| Derivatives |
| (1) |
Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions): |
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Interest rate: |
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Futures |
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449,127 |
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— |
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— |
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— |
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— |
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|
|
— |
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|
|
— |
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Forwards |
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3,530,000 |
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— |
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— |
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52,855 |
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— |
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— |
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274,980 |
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Swaps |
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138,816,980 |
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— |
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10,102 |
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308,333 |
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|
180 |
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102,635 |
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199,761 |
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Purchase options |
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50,000 |
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— |
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— |
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81 |
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— |
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— |
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— |
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Written options |
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360,000 |
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— |
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— |
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— |
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— |
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— |
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10,595 |
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Currency: |
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Futures |
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2,837 |
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— |
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— |
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— |
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— |
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— |
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— |
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Forwards |
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111,927,474 |
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— |
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— |
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5,638,032 |
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— |
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— |
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1,805,299 |
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Swaps |
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85,880,218 |
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165,089 |
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— |
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4,089,265 |
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— |
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— |
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6,796,459 |
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Purchase options |
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175,221 |
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— |
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— |
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4,779 |
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— |
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— |
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— |
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Written options |
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265,182 |
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— |
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— |
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— |
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— |
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— |
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3,603 |
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Equity: |
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Futures |
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— |
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— |
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— |
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— |
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|
— |
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|
— |
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— |
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Forwards |
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1,520 |
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— |
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— |
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|
182 |
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— |
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— |
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— |
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Swaps |
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7,698 |
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— |
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— |
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— |
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— |
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— |
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1,401 |
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Purchase options |
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1,767 |
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— |
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— |
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|
1,005 |
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— |
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— |
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— |
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Written options |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Total |
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341,468,024 |
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165,089 |
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10,102 |
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10,094,532 |
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180 |
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102,635 |
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9,092,098 |
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Futures |
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1,028,982 |
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— |
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— |
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— |
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— |
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— |
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— |
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Forwards |
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6,097,038 |
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7,192 |
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— |
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155,174 |
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139,341 |
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— |
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118,441 |
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Swaps |
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134,440,759 |
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|
903 |
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37,010 |
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136,822 |
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— |
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27,050 |
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141,569 |
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Written options |
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320,000 |
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— |
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— |
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— |
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— |
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— |
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8,194 |
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Currency: |
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Futures |
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131,014 |
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— |
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— |
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— |
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— |
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— |
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— |
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Forwards |
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111,686,895 |
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2,221 |
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|
1,201 |
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2,652,148 |
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236,677 |
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70,989 |
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1,190,226 |
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Swaps |
|
|
76,846,634 |
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|
168,653 |
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|
|
— |
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|
2,827,872 |
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|
141,304 |
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— |
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3,670,407 |
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Purchase options |
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67,650 |
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|
— |
|
|
|
— |
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|
|
1,267 |
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|
|
— |
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|
|
— |
|
|
|
— |
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Written options |
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81,999 |
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— |
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|
— |
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|
|
— |
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|
|
— |
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|
|
— |
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|
827 |
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Equity: |
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Futures |
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476,305 |
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— |
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— |
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— |
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— |
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— |
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— |
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Forwards |
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|
163 |
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— |
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|
— |
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|
104 |
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— |
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|
— |
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— |
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Purchase options |
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1711 |
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— |
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— |
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|
816 |
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— |
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— |
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— |
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Others: |
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Futures |
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8,378 |
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— |
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— |
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— |
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— |
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— |
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— |
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Total |
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331,187,528 |
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178,969 |
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38,211 |
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5,774,203 |
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517,322 |
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98,039 |
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5,129,664 |
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| Derivatives held for trading are classified into financial assets at FVTPL (Note 8) and financial liabilities at FVTPL (Note 21), and derivatives designated for hedging are presented as a separate line item in the consolidated statements of financial position.
