| Income Tax Expense |
(1) |
Details of income tax expenses are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the years ended December 31 |
|
| |
|
|
|
|
|
|
|
|
|
| Current tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
| Current tax expense with respect to the current period |
|
|
689,395 |
|
|
|
615,120 |
|
|
|
1,178,517 |
|
| Adjustments recognized in the current period in relation to the tax expense of prior periods |
|
|
(22,825 |
) |
|
|
(35,823 |
) |
|
|
7,773 |
|
| Income tax expense directly attributable to other equity |
|
|
5,039 |
|
|
|
41,188 |
|
|
|
9,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sub-total |
|
|
671,609 |
|
|
|
620,485 |
|
|
|
1,195,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
| Change in deferred tax assets (liabilities) due to temporary differences |
|
|
442,852 |
|
|
|
408,941 |
|
|
|
(258,709 |
) |
| Income tax expense (income) directly attributable to equity |
|
|
(224,668 |
) |
|
|
18,128 |
|
|
|
(74,054 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Others |
|
|
766 |
|
|
|
3,824 |
|
|
|
(231 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sub-total |
|
|
218,950 |
|
|
|
430,893 |
|
|
|
(332,994 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
890,559 |
|
|
|
1,051,378 |
|
|
|
862,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Income tax expense reconciled to net income before income tax expense is as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the years ended December 31 |
|
| |
|
|
|
|
|
|
|
|
|
| Net income before income tax expense |
|
|
3,517,453 |
|
|
|
4,222,847 |
|
|
|
4,090,166 |
|
Tax calculated at statutory tax rate (*) |
|
|
859,608 |
|
|
|
1,014,678 |
|
|
|
997,720 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of income that is exempt from taxation |
|
|
(37,500 |
) |
|
|
(46,946 |
) |
|
|
(189,253 |
) |
| Effect of expenses that are not deductible in determining taxable income |
|
|
12,163 |
|
|
|
53,719 |
|
|
|
57,584 |
|
| Adjustments recognized in the current period in relation to the current tax of prior periods |
|
|
(22,456 |
) |
|
|
(36,205 |
) |
|
|
7,773 |
|
| Others |
|
|
78,744 |
|
|
|
66,132 |
|
|
|
(11,166 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sub-total |
|
|
30,951 |
|
|
|
36,700 |
|
|
|
(135,062 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
890,559 |
|
|
|
1,051,378 |
|
|
|
862,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective tax rate |
|
|
25.32 |
% |
|
|
24.90 |
% |
|
|
21.09 |
% |
| (*) |
The applicable income tax rate: 9.9% up to 200 million Won in tax basis, 20.9% over 200 million Won to 20 billion Won, 23.1% over 20 billion Won to 300 billion Won and 26.4% over 300 billion Won. |
| (3) |
Changes in deferred tax assets and liabilities for the years ended December 31, 2023, 2024 and 2025, are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2023 |
|
| |
|
|
|
|
|
|
|
Recognized
as income
(expense) |
|
|
Recognized as
other
comprehensive
income
(expense) |
|
|
|
|
| Gain (loss) on financial assets |
|
|
373,145 |
|
|
|
— |
|
|
|
(272,072 |
) |
|
|
(258,467 |
) |
|
|
(157,394 |
) |
| Gain on valuation using the equity method of accounting |
|
|
20,555 |
|
|
|
— |
|
|
|
(35,357 |
) |
|
|
4,430 |
|
|
|
(10,372 |
) |
| Gain (loss) on valuation of derivatives |
|
|
10,617 |
|
|
|
— |
|
|
|
24,869 |
|
|
|
326 |
|
|
|
35,812 |
|
| Accrued income |
|
|
(90,330 |
) |
|
|
— |
|
|
|
(42,608 |
) |
|
|
— |
|
|
|
(132,938 |
) |
| Provision for loan losses |
|
|
(20,105 |
) |
|
|
— |
|
|
|
61,093 |
|
|
|
— |
|
|
|
40,988 |
|
| Loan and receivables written off |
|
|
7,926 |
|
|
|
— |
|
|
|
1,846 |
|
|
|
— |
|
|
|
9,772 |
|
| Loan origination costs and fees |
|
|
(169,093 |
) |
|
|
— |
|
|
|
(4,324 |
) |
|
|
— |
|
|
|
(173,417 |
) |
| Defined benefit liability |
|
|
369,785 |
|
|
|
— |
|
|
|
29,308 |
|
|
|
28,172 |
|
|
|
427,265 |
|
| Deposits with employee retirement insurance trust |
|
|
(450,222 |
) |
|
|
— |
|
|
|
(50,044 |
) |
|
|
548 |
|
|
|
(499,718 |
) |
| Provision for guarantee |
|
|
8,328 |
|
|
|
— |
|
|
|
(54 |
) |
|
|
— |
|
|
|
8,274 |
|
| Other provision |
|
|
87,229 |
|
|
|
— |
|
|
|
91,888 |
|
|
|
— |
|
|
|
179,117 |
|
| |
|
|
(70,335 |
) |
|
|
(11,593 |
) |
|
|
(22,729 |
