, the Company acquired residual interest(22.5%) of Woori Asset Management Corp, to make it a wholly owned subsidiary.

On March 25, 2024, the Company participated in the capital increase amount and acquired the 1,062,045 shares (96.7% after acquiring shares, 79.4% including treasury shares) of Woori Asset Trust Co., Ltd.. Additionally, on March 29, 2024, Woori Asset Trust Co., Ltd. conducted a complete retirement of its 738,000 treasury shares.

 

2.

BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

The Company’s financial statements are condensed interim financial statements prepared in accordance with Korean IFRS 1034, Interim Financial Reporting for some of periods in which the annual separate financial statements belong. They are also separate financial statements prepared in accordance with Korean IFRS 1027 Separate Financial Statements. It is necessary to use the Company’s annual separate financial statements for the year ended December 31, 2023 for understanding of the accompanying condensed interim financial statements.

 

(1)

Except for the impacts on the newly adopted standards and interpretations explained below, the accounting policies applied in preparing the accompanying condensed interim financial statements have been applied consistently with the annual financial statements as of and for the year ended December 31, 2023.

 

  1)

Amendments to K-IFRS No.1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. In addition, covenants that an entity is required to comply with after the end of the reporting period would not affect classification of a liability as current or non-current at the reporting date. When an entity classifies a liability that is subject to the covenants which an entity is required to comply with within twelve months of the reporting date as non-current at the end of the reporting period, the entity shall disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period. The amendments do not have a significant impact on the financial statements.

 

  2)

Amendments to K-IFRS 1007 ‘Statement of Cash Flows’, K-IFRS 1107 ‘Financial Instruments’ : Disclosures- Supplier Finance Arrangements

When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. There is no impact on the interim financial statements in accordance with the transitional provision that does not require to disclose the relevant information during the interim reporting period within the fiscal year in which these amendments are first applied.

 

- 9 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

 

  3)

Amendments to K-IFRS 1116 ‘Lease’ – Lease Liability in a Sale and Leaseback

When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not have a significant impact on the financial statements.

 

  4)

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Disclosure of Cryptographic Assets

The amendments require an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments do not have a significant impact on the financial statements.

 

(2)

The details of K-IFRSs that have been issued and published since January 1, 2024 but have not yet reached the effective date are as follows:

Amendments to K-IFRS 1021 ‘The Effects of Changes in Foreign Exchange Rates’ and K-IFRS 1101 ‘First-time Adoption of International Financial Reporting Standards’ – Lack of Exchangeability

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments should be applied for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The amendments do not have a significant impact on the financial statements.

The above enacted or amended standards will not have a significant impact on the Company.

 

(3)

Material accounting policies and method of computation used in the preparation of the condensed interim financial statements are consistent with those of the annual financial statements for the year ended December 31, 2023, except for the one described below.

 

   

Income tax expense

Income tax expense for the interim period is recognized based on weighted average annual income tax rate expected for the expected gross annual profit. The estimated average annual tax rate is applied to the pre-tax income.

 

3.

MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The management shall make judgements, estimates and assumptions that affect the application of accounting policies and assets, liabilities, revenues and expenses in preparing condensed interim financial statements. Therefore, the actual results may differ from these estimates.

The important judgements by the management on accounting policies and the main sources of estimation uncertainty for preparing condensed interim financial statements are identical to ones used in the Company’s annual separate financial statements for the year ended December 31, 2023.

 

- 10 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

4.

RISK MANAGEMENT

The Company is exposed to various risks that may arise from its operating activities and credit risk, market risk and liquidity risk are the main types of risks. In order to manage such risks, the Risk Management Department analyzes, assesses, and establishes risk management standards, including policies, guidelines, management systems and decision-making to ensure sound management of the Company.

The Risk Management Committee, Chief Risk Officer (“CRO”) and the Risk Management Department are operated as risk management organizations. The board of directors operates the Risk Management Committee, composed of nonexecutive directors for professional risk management. The Risk Management Committee performs as the top decision-making body for risk management by establishing fundamental risk management policies that are consistent with the Company’s management strategy and by determining the Company’s acceptable level of risk.

CRO assists the Risk Management Committee and operates the Company Risk Management Council, which is composed of the risk management managers of the subsidiaries, to periodically check and improve the external environment and the Company’s risk burden. The Risk Management Department which is independently structured, controls the risk management matter of the Company and reports key risks and assists decision-making.

 

(1)

Credit risk

Credit risk represents the possibility of financial losses incurred due to the refusal of the transaction or when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Company’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

 

  1)

Credit risk management

The Company measures expected loss on assets subject to credit risk management and uses it as a management indicator.

 

  2)

Maximum exposure

The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):

 

          March 31,
2024
     December 31,
2023
 

Loans and other financial assets at amortized cost

   Banks      1,849,682        1,095,274  
   Corporates      19,474        9,541  
     

 

 

    

 

 

 
  

Total

     1,869,156        1,104,815  

 

- 11 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

  a)

Credit risk exposure by geographical areas

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

 

     March 31, 2024      December 31, 2023  
     Korea      Korea  

Loans and other financial assets at amortized cost

     1,869,156        1,104,815  

 

  b)

Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are finance and insurance, and others in accordance with the Korea Standard Industrial Classification Code as of March 31, 2024 and December 31, 2023 (Unit: Korean Won in millions):

 

     March 31, 2024  
     Finance and
insurance
     Others      Total  

Loans and other financial assets at amortized cost

     1,867,498        1,658        1,869,156  

 

     December 31, 2023  
     Finance and
insurance
     Others      Total  

Loans and other financial assets at amortized cost

     1,103,460        1,355        1,104,815  

 

- 12 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

  3)

Credit risk exposure

The maximum exposure to credit risk by asset quality as of March 31, 2024 and December 31, 2023 is as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total      Loss
allowance
    Total, net  
Financial assets    Above
appropriate
credit rating
(*1)
     Less than a
limited
credit rating
(*2)
     Above
appropriate
credit
rating (*1)
     Less than a
limited credit
rating
(*2)
 

Loans and other financial assets at amortized cost

     1,870,280        —         —         —         —         1,870,280        (1,124     1,869,156  

Banks

     1,850,806        —         —         —         —         1,850,806        (1,124     1,849,682  

Corporates

     19,474        —         —         —         —         19,474        —        19,474  

General business

     19,474        —         —         —         —         19,474        —        19,474  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     1,870,280        —         —         —         —         1,870,280        (1,124     1,869,156  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(*1)

Credit grade of corporates are AAA ~ BBB.

(*2)

Credit grade of corporates are BBB- ~ C.

 

     December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total      Loss
allowance
    Total, net  
Financial assets    Above
appropriate
credit rating
(*1)
     Less than a
limited
credit rating
(*2)
     Above
appropriate
credit
rating (*1)
     Less than a
limited
credit rating
(*2)
 

Loans and other financial assets at amortized cost

     1,105,478        —         —         —         —         1,105,478        (663     1,104,815  

Banks

     1,095,937        —         —         —         —         1,095,937        (663     1,095,274  

Corporates

     9,541        —         —         —         —         9,541        —        9,541  

General business

     9,541        —         —         —         —         9,541        —        9,541  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     1,105,478        —         —         —         —         1,105,478        (663     1,104,815  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(*1)

Credit grade of corporates are AAA ~ BBB.

(*2)

Credit grade of corporates are BBB- ~ C.

 

- 13 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(2)

Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates, and the Company’s main market risk is interest rate risk.