| (2) |
Overview of the Group’s hedge accounting | As of December 31, 2025, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 3,763,978 million Won, and local currency denominated debentures amounting to 282,646 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rates foreign and local currency denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments. Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is hedged as the foreign currency denominated debentures and local currency debentures fixed interest rate terms are converted to floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value of hedging instrument to the face value of the hedged item. In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument. The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest, and the Group expects the fair value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction. The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is Compounding SOFR or CD 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate and pays interest at a variable interest rate. b) Foreign currency securities, Foreign private bonds As of December 31, 2025, the Group has applied fair value hedging for foreign currency securities amounting to 795,677 million Won and foreign currency private bonds amounting to 76,793 million Won. The purpose of the hedging is to avoid fair value volatility risk of foreign currency securities and foreign currency private bonds derived from exchange rate changes. To achieve this purpose, the group has entered into forward currency contracts designated as hedging instruments. The forward currency contracts are executed with the condition of selling foreign currencies on a future specific date, at a predetermined agreed amount and exchange rate. On the initiation date, the contract amount is exchanged, and on the termination date, the contracted foreign currency principal is returned. As a result, through hedging transactions, the group offsets valuation gains and losses from exchange rate fluctuations of foreign currency-denominated assets, thereby removing fair value fluctuation risk linked to foreign currency securities and bonds. The hedge ratio is determined through a method that ensures fair value changes in the hedging instruments and hedged items effectively offset each other to a similar extent. In this hedging relationship, only the exchange rate fluctuation, which is the most significant part of the fair value change in the hedged item, is designated as the hedged risk, excluding other risk factors such as credit risk or liquidity risk. Therefore, the ineffective portion of the hedge could arise from discrepancies between the settlement timing of the forward currency contract and the cash flow timing of foreign currency-denominated items, fluctuations in counterparties’ credit risks, or discrepancies between market exchange rates and contracted exchange rates. The forward currency agreements and the hedged items are subject to fluctuations in the exchange rate, and the group expects the fair value of the currency forward contract and the value of the hedged item to generally change in the opposite direction. As of December 31, 2025, the Group has applied cash flow hedge on foreign currency denominated debentures amounting to 1,350,562 million Won, and local currency denominated debentures amounting to 59,952 million Won. The Group’s hedging strategies are to ① Mitigate risks of cash flow fluctuation from variable interest rate debentures on local currency due to changes in market interest rate by entering into an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of cash flow fluctuation from principal and interest of variable interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and interest rates by entering into a currency swap contract and thereby designating it as hedging instrument; ③ Mitigate the risks of cash flow fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and ④ Mitigate the risks of cash flow fluctuation in variable interest rate foreign currency borrowings resulting from changes in market interest rates and designate it as a hedging instrument through entering into currency swap contracts and interest rate swap contracts. By exchanging a predetermined nominal amount as set forth in the interest rate swap contract adjusted by the differences between the fixed and variable interest rates, the variable interest rate terms of the Korean won-denominated variable rate bond are converted to fixed interest rate terms, thereby eliminating the cash flow volatility risk. In addition, this also means a payment of predetermined principal amount as set forth in the currency swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest rate to USD or applying fixed interest rate to