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6-K 1 d897832d6k.htm FORM 6-K Form 6-K Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2025

Commission File Number: 000-53445

KB Financial Group Inc.

(Translation of registrant’s name into English)

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

(Address of principal executive office)

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

Form 20-F ☒ Form 40-F ☐

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Audit Report of KB Securities Co., Ltd. for Fiscal Year 2024

On March 5, 2025, KB Financial Group Inc. disclosed audit reports of KB Securities Co., Ltd. (“KB Securities”), its wholly-owned subsidiary, for fiscal year 2024 based on the International Financial Reporting Standards as adopted by the Republic of Korea (including the consolidated and separate financial statements of KB Securities as of and for the years ended December 31, 2024 and 2023 and related notes) received from Samil PricewaterhouseCoopers, its independent auditor. The financial statements in such reports have not been approved by the shareholders of KB Securities and remain subject to change.

KB Financial Group Inc. is furnishing the following documents as exhibits to this Form 6-K filing:

Exhibit 99.1: An English-language translation of the Consolidated Audit Report of KB Securities for FY 2023.

Exhibit 99.2: An English-language translation of the Separate Audit Report of KB Securities for FY 2023.

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SIGNATURES

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


						KB Financial Group Inc.
						(Registrant)

Date: March 5, 2025						By: /s/ Sang Rock Na
						(Signature)

						Name: Sang Rock Na
						Title: Managing Director and Chief Financial Officer

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Exhibit 99.1

KB SECURITIES CO., LTD.

and Subsidiaries

Consolidated Financial Statements

December 31, 2024 and 2023

(With Independent Auditor’s Report Thereon)

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KB SECURITIES CO., LTD. and Subsidiaries

Index

December 31, 2024 and 2023


	Page(s)

Independent Auditor’s Report		1~3

Consolidated Financial Statements

Consolidated Statements of Financial Position		4

Consolidated Statements of Profit or Loss		5

Consolidated Statements of Comprehensive Income		6

Consolidated Statements of Changes in Equity		7~8

Consolidated Statements of Cash Flows		9

Notes to the Consolidated Financial Statements		10~150

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Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of KB Securities Co.,Ltd.

Opinion

We have audited the consolidated financial statements of KB Securities Co.,Ltd. and its subsidiaries (collectively referred to as the “Group”) which comprise the consolidated statements of financial position as at December 31, 2024 and 2023, and the consolidated statements of profit or loss, consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of KB Securities Co.,Ltd. and its subsidiaries as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the consolidated financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other Matters

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

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

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Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 5, 2025

This report is effective as of March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Financial Position

December 31, 2024 and 2023


(in Korean won)	Notes		2024		2023
Assets
Cash and deposits		5,36,37,38		3,322,504,801,129		2,927,067,229,634
Financial assets at fair value through profit or loss		6,36,37,38		37,098,018,781,130		35,948,948,684,278
Derivative financial assets		7,36,37,38,39		1,394,203,700,793		1,138,492,891,097
Financial assets at fair value through other comprehensive income		8,36,37,38		6,485,291,405,839		5,134,512,868,551
Investments in associates		9		417,779,179,720		311,590,371,758
Financial assets measured at amortised cost		10,36,37,38,39		10,605,842,882,283		10,418,945,936,461
Property and equipment		11,40		264,565,054,272		255,140,828,549
Investment properties		12		419,452,413,193		616,922,347,428
Intangible assets		13		270,013,083,580		272,296,277,074
Current tax assets				6,817,736,155		12,562,733,171
Deferred tax assets		35		101,231,125,789		1,023,220,091
Other financial assets		14,36,37,38,39		2,813,756,957,484		4,072,941,183,368
Other assets		15		191,058,232,236		156,475,314,503

Total assets				63,390,535,353,603		61,266,919,885,963

Liabilities
Deposit liabilities		16,36,37,38		7,725,858,827,353		7,122,595,110,221
Financial liabilities at fair value through profit or loss		6,36,37,38,39		10,568,567,281,885		10,835,881,099,625
Derivative financial liabilities		7,36,37,38,39		1,924,224,653,973		1,816,172,470,767
Borrowings		17,36,37,38,39		33,454,601,384,335		30,640,156,334,629
Current tax liabilities				2,088,698,400		2,315,452,033
Net defined benefit liabilities		18		68,664,255,596		62,564,425,198
Deferred tax liabilities		35		—		11,913,920,671
Provisions		19		137,559,873,490		212,988,122,952
Other financial liabilities		20,36,37,38,39,40		2,210,452,579,371		3,894,408,699,725
Other liabilities		21		410,188,122,844		371,892,231,675

Total liabilities				56,502,205,677,247		54,970,887,867,496

Equity
Share capital		22		1,493,102,120,000		1,493,102,120,000
Hybrid securities		23		756,092,772,000		626,093,392,000
Other paid-in capital		24		1,479,259,900,170		1,478,687,978,420
Retained earnings		25		2,709,817,622,121		2,304,302,712,341
Other components of equity		26		366,918,638,122		322,497,946,084

Equity attributable to shareholders of the Parent Company				6,805,191,052,413		6,224,684,148,845
Non-controlling interest				83,138,623,943		71,347,869,622

Total equity				6,888,329,676,356		6,296,032,018,467

Total liabilities and equity				63,390,535,353,603		61,266,919,885,963

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

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KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Profit or Loss

Years Ended December 31, 2024 and 2023


(in Korean won)	Notes		2024			2023
Operating income
Fee and commission income		27		996,126,674,623			946,466,679,740
Gain on valuation and disposal of financial instruments		28		6,736,722,555,374			7,721,803,264,977
Interest income		29		1,786,484,002,043			1,763,585,063,174
Interest income from financial instruments at FVTPL				845,561,099,273			810,712,741,938
Interest income in applying of effective interest rate				940,922,902,770			952,872,321,236
Gain on valuation and disposal of financial assets measured at amortised costs		30		93,211,647,521			8,985,668,089
Gain on foreign currency transactions		31		1,003,250,074,144			929,983,245,366
Other operating income		32		216,235,771,509			214,316,189,404

				10,832,030,725,214			11,585,140,110,750

Operating expenses
Fee and commission expense		27		224,247,029,796			239,341,389,849
Loss on valuation and disposal of financial instruments		28		6,596,582,730,529			7,488,880,324,414
Interest expense		29		1,179,191,194,744			1,148,794,249,725
Loss on valuation and disposal of financial assets measured at amortised costs		30		145,590,870,688			151,760,490,167
Loss on foreign currency transactions		31		855,259,385,623			874,317,352,206
Selling and administrative expenses		33		980,571,344,291			903,560,375,531
Other operating expenses		32		69,801,692,335			98,331,804,366

				10,051,244,248,006			10,904,985,986,258

Operating profit				780,786,477,208			680,154,124,492
Non-operating income		34		79,952,919,885			67,304,397,172
Non-operating expenses		34		112,106,383,967			254,697,064,046

Profit before income tax				748,633,013,126			492,761,457,618
Income tax expense		35		158,272,192,817			104,733,620,558

Profit for the year				590,360,820,309			388,027,837,060

Profit attributable to:
Shareholders of the Parent Company				591,153,189,731			395,015,482,840
Non-controlling interest				(792,369,422	)		(6,987,645,780	)

The above consolidated statements of profit or loss should be read in conjunction with the accompanying notes.

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KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023


(in Korean won)	Notes		2024			2023
Profit for the year				590,360,820,309			388,027,837,060

Other comprehensive income(loss)
Items that will not be reclassified to profit or loss
Net gains on valuation of equity instruments at fair value through other comprehensive income		8,26		8,839,011,424			24,960,028,697
Fair value changes on financial liabilities designated at fair value due to own credit risk		6,26		(5,514,924,589	)		(52,863,029,391	)
Remeasurements of the net defined benefit liabilities		18,26		(4,690,189,048	)		(5,008,801,399	)
Revaluation of property and equipment		26		—			84,435,863
Items that may be subsequently reclassified to profit or loss
Net gains(losses) on valuation of debt instrument at fair value through other comprehensive income		8,26		(1,984,821,331	)		30,951,147,161
Share of other comprehensive income(loss) of associates		9,26		6,533,680,406			(4,014,207,534	)
Gains(losses) on hedge of net investments in foreign operations		7,26		(21,669,806,592	)		2,297,619,786
Exchange difference on translation of foreign operations		26		66,396,452,674			3,393,879,961

Other comprehensive income for the year, net of tax				47,909,402,944			(198,926,856	)

Total comprehensive income for the year				638,270,223,253			387,828,910,204

Total comprehensive income for the year attributable to:
Shareholders of the Parent Company				636,999,680,242			394,210,790,673
Non-controlling interest				1,270,543,011			(6,381,880,469	)

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

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KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2024 and 2023


(in Korean won)	Attributable to the Shareholder of the Parent Company
	Share Capital		Hybrid Securities		Other Paid In Capital		Retained Earnings			Other Components of Equity			Other Comprehensive Income for the Disposal Group		Total			Non-controlling Interest			Total Equity
Balance at January 1, 2023		1,493,102,120,000		506,130,312,000		1,478,687,978,420		2,038,449,776,857			323,302,638,251			—		5,839,672,825,528			29,117,732,967			5,868,790,558,495
Issuance of hybrid securities		—		119,963,080,000		—		—			—			—		119,963,080,000			—			119,963,080,000
Dividends of hybrid securities		—		—		—		(29,162,547,356	)		—			—		(29,162,547,356	)		—			(29,162,547,356	)
Dividends		—		—		—		(100,000,000,000	)		—			—		(100,000,000,000	)		—			(100,000,000,000	)
Changes in scope of consolidation		—		—		—		—			—			—		—			48,612,017,124			48,612,017,124
Total comprehensive income
Profit for the year		—		—		—		395,015,482,840			—			—		395,015,482,840			(6,987,645,780	)		388,027,837,060
Gains on financial instruments at fair value through other comprehensive income		—		—		—		—			55,911,175,858			—		55,911,175,858			—			55,911,175,858
Fair value changes on financial liabilities designated at fair value due to own credit risk		—		—		—		—			(52,863,029,391	)		—		(52,863,029,391	)		—			(52,863,029,391	)
Share of other comprehensive income of associates		—		—		—		—			(4,014,207,534	)		—		(4,014,207,534	)		—			(4,014,207,534	)
Revaluation of property and equipment		—		—				—			84,435,863			—		84,435,863			—			84,435,863
Remeasurements of net defined benefit liabilities		—		—		—		—			(5,008,801,399	)		—		(5,008,801,399	)		—			(5,008,801,399	)
Gains on hedge of net investments in foreign operations		—		—		—		—			2,297,619,786			—		2,297,619,786			—			2,297,619,786
Exchange difference on translation of foreign operations		—		—		—		—			2,788,114,650			—		2,788,114,650			605,765,311			3,393,879,961

Balance at December 31, 2023		1,493,102,120,000		626,093,392,000		1,478,687,978,420		2,304,302,712,341			322,497,946,084			—		6,224,684,148,845			71,347,869,622			6,296,032,018,467

Balance at January 1, 2024		1,493,102,120,000		626,093,392,000		1,478,687,978,420		2,304,302,712,341			322,497,946,084			—		6,224,684,148,845			71,347,869,622			6,296,032,018,467
Issuance of hybrid securities		—		129,999,380,000		—		—			—			—		129,999,380,000			—			129,999,380,000
Dividends of hybrid securities		—		—		—		(37,064,078,424	)		—			—		(37,064,078,424	)		—			(37,064,078,424	)
Dividends		—		—		—		(150,000,000,000	)		—			—		(150,000,000,000	)		—			(150,000,000,000	)
Changes in scope of consolidation		—		—		571,921,750		—			—			—		571,921,750			10,520,211,310			11,092,133,060
Replacement due to disposal of equity investments at FVOCI		—		—		—		1,425,798,473			(1,425,798,473	)		—		—			—			—
Total comprehensive income
Profit for the year		—		—		—		591,153,189,731			—			—		591,153,189,731			(792,369,422	)		590,360,820,309
Gains on financial instruments at fair value through other comprehensive income		—		—		—		—			6,854,190,093			—		6,854,190,093			—			6,854,190,093

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KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2024 and 2023


Fair value changes on financial liabilities designated at fair value due to own credit risk	—	—	—	—	(5,514,924,589	)	—	(5,514,924,589	)	—	(5,514,924,589	)
Share of other comprehensive income of associates	—	—	—	—	6,533,680,406		—	6,533,680,406		—	6,533,680,406
Revaluation of property and equipment	—	—		—	—		—	—		—	—
Remeasurements of net defined benefit liabilities	—	—	—	—	(4,690,189,048	)	—	(4,690,189,048	)	—	(4,690,189,048	)
Gains on hedge of net investments in foreign operations	—	—	—	—	(21,669,806,592	)	—	(21,669,806,592	)	—	(21,669,806,592	)
Exchange difference on translation of foreign operations	—	—	—	—	64,333,540,241		—	64,333,540,241		2,062,912,433	66,396,452,674

Balance at December 31, 2024	1,493,102,120,000	756,092,772,000	1,479,259,900,170	2,709,817,622,121	366,918,638,122		—	6,805,191,052,413		83,138,623,943	6,888,329,676,356

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.

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KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2024 and 2023


(in Korean won)	Notes	2024			2023
Cash flows from operating activities
Cash generated from operating activities
Profit for the year			590,360,820,309			388,027,837,060
Adjustment for non-cash items	43		(235,405,440,147	)		(474,261,573,889	)
Changes in operating assets and liabilities	43		(1,481,806,807,935	)		(7,088,767,083,053	)

			(1,126,851,427,773	)		(7,175,000,819,882	)
Interest received			1,723,472,495,685			1,660,160,712,396
Interest paid			(1,162,048,104,085	)		(1,115,515,065,847	)
Dividends received			87,216,895,805			63,458,130,553
Income taxes paid			(265,384,713,273	)		(9,860,592,769	)

Net cash used in operating activities			(743,594,853,641	)		(6,576,757,635,549	)

Cash flows from investing activities
Decrease in long-term deposit			4,904,563,265			509,078,880,335
Acquisition of financial assets at fair value through other comprehensive income			(5,810,505,707,282	)		(5,625,833,675,953	)
Disposal of financial assets at fair value through other comprehensive income			4,537,478,148,513			5,403,026,586,760
Acquisition of investments of associates	9		(189,694,468,319	)		(40,467,286,821	)
Disposal of investment of associates	9		39,028,047,799			15,007,418,594
Net cash flows from the acquisition of subsidiaries			—			(15,015,552,002	)
Net cash flows from the disposal of subsidiaries			4,899,392,910			20,017,582,788
Acquisition of property and equipment	11		(29,580,876,276	)		(16,959,654,589	)
Disposal of property and equipment	11		868,027,735			—
Acquisition of intangible assets	13		(64,199,531,738	)		(84,071,797,962	)
Disposal of intangible assets	13		11,587,324,372			2,026,623,952
Acquisition of investment properties	12		—			(122,917,226,640	)
Disposal of investment properties	12		—			2,203,720,000
Others			(91,281,928	)		(77,219,607	)

Net cash provided by investing activities			(1,495,306,360,949	)		46,018,398,855

Cash flows from financing activities
Increase in borrowings	43		1,685,010,912,522			5,258,215,770,958
Issuance of debentures	43		1,658,655,508,229			1,014,244,570,546
Repayment of debentures	43		(810,000,000,000	)		(340,000,000,000	)
Increase in guarantee deposit liabilities	43		(565,525,605	)		3,001,964,459
Dividends paid	25		(150,000,000,000	)		(100,000,000,000	)
Decrease of lease liabilities	43		(46,492,571,462	)		(35,301,268,346	)
Issuance of hybrid securities	23		129,999,380,000			119,963,080,000
Dividends of hybrid securities	25		(42,652,275,000	)		(25,167,500,000	)
Increase(decrease) in other liabilities	43		(32,697,142,966	)		6,473,096,242

Net cash provided by financing activities			2,391,258,285,718			5,901,429,713,859

Effect of exchange rate changes on cash and cash equivalents			15,979,335,695			(569,201,171	)

Net increase in cash and cash equivalents			168,336,406,823			(629,878,724,006	)
Cash and cash equivalents at the beginning of the year	5		614,750,427,164			1,244,629,151,170

Cash and cash equivalents in consolidated statement of financial position as at the end of the year	5		783,086,833,987			614,750,427,164

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

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

1. General Information

General information of KB Securities Co., Ltd. (the “Parent Company” or “KB Securities”) which is a controlling company in accordance with Korean IFRS No.1110 Consolidated Financial Statements, and 69 subsidiaries including KBFG Securities America Inc. is as follows:

The Parent Company was established on June 1, 1962, under the name of Kookil Securities Co., Ltd. On June 5, 1986, the Parent Company changed its name to “Hyundai Securities Co., Ltd.”. After several capital increases, the share capital of the Parent Company amounts to 1,493,102 million as at December 31, 2024.

The Parent Company became a wholly owned subsidiary of KB Financial Group Inc. on October 19, 2016, through a comprehensive exchange of shares. At the end of the reporting period, KB Financial Group Inc. owns 100% of ordinary shares of the Parent Company.

Meanwhile, the Parent Company merged with KB Investment & Securities Co., Ltd. (the “KB Investment & Securities”) on December 30, 2016 as a surviving company and changed its name to KB Securities Co., Ltd. As at December 31, 2024, the Parent Company has 80 branch offices in Korea and one overseas branch office.

Details of the consolidated subsidiaries as at December 31, 2024 and 2023, are as follows:


	2024
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
The Parent Company	KBFG Securities America Inc.	Investment, advisory	100.00	USA	December
	KB Securities Hong Kong Ltd.	Investment, advisory	100.00	Hong Kong	December
	KB Securities Vietnam Joint Stock Company	Investment, advisory	99.81	Vietnam	December
	KB FINA Joint Stock Company	IT(Fintech)	100.00	Vietnam	December
	PT. KB Valbury Sekuritas	Investment, advisory	65.00	Indonesia	December
	KB Digital Innovation&growth New Technology Business Investment Fund 1	Other financial	20.00	Korea	December
	KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1	Other financial	42.86	Korea	December
	JB New Jersey Private Real Estate Fund 1	Funds	98.15	Korea	December
	LB Ireland Private Real Estate Investment Trust 8	Funds	96.64	Korea	December
	Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15	Funds	98.51	Korea	December
	JB Dry Street Private Fund 1	Funds	100.00	Korea	December
	JB Australia108 Private Fund 1	Funds	100.00	Korea	December
	JB Forge Private Fund 1	Funds	100.00	Korea	December
	JB Hall Street Private Fund 1	Funds	100.00	Korea	December
	JB Margaret Street Private Fund 1	Funds	100.00	Korea	December
	GH Real Estate I LP	Investment	81.00	Guernsey	December
	GVA Europe Pre-IPO Private Investment Trust No.1	Funds	100.00	Korea	December
	LIFE Global Reits Pre-IPO General Private Investment Trust 1	Funds	99.89	Korea	December
	Able Gwonseon 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Able Sewoon Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	KB MyeongJi 1st Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Dangjin 1st Co.,Ltd. 1	Asset-backed securitization	—	Korea	December

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2024
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	KB Mapo 2nd Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Wonchang 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Zitaress 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Beomeo-one Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 4th Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Powerplay 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Dosan 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Able Maseok 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	TW Seocho 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	TW Seocho 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Wave 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Next 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	YSMC 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Gyeongsan Logis 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Stoke 2nd Corp 1	Asset-backed securitization	—	Korea	December
	KB Global Contents Private Investment Fund 1	Other financial	27.27	Korea	December
	Newstar Seongnam 1st Co.,Ltd 1	Asset-backed securitization	—	Korea	December
	KPS Sihwa 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar NRB First Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able alpha Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11	Funds	99.78	Korea	December
	KB Securities ESG Value Enhancement Fund	Other financial	93.75	Korea	December
	Able Eunhwasam 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Sina 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 7th Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	NewStar Yui the 1st 1	Asset-backed securitization	—	Korea	December
	able hi position 1st 1	Asset-backed securitization	—	Korea	December
	Graha 2nd Co., Ltd.1	Asset-backed securitization	—	Korea	December
	Able Yongin Wonsam 2nd Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	ABLE GUNPO 1ST CO.,LTD. 1	Asset-backed securitization	—	Korea	December
	TRUE HOUSE FIRST CO., LTD. 1	Asset-backed securitization	—	Korea	December
	Breeze Air Primary Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Gongpyeong 3rd Co.,Ltd 1	Asset-backed securitization	—	Korea	December
	NEW STAR L CARD 1ST CO.,LTD. 1	Asset-backed securitization	—	Korea	December

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2024
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	Olivia 1st Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	THE APOGEE THE FIRST CO.,LTD. 1	Asset-backed securitization	—	Korea	December
	EULJI NAIN 1ST CO.,LTD. 1	Asset-backed securitization	—	Korea	December
	E&F Backsapphire Private Equity Fund	Other financial	98.76	Korea	December
	Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)	Funds	99.99	Korea	December
	Able Civic 4th Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	NEWSTAR EXPER 1ST CO.,LTD. 1	Asset-backed securitization	—	Korea	December
	Mangrove Feeder Fund	Funds	74.90	Cayman Islands	December
Mangrove Feeder Fund	Mangrove Master Fund	Funds	100.00	Cayman Islands	December
KB Securities Hong Kong Ltd.	Global Investment Opportunity Limited	Financial & real-estate	100.00	Malaysia	December
E&F Backsapphire Private Equity Fund	Black Sapphire Holdings Co.,Ltd.	Other financial	100.00	Korea
The Parent Company. YSMC 1st Co., Ltd.	K-1 23th Yeoksam Real Estate Investment Trust Company	Real-estate Investment	51.11	Korea	December

1	The Group has a substantive power over the special purpose entities (“SPEs”) or investment trusts and is exposed to variable returns. Accordingly, these SPEs and investment trusts are included in subsidiaries although the Group’s ownership is less than 50%.


	2023
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
The Parent Company	KBFG Securities America Inc.	Investment, advisory	100.00	USA	December
	KB Securities Hong Kong Ltd.	Investment, advisory	100.00	Hong Kong	December
	KB Securities Vietnam Joint Stock Company	Investment, advisory	99.81	Vietnam	December
	KB FINA Joint Stock Company	IT(Fintech)	77.82	Vietnam	December
	PT. KB Valbury Sekuritas	Investment, advisory	65.00	Indonesia	December
	KB Digital Innovation&growth New Technology Business Investment Fund 1	Other financial	20.00	Korea	December
	KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1	Other financial	42.86	Korea	December
	JB New Jersey Private Real Estate Fund 1	Funds	98.15	Korea	December
	LB Ireland Private Real Estate Investment Trust 8	Funds	96.64	Korea	December
	Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15	Funds	98.51	Korea	December
	Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38	Funds	53.25	Korea	December
	JB Dry Street Private Fund 1	Funds	100.00	Korea	December
	JB Australia108 Private Fund 1	Funds	100.00	Korea	December
	JB Forge Private Fund 1	Funds	100.00	Korea	December
	JB Hall Street Private Fund 1	Funds	100.00	Korea	December
	JB Margaret Street Private Fund 1	Funds	100.00	Korea	December
	GH Real Estate I LP	Investment	81.00	Guernsey	December
	GVA Europe Pre-IPO Private Investment Trust No.1	Funds	100.00	Korea	December

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	LIFE Global Reits Pre-IPO General Private Investment Trust 1	Funds	99.50	Korea	December
	Able Gwonseon 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar IP Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Able Gongpyeong 1st Co.,Ltd 1	Asset-backed securitization	—	Korea	December
	Newstar Believe Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	ABR Joongang2 1st Co.,Ltd 1	Asset-backed securitization	—	Korea	December
	KB Tongyoung 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Able Sewoon Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Gasan 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able PT 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Newstar Plus 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	KB MyeongJi 1st Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Dangjin 1st Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	KB Osansegyo 2nd Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	KB Mapo 2nd Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Wonchang 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Zitaress 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Beomeo-one Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	KB Infra 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Sina Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	KB Gold 1st Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Able MK 1st Co.Ltd 1	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 4th Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	HD Value 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Powerplay 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Dosan 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Able Maseok 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	TW Seocho 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	TW Seocho 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Wave 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Lamdamine 1st Co.,Ltd 1	Asset-backed securitization	—	Korea	December
	Able Next 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	Newstar Enerbil 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	YSMC 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	KB SmartSchool 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Bighouse 7th Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Gyeongsan Logis 1st Co., Ltd 1	Asset-backed securitization	—	Korea	December
	Stoke 2nd Corp 1	Asset-backed securitization	—	Korea	December
	KB Samyoung Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	KB Global Contents Private Investment Fund 1	Other financial	27.27	Korea	December
	Newstar Seongnam 1st Co.,Ltd 1	Asset-backed securitization	—	Korea	December
	KPS Sihwa 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	GDIC 2nd co.ltd 1	Asset-backed securitization	—	Korea	December
	Newstar NRB First Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Dongtan 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 5th Co.,Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Banpo 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Banpo 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able alpha Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar one-firm 2023-1 3rd. Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar one-firm 2023-1 4th. Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar one-firm 2023-1 5th. Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Star-Lord AlphaFlux General Investors Private Real Estate Investment Company No.11	Funds	99.78	Korea	December
	French Shine 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Yongdap 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	KB Securities ESG Value Enhancement Fund	Other financial	93.75	Korea	December
	Able Bonri 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar JH Center Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able TY 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Keppel Private Real Estate Investment Trust No.13	Funds	75.85	Korea	December
	Able Eunhwasam 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Yangju Station 1st Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Able Chowall 2nd Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Newstar Sina Co., Ltd. 1	Asset-backed securitization	—	Korea	December
	Mangrove Feeder Fund	Funds	86.06	Cayman Islands	December

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
Mangrove Feeder Fund	Mangrove Master Fund	Funds	100.00	Cayman Islands	December
KB Securities Hong Kong Ltd.	Global Investment Opportunity Limited	Financial & Real-estate	100.00	Malaysia	December
JB New Jersey Private Real Estate Fund 1	Able NJ DSM Investment REIT	Real-estate Investment	99.18	USA	December
Able NJ DSM Investment REIT	ABLE NJ DSM LLC	Real-estate Investment	100.00	USA	December
PT. KB Valbury Sekuritas	PT. Valbury Capital Management	Investment	79.00	Indonesia	December
Newstar one-firm 2023-1 3rd. Co., Ltd.	Newstar one-firm 2023-1 1st. Co., Ltd. 1	Asset-backed securitization	—	Korea	December
Newstar one-firm 2023-1 4th. Co., Ltd.
Newstar one-firm 2023-1 5th., Ltd.
The Parent Company. YSMC 1st Co., Ltd.	K-1 23th Yeoksam Real Estate Investment Trust Company	Real-estate Investment	60.88	Korea	December

1	The Group has a substantive power over the special purpose entities (“SPEs”) or investment trusts and is exposed to variable returns. Accordingly, these SPEs and investment trusts are included in subsidiaries although the Group’s ownership is less than 50%.

Summarized financial information of major subsidiaries as at and for the years ended December 31, 2024 and 2023, is as follows:


(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
KBFG Securities America Inc.		29,454,978		3,925,511		15,942,384		5,349,316			8,193,302
KB Securities Hong Kong Ltd.		322,077,995		27,573,090		34,975,931		5,010,632			42,442,728
KB Securities Vietnam Joint Stock Company		498,369,887		247,711,661		62,760,647		12,931,044			32,194,535
KB FINA Joint Stock Company		2,825,649		191,178		135,030		(7,100,031	)		(6,620,633	)
PT. KB Valbury Sekuritas		132,899,592		43,130,100		24,673,008		4,592,286			11,181,484
JB New Jersey Private Real Estate Fund 1		56,720		403		3,026		(15,900,215	)		(15,900,215	)
LB Ireland Private Real Estate Investment Trust 8		56,280		4,143,478		1,782		(257,351	)		(257,351	)
Mangrove Feeder Fund		18,580,918		18,487		—		(872,877	)		1,055,937
Mangrove Master Fund		32,238,326		10,114,638		2,408,779		607,124			556,423
GH Real Estate I LP		28,473,558		1,365,676		—		(2,012,020	)		(134,743	)
Global Investment Opportunity Limited		218,145		—		1,615		(19,901	)		7,988
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		6,401,893		1,496,961		2,279,870		(2,135,681	)		(2,135,681	)
KB Digital Innovation&growth New Technology Business Investment Fund		7,890,172		152,990		564,375		(93,036	)		(93,036	)
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund		25,661,250		432,356		6,794,487		811,785			811,785
Able Gwonseon 1st Co., Ltd.		13,676,445		13,607,606		1,068,184		83,897			83,897
JB Dry Street Private Fund 1		201,692		9,239		6,895		(17,362	)		(17,362	)
JB Australia108 Private Fund 1		130,906		3,555		5,488		(12,143	)		(12,143	)
JB Forge Private Fund 1		93,835		2,882		5,468		(8,700	)		(8,700	)

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
JB Hall Street Private Fund 1		198,516		3,223		6,743		(15,914	)		(15,914	)
JB Margaret Street Private Fund 1		54,995		672		1,871		(4,526	)		(4,526	)
Newstar Gimpo 1st Co., Ltd		39,827,673		40,090,452		11,720,670		9,688,247			9,688,247
Able Sewoon Co., Ltd.		24,430,465		25,273,091		1,310,863		(990,005	)		(990,005	)
KB MyeongJi 1st Co.,Ltd.		15,625,181		15,268,346		1,232,649		6,165			6,165
Able Dangjin 1st Co.,Ltd.		26,845,170		25,784,933		2,641,956		737,641			737,641
KB Mapo 2nd Co.,Ltd.		9,955,880		10,294,395		699,865		473,045			473,045
Able Wonchang 1st Co., Ltd.		9,349,684		10,560,000		763,969		137,169			137,169
Zitaress 1st Co., Ltd.		20,526,071		20,167,866		1,117,426		211,688			211,688
Able Beomeo-one Co., Ltd.		31,459,239		31,074,021		1,741,681		663,544			663,544
Newstar Gimpo 4th Co.,Ltd.		597,458		7,292,304		499,363		(12,916	)		(12,916	)
Powerplay 1st Co., Ltd.		13,150,423		13,523,019		404,946		(574,832	)		(574,832	)
Able Dosan 1st Co., Ltd		4,352,179		2,573,638		855,394		862,146			862,146
Able Maseok 1st Co., Ltd.		16,815,745		17,275,510		5,068,705		1,414,227			1,414,227
TW Seocho 1st Co., Ltd.		200,494,321		198,447,658		16,667,785		5,844,657			5,844,657
TW Seocho 2nd Co., Ltd.		32,208,486		31,281,734		4,182,068		1,676,119			1,676,119
Newstar Wave 1st Co., Ltd.		83,721,465		83,336,342		7,057,512		3,466,095			3,466,095
Able Next 1st Co., Ltd		20,417,274		21,063,508		1,402,326		(598,237	)		(598,237	)
YSMC 1st Co., Ltd.		47,680,186		47,900,000		13		731,524			731,524
Gyeongsan Logis 1st Co., Ltd		18,585,684		18,599,662		230,795		(183,069	)		(183,069	)
Stoke 2nd Corp		69,530,565		76,319,500		5,535,046		(7,568,667	)		(7,568,667	)
KB Global Contents Private Investment Fund		15,682,080		—		4,268		(265,948	)		(265,948	)
Newstar Seongnam 1st Co.,Ltd		1,944,770		1,859,222		2,947,194		1,007,564			1,007,564
KPS Sihwa 1st Co., Ltd.		218,185,315		260,479,507		17,178,878		(40,335,228	)		(40,335,228	)
Newstar NRB First Co., Ltd.		17,984,328		19,331,133		2,594,001		347,089			347,089
GVA Europe Pre-IPO Private Investment Trust No.1		29,638,647		20,032		3,688		2,182,228			2,182,228
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,383,526		24,950		12,061		4,401,787			4,401,787
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11		129,639,678		98,556,042		5,535,662		(7,152,201	)		(7,152,201	)
Able alpha Co., Ltd.		24,312,869		25,713,315		1,757,302		(1,056,473	)		(1,056,473	)
K-1 23th Yeoksam Real Estate Investment Trust Company		301,209,424		168,924,135		10,188,322		434,502			434,502
KB Securities ESG Value Enhancement Fund		1,996,726		1,430		538		(92,297	)		(92,297	)
Able Eunhwasam 2nd Co., Ltd.		42,955,135		44,324,704		8,439,125		1,678,170			1,678,170
Newstar Sina 2nd Co., Ltd.		74,387,881		73,529,437		15,460,085		1,852,670			1,852,670
Newstar Gimpo 7th Co.,Ltd.		52,004,996		96,497,442		6,340,484		(44,492,457	)		(44,492,457	)
NewStar Yui the 1st		100,316,599		101,385,834		7,263,486		(1,069,246	)		(1,069,246	)
able hi position 1st		86,563,317		87,330,342		4,450,126		(767,026	)		(767,026	)
Graha 2nd Co., Ltd.		20,473,692		20,461,687		759,786		12,004			12,004
Able Yongin Wonsam 2nd Co.,Ltd.		50,297,134		50,536,186		1,997,382		(239,052	)		(239,052	)
ABLE GUNPO 1ST CO.,LTD.		18,381,451		18,874,773		820,265		(493,322	)		(493,322	)
TRUE HOUSE FIRST CO., LTD.		29,957,465		29,756,900		1,108,310		200,555			200,555
Breeze Air Primary Co.,Ltd.		100,684,566		100,832,748		2,200,356		(148,192	)		(148,192	)
Able Gongpyeong 3rd Co.,Ltd		58,382,203		58,312,176		1,723,871		70,018			70,018
NEW STAR L CARD 1ST CO.,LTD.		147,837,864		148,230,726		2,076,295		(392,863	)		(392,863	)
Olivia 1st Co.,Ltd.		73,445,399		73,309,232		1,238,200		136,157			136,157
THE APOGEE THE FIRST CO.,LTD.		39,308,171		39,276,887		318,491		31,274			31,274
EULJI NAIN 1ST CO.,LTD.		38,589,392		39,236,893		585,154		(647,503	)		(647,503	)
E&F Backsapphire Private Equity Fund		39,900,138		3,789		138		(603,651	)		(603,651	)
Black Sapphire Holdings Co.,Ltd.		175,847,940		140,837,315		56,835		(3,989,375	)		(3,989,375	)

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)		1,476,198		26		36		(15,122	)		60,913
Able Civic 4th Co., Ltd.		54,734,596		54,990,678		264,115		(256,092	)		(256,092	)
NEWSTAR EXPER 1ST CO.,LTD.		583,210,024		583,987,264		953,080		(777,240	)		(777,240	)
Newstar JH Center Co., Ltd. 1		—		—		2,549,414		981,219			981,219
Newstar Sina Co., Ltd. 1		—		—		1,979,995		25,050			25,050
Lalaroro 1st Co., Ltd. 1		—		—		554,229		34,054			34,054
French Shine 1st Co., Ltd. 1		—		—		1,574,900		142,774			142,774
KB Infra 2nd Co., Ltd. 1		—		—		3,766,827		2,916,891			2,916,891
ABR Joongang2 1st Co.,Ltd 1		—		—		1,148,655		43,405			43,405
Able MK 1st co.ltd 1		—		—		2,308,411		14			14
Able Civic Third Co., Ltd. 1		—		—		378,748		211			211
Newstar Believe Co., Ltd. 1		—		—		793,424		582,759			582,759
Able NJ DSM Investment REIT 1		—		—		73,467		(20,373,868	)		(24,011,561	)
Able PT 1st Co., Ltd 1		—		—		335,359		39,151			39,151
KB Gold 1st Co.,Ltd. 1		—		—		742,077		(124,010	)		(124,010	)
Able Gongpyeong 1st Co.,Ltd 1		—		—		465,322		59,589			59,589
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38 1		—		—		422,989		343,694			343,694
Able Gasan 1st Co., Ltd. 1		—		—		367,506		59,815			59,815
Able Bonri 1st Co., Ltd. 1		—		—		7,308,998		(740,605	)		(740,605	)
Newstar Enerbil 1st Co., Ltd. 1		—		—		393,852		(52,307	)		(52,307	)
Newstar Plus 1st Co., Ltd. 1		—		—		269,260		(2,144	)		(2,144	)
Bighouse 7th Co., Ltd. 1		—		—		3,113,874		1,519,228			1,519,228
HD Value 1st Co., Ltd. 1		—		—		1,322,380		(479,809	)		(479,809	)
ABLE NJ DSM LLC 1		—		—		1,647,158		180,171			(1,612,552	)
Keppel Private Real Estate Investment Trust No.13 1		—		—		924,910		(147,569	)		(147,569	)
Lamdamine 1st Co.,Ltd 1		—		—		—		—			—
KB SmartSchool 1st Co., Ltd. 1		—		—		—		—			—
Able Chowall 2nd Co., Ltd. 1		—		—		—		—			—
Able TY 2nd Co., Ltd. 1		—		—		—		—			—
Able Dongtan 1st Co., Ltd. 1		—		—		—		—			—
PT. Valbury Capital Management 1		—		—		—		—			—
GDIC 2nd co.ltd 1		—		—		—		—			—
Able Yongdap 2nd Co., Ltd. 1		—		—		—		—			—
KB Samyoung Co., Ltd. 1		—		—		—		—			—
Able Banpo 1st Co., Ltd. 1		—		—		—		—			—
Able Banpo 2nd Co., Ltd. 1		—		—		—		—			—
Newstar Gimpo 5th Co.,Ltd. 1		—		—		—		—			—
KB Osansegyo 2nd Co.,Ltd. 1		—		—		—		—			—
Newstar one-firm 2023-1 1st. Co., Ltd. 1		—		—		—		—			—
Newstar one-firm 2023-1 3rd. Co., Ltd. 1		—		—		—		—			—
Newstar one-firm 2023-1 4th. Co., Ltd. 1		—		—		—		—			—
Newstar one-firm 2023-1 5th. Co., Ltd. 1		—		—		—		—			—
Newstar IP Co., Ltd. 1		—		—		—		—			—
Newstar Yangju Station 1st Co., Ltd. 1		—		—		—		—			—
KB Tongyoung 1st Co., Ltd 1		—		—		—		—			—

1	These companies are excluded from subsidiaries as at December 31, 2024.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	December 31, 2023				2023
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
KBFG Securities America Inc.		20,947,929		3,611,764		3,370,524		(1,033,048	)		(705,752	)
KB Securities Hong Kong Ltd.		277,977,210		25,915,033		19,808,163		8,546,530			12,164,272
KB Securities Vietnam Joint Stock Company		645,271,727		426,808,037		72,721,548		7,384,814			5,183,349
KB FINA Joint Stock Company		10,942,716		183,325		57,908		(1,740,192	)		(1,806,383	)
PT. KB Valbury Sekuritas		121,609,292		41,258,453		20,193,903		3,459,924			3,459,924
JB New Jersey Private Real Estate Fund 1		16,308,668		1,136		5,231		350,581			350,581
LB Ireland Private Real Estate Investment Trust 8		73,131		3,902,978		5,250,012		(71,202,621	)		(70,780,001	)
Mangrove Feeder Fund		35,058,926		29,213		80,817		(3,706,303	)		(8,559,407	)
Mangrove Master Fund		42,319,887		7,264,757		3,794,645		(5,809,709	)		(10,589,615	)
GH Real Estate I LP		28,372,761		1,130,136		—		(167,745	)		1,279,191
Global Investment Opportunity Limited		210,157		—		1,540		(13,260	)		(9,271	)
Beckett Acquisition Limited 1		—		—		7,529,302		(63,105,673	)		(63,528,609	)
Able NJ DSM Investment REIT		19,605,204		156,615		69,388		290,726			617,545
ABLE NJ DSM LLC		37,360,239		35,565,177		3,840,243		420,041			440,507
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		14,797,323		689,607		1,964,546		(1,420,674	)		(1,420,674	)
DAOL KTB Aircraft Private Investment Trust No.21-1 1		—		—		766,243		759,295			759,295
KB Digital Innovation&growth New Technology Business Investment Fund		7,998,206		167,987		181,214		(1,142,829	)		(1,142,829	)
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund		33,610,983		128,874		5,870,046		5,201,805			5,201,805
Able Gwonseon 1st Co., Ltd.		11,145,645		11,160,702		745,750		55,849			55,849
Paradise Yeongjong 2nd Co., Ltd. 1		—		—		301,315		113,242			113,242
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38		5,281,192		348,321		24,258,341		(197,406,412	)		(196,283,032	)
Lumen International Developments 1		—		—		—		(13,164,758	)		(14,536,353	)
VREF Shaftesbury ScSp 1		—		—		23,898,293		(37,830,310	)		(49,320,462	)
Newstar IP Co., Ltd.		50,009,515		50,678,605		3,197,763		238,119			238,119
JB Dry Street Private Fund 1		219,053		9,237		1,042,051		860,601			860,601
JB Australia108 Private Fund 1		143,048		3,554		730,007		603,628			603,628
JB Forge Private Fund 1		102,535		2,882		521,465		430,983			430,983
JB Hall Street Private Fund 1		214,429		3,221		985,511		818,350			818,350
JB Margaret Street Private Fund 1		59,522		673		278,998		231,555			231,555
Hanwha US Equity Strategy Private Real Estate Fund 3 1		—		—		47,498		(1,759,446	)		(1,759,446	)
PT. Valbury Capital Management		987,145		1,128,893		68,014		(1,042,141	)		(1,042,141	)
Songdo PFive 2nd Co., Ltd 1		—		—		5,124,127		(55,268	)		(55,268	)
Newstar Gimpo 1st Co., Ltd		16,988,422		26,939,448		1,262,209		(9,864,588	)		(9,864,588	)
Able Gongpyeong 1st Co.,Ltd		17,527,763		17,693,325		647,319		(196,806	)		(196,806	)
Able Chowall 1st Co., Ltd.1		—		—		583,688		133,053			133,053
FN Gasan 1st Co., Ltd. 1		—		—		130,584		30,368			30,368
Newstar Believe Co., Ltd.		5,744,309		6,646,068		254,920		(604,872	)		(604,872	)
ABR Joongang2 1st Co.,Ltd		19,401,055		18,908,578		1,660,744		201,904			201,904
KB Tongyoung 1st Co., Ltd		21,804,297		21,346,230		1,719,366		739,047			739,047
Able Sky 1st Co., Ltd. 1		—		—		839,918		705,154			705,154
Able Poongdong 1st Co., Ltd. 1		—		—		333,975		(12,358	)		(12,358	)
Able Sewoon Co., Ltd.		35,024,562		34,877,184		1,572,721		(84,626	)		(84,626	)
Able Gasan 1st Co., Ltd.		24,812,807		24,697,095		2,683,714		324,308			324,308
Able PT 1st Co., Ltd		5,595,738		5,371,802		520,274		538,965			538,965
Newstar Plus 1st Co., Ltd.		16,613,732		16,000,000		1,094,286		343,675			343,675
KB MyeongJi 1st Co.,Ltd.		15,809,084		15,458,414		1,217,002		252,430			252,430
Able Dangjin 1st Co.,Ltd.		22,597,253		22,274,657		1,923,039		(195,205	)		(195,205	)

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	December 31, 2023				2023
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
KB Osansegyo 2nd Co.,Ltd.		4,123,012		4,096,052		391,578		28,397			28,397
KB Mapo 2nd Co.,Ltd.		9,693,542		10,505,102		609,787		86,719			86,719
Able Wonchang 1st Co., Ltd.		8,686,872		10,034,356		659,995		(1,301,333	)		(1,301,333	)
Zitaress 1st Co., Ltd.		25,686,630		25,540,113		1,338,260		324,608			324,608
Able Beomeo-one Co., Ltd.		31,430,332		31,708,659		1,741,290		(64,223	)		(64,223	)
KB Infra 2nd Co., Ltd.		26,218,769		26,245,000		856,031		(340,163	)		(340,163	)
Newstar Sina Co., Ltd.		27,752,055		28,045,317		2,462,046		315,529			315,529
KB Gold 1st Co.,Ltd.		21,525,289		20,739,066		2,150,393		771,182			771,182
Inspire Gold 2nd Co., Ltd. 1		—		—		226,422		76,321			76,321
Able MK 1st co.ltd		41,492,789		41,748,477		1,373,873		(154,234	)		(154,234	)
Newstar Gimpo 4th Co.,Ltd.		592,598		7,274,528		532,092		(6,673,059	)		(6,673,059	)
HD Value 1st Co., Ltd.		102,726,240		102,739,113		5,044,823		(3,473	)		(3,473	)
Powerplay 1st Co., Ltd.		6,167,369		5,965,134		130,991		(85,805	)		(85,805	)
Able Dosan 1st Co., Ltd		16,318,461		15,402,065		1,865,056		701,963			701,963
Able Maseok 1st Co., Ltd.		45,776,808		47,650,800		2,973,609		(1,573,026	)		(1,573,026	)
TW Seocho 1st Co., Ltd.		154,285,407		158,083,402		9,438,647		(3,567,975	)		(3,567,975	)
TW Seocho 2nd Co., Ltd.		30,627,915		31,377,281		2,656,837		(399,456	)		(399,456	)
Newstar Wave 1st Co., Ltd.		88,025,880		91,106,853		3,982,049		(2,295,729	)		(2,295,729	)
Lamdamine 1st Co.,Ltd		62,494,267		67,302,151		6,252,531		(4,660,912	)		(4,660,912	)
Able Next 1st Co., Ltd		21,066,194		21,114,190		2,367,850		943,762			943,762
Newstar Enerbil 1st Co., Ltd.		100,748,534		101,233,860		4,668,659		(302,720	)		(302,720	)
YSMC 1st Co., Ltd.		47,548,662		48,500,000		2,589,744		(59,089	)		(59,089	)
HJ Galaxy 3rd Co., Ltd. 1		—		—		1,478,975		629,392			629,392
KB SmartSchool 1st Co., Ltd.		16,209,718		15,624,288		1,609,736		1,049,996			1,049,996
Bighouse 7th Co., Ltd.		138,732,519		132,810,797		17,865,600		6,906,992			6,906,992
Newstar Energy 1st Co., Ltd. 1		—		—		3,034,984		914,859			914,859
Gyeongsan Logis 1st Co., Ltd		25,528,040		25,358,949		914,708		(388,431	)		(388,431	)
Stoke 2nd Corp		74,640,194		73,860,462		5,394,011		135,934			135,934
KB Samyoung Co., Ltd.		6,141,254		5,992,627		431,794		121,990			121,990
KB Global Contents Private Investment Fund		16,016,816		68,788		7,254		(258,640	)		(258,640	)
Newstar Seongnam 1st Co.,Ltd		18,595,462		19,517,477		1,439,876		(1,214,736	)		(1,214,736	)
KPS Sihwa 1st Co., Ltd.		242,632,519		244,591,483		10,802,574		(5,528,495	)		(5,528,495	)
KB NY 1st Co., Ltd. 1		—		—		1,073,718		(3,272,256	)		(3,272,256	)
GDIC 2nd co.ltd		23,253,402		31,347,930		2,047,990		(7,586,500	)		(7,586,500	)
Newstar NRB First Co., Ltd.		28,179,164		29,873,057		2,340,277		114,398			114,398
Able Dongtan 1st Co., Ltd.		21,684,637		28,742,409		2,435,779		(6,186,155	)		(6,186,155	)
Newstar Gimpo 5th Co.,Ltd.		668,891		36,774,648		2,558,090		(34,624,739	)		(34,624,739	)
GVA Europe Pre-IPO Private Investment Trust No.1		29,906,756		18,094		5,128		2,069,696			2,069,696
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,629,904		34,790		6,935		4,127,598			4,127,598
KB KBSTAR US Short-Term IG Corporate Bond ETF 1		—		—		5,584,427		5,031,065			5,031,065
Cassiopeia 1st Co., Ltd. 1		—		—		443,768		(44,939	)		(44,939	)
Able Banpo 1st Co., Ltd.		14,115,040		17,259,046		1,944,117		(2,944,492	)		(2,944,492	)
Able Banpo 2nd Co., Ltd.		8,635,523		10,905,953		942,311		(2,092,994	)		(2,092,994	)
Able Gyeonggi Gwangju 1st Co., Ltd. 1		—		—		664,800		(22,902	)		(22,902	)
Piggarden 1st Co., Ltd. 1		—		—		1,232,877		254,666			254,666
Newstar copper 2nd Co., Ltd. 1		—		—		2,855,624		202,297			202,297
Newstar copper 3rd Co., Ltd. 1		—		—		2,755,505		202,175			202,175
Star-Lord AlphaFlux General Investors Private Real Estate Investment Company No.11		130,527,942		92,292,106		1,165		(6,764,164	)		(6,764,164	)
Able alpha Co., Ltd.		19,155,865		19,499,839		1,191,614		(343,974	)		(343,974	)
Newstar one-firm 2023-1 1st. Co., Ltd.		366,173,524		367,220,017		23,032,564		(1,046,502	)		(1,046,502	)
Newstar one-firm 2023-1 3rd. Co., Ltd.		21,111,940		21,083,044		1,216,721		28,886			28,886

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	December 31, 2023				2023
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
Newstar one-firm 2023-1 4th. Co., Ltd.		53,237,451		53,130,420		3,441,847		107,021			107,021
Newstar one-firm 2023-1 5th. Co., Ltd.		77,249,336		77,511,098		7,124,652		(261,772	)		(261,772	)
K-1 23th Yeoksam Real Estate Investment Trust Company		307,706,597		169,366,780		9,952,766		(3,722,200	)		(3,722,200	)
French Shine 1st Co., Ltd.		31,324,688		31,349,938		1,867,744		(25,250	)		(25,250	)
Themis 1st Co., Ltd. 1		—		—		1,276,457		(316,456	)		(316,456	)
Able Yongdap 2nd Co., Ltd.		29,313,986		29,405,062		1,549,057		(91,086	)		(91,086	)
Shinhan Motor Term Loan B 1st Co., Ltd. 1		—		—		1,491,378		194,984			194,984
Global Funding Segregated Portfolio Co. 1		—		—		3,358,625		(5,033,326	)		(5,033,326	)
KB Securities ESG Value Enhancement Fund		1,045,029		24,436		320		(45,407	)		(45,407	)
Keppel Private Real Estate Investment Trust No.13		187,217,054		105,063,410		2,362,223		(2,746,356	)		(2,746,356	)
Able Bonri 1st Co., Ltd.		144,272,497		142,927,036		6,631,417		1,345,451			1,345,451
Newstar JH Center Co., Ltd.		48,872,193		48,910,204		2,386,169		(38,012	)		(38,012	)
Able TY 2nd Co., Ltd.		12,799,793		16,069,805		852,487		(3,270,022	)		(3,270,022	)
Able TY 1st Co., Ltd. 1		—		—		356,164		(3,159,024	)		(3,159,024	)
Able Eunhwasam 2nd Co., Ltd.		103,326,781		106,374,520		2,740,990		(3,047,740	)		(3,047,740	)
Newstar Yangju Station 1st Co., Ltd.		8,351,658		8,344,959		210,130		6,698			6,698
Able Chowall 2nd Co., Ltd.		13,430,010		13,297,222		468,175		132,778			132,778
Newstar Sina Co., Ltd.		64,687,242		65,681,468		1,478,161		(994,236	)		(994,236	)
Able Dongil 1st Co., Ltd 1		—		—		—		—			—
Newstar Byeongjeom 1st Co., Ltd. 1		—		—		—		—			—
Able Wonsi 1st Co., Ltd. 1		—		—		—		—			—
Newstar Shiny 1st Co., Ltd. 1		—		—		—		—			—
Newstar Gimpopoongmoo Co., Ltd. 1		—		—		—		—			—

1	These companies are excluded from subsidiaries as at December 31, 2023.

The details of changes in scope for consolidation for the year ended December 31, 2024, are as follows:

(a)	Subsidiaries newly included in the consolidation


Name of entity		Reason
Newstar Gimpo 7th Co.,Ltd.		Holding power over the relevant activities in the event of default and being a provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.
NewStar Yui the 1st able hi position 1st
Able Civic Third Co., Ltd.
Lalaroro 1st Co., Ltd.
Graha 2nd Co., Ltd.
Able Yongin Wonsam 2nd Co.,Ltd.
ABLE GUNPO 1ST CO.,LTD.
TRUE HOUSE FIRST CO., LTD.
Breeze Air Primary Co.,Ltd.
Able Gongpyeong 3rd Co.,Ltd
NEW STAR L CARD 1ST CO.,LTD.
Olivia 1st Co.,Ltd.
THE APOGEE THE FIRST CO.,LTD.
EULJI NAIN 1ST CO.,LTD.
E&F Backsapphire Private Equity Fund Black Sapphire Holdings Co.,Ltd. Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)		Holding power over the related activities of subsidiaries and being exposed to significant variable profits
Able Civic 4th Co., Ltd.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


NEWSTAR EXPER 1ST CO.,LTD.		Holding power over the relevant activities in the event of default and being a provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.

(b)	Subsidiaries excluded from the consolidation


Name of entity		Reason
Newstar IP Co., Ltd.		End of payment guarantee contract
KB Tongyoung 1st Co., Ltd		Repayment of loan
KB Osansegyo 2nd Co.,Ltd.		End of payment guarantee contract
Lamdamine 1st Co.,Ltd		End of payment guarantee contract
KB SmartSchool 1st Co., Ltd.		End of payment guarantee contract
KB Samyoung Co., Ltd.		End of payment guarantee contract
GDIC 2nd co.ltd		End of payment guarantee contract
Able Dongtan 1st Co., Ltd.		End of payment guarantee contract
Newstar Gimpo 5th Co.,Ltd.		Disposal
Able Banpo 1st Co., Ltd.		End of payment guarantee contract
Able Banpo 2nd Co., Ltd.		End of payment guarantee contract
Newstar one-firm 2023-1 3rd. Co., Ltd.		Repayment of loan
Newstar one-firm 2023-1 4th. Co., Ltd.		Repayment of loan
Newstar one-firm 2023-1 5th. Co., Ltd.		End of payment guarantee contract
Able Yongdap 2nd Co., Ltd.		End of payment guarantee contract
Able TY 2nd Co., Ltd.		End of payment guarantee contract
Keppel Private Real Estate Investment Trust No.13		Disposal
Newstar Yangju Station 1st Co., Ltd.		End of payment guarantee contract
Able Chowall 2nd Co., Ltd.		Disposal
PT. Valbury Capital Management		Disposal
Newstar one-firm 2023-1 1st. Co., Ltd.		Repayment of loan
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38		Disposal
Able Gasan 1st Co., Ltd.		End of payment guarantee contract
Able Bonri 1st Co., Ltd.		Disposal
Newstar Enerbil 1st Co., Ltd.		Disposal
Newstar Plus 1st Co., Ltd.		End of payment guarantee contract
Bighouse 7th Co., Ltd.		End of payment guarantee contract
HD Value 1st Co., Ltd.		End of payment guarantee contract
ABLE NJ DSM LLC		Disposal
Able PT 1st Co., Ltd		End of power over relevant activities of subsidiaries
KB Gold 1st Co.,Ltd.		End of payment guarantee contract
Able Gongpyeong 1st Co.,Ltd		End of payment guarantee contract
Newstar JH Center Co., Ltd.		End of payment guarantee contract
Newstar Sina Co., Ltd.		End of payment guarantee contract
Lalaroro 1st Co., Ltd.		End of payment guarantee contract
French Shine 1st Co., Ltd.		End of payment guarantee contract
KB Infra 2nd Co., Ltd.		End of payment guarantee contract
ABR Joongang2 1st Co.,Ltd		End of payment guarantee contract
Able MK 1st co.ltd		End of payment guarantee contract
Able Civic Third Co., Ltd.		End of payment guarantee contract
Newstar Believe Co., Ltd.		End of payment guarantee contract
Able NJ DSM Investment REIT		Disposal

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2. Material Accounting Policies

The material accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation

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

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Group’s financial position, financial performance or cash flows, is not presented in the accompanying consolidated financial statements.

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

The consolidated financial statements have been prepared on the historical cost basis except for the following items:

•

Certain financial assets and liabilities (including derivatives instruments), certain classes of property, plant and equipment and investment properties measured at fair value

•

Assets held for sale measured at fair value less costs to sell, and

•

Defined benefit obligation and plan assets measured at fair value

The preparation of the consolidated financial statements requires the use of certain significant accounting estimates. Management also needs to exercise judgement in applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.2 Changes in Accounting Policy and Disclosures

2.2.1 New and amended standards adopted by the Group

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

•

Amendments to Korean IFRS No.1001 Presentation of Financial Statements—Classification of Liabilities as Current or Non-current

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise the right to defer settlement of the liability or the management’s expectations thereof. 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 the liability by the transfer of the entity’s own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. In addition, agreements that the Group must comply with after the end of the reporting period do not affect the classification of the relevant liabilities at the end of the reporting period; further, if liabilities under the agreements with which the Group must comply within 12 months after the reporting period are classified as non-current liabilities as of the end of the reporting period, the entity should disclose the risk that the liabilities may be repaid within 12 months after the reporting period. These amendments do not have a significant impact on the consolidated financial statements.

•

Amendments to Korean IFRS No.1007 Cash flow statements and Korean IFRS No.1107 Financial Instruments—Disclosure — Disclosure of information of supplier finance Arrangements

The amendments request that if the supplier finance arrangements are applied, information on the supplier finance arrangements must be disclosed so that users of financial statements can evaluate the impact of the supplier finance arrangements on the company’s liabilities, cash flow, and liquidity risk exposure. These amendments do not have a significant impact on the consolidated financial statements.

•

Amendments to Korean IFRS No.1116 Leases – Lease liabilities arising from sale and leaseback

The amendments clarify the method of subsequently measuring the lease liability arising from a sale and leaseback; the lease fee or modified lease fee is calculated in a manner that does not recognize the profit or loss related to the usage rights held by the seller-lessee. These amendments do not have a significant impact on the consolidated financial statements.

•

Amendments to Korean IFRS No. 1001 Presentation of Financial Statements –Disclosure of virtual assets

The amendments clarify additional disclosure requirements in the case of holding virtual assets or holding virtual assets on behalf of customers or issuing virtual assets. These amendments do not have a significant impact on the consolidated financial statements.

2.2.2 The following amended standards have been published that are not mandatory for December 31, 2024 reporting periods and have not been early adopted by the Group.

•

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

The amendments require the Group to estimate the exchangeability of the currency, and to disclose information related to the currency not exchangeable into the other currency with estimation of foreign exchange rates. The amendments should be applied for annual reporting periods beginning on or after January 1, 2025, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

•

Amendments to Korean IFRS No.1109 Financial Instruments and Korean IFRS No.1107 Financial Instruments - Disclosure

The amendments of Korean IFRS 1109, Financial Instruments, and Korean IFRS 1107, Financial Instruments: Disclosure have been made for the purpose of addressing questions raised in practice and reflecting new requirements. The amendments should be applied for annual reporting periods beginning on or after January 1, 2025, and earlier application is permitted. The main amendments are as follows: The Group is in the process of reviewing the impact of these amendments on the consolidated financial statements.

•

Allowing financial liabilities to be considered settled (derecognized) through electronic payment systems before the settlement date, if certain criteria are met.

•

Clarifying and adding additional guidance for assessing whether a financial asset meets the criteria for payments of principal and interest only.

•

Disclosing the impact on the company and the extent to which the company is exposed, of contractual terms that change the timing or amount of cash flows under the contract, for each type of financial instrument.

•

Additional disclosures for equity instruments at designated FVOCI.

•

Annual Improvement of Korean IFRS Volume 11

Annual Improvements to Korean IFRS Volume 11 should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

•

Korean IFRS No. 1101, First-Time Adoption of Korean IFRS : Application of Hedge Accounting upon First-Time Adoption of K-IFRS

•

Korean IFRS No. 1107, Financial Instruments: Disclosure: Derecognition of Profit and Loss, Guidance on Practice

•

Korean IFRS No. 1109, Financial Instruments: Derecognition of Lease Liabilities and Definition of Transaction Price

•

Korean IFRS No. 1110, Consolidated Financial Statements: Determination of De facto Agent

•

Korean IFRS No. 1007, Cash Flow Statement: Cost Method

2.3 Consolidation

The Group has prepared the consolidated financial statements in accordance with Korean IFRS No.1110 Consolidated Financial Statements.

(a)	Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. All other non-controlling interests are measured at fair values, unless otherwise required by other standards. Acquisition-related costs are expensed as incurred.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Meanwhile, the Group applies the book-value method to account for business combinations of entities under common control. Identifiable assets acquired and liabilities assumed in a business combination are measured at their book values on the consolidated financial statements of the ultimate parent entity. In addition, the difference between the sum of consolidated book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

The excess of consideration transferred, amount of any non-controlling interest in the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit or loss as a bargain purchase.

Intergroup transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

(b)	Associates

Associates are entities over which the Group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method of accounting, after initially being recognized at cost. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. If the Group’s share of losses of an associate equals or exceeds its interest in the associate (including long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

If there is objective evidence of impairment on the investment in the associate, the Group recognizes the difference between the recoverable amount of the associate and its book amount as impairment loss.

If an associate uses accounting policies other than those of the Group for the identical transactions and events in similar circumstances, if necessary, adjustments shall be made to make the associate’s accounting policies conform to those of the Group when the associate’s financial statements are used by the Group in applying the equity method.

(c)	Joint Arrangements

A joint arrangement, wherein two or more parties have joint control, is classified as either a joint operation or a joint venture. A joint operator has rights to the assets, and obligations for the liabilities, relating to the joint operation and recognizes the assets, liabilities, revenues and expenses relating to its interest in a joint operation. A joint-venturer has rights to the net assets relating to the joint venture and accounts for that investment using the equity method.

