Fair value of financial assets and liabilities

12 Months Ended

Dec. 31, 2025

Disclosure of fair value measurement [Abstract]

Fair Value Of Financial Assets And Liabilities

12. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1)	The fair value hierarchy

The fair value hierarchy for financial instruments is determined by the amount of observable market data. The specific financial instruments characteristics and market condition such as the existence of the transactions among market participants and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Group maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Group’s own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in one of the following three levels used to classify fair value measurements:

•

Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

•

Level 2—fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

•

Level 3—fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Group’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

(2)	Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):


	December 31, 2024
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		73,951		—		—		73,951
Debt securities		4,304,048		2,489,883		7,357		6,801,288
Equity securities		22,414		—		398,899		421,313
Capital contributions		—		4,185		2,853,513		2,857,698
Beneficiary certificates		156,898		2,301,044		2,105,160		4,563,102
Loans		—		69,401		34,776		104,177
Derivative assets		—		10,093,344		1,188		10,094,532
Other financial assets in foreign currency		—		—		48,345		48,345
Others		—		—		238,266		238,266

Sub-total		4,557,311		14,957,857		5,687,504		25,202,672

Financial assets at FVTOCI
Debt securities		14,117,592		28,805,079		—		42,922,671
Equity securities		315,640		—		559,434		875,074

Sub-total		14,433,232		28,805,079		559,434		43,797,745

Derivative assets (designated for hedging)		—		175,191		—		175,191

Total		18,990,543		43,938,127		6,246,938		69,175,608

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		74,205		—		—		74,205
Derivative liabilities		—		9,090,696		1,402		9,092,098
Securities sold		182,478		—		—		182,478

Sub-total		256,683		9,090,696		1,402		9,348,781
Financial instruments designated to be measured at FVTPL
Deposits due to customers		—		547,816		—		547,816
Derivative liabilities (designated for hedging)		—		102,815		—		102,815

Total		256,683		9,741,327		1,402		9,999,412

(*)	There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.


	December 31, 2025
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		261,470		—		—		261,470
Debt securities		4,635,643		4,840,091		76,347		9,552,081
Equity securities		1,063,788		—		549,631		1,613,419
Capital contributions		—		12,186		3,073,129		3,085,315
Beneficiary certificates		1,118,879		4,112,983		7,127,621		12,359,483
Loans		—		901,831		224,615		1,126,446
Derivative assets		—		5,773,283		920		5,774,203
Other financial assets in foreign currency		—		1,898		83,949		85,847
Others		—		146,475		240,736		387,211

Sub-total		7,079,780		15,788,747		11,376,948		34,245,475

Financial assets at FVTOCI
Debt securities		29,820,964		52,240,432		—		82,061,396
Equity securities		363,401		—		1,064,484		1,427,885
Loans		—		—		10,241		10,241

Sub-total		30,184,365		52,240,432		1,074,725		83,499,522

Derivative assets (designated for hedging)		—		217,180		—		217,180

Total		37,264,145		68,246,359		12,451,673		117,962,177

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		263,251		—		—		263,251
Derivative liabilities		—		5,129,428		236		5,129,664
Securities sold		496,518		—		—		496,518

Sub-total		759,769		5,129,428		236		5,889,433

Financial instruments designated to be measured at FVTPL
Deposits due to customers		—		467,501		—		467,501
Derivative liabilities (designated for hedging)		—		615,361		—		615,361

Total		759,769		6,212,290		236		6,972,295

(*)	There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

Financial assets and liabilities at FVTPL, financial liabilities at FVTPL designated as upon initial recognition, financial assets at FVTOCI, and derivative assets and liabilities are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Group determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instrument are as follows:

1) Valuation methods and input variables for each type of financial instrument classified into level 2 in December 31, 2024 and 2025 are as follows:


	Valuation methods	Input variables
Debt securities	Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread, Monte-Carlo Simulation, and Hull-White model, etc.	Risk-free market rate, credit spread, risk-free rate, credit spread, matrix method yield to maturity, effective credit grade, company-specific risk spread, weighted average expected maturity of MBS with consideration for prepayment, exchange rate, and stock price

Equity Securities, capital contributions and beneficiary certificates	Fair value is measured by using the net asset value method, DCF, FCFE (Free Cash Flow to Equity Model), Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, LSMC (Least-Squares Monte Carlo), and Hull-White model.	Values of underlying assets such as bond, risk-free market rate, market risk premium, corporate beta, discount rate based on credit rating, volatility of stock prices, and volatility of interest rates.