USD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest. The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face amount of the hedged item in accordance with interest rate swap and currency swap. Only interest rate and foreign exchange rate fluctuation risks, which are the most significant factors in the cash flow fluctuation of the hedged item, are addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging. Accordingly, hedge ineffectiveness may arise from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction. The interest rate swap, currency swap contract and the hedged item are all affected by the changes in market interest rate and foreign exchange rates which are basic factors. The Group expects that the value of interest rate swap contracts, currency swap contracts, and value of the hedged item will generally fluctuate in opposite direction. b. Foreign currency securities, Foreign private bonds, Anticipated bond purchase As of December 31, 2025, the Group has applied cash flow hedges to manage the risks associated with foreign currency securities amounting to 5,858,666 million Won, foreign currency private bonds totaling 232,211 million Won, and anticipated bond purchase transactions. The objective of these hedging measures is to
mitigate the risk of changes in fair value from foreign currency securities and private bonds due to exchange rate changes. To achieve these objectives, the entity utilizes forward currency contracts as designated hedging instruments. The objective of these hedging measures is to mitigate the risk of cash flow fluctuations from foreign currency securities and private bonds due to exchange rate changes, as well as the price risk of future purchases of treasury and foreign government bonds. To achieve these objectives, the entity utilizes forward currency contracts, currency swaps, and bond forward contracts as designated hedging instruments. Forward currency contracts are used to eliminate cash flow volatility arising from exchange rate fluctuations of anticipated transactions in foreign currency by agreeing to sell foreign currency at a pre-established rate on a future date. These contracts are designated as hedging instruments to offset cash flow variations caused by exchange rate changes on foreign currency-denominated items. The hedge ratio is determined by aligning the nominal amount of the hedging instrument with the face value of the hedged item. Currency swap contracts are entered into to exchange interest and principal of foreign currency securities and private bonds during the contract period at predetermined notional amounts and rates, and revert the principal exchanged at inception upon maturity. This practice mitigates the cash flow volatility risk associated with the principal and interest payments of foreign currency-denominated securities and private bonds. The hedge ratio is determined by matching the nominal value of the hedging instrument to the face value of the hedged item. Bond forward contracts are structured to purchase specific bonds at a predetermined notional amount and price on a future specified date to hedge against price risk caused by interest rate fluctuations impacting bond purchase prices. Upon contract expiration, bonds are acquired at the agreed-upon rate, thereby eliminating cash flow variability risks due to future interest rate changes. Thus, the hedging transaction removes the uncertainty surrounding the cash outflow amount related to interest rate changes at the future bond purchase date, thereby ensuring stable cash flows. The nominal amount of the hedging instrument in these bond forward contracts is aligned with the anticipated purchase amount of the hedged bonds, and the hedge ratio is calibrated to ensure that cash flow fluctuations of the hedged item and hedging instrument effectively offset each other. 3) Hedges of Net Investment in Foreign Operations Foreign currency exposure arises from the Group’s net investments in Woori America Bank, Woori Bank (Cambodia) PLC, Woori Global Markets Asia Limited, and overseas branch which use USD as their functional currency. The risk arises from fluctuations in the spot exchange rate between USD and KRW. This may result in different net investment amounts. The risk hedged in the net investment hedging is the fluctuation risk of KRW against USD, which may reduce the carrying amount of the Group’s net investments in Woori America Bank, Woori Bank (Cambodia) PLC, Woori Global Markets Asia Limited, and overseas branch. A portion of the Group’s net investments in Woori America Bank, Woori Bank (Cambodia) PLC, Woori Global Markets Asia Limited, and overseas branch are hedged in USD denominated foreign currency bonds (Carrying amount as of December 31, 2025: USD 863,959,317) and mitigate foreign exchange risk arising from the net assets of subsidiaries. The debenture has been designated as a hedging instrument for the value change of net investments, which arises from fluctuation in the spot exchange rate between USD and KRW. To evaluate the effectiveness of the hedge, the Group determines the economic relationship between the hedging instrument and hedged item by comparing (offsetting) changes in the number of foreign investments due to spot exchange rate fluctuation and in the carrying amount of the liabilities due to spot exchange rate fluctuation. The Group’s policy is to hedge the net investment amount only within the principal range of the liabilities.