2.4 Foreign Currency Translation

(a) Functional and presentation currency

Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the Group operates (“the functional currency”). The financial statements are presented in Korean won, which is the Group’s functional and presentation currency.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. They are deferred in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of hedge of net investments in foreign operations, or are attributable to monetary part of the net investment in a foreign operation.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities held at fair value through other comprehensive income are recognized in other comprehensive income.

2.5 Recognition and Measurement of Financial Instruments

2.5.1 Classification

The Group classifies financial assets as follows.

•

Those to be measured at fair value (through profit or loss or other comprehensive income)

•

Those to be measured at amortised cost

The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows.

For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Group reclassifies debt investments when, and only when its business model for managing those assets changes.

For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of non-designated equity investment are recognized in profit or loss.

2.5.2 Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.5.2.1 Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments into one of the following three measurement categories:

(a)	Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in ‘interest income’ using the effective interest rate method.

(b)	Fair value through other comprehensive income

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in ‘interest income’ using the effective interest rate method. Foreign exchange gains and losses are presented in ‘gain or loss on foreign currency transaction’ and impairment losses are presented in ‘loss on valuation and disposal of financial instrument’.

(c)	Fair value through profit or loss

Assets that do not meet the criteria for amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within ‘gain or loss on valuation and disposal of financial instrument’ in the year in which it arises.

2.5.2.2 Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continues to be recognized in profit or loss when the right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in ‘gain or loss on valuation and disposal of financial instrument’ in the statement of profit or loss. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.5.3 Impairment

The Group assesses on a forward-looking basis expected credit losses associated with its debt instruments carried at amortised cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value of all cash shortfalls) over the expected life of the financial instrument. The Group measures expected credit losses by reflecting reasonable and supportable information that is reasonably available at the reporting date without undue cost or effort, including information about past events, current conditions and forecasts of future economic conditions.

The Group uses the following three measurement techniques in accordance with Korean IFRS:

•

General approach: for financial assets and off-balance-sheet unused credit line that below two approaches are not applied

•

Simplified approach: for receivables, contract assets and lease receivables

•

Credit-impaired approach: for purchased or originated credit-impaired financial assets

Different measurement approaches are applied depending on significant increase in credit risk. 12 month expected credit losses is recognized when credit risk has not significantly increased since initial recognition. A loss allowance at an amount equal to lifetime expected credit losses is recognized when credit risk has significantly increased since initial recognition. Lifetime is presumed to be a period to the contractual maturity date of a financial asset (the expected life of the financial asset).

The Group determines whether the credit risk has increased significantly since initial recognition using the following information. One or more of the following circumstances is deemed significant increase in credit risk.

•

More than 30 days past due;

•

Decline in credit rating at period end by more than certain notches as compared to that at initial recognition;

•

Decline in ratings below certain level in the early warning system;

Under simplified approach, the Group shall always measure the loss allowance at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Group shall only recognize the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.

The Group generally deems credit-impaired in case of one or more of the following circumstances:

•

90 days or more past due;

•

Legal proceedings related to collection;

•

Refinancing;

•

Corporate borrowers that are rated C or D;

•

Debt restructuring.

2.5.3.1 Forward-looking information

The Group uses forward-looking information, when it determines whether the credit risk has increased significantly since initial recognition and measures expected credit losses.

The Group assumes the risk component has a certain correlation with the business cycle, and calculates the expected credit loss by reflecting the forward-looking information with macroeconomic variables on the measurement inputs.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Forward-looking information used in calculation of expected credit loss is derived after comprehensive consideration of a variety of factors including scenario in management planning, risk situation scenario for stress test, third party forecast, and others.

2.5.3.2 Measuring expected credit losses on financial assets at amortised cost

The amount of the loss on financial assets at amortised cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The Group estimates expected future cash flows for financial assets that are individually significant (individual assessment of impairment).

For financial assets that are not individually significant, the Group collectively estimates expected credit loss by grouping loans with homogeneous credit risk profile (collective assessment of impairment).

•

Individual assessment of impairment

Individual assessment of impairment losses are calculated using management’s best estimate on present value of expected future cash flows. The Group uses all the available information including operating cash flow of the borrower and net realizable value of any collateral held.

•

Collective assessment of impairment

Collective assessment of loss allowance involves historical loss experience along with incorporation of forward-looking information. Such process incorporates factors such as type of collateral, product and borrowers, credit rating, size of portfolio and recovery period and applies ‘probability of default’ (PD) on a company of assets and ‘loss given default’ (LGD) by type of recovery method. Also, the expected credit loss model involves certain assumption to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce gap between loss estimate and actual loss experience.

2.5.3.3 Measuring expected credit losses on financial assets at fair value through other comprehensive income

Measuring method of expected credit losses on financial assets at fair value through other comprehensive income is equal to the method of financial assets at amortised cost, except for loss allowances that are recognized as other comprehensive income. Amounts recognized in other comprehensive income for sale or repayment of financial assets at fair value through other comprehensive income are reclassified to profit or loss.

2.5.4 Recognition and Derecognition

Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. The Group classified the financial liability as “borrowings” in the statement of financial position.

The Group writes off the carrying amount and allowance of financial assets in its entirety or to a portion thereof when the principal and interest are determined to be no longer recoverable. In general, the Group considers write-off when it is determined that the debtor does not have sufficient resources or income to cover the principal and interest, and this write-off decision is made in accordance with internal regulations.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.5.5 Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

2.6 Financial Liabilities

2.6.1 Classification and Measurement

The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortised cost and present as ‘deposits liabilities’, ‘borrowings’, and ‘other financial liabilities’ in the statement of financial position.

2.6.2 Derecognition

Financial liabilities are removed from the statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or canceled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

The Group’s financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading. Financial liabilities designated the financial liabilities at fair value through profit or loss is the structured financial liabilities containing embedded derivatives issued by the Group.

The changes in fair value of financial liabilities at fair value through profit or loss due to the change of credit risk is recognized as other comprehensive income(instead of profit and loss) and this other comprehensive income can not be transferred to profit and loss in subsequent events.

2.7 Derivative Financial Instruments

The Group enters into numerous derivative financial instrument contracts such as stock options, stock swaps, interest rate swaps and others for trading purposes or sale and issue of derivative combined securities. These derivative financial instruments are presented as derivative financial instruments within the financial statements irrespective of transaction purpose and subsequent measurement requirement.

Derivatives are initially recognized at fair value on the date a derivative contract enters into and are subsequently re-measured at their fair value. The changes of the fair value of derivatives financial instruments held for trading are recognized in profit or loss as ‘gain or loss on valuation and disposal of financial instrument’.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Fair value of derivative instrument traded in active market is a quoted price. In case of fair value of relatively simple derivative instruments such as options, interest rate or currency swaps and others is calculated using one or more valuation techniques like cash flow discount model, option pricing model which is based on observable data and appropriate considering the nature of objects.

Also, fair value of more complex derivative instrument is calculated using valuation techniques based on unobservable data in the market. The accuracy of the valuation techniques is approved by periodical review.

2.7.1 Day 1 Profit and Loss

Accordance with Korean IFRS, if there is no available price from active market and if the Group uses a valuation technique that uses unobservable valuation parameters from market for the fair value at initial recognition of financial instruments, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price and the difference is amortised by using the straight line method over the life of the financial instruments.

2.7.2 Credit risk adjustments

In case of exchange-traded derivative instrument, credit risk is not reflected on the fair value because exchange-traded derivative instrument is traded in public exchange, and it is not available to identify certain counterparties. Fair value of OTC derivative instrument only reflects credit risk.

2.7.3 Hedge accounting

The accounting treatment of changes of fair value for the derivatives varies as the character of hedging items and the purpose of hedging. The Group holds derivative contracts for the purpose of hedging the risk and the Group designates certain derivatives as hedging instruments to hedge the risk as follows.

(a)	Fair value hedge : a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment

(b)	Cash flow hedge : a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with all, or a component of, the recognised asset or liability or a highly probable forecast transaction

(c)	Hedge of net investments in foreign operations

On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship.

The fair value of derivatives for hedge is disclosed in note 37.

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss

If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item is fully amortised to profit or loss by the maturity of the financial instrument using the effective interest method.

The accounting treatments of hedge of net investments in foreign operations are similar to those of cash flow hedge.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

If hedging instruments qualify for a hedge of net investments in foreign operations, the effective portion of changes in fair value of hedging instrument is recognized in other comprehensive income or loss and the ineffective portion is recognized in profit or loss. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income will be reclassified from other comprehensive income or loss to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation.

2.8 Property and Equipment

All property and equipment except for land are recognized at its cost less any accumulated depreciation and any accumulated impairment losses. The cost of property and equipment includes any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Land is measured at fair value on the basis of the valuation performed by an independent valuer. Revaluations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

If an asset’s carrying amount is increased as a result of a revaluation, the increase is recognized in other comprehensive income and the amount is accumulated in equity under the heading of revaluation surplus after netting deferred tax. However, the increase is recognized in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognized in profit or loss. If an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognized in profit or loss. However, the decrease is recognized in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognized in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus. The revaluation surplus included in equity in respect of an item of property and equipment is transferred directly to retained earnings when the asset is derecognized.

Depreciation of all property and equipment, except for land, is calculated using the following method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows:


Property and equipment	Estimated useful lives	Depreciation method
Buildings	40 years	Straight-line method
Vehicles	4 years	Straight-line method
Furniture and equipment	4 years	Straight-line method
Other	4 years	Straight-line method
Right-of-use assets	1~10 years (initial date of the contract entered into ~ maturity date)	Straight-line method

The residual value, the useful life and the depreciation method applied to an asset are reviewed at least at each financial year-end and, if needed, the changes are accounted for as a change in an accounting estimate.

2.9 Investment Property

Property held to earn rentals or for capital appreciation or both is classified as investment property. Investment property is measured initially at its cost. After recognition as an asset, investment property is carried at cost less accumulated depreciation and impairment losses. Investment property, except for land, is depreciated using the straight-line method over their useful lives of 40 years.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.10 Intangible Assets

Intangible assets are measured initially at cost and subsequently carried at their cost less any accumulated amortization and any accumulated impairment losses.

Intangible assets, except for goodwill, comprise software and membership rights, and are amortised using the straight-line method with no residual value over following estimated useful economic life since the asset is available for use. However, goodwill and membership rights are not amortised by considering their useful life as indefinite, because there is no expectable limit to period for use.


Intangible assets	Estimated useful lives	Amortization method
Development costs	4 years	Straight-line method
Software	4 years	Straight-line method

The amortization period and the amortization method for intangible assets with a finite useful life are reviewed at the end of each financial year. The management reviews the useful life of intangible assets that is not being amortised each period to determine whether events and circumstances continue to support an indefinite useful life. If management judges that previous estimates should be adjusted, the change is accounted for as a change in an accounting estimate.

2.11 Impairment of Non-financial Assets

Goodwill or intangible assets with indefinite useful lives are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Non-financial assets, other than goodwill, that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.12 Lease

Lease income from operating leases where the Group is a lessor is recognized on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the statement of financial position based on their nature.

The Group should assess whether a contract is, or contains a lease at the date the contract entered into and the initial application date under Korean IFRS No.1116. But the Group may elect not to reassess whether a contract is, or contains a lease for the contract entered into before the transition date by applying practical expedient permitted by Korean IFRS No.1116. The Group has gone through all the contract to assess whether the contract is, or contains, a lease at the date the contract entered into after the date of initial application.

A lessee is required to recognize a right-of-use asset (lease asset) representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Lease liabilities include the net present value of the following lease payments:

•

Fixed payments (including in-substance fixed payments), less any lease incentives receivable

•

Variable lease payment that are based on an index or a rate

•

Amounts expected to be payable by the lessee under residual value guarantees

•

The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

•

Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate can not be readily determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms and conditions.

Right-of-use assets are measured at cost comprising the following:

•

The amount of the initial measurement of lease liability

•

Any lease payments made at or before the commencement date less any lease incentives received

•

Any initial direct costs incurred by the lessee, and

•

An estimate of restoration costs

However, short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and lease of low-value assets (For example, underlying leased asset under $ 5,000) are permitted to elect exceptional conditions.

The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term.

Related to sale and leaseback, the Group (seller-lessee) is required to apply the Korean IFRS No.1115 ‘Revenue from Contracts with Customers’ to determine whether the transfer of an asset is accounted for as a sale of that asset. However, the Group shall not reassess sale and leaseback transactions entered into before the date of initial application.

Large number of lease contracts held by the Group have extension option and termination option. These conditions are generally used for maximizing the flexibility of lease operation in a view of managing the contracts. Extension option or termination option included in the lease contracts are generally owned by the Group, not lessor. The Group re-evaluated the lease term of the lease contracts by taking into account the contract type, operation plan for branch offices, and costs related to lease termination . As a result, no significant change in the existing lease term has occurred.

2.13 Provisions

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation and the increase in the provision due to passage of time is recognized as interest expense.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.14 Financial Guarantee Contracts

Financial guarantees contracts provided by the Group are initially measured at fair value on the date the guarantee was given. Subsequent to initial recognition, the Group’s liabilities under such guarantees are measured at the higher of the amounts below and recognized as ‘other financial liabilities’:

•

Loss allowance in accordance with Korean IFRS No.1109, ‘Financial Instruments’

•

The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of Korean IFRS No.1115, ‘Revenue from Contracts with Customers’

2.15 Revenue Recognition

The Group recognizes revenues in accordance with the following five-step revenue recognition standard (Korean IFRS No.1115 Revenue from Contracts with Customers).

•

Step 1: Identify the contract with a customer.

•

Step 2: Identify the performance obligations in the contract.

•

Step 3: Determine the transaction price.

•

Step 4: Allocate the transaction price to the performance obligations in the contract.

•

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

2.16 Employee Benefits

2.16.1 Retirement benefit liabilities: Defined benefit plans and Defined contribution plans

The Group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The contributions are recognized as employee benefit expenses when an employee has rendered service. A defined benefit plan is a pension plan that is not a defined contribution plan.

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that have terms to maturity approximating to the terms of the related pension obligation. The remeasurements of the net defined benefit liability are recognized in other comprehensive income.

If any plan amendments, curtailments, or settlements occur, past service costs or any gains or losses on settlement are recognized as profit or loss for the year.

2.16.2 Short-term employee benefits

Short-term employee benefits, which are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the service, are recognized in profit or loss at the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

The expected cost of profit-sharing and bonus payments are recognized as liabilities when the Group has a present legal or constructive obligation to make such payments as a result of past events rendered by employees and a reliable estimate of the obligation can be made.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.16.3 Share-based payment

The Group is under share-based payment arrangements that grant shares to the executives of the Group. When the arrangements are exercised, the Group provides share or cash equal to the monetary value of the share.

The Group measures the services acquired and the liability incurred at fair value, and the fair value is recognized as expense and accrued expenses over the vesting period. Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

2.17 Income Tax Expenses

Income tax expense comprises current income tax and deferred income tax and is recognized in profit or loss for the year, except to the extent that the tax arises from (a) a transaction or event which is recognized either in other comprehensive income or directly in equity and (b) a business combination.

2.17.1 Current income tax

Current income tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period. A difference between the taxable profit and accounting profit may arise when income or expense is included in accounting profit in one period but is included in taxable profit in a different period. Differences may also arise if there is revenue that is exempt from taxation or expenses that is not deductible in determining taxable profit (tax loss). Current income tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The Group offsets current income tax assets and current income tax liabilities if, and only if, the Group (a) has a legally enforceable right to set off the recognized amounts and (b) intends to settle on a net basis.

2.17.2 Deferred income tax

Deferred income tax is recognized, using the asset-liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statements. Deferred income tax liabilities are recognized for all taxable temporary differences and deferred income tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss.

Deferred income tax is recognized on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period. The Group reduces the carrying amount of a deferred income tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Current income tax and deferred income tax are included in the calculation of income tax expense. Income taxes related to prior period are included in current income tax.

Deferred income taxes, recognized directly in equity or arisen from business combination, are directly deducted from equity or goodwill.

2.18 Operating Segment Reporting

Operating segments are components of the Group, about which separate internal reporting information is evaluated regularly by the chief operating decision makers including Board of Directors in deciding how to allocate resources and to assess performance. Each segment is a strategic business unit that offers different products and services, and is managed separately because each business has different risks and opportunities, different technology required and marketing strategies.

Segment information includes the items which are directly attributable and reasonably allocated to the segment.

2.19 Other Receivables and Payables Related to Brokerage Transactions

Regarding customer brokerage transactions, the Group recognizes the receivable from and payable to the Korea Exchange (Clearing and settlement organization) and customers in total amounts, which the Group recognizes as other financial assets and other financial liabilities. The Group offsets the receivable and payable that arise between Korea Exchange and the Group within the same day.

2.20 Business Combinations

The Group applies the book-value method to account for business combinations of entities under common control. Identifiable assets acquired and liabilities assumed in a business combination are measured at their book values on the consolidated financial statements of the ultimate parent entity. In addition, the difference between the sum of book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

2.21 Approval of Issuance of the Financial Statements

The issuance of the December 31, 2024 consolidated financial statements of the Group was approved by the Board of Directors on February 4, 2025, which is subject to change with approval at the annual shareholder’s meeting.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3. Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Group to make estimates and assumptions concerning the future. Management also needs to exercise judgement in applying the Group’s accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Additional information of significant judgment and assumptions of certain items are included in relevant notes.

3.1 Income taxes

The Group recorded, based on its best estimate, current taxes and deferred taxes that the Group will be liable in the future for the operating results at the end of the reporting period. However, the final tax outcome in the future may be different from the amounts that were initially recorded. Such differences will impact the current and deferred income tax assets and liabilities in the period in which the final tax outcome is determined.

If certain portion of the taxable income is not used for investments or increase in wages in accordance with the Special Taxation for Facilitation of Investment and Mutually-Beneficial Cooperation, the Group is liable to pay additional income tax calculated based on the tax law. Accordingly, the measurement of current and deferred income tax is affected by the tax effects from such tax law. As the Group’s income tax is dependent on the investments and increase in wages, there exists uncertainty with regard to measuring the final tax effects.

3.2 Fair value of financial instruments

The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available is determined by using valuation techniques. Financial instruments, which are not actively traded in the market and those with less transparent market prices, will have less objective fair values and require broad judgment on liquidity, concentration, uncertainty in market factors and assumptions in price determination and other risks.

As described in Note 2.5, ‘Recognition and Measurement of Financial Instruments’, diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

3.3 Impairment of financial assets

In accordance of Korean IFRS No.1109, the provision for impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and selecting the inputs to the impairment calculation based on the Group’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period (Note 2.5).

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.4 Measurement of defined benefit obligation

The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the defined benefit liability. The Group determines the appropriate discount rate at the end of the reporting period. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit liability. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the pension benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Other key assumptions for defined benefit liability are based in part on current market conditions.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4. Segment Information

4.1 Types of services from which each reportable segment derives its revenues

Management of the Group decides operating segment based on the information, which is to be reported to the Group’s chief executive officer, in order to allocate resources to the segment and evaluate performance of the segment. The Group’s operating segments consist of brokerage and wealth management, investment banking, trading and other business.

In accordance with Korean IFRS No.1108, reporting segments of the Group by type of services categories are as follows:


Reporting segment		Main business activities
Brokerage and wealth management		Sales and services relating to wealth management and brokerage provided to individuals, corporations and institutional investors

Investment banking		Underwriting and advisory services related to bond issuance, structured finance, initial public offering, and mergers and acquisition

Trading		Trading of securities and derivatives, and proprietary trading

Others		Other services and support services

4.2 Revenue and income of segment reporting

Financial information by operating segment for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	Operating income		Operating expense		Operating profit		Non-operating income(expense)			Profit(loss) before income tax expense(income)
Brokerage and wealth management		5,125,756,091		4,796,445,268		329,310,823		(58,644,234	)		270,666,589
Investment banking		1,170,072,565		983,069,680		187,002,885		36,383,312			223,386,197
Trading		3,929,884,607		3,893,895,155		35,989,452		3,518,269			39,507,721
Others		606,317,462		377,834,145		228,483,317		(13,410,811	)		215,072,506

		10,832,030,725		10,051,244,248		780,786,477		(32,153,464	)		748,633,013


(in thousands of Korean won)	2023
	Operating income		Operating expense		Operating profit		Non-operating income(expense)			Profit(loss) before income tax expense(income)
Brokerage and wealth management		4,261,242,111		3,995,796,550		265,445,561		(15,071,272	)		250,374,289
Investment banking		1,140,541,809		980,639,957		159,901,852		(160,227,030	)		(325,178	)
Trading		5,818,380,116		5,783,227,424		35,152,692		14,908,258			50,060,950
Others		364,976,075		145,322,055		219,654,020		(27,002,623	)		192,651,397

		11,585,140,111		10,904,985,986		680,154,125		(187,392,667	)		492,761,458

The above reported operating income is generated from external customers and inter-segment transactions, and expense includes expenses that can be directly attributed or reasonably allocated to each segment including internal interests. Segment profit represents the profit earned by each segment, reported to the chief executive officer to determine the allocation of resources and to measure the respective segments’ performance.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.3 Assets and liabilities of segments

Total assets and liabilities by each segment as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Total assets		Total liabilities
Brokerage and wealth management		7,564,847,592		8,311,185,348
Investment banking		6,750,342,725		2,777,070,185
Trading		26,389,900,152		11,811,775,837
Others		22,685,444,884		33,602,174,307

		63,390,535,353		56,502,205,677


	2023
(in thousands of Korean won)	Total assets		Total liabilities
Brokerage and wealth management		9,345,980,477		7,884,747,630
Investment banking		5,304,636,428		2,529,523,378
Trading		26,049,912,039		18,355,101,830
Others		20,566,390,942		26,201,515,029

		61,266,919,886		54,970,887,867

4.4 Information on principal customers

No single customer contributed 10% or more to the Group’s revenue for the years ended December 31, 2024 and 2023.

5. Cash and Deposits

The details of cash and deposits as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Cash and cash equivalents
Cash on hand		256			262
Cash in foreign currency		3,006			431,615
Time deposits and installment savings deposits		—			21,500,000
Demand deposits		466,097,989			263,547,704
Checking deposit		12,908,712			4,781,337
Foreign currency deposits		192,459,262			154,516,735
Certificates of deposit		16,170,000			11,604,600
MMDA		88,351,061			93,156,066
Accommodation notes		7,096,548			65,212,108

		783,086,834			614,750,427

Deposits
Deposits for securities subscription		1,083,733			2,166,493
Reserve for claims of customers’ deposits		802,442,695			434,840,018
Guarantee deposits for securities lending and borrowing		46,752,791			203,006,941
Deposits for exchange-traded derivatives		584,738,144			642,870,695
Guarantee deposits for KSFC trading		—			529,659
Long-term deposits		109,213,322			93,670,397
Restricted due from financial institutes		39,000			44,500
Others		995,886,495			935,478,329
Allowances for credit losses of deposits		(738,213	)		(290,229	)

		2,539,417,967			2,312,316,803

		3,322,504,801			2,927,067,230

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Restricted deposits as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Deposits for securities subscription 1		1,083,733		2,166,493
Reserve for claims of customers’ deposits 2		802,442,695		434,840,018
Guarantee deposits for securities lending and borrowing 3		46,752,791		203,006,941
Deposits for exchange-traded derivatives 4		584,738,144		642,870,695
Guarantee deposits for KSFC trading 5		—		529,659
Long-term deposits 6		82,361,293		69,000,000
Restricted due from financial institutes 7		39,000		44,500
Others 8		995,886,495		935,478,329

		2,513,304,151		2,287,936,635

Subscription deposits are subscription margin of investors and the Group that are separately deposited at Korea Securities Finance Corporation(KSFC) or other relevant financial institutions until due date for payment for the subscription of the newly issued or sold securities in accordance with the provisions of Article 4-44 of the Regulation on Financial Investment Business.

2	The reserve for claims of customers’ deposits is deposited separately in a form of trust in KSFC to meet the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.

3	Deposited in Korea Securities Depository to guarantee for securities lending and borrowing.

4	The deposits for exchange-traded derivatives that the investors and the Group pay for foreign futures option trading to KEB Hana Bank and Forex Dealer Member.

5	In the case of an investor’s loan transaction, a certain portion of the price of securities sold is deposited at KSFC as margin.

6	Pledged deposits provided for securities lending and borrowing, repurchase agreements between institutions and retail payment through investment & securities companies are included.

7	Guarantee deposits for checking accounts

8	Deposits in foreign currency and others consist of the margin accounts for trading financial instruments in foreign markets and deposits to court.

Changes in allowances for credit losses of deposits for the years ended December 31, 2024 and 2023, are as follows:


	2024
	12-month expected credit losses			Lifetime expected credit losses
(in thousands of Korean won)	12-month expected credit losses			Non-impaired		Impaired
Beginning		290,229			—		—
Provision		448,028			—		—
Other changes (foreign exchange rate, etc.)		(44	)		—		—

		738,213			—		—


	2023
	12-month expected credit losses			Lifetime expected credit losses
(in thousands of Korean won)	12-month expected credit losses			Non-impaired		Impaired
Beginning		645,224			—		—
Reversal of provision		(354,995	)		—		—

		290,229			—		—

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6. Financial Instruments at FVTPL

The details of financial instruments at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Financial Assets at FVTPL				Financial Liabilities at FVTPL
(in thousands of Korean won)	2024		2023		2024		2023
Financial assets required to be mandatorily measured at FVTPL		37,098,018,781		35,948,948,684		2,558,520,223		2,860,033,642
Financial assets designated at FVTPL		—		—		8,010,047,059		7,975,847,458

		37,098,018,781		35,948,948,684		10,568,567,282		10,835,881,100

6.1 Financial assets required to be mandatorily measured at FVTPL

The details of financial assets required to be mandatorily measured at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Deposits
Reserve for claims of customers’ deposits (trust) 1		4,458,853,144		4,708,118,940
Equity instruments
Stocks		1,629,488,642		956,436,643
Debt instruments
Government and local government bonds		4,038,123,584		3,903,440,137
Special bonds		4,394,107,831		2,981,409,472
Corporate bonds		5,887,629,630		5,907,122,398
Corporate commercial papers		5,668,511,190		6,502,635,311
Asset-backed short-term bonds		1,731,958,269		2,257,642,941
Hybrid bond with security-like features		267,899,220		253,634,969
Investment in partnerships		621,369,479		581,762,940
Collective investment securities		4,889,259,964		4,762,077,497
Hybrid stock with bond-like features		191,300,842		148,101,449
Loans
Loan receivables		937,623,364		235,977
Derivative linked securities
Equity-linked securities		10,897,742		9,129,439
Other derivative linked securities		783,440,520		615,830,815
Other OTC derivative combined contract		102,732,731		187,620,544
Securities in foreign currency
Stocks in foreign currency		56,718,799		32,947,516
Bonds in foreign currency		841,110,016		848,585,456
Investment in partnerships in foreign currency		52,692,465		44,768,900
Collective investment securities in foreign currency		148,454,235		211,642,556
Collective fund for default loss		82,900,562		83,483,822
Hybrid bonds		271,689,060		522,625,044
Exchange traded notes		—		10,540
Other short-term securities held for sale		31,257,492		429,685,378

		37,098,018,781		35,948,948,684

The reserve for claims of customers’ deposits is restricted to use because this reserve is deposited separately in a form of trust in KSFC to meet the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Details of securities sold which are classified as financial liabilities at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Equity Securities
Stocks		798,188,133		585,888,153
Collective investment securities		1,394,238		2,771,484
Debt Securities
Government and local government bonds		1,758,937,852		2,271,374,005

		2,558,520,223		2,860,033,642

The details of financial assets pledged as collateral as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Description1	2024	2023	Security right holder
Financial assets at FVTPL	Guarantee deposits for lending and borrowing securities and bonds	9,908,290,516	10,076,739,059	Korea Securities Depository, etc.
	Margin required and guarantee deposits for derivatives trading	1,591,262,017	1,556,234,283	Korea Stock Exchange, etc.
	Guarantee deposits for reverse repurchase agreements	4,232,134,843	3,200,510,963	Customer, Institution
	Guarantee deposits for agency of balance payments	—	98,000,000	Kookmin Bank
Financial assets at FVOCI	Guarantee deposits for lending and borrowing securities and bond	2,510,367,880	1,719,208,234	Korea Securities Depository, etc.
	Guarantee deposits for derivatives trading	183,121,174	167,879,197	Hana Securities Co., Ltd., etc.
	Guarantee deposits for reverse repurchase agreements	1,811,592,215	2,509,724,246	Customer, Institution

		20,236,768,645	19,328,295,982

1	As at December 31, 2024 and 2023, the accrued interests related to debt securities provided as collateral of 406,426 million and 344,448 million, respectively, are excluded.

The Group provides 8,027,229 million and 7,916,155 million of its borrowing securities held as collateral to KSFC and others as at December 31, 2024 and 2023, respectively.

As at December 31, 2024 and 2023, the fair values of collaterals sold or repledged as collateral regardless of default are as follows:


(in thousands of Korean won)	Securities
(in thousands of Korean won)	2024		2023
Fair value of collateral held		2,255,447,484		1,475,466,369
Fair value of collaterals sold or re-provided as collateral		—		—

		2,255,447,484		1,475,466,369

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2 Financial liabilities designated at FVTPL

The details of financial liabilities designated at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)
(in thousands of Korean won)	2024		2023

Derivative linked securities
Equity-linked securities		4,437,103,116		5,150,606,199
Other derivative linked securities		2,062,512,677		1,834,571,974
Other OTC derivative combined contract		1,209,941,532		933,983,691
Exchange traded notes		300,489,734		56,685,594

		8,010,047,059		7,975,847,458

The differences between the contractual value to be paid at maturity and the carrying amount of financial liabilities at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023

Contractual value to be paid at maturity		7,947,235,520			7,871,014,106
Carrying amount		8,010,047,059			7,975,847,458

Differences		(62,811,539	)		(104,833,352	)

Accumulated changes in fair value of financial liabilities at FVTPL due to the change of credit risk as at December 31, 2024 and 2023, are as follows:


	Other comprehensive income recognized from changes of fair value due to the change of credit risk (before tax) 1
(in thousands of Korean won)	2024		2023
Beginning of the year		16,008,372		(55,892,336	)
Change of fair value		7,493,104		71,900,709

End of the year		23,501,476		16,008,373

1	The Group assessed OCI based on the probability of default corresponding to the Group’s credit rating and loss given default. The amount is before tax.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

7. Derivatives and Hedge Accounting

Derivatives owned by the Group as at December 31, 2024 and 2023, are as follows:


	2024
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		1,178,439		—		5,406,671		4,179,414,373
Equity:
Futures		—		3,260,046		—		7,962,965		2,140,518,324
Purchase options		—		9,946,986		—		—		264,716,897
Written options		—		—		—		165,495,252		1,305,007,298
Currency:
Futures		—		1,694,383		—		234,401		467,353,785
Goods:
Futures		—		1,191,265		—		1,012,175		42,764,421

		—		17,271,119		—		180,111,464		8,399,775,098

OTC derivatives
Interest rate:
Forwards		—		697,806,221		—		674,883,353		17,627,246,000
Swaps		—		118,669,376		—		312,957,040		122,722,303,442
Options		—		10,235,246		—		12,676,965		450,100,000
Currency:
Forwards		—		182,379,315		4,309,200		229,896,555		8,112,241,494
Swaps		—		28,173,803		—		28,835,713		682,131,009
Options		—		4,415,787		—		6,151		147,000,000
Equity:
Swaps		—		278,277,987		—		156,824,783		4,963,174,354
Purchase options		—		4,396,416		—		—		471,018,000
Written options		—		—		—		5,872,788		483,738,001
Credit:
Swaps		—		37,123,089		—		27,397,061		4,411,630,000
Goods:
Swaps		—		12,389,787		—		11,780,566		1,297,182,950
Options		—		3,018,458		—		3,130,137		292,290,390
Others:
Swaps		—		47,097		—		275,542,878		796,712,171

		—		1,376,932,582		4,309,200		1,739,803,990		162,456,767,811

		—		1,394,203,701		4,309,200		1,919,915,454		170,856,542,909

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		6,226,442		—		4,575,801		4,060,134,218
Equity:
Futures		—		11,179,142		—		13,231,866		1,309,051,635
Purchase options		—		6,954,717		—		—		463,629,117
Written options		—		—		—		76,362,413		684,865,465
Currency:
Futures		—		695,841		—		988,763		262,150,197
Goods:
Futures		—		1,304,534		—		105,876		26,037,012

		—		26,360,676		—		95,264,719		6,805,867,644

OTC derivatives
Interest rate:
Forwards		—		501,834,689		—		483,149,733		14,811,295,000
Swaps		—		109,345,316		—		242,414,634		195,202,814,288
Options		—		2,018,458		—		3,037,884		310,000,000
Currency:
Forwards		—		49,134,125		5,307,120		51,416,659		6,078,694,096
Swaps		—		16,012,196		—		18,688,294		676,068,378
Options		—		9,208,609		—		952		412,828,000
Equity:
Swaps		—		330,132,474		—		493,475,311		5,165,522,772
Purchase options		—		71,207,596		—		—		1,864,702,957
Written options		—		—		—		163,911,123		1,854,850,307
Credit:
Swaps		—		17,799,282		—		8,695,443		2,864,356,720
Goods:
Swaps		—		4,348,110		—		4,351,784		31,635,429
Options		—		1,091,360		—		1,146,632		100,484,231
Others:
Swaps		—		—		—		245,312,183		694,541,167

		—		1,112,132,215		5,307,120		1,715,600,632		230,067,793,345

		—		1,138,492,891		5,307,120		1,810,865,351		236,873,660,989

The Group entered into the derivative contracts for hedging foreign currency risk of foreign operations and applied hedge of net investments in foreign operations accounting.

Gain or loss on hedge of net investments in foreign operations for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Gain(loss) on the hedging instrument		(32,456,592	)		(3,879,499	)
Effective portion of changes in fair value of hedging (other comprehensive income)		(32,456,592	)		(3,879,499	)
Ineffective portion of changes in fair value of hedging (profit or loss)		—			—

The effective portion of changes in fair value of hedge of net investments in foreign operations recognized as other comprehensive income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Other comprehensive income		(32,456,592	)		(3,879,499	)
Reclassification form other comprehensive income to net income		3,013,920			7,036,511
Tax effect		7,772,865			(859,392	)

Other comprehensive income-net of tax		(21,669,807	)		2,297,620

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The average price related to hedge of net investments in foreign operations as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	The nominal amount of the hedging instrument		Average price (KRW/USD, Korean won)		Average price (KRW/GBP, Korean won)		Average price (KRW/EUR, Korean won)
1 year		15,876,000		1,071.00		—		—
2 year		236,670,000		1,178.92		—		—
3 year		—		—		—		—
Over 3 year		—		—		—		—

		252,546,000		1,172.13		—		—


(in thousands of Korean won)	2023
	The nominal amount of the hedging instrument		Average price (KRW/USD, Korean won)		Average price (KRW/GBP, Korean won)		Average price (KRW/EUR, Korean won)
1 year		31,332,420		1,071.00		—		—
2 year		—		—		—		—
3 year		207,593,400		1,178.92		—		—
Over 3 year		—		—		—		—

		238,925,820		1,164.76		—		—

8. Financial Assets at FVOCI

The details of financial assets at FVOCI as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Equity instruments
Stocks 1		472,013,720		432,986,576
Investment in partnerships		1,200,000		1,200,000
Other		879,977,297		425,898,551
Debt instruments
Government and municipal government bonds		70,709,895		5,248,842
Special bonds		1,821,452,212		1,519,494,875
Corporate bonds		2,595,239,175		2,542,007,878
Securities in foreign currency
Debt instruments		641,121,645		203,567,442
Stocks		2,407,680		2,407,680
Investment in partnerships		1,169,782		1,701,025

		6,485,291,406		5,134,512,869

1	Equity investment on Korea Stock Exchange and other relative institutions

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Changes in gains and losses on valuation of financial assets at FVOCI (before tax) for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
(in thousands of Korean won)	Beginning balance			Valuation1			Disposal / Transfer			Ending balance
Stocks		386,171,268			(15,718,337	)		—			370,452,931
Government and local government bonds		57,031			(447,623	)		(57,031	)		(447,623	)
Special bonds		3,686,348			7,970,335			(2,382,806	)		9,273,877
Corporate bonds		6,816,506			8,237,295			(1,424,622	)		13,629,179
Securities in foreign currency		(1,035,064	)		(832,695	)		138,432			(1,729,327	)
Other securities in Korean won		(1,588,431	)		14,095,998			(1,992,013	)		10,515,554

		394,107,658			13,304,973			(5,718,040	)		401,694,591

1	Provision for credit loss of debt instruments at FVOCI of 215 million is excluded.


(in thousands of Korean won)	2023
(in thousands of Korean won)	Beginning balance			Valuation1		Disposal / Transfer		Ending balance
Stocks		373,514,968			12,656,300		—		386,171,268
Government and local government bonds		(195,840	)		252,871		—		57,031
Special bonds		(2,654,207	)		3,686,348		2,654,207		3,686,348
Corporate bonds		(23,558,045	)		19,132,483		11,242,068		6,816,506
Securities in foreign currency		(6,164,532	)		5,080,455		49,013		(1,035,064	)
Other securities in Korean won		(22,900,422	)		21,311,991		—		(1,588,431	)

		318,041,922			62,120,448		13,945,288		394,107,658

1	Provision for credit loss of debt instruments at FVOCI of 693 million and reversal of provision for credit loss of debt instruments at FVOCI of 170 million are excluded.

The derecognized equity investments at FVOCI for the year ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Equity investments at FVOCI		151,937,226		—

The dividend income from equity investments at FVOCI for the years ended December 31, 2024 and 2023, are as follows;


(in thousands of Korean won)	2024				2023
(in thousands of Korean won)	Derecognised		Held at the end of reporting period		Derecognised		Held at the end of reporting period
Equity investments at FVOCI
Non marketable securities		—		14,628,399		—		9,216,747
Other equity investments		698,774		31,745,544		—		17,262,460

The Group recognized provision for credit loss of debt instruments at FVOCI amount (before tax) to 1,743 million and 1,528 million, as at December 31, 2024 and 2023, respectively.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9. Investments in Associates

Investments in associates as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)				Percentage of ownership (%)		2024						2023
	Location	Industry	Closing month	Percentage of ownership (%)		Acquisition cost		Net asset amount		Book amount		Acquisition cost		Net asset amount		Book amount
KB Special Purpose Acquisition Company No.21 1	Korea	SPAC	November		0.13		10,000		20,894		20,894		10,000		20,529		20,529
KB Special Purpose Acquisition Company No.22	Korea	SPAC	—		—		—		—		—		10,000		20,125		20,125
KB Special Purpose Acquisition Company No.25 1	Korea	SPAC	November		0.12		5,000		9,965		9,965		5,000		9,771		9,771
KB Special Purpose Acquisition Company No.26 1	Korea	SPAC	November		0.09		5,000		9,836		9,836		5,000		9,613		9,613
KB Special Purpose Acquisition Company No.27 1	Korea	SPAC	November		0.04		5,000		10,236		10,236		5,000		9,959		9,959
KB Special Purpose Acquisition Company No.28 1	Korea	SPAC	November		0.09		5,000		9,645		9,645		—		—		—
KB Special Purpose Acquisition Company No.29 1	Korea	SPAC	November		0.16		10,000		19,982		19,982		—		—		—
KB Special Purpose Acquisition Company No.30 1	Korea	SPAC	November		0.19		10,000		19,518		19,518		—		—		—
KB Special Purpose Acquisition Company No.31 1	Korea	SPAC	November		4.76		10,000		22,618		22,618		—		—		—
KB New Paradigm Agriculture Venture Fund	Korea	Investment	December		25.00		1,275,000		1,291,253		1,291,253		2,100,000		2,615,088		2,615,088
KB KONEX Market Vitalization Fund	Korea	Investment	December		23.44		540,000		1,928,317		1,928,317		615,000		7,633,039		7,633,039
KB-KDBC New Technology Business Investment Fund	Korea	Investment	December		33.33		1,500,000		2,601,286		2,601,286		1,800,000		3,031,227		3,031,227
KBTS Technology Venture Private Equity Fund 1	Korea	Investment	December		16.00		1,888,000		3,179,737		3,179,737		2,592,000		3,534,896		3,534,896
KB-SJ Tourism Venture Fund 1	Korea	Investment	December		18.52		570,000		1,780,925		1,780,925		4,600,000		3,241,734		3,241,734
KB Shinjasanaubo Fund 1	Korea	Investment	December		14.67		1,804,000		1,031,767		1,031,767		1,804,000		1,765,941		1,765,941
UNION Media Commerce Fund	Korea	Investment	December		28.99		1,000,000		945,674		945,674		1,000,000		952,209		952,209
KB-Brain KOSDAQ Scale-Up Fund	Korea	Investment	—		—		—		—		—		—		2,304,484		2,304,484
KB SPROTT Renewable Private Equity Fund I 1	Korea	Investment	December		12.56		3,682,135		3,052,067		3,052,067		3,682,135		3,337,160		3,337,160

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


KB-Stonebridge Secondary Private Equity Fund 1	Korea	Investment	December	4.16	4,620,046	4,819,055	4,819,055	4,810,584	5,395,679	5,395,679
KB-SP Private Equity Fund IV 1	Korea	Investment	December	18.10	6,100,000	3,995,113	3,995,113	6,100,000	2,494,808	2,494,808
KB-UTC Inno-Tech Venture Fund 1	Korea	Investment	December	14.76	6,262,500	3,910,530	3,910,530	6,375,000	5,227,210	5,227,210
KB-NAU Special Situation Corporate Restructuring Private Equity Fund 1	Korea	Investment	December	6.50	5,379,144	8,021,543	8,021,543	4,786,339	8,904,972	8,904,972
KB Material and Parts No. 1 PEF	Korea	Investment	—	—	—	—	—	3,400,000	3,299,669	3,299,669
KB Global Commerce Private Equity Investment Fund	Korea	Investment	—	—	—	—	—	7,000,000	8,635,840	8,635,840
KB-KTB Technology Venture Fund 1	Korea	Investment	December	18.18	10,000,000	9,088,456	9,088,456	8,000,000	7,639,550	7,639,550
KB Bio Global Expansion Private Equity Fund No.1	Korea	Investment	December	39.47	15,000,000	17,870,374	17,870,374	15,000,000	15,895,111	15,895,111
KB Digital Platform Fund 1	Korea	Investment	December	16.67	28,000,000	28,288,502	28,288,502	18,000,000	17,123,835	17,123,835
KB-SOLIDUS Healthcare Investment Fund 1	Korea	Investment	December	5.10	3,683,333	3,484,892	3,484,892	2,383,333	2,249,721	2,249,721
G Payment Joint Stock Company	Vietnam	Electrinic payment & settlement agency	December	26.02	5,870,702	1,504,194	2,520,780	9,028,760	3,318,951	8,966,066
KB-GeneN Medical Venture Fund 1	Korea	Investment	December	22.52	2,000,000	1,880,230	1,880,230	2,000,000	1,922,291	1,922,291
KB-BridgePole Venture Investment Fund	Korea	Investment	—	—	—	—	—	136,000	863,129	863,129
KB-Kyobo New Mobility Power Fund	Korea	Investment	—	—	—	—	—	3,000,000	2,621,880	2,621,880
DA-Friend Investment Fund II	Korea	Investment	December	27.06	987,633	906,175	906,175	987,633	927,462	927,462
Cornerstone Pentastone IV Fund	Korea	Investment	December	21.52	817,742	763,949	763,949	817,742	774,734	774,734
JS Private Equity Fund III	Korea	Investment	December	20.48	945,021	742,406	742,406	1,700,000	1,861,512	1,861,512
Mirae Asset Mobility Investment Fund I	Korea	Investment	December	22.99	2,000,000	1,917,647	1,917,647	2,000,000	1,948,750	1,948,750
KB-FT 1st Green Growth Investment Fund 1	Korea	Investment	December	10.34	2,000,000	1,888,925	1,888,925	2,000,000	1,928,089	1,928,089
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)	Korea	Investment	December	31.25	1,000,000	953,961	953,961	1,000,000	972,191	972,191
POSITVE Sobujang Venture Fund #1	Korea	Investment	December	43.96	879,121	869,206	869,206	2,000,000	1,965,090	1,965,090
KB-NP Green ESG New Technology Venture Capital Fund 1	Korea	Investment	December	11.59	16,100,000	15,436,985	15,436,985	8,180,000	7,771,668	7,771,668
Hisstory 2022 Fintech Fund	Korea	Investment	December	34.78	2,000,000	1,896,203	1,896,203	2,000,000	1,937,813	1,937,813
KB Star REIT	Korea	Investment	December	26.84	134,304,646	98,600,791	98,600,791	134,772,782	120,231,339	120,231,339
KB Bio Private Equity Investment Fund IV	Korea	Investment	December	24.19	7,500,000	7,369,339	7,369,339	7,500,000	6,770,765	6,770,765

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


Nextrade Co., Ltd. 1	Korea	Other financial	September	6.64	9,700,000	8,180,476	8,180,476	9,700,000	9,225,312	9,225,312
LAKEWOOD-AVES Fund No.1	Korea	Investment	—	—	—	—	—	2,000,000	1,976,715	1,976,715
MW-Pyco NewWave New Technology Investment Fund 4th	Korea	Investment	December	51.28	2,000,000	1,921,768	1,921,768	2,000,000	1,965,019	1,965,019
KB-SUSUNG 1st Investment Fund 1	Korea	Investment	December	10.00	1,076,000	1,458,974	1,458,974	2,000,000	1,968,977	1,968,977
Friend 55 New Technology Business Investment Fund	Korea	Investment	—	—	—	—	—	1,200,000	1,182,473	1,182,473
Bitgoeul Cheomdan Green 1st Co., 1 Ltd. 1	Korea	Investment	December	19.00	342,000	241,205	241,205	190,000	165,451	165,451
DSIP-Pharos Bioenergy Fund	Korea	Investment	—	—	—	—	—	4,000,000	16,457,868	16,457,868
Shinhan-Eco Venture Fund 2nd	Korea	Investment	December	20.00	2,050,000	1,973,060	1,973,060	1,825,000	1,800,072	1,800,072
Leading H2O Fund 1	Korea	Investment	December	48.23	1,500,000	1,454,933	1,454,933	1,500,000	1,488,980	1,488,980
2023 JB Newtech No.2 Fund	Korea	Investment	December	25.71	1,405,557	1,705,208	1,705,208	1,800,000	1,785,594	1,785,594
U-KB Credit No.1 Private Equity	Korea	Investment	December	23.26	5,093,023	5,584,704	5,584,704	4,813,953	4,779,307	4,779,307
KB-BridgePole Venture Investment Fund #2 1	Korea	Investment	December	14.29	1,500,000	1,463,485	1,463,485	1,500,000	1,494,373	1,494,373
Sirius Silicon Valley I New Technology Fund	Korea	Investment	December	23.81	500,000	474,480	474,480	500,000	485,282	485,282
Timefolio Athleisure Investment Fund	Korea	Investment	December	48.19	4,000,000	3,922,757	3,922,757	—	—	—
COMPA Global Scale-Up Fund No.3	Korea	Investment	December	29.99	1,000,000	979,681	979,681	—	—	—
AKK Robotech Valueup New Technology Investment Fund 1	Korea	Investment	December	4.98	1,000,000	1,126,629	1,126,629	—	—	—
YG MCE PROJECT No.1 Fund	Korea	Investment	December	27.78	1,500,000	1,476,809	1,476,809	—	—	—
HI YG Win-win Fund No.2	Korea	Investment	December	20.62	2,000,000	1,972,792	1,972,792	—	—	—
KB-CJ Venture Fund 1st	Korea	Investment	December	40.00	1,800,000	1,732,747	1,732,747	—	—	—
Elohim-Bilanx aerospace No.1 Fund	Korea	Investment	December	20.94	2,000,000	1,978,245	1,978,245	—	—	—
KB-SUSUNG 2nd Investment Fund 1	Korea	Investment	December	12.66	2,000,000	1,980,873	1,980,873	—	—	—
IMM global Secondary 1-1 Equity Private Fund	Korea	Investment	December	41.65	2,819,038	3,753,976	3,753,976	—	—	—
LIB Material Investment Fund	Korea	Investment	December	25.49	4,098,144	1,474,980	1,474,980	—	—	—
NOVORSEC-SJG Consumer Secondary Fund	Korea	Investment	December	24.29	1,700,000	1,687,706	1,687,706	—	—	—
KBSBI Global High- tech Strategic Private Equity Investment Limited Partnership 1	Korea	Investment	December	16.30	5,059,098	4,828,296	4,828,296	—	—	—

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


KB-Cyrus Tourism Venture Fund 1	Korea	Investment	December	18.52	1,000,000	977,172	977,172	—	—	—
IBKS Design Fund	Korea	Investment	December	46.51	2,000,000	1,996,162	1,996,162	—	—	—
NICE DATA INTELLIGENCE VENTURE FUND	Korea	Investment	December	23.53	1,000,000	997,864	997,864	—	—	—
Pectus Hanwha Fund No.2	Korea	Investment	December	29.41	2,000,000	1,950,322	1,950,322	—	—	—
Korea Environment Technology Co., LTD	Korea	Waste disposal	September	24.31	107,427,843	43,155,859	107,427,843	—	—	—
KB-IMM New Star Real Estate Private Fund 1	Korea	Investment	December	40.83	20,897,275	21,897,251	21,897,251	—	—	—

					456,237,001	352,490,610	417,779,180	304,235,261	305,943,257	311,590,372

1	Although the ownership of the Group is less than 20%, these are included as associates, since the Group has a significant influence over investee’s policy and operations.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Changes in investments in associates for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Beginning balance		Acquisition		Dividends			Disposal			Changes in equity of associates		Profit (loss) of associates			Ending balance
KB Special Purpose Acquisition Company No.21		20,529		—		—			—			1		364			20,894
KB Special Purpose Acquisition Company No.22		20,125		—		—			(20,125	)		—		—			—
KB Special Purpose Acquisition Company No.25		9,771		—		—			—			—		194			9,965
KB Special Purpose Acquisition Company No.26		9,613		—		—			—			—		223			9,836
KB Special Purpose Acquisition Company No.27		9,959		—		—			—			—		277			10,236
KB Special Purpose Acquisition Company No.28		—		5,000		—			4,052			611		(18	)		9,645
KB Special Purpose Acquisition Company No.29		—		10,000		—			6,452			3,988		(458	)		19,982
KB Special Purpose Acquisition Company No.30		—		10,000		—			8,185			1,771		(438	)		19,518
KB Special Purpose Acquisition Company No.31		—		10,000		—			—			13,498		(880	)		22,618
KB New Paradigm Agriculture Venture Fund		2,615,088		—		—			(825,000	)		—		(498,835	)		1,291,253
KB KONEX Market Vitalization Fund		7,633,039		—		(3,084,375	)		(75,000	)		—		(2,545,347	)		1,928,317
KB-KDBC New Technology Business Investment Fund		3,031,227		—		—			(300,000	)		—		(129,941	)		2,601,286
KBTS Technology Venture Private Equity Fund		3,534,896		—		—			(704,000	)		—		348,841			3,179,737

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


KB-SJ Tourism Venture Fund	3,241,734	—	(1,517,461	)	(4,030,000	)	—	4,086,652		1,780,925
KB Shinjasanaubo Fund	1,765,941	—	—		—		—	(734,174	)	1,031,767
UNION Media Commerce Fund	952,209	—	—		—		—	(6,535	)	945,674
KB-Brain KOSDAQ Scale-Up Fund	2,304,484	—	—		(2,304,484	)	—	—		—
KB SPROTT Renewable Private Equity Fund I	3,337,160	—	—		—		—	(285,093	)	3,052,067
KB-Stonebridge Secondary Private Equity Fund	5,395,679	—	(14,746	)	(190,539	)	—	(371,339	)	4,819,055
KB-SP Private Equity Fund IV	2,494,808	—	—		—		668,154	832,151		3,995,113
KB-UTC Inno-Tech Venture Fund	5,227,210	—	—		(112,500	)	—	(1,204,180	)	3,910,530
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	8,904,972	4,482,000	—		(3,889,195	)	—	(1,476,234	)	8,021,543
KB Material and Parts No. 1 PEF	3,299,669	—	—		(3,299,669	)	—	—		—
KB Global Commerce Private Equity Investment Fund	8,635,840	—	—		(8,635,840	)	—	—		—
KB-KTB Technology Venture Fund	7,639,550	2,000,000	—		—		—	(551,094	)	9,088,456
KB Bio Global Expansion Private Equity Fund No.1	15,895,111	—	—		—		—	1,975,263		17,870,374
KB Digital Platform Fund	17,123,835	10,000,000	—		—		—	1,164,667		28,288,502
KB-SOLIDUS Healthcare Investment Fund	2,249,721	1,300,000	—		—		—	(64,829	)	3,484,892
G Payment Joint Stock Company	8,966,066	—	—		(1,504,288	)	432,445	(5,373,443	)	2,520,780
KB-GeneN Medical Venture Fund 1	1,922,291	—	—		—		—	(42,061	)	1,880,230
KB-BridgePole Venture Investment Fund	863,129	—	—		(863,129	)	—	—		—
KB-Kyobo New Mobility Power Fund	2,621,880	—	—		(2,621,880	)	—	—		—
DA-Friend Investment Fund II	927,462	—	—		—		—	(21,287	)	906,175
Cornerstone Pentastone IV Fund	774,734	—	—		—		—	(10,785	)	763,949
JS Private Equity Fund III	1,861,512	—	—		(754,979	)	—	(364,127	)	742,406
Mirae Asset Mobility Investment Fund I	1,948,750	—	—		—		—	(31,103	)	1,917,647

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


KB-FT 1st Green Growth Investment Fund	1,928,089	—	—		—		—		(39,164	)	1,888,925
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)	972,191	—	—		—		—		(18,230	)	953,961
POSITVE Sobujang Venture Fund #1	1,965,090	—	(2,128,815	)	(1,120,879	)	—		2,153,810		869,206
KB-NP Green ESG New Technology Venture Capital Fund	7,771,668	7,920,000	—		—		—		(254,683	)	15,436,985
Hisstory 2022 Fintech Fund	1,937,813	—	—		—		—		(41,610	)	1,896,203
KB Star REIT	120,231,339	—	(10,263,978	)	(468,136	)	8,222,578		(19,121,012	)	98,600,791
KB Bio Private Equity Investment Fund IV	6,770,765	—	—		—		—		598,574		7,369,339
Nextrade Co., Ltd.	9,225,312	—	—		—		—		(1,044,836	)	8,180,476
LAKEWOOD-AVES Fund No.1	1,976,715	—	—		(1,976,715	)	—		—		—
MW-Pyco NewWave New Technology Investment Fund 4th	1,965,019	—	—		—		—		(43,251	)	1,921,768
KB-SUSUNG 1st Investment Fund	1,968,977	—	—		(924,000	)	—		413,997		1,458,974
Friend 55 New Technology Business Investment Fund	1,182,473	—	—		(1,182,473	)	—		—		—
Bitgoeul Cheomdan Green 1st Co., Ltd.	165,451	152,000	—		—		(928	)	(75,318	)	241,205
DSIP-Pharos Bioenergy Fund	16,457,868	—	—		(16,457,868	)	—		—		—
Shinhan-Eco Venture Fund 2nd	1,800,072	225,000	—		—		—		(52,012	)	1,973,060
Leading H2O Fund 1	1,488,980	—	—		—		—		(34,047	)	1,454,933
2023 JB Newtech No.2 Fund	1,785,594	—	(149,904	)	(394,443	)	—		463,961		1,705,208
U-KB Credit No.1 Private Equity	4,779,307	279,070	—		—		—		526,327		5,584,704
KB-BridgePole Venture Investment Fund #2	1,494,373	—	—		—		—		(30,888	)	1,463,485
Sirius Silicon Valley I New Technology Fund	485,282	—	—		—		—		(10,802	)	474,480
Timefolio Athleisure Investment Fund	—	4,000,000	—		—		—		(77,243	)	3,922,757
COMPA Global Scale-Up Fund No.3	—	1,000,000	—		—		—		(20,319	)	979,681

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


AKK Robotech Valueup New Technology Investment Fund	—	1,000,000	—		—		—	126,629		1,126,629
YG MCE PROJECT No.1 Fund	—	1,500,000	—		—		—	(23,191	)	1,476,809
HI YG Win-win Fund No.2	—	2,000,000	—		—		—	(27,208	)	1,972,792
KB-CJ Venture Fund 1st	—	1,800,000	—		—		—	(67,253	)	1,732,747
Elohim-Bilanx aerospace No.1 Fund	—	2,000,000	—		—		—	(21,755	)	1,978,245
KB-SUSUNG 1st Investment Fund	—	2,000,000	—		—		—	(19,127	)	1,980,873
IMM global Secondary 1-1 Equity Private Fund	—	2,819,038	—		—		—	934,938		3,753,976
LIB Material Investment Fund	—	4,098,144	—		—		—	(2,623,164	)	1,474,980
NOVORSEC-SJG Consumer Secondary Fund	—	1,700,000	—		—		—	(12,294	)	1,687,706
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	—	5,059,098	—		—		—	(230,802	)	4,828,296
KB-Cyrus Tourism Venture Fund	—	1,000,000	—		—		—	(22,828	)	977,172
IBKS Design Fund	—	2,000,000	—		—		—	(3,838	)	1,996,162
NICE DATA INTELLIGENCE VENTURE FUND	—	1,000,000	—		—		—	(2,136	)	997,864
Pectus Hanwha Fund No.2	—	2,000,000	—		—		—	(49,678	)	1,950,322
KB-IMM Newstar Real Estate Private Fund 1	—	20,897,275	—		—		—	999,976		21,897,251
Korea Environment Technology Co., LTD	—	107,427,843	—		—		—	—		107,427,843

	311,590,372	189,694,468	(17,159,279	)	(52,636,453	)	9,342,118	(23,052,046	)	417,779,180

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Dividends		Disposal			Impairment		Re-classification1		Changes in equity of associates		Profit (loss) of associates			Ending balance
KB Special Purpose Acquisition Company No.21		20,053		—		—		—			—		—		11		465			20,529
KB Special Purpose Acquisition Company No.22		19,767		—		—		—			—		—		—		358			20,125
KB Special Purpose Acquisition Company No.23		10,060		—		—		(10,060	)		—		—		—		—			—
KB Special Purpose Acquisition Company No.24		57,197		—		—		(57,197	)		—		—		—		—			—
KB Special Purpose Acquisition Company No.25		—		5,000		—		1,722			—		—		3,289		(240	)		9,771
KB Special Purpose Acquisition Company No.26		—		5,000		—		2,734			—		—		1,953		(74	)		9,613
KB Special Purpose Acquisition Company No.27		—		5,000		—		(3,677	)		—		—		8,800		(164	)		9,959
KB New Paradigm Agriculture Venture Fund		2,976,845		—		—		—			—		—		—		(361,757	)		2,615,088
KB KONEX Market Vitalization Fund		7,301,375		—		—		—			—		—		—		331,664			7,633,039
KB-KDBC New Technology Business Investment Fund		2,988,748		—		—		—			—		—		—		42,479			3,031,227
KBTS Technology Venture Private Equity Fund		3,941,180		—		—		(192,000	)		—		—		—		(214,284	)		3,534,896
KB-SJ Tourism Venture Fund		3,773,125		—		—		—			—		—		—		(531,391	)		3,241,734
KB Shinjasanaubo Fund		1,810,764		—		—		—			—		—		—		(44,823	)		1,765,941
UNION Media Commerce Fund		956,728		—		—		—			—		—		—		(4,519	)		952,209
KB-Brain KOSDAQ Scale-Up Fund		6,675,432		—		—		(4,950,000	)		—		—		—		579,052			2,304,484
KB SPROTT Renewable Private Equity Fund I		3,374,650		—		—		—			—		—		—		(37,490	)		3,337,160

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


KB-Stonebridge Secondary Private Equity Fund	7,184,026	—	(113,113	)	(1,989,771	)	—		—		—		314,537		5,395,679
KB-SP Private Equity Fund IV	1,892,224	—	—		—		—		—		93,317		509,267		2,494,808
KB-UTC Inno-Tech Venture Fund	6,393,024	—	(2,647	)	(750,000	)	—		—		—		(413,167	)	5,227,210
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	6,276,963	900,000	—		(1,116,868	)	—		—		—		2,844,877		8,904,972
December & Company Inc.	16,028,831	—	—		(2,573,879	)	(12,290,444	)	(1,164,508	)	—		—		—
KB Material and Parts No. 1 PEF	3,320,637	—	(34,000	)	—		—		—		—		13,032		3,299,669
KB Global Commerce Private Equity Investment Fund	6,219,107	—	—		—		—		—		—		2,416,733		8,635,840
KB-KTB Technology Venture Fund	5,806,248	2,000,000	—		—		—		—		—		(166,698	)	7,639,550
KB Bio Global Expansion Private Equity Fund No.1	15,779,019	—	—		—		—		—		—		116,092		15,895,111
KB Digital Platform Fund	9,055,919	8,500,000	—		—		—		—		—		(432,084	)	17,123,835
KB-SOLIDUS Healthcare Investment Fund	1,036,176	1,283,333	—		—		—		—		—		(69,788	)	2,249,721
G Payment Joint Stock Company	9,282,131	—	—		—		—		—		(79,519	)	(236,546	)	8,966,066
KB-GeneN Medical Venture Fund 1	1,964,512	—	—		—		—		—		—		(42,221	)	1,922,291
KB-BridgePole Venture Investment Fund	834,741	—	(637,500	)	(714,000	)	—		—		—		1,379,888		863,129
KB-Kyobo New Mobility Power Fund	2,826,264	—	—		—		—		—		—		(204,384	)	2,621,880
DA-Friend Investment Fund II	948,652	—	—		—		—		—		—		(21,190	)	927,462
Cornerstone Pentastone IV Fund	792,174	—	—		—		—		—		—		(17,440	)	774,734
SKS-VLP Fund No.2	1,121,399	—	—		(1,121,399	)	—		—		—		—		—
JS Private Equity Fund III	1,664,180	—	—		—		—		—		—		197,332		1,861,512
Mirae Asset Mobility Investment Fund I	1,979,241	—	—		—		—		—		—		(30,491	)	1,948,750
KB-FT 1st Green Growth Investment Fund	1,969,650	—	—		—		—		—		—		(41,561	)	1,928,089
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)	989,491	—	—		—		—		—		—		(17,300	)	972,191
POSITVE Sobujang Venture Fund #1	1,977,209	—	—		—		—		—		—		(12,119	)	1,965,090