Derivatives	Fair value is measured by models such as option model, DCF model and, Implied Forward Rate calculation method etc.	Discount rate, volatility of underlying assets, exchange rate, OIS, KTB, and CDS rates.

Loans	The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor.	Risk-free market rate and credit spread

Deposits due to customers	Fair value is measured by Hull-White model.	Swaption Volume etc.

2) Valuation methods and input variables for each type of financial instrument classified into level 3 in December 31, 2024 and 2025 are as follows:


	Valuation methods	Input variables
Loans	Fair value is measured by using the DCF model (Discounted Cash Flow Model) and risk-adjusted discount rate method (Tsiveriotis-Fernandes), LSMC (Least-Squares Monte Carlo), BDT model, and Hull-White which are generally used in the market considering the price of underlying assets and volatility.	Price of underlying assets, volatility, discount rate, volatility of stock, risk-free market rate, credit spread, interest rate, correlation coefficient

Equity Securities, capital contributions and beneficiary certificates	Fair value is measured using one or more valuation methodologies—such as the Discounted Cash Flow (DCF) model, Free Cash Flow to Equity (FCFE) model, comparable company analysis, dividend discount model, risk-adjusted discount rate method, net asset value method, LSMC, binomial model, market approach, Hull-White model, or recent (most recent) transaction method—selected as appropriate in consideration of the characteristics of the valuation subject.	Risk-free market return, market risk premium, company beta, stock price, underlying asset volatility, fair value of underlying assets, price of the underlying asset, recent transaction price, discount rate based on credit rating, interest rate volatility, real estate sale price volatility, price-to-book ratio (PBR), price-to-sales ratio (PSR), net asset value, paid-in capital increase amount, issuance information by instrument, matrix-based yield to maturity (YTM), company-specific risk spread, perpetual growth rate, liquidation value change rate and interest rate.

Debt securities	Future cash flows of the debt securities are measured by discounting them using a market interest rate applicable to companies with credit ratings similar to that of the issuer	Discount rate, perpetual growth rate, and liquidation value change rate

Derivatives	Fair value is measured by models such as option model.	Correlation coefficient, stock price, volatility of underlying assets etc.

Others	The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the binomial tree, which is commonly used valuation techniques in the market.	Stock price, volatility of underlying assets etc.

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:


			December 31, 2024
	Fair value measurement technique	Type	Significant unobservable inputs	Range	Impact of changes in significant unobservable inputs on fair value measurement
Debt securities	LSMC(Hull-White)		Volatility	28.09%~88.35%	Variation of fair value increases as volatility increases.
Loans	DCF model		Discount rate	4.17%~5.98%	Fair value increases as discount rate decreases.
Derivatives	Option valuation model and others	Equity related	Correlation coefficient	0.29~0.65	Variation of fair value increases as correlation coefficient increases.
			Stock prices, Volatility of underlying asset	25.71%	Variation of fair value increases as volatility and stock price increases.
			Discount rate	3.94%~19.62%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%	Fair value increases as terminal growth rate increases.
Equity Securities, capital contributions, and beneficiary certificates	Binomial Tree		Stock prices, Volatility of underlying asset	18.76%~36.37%	Variation of fair value increases as volatility of underlying asset and stock price increases.
	DCF model and others		Discount rate	4.76%~19.84%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%~1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	-1.00%~1.00%	Fair value increases as liquidation value increases.
	LMSC(Hull-White)		Volatility of stock	29.30%	Variation of fair value increases as volatility increases.
			Discount rate	6.45%~15.56%	Fair value increases as discount rate decreases.
Others	Binomial Tree		Stock prices, Volatility of underlying asset	18.36%~36.90%	Variation of fair value increases as volatility of underlying asset and stock price increases.


