| Provisions |
| (1) |
Details of provisions are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Asset retirement obligation |
|
|
97,772 |
|
|
|
106,786 |
|
Provisions for guarantees (*1) |
|
|
71,470 |
|
|
|
79,317 |
|
Provisions for unused loan commitments |
|
|
137,562 |
|
|
|
137,081 |
|
Other provisions (*2) |
|
|
304,624 |
|
|
|
467,549 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
611,428 |
|
|
|
790,733 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
Provisions for guarantees includes provision for financial guarantee of 48,785 million Won and million Won as of December 31, 2024 and 2025, respectively. |
| (*2) |
Other provisions consist of provision for litigation, loss compensation and others. |
| (2) |
Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won in millions): |
| 1) |
Provisions for guarantees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
44,496 |
|
|
|
24,327 |
|
|
|
7,685 |
|
|
|
76,508 |
|
Transfer to 12-month expected credit loss |
|
|
20,503 |
|
|
|
(20,503 |
) |
|
|
— |
|
|
|
— |
|
Transfer to expected credit loss for the entire period |
|
|
(453 |
) |
|
|
453 |
|
|
|
— |
|
|
|
— |
|
Transfer to credit-impaired financial assets |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
7 |
|
|
|
— |
|
Net provision (reversal) of unused amount |
|
|
5,492 |
|
|
|
(1,470 |
) |
|
|
(467 |
) |
|
|
3,555 |
|
Others (*) |
|
|
644 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
70,678 |
|
|
|
2,800 |
|
|
|
7,225 |
|
|
|
80,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*) |
Recognized as a result of new financial guarantee contract valued at initial fair value. |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2024 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
70,678 |
|
|
|
2,800 |
|
|
|
7,225 |
|
|
|
80,703 |
|
Transfer to 12-month expected credit loss |
|
|
317 |
|
|
|
(317 |
) |
|
|
— |
|
|
|
— |
|
Transfer to expected credit loss for the entire period |
|
|
(230 |
) |
|
|
230 |
|
|
|
— |
|
|
|
— |
|
Transfer to credit-impaired financial assets |
|
|
(100 |
) |
|
|
(90 |
) |
|
|
190 |
|
|
|
— |
|
Net provision (reversal) of unused amount |
|
|
(9,352 |
) |
|
|
(108 |
) |
|
|
4,211 |
|
|
|
(5,249 |
) |
Others (*) |
|
|
(4,004 |
) |
|
|
19 |
|
|
|
1 |
|
|
|
(3,984 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
57,309 |
|
|
|
2,534 |
|
|
|
11,627 |
|
|
|
71,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) |
Recognized as a result of new financial guarantee contract valued at initial fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2025 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
57,309 |
|
|
|
2,534 |
|
|
|
11,627 |
|
|
|
71,470 |
|
Transfer to 12-month expected credit loss |
|
|
536 |
|
|
|
(536 |
) |
|
|
— |
|
|
|
— |
|
Transfer to expected credit loss for the entire period |
|
|
(438 |
) |
|
|
438 |
|
|
|
— |
|
|
|
— |
|
Transfer to credit-impaired financial assets |
|
|
(809 |
) |
|
|
(39 |
) |
|
|
848 |
|
|
|
— |
|
Net provision (reversal) of unused amount |
|
|
4,005 |
|
|
|
1,015 |
|
|
|
3,344 |
|
|
|
8,364 |
|
Others (*) |
|
|
(512 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(517 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
60,091 |
|
|
|
3,407 |
|
|
|
15,819 |
|
|
|
79,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) |
Recognized as a result of changes in financial guarantee liabilities. |
| 2) |
Provisions for unused loan commitment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
67,640 |
|
|
|
38,188 |
|
|
|
205 |
|
|
|
106,033 |
|
Transfer to 12-month expected credit loss |
|
|
19,492 |
|
|
|
(19,458 |
) |
|
|
(34 |
) |
|
|
— |
|
Transfer to expected credit loss for the entire period |
|
|
(3,631 |
) |
|
|
3,670 |
|
|
|
(39 |
) |
|
|
— |
|
Transfer to credit-impaired financial assets |
|
|
(183 |
) |
|
|
(263 |
) |
|
|
446 |
|
|
|
— |
|
Net provision (reversal) of unused amount |
|
|
25,438 |
|
|
|
4,191 |
|
|
|
(346 |
) |
|
|
29,283 |
|
Others |
|
|
19 |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
108,775 |
|
|
|
26,328 |
|
|
|
232 |
|
|
|
135,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2024 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
108,775 |
|
|
|
26,328 |
|
|
|
232 |
|
|
|
135,335 |
|
Transfer to 12-month expected credit loss |