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


Hisstory 2022 Fintech Fund	1,980,701	—	—		—		—		—		—		(42,888	)	1,937,813
PEBBLES-MW M.C.E New Technology Investment Fund 1st	1,981,813	—	—		(1,981,813	)	—		—		—		—		—
KB-NP Green ESG New Technology Venture Capital Fund	3,617,183	4,440,000	—		—		—		—		—		(285,515	)	7,771,668
KB Star Galaxy REIT	136,323,142	—	(9,643,551	)	—		—		—		(5,434,729	)	(1,013,523	)	120,231,339
KB Bio Private Equity Investment Fund IV	7,492,209	—	—		—		—		—		—		(721,444	)	6,770,765
Nextrade Co., Ltd.	9,700,000	—	—		—		—		—		—		(474,688	)	9,225,312
LAKEWOOD-AVES Fund No.1	—	2,000,000	—		—		—		—		—		(23,285	)	1,976,715
MW-Pyco NewWave New Technology Investment Fund 4th	—	2,000,000	—		—		—		—		—		(34,981	)	1,965,019
KB-SUSUNG 1st Investment Fund	—	2,000,000	—		—		—		—		—		(31,023	)	1,968,977
Friend 55 New Technology Business Investment Fund	—	1,200,000	—		—		—		—		—		(17,527	)	1,182,473
Bitgoeul Cheomdan Green 1st Co., Ltd.	—	190,000	—		—		—		—		(1,040	)	(23,509	)	165,451
DSIP-Pharos Bioenergy Fund	—	4,000,000	—		—		—		—		—		12,457,868		16,457,868
Shinhan-Eco Venture Fund 2nd	—	1,825,000	—		—		—		—		—		(24,928	)	1,800,072
Leading H2O Fund 1	—	1,500,000	—		—		—		—		—		(11,020	)	1,488,980
2023 JB Newtech No.2 Fund	—	1,800,000	—		—		—		—		—		(14,406	)	1,785,594
U-KB Credit No.1 Private Equity	—	4,813,953	—		—		—		—		—		(34,646	)	4,779,307
KB-BridgePole Venture Investment Fund #2	—	1,500,000	—		—		—		—		—		(5,627	)	1,494,373
Sirius Silicon Valley I New Technology Fund	—	500,000	—		—		—		—		—		(14,718	)	485,282

	300,342,790	40,467,286	(10,430,811	)	(15,456,208	)	(12,290,444	)	(1,164,508	)	(5,407,918	)	15,530,185		311,590,372

1	This amount is reclassified from financial assets measured at FVTPL for the year ended December 31, 2023.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Summarized financial information of the associates as at and for the years ended December 31, 2024 and 2023, are as follows:


	December 31, 2024						2024
(in thousands of Korean won)	Assets		Liabilities		Equity		Operating Revenue		Profit (loss) for the period			Total comprehensive Income(loss)
KB Special Purpose Acquisition Company No.21		18,332,104		2,222,965		16,109,139		539,414		280,847			280,847
KB Special Purpose Acquisition Company No.25		9,960,644		1,380,515		8,580,129		297,025		167,600			167,600
KB Special Purpose Acquisition Company No.26		12,198,917		1,369,222		10,829,695		357,751		246,179			246,179
KB Special Purpose Acquisition Company No.27		30,491,081		4,071,785		26,419,296		993,859		715,088			715,088
KB Special Purpose Acquisition Company No.28		12,135,104		1,516,167		10,618,937		223,386		59,682			59,682
KB Special Purpose Acquisition Company No.29		14,557,704		2,129,143		12,428,561		219,019		98,029			98,029
KB Special Purpose Acquisition Company No.30		11,866,140		1,502,204		10,363,936		79,990		22,592			22,592
KB Special Purpose Acquisition Company No.31		2,588,400		2,113,426		474,974		8,356		(18,484	)		(18,484	)
KB New Paradigm Agriculture Venture Fund		5,519,607		354,593		5,165,014		2,051,864		(1,995,337	)		(1,995,337	)
KB KONEX Market Vitalization Fund		8,668,671		441,510		8,227,161		2,716,958		(10,860,148	)		(10,860,148	)
KB-KDBC New Technology Business Investment Fund		7,803,895		—		7,803,895		398,002		(389,823	)		(389,823	)
KBTS Technology Venture Private Equity Fund		26,460,488		6,587,130		19,873,358		1,832,117		2,180,255			2,180,255
KB-SJ Tourism Venture Fund		9,892,964		275,917		9,617,047		26,720,057		22,067,920			22,067,920
KB Shinjasanaubo Fund		7,547,286		512,514		7,034,772		489,073		(5,005,733	)		(5,005,733	)
UNION Media Commerce Fund		3,318,493		55,914		3,262,579		—		(22,543	)		(22,543	)
KB SPROTT Renewable Private Equity Fund I		24,548,257		251,342		24,296,915		573		(637,660	)		(637,660	)
KB-Stonebridge Secondary Private Equity Fund		115,992,985		193,139		115,799,846		6,646,286		(8,923,271	)		(8,923,271	)
KB-SP Private Equity Fund IV		22,631,499		560,136		22,071,363		8,362,610		8,143,386			8,143,386
KB-UTC Inno-Tech Venture Fund		26,935,093		447,758		26,487,335		967,517		(8,156,312	)		(8,156,312	)
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		123,434,421		407,903		123,026,518		24,533,608		(28,117,368	)		(28,117,368	)
KB-KTB Technology Venture Fund		50,673,348		686,842		49,986,506		692,694		(3,031,017	)		(3,031,017	)
KB Bio Global Expansion Private Equity Fund No.1		45,378,133		106,519		45,271,614		5,422,750		5,003,999			5,003,999
KB Digital Platform Fund		170,540,295		809,282		169,731,013		10,521,343		6,988,002			6,988,002
KB-SOLIDUS Healthcare Investment Fund		69,003,602		2,750		69,000,852		39,504		(1,283,621	)		(1,283,621	)
G Payment Joint Stock Company		10,253,233		2,993,608		7,259,625		1,410,529		(944,194	)		(944,194	)
KB-GeneN Medical Venture Fund 1		8,525,819		177,600		8,348,219		32		(186,754	)		(186,754	)
DA-Friend Investment Fund II		3,500,297		151,340		3,348,957		1		(78,670	)		(78,670	)
Cornerstone Pentastone IV Fund		3,552,778		2,750		3,550,028		37		(50,116	)		(50,116	)
JS Private Equity Fund III		3,625,184		495		3,624,689		308,810		(1,777,796	)		(1,777,796	)
Mirae Asset Mobility Investment Fund I		8,416,677		74,913		8,341,764		14,450		(135,298	)		(135,298	)
KB-FT 1st Green Growth Investment Fund		18,270,632		—		18,270,632		12,171		(378,806	)		(378,806	)

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)	3,052,675	—	3,052,675	663	(58,337	)	(58,337	)
POSITVE Sobujang Venture Fund #1	2,003,047	25,603	1,977,444	5,741,836	4,899,917		4,899,917
KB-NP Green ESG New Technology Venture Capital Fund	133,928,517	775,262	133,153,255	766,791	(2,196,796	)	(2,196,796	)
Hisstory 2022 Fintech Fund	5,506,581	54,998	5,451,583	769	(119,630	)	(119,630	)
KB Star REIT	1,141,992,556	774,895,403	367,097,153	68,824,273	(71,231,027	)	(40,599,665	)
KB Bio Private Equity Investment Fund IV	30,459,936	—	30,459,936	2,806,489	2,474,105		2,474,105
Nextrade Co., Ltd.	125,776,463	2,563,311	123,213,152	3,855,984	(15,737,169	)	(15,737,169	)
MW-Pyco NewWave New Technology Investment Fund 4th	3,747,448	—	3,747,448	1,483	(84,338	)	(84,338	)
KB-SUSUNG 1st Investment Fund	14,589,744	—	14,589,744	5,164,403	4,139,974		4,139,974
Bitgoeul Cheomdan Green 1st Co., Ltd.	1,274,434	4,933	1,269,501	1,216	(396,409	)	(396,409	)
Shinhan-Eco Venture Fund 2nd	9,868,245	2,943	9,865,302	191	(260,058	)	(260,058	)
Leading H2O Fund 1	3,017,881	1,320	3,016,561	2,622	(70,591	)	(70,591	)
2023 JB Newtech No.2 Fund	6,634,045	2,680	6,631,365	2,532,646	1,804,292		1,804,292
U-KB Credit No.1 Private Equity	24,988,198	973,973	24,014,225	4,487,180	2,263,206		2,263,206
KB-BridgePole Venture Investment Fund #2	10,244,395	—	10,244,395	4,453	(216,217	)	(216,217	)
Sirius Silicon Valley I New Technology Fund	1,994,137	1,320	1,992,817	10,018	(45,367	)	(45,367	)
Timefolio Athleisure Investment Fund	8,139,720	—	8,139,720	5,567	(160,280	)	(160,280	)
COMPA Global Scale-Up Fund No.3	3,266,256	—	3,266,256	8,701	(67,744	)	(67,744	)
AKK Robotech Valueup New Technology Investment Fund	22,650,742	5,500	22,645,242	2,975,886	2,545,242		2,545,242
YG MCE PROJECT No.1 Fund	5,316,511	—	5,316,511	2,202	(83,489	)	(83,489	)
HI YG Win-win Fund No.2	9,568,040	—	9,568,040	4,109	(131,960	)	(131,960	)
KB-CJ Venture Fund 1st	4,333,360	1,493	4,331,867	33,521	(168,133	)	(168,133	)
Elohim-Bilanx aerospace No.1 Fund	9,451,403	5,281	9,446,122	2,146	(103,878	)	(103,878	)
KB-SUSUNG 1st Investment Fund	15,648,898	—	15,648,898	42,634	(151,102	)	(151,102	)
IMM global Secondary 1-1 Equity Private Fund	9,503,209	489,912	9,013,297	2,317,566	2,244,785		2,244,785
LIB Material Investment Fund	5,786,900	—	5,786,900	33	(19,095,757	)	(19,095,757	)
NOVORSEC-SJG Consumer Secondary Fund	6,949,377	—	6,949,377	7,076	(50,623	)	(50,623	)
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	30,205,065	575,425	29,629,640	1,868	(1,416,360	)	(1,416,360	)
KB-Cyrus Tourism Venture Fund	5,276,727	—	5,276,727	4,805	(123,273	)	(123,273	)
IBKS Design Fund	4,291,749	—	4,291,749	121	(8,251	)	(8,251	)
NICE DATA INTELLIGENCE VENTURE FUND	4,240,923	—	4,240,923	40	(9,077	)	(9,077	)
Pectus Hanwha Fund No.2	6,631,425	330	6,631,095	330	(168,905	)	(168,905	)
Korea Environment Technology Co., LTD	232,104,396	54,581,324	177,523,072	63,023,649	21,181,267		21,181,267
KB-IMM Newstar Real Estate Private Fund 1	53,735,524	109,604	53,625,920	2,680,690	2,448,920		2,448,920

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Summarized financial information of associates for which financial information is not available as at December 31, 2024 are excluded.


	December 31, 2023						2023
(in thousands of Korean won)	Assets		Liabilities		Equity		Operating Revenue		Profit (loss) for the period			Total comprehensive Income(loss)
KB Special Purpose Acquisition Company No.21		17,821,142		1,993,667		15,827,475		670,340		358,716			358,716
KB Special Purpose Acquisition Company No.22		12,269,371		1,763,873		10,505,498		320,731		187,053			187,053
KB Special Purpose Acquisition Company No.25		9,741,210		1,328,681		8,412,529		154,773		55,694			55,694
KB Special Purpose Acquisition Company No.26		11,902,881		1,319,365		10,583,516		140,472		51,593			51,593
KB Special Purpose Acquisition Company No.27		29,633,238		3,929,029		25,704,209		129,687		37,525			37,525
KB New Paradigm Agriculture Venture Fund		10,666,067		205,717		10,460,350		162,184		(1,447,030	)		(1,447,030	)
KB KONEX Market Vitalization Fund		32,567,673		364		32,567,309		3,672,022		1,415,102			1,415,102
KB-KDBC New Technology Business Investment Fund		9,094,707		990		9,093,717		105		127,436			127,436
KBTS Technology Venture Private Equity Fund		28,232,523		6,139,420		22,093,103		835,529		(1,339,272	)		(1,339,272	)
KB-SJ Tourism Venture Fund		18,002,900		497,482		17,505,418		664,167		(2,869,509	)		(2,869,509	)
KB Shinjasanaubo Fund		12,327,788		287,283		12,040,505		165,077		(305,614	)		(305,614	)
UNION Media Commerce Fund		3,318,493		33,371		3,285,122		—		(15,593	)		(15,593	)
KB-Brain KOSDAQ Scale-Up Fund		14,441,479		—		14,441,479		7,610,245		3,628,725			3,628,725
KB SPROTT Renewable Private Equity Fund I		42,868,123		378,558		42,489,565		26,227		(393,950	)		(393,950	)
KB-Stonebridge Secondary Private Equity Fund		129,859,951		203,834		129,656,117		9,697,956		7,558,338			7,558,338
KB-SP Private Equity Fund IV		16,807,398		570,698		16,236,700		3,894,047		4,073,191			4,073,191
KB-UTC Inno-Tech Venture Fund		35,978,162		572,516		35,405,646		1,319,017		(2,798,519	)		(2,798,519	)
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		145,519,150		475,264		145,043,886		58,734,438		47,414,623			47,414,623
KB Material and Parts No. 1 PEF		22,808,490		1,955		22,806,535		450,931		90,071			90,071
KB Global Commerce Private Equity Investment Fund		53,160,689		111,960		53,048,729		14,323,876		14,845,645			14,845,645
KB-KTB Technology Venture Fund		42,263,387		245,864		42,017,523		166,031		(916,841	)		(916,841	)
KB Bio Global Expansion Private Equity Fund No.1		40,373,396		105,781		40,267,615		712,543		294,100			294,100
KB Digital Platform Fund		103,501,602		758,591		102,743,011		649,000		(2,592,505	)		(2,592,505	)
KB-SOLIDUS Healthcare Investment Fund		44,874,894		330,421		44,544,473		36,992		(1,343,524	)		(1,343,524	)
G Payment Joint Stock Company		10,017,756		2,386,229		7,631,527		11,434,257		(539,039	)		(539,039	)
KB-GeneN Medical Venture Fund 1		8,582,957		47,983		8,534,974		152		(187,459	)		(187,459	)
KB-BridgePole Venture Investment Fund		13,780,672		72,157		13,708,515		22,201,768		21,915,866			21,915,866
KB-Kyobo New Mobility Power Fund		9,216,278		39,699		9,176,579		1,454		(715,346	)		(715,346	)
DA-Friend Investment Fund II		3,502,373		74,747		3,427,626		5		(78,311	)		(78,311	)

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


Cornerstone Pentastone IV Fund	3,623,263	23,118	3,600,145	188	(81,043	)	(81,043	)
JS Private Equity Fund III	9,089,882	1,321	9,088,561	1,135,495	963,447		963,447
Mirae Asset Mobility Investment Fund I	8,551,322	74,260	8,477,062	19,245	(132,636	)	(132,636	)
KB-FT 1st Green Growth Investment Fund	18,649,437	—	18,649,437	3,458	(402,000	)	(402,000	)
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)	3,111,012	—	3,111,012	542	(55,358	)	(55,358	)
POSITVE Sobujang Venture Fund #1	4,493,518	22,937	4,470,581	74,660	(27,570	)	(27,570	)
KB-NP Green ESG New Technology Venture Capital Fund	68,227,911	1,192,611	67,035,300	20,638	(2,462,738	)	(2,462,738	)
Hisstory 2022 Fintech Fund	5,611,675	40,462	5,571,213	625	(123,304	)	(123,304	)
KB Star Galaxy REIT	1,069,551,044	623,722,455	445,828,589	52,949,499	(3,762,447	)	19,520,871
KB Bio Private Equity Investment Fund IV	28,148,121	162,291	27,985,830	1,336	(2,981,967	)	(2,981,967	)
Nextrade Co., Ltd.	139,245,364	295,043	138,950,321	—	(7,149,684	)	(7,149,684	)
LAKEWOOD-AVES Fund No.1	5,064,550	4,159	5,060,391	60	(59,609	)	(59,609	)
MW-Pyco NewWave New Technology Investment Fund 4th	3,831,786	—	3,831,786	645	(68,214	)	(68,214	)
KB-SUSUNG 1st Investment Fund	19,689,771	—	19,689,771	47,067	(310,229	)	(310,229	)
Friend 55 New Technology Business Investment Fund	2,220,336	3,200	2,217,136	3,186	(32,863	)	(32,863	)
Bitgoeul Cheomdan Green 1st Co., Ltd.	877,178	6,384	870,794	—	(123,733	)	(123,733	)
DSIP-Pharos Bioenergy Fund	48,307,047	44,349	48,262,698	36,812,985	36,532,698		36,532,698
Shinhan-Eco Venture Fund 2nd	9,067,706	67,346	9,000,360	1,610	(124,641	)	(124,641	)
Leading H2O Fund 1	3,088,472	1,320	3,087,152	4,552	(22,848	)	(22,848	)
2023 JB Newtech No.2 Fund	6,945,965	1,987	6,943,978	1,841	(56,022	)	(56,022	)
U-KB Credit No.1 Private Equity	20,556,751	5,732	20,551,019	345,469	(148,980	)	(148,980	)
KB-BridgePole Venture Investment Fund #2	10,501,807	41,195	10,460,612	2,027	(39,387	)	(39,387	)
Sirius Silicon Valley I New Technology Fund	2,039,751	1,568	2,038,183	734	(61,816	)	(61,816	)

Summarized financial information of associates for which financial information is not available as at December 31, 2023 are excluded.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The fair value of marketable Investments in associates as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	Market value		Carrying amount
KB Special Purpose Acquisition Company No.21		20,800		20,894
KB Special Purpose Acquisition Company No.25		10,200		9,965
KB Special Purpose Acquisition Company No.26		10,675		9,836
KB Special Purpose Acquisition Company No.27		9,745		10,236
KB Special Purpose Acquisition Company No.28		10,475		9,645
KB Special Purpose Acquisition Company No.29		19,910		19,982
KB Special Purpose Acquisition Company No.30		20,050		19,518
KB Special Purpose Acquisition Company No.31		19,260		22,618
KB Star REIT		105,898,645		98,600,791
Korea Environment Technology Co., LTD		109,409,121		107,427,843

		215,428,881		206,151,328


(in thousands of Korean won)	2023
	Market value		Carrying amount
KB Special Purpose Acquisition Company No.21		20,000		20,529
KB Special Purpose Acquisition Company No.22		29,100		20,125
KB Special Purpose Acquisition Company No.25		10,400		9,771
KB Special Purpose Acquisition Company No.26		10,050		9,613
KB Special Purpose Acquisition Company No.27		9,305		9,959
KB Star REIT		108,455,795		120,231,339

		108,534,650		120,301,336

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

10. Loans Measured at Amortised Cost

The details of loans measured at amortised cost as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Total amount			Allowances			Book amount
Retails
Broker’s loans		2,917,855,002			(6,513,007	)		2,911,341,995
Loans to employees		23,854,419			—			23,854,419
Present value discount		—			—			—

		2,941,709,421			(6,513,007	)		2,935,196,414

Corporates
Broker’s loans		223,118,048			—			223,118,048
Securities purchased under repurchase agreements		2,091,017,404			—			2,091,017,404
Loans receivable		5,449,079,686			(185,654,487	)		5,263,425,199
Purchased loans		56,718,382			(388,518	)		56,329,864
Advances for customers		7,465,522			(7,465,522	)		—
Privately placed bonds		52,762,000			(32,598,148	)		20,163,852
Financial lease receivables		23,129,979			—			23,129,979
Net deferred origination fees and costs		(5,130,850	)		—			(5,130,850	)
Present value discount		(1,407,028	)		—			(1,407,028	)

		7,896,753,143			(226,106,675	)		7,670,646,468

		10,838,462,564			(232,619,682	)		10,605,842,882


	2023
(in thousands of Korean won)	Total amount			Allowances			Book amount
Retails
Broker’s loans		3,383,928,113			(6,005,061	)		3,377,923,052
Loans to employees		13,258,833			—			13,258,833
Present value discount		(17,803	)		—			(17,803	)

		3,397,169,143			(6,005,061	)		3,391,164,082

Corporates
Broker’s loans		274,936,498			—			274,936,498
Securities purchased under repurchase agreements		1,369,600,000			—			1,369,600,000
Loans receivable		5,107,912,302			(160,240,056	)		4,947,672,246
Purchased loans		52,226,101			(381,401	)		51,844,700
Advances for customers		7,564,877			(7,564,877	)		—
Privately placed bonds		363,000,000			(870,547	)		362,129,453
Financial lease receivables		29,544,593			—			29,544,593
Net deferred origination fees and costs		(5,759,466	)		—			(5,759,466	)
Present value discount		(2,186,170	)		—			(2,186,170	)

		7,196,838,735			(169,056,881	)		7,027,781,854

		10,594,007,878			(175,061,942	)		10,418,945,936

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The changes in book amount of loans measured at amortised cost for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	Retails									Corporates
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
				Non-impaired		Impaired							Non-impaired			Impaired
Beginning		3,391,164,084			—		6,005,059		—		6,881,077,809			256,133,543			59,627,383			—
Transfer between stages
Transfer to 12-month expected credit Losses		—			—		—		—		46,000,000			(46,000,000	)		—			—
Transfer to lifetime expected credit Losses (Non-impaired)		—			—		—		—		(633,108,115	)		633,108,115			—			—
Transfer to lifetime expected credit Losses (impaired)		—			—		—		—		(22,825,440	)		(10,000,000	)		32,825,440			—
Write-off		—			—		—		—		—			—			(2,069,426	)		—
Sales		—			—		—		—		(577,401,682	)		—			—			—
Other changes (recover, etc.)		(455,967,669	)		—		507,947		—		1,357,141,875			(64,724,350	)		(13,032,009	)		—

Ending		2,935,196,415			—		6,513,006		—		7,050,884,447			768,517,308			77,351,388			—


(in thousands of Korean won)	2023
	Retails								Corporates
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		3,008,002,541		—		5,309,305		—		5,914,779,283			30,000,000			18,356,785			—
Transfer between stages
Transfer to lifetime expected credit Losses (Non-impaired)		—		—		—		—		(236,445,424	)		236,445,424			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(55,036,957	)		—			55,036,957			—
Write-off		—		—		—		—		—			—			(10,761,359	)		—
Sales		—		—		—		—		(356,502,050	)		—			—			—
Other changes (recover, etc.)		383,161,543		—		695,754		—		1,614,282,957			(10,311,881	)		(3,005,000	)		—

Ending		3,391,164,084		—		6,005,059		—		6,881,077,809			256,133,543			59,627,383			—

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The changes in allowances for loan losses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	Retails								Corporates
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		—		—		6,005,060		—		60,396,218			84,100,465			24,560,199			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—		—		3,154,307			(3,154,307	)		—			—
Transfer to lifetime expected credit Losses (Non-impaired)		—		—		—		—		(16,884,362	)		16,884,362			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(72,220	)		(1,539,108	)		1,611,328			—
Write-off		—		—		—		—		—			—			(2,069,426	)		—
Sale		—		—		—		—		(1,738,460	)		—			—			—
Provision (Reversal)		—		—		—		—		47,203,871			(25,219,828	)		33,788,956			—
Execution of the contract		—		—		—		—		—			6,666,529			8,234,789			—
Other transfer (changes in for FX rate, etc.)		—		—		507,947		—		(9,816,240	)		(398	)		—			—

Ending		—		—		6,513,007		—		82,243,114			77,737,715			66,125,846			—


(in thousands of Korean won)	2023
	Retails								Corporates
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		—		—		5,309,306		—		45,130,193			1,756,384			16,748,421			—
Transfer between stages
Transfer to lifetime expected credit Losses (Non-impaired)		—		—		—		—		(1,548,515	)		1,548,515			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(885,835	)		—			885,835			—
Write-off		—		—		—		—		—			—			(10,761,359	)		—
Sale		—		—		—		—		(736,955	)		—			—			—
Provision (Reversal)		—		—		—		—		24,804,401			81,859,745			17,687,302			—
Other transfer (changes in for FX rate, etc.)		—		—		695,754		—		(6,367,071	)		(1,064,179	)		—			—

Ending		—		—		6,005,060		—		60,396,218			84,100,465			24,560,199			—

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Among the loans which have been written-off, the Group manages loans for which the claims against borrowers have not been lost due to reasons such as incomplete extinctive prescription pursuant to relevant laws and uncollected receivables after writing-off, as the written-off loans. As at December 31, 2024 and 2023, the balances of the written-off loans are 23,256,163 thousand and 21,186,737 thousand, respectively.

Broker’s loan

The Group provides loans for stock purchases with credit period of 180 days (can be extended for six times) for investors using margin transaction. As at December 31, 2024, interest rate of the loan is differentiated from 5.2% to 9.5% based on maturities, and overdue interest rate is 9.9%.

Also, as the Group operates loans secured by securities. At the initial transaction, in case of superior shares and common shares, the Group requires trading securities or cash as collateral, corresponding to 167% and 250% of the loan, respectively. Over 140% collateral of the loan is required. As at December 31, 2024, the interest rate of loans secured by securities is differentiated from Annual Percentage Rate (APR) 6.9% to 9.5% based on maturities, from APR 7.3% to 8.8% based on credit rating, and the loan with past due date is 9.9%.

For margin loans to customers, trading securities or cash is required to be pledged corresponding to 140% of the loan. Because of this condition, the Group pledged securities as collateral which are purchased with the margin loans. If the value of the pledged securities do not reach to 140% of the loan, the Group requires additional cash or trading securities as collateral.

Advances for Customers

Advances for customers consist of advanced payments on loss compensation and advanced payments for others.

Advanced payments on loss compensation are the monetary amount of claim for reimbursement, paid by the Group, if any losses from embezzlement and arbitrary trading are occurred.

Advanced payments for others consist of two types. The first type is the amount of recourse from paid Investor Protection Fund based on the previous Securities Exchange Act Article 69 Clause 2 or Clause 4. This recourse is driven by preferred payments to the securities company with reasonable reason for taking the preferred payments. The second type is the amount of recourse from Joint Compensation Fund based on Law relating to the Financial Investment Services and Capital Markets Act Article 323 Clause 14 and related Enforcement Decree Article 318 Clause 8. This recourse is driven by preferred payments to the securities company that occurred reasonable reasons for taking the preferred payments.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

11.	Property and Equipment

The details of property and equipment as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation		Book amount
Land		24,968,018		—			83,580,757		108,548,775
Buildings		43,177,253		(21,066,922	)		—		22,110,331
Vehicles		1,111,482		(422,830	)		—		688,652
Furniture and equipment		204,408,789		(168,536,319	)		—		35,872,470
Others		64,523,074		(48,750,085	)		—		15,772,989
Right-of-use assets		205,617,817		(124,045,980	)		—		81,571,837

		543,806,433		(362,822,136	)		83,580,757		264,565,054


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation		Book amount
Land		28,369,717		—			83,580,757		111,950,474
Buildings		47,457,596		(21,857,231	)		—		25,600,365
Vehicles		1,179,461		(441,577	)		—		737,884
Furniture and equipment		187,134,248		(152,882,410	)		—		34,251,838
Others		58,636,961		(46,798,343	)		—		11,838,618
Right-of-use assets		172,735,406		(101,973,756	)		—		70,761,650

		495,513,389		(323,953,317	)		83,580,757		255,140,829

The details of right-of-use assets as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Book amount
Buildings		197,166,055		(118,804,496	)		78,361,559
Vehicles		4,085,292		(2,526,905	)		1,558,387
Others		4,366,469		(2,714,578	)		1,651,891

		205,617,816		(124,045,979	)		81,571,837


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Book amount
Buildings		164,529,393		(97,854,971	)		66,674,422
Vehicles		4,077,952		(2,387,117	)		1,690,835
Others		4,128,061		(1,731,668	)		2,396,393

		172,735,406		(101,973,756	)		70,761,650

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The changes in property and equipment for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others 1			Ending balance
Land		111,950,474		—		—			—			(3,401,699	)		108,548,775
Buildings		25,600,365		1,884,571		—			(2,577,888	)		(2,796,717	)		22,110,331
Vehicles		737,884		—		(115,430	)		(82,494	)		148,692			688,652
Furniture and equipment		34,251,838		17,295,888		(895,755	)		(15,194,265	)		414,764			35,872,470
Others		11,838,618		10,400,418		(99,865	)		(6,371,046	)		4,864			15,772,989
Right-of-use assets		70,761,650		39,307,962		(1,174,990	)		(28,253,667	)		930,882			81,571,837

		255,140,829		68,888,839		(2,286,040	)		(52,479,360	)		(4,699,214	)		264,565,054

1	Others consist of reclassification to investment properties, foreign exchange differences and others.


	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others 1			Ending balance
Land		111,823,202		—		—			—			127,272			111,950,474
Buildings		26,736,049		—		—			(1,494,043	)		358,359			25,600,365
Vehicles		740,846		14,325		—			(226,740	)		209,453			737,884
Furniture and equipment		38,621,486		11,858,591		(8,907	)		(16,663,872	)		444,540			34,251,838
Others		12,263,755		5,086,739		(5,401	)		(5,508,935	)		2,460			11,838,618
Right-of-use assets		79,845,029		20,618,348		(1,674,321	)		(26,746,436	)		(1,280,970	)		70,761,650

		270,030,367		37,578,003		(1,688,629	)		(50,640,026	)		(138,886	)		255,140,829

1	Others consist of reclassification to investment properties, foreign exchange differences and others.

The changes in right-of-use assets for the year ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others 1			Ending balance
Buildings		66,674,422		47,126,387		(799,115	)		(25,889,842	)		(8,750,293	)		78,361,559
Vehicles		1,690,835		1,657,667		(416,583	)		(1,326,898	)		(46,634	)		1,558,387
Others		2,396,393		308,090		—			(1,036,927	)		(15,665	)		1,651,891

		70,761,650		49,092,144		(1,215,698	)		(28,253,667	)		(8,812,592	)		81,571,837

1	Others consist of foreign exchange differences and others.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others 1			Ending balance
Buildings		76,580,927		16,904,819		(1,489,415	)		(24,399,773	)		(922,136	)		66,674,422
Vehicles		2,258,588		1,289,527		(207,685	)		(1,334,079	)		(315,516	)		1,690,835
Others		1,005,514		2,424,003		—			(1,012,585	)		(20,539	)		2,396,393

		79,845,029		20,618,349		(1,697,100	)		(26,746,437	)		(1,258,191	)		70,761,650

1	Others consist of foreign exchange differences and others.

The Group applies the revaluation model in relation to the measurement after the initial recognition of the land and the date of revaluation of the land was August 5, 2022. The Group used the assessed price provided by a qualified appraiser for the revaluation of the land.

The land was measured using sales value of similar land, and the access condition, environment condition and other specific factors are considered when the value is adjusted. There is no change in the valuation technique for the year ended December 31, 2024.

Classification of land that is measured at fair value by fair value hierarchy levels as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		108,548,775		108,548,775

	2023
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		111,950,474		111,950,474

Changes in land which is classified to Level 3 for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		111,950,474			111,823,202
Reclassification from investment properties to property and equipment		(3,401,699	)		127,272

Ending balance		108,548,775			111,950,474

Book amounts of land under cost model as at December 31, 2024 and 2023, are as follows:


	2024				2023
(in thousands of Korean won)	Under revaluation model		Under cost model		Under revaluation model		Under cost model
Land		108,548,775		24,968,018		111,950,474		28,369,717

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Changes in other comprehensive income related to the revaluation for the year ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance			Other Change		Ending balance
Land		84,032,665			—		84,032,665
Income tax effects		(22,282,379	)		—		(22,282,379	)

		61,750,286			—		61,750,286


	2023
(in thousands of Korean won)	Beginning balance			Re-evaluation		Ending balance
Land		84,032,665			—		84,032,665
Income tax effects		(22,366,410	)		84,031		(22,282,379	)

		61,666,255			84,031		61,750,286

12. Investment Properties

The details of investment properties as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment			Accumulated revaluation		Book amount
Land		283,406,057		—			(332,250	)		—		283,073,807
Buildings		160,308,605		(23,929,999	)		—			—		136,378,606

		443,714,662		(23,929,999	)		(332,250	)		—		419,452,413


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment			Accumulated revaluation			Book amount
Land		431,900,110		—			(485,836	)		(332,250	)		431,082,024
Buildings		219,869,836		(28,740,203	)		(5,289,310	)		—			185,840,323

		651,769,946		(28,740,203	)		(5,775,146	)		(332,250	)		616,922,347

The changes in investment properties for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal 1			Depreciation			Impairment		Others 2		Ending balance
Land		431,082,024		—		(151,833,802	)		—			—		3,825,585		283,073,807
Buildings		185,840,323		—		(53,226,932	)		(4,406,269	)		—		8,171,484		136,378,606

		616,922,347		—		(205,060,734	)		(4,406,269	)		—		11,997,069		419,452,413

1	it is the total amount of investment properties held by subsidiaries excluded from the consolidation during the year ended December 31, 2024.

2	Others consist of foreign exchange differences and transfer from/to property and equipment.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Beginning balance		Acquisition 1		Disposal 2			Depreciation			Impairment			Others 3		Ending balance
Land		328,832,262		419,716,178		(267,612,788	)		—			(71,783,718	)		21,930,090		431,082,024
Buildings		231,587,883		149,310,809		(159,771,364	)		(9,490,947	)		(38,189,375	)		12,393,317		185,840,323

		560,420,145		569,026,987		(427,384,152	)		(9,490,947	)		(109,973,093	)		34,323,407		616,922,347

1	The amount of 290,197,489 thousand of investment properties held by subsidiaries acquired during the year ended December 31, 2023 are included.

2	The amount of 427,384,152 thousand of investment properties held by subsidiaries excluded from the consolidation during the year ended December 31, 2023 are included.

3	Others consist of foreign exchange differences and transfer from/to property and equipment.

Details of income and expenditure on investment properties for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Rental income		18,893,181			37,427,218
Expenditure on operating investment properties		(14,431,151	)		(21,101,698	)
Expenditure on non-operating investment properties		—			(1,939	)

		4,462,030			16,323,581

Details of fair value of investment properties as at December 31, 2024 and 2023, are as follows:


	2024				2023
(in thousands of Korean won)	Book amount		Fair value		Book amount		Fair value
Land		283,073,807		321,994,864		431,082,024		485,437,515
Buildings		136,378,606		150,845,041		185,840,323		200,822,830

		419,452,413		472,839,905		616,922,347		686,260,345

The fair values of investment properties as at December 31, 2024 was evaluated by an independent appraiser. The independent appraiser has appropriate qualification and experience in evaluating real estate in the location of investment properties.

The fair value of investment property was measured by using benchmark price of similar properties and discounted cash flow (DCF) method. The fair value of investment property measured by DCF method is assessed by discounting net cash flow from investment property with risk adjusted discount rate, reflecting expected growth rate of rent market, period of empty, proportion of rent, period without rent charge and other cost related to promotion for rent. The factors which are significant but non-observable inputs for fair valuation are expected growth rate of rent market, period of empty, proportion of rent, period without rent charge and risk adjusted discount rate.

The fair value of investment property measured by using sales value of similar land is calculated by analyzing and comparing the sale prices of similar land, and also the access condition, environment condition and other specific factors for the purpose of estimation for fair value are considered.

The fair values of investment properties are classified as Level 3 based upon the inputs, which are used in valuation method.

There is no significant change in the valuation technique for the year ended December 31, 2024.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Details of investment properties provided as collaterals as at December 31, 2024 and 2023 is as follows:


	2024
(in thousands of Korean won)	Secured amount		Secured party	Details
Land and buildings		95,628,080	Hanhwa Life Insurance

		38,251,232	Tongyang Life Insurance

		36,338,670	Lotte Capital

		23,907,020	Kyobo Life Insurance

		22,992,136	Kookmin Bank

		16,801,945	Shinhan Bank

		13,264,694	Hana Bank		Collateralized borrowing

		2,652,939	Bukok branch of Uiwang Nonghyup

		1,768,626	Dodram Pig Farmers Cooperative

		884,313	Jeju Pig Farm Livestock Cooperative

		1,768,626	Suncheon Nonghyup

		1,768,626	Singimpo Nonghyup


	2023
(in thousands of Korean won)	Secured amount		Secured party	Details
Land and buildings		33,074,209	Signature Bank

		96,000,000	Hanhwa Life Insurance

		38,400,000	Tongyang Life Insurance

		36,480,000	Lotte Capital

		24,000,000	Kyobo Life Insurance

		150,600,000	Kookmin Bank

		22,800,000	Shinhan Bank

		18,000,000	Hana Bank		Collateralized borrowing

		3,600,000	Bukok branch of Uiwang Nonghyup

		2,400,000	Dodram Pig Farmers Cooperative

		1,200,000	Jeju Pig Farm Livestock Cooperative

		2,400,000	Suncheon Nonghyup

		2,400,000	Singimpo Nonghyup

Investment properties are provided as collaterals for rental deposits and lease hold right, which amounts to 610,000 thousand and 610,000 thousand as at December 31, 2024 and 2023, respectively.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13. Intangible Assets

The details of intangible assets as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment			Book amount
Goodwill		85,940,206		—			—			85,940,206
Development costs		312,698,214		(209,465,882	)		—			103,232,332
Software		136,334,647		(115,218,996	)		(1,036,376	)		20,079,275
Memberships		44,946,885		(277,321	)		(7,203,010	)		37,466,554
Others		23,294,717		—			—			23,294,717

		603,214,669		(324,962,199	)		(8,239,386	)		270,013,084


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment			Book amount
Goodwill		83,778,170		—			—			83,778,170
Development costs		271,791,803		(167,392,492	)		—			104,399,311
Software		128,721,093		(102,572,751	)		—			26,148,342
Memberships		42,995,638		(240,389	)		(8,079,512	)		34,675,737
Others		28,229,291		(4,107,193	)		(827,381	)		23,294,717

		555,515,995		(274,312,825	)		(8,906,893	)		272,296,277

The changes in intangible assets for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition 1		Disposal			Amortization			Impairment 2			Reversal of Impairment 3		Others 4		Ending balance
Goodwill		83,778,170		—		—			—			—			—		2,162,036		85,940,206
Development costs		104,399,311		40,991,592		—			(42,158,571	)		—			—		—		103,232,332
Software		26,148,342		7,357,584		(24,996	)		(12,513,083	)		(1,036,376	)		—		147,804		20,079,275
Memberships		34,675,737		2,887,619		(970,900	)		(20,606	)		(128,738	)		1,019,296		4,146		37,466,554
Others		23,294,717		—		—			—			—			—		—		23,294,717

		272,296,277		51,236,795		(995,896	)		(54,692,260	)		(1,165,114	)		1,019,296		2,313,986		270,013,084

1	Advance payments and others transferred from other accounts are included.

2	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2024.

3	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2024.

4	Others consist of foreign exchange differences and others.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Beginning balance		Acquisition 1		Disposal			Amortization			Impairment 2			Reversal of Impairment 3		Others 4			Ending balance
Goodwill		83,550,540		—		—			—			—			—		227,630			83,778,170
Development costs		47,347,359		84,922,193		—			(27,870,241	)		—			—		—			104,399,311
Software		29,991,689		8,274,650		—			(12,097,652	)		—			—		(20,345	)		26,148,342
Memberships		27,684,301		5,962,498		(586,929	)		(36,866	)		(74,692	)		1,726,399		1,026			34,675,737
Others		23,294,717		—		—			—			—			—		—			23,294,717

		211,868,606		99,159,341		(586,929	)		(40,004,759	)		(74,692	)		1,726,399		208,311			272,296,277

1	Advance payments and others transferred from other accounts are included.

2	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2023.

3	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2023.

4	Others consist of foreign exchange differences and others.

14. Other Financial Assets

The details of other financial assets as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Other receivables		2,061,323,408			3,382,250,943
Accrued income		308,011,193			252,660,082
Accrued interest on bonds		295,740,833			268,457,904
Guarantee deposits		62,846,557			63,224,390
Other		137,520,223			157,061,158
Provision for other financial assets		(51,685,257	)		(50,713,294	)

		2,813,756,957			4,072,941,183

15. Other Assets

The details of other assets as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Other receivables		—		1,117
Advance payments		41,944,463		43,645,395
Prepaid expenses		135,338,953		99,249,390
Prepaid value-added taxes		368,207		539,337
Others		13,406,609		13,040,076

		191,058,232		156,475,315

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

16. Deposit Liabilities

The details of deposit liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Customers’ deposits
Customers’ deposits for brokerage		5,773,748,168		5,519,397,856
Customers’ deposits for exchange-traded derivatives trading		438,187,733		535,910,810
Customers’ deposits for subscription		—		—
Customers’ deposits for savings		6,997,054		5,880,012
Customers’ deposits for repo		61,541		61,587
Customers’ deposits for the investor of collective investment securities		456,285,969		249,819,423
Others		7,780		48,652

		6,675,288,245		6,311,118,340

Guarantee deposits
Guarantee deposits in foreign currency		680,406,569		395,717,894
Guarantee deposits in Korean won		370,164,013		415,758,876

		1,050,570,582		811,476,770

		7,725,858,827		7,122,595,110

17. Borrowings

The details of borrowings as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Call money		820,000,000			1,240,000,000
Borrowings:
Borrowing from banks		346,270,177			653,687,366
Borrowing from KSFC		1,264,581,631			1,262,819,934
Asset-backed short-term bonds		2,767,930,379			2,345,088,679
CP borrowings		5,000,000,000			3,380,000,000
Others		247,783,272			578,649,778
Securities sold under repurchase agreements		9,419,893,685			9,036,097,623
Short-term note issued		10,130,450,816			9,587,511,022
Debentures:
Debentures		3,463,100,000			2,560,408,000
Less: discount on debentures issued		(5,408,576	)		(4,106,067	)

		33,454,601,384			30,640,156,335

The details of call money as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Interest rate (%)		2024		2023
Samsung Asset Management Co., Ltd. and others		3.28~3.43		820,000,000		1,240,000,000

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The details of borrowings as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)		Interest rate (%)		2024		2023
Borrowings from banks	Kookmin Bank and other		4.00~7.33		346,270,177		653,687,366
Borrowings from KSFC	KSFC		3.40~3.96		1,264,581,631		1,262,819,934
Asset-backed short-term bonds	SK Securities co., Ltd., and other		3.37~4.80		2,767,930,379		2,345,088,679
CP borrowings	Hyundai Motor Securities Co., Ltd.and others		3.41~3.87		5,000,000,000		3,380,000,000
Others	NH Nonghyup Capital co., Ltd. and others		3.30~8.83		247,783,272		578,649,778

					9,626,565,459		8,220,245,757

The details of securities sold under repurchase agreements as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Interest rate (%)		2024		2023
Customers		0.00~5.00		5,913,024,606		5,578,817,182
Financial institution		2.17~3.37		3,506,869,079		3,457,280,441

				9,419,893,685		9,036,097,623

The details of short-term note issued as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Interest rate (%)		2024		2023
Individual		2.65~5.20		6,149,462,845		6,560,366,893
Corporate		2.60~5.20		3,980,987,971		3,027,144,129

				10,130,450,816		9,587,511,022

The details of debentures as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Date issued		Maturity		Interest rate (%)	2024		2023
The 36-2nd unsecured public debenture		2019.04.18		2024.04.18	2.09		—		250,000,000
The 37-2nd unsecured public debenture		2019.06.14		2024.06.14	1.80		—		150,000,000
The 39-1st unsecured public debenture		2021.03.04		2024.03.04	1.31		—		110,000,000
The 39-2nd unsecured public debenture		2021.03.04		2026.03.04	1.70		120,000,000		120,000,000
The 40-1st unsecured public debenture		2021.04.23		2024.04.23	1.53		—		300,000,000
The 40-2nd unsecured public debenture		2021.04.23		2026.04.23	1.94		200,000,000		200,000,000
The 41-1st unsecured public debenture		2023.02.07		2025.02.07	3.88		330,000,000		330,000,000
The 41-2nd unsecured public debenture		2023.02.07		2026.02.06	3.85		210,000,000		210,000,000
The 42-1st unsecured public debenture		2023.06.26		2025.06.26	4.39		240,000,000		240,000,000
The 42-2nd unsecured public debenture		2023.06.26		2026.06.26	4.43		220,000,000		220,000,000
The 43-1st unsecured public debenture		2024.01.31		2025.07.31	3.94		160,000,000		—

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


The 43-2nd unsecured public debenture	2024.01.31	2026.01.30	3.94	230,000,000		—
The 43-3rd unsecured public debenture	2024.01.31	2027.01.29	3.98	410,000,000		—
The 44-1st unsecured public debenture	2024.04.23	2025.10.23	3.79	100,000,000		—
The 44-2nd unsecured public debenture	2024.04.23	2026.04.23	3.82	100,000,000		—
The 44-3rd unsecured public debenture	2024.04.23	2027.04.23	3.86	200,000,000		—
The 45-1st unsecured public debenture	2024.09.03	2026.09.03	3.56	220,000,000		—
The 45-2nd unsecured public debenture	2024.09.03	2027.09.03	3.56	280,000,000		—
The 1st unsecured privately placed bond 1	2022.06.14	2024.12.14	4.50	—		2,900,000
The 2nd unsecured privately placed bond 1	2024.12.12	2025.12.12	7.10	2,100,000		—
The 1st unsecured privately placed bond 2	2023.09.15	2026.06.23	4.50	—		14,900,000
The 1st privately placed bond in foreign currency 3	2021.10.25	2024.10.25	2.35	—		25,788,000
The 21-1 public debenture in foreign currency 4	2021.11.01	2026.11.01	2.13	441,000,000		386,820,000

				3,463,100,000		2,560,408,000

Less: Discount on debentures issued				(5,408,576	)	(4,106,067	)

				3,457,691,424		2,556,301,933

1	This privately placed bond was issued by subsidiary named Able Seun Co., Ltd.

2	This privately placed bond was issued by subsidiary named GDIC 2 Co.,Ltd.

3	This privately placed bond was issued by subsidiary named Newstar Sina Co., Ltd.

4	The issuance price of this public debenture is US$ 300,000,000.

The changes in borrowings for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		30,640,156,335			23,523,195,868
Increase in call money		(420,000,000	)		410,000,000
Increase(decrease) in borrowings from banks		(307,417,189	)		181,910,356
Increase in borrowings from KSFC		1,761,697			18,597,692
Increase(decrease) in asset-backed short-term bond		422,841,700			(919,158,350	)
Increase in CP borrowings		1,620,000,000			1,460,000,000
Increase(decrease) in other borrowings		(330,866,506	)		142,626,075
Increase(decrease) in securities sold under repurchase agreements		383,796,062			2,804,707,214
Increase in short-term note issued		542,939,794			2,338,081,821
Increase(decrease) in debentures		901,389,491			680,195,659

Ending balance		33,454,601,384			30,640,156,335

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

18. Post-employment Benefits

18.1 Defined Benefit Plans

The details of defined benefit liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Present value of defined benefit obligations		79,636,084			75,835,223
Fair value of plan assets		(10,971,828	)		(13,270,798	)

Net defined benefit liabilities		68,664,256			62,564,425

The changes in the defined benefit obligation for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		75,835,223			67,937,239
Current service cost		22,515,097			19,841,212
Interest cost		2,436,755			2,511,195
Remeasurements
Actuarial gains and losses arising from changes in demographic assumptions		34,904			—
Actuarial gains and losses arising from changes in financial assumptions		4,697,042			5,658,388
Actuarial gains and losses arising from experience adjustment		1,480,306			1,113,813
Payments from plans		(1,291,060	)		(521,708	)
Payments from the Group		(21,543,795	)		(19,792,154	)
Transfer to related companies		(2,777,338	)		(912,762	)
Settlement		(1,751,050	)		—

Ending balance		79,636,084			75,835,223

The changes in the fair value of plan assets for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(13,270,798	)		(12,430,101	)
Interest income		(549,651	)		(610,329	)
Remeasurements:
Return on plan assets (excluding amounts included in interest income)		180,223			35,161
Contributions by employers		(1,400,000	)		(1,700,000	)
Payments from plans:
Benefits paid		1,291,060			521,709
Transfer to related companies		2,777,338			912,762

Ending balance		(10,971,828	)		(13,270,798	)

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Plan assets are composed of the detail assets that have no quoted price in active market. The details of plan assets as at December 31, 2024 and 2023, are as follows:


	2024				2023
(in thousands of Korean won)	Fair value		Composition(%)		Fair value		Composition(%)
Cash and deposits		10,122,822		92.26		8,202,579		61.81
Investment funds		849,006		7.74		5,068,219		38.19

		10,971,828		100.00		13,270,798		100.00

Key actuarial assumptions used as at December 31, 2024 and 2023, are as follows:


	2024	2023
Discount rate	DB(including special retirement by salaries peak plan) 3.6% Compensation promotion DC 3.2 %	DB(including special retirement by salaries peak plan) 4.3% Compensation promotion DC 3.7 %

Expected salary growth rate	DB : executives 4.8% DC: Promotion + Base up 2.7% Special retirement by salaries peak plan: 4.8%	DB : executives 4.9% DC: Promotion + Base up 2.6% Special retirement by salaries peak plan: 4.9%

The sensitivity analysis for significant actuarial assumptions used to determine the present value of the defined benefit obligation as at December 31, 2024, are as follows:


	Effect on the present value of defined benefit obligation
(in thousands of Korean won)	Changes in assumption			Increase			Decrease
Discount rate		0.50	%		(1,914,760	)		2,030,855
Expected salary growth rate1		0.50	%		1,860,858			(1,763,912	)
Retirement rate		0.50	%		(1,619,401	)		1,707,303

1	The sensitivity analysis for the expected salary growth rate is limited to special retirement by salaries peak plan and DB.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. The sensitivity of the present value of the defined benefit obligation to changes in actuarial assumptions is calculated using the projected unit credit method, the same method applied when calculating the defined benefit obligations.

The methods and assumptions used in preparing the sensitivity analyses did not change compared to the previous period.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The effect of defined benefit plan on future cash inflows: Expected maturity analysis of undiscounted pension benefits as at December 31, 2024, is as follows:


(in thousands of Korean won)	Less than 1 year		Between 1 and 2 years		Between 2 and 5 years		Between 5 and 10 years		Over 10 years		Total
Pension benefits1		5,578,505		8,178,609		28,542,656		31,525,862		67,990,816		141,816,448

1	Fixed pension benefits of 14.7 billion under promotion compensation defined contribution plan are excluded.

The weighted average duration of the defined benefit obligations is 5.84 years.

Expected contribution to post-employment benefit plans for the year ending December 31, 2025 10,000 thousand.

18.2 Defined Contribution Plans

The Group recognized the expenses of 4,775,485 thousand and 7,211,349 thousand for defined contribution plans for the years ended December 31, 2024 and 2023, respectively.

19. Provisions

The details of provisions as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Provisions for non-financial guarantees		4,363,358		6,414,834
Provisions for asset retirement obligation 1		9,236,979		9,058,920
Provisions for lawsuits		75,204,159		111,425,114
Provisions for others		48,755,377		86,089,255

		137,559,873		212,988,123

1	The Group recognized the provision for asset retirement obligation in connection with the leased asset for the expenditures expected to recover the asset.

The changes in provisions for non-financial guarantees for the years ended December 31, 2024 and 2023 are as follows,


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses
				Non-impaired			Impaired
Beginning		6,218,110			196,724			—
Transfer between stages
Transfer to lifetime expected credit Losses		(274,031	)		274,031			—
Provision for losses (reversal of provision)		(1,771,950	)		(279,526	)		—
Other transfer(foreign exchange and other)		—			—			—

Ending		4,172,129			191,229			—

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses
			Non-impaired			Impaired
Beginning		1,223,748		232,358			—
Provision for losses (reversal of provision)		4,994,143		(35,634	)		—
Other transfer(foreign exchange and other)		219		—			—

Ending		6,218,110		196,724			—

The changes in other provisions for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Provisions for asset retirement obligation			Provisions for lawsuits			Provisions for others			Total
Beginning		9,058,920			111,425,114			86,089,255			206,573,289
Contribution 1		215,297			12,982,498			25,417,147			38,614,942
Reversal		—			(34,099,212	)		(4,600,000	)		(38,699,212	)
Use		(87,527	)		(15,104,241	)		(58,151,025	)		(73,342,793	)
Amortization of discounts		50,289			—			—			50,289

Ending		9,236,979			75,204,159			48,755,377			133,196,515


	2023
(in thousands of Korean won)	Provisions for asset retirement obligation			Provisions for lawsuits			Provisions for others			Total
Beginning		8,802,261			51,221,194			89,485,845			149,509,300
Contribution 1		259,114			57,194,551			8,518,938			65,972,603
Reversal		(77,219	)		—			(8,100,000	)		(8,177,219	)
Use		—			(150,631	)		(655,528	)		(806,159	)
Amortization of discounts		74,764			—			—			74,764
Other 1		—			3,160,000			(3,160,000	)		—

Ending		9,058,920			111,425,114			86,089,255			206,573,289

1	As a lawsuit was filed during the year ended December 31, 2023, the estimated loss on the sale of funds related to Lime Asset Management was replaced to provisions for lawsuits.

20. Other Financial Liabilities

The details of other financial liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Other payables		1,803,355,494		3,486,888,893
Accrued expenses		173,026,055		135,165,654
Financial guarantee liabilities		4,888,161		11,929,888
Provisions for financial guarantee contracts		—		142,308
Leasehold deposits received		15,879,109		16,255,758
Non-controlling liabilities		53,722,980		85,133,560
Lease liabilities		110,565,255		108,095,746
Others		49,015,525		50,796,893

		2,210,452,579		3,894,408,700

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The changes in liabilities of the provisions for financial guarantee contracts for the years ended December 31, 2024 and 2023 are as follows:


(in thousands of Korean won)	2024
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses
			Non-impaired		Impaired
Beginning		142,308		—		—
Provision		14,759,010		—		—
Other transfer(foreign exchange and other)		(14,901,318)		—		—
Ending		—		—		—


(in thousands of Korean won)	2023
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses
			Non-impaired		Impaired
Beginning		—		—		—
Provision		142,308		—		—

Ending		142,308		—		—

21. Other Liabilities

The details of other liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Accounts payables		7,162,892		16,495,445
Accrued expenses		288,909,701		240,392,084
Accrued dividends		1,366,645		6,983,904
Advances from customers		7,819,439		8,154,878
Unearned revenue		26,427,136		36,589,758
Taxes withheld		58,844,142		48,004,744
Other long-term employee benefits		7,244,299		7,075,329
Others		12,413,869		8,196,090

		410,188,123		371,892,232

22. Share Capital

The details of share capital as at December 31, 2024 and 2023, are as follows:

(in thousands of Korean won except per share)

Authorized shares

Outstanding shares

Par value

per share

2024

2023

Ordinary share

1,000,000,000
shares

298,620,424

5,000
won

1,493,102,120

There are no changes in ordinary shares for the years ended December 31, 2024 and 2023.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

23. Hybrid Securities

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


(in thousands of Korean won)	Issuance date		Maturity		Interest rate (%)		2024		2023
Bond-type Hybrid Securities No.11		March 31, 2022		Permanent		4.30		208,010,652		208,010,652
Bond-type Hybrid Securities No.2		May 30, 2022		Permanent		4.80		48,170,880		48,170,880
Bond-type Hybrid Securities No.32		September 30, 2022		Permanent		5.50		249,948,780		249,948,780
Bond-type Hybrid Securities No.43		May 8, 2023		Permanent		5.35		119,963,080		119,963,080
Bond-type Hybrid Securities No.5		March 21, 2024		Permanent		5.22		129,999,380		—

								756,092,772		626,093,392

1	As at December 31, 2024 and 2023, among the hybrid securities issued by the Group, the balance held by KB Financial Group, a related party of the Group, is 200,000 million.

2	As at December 31, 2024 and 2023, among the hybrid securities issued by the Group, the balance held by KB Financial Group, a related party of the Group, is 230,000 million.

3	As at December 31, 2024 and 2023, among the hybrid securities issued by the Group, the balance held by KB Financial Group, a related party of the Group, is 100,000 million.

The Group may extend the maturity under the same conditions at the time of maturity of the above hybrid securities, and interest payment may be deferred except in cases where a cash dividend or stock dividend has been resolved for common stock. Above hybrid securities are early redeemable by the Group after 5 years from the issuance date and each interest payment date thereafter.

24. Other Paid-in Capital

The details of other paid-in capital as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Share premium 1		1,142,353,750			1,142,353,750
Gains and losses on sale of treasury share		(45,331,811	)		(45,331,811	)
Other equity 2		382,237,961			381,666,039

		1,479,259,900			1,478,687,978

1	Share premium was previously paid from stock issuance and new stock issuance due to merger and can only be used for capitalization and deficit recovery.

2	Other equity arose from the paid-in capital increase of preferred share and gains on merger.

The changes in other paid-in capital for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Beginning		1,478,687,978		1,478,687,978
Changes in scope of consolidation		571,922		—

Ending		1,479,259,900		1,478,687,978

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

25. Retained Earnings

The details of retained earnings as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Legal reserve
Earned surplus reserve 1		173,656,298		158,656,298
Reserve for liability to compensate for damages 2		500,000		500,000
Voluntary reserves		1,889,816,387		1,678,600,357
Regulatory reserve for credit losses 3		47,300,393		100,315,429
Unappropriated retained earnings		598,544,544		366,230,628

		2,709,817,622		2,304,302,712

The Commercial Act of the Republic of Korea requires the Group to appropriate, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends, but may be transferred to share capital or used to reduce accumulated deficit.

The Parent Company provides reserve for loss on electronic financial transactions to make reparation for the damage in process of the electronic transfers or operations. Also, the Parent Company provides reserve to compensate for inflicted damage on a credit information subject when violating the Credit Information Use and Protection Act.

3	The Group accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Financial Supervisory Service.

Changes in retained earnings for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		2,304,302,712			2,038,449,777
Profit for the year		591,153,190			395,015,483
Dividends		(150,000,000	)		(100,000,000	)
Dividends of hybrid securities		(37,064,078	)		(29,162,548	)
Replacement due to disposal of equity investments at FVOCI		1,425,798			—

Ending balance		2,709,817,622			2,304,302,712

The amount of dividends and dividends per share for the years ended December 31, 2024 and 2023, are as follows:

2024

(in Korean won and number of shares)

Type of
share

Number of
shares
outstanding

Number of
treasury

Number of
dividend
shares

Dividend
per share

Total dividend

(In thousands of
Korean won)

Annual dividend

Ordinary
share

298,620,424
shares

—

298,620,424

502

150,000,000

2023

(in Korean won and number of shares)

Type of
share

Number of
shares
outstanding

Number of
treasury

Number of
dividend
shares

Dividend
per share

Total dividend

(In thousands of
Korean won)

Annual dividend

Ordinary
share

298,620,424
shares

—

298,620,424

334

100,000,000

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Payout and dividend yield ratios as at December 31, 2024 and 2023, are as follows:


	2024			2023
	Ordinary share			Ordinary share
	Annual dividend			Annual dividend
Number of shares outstanding		298,620,424			298,620,424
Number of treasury shares		—			—
Number of dividend shares		298,620,424			298,620,424
Par value per share (in Korean won)		5,000			5,000
Payout ratio		18.75	%		10.04	%
Scheduled dividends (in thousands of Korean won)		280,000,000			150,000,000
Dividends per share (in Korean won)		937			502

The Group accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Regulation on Supervision of Financial Investment.

Regulatory reserve for credit losses, a type of voluntary reserve for retained earnings, reverses the exceeding amount if the beginning balance of the reserve exceeds the ending balance at the closing date. Regulatory reserve for credit losses is generally recognized after unappropriated deficit is disposed.