The Company estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Within 3
months
(*1)
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Asset:

                    

Loans and other financial assets at amortized cost (*1)

     1,357,405        744,125        451,278        —         —         —         2,552,808  

Financial assets at FVTOCI (*2)

     —         —         —         —         —         539,869        539,869  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     1,357,405        744,125        451,278        —         —         539,869        3,092,677  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liability:

                    

Debentures

     11,118        160,837        10,192        10,192        638,768        921,603        1,752,710  
     December 31, 2023  
     Within 3
months
(*1)
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Asset:

                    

Loans and other financial assets at amortized cost (*1)

     762,823        587,227        —         41,580        —         —         1,391,630  

Financial assets at FVTOCI (*2)

     —         —         —         —         —         539,709        539,709  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total

     762,823        587,227        —         41,580        —         539,709        1,931,339  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liability:

                    

Debentures

     11,118        11,118        160,834        10,192        643,664        926,872        1,763,798  

 

(*1)

The principal and interest cash flows of cash and cash equivalents are included in the cash flows within three months, with 686,051 million Won and 762,823 million Won as of March 31, 2024 and December 31, 2023, respectively.

(*2)

Due to the uncertain timing of the sale, it is included in the section for over 5 years in accordance with the expiration of the remaining contract.

 

- 14 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(3)

Liquidity risk

Liquidity risk refers to the risk that the Company may encounter difficulties in meeting obligations from its financial liabilities.

 

  1)

Liquidity risk management

Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk management that could arise from mismatching the maturity of assets and liabilities or unexpected cash outflows. The financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated within the scope of risk management.

The Company manages liquidity risk through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.).

 

  2)

Maturity analysis of non-derivative financial liabilities

 

  a)

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over
5 years
     Total  

Debentures

     11,118        160,837        10,192        10,192        638,768        921,603        1,752,710  

Lease liabilities

     752        752        752        137        290        —         2,683  

Other financial liabilities(*)

     585,721        621        —         4,043        59,121        —         649,506  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     597,591        162,210        10,944        14,372        698,179        921,603        2,404,899  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

It does not include lease liabilities.

 

     December 31, 2023  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over
5 years
     Total  

Debentures

     11,118        11,118        160,834        10,192        643,664        926,872        1,763,798  

Lease liabilities

     746        741        741        741        323        —         3,292  

Other financial liabilities(*)

     11,744        136,062        —         278        12,334        —         160,418  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     23,608        147,921        161,575        11,211        656,321        926,872        1,927,508  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

It does not include lease liabilities.

 

  b)

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

 

     March 31, 2024  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Debentures

     11,118        160,837        10,192        10,192        638,768        921,603        1,752,710  

Lease liabilities

     752        752        752        137        290        —         2,683  

Other financial liabilities

     585,721        621        —         4,043        59,121        —         649,506  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     597,591        162,210        10,944        14,372        698,179        921,603        2,404,899  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     December 31, 2023  
     Within 3
months
     4 to 6
months
     7 to 9
months
     10 to 12
months
     1 to 5
years
     Over 5
years
     Total  

Debentures

     11,118        11,118        160,834        10,192        643,664        926,872        1,763,798  

Lease liabilities

     746        741        741        741        323        —         3,292  

Other financial liabilities

     11,744        136,062        —         278        12,334        —         160,418  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     23,608        147,921        161,575        11,211        656,321        926,872        1,927,508  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

- 15 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

  3)

Maturity analysis of derivative financial liabilities

There are no derivative financial liabilities measured at fair value through profit or loss as of March 31, 2024 and December 31, 2023.

 

5.

CASH AND CASH EQUIVALENTS

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Demand deposits

     524,829        9,507  

Fixed deposits

     160,000        280,000  
  

 

 

    

 

 

 

Total

     684,829        289,507  
  

 

 

    

 

 

 

 

(2)

Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Changes in unpaid dividends on common stocks

     481,213        713,497  

Changes in other comprehensive income related to valuation of financial assets at FVTOCI

     119        9,024  

Changes in right-of-use assets due to new contract

     144        82  

Changes in lease liabilities due to new contract

     144        82  

 

6.

FINANCIAL ASSETS AT FVTPL

There are no financial assets measured at fair value through profit or loss as of March 31, 2024 and December 31, 2023.

 

7.

FINANCIAL ASSETS AT FVTOCI

 

(1)

Details of financial assets at FVTOCI as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Hybrid securities

     539,869        539,709  

 

(2)

Details of equity securities designated as financial assets at FVTOCI as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

Purpose of acquisition

   March 31, 2024      December 31, 2023  

Investment for political purpose

     539,869        539,709  

 

8.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

 

(1)

Details of loans and other financial assets at amortized cost as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Due from banks

     1,825,888        1,073,346  

Other financial assets

     43,268        31,469  
  

 

 

    

 

 

 

Total

     1,869,156        1,104,815  
  

 

 

    

 

 

 

 

- 16 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(2)

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

 

     March 31, 2024      December 31, 2023  

Due from banks in local currency:

     

Due from depository banks

     1,827,000        1,074,000  

Loss allowance

     (1,112      (654
  

 

 

    

 

 

 

Total

     1,825,888        1,073,346  
  

 

 

    

 

 

 

 

(3)

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

 

  1)

Allowance for credit losses

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (654      —         —         (654

Provision of allowance for credit loss

     (458      —         —         (458
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     (1,112      —         —         (1,112
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (313      —         —         (313

Provision of allowance for credit loss

     (40      —         —         (40
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

       (353      —         —           (353
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  2)

Gross carrying amount

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     1,074,000        —         —         1,074,000  

Net increase (decrease)

     753,000        —         —         753,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     1,827,000        —         —         1,827,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     1,300,000        —         —         1,300,000  

Net increase (decrease)

     170,000        —         —         170,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     1,470,000        —         —         1,470,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(4)

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

 

     March 31, 2024      December 31, 2023  

Receivables

     19,500        9,541  

Accrued income

     21,646        19,829  

Lease deposits

     2,133        2,108  

Loss allowance

     (11      (9
  

 

 

    

 

 

 

Total

     43,268        31,469  
  

 

 

    

 

 

 

 

- 17 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(5)

Changes in the allowances for credit losses and gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):

 

  1)

Allowance for credit losses

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (9      —         —         (9

Provision of allowance for credit loss

     (2      —         —         (2
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     (11      —         —         (11
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     (3      —         —         (3

Provision of allowance for credit loss

     —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     (3      —         —         (3
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  2)

Gross carrying amount

 

     For the three-month period ended March 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     31,478        —         —         31,478  

Net increase (decrease)

     11,801        —         —         11,801  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     43,279        —         —         43,279  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

     742,193        —         —         742,193  

Net increase (decrease)

     57,732        —         —         57,732  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     799,925        —         —         799,925  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

- 18 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

9.

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

 

(1)

The fair value hierarchy

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

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

 

   

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

 

   

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

 

   

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

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

 

(2)

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

 

     March 31, 2024  
     Level 1      Level 2      Level 3      Total  

Financial assets:

           

Financial assets at FVTOCI

           

Hybrid securities

     —         —         539,869        539,869  

 

     December 31, 2023  
     Level 1      Level 2      Level 3      Total  

Financial assets:

           

Financial assets at FVTOCI

           

Hybrid securities

     —         —         539,709        539,709  

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

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

 

- 19 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

    

Valuation methods

  

Input variables

Hybrid securities    The fair value is measured using the Hull and White model and the Monte Carlo Simulations.    YTM Matrix, Additive spread by grade, Risk spread by entity, Effective Credit rating, Issuing information by item, Interest rate volatility estimate

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

 

    

Fair value measurement
technique

  

Type

  

Significant
unobservable
inputs

  

Range

  

Impact of changes in
significant unobservable
inputs on fair value
measurement

Hybrid securities    Hull and White, Monte Carlo Simulation    Hybrid securities related    Interest rate (YTM), Market rate   

Interest rate 3.25% ~ 3.44%

Market rate

4.29% ~ 6.59%

   Variation of fair value increases as variation of interest rate (YTM) increases.