			December 31, 2025
	Fair value measurement technique	Type	Significant unobservable inputs	Range	Impact of changes in significant unobservable inputs on fair value measurement
Debt securities	LSMC(Hull-White)		Volatility	23.45 % ~37.48 %	Variation of fair value increases as volatility increases.
Loans	DCF model		Discount rate	0.70 % ~5.26 %	Fair value increases as discount rate decreases.
Derivative assets	Option valuation model and others	Equity related	Stock prices, Volatility of underlying asset	22.55%	Variation of fair value increases as stock price and volatility increases.
			Discount rate	16.88 %	Fair value increases as discount rate decreases.
			Liquidation value	0.00 %	Fair value increases as terminal growth rate increases.
Equity securities, capital contributions, and Beneficiary certificates	Binomial Tree		Volatility of stock	20.19 % ~31.51 %	Variation of fair value increases as volatility of stock increases.
			Stock prices, Volatility of underlying asset	14.91 % ~34.34 %	Variation of fair value increases as stock price and volatility of underlying asset increases.
	DCF model and others		Discount rate	2.77 % ~19.05 %	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00 % ~1.00 %	Fair value increases as terminal growth rate increases.
			Liquidation value	-1.00 % ~12.41 %	Fair value increases as liquidation value increases.
			Int e rest rate	2.38%~3.42%	Fair value increases as interest rate decreases.
	LSMC(Hull-White)		Volatility	0.56%	Variation of fair value increases as volatility increases.
			Discount rate	3.83 % ~ 6.10 %	Fair value increases as discount rate decreases.
	Market Value Approach		Stock price	27.86 % ~31.51 %	Variation of fair value increases as stock price volatility increases.
Others	Binomial Tree		Stock prices, Volatility of underlying asset	14.91 % ~42.44 %	Variation of fair value increases as volatility of underlying asset and stock price increases.

Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.

(3)	Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2023
	Beginning balance		Business combination		Net income (loss) (*1)		Other comprehensive income			Purchases/ issuances		Disposals / settlements			Transfer to or out of Level 3 (*2)			Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		1,078		—		152		—			4,000		(1,000	)		—			4,230
Equity securities		307,851		10,628		10,632		—			62,638		(32,630	)		(5,840	)		353,279
Capital contributions		1,976,474		10,977		65,437		—			655,921		(249,163	)		—			2,459,646
Beneficiary certificates		1,458,776		—		3,534		—			280,435		(36,780	)		—			1,705,965
Loans		104,505		—		483		—			577,296		(626,282	)		—			56,002
Derivative assets		93,970		—		41,620		—			2,273		(8,725	)		—			129,138
Other financial assets in foreign currency		41,679		—		729		—			—		—			—			42,408
Others		144,840		—		9,015		—			32,214		(2,795	)		—			183,274

Sub-total		4,129,173		21,605		131,602		—			1,614,777		(957,375	)		(5,840	)		4,933,942

Financial assets at FVTOCI
Equity securities		557,065		—		—		(6,564	)		343		(2,657	)		(23	)		548,164
Loans		—		—		—		—			139,567		(139,567	)		—			—

Sub-total		557,065		—		—		(6,564	)		139,910		(142,224	)		(23	)		548,164

Total		4,686,238		21,605		131,602		(6,564	)		1,754,687		(1,099,599	)		(5,863	)		5,482,106

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		9,449		—		1,994		—			—		(9,449	)		—			1,994

Total		9,449		—		1,994		—			—		(9,449	)		—			1,994

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounting to 171,095 million Won for the year ended December 31, 2023, which is from financial assets and liabilities that the Group holds as at the end of the year.

(*2)	The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.