The details of the regulatory reserve for credit losses (reversal of reserve) to be appropriated as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Beginning		47,300,393		100,315,429
Amounts to be reserved (reversed)		19,104,292		(53,015,036	)

Ending		66,404,685		47,300,393

The adjusted profit of the year after reflection of reversal (provision) of reserve for credit losses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Profit for the year before reserve for credit loss		590,360,820			388,027,837
Amounts to be reversed (reserved)		(19,104,292	)		53,015,036

Adjusted profit after reversed (provision) of reserve for credit losses1		571,256,528			441,042,873

Reserve for credit loss is announced by Article 3 Clause 8 of the Regulation on Financial Investment Business. Adjusted profit after reserve for credit losses is not based on Korean IFRS and is calculated on the assumption that provision or reversal of reserve for credit losses before tax is adjusted to the profit.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

26. Other Components of Equity

The details of other components of equity as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Changes in the fair value of financial assets at FVOCI		295,100,380			289,671,988
Share of other comprehensive income of associates		(52,401	)		(6,586,082	)
Revaluation surplus		62,144,795			62,144,795
Remeasurements of net defined benefit liabilities		(47,480,752	)		(42,790,562	)
Exchange differences on translation of foreign operations		112,942,558			48,609,018
Hedge of net investments in foreign operations		(38,438,855	)		(16,769,049	)
Gain or loss on financial liabilities designated at FVTPL due to the change of credit risk		(17,297,087	)		(11,782,162	)

		366,918,638			322,497,946

The changes in gain or loss on valuation of financial assets at FVOCI for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		289,671,988			233,760,812
Gain (loss) on valuation		13,304,973			61,622,064
Tax effect of gain (loss) on valuation 1		(3,668,103	)		(15,919,147	)
Transfer to gain due to disposal or impairment		(5,718,041	)		13,869,917
Tax effect of transfer 1		1,509,563			(3,661,658	)

Ending balance		295,100,380			289,671,988

1	Including income tax effect (Note 35)

The changes in the Group’s share of other comprehensive income of associates for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(6,586,082	)		(2,571,874	)
Changes of other comprehensive income of associates		8,909,673			(5,435,482	)
Tax effect 1		(2,375,992	)		1,421,274

Ending balance		(52,401	)		(6,586,082	)

1	Including income tax effect (Note 35)

The changes in gain on revaluation of property and equipment for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Beginning balance		62,144,795		62,060,360
Tax effect related to net gain on revaluation1		—		84,435

Ending balance		62,144,795		62,144,795

1	Including income tax effect (Note 35)

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The changes in remeasurements of the net defined benefit liability for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(42,790,562	)		(37,781,761	)
Changes due to valuation		(6,392,474	)		(6,807,362	)
Tax effect 1		1,702,285			1,798,561

Ending balance		(47,480,751	)		(42,790,562	)

1	Including income tax effect (Note 35)

The changes in exchange differences on translation of foreign operations for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		48,609,018			45,820,903
Exchange differences on foreign operations translation		63,911,262			2,232,438
Tax effect 1		2,485,191			(589,364	)
Non-controlling interest		(2,062,912	)		1,145,041

Ending balance		112,942,559			48,609,018

1	Including income tax effect (Note 35)

The changes in gain or loss on valuation of hedge of net investments in foreign operations for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(16,769,049	)		(19,066,669	)
Gain (loss) on net investment in a foreign operation hedge		(29,442,671	)		1,575,766
Re-classification to net income due to the end of net investments in foreign operations		—			1,546,000
Tax effect 1		7,772,865			(824,146	)

Ending balance		(38,438,855	)		(16,769,049	)

1	Including income tax effect (Note 35)

The change in gain or loss on financial liabilities designated at FVTPL due to the change of credit risk for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(11,782,162	)		41,080,867
Changes		(7,493,104	)		(71,900,708	)
Tax effect 1		1,978,179			19,037,679

Ending balance		(17,297,087	)		(11,782,162	)

1	Including income tax effect (Note 35)

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

27. Fee and Commission Income and Expense

The details of fee and commission income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Brokerage commissions		550,643,935		528,344,748
Underwriting commissions		176,339,844		134,584,680
Brokerage commissions on collective investment securities		23,565,918		19,252,925
Management fee on collective investment securities		5,304		52,488
Management fee on asset management		38,160,750		21,931,822
Commissions on merger and acquisition		89,101,232		90,533,155
Trust fees and commissions		17,866,581		18,564,028
Other commissions		100,443,111		133,202,834

		996,126,675		946,466,680

The details of fee and commission expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Trading commission		53,916,826		57,002,737
Advisory fees		3,047,910		1,038,490
Investment management delegation fees		1,867,849		2,645,846
Commission fees on group brand		21,032,741		26,155,388
Contributions to external institutions		9,056,725		8,023,014
Others		135,324,979		144,475,915

		224,247,030		239,341,390

28. Gain or Loss on Valuation and Disposal of Financial Instruments

The details of gain or loss on valuation and disposal of financial instruments for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial instruments at FVTPL		1,859,276,411		1,572,167,286		287,109,125
Financial instruments designated at FVTPL		324,748,471		640,871,724		(316,123,253	)
Derivative financial instruments		4,539,490,246		4,382,826,145		156,664,101
Financial assets at FVOCI 1		13,207,427		717,576		12,489,851

		6,736,722,555		6,596,582,731		140,139,824

1	Gain or loss on valuation of financial assets at FVOCI is excluded.


	2023
(in thousands of Korean won)	Gain		Loss		Net
Financial instruments at FVTPL		1,960,110,095		1,220,329,725		739,780,370
Financial instruments designated at FVTPL		727,598,407		1,057,169,764		(329,571,357	)
Derivative financial instruments		5,030,853,889		5,207,801,032		(176,947,143	)
Financial assets at FVOCI 1		3,240,874		3,579,803		(338,929	)

		7,721,803,265		7,488,880,324		232,922,941

1	Gain or loss on valuation of financial assets at FVOCI is excluded.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The details of gain or loss on valuation and disposal of financial instruments at FVTPL for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial assets at FVTPL		1,502,637,546		1,214,255,744		288,381,802
Financial liabilities at FVTPL		356,638,865		357,911,542		(1,272,677	)

		1,859,276,411		1,572,167,286		287,109,125


	2023
(in thousands of Korean won)	Gain		Loss		Net
Financial assets at FVTPL		1,768,973,033		713,815,890		1,055,157,143
Financial liabilities at FVTPL		191,137,062		506,513,835		(315,376,773	)

		1,960,110,095		1,220,329,725		739,780,370

The details of gain or loss on valuation and disposal of financial instruments designated at FVTPL for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold		266,262,027		526,918,763		(260,656,736	)
Other OTC derivative-combined contract sold		39,681,189		77,671,319		(37,990,130	)
Exchange traded notes sold		18,805,255		36,281,642		(17,476,387	)

		324,748,471		640,871,724		(316,123,253	)


	2023
(in thousands of Korean won)	Gain		Loss		Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold		567,910,956		879,330,365		(311,419,409	)
Other OTC derivative-combined contract sold		129,915,134		154,821,326		(24,906,192	)
Exchange traded notes sold		29,772,317		23,018,073		6,754,244

		727,598,407		1,057,169,764		(329,571,357	)

The details of gain or loss on valuation and disposal of derivative financial instruments for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Interest rate		1,255,884,102		1,355,656,950		(99,772,848	)
Currency		752,675,408		697,460,916		55,214,492
Stock		2,347,318,616		2,068,586,278		278,732,338
Credit		46,411,148		42,064,301		4,346,847
Commodity		63,666,021		57,086,321		6,579,700
Others		73,534,951		161,971,379		(88,436,428	)

		4,539,490,246		4,382,826,145		156,664,101

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Gain		Loss		Net
Interest rate		2,136,570,921		2,158,941,303		(22,370,382	)
Currency		701,517,262		726,543,492		(25,026,230	)
Stock		1,952,842,360		2,095,561,409		(142,719,049	)
Credit		32,631,396		35,689,309		(3,057,913	)
Commodity		30,829,129		42,149,844		(11,320,715	)
Others		176,462,821		148,915,675		27,547,146

		5,030,853,889		5,207,801,032		(176,947,143	)

The details of gain or loss on valuation and disposal of financial assets at FVOCI for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Debt instruments		13,207,427		717,576		12,489,851
		13,207,427		717,576		12,489,851


	2023
(in thousands of Korean won)	Gain		Loss		Net
Debt instruments		3,240,875		3,579,803		(338,928	)

29. Interest Income and Interest Expense

The details of interest income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Interest on financial assets at FVTPL
Interest on debt instruments at FVTPL		681,520,108		628,600,472
Interest on loans at FVTPL		14,455,538		—
Interest on commercial papers		149,585,454		182,112,270

		845,561,100		810,712,742

Interest on financial assets at FVOCI and financial assets measured at amortised cost
Interest on loans measured at amortised cost		22,463,982		11,026,006
Interest on debt instruments at FVOCI		199,362,668		170,895,226
Interest on broker’s loans		259,639,549		266,845,644
Interest on loans		312,885,597		343,040,031
Interest on deposits with KSFC		32,054,407		22,932,437
Interest on certificates of deposit		3,234,932		9,375,893
Interest on deposits with financial institution		129,946		356,594
Interest on bonds purchased under resale agreements		53,913,386		42,484,716
Gains on transactions of certificates of deposits		1,922,735		69,266
Interest on deposits		37,066,255		50,794,814
Interest on other receivables		769,006		764,747
Others 1		17,480,439		34,286,947

		940,922,902		952,872,321

		1,786,484,002		1,763,585,063

1	Interest on lease receivables of 779 million and 935 million for the year ended December 31, 2024 and 2023, respectively, are included.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The details of interest expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Interest on borrowings		106,241,872		146,014,978
Fees for the proceeds from the sale of stocks loaned		441,330		650,899
Interest on customers’ deposits		57,338,824		54,673,467
Interest on bonds sold under repurchase agreements		305,570,078		309,464,045
Losses on transactions of certificates of deposit		2,243		—
Interest on debentures		112,488,174		62,664,169
Interest on short-term note issued		486,374,722		429,887,015
Interest on asset-backed short-term bonds		71,317,993		131,221,020
Others 1		39,415,959		14,218,657

		1,179,191,195		1,148,794,250

1	Interest on lease liabilities of 4,292 million and 4,881 million for the year ended December 31, 2024 and 2023, respectively, are included.

30. Gain or Loss on Valuation and Disposal of Financial Assets measured at Amortised Costs

The detail of gain or loss on valuation and disposal of financial assets measured at amortised cost for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Gain(loss) on valuation of financial assets measured at amortised cost
Reversal(provision) of allowance for credit losses of loans		(52,630,200	)		(123,584,912	)
Reversal(provision) of allowance for credit losses of deposits		(448,028	)		354,995
Reversal(provision) of allowance for credit losses of other financial assets		(971,963	)		(15,162,352	)
Gain(loss) on disposal of financial assets measured at amortised cost
Gain(loss) on disposal of loans measured at amortised cost		1,670,968			(4,382,553	)

		(52,379,223	)		(142,774,822	)

31. Gain or Loss on Foreign Currency Transactions

The details of gain on foreign currency transactions for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Gain on foreign currency transactions		596,499,597		827,979,039
Gain on foreign exchange translation		406,750,477		102,004,206

		1,003,250,074		929,983,245

The details of loss on foreign currency transactions for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Loss on foreign currency transactions		586,288,760		788,318,378
Loss on foreign exchange translation		268,970,626		85,998,974

		855,259,386		874,317,352

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32. Other Operating Income and Other Operating Expenses

The details of other operating income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Dividend income		86,535,185		63,770,979
Distribution income		97,789,107		86,367,283
Reversal of provision for credit loss		4,014,930		817,283
Operating lease income		16,640,506		35,488,112
Others		11,256,044		27,872,532

		216,235,772		214,316,189

The details of other operating expenses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Provision for credit loss		16,722,464		5,918,100
Others		53,079,228		92,413,704

		69,801,692		98,331,804

33. Selling and Administrative Expenses

(a)	The details of selling and administrative expenses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Labor Costs
Salaries		458,287,335		448,871,610
Post-employment benefits		27,426,636		28,953,427
Retirement bonus		15,802,956		1,280,577
Other long-term employee benefits		837,170		1,313,191
Employee benefits		102,637,110		90,995,958

		604,991,207		571,414,763

Other selling and administrative expenses
Employee benefits		11,576,466		11,347,871
Sales promotion expenses		1,560,973		864,713
Computer system operation expenses		71,664,539		63,341,793
Management expenses for rent		20,352,347		20,658,152
Commissions		31,943,754		26,206,754
Research and development		377,327		281,008
Advertising expenses		30,550,556		29,048,118
Depreciation		52,479,360		50,640,026
Training expenses		2,553,712		2,622,960
Amortization expenses of intangible assets		54,692,261		40,004,759
Taxes and dues		45,034,513		37,389,799
Consignment fees		5,139,077		5,014,111
Others		47,655,252		44,725,549

		375,580,137		332,145,613

		980,571,344		903,560,376

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(b) Stock Grant Agreement

The executives of the Group have stock grant agreement with KB Financial Group Inc, and the Group settles the expense arising from the agreement with KB Financial Group Inc. The Group recognizes the expense in profit or loss as selling and administrative expenses.

The details of the share grants linked to long-term performance as at December 31, 2024, are as follows:


(In number of shares)	Grant date	Granted shares		Payable shares1		Vesting conditions
Series 1-1	2010-1-1		1,231		160	Service, vesting conditions : market 40%, non-market 60%
Series 1-8	2011-1-1		1,289		219	Service, vesting conditions : market 40%, non-market 60%
Series 1-10	2012-1-1		1,976		384	Service, vesting conditions : market 40%, non-market 60%
Series 1-11	2012-6-18		708		142	Service, vesting conditions : market 40%, non-market 60%
Series 1-13	2013-1-1		3,340		749	Service, vesting conditions : market 40%, non-market 60%
Series 1-19	2015-2-24		1,812		584	Service, vesting conditions : market 30%, non-market 70%
Series 1-21	2016-1-1		5,091		1 ,024	Service, vesting conditions : market 30%, non-market 70%
Series 1-22	2016-12-30		34,070		8,834	Service, vesting conditions : market 20%, non-market 80%
Series 1-24	2017-2-24		1,698		1,516	Service, vesting conditions : market 20%, non-market 80%
Series 1-26	2017-9-4		1,551		1,028	Service, vesting conditions : market 20%, non-market 80%
Series 1-28	2018-1-1		6,739		2,608	Service, vesting conditions : market 20%, non-market 80%
Series 1-30	2019-1-1		47,182		26,064	Service, vesting conditions : market 20%, non-market 80%
Series 1-30	2019-1-1		2,799		1,588	Service, vesting conditions : market 0%, non-market 100%
Series 1-30	2019-1-1		28,706		10,995	Service, vesting conditions : market 20%, non-market 80%
Series 1-31	2019-2-24		809		637	Service, vesting conditions : market 20%, non-market 80%
Series 1-32	2019-3-4		1,888		1,021	Service, vesting conditions : market 20%, non-market 80%
Series 1-33	2019-6-1		3,994		1,111	Service, vesting conditions : market 20%, non-market 80%
Series 1-34	2019-9-1		2,927		340	Service, vesting conditions : market 20%, non-market 80%
Series 1-35	2019-9-4		358		207	Service, vesting conditions : market 20%, non-market 80%
Series 1-36	2019-5-27		1,167		192	Service, vesting conditions : market 20%, non-market 80%
Series 1-37	2020-1-1		48,962		11,595	Service, vesting conditions : market 20%, non-market 80%
Series 1-38	2020-3-6		2,856		822	Service, vesting conditions : market 0%, non-market 100%
Series 1-39	2020-8-1		12,744		906	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1		66,939		19,690	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1		2,660		599	Service, vesting conditions : market 0%, non-market 100%
Series 1-40	2021-1-1		34,884		10,845	Service, vesting conditions : market 20%, non-market 80%

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


Series 1-41	2021-3-4	3,591	1,856	Service, vesting conditions : market 20%, non-market 80%
Series 1-42	2021-3-15	5,034	1,369	Service, vesting conditions : market 20%, non-market 80%
Series 1-43	2021-5-27	604	100	Service, vesting conditions : market 20%, non-market 80%
Series 1-44	2021-6-1	2,904	1,487	Service, vesting conditions : market 20%, non-market 80%
Series 1-45	2021-8-1	2,320	989	Service, vesting conditions : market 20%, non-market 80%
Series 1-46	2021-9-1	3,201	958	Service, vesting conditions : market 20%, non-market 80%
Series 1-47	2022-1-1	58,681	19,773	Service, vesting conditions : market 20%, non-market 80%
Series 1-48	2022-2-17	1,990	2,953	Service, vesting conditions : market 20%, non-market 80%
Series 1-49	2022-3-6	928	171	Service, vesting conditions : market 0%, non-market 100%
Series 1-50	2022-03-14	588	562	Service, vesting conditions : market 20%, non-market 80%
Series 1-51	2022-05-09	2,839	2,839	Service, vesting conditions : market 20%, non-market 80%
Series 1-52	2022-07-18	190	146	Service, vesting conditions : market 20%, non-market 80%
Series 1-53	2022-08-01	4,945	6,216	Service, vesting conditions : market 20%, non-market 80%
Series 1-54	2022-08-16	3,627	7,903	Service, vesting conditions : market 20%, non-market 80%
Series 1-55	2023-01-01	52,570	56,407	Service, vesting conditions : market 20%, non-market 80%
Series 1-55	2023-01-01	5,492	8,009	Service, vesting conditions : market 0%, non-market 100%
Series 1-55	2023-01-01	23,930	27,494	Service, vesting conditions : market 20%, non-market 80%
Series 1-56	2023-02-15	3,161	2,966	Service, vesting conditions : market 20%, non-market 80%
Series 1-57	2023-03-04	3,076	3,076	Service, vesting conditions : market 20%, non-market 80%
Series 1-58	2023-03-15	1,367	414	Service, vesting conditions : market 20%, non-market 80%
Series 1-59	2023-06-01	2,876	2,876	Service, vesting conditions : market 20%, non-market 80%
Series 1-60	2023-08-01	2,768	1,965	Service, vesting conditions : market 20%, non-market 80%
Series 1-61	2023-09-01	3,390	2,263	Service, vesting conditions : market 20%, non-market 80%
Series 1-62	2024-01-01	61,779	34,896	Service, vesting conditions : market 20%, non-market 80%
Series 1-62	2024-01-01	15,012	7,516	Service, vesting conditions : market 20%, non-market 80%
Series 1-63	2024-02-17	953	953	Service, vesting conditions : market 20%, non-market 80%
Series 1-64	2024-05-09	2,432	789	Service, vesting conditions : market 20%, non-market 80%
Series 1-65	2024-08-01	429	429	Service, vesting conditions : market 20%, non-market 80%
Series 1-66	2024-08-16	397	397	Service, vesting conditions : market 20%, non-market 80%

		589,454	301,632

1	The number of maximum payable shares per executive as at December 31, 2024.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The details of share grants linked to short-term performance as at December 31, 2024, are as follows:


(In number of shares)	Grant date	Granted shares		Payable shares1		Vesting conditions2
Series 2-3	2016-1-1		5,454		1,532	Proportional to service period, vesting conditions satisfied
Series 2-4	2017-1-1		21,346		9,528	Proportional to service period, vesting conditions satisfied
Series 2-5	2018-1-1		31,432		17,752	Proportional to service period, vesting conditions satisfied
Series 2-6	2019-1-1		23,302		16,277	Proportional to service period, vesting conditions satisfied
Series 2-7	2020-1-1		66,921		19,507	Proportional to service period, vesting conditions satisfied
Series 2-8	2021-1-1		64,101		33,042	Proportional to service period, vesting conditions satisfied
Series 2-9	2022-1-1		52,139		40,676	Proportional to service period, vesting conditions satisfied
Series 2-10	2023-1-1		73,004		73,004	Proportional to service period, vesting conditions satisfied
Series 2-11	2024-1-1		32,754		32,754	Proportional to service period, vesting conditions satisfied
Series 3-3	2016-1-1		15,036		5,478	Proportional to service period, vesting conditions satisfied
Series 3-4	2017-1-1		12,112		6,343	Proportional to service period, vesting conditions satisfied
Series 3-5	2018-1-1		10,352		7,079	Proportional to service period, vesting conditions satisfied
Series 3-6	2019-1-1		18,194		13,167	Proportional to service period, vesting conditions satisfied
Series 3-7	2020-1-1		77,112		16,434	Proportional to service period, vesting conditions satisfied
Series 3-8	2021-1-1		91,948		45,831	Proportional to service period, vesting conditions satisfied
Series 3-9	2022-1-1		66,060		42,301	Proportional to service period, vesting conditions satisfied
Series 3-10	2023-1-1		76,048		74,588	Proportional to service period, vesting conditions satisfied
Series 4-1	2017-12-31		23,667		21,865	Proportional to service period, vesting conditions satisfied
Series 4-2	2019-12-31		30,098		793	Proportional to service period, vesting conditions satisfied
Series 4-3	2020-12-31		263,762		2,229	Proportional to service period, vesting conditions satisfied
Series 4-4	2021-12-31		268,781		66,815	Proportional to service period, vesting conditions satisfied
Series 4-5	2022-12-31		216,687		131,212	Proportional to service period, vesting conditions satisfied
Series 4-6	2023-12-31		293,942		258,711	Proportional to service period, vesting conditions satisfied

			1,834,252		936,918

1	The number of maximum payable shares per executive as at December 31, 2024.

2	Number of vested shares is determined by performance and paid for a deferred payment schedule over 3 to 5 years.

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Share grants are measured at fair value using the Monte Carlo Simulation Model and assumptions used in determining the fair value as at December 31, 2024, are as follows:


(In Korean won)	Risk free rate (%)	Fair value (Market performance condition)	Fair value (Non-market performance condition)
Series 1-1	2,688	—	79,280~79,280
Series 1-8	2,688	—	79,280~79,280
Series 1-10	2,688	—	79,280~79,280
Series 1-11	2,688	—	47,631~47,631
Series 1-13	2,688	—	47,631~79,280
Series 1-19	2,688	—	45,096~47,631
Series 1-21	2,688	—	45,096~87,156
Series 1-22	2,688	—	45,096~87,156
Series 1-24	2,688	—	45,096~56,379
Series 1-26	2,688	—	45,096~56,379
Series 1-28	2,688	—	45,096~87,156
Series 1-30	2,688	—	50,973~87,156
Series 1-31	2,688	—	45,096~56,379
Series 1-32	2,688	—	72,231~79,280
Series 1-33	2,688	—	87,156~87,156
Series 1-34	2,688	—	87,156~87,156
Series 1-35	2,688	—	45,096~56,379
Series 1-36	2,688	—	87,156~87,156
Series 1-37	2,688	—	68,992~87,156
Series 1-38	2,688	—	79,280~87,156
Series 1-39	2,688	—	79,280~87,156
Series 1-40	2,688	—	68,992~87,156
Series 1-41	2,688	—	72,231~79,280
Series 1-42	2,688	—	75,790~87,156
Series 1-43	2,688	—	87,156~87,156
Series 1-44	2,688	—	72,231~79,280
Series 1-45	2,688	—	75,790~87,156
Series 1-46	2,688	—	75,790~87,156
Series 1-47	2,688	—	68,992~87,156
Series 1-48	2,688	64,264~77,543	72,231~79,280
Series 1-49	2,688	—	79,280~87,156
Series 1-50	2,688	—	72,231~79,280
Series 1-51	2,688	72,231~87,156	72,231~79,280
Series 1-52	2,688	—	72,231~79,280
Series 1-53	2,688	72,231~87,156	72,231~79,280
Series 1-54	2,688	72,231~87,156	72,231~79,280
Series 1-55	2,688	72,231~87,156	68,992~87,156
Series 1-56	2,688	68,992~79,280	68,992~75,790
Series 1-57	2,688	72,231~87,156	72,231~79,280
Series 1-58	2,688	—	75,790~87,156
Series 1-59	2,688	72,231~87,156	72,231~79,280
Series 1-60	2,688	68,992~79,280	68,992~75,790
Series 1-61	2,688	68,992~79,280	68,992~75,790
Series 1-62	2,688	68,992~87,156	68,992~79,280
Series 1-63	2,688	72,231~87,156	72,231~79,280
Series 1-64	2,688	65,949~75,790	65,949~72,231
Series 1-65	2,688	72,231~87,156	72,231~79,280
Series 1-66	2,688	72,231~87,156	72,231~79,280
Series 2-3	2,688	—	47,631~87,156
Series 2-4	2,688	—	45,096~87,156

Table of Contents

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


(In Korean won)	Risk free rate (%)	Fair value (Market performance condition)	Fair value (Non-market performance condition)
Series 2-5	2,688	—	45,096~87,156
Series 2-6	2,688	—	45,096~87,156
Series 2-7	2,688	—	50,973~87,156
Series 2-8	2,688	—	68,992~87,156
Series 2-9	2,688	—	52,755~87,156
Series 2-10	2,688	—	68,992~87,156
Series 2-11	2,688	—	68,992~82,170
Series 3-3	2,688	—	47,631~87,156
Series 3-4	2,688	—	45,096~87,156
Series 3-5	2,688	—	45,096~87,156
Series 3-6	2,688	—	45,096~87,156
Series 3-7	2,688	—	50,973~87,156
Series 3-8	2,688	—	68,992~87,156
Series 3-9	2,688	—	68,992~87,156
Series 3-9	2,688	—	68,992~87,156
Series 4-1	2,688	—	45,096~56,379
Series 4-2	2,688	—	50,973~50,973
Series 4-3	2,688	—	50,973~52,755
Series 4-4	2,688	—	50,973~87,156
Series 4-5	2,688	—	52,755~87,156
Series 4-6	2,688	—	75,790~87,156

The Group used the volatility of the stock price over the previous year as the expected volatility and used the dividend yield as the arithmetic mean of the dividend rate of one year before, two years before, and three years before the base year, in order to calculate fair value. Fair value is calculated based on risk free interest rate of 1 year-KTB rate.

In relation to the above share-based arrangements, the compensation cost amounting to 92,491,618 thousand and 66,785,811 thousand is recorded as accrued expenses to KB Financial Group Inc. as at December 31, 2024 and 2023, respectively.

34. Non-operating Income and Non-operating Expenses

The details of non-operating income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Gain on disposal of property and equipment		2,397		8,321
Gain on disposal of intangible assets		3,922,610		1,436,275
Reversal of impairment loss on intangible assets		1,019,296		1,726,399
Rent		7,299,613		6,781,887
Gain related to investments in associates		20,361,271		27,759,056
Others		47,347,733		29,592,459

		79,952,920		67,304,397

The details of non-operating expenses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Loss on disposal of property and equipment		245,419		29,760
Depreciation of investment properties		533,251		433,894
Loss on disposal of intangible assets		—		2,500
Impairment loss on investment properties 1		—		109,155,681
Impairment loss on intangible assets		1,105,841		74,692
Donation		7,327,168		3,852,653
Loss related to investments in subsidiaries and associates		51,857,988		70,652,736
Others		51,036,717		70,495,148

		112,106,384		254,697,064

100

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

During the year ended December 31, 2023, there were signs of impairment for investment properties held by VREF Shaftesbury ScSp and BECKETT ACQUISITION LIMITED, which were subsidiaries of the Group, and the estimated recoverable amount was lower than the book value, so 46,301 million and 62,855 million of impairment losses, respectively, were recognized.

As at December 31, 2023, VREF Shaftesbury ScSp and BECKETT ACQUISITION LIMITED were excluded from consolidation.

35. Tax Expense and Deferred Tax

The details of income tax expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Current tax
Current tax on profits for the year		275,696,796			151,268,757
Adjustments in respect of prior years		(763,297	)		1,908,328
Deferred tax
Origination and reversal of temporary differences		(113,145,045	)		(46,437,792	)
Tax recognized directly in equity
Gain or loss on valuation for financial assets at FVOCI		(2,158,539	)		(19,580,805	)
Shares of other comprehensive income of associates		(2,375,992	)		1,421,275
Gain on revaluation of property and equipment		—			84,436
Remeasurements of net defined benefit liabilities		1,702,285			1,798,561
Foreign operations translation		2,485,191			(589,364	)
Hedge of net investments in foreign operations		7,772,865			(824,146	)
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit risk		1,978,179			19,037,679
Tax effect derived from group’s income tax system		(12,920,250	)		(3,353,308	)

Income tax expense		158,272,193			104,733,621

Reconciliations of profit before tax and tax expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Profit before tax (A)		748,633,013			492,761,458

Tax based on statutory rate		187,277,115			119,727,025
Adjustments
Non-deductible expense		5,532,864			4,853,834
Non-taxable income		(13,325,036	)		(8,847,983	)
Changes in deferred tax assets (liabilities) that have not been recognized		(25,982,120	)		(7,517,397	)
Effect from tax reduction and credit		(1,379,761	)		(1,362,312	)
Adjustment in respect of prior years		(763,296	)		1,908,329
Tax effect from group’s income tax system		(12,920,250	)		(3,353,308	)
Changes in tax rate		—			350,253
Others		19,832,677			(1,024,820	)

Tax expense (B)		158,272,193			104,733,621

Effective tax rate (B/A)		21.14	%		21.25	%

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The changes in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance			Profit (loss) for the year			Other comprehensive income			Ending balance
Provision for impairment		136,402			24,928			—			161,330
Commissions income		9,136,660			(3,655,638	)		—			5,481,022
Financial assets at FVOCI		(105,219,053	)		(822,640	)		(2,158,539	)		(108,200,232	)
Defined benefit obligation		19,780,819			(663,984	)		1,702,285			20,819,120
Other long-term employee benefits		1,867,887			44,608			—			1,912,495
Financial assets at FVTPL		35,908,444			20,842,494			—			56,750,938
Financial liabilities at FVTPL		(237,598,072	)		140,811,271			1,978,179			(94,808,622	)
Accrued expenses		69,216,464			15,545,000			—			84,761,464
Dividends (specific overseas company)		9,278,179			1,099,828			—			10,378,007
Accrued income		(34,529,235	)		(11,902,244	)		—			(46,431,479	)
Property and equipment		(21,955,416	)		341			—			(21,955,075	)
Provisions for asset retirement obligation		2,391,555			47,008			—			2,438,563
Investments in associates and subsidiaries		(2,477,419	)		(3,783,771	)		—			(6,261,190	)
Derivatives		154,172,948			(57,544,107	)		—			96,628,841
Loans		1,506,318			(165,955	)		—			1,340,363
Intangible assets		(20,852,423	)		(254,858	)		—			(21,107,281	)
Plan assets		(3,503,491	)		606,928			—			(2,896,563	)
Advance depreciation provision		(2,401,725	)		—			—			(2,401,725	)
Interest related to loan for construction		(54,907	)		3,723			—			(51,184	)
Others		95,439,313			(7,114,851	)		—			88,324,462

Subtotal		(29,756,752	)		93,118,081			1,521,925			64,883,254
Deficit carryforward arising from the current year		—			—			—			—
Subtotal of deferred tax assets (liabilities) of the Parent Company		(29,756,752	)		93,118,081			1,521,925			64,883,254

Unrecognized deferred tax assets (liabilities) of the Parent Company		(12,365,920	)		(4,689,358	)		—			(17,055,278	)

Deferred tax assets (liabilities) of the Parent Company, net 1		(17,390,832	)		97,807,439			1,521,925			81,938,532
Deferred tax assets of subsidiaries		1,023,220			(379,677	)		—			643,543
Deferred tax liabilities of subsidiaries		(810,550	)		(119,034	)		—			(929,584	)
Changes in deferred tax assets due to adjustment of consolidation		6,287,460			5,409,109			7,882,066			19,578,635

Deferred tax assets of the Group		1,023,220			100,207,906			—			101,231,126

Deferred tax liabilities of the Group		(11,913,922	)		2,509,931			9,403,991			—

1	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate, applicable to the forecasted period when the temporary differences are reversed.


	2023
(in thousands of Korean won)	Beginning balance			Profit (loss) for the year			Other comprehensive income			Ending balance
Provision for impairment		136,919			(517	)		—			136,402
Commissions income		7,803,594			1,333,066			—			9,136,660
Financial assets at FVOCI		(85,934,450	)		403,339			(19,687,942	)		(105,219,053	)
Defined benefit obligation		17,820,541			161,717			1,798,561			19,780,819
Other long-term employee benefits		1,901,703			(33,816	)		—			1,867,887
Financial assets at FVTPL		195,212,195			(159,303,751	)		—			35,908,444
Financial liabilities at FVTPL		(307,146,060	)		50,510,309			19,037,679			(237,598,072	)
Accrued expenses		54,462,905			14,753,559			—			69,216,464
Dividends (specific overseas company)		9,419,063			(140,884	)		—			9,278,179
Accrued income		(24,776,460	)		(9,752,775	)		—			(34,529,235	)
Property and equipment		(22,035,671	)		(4,181	)		84,436			(21,955,416	)
Provisions for asset retirement obligation		2,332,599			58,956			—			2,391,555
Investments in associates and subsidiaries		(163,368	)		(2,314,051	)		—			(2,477,419	)
Derivatives		45,168,323			109,004,625			—			154,172,948

102

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


Loans	1,604,716		(98,398	)	—	1,506,318
Intangible assets	(20,232,372	)	(620,051	)	—	(20,852,423	)
Plan assets	(3,293,977	)	(209,514	)	—	(3,503,491	)
Advance depreciation provision	(2,410,822	)	9,097		—	(2,401,725	)
Interest related to loan for construction	(58,852	)	3,945		—	(54,907	)
Others	52,127,630		43,311,683		—	95,439,313

Subtotal	(78,061,844	)	47,072,358		1,232,734	(29,756,752	)

Deficit carryforward arising from the year	—		—		—	—
Subtotal of deferred tax assets (liabilities) of the Parent Company	(78,061,844	)	47,072,358		1,232,734	(29,756,952	)

Unrecognized deferred tax assets (liabilities) of the Parent Company	(4,216,737	)	(8,149,183	)	—	(12,365,920	)

Deferred tax assets (liabilities) of the Parent Company, net 1	(73,845,107	)	55,221,541		1,232,734	(17,390,832	)
Deferred tax assets of subsidiaries	1,289,260		(266,040	)	—	1,023,220
Deferred tax liabilities of subsidiaries	(2,783,295	)	1,972,745		—	(810,550	)
Changes in deferred tax assets due to adjustment of consolidation	18,276,688		(12,104,129	)	114,901	6,287,460

Deferred tax assets of the Group	1,289,260		(266,040	)	—	1,023,220

Deferred tax liabilities of the Group	(58,351,714	)	45,090,157		1,347,635	(11,913,922	)

1	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate, applicable to the forecasted period when the temporary differences are reversed.

Temporary differences which were not recognized due to uncertainty of their realization as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Taxable temporary difference
Investments in subsidiaries		252,602,567		134,894,928
Intangible assets		58,888,990		58,888,990
Others		445,550		445,550

		311,937,107		194,229,468

Deductible temporary difference
Commission		9,239,637		9,239,637
Dividends		24,531,338		20,365,324
Investments in subsidiaries		37,911,226		22,786,722
Others		2,705,305		2,705,305

		74,387,506		55,096,988

		237,549,601		139,132,480

Details of income taxes that are charged or credited directly to equity for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Recognized in other comprehensive income
Gain or loss on valuation for financial assets at FVOCI		(3,668,101	)		(15,919,147	)
Shares of other comprehensive income of associates		(2,375,992	)		1,421,275
Gains on revaluation of property and equipment		—			84,436
Remeasurements of net defined benefit liabilities		1,702,285			1,798,561
Foreign operations translation		2,485,191			(589,364	)
Hedge of net investments in foreign operations		7,772,865			(824,146	)
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit risk		1,978,179			19,037,679
Reclassified to profit or loss
Gain or loss on valuation for financial assets at FVOCI		1,509,563			(3,661,658	)

		9,403,990			1,347,636

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December 31, 2024 and 2023

36. Carrying Amounts of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortised cost. Measurement policies for each category of financial assets and financial liabilities are disclosed in Note 2, ‘Material accounting policies’.

The carrying amounts of financial assets and liabilities by category as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Financial asset measured at fair value through profit or loss		Financial asset measured at amortised cost		Financial asset measured at fair value through other comprehensive income		Totals
Financial Assets
Cash and deposits		—		3,322,504,801		—		3,322,504,801
Financial assets at FVTPL		37,098,018,781		—		—		37,098,018,781
Derivative financial assets		1,394,203,701		—		—		1,394,203,701
Equity instruments at FVOCI		—		—		1,356,768,478		1,356,768,478
Debt instruments at FVOCI		—		—		5,128,522,928		5,128,522,928
Loans measured at amortised cost		—		10,605,842,882		—		10,605,842,882
Other financial assets		—		2,813,756,957		—		2,813,756,957

		38,492,222,482		16,742,104,640		6,485,291,406		61,719,618,528


	2024
(in thousands of Korean won)	Financial liabilities measured at fair value through profit or loss		Financial liabilities designated at fair value through profit or loss		Financial liabilities measured at amortised cost		Derivative liabilities (hedging)		Totals
Financial Liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		—		2,558,520,223
Financial liabilities designated at FVTPL		—		8,010,047,059		—		—		8,010,047,059
Derivative financial liabilities		1,919,915,454		—		—		4,309,200		1,924,224,654
Deposit liabilities		—		—		7,725,858,827		—		7,725,858,827
Borrowings		—		—		33,454,601,384		—		33,454,601,384
Other financial liabilities		—		—		2,210,452,579		—		2,210,452,579

		4,478,435,677		8,010,047,059		43,390,912,790		4,309,200		55,883,704,726

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December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Financial asset measured at fair value through profit or loss		Financial asset measured at amortised cost		Financial asset measured at fair value through other comprehensive income		Totals
Financial Assets
Cash and deposits		—		2,927,067,230		—		2,927,067,230
Financial assets at FVTPL		35,948,948,684		—		—		35,948,948,684
Derivative financial assets		1,138,492,891		—		—		1,138,492,891
Equity instruments at FVOCI		—		—		864,193,831		864,193,831
Debt instruments at FVOCI		—		—		4,270,319,038		4,270,319,038
Loans measured at amortised cost		—		10,418,945,936		—		10,418,945,936
Other financial assets		—		4,072,941,183		—		4,072,941,183

		37,087,441,575		17,418,954,349		5,134,512,869		59,640,908,793


	2023
(in thousands of Korean won)	Financial liabilities measured at fair value through profit or loss		Financial liabilities designated at fair value through profit or loss		Financial liabilities measured at amortised cost		Derivative liabilities (hedging)		Totals
Financial Liabilities
Financial liabilities at FVTPL		2,860,033,642		—		—		—		2,860,033,642
Financial liabilities designated at FVTPL		—		7,975,847,458		—		—		7,975,847,458
Derivative financial liabilities		1,810,865,351		—		—		5,307,120		1,816,172,471
Deposit liabilities		—		—		7,122,595,110		—		7,122,595,110
Borrowings		—		—		30,640,156,335		—		30,640,156,335
Other financial liabilities		—		—		3,894,408,700		—		3,894,408,700

		4,670,898,993		7,975,847,458		41,657,160,145		5,307,120		54,309,213,716

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

37. Financial Instruments

37.1 Fair Value of Financial Instruments by Class

Fair values of financial assets and financial liabilities as at December 31, 2024 and 2023, are as follows:


	2024				2023
(in thousands of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Cash and deposits 2		3,322,504,801		3,322,504,801		2,927,067,230		2,927,067,230
Financial assets at FVTPL 1		37,098,018,781		37,098,018,781		35,948,948,684		35,948,948,684
Derivative financial assets 1		1,394,203,701		1,394,203,701		1,138,492,891		1,138,492,891
Financial assets at FVOCI		6,485,291,406		6,485,291,406		5,134,512,869		5,134,512,869
Loans measured at amortised cost		10,605,842,882		10,617,262,736		10,418,945,936		10,413,875,783
Other financial assets2		2,813,756,957		2,813,756,957		4,072,941,183		4,072,941,183

		61,719,618,528		61,731,038,382		59,640,908,793		59,635,838,640

1	Deferred transaction gain or losses are adjusted in the carrying amount.

2	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.


	2024				2023
(in thousands of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial liabilities
Deposit liabilities 2		7,725,858,827		7,725,858,827		7,122,595,110		7,122,595,110
Financial liabilities at FVTPL		2,558,520,223		2,558,520,223		2,860,033,642		2,860,033,642
Financial liabilities designated at FVTPL1		8,010,047,059		8,010,047,059		7,975,847,458		7,975,847,458
Derivative financial liabilities1		1,924,224,654		1,924,224,654		1,816,172,471		1,816,172,471
Borrowings		33,454,601,384		33,477,622,455		30,640,156,335		30,630,441,081
Other financial liabilities2		2,210,452,579		2,210,452,579		3,894,408,700		3,894,408,700

		55,883,704,726		55,906,725,797		54,309,213,716		54,299,498,462

1	Deferred transaction gain or losses are adjusted in the carrying amount.

2	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.

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

37.2 Fair Value Hierarchy

Financial instruments measured at fair value are categorized within the fair value hierarchy, and the defined levels are as follows:


Level 1		Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2		Fair value using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, prices) or indirectly (that is, derived from prices)

Level 3		Fair value using inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)

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December 31, 2024 and 2023

The inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The observable input is generally used to the fair value measurement. However, if an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement would be categorized within Level 3 of the fair value hierarchy.

(a)	Fair value hierarchy of financial instruments measured at fair value

The fair value hierarchy of financial assets and liabilities measured at fair value as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at FVTPL – debt instruments 1		7,516,138,758		23,854,828,909		2,831,841,789		34,202,809,456
Financial assets at FVTPL - equity instruments		1,476,635,311		209,125,333		271,825,317		1,957,585,961
Financial assets at FVTPL - loans		—		—		937,623,364		937,623,364
Derivative financial assets1		17,271,119		1,126,405,562		250,527,020		1,394,203,701
Financial assets at FVOCI		123,148,567		5,937,790,330		424,352,509		6,485,291,406

		9,133,193,755		31,128,150,134		4,716,169,999		44,977,513,888

Financial liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		2,558,520,223
Financial liabilities designated at FVTPL1		300,489,734		1,529,491,945		6,180,065,380		8,010,047,059
Derivative financial liabilities1		180,111,464		1,150,851,062		593,262,128		1,924,224,654

		3,039,121,421		2,680,343,007		6,773,327,508		12,492,791,936

1	Deferred transaction gain or losses are adjusted in the carrying amount.


	2023
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at FVTPL – debt instruments 1		6,754,020,776		24,674,105,236		3,046,586,050		34,474,712,062
Financial assets at FVTPL - equity instruments		767,920,689		428,787,120		277,528,813		1,474,236,622
Derivative financial assets1		26,360,675		1,020,502,956		91,629,260		1,138,492,891
Financial assets at FVOCI		7,656,523		4,690,968,746		435,887,600		5,134,512,869

		7,555,958,663		30,814,364,058		3,851,631,723		42,221,954,444

Financial liabilities
Financial liabilities at FVTPL		2,860,033,642		—		—		2,860,033,642
Financial liabilities designated at FVTPL1		56,685,594		881,791,359		7,037,370,505		7,975,847,458
Derivative financial liabilities1		95,264,720		965,353,254		755,554,497		1,816,172,471

		3,011,983,956		1,847,144,613		7,792,925,002		12,652,053,571

1	Deferred transaction gain or losses are adjusted in the carrying amount.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

37.3 Valuation techniques and inputs classified by Level 2

The details of the valuation techniques and inputs classified by Level 2 as at December 31, 2024 and 2023 are as follows:


(in thousands of Korean won)	2024	Valuation techniques	Inputs
Financial assets at FVTPL	24,063,954,242	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)	1,126,405,562	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Option Pricing model and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI	5,937,790,330	DCF Model	Discount rate, Interest rate and others

	31,128,150,134

Financial liabilities designated at FVTPL	1,529,491,945	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Mode and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial liabilities(trading)	1,146,541,862	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Option Pricing model and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility
Derivative financial liabilities(hedging)	4,309,200	DCF Model	Discount rate, exchange rate and others

	2,680,343,007


(in thousands of Korean won)	2023	Valuation techniques	Inputs
Financial assets at FVTPL	25,102,892,356	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)	1,020,502,956	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI	4,690,968,746	DCF Model	Discount rate, Interest rate and others

	30,814,364,058

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December 31, 2024 and 2023


Financial liabilities designated at FVTPL	881,791,359	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial liabilities(trading)	960,046,134	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility
Derivative financial liabilities(hedging)	5,307,120	DCF Model	Discount rate, exchange rate and others

	1,847,144,613

37.4 Level 3 of the Fair Value Hierarchy Disclosure

(a)	Valuation Process for Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

The fair value of financial instruments classified as Level 3 is determined by external valuation or self-valuation of the Group. Unobservable inputs are produced by the external appraiser or internal valuation system and the Group reviews the adequacy of the inputs. The Risk Management Council reviews the adequacy of the assessment methodology and valuation method of external appraiser and the internal valuation. The agenda of the Risk Management Council is being reported or approved by the Risk Committee.

(b)	Changes in Fair Value Measurements Categories of the Fair Value hierarchy

The changes in financial instruments with Level 3 fair value for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI			Net derivatives			Financial liabilities designated at FVTPL
Beginning balance		3,324,114,863			435,887,600			(663,925,237	)		(7,037,370,505	)
Total gains or losses
Profit or loss		25,833,132			—			(254,234,941	)		(266,914,729	)
Other comprehensive income		—			(11,946,500	)		—			(10,815,593	)
Purchases		2,746,821,655						3,907,013			—
Sales		(2,056,851,294	)		411,409			(5,253,440	)		—
Issues		—			—			(2,960,406	)		(4,200,663,614	)
Settlements		—			—			579,731,903			5,335,699,061
Transfer within levels 1		1,372,114			—			—			—

Ending balance		4,041,290,470			424,352,509			(342,735,108	)		(6,180,065,380	)

1	Transfer within levels occurred due to the change in the availability of observable market data on the financial instruments.

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December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI			Net derivatives			Financial liabilities designated at FVTPL
Beginning balance		2,656,097,502			423,239,054			(656,766,734	)		(8,241,509,165	)
Total gains or losses
Profit or loss		92,977,448			—			(75,110,379	)		(337,404,523	)
Other comprehensive income		—			12,640,160			—			(32,370,491	)
Purchases		1,328,794,036			(1	)		11,645,512			—
Sales		(762,414,786	)		8,387			(6,653,771	)		—
Issues		—			—			(6,275,195	)		(4,431,945,040	)
Settlements		—			—			69,235,330			6,005,858,714
Transfer within levels 1		8,660,663			—			—			—

Ending balance		3,324,114,863			435,887,600			(663,925,237	)		(7,037,370,505	)

1	Transfer within levels occurred due to the change in the availability of observable market data on the financial instruments.

In relation to changes in Level 3 fair value, total gains or losses related to the asset and liabilities held at the reporting date are included in the statements of comprehensive income for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI			Net derivatives			Financial liabilities designated at FVTPL
Profit or loss
Gain or loss on valuation of financial instruments1		(22,868,020	)		—			(136,256,576	)		(39,526,996	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI2		—			(11,946,500	)		—			—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk2		—			—			—			(9,524,866	)

		(22,868,020	)		(11,946,500	)		(136,256,576	)		(49,051,862	)

1	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or Loss.

2	Included in other comprehensive income on the statements of comprehensive income.


	2023
(in thousands of Korean won)	Financial assets at FVTPL		Financial assets at FVOCI		Net derivatives			Financial liabilities designated at FVTPL
Profit or loss
Gain or loss on valuation of financial instruments1		53,120,630		—		(38,278,972	)		70,813,358
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI2		—		12,640,160		—			—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk2		—		—		—			(51,567,843	)

		53,120,630		12,640,160		(38,278,972	)		19,245,515

1	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or Loss.

2	Included in other comprehensive income on the statements of comprehensive income.

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December 31, 2024 and 2023

(c)	Valuation techniques and the Inputs classified by Level 3

Valuation techniques and inputs for level 3 financial instruments are as follows:

2024

(in thousands of
Korean won)

Type

Fair value

Valuation
techniques

Inputs

Unobservable

input

Range

Relevance

Financial assets at FVTPL

Equity-linked
securities

10,897,742

DCF model,
Closed Form,
FDM, Monte
Carlo

Price of
underlying asset,
interest rate,
discount rate,

Underlying
asset volatility

0.26 ~ 0.36

Proportional

Correlation

0.56 ~ 0.75

Proportional

Other OTC derivative linked contract

179,415,684

Underlying asset volatility

0.14 ~ 0.28

Proportional

volatility of interest rate, probability of default

Correlation

-0.60 ~ 0.75

Proportional

Debt instruments

2,349,676,246

Underlying asset volatility

0.13 ~ 0.69

Proportional

Equity instruments1

277,528,812

Discount rate

0.08 ~ 0.23

Inversely proportional

Derivative financial assets (trading)

91,629,260

Underlying asset volatility

0.09 ~ 1.07

Proportional

Correlation

-0.60 ~ 0.79

Proportional

Financial assets at FVOCI

Equity instruments

435,887,600

DCF model, Risk-adjusted discount rate model, IMV model and others

Growth rate, discount rate

Growth rate

0.01 ~ 0.01

Proportional

Discount rate

0.13 ~ 0.14

Inversely proportional

3,851,631,723

Financial liabilities designated at FVTPL

Equity-linked securities sold

5,108,542,623

DCF model, Closed Form, Monte Carlo

Price of underlying asset, interest rate, discount rate,

Underlying asset volatility

0.14 ~ 0.52

Proportional

Correlation

-0.60 ~ 0.78

Proportional

Derivatives linked securities sold

1,734,494,561

Simulation, Hull and White, Black-Scholes Model, Net asset

dividend ratio, volatility of underlying assets, correlation of

Underlying asset volatility

0.01 ~ 1.07

Proportional

Other OTC derivatives linked contract sold1

194,333,321

Correlation

-0.60 ~ 0.90

Proportional

Derivative financial liabilities (trading)

755,554,497

value, etc.

underlying assets, volatility of interest rate,

Underlying asset volatility

0.14 ~ 0.47

Proportional

probability of default

Correlation Underlying asset volatility

-0.60 ~ 0.73
0.04 ~ 1.07

Proportional Proportional

Correlation

-0.60 ~ 0.90

Proportional

7,792,925,002

1	Derivatives which derive their value from interest rate, stock price, foreign exchange rate, commodity price, credit rate and others are included.

(d)	Sensitivity Analysis of Recurring Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair value of financial instruments which are affected by the unobservable inputs, using a statistical technique. When the fair value is affected by more than two inputs, the amounts represent the most favorable or most unfavorable.

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December 31, 2024 and 2023

The results of the sensitivity analysis for the effect on profit or loss from changes in inputs for each financial instrument as at December 31, 2024 and 2023, are as follows.


	2024
	Profit and loss					Other comprehensive income
(in thousands of Korean won)	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at FVTPL1		26,980,468		(17,573,732	)		—		—
Derivative financial assets 1		14,841,168		(16,508,885	)		—		—
Financial assets at FVOCI 2		—		—			19,296,520		(14,882,691	)

		41,821,636		(34,082,617	)		19,296,520		(14,882,691	)

Financial liabilities
Financial liabilities designated at FVTPL1		16,840,216		(16,759,886	)		—		—
Derivative financial liabilities 1		22,092,417		(24,479,482	)		—		—

		38,932,633		(41,239,368	)		—		—

1	Measured by changes in fair value based on the increasing or decreasing unobservable volatility of underlying assets by 10% or unobservable input(growth rate and discount rate) by 1%.

2	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are unobservable inputs.


	2023
	Profit and loss					Other comprehensive income
(in thousands of Korean won)	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at FVTPL1		18,133,573		(14,565,265	)		—		—
Derivative financial assets 1		7,711,516		(8,285,388	)		—		—
Financial assets at FVOCI 2		—		—			27,719,688		(20,456,568	)

		25,845,089		(22,850,653	)		27,719,688		(20,456,568	)

Financial liabilities
Financial liabilities designated at FVTPL1		43,113,202		(42,487,042	)		—		—
Derivative financial liabilities 1		17,928,206		(19,069,748	)		—		—

		61,041,408		(61,556,790	)		—		—

1	Measured by changes in fair value based on the increasing or decreasing unobservable volatility of underlying assets by 10% or unobservable input(growth rate and discount rate) by 1%.

2	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are unobservable inputs.

(e)	Day 1 Profit and Loss

If the Group uses a valuation technique that uses data not obtained from observable markets for the fair value at initial recognition of financial instruments, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price and the difference is amortised by using the straight-line method over the life of the financial instruments. If the fair value of the financial instruments can be subsequently determined using observable market inputs, the remaining deferred amount is immediately recognized in profit or loss.

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December 31, 2024 and 2023

The aggregate difference yet to be recognized in profit or loss at the beginning and end of the year, and the changes in the balance of this difference, are as follows:


(in thousands of Korean won)	2024			2023
Balances at the beginning of the year (A)		32,605,297			83,377,184
Incurred during the year (B)		49,077,880			85,920,231
Amounts recognized in profit or loss during the year (C)		(63,079,559	)		(136,692,118	)

Balances at the end of year (A+B+C)		18,603,618			32,605,297

37.5 Fair value hierarchy of financial instruments which the fair value is disclosed

(a)	The fair value hierarchy of financial assets and liabilities which the fair value is disclosed as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Loans measured at amortised cost		—		—		10,617,262,736		10,617,262,736
Financial liabilities
Borrowings		—		—		33,477,622,455		33,477,622,455

1	Cash and deposits, other financial assets, deposit liabilities and other financial liabilities that use book amount as a substitute for fair value because their maturities are relatively short or are not set, are not disclosed.


	2023
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Loans measured at amortised cost		—		—		10,413,875,783		10,413,875,783
Financial liabilities
Borrowings		—		—		30,630,441,081		30,630,441,081

1	Cash and deposits, other financial assets, deposit liabilities and other financial liabilities that use book amount as a substitute for fair value because their maturities are relatively short or are not set, are not disclosed.

(b)	Valuation techniques and inputs


		Valuation technique and inputs
Cash and deposits		The fair value of cash is the same as the book amount. The book amount is used as a substitute value of fair value for the majority of deposits consisting of overnight deposits and deposits with variable interest rate.
Loans measured at amortised cost		The fair values are calculated by discount rate considering market interest rates and borrower’s credit risk on expected cash flows.
Deposit liabilities and borrowings		The book amount is used as a substitute value of fair value for demand deposit liabilities, bank overdrafts and call money. With regard to the other deposits and borrowings, the fair values are calculated by discount rate considering residual risks at market interest rates on contractual cash flows.
Other financial assets and liabilities		As a temporary transitional account derived from various transactions, the book amount is used as a substitute value of fair value instead of applying DCF due to the relatively short-term or indefinite maturity.

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December 31, 2024 and 2023

37.6 Derecognition of financial assets

The Group continues to recognize bonds sold under repurchase agreements and securities lending agreement, because the Group transferred the financial asset, but the assets does not meet the derecognition criteria. Due to the nature of transaction that bonds sold under repurchase agreements are under repurchase condition with fixed price and securities lending agreement contains the retransfer back condition by the end of lending period, the Group is liable to almost all risks and rewards related to the ownership of the financial assets.

As at December 31, 2024 and 2023, relevant information about transferred financial assets which do not qualify for derecognition are as follows:


	2024
	Financial assets at FVTPL				Financial assets at FVOCI
(in thousands of Korean won)	Debt instruments1,2, 3		Equity instruments2		Debt instruments1,3		Equity instruments
Carrying amount of transferred assets		4,245,358,415		6,046,174		1,811,592,215		—
Carrying amount of related liabilities		4,138,807,782		—		1,774,216,825		—

1	Transferred debt instruments under repurchase agreements.

2	Transferred equity instruments and debt instruments under securities lending agreements.

3	As at December 31, 2024, the accrued interests related to debt securities of 22,779 million is excluded.


	2023
	Financial assets at FVTPL				Financial assets at FVOCI
(in thousands of Korean won)	Debt instruments1,2, 3		Equity instruments2		Debt instruments1,3		Equity instruments
Carrying amount of transferred assets		3,235,725,954		30,025,000		2,509,724,246		—
Carrying amount of related liabilities		3,097,597,098		—		2,481,220,084		—

1	Transferred debt instruments under repurchase agreements.

2	Transferred equity instruments and debt instruments under securities lending agreements.

3	As at December 31, 2023, the accrued interests related to debt securities of 37,381 million is excluded.

Meanwhile, the Group provided additional credit enhancements such as purchase agreements in addition to recourse limited to transferred assets to subsidiaries established for asset securitization purposes.

Details of carrying amounts of the underlying assets and the associated liabilities as of December 31, 2024 and 2023, are as follows:


(In thousands of Korean won)		2024		2023
Underlying assets	Financial assets at fair value through profit or loss		93,804,238		287,035,556
	Loans measured at amortized cost1		2,271,500,415		1,765,268,001

			2,365,304,653		2,052,303,557

Associated liabilities	Debentures		2,340,021,256		2,013,676,679

1	The amounts disclosed in above table are before deduction of allowances.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38. Financial Risk Management

38.1 Summary

38.1.1 Overview of Financial Risk Management Policy

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

The note regarding financial risk management provides information about the risks that the Group is exposed to, including the objectives, policies and processes for assessing and managing the risks and net operating capital ratio management. Additional quantitative information is disclosed throughout the notes to the consolidated financial statements.

The Group’s risk management system focuses on increasing transparency, developing the risk management environment, preventing transmission of risk to other related subsidiaries, and the preemptive response to risk due to rapid changes in the financial environment to support the Group’s long-term strategy and business decisions efficiently. Credit risk, liquidity risk, market risk, operational risk, and credit concentration risk are recognized as the Group’s key risks. These risks are measured and managed by quantification as regulatory capital and VaR (Value at Risk) using a statistical method.

38.1.2 Risk Management Organization

(a) Board of Directors

Board of Directors are the ultimate decision-making authority that appoint and dismiss Risk Management Committee, establish and amend the Risk Management Committee policies, establish the Group’s criteria for risk limit, decide on basic policy of risk management, and approve large-scale investments.

(b) Risk Management Committee

The Risk Management Committee consists of more than three directors appointed by the Board of Directors (including more than a half of external director). The Risk Management Committee executes the operations delegated by Board Of Directors in accordance with Risk Management Committee policy

Risk Management Council consists of members appointed by Company’s executives, including the director who is responsible for risk management, compliance, planning/management. Also the organization is delegated by Risk Management Committee to perform deliberation/resolution for major policies and matters related to the risk.

(d) Risk management department

Risk management department carries out practical tasks, required for risk management of the Group, such as supporting the Risk Management Committee, reporting the Group’s risk level and computing net operating capital ratio.

38.1.3 Risk Management System

In order to establishing risk management structure, the Group built the total risk management system, ERMS (Enterprise Risk Management System), which is designed for reasonable price valuation against risks and the management of risk limitation to raise the soundness of assets and allocate resources efficiently. Moreover, the Group performs business with risk management basis in mainly by constructing RAPM (Risk Adjusted Performance Measure) and enlarging the portion of performance evaluation.

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December 31, 2024 and 2023

38.1.4 Risk Management Strategy and Policy

As an allocation of risk capital and risk limit establishment process, the risk capital is allocated through resolution of Risk Management Committee meetings, and the amount of risk capital is anticipated for each risk sector, business sector and department by reflecting annual management strategy and business plans.

38.2 Credit Risk

38.2.1 Overview of Credit Risk

The Group is exposed to certain level of credit risk and the credit risk is the risk of possible loss to portfolio due to counterparty’s credit event and breach of covenant. Credit risk exposure occurs in investment activities such as loans, debt instruments, derivative transactions, and non-trading accounts, or can exist in relating to off-balance accounts.

38.2.2 Credit Risk Management

Credit risk is the risk of financial loss to the Group if a customer or counterparty of a financial instrument fails to meet its contractual obligations. If the trading department of the Group wants to deal with the counterparty that may cause the credit risk, the trading department submits product management plan and application in advance to get approval by the Risk Management Council and the Risk Management Committee. The deal is executed when the approval by the Risk Management Council and the Risk Management Committee is completed. Credit risk limit depends on 1) standard credit risk limit, 2) concentration limit on the same person and 3) credit rating and additional limit may be added by the trading department. In addition, credit VaR is measured in addition to the credit management listed above and credit VaR due to the internal model is operated by the credit manager measurement system of the risk metrics group. Limit management is performed on a daily basis and stress test is performed on a regular basis and in case of excess of the limit, trading department expedite the process with the procedure set by the risk management department.

38.2.3 Maximum Exposure to Credit Risk

The maximum exposure of credit risk related to the off-balance as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Agreement to purchase the commercial papers 1		824,171,844		1,287,400,000
Guarantees and loan commitment		1,608,313,801		1,343,191,856

		2,432,485,645		2,630,591,856

1	According to the above arrangement, the Group holds the asset-backed short-term bonds amounting to 278,820 million and 441,661million as at December 31, 2024 and 2023, respectively.

The Group does not disclose financial assets (except above contracts) whose carrying amount represents the maximum exposure to credit risk.