The fair value of financial assets classified as level 3 uses external valuation figures.

 

(3)

Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows. (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Beginning
balance
     Net
Income
     Other
comprehensive
income
     Purchases/
Issuances
     Disposals/
Settlements
     Transfer to
or out of
Level 3
     Ending
balance
 

Financial assets:

                    

Financial assets at FVTPL

                    

Derivative assets

     —         —         —         —         —         —         —   

Financial assets at FVTOCI

                    

Hybrid securities

     539,709        —         160        —         —         —         539,869  

 

     For the three-month period ended March 31, 2023  
     Beginning
balance
     Net
Income
     Other
comprehensive
income
     Purchases/
Issuances
     Disposals/
Settlements
    Transfer to
or out of
Level 3
     Ending
balance
 

Financial assets:

                   

Financial assets at FVTPL

                   

Derivative assets

     689        2,023        —         —         (2,712     —         —   

Financial assets at FVTOCI

                   

Hybrid securities

     312,771        —         12,312        —         —        —         325,083  

 

(4)

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

The sensitivity analysis on financial instruments shows how changes in unobservable inputs affect changes in fair value of the instruments through favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for equity related derivatives of which fair value changes are recognized as net income and hybrid securities of which fair value changes are recognized as other comprehensive income among level 3 financial instruments.

The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility. (Unit: Korean Won in millions):

 

- 20 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     March 31, 2024  
     Net income      Other comprehensive
income (loss)
 
     Favorable      Unfavorable      Favorable      Unfavorable  

Financial assets:

           

Financial assets at FVTOCI

           

Hybrid securities (*)

     —         —         15,289        (14,772

 

(*)

Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%, respectively.

 

     December 31, 2023  
     Net income      Other comprehensive
income (loss)
 
     Favorable      Unfavorable      Favorable      Unfavorable  

Financial assets:

           

Financial assets at FVTOCI

           

Hybrid securities (*)

     —         —         16,476        (15,888

 

(*)

Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%, respectively.

 

- 21 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(5)

Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Fair value      Carrying
amount
 
     Level 1      Level 2      Level 3      Total  

Financial assets:

              

Loans and other financial assets at amortized cost (*1)

     —         —         1,869,156        1,869,156        1,869,156  

Financial liabilities:

              

Debentures

     —         1,520,450        —         1,520,450        1,587,843  

Other financial liabilities (*1,2)

     —         —         649,506        649,506        649,506  

 

(*1)

The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

(*2)

It does not include lease liabilities.

 

     December 31, 2023  
     Fair value      Carrying
amount
 
     Level 1      Level 2      Level 3      Total  

Financial assets:

              

Loans and other financial assets at amortized cost (*1)

     —         —         1,104,815        1,104,815        1,104,815  

Financial liabilities:

              

Debentures

     —         1,518,440        —         1,518,440        1,587,659  

Other financial liabilities (*1,2)

     —         —         160,418        160,418        160,418  

 

(*1)

The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

(*2)

It does not include lease liabilities.

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Company determines the fair value using valuation methods. For the disclosed items in which book value is considered to be the approximate value of fair value, valuation techniques and input variables are not disclosed. Valuation techniques and input variables for the fair value of financial liabilities that are recorded at amortized cost are as follows:

 

    

Valuation methods

  

Input variables

Debentures    The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Company.    Risk-free market rate, etc.

 

(6)

Financial instruments by category

Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions):

 

  1)

Financial assets

 

     March 31, 2024  
Financial assets    Financial assets at FVTPL      Financial assets at
FVTOCI
     Financial
assets at
amortized cost
     Total  

Due from banks

     —         —         1,825,888        1,825,888  

Hybrid securities

     —         539,869        —         539,869  

Other financial assets

     —         —         43,268        43,268  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —         539,869        1,869,156        2,409,025  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

- 22 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     December 31, 2023  
Financial assets    Financial assets at FVTPL      Financial assets at
FVTOCI
     Financial
assets at
amortized cost
     Total  

Due from banks

     —         —         1,073,346        1,073,346  

Hybrid securities

     —         539,709        —         539,709  

Other financial assets

     —         —         31,469        31,469  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —         539,709        1,104,815        1,644,524  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  2)

Financial liabilities

 

     March 31, 2024      December 31, 2023  
Financial liabilities    Financial liabilities at
FVTPL
     Financial
liabilities at
amortized cost
     Financial liabilities at
FVTPL
     Financial liabilities at
amortized cost
 

Debentures

     —         1,587,843        —         1,587,659  

Other financial liabilities (*)

     —         649,506        —         160,418  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —         2,237,349        —         1,748,077  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

It does not include lease liabilities.

 

(7)

Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Interest income
(expense)
    Provision of
credit loss
    Gain on
transactions
and valuation
     Dividends      Total  

Financial assets at FVTPL

     —        —        —         —         —   

Financial assets at FVTOCI

     —        —        —         6,356        6,356  

Loans and other financial assets at amortized cost (*)

     12,635       (460     —         —         12,175  

Financial liabilities at amortized cost

     (11,269     —        —         —         (11,269
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     1,366       (460     —         6,356        7,262  
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

(*)

1,865 million Won interest income of cash and cash equivalents are included.

 

     For the three-month period ended March 31, 2023  
     Interest income
(expense)
    Provision of
credit loss
    Gain on
transactions
and valuation
     Others      Total  

Financial assets at FVTPL

     —        —        2,023        —         2,023  

Financial assets at FVTOCI

     —        —        —         3,466        3,466  

Loans and other financial assets at amortized cost (*)

     13,706       (41     —         —         13,665  

Financial liabilities at amortized cost

     (7,956     —        —         —         (7,956
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     5,750       (41     2,023        3,466        11,198  
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

(*)

6,374 million Won interest income of cash and cash equivalents are included.

 

- 23 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

10.

INVESTMENTS IN SUBSIDIARIES

 

(1)

Details of Investments in subsidiaries are as follows (Unit: Korean Won in millions and number of shares):

 

Subsidiaries (*1)

   Location      Capital
stock
     Main business

Woori Bank

     Korea        3,518,400      Bank

Woori Card Co., Ltd.

     Korea        896,300      Finance

Woori Financial Capital Co., Ltd.

     Korea        373,800      Finance

Woori Investment Bank Co., Ltd.

     Korea        691,400      Other credit finance business

Woori Asset Trust Co., Ltd.

     Korea        16,900      Real estate trust

Woori Savings Bank

     Korea        124,000      Mutual saving bank

Woori F&I Co., Ltd.

     Korea        20,000      Finance

Woori Asset Management Corp

     Korea        24,000      Finance

Woori Venture Partners Co., Ltd.

     Korea        50,000      Other financial services

Woori Private Equity Asset Management Co., Ltd.

     Korea        80,000      Finance

Woori Credit Information Co., Ltd.

     Korea        5,000      Credit information

Woori Fund Service Co., Ltd.

     Korea        10,000      Financial support service
business

Woori FIS Co., Ltd.

     Korea        24,500      System software
development & maintenance

Woori Finance Research Institute Co., Ltd.