(3) |
The nominal amounts of the hedging instrument are as follows (Unit: USD, EUR, AUD, SEK, GBP, JPY, CAD and Korean Won in millions): |
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Interest rate swap (USD) |
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25,000,000 |
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2,650,000,000 |
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|
|
— |
|
|
|
2,675,000,000 |
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Interest rate swap (KRW) |
|
|
— |
|
|
|
— |
|
|
|
155,000 |
|
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|
155,000 |
|
Cash flow hedge |
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Interest rate risk |
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Interest rate swap (KRW) |
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|
140,000 |
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|
— |
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|
|
— |
|
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|
140,000 |
|
Foreign currencies translation risk and interest rate risk |
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Currency swap (USD) |
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|
— |
|
|
|
870,000,000 |
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|
— |
|
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|
870,000,000 |
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Foreign currencies translation risk |
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Currency swap (USD) |
|
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— |
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|
100,000,000 |
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— |
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|
|
100,000,000 |
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Currency swap (EUR) |
|
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— |
|
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|
194,780,000 |
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— |
|
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|
194,780,000 |
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Hedges of net investment in foreign operations |
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Exchange risk |
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Foreign currency bond (USD) |
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|
191,568,880 |
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|
672,390,437 |
|
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|
— |
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|
863,959,317 |
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550,000,000 |
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|
2,100,000,000 |
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|
— |
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|
|
2,650,000,000 |
|
|
|
|
— |
|
|
|
— |
|
|
|
290,000 |
|
|
|
290,000 |
|
Foreign currencies translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
414,314,566 |
|
|
|
65,544,792 |
|
|
|
— |
|
|
|
479,859,358 |
|
|
|
|
— |
|
|
|
72,961,301 |
|
|
|
— |
|
|
|
72,961,301 |
|
|
|
|
109,214,330 |
|
|
|
126,550,000 |
|
|
|
— |
|
|
|
235,764,330 |
|
|
|
|
15,700,000 |
|
|
|
— |
|
|
|
— |
|
|
|
15,700,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
320,000,000 |
|
|
|
— |
|
|
|
320,000,000 |
|
|
|
|
1,630,000 |
|
|
|
380,000 |
|
|
|
— |
|
|
|
2,010,000 |
|
|
|
|
— |
|
|
|
60,000 |
|
|
|
— |
|
|
|
60,000 |
|
Foreign currencies translation risk and interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
336,333,334 |
|
|
|
470,500,000 |
|
|
|
— |
|
|
|
806,833,334 |
|
|
|
|
52,000,000 |
|
|
|
114,900,000 |
|
|
|
— |
|
|
|
166,900,000 |
|
|
|
|
80,000,000 |
|
|
|
— |
|
|
|
— |
|
|
|
80,000,000 |
|
|
|
|
380,000,000 |
|
|
|
219,000,000 |
|
|
|
— |
|
|
|
599,000,000 |
|
|
|
|
— |
|
|
|
— |
|
|
|
5,000,000,000 |
|
|
|
5,000,000,000 |
|
Foreign currencies translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
998,071,601 |
|
|
|
700,378,132 |
|
|
|
— |
|
|
|
1,698,449,733 |