	For the year ended December 31, 2024
	Beginning balance		Net income (loss) (*1)			Other comprehensive income		Purchases/ issuances		Disposals / settlements			Transfer to or out of Level 3 (*2)			Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		4,230		727			—		5,000		(2,600	)		—			7,357
Equity securities		353,279		(3,909	)		—		72,230		(24,648	)		1,947			398,899
Capital contributions		2,459,646		89,418			—		565,396		(254,369	)		(6,578	)		2,853,513
Beneficiary certificates		1,705,965		58,640			—		403,439		(62,632	)		(252	)		2,105,160
Loans		56,002		754			—		326,516		(348,496	)		—			34,776
Derivative assets		129,138		(1,169	)		—		327		(127,108	)		—			1,188
Other financial assets in foreign currency		42,408		5,937			—		—		—			—			48,345
Others		183,274		13,336			—		58,813		(17,157	)		—			238,266

Sub-total		4,933,942		163,734			—		1,431,721		(837,010	)		(4,883	)		5,687,504

Financial assets at FVTOCI
Equity securities		548,164		—			10,920		2,841		(5,954	)		3,463			559,434
Loans		—		—			—		202,916		(202,916	)		—			—

Sub-total		548,164		—			10,920		205,757		(208,870	)		3,463			559,434

Total		5,482,106		163,734			10,920		1,637,478		(1,045,880	)		(1,420	)		6,246,938

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		1,994		1,115			—		—		(1,707	)		—			1,402

Total		1,994		1,115			—		—		(1,707	)		—			1,402

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amount

to 204,822 million Won for the year ended December 31, 2024, which is from financial assets and liabilities that the Group holds as at the end of the year.

(*2)	The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.


	For the year ended December 31, 2025
	Beginning balance		Business combination		Net income (loss) (*1)			Other comprehensive income		Purchases/ issuances		Disposals / settlements			Transfer to or out of Level 3 (*2)			Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		7,357		—		19,786			—		56,562		(7,358	)		—			76,347
Equity securities		398,899		98,457		11,895			—		78,615		(21,274	)		(16,961	)		549,631
Capital contributions		2,853,513		55,160		45,937			—		467,100		(344,275	)		(4,306	)		3,073,129
Beneficiary certificates		2,105,160		4,844,951		50,083			—		204,980		(77,553	)		—			7,127,621
Loans		34,776		205,627		2,869			—		10,302		(28,959	)		—			224,615
Derivative assets		1,188		—		(1,473	)		—		1,349		(144	)		—			920
Other financial assets in foreign currency		48,345		—		(117	)		—		35,721		—			—			83,949
Others		238,266		—		9,603			—		12,095		(19,229	)		—			240,735

Sub-total		5,687,504		5,204,195		138,583			—		866,724		(498,792	)		(21,267	)		11,376,947

Financial assets at FVTOCI
Equity securities		559,434		421,450		—			86,683		3,038		(905	)		(5,216	)		1,064,484
Loans		—		—		—			3		348,428		(338,190	)		—			10,241

Sub-total		559,434		421,450		—			86,686		351,466		(339,095	)		(5,216	)		1,074,725

Total		6,246,938		5,625,645		138,583			86,686		1,218,190		(837,887	)		(26,483	)		12,451,672

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		1,402		—		—			—		236		(1,402	)		—			236

Total		1,402		—		—			—		236		(1,402	)		—			236

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amount

to 70,463 million Won for the year ended December 31, 2025, which is from financial assets and liabilities that the Group holds as at the end of the year.

(*2)	The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

(4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows.

The sensitivity analysis of the financial instruments has been performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the table below reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate-related derivatives, currency-related derivatives, equity related derivatives, beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 6,248,340 million Won and 12,451,909 million Won as of December 31, 2024 and 2025 respectively, equity instruments of 5,655,401 million Won and 6,234,075 million Won whose carrying amount

considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis.

The sensitivity on fluctuation of input variables by financial instruments as of December 31, 2023, 2024 and 2025 is as follows (Unit: Korean Won in millions):


	December 31, 2023
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		88		(95	)		—		—
Loans (*2)		202		(199	)		—		—
Debt securities (*3)		21		(22	)		—		—
Equity securities (2)(3)		11,562		(8,953	)		—		—
Beneficiary certificates (*4)		722		(722	)		—		—
Others (*2)		4,098		(3,921	)		—		—
Financial assets at FVTOCI
Equity securities (3)(4)		—		—			28,020		(22,302	)

Total		16,693		(13,912	)		28,020		(22,302	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		10		(7	)		—		—

Total		10		(7	)		—		—

(*1)	Fair value changes of equity related derivatives assets and liabilities are calculated by increasing or decreasing correlation, which are major unobservable variables, by 10%, respectively.