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December 31, 2024 and 2023

38.2.4 Credit Risk Concentration Analysis

(a) Loans

Most of counterparties of loan transactions, before considering collaterals and other credit reinforcements, are concentrated in Korea. The ratios of loans to individuals and corporations and related allowances as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Individuals		2,941,709,421		24.98		(6,513,007	)		2,935,196,414
Corporations		8,834,376,507		75.02		(226,106,675	)		8,608,269,832

		11,776,085,928		100.00		(232,619,682	)		11,543,466,246


	2023
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Individuals		3,397,169,142		32.07		(6,005,060	)		3,391,164,082
Corporations		7,196,838,736		67.93		(169,056,882	)		7,027,781,854

		10,594,007,878		100.00		(175,061,942	)		10,418,945,936

The details of the Group’s loans by industry as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Financial service		6,601,761,843		56.06		(182,838,151	)		6,418,923,692
Manufacturing		560,526,792		4.76		(3,170,539	)		557,356,253
Service		1,067,869,776		9.07		(38,517,398	)		1,029,352,378
Others		604,218,096		5.13		(1,580,587	)		602,637,509
Individuals		2,941,709,421		24.98		(6,513,007	)		2,935,196,414

		11,776,085,928		100.00		(232,619,682	)		11,543,466,246


	2023
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Financial service		4,601,607,375		43.44		(52,571,064	)		4,549,036,311
Manufacturing		492,500,481		4.65		(4,293,484	)		488,206,997
Service		1,393,752,994		13.16		(105,495,264	)		1,288,257,730
Others		708,977,886		6.69		(6,697,070	)		702,280,816
Individuals		3,397,169,142		32.06		(6,005,060	)		3,391,164,082

		10,594,007,878		100.00		(175,061,942	)		10,418,945,936

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(b) Deposits, Securities (except equity instruments) and Derivatives

Most of deposits, securities (except equity instruments) and derivatives, before considering collaterals and other credit reinforcements, are concentrated in securities issued in Korea. The details of the Group’s securities (except equity instruments) by industry as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Amount		Ratio (%)		Allowances			Carrying amount
Deposits measured at amortised cost
Banking and insurance		2,540,156,180		100.00		(738,213	)		2,539,417,967

		2,540,156,180		100.00		(738,213	)		2,539,417,967

Securities at FVTPL
Government and government funded institutions		13,578,873,618		39.70		—			13,578,873,618
Banking and insurance		11,270,347,932		32.95		—			11,270,347,932
Others		9,353,587,907		27.35		—			9,353,587,907

		34,202,809,457		100.00		—			34,202,809,457

Derivatives financial assets
Government and government funded institutions		1,436,669		0.10		—			1,436,669
Banking and insurance		1,347,178,446		96.63		—			1,347,178,446
Others		45,588,586		3.27		—			45,588,586

		1,394,203,701		100.00		—			1,394,203,701

Securities at FVOCI
Government and government funded institutions		2,108,565,891		41.11		—			2,108,565,891
Banking and insurance		1,767,614,427		34.47		—			1,767,614,427
Others		1,252,342,610		24.42		—			1,252,342,610

		5,128,522,928		100.00		—			5,128,522,928

		43,265,692,266				(738,213	)		43,264,954,053


	2023
(in thousands of Korean won)	Amount		Ratio (%)		Allowances			Carrying amount
Deposits measured at amortised cost
Banking and insurance		2,312,607,032		100.00		(290,229	)		2,312,316,803

		2,312,607,032		100.00		(290,229	)		2,312,316,803

Securities at FVTPL
Government and government funded institutions		12,120,547,410		35.16		—			12,120,547,410
Banking and insurance		10,979,530,283		31.85		—			10,979,530,283
Others		11,374,398,394		32.99		—			11,374,398,394

		34,474,476,087		100.00		—			34,474,476,087

Derivatives financial assets
Government and government funded institutions		2,343,222		0.21		—			2,343,222
Banking and insurance		1,095,977,872		96.26		—			1,095,977,872
Others		40,171,797		3.53		—			40,171,797

		1,138,492,891		100.00		—			1,138,492,891

Securities at FVOCI
Government and government funded institutions		1,619,519,950		37.92		—			1,619,519,950
Banking and insurance		1,524,865,892		35.71		—			1,524,865,892
Others		1,125,933,195		26.37		—			1,125,933,195

		4,270,319,037		100.00		—			4,270,319,037

		42,195,895,047				(290,229	)		42,195,604,818

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.5 Credit Quality of Financial Assets

(a) Loans

The credit quality of loans measured at amortised cost and loans measured at fair value through profit or loss as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying Credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying Credit loss model				Total
Loans measured at amortised cost 1
Corporates
Grade 1		4,388,199,086		—		—		—		—		4,388,199,086
Grade 2		2,599,570,638		15,388,889		—		—		—		2,614,959,527
Grade 3		21,023,545		644,666,419		—		—		—		665,689,964
Grade 4		42,091,180		108,462,000		—		—		—		150,553,180
Grade 5		—		—		77,351,386		—		—		77,351,386

		7,050,884,449		768,517,308		77,351,386		—		—		7,896,753,143

Retails
Grade 1		2,933,509,136		—		—		—		—		2,933,509,136
Grade 2		252,574		—		—		—		—		252,574
Grade 3		—		—		—		—		—		—
Grade 4		1,434,704		—		—		—		—		1,434,704
Grade 5		—		—		6,513,007		—		—		6,513,007

		2,935,196,414		—		6,513,007		—		—		2,941,709,421

Loans measured at FVTPL
Corporates
Grade 1		—		—		—		—		937,623,364		937,623,364
Grade 2		—		—		—		—		—		—
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—

		—		—		—		—		937,623,364		937,623,364

		9,986,080,863		768,517,308		83,864,393		—		937,623,364		11,776,085,928

1	The amounts disclosed in above table are before deduction of allowances


	2023
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying Credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying Credit loss model				Total
Loans measured at amortised cost 1
Corporates
Grade 1		3,673,505,603		—		—		—		—		3,673,505,603
Grade 2		3,106,825,830		619,543		—		—		—		3,107,445,373

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December 31, 2024 and 2023


Grade 3	61,467,462	107,490,000	—	—	—	168,957,462
Grade 4	39,278,916	148,024,000	—	—	—	187,302,916
Grade 5	—	—	59,627,382	—	—	59,627,382

	6,881,077,811	256,133,543	59,627,382	—	—	7,196,838,736

Retails
Grade 1	3,389,391,956	—	—	—	—	3,389,391,956
Grade 2	321,798	—	—	—	—	321,798
Grade 3	—	—	—	—	—	—
Grade 4	1,450,328	—	—	—	—	1,450,328
Grade 5	—	—	6,005,060	—	—	6,005,060

	3,391,164,082	—	6,005,060	—	—	3,397,169,142

Loans measured at FVTPL
Corporates
Grade 1	—	—	—	—	235,977	235,977
Grade 2	—	—	—	—	—	—
Grade 3	—	—	—	—	—	—
Grade 4	—	—	—	—	—	—
Grade 5	—	—	—	—	—	—

	—	—	—	—	235,977	235,977

	10,272,241,893	256,133,543	65,632,442	—	235,977	10,594,243,855

1	The amounts disclosed in above table are before deduction of allowances


Ranges	Corporates	Retails
Grade 1	AAA ~ BBB+	1 ~ 5 grade
Grade 2	BBB ~ BB	6 ~ 8 grade
Grade 3	BB- ~ B	9 ~ 10 grade
Grade 4	B- ~ CCC	11 grade
Grade 5	Below CC	Below 12 grade

The effect of measured credit risk which is released due to enhancement of collateral and other credit supplements secured for loans as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying Credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying Credit loss model				Total
Guarantee		23,488,801		—		—		—		—		23,488,801
Real estate		242,619,244		92,237,004		290,222		—		—		335,146,470
Securities		8,083,758,642		2,258,741		—		—		752,340,997		8,838,358,380

		8,349,866,687		94,495,745		290,222		—		752,340,997		9,196,993,651


	2023
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying Credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying Credit loss model				Total
Guarantee		10,048,992		—		—		—		—		10,048,992
Real estate		385,610,364		27,958,078		1,037,278		—		—		414,605,720
Securities		7,553,968,485		600,370		—		—		—		7,554,568,855

		7,949,627,841		28,558,448		1,037,278		—		—		7,979,223,567

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(b) Securities (debt instruments)

The credit quality of securities (debt instruments) as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model				Total
Financial assets at FVOCI 1
Grade 1		4,711,912,740		—		—		—		—		4,711,912,740
Grade 2		416,610,187		—		—		—		—		416,610,187
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—

		5,128,522,927		—		—		—		—		5,128,522,927

1	Before deduction of allowances


	2023
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model				Total
Financial assets at FVOCI 1
Grade 1		4,032,611,482		—		—		—		—		4,032,611,482
Grade 2		237,707,555		—		—		—		—		237,707,555
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—

		4,270,319,037		—		—		—		—		4,270,319,037

1	Before deduction of allowances

The Group’s standard for credit quality of securities(except equity investments) linked to credit rating presented by 3rd party credit rating institutions is as follows.

Domestic

Foreign

Credit

Quality

KIS

NICE

FnPricing

S&P

Fitch-IBCA

Moody’s

Grade 1

AA0 to AAA

A- to AAA

A3 to Aaa

Grade 2

A-To AA-

A- To AA-

BBB- to BBB+

Baa3 to Baa1

Grade 3

BBB0 to BBB+

BB to BB+

Ba2 to Ba1

Grade 4

BB0 to BBB-

B+ to BB-

B1 to Ba3

Grade 5

Below BB-

Below B

Below B2

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The classification of credit quality for debt instruments in Korean won is based on lowest credit rating among the one of three domestic credit rating institutions and the classification of credit quality for debt instruments in foreign currency is based on lowest credit rating among the one of three foreign credit rating institutions.

The credit quality of deposits as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Deposits measured at amortised cost 1
Grade 1		2,540,156,180		—		—		—		2,540,156,180
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		2,540,156,180		—		—		—		2,540,156,180

1	Before deduction of allowances


	2023
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Deposits measured at amortised cost 1
Grade 1		2,312,607,032		—		—		—		2,312,607,032
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		2,312,607,032		—		—		—		2,312,607,032

1	Before deduction of allowances

The Group’s standard for credit quality of deposits is same as the one of debt securities.

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December 31, 2024 and 2023

(d) Commitments

The credit quality of commitments as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Guaranteed payment and commitment
Grade 1		663,275,523		—		—		—		663,275,523
Grade 2		1,100,207,671		911,111		—		—		1,101,118,782
Grade 3		84,500,179		49,243,753		—		—		133,743,932
Grade 4		514,287,729		20,059,679		—		—		534,347,408
Grade 5		—		—		—		—		—

		2,362,271,102		70,214,543		—		—		2,432,485,645


	2023
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Guaranteed payment and commitment
Grade 1		680,456,667		—		—		—		680,456,667
Grade 2		1,434,390,763		12,713,791		—		—		1,447,104,554
Grade 3		42,688,444		37,710,000		—		—		80,398,444
Grade 4		416,318,854		6,313,337		—		—		422,632,191
Grade 5		—		—		—		—		—

		2,573,854,728		56,737,128		—		—		2,630,591,856

(e) Other receivables from securities transactions

Among loan and receivables which are classified as other financial assets, other receivables from securities transactions, as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Other receivables related to proprietary trading		209,127,588		227,167,398
Other receivables related to brokerage transactions		1,652,090,991		2,917,552,941

The Group recognizes receivables and payables between Korea Exchange (Clearing and Settlement Organization) and customers regarding securities brokerage transactions on the trade date. The Group is exposed to credit risks between the trade date and settlement date (generally less than two business days from the trade date) relating to investment brokerage business, which is standardized by related regulations. As a central counterparty, Korea Exchange mitigates the payment default risk by managing collective fund for default loss, and the Group mitigates customer default risk through margin requirements system. Also, if the customers can not pay by the settlement date, the Group can collect the receivables through covering. Therefore, credit risk that the Group actually bears is linked to the price fluctuation risk of securities between the trade date and the settlement date.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

In addition, related to standardized investment trading of securities, the Group recognizes the on-the-counter transactions on the Korea Exchange, the clearing and settlement institution, and over-the-counter transactions with the customer on the date which the sales contract is signed for the assets and liabilities. Accordingly, the Company is exposed to the risk of price fluctuation risk and credit risk of the securities subject to trading during the period between the date of execution of the sales contract and the settlement date.

38.3 Liquidity Risk

38.3.1 Overview of Liquidity Risk

Liquidity risk is the risk of insolvency or loss due to a disparity between the inflow and outflow of funds, unexpected outflow of funds, and obtaining funds at a high price or disposing of securities at an unfavorable price due to lack of available funds. The Group manages its liquidity risk through analysis of the contractual maturity of all financial assets, liabilities and off-statement of financial position items such as commitments and financial guarantee contracts. The Group discloses them by maturity groups: Up to one month, between over one month and three months, between over three months and twelve months, between over one year and five years, and over five years.

38.3.2 Liquidity Risk Management Policy

The Group has established an appropriate liquidity risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Meanwhile, additional details of unused funding arrangement to reduce liquidity risk that the Group holds at its discretion are discussed in Note 41.

38.3.3 Analysis on Remaining Contractual Maturities of Financial Liabilities

Cash flows disclosed for the maturity analysis are undiscounted contractual principal and interest to be received (paid) and, thus, differ from the amount in the financial statements which is based on the present value of expected cash flows in some cases.

The remaining contractual maturities of financial liabilities as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	On demand		Up to one month		One to three months		Three to 12 months		12 months to five years		More than five years		Total
Financial liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		—		—		—		2,558,520,223
Financial liabilities designated at FVTPL 1		8,010,047,059		—		—		—		—		—		8,010,047,059
Derivatives (trading) 2		1,919,915,454		—		—		—		—		—		1,919,915,454
Derivatives (hedge)		—		—		—		4,309,200		—		—		4,309,200
Deposit liabilities 3		7,725,858,827		—		—		—		—		—		7,725,858,827
Borrowings		10,611,705,622		7,715,085,405		2,850,887,493		9,780,216,826		2,876,120,052		20,323,297		33,854,338,694
Other financial liabilities		17,893,430		1,927,935,637		7,749,439		28,071,301		86,844,309		3,954,341		2,072,448,458
Guaranteed payments and commitment 4		2,432,485,645		—		—		—		—		—		2,432,485,645

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

1	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on demand’ because derivatives-linked securities are subject to early settlement.

2	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in understanding the cash flow timing of the derivatives

3	Deposits that are contractually repayable on demand or on short notice are classified as ‘on demand’ category.

4	With respect to the guaranteed payments and commitments, the amounts included above, which the Group might pay at maximum based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.


	2023
(in thousands of Korean won)	On demand		Up to one month		One to three months		Three to 12 months		12 months to five years		More than five years		Total
Financial liabilities
Financial liabilities at FVTPL		2,860,033,642		—		—		—		—		—		2,860,033,642
Financial liabilities designated at FVTPL 1		7,975,847,458		—		—		—		—		—		7,975,847,458
Derivatives (trading) 2		1,810,865,351		—		—		—		—		—		1,810,865,351
Derivatives (hedge)		—		5,307,120		—		—		—		—		5,307,120
Deposit liabilities 3		7,122,595,110		—		—		—		—		—		7,122,595,110
Borrowings		10,669,556,820		7,741,913,669		2,396,282,276		7,926,486,695		2,240,516,466		21,260,145		30,996,016,071
Other financial liabilities		16,792,892		3,635,476,628		6,950,761		25,229,834		89,729,147		2,013,759		3,776,193,021
Guaranteed payments and commitment 4		2,630,591,856		—		—		—		—		—		2,630,591,856

1	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on demand’ because derivatives-linked securities are subject to early settlement.

2	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in understanding the cash flow timing of the derivatives

3	Deposits that are contractually repayable on demand or on short notice are classified as ‘on demand’ category.

4	With respect to the guaranteed payments and commitments, the amounts included above, which the Group might pay at maximum based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.

38.4 Market Risk

38.4.1 Overview of Market Risk

Market risk refers to the risk that the value of a position held by the Group may fluctuate due to price fluctuations of market factors such as stock, interest rates, foreign exchange rates, commodity and others.

Market risk is daily managed by establishing the limitations considering products’ natures such as position limitations, loss limitations, VaR limitations, sensitivity limitations (duration, delta, gamma, vega, others) and others. Relevant business procedures are processed by written regulations and guidelines.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.4.2 Value at Risk (“VaR”)

The Exposure to market risk is measured by the Value at Risk (VaR). VaR is the potential loss that can occur in the holding position when the market price moves in an adverse direction within a given confidence level for a given holding period in the normal market.

Historical simulation model is used to calculate 10days VaR. Historical simulation model is based on past changes of market variables without assuming a specific probability distribution.

The Group uses the 10-day return of the past two-year time series of the asset risk factor and uses the 99% confidence level of the two-year time series of the portfolio. 10days VaR that is under 99% of confidence level that the Group uses reflects daily losses do not exceed the reported VaR with 99% chance.

The average, minimum and maximum amount of the Group’s VaR (99%, 10 days) as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Average		Maximum		Minimum		December 31, 2024
Total VaR		32,714,101		52,796,377		15,391,508		31,000,920


	2023
(in thousands of Korean won)	Average		Maximum		Minimum		December 31, 2023
Total VaR		41,016,817		74,963,467		16,665,793		37,039,843

38.4.3 Risk Management by Market Risk Factors

The Group’s market risk is comprised of interest rate risk, foreign exchange rate risk and stock price risk.

(a) Stock price risk

Stock price risk arises from the Group’s foreign currency stocks and Korean won stocks.

Hedging instruments of Equity Linked Security and Equity Linked Warrant comprise most of stock trading portfolio and certain security proprietary trading is composed of trading securities on the exchange, futures contracts maturing in a month or two, and others under the restriction of position limitation, sale at loss, loss limitation, and others. Marketable stocks among non-trading positions and stock beneficiary certificates are included in stock price risk as market VaR is computed.

Risk Management Council allocates position and loss limitations, and risk management department monitors asset management department’s possible breach of limitations and other special matters on a daily basis.

(b) Interest rate risk

Trading position interest rate risk usually arises from debt instruments denominated in Korean won. The Group’s trading strategy is to benefit from short-term movements in the prices of debt instruments arising from changes in interest rates.

The product prices of the Group’s trading accounts are disclosed daily. The risks related to trading accounts are managed by using market price based method such as market VaR and sensitivity analysis.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Foreign exchange rate risk arises through ownership of assets and liabilities, denominated in currencies other than Korean won, from non-trading positions, or through foreign currency forward contracts, currency swaps and foreign currency trading securities.

The Group computes foreign currency position’s net position regularly to follow the Regulation on Financial Investment Business and reports it to the supervisory body.

Also, the Group manages the risk for total position exposed to foreign exchange rate including non-trading position by using market price base method such as market VaR and sensitivity analysis.

38.5 Operational Risk

38.5.1 Concept

The Group defines operational risk to the extent of financial risk and non-financial risk incurred by unreasonable or wrong internal process, labor, system and external incidents.

38.5.2 Operational Risk Management

The purpose of operational risk management is to control activity through continuous improvement of internal controls, performing proactive preventive control, proliferation of culture of risk management by establishing internal control that could respond quickly against change of business environment. OMRS (Operational Risk Management System supports performing overall risk management such as recognition of operational risk, evaluation and monitoring. Periodically, through RCSA (Risk Control Self Assessment), management of KRI (Key Risk Indicator), management of data loss and related preparation of countermeasures, it controls the risks in advance, as well as collecting data for future advanced management method.

38.6 Capital Management

Main purpose of the capital risk management of the Group is optimizing use of capital and sustaining healthy financial status in order to maximize shareholder value. The Group has performed capital risk management through estimating net capital ratio based on ‘Capital Market and Financial Investment Business Act’, enforced in February 2009.

Net capital ratio is the net capital minus the total risk amount divided by the essential equity to sustain per each business unit. [(Net capital – total risk amounts) / essential equity to sustain per each business unit]. This formula is calculated based on the financial statements amount.

The net capital is calculated by subtracting deductible items from and including additional item to financial investor’s net asset (asset-liability) as at date. The deductible item refers any asset that is difficult to be converted into cash immediately such as property, plant and equipment. The additional item includes any item recorded as liability without redemption obligation, internal reserves against future losses, items redeemable in kind and items that function as complemental capital.

Total amount of risk is quantification of all of possible losses from operation of business as a financial investor. Total amount of risk is comprised of the following ; market risks which quantify the possible losses due to fluctuation of stock price, interest rate, and exchange rate of the securities held by the investment firms ; credit risks which are the possible losses due to the breach of contract by the counterparties ; operation risks which are the possible losses due to accidents, errors, illegal conduct, and any other potential losses from deteriorated operation condition.

According to the Financial Investment Act, the regulation requires that net capital ratio must be maintained above 100% for the appropriation of the capital and it is required to improve the management if the financial investment firm does not meet the regulation for the net capital ratio.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

39. Offsetting Financial Assets and Financial Liabilities

The Group enters into International Derivatives Swaps and Dealers Association (“ISDA”) master netting agreements or similar agreement with the Group’s derivative counterparties. The Group also enters into repurchase agreements and securities borrowing and lending agreements similar to the master netting agreement for derivatives. Master netting agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be offset for accounting and risk management purposes.


	2024
(in thousands of Korean won)	Gross amount		Offset amount		Net amounts presented in the statement of financial position		Amounts not offset				Net amount
(in thousands of Korean won)	Gross amount		Offset amount				Recognized financial instruments		Cash collateral		Net amount
Financial assets
Derivatives assets, others 1		1,390,150,719		—		1,390,150,719		1,114,549,100		193,074,080		82,527,539
Securities purchased under reverse repurchase agreements		2,091,017,404		—		2,091,017,404		2,091,017,404		—		—
Other receivables 4		1,669,975,970		1,652,694,935		17,281,035		—		—		17,281,035
Other receivables (Payment and settlement)		136,966,708		123,672,076		13,294,632		—		—		13,294,632

		5,288,110,801		1,776,367,011		3,511,743,790		3,205,566,504		193,074,080		113,103,206

Financial liabilities
Derivatives liabilities, others 1		2,902,445,355		—		2,902,445,355		2,676,007,223		76,853,200		149,584,932
Securities sold under reverse resale agreements 2		9,419,893,685		—		9,419,893,685		9,419,893,685		—		—
Securities sold 3		2,558,520,223		—		2,558,520,223		2,558,520,223		—		—
Other payables 4		1,740,843,763		1,652,694,935		88,148,828		—		—		88,148,828
Other payables (Payment and settlement)		123,672,076		123,672,076		—		—		—		—

		16,745,375,102		1,776,367,011		14,969,008,091		14,654,421,131		76,853,200		237,733,760

1	Both derivatives (trading) and derivatives (hedge) are included.

2	Securities sold under reverse resale agreements to the customers is included.

3	Securities sold is from securities borrowing and lending agreement.

In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the Group is included. However, receivables of 1,559,621 million and payables of 1,453,720 million arising from same-day trans actions between customers and the Group are excluded.


	2023
(in thousands of Korean won)	Gross amount		Offset amount		Net amounts presented in the statement of financial position		Amounts not offset				Net amount
(in thousands of Korean won)	Gross amount		Offset amount				Recognized financial instruments		Cash collateral		Net amount
Financial assets
Derivatives assets, others 1		1,267,721,660		—		1,267,721,660		915,298,245		190,995,439		161,427,976
Securities purchased under reverse repurchase agreements		1,369,600,000		—		1,369,600,000		1,369,600,000		—		—
Other receivables 4		2,840,390,529		2,819,519,085		20,871,444		—		—		20,871,444
Other receivables (Payment and settlement)		29,104,287		29,104,287		—		—		—		—

		5,506,816,476		2,848,623,372		2,658,193,104		2,284,898,245		190,995,439		182,299,420

Financial liabilities
Derivatives liabilities, others 1		2,529,883,307		—		2,529,883,307		2,324,932,716		75,881,703		129,068,888
Securities sold under reverse resale agreements 2		9,036,097,623		—		9,036,097,623		9,036,097,623		—		—
Securities sold 3		2,860,033,642		—		2,860,033,642		2,860,033,642		—		—
Other payables 4		3,042,547,000		2,819,519,085		223,027,915		—		—		223,027,915
Other payables (Payment and settlement)		47,550,049		29,104,287		18,445,762		—		—		18,445,762

		17,516,111,621		2,848,623,372		14,667,488,249		14,221,063,981		75,881,703		370,542,565

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

1	Both derivatives (trading) and derivatives (hedge) are included.

2	Securities sold under reverse resale agreements to the customers is included.

3	Securities sold is from securities borrowing and lending agreement.

4	In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the Group is included.

40. Lease

40.1 As a lessee

(a) The amounts recognized in the consolidated statement of financial position

The amounts related to lease recognized in the consolidated statement of financial position as at December 31, 2024 and 2023, are as follows;


(in thousands of Korean won)	2024		2023
Right-of-use assets 1
Buildings		78,361,559		66,674,422
Vehicles		1,558,387		1,690,836
Others		1,651,891		2,396,393

		81,571,837		70,761,651

Lease liabilities		110,565,256		108,095,746

1	The amount is included in property and equipment in the consolidated statement of financial position.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(b) The amounts recognized in the consolidated statement of profit or loss

The amounts related to lease recognized in the consolidated statement of profit or loss for the year ended December 31, 2024 and 2023, are as follows


(in thousands of Korean won)	2024		2023
Depreciation of the right-of-use assets
Buildings		25,889,842		24,399,773
Vehicles		1,326,898		1,334,079
Others		1,036,927		1,012,585

		28,253,667		26,746,437

Interest income from lease receivables (included in financial income)		779,142		935,219
Interest expense to lease liabilities (included in financial cost)		4,291,797		4,881,474
Lease payment for leases for which the underlying asset is of low value (included in administrative expenses, not-including lease for short-term period)		248,493		265,317
Variable lease payments which are not included in the measurement of lease liabilities (included in administrative expenses)		147,052		164,326

The total cash outflows for leases in 2024 and 2023 are 37,734 million and 34,842 million, respectively.

40.2 As a Lessor

(a) Financial Lease

As at December 31, 2024 and 2023, total investment on financial lease and present value of minimum lease payments and unrealized interest income of financial lease are as follows:


(in thousands of Korean won)	2024		2023
Total Investment on lease		23,129,979		29,544,593
Net Investment on lease		21,923,504		27,558,977
Present value of minimum lease payments		21,923,504		27,558,977
Unrealized interest income		1,206,474		1,985,616

(b) Operating Lease

As at December 31, 2024 and 2023, future minimum lease receipts expected under non-cancellable lease contracts are as follows:


(in thousands of Korean won)	2024		2023
Within 1 year		12,069,349		21,912,566
1 - 5 years		43,145,853		84,869,305
Over 5 years		2,871,151		16,464,702

		58,086,353		123,246,573

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41. Contingent Liabilities and Commitments

As at December 31, 2024 and 2023, the Group is involved in pending lawsuits, as follows:


	2024				2023
(in thousands of Korean won)	Number of lawsuits		Amount		Number of lawsuits		Amount
Defendant		44		203,538,599		43		229,543,768
Plaintiff		16		236,163,306		18		185,169,852

The Group expects that these lawsuits do not have significant impact on the financial position.

The Group has entered into various agreements with financial institutions as at December 31, 2024 and 2023, as follows:


		Credit line
(in thousands of Korean won)	Financial institution	2024		2023
Overdraft (including daily overdraft)	Kookmin Bank and others		1,265,000,000		1,174,700,000
General loan	Kookmin Bank		40,000,000		40,000,000
Securities underwriting loan	KSFC		600,000,000		600,000,000
Working capital loan (general)	KSFC		475,000,000		475,000,000
Note trading at a discount (general)	KSFC		300,000,000		300,000,000
Note trading at a discount (trust)	KSFC		Limit of subscription deposits		Limit of subscription deposits
Bond dealer’s loan (general)	KSFC		300,000,000		300,000,000
Securities underwriting financing	KSFC		1,710,000,000		1,710,000,000
Committed line	Industrial and Commercial Bank of China, etc		452,746,000		414,258,000
Credit line	VIETCOMBANK and other		894,026,100		806,563,000

The guarantees and various commitment as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Agreement to purchase commercial papers 1		824,171,844		1,287,400,000
Loan agreements		54,000,000		226,650,000
Credit line agreements		903,109,980		529,021,439
LOC and Investment commitments		651,203,821		587,520,417

		2,432,485,645		2,630,591,856

1	According to the above arrangement, the Group holds the asset-backed short-term bonds amounting to 278,820 million and 441,661 million as at December 31, 2024 and 2023, respectively

The Group has been provided with 14,622 million and 10,846 million in guarantees related to provisional attachment and others by Seoul Guarantee Insurance as at December 31, 2024 and 2023, respectively.

The securities in custody as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023		Valuation method
Trustor securities		240,661,735,301		254,103,739,603	Fair value
Saver securities		1,122,794,510		554,135,269	Fair value
Beneficiary securities		41,779,858,329		40,014,012,881	Standard selling price

		283,564,388,140		294,671,887,753

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

As at December 31, 2024, the main lawsuits against the group as a defendant are as follows:


(in thousands of Korean won)	No. of lawsuits	Amount	Contents	Situation of lawsuits
Return of purchase price, etc Unjust gains (Fund in Australia)	3	55,654,983	The Group, as a selling company of qualified investor private equity fund that aims to lend money to corporations (borrowers) investing in apartment rental business for disabled people in Australia, intermediated 326.5 billion of trusts and funds to the individuals and institutional investors. However, the local borrower’s breach of the contract made the fund inoperable and the Group was sued for unjust gains/return of sales price, etc.	1st lawsuit: 3rd trial in progress (1st trial : February 7, 2023. Judgment ordering payment of 29.8 billion in investment principal and delayed interest thereon 2nd trial : January 29, 2024. Judgment ordering payment of 12 billion in investment principal and delayed interest thereon with different conclusion) 2nd lawsuit: 2nd trial in progress (1st trial : February 14, 2024. Judgment ordering payment of 12.2 billion in investment principal and delayed interest thereon) 3rd lawsuit: 2nd trial in progress (1st trial :October 26, 2023. Judgment ordering payment of 8.46 billion in remaining principal and delayed interest on 8.29 billion in principal)

Compensation for damages (Winners Delegated Customer)	1	37,344,678	8 clients who had signed an investment agency contract with Winners Asset Management Co.,LTD. and opened accounts with the company to trade Nikkei 225 options claimed damages from the company, claiming that the short sales that company conducted as a result of increased intraday risk due to the sharp decline in the Nikkei 225 index caused by COVID-19 in August 2020 was illegal.	2nd trial in progress (1st trial : February 2, 2023. Judgment dismissing all plaintiffs’ claims for damages)

Damages and Unjust Gains (Winners Fund Investors)	8	17,411,550	Investors who invested in funds managed by Winners Asset Management Co.,LTD.filed lawsuits against the company, which was an investment broker, claimed compensation for damages or return of unjust gains due to contract cancellation (60 plaintiffs in total)	4 cases: 2nd trial in progress (1st trial : ① September 21, 2023. 80 million of the claim amount of 200 million accepted ② August 22, 2024. the company wins in full ③ September 26, 2024. the company wins in full ④ October 10, 2024. the company wins in full) 4 cases: 1st trial in progress

Damages (Winners counterclaim)	1	16,999,619	Winners Asset Management Co.,LTD., which had been trading Nikkei 225 options by opening accounts in the company and under the fund’s name, claimed that the short selling was illegal and filed a counterclaim against the company (filed in the form of a counterclaim in the lawsuit filed by the company against Winners Asset Management Co.,LTD. for receivables, etc.) after suffering short selling due to increased intraday risk following the plunge in the Nikkei 225 index caused by COVID-19 in late February 2020.	3rd trial in progress (1st trial : January 19, 2023. Judgment dismissing all claims of Winners Asset Management Co.,LTD. 2nd trial: January 26, 2024. Judgment accepting 30% (7.46 billion) of Winners Asset Management Co.,LTD.‘s claims)

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


Unjust Gains (Lime Fund)	3	27,999,041	Regarding Lime AI Star Funds 1, 2, and 3 sold by the company, investors claimed that the company deceived investors into selling the funds despite being aware of their insolvency, and that the company violated the duty to explain, the principle of suitability, and the prohibition of unfair solicitation by not providing sufficient explanations about the products during the sales process, contrary to what was stated in the proposal, and claim compensation (Total 3 cases, one case for each fund).	No. 1, 2: Scheduled to be decided after the second trial verdict on the Lime Fund-related criminal lawsuit No. 3: 2nd trial in progress (1st trial : February 16, 2024. Judgment ordering payment of 35% of the plaintiff’s claim amount and interest on the amount)

Damages and Unjust Gains (TA_DLS Trust)	6	10,284,532	Investors who invested in KB able DLS Trust (a specific money trust that includes derivative linked securities linked to TA-OPAL Fund, which TransAsia Management invests in trade finance loan receivables) argued that the company’s sales staff misleaded that the principal was guaranteed by an insurance company’s guarantee, and claimed the return of unjust gains by the cancellation of the contract due to the error.	1st trial In progress


Unjust Gains (Heritage Banzaran DLS)	1	13,051,600	The company provided false information about the business capabilities of the operator (GPG), etc., thereby causing the plaintiff to misunderstand the key investment conditions of the DLS in this case. Therefore, the plaintiff requested to cancel the acquisition contract for the DLS in this case due to the mistake and claimed the return of the acquisition price of the DLS in this case and the delay damages as unjust gains.	1st trial In progress

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

42. Related Party Transactions

KB Financial Group Inc. owns 100% of ordinary shares of the KB Securities Co., Ltd. as at December 31, 2024 and 2023.

Significant balances and transactions, excluding loan and borrowing transactions, with related parties as at December 31, 2024 and 2023, are as follows:

(a) Receivables and payables


(in thousands of Korean won)	2024				2023
	Receivables		Payables		Receivables		Payables
The Parent Company
KB Financial Group Inc.		—		100,482,725		1,117		92,199,986
Others
Kookmin Bank		148,169,617		92,559,065		90,762,078		79,190,436
KB Asset Management Co., Ltd.		—		34,401		1,489		28,969
KB Real Estate Trust Co., Ltd.		—		417		—		371
KB Investment Co., Ltd.		848,476		165		649,679		124
KB Credit Information Co., Ltd.		—		—		—		88
KB Data System Co., Ltd.		925,927		331,681		251,014		15,917
KB Kookmin Card Co., Ltd.		455		8,427,724		18,100		7,396,211
KB Savings Bank Co., Ltd.		—		657		—		464
KB Capital Co., Ltd.		1,416,693		2,850,380		670,591		2,644,074
KB Insurance Co., Ltd		6,846,890		92,036,600		14,493,287		54,132,067
KB Life Insurance Co., Ltd.		1,062,706		4,440,280		863,677		919,415
KB Wisestar Private Real Estate Fund Investment Trust No. 1		5,274		—		5,208		—
Other funds		2,413,016		6,875,206		1,630,769		7,325,572

(b) Revenue and expenses


	2024				2023
(in thousands of Korean won)	Revenue		Expenses		Revenue		Expenses
Associates
KBTS Technology Venture Private Equity Fund		174,883		—		324,314		—
KB-SJ Tourism Venture Fund		272,001		—		311,969		—
KB-Brain KOSDAQ Scale-Up Fund 1		—		—		208,627		—
KB SPROTT Renewable Private Equity Fund I		255,062		—		319,739		—
KB-Stonebridge Secondary Private Equity Fund		401,890		—		694,681		—
KB-UTC Inno-Tech Venture Fund		230,269		—		433,897		—
KB-NAU Special Situation Corporate Restructuring Private Equity Fund 1		619,004		—		1,052,494		—
KB Material and Parts No. 1 PEF 1		175,287		—		739,000		—
KB-KTB Technology Venture Fund		341,826		—		668,904		—
KB-GeneN Medical Venture Fund 1		88,800		—		88,800		—
KB-BridgePole Venture Investment Fund 1		100,973		—		772,500		—
KB-Kyobo New Mobility Power Fund 1		75,523		—		78,750		—
KB Special Purpose Acquisition Company No.21		135,842		—		27,540		—
KB Special Purpose Acquisition Company No.22 1		—		—		1,012,571		—
KB-NP Green ESG New Technology Venture Capital Fund		1,133,636		—		1,173,292		—
KB Special Purpose Acquisition Company No.23 1		—		—		—		1,482,766

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2024				2023
(in thousands of Korean won)	Revenue		Expenses		Revenue		Expenses
KB Special Purpose Acquisition Company No.25		—		175,265		1,130,184		—
KB-FT 1st Green Growth Investment Fund		135,639		—		135,338		—
KB Special Purpose Acquisition Company No.26		—		53,795		1,209,221		—
KB-SUSUNG 1st Investment Fund		192,368		—		128,572		—
KB Special Purpose Acquisition Company No.27		—		176,877		3,058,752		—
KB-BridgePole Venture Investment Fund #2		105,000		—		19,849		—
U-KB Credit No.1 Private Equity		970,151		—		227,959		—
KB-SOLIDUS Healthcare Investment Fund		768,198		—		—		—
KB Special Purpose Acquisition Company No.28		1,292,589		—		—		—
KB Special Purpose Acquisition Company No.29		1,735,480		—		—		—
AKK Robotech Valueup New Technology Investment Fund		101,116		—		—		—
KB Special Purpose Acquisition Company No.30		1,620,135		—		—		—
KB-CJ Venture Fund 1st		79,918		—		—		—
KB-SUSUNG 1st Investment Fund		77,518		—		—		—
KB Special Purpose Acquisition Company No.31		2,111,082		—		—		—
KB-Cyrus Tourism Venture Fund		63,627		—		—		—
The Parent Company
KB Financial Group Inc.		778,875		99,196		310,748		57,351
Others
Kookmin Bank		176,460,934		152,374,594		257,270,997		213,899,519
KB Asset Management Co., Ltd.		782		839,780		7,361		663,887
KB Real Estate Trust Co., Ltd.		215,636		937		350,619		23
KB Investment Co., Ltd.		1,666,529		6		1,842,385		8
KB Credit Information Co., Ltd.		—		—		148		5,764
KB Data System Co., Ltd.		8,483		5,749,905		904		987,085
KB Kookmin Card Co., Ltd.		57,063		837,257		204,462		1,022,457
KB Savings Bank Co., Ltd.		23		23		747		134
KB Capital Co., Ltd.		492,222		41,598		408,904		2,786,876
KB Insurance Co., Ltd		6,994,519		56,730,129		20,481,878		89,888,364
KB Life Insurance Co., Ltd.		1,112,355		469,723		1,155,123		299,682
KB Wisestar Private Real Estate Fund Investment Trust No. 1		110,292		—		82,655		—
Other funds		23,588,133		—		22,212,851		2,765,534
Retirement pension		1,230,487		—		926,696		—
The Group
Employees		379,157		—		275,844		—

1	These companies are excluded from related parties during the year ended December 31, 2024 or 2023. The transaction amounts are up to the date of the exclusion.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(c) Significant loan and borrowing transactions with related parties for the years ended December 31, 2024 and 2023 are as follows:


	2024
(in thousands of Korean won)	Accounts	Beginning balance		Increase		Decrease			Other			Ending balance
Associates
KB Special Purpose Acquisition Company No.21	Hybrid bond with securities- like features		2,986,602		—		—			135,842			3,122,444
KB Special Purpose Acquisition Company No.22 1	Hybrid bond with securities- like features		2,984,646		—		—			(2,984,646	)		—
KB Special Purpose Acquisition Company No.23 1	Hybrid bond with securities- like features		1,488,699		—		—			(1,488,699	)		—
KB Special Purpose Acquisition Company No.25	Hybrid bond with securities- like features		2,025,184		—		—			(175,265	)		1,849,919
KB Special Purpose Acquisition Company No.26	Hybrid bond with securities- like features		2,204,221		—		—			(53,795	)		2,150,426
KB Special Purpose Acquisition Company No.27	Hybrid bond with securities- like features		6,053,752		—		—			(176,876	)		5,876,876
KB Special Purpose Acquisition Company No.28	Hybrid bond with securities- like features		—		995,000		—			1,117,589			2,112,589
KB Special Purpose Acquisition Company No.29	Hybrid bond with securities- like features		—		1,490,000		—			1,525,480			3,015,480
KB Special Purpose Acquisition Company No.30	Hybrid bond with securities- like features		—		1,390,000		—			1,445,135			2,835,135
KB Special Purpose Acquisition Company No.31	Hybrid bond with securities- like features		—		2,190,000		—			2,111,082			4,301,082
Others
Kookmin Bank	Deposits 2		383,027,563		—		—			116,655,695			499,683,258
	Borrowings		265,927,798		811,389,573		(955,663,271	)		—			121,654,100
KB Kookmin Card Co., Ltd.	Debt Securities		30,127,334		—		(30,127,334	)		—			—
KB Savings Bank Co., Ltd.	Borrowings		3,000,000		—		(3,000,000	)		—			—
KB Insurance Co., Ltd	Borrowings		70,500,000		—		(70,500,000	)		—			—
KB Capital Co., Ltd.	Borrowings		43,312,000		—		(43,312,000	)		—			—
KB STAR CLASBY 1 st Inc.	Borrowings		72,000,000		—		(72,000,000	)		—			—
Executives	Deposit Liabilities		635,217		283,283		(544,503	)		—			373,997

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

The Group

Employees

Loans to employees

12,587,095

16,252,859

(5,351,154

)

—

23,488,800

1	These companies are not related parties of the Group as at December 31, 2024.

2	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn at any time between related parties are disclosed in net amounts.


	2023
(in thousands of Korean won)	Accounts	Beginning balance		Increase		Decrease			Other			Ending balance
Associates
KB Special Purpose Acquisition Company No.21	Hybrid bond with securities- like features		2,959,063		—		—			27,539			2,986,602
KB Special Purpose Acquisition Company No.22	Hybrid bond with securities- like features		1,972,075		—		—			1,012,571			2,984,646
KB Special Purpose Acquisition Company No.23 1	Hybrid bond with securities- like features		2,971,465		—		—			(1,482,766	)		1,488,699
KB Special Purpose Acquisition Company No.24 1	Hybrid bond with securities- like features		6,975,000		—		(6,975,000	)		—			—
KB Special Purpose Acquisition Company No.25	Hybrid bond with securities- like features		—		895,000		—			1,130,184			2,025,184
KB Special Purpose Acquisition Company No.26	Hybrid bond with securities- like features		—		995,000		—			1,209,221			2,204,221
KB Special Purpose Acquisition Company No.27	Hybrid bond with securities- like features		—		2,995,000		—			3,058,752			6,053,752
Others
Kookmin Bank	Deposits 2		867,537,998		—		—			(484,510,435	)		383,027,563
	Borrowings		142,077,500		1,363,551,123		(1,239,700,825	)		—			265,927,798
KB Kookmin Card Co., Ltd.	Debt Securities		—		30,000,000		—			127,334			30,127,334
KB Savings Bank Co., Ltd.	Borrowings		—		3,000,000		—			—			3,000,000
KB Insurance Co., Ltd.	Borrowings		—		70,500,000		—			—			70,500,000
KB Capital Co., Ltd.	Borrowings		—		47,900,000		(4,588,000	)		—			43,312,000
KB STAR CLASBY 1 st Inc.	Borrowings		—		72,000,000		—			—			72,000,000
KB KBSTAR Money Market Active ETF	Debentures		—		20,000,000		(20,000,000	)		—			—
KB Money Market Active Fund	Debentures		—		6,000,000		(6,000,000	)		—			—
Executives	Deposit Liabilities		1,047,426		512,866		(925,075	)		—			635,217
The Group
Employees	Loans to employees		11,640,893		3,959,599		(3,013,397	)		—			12,587,095

1	These companies are not related parties of the Group as at December 31, 2023.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn at any time between related parties are disclosed in net amounts.

In addition to the above, the balance of hybrid securities held by KB Financial Group Inc., issued by the Group as at December 31, 2024, is 530,000 million (2023 : 530,000 million), and the related dividend payment for the year ended December 31, 2024 is 31,913 million (2023 : 20,763 million).

And the dividend paid by the Group to KB Financial Group Inc., the parent company, through disposal of retained earnings in 2023 during the year ended December 31, 2024 is 150,000 million (2023 : 100,000 million).

Meanwhile, the above financial transactions do not include details of increases or decreases in deposits that occur for business reasons between related parties.

(d) Other transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:


(In thousands of Korean won)	2024
	Contribution		Collection and others
Associates
KB Special Purpose Acquisition Company No.22 1		—		10,000
KB Special Purpose Acquisition Company No.28		5,000		—
KB Special Purpose Acquisition Company No.29		10,000		—
KB Special Purpose Acquisition Company No.30		10,000		—
KB Special Purpose Acquisition Company No.31		10,000		—
KB New Paradigm Agriculture Venture Fund		—		825,000
KB KONEX Market Vitalization Fund		—		75,000
KB-KDBC New Technology Business Investment Fund		—		300,000
KBTS Technology Venture Private Equity Fund		—		704,000
KB-SJ Tourism Venture Fund		—		4,030,000
KB-Stonebridge Secondary Private Equity Fund		—		190,539
KB-UTC Inno-Tech Venture Fund		—		112,500
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		4,482,000		3,889,195
KB Material and Parts No. 1 PEF 1		—		3,400,000
KB Global Commerce Private Equity Investment Fund 1		—		7,000,000
KB-KTB Technology Venture Fund		2,000,000		—
KB Digital Platform Fund		10,000,000		—
KB-SOLIDUS Healthcare Investment Fund		1,300,000		—
KB-BridgePole Venture Investment Fund 1		—		136,000
KB-Kyobo New Mobility Power Fund 1		—		3,000,000
JS Private Equity Fund III		—		754,979
POSITVE Sobujang Venture Fund #1		—		1,120,879
KB-NP Green ESG New Technology Venture Capital Fund		7,920,000		—
LAKEWOOD-AVES Fund No.1 1		—		2,000,000
KB-SUSUNG 1st Investment Fund		—		924,000
Friend 55 New Technology Business Investment Fund 1		—		1,200,000
Bitgoeul Cheomdan Green 1st Co., Ltd.		152,000		—
DSIP-Pharos Bioenergy Fund 1		—		4,000,000
Shinhan-Eco Venture Fund 2nd		225,000		—
2023 JB Newtech No.2 Fund		—		394,443
U-KB Credit No.1 Private Equity		279,070		—
Timefolio Athleisure Investment Fund		4,000,000		—
COMPA Global Scale-Up Fund No.3		1,000,000		—
AKK Robotech Valueup New Technology Investment Fund		1,000,000		—
YG MCE PROJECT No.1 Fund		1,500,000		—
HI YG Win-win Fund No.2		2,000,000		—

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


KB-CJ Venture Fund 1st	1,800,000	—
Elohim-Bilanx aerospace No.1 Fund	2,000,000	—
KB-SUSUNG 1st Investment Fund	2,000,000	—
IMM global Secondary 1-1 Equity Private Fund	2,819,038	—
LIB Material Investment Fund	4,098,144	—
NOVORSEC-SJG Consumer Secondary Fund	1,700,000	—
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	5,059,098	—
KB-Cyrus Tourism Venture Fund	1,000,000	—
IBKS Design Fund	2,000,000	—
NICE DATA INTELLIGENCE VENTURE FUND	1,000,000	—
Pectus Hanwha Fund No.2	2,000,000	—
KB-IMM Newstar Real Estate Private Fund 1	20,897,275	—
G Payment Joint Stock Company	—	1,504,288
Korea Environment Technology Co., LTD	107,427,843	—
Others
KB BMO Senior Loan Private Special Asset Fund 2	—	5,119,216
KB Overseas Investment Private Real Estate Investment Trust No. 22	2,728,938	853,778
KB Global Platform Fund	—	2,540,000
Paramark KB Fund I	2,710,000	—
KB Prime Digital Platform Fund	900,000	—
KB Scale-up Fund No.2	1,500,000	—
KB Global Platform Fund No.2	3,600,000	—
KB Overseas Investment Private Real Estate Investment Trust No. 35	50,535	—
KB North America Jefferies Private Special Asset Investment Trust No.2	38,129	—
KB KBSTAR Money Market Active	10,090,203	81,692,923
KB KBSTAR US Short-Term IG Corporate Bond ETF	—	30,915,000
KB Wise star General Real Estate Fund 22	—	96,145,931
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	372,857	—
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2	64,458	—
KB Apax Global Buyout Fund	2,669,708	—
KB Global Infra Private Special Asset Fund No.6	2,006,602	—
KB Global Senior Loan Private Fund No.1(USD)	5,996,748	—
Startup Korea KB Secondary Fund	1,500,000	—
REKSA DANA VALBURY STABLE GROWTH FUND	—	126,277

1	These companies are not related parties of the Group as at December 31, 2024.


(In thousands of Korean won)	2023
	Contribution		Collection and others
Associates
KB Special Purpose Acquisition Company No.23 1		—		5,000
KB Special Purpose Acquisition Company No.24 1		—		25,000
KB Special Purpose Acquisition Company No.25		5,000		—
KB Special Purpose Acquisition Company No.26		5,000		—
KB Special Purpose Acquisition Company No.27		5,000		—
KBTS Technology Venture Private Equity Fund		—		192,000
KB-Brain KOSDAQ Scale-Up Fund		—		4,950,000
KB-Stonebridge Secondary Private Equity Fund		—		1,989,771
KB-UTC Inno-Tech Venture Fund		—		750,000
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		900,000		1,116,868
December & Company Inc.1		—		1,502,531
KB-KTB Technology Venture Fund		2,000,000		—
KB Digital Platform Fund		8,500,000		—

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


KB-SOLIDUS Healthcare Investment Fund 1	1,283,333	—
KB-BridgePole Venture Investment Fund	—	714,000
SKS-VLP Fund No.2 1	—	1,155,560
KB-NP Green ESG New Technology Venture Capital Fund	4,440,000	—
PEBBLES-MW M·C·E New Technology Investment Fund 1st 1	—	2,000,000
LAKEWOOD-AVES Fund No.1	2,000,000	—
MW-Pyco NewWave New Technology Investment Fund 4th	2,000,000	—
KB-SUSUNG 1st Investment Fund	2,000,000	—
Friend 55 New Technology Business Investment Fund	1,200,000	—
Bitgoeul Cheomdan Green 1st Co., Ltd.	190,000	—
DSIP-Pharos Bioenergy Fund	4,000,000	—
Shinhan-Eco Venture Fund 2nd	1,825,000	—
Leading H2O Fund 1	1,500,000	—
2023 JB Newtech No.2 Fund	1,800,000	—
U-KB Credit No.1 Private Equity	4,813,953	—
KB-BridgePole Venture Investment Fund #2	1,500,000	—
Sirius Silicon Valley I New Technology Fund	500,000	—
Others
KB Multi Alpha Plus Private Fund 1	—	9,660,781
KB BMO Senior Loan Private Special Asset Fund 2	—	3,715,625
KB Overseas Investment Private Real Estate Investment Trust No. 22	5,267,782	878,418
KB Wisestar Private Real Estate Fund Investment Trust No. 1	—	63,331
KB New Deal Innovation Fund	3,200,000	—
Paramark KB Fund I	1,114,000	—
KB Secondary Plus Fund	1,181,000	—
KB Prime Digital Platform Fund	1,575,000	—
KB Scale-up Fund No.2	1,500,000	—
KB Global Platform Fund No.2	3,600,000	—
KB KBSTAR Nov 2023 Term Credit ETF	511,450	11,045,000
KB North America Jefferies Private Special Asset Investment Trust No.1	6,660,127	134,601
KB North America Jefferies Private Special Asset Investment Trust No.2	363,500	14,919
KB KBSTAR Money Market Active ETF	282,331,192	51,217,601
KB Corporation Dollar MMF(USD)	26,440,000	—
KB Wise star General Real Estate Fund 22	101,400,000	3,972,650
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	48	—
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2	9,271	—
PT Bank KB Bukopin Tbk	3,175,200	—
REKSA DANA VALBURY STABLE GROWTH FUND	126,277	—

1	These companies are not related parties of the Group as at December 31, 2023.

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Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(e) Details of guarantees and assets pledged as collateral to related parties as at December 31, 2024 and 2023 are as follows:

- Guarantees


	Limit amount
(in thousands of Korean won)	Details		2024		2023
KB Star Galaxy Towers REIT		Funding replenishment agreement B		40,000,000		40,000,000

- Assets pledged as collateral


(in thousands of Korean won)	Details of assets pledged	2024				2023
	Details of assets pledged	Carrying amount		Collateralized amount		Carrying amount		Collateralized amount
Other related parties
Kookmin Bank	Time deposits and others		173,000,000		167,000,000		173,000,000		167,000,000
	Bonds denominated in Korean won		19,197,211		20,000,000		65,755,400		71,244,339
	Investment Properties		32,449,970		22,992,136		202,633,791		150,600,000
KB Insurance Co., Ltd	Bonds denominated in Korean won		92,936,186		91,962,000		40,354,299		48,000,000

- Assets received as collateral


(in thousands of Korean won)	Details of assets pledged	2024		2023
		Collateralized amount		Collateralized amount
Other related parties
Kookmin Bank	Bonds denominated in Korean won		108,891,000		77,000,000
KB Insurance Co., Ltd	Bonds denominated in Korean won		10,000,000		10,000,000

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

As at December 31, 2024, the Group has 144,362 million (2023 : 157,512 million) of credit line such as loan agreement. And the Group has entered into a CLS (Foreign Exchange Simultaneous Settlement) third-party service agreement with Kookmin Bank Co., Ltd., and according to the related agreement, it can receive intraday liquidity of USD 500 million on the condition of repayment on the settlement date.

(f) Details of unused loan commitments provided to the related parties as at December 31, 2024 and 2023, are as follows:


(In thousands of Korean won)	Details	Amounts
		2024		2023
KB BMO Senior Loan Private Special Asset Fund 2	Purchase agreements of securities		22,616		19,837
KB Global Infra Private Special Asset Fund No.5	Purchase agreements of securities		—		4,999,773
KB Global Infra Private Special Asset Fund No.6	Purchase agreements of securities		2,993,171		4,999,773
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Purchase agreements of securities		2,262,000		6,744,000
KB-KTB Technology Venture Fund	Purchase agreements of securities		—		2,000,000
Paramark KB Fund I	Purchase agreements of securities		2,120,000		4,830,000
KB-SOLIDUS Healthcare Investment Fund	Purchase agreements of securities		1,316,667		2,616,667
KB Digital Platform Fund	Purchase agreements of securities		22,000,000		32,000,000
KB-NP Green ESG New Technology Venture Capital Fund	Purchase agreements of securities		3,900,000		11,820,000
KB Prime Digital Platform Fund	Purchase agreements of securities		1,125,000		2,025,000
KB Scale-up Fund No.2	Purchase agreements of securities		5,500,000		7,000,000
KB Overseas Investment Private Real Estate Investment Trust No. 22	Purchase agreements of securities		7,709,267		8,547,444
KB Global Platform Fund No.2	Purchase agreements of securities		7,800,000		11,400,000
KB North America Jefferies Private Special Asset Investment Trust No.1	Purchase agreements of securities		6,416,289		5,628,002
KB North America Jefferies Private Special Asset Investment Trust No.2	Purchase agreements of securities		337,699		296,211
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	Purchase agreements of securities		727,095		999,952
U-KB Credit No.1 Private Equity	Purchase agreements of securities		24,906,977		25,186,047
KB Wisestar Private Real Estate Fund Investment Trust No. 1	Purchase agreements of securities		19,000		19,000
Shinhan-Eco Venture Fund 2nd	Purchase agreements of securities		450,000		675,000
KB Apax Global Buyout Fund	Purchase agreements of securities		13,069,562		—
KB-CJ Venture Fund 1st	Purchase agreements of securities		4,200,000		—
KB-Cyrus Tourism Venture Fund	Purchase agreements of securities		4,000,000		—

The Group received credit card commitment amounting to 23,000 million(21,000 million as at December 31, 2023) from KB Kookmin Card Co., Ltd. as at December 31, 2024.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(g) Debt instruments purchased or sold via the Group by the related party for the years ended December 31, 2024 and 2023, are as follows.


	2024
(in thousands of Korean won)	Sale		Purchase 1
KB Financial Group Inc.		—		20,000,000
Kookmin Bank		8,981,924,390		8,213,942,162
KB Insurance Co., Ltd		969,601,763		395,133,652
KB Life Insurance Co., Ltd		538,960,937		431,117,063
KB Capital Co., Ltd.		—		220,000,000
KB Kookmin Card Co., Ltd.		—		130,000,000

1	Debt instruments issued by the related parties and purchased by the Group are included.


	2023
(in thousands of Korean won)	Sale		Purchase 1
KB Financial Group Inc.		100,000,000		10,000,000
Kookmin Bank		8,337,914,587		6,100,690,240
KB Insurance Co., Ltd		1,152,899,667		143,965,590
KB Life Insurance Co., Ltd.		306,016,495		194,318,211
KB Capital Co., Ltd.		—		160,000,000
KB Kookmin Card Co., Ltd.		—		140,000,000

1	Debt instruments issued by the related parties and purchased by the Group are included.

(h) The key management includes directors, members of BOD, CFO, person in charge for internal audit and their compensation for the years ended December 31, 2024 and 2023, are as follows.


(in thousands of Korean won)	2024		2023
Salaries		17,868,966		18,416,550
Post-employment benefits		845,549		735,519
Share-based payment		3,374,416		12,581,278

		22,088,931		31,733,347

The Group entered into a shareholder agreement to deliver 17,500 shares of PT Valbury Capital Management, a subsidiary of the Group, to KB Asset Management Co., Ltd., a other special related party. The Group delivered the shares in accordance with the agreement in January 2024 for a consideration of IDR 15,469,240,858, and the subsidiary were excluded from subsidiaries as at December 31, 2024.

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43. Supplemental Cash Flow Information

Adjustments for non-cash items of cash flows from operating activities for the years ended December 31, 2024 and 2023, are as follows.


(in thousands of Korean won)	2024			2023
Interest income		(1,786,484,002	)		(1,763,585,063	)
Interest expenses		1,179,191,195			1,148,794,250
Dividend income and distribution income		(91,056,529	)		(67,110,154	)
Tax expenses		158,272,193			104,733,621
Gains on valuation of financial assets (liabilities) required to be mandatorily measured at FVTPL		(593,355,209	)		(766,492,411	)
Losses on valuation of financial assets (liabilities) required to be mandatorily measured at FVTPL		523,121,917			313,763,388
Gains on valuation of financial assets (liabilities) designated at FVTPL		(138,878,158	)		(453,463,878	)
Losses on valuation of financial assets (liabilities) designated at FVTPL		187,567,451			364,302,519
Gains on valuation of derivative financial assets (liabilities)		(1,224,670,567	)		(1,876,903,032	)
Losses on valuation of derivative financial assets (liabilities)		1,422,207,317			2,088,064,125
Gains or losses on disposal of financial assets at FVOCI		(12,705,258	)		(184,425	)
Provision for allowances for loan losses		54,050,191			138,392,268
Depreciation		56,885,629			60,130,973
Amortization		54,692,261			40,004,759
Foreign currency translations		(137,779,851	)		(16,005,233	)
Others		113,535,980			211,296,719

		(235,405,440	)		(474,261,574	)

Changes in operating assets and liabilities of cash flows for the years ended December 31, 2024 and 2023, are as follows.


(in thousands of Korean won)	2024			2023
Deposits in financial institutions		(41,876,130	)		493,905,437
Financial assets required to be mandatorily measured at FVTPL		(1,121,560,056	)		(5,993,243,435	)
Derivative financial instruments		(329,637,150	)		(127,464,003	)
Loans measured at amortised cost		(142,436,152	)		(1,883,192,001	)
Other assets		1,197,627,263			(1,275,581,520	)
Deposit liabilities		413,778,005			271,682,397
Financial liabilities required to be mandatorily measured at FVTPL		(185,579,133	)		658,321,625
Financial liabilities designated at FVTPL		(21,982,796	)		(2,095,492,105	)
Defined benefit obligation		(22,923,860	)		(21,490,228	)
Securities sold under repurchase agreements		325,265,250			1,401,255,684
Other liabilities		(1,552,482,049	)		1,482,531,066

		(1,481,806,808	)		(7,088,767,083	)

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

Changes in liabilities of cash flows from financing activities for the years ended December 31, 2024 and 2023, are as follows.