|
|
|
|
374,850,500 |
|
|
|
232,472,000 |
|
|
|
— |
|
|
|
607,322,500 |
|
|
|
|
99,970,000 |
|
|
|
160,000,000 |
|
|
|
— |
|
|
|
259,970,000 |
|
|
|
|
130,000,000 |
|
|
|
527,884,000 |
|
|
|
— |
|
|
|
657,884,000 |
|
|
|
|
194,780,000 |
|
|
|
1,012,000,000 |
|
|
|
— |
|
|
|
1,206,780,000 |
|
|
|
|
15,000,000 |
|
|
|
200,000,000 |
|
|
|
— |
|
|
|
215,000,000 |
|
|
|
|
— |
|
|
|
40,000,000 |
|
|
|
— |
|
|
|
40,000,000 |
|
|
|
|
— |
|
|
|
21,500,000,000 |
|
|
|
43,500,000,000 |
|
|
|
65,000,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedges of net investment in foreign operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency bond (USD) |
|
|
— |
|
|
|
863,959,317 |
|
|
|
— |
|
|
|
863,959,317 |
|
(4) |
The average interest rate and average currency rate of the hedging instrument as of December 31, 2024 and 2025 are as follows: |
|
|
|
| |
|
December 31, 2024 |
| |
|
Average interest rate and average exchange rate |
Fair value hedge |
|
|
Interest rate risk |
|
|
Interest rate swap (USD) |
|
Fixed 3.47% receipt and (C.SOFR) + 1.06% paid |
Interest rate swap (KRW) |
|
Fixed 4.52% receipt and CD 3M + 0.02% paid |
Cash flow hedge |
|
|
Interest rate risk |
|
|
Interest rate swap (KRW) |
|
KRW CMS 5Y+0.46% receipt, 3.65% paid |
Foreign currencies translation risk and interest rate risk |
|
|
Currency swap (USD) |
|
USD 1M SOFR+0.93% receipt, KRW 3.79% paid, USD/KRW = 1,344.45 |
Foreign currencies translation risk |
|
|
Currency swap (USD) |
|
USD 1.75% receipt, KRW 1.63% paid, USD/KRW = 1,138.50 |
Currency swap (EUR) |
|
EUR 1.98% receipt, KRW 3.40% paid, EUR/KRW = 1,344.08 |
Hedges of net investment |
|
|
Exchanging rate risk |
|
|
Foreign currency denominated debentures (USD/KRW) |
|
USD/KRW = 1,363.09 |
|
|
|
|
|
|
|
|
Average interest rate and average exchange rate |
Fair value hedge |
|
|
Interest rate risk |
|
|
Interest rate swap (USD) |
|
Fixed 3.47% receipt and (C.SOFR) + 1.06% paid |
Interest rate swap (KRW) |
|
Fixed 3.94% receipt and CD 3M + 0.01% paid |
Foreign currencies translation risk |
|
|
Currency forward (USD) |
|
USD/KRW = 1,326.88 |
|
|
USD/KRW = 1,373.60 |
Currency forward (EUR) |
|
EUR/KRW = 1,498.43 |
Currency forward (AUD) |
|
AUD/KRW = 874.06 |
|
|
AUD/KRW = 864.44 |
Currency forward (GBP) |
|
GBP/KRW = 1,854.71 |
Cash flow hedge |
|
|
Interest rate risk |
|
|
Interest forward (USD) |
|
YTM 5.14%, YTM 5.20%, USD/KRW = 1,373.23 |
Interest forward (KRW) |
|
YTM 2.91%, YTM 1.42% |
Interest rate swap (KRW) |
|
KRW CD+0.37% receipt, KRW 2.75% paid |
Foreign currencies translation risk and interest rate risk |
|
|
Currency swap (USD) |
|
USD 4.11% paid, KRW 2.54% receipt, USD 1M SOFR+0.91% receipt, KRW 3.60% paid, |
|
|
USD/KRW = 1,402.05, USD/KRW = 1,355.00 |
|
|
|
|
|
|
|
|
Average interest rate and average exchange rate |
Currency swap (EUR) |
|
EUR 3.03% paid, KRW 3.18% receipt, EUR/KRW = 1,619.42 |
Currency swap (AUD) |
|
AUD 3.11% paid, KRW 1.55% receipt, AUD/KRW = 952.20 |
Currency swap (SEK) |
|
SEK 1.88% paid, KRW 2.01% receipt, SEK/KRW = 140.55 |
Currency swap (JPY) |
|
JPY 3.20% paid, KRW 4.45% receipt, JPY/KRW = 946.53 |
Foreign currencies translation risk |
|
|
Currency forward (USD) |
|
USD/KRW = 1,343.49 |
Currency forward (EUR) |
|
EUR/KRW = 1,539.86 |
Currency forward (AUD) |
|
AUD/KRW = 863.03 |
Currency swap (USD) |
|
USD 1.75% receipt, KRW 1.63% paid,
USD 2.50% receipt, KRW 3.76% paid,
USD/KRW = 1,138.50
USD/KRW = 1,404.97 |
Currency swap (EUR) |
|
EUR 1.98% receipt, KRW 3.40% paid,
EUR 3.21% receipt, KRW 3.14% paid, EUR/KRW = 1,344.08
EUR/KRW = 1,644.48 |
Currency swap (AUD) |
|
AUD 3.58% receipt, KRW 4.96% paid, AUD/KRW = 902.70 |
Currency swap (CAD) |
|
CAD 4.46% receipt, KRW 4.60% paid, CAD/KRW = 1,062.00 |
Currency swap (JPY) |
|
JPY 4.46% receipt, KRW 3.10% paid, JPY/KRW = 9.42 |
Hedges of net investment |
|
|
Exchanging rate risk |
|
|
Foreign currency denominated debentures(USD/KRW) |
|
USD/KRW = 1,421.88 |
(5) |
The amounts related to items designated as hedging instruments are as follows (Unit: USD, EUR, AUD, SEK, GBP, JPY, CAD and Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
Nominal amounts of
the hedging
instrument |
|
|
Carrying amount of
the hedging instrument |
|
|
Line item in the statement
of financial position where
the hedging instrument is
located |
|
Changing in fair
value used for
calculating hedge
ineffectiveness |
|
| |
|
|
|
|
|
|
| Fair value hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate Swap(USD) |
|
|
2,675,000,000 |
|
|
|
10,102 |
|
|
|
102,635 |
|
|
Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) |
|
|
5,265 |
|
| Interest rate Swap(KRW) |
|
|
155,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flow hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate swap(KRW) |
|
|
140,000 |
|
|
|
— |
|