(*2)	Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10%p~10%p). The stock prices and volatility are major unobservable variables.

(*3)	Fair value changes of equity securities are calculated by increasing or decreasing growth rate (-1%p~1%p) and discount rate (-1%p~1%p) or liquidation value (-1%p~1%p). The growth rate, discount rate, and liquidation value are major unobservable variables.

(*4)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.


	December 31, 2024
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		50		(51	)		—		—
Loans (*2)		155		(152	)		—		—
Debt securities (*3)		469		(435	)		—		—
Equity securities (2)(4)(*5)		19,824		(14,380	)		—		—
Beneficiary certificates (*6)		706		(705	)		—		—
Others (4)(6)		2,554		(2,402	)		—		—
Financial assets at FVTOCI
Equity securities (5)(6)(*7)		—		—			47,087		(32,879	)

Total		23,758		(18,125	)		47,087		(32,879	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		—		—			—		—

Total		—		—			—		—

(*1)	Fair value changes of equity-related derivatives assets and liabilities are calculated by increasing or decreasing correlation or volatility, which are major unobservable variables, by 10% each, respectively.

(*2)	Fair value changes are calculated by increasing or decreasing growth rate (0%~1%) and discount rate or liquidation value (-1%~1%), which are major unobservable variables.

(*3)	Fair value changes are calculated by increasing or decreasing stock price volatility by 10%, which are major unobservable variables.

(*4)	Fair value changes of equity securities are calculated by increasing or decreasing stock price (-10%~10%) and volatility (-10%p~10%p), which are major unobservable variables.

(*5)	Fair value changes of equity securities are calculated by increasing or decreasing growth rate (-1%p~1%p) and discount rate (-1%p~1%p) or liquidation value (-1%p~1%p), which are major unobservable variables.

(*6)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates among equity securities is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of real estate are calculated by increasing or decreasing price fluctuation rate of real estate which are underlying assets and discount rate by 1%p.

(*7)	Fair value changes of equity securities are calculated by increasing or decreasing correlation between growth rate and discount rate, which are unobservable variables.


	December 31, 2025
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (1)(4)		19		(19	)		—		—
Loans (*2)		258		(265	)		—		—
Debt securities (*3)		1,343		(1,360	)		—		—
Equity securities (2)(4)(*5)		23,858		(17,454	)		—		—
Beneficiary certificates (5)(6)		55,124		(52,986	)		—		—
Others (*4)		2,731		(2,458	)		—		—
Financial assets at FVTOCI
Equity securities (*5)		—		—			50,556		(44,137	)

Total		83,333		(74,542	)		50,556		(44,137	)

(*1)	Fair value changes of equity related derivatives assets and liabilities are calculated by increasing or decreasing liquidation value or discount rate, which are major unobservable variables, by 1% each, respectively.

(*2)	Fair value changes of equity securities are calculated by increasing or decreasing the correlation between the key unobservable inputs—growth rate (0–1%) and discount rate, or liquidation value (–1–1%) and discount rate.

(*3)	Fair value changes of equity securities are calculated by increasing or decreasing stock price volatility, which is major unobservable variables, by 10%.

(*4)	Fair value changes of equity securities are calculated by increasing or decreasing stock price (-10%p~10%p) and volatility (-10%p~10%p), which are major unobservable variables.

(*5)	Fair value changes of equity securities are calculated by increasing or decreasing discount rate (-1%p~1%p) and growth rate (-1%p~1%p) and or liquidation value (-1%p~1%p), which are major unobservable variables.

(*6)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing liquidation value of real estate which is underlying assets and discount rate by 1%.