	2024
(in thousands of Korean won)	Borrowings			Debentures			Guarantee deposits			Lease liabilities			Others			Total
Beginning balance (net)		22,505,037,220			2,556,301,933			16,255,758			108,095,746			92,117,465			25,277,808,122
Cash Transactions		1,685,010,913			848,655,508			(565,526	)		(46,492,571	)		(32,697,143	)		2,453,911,181
Exchanges in foreign currency		28,537,841			54,036,492			26,348			(485,759	)		—			82,114,922
Changes in consolidation scope		(134,700,620	)		—			—			—			(57,391,789	)		(192,092,409	)
Non-cash transactions		—			(1,302,509	)		162,530			49,447,840			53,061,092			101,368,953

Ending balance(net)		24,083,885,354			3,457,691,424			15,879,110			110,565,256			55,089,625			27,723,110,769


	2023
(in thousands of Korean won)	Borrowings			Debentures		Guarantee deposits		Lease liabilities			Others			Total
Beginning balance (net)		17,465,699,185			1,876,106,274		8,894,337		125,593,239			167,175,011			19,643,468,046
Cash Transactions		5,258,215,771			674,244,571		3,001,964		(35,301,268	)		6,473,096			5,906,634,134
Exchanges in foreign currency		19,056,592			3,440,125		53,802		77,909			—			22,628,428
Changes in consolidation scope		(339,338,546	)		—		—		—			(105,727,887	)		(445,066,433	)
Non-cash transactions		101,404,218			2,510,963		4,305,655		17,725,866			24,197,245			150,143,947

Ending balance(net)		22,505,037,220			2,556,301,933		16,255,758		108,095,746			92,117,465			25,277,808,122

44. Non-cash Transactions

Significant non-cash transactions from investing activities and financing activities which are not included in consolidated statements of cash flows for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Increase due to gains on valuation of financial assets at FVOCI		7,160,042		75,151,108

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

45. Interests in Unconsolidated Structured Entities

Information about interests in unconsolidated structured entities, which the Group does not have control over, including the nature, purpose and activities of the structured entity and how the structured entity is financed, is as follows:


Nature	Purpose	Activities	Method of financing
Asset-backed securitization	• Early cash generation through transfer of securitization assets • Fees earned as services to SPC, such as providing lines of credit and ABCP purchase commitments	• Fulfillment of Asset-backed securitization plan • Purchase and transfer of securitization assets • Issuance and repayment of ABS and ABCP	• Issuance of ABS and ABCP based on securitization assets
Project financing	• Granting PF loans to SOC and real estate • Granting loans to ships/ aircrafts SPC	• Construction of SOC and real estate • Building ships/ construction and purchase of aircrafts	• Loan commitments through Credit Line, providing lines of credit and investment agreements
Trust	Management of financial trusts; • Development trust • General unspecified money trust • Principal non-guaranteed trust	• Development, management, and disposal of trusted real estate assets • Payment of trust fees and allocation of trust profits.	• Sales of financial trusts
Investment funds	• Investment in beneficiary certificates • Investment in PEF and partnerships	• Management of fund assets • Payment of fund fees and allocation of fund profits	• Sales of beneficiary certificate instruments • Investment of managing partners and limited partners

Details of the size of the interest in unconsolidated structured entities and the nature of risks related are as follows:


	2024
(in thousands of Korean won)	Asset-backed securitization		Investment fund		Others		Total
Total assets of unconsolidated structured entities		27,494,499,486		36,922,739,184		1,747,360,472		66,164,599,142
Assets recognized in the consolidated financial statements of the Group
Loans		1,215,820,606		101,876,459		391,718,184		1,709,415,249
Securities		4,527,878,198		1,855,322,317		4,390,000		6,387,590,515
Investments in associates		—		299,527,388		—		299,527,388
Derivative financial assets		7,741,844		4,110,593		—		11,852,437
Other assets		4,153,655		188,710		—		4,342,365

		5,755,594,303		2,261,025,467		396,108,184		8,412,727,954

Liabilities recognized in the consolidated financial statements of the Group
Derivatives financial liabilities		—		—		—		—
Other liabilities		514,822		—		—		514,822

		514,822		—		—		514,822

Maximum exposure to loss
Holding assets		5,755,594,303		2,261,025,467		396,108,184		8,412,727,954
Payment guarantee and loan commitments		611,068,184		528,516,403		—		1,139,584,587

		6,366,662,487		2,789,541,870		396,108,184		9,552,312,541

The way that the maximum exposure to loss is determined		Amount of credit offerings and purchase agreement		Amount of investment commitment		Amount of investment commitment

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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Asset-backed securitization		Investment fund		Others		Total
Total assets of unconsolidated structured entities		18,593,213,479		32,594,673,594		2,870,320,872		54,058,207,945
Assets recognized in the consolidated financial statements of the Group
Loans		1,390,116,859		27,480,000		510,985,485		1,928,582,344
Securities		4,927,704,334		2,056,094,372		4,390,000		6,988,188,706
Investments in associates		—		293,328,998		—		293,328,998
Derivative financial assets		—		882,749		—		882,749
Other assets		5,984,009		111,340		22,937		6,118,286

		6,323,805,202		2,377,897,459		515,398,422		9,217,101,083

Liabilities recognized in the consolidated financial statements of the Group
Derivatives financial liabilities		—		287,751		—		287,751
Other liabilities		1,098,119		—		257,638		1,355,757

		1,098,119		287,751		257,638		1,643,508

Maximum exposure to loss
Holding assets		6,323,805,202		2,377,897,459		515,398,422		9,217,101,083
Payment guarantee and loan commitments		834,204,937		399,767,434		—		1,233,972,371

		7,158,010,139		2,777,664,893		515,398,422		10,451,073,454

The way that the maximum exposure to loss is determined		Amount of credit offerings and purchase agreement		Amount of investment commitment		Amount of investment commitment

148

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Exhibit 99.2

KB SECURITIES CO., LTD.

Separate Financial Statements

December 31, 2024 and 2023

(With Independent Auditor’s Report Thereon)

Table of Contents


	Page(s)

Independent Auditor’s Report		1~3

Separate Financial Statements

Separate Statements of Financial Position		4

Separate Statements of Profit or Loss		5

Separate Statements of Comprehensive Income		6

Separate Statements of Changes in Equity		7

Separate Statements of Cash Flows		8

Notes to the Separate Financial Statements		9~139

Report on Independent Auditor’s Review of Internal Control over Financial Reporting		140-141

Report on the Effectiveness of Internal Control over Financial Reporting		142

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Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of KB Securities Co.,Ltd.

Opinion

We have audited the separate financial statements of KB Securities Co.,Ltd. (the Company), which comprise the separate statements of financial position as at December 31, 2024 and 2023, and the separate statement of profit or loss, separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended, and notes to the separate financial statements, including material accounting policy information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of KB Securities Co.,Ltd. as at December 31, 2024 and 2023, and its separate financial performance and its separate cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

Basis for Opinion

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the separate financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other Matter

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

Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

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Auditor’s Responsibilities for the Audit of the Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 5, 2025

This report is effective as of March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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KB SECURITIES Co., Ltd.

Separate Statements of Financial Position

December 31, 2024 and 2023


(in Korean won)	Notes		2024		2023
Assets
Cash and deposits		5,36,37,38		2,952,551,951,253		2,324,715,993,258
Financial assets at fair value through profit or loss		6,36,37,38		36,753,823,519,333		35,529,339,671,327
Derivative financial assets		7,36,37,38,39		1,395,942,910,151		1,135,196,743,826
Financial assets at fair value through other comprehensive income		8,36,37,38		6,481,713,944,068		5,130,404,163,553
Investments in subsidiaries		9		768,913,285,170		829,678,711,020
Investments in associates		9		244,815,981,444		202,351,826,954
Financial assets measured at amortised cost		10,36,37,38,39		8,100,472,956,531		7,973,604,805,486
Property and equipment		11,40		243,820,525,074		233,444,500,392
Investment properties		12		20,239,722,505		14,104,122,833
Intangible assets		13		241,869,772,994		245,272,071,250
Deferred tax assets		35		81,938,532,931		—
Other financial assets		14,36,37,38,39		2,857,380,118,961		4,076,458,711,184
Other assets		15		173,584,230,752		133,916,481,601

Total assets				60,317,067,451,167		57,828,487,802,684

Liabilities
Deposit liabilities		16,36,37,38		7,744,650,276,148		7,133,908,105,311
Financial liabilities at fair value through profit or loss		6,36,37,38,39		10,568,567,281,885		10,835,881,099,625
Derivative financial liabilities		7,36,37,38,39		1,922,667,377,892		1,812,012,245,454
Borrowings		17,36,37,38,39		30,520,337,600,595		27,393,887,529,785
Net defined benefit liabilities		18		67,888,481,699		61,656,550,036
Deferred tax liabilities35		35		—		17,390,830,857
Provisions		19		137,397,544,569		212,928,230,162
Other financial liabilities		20,36,37,38,39,40		2,294,298,047,391		3,867,868,006,146
Other liabilities		21		381,561,433,870		335,742,937,175

Total liabilities				53,637,368,044,049		51,671,275,534,551

Equity
Share capital		22		1,493,102,120,000		1,493,102,120,000
Hybrid securities		23		756,092,772,000		626,093,392,000
Other paid-in capital		24		1,479,110,085,557		1,479,110,085,557
Retained earnings		25		2,658,003,781,948		2,261,273,077,370
Other components of equity		26		293,390,647,613		297,633,593,206

Total equity				6,679,699,407,118		6,157,212,268,133

Total liabilities and equity				60,317,067,451,167		57,828,487,802,684

The above separate statements of financial position should be read in conjunction with the accompanying notes Separate Statements of Profit or Loss

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KB SECURITIES Co., Ltd.

Years Ended December 31, 2024 and 2023


(in Korean won)	Notes		2024		2023
Operating income
Fee and commission income		27		995,537,172,854		941,083,970,800
Gain on valuation and disposal of financial instruments		28		6,720,923,329,573		7,698,305,925,980
Interest income		29		1,610,651,941,834		1,537,708,874,751
Interest income from financial instruments at FVTPL				839,778,185,014		807,651,309,007
Interest income in applying of effective interest rate				770,873,756,820		730,057,565,744
Gain on valuation and disposal of financial assets measured at amortised costs		30		13,770,336,723		6,954,980,681
Gain on foreign currency transactions		31		1,024,613,462,449		904,841,198,573
Other operating income		32		245,893,137,460		151,312,724,947

				10,611,389,380,893		11,240,207,675,732

Operating expenses
Fee and commission expense		27		212,931,569,896		210,503,255,070
Loss on valuation and disposal of financial instruments		28		6,578,355,851,254		7,448,603,412,691
Interest expense		29		1,065,865,474,972		992,875,403,373
Loss on valuation and disposal of financial assets measured at amortised cost		30		44,480,620,826		60,244,149,651
Loss on foreign currency transactions		31		881,734,131,235		871,907,643,704
Selling and administrative expenses		33		925,849,578,530		854,786,429,423
Other operating expenses		32		148,242,136,982		147,751,375,518

				9,857,459,363,695		10,586,671,669,430

Operating profit				753,930,017,198		653,536,006,302
Non-operating income		34		83,088,361,334		55,610,591,341
Non-operating expenses		34		95,504,150,942		267,692,318,828

Profit before income tax				741,514,227,590		441,454,278,815
Income tax expense		35		159,145,243,061		89,090,738,160

Profit for the year				582,368,984,529		352,363,540,655

The above separate statements of profit or loss should be read in conjunction with the accompanying notes Separate Statements of Comprehensive Income

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KB SECURITIES Co., Ltd.

Years Ended December 31, 2024 and 2023


(in Korean won)	Notes		2024			2023
Profit for the year				582,368,984,529			352,363,540,655

Other comprehensive income(loss)
Items that will not be reclassified to profit or loss
Net gains on valuation of equity instruments at fair value through other comprehensive income		8,26		(1,234,364,827	)		25,351,276,846
Fair value changes on financial liabilities designated at fair value due to own credit risk		6,26		(5,514,924,589	)		(52,863,029,391	)
Remeasurements of the net defined benefit liabilities		18,26		(4,745,765,249	)		(5,014,169,509	)
Revaluation of property and equipment		26		—			84,435,863
Items that may be subsequently reclassified to profit or loss
Net gains(losses) on valuation of debt instrument at fair value through other comprehensive income		8,26		8,677,907,545			30,951,147,161

Other comprehensive income for the year, net of tax				(2,817,147,120	)		(1,490,339,030	)

Total comprehensive income for the year				579,551,837,409			350,873,201,625

The above separate statements of comprehensive income should be read in conjunction with the accompanying notes Separate Statements of Changes in Equity

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KB SECURITIES Co., Ltd.

Years Ended December 31, 2024 and 2023


					Other paid in capital
	Share Capital		Hybrid Securities		Share Premium		Other Equity		Retained Earnings			Other Components of Equity			Total Equity
Balance at January 1, 2023		1,493,102,120,000		506,130,312,000		1,142,353,750,001		336,756,335,556		2,038,072,084,071			299,123,932,236			5,815,538,533,864
Issuance of hybrid securities		—		119,963,080,000		—		—		—			—			119,963,080,000
Dividends of hybrid securities		—		—		—		—		(29,162,547,356	)		—			(29,162,547,356	)
Dividends		—		—		—		—		(100,000,000,000	)		—			(100,000,000,000	)
Total comprehensive income
Profit for the year		—		—		—		—		352,363,540,655			—			352,363,540,655
Other comprehensive income		—		—		—		—		—			(1,490,339,030	)		(1,490,339,030	)
Balance at December 31, 2023		1,493,102,120,000		626,093,392,000		1,142,353,750,001		336,756,335,556		2,261,273,077,370			297,633,593,206			6,157,212,268,133

Balance at January 1, 2024		1,493,102,120,000		626,093,392,000		1,142,353,750,001		336,756,335,556		2,261,273,077,370			297,633,593,206			6,157,212,268,133

Issuance of hybrid securities		—		129,999,380,000		—		—		—			—			129,999,380,000
Dividends of hybrid securities		—		—		—		—		(37,064,078,424	)		—			(37,064,078,424	)
Dividends		—		—		—		—		(150,000,000,000	)		—			(150,000,000,000	)
Replacement due to disposal of equity investments at FVOCI		—		—		—		—		1,425,798,473			(1,425,798,473	)		—
Total comprehensive income
Profit for the year		—		—		—		—		582,368,984,529			—			582,368,984,529
Other comprehensive income		—		—		—		—		—			(2,817,147,120	)		(2,817,147,120	)

Balance at December 31, 2024		1,493,102,120,000		756,092,772,000		1,142,353,750,001		336,756,335,556		2,658,003,781,948			293,390,647,613			6,679,699,407,118

The above separate statements of changes in equity should be read in conjunction with the accompanying notes.

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KB SECURITIES Co., Ltd.

Separate Statements of Cash Flows

Years Ended December 31, 2024 and 2023


(in Korean won)	Notes		2024			2023
Cash flows from operating activities
Cash generated from operating activities
Profit for the year				582,368,984,529			352,363,540,655
Adjustment for non-cash items		43		(212,175,136,823	)		(377,424,311,499	)
Changes in operating assets and liabilities		43		(1,855,957,202,259	)		(6,582,408,219,197	)

				(1,485,763,354,553	)		(6,607,468,990,041	)
Interest received				1,550,443,037,620			1,442,167,452,931
Interest paid				(1,042,793,269,591	)		(958,680,565,750	)
Dividends received				113,413,709,540			74,040,765,112
Income taxes paid				(266,284,033,929	)		(11,576,956,883	)

Net cash used in operating activities				(1,130,983,910,913	)		(6,061,518,294,631	)

Cash flows from investing activities
Decrease in long-term deposit				—			500,000,000,000
Acquisition of financial assets at fair value through other comprehensive income				(5,810,505,707,282	)		(5,622,658,475,953	)
Disposal of financial assets at fair value through other comprehensive income				4,537,441,905,557			5,403,034,985,731
Acquisition of investments of subsidiaries and associates		9		(124,199,902,708	)		(211,817,286,821	)
Disposal of investment of subsidiaries and associates		9		101,621,289,695			125,766,349,941
Acquisition of property and equipment		11		(27,177,227,776	)		(15,705,333,850	)
Acquisition of intangible assets		13		(63,829,037,442	)		(83,213,525,185	)
Disposal of intangible assets		13		11,562,328,808			2,020,704,075
Others				(91,281,928	)		(77,219,607	)

Net cash provided by (used in) investing activities				(1,375,177,633,076	)		97,350,198,331

Cash flows from financing activities
Increase in borrowings		43		1,848,040,493,951			4,754,831,923,405
Issuance of debentures		43		1,700,000,000,000			1,000,000,000,000
Repayment of debentures		43		(810,000,000,000	)		(340,000,000,000	)
Decrease in guarantee deposit liabilities		43		50,069,007			1,071,976,798
Dividends paid		25		(150,000,000,000	)		(100,000,000,000	)
Redemption of principal elements of lease payments		43		(34,529,148,847	)		(31,662,680,098	)
Issuance of hybrid securities		23		129,999,380,000			119,963,080,000
Dividends of hybrid securities		25		(42,652,275,000	)		(25,167,500,000	)

Net cash provided by financing activities				2,640,908,519,111			5,379,036,800,105

Effect of exchange rate changes on cash and cash equivalents				15,979,335,695			(569,201,171	)
Net increase in cash and cash equivalents				150,726,310,817			(585,700,497,366	)

Cash and cash equivalents at the beginning of the year		5		442,169,864,702			1,027,870,362,068

Cash and cash equivalents at the end of the year		5		592,896,175,519			442,169,864,702

The above separate statements of cash flows should be read in conjunction with the accompanying notes Notes to the Separate Financial Statements

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KB SECURITIES Co., Ltd.

December 31, 2024 and 2023

1. The Company

KB Securities Co., Ltd. (the “Company” or “KB Securities”, formerly, Hyundai Securities Co., Ltd.) was established on June 1, 1962, under the name of Kookil Securities Co., Ltd. On June 5, 1986, the Company changed its name to “Hyundai Securities Co., Ltd.”. After several capital increases, the share capital of the Company amounts to 1,493,102 million as at December 31, 2024.

The Company became a wholly owned subsidiary of KB Financial Group Inc. on October 19, 2016, through a comprehensive exchange of shares. At the end of the reporting period, KB Financial Group Inc. owns 100% of ordinary shares of the Company.

Meanwhile, the Company merged with KB Investment & Securities Co., Ltd. (the “KB Investment & Securities”) on December 30, 2016 as a surviving company and changed its name to KB Securities Co., Ltd. As at December 31, 2024, the Company has 80 branch offices in Korea and one overseas branch office.

2. Material Accounting Policies

The material accounting policies applied in the preparation of these separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying separate financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Company’s financial position, financial performance or cash flows, is not presented in the accompanying separate financial statements.

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

The separate financial statements have been prepared on the historical cost basis except for the following items:

•

Certain financial assets and liabilities (including derivatives instruments), certain classes of property, plant and equipment and investment properties measured at fair value

•

Assets held for sale measured at fair value less costs to sell, and

•

Defined benefit obligation and plan assets measured at fair value

The preparation of the separate financial statements requires the use of certain significant accounting estimates. Management also needs to exercise judgement in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the separate financial statements are disclosed in Note 3.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.2 Changes in Accounting Policy and Disclosures

2.2.1 New and amended standards adopted by the Company

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

•

Amendments to Korean IFRS No.1001 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise the right to defer settlement of the liability or the management’s expectations thereof. 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 the liability by the transfer of the entity’s own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. In addition, agreements that the Company must comply with after the end of the reporting period do not affect the classification of the relevant liabilities at the end of the reporting period; further, if liabilities under the agreements with which the company must comply within 12 months after the reporting period are classified as non-current liabilities as of the end of the reporting period, the entity should disclose the risk that the liabilities may be repaid within 12 months after the reporting period. These amendments do not have a significant impact on the financial statements.

•

Amendments to Korean IFRS No.1007 Cash flow statements and Korean IFRS No.1107 Financial Instruments - Disclosure - Disclosure of information of supplier finance Arrangements

•

Amendments to Korean IFRS No.1116 Leases – Lease liabilities arising from sale and leaseback

•

Amendments to Korean IFRS No. 1001 Presentation of Financial Statements –Disclosure of virtual assets

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.2.2 The following amended standards have been published that are not mandatory for December 31, 2024 reporting periods and have not been early adopted by the Company.

•

The amendments require the Company to estimate the exchangeability of the currency, and to disclose information related to the currency not being exchangeable into the other currency with estimation of foreign exchange rates. The amendments should be applied for annual reporting periods beginning on or after January 1, 2025, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

•

Amendments to Korean IFRS No.1109 Financial Instruments and Korean IFRS No.1107 Financial Instruments—Disclosure

The amendments of Korean IFRS 1109, Financial Instruments, and Korean IFRS 1107, Financial Instruments: Disclosure have been made for the purpose of addressing questions raised in practice and reflecting new requirements. The amendments should be applied for annual reporting periods beginning on or after January 1, 2025, and earlier application is permitted. The main amendments are as follows: The Company is in the process of reviewing the impact of these amendments on the financial statements.

•

Allowing financial liabilities to be considered settled (derecognized) through electronic payment systems before the settlement date, if certain criteria are met.

•

Clarifying and adding additional guidance for assessing whether a financial asset meets the criteria for payments of principal and interest only.

•

Additional disclosures for FVOCI-designated equity instruments

•

Annual Improvement of Korean IFRS Volume 11

Annual Improvements to Korean IFRS Volume 11 should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the consolidated financial statements.

•

Korean IFRS No. 1101, First-Time Adoption of Korean IFRS : Application of Hedge Accounting upon First-Time Adoption of K-IFRS

•

Korean IFRS No. 1107, Financial Instruments: Disclosure: Derecognition of Profit and Loss, Guidance on Practice

•

Korean IFRS No. 1109, Financial Instruments: Derecognition of Lease Liabilities and Definition of Transaction Price

•

Korean IFRS No. 1110, Consolidated Financial Statements: Determination of De facto Agent

•

Korean IFRS No. 1007, Cash Flow Statement: Cost Method

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.3 Foreign Currency Translation

(a) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (“the functional currency”). The financial statements are presented in Korean won, which is the Company’s functional and presentation currency.

(b) Transactions and balances

2.4 Investments in Associates and Subsidiaries

The Company has prepared the separate financial statements in accordance with Korean IFRS No.1027, Separate Financial Statements. Investments in associates and subsidiaries are recognized at cost. The Company recognizes dividend income from subsidiaries or associates in profit or loss when its right to receive dividend is established.

2.5 Recognition and Measurement of Financial Instruments

2.5.1 Classification

The Company classifies financial assets as follows.

•

Those to be measured at fair value (through profit or loss or other comprehensive income)

•

Those to be measured at amortised cost

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Company reclassifies debt investments when, and only when its business model for managing those assets changes.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of non-designated equity investment are recognized in profit or loss.

2.5.2 Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

2.5.2.1 Debt instruments

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. The Company classifies its debt instruments into one of the following three measurement categories:

(a) Amortised cost

(b) Fair value through other comprehensive income

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.5.2.2 Equity instruments

Where the Company’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continues to be recognized in profit or loss when the right to receive payments is established.

2.5.3 Impairment

The Company assesses on a forward-looking basis expected credit losses associated with its debt instruments carried at amortised cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value of all cash shortfalls) over the expected life of the financial instrument. The Company measures expected credit losses by reflecting reasonable and supportable information that is reasonably available at the reporting date without undue cost or effort, including information about past events, current conditions and forecasts of future economic conditions.

The Company uses the following three measurement techniques in accordance with Korean IFRS:

•

General approach: for financial assets and off-balance-sheet unused credit line that below two approaches are not applied

•

Simplified approach: for receivables, contract assets and lease receivables

•

Credit-impaired approach: for purchased or originated credit-impaired financial assets

The Company determines whether the credit risk has increased significantly since initial recognition using the following information. One or more of the following circumstances is deemed significant increase in credit risk.

•

More than 30 days past due;

•

Decline in credit rating at period end by more than certain notches as compared to that at initial recognition;

•

Decline in ratings below certain level in the early warning system;

Under simplified approach, the Company shall always measure the loss allowance at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Company shall only recognize the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The Company generally deems credit-impaired in case of one or more of the following circumstances:

•

90 days or more past due;

•

Legal proceedings related to collection;

•

Refinancing;

•

Corporate borrowers that are rated C or D;

•

Debt restructuring.

2.5.3.1 Forward-looking information

The Company uses forward-looking information, when it determines whether the credit risk has increased significantly since initial recognition and measures expected credit losses.

The Company assumes the risk component has a certain correlation with the business cycle, and calculates the expected credit loss by reflecting the forward-looking information with macroeconomic variables on the measurement inputs.

2.5.3.2 Measuring expected credit losses on financial assets at amortised cost

The amount of the expected credit losses on financial assets at amortised cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The Company estimates expected future cash flows for financial assets that are individually significant (individual assessment of impairment).

For financial assets that are not individually significant, the Company collectively estimates expected credit loss by grouping loans with homogeneous credit risk profile (collective assessment of impairment).

•

Individual assessment of impairment

Individual assessment of impairment losses are calculated using management’s best estimate on present value of expected future cash flows. The Company uses all the available information including operating cash flow of the borrower and net realizable value of any collateral held.

•

Collective assessment of impairment

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.5.3.3 Measuring expected credit losses on financial assets at fair value through other comprehensive income

2.5.4 Recognition and Derecognition

Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.

If a transfer does not result in derecognition because the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. The Company classified the financial liability as “borrowings” in the statement of financial position.

The Company writes off the carrying amount and allowance of financial assets in its entirety or to a portion thereof when the principal and interest are determined to be no longer recoverable. In general, the Company considers write-off when it is determined that the debtor does not have sufficient resources or income to cover the principal and interest, and this write-off decision is made in accordance with internal regulations.

2.5.5 Offsetting of financial instruments

2.6 Financial Liabilities

2.6.1 Classification and Measurement

The Company classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortised cost and present as ‘deposits liabilities’, ‘borrowings’, and ‘other financial liabilities’ in the statement of financial position.

2.6.2 Derecognition

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The Company’s financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading. Financial liabilities designated the financial liabilities at fair value through profit or loss is the structured financial liabilities containing embedded derivatives issued by the Company.

2.7 Derivative Financial Instruments

The Company enters into numerous derivative financial instrument contracts such as stock options, stock swaps, interest rate swaps and others for trading purposes or sale and issue of derivative combined securities. These derivative financial instruments are presented as derivative financial instruments within the financial statements irrespective of transaction purpose and subsequent measurement requirement.

2.7.1 Day 1 Profit and Loss

Accordance with Korean IFRS, if there is no available price from active market and if the Company uses a valuation technique that uses unobservable valuation parameters from market for the fair value at initial recognition of financial instruments, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price and the difference is amortised by using the straight line method over the life of the financial instruments.

2.7.2 Credit risk adjustments

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.7.3 Hedge accounting

The accounting treatment of changes of fair value for the derivatives varies as the character of hedging items and the purpose of hedging. The Company holds derivative contracts for the purpose of hedging the risk and the Company designates certain derivatives as hedging instruments to hedge the risk as follows.

(a)	Fair value hedge : a hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment

(b)	Cash flow hedge : a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with all, or a component of, the recognized asset or liability or a highly probable forecast transaction

(c)	Hedge of net investments in foreign operations

On initial designation of the hedge, the Company formally documents the relationship between the hedging instrument(s) and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship.

The fair value of derivatives for hedge is disclosed in note 37.

The accounting treatments of hedge of net investments in foreign operations are similar to those of cash flow hedge.

2.8 Property and Equipment

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


Property and equipment	Estimated useful lives	Depreciation method
Buildings	40 years	Straight-line method
Vehicles	4 years	Straight-line method
Furniture and equipment	4 years	Straight-line method
Other	4 years	Straight-line method
Right-of-use assets	1~10 years (initial date of the contract entered into ~ maturity date)	Straight-line method

2.9 Investment Property

2.10 Intangible Assets

Intangible assets are measured initially at cost and subsequently carried at their cost less any accumulated amortization and any accumulated impairment losses.


Intangible assets	Estimated useful lives	Amortization method
Development costs	4 years	Straight-line method
Software	4 years	Straight-line method

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.11 Impairment of Non-financial Assets

2.12 Lease

Lease income from operating leases where the Company is a lessor is recognized on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the statement of financial position based on their nature.

The Company should assess whether a contract is, or contains a lease at the date the contract entered into and the initial application date under Korean IFRS No.1116. But the Company may elect not to reassess whether a contract is, or contains a lease for the contract entered into before the transition date by applying practical expedient permitted by Korean IFRS No.1116. The Company has gone through all the contract to assess whether the contract is, or contains, a lease at the date the contract entered into after the date of initial application.

Lease liabilities include the net present value of the following lease payments:

•

Fixed payments (including in-substance fixed payments), less any lease incentives receivable

•

Variable lease payment that are based on an index or a rate

•

Amounts expected to be payable by the lessee under residual value guarantees

•

The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

•

Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms and conditions.

Right-of-use assets are measured at cost comprising the following:

•

The amount of the initial measurement of lease liability

•

Any lease payments made at or before the commencement date less any lease incentives received

•

Any initial direct costs incurred by the lessee, and

•

An estimate of restoration costs

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term.

Related to sale and leaseback, the Company (seller-lessee) is required to apply the Korean IFRS No.1115 ‘Revenue from Contracts with Customers’ to determine whether the transfer of an asset is accounted for as a sale of that asset. However, the Company shall not reassess sale and leaseback transactions entered into before the date of initial application.

Large number of lease contracts held by the Company have extension option and termination option. These conditions are generally used for maximizing the flexibility of lease operation in a view of managing the contracts. Extension option or termination option included in the lease contracts are generally owned by the Company, not lessor. The Company re-evaluated the lease term of the lease contracts by taking into account the contract type, operation plan for branch offices, and costs related to lease termination. As a result, no significant change in the existing lease term has occurred.

2.13 Provisions

2.14 Financial Guarantee Contracts

Financial guarantees contracts provided by the Company are initially measured at fair value on the date the guarantee was given. Subsequent to initial recognition, the Company’s liabilities under such guarantees are measured at the higher of the amounts below and recognized as ‘other financial liabilities’:

•

Loss allowance in accordance with Korean IFRS No.1109, ‘Financial Instruments’

•

2.15 Revenue Recognition

The Company recognizes revenues in accordance with the following five-step revenue recognition standard (Korean IFRS No.1115 Revenue from Contracts with Customers).

•

Step 1: Identify the contract with a customer.

•

Step 2: Identify the performance obligations in the contract.

•

Step 3: Determine the transaction price.

•

Step 4: Allocate the transaction price to the performance obligations in the contract.

•

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

2.16 Employee Benefits

2.16.1 Retirement benefit liabilities: Defined benefit plans and Defined contribution plans

The Company has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. The contributions are recognized as employee benefit expenses when an employee has rendered service. A defined benefit plan is a pension plan that is not a defined contribution plan.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

If any plan amendments, curtailments, or settlements occur, past service costs or any gains or losses on settlement are recognized as profit or loss for the year.

2.16.2 Short-term employee benefits

The expected cost of profit-sharing and bonus payments are recognized as liabilities when the Company has a present legal or constructive obligation to make such payments as a result of past events rendered by employees and a reliable estimate of the obligation can be made.

2.16.3 Share-based payment

The Company is under share-based payment arrangements that grant shares to the executives of the Company. When the arrangements are exercised, the Company provides share or cash equal to the monetary value of the share.

The Company measures the services acquired and the liability incurred at fair value, and the fair value is recognized as expense and accrued expenses over the vesting period. Until the liability is settled, the Company remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

2.17 Income Tax Expenses

2.17.1 Current income tax

The Company offsets current income tax assets and current income tax liabilities if, and only if, the Company (a) has a legally enforceable right to set off the recognized amounts and (b) intends to settle on a net basis.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.17.2 Deferred income tax

Deferred income tax is recognized on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period. The Company reduces the carrying amount of a deferred income tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current income tax and deferred income tax are included in the calculation of income tax expense. Income taxes related to prior period are included in current income tax.

Deferred income taxes, recognized directly in equity or arisen from business combination, are directly deducted from equity or goodwill.

2.18 Operating Segment Reporting

Operating segments are components of the Company, about which separate internal reporting information is evaluated regularly by the chief operating decision makers including Board of Directors in deciding how to allocate resources and to assess performance. Each segment is a strategic business unit that offers different products and services, and is managed separately because each business has different risks and opportunities, different technology required and marketing strategies.

Segment information includes the items which are directly attributable and reasonably allocated to the segment.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.19 Other Receivables and Payables Related to Brokerage Transactions

Regarding customer brokerage transactions, the Company recognizes the receivable from and payable to the Korea Exchange (Clearing and settlement organization) and customers in total amounts, which the Company recognizes as other financial assets and other financial liabilities. The Company offsets the receivable and payable that arise between Korea Exchange and the Company within the same day.

2.20 Business Combinations

The acquisition method of accounting is used to account for business combinations by the Company. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The Company applies the book-value method to account for business combinations of entities under common control. Identifiable assets acquired and liabilities assumed in a business combination are measured at their book values on the financial statements of the ultimate parent entity. In addition, the difference between the sum of book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

2.21 Approval of Issuance of the Financial Statements

The issuance of the December 31, 2024 separate financial statements of the Company was approved by the Board of Directors on February 4, 2025, which is subject to change with approval at the annual shareholder’s meeting.

3. Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Company to make estimates and assumptions concerning the future. Management also needs to exercise judgement in applying the Company’s accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment.

3.1 Income taxes

The Company recorded, based on its best estimate, current taxes and deferred taxes that the Company will be liable in the future for the operating results at the end of the reporting period. However, the final tax outcome in the future may be different from the amounts that were initially recorded. Such differences will impact the current and deferred income tax assets and liabilities in the period in which the final tax outcome is determined.

If certain portion of the taxable income is not used for investments or increase in wages in accordance with the Special Taxation for Facilitation of Investment and Mutually-Beneficial Cooperation, the Company is liable to pay additional income tax calculated based on the tax law. Accordingly, the measurement of current and deferred income tax is affected by the tax effects from such tax law. As the Company’s income tax is dependent on the investments and increase in wages, there exists uncertainty with regard to measuring the final tax effects.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.2 Fair value of financial instruments

3.3 Impairment of financial assets

In accordance with Korean IFRS No.1109, the provision for impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation based on the Company’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period (Note 2.5).

3.4 Measurement of defined benefit obligation

The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the defined benefit liability. The Company determines the appropriate discount rate at the end of the reporting period. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit liability. In determining the appropriate discount rate, the Company considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the pension benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Other key assumptions for defined benefit liability are based in part on current market conditions.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4. Segment Information

4.1 Types of services from which each reportable segment derives its revenues

Management of the Company decides operating segment based on the information, which is to be reported to the chief executive officer, in order to allocate resources to the segment and evaluate performance of the segment. The Company’s operating segments consist of brokerage and wealth management, investment banking, trading and other business part.

In accordance with Korean IFRS No.1108, reporting segments of the Company by type of services categories are as follows:


Reporting segment		Main business activities
Brokerage and wealth management		Sales and services relating to wealth management and brokerage provided to individuals, corporations and institutional investors

Investment banking		Underwriting and advisory services related to bond issuance, structured finance, initial public offering, and mergers and acquisition

Trading		Trading of securities and derivatives, and proprietary trading

Others		Other services and support services

4.2 Revenue and income of segment reporting

Financial information by operating segment for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)
	2024
	Operating income		Operating expense		Operating profit		Non-operating income(expense)			Profit(loss) before income tax expense(income)
Brokerage and wealth management		5,125,756,055		4,794,443,838		331,312,217		(60,504,564	)		270,807,653
Investment banking		1,072,383,201		884,050,444		188,332,757		6,322			188,339,079
Trading		3,929,880,919		3,893,811,293		36,069,626		3,244,181			39,313,807
Others		483,369,206		285,153,789		198,215,417		44,838,272			243,053,689

		10,611,389,381		9,857,459,364		753,930,017		(12,415,789	)		741,514,228


(in thousands of Korean won)
	2023
	Operating income		Operating expense		Operating profit		Non-operating income(expense)			Profit(loss) before income tax expense(income)
Brokerage and wealth management		4,162,257,567		3,925,688,546		236,569,021		(15,673,946	)		220,895,075
Investment banking		974,957,814		797,871,693		177,086,121		(163,036,425	)		14,049,696
Trading		5,783,714,581		5,740,497,881		43,216,700		9,289,767			52,506,467
Others		319,277,714		122,613,549		196,664,165		(42,661,124	)		154,003,041

		11,240,207,676		10,586,671,669		653,536,007		(212,081,728	)		441,454,279

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.3 Assets and liabilities of segments

Total assets and liabilities by each segment as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	Total assets		Total liabilities
Brokerage and wealth management		7,565,851,146		8,306,698,054
Investment banking		4,077,781,107		207,642,939
Trading		26,389,808,564		11,811,736,915
Others		22,283,626,634		33,311,290,136

		60,317,067,451		53,637,368,044


(in thousands of Korean won)	2023
	Total assets		Total liabilities
Brokerage and wealth management		8,557,590,262		7,407,509,415
Investment banking		3,370,251,863		152,321,037
Trading		25,836,183,290		18,296,419,004
Others		20,064,462,388		25,815,026,079

		57,828,487,803		51,671,275,535

4.4 Information on principal customers

No single customer contributed 10% or more to the Company’s revenue for the years ended December 31, 2024 and 2023.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5. Cash and Deposits

The details of cash and deposits as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Cash and cash equivalents
Cash on hand		123			98
Demand deposits		342,209,931			170,183,415
Checking deposit		12,908,712			4,779,837
Foreign currency deposits		143,469,919			109,959,995
MMDA		87,210,942			92,034,412
Accommodation notes		7,096,548			65,212,108

		592,896,175			442,169,865

Deposits
Deposits for securities subscription		1,083,733			2,166,493
Reserve for claims of customers’ deposits		802,442,695			434,840,018
Guarantee deposits for securities lending and borrowing		46,752,792			203,006,941
Deposits for exchange-traded derivatives		572,602,786			624,629,214
Guarantee deposits for KSFC trading		—			529,659
Long-term deposits		75,000,000			75,000,000
Restricted due from financial institutes		39,000			39,000
Others		862,472,983			542,624,988
Allowances for credit losses of deposits		(738,213	)		(290,185	)
		2,359,655,776			1,882,546,128

		2,952,551,951			2,324,715,993

Restricted deposits as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Deposits for securities subscription 1		1,083,733		2,166,493
Reserve for claims of customers’ deposits 2		802,442,695		434,840,018
Guarantee deposits for securities lending and borrowing 3		46,752,792		203,006,941
Deposits for exchange-traded derivatives 4		572,602,786		624,629,214
Guarantee deposits for KSFC trading 5		—		529,659
Long-term deposits 6		69,000,000		69,000,000
Restricted due from financial institutes 7		39,000		39,000
Others 8		862,472,983		542,624,988

		2,354,393,989		1,876,836,313

Subscription deposits are subscription margin of investors and the Company that are separately deposited at Korea Securities Finance Corporation(KSFC) or other relevant financial institutions until due date for payment for the subscription of the newly issued or sold securities in accordance with the provisions of Article 4-44 of the Regulation on Financial Investment Business.

2	The reserve for claims of customers’ deposits is deposited separately in a form of trust in KSFC to meet the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.

3	Deposited in Korea Securities Depository to guarantee for securities lending and borrowing.

4	The deposits for exchange-traded derivatives that the investors and the Company pay for foreign futures option trading to KEB Hana Bank and Forex Dealer Member.

5	In the case of an investor’s loan transaction, a certain portion of the price of securities sold is deposited at KSFC as margin.

6	Pledged deposits provided for securities lending and borrowing, repurchase agreements between institutions and retail payment through investment & securities companies are included.

7	Guarantee deposits for checking accounts

8	Deposits in foreign currency and others consist of the margin accounts for trading financial instruments in foreign markets and deposits to court.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Changes in allowances for credit losses of deposits for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	12-month expected credit losses		Lifetime expected credit losses
	12-month expected credit losses		Non- impaired		Impaired
Beginning		290,185		—		—
Provision		448,028		—		—

Ending		738,213		—		—


(in thousands of Korean won)	2023
	12-month expected credit losses			Lifetime expected credit losses
	12-month expected credit losses			Non- impaired		Impaired
Beginning		645,197			—		—
Reversal of provision		(355,012	)		—		—

Ending		290,185			—		—

6. Financial Instruments at FVTPL

The details of financial instruments at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Financial Assets at FVTPL				Financial Liabilities at FVTPL
	2024		2023		2024		2023
Financial assets required to be mandatorily measured at FVTPL		36,753,823,519		35,529,339,671		2,558,520,223		2,860,033,642
Financial assets designated at FVTPL		—		—		8,010,047,059		7,975,847,458

		36,753,823,519		35,529,339,671		10,568,567,282		10,835,881,100

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

6.1 Financial assets required to be mandatorily measured at FVTPL

The details of financial assets required to be mandatorily measured at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Deposits
Reserve for claims of customers’ deposits (trust) 1		4,458,853,144		4,708,118,940
Equity instruments
Stocks		1,601,664,976		923,732,924
Debt instruments
Government and local government bonds		4,038,123,584		3,903,440,137
Special bonds		4,394,107,831		2,981,409,472
Corporate bonds		5,887,629,630		5,907,122,398
Corporate commercial papers		5,668,511,190		6,575,704,889
Asset-backed short-term bonds		1,731,958,269		2,257,642,941
Hybrid bond with security-like features		267,899,220		244,663,741
Investment in partnerships		621,369,479		581,762,940
Collective investment securities		4,869,469,164		4,600,708,350
Hybrid stock with bond-like features		169,454,179		124,485,659
Loans
Loans		937,460,555		—
Derivative linked securities
Equity-linked securities		10,897,742		9,129,439
Other derivative linked securities		783,440,520		615,830,815
Other OTC derivative combined contract		102,732,731		187,620,544
Securities in foreign currency
Stocks in foreign currency		49,737,589		24,839,546
Bonds in foreign currency		597,549,013		661,392,565
Investments in partnerships in foreign currency		52,692,465		44,768,900
Collective investment securities in foreign currency		125,807,545		190,230,987
Collective fund for default loss		82,900,562		83,483,822
Hybrid bonds		271,689,060		473,554,744
Exchange traded notes		—		10,540
Other short-term securities held for sale		29,875,071		429,685,378

		36,753,823,519		35,529,339,671

Details of securities sold which are classified as financial liabilities at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Equity Securities
Stocks		798,188,133		585,888,153
Collective investment securities		1,394,238		2,771,484
Debt Securities
Government and local government bonds		1,758,937,852		2,271,374,005

		2,558,520,223		2,860,033,642

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Assets Pledged as Collateral

The details of financial assets pledged as collateral as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Description1	2024		2023		Security right holder
Financial assets at FVTPL	Guarantee deposits for lending and borrowing securities and bonds		9,908,290,516		10,076,739,059	Korea Securities Depository, etc.
	Margin required and guarantee deposits for derivatives trading		1,591,262,017		1,556,234,283	Korea Stock Exchange, etc.
	Guarantee deposits for reverse repurchase agreements		4,232,134,843		3,200,510,963	Customer, Institution
	Guarantee deposits for agency of balance payments		—		98,000,000	Kookmin Bank
Financial assets at FVOCI	Guarantee deposits for lending and borrowing securities and bond		2,510,367,880		1,719,208,234	Korea Securities Depository, etc.
	Guarantee deposits for derivatives trading		183,121,174		167,879,197	Hana Securities Co., Ltd., etc.
	Guarantee deposits for reverse repurchase agreements		1,811,592,215		2,509,724,246	Customer, Institution

			20,236,768,645		19,328,295,982

1	As at December 31, 2024 and 2023, the accrued interests related to debt securities provided as collateral of 406,426 million and 344,448 million, respectively, are excluded.

The Company provides 8,027,229 million and 7,916,155 million of its borrowing securities held as collateral to KSFC and others as at December 31, 2024 and 2023, respectively.

As at December 31, 2024 and 2023, the fair values of collaterals sold or repledged as collaterals regardless of default are as follows:


(in thousands of Korean won)	Securities
	2024		2023
Fair value of collateral held		2,255,447,484		1,475,466,369
Fair value of collaterals sold or re-provided as collateral		—		—

		2,255,447,484		1,475,466,369

6.2 Financial liabilities designated at FVTPL

The details of financial liabilities designated at FVTPL as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Financial liabilities designated at FVTPL
	2024		2023
Derivative linked securities
Equity-linked securities		4,437,103,116		5,150,606,199
Other derivative linked securities		2,062,512,677		1,834,571,974
Other OTC derivative combined contract		1,209,941,532		933,983,691
Exchange traded notes		300,489,734		56,685,594

		8,010,047,059		7,975,847,458

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The differences between the contractual value to be paid at maturity and the carrying amount of financial liabilities at FVTPL as at December 31, 2024 and 2023, are as follows :


(in thousands of Korean won)	2024			2023
Contractual value to be paid at maturity		7,947,235,520			7,871,014,106
Carrying amount		8,010,047,059			7,975,847,458

Differences		(62,811,539	)		(104,833,352	)

Accumulated changes in fair value of financial liabilities at FVTPL due to the change of credit risk as at December 31, 2024 and 2023, are as follows :


(in thousands of Korean won)	Other comprehensive income recognized from changes of fair value due to the change of credit risk (before tax) 1
	2024		2023
Beginning of the year		16,008,372		(55,892,336	)
Change of fair value		7,493,104		71,900,709

End of the year		23,501,476		16,008,373

1	The Company assessed OCI based on the probability of default corresponding to the Company’s credit rating and loss given default. The amount is before tax.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

7. Derivatives and Hedge Accounting

Derivatives owned by the Company as at December 31, 2024 and 2023, are as follows:


	2024
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		718,474		—		5,406,671		4,109,620,037
Equity:
Futures		—		3,260,046		—		7,962,965		2,140,518,324
Purchase options		—		9,946,986		—		—		264,716,897
Written options		—		—		—		165,495,252		1,305,007,298
Currency:
Futures		—		1,132,412		—		234,401		404,531,400
Goods:
Futures		—		1,191,265		—		1,012,175		42,764,421

		—		16,249,183		—		180,111,464		8,267,158,377

OTC derivatives
Interest rate:
Forwards		—		697,806,221		—		674,883,353		17,627,246,000
Swaps		—		118,669,376		—		312,957,041		122,722,303,442
Options		—		10,235,246		—		12,676,965		450,100,000
Currency:
Forwards		—		182,379,316		4,309,200		229,088,752		8,101,373,429
Swaps		—		32,996,658		—		28,835,713		601,281,009
Options		—		4,415,787		—		6,151		147,000,000
Equity:
Swaps		—		276,216,278		—		156,075,309		4,946,600,638
Purchase options		—		4,396,415		—		—		471,018,000
Written options		—		—		—		5,872,788		483,738,001
Credit:
Swaps		—		37,123,089		—		27,397,061		4,411,630,000
Goods:
Swaps		—		12,389,786				11,780,566		1,297,182,950
Options		—		3,018,458		—		3,130,137		292,290,390
Others:
Swaps		—		47,097		—		275,542,878		796,712,171

		—		1,379,693,727		4,309,200		1,738,246,714		162,348,476,030

		—		1,395,942,910		4,309,200		1,918,358,178		170,615,634,407


	2023
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		6,226,442		—		4,358,742		4,042,993,055
Equity:
Futures		—		11,179,142		—		13,231,866		1,309,051,635
Purchase options		—		6,954,717		—		—		463,629,117
Written options		—		—		—		76,362,413		684,865,465

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


Currency:
Futures	—	695,841	—	242,418	193,521,882
Goods:
Futures	—	1,304,534	—	105,876	26,037,012

	—	26,360,676	—	94,301,315	6,720,098,166

OTC derivatives
Interest rate:
Forwards	—	501,834,690	—	483,149,733	14,811,295,000
Swaps	—	109,345,316	—	242,616,276	195,252,814,288
Options	—	2,018,458	—	3,037,884	310,000,000
Currency:
Forwards	—	49,044,667	5,307,120	51,416,659	6,062,007,794
Swaps	—	15,064,959	—	16,848,944	534,879,078
Options	—	9,208,609	—	952	412,828,000
Equity:
Swaps	—	327,873,021	—	491,916,197	5,114,409,518
Purchase options	—	71,207,596	—	—	1,864,702,957
Written options	—	—	—	163,911,123	1,854,850,307
Credit:
Swaps	—	17,799,282	—	8,695,443	2,864,356,720
Goods:
Swaps	—	4,348,110		4,351,784	31,635,429
Options	—	1,091,360	—	1,146,632	100,484,231
Others:
Swaps	—	—	—	245,312,183	694,541,167

	—	1,108,836,068	5,307,120	1,712,403,810	229,908,804,489

	—	1,135,196,744	5,307,120	1,806,705,125	236,628,902,655

The Company entered into the derivative contracts and applied fair value hedge accounting for hedging foreign exchange risk of the investment in subsidiaries and others.

Gain or loss on fair value hedge for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Gain(loss) on the hedging instrument		(33,134,172	)		(4,791,666	)
Gain(loss) on the hedged item attributable to the hedged risk		33,134,172			4,791,666

		—			—

The average price related to hedge of net investments in foreign operations as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	The nominal amount of the hedging instrument		Average price (KRW/USD, Korean won)
1 year		15,876,000		1,071.00
2 year		236,670,000		1,179.00
3 year		—		—
Over 3 year		—		—

		252,546,000		1,172.13

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2023
	The nominal amount of the hedging instrument		Average price (KRW/USD, Korean won)
1 year		31,332,420		1,071.00
2 year		—		—
3 year		207,593,400		1,178,92
Over 3 year		—		—

		238,925,820		1,164.76

The contents of fair value hedge as of December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Carrying amount (asset)		Accumulated fair value (asset)		Change of fair value for the year
Currency
Investment in subsidiaries		284,468,575		52,226,706		33,134,172


	2023
(in thousands of Korean won)	Carrying amount (asset)		Accumulated fair value (asset)		Change of fair value for the year
Currency
Investment in subsidiaries		269,912,803		22,784,034		4,791,666

8. Financial Assets at FVOCI

The details of financial assets at FVOCI as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Equity instruments
Stocks 1		472,013,719		432,986,575
Investment in partnerships		1,200,000		1,200,000
Other		879,977,298		425,898,552
Debt instruments
Government and municipal government bonds		70,709,895		5,248,842
Special bonds		1,821,452,212		1,519,494,875
Corporate bonds		2,595,239,175		2,542,007,878
Debt instruments in foreign currency		641,121,645		203,567,442

		6,481,713,944		5,130,404,164

1	Equity investment on Korea Stock Exchange and other relative institutions.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Changes in gains and losses on valuation of financial assets at FVOCI (before tax) for the year ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance			Valuation1			Disposal / transfer			Ending balance
Stocks		386,171,268			(15,718,337	)		—			370,452,931
Government and local government bonds		57,031			(447,623	)		(57,031	)		(447,623	)
Special bonds		3,686,348			7,970,335			(2,382,806	)		9,273,877
Corporate bonds		6,816,506			8,237,295			(1,424,622	)		13,629,179
Securities in foreign currency		(1,035,064	)		(243,344	)		138,432			(1,139,976	)
Other securities in Korean won		(1,588,431	)		14,095,998			(1,992,013	)		10,515,554

		394,107,658			13,894,324			(5,718,040	)		402,283,942

1	Provision for credit loss of debt instruments at FVOCI as 215 million are excluded.


	2023
(in thousands of Korean won)	Beginning balance			Valuation1		Disposal / transfer		Ending balance
Stocks		373,514,968			12,656,300		—		386,171,268
Government and local government bonds		(195,840	)		252,871		—		57,031
Special bonds		(2,654,207	)		3,686,348		2,654,207		3,686,348
Corporate bonds		(23,558,045	)		19,132,483		11,242,068		6,816,506
Securities in foreign currency		(6,164,532	)		5,080,455		49,013		(1,035,064	)
Other securities in Korean won		(22,900,422	)		21,311,991		—		(1,588,431	)

		318,041,922			62,120,448		13,945,288		394,107,658

1	Provision for credit loss of debt instruments at FVOCI as 693 million and reversal of provision for credit loss of debt instruments at FVOCI as 170 million are excluded.

The derecognized equity investments at FVOCI for the year ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Equity investments at FVOCI		151,937,226		—

The dividend income from equity investments at FVOCI for the years ended December 31, 2024 and 2023, are as follows;


(in thousands of Korean won)	2024				2023
	Derecognised		Held at the end of reporting period		Derecognised		Held at the end of reporting period
Equity investments at FVOCI
Non marketable securities		—		14,628,399		—		9,216,729
Other equity investments		698,774		31,745,544		—		17,262,460

The Company recognized provision for credit loss of debt instruments at FVOCI amount (before tax) to 1,743 million and 1,528 million, as at December 31, 2024 and 2023, respectively.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

9. Investments in Subsidiaries and Associates

Investments in subsidiaries and associates as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	Location		Percentage of ownership(%)		Date of financial statements 4		Net Asset			Book amount		Main Business
Subsidiaries
KBFG Securities America Inc.		USA		100.00		December		25,529,467			17,259,715		Investment, advisory
KB Securities Hong Kong Ltd.		Hong Kong		100.00		December		294,504,905			266,236,375		Investment, advisory
KB Securities Vietnam Joint Stock Company		Vietnam		99.81		December		250,658,226			173,875,579		Investment, advisory
KB FINA Joint Stock Company		Vietnam		100.00		December		2,634,471			2,634,471		IT(Fintech)
PT. KB Valbury Sekuritas		Indonesia		65.00		December		89,769,492			57,221,997		Investment, advisory
KB Digital Innovation&growth New Technology Business Investment Fund 1		Korea		20.00		December		7,737,182			2,000,000		Other financial
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1		Korea		42.86		December		25,228,894			10,665,000		Other financial
KB Global Contents Private Investment Fund 1		Korea		27.27		December		15,682,080			4,500,000		Other financial
JB New Jersey Private Real Estate Fund 1		Korea		98.15		December		56,317			—		Funds
LB Ireland Private Real Estate Investment Trust 8		Korea		96.64		December		(4,087,198	)		—		Funds
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		Korea		98.51		December		4,904,932			4,862,303		Funds
Mangrove Feeder Fund		Cayman Islands		74.90		December		18,562,431			18,232,200		Funds
GH Real Estate I LP		Guernsey		81.00		December		27,107,882			20,228,930		Investment
JB Dry Street Private Fund 1		Korea		100.00		December		192,453			239,920		Funds
JB Australia108 Private Fund 1		Korea		100.00		December		127,351			165,847		Funds
JB Forge Private Fund 1		Korea		100.00		December		90,953			118,464		Funds
JB Hall Street Private Fund 1		Korea		100.00		December		195,293			245,327		Funds
JB Margaret Street Private Fund 1		Korea		100.00		December		54,323			68,655		Funds
GVA Europe Pre-IPO Private Investment Trust No.1		Korea		100.00		December		29,618,615			17,866,800		Funds
LIFE Global Reits Pre-IPO General Private Investment Trust 1		Korea		99.89		December		59,358,576			53,065,676		Funds
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11		Korea		99.78		December		31,083,636			44,900,000		Funds
Able Gwonseon 1st Co., Ltd. 1		Korea		—		December		68,839			—		Asset-backed securitization
Newstar Gimpo 1st Co., Ltd 1		Korea		—		December		(262,779	)		—		Asset-backed securitization
Able Sewoon Co., Ltd. 1		Korea		—		December		(842,626	)		—		Asset-backed securitization
KB MyeongJi 1st Co.,Ltd. 1		Korea		—		December		356,835			—		Asset-backed securitization
Able Dangjin 1st Co.,Ltd. 1		Korea		—		December		1,060,237			—		Asset-backed securitization
KB Mapo 2nd Co.,Ltd. 1		Korea		—		December		(338,515	)		—		Asset-backed securitization
Able Wonchang 1st Co., Ltd. 1		Korea		—		December		(1,210,316	)		—		Asset-backed securitization
Zitaress 1st Co., Ltd. 1		Korea		—		December		358,205			—		Asset-backed securitization

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2024
	Location	Percentage of ownership(%)	Date of financial statements 5	Net Asset			Book amount		Main Business
Able Beomeo-one Co., Ltd. 1	Korea		December		385,218			—	Asset-backed securitization
Newstar Gimpo 4th Co.,Ltd. 1	Korea	—	December		(6,694,846	)		—	Asset-backed securitization
Powerplay 1st Co., Ltd. 1	Korea	—	December		(372,596	)		—	Asset-backed securitization
Able Dosan 1st Co., Ltd 1	Korea	—	December		1,778,541			—	Asset-backed securitization
Able Maseok 1st Co., Ltd. 1	Korea	—	December		(459,765	)		—	Asset-backed securitization
TW Seocho 1st Co., Ltd. 1	Korea	—	December		2,046,663			—	Asset-backed securitization
TW Seocho 2nd Co., Ltd. 1	Korea	—	December		926,752			—	Asset-backed securitization
Newstar Wave 1st Co., Ltd. 1	Korea	—	December		385,123			—	Asset-backed securitization
Able Next 1st Co., Ltd 1	Korea	—	December		(646,234	)		—	Asset-backed securitization
YSMC 1st Co., Ltd. 1	Korea	—	December		(219,814	)		—	Asset-backed securitization
Gyeongsan Logis 1st Co., Ltd1	Korea	—	December		(13,978	)		—	Asset-backed securitization
Stoke 2nd Corp 1	Korea	—	December		(6,788,935	)		—	Asset-backed securitization
Newstar Seongnam 1st Co.,Ltd 1	Korea	—	December		85,548			—	Asset-backed securitization
KPS Sihwa 1st Co., Ltd. 1	Korea	—	December		(42,294,192	)		—	Asset-backed securitization
Newstar NRB First Co., Ltd. 1	Korea	—	December		(1,346,805	)		—	Asset-backed securitization
Able alpha Co., Ltd. 1	Korea	—	December		(1,400,446	)		—	Asset-backed securitization
K-1 23th Yeoksam Real Estate Investment Trust Company	Korea	51.11	December		132,285,289			31,050,000	Real-estate Investment
KB Securities ESG Value Enhancement Fund	Korea	93.75	December		1,995,296			2,000,000	Other financial
Able Eunhwasam 2nd Co., Ltd. 1	Korea	—	December		(1,369,569	)		—	Asset-backed securitization
Newstar Sina 2nd Co., Ltd. 1	Korea	—	December		858,444			—	Asset-backed securitization
Newstar Gimpo 7th Co.,Ltd. 1, 2	Korea	—	December		(44,492,446	)		—	Asset-backed securitization
NewStar Yui the 1st 1, 2	Korea	—	December		(1,069,235	)		—	Asset-backed securitization
able hi position 1st 1, 2	Korea	—	December		(767,025	)		—	Asset-backed securitization
Graha 2nd Co., Ltd. 1, 2	Korea	—	December		12,005			—	Asset-backed securitization
Able Yongin Wonsam 2nd Co.,Ltd. 1, 2	Korea	—	December		(239,052	)		—	Asset-backed securitization
ABLE GUNPO 1ST CO.,LTD. 1, 2	Korea	—	December		(493,322	)		—	Asset-backed securitization
TRUE HOUSE FIRST CO., LTD. 1, 2	Korea	—	December		200,565			—	Asset-backed securitization
Breeze Air Primary Co.,Ltd. 1, 2	Korea	—	December		(148,182	)		—	Asset-backed securitization
Able Gongpyeong 3rd Co.,Ltd 1, 2	Korea	—	December		70,027			—	Asset-backed securitization
NEW STAR L CARD 1ST CO.,LTD. 1, 2	Korea	—	December		(392,862	)		—	Asset-backed securitization
Olivia 1st Co.,Ltd. 1, 2	Korea	—	December		136,167			—	Asset-backed securitization
THE APOGEE THE FIRST CO.,LTD. 1, 2	Korea	—	December		31,284			—	Asset-backed securitization
EULJI NAIN 1ST CO.,LTD. 1, 2	Korea	—	December		(647,501	)		—	Asset-backed securitization
E&F Backsapphire Private Equity Fund 2	Korea	98.76	December		39,896,349			40,000,000	Other financial

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2024
	Location		Percentage of ownership(%)		Date of financial statements 5		Net Asset			Book amount		Main Business
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H) 2		Korea		99.99		December		1,476,172			1,476,026		Funds
Able Civic 4th Co., Ltd. 1, 2		Korea		—		December		(256,082	)		—		Asset-backed securitization
NEWSTAR EXPER 1ST CO.,LTD. 1, 2		Korea		—		December		(777,240	)		—		Asset-backed securitization

											768,913,285

Associates
KB Special Purpose Acquisition Company No.21 3		Korea		0.13		November		16,109,139			10,000		SPAC
KB Special Purpose Acquisition Company No.25 3		Korea		0.12		November		8,580,129			5,000		SPAC
KB Special Purpose Acquisition Company No.26 3		Korea		0.09		November		10,829,695			5,000		SPAC
KB Special Purpose Acquisition Company No.27 3		Korea		0.04		November		26,419,296			5,000		SPAC
KB Special Purpose Acquisition Company No.28 3		Korea		0.09		November		10,618,937			5,000		SPAC
KB Special Purpose Acquisition Company No.29 3		Korea		0.16		November		12,428,561			10,000		SPAC
KB Special Purpose Acquisition Company No.30 3		Korea		0.19		November		10,363,936			10,000		SPAC
KB Special Purpose Acquisition Company No.31 3		Korea		4.76		November		474,974			10,000		SPAC
KB New Paradigm Agriculture Venture Fund		Korea		25.00		December		5,165,014			1,275,000		Investment
KB KONEX Market Vitalization Fund		Korea		23.44		December		8,227,161			540,000		Investment
KB-KDBC New Technology Business Investment Fund		Korea		33.33		December		7,803,895			1,500,000		Investment
KBTS Technology Venture Private Equity Fund 3		Korea		16.00		December		19,873,358			1,888,000		Investment
KB-SJ Tourism Venture Fund 3		Korea		18.52		December		9,617,047			570,000		Investment
KB Shinjasanaubo Fund 3		Korea		14.67		December		7,034,772			1,804,000		Investment
UNION Media Commerce Fund		Korea		28.99		December		3,262,579			1,000,000		Investment
KB SPROTT Renewable Private Equity Fund I 3		Korea		12.56		December		24,296,915			3,682,135		Investment
KB-Stonebridge Secondary Private Equity Fund 3		Korea		4.16		December		115,799,846			4,620,045		Investment
KB-SP Private Equity Fund IV 3		Korea		18.10		December		22,071,363			2,494,808		Investment
KB-UTC Inno-Tech Venture Fund 3		Korea		14.76		December		26,487,335			6,262,500		Investment
KB-NAU Special Situation Corporate Restructuring Private Equity Fund 3		Korea		6.50		December		123,026,518			5,379,144		Investment
KB-KTB Technology Venture Fund 3		Korea		18.18		December		49,986,506			10,000,000		Investment
KB Bio Global Expansion Private Equity Fund No.1		Korea		39.47		December		45,271,614			15,000,000		Investment
KB Digital Platform Fund 3		Korea		16.67		December		169,731,013			28,000,000		Investment
KB-SOLIDUS Healthcare Investment Fund 3		Korea		5.10		December		69,000,852			3,683,333		Investment
KB-GeneN Medical Venture Fund 1		Korea		22.52		December		8,348,219			2,000,000		Investment
DA-Friend Investment Fund II		Korea		27.06		December		3,348,957			987,633		Investment
Cornerstone Pentastone IV Fund		Korea		21.52		December		3,550,028			817,742		Investment
JS Private Equity Fund III		Korea		20.48		December		3,624,689			945,021		Investment
Mirae Asset Mobility Investment Fund I		Korea		22.99		December		8,341,764			2,000,000		Investment
KB-FT 1st Green Growth Investment Fund 3		Korea		10.34		December		18,270,632			2,000,000		Investment

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2024
	Location		Percentage of ownership(%)		Date of financial statements 5		Net Asset		Book amount		Main Business
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)		Korea		31.25		December		3,052,675		1,000,000		Investment
POSITVE Sobujang Venture Fund #1		Korea		43.96		December		1,977,444		879,121		Investment
KB-NP Green ESG New Technology Venture Capital Fund 3		Korea		11.59		December		133,153,255		16,100,000		Investment
Hisstory 2022 Fintech Fund		Korea		34.78		December		5,451,583		2,000,000		Investment
KB Star REIT		Korea		26.84		December		367,097,153		39,787,364		Investment
KB Bio Private Equity Investment Fund IV		Korea		24.19		December		30,459,936		7,500,000		Investment
Nextrade Co., Ltd. 3		Korea		6.64		September		123,213,152		9,700,000		Investment
MW-Pyco NewWave New Technology Investment Fund 4th		Korea		51.28		December		3,747,448		2,000,000		Investment
KB-SUSUNG 1st Investment Fund 3		Korea		10.00		December		14,589,744		1,076,000		Investment
Bitgoeul Cheomdan Green 1st Co., Ltd. 3		Korea		19.00		December		1,269,501		342,000		Investment
Shinhan-Eco Venture Fund 2nd		Korea		20.00		December		9,865,302		2,050,000		Investment
Leading H2O Fund 1		Korea		48.23		December		3,016,561		1,500,000		Investment
2023 JB Newtech No.2 Fund		Korea		25.71		December		6,631,365		1,405,557		Investment
U-KB Credit No.1 Private Equity		Korea		23.26		December		24,014,225		5,093,023		Investment
KB-BridgePole Venture Investment Fund #2 3		Korea		14.29		December		10,244,395		1,500,000		Investment
Sirius Silicon Valley I New Technology Fund		Korea		23.81		December		1,992,817		500,000		Investment
Timefolio Athleisure Investment Fund		Korea		48.19		December		8,139,720		4,000,000		Investment
COMPA Global Scale-Up Fund No.3		Korea		29.99		December		3,266,256		1,000,000		Investment
AKK Robotech Valueup New Technology Investment Fund 3		Korea		4.98		December		22,645,242		1,000,000		Investment
YG MCE PROJECT No.1 Fund		Korea		27.78		December		5,316,511		1,500,000		Investment
HI YG Win-win Fund No.2		Korea		20.62		December		9,568,040		2,000,000		Investment
KB-CJ Venture Fund 1st		Korea		40.00		December		4,331,867		1,800,000		Investment
Elohim-Bilanx aerospace No.1 Fund		Korea		20.94		December		9,446,122		2,000,000		Investment
KB-SUSUNG 2nd Investment Fund 3				12.66		December		15,648,898		2,000,000		Investment
IMM global Secondary 1-1 Equity Private Fund		Korea		41.65		December		9,013,297		2,819,038		Investment
LIB Material Investment Fund		Korea		25.49		December		5,786,900		4,098,144		Investment
NOVORSEC-SJG Consumer Secondary Fund		Korea		24.29		December		6,949,377		1,700,000		Investment
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership 3		Korea		16.30		December		29,629,640		5,059,098		Investment
KB-Cyrus Tourism Venture Fund 3		Korea		18.52		December		5,276,727		1,000,000		Investment
IBKS Design Fund		Korea		46.51		December		4,291,749		2,000,000		Investment
NICE DATA INTELLIGENCE VENTURE FUND		Korea		23.53		December		4,240,923		1,000,000		Investment
Pectus Hanwha Fund No.2		Korea		29.41		December		6,631,095		2,000,000		Investment
KB-IMM Newstar Real Estate Private Fund 1		Korea		40.83		December		53,625,920		20,897,275		Investment

										244,815,981

										1,013,729,266

1	The Company has control over the special purpose entities (“SPEs”) and is exposed to variable returns. Accordingly, these SPEs are included as subsidiaries although the Company’s ownership is less than 50%.