|
|
180 |
|
|
Derivative assets (designated for hedging) |
|
|
211 |
|
| Foreign currency translation risk and interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency swap(USD) |
|
|
870,000,000 |
|
|
|
104,320 |
|
|
|
— |
|
|
Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) |
|
|
110,714 |
|
| Foreign currency translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency swap(USD) |
|
|
100,000,000 |
|
|
|
29,861 |
|
|
|
— |
|
|
Derivative assets (designated for hedging) |
|
|
18,623 |
|
| Currency swap(EUR) |
|
|
194,780,000 |
|
|
|
30,908 |
|
|
|
— |
|
|
Derivative assets (designated for hedging) |
|
|
22,512 |
|
| Hedges of net investment in foreign operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exchange rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency bond(USD) |
|
|
863,959,317 |
|
|
|
— |
|
|
|
1,270,020 |
|
|
Foreign currency denominated debentures |
|
|
(156,015 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
Nominal amount of
the hedging
instrument |
|
|
Carrying amount of
the hedging instrument |
|
|
Line item in the statement
of financial position where
the hedging instrument is
located |
|
Changing in fair
value used for
calculating hedge
ineffectiveness |
|
| |
|
|
|
|
|
|
| Fair value hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate Swap (USD) |
|
|
2,650,000,000 |
|
|
|
37,010 |
|
|
|
27,050 |
|
|
Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) |
|
|
93,549 |
|
| Interest rate Swap (KRW) |
|
|
290,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currencies translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency forward (USD) |
|
|
479,859,358 |
|
|
|
1,201 |
|
|
|
40,408 |
|
|
Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) |
|
|
(252,432 |
) |
| Currency forward (EUR) |
|
|
72,961,301 |
|
|
|
— |
|
|
|
13,904 |
|
|
|
|
|
44,644 |
|
| Currency forward (AUD) |
|
|
235,764,330 |
|
|
|
— |
|
|
|
15,575 |
|
|
|
|
|
(23,061 |
) |
| Currency forward (GBP) |
|
|
15,700,000 |
|
|
|
— |
|
|
|
1,101 |
|
|
Derivative liabilities (designated for hedging) |
|
|
(1,408 |
) |
| Cash flow hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate forward (USD) |
|
|
320,000,000 |
|
|
|
4,848 |
|
|
|
27 |
|
|
Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) |
|
|
3,732 |
|
| Interest rate forward (KRW) |
|
|
2,010,000 |
|
|
|
2,344 |
|
|
|
139,313 |
|
|
|
|
|
(203,153 |
) |
| Interest rate swap (KRW) |
|
|
60,000 |
|
|
|
903 |
|
|
|
— |
|
|
|
|
|
1,084 |
|
| Foreign currency translation risk and interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency swap (USD) |
|
|
806,833,334 |
|
|
|
51,040 |
|
|
|
11,984 |
|
|
Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) |
|
|
(69,611 |
) |
| Currency swap (EUR) |
|
|
166,900,000 |
|
|
|
1,012 |
|
|
|
16,086 |
|
|
Derivative liabilities (designated for hedging) |
|
|
(9,085 |
) |
| Currency swap (AUD) |
|
|
80,000,000 |
|
|
|
605 |
|
|
|
632 |
|
|
|
|
|
(5,494 |
) |
| Currency swap (SEK) |
|
|
599,000,000 |
|
|
|
855 |
|
|
|
9,468 |
|
|
|
|
|
(7,678 |
) |
| Currency swap (JPY) |
|
|
5,000,000,000 |
|
|
|
819 |
|
|
|
— |
|
|
|
|
|
819 |
|
| Foreign currency translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency forward (USD) |
|
|
1,698,449,733 |
|
|
|
2,221 |
|
|
|
127,924 |
|
|
Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) |
|
|
13,389 |
|
| Currency forward (EUR) |
|
|
607,322,500 |
|
|
|
— |
|
|
|
89,586 |
|
|
|
|
|
(10,747 |
) |
| Currency forward (AUD) |
|
|
259,970,000 |
|
|
|
— |
|
|
|
19,167 |
|
|
|
|
|
(350 |
) |
| Currency swap (USD) |
|
|
657,884,000 |
|
|
|
30,780 |
|
|
|
27,168 |
|
|
|
|
|
(74,613 |
) |
| Currency swap (EUR) |
|
|
1,206,780,000 |
|
|
|
72,261 |
|
|
|
60,932 |
|
|
|
|
|
(16,952 |
) |
| Currency swap (AUD) |
|
|
215,000,000 |
|
|
|
— |
|
|
|
13,220 |
|
|
|
|
|
(15,574 |
) |
| Currency swap (JPY) |
|
|
65,000,000,000 |
|
|
|
10,943 |
|
|
|
1,814 |
|
|
|
|
|
8,981 |
|
| Currency swap (CAD) |
|
|
40,000,000 |
|
|
|
339 |
|
|
|
— |
|
|
|
|
|
334 |
|
| Hedges of net investment in foreign operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exchange rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency bond(USD) |
|
|
863,959,317 |
|
|
|
— |
|
|
|
1,239,695 |
|
|
Foreign currency bond |
|
|
30,325 |
|
| (6) |
Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
Carrying amount of the
hedged item |
|
|
Accumulated amount of fair
value hedge adjustments on
the hedged item included in
the carrying amount of the
hedged item |
|
|
Line item in the
statement of
financial position
in which the
hedged item is
included |
|
|
Changing in
fair value used
for calculating
hedge
ineffectiveness |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
— |
|
|
|
3,952,047 |
|
|
|
— |
|
|
|
129,306 |
|
|
|
Debentures |
|
|
|
(17,417 |
) |
|
|
— |