     Korea        3,000      Other service business

Woori Global Asset Management Co., Ltd.

     Korea        —       Finance

 

     March 31, 2024      December 31, 2023  

Subsidiaries (*1)

   Number of
shares
     Percentage of
ownership
(%) (*2)
     Financial
statements date of
use
     Number of
shares
     Percentage of
ownership
(%) (*2)
     Financial statements
date of use
 

Woori Bank

     716,000,000        100.0           716,000,000        100.0        December 31, 2023  

Woori Card Co., Ltd.

     179,266,200        100.0           179,266,200        100.0        December 31, 2023  

Woori Financial Capital Co., Ltd.

     74,757,594        100.0           74,757,594        100.0        December 31, 2023  

Woori Investment Bank Co., Ltd.

     1,382,850,405        100.0           1,382,850,405        100.0        December 31, 2023  

Woori Asset Trust Co., Ltd.

     3,272,645        96.7           2,210,600        95.3        December 31, 2023  

Woori Savings Bank

     24,802,623        100.0           24,802,623        100.0        December 31, 2023  

Woori F&I Co., Ltd.

     4,000,000        100.0           4,000,000        100.0        December 31, 2023  

Woori Asset Management Corp

     4,797,154        100.0           2,920,000        73.0        December 31, 2023  

Woori Venture Partners Co., Ltd.

     100,000,000        100.0           100,000,000        100.0        December 31, 2023  

Woori Private Equity Asset Management Co., Ltd.

     16,000,000        100.0           16,000,000        100.0        December 31, 2023  

Woori Credit Information Co., Ltd.

     1,008,000        100.0           1,008,000        100.0        December 31, 2023  

Woori Fund Service Co., Ltd.

     2,000,000        100.0           2,000,000        100.0        December 31, 2023  

Woori FIS Co., Ltd.

     4,900,000        100.0           4,900,000        100.0        December 31, 2023  

Woori Finance Research Institute Co., Ltd.

     600,000        100.0           600,000        100.0        December 31, 2023  

Woori Global Asset Management Co., Ltd.

            —            4,000,000        100.0        December 31, 2023  

 

(*1)

Only subsidiaries invested directly by the Company are included.

(*2)

The percentage is based on the effective shareholding rate relative to the number of stocks outstanding.

 

- 24 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(2)

Changes in the carrying value of investments in subsidiaries are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Beginning balance      Acquisition      Disposal      Ending balance  

Woori Bank

     18,921,151        —         —         18,921,151  

Woori Card Co., Ltd.

     1,118,367        —         —         1,118,367  

Woori Financial Capital Co., Ltd.

     1,003,206        —         —         1,003,206  

Woori Investment Bank Co., Ltd.

     1,207,351        —         —         1,207,351  

Woori Asset Trust Co., Ltd.(*1)

     403,642        200,000        —         603,642  

Woori Savings Bank

     213,238        —         —         213,238  

Woori F&I Co., Ltd.

     200,000        —         —         200,000  

Woori Asset Management Corp(*2)

     122,449        74,376        —         196,825  

Woori Venture Partners Co., Ltd.

     336,439        —         —         336,439  

Woori Private Equity Asset Management Co., Ltd.

     57,797        —         —         57,797  

Woori Credit Information Co., Ltd.

     16,466        —         —         16,466  

Woori Fund Service Co., Ltd.

     13,939        —         —         13,939  

Woori FIS Co., Ltd.

     21,754        —         —         21,754  

Woori Finance Research Institute Co., Ltd.

     1,677        —         —         1,677  

Woori Global Asset Management Co., Ltd.(*3)

     33,000        —         33,000        —   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     23,670,476        274,376        33,000        23,911,852  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

During the current period, the capital increase amount of 200,000 was made.

(*2)

On January 29, 2024, Woori Asset Management Corp merged with Woori Global Asset Management Co., Ltd. and the Company acquired residual interest (22.5%) of Woori Asset Management Corp, to make it wholly subordinated.

(*3)

On January 29, 2024, it was merged into Woori Asset Management Corp and excluded from our subsidiaries.

 

     For the three-month period ended March 31, 2023  
     Beginning balance      Acquisition      Disposal      Ending balance  

Woori Bank

     18,921,151        —         —         18,921,151  

Woori Card Co., Ltd.

     1,118,367        —         —         1,118,367  

Woori Financial Capital Co., Ltd.

     1,003,206        —         —         1,003,206  

Woori Investment Bank Co., Ltd.

     447,673        —         —         447,673  

Woori Asset Trust Co., Ltd. (*1)

     224,198        179,444        —         403,642  

Woori Savings Bank

     213,238        —         —         213,238  

Woori F&I Co., Ltd.

     200,000        —         —         200,000  

Woori Asset Management Corp

     122,449        —         —         122,449  

Woori Venture Partners Co., Ltd (*2)

     —         212,522        —         212,522  

Woori Global Asset Management Co., Ltd.

     33,000        —         —         33,000  

Woori Private Equity Asset Management Co., Ltd.

     57,797        —         —         57,797  

Woori Credit Information Co., Ltd.

     16,466        —         —         16,466  

Woori Fund Service Co., Ltd.

     13,939        —         —         13,939  

Woori FIS Co., Ltd.

     21,754        —         —         21,754  

Woori Finance Research Institute Co., Ltd.

     1,677        —         —         1,677  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     22,394,915        391,966        —         22,786,881  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Woori Asset Trust Co Ltd 28.1% (excluding treasury stocks) as of March 31, 2023. In the case of including treasury stocks, the share ratio was 21.3%), and an additional stake was acquired.

(*2)

53.9% stake in Daol Investment Co Ltd (excluding treasury stocks) on March 23, 2023. In the case of including treasury stocks, the share ratio was 52.0%) and the Company name was changed to Woori Venture Partners Co., Ltd.

 

- 25 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

11.

PREMISES AND EQUIPMENT

 

(1)

Details of premises and equipment as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Building      Equipment and
Vehicles
     Leasehold
improvements
     Total  

Premises and equipment (owned)

     —         867        1,807        2,674  

Right-of-use asset

     2,228        560        —         2,788  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,228        1,427        1,807        5,462  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     December 31, 2023  
     Building      Equipment and
Vehicles
     Leasehold
improvements
     Total  

Premises and equipment (owned)

     —         1,078        2,053        3,131  

Right-of-use asset

     2,970        508        —         3,478  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,970        1,586        2,053        6,609  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(2)

Details of premises and equipment (owned) as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Equipment and Vehicles      Leasehold improvements      Total  

Acquisition cost

     6,370        6,293        12,663  

Accumulated depreciation

     (5,503      (4,486      (9,989
  

 

 

    

 

 

    

 

 

 

Net carrying amount

     867        1,807        2,674  
  

 

 

    

 

 

    

 

 

 

 

     December 31, 2023  
     Equipment and Vehicles      Leasehold improvements      Total  

Acquisition cost

     6,370        6,272        12,642  

Accumulated depreciation

     (5,292      (4,219      (9,511
  

 

 

    

 

 

    

 

 

 

Net carrying amount

     1,078        2,053        3,131  
  

 

 

    

 

 

    

 

 

 

 

(3)

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

 

     For the three-month period ended March 31, 2024  
     Equipment and Vehicles      Leasehold improvements      Total  

Beginning balance

     1,078        2,053        3,131  

Acquisitions

     —         21        21  

Depreciation

     (211      (267      (478
  

 

 

    

 

 

    

 

 

 

Ending balance

     867        1,807        2,674  
  

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Equipment and Vehicles      Leasehold improvements      Total  