|
|
9,966 |
|
|
|
(9,945 |
) |
|
|
(21 |
) |
|
|
— |
|
Transfer to expected credit loss for the entire period |
|
|
(3,485 |
) |
|
|
3,491 |
|
|
|
(6 |
) |
|
|
— |
|
Transfer to credit-impaired financial assets |
|
|
(277 |
) |
|
|
(321 |
) |
|
|
598 |
|
|
|
— |
|
Net provision (reversal) of unused amount |
|
|
(7,731 |
) |
|
|
5,209 |
|
|
|
3,412 |
|
|
|
890 |
|
Others |
|
|
970 |
|
|
|
134 |
|
|
|
233 |
|
|
|
1,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
108,218 |
|
|
|
24,896 |
|
|
|
4,448 |
|
|
|
137,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
108,218 |
|
|
|
24,896 |
|
|
|
4,448 |
|
|
|
137,562 |
|
Transfer to 12-month expected credit loss |
|
|
9,547 |
|
|
|
(9,514 |
) |
|
|
(33 |
) |
|
|
— |
|
Transfer to expected credit loss for the entire period |
|
|
(3,171 |
) |
|
|
3,179 |
|
|
|
(8 |
) |
|
|
— |
|
Transfer to credit-impaired financial assets |
|
|
(1,477 |
) |
|
|
(523 |
) |
|
|
2,000 |
|
|
|
— |
|
Net provision (reversal) of unused amount |
|
|
(4,363 |
) |
|
|
3,608 |
|
|
|
(2,701 |
) |
|
|
(3,456 |
) |
Changes due to business combinations |
|
|
2,961 |
|
|
|
— |
|
|
|
14 |
|
|
|
2,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
(216 |
) |
|
|
1 |
|
|
|
215 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
111,499 |
|
|
|
21,647 |
|
|
|
3,935 |
|
|
|
137,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) |
Changes in asset retirement obligation for the years ended December 31, 2023, 2024 and 2025 are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31 |
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
82,717 |
|
|
|
95,179 |
|
|
|
97,772 |
|
Provisions provided |
|
|
6,979 |
|
|
|
5,790 |
|
|
|
4,700 |
|
Provisions used |
|
|
(1,542 |
) |
|
|
(5,467 |
) |
|
|
(8,447 |
) |
Reversal of provisions unused |
|
|
(1,202 |
) |
|
|
(957 |
) |
|
|
(314 |
) |
|
|
|
2,412 |
|
|
|
1,551 |
|
|
|
1,458 |
|
Changes due to business combinations |
|
|
— |
|
|
|
218 |
|
|
|
4,512 |
|
Increase of restoration expense, etc. |
|
|
5,815 |
|
|
|
1,458 |
|
|
|
7,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95,179 |
|
|
|
97,772 |
|
|
|
106,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased property as of December 31, 2025, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each property’s lease period, and the Group has used average lease period for each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost.
| (4) |
Changes in other provisions for the years ended December 31, 2023, 2024 and 2025 are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the years ended December 31 |
|
| |
|
|
|
|
|
|
|
|
|
Beginning balance |
|
|
280,607 |
|
|
|
494,814 |
|
|
|
304,624 |
|
Provisions provided |
|
|
265,574 |
|
|
|
31,028 |
|
|
|
135,823 |
|
Provisions used |
|
|
(30,974 |
) |
|
|
(186,343 |
) |
|
|
(5,185 |
) |
Reversal of provisions unused |
|
|
(18,579 |
) |
|
|
(9,069 |
) |
|
|
(377 |
) |
Foreign currencies translation adjustments |
|
|
(1,844 |
) |
|
|
209 |
|
|
|
82 |
|
Transfer |
|
|
— |
|
|
|
(21,343 |
) |
|
|
(16,283 |
) |
Changes due to business combinations |
|
|
— |
|
|
|
— |
|
|
|
48,754 |
|
Others |
|
|
30 |
|
|
|
(4,672 |
) |
|
|
111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
494,814 |
|
|
|
304,624 |
|
|
|
467,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
The Group recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund (DLF) in 2019 and provisions for fines expected to be imposed by the Financial Services Commission as the best estimate of expenditure required to fulfil its current obligations at the end of the period. |
|
2) |
The Group recognized provisions for estimated compensation amounts related to the prepayment arising from the delay in the redemption of funds and other related issues and the dispute settlement as the best estimate of the expenditure amounting to 246,422 million won and 259,168 million Won as of December 31, 2024 and 2025. In addition, the Group recognized provisions of KRW 781 million and KRW 2,847 million as of December 31, 2024 and 2025, respectively, for estimated compensation related to expected losses of customers who invested in equity-linked securities, as well as for fines and penalties expected to be imposed by the Financial Services Commission. |
|