2	Newly established in 2024 and included as subsidiaries.

3	Although the ownership of the Company is less than 20%, these are included as associates, since the Company has a significant influence over investee’s policy and operations.

4	The date is the closing date of financial statements used for the purpose of assessment of net asset value.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2023
	Location		Percentage of ownership(%)		Date of financial statements 4		Net Asset			Book amount		Main Business
Subsidiaries
KBFG Securities America Inc.		USA		100.00		December		17,336,165			17,259,715		Investment, advisory
KB Securities Hong Kong Ltd.		Hong Kong		100.00		December		252,062,177			235,795,783		Investment, advisory
KB Securities Vietnam Joint Stock Company		Vietnam		99.81		December		218,463,690			173,875,579		Investment, advisory
KB FINA Joint Stock Company		Vietnam		77.82		December		10,759,391			11,146,330		IT(Fintech)
PT. KB Valbury Sekuritas		Indonesia		65.00		December		80,350,839			57,221,997		Investment, advisory
KB Digital Innovation&growth New Technology Business Investment Fund 1		Korea		20.00		December		7,830,219			2,000,000		Other financial
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1		Korea		42.86		December		33,482,109			14,550,000		Other financial
KB Global Contents Private Investment Fund 1		Korea		27.27		December		15,948,028			4,500,000		Other financial
JB New Jersey Private Real Estate Fund 1		Korea		98.15		December		16,307,532			1,074,621		Funds
LB Irealand Private Real Estate Investment Trust 8		Korea		96.64		December		(3,829,847	)		—		Funds
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		Korea		98.51		December		14,107,716			17,757,064		Funds
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38		Korea		53.25		December		4,932,871			1,633,129		Funds
Mangrove Feeder Fund		Cayman Islands		86.06		December		35,029,713			34,117,020		Funds
GH Real Estate I LP		Guernsey		81.00		December		27,242,625			22,089,260		Investment
JB Dry Street Private Fund 1		Korea		100.00		December		209,816			239,920		Funds
JB Australia108 Private Fund 1		Korea		100.00		December		139,494			165,847		Funds
JB Forge Private Fund 1		Korea		100.00		December		99,653			118,464		Funds
JB Hall Street Private Fund 1		Korea		100.00		December		211,208			245,327		Funds
JB Margaret Street Private Fund 1		Korea		100.00		December		58,849			68,655		Funds
GVA Europe Pre-IPO Private Investment Trust No.1		Korea		100.00		December		29,888,662			20,000,000		Funds
LIFE Global Reits Pre-IPO General Private Investment Trust 1		Korea		99.50		December		59,595,114			59,470,000		Funds
Star-Lord AlphaFlux General Investors Private Real Estate Investment Company No.11 2		Korea		99.78		December		38,235,836			44,900,000		Funds
Able Gwonseon 1st Co., Ltd. 1		Korea		—		December		(15,057	)		—		Asset-backed securitization
Newstar IP Co., Ltd. 1		Korea		—		December		(669,090	)		—		Asset-backed securitization
Newstar Gimpo 1st Co., Ltd 1		Korea		—		December		(9,951,026	)		—		Asset-backed securitization
Able Gongpyeong 1st Co.,Ltd 1		Korea		—		December		(165,562	)		—		Asset-backed securitization
Newstar Believe Co., Ltd. 1		Korea		—		December		(901,759	)		—		Asset-backed securitization
ABR Joongang2 1st Co.,Ltd 1		Korea		—		December		492,477			—		Asset-backed securitization
KB Tongyoung 1st Co., Ltd 1		Korea		—		December		458,067			—		Asset-backed securitization

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2023
	Location		Percentage of ownership(%)		Date of financial statements 5		Net Asset			Book amount		Main Business
Able Sewoon Co., Ltd. 1		Korea		—		December		147,378			—		Asset-backed securitization
Able Gasan 1st Co., Ltd. 1		Korea		—		December		115,712			—		Asset-backed securitization
Able PT 1st Co., Ltd 1		Korea		—		December		223,936			—		Asset-backed securitization
Newstar Plus 1st Co., Ltd. 1		Korea		—		December		613,732			—		Asset-backed securitization
KB MyeongJi 1st Co.,Ltd. 1		Korea		—		December		350,670			—		Asset-backed securitization
Able Dangjin 1st Co.,Ltd. 1		Korea		—		December		322,596			—		Asset-backed securitization
KB Osansegyo 2nd Co.,Ltd. 1		Korea		—		December		26,960			—		Asset-backed securitization
KB Mapo 2nd Co.,Ltd. 1		Korea		—		December		(811,560	)		—		Asset-backed securitization
Able Wonchang 1st Co., Ltd. 1		Korea		—		December		(1,347,484	)		—		Asset-backed securitization
Zitaress 1st Co., Ltd. 1		Korea		—		December		146,517			—		Asset-backed securitization
Able Beomeo-one Co., Ltd. 1		Korea		—		December		(278,327	)		—		Asset-backed securitization
KB Infra 2nd Co., Ltd. 1		Korea		—		December		(26,231	)		—		Asset-backed securitization
Newstar Sina Co., Ltd. 1		Korea		—		December		(293,262	)		—		Asset-backed securitization
KB Gold 1st Co.,Ltd. 1		Korea		—		December		786,223			—		Asset-backed securitization
Able MK 1st co.ltd 1		Korea		—		December		(255,688	)		—		Asset-backed securitization
Newstar Gimpo 4th Co.,Ltd. 1		Korea		—		December		(6,681,930	)		—		Asset-backed securitization
HD Value 1st Co., Ltd. 1		Korea		—		December		(12,873	)		—		Asset-backed securitization
Powerplay 1st Co., Ltd. 1		Korea		—		December		202,235			—		Asset-backed securitization
Able Dosan 1st Co., Ltd 1		Korea		—		December		916,396			—		Asset-backed securitization
Able Maseok 1st Co., Ltd. 1		Korea		—		December		(1,873,992	)		—		Asset-backed securitization
TW Seocho 1st Co., Ltd. 1		Korea		—		December		(3,797,995	)		—		Asset-backed securitization
TW Seocho 2nd Co., Ltd. 1		Korea		—		December		(749,366	)		—		Asset-backed securitization
Newstar Wave 1st Co., Ltd. 1		Korea		—		December		(3,080,973	)		—		Asset-backed securitization
Lamdamine 1st Co.,Ltd 1		Korea		—		December		(4,807,884	)		—		Asset-backed securitization
Able Next 1st Co., Ltd 1		Korea		—		December		(47,996	)		—		Asset-backed securitization
Newstar Enerbil 1st Co., Ltd. 1		Korea		—		December		(485,326	)		—		Asset-backed securitization
YSMC 1st Co., Ltd. 1		Korea		—		December		(951,338	)		—		Asset-backed securitization
KB SmartSchool 1st Co., Ltd. 1		Korea		—		December		585,430			—		Asset-backed securitization
Bighouse 7th Co., Ltd. 1		Korea		—		December		5,921,722			—		Asset-backed securitization
Gyeongsan Logis 1st Co., Ltd 1		Korea		—		December		169,091			—		Asset-backed securitization
Stoke 2nd Corp 1		Korea		—		December		779,732			—		Asset-backed securitization
KB Samyoung Co., Ltd. 1		Korea		—		December		148,627			—		Asset-backed securitization
Newstar Seongnam 1st Co.,Ltd 1		Korea		—		December		(922,015	)		—		Asset-backed securitization
KPS Sihwa 1st Co., Ltd. 1		Korea		—		December		(1,958,964	)		—		Asset-backed securitization

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2023
	Location		Percentage of ownership(%)	Date of financial statements 5		Net Asset			Book amount		Main Business
GDIC 2nd co.ltd 1		Korea	—		December		(8,094,528	)		—		Asset-backed securitization
Newstar NRB First Co., Ltd. 1		Korea	—		December		(1,693,893	)		—		Asset-backed securitization
Able Dongtan 1st Co., Ltd. 1		Korea	—		December		(7,057,772	)		—		Asset-backed securitization
Newstar Gimpo 5th Co.,Ltd. 1		Korea	—		December		(36,105,757	)		—		Asset-backed securitization
Able Banpo 1st Co., Ltd. 1		Korea	—		December		(3,144,006	)		—		Asset-backed securitization
Able Banpo 2nd Co., Ltd. 1		Korea	—		December		(2,270,430	)		—		Asset-backed securitization
Able alpha Co., Ltd. 1,2		Korea	—		December		(343,974	)		—		Asset-backed securitization
Newstar one-firm 2023-1 3rd. Co., Ltd. 1,2		Korea	—		December		28,896			—		Asset-backed securitization
Newstar one-firm 2023-1 4th. Co., Ltd. 1,2		Korea	—		December		107,031			—		Asset-backed securitization
Newstar one-firm 2023-1 5th. Co., Ltd. 1.2		Korea	—		December		(261,762	)		—		Asset-backed securitization
K-1 23th Yeoksam Real Estate Investment Trust Company 2		Korea	60.88		December		138,339,817			46,050,000		Asset-backed securitization
French Shine 1st Co., Ltd. 1,2		Korea	—		December		(25,250	)		—		Asset-backed securitization
Able Yongdap 2nd Co., Ltd. 1,2		Korea	—		December		(91,076	)		—		Asset-backed securitization
KB Securities ESG Value Enhancement Fund 2		Korea	93.75		December		1,020,593			1,000,000		Other financial
Able Bonri 1st Co., Ltd. 1,2		Korea	—		December		1,345,461			—		Asset-backed securitization
Newstar JH Center Co., Ltd. 1,2		Korea	—		December		(38,011	)		—		Asset-backed securitization
Able TY 2nd Co., Ltd. 1.2		Korea	—		December		(3,270,012	)		—		Asset-backed securitization
Keppel Private Real Estate Investment Trust No.13 2		Korea	75.85		December		82,153,644			64,400,000		Funds
Able Eunhwasam 2nd Co., Ltd. 1,2		Korea	—		December		(3,047,739	)		—		Asset-backed securitization
Newstar Yangju Station 1st Co., Ltd. 1,2		Korea	—		December		6,699			—		Asset-backed securitization
Able Chowall 2nd Co., Ltd. 1,2		Korea	—		December		132,788			—		Asset-backed securitization
Newstar Sina 2nd Co., Ltd. 1,2		Korea	—		December		(994,226	)		—		Asset-backed securitization

										829,678,711

Associates
KB Special Purpose Acquisition Company No.21 3		Korea	0.13		November		15,827,475			10,000		SPAC
KB Special Purpose Acquisition Company No.22 3		Korea	0.19		November		10,505,498			10,000		SPAC
KB Special Purpose Acquisition Company No.25 3		Korea	0.12		November		8,412,529			5,000		SPAC
KB Special Purpose Acquisition Company No.26 3		Korea	0.09		November		10,583,516			5,000		SPAC
KB Special Purpose Acquisition Company No.27 3		Korea	0.04		November		25,704,209			5,000		SPAC
KB New Paradigm Agriculture Venture Fund		Korea	25.00		December		10,460,350			2,100,000		Investment
KB KONEX Market Vitalization Fund		Korea	23.44		December		32,567,309			615,000		Investment
KB-KDBC New Technology Business Investment Fund		Korea	33.33		December		9,093,717			1,800,000		Investment

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(in thousands of Korean won)	2023
	Location		Percentage of ownership(%)		Date of financial statements 5		Net Asset		Book amount		Main Business
KBTS Technology Venture Private Equity Fund 3		Korea		16.00		December		22,093,103		2,592,000	Investment
KB-SJ Tourism Venture Fund 3		Korea		18.52		December		17,505,418		4,600,000	Investment
KB Shinjasanaubo Fund 3		Korea		14.67		December		12,040,505		1,804,000	Investment
UNION Media Commerce Fund		Korea		28.99		December		3,285,122		1,000,000	Investment
KB-Brain KOSDAQ Scale-Up Fund 3		Korea		15.96		December		14,441,479		—	Investment
KB SPROTT Renewable Private Equity Fund I 3		Korea		7.85		December		42,489,565		3,682,135	Investment
KB-Stonebridge Secondary Private Equity Fund 3		Korea		4.16		December		129,656,117		4,810,584	Investment
KB-SP Private Equity Fund IV 3		Korea		15.37		December		16,236,700		2,494,808	Investment
KB-UTC Inno-Tech Venture Fund 3		Korea		14.76		December		35,405,646		6,375,000	Investment
KB-NAU Special Situation Corporate Restructuring Private Equity Fund 3		Korea		6.00		December		145,043,886		4,786,339	Investment
KB Material and Parts No. 1 PEF 3		Korea		14.47		December		22,806,535		3,400,000	Investment
KB Global Commerce Private Equity Investment Fund 3		Korea		16.28		December		53,048,729		7,000,000	Investment
KB-KTB Technology Venture Fund 3		Korea		18.18		December		42,017,523		8,000,000	Investment
KB Bio Global Expansion Private Equity Fund No.1		Korea		39.47		December		40,267,615		15,000,000	Investment
KB Digital Platform Fund 3		Korea		16.67		December		102,743,011		18,000,000	Investment
KB-SOLIDUS Healthcare Investment Fund 3		Korea		5.10		December		44,544,473		2,383,333	Investment
KB-GeneN Medical Venture Fund 1		Korea		22.52		December		8,534,974		2,000,000	Investment
KB-BridgePole Venture Investment Fund 3		Korea		6.30		December		13,708,515		136,000	Investment
KB-Kyobo New Mobility Power Fund		Korea		28.57		December		9,176,579		3,000,000	Investment
DA-Friend Investment Fund II		Korea		27.06		December		3,427,626		987,633	Investment
Cornerstone Pentastone IV Fund		Korea		21.52		December		3,600,145		817,742	Investment
JS Private Equity Fund III		Korea		20.48		December		9,088,561		1,700,000	Investment
Mirae Asset Mobility Investment Fund I		Korea		22.99		December		8,477,062		2,000,000	Investment
KB-FT 1st Green Growth Investment Fund 3		Korea		10.34		December		18,649,437		2,000,000	Investment
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)		Korea		31.25		December		3,111,012		1,000,000	Investment
POSITVE Sobujang Venture Fund #1		Korea		43.96		December		4,470,581		2,000,000	Investment
KB-NP Green ESG New Technology Venture Capital Fund 3		Korea		11.59		December		67,035,300		8,180,000	Investment
Hisstory 2022 Fintech Fund		Korea		34.78		December		5,571,213		2,000,000	Investment
KB Star Galaxy REIT		Korea		26.94		December		445,828,589		45,523,300	Investment
KB Bio Private Equity Investment Fund IV		Korea		24.19		December		27,985,830		7,500,000	Investment
Nextrade Co., Ltd. 3		Korea		6.64		September		138,950,321		9,700,000	Other Finance
LAKEWOOD-AVES Fund No.1		Korea		39.06		December		5,060,391		2,000,000	Investment
MW-Pyco NewWave New Technology Investment Fund 4th		Korea		51.28		December		3,831,786		2,000,000	Investment
KB-SUSUNG 1st Investment Fund 3		Korea		10.00		December		19,689,771		2,000,000	Investment
Friend 55 New Technology Business Investment Fund		Korea		53.33		December		2,217,136		1,200,000	Investment
Bitgoeul Cheomdan Green 1st Co., Ltd. 3		Korea		19.00		December		870,794		190,000	Investment
DSIP-Pharos Bioenergy Fund		Korea		34.10		December		48,262,698		4,000,000	Investment
Shinhan-Eco Venture Fund 2nd		Korea		20.00		December		9,000,360		1,825,000	Investment
Leading H2O Fund 1		Korea		48.23		December		3,087,152		1,500,000	Investment

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

(in thousands of Korean won)

2023

Location

Percentage

of
ownership(%)

Date of
financial
statements 5

Net Asset

Book

amount

Main

Business

2023 JB Newtech No.2 Fund

Korea

25.71

December

6,943,978

1,800,000

Investment

U-KB Credit No.1 Private Equity

Korea

23.26

December

20,551,019

4,813,953

Investment

KB-BridgePole Venture Investment Fund #2 3

Korea

14.29

December

10,460,612

1,500,000

Investment

Sirius Silicon Valley I New Technology Fund

Korea

23.81

December

2,038,183

500,000

Investment

202,351,827

1,032,030,538

1	The Company has control over the special purpose entities (“SPEs”) and is exposed to variable returns. Accordingly, these SPEs are included as subsidiaries although the Company’s ownership is less than 50%.

2	Newly established in 2023 and included as subsidiaries.

3	Although the ownership of the Company is less than 20%, these are included as associates, since the Company has a significant influence over investee’s policy and operations.

4	The date is the closing date of financial statements used for the purpose of assessment of net asset value.

Changes in investments in subsidiaries for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Impaired			Re-classification 1		Others		Ending balance
KBFG Securities America Inc.		17,259,715		—		—			—			—		—		17,259,715
KB Securities Hong Kong Ltd.		235,795,783		—		—			—			—		30,440,592		266,236,375
KB Securities Vietnam Joint Stock Company		173,875,579		—		—			—			—		—		173,875,579
KB FINA Joint Stock Company		11,146,330		—		—			(8,511,859	)		—		—		2,634,471
PT. KB Valbury Sekuritas		57,221,997		—		—			—			—		—		57,221,997
KB Digital Innovation&growth New Technology Business Investment Fund		2,000,000		—		—			—			—		—		2,000,000
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund		14,550,000		—		(3,885,000	)		—			—		—		10,665,000
JB New Jersey Private Real Estate Fund 1		1,074,621		—		—			(1,074,621	)		—		—		—
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		17,757,064		933,277		(7,677,053	)		(6,150,985	)		—		—		4,862,303
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38		1,633,129		—		—			(1,633,129	)		—		—		—
Mangrove Feeder Fund		34,117,020		—		(17,900,820	)		—			—		2,016,000		18,232,200
GH Real Estate I LP		22,089,260		—		—			(1,860,330	)		—		—		20,228,930
JB Dry Street Private Fund 1		239,920		—		—			—			—		—		239,920
JB Australia108 Private Fund 1		165,847		—		—			—			—		—		165,847
JB Forge Private Fund 1		118,464		—		—			—			—		—		118,464

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Impaired			Re-classification 1			Others		Ending balance
JB Hall Street Private Fund 1		245,327		—		—			—			—			—		245,327
JB Margaret Street Private Fund 1		68,655		—		—			—			—			—		68,655
KB Global Contents Private Investment Fund		4,500,000		—		—			—			—			—		4,500,000
GVA Europe Pre-IPO Private Investment Trust No.1		20,000,000		—		—			(2,133,200	)		—			—		17,866,800
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,470,000		—		—			(6,404,324	)		—			—		53,065,676
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11		44,900,000		—		—			—			—			—		44,900,000
K-1 23th Yeoksam Real Estate Investment Trust Company		46,050,000		—		(15,000,000	)		—			—			—		31,050,000
KB Securities ESG Value Enhancement Fund		1,000,000		1,000,000		—			—			—			—		2,000,000
E&F Backsapphire Private Equity Fund		—		40,000,000		—			—			—			—		40,000,000
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)		—		1,476,026		—			—			—			—		1,476,026
Keppel Private Real Estate Investment Trust No.13		64,400,000		—		(25,000,000	)		—			(39,400,000	)		—		—

		829,678,711		43,409,303		(69,462,873	)		(27,768,448	)		(39,400,000	)		32,456,592		768,913,285

1	These instruments are reclassified to financial assets measured at FVTPL during the year ended December 31, 2024.


	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Impaired			Re-classification 1		Others		Ending balance
KBFG Securities America Inc.		17,259,715		—		—			—			—		—		17,259,715
KB Securities Hong Kong Ltd.		232,643,725		—		—			—			—		3,152,058		235,795,783
KB Securities Vietnam Joint Stock Company		173,875,579		—		—			—			—		—		173,875,579
KB FINA Joint Stock Company		11,146,330		—		—			—			—		—		11,146,330
PT. KB Valbury Sekuritas		57,221,997		—		—			—			—		—		57,221,997
KB Digital Innovation&growth New Technology Business Investment Fund		2,000,000		—		—			—			—		—		2,000,000
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund		15,000,000		—		(450,000	)		—			—		—		14,550,000
JB New Jersey Private Real Estate Fund 1		1,074,621		—		—			—			—		—		1,074,621
LB Irealand Private Real Estate Investment Trust 8		66,076,000		—		—			(66,076,000	)		—		—		—
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		21,641,016		—		(3,883,952	)		—			—		—		17,757,064

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Impaired			Re-classification 1			Others		Ending balance
DAOL KTB Aircraft Private Investment Trust No.21-1		27,752,839		—		(27,752,839	)		—			—			—		—
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38		104,400,551		—		—			(102,767,422	)		—			—		1,633,129
Mangrove Feeder Fund		71,010,090		—		(37,620,511	)		—			—			727,441		34,117,020
GH Real Estate I LP		21,030,311		—		—			1,058,949			—			—		22,089,260
JB Dry Street Private Fund 1		974,200		—		(734,280	)		—			—			—		239,920
JB Australia108 Private Fund 1		697,499		—		(531,652	)		—			—			—		165,847
JB Forge Private Fund 1		499,062		—		(380,598	)		—			—			—		118,464
JB Hall Street Private Fund 1		933,520		—		(688,193	)		—			—			—		245,327
JB Margaret Street Private Fund 1		264,785		—		(196,130	)		—			—			—		68,655
Hanwha US Equity Strategy Private Real Estate Fund 3		2,784,410		—		(2,784,410	)		—			—			—		—
KB Global Contents Private Investment Fund		4,500,000		—		—			—			—			—		4,500,000
GVA Europe Pre-IPO Private Investment Trust No.1		20,000,000		—		—			—			—			—		20,000,000
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,470,000		—		—			—			—			—		59,470,000
Star-Lord AlphaFlux General Investors Private Real Estate Investment Company No.11		—		44,900,000		—			—			—			—		44,900,000
KB KBSTAR US Short- Term IG Corporate Bond ETF 1		50,000,000		—		(20,000,000	)		—			(30,000,000	)		—		—
K-1 23th Yeoksam Real Esstae Investment Trust Company		—		46,050,000		—			—			—			—		46,050,000
KB Securities ESG Value Enhancement Fund		—		1,000,000		—			—			—			—		1,000,000
Keppel Private Real Estate Investment Trust No.13		—		69,400,000		(5,000,000	)		—			—			—		64,400,000

		962,256,250		161,350,000		(100,022,565	)		(167,784,473	)		(30,000,000	)		3,879,499		829,678,711

1	These instruments are reclassified to financial assets measured at FVTPL during the year ended December 31, 2023 .

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Changes in investment in associates for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Impaired		Ending balance
KB Special Purpose Acquisition Company No.21		10,000		—		—			—		10,000
KB Special Purpose Acquisition Company No.22		10,000		—		(10,000	)		—		—
KB Special Purpose Acquisition Company No.25		5,000		—		—			—		5,000
KB Special Purpose Acquisition Company No.26		5,000		—		—			—		5,000
KB Special Purpose Acquisition Company No.27		5,000		—		—			—		5,000
KB Special Purpose Acquisition Company No.28		—		5,000		—			—		5,000
KB Special Purpose Acquisition Company No.29		—		10,000		—			—		10,000
KB Special Purpose Acquisition Company No.30		—		10,000		—			—		10,000
KB Special Purpose Acquisition Company No.31		—		10,000		—			—		10,000
KB New Paradigm Agriculture Venture Fund		2,100,000		—		(825,000	)		—		1,275,000
KB KONEX Market Vitalization Fund		615,000		—		(75,000	)		—		540,000
KB-KDBC New Technology Business Investment Fund		1,800,000		—		(300,000	)		—		1,500,000
KBTS Technology Venture Private Equity Fund		2,592,000		—		(704,000	)		—		1,888,000
KB-SJ Tourism Venture Fund		4,600,000		—		(4,030,000	)		—		570,000
KB Shinjasanaubo Fund		1,804,000		—		—			—		1,804,000
UNION Media Commerce Fund		1,000,000		—		—			—		1,000,000
KB SPROTT Renewable Private Equity Fund I		3,682,135		—		—			—		3,682,135
KB-Stonebridge Secondary Private Equity Fund		4,810,584		—		(190,539	)		—		4,620,045
KB-SP Private Equity Fund IV		2,494,808		—		—			—		2,494,808
KB-UTC Inno-Tech Venture Fund		6,375,000		—		(112,500	)		—		6,262,500
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		4,786,339		4,482,000		(3,889,195	)		—		5,379,144
KB Material and Parts No. 1 PEF		3,400,000		—		(3,400,000	)		—		—
KB Global Commerce Private Equity Investment Fund		7,000,000		—		(7,000,000	)		—		—
KB-KTB Technology Venture Fund		8,000,000		2,000,000		—			—		10,000,000
KB Bio Global Expansion Private Equity Fund No.1		15,000,000		—		—			—		15,000,000
KB Digital Platform Fund		18,000,000		10,000,000		—			—		28,000,000
KB-SOLIDUS Healthcare Investment Fund		2,383,333		1,300,000		—			—		3,683,333
KB-GeneN Medical Venture Fund 1		2,000,000		—		—			—		2,000,000
KB-BridgePole Venture Investment Fund		136,000		—		(136,000	)		—		—
KB-Kyobo New Mobility Power Fund		3,000,000		—		(3,000,000	)		—		—
DA-Friend Investment Fund II		987,633		—		—			—		987,633
Cornerstone Pentastone IV Fund		817,742		—		—			—		817,742
JS Private Equity Fund III		1,700,000		—		(754,979	)		—		945,021
Mirae Asset Mobility Investment Fund I		2,000,000		—		—			—		2,000,000

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


KB-FT 1st Green Growth Investment Fund	2,000,000	—	—		—		2,000,000
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)	1,000,000	—	—		—		1,000,000
POSITVE Sobujang Venture Fund#1	2,000,000	—	(1,120,879	)	—		879,121
KB-NP Green ESG New Technology Venture Capital Fund	8,180,000	7,920,000	—		—		16,100,000
History 2022 Fintech Fund	2,000,000	—	—		—		2,000,000
KB Star REIT	45,523,300	—	—		(5,735,936	)	39,787,364
KB Bio Private Equity Investment Fund IV	7,500,000	—	—		—		7,500,000
Nextrade Co., Ltd.	9,700,000	—	—		—		9,700,000
LAKEWOOD-AVES Fund No.1	2,000,000	—	(2,000,000	)	—		—
MW-Pyco NewWave New Technology Investment Fund 4th	2,000,000	—	—		—		2,000,000
KB-SUSUNG 1st Investment Fund	2,000,000	—	(924,000	)	—		1,076,000
Friend 55 New Technology Business Investment Fund	1,200,000	—	(1,200,000	)	—		—
Bitgoeul Cheomdan Green 1st Co., Ltd.	190,000	152,000	—		—		342,000
DSIP-Pharos Bioenergy Fund	4,000,000	—	(4,000,000	)	—		—
Shinhan-Eco Venture Fund 2nd	1,825,000	225,000	—		—		2,050,000
Leading H2O Fund 1	1,500,000	—	—		—		1,500,000
2023 JB Newtech No.2 Fund	1,800,000	—	(394,443	)	—		1,405,557
U-KB Credit No.1 Private Equity	4,813,953	279,070	—		—		5,093,023
KB-BridgePole Venture Investment Fund #2	1,500,000	—	—		—		1,500,000
Sirius Silicon Valley I New Technology Fund	500,000	—	—		—		500,000
Timefolio Athleisure Investment Fund	—	4,000,000	—		—		4,000,000
COMPA Global Scale-Up Fund No.3	—	1,000,000	—		—		1,000,000
AKK Robotech Valueup New Technology Investment Fund	—	1,000,000	—		—		1,000,000
YG MCE PROJECT No.1 Fund	—	1,500,000	—		—		1,500,000
HI YG Win-win Fund No.2	—	2,000,000	—		—		2,000,000
KB-CJ Venture Fund 1st	—	1,800,000	—		—		1,800,000
Elohim-Bilanx aerospace No.1 Fund	—	2,000,000	—		—		2,000,000
KB-SUSUNG 1st Investment Fund	—	2,000,000	—		—		2,000,000
IMM global Secondary 1-1 Equity Private Fund	—	2,819,038	—		—		2,819,038
LIB Material Investment Fund	—	4,098,144	—		—		4,098,144
NOVORSEC-SJG Consumer Secondary Fund	—	1,700,000	—		—		1,700,000
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	—	5,059,098	—		—		5,059,098

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


KB-Cyrus Tourism Venture Fund	—	1,000,000	—		—		1,000,000
IBKS Design Fund	—	2,000,000	—		—		2,000,000
NICE DATA INTELLIGENCE VENTURE FUND	—	1,000,000	—		—		1,000,000
Pectus Hanwha Fund No.2	—	2,000,000	—		—		2,000,000
KB-IMM Newstar Real Estate Private Fund 1	—	20,897,275	—		—		20,897,275

	202,351,827	82,266,625	(34,066,535	)	(5,735,936	)	244,815,981

1	These instruments are reclassified from financial assets measured at FVTPL for the year ended December 31, 2024 .


	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Impaired			Re-classfi fication1			Ending balance
KB Special Purpose Acquisition Company No.21		10,000		—		—			—			—			10,000
KB Special Purpose Acquisition Company No.22		10,000		—		—			—			—			10,000
KB Special Purpose Acquisition Company No.23		5,000		—		(5,000	)		—			—			—
KB Special Purpose Acquisition Company No.24		25,000		—		(25,000	)		—			—			—
KB Special Purpose Acquisition Company No.25		—		5,000		—			—			—			5,000
KB Special Purpose Acquisition Company No.26		—		5,000		—			—			—			5,000
KB Special Purpose Acquisition Company No.27		—		5,000		—			—			—			5,000
KB New Paradigm Agriculture Venture Fund		2,100,000		—		—			—			—			2,100,000
KB KONEX Market Vitalization Fund		615,000		—		—			—			—			615,000
KB-KDBC New Technology Business Investment Fund		1,800,000		—		—			—			—			1,800,000
KBTS Technology Venture Private Equity Fund		2,784,000		—		(192,000	)		—			—			2,592,000
KB-SJ Tourism Venture Fund		4,600,000		—		—			—			—			4,600,000
KB Shinjasanaubo Fund		1,804,000		—		—			—			—			1,804,000
UNION Media Commerce Fund		1,000,000		—		—			—			—			1,000,000
KB-Brain KOSDAQ Scale-Up Fund		4,950,000		—		(4,950,000	)		—			—			—
KB SPROTT Renewable Private Equity Fund I		3,682,135		—		—			—			—			3,682,135
KB-Stonebridge Secondary Private Equity Fund		6,800,355		—		(1,989,771	)		—			—			4,810,584
KB-SP Private Equity Fund IV		6,100,000		—		—			(3,605,192	)		—			2,494,808
KB-UTC Inno-Tech Venture Fund		7,125,000		—		(750,000	)		—			—			6,375,000
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		5,003,207		900,000		(1,116,868	)		—			—			4,786,339
December & Company Inc.		21,838,134		—		(1,502,531	)		(19,171,095	)		(1,164,508	)		—
KB Material and Parts No. 1 PEF 1		3,400,000		—		—			—			—			3,400,000
KB Global Commerce Private Equity Investment Fund		7,000,000		—		—			—			—			7,000,000
KB-KTB Technology Venture Fund		6,000,000		2,000,000		—			—			—			8,000,000

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


KB Bio Global Expansion Private Equity Fund No.1	15,000,000	—	—		—		—		15,000,000
KB Digital Platform Fund	9,500,000	8,500,000	—		—		—		18,000,000
KB-SOLIDUS Healthcare Investment Fund	1,100,000	1,283,333	—		—		—		2,383,333
KB-GeneN Medical Venture Fund 1	2,000,000	—	—		—		—		2,000,000
KB-BridgePole Venture Investment Fund	850,000	—	(714,000	)	—		—		136,000
KB-Kyobo New Mobility Power Fund	3,000,000	—	—		—		—		3,000,000
DA-Friend Investment Fund II	987,633	—	—		—		—		987,633
Cornerstone Pentastone IV Fund	817,742	—	—		—		—		817,742
SKS-VLP Fund No.2	1,155,560	—	(1,155,560	)	—		—		—
JS Private Equity Fund III	1,700,000	—	—		—		—		1,700,000
Mirae Asset Mobility Investment Fund I	2,000,000	—	—		—		—		2,000,000
KB-FT 1st Green Growth Investment Fund	2,000,000	—	—		—		—		2,000,000
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)	1,000,000	—	—		—		—		1,000,000
POSITVE Sobujang Venture Fund#1	2,000,000	—	—		—		—		2,000,000
KB-NP Green ESG New Technology Venture Capital Fund	3,740,000	4,440,000	—		—		—		8,180,000
Hisstory 2022 Fintech Fund	2,000,000	—	—		—		—		2,000,000
PEBBLES-MW M·C·E New Technology Investment Fund 1st	2,000,000	—	(2,000,000	)	—		—		—
KB Star Galaxy REIT	45,523,300	—	—		—		—		45,523,300
KB Bio Private Equity Investment Fund IV	7,500,000	—	—		—		—		7,500,000
Nextrade Co., Ltd.	9,700,000	—	—		—		—		9,700,000
LAKEWOOD-AVES Fund No.1	—	2,000,000	—		—		—		2,000,000
MW-Pyco NewWave New Technology Investment Fund 4th	—	2,000,000	—		—		—		2,000,000
KB-SUSUNG 1st Investment Fund	—	2,000,000	—		—		—		2,000,000
Friend 55 New Technology Business Investment Fund	—	1,200,000	—		—		—		1,200,000
Bitgoeul Cheomdan Green 1st Co., Ltd.	—	190,000	—		—		—		190,000
DSIP-Pharos Bioenergy Fund	—	4,000,000	—		—		—		4,000,000
Shinhan-Eco Venture Fund 2nd	—	1,825,000	—		—		—		1,825,000
Leading H2O Fund 1	—	1,500,000	—		—		—		1,500,000
2023 JB Newtech No.2 Fund	—	1,800,000	—		—		—		1,800,000
U-KB Credit No.1 Private Equity	—	4,813,953	—		—		—		4,813,953
KB-BridgePole Venture Investment Fund #2	—	1,500,000	—		—		—		1,500,000
Sirius Silicon Valley I New Technology Fund	—	500,000	—		—		—		500,000

	200,226,066	40,467,286	(14,400,730	)	(22,776,287	)	(1,164,508	)	202,351,827

1	These instruments are reclassified from financial assets measured at FVTPL for the year ended December 31, 2023 .

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

10. Loans Measured at Amortised Cost

The details of loans measured at amortised cost as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024									2023
(in thousands of Korean won)	Total amount			Allowances			Book amount			Total amount			Allowances			Book amount
Retails
Broker’s loans		2,525,170,144			—			2,525,170,144			3,069,936,779			—			3,069,936,779
Loans to employees		23,774,577			—			23,774,577			12,837,275			—			12,837,275
Present value discount		—			—			—			(17,803	)		—			(17,803	)

		2,548,944,721			—			2,548,944,721			3,082,756,251			—			3,082,756,251

Corporates
Broker’s loans		202,338,242			—			202,338,242			251,523,081			—			251,523,081
Securities purchased under repurchase agreements		2,091,017,404			—			2,091,017,404			1,369,600,000			—			1,369,600,000
Loans receivable		3,209,415,942			(53,553,889	)		3,155,862,053			3,208,755,582			(41,135,212	)		3,167,620,370
Purchased loans		56,718,382			(388,518	)		56,329,864			52,226,101			(381,401	)		51,844,700
Advances for customers		7,465,522			(7,465,522	)		—			7,564,877			(7,564,877	)		—
Privately placed bonds		62,762,000			(33,373,429	)		29,388,571			30,500,000			(1,838,554	)		28,661,446
Financial lease receivables		23,129,979			—			23,129,979			29,544,593			—			29,544,593
Net deferred origination fees and costs		(5,130,850	)		—			(5,130,850	)		(5,759,466	)		—			(5,759,466	)
Present value discount		(1,407,028	)		—			(1,407,028	)		(2,186,170	)		—			(2,186,170	)

		5,646,309,593			(94,781,358	)		5,551,528,235			4,941,768,598			(50,920,044	)		4,890,848,554

		8,195,254,314			(94,781,358	)		8,100,472,956			8,024,524,849			(50,920,044	)		7,973,604,805

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The changes in book amount of loan measured at amortised cost for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024
	Retails									Corporates
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
				Non-impaired		Impaired		The financial instruments applying credit loss model					Non-impaired			Impaired			The financial instruments applying credit loss model
Beginning		3,082,756,252			—		—		—		4,847,521,674			36,919,543			57,327,382			—
Transfer between stages
Transfer to lifetime expected credit Losses (Non-impaired)		—			—		—		—		(46,743,287	)		46,743,287			—			—
Transfer to lifetime expected credit Losses (impaired)		—			—		—		—		(22,825,440	)		(10,000,000	)		32,825,440			—
Write-off		—			—		—		—		—			—			(2,069,426	)		—
Sales		—			—		—		—		(577,401,682	)		—			—			—
Other increase /decrease, net		(533,811,531	)		—		—		—		1,169,520,962			121,523,150			(7,032,010	)		—

Ending		2,548,944,721			—		—		—		5,370,072,227			195,185,980			81,051,386			—


(in thousands of Korean won)	2023
	Retails								Corporates
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses					The financial instruments applying credit loss model
			Non-impaired		Impaired		The financial instruments applying credit loss model					Non-impaired		Impaired			The financial instruments applying credit loss model
Beginning		2,682,319,898		—		—		—		3,893,554,296			—		18,356,784			—
Transfer between stages
Transfer to lifetime expected credit Losses (Non-impaired)		—		—		—		—		(37,901,424	)		37,901,424		—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(52,736,957	)		—		52,736,957			—
Write-off		—		—		—		—		—			—		(10,761,359	)		—
Sales		—		—		—		—		(356,502,050	)		—		—			—
Other increase /decrease, net		400,436,353		—		—		—		1,401,107,808			(981,881)		(3,005,000)			—

Ending		3,082,756,251		—		—		—		4,847,521,673			36,919,543		57,327,382			—

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The changes in allowances for loan losses for the years ended December 31, 2024 and 2023, are as follows:


(In thousands of Korean won)	2024
	Corporates
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
				Non-impaired			Impaired			The financial instruments applying credit loss model
Beginning		11,101,566			11,558,281			28,260,199			—
Transfer between stages
Transfer to lifetime expected credit Losses (Non- impaired)		(1,463,460	)		1,463,460			—			—
Transfer to lifetime expected credit Losses(impaired)		(72,220	)		(1,539,108	)		1,611,328			—
Write-off		—			—			(2,069,426	)		—
Sale		(1,738,460	)		—			—			—
Provision (reversal) for loan losses		1,274,167			(2,295,243	)		33,788,956			—
Execution of the contract		—			6,666,529			8,234,789			—

Ending		9,101,593			15,853,919			69,825,846			—


(In thousands of Korean won)	2023
	Corporates
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
				Non-impaired			Impaired			The financial instruments applying credit loss model
Beginning		10,696,664			—			16,748,421			—
Transfer between stages
Transfer to lifetime expected credit Losses (Non- impaired)		(90,184	)		90,184			—			—
Transfer to lifetime expected credit Losses (impaired)		(802,282	)		—			802,282			—
Write-off		—			—			(10,761,359	)		—
Sale		(736,955)			—			—			—
Provision (reversal) for loan losses		2,034,322			11,468,096			21,470,855			—

Ending		11,101,565			11,558,280			28,260,199			—

Among the loans which have been written-off, the Company manages loans for which the claims against borrowers have not been lost due to reasons such as incomplete extinctive prescription pursuant to relevant laws and uncollected receivables after writing-off, as the written-off loans. As at December 31, 2024 and 2023, the balances of the written-off loans are 23,256,163 thousand and 21,186,737 thousand, respectively.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Broker’s loan

The Company provides loans for stock purchases with credit period of 180 days (can be extended for six times) for investors using margin transaction. As at December 31, 2024, interest rate of the loan is differentiated from 5.2% to 9.5% based on maturities, and overdue interest rate is 9.9%.

Also, as the Company operates loans secured by securities. At the initial transaction, in case of superior shares and common shares, the Company requires trading securities or cash as collateral, corresponding to 167% and 250% of the loan, respectively. Over 140% collateral of the loan is required. As at December 31, 2024, the interest rate of loans secured by securities is differentiated from Annual Percentage Rate(APR) 6.9% to 9.5% based on maturities, from APR 7.3% to 8.8% based on credit rating, and the loan with past due date is 9.9%

For margin loans to customers, trading securities or cash is required to be pledged corresponding to 140% of the loan. Because of this condition, the Company pledged securities as collateral which are purchased with the margin loans. If the value of the pledged securities do not reach to 140% of the loan, the Company requires additional cash or trading securities as collateral.

Advances for Customers

Advances for customers consist of advanced payments on loss compensation and advanced payments for others.

Advanced payments on loss compensation are the monetary amount of claim for reimbursement, paid by the Company, if any losses from embezzlement and arbitrary trading are occurred.

11. Property and Equipment

The details of property and equipment as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation		Book amount
Land		24,968,018		—			83,580,757		108,548,775
Buildings		35,261,074		(18,434,749	)		—		16,826,325
Furniture and equipment		189,588,367		(158,282,457	)		—		31,305,910
Others		63,979,468		(48,232,762	)		—		15,746,706
Right-of-use assets		180,390,780		(108,997,971	)		—		71,392,809

		494,187,707		(333,947,939	)		83,580,757		243,820,525

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation		Book amount
Land		28,369,717		—			83,580,757		111,950,474
Buildings		40,740,713		(19,791,950	)		—		20,948,763
Furniture and equipment		173,705,240		(145,107,592	)		—		28,597,648
Others		58,162,791		(46,374,171	)		—		11,788,620
Right-of-use assets		151,654,509		(91,495,514	)		—		60,158,995

		452,632,970		(302,769,227	)		83,580,757		233,444,500

The details of right-of-use assets as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Book amount
Buildings		172,248,338		(104,051,701	)		68,196,637
Vehicles		4,036,673		(2,487,740	)		1,548,933
Others		4,105,769		(2,458,530	)		1,647,239

		180,390,780		(108,997,971	)		71,392,809


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Book amount
Buildings		143,730,769		(87,627,963	)		56,102,806
Vehicles		4,035,307		(2,366,979	)		1,668,328
Others		3,888,433		(1,500,572	)		2,387,861

		151,654,509		(91,495,514	)		60,158,995

The changes in property and equipment for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others 1			Ending balance
Land		111,950,474		—		—			—			(3,401,699	)		108,548,775
Buildings		20,948,763		—		—			(908,413	)		(3,214,025	)		16,826,325
Furniture and equipment		28,597,648		16,954,630		(12,122	)		(14,234,246	)		—			31,305,910
Others		11,788,620		10,400,418		(99,866	)		(6,342,466	)		—			15,746,706
Right-of-use assets		60,158,995		37,281,025		(1,172,393	)		(24,874,818	)		—			71,392,809

		233,444,500		64,636,073		(1,284,381	)		(46,359,943	)		(6,615,724	)		243,820,525

1	Others consist of reclassification to investment properties and others.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others 1			Ending balance
Land		111,823,202		—		—			—			127,272			111,950,474
Buildings		21,908,840		—		—			(1,005,321	)		45,244			20,948,763
Furniture and equipment		32,543,618		10,671,895		(8,908	)		(14,608,957	)		—			28,597,648
Others		12,150,697		5,086,739		(5,402	)		(5,443,414	)		—			11,788,620
Right-of-use assets		75,379,893		11,588,643		(1,658,599	)		(23,719,467	)		(1,431,475	)		60,158,995

		253,806,250		27,347,277		(1,672,909	)		(44,777,159	)		(1,258,959	)		233,444,500

1	Others consist of reclassification to investment properties and others.

The changes in right-of-use assets for the year ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Ending balance
Buildings		56,102,806		35,380,380		(755,810	)		(22,530,739	)		68,196,637
Vehicles		1,668,328		1,609,049		(416,583	)		(1,311,861	)		1,548,933
Others		2,387,861		291,596		—			(1,032,218	)		1,647,239

		60,158,995		37,281,025		(1,172,393	)		(24,874,818	)		71,392,809


	2023
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others 1			Ending balance
Buildings		72,115,792		7,932,226		(1,450,914	)		(21,391,701	)		(1,102,597	)		56,102,806
Vehicles		2,258,588		1,246,881		(207,685	)		(1,319,688	)		(309,768	)		1,668,328
Others		1,005,513		2,409,536		—			(1,008,078	)		(19,110	)		2,387,861

		75,379,893		11,588,643		(1,658,599	)		(23,719,467	)		(1,431,475	)		60,158,995

1	Others consist of transfer to lease and others.

The Company applies the revaluation model in relation to the measurement after the initial recognition of the land and the date of revaluation of the land was August 5, 2022. The Company used the assessed price provided by qualified appraiser for the revaluation of the land.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Classification of land that is measured at fair value by fair value hierarchy levels as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		108,548,775		108,548,775

	2023
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		111,950,474		111,950,474

Changes in land which is classified to Level 3 for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		111,950,474			111,823,202
Reclassification to property and equipment		—			127,272
Reclassification to investment properties		(3,401,699	)		—

Ending balance		108,548,775			111,950,474

Book amounts of land under cost model as at December 31, 2024 and 2023, are as follows:


	2024				2023
(in thousands of Korean won)	Under revaluation model		Under cost model		Under revaluation model		Under cost model
Land		108,548,775		24,968,018		111,950,474		28,369,717

Changes in other comprehensive income related to the revaluation for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance			Other		Ending balance
Land		84,032,663			—		84,032,663
Income tax effects		(22,282,377	)		—		(22,282,377	)

After income tax		61,750,286			—		61,750,286


	2023
(in thousands of Korean won)	Beginning balance			Re-evaluation		Ending balance
Land		84,032,663			—		84,032,663
Income tax effects		(22,366,410	)		84,033		(22,282,377	)

After income tax		61,666,253			84,033		61,750,286

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

12. Investment Properties

The details of investment properties as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation			Book amount
Land		12,073,448		—			(332,250	)		11,741,198
Buildings		20,655,928		(12,157,403	)		—			8,498,525

		32,729,376		(12,157,403	)		(332,250	)		20,239,723


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation			Book amount
Land		8,671,749		—			(332,251	)		8,339,498
Buildings		15,176,289		(9,411,664	)		—			5,764,625

		23,848,038		(9,411,664	)		(332,251	)		14,104,123

The changes in investment properties for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Disposal		Depreciation			Re-classi- fication			Ending balance
Land		8,339,498		—		—			3,401,700			11,741,198
Buildings		5,764,625		—		(480,124	)		3,214,024			8,498,525

		14,104,123		—		(480,124	)		6,615,724			20,239,723


	2023
(in thousands of Korean won)	Beginning balance		Disposal		Depreciation			Re-classi- fication			Ending balance
Land		8,466,770		—		—			(127,272	)		8,339,498
Buildings		6,193,084		—		(383,216	)		(45,243	)		5,764,625

		14,659,854		—		(383,216	)		(172,515	)		14,104,123

Details of income and expenditure on investment properties for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Rental income		2,252,676			1,939,106
Expenditure on operating investment properties		(657,475	)		(1,038,663	)
Expenditure on non-operating investment properties		—			(1,939	)

		1,595,201			898,504

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Details of fair value of investment properties as at December 31, 2024 and 2023 are as follows:


	2024				2023
(in thousands of Korean won)	Book amount		Fair value		Book amount		Fair value
Land		11,741,198		51,738,955		8,339,498		46,547,855
Buildings		8,498,525		11,830,760		5,764,625		8,389,170

		20,239,723		63,569,715		14,104,123		54,937,025

The fair values of investment properties as at December 31, 2024 was evaluated by an independent appraiser, based on the evaluation result at August 5, 2022. The qualified appraiser is a member of the Korea Appraisers Association and has appropriate qualifications and experience in evaluating real estate in the location of investment properties. This evaluation was based on international evaluation standards and is based on the market price of similar real estate.

The fair values of investment properties are classified as Level 3 based upon the inputs, which are used in valuation method.

Investment properties are provided as collaterals for rental deposits and lease hold right, which amount to 610,000 thousand and 610,000 thousand as at December 31, 2024 and 2023, respectively.

13. Intangible Assets

The details of intangible assets as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment			Book amount
Goodwill		58,888,990		—			—			58,888,990
Development costs		312,698,214		(209,465,882	)		—			103,232,332
Software		131,754,829		(112,738,150	)		—			19,016,679
Memberships		44,676,414		(146,117	)		(7,093,242	)		37,437,055
Others		23,294,717		—			—			23,294,717

		571,313,164		(322,350,149	)		(7,093,242	)		241,869,773


	2023
(in thousands of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment			Book amount
Goodwill		58,888,990		—			—			58,888,990
Development costs		271,791,803		(167,392,492	)		—			104,399,311
Software		124,767,737		(100,721,088	)		—			24,046,649
Memberships		42,759,695		(133,491	)		(7,983,800	)		34,642,404
Others		23,294,717		—			—			23,294,717

		521,502,942		(268,247,071	)		(7,983,800	)		245,272,071

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The changes in intangible assets for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance		Acquisition1		Disposal			Amorti -zation			Impairment2			Reversal of Impairment3		Ending balance
Goodwill		58,888,990		—		—			—			—			—		58,888,990
Development costs		104,399,311		40,991,592		—			(42,158,571	)		—			—		103,232,332
Software		24,046,649		6,987,091		—			(12,017,061	)		—			—		19,016,679
Memberships		34,642,404		2,887,619		(970,900	)		(12,626	)		(128,738	)		1,019,296		37,437,055
Others		23,294,717		—		—			—			—			—		23,294,717

		245,272,071		50,866,302		(970,900	)		(54,188,258	)		(128,738	)		1,019,296		241,869,773

1	Advance payments and others transferred from other accounts are included.

2	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Company recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2024.

3	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Company recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2024.


	2023
(in thousands of Korean won)	Beginning balance		Acquisition1		Disposal			Amorti -zation			Impairment2			Reversal of Impairment3		Ending balance
Goodwill		58,888,990		—		—			—			—			—		58,888,990
Development costs		47,347,359		84,922,193		—			(27,870,241	)		—			—		104,399,311
Software		28,326,715		7,422,297		—			(11,702,363	)		—			—		24,046,649
Memberships		27,632,780		5,962,498		(586,929	)		(17,652	)		(74,692	)		1,726,399		34,642,404
Others		23,294,717		—		—			—			—			—		23,294,717

		185,490,561		98,306,988		(586,929	)		(39,590,256	)		(74,692	)		1,726,399		245,272,071

1	Advance payments and others transferred from other accounts are included.

2	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Company recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2023.

3	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Company recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2023.

14. Other Financial Assets

The details of other financial assets as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Other receivables		2,127,747,012			3,405,945,754
Accrued income		286,481,269			233,498,176
Accrued interest on bonds		295,740,832			268,457,904
Guarantee deposits		62,385,232			63,018,206
Other		137,520,224			157,061,158
Provision for other financial assets		(52,494,450	)		(51,522,487	)

		2,857,380,119			4,076,458,711

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

15. Other Assets

The details of other assets as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Other receivables		—		1,117
Advance payments		39,142,703		37,346,174
Prepaid expenses		121,001,625		83,535,083
Prepaid value-added taxes		33,293		185,241
Others		13,406,610		12,848,867

		173,584,231		133,916,482

16. Deposit Liabilities

The details of deposit liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Customers’ deposits
Customers’ deposits for brokerage		5,773,748,168		5,519,397,856
Customers’ deposits for exchange-traded derivatives trading		456,979,182		547,223,805
Customers’ deposits for savings		6,997,054		5,880,012
Customers’ deposits for repo		61,541		61,587
Customers’ deposits for the investor of collective investment securities		456,285,969		249,819,423
Others		7,780		48,652

		6,694,079,694		6,322,431,335

Guarantee deposits
Guarantee deposits in foreign currency		680,406,569		395,717,894
Guarantee deposits in Korean won		370,164,013		415,758,876

		1,050,570,582		811,476,770

		7,744,650,276		7,133,908,105

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

17. Borrowings

The details of borrowings as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Call money		820,000,000			1,240,000,000
Borrowings:
Borrowing from KSFC		1,264,581,631			1,262,819,934
Asset-backed short-term bonds		430,000,000			375,000,000
CP borrowings		5,000,000,000			3,380,000,000
Securities sold under repurchase agreements		9,419,893,685			9,036,097,623
Short-term note issued		10,130,450,816			9,587,511,022
Debentures:
Debentures		3,461,000,000			2,516,820,000
Less: discount on debentures issued		(5,588,531	)		(4,361,049	)

		30,520,337,601			27,393,887,530

The details of call money as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Interest rate (%)		2024		2023
Samsung Asset Management Co., Ltd. and others		3.28~3.43		820,000,000		1,240,000,000

The details of borrowings as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)		Interest rate (%)		2024		2023
Borrowings from KSFC	KSFC		3.40~3.96		1,264,581,631		1,262,819,934
Asset-backed short-term bonds	SK Securities Co., Ltd. and others		3.37~3.59		430,000,000		375,000,000
CP borrowings	Hyundai Motor Securities Co., Ltd. and others		3.41~3.87		5,000,000,000		3,380,000,000

					6,694,581,631		5,017,819,934

The details of securities sold under repurchase agreements as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Interest rate (%)		2024		2023
Customers		0.00~5.00		5,913,024,606		5,578,817,182
Financial institution		2.17~3.37		3,506,869,079		3,457,280,441

				9,419,893,685		9,036,097,623

The details of short-term note issued as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Interest rate (%)		2024		2023
Individual		2.65~5.20		6,149,462,845		6,560,366,893
Corporate		2.60~5.20		3,980,987,971		3,027,144,129

				10,130,450,816		9,587,511,022

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The details of debentures as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	Date issued		Maturity		Interest rate (%)		2024			2023
The 36-2nd unsecured public debenture		2019.04.18		2024.04.18		2.09		—			250,000,000
The 37-2nd unsecured public debenture		2019.06.14		2024.06.14		1.80		—			150,000,000
The 39-1st unsecured public debenture		2021.03.04		2024.03.04		1.31		—			110,000,000
The 39-2nd unsecured public debenture		2021.03.04		2026.03.04		1.70		120,000,000			120,000,000
The 40-1st unsecured public debenture		2021.04.23		2024.04.23		1.53		—			300,000,000
The 40-2nd unsecured public debenture		2021.04.23		2026.04.23		1.94		200,000,000			200,000,000
The 41-1st unsecured public debenture		2023.02.07		2025.02.07		3.88		330,000,000			330,000,000
The 41-2nd unsecured public debenture		2023.02.07		2026.02.06		3.85		210,000,000			210,000,000
The 42-1st unsecured public debenture		2023.06.26		2025.06.26		4.39		240,000,000			240,000,000
The 42-2nd unsecured public debenture		2023.06.26		2026.06.26		4.43		220,000,000			220,000,000
The 43-1st unsecured public debenture		2024.01.31		2025.07.31		3.94		160,000,000			—
The 43-2nd unsecured public debenture		2024.01.31		2026.01.30		3.94		230,000,000			—
The 43-3rd unsecured public debenture		2024.01.31		2027.01.29		3.98		410,000,000			—
The 44-1st unsecured public debenture		2024.04.23		2025.10.23		3.79		100,000,000			—
The 44-2nd unsecured public debenture		2024.04.23		2026.04.23		3.82		100,000,000			—
The 44-3rd unsecured public debenture		2024.04.23		2027.04.23		3.86		200,000,000			—
The 45-1st unsecured public debenture		2024.09.03		2026.09.03		3.56		220,000,000			—
The 45-2nd unsecured public debenture		2024.09.03		2027.09.03		3.56		280,000,000			—
The 21-1 public debenture in foreign currency 1		2021.11.01		2026.11.01		2.13		441,000,000			386,820,000

								3,461,000,000			2,516,820,000

Less: Discount on debentures issued								(5,588,531	)		(4,361,049	)

								3,455,411,469			2,512,458,951

1	The issuance price of this public debenture is US$ 300,000,000.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The changes in borrowings for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		27,393,887,530			20,575,667,241
Increase in call money		(420,000,000	)		410,000,000
Increase in borrowings from KSFC		1,761,697			18,597,692
Increase(decrease) in asset-backed short-term bonds		55,000,000			(879,200,000	)
Increase in CP borrowings		1,620,000,000			1,460,000,000
Increase(decrease) in securities sold under repurchase agreements		383,796,062			2,804,707,214
Increase in short-term note issued		542,939,794			2,338,081,821
Increase(decrease) in debentures		942,952,518			666,033,562

Ending balance		30,520,337,601			27,393,887,530

18. Post-employment Benefits

18.1 Defined Benefit Plans

The details of defined benefit liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Present value of defined benefit obligations		78,860,310			74,927,348
Fair value of plan assets		(10,971,828	)		(13,270,798	)

Net defined benefit liabilities		67,888,482			61,656,550

The changes in the defined benefit obligation for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		74,927,348			67,247,328
Current service cost		22,230,351			19,390,274
Interest cost		2,436,755			2,511,195
Remeasurements:
Actuarial gains and losses arising from changes in demographic assumptions		34,904			—
Actuarial gains and losses arising from changes in financial assumptions		4,697,042			5,658,388
Actuarial gains and losses arising from experience adjustments		1,535,882			1,119,181
Payments from plans:		(1,291,060	)		(521,708	)
Payments from the Company		(21,182,524	)		(19,564,548	)
Transfer from related companies		—			—
Transfer to related companies		(2,777,338	)		(912,762	)
Gain or loss on settlement		(1,751,050	)		—

Ending balance		78,860,310			74,927,348

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The changes in the fair value of plan assets for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(13,270,798	)		(12,430,101	)
Interest income		(549,651	)		(610,329	)
Remeasurements:
Return on plan assets (excluding amounts included in interest income)		180,223			35,162
Contributions by employers		(1,400,000	)		(1,700,000	)
Payments from plans:
Benefits paid		1,291,060			521,708
Transfer to related companies		2,777,338			912,762

Ending balance		(10,971,828	)		(13,270,798	)

Plan assets are composed of the detail assets that have no quoted price in active market. The details of plan assets as at December 31, 2024 and 2023, are as follows:


	2024				2023
(in thousands of Korean won)	Fair value		Composition(%)		Fair value		Composition(%)
Cash and deposits		10,122,822		92.26		8,202,579		61.81
Investment funds		849,006		7.74		5,068,219		38.19

		10,971,828		100.00		13,270,798		100.00

Key actuarial assumptions used as at December 31, 2024 and 2023, are as follows:


	2024	2023
Discount rate	DB (including special retirement by salaries peak plan) 3.6%, Compensation promotion DC 3.2%	DB (including special retirement by salaries peak plan) 4.3%, Compensation promotion DC 3.7%

Expected salary growth rate	DB : executives 4.8% DC: Promotion + Base up: 2.7%, Special retirement by Salaries peak plan : 4.8%	DB : executives 4.9% DC: Promotion + Base up: 2.6%, Special retirement by Salaries peak plan : 4.9%

The sensitivity analysis for significant actuarial assumptions used to determine the present value of the defined benefit obligation as at December 31, 2024, are as follows:


	Effect on the present value of defined benefit obligation
(in thousands of Korean won)	Changes in assumption			Increase			Decrease
Discount rate		0.50	%		(1,914,760	)		2,030,855
Expected salary growth rate1		0.50	%		1,860,858			(1,763,912	)
Retirement rate		0.50	%		(1,619,401	)		1,707,303

1	The sensitivity analysis for the expected salary growth rate is limited to special retirement by salaries peak plan and DB.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The methods and assumptions used in preparing the sensitivity analyses did not change compared to the previous period.