Beginning balance

     1,944        3,125        5,069  

Acquisitions

     7        6        13  

Depreciation

     (301      (306      (607
  

 

 

    

 

 

    

 

 

 

Ending balance

     1,650        2,825        4,475  
  

 

 

    

 

 

    

 

 

 

 

- 26 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(4)

Details of right-of-use assets as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024  
     Building      Equipment and Vehicles      Total  

Acquisition cost

     5,295        967        6,262  

Accumulated depreciation

     (3,067      (407      (3,474
  

 

 

    

 

 

    

 

 

 

Net carrying amount

     2,228        560        2,788  
  

 

 

    

 

 

    

 

 

 

 

     December 31, 2023  
     Building      Equipment and Vehicles      Total  

Acquisition cost

     5,295        928        6,223  

Accumulated depreciation

     (2,325      (420      (2,745
  

 

 

    

 

 

    

 

 

 

Net carrying amount

     2,970        508        3,478  
  

 

 

    

 

 

    

 

 

 

 

(5)

Details of changes in right-of-use assets for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Building      Equipment and Vehicles      Total  

Beginning balance

     2,970        508        3,478  

New contracts

     —         144        144  

Termination

     —         (9      (9

Depreciation

     (742      (83      (825
  

 

 

    

 

 

    

 

 

 

Ending balance

     2,228        560        2,788  
  

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Building      Equipment and Vehicles      Total  

Beginning balance

     5,462        521        5,983  

New contracts

     755        82        837  

Termination

     —         —         —   

Depreciation

     (777      (98      (875
  

 

 

    

 

 

    

 

 

 

Ending balance

     5,440        505        5,945  
  

 

 

    

 

 

    

 

 

 

 

12.

INTANGIBLE ASSETS

 

(1)

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

 

     March 31, 2024  
     Software      Development
cost
     Membership
deposit
     Total  

Acquisition cost

     4,631        3,622        2,371        10,624  

Accumulated amortization

     (4,032      (2,609      —         (6,641
  

 

 

    

 

 

    

 

 

    

 

 

 

Net carrying amount

     599        1,013        2,371        3,983  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     December 31, 2023  
     Software      Development
cost
     Membership
deposit
     Total  

Acquisition cost

     4,328        3,622        2,371        10,321  

Accumulated amortization

     (3,841      (2,428      —         (6,269
  

 

 

    

 

 

    

 

 

    

 

 

 

Net carrying amount

     487        1,194        2,371        4,052  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

- 27 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(2)

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

 

     For the three-month period ended March 31, 2024  
     Software     Development
cost
    Membership
deposit
     Construction
in progress
     Total  

Beginning balance

     487       1,194       2,371        —         4,052  

Acquisitions

     303       —        —         —         303  

Amortization

     (191     (181     —         —         (372
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Ending balance

     599       1,013       2,371        —         3,983  
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2023  
     Software     Development
cost
    Membership
deposit
     Construction
in progress
     Total  

Beginning balance

     704       1,784       2,371        —         4,859  

Acquisitions

     —        —        —         289        289  

Amortization

     (128     (175     —         —         (303
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Ending balance

     576       1,609       2,371        289        4,845  
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

13.

OTHER ASSETS

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

 

     March 31, 2024      December 31, 2023  

Prepaid expenses

     568        484  

 

14.

DEBENTURES

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

 

     March 31, 2024      December 31, 2023  
     Interest rate (%)      Amount      Interest rate (%)      Amount  

Face value of bonds:

           

General bonds

     1.70~4.25        640,000        1.70~4.25        640,000  

Subordinated bonds

     2.13~2.55        950,000        2.13~2.55        950,000  
     

 

 

       

 

 

 

Sub-total

        1,590,000           1,590,000  

Deducted item:

           

Discounts on bonds

        (2,157         (2,341
     

 

 

       

 

 

 

Total

        1,587,843           1,587,659  
     

 

 

       

 

 

 

 

15.

PROVISIONS

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Asset retirement obligation

     1,240        1,227  

 

(2)

Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Beginning balance

     1,227        487  

Increase

     —         754  

Amortization

     13        12  
  

 

 

    

 

 

 

Ending balance

     1,240        1,253  
  

 

 

    

 

 

 

 

- 28 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

16.

NET DEFINED BENEFIT ASSET

The Company’s pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes into account of projected earnings’ increase, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Company is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

 

Volatility of asset

   The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate.

Decrease in profitability of blue chip bonds

   A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation

   Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

 

(1)

Details of net defined benefit asset are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Present value of defined benefit obligation

     (14,576      (13,280

Fair value of plan assets

     14,682        17,221  
  

 

 

    

 

 

 

Net defined benefit asset

     106        3,941  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Beginning balance

     13,280        18,660  

Transfer-in / out

     (3      (4,778

Current service cost

     1,280        999  

Interest cost

     147        242  

Remeasurements

   Financial assumption      (113      546  
   Demographic assumptions      (19      —   
   Experience adjustment      1,012        1,141  

Retirement benefit paid

     (46      (1,322

Others

     (962      (533
  

 

 

    

 

 

 

Ending balance

     14,576        14,955  
     

 

 

    

 

 

 

 

- 29 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(3)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Beginning balance

     17,221        24,607  

Transfer-in / out

     (2,376      (5,563

Interest income

     199        334  

Remeasurements

     (52      (143

Retirement benefit paid

     (310      (1,809
  

 

 

    

 

 

 

Ending balance

     14,682        17,426  
  

 

 

    

 

 

 

 

(4)

The fair value of plan assets as of March 31, 2024 and December 31, 2023 is as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Cash and due from banks etc.

     14,682        17,221  

Meanwhile, the actual revenue of plan assets for the three-month periods ended March 31, 2024 and 2023 is 147 million Won and 191 million Won, respectively.

 

(5)

The amount recognized in profit or loss and total comprehensive income related to the defined benefit plan for the three-month periods ended March 31, 2024 and 2023 is as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Current service cost

     1,280        999  

Net interest expense(income)

     (52      (92
  

 

 

    

 

 

 

Cost recognized in net income

     1,228        907  
  

 

 

    

 

 

 

Remeasurements (*)

     932        1,830  
  

 

 

    

 

 

 

Cost recognized in total comprehensive income

     2,160        2,737  
  

 

 

    

 

 

 

 

(*)

The amount is before income tax effect.

 

17.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

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

 

     March 31, 2024      December 31, 2023  

Other financial liabilities:

     

Accounts payable

     633,301        140,592  

Accrued expenses

     16,205        19,826  

Lease liabilities

     2,619        3,203  
  

 

 

    

 

 

 

Sub-total

     652,125        163,621  
  

 

 

    

 

 

 

Other liabilities:

     

Other miscellaneous liabilities

     1,961        392  
  

 

 

    

 

 

 

Total

     654,086        164,013  
  

 

 

    

 

 

 

 

- 30 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

18.

DERIVATIVES

There are no derivative assets(liabilities) as of March 31, 2024 and December 31, 2023.

 

19.

EQUITY

 

(1)

Details of equity as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Capital

     3,802,676        3,802,676  

Hybrid securities

     4,009,965        3,610,953  

Capital surplus

     11,120,236        11,120,236  

Other equity Treasury stock

     (628      (628

Accumulated other comprehensive income

     (7,810      (7,243
  

 

 

    

 

 

 

Sub-total

     (8,438      (7,871
  

 

 

    

 

 

 

Retained earnings (*1) (*2)

     5,989,634        5,475,004  
  

 

 

    

 

 

 

Total

     24,914,073        24,000,998  
  

 

 

    

 

 

 

 

(*1)

The regulatory reserve for credit loss in retained earnings amounted to 137 million Won and 3,697 million Won as of March 31, 2024 and December 31, 2023 in accordance with the relevant regulation.