|
| Cash flow hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debentures |
|
|
— |
|
|
|
139,987 |
|
|
|
— |
|
|
|
— |
|
|
|
Debentures |
|
|
|
(211 |
) |
|
|
(133 |
) |
| Foreign currencies translation risk and interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debentures |
|
|
— |
|
|
|
1,275,768 |
|
|
|
— |
|
|
|
— |
|
|
|
Debentures |
|
|
|
(110,714 |
) |
|
|
(7,825 |
) |
| Foreign currencies translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debentures |
|
|
— |
|
|
|
444,345 |
|
|
|
— |
|
|
|
— |
|
|
|
Debentures |
|
|
|
(41,134 |
) |
|
|
(7,479 |
) |
| Hedges of net investment in foreign operations Exchange rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign operations net asset |
|
|
— |
|
|
|
1,270,020 |
|
|
|
— |
|
|
|
— |
|
|
|
Foreign
operations
net asset |
|
|
|
156,015 |
|
|
|
(149,577 |
) |
| (*1) |
The accumulated profit on debentures on foreign currency amounted to 124,647 million Won, and the accumulated loss on debentures on local currency amounted to 4,659 million Won, as of December 31, 2024. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
Carrying amount of the
hedged item |
|
|
Accumulated amount of fair
value hedge adjustments on
the hedged item included in
the carrying amount of the
hedged item |
|
|
Line item in the
statement of
financial position
in which the
hedged item is
included |
|
|
Changing in
fair value used
for calculating
hedge
ineffectiveness |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
— |
|
|
|
4,046,624 |
|
|
|
— |
|
|
|
36,892 |
|
|
|
Debentures |
|
|
|
(80,760 |
) |
|
|
— |
|
| Foreign currencies translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency securities |
|
|
569,122 |
|
|
|
— |
|
|
|
131,018 |
|
|
|
— |
|
|
|
FVTOCI |
|
|
|
169,469 |
|
|
|
— |
|
|
|
|
226,555 |
|
|
|
— |
|
|
|
(4,121 |
) |
|
|
— |
|
|
|
FTVPL |
|
|
|
70,015 |
|
|
|
— |
|
| Foreign private bonds |
|
|
76,793 |
|
|
|
— |
|
|
|
(7,717 |
) |
|
|
— |
|
|
|
Financial assets
at amortized cost |
|
|
|
6,567 |
|
|
|
— |
|
| Cash flow hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debentures |
|
|
— |
|
|
|
59,952 |
|
|
|
— |
|
|
|
— |
|
|
|
Debentures |
|
|
|
(1,083 |
) |
|
|
655 |
|
| Anticipated bond purchase |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
183,177 |
|
|
|
(150,651 |
) |
| Foreign currencies translation risk and interest rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debentures |
|
|
— |
|
|
|
878,855 |
|
|
|
— |
|
|
|
— |
|
|
|
Debentures |
|
|
|
53,508 |
|
|
|
(188 |
) |
| Foreign currency securities |
|
|
256,487 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
FVTOCI |
|
|
|
13,062 |
|
|
|
(1,105 |
) |
| Foreign private bonds |
|
|
176,540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Financial assets
at amortized cost |
|
|
|
11,016 |
|
|
|
(1,722 |
) |
|
|
|
55,671 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
FTVPL |
|
|
|
(321 |
) |
|
|
(77 |
) |
| Foreign currencies translation risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debentures |
|
|
— |
|
|
|
471,707 |
|
|
|
— |
|
|
|
— |
|
|
|
Debentures |
|
|
|
(33,199 |
) |
|
|
(2,242 |
) |
| Foreign currency securities |
|
|
4,996,548 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
FVTOCI |
|
|
|
141,426 |
|
|
|
(26,141 |
) |
|
|
|
605,631 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
FTVPL |
|
|
|
(13,091 |
) |
|
|
(321 |
) |
| Hedges of net investment in foreign operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exchange rate risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign operations net asset |
|
|
— |
|
|
|
1,239,695 |
|
|
|
— |
|
|
|
— |
|
|
|
Foreign
operations net
asset |
|
|
|
(30,325 |
) |
|
|
(127,258 |
) |
| (*1) |
The accumulated profit on debentures on foreign currency amounted to million W on, and the accumulated profit on debentures on local currency amounted to million W on, as of December 31, 2025. |
| (7) |
Amounts recognized in profit or loss due to the ineffective portion of fair value hedges are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
| |
|
|
|
For the year ended December 31, 2023 |
| |
|
|
|
Hedge ineffectiveness
recognized in profit or loss |
|
|
Line item in the profit or loss that
includes hedge ineffectiveness |
| Fair value hedge |
|
Interest rate risk |
|
|
(2,655 |
) |
|
Other net operating income(expense) |
|
|
|
| |
|
|
|
For the year ended December 31, 2024 |
| |
|
|
|
Hedge ineffectiveness
recognized in profit or loss |
|
|
Line item in the profit or loss that
includes hedge ineffectiveness |
| Fair value hedge |
|
Interest rate risk |
|
|
(12,152 |
) |
|
Other net operating income(expense) |
|
|
|
| |
|
|
|
For the year ended December 31, 2025 |
| |
|
|
|
Hedge ineffectiveness
recognized in profit or loss |
|
|
Line item in the profit or loss that