The effect of defined benefit plan on future cash inflows

Expected maturity analysis of undiscounted pension benefits as at December 31, 2024, is as follows:


(in thousands of Korean won)	Less than 1 year		Between 1 and 2 years		Between 2 and 5 years		Between 5 and 10 years		Over 10 years		Total
Pension benefits1		5,578,505		8,178,609		28,542,656		31,525,862		67,990,816		141,816,448

1	Fixed pension benefits of 14.7 billion under promotion compensation defined contribution plan are excluded.

The weighted average duration of the defined benefit obligations is 5.84 years.

Expected contribution to post-employment benefit plans for the year ending December 31, 2025 are 1,310,000 thousand.

18.2 Defined Contribution Plans

The Company recognized the expenses of 4,775,485 thousand and 7,211,349 thousand for defined contribution plans for the years ended December 31, 2024 and 2023, respectively.

19. Provisions

The details of provisions as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Provisions for non-financial guarantees		4,363,358		6,414,834
Provisions for asset retirement obligation1		9,236,979		9,058,920
Provisions for lawsuits		75,204,159		111,425,114
Provisions for others		48,593,048		86,029,362

		137,397,544		212,928,230

1	The Company recognized the provision for asset retirement obligation in connection with the leased asset for the expenditures expected to recover the asset.

The changes in provisions for non-financial guarantees for the years ended December 31, 2024 and 2023 are as follows,


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses
				Non- impaired			Impaired
Beginning		6,218,110			196,724			—
Transfer between stages
Transfer to lifetime expected credit Losses(non-impaired)		(274,031	)		274,031			—
Provision for losses (reversal of provision)		(1,771,950	)		(279,526	)		—

Ending		4,172,129			191,229			—

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses
			Non-impaired			Impaired
Beginning		1,223,748		232,358			—
Provision for losses (reversal of provision)		4,994,143		(35,634	)		—
Other transfer (foreign exchange and other)		219		—			—

Ending		6,218,110		196,724			—

The changes in other provisions for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Provisions for asset retirement obligation			Provisions for lawsuits			Provisions for others			Total
Beginning		9,058,920			111,425,114			86,029,362			206,513,396
Contribution		215,297			12,982,498			25,314,711			38,512,506
Reversal		—			(34,099,212	)		(4,600,000	)		(38,699,212	)
Use		(87,527	)		(15,104,241	)		(58,151,025	)		(73,342,793	)
Amortization of discounts		50,289			—			—			50,289

Ending		9,236,979			75,204,159			48,593,048			133,034,186


	2023
(in thousands of Korean won)	Provisions for asset retirement obligation			Provisions for lawsuits			Provisions for others			Total
Beginning		8,802,261			51,221,194			89,454,890			149,478,345
Contribution		259,114			57,194,551			8,490,000			65,943,665
Reversal		—			—			(8,100,000	)		(8,100,000	)
Use		(77,219	)		(150,631	)		(655,528	)		(883,378	)
Amortization of discounts		74,764			—			—			74,764
Other 1		—			3,160,000			(3,160,000	)		—

Ending		9,058,920			111,425,114			86,029,362			206,513,396

1	As a lawsuit was filed during the year ended December 31, 2023, the estimated loss on the sale of funds related to Lime Asset Management was replaced to provisions for lawsuits.

20. Other Financial Liabilities

The details of other financial liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Other payables		1,779,667,697		3,454,954,452
Accrued expenses		162,550,204		122,376,810
Financial guarantee liabilities		85,380,689		49,618,487
Provisions for financial guarantee contracts		111,502,489		87,624,173
Leasehold deposits received		8,486,957		8,274,358
Lease liabilities		100,240,625		97,681,939
Other		46,469,386		47,337,787

		2,294,298,047		3,867,868,006

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The changes in liabilities of the provisions for financial guarantee contracts for the years ended December 31, 2024 and 2023 are as follows:


(in thousands of Korean won)	2024
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses
				Non-impaired			Impaired
Beginning		21,881,154			65,743,019			—
Transfer between stages
Transfer to 12-month expected credit Losses		3,166,992			(3,166,992	)		—
Transfer to lifetime expected credit Losses (Non-impaired)		(8,143,934	)		8,143,934			—
Transfer to lifetime expected credit Losses (Impaired)		—			(8,234,789	)		8,234,789
Provision (reversal)		(1,848,620	)		49,928,254			—
Execution of the contract		—			(6,666,529	)		(8,234,789	)
Sales		(9,300,000	)		—			—

Ending		5,755,592			105,746,897			—


(in thousands of Korean won)	2023
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses
				Non-impaired			Impaired
Beginning		14,984,493			1,592,918			—
Transfer between stages
Transfer to lifetime expected credit Losses (Non-impaired)		(2,145,335	)		2,145,335			—
Transfer to lifetime expected credit Losses (Impaired)		(19,894	)		—			19,894
Provision (reversal)		9,061,890			62,004,766			(19,894	)

Ending		21,881,154			65,743,019			—

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

21. Other Liabilities

The details of other liabilities as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Account payables		7,162,892		16,495,445
Accrued expenses		288,909,701		240,392,084
Accrued dividends		1,359,608		6,947,805
Advances from customers		5,875,006		5,602,168
Unearned revenue		11,075,339		10,300,322
Taxes withheld		57,035,532		46,567,059
Other long-term employee benefits		7,244,299		7,075,328
Others		2,899,057		2,362,726

		381,561,434		335,742,937

22. Share Capital

The details of share capital as at December 31, 2024 and 2023, are as follows:

(in thousands of Korean won, except per share)

Authorized shares

Outstanding
shares

Par value

per share

2024

2023

Ordinary share

1,000,000,000
shares

298,620,424
shares

5,000
won

1,493,102,120

There are no changes in ordinary shares for the years ended December 31, 2024 and 2023.

23. Hybrid Securities

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


(in thousands of Korean won)	Issuance date		Maturity		Interest rate (%)		2024		2023
Bond-type Hybrid Securities No.11		March 31, 2022		Permanent		4.30		208,010,652		208,010,652
Bond-type Hybrid Securities No.2		May 30, 2022		Permanent		4.80		48,170,880		48,170,880
Bond-type Hybrid Securities No.32		September 30, 2022		Permanent		5.50		249,948,780		249,948,780
Bond-type Hybrid Securities No.43		May 8, 2023		Permanent		5.35		119,963,080		119,963,080
Bond-type Hybrid Securities No.5		March 21, 2024		Permanent		5.22		129,999,380		—

								756,092,772		626,093,392

1	As at December 31, 2024 and 2023, among the hybrid securities issued by the Company, the balance held by KB Financial Group, a related party of the Company, is 200,000 million.

2	As at December 31, 2024 and 2023, among the hybrid securities issued by the Company, the balance held by KB Financial Group, a related party of the Company, is 230,000 million.

3	As at December 31, 2024 and 2023, among the hybrid securities issued by the Company, the balance held by KB Financial Group, a related party of the Company, is 100,000 million.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The Company may extend the maturity under the same conditions at the time of maturity of the above hybrid securities, and interest payment may be deferred except in cases where a cash dividend or stock dividend has been resolved for common stock. Above hybrid securities are early redeemable by the Company after 5 years from the issuance date and each interest payment date thereafter.

24. Other Paid-in Capital

The details of other paid-in capital as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Share premium 1		1,142,353,750			1,142,353,750
Gains and losses on sale of treasury share		(45,331,811	)		(45,331,811	)
Other equity 2		382,088,147			382,088,147

		1,479,110,086			1,479,110,086

1	Share premium was previously paid from stock issuance and new stock issuance due to merger and can only be used for capitalization and deficit recovery.

2	Other equity arose from the paid-in capital increase of preferred share and gains on merger.

There are no changes in other paid-in capital for the years ended December 31, 2024 and 2023.

25. Retained Earnings

The details of retained earnings as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Legal reserve
Earned surplus reserve 1		173,656,298		158,656,298
Reserve for liability to compensate for damages 2		500,000		500,000
Voluntary reserves		1,889,816,387		1,678,600,357
Regulatory reserve for credit losses 3		47,300,393		100,315,429
Unappropriated retained earnings		546,730,704		323,200,993

		2,658,003,782		2,261,273,077

The Commercial Act of the Republic of Korea requires the Company to appropriate, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends, but may be transferred to share capital or used to reduce accumulated deficit.

The Company provides reserve for loss on electronic financial transactions to make reparation for the damage in process of the electronic transfers or operations. Also, the Company provides reserve to compensate for inflicted damage on a credit information subject when violating the Credit Information Use and Protection Act.

3	The Company accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Financial Supervisory Service.

Changes in retained earnings for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		2,261,273,077			2,038,072,084
Profit for the year		582,368,985			352,363,541
Dividends		(150,000,000	)		(100,000,000	)
Dividends of hybrid securities		(37,064,078	)		(29,162,548	)
Replacement due to disposal of equity investments at FVOCI		1,425,798			—

Ending balance		2,658,003,782			2,261,273,077

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The amount of dividends and dividends per share for the years ended December 31, 2024 and 2023, are as follows:

2024

(in Korean won and number of shares)

Type of
share

Number of
shares
outstanding

Number of
treasury

Number of
dividend
shares

Dividend
per

Total dividend

(In thousands of
Korean won)

Annual dividend

Ordinary
share

298,620,424
shares

—

298,620,424

502

150,000,000

2023

(in Korean won and number of shares)

Type of
share

Number of
shares
outstanding

Number of
treasury

Number of
dividend
shares

Dividend
per

Total dividend

(In thousands of
Korean won)

Annual dividend

Ordinary
share

298,620,424
shares

—

298,620,424

334

100,000,000

Appropriation of retained earnings for the years ended December 31, 2024 and 2023, consists of:


	2024				2023
(in thousands of Korean won)	(Expected date of appropriation: March 21, 2025)				(Date of appropriation: March 21, 2024)
Unappropriated retained earnings
Balance at the beginning of year		—				—
Changes of accounting policies		—				—
Interim dividend		—				—
Dividends of hybrid securities		(37,064,078	)			(29,162,548	)
Transfer due to disposal of revaluation assets		1,425,798				—
Profit for the year		582,368,985		546,730,705		352,363,541		323,200,993

Transfers such as discretionary reserves
Regulatory reserve for credit losses		—				53,015,036
Voluntary reserves		—		—		—		53,015,036

				546,730,705				376,216,029

Appropriation of retained earnings
Earned surplus reserve		28,000,000				15,000,000
Regulatory reserve for credit losses		19,104,292				—
Voluntary reserves		219,626,413				211,216,029
Dividends		280,000,000		546,730,705		150,000,000		376,216,029

(cash dividends per ordinary share: 937 (18.75%) in 2024)
(cash dividends per ordinary share: 502 (10.04%) in 2023)
Unappropriated retained earnings carried forward to subsequent year				—				—

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Payout and dividend yield ratios as at December 31, 2024 and 2023, are as follows:


	2024			2023
	Ordinary share			Ordinary share
	Annual dividend			Annual dividend
Number of shares outstanding		298,620,424			298,620,424
Number of treasury shares		—			—
Number of dividend shares		298,620,424			298,620,424
Par value per share (in Korean won)		5,000			5,000
Payout ratio		18.75	%		10.04	%
Scheduled dividends (in thousands of Korean won)		280,000,000			150,000,000
Dividends per share (in Korean won)		937			502

The Company accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Regulation on Supervision of Financial Investment.

The details of the regulatory reserve for credit losses (reversal of reserve) to be appropriated as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Beginning		47,300,393		100,315,429
Amounts to be reserved (reversed)		19,104,292		(53,015,036	)

Ending		66,404,685		47,300,393

The adjusted profit of the year after reflection of reserve for credit losses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Profit for the year before reserve for credit loss		582,368,985			352,363,541
Amounts to be reversed (reserved)		(19,104,292	)		53,015,036

Adjusted profit after reversal (provision) of reserve for credit losses1		563,264,693			405,378,577

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

26. Other Components of Equity

The details of other components of equity as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Changes in the fair value of financial assets at FVOCI		296,080,981			290,063,237
Revaluation surplus		62,144,795			62,144,795
Remeasurements of net defined benefit liabilities		(47,538,042	)		(42,792,277	)
Gain or loss on financial liabilities designated at FVTPL due to the change of credit risk		(17,297,087	)		(11,782,162	)

		293,390,647			297,633,593

The changes in gain or loss on valuation of financial assets at FVOCI for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		290,063,237			233,760,812
Gain on valuation		13,894,324			62,120,448
Tax effect of gain (loss) on valuation 1		(3,668,102	)		(16,026,282	)
Transfer to gain due to disposal or impairment		(5,718,041	)		13,869,917
Tax effect of transfer 1		1,509,563			(3,661,658	)

Ending balance		296,080,981			290,063,237

1	Including income tax effect (Note 35)

The changes in gain on revaluation of property and equipment for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Beginning balance		62,144,795		62,060,360
Tax effect of net gains on revaluation 1		—		84,435

Ending balance		62,144,795		62,144,795

1	Including income tax effect (Note 35)

The changes in remeasurements of the net defined benefit liability for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(42,792,277	)		(37,778,107	)
Changes during the year		(6,448,050	)		(6,812,731	)
Tax effect 1		1,702,285			1,798,561

Ending balance		(47,538,042	)		(42,792,277	)

1	Including income tax effect (Note 35)

The change in gain or loss on financial liabilities designated at FVTPL due to the change of credit risk for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Beginning balance		(11,782,162	)		41,080,867
Changes during the year		(7,493,104	)		(71,900,708	)
Tax effect 1		1,978,179			19,037,679

Ending balance		(17,297,087	)		(11,782,162	)

1	Including income tax effect (Note 35)

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

27. Fee and Commission Income and Expense

The details of fee and commission income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Brokerage commissions		527,054,557		505,724,502
Underwriting commissions		173,075,978		135,286,825
Brokerage commissions on collective investment securities		23,565,918		19,252,925
Management fee on asset management		38,491,400		24,227,127
Commissions on merger and acquisition		90,377,909		97,120,428
Trust fees and commissions		17,866,581		18,564,028
Other commissions		125,104,830		140,908,136

		995,537,173		941,083,971

The details of fee and commission expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Trading commission		56,741,202		56,240,638
Advisory fees		3,047,910		1,038,490
Investment management delegation fees		282,523		378,829
Commission fees on group brand		21,019,189		26,136,638
Contributions to other institutions		9,056,725		8,023,014
Others		122,784,021		118,685,646

		212,931,570		210,503,255

28. Gain or Loss on Valuation and Disposal of Financial Instruments

The details of gain or loss on valuation and disposal of financial instruments for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial instruments at FVTPL		1,841,452,937		1,549,680,899		291,772,038
Financial instruments designated at FVTPL		324,748,471		640,871,724		(316,123,253	)
Derivative financial instruments		4,541,514,495		4,387,085,652		154,428,843
Financial assets at FVOCI 1		13,207,427		717,576		12,489,851

		6,720,923,330		6,578,355,851		142,567,479

1	Gain or loss on valuation of financial assets at FVOCI is excluded.


	2023
(in thousands of Korean won)	Gain		Loss		Net
Financial instruments at FVTPL		1,940,096,949		1,211,466,813		728,630,136
Financial instruments designated at FVTPL		727,598,407		1,057,169,764		(329,571,357	)
Derivative financial instruments		5,027,369,696		5,176,387,032		(149,017,336	)
Financial assets at FVOCI 1		3,240,874		3,579,804		(338,930	)

		7,698,305,926		7,448,603,413		249,702,513

1	Gain or loss on valuation of financial assets at FVOCI is excluded.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The details of gain or loss on valuation and disposal of financial instruments at FVTPL for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial assets at FVTPL		1,484,814,072		1,191,769,358		293,044,714
Financial liabilities at FVTPL		356,638,865		357,911,541		(1,272,676	)

		1,841,452,937		1,549,680,899		291,772,038


	2023
(in thousands of Korean won)	Gain		Loss		Net
Financial assets at FVTPL		1,748,959,887		704,952,978		1,044,006,909
Financial liabilities at FVTPL		191,137,062		506,513,835		(315,376,773	)

		1,940,096,949		1,211,466,813		728,630,136

The details of gain or loss on valuation and disposal of financial instruments designated at FVTPL for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold		266,262,027		526,918,763		(260,656,736	)
Other OTC derivative-combined contract sold		39,681,189		77,671,319		(37,990,130	)
Exchange traded notes sold		18,805,255		36,281,642		(17,476,387	)

		324,748,471		640,871,724		(316,123,253	)


	2023
(in thousands of Korean won)	Gain		Loss		Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold		567,910,956		879,330,365		(311,419,409	)
Other OTC derivative-combined contract sold		129,915,134		154,821,326		(24,906,192	)
Exchange traded notes sold		29,772,317		23,018,073		6,754,244

		727,598,407		1,057,169,764		(329,571,357	)

The details of gain or loss on valuation and disposal of derivative financial instruments for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Interest rate		1,254,844,029		1,355,656,950		(100,812,921	)
Currency		756,112,000		702,054,414		54,057,586
Stock		2,346,946,346		2,068,252,287		278,694,059
Credit		46,411,148		42,064,301		4,346,847
Commodity		63,666,021		57,086,321		6,579,700
Others		73,534,951		161,971,379		(88,436,428	)

		4,541,514,495		4,387,085,652		154,428,843

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Gain		Loss		Net
Interest rate		2,137,530,340		2,159,871,413		(22,341,073	)
Currency		699,007,323		701,286,144		(2,278,821	)
Stock		1,950,908,686		2,088,474,647		(137,565,961	)
Credit		32,631,396		35,689,309		(3,057,913	)
Commodity		30,829,129		42,149,844		(11,320,715	)
Others		176,462,822		148,915,675		27,547,147

		5,027,369,696		5,176,387,032		(149,017,336	)

The details of gain or loss on disposal of financial assets at FVOCI for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Gain		Loss		Net
Debt instruments		13,207,427		717,576		12,489,851

	2023
(in thousands of Korean won)	Gain		Loss		Net
Debt instruments		3,240,874		3,579,804		(338,930	)

29. Interest Income and Interest Expense

The details of interest income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Interest on financial assets at FVTPL
Interest on debt instruments at FVTPL		675,737,193		625,539,039
Interest on loans at FVTPL		14,455,538		—
Interest on commercial papers		149,585,454		182,112,270

		839,778,185		807,651,309

Interest on financial assets at FVOCI and financial assets measured at amortised cost
Interest on loans measured at amortised cost		7,418,368		3,832,928
Interest on debt instruments at FVOCI		199,362,668		170,895,226
Interest on broker’s loans		221,243,066		228,177,604
Interest on loans		210,184,851		190,128,411
Interest on deposits with KSFC		32,054,407		22,932,437
Interest on certificate of deposit		778,877		—
Interest on deposits with financial institution		129,946		356,594
Interest on bonds purchased under resale agreements		53,913,386		42,484,716
Gains on transactions of certificates of deposits		79,435		69,266
Interest on deposits		27,459,312		36,128,689
Interest on other receivables		769,006		764,747
Others 1		17,480,435		34,286,948
		770,873,757		730,057,566

		1,610,651,942		1,537,708,875

1	Interest on lease receivables of 779 million and 935 million for the year ended December 31, 2024 and 2023, respectively, are included.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The details of interest expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Interest on borrowings		63,068,307		61,742,569
Interest on customers’ deposits		57,234,396		54,585,335
Interest on bonds sold under repurchase agreements		305,570,078		309,464,045
Losses on transactions of certificates of deposit		13		—
Interest on debentures		109,656,787		61,837,024
Interest on short-term note issued		486,374,722		429,887,015
Interest on asset-backed short-term bonds		13,124,433		45,194,333
Fees for the proceeds from the sale of stocks loaned		41		2,080
Others 1		30,836,698		30,163,002

		1,065,865,475		992,875,403

1	Interest on lease liabilities of 3,700 million and 4,409 million for the year ended December 31, 2024 and 2023, respectively, are included.

30. Gain or Loss on Valuation and Disposal of Financial Assets measured at Amortised Costs

The details of gain or loss on valuation and disposal of financial assets measured at amortised cost for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Gain(loss) on valuation of financial assets measured at amortised cost
Reversal(provision) of allowance for credit losses of loans		(29,327,335	)		(34,206,739	)
Reversal(provision) of allowance for credit losses of deposits		(448,028	)		355,011
Reversal(provision) of allowance for credit losses of other financial assets		(971,963	)		(14,394,599	)
Gain(loss) on disposal of financial assets measured at amortised cost
Gain(loss) on disposal of loans measured at amortised cost		37,042			(5,042,842	)

		(30,710,284	)		(53,289,169	)

31. Gain or Loss on Foreign Currency Transactions

The details of gain on foreign currency transactions for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Gain on foreign currency transactions		594,712,201		805,225,226
Gain on foreign exchange translation		429,901,261		99,615,973

		1,024,613,462		904,841,199

The details of loss on foreign currency transactions for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Loss on foreign currency transactions		585,924,414		787,889,725
Loss on foreign exchange translation		295,809,717		84,017,919

		881,734,131		871,907,644

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

32. Other Operating Income and Other Operating Expenses

The details of other operating income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Dividend income		86,535,185		58,446,964
Distribution income		92,735,398		76,744,597
Reversal of provision for credit loss		56,295,878		8,125,021
Others		10,326,676		7,996,143

		245,893,137		151,312,725

The details of other operating expenses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Provision for credit losses		102,324,037		84,130,291
Others		45,918,100		63,621,085

		148,242,137		147,751,376

33. Selling and Administrative Expenses

(a)	The details of selling and administrative expenses for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Labor costs
Salaries		432,362,399		424,506,394
Post-employment benefits		27,141,890		28,502,489
Retirement bonus		15,802,956		1,280,577
Other long-term employee benefits		837,170		1,313,191
Employee benefits		97,776,901		86,895,482

		573,921,316		542,498,133

Other selling and administrative expenses
Employee benefits		11,539,189		11,302,464
Sales promotion expenses		1,560,973		864,713
Computer system operation expenses		70,704,152		62,582,302
Management expenses for rent		19,849,051		20,025,529
Commissions		25,467,759		22,840,138
Research and development		377,327		249,603
Advertising expenses		29,476,761		28,452,421
Depreciation		46,359,943		44,777,159
Training expenses		2,484,272		2,510,588
Amortization expenses of intangible assets		54,188,259		39,590,256
Taxes and dues		43,621,051		35,886,699
Consignment fees		3,020,429		2,335,409
Others		43,279,097		40,871,015

		351,928,263		312,288,296

		925,849,579		854,786,429

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

(b)	Stock Grant Agreement

The executives of the Company have stock grant agreement with KB Financial Group Inc., and the Company settles the expense arising from the agreement with KB Financial Group Inc. The Company recognizes the expense in profit or loss as selling and administrative expenses.

The details of the share grants linked to long-term performance as at December 31, 2024, are as follows:


(In number of shares)	Grant date	Granted shares		Payable shares1		Vesting conditions
Series 1-1	2010-1-1		1,231		160	Service, vesting conditions : market 40%, non-market 60%
Series 1-8	2011-1-1		1,289		219	Service, vesting conditions : market 40%, non-market 60%
Series 1-10	2012-1-1		1,976		384	Service, vesting conditions : market 40%, non-market 60%
Series 1-11	2012-6-18		708		142	Service, vesting conditions : market 40%, non-market 60%
Series 1-13	2013-1-1		3,340		749	Service, vesting conditions : market 40%, non-market 60%
Series 1-19	2015-2-24		1,812		584	Service, vesting conditions : market 30%, non-market 70%
Series 1-21	2016-1-1		5,091		1,024	Service, vesting conditions : market 30%, non-market 70%
Series 1-22	2016-12-30		34,070		8,834	Service, vesting conditions : market 20%, non-market 80%
Series 1-24	2017-2-24		1,698		1,516	Service, vesting conditions : market 20%, non-market 80%
Series 1-26	2017-9-4		1,551		1,028	Service, vesting conditions : market 20%, non-market 80%
Series 1-28	2018-1-1		6,739		2,608	Service, vesting conditions : market 20%, non-market 80%
Series 1-30	2019-1-1		47,182		26,064	Service, vesting conditions : market 20%, non-market 80%
Series 1-30	2019-1-1		2,799		1,588	Service, vesting conditions : market 0%, non-market 100%
Series 1-30	2019-1-1		28,706		10,995	Service, vesting conditions : market 20%, non-market 80%
Series 1-31	2019-2-24		809		637	Service, vesting conditions : market 20%, non-market 80%
Series 1-32	2019-3-4		1,888		1,021	Service, vesting conditions : market 20%, non-market 80%
Series 1-33	2019-6-1		3,994		1,111	Service, vesting conditions : market 20%, non-market 80%
Series 1-34	2019-9-1		2,927		340	Service, vesting conditions : market 20%, non-market 80%
Series 1-35	2019-9-4		358		207	Service, vesting conditions : market 20%, non-market 80%
Series 1-36	2019-5-27		1,167		192	Service, vesting conditions : market 20%, non-market 80%
Series 1-37	2020-1-1		48,962		11,595	Service, vesting conditions : market 20%, non-market 80%
Series 1-38	2020-3-6		2,856		822	Service, vesting conditions : market 0%, non-market 100%
Series 1-39	2020-8-1		12,744		906	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1		66,939		19,690	Service, vesting conditions : market 20%, non-market 80%

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


Series 1-40	2021-1-1	2,660	599	Service, vesting conditions : market 0%, non-market 100%
Series 1-40	2021-1-1	34,884	10,845	Service, vesting conditions : market 20%, non-market 80%
Series 1-41	2021-3-4	3,591	1,856	Service, vesting conditions : market 20%, non-market 80%
Series 1-42	2021-3-15	5,034	1,369	Service, vesting conditions : market 20%, non-market 80%
Series 1-43	2021-5-27	604	100	Service, vesting conditions : market 20%, non-market 80%
Series 1-44	2021-6-1	2,904	1,487	Service, vesting conditions : market 20%, non-market 80%
Series 1-45	2021-8-1	2,320	989	Service, vesting conditions : market 20%, non-market 80%
Series 1-46	2021-9-1	3,201	958	Service, vesting conditions : market 20%, non-market 80%
Series 1-47	2022-1-1	58,681	19,773	Service, vesting conditions : market 20%, non-market 80%
Series 1-48	2022-2-17	1,990	2,953	Service, vesting conditions : market 20%, non-market 80%
Series 1-49	2022-3-6	928	171	Service, vesting conditions : market 0%, non-market 100%
Series 1-50	2022-03-14	588	562	Service, vesting conditions : market 20%, non-market 80%
Series 1-51	2022-05-09	2,839	2,839	Service, vesting conditions : market 20%, non-market 80%
Series 1-52	2022-07-18	190	146	Service, vesting conditions : market 20%, non-market 80%
Series 1-53	2022-08-01	4,945	6,216	Service, vesting conditions : market 20%, non-market 80%
Series 1-54	2022-08-16	3,627	7,903	Service, vesting conditions : market 20%, non-market 80%
Series 1-55	2023-01-01	52,570	56,407	Service, vesting conditions : market 20%, non-market 80%
Series 1-55	2023-01-01	5,492	8,009	Service, vesting conditions : market 0%, non-market 100%
Series 1-55	2023-01-01	23,930	27,494	Service, vesting conditions : market 20%, non-market 80%
Series 1-56	2023-02-15	3,161	2,966	Service, vesting conditions : market 20%, non-market 80%
Series 1-57	2023-03-04	3,076	3,076	Service, vesting conditions : market 20%, non-market 80%
Series 1-58	2023-03-15	1,367	414	Service, vesting conditions : market 20%, non-market 80%
Series 1-59	2023-06-01	2,876	2,876	Service, vesting conditions : market 20%, non-market 80%
Series 1-60	2023-08-01	2,768	1,965	Service, vesting conditions : market 20%, non-market 80%
Series 1-61	2023-09-01	3,390	2,263	Service, vesting conditions : market 20%, non-market 80%
Series 1-62	2024-01-01	61,779	34,896	Service, vesting conditions : market 20%, non-market 80%
Series 1-62	2024-01-01	15,012	7,516	Service, vesting conditions : market 20%, non-market 80%
Series 1-63	2024-02-17	953	953	Service, vesting conditions : market 20%, non-market 80%
Series 1-64	2024-05-09	2,432	789	Service, vesting conditions : market 20%, non-market 80%
Series 1-65	2024-08-01	429	429	Service, vesting conditions : market 20%, non-market 80%
Series 1-66	2024-08-16	397	397	Service, vesting conditions : market 20%, non-market 80%

		589,454	301,632

1	The number of maximum payable shares per executive as at December 31, 2024.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The details of share grants linked to short-term performance as at December 31, 2024, are as follows:


(In number of shares)	Grant date	Granted shares		Payable shares1		Vesting conditions2
Series 2-3	2016-1-1		5,454		1,532	Proportional to service period, vesting conditions satisfied
Series 2-4	2017-1-1		21,346		9,528	Proportional to service period, vesting conditions satisfied
Series 2-5	2018-1-1		31,432		17,752	Proportional to service period, vesting conditions satisfied
Series 2-6	2019-1-1		23,302		16,277	Proportional to service period, vesting conditions satisfied
Series 2-7	2020-1-1		66,921		19,507	Proportional to service period, vesting conditions satisfied
Series 2-8	2021-1-1		64,101		33,042	Proportional to service period, vesting conditions satisfied
Series 2-9	2022-1-1		52,139		40,676	Proportional to service period, vesting conditions satisfied
Series 2-10	2023-1-1		73,004		73,004	Proportional to service period, vesting conditions satisfied
Series 2-11	2024-1-1		32,754		32,754	Proportional to service period, vesting conditions satisfied
Series 3-3	2016-1-1		15,036		5,478	Proportional to service period, vesting conditions satisfied
Series 3-4	2017-1-1		12,112		6,343	Proportional to service period, vesting conditions satisfied
Series 3-5	2018-1-1		10,352		7,079	Proportional to service period, vesting conditions satisfied
Series 3-6	2019-1-1		18,194		13,167	Proportional to service period, vesting conditions satisfied
Series 3-7	2020-1-1		77,112		16,434	Proportional to service period, vesting conditions satisfied
Series 3-8	2021-1-1		91,948		45,831	Proportional to service period, vesting conditions satisfied
Series 3-9	2022-1-1		66,060		42,301	Proportional to service period, vesting conditions satisfied
Series 3-10	2023-1-1		76,048		74,588	Proportional to service period, vesting conditions satisfied
Series 4-1	2017-12-31		23,667		21,865	Proportional to service period, vesting conditions satisfied
Series 4-2	2019-12-31		30,098		793	Proportional to service period, vesting conditions satisfied
Series 4-3	2020-12-31		263,762		2,229	Proportional to service period, vesting conditions satisfied
Series 4-4	2021-12-31		268,781		66,815	Proportional to service period, vesting conditions satisfied
Series 4-5	2022-12-31		216,687		131,212	Proportional to service period, vesting conditions satisfied
Series 4-6	2023-12-31		293,942		258,711	Proportional to service period, vesting conditions satisfied

			1,834,252		936,918

1	The number of maximum payable shares per executive as at December 31, 2024.

2	Number of vested shares is determined by performance and paid for a deferred payment schedule over 3 to 5 years.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Share grants are measured at fair value using the Monte Carlo Simulation Model and assumptions used in determining the fair value as at December 31, 2024, are as follows:


(In Korean won)	Risk free rate (%)	Fair value (Market performance condition)	Fair value (Non-market performance condition)
Series 1-1	2,688	—	79,280~79,280
Series 1-8	2,688	—	79,280~79,280
Series 1-10	2,688	—	79,280~79,280
Series 1-11	2,688	—	47,631~47,631
Series 1-13	2,688	—	47,631~79,280
Series 1-19	2,688	—	45,096~47,631
Series 1-21	2,688	—	45,096~87,156
Series 1-22	2,688	—	45,096~87,156
Series 1-24	2,688	—	45,096~56,379
Series 1-26	2,688	—	45,096~56,379
Series 1-28	2,688	—	45,096~87,156
Series 1-30	2,688	—	50,973~87,156
Series 1-31	2,688	—	45,096~56,379
Series 1-32	2,688	—	72,231~79,280
Series 1-33	2,688	—	87,156~87,156
Series 1-34	2,688	—	87,156~87,156
Series 1-35	2,688	—	45,096~56,379
Series 1-36	2,688	—	87,156~87,156
Series 1-37	2,688	—	68,992~87,156
Series 1-38	2,688	—	79,280~87,156
Series 1-39	2,688	—	79,280~87,156
Series 1-40	2,688	—	68,992~87,156
Series 1-41	2,688	—	72,231~79,280
Series 1-42	2,688	—	75,790~87,156
Series 1-43	2,688	—	87,156~87,156
Series 1-44	2,688	—	72,231~79,280
Series 1-45	2,688	—	75,790~87,156
Series 1-46	2,688	—	75,790~87,156
Series 1-47	2,688	—	68,992~87,156
Series 1-48	2,688	64,264~77,543	72,231~79,280
Series 1-49	2,688	—	79,280~87,156
Series 1-50	2,688	—	72,231~79,280
Series 1-51	2,688	72,231~87,156	72,231~79,280
Series 1-52	2,688	—	72,231~79,280
Series 1-53	2,688	72,231~87,156	72,231~79,280
Series 1-54	2,688	72,231~87,156	72,231~79,280
Series 1-55	2,688	72,231~87,156	68,992~87,156
Series 1-56	2,688	68,992~79,280	68,992~75,790
Series 1-57	2,688	72,231~87,156	72,231~79,280
Series 1-58	2,688	—	75,790~87,156
Series 1-59	2,688	72,231~87,156	72,231~79,280
Series 1-60	2,688	68,992~79,280	68,992~75,790
Series 1-61	2,688	68,992~79,280	68,992~75,790
Series 1-62	2,688	68,992~87,156	68,992~79,280
Series 1-63	2,688	72,231~87,156	72,231~79,280
Series 1-64	2,688	65,949~75,790	65,949~72,231
Series 1-65	2,688	72,231~87,156	72,231~79,280
Series 1-66	2,688	72,231~87,156	72,231~79,280
Series 2-3	2,688	—	47,631~87,156
Series 2-4	2,688	—	45,096~87,156
Series 2-5	2,688	—	45,096~87,156
Series 2-6	2,688	—	45,096~87,156
Series 2-7	2,688	—	50,973~87,156
Series 2-8	2,688	—	68,992~87,156
Series 2-9	2,688	—	52,755~87,156
Series 2-10	2,688	—	68,992~87,156
Series 2-11	2,688	—	68,992~82,170

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


(In Korean won)	Risk free rate (%)	Fair value (Market performance condition)	Fair value (Non-market performance condition)
Series 3-3	2,688	—	47,631~87,156
Series 3-4	2,688	—	45,096~87,156
Series 3-5	2,688	—	45,096~87,156
Series 3-6	2,688	—	45,096~87,156
Series 3-7	2,688	—	50,973~87,156
Series 3-8	2,688	—	68,992~87,156
Series 3-9	2,688	—	68,992~87,156
Series 3-9	2,688	—	68,992~87,156
Series 4-1	2,688	—	45,096~56,379
Series 4-2	2,688	—	50,973~50,973
Series 4-3	2,688	—	50,973~52,755
Series 4-4	2,688	—	50,973~87,156
Series 4-5	2,688	—	52,755~87,156
Series 4-6	2,688	—	75,790~87,156

The Company used the volatility of the stock price over the previous year as the expected volatility and used the dividend yield as the arithmetic mean of the dividend rate of one year before, two years before, and three years before the base year, in order to calculate fair value. Fair value is calculated based on risk free interest rate of 1 year-KTB rate.

34. Non-operating Income and Non-operating Expenses

The details of non-operating income for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Gain on disposal of intangible assets		3,922,610		1,436,275
Reversal of impairment loss on intangible assets		1,019,296		1,726,399
Rent		6,978,502		6,449,025
Gain related to investments in subsidiaries and associates		27,744,956		20,350,670
Others		43,422,997		25,648,222

		83,088,361		55,610,591

The details of non-operating expenses for the years ended December 31, 2024 and 2023 are as follows:


(in thousands of Korean won)	2024		2023
Loss on disposal of property and equipment		111,989		14,308
Depreciation of investment properties		480,124		383,216
Loss on disposal of intangible assets		—		2,500
Impairment loss on intangible assets		128,738		74,692
Loss related to investments in subsidiaries and associates1		37,605,049		193,716,114
Donation		7,252,185		3,787,859
Others		49,926,066		69,713,630

		95,504,151		267,692,319

During the year ended December 31, 2024, there were signs of impairment for investments related to KB FINA Joint Stock Company, Vestas General Private Real Estate Fund Investment Trust No. 38, JB New Jersey Private Real Estate Fund 1, GVA Europe Pre-IPO Private Investment Trust No.1, LIFE Global Reits Pre-IPO General Private Investment Trust 1, Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15 and GH Real Estate I LP, which were subsidiaries of the Company, and the estimated recoverable amount was lower than the book value, so KRW 8,511 million, KRW 1,633 million, KRW 1,075 million, KRW 2,133 million, KRW 6,404 million, KRW 6,151 million and KRW 1,860 million of impairment losses, respectively, were recognized. Also during the year ended December 31, 2024, there were signs of impairment for investments related KB Star REIT which was associates of the Company, and the estimated recoverable amount was lower than the book value, so KRW 5,736 million of impairment losses was recognized. The estimated recoverable amount was assessed using data available as at December 31, 2024, and will be re-estimated by continuously reflecting changes thereafter.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

35. Tax Expense and Deferred Tax

The details of income tax expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Current tax
Current tax on profits for the year		270,636,227			145,757,259
Adjustments in respect of prior years		(763,296	)		1,908,329
Deferred tax
Origination and reversal of temporary differences		(99,329,364	)		(56,454,276	)
Tax recognized directly in equity
Gain or loss on valuation for financial assets at FVOCI		(2,158,539	)		(19,687,942	)
Gain on revaluation of property and equipment		—			84,436
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit risk		1,978,179			19,037,679
Remeasurements of net defined benefit liabilities		1,702,285			1,798,561
Tax effect derived from group’s income tax system		(12,920,249	)		(3,353,308	)

Income tax expense		159,145,243			89,090,738

Reconciliations of profit before tax and tax expense for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Profit before tax (A)		741,514,228			441,454,279

Tax based on statutory rate		185,397,756			106,181,930
Adjustments
Non-deductible expense		6,044,292			4,853,834
Non-taxable income		(13,325,036	)		(8,847,983	)
Changes in deferred tax assets (liabilities) that have not been recognized		(4,689,358	)		(8,165,095	)
Effect from tax reduction and credit		(1,379,761	)		(1,362,312	)
Adjustment in respect of prior years		(763,296	)		1,908,329
Tax effect from group’s income tax system		(12,920,250	)		(3,353,308	)
Changes in tax rate		—			(291,679	)
Others		780,896			(1,832,978	)

Tax expense (B)		159,145,243			89,090,738

Effective tax rate (B/A)		21.46	%		20.18	%

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

The changes in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Beginning balance			Profit (loss) for the year			Other comprehensive income			Ending balance
Provision for impairment		136,402			24,928			—			161,330
Commissions income		9,136,660			(3,655,638	)		—			5,481,022
Financial assets at FVOCI		(105,219,052	)		(822,640	)		(2,158,538	)		(108,200,230	)
Defined benefit obligation		19,780,820			(663,984	)		1,702,285			20,819,121
Other long-term employee benefits		1,867,887			44,608			—			1,912,495
Financial assets at FVTPL		35,908,444			20,842,494			—			56,750,938
Financial liabilities at FVTPL		(237,598,071	)		140,811,271			1,978,179			(94,808,621	)
Accrued expenses		69,216,464			15,545,000			—			84,761,464
Dividends (specific overseas company)		9,278,179			1,099,828			—			10,378,007
Accrued income		(34,529,235	)		(11,902,244	)		—			(46,431,479	)
Property and equipment		(21,955,416	)		341			—			(21,955,075	)
Provisions for asset retirement obligation		2,391,555			47,008			—			2,438,563
Investments in associates and subsidiaries		(2,477,419	)		(3,783,771	)		—			(6,261,190	)
Derivatives		154,172,948			(57,544,107	)		—			96,628,841
Loans		1,506,318			(165,955	)		—			1,340,363
Intangible assets		(20,852,423	)		(254,858	)		—			(21,107,281	)
Plan assets		(3,503,491	)		606,928			—			(2,896,563	)
Advance depreciation provision		(2,401,725	)		—			—			(2,401,725	)
Interest related to loan for construction		(54,907	)		3,723			—			(51,184	)
Others		95,439,311			(7,114,852	)		—			88,324,459

Subtotal		(29,756,751	)		93,118,080			1,521,926			64,883,255
Unrecognized deferred tax assets (liabilities)		(12,365,920	)		(4,689,358	)		—			(17,055,278	)

Deferred tax assets (liabilities), net 1		(17,390,831	)		97,807,438			1,521,926			81,938,533

1	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate, applicable to the forecasted period when the temporary differences are reversed.


	2023
(in thousands of Korean won)	Beginning balance			Profit (loss) for the year			Other comprehensive income			Ending balance
Provision for impairment		136,919			(517	)		—			136,402
Commissions income		7,803,594			1,333,066			—			9,136,660
Financial assets at FVOCI		(85,934,450	)		403,339			(19,687,941	)		(105,219,052	)
Defined benefit obligation		17,820,542			161,717			1,798,561			19,780,820
Other long-term employee benefits		1,901,703			(33,816	)		—			1,867,887
Financial assets at FVTPL		195,212,195			(159,303,751	)		—			35,908,444
Financial liabilities at FVTPL		(307,146,059	)		50,510,309			19,037,679			(237,598,071	)
Accrued expenses		54,462,905			14,753,559			—			69,216,464
Dividends (specific overseas company)		9,419,063			(140,884	)		—			9,278,179
Accrued income		(24,776,460	)		(9,752,775	)		—			(34,529,235	)
Property and equipment		(22,035,671	)		(4,181	)		84,436			(21,955,416	)
Provisions for asset retirement obligation		2,332,599			58,956			—			2,391,555
Investments in associates and subsidiaries		(163,368	)		(2,314,051	)		—			(2,477,419	)
Derivatives		45,168,323			109,004,625			—			154,172,948
Loans		1,604,716			(98,398	)		—			1,506,318
Intangible assets		(20,232,372	)		(620,051	)		—			(20,852,423	)
Plan assets		(3,293,977	)		(209,514	)		—			(3,503,491	)
Advance depreciation provision		(2,410,822	)		9,097			—			(2,401,725	)
Interest related to loan for construction		(58,852	)		3,945			—			(54,907	)

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


Others	52,127,628		43,311,683		—	95,439,311

Subtotal	(78,061,844	)	47,072,358		1,232,735	(29,756,751	)
Unrecognized deferred tax assets (liabilities)	(4,216,737	)	(8,149,183	)	—	(12,365,920	)

Deferred tax assets (liabilities), net 1	(73,845,107	)	55,221,541		1,232,735	(17,390,831	)

1	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate, applicable to the forecasted period when the temporary differences are reversed.

Temporary differences which were not recognized due to uncertainty of their realization as at December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024		2023
Taxable temporary difference
Investments in subsidiaries		65,733,049		35,292,457
Intangible assets		58,888,990		58,888,990
Others		445,550		445,550

		125,067,589		94,626,997

Deductible temporary difference
Commission		9,239,637		9,239,637
Dividends		24,531,338		20,365,324
Investments in subsidiaries		23,987,983		15,476,124
Others		2,705,305		2,705,305

		60,464,263		47,786,390

		64,603,326		46,840,607

Details of income taxes that are charged or credited directly to equity for the years ended December 31, 2024 and 2023, are as follows:


(in thousands of Korean won)	2024			2023
Recognized in other comprehensive income
Gain or loss on valuation for financial assets at FVOCI		(3,668,101	)		(16,026,284	)
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit risk		1,978,179			19,037,679
Gain on revaluation of property and equipment		—			84,436
Remeasurements of net defined benefit liabilities		1,702,285			1,798,561
Reclassified to profit or loss
Gain or loss on valuation for financial assets at FVOCI		1,509,563			(3,661,658	)

		1,521,926			1,232,734

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

36. Carrying Amounts of Financial Instruments by Category

The carrying amounts of financial assets and liabilities by category as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Financial asset measured at fair value through profit or loss		Financial asset measured at fair value through Other Comprehensive income		Financial asset measured at amortised cost		Totals
Financial Assets
Cash and deposits		—		—		2,952,551,951		2,952,551,951
Financial Assets at FVTPL		36,753,823,519		—		—		36,753,823,519
Derivative financial assets		1,395,942,910		—		—		1,395,942,910
Equity instruments at FVOCI		—		1,353,191,016		—		1,353,191,016
Debt instruments at FVOCI		—		5,128,522,928		—		5,128,522,928
Loans measured at amortised cost		—		—		8,100,472,957		8,100,472,957
Other financial assets		—		—		2,857,380,119		2,857,380,119

		38,149,766,429		6,481,713,944		13,910,405,027		58,541,885,400


	2024
(in thousands of Korean won)	Financial liabilities measured at fair value through profit or loss		Financial liabilities designated at fair value through profit or loss		Financial liabilities measured at amortised cost		Derivative liabilities (hedging)		Totals
Financial Liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		—		2,558,520,223
Financial liabilities designated at FVTPL		—		8,010,047,059		—		—		8,010,047,059
Derivative financial liabilities		1,918,358,178		—		—		4,309,200		1,922,667,378
Deposit liabilities		—		—		7,744,650,276		—		7,744,650,276
Borrowings		—		—		30,520,337,601		—		30,520,337,601
Other financial liabilities		—		—		2,294,298,047		—		2,294,298,047

		4,476,878,401		8,010,047,059		40,559,285,924		4,309,200		53,050,520,584

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Financial asset measured at fair value through profit or loss		Financial asset measured at fair value through Other Comprehensive income		Financial asset measured at amortised cost		Totals
Financial Assets
Cash and deposits		—		—		2,324,715,993		2,324,715,993
Financial Assets at FVTPL		35,529,339,671		—		—		35,529,339,671
Derivative financial assets		1,135,196,744		—		—		1,135,196,744
Equity instruments at FVOCI		—		860,085,126		—		860,085,126
Debt instruments at FVOCI		—		4,270,319,038		—		4,270,319,038
Loans measured at amortised cost		—		—		7,973,604,805		7,973,604,805
Other financial assets		—		—		4,076,458,711		4,076,458,711

		36,664,536,415		5,130,404,164		14,374,779,509		56,169,720,088


	2023
(in thousands of Korean won)	Financial liabilities measured at fair value through profit or loss		Financial liabilities designated at fair value through profit or loss		Financial liabilities measured at amortised cost		Derivative liabilities (hedging)		Totals
Financial Liabilities
Financial liabilities at FVTPL		2,860,033,642		—		—		—		2,860,033,642
Financial liabilities designated at FVTPL		—		7,975,847,458		—		—		7,975,847,458
Derivative financial liabilities		1,806,705,125		—		—		5,307,120		1,812,012,245
Deposit liabilities		—		—		7,133,908,105		—		7,133,908,105
Borrowings		—		—		27,393,887,530		—		27,393,887,530
Other financial liabilities		—		—		3,867,868,006		—		3,867,868,006

		4,666,738,767		7,975,847,458		38,395,663,641		5,307,120		51,043,556,986

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

37. Financial Instruments

37.1 Fair Value of Financial Instruments by Class

Fair values of financial assets and financial liabilities as at December 31, 2024 and 2023, are as follows:


	2024				2023
(in thousands of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Cash and deposits 2		2,952,551,951		2,952,551,951		2,324,715,993		2,324,715,993
Financial assets at FVTPL 1		36,753,823,519		36,753,823,519		35,529,339,671		35,529,339,671
Derivative financial assets 1		1,395,942,910		1,395,942,910		1,135,196,744		1,135,196,744
Financial assets at FVOCI		6,481,713,944		6,481,713,944		5,130,404,164		5,130,404,164
Loans measured at amortised cost		8,100,472,957		8,113,194,528		7,973,604,805		7,977,344,594
Other financial assets 2		2,857,380,119		2,857,380,119		4,076,458,711		4,076,458,711

		58,541,885,400		58,554,606,971		56,169,720,088		56,173,459,877

1	Deferred transaction gain or losses are adjusted in the carrying amount.

2	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.


	2024				2023
(in thousands of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial liabilities
Deposit liabilities 2		7,744,650,276		7,744,650,276		7,133,908,105		7,133,908,105
Financial liabilities at FVTPL		2,558,520,223		2,558,520,223		2,860,033,642		2,860,033,642
Financial liabilities designated at FVTPL 1		8,010,047,059		8,010,047,059		7,975,847,458		7,975,847,458
Derivative financial liabilities 1		1,922,667,378		1,922,667,378		1,812,012,245		1,812,012,245
Borrowings		30,520,337,601		30,543,358,672		27,393,887,530		27,384,172,276
Other financial liabilities 2		2,294,298,047		2,294,298,047		3,867,868,006		3,867,868,006

		53,050,520,584		53,073,541,655		51,043,556,986		51,033,841,732

1	Deferred transaction gain or losses are adjusted in the carrying amount.

2	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.

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

37.2 Fair Value Hierarchy

Financial instruments measured at fair value are categorized within the fair value hierarchy, and the defined levels are as follows:


Level 1		Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2		Fair value using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, prices) or indirectly (that is, derived from prices)

Level 3		Fair value using inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

(a) Fair value hierarchy of financial instruments measured at fair value

The fair value hierarchy of financial assets and liabilities measured at fair value as at December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at FVTPL - debt instruments 1		7,516,138,758		23,609,885,486		2,767,557,635		33,893,581,879
Financial assets at FVTPL - equity instruments		1,468,890,974		209,125,333		244,764,778		1,922,781,085
Financial assets at FVTPL - Loans		—		—		937,460,555		937,460,555
Derivative financial assets 1		16,249,183		1,129,166,707		250,527,020		1,395,942,910
Financial assets at FVOCI		121,377,584		5,937,790,329		422,546,031		6,481,713,944

		9,122,656,499		30,885,967,855		4,622,856,019		44,631,480,373

Financial liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		2,558,520,223
Financial liabilities designated at FVTPL1		300,489,734		1,529,491,945		6,180,065,380		8,010,047,059
Derivative financial liabilities 1		180,111,464		1,149,293,786		593,262,128		1,922,667,378

		3,039,121,421		2,678,785,731		6,773,327,508		12,491,234,660

1	Deferred transaction gain or losses are adjusted in the carrying amount.


	2023
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at FVTPL – debt instruments 1		6,754,020,777		24,550,643,744		2,840,320,518		34,144,985,039
Financial assets at FVTPL - equity instruments		757,882,526		379,716,820		246,755,286		1,384,354,632
Derivative financial assets 1		26,360,676		1,017,206,808		91,629,260		1,135,196,744
Financial assets at FVOCI		5,248,843		4,690,968,746		434,186,575		5,130,404,164

		7,543,512,822		30,638,536,118		3,612,891,639		41,794,940,579

Financial liabilities
Financial liabilities at FVTPL		2,860,033,642		—		—		2,860,033,642
Financial liabilities designated at FVTPL1		56,685,594		881,791,359		7,037,370,505		7,975,847,458
Derivative financial liabilities 1		94,301,314		962,156,434		755,554,497		1,812,012,245

		3,011,020,550		1,843,947,793		7,792,925,002		12,647,893,345

1	Deferred transaction gain or losses are adjusted in the carrying amount.

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KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

37.3 Valuation techniques and inputs classified by Level 2

The details of the valuation techniques and inputs classified by Level 2 as at December 31, 2024 and 2023 are as follows:


(in thousands of Korean won)	2024		Valuation techniques	Inputs
Financial assets at FVTPL		23,819,010,819	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model, Net asset value and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)		1,129,166,707	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model, Option Pricing model and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI		5,937,790,330	DCF Model	Discount rate, Interest rate and others

		30,885,967,856

Financial liabilities designated at FVTPL		1,529,491,945	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial liabilities(trading)		1,144,984,586	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model, Option Pricing model and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility
Derivative financial liabilities(hedging)		4,309,200	DCF Model	Discount rate, exchange rate and others

		2,678,785,731


(in thousands of Korean won)	2023		Valuation techniques	Inputs
Financial assets at FVTPL		24,930,360,564	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model, Net asset value and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)		1,017,206,808	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model, Net asset value and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI		4,690,968,746	DCF Model	Discount rate, Interest rate and others

		30,638,536,118

Financial liabilities designated at FVTPL		881,791,359	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model, Net asset value and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial liabilities(trading)		956,849,314	DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White Model, Net asset value and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility
Derivative financial liabilities(hedging)		5,307,120	DCF Model	Discount rate, exchange rate and others

		1,843,947,793

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

37.4 Level 3 of the Fair Value Hierarchy Disclosure

(a) Valuation Process for Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

The fair value of financial instruments classified as Level 3 is determined by external valuation or self-valuation of the Company. Unobservable inputs are produced by the external appraiser or internal valuation system and the Company reviews the adequacy of the inputs. The Risk Management Council reviews the adequacy of the assessment methodology and valuation method of external appraiser and the internal valuation. The agenda of the Risk Management Council is being reported or approved by the Risk Committee.

(b) Changes in Fair Value Measurements Categories of the Fair Value hierarchy

The changes in financial instruments with Level 3 fair value for the years ended December 31, 2024 and 2023, are as follows:


	2024
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI			Net derivatives			Financial liabilities designated at FVTPL
Beginning balance		3,087,075,805			434,186,575			(663,925,237	)		(7,037,370,505	)
Total gains or losses
Profit or loss		33,785,817			—			(254,234,941	)		(266,914,729	)
Other comprehensive income		—			(11,640,544	)		—			(10,815,593	)
Purchases		2,723,954,471			—			3,907,013			—
Sales		(1,897,688,807	)		—			(5,253,440	)		—
Issues		—			—			(2,960,406	)		(4,200,663,614	)
Settlements		—			—			579,731,903			5,335,699,062
Transfer within levels 1		2,655,682			—			—			—

Ending balance		3,949,782,968			422,546,031			(342,735,108	)		(6,180,065,379	)

1	Transfer within levels occurred due to the change in the availability of observable market data on the financial instruments.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023


	2023
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI		Net derivatives			Financial liabilities designated at FVTPL
Beginning balance		2,286,235,917			421,530,275		(656,766,734	)		(8,241,509,165	)
Total gains or losses
Profit or loss		88,895,905			—		(75,110,379	)		(337,404,523	)
Other comprehensive income		—			12,656,300		—			(32,370,491	)
Purchases		1,359,209,239			—		11,645,512			—
Sales		(655,925,918	)		—		(6,653,771	)		—
Issues		—			—		(6,275,196	)		(4,431,945,040	)
Settlements		—			—		69,235,329			6,005,858,714
Transfer within levels 1		8,660,662			—		—			—

Ending balance		3,087,075,805			434,186,575		(663,925,239	)		(7,037,370,505	)

1	Transfer within levels occurred due to the change in the availability of observable market data on the financial instruments.


	2024
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI			Net derivatives			Financial liabilities designated at FVTPL
Profit or loss
Gain or loss on valuation of financial instruments 1		(8,282,906	)		—			(136,256,576	)		(39,526,996	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI 2		—			(11,640,544	)		—			—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk 2		—			—			—			(9,524,866	)

		(8,282,906	)		(11,640,544	)		(136,256,576	)		(49,051,862	)

1	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or Loss.

2	Included in other comprehensive income on the statements of comprehensive income.


	2023
(in thousands of Korean won)	Financial assets at FVTPL		Financial assets at FVOCI		Net derivatives			Financial liabilities designated at FVTPL
Profit or loss
Gain or loss on valuation of financial instruments 1		46,805,083		—		(38,278,972	)		70,813,358
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI 2		—		12,656,300		—			—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk 2		—		—		—			(51,567,843	)

		46,805,083		12,656,300		(38,278,972	)		19,245,515

1	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or Loss.

2	Included in other comprehensive income on the statements of comprehensive income.

Table of Contents

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

Valuation techniques and inputs for level 3 financial instruments are as follows:

2024

(in thousands of
Korean won)

Type

Fair value

Valuation
techniques

Inputs

Unobservable

input

Range

Relevance

Financial assets at FVTPL

Equity-linked securities

10,897,742

DCF model, Closed Form, FDM, Monte Carlo

Price of underlying asset, interest rate, discount rate,

Underlying asset volatility

0.26 ~ 0.36

Proportional

Correlation

0.56 ~ 0.75

Proportional



Damages (Winners counterclaim)	1	16,999,619	Winners Asset Management Co.,LTD., which had been trading Nikkei 225 options by opening accounts in the company and under the fund’s name, claimed that the short selling was illegal and filed a counterclaim against the company (filed in the form of a counterclaim in the lawsuit filed by the company against Winners Asset Management Co.,LTD. for receivables, etc.) after suffering short selling due to increased intraday risk following the plunge in the Nikkei 225 index caused by COVID-19 in late February 2020.	- 3rd trial in progress (1st trial : January 19, 2023. Judgment dismissing all claims of Winners Asset Management Co.,LTD. 2nd trial: January 26, 2024. Judgment accepting 30% (7.46 billion) of Winners Asset Management Co.,LTD.’s claims)

Unjust Gains (Lime Fund)	3	27,999,041	Regarding Lime AI Star Funds 1, 2, and 3 sold by the company, investors claim that the company deceived investors into selling the funds despite being aware of their insolvency, and that the company violated the duty to explain, the principle of suitability, and the prohibition of unfair solicitation by not providing sufficient explanations about the products during the sales process, contrary to what was stated in the proposal, and claim compensation (Total 3 cases, one case for each fund).	No. 1, 2: Scheduled to be decided after the second trial verdict on the Lime Fund-related criminal lawsuit No. 3: 2nd trial in progress (1st trial : February 16, 2024. Judgment ordering payment of 35% of the plaintiff’s claim amount and interest on the amount)

Damages and Unjust Gains (TA_DLS Trust)	6	10,284,532	Investors who invested in KB able DLS Trust (a specific money trust that includes derivative linked securities linked to TA-OPAL Fund, which TransAsia Management invests in trade finance loan receivables) argued that the company’s sales staff misleaded that the principal was guaranteed by an insurance company’s guarantee, and claimed the return of unjust gains by the cancellation of the contract due to the error.	1st trial In progress

Unjust Gains (Heritage Banzaran DLS)	1	13,051,600	The company provided false information about the business capabilities of the operator (GPG), etc., thereby causing the plaintiff to misunderstand the key investment conditions of the DLS in this case. Therefore, the plaintiff requested to cancel the acquisition contract of the DLS in this case due to the mistake and claimed the return of the acquisition price for the DLS in this case and the delay damages as unjust gains.	1st trial In progress


(in thousands of Korean won)	Description	Amounts
(in thousands of Korean won)	Description	2024		2023
KB Securities Vietnam Joint Stock Company	Payment guarantees		76,440,000		94,126,200
KB Securities Hong Kong Ltd.	Payment guarantees		173,460,000		152,149,200
Able Gwonseon 1st Co., Ltd. 1	Private placement bonds purchase agreement		18,000,000		11,000,000
Newstar IP Co., Ltd. 1	Private placement bonds purchase agreement		—		50,700,000
Able Gongpyeong 1st Co.,Ltd	Private placement bonds purchase agreement		76,000,000		20,000,000
Newstar Believe Co., Ltd. 1	Private placement bonds purchase agreement		—		7,500,000
ABR Joongang2 1st Co.,Ltd 1	Private placement bonds purchase agreement		—		18,987,500
Able Gasan 1st Co., Ltd. 1	Private placement bonds purchase agreement		—		24,500,000
Able Sewoon Co., Ltd.	Private placement bonds purchase agreement		22,600,000		31,300,000
Zitaress 1st Co., Ltd.	Private placement bonds purchase agreement		19,950,000		25,250,000
Able Beomeo-one Co., Ltd.	Private placement bonds purchase agreement		30,000,000		30,000,000
KB Infra 2nd Co., Ltd. 1	Private placement bonds purchase agreement		—		28,000,000
Newstar Sina Co., Ltd. 1	Private placement bonds purchase agreement		—		26,561,640
Newstar Plus 1st Co., Ltd. 1	Private placement bonds purchase agreement		—		16,000,000
Able PT 1st Co., Ltd 1	Private placement bonds purchase agreement		—		5,000,000
KB Mapo 2nd Co.,Ltd.	Private placement bonds purchase agreement		10,000,000		10,000,000