(5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):


	December 31, 2024
	Fair value								Carrying amount
	Level 1		Level 2		Level 3		Total		Carrying amount
Financial assets:
Securities at amortized cost		3,242,384		15,894,576		9,991		19,146,951		19,203,177
Loans and other financial assets at amortized cost		—		7,149,151		393,995,021		401,144,172		398,471,816
Financial liabilities:
Deposits due to customers		—		367,128,451		—		367,128,451		366,821,156
Borrowings		—		29,622,705		432,561		30,055,266		30,117,031
Debentures		—		48,273,103		—		48,273,103		48,207,103
Other financial liabilities (*)		—		30,201,229		809,007		31,010,236		31,786,960

(*)	Lease liabilities are excluded as of December 31, 2024.


	December 31, 2025
	Fair value								Carrying amount
	Level 1		Level 2		Level 3		Total		Carrying amount
Financial assets:
Securities at amortized cost		6,900,333		11,750,572		—		18,650,905		18,707,459
Loans and other financial assets at amortized cost		—		9,214,407		405,939,832		415,154,239		412,495,783
Financial liabilities:
Deposits due to customers		—		376,725,914		—		376,725,914		376,580,845
Borrowings		—		33,953,026		184,609		34,137,635		34,183,267
Debentures		—		54,302,059		1,256,084		55,558,143		55,583,392
Investment contract liabilities		—		—		3,433,611		3,433,611		3,433,611
Other financial liabilities (*)		—		36,473,258		932,195		37,405,453		37,576,486

(*)	Lease liabilities are excluded as of December 31, 2025.

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Group determines fair value by using valuation methods. Valuation methods and input variables for financial assets and liabilities that are measured at amortized cost are given as follows:


	Valuation methods	Input variables
Securities at amortized cost	The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread.	Risk-free market rate and credit spread
Loans and other financial assets at amortized cost	The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.	Risk-free market rate, credit spread and prepayment rate
Deposits due to customers, borrowings, debentures and other financial liabilities	The fair value is measured by discounting the projected cash flow of debt products by applying the market discount rate that is reflecting credit rating of the Group or the market discount rate used for similar in products.	Risk-free market rate, credit spread and forward rate
Investment contract liabilities	Since it is difficult to derive reliable expected cash flows, the book value of the reserves calculated in accordance with the Insurance Business Act and the Insurance Supervisory Regulations was used as a proxy for fair value.	-

(6) Deferred day 1 profits or losses

Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2023			2024			2025
Beginning balance		17,964			7,848			28
Amounts recognized in losses		(10,116	)		(7,820	)		(28	)

Ending balance		7,848			28			—

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded as the transaction price at the time of acquisition, even though there are difference noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or losses as of December 31, 2024 and 2025.

(7) Financial instruments by category

Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions):


	December 31, 2024
Financial assets	Financial asset at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (designated for hedging)		Total
Deposits		73,951		—		2,630,604		—		2,704,555
Securities		14,879,996		43,797,745		19,203,177		—		77,880,918
Loans		104,177		—		386,069,294		—		386,173,471
Derivative assets		10,094,532		—		—		175,191		10,269,723
Other financial assets		50,016		—		9,771,918		—		9,821,934

Total		25,202,672		43,797,745		417,674,993		175,191		486,850,601


	December 31, 2024
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities designated to be measured at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (designated for hedging)		Total
Deposits due to customers		74,205		547,816		366,821,156		—		367,443,177
Borrowings		182,478		—		30,117,031		—		30,299,509
Debentures		—		—		48,207,103		—		48,207,103
Derivative liabilities		9,092,098		—		—		102,815		9,194,913
Other financial liabilities (*)		—		—		31,786,960		—		31,786,960

Total		9,348,781		547,816		476,932,250		102,815		486,931,662

(*)	Lease liabilities are excluded as of December 31, 2024.