(*2)

The earned surplus reserve in retained earnings amounted to 442,650 million Won and 300,190 million Won as of March 31, 2024 and December 31, 2023 in accordance with the Article 53 of the Financial Holding Company Act.

 

(2)

The number of authorized shares and others of the Company are as follows:

 

     March 31, 2024      December 31, 2023  

Shares of common stock authorized

     4,000,000,000 Shares        4,000,000,000 Shares  
Par value      5,000 Won        5,000 Won  

Shares of common stock issued*

     742,591,501 Shares        751,949,461 Shares  

Capital stock

     3,802,676 million Won        3,802,676 million Won  

(*) Due to retirement of earnings, total par value of the shares issued and paid-in capital are different.

 

(3)

Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):

 

     Issue date      Maturity      Interest rate (%)      March 31,
2024
    December 31,
2023
 

Securities in local currency

     2019-07-18        —         3.49        500,000       500,000  

Securities in local currency

     2019-10-11        —         3.32        500,000       500,000  

Securities in local currency

     2020-02-06        —         3.34        400,000       400,000  

Securities in local currency

     2020-06-12        —         3.23        300,000       300,000  

Securities in local currency

     2020-10-23        —         3.00        200,000       200,000  

Securities in local currency

     2021-04-08        —         3.15        200,000       200,000   

Securities in local currency

     2021-10-14        —         3.60        200,000        200,000  

Securities in local currency

     2022-02-17        —         4.10        300,000       300,000  

Securities in local currency

     2022-07-28        —         4.99          300,000         300,000  

 

- 31 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

Securities in local currency

     2022-10-25         —            5.97        220,000       220,000  

Securities in local currency

     2023-02-10        —         4.65        300,000       300,000  

Securities in local currency

     2023-09-07        —         5.04        200,000       200,000  

Securities in local currency

     2024-02-07        —         4.49        400,000       —   

Issuance cost

 

     (10,035     (9,047
           

 

 

   

 

 

 

Total

 

     4,009,965        3,610,953  
  

 

 

   

 

 

 

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

 

(4)

Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Beginning
balance
     Increase
(decrease)
     Income tax
effect
     Ending
balance
 

Net gain (loss) on valuation of financial assets at FVTOCI

     (7,575      161        (42      (7,456

Remeasurements of defined benefit plan

     332        (932      246        (354
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (7,243      (771      204        (7,810
  

 

 

    

 

 

    

 

 

    

 

 

 
     For the three-month period ended March 31, 2023  
     Beginning
balance
     Increase
(decrease)
     Income tax
effect
     Ending
balance
 

Net gain (loss) on valuation of financial assets at FVTOCI

     (27,364      12,311        (3,287      (18,340

Remeasurements of defined benefit plan

     1,204        (1,829      483        (142
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (26,160      10,482        (2,804      (18,482
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(5)

Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Company calculates and discloses the regulatory reserve for credit loss.

 

  1)

Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

 

     March 31, 2024      December 31, 2023  

Beginning balance

     137        3,697  

Planned provision (reversal) of regulatory reserve for credit loss

     57        (3,560
  

 

 

    

 

 

 

Ending balance

     194        137  
  

 

 

    

 

 

 

 

  2)

Provision of regulatory reserve for credit loss, adjusted net income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

 

- 32 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     For the three-month periods ended March 31  
     2024      2023  

Net income before regulatory reserve

     1,167,789        1,456,379  

Provision of regulatory reserve for credit loss

     57        289  

Adjusted net income after the provision of regulatory reserve

     1,167,732        1,456,090  

Dividends to hybrid securities

     (35,258      (30,414

Adjusted net income after regulatory reserve and dividends to hybrid securities

     1,132,474        1,425,676  

Adjusted EPS after regulatory reserve and dividends to hybrid securities (Unit: Korean Won)

     1,510        1,958  

 

(6)

Changes in treasury stocks are as follows (Unit: Korean Won in millions):

 

     For the three-month period ended March 31, 2024  
     Beginning      Acquisition      Retirement      Ending  

Number of shares

     53,945        9,357,960        (9,357,960      53,945  

Carrying amount

     628        136,688        (136,688      628  
     For the three-month period ended March 31, 2023  
     Beginning      Acquisition      Retirement      Ending  

Number of shares

     2,324        —         —         2,324  

Carrying amount

     26        —         —         26  

 

20.

DIVIDENDS

Dividends per share and the total dividends for the fiscal year ending December 31, 2023 were 640 Won and 481,213 million Won, respectively, approved at the regular general shareholder’s meeting held on March 22, 2024, with February 29, 2024 as the dividend record date, and were paid in April 2024.

 

21.

NET INTEREST INCOME

 

(1)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Interest on due from banks

     12,610        13,687  

Other interest income

     25        19  
  

 

 

    

 

 

 

Total

     12,635        13,706  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Interest on debentures

     11,269         7,955  

Other interest expense

     13        12  

Interest on lease liabilities

     34        57  
  

 

 

    

 

 

 

Total

     11,316        8,024  
  

 

 

    

 

 

 

 

22.

NET FEES AND COMMISSIONS INCOME

 

(1)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Fees and commissions income

        407           399  

 

(2)

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

 

- 33 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

     For the three-month periods ended March 31  
     2024      2023  

Fees and commissions paid

     1,366        1,267  

Others

     2,886        2,469  
  

 

 

    

 

 

 

Total

     4,252        3,736  
  

 

 

    

 

 

 

 

23.

DIVIDEND INCOME

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

 

     For the three-month periods ended March 31  
     2024      2023  

Dividend income recognized from investments in subsidiaries

     1,182,977        1,465,825  

Dividend income recognized from FVTOCI

     6,356        3,466  
  

 

 

    

 

 

 

Total

     1,189,333        1,469,291  
  

 

 

    

 

 

 

 

24.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL

 

(1)

Details of gain or loss related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Gains and losses on financial instruments at FVTPL mandatorily measured at fair value

     —         2,023  

 

(2)

Details of net gain or loss on financial instrument at FVTPL are as follows (Unit: Korean Won in millions):

 

               For the three-month periods ended March 31  
               2024      2023  

Derivatives (Held for trading)

   Equity derivatives    Gain on transactions and valuation      —         2,023  

 

25.

PROVISION FOR IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Details of provision for impairment losses due to credit loss recognized are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Provision for impairment losses due to credit loss on loans and other financial assets at amortized cost

     (460      (41

 

- 34 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

26.

GENERAL AND ADMINISTRATIVE EXPENSES

 

(1)

Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Employee benefits

  

Short-term employee benefits

   Salaries      7,565        7,243  
      Employee fringe benefits      2,194        2,703  
   Retirement benefit service costs      1,228        907  
   Share based payments      1,237        (170
        

 

 

    

 

 

 
  

Sub-total

     12,224        10,683  
        

 

 

    

 

 

 

Depreciation and amortization

     1,675        1,785  

Other general and administrative expenses

   Rent      413        452  
   Taxes and public dues      219        206  
   Service charges      439        655  
   Computer and IT related      1,627        1,598  
   Telephone and communication      204        120  
   Operating promotion      284        425  
   Advertising      28        25  
   Printing      25        15  
   Traveling      60        73  
   Supplies      28        34  
   Insurance premium      51        50  
   Reimbursement      171        263  
   Vehicle maintenance      43        55  
   Others      6        6  
        

 

 

    

 

 

 
  

Sub-total

     3,598        3,977  
        

 

 

    

 

 

 
  

Total

        17,497        16,445  
        

 

 

    

 

 

 

 

- 35 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(2)

Share-based payment

Details of performance condition share-based payment granted to executives as of March 31, 2024 and 2023 are as follows.