includes hedge ineffectiveness |
| Fair value hedge |
|
Interest rate risk |
|
|
12,788 |
|
|
Other net operating income(expense) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currencies translation risk |
|
|
13,794 |
|
|
Other net operating income(expense) |
| (8) |
Reclassification of profit or loss from other comprehensive income and equity related to cash flow hedges are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
For the year ended December 31, 2023 |
| |
|
|
|
Changes in
the value of
hedging
instruments
recognized
in OCI |
|
|
Hedge
ineffectiveness
recognized in
profit or loss |
|
|
Changes
in the
value of
foreign
basis
spread
recognized
in OCI |
|
|
Line item
recognized
in the
profit or
loss |
|
Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss |
|
|
Line item
affected in
profit or loss
due to
reclassification |
| Cash flow hedge |
|
Interest rate risk |
|
|
(2,433 |
) |
|
|
— |
|
|
|
— |
|
|
Other net operating income (expense) |
|
|
— |
|
|
Other net operating income (expense) |
|
|
Foreign currencies translation risk and interest rate risk |
|
|
(913 |
) |
|
|
— |
|
|
|
(4,871 |
) |
|
Other net operating income (expense) |
|
|
(11,683 |
) |
|
Other net operating income (expense) |
|
|
Foreign currencies translation risk |
|
|
13,419 |
|
|
|
— |
|
|
|
(3,521 |
) |
|
Other net operating income (expense) |
|
|
(6,950 |
) |
|
Other net operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
For the year ended December 31, 2024 |
| |
|
|
|
Changes in
the value of
hedging
instruments
recognized
in OCI |
|
|
Hedge
ineffectiveness
recognized in
profit or loss |
|
|
Changes
in the
value of
foreign
basis
spread
recognized
in OCI |
|
|
Line item
recognized
in the
profit or
loss |
|
Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss |
|
|
Line item
affected in
profit or loss
due to
reclassification |
| Cash flow hedge |
|
Interest rate risk |
|
|
211 |
|
|
|
— |
|
|
|
— |
|
|
Other net operating income (expense) |
|
|
— |
|
|
Other net operating income (expense) |
|
|
Foreign currencies translation risk and interest rate risk |
|
|
110,714 |
|
|
|
— |
|
|
|
3,481 |
|
|
Other net operating income (expense) |
|
|
(113,202 |
) |
|
Other net operating income (expense) |
|
|
Foreign currencies translation risk |
|
|
41,135 |
|
|
|
— |
|
|
|
980 |
|
|
Other net operating income (expense) |
|
|
(37,955 |
) |
|
Other net operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2025 |
|
|
|
|
Changes in
the value of
hedging
instruments
recognized
in OCI |
|
|
Hedge
ineffectiveness
recognized in
profit or loss |
|
|
Changes
in the
value of
foreign
basis
spread
recognized
in OCI |
|
|
Line item
recognized
in the
profit or
loss |
|
Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss |
|
|
Line item
affected in
profit or loss
due to
reclassification |
| Cash flow hedge |
|
Interest rate risk |
|
|
(155,816 |
) |
|
|
(42,521 |
) |
|
|
— |
|
|
Other net operating income (expense) |
|
|
(42,755 |
) |
|
Other net operating income (expense) |
|
|
Foreign currencies translation risk and interest rate risk |
|
|
(69,243 |
) |
|
|
(21,806 |
) |
|
|
(54 |
) |
|
Other net operating income (expense) |
|
|
70,854 |
|
|
Other net operating income (expense) |
|
|
Foreign currencies translation risk |
|
|
(95,138 |
) |
|
|
(394 |
) |
|
|
(153 |
) |
|
Other net operating income (expense) |
|
|
66,009 |
|
|
Other net operating income (expense) |
| (9) |
The amounts recognized in profit or loss and other comprehensive income related to the hedging of net investments in foreign operations are as follows (Unit: Korean Won in millions): |
| |
|
|
|
|
For the year ended December 31, 2024 |
|
| |
|
|
|
|
Other comprehensive income |
|
| |
|
|
|
|
recognized in other comprehensive income |
|
|
|
|
|
|
|
| Hedges of net investment in foreign operation |
|
|
Exchange
rate risk |
|
|
|
(156,015 |
) |
|
|
41,188 |
|
|
|
(114,827 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge ineffectiveness
recognized in profit or loss |
|
|
Account recognized for
hedge ineffectiveness |
|
| Hedges of net investment in foreign operation |
|
|
Exchange
rate risk |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2025 |
|
|
|
|
|
|
Gain or loss on hedges
recognized in other comprehensive income |
|
|
|
|
|
|
|
Hedges of net investment in foreign operation |
|
|
Exchange
rate risk |
|
|
|
30,325 |
|
|
|
(8,006 |
) |
|
|
22,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge ineffectiveness
recognized in profit or loss |
|
|
Account recognized for
hedge ineffectiveness |
|
Hedges of net investment in foreign operation |
|
|
Exchange
rate risk |
|
|
|
— |
|
|
|
— |
| No amount was reclassified from reserve of hedges of net investment in foreign operations to profit or loss during the years ended December 31, 2024 and 2025. |