	December 31, 2025
Financial assets	Financial asset at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (designated for hedging)		Total
Deposits		261,470		—		2,674,644		—		2,936,114
Securities		26,997,640		83,489,281		18,707,459		—		129,194,380
Loans		1,126,446		10,241		398,706,030		—		399,842,717
Derivative assets		5,774,203		—		—		217,180		5,991,383
Other financial assets		85,716		—		11,115,109		—		11,200,825

Total		34,245,475		83,499,522		431,203,242		217,180		549,165,419


	December 31, 2025
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities designated to be measured at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (designated for hedging)		Total
Deposits due to customers		263,251		467,501		376,580,845		—		377,311,597
Borrowings		496,518		—		34,183,267		—		34,679,785
Debentures		—		—		55,583,392		—		55,583,392
Investment contract liabilities		—		—		3,433,611		—		3,433,611
Derivative liabilities		5,129,664		—		—		615,361		5,745,025
Other financial liabilities (*)		—		—		37,576,486		—		37,576,486

Total		5,889,433		467,501		507,357,601		615,361		514,329,896

(*)	Lease liabilities are excluded as of December 31, 2025.

(8) Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category during the years ended December 31, 2023, 2024 and 2025 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2023
	Interest Income (expense)			Fees and Commissions Income (expense)		Reversal (provision) of credit loss			Gain or loss on transactions and valuation			Dividends, etc.		Total
Financial assets at FVTPL		192,094			514		—			488,486			222,357		903,451
Financial assets at FVTOCI		999,407			1,621		(16,542	)		(37,641	)		17,936		964,781
Securities at amortized cost		782,513			—		(5,549	)		—			—		776,964
Loans and other financial assets at amortized cost		18,667,540			578,387		(1,839,987	)		203,942			—		17,609,882
Financial liabilities at amortized cost		(11,887,127	)		1,247		—			—			—		(11,885,880	)
Net derivatives (designated for hedging)		—			—		—			15,678			—		15,678

Total		8,754,427			581,769		(1,862,078	)		670,465			240,293		8,384,876


	For the year ended December 31, 2024
	Interest income (expense)			Fees and commissions income (expense)		Reversal (provision) of credit loss			Gain or loss on transactions and valuation			Dividends, etc.		Total
Financial instruments at FVTPL		236,793			1,174		—			1,512,430			291,123		2,041,520
Financial instruments designated to be measured at FVTPL (*)		—			—		—			(19,647	)		—		(19,647	)
Financial assets at FVTOCI		1,281,642			951		(8,868	)		96,620			19,198		1,389,543
Securities at amortized cost		643,056			—		3,287			—			—		646,343
Loans and other financial assets at amortized cost		19,851,850			566,911		(1,715,074	)		286,885			—		18,990,572
Financial liabilities at amortized cost		(13,108,310	)		56		—			—			—		(13,108,254	)
Net derivatives (designated for hedging)		—			—		—			128,646			—		128,646

Total		8,905,031			569,092		(1,720,655	)		2,004,934			310,321		10,068,723

(*)	The amounts recognized in other comprehensive income related to financial liabilities designated to be measured at FVTPL are 1,831 million Won during the year ended December 31, 2024.


	For the year ended December 31, 2025
	Interest Income (expense)			Fees and Commissions Income (expense)			Reversal (provision) of credit loss			Gain or loss on transactions and valuation			Dividends, etc.		Total
Financial assets at FVTPL		303,458			(480	)		—			723,045			455,021		1,481,044
Financial instruments designated to be		—			—			—			2,894			—		2,894
Financial assets at FVTOCI		1,866,114			280			(10,190	)		130,620			29,444		2,016,268
Securities at amortized cost		539,933			—			(330	)		—			—		539,603
Loans and other financial assets at amortized cost		18,470,052			44,386			(2,087,384	)		107,667			—		16,534,721
Financial liabilities at amortized cost		(11,382,195	)		1			—			—			—		(11,382,194	)
Net derivatives (designated for hedging)		—			—			—			(449,507	)		—		(449,507	)

Total		9,797,362			44,187			(2,097,904	)		514,719			484,465		8,742,829

(*)	The amounts recognized in other comprehensive loss related to financial liabilities designated to be measured at FVTPL are 74 million Won during the year ended December 31, 2025.