 

  1)

Performance condition share-based payment

 

Subject to

   Shares granted for the year 2021

Type of payment

   Cash-settled

Vesting period

   January 1, 2021 ~ December 31, 2024

Date of payment

   2025-01-01

Fair value (*1)

   14,095 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   0.75 years

Number of shares remaining

   As of March 31, 2024    239,798 shares
   As of December 31, 2023    239,798 shares

Number of shares granted (*2)

   As of March 31, 2024    239,798 shares
   As of December 31, 2023    239,798 shares

Subject to

   Shares granted for the year 2022

Type of payment

   Cash-settled

Vesting period

   January 1, 2022 ~ December 31, 2025

Date of payment

   2026-01-01

Fair value (*1)

   13,177 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   1.75 years

Number of shares remaining

   As of March 31, 2024    223,176 shares
   As of December 31, 2023    223,176 shares

Number of shares granted (*2)

   As of March 31, 2024    223,176 shares
   As of December 31, 2023    223,176 shares

Subject to

   Shares granted for the year 2023

Type of payment

   Cash-settled

Vesting period

   January 1, 2023 ~ December 31, 2026

Date of payment

   2027-01-01

Fair value (*1)

   12,351 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   2.75 years

Number of shares remaining

   As of March 31, 2024    160,929 shares
   As of December 31, 2023    160,929 shares

Number of shares granted (*2)

   As of March 31, 2024    160,929 shares
   As of December 31, 2023    160,929 shares

 

- 36 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

Subject to

   Shares granted for the year 2024

Type of payment

   Cash-settled

Vesting period

   January 1, 2024 ~ December 31, 2027

Date of payment

   2028-01-01

Fair value (*1)

   11,577 Won

Valuation method

   Black-Scholes Model

Expected dividend rate

   6.48%

Expected maturity date

   3.75 years

Number of shares remaining

   As of March 31, 2024    50,455 shares
   As of December 31, 2023    — 

Number of shares granted (*2)

   As of March 31, 2024    50,455 shares
   As of December 31, 2023    — 

 

(*1)

As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated and used to measure the liability according to the Black Shawls model based on the base price at the time of each settlement.

(*2)

The number of payable stocks is granted at the initial contract date and the payment rate is determined based on the achievement of the pre-determined performance targets. Performance is evaluated as long-term performance indication including relative shareholder return, net income, return on equity (ROE), non-performing loan ratio and job performance.

 

  2)

The Company accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of March 31, 2024 and December 31, 2023 the book value of the liabilities related to the performance condition share-based payments recognized by the Company is 8,884 million Won and 9,598 million Won.

 

27.

NON-OPERATING INCOME (EXPENSES)

 

(1)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Other non-operating income

     3        1  

Other non-operating expense

     (21      (10
  

 

 

    

 

 

 

Total

     (18      (9
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Lease change cancellation gain

     1         —    

Others

     2        1  
  

 

 

    

 

 

 

Total

     3        1  
  

 

 

    

 

 

 

 

(3)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Donations

     15         10   

Others

     6        —   
  

 

 

    

 

 

 

Total

     21        10  
  

 

 

    

 

 

 

 

- 37 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

28.

INCOME TAX EXPENSE (INCOME)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Current tax expense

     

Current tax expense with respect to the current period

     —         —   
  

 

 

    

 

 

 

Deferred tax expense (income)

     

Change in deferred tax assets (liabilities) due to temporary differences

     839        3,589  

Tax expense (income) directly attributable to equity

     204        (2,804
  

 

 

    

 

 

 

Sub-total

     1,043        785  
  

 

 

    

 

 

 

Income tax expense (income)

     1,043        785  
  

 

 

    

 

 

 

 

29.

EARNINGS PER SHARE (“EPS”)

 

(1)

Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

 

     For the three-month periods ended March 31  
     2024      2023  

Net income

     1,167,789        1,456,379  

Dividends to hybrid securities

     (35,258      (30,414

Net income attributable to common shareholders

     1,132,531        1,425,965  

Weighted average number of common shares outstanding (Unit: million shares)

     750        728  

Basic EPS (Unit: Korean Won)

     1,510        1,959  

 

(2)

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

 

    

For the three-month period ended March 31, 2024

 
    

Period

   Number of
shares
   Dates    Accumulated number
of shares outstanding
during period
 

Common shares issued at the beginning of the period

   2024-01-01~2024-03-31    751,949,461    91      68,427,400,951  

Treasury stock

   2024-01-01~2024-03-31    (53,945)    91      (4,908,995

Acquisition and Retirement of treasury stock

   2024-01-01~2024-03-31    (9,357,960)         (168,443,280
           

 

 

 
   Sub-total (①)            68,254,048,676  
           

 

 

 

Weighted average number of common shares outstanding (②=(①/91)

     750,044,491  
           

 

 

 

 

    

For the three-month period ended March 31, 2023

 
    

Period

   Number of
shares
   Dates    Accumulated number
of shares outstanding
during period
 

Common shares issued at the beginning of the period

   2023-01-01~2023-03-31    728,060,549    90      65,525,449,410  

Treasury stock

   2023-01-01~2023-03-31    (2,324)    90      (209,160
           

 

 

 
   Sub-total (①)            65,525,240,250  
           

 

 

 

Weighted average number of common shares outstanding (②=(①/90)

     728,058,225  
           

 

 

 

 

- 38 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

Diluted EPS is equal to basic EPS because there is no dilution effect for the three-month periods ended March 31, 2024 and 2023.

 

30.

CONTINGENT LIABILITIES AND COMMITMENTS

 

(1)

Litigation case

As of March 31, 2024 and December 31, 2023, the Company has no litigation case in progress.

 

(2)

Details of loan commitments with financial institutions are as follows (Unit: Korean Won in millions):

 

          March 31, 2024      December 31, 2023  
    

Financial institutions

   Line of credit      Loan balance      Line of credit      Loan balance  

Loans

   Standard Chartered Bank Korea Ltd.      100,000        —         100,000        —   

 

- 39 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

31.

RELATED PARTY TRANSACTIONS

Related parties of the Company as of March 31, 2024 and December 31, 2023, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

(1)

Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

 

Related parties

  

Title of account

   March 31, 2024      December 31, 2023  

Subsidiaries

        

Woori Bank

   Cash and cash equivalents      684,829        289,507  
  

Other financial assets

     1,849,532        1,094,635  
  

Allowance for credit losses

     (1,123      (663
  

Other financial liabilities

     146,073        131,397  

Woori Card Co., Ltd.

  

Other financial assets

     15,002        8,597  
  

Other financial liabilities

     150        225  

Woori Financial Capital Co., Ltd.

  

Other financial assets

     919        816  
  

Other financial liabilities

     214        4,430  

Woori Investment Bank Co., Ltd.

  

Other financial assets

     1        —   
  

Other financial liabilities

     1,740        —   

Woori Asset Trust Co., Ltd.

  

Other financial assets

     1,999        —   

Woori Savings Bank

  

Other financial liabilities

     1,894        1,271  

Woori Financial F&I Co., Ltd.

  

Other financial liabilities

     2,684        1,650  

Woori Asset Management Corp (*)

  

Other financial liabilities

     46        46  

Woori Venture Partners Co., Ltd.

  

Other financial assets

     848        —   

Woori Private Equity Asset Management Co. Ltd.

  

Other financial assets

     322        76  

Woori Credit Information Co., Ltd.

  

Other financial assets

     778        744  

Woori Fund Service Co., Ltd.

  

Other financial assets

     703        436  

Woori FIS Co., Ltd.

  

Other financial assets

     1        —   
  

Other financial liabilities

     1,548        1,540  

Woori Finance Research Institute Co., Ltd.

  

Other financial assets

     176        175  
  

Other financial liabilities

     —         2,590  

Associates of subsidiaries

        

W Service Networks Co., Ltd.

  

Other financial liabilities

     34        48  

 

(*)

Other financial liabilities of Woori Global Asset Management Co., Ltd.are included due to merger during the current period.

 

- 40 -


WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(2)

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

 

          For the three-month periods ended March 31  

Related party

  

Title of account

   2024      2023  

Subsidiaries

        

Woori Bank

  

Interest income

     12,635        13,706  
  

Fees and commissions income

     406        399  
  

Dividend income

     1,131,996        1,372,572  
  

Interest expenses (*)

     29        53  
  

Fees and commissions expense

     3        2  
  

Provision of impairment loss due to credit loss

     460        41  
  

General and administrative expenses (*)

     1,136        1,193  

Woori Card Co., Ltd.

  

Dividend income

     26,199        42,156  

Woori Financial Capital Co., Ltd.

  

Dividend income

     27,774        38,888  
  

Interest expenses (*)

     2        —   
  

General and administrative expenses (*)

     25        —   

Woori Investment Bank Co., Ltd.(*1)

  

Dividend income

     —         11,803  

Woori Asset Trust Co., Ltd

  

Dividend income

     —         780  

Woori Savings Bank

  

Dividend income

     —         1,383  

Woori Venture Partners Co., Ltd.

  

Dividend income

     800        —   

Woori Credit Information Co., Ltd.

  

Dividend income

     1,504        535  

Woori Fund Service
Co., Ltd.

  

Dividend income

     1,060        1,174  

Woori FIS Co., Ltd.

  

General and administrative expenses

     1,472        1,453  

Woori Finance Research Institute Co., Ltd.

  

Fees and commissions expenses

     2,100        1,700  

Associates of subsidiaries

        

W Service Networks Co., Ltd.

  

General and administrative expenses

     105        281  

 

(*)

The depreciation of right-of-use assets and interest expense of lease liabilities arising from lease transactions during the current term and prior term are included.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(3)

The details of the right-of-use assets and lease liabilities due to lease transactions with related parties as of March 31, 2024 and December 31, 2023 are as follows (Unit: Korea Won in millions):

 

Related parties

  

Title of account

   March 31, 2024      December 31, 2023  

Subsidiary

   Woori Bank    Right-of-use assets      2,227        2,970  
      Lease liabilities (*)      2,021        2,658  
  

Woori Financial
Capital Co., Ltd.

   Right-of-use assets      201        226  
      Lease liabilities (*)      214        238  

 

(*)

Cash outflows of lease liabilities redemption for the years ended March 31, 2024 and 2023 are 693 million Won and 690 million Won, respectively.

 

(4)

The details of loan and borrowing transactions with related parties for the three-month periods ended March 31, 2024 and 2023 are as follows (Unit: Korea Won in millions):

 

               For the three-month period ended March 31, 2024  

Related parties

  

Title of account

   Beginning
balance
     Increase      Decrease      Ending
balance
 

Subsidiary

   Woori Bank    Due from banks (*)      1,354,000        1,507,000        874,000        1,987,000  

 

(*)

Excludes due from banks without withdrawal limitations.

 

               For the three-month period ended March 31, 2023  

Related parties

  

Title of account

   Beginning
balance
     Increase      Decrease      Ending
balance
 

Subsidiary

   Woori Bank    Deposit (*)      1,595,000        1,855,000        1,265,000        2,185,000  

 

(*)

Excludes due from banks without withdrawal limitations.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

(5)

The details of equity-related transactions with related parties are as follows (Unit: Korean Won in million)

 

          For the three-month period ended
March 31, 2024
 

Related parties

   Acquisition of interests  

Subsidiary

   Woori Asset Trust Co Ltd (*1)      200,000  

Subsidiary

   Woori Asset Management Corp (*2)      41,376  

 

(*1)

During the current period, the capital increase amount of 200,000 million Won was made.

(*2)

The Company acquired interest (22.5%) of Woori Asset Management Corp to make it wholly owned subsidiary.

 

          For the three-month period ended
March 31, 2023
 

Related parties

   Acquisition of hybrid securities  

Subsidiary

  

Woori Asset Trust Co., Ltd(*1)

     179,444  

Subsidiary

  

Woori Venture Partners Co., Ltd.(*2)

     212,522  

 

(*1)

During the quarter, 28.1% interest in Woori Asset Trust Co., Ltd. (excluding treasury stocks, 21.3% when including treasury stocks) was acquired additionally.

(*2)

During the quarter, we acquired 53.9% stake in Woori Venture Partners Co., Ltd. (excluding treasury stocks, 52.0% when including treasury stocks) and incorporated into a subsidiary.

 

(6)

There are no guarantees provided to the related parties. The unused commitments and payment guarantees provided from the related parties are as follows (Unit: Korean Won in millions):

 

Related parties

   March 31, 2024      December 31, 2023     

Warranty

Subsidiary

  

Woori Card Co., Ltd.

     797        715      Unused loan commitment

 

(7)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Short-term employee salaries

     1,167        1,435  

Retirement benefit service costs

     47        81  

Share-based compensation

     1,220        (104
  

 

 

    

 

 

 

Total

     2,434        1,412  
  

 

 

    

 

 

 

Key management includes registered executives and non-registered executives. The Company has not recognized any outstanding assets, allowance and related impairment loss due to credit losses from transaction with key management as of March 31, 2024 and December 31, 2023. Liabilities related to key management compensation are 8,792 million Won and 10,457 million Won as of March 31, 2024 and December 31, 2023, respectively.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND 2023 (UNAUDITED)

 

32.

LEASES

 

(1)

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

 

     March 31, 2024      December 31, 2023  

Lease payments:

     

Within one year

     2,392        2,969  

After one year but within five years

     291        323  
  

 

 

    

 

 

 

Total

     2,683        3,292  
  

 

 

    

 

 

 

 

(2)

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

 

     For the three-month periods ended March 31  
     2024      2023  

Cash outflows from lease

     782        848  

 

(3)

Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

 

     For the three-month periods ended March 31  
     2024      2023  

Lease payments for which the underlying short-term lease payments

     —         13  

asset is of low value

     29        38  

 

33.

EVENTS AFTER THE REPORTING PERIOD

 

  (1)

On April 8, 2024, the Company acquired additional interest (1.95%) of Woori Asset Trust Co., Ltd.

 

  (2)

On April 26, 2024, the Board of Directors has declared an quarterly dividend of 180 Won per share (133,657 million Won in total) and dividends were paid in May, 2024.

 

  (3)

On May 3, 2024, Woori Investment Bank Co., Ltd. (dissolution company), the subsidiary of the Company, and Korea Foss Securities Co., Ltd. (surviving company) entered into a merger agreement. Upon completion of the merger process, subject to resolutions by each company’s shareholder meeting or board of directors and approval by the Financial Services Commission, the merged company is scheduled to be incorporated into our company as a subsidiary.

 

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