) |
|
|
323 |
|
|
|
(104,334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net deferred tax assets (liabilities) |
|
|
77,500 |
|
|
|
(11,593 |
) |
|
|
(218,184 |
) |
|
|
(224,668 |
) |
|
|
(376,945 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*) |
Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax losses amounts to 1,998 million Won. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended December 31, 2024 |
|
| |
|
|
|
|
|
|
|
Recognized
as income
(expense) |
|
|
Recognized as
other
comprehensive
income
(expense) |
|
|
|
|
| Gain (loss) on financial assets |
|
|
(157,394 |
) |
|
|
— |
|
|
|
(110,523 |
) |
|
|
15,463 |
|
|
|
(252,454 |
) |
| Gain (loss) on valuation using the equity method of accounting |
|
|
(10,372 |
) |
|
|
— |
|
|
|
(8,391 |
) |
|
|
1,608 |
|
|
|
(17,155 |
) |
| Gain (loss) on valuation of derivatives |
|
|
35,812 |
|
|
|
— |
|
|
|
(289,117 |
) |
|
|
(247 |
) |
|
|
(253,552 |
) |
| Accrued income |
|
|
(132,938 |
) |
|
|
— |
|
|
|
16,258 |
|
|
|
— |
|
|
|
(116,680 |
) |
| Provision for loan losses |
|
|
40,988 |
|
|
|
— |
|
|
|
41,496 |
|
|
|
— |
|
|
|
82,484 |
|
| Loan and receivables written off |
|
|
9,772 |
|
|
|
— |
|
|
|
(1,069 |
) |
|
|
— |
|
|
|
8,703 |
|
| Loan origination costs and fees |
|
|
(173,417 |
) |
|
|
— |
|
|
|
(6,775 |
) |
|
|
— |
|
|
|
(180,192 |
) |
| Defined benefit liability |
|
|
427,265 |
|
|
|
— |
|
|
|
29,008 |
|
|
|
22,120 |
|
|
|
478,393 |
|
| Deposits with employee retirement insurance trust |
|
|
(499,718 |
) |
|
|
— |
|
|
|
(400 |
) |
|
|
514 |
|
|
|
(499,604 |
) |
| Provision for guarantee |
|
|
8,274 |
|
|
|
— |
|
|
|
(2,474 |
) |
|
|
— |
|
|
|
5,800 |
|
| Other provision |
|
|
179,117 |
|
|
|
— |
|
|
|
(47,570 |
) |
|
|
— |
|
|
|
131,547 |
|
| |
|
|
(104,334 |
) |
|
|
(544 |
) |
|
|
(46,968 |
) |
|
|
(21,330 |
) |
|
|
(173,176 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net deferred tax assets (liabilities) |
|
|
(376,945 |
) |
|
|
(544 |
) |
|
|
(426,525 |
) |
|
|
18,128 |
|
|
|
(785,886 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*) |
Among the deferred tax assets and liabilities classified as ‘Others’, the deferred tax asset arising from unused tax losses amounts to 12,507 million won. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2025 |
|
|
|
|
|
|
|
|
|
Recognized
as income
(expense) |
|
|
Recognized as
other
comprehensive
income
(expense) |
|
|
|
|
|
|
|
Gain (loss) on financial assets |
|
|
(252,454 |
) |
|
|
417,200 |
|
|
|
41,158 |
|
|
|
459,475 |
|
|
|
— |
|
|
|
665,379 |
|
Gain (loss) on valuation of investment stocks accounted in equity method |
|
|
(17,155 |
) |
|
|
— |
|
|
|
(19,487 |
) |
|
|
1,198 |
|
|
|
— |
|
|
|
(35,444 |
) |
Gain (loss) on valuation of derivatives |
|
|
(253,552 |
) |
|
|
1,679 |
|
|
|
123,880 |
|
|
|
58,393 |
|
|
|
— |
|
|
|
(69,600 |
) |
|
|
|
(116,680 |
) |
|
|
(218,608 |
) |
|
|
(21,577 |
) |
|
|
— |
|
|
|
— |
|
|
|
(356,865 |
) |
Provision for loan losses |
|
|
82,484 |
|
|
|
— |
|
|
|
27,327 |
|
|
|
— |
|
|
|
— |
|
|
|
109,811 |
|
Loan and receivables written off |
|
|
8,703 |
|
|
|
— |
|
|
|
1,012 |
|
|
|
— |
|
|
|
— |
|
|
|
9,715 |
|
Loan origination costs and fees |
|
|
(180,192 |
) |
|
|
(492 |
) |
|
|
33,131 |
|
|
|
— |
|
|
|
— |
|
|
|
(147,553 |
) |
Defined benefit obligation |
|
|
478,393 |
|
|
|
12,301 |
|
|
|
52,063 |
|
|
|
6,714 |
|
|
|
— |
|
|
|
549,471 |
|
Deposits with employee retirement insurance trust |
|
|
(499,604 |
) |
|
|
(52 |
) |
|
|
(81,932 |
) |
|
|
64 |
|
|
|
— |
|
|
|
(581,524 |
) |
|
|
|
5,800 |
|
|
|
— |
|
|
|
1,207 |
|
|
|
— |
|
|
|
— |
|
|
|
7,007 |
|
|
|
|
131,547 |
|
|
|
(491 |
) |
|
|
28,563 |
|
|
|
— |
|
|
|
— |
|
|
|
159,619 |
|
Net financial gain (loss) on insurance contract assets (liabilities) |
|
|
— |
|
|
|
194,666 |
|
|
|
(75,169 |
) |
|
|
(609,063 |
) |
|
|
— |
|
|
|
(489,566 |
) |
Net financial gain (loss) on reinsurance contract assets (liabilities) |
|
|
— |
|
|
|
(24,384 |
) |
|
|
33,142 |
|
|
|
4,525 |
|
|
|
— |
|
|
|
13,283 |
|
|
|
|
(173,176 |
) |
|
|
54,180 |
|
|
|
189,445 |
|
|
|
5,725 |
|
|
|
(1,085 |
) |
|
|
75,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax assets (liabilities) |
|
|
(785,886 |
) |
|
|
435,999 |
|
|
|
332,763 |
|
|
|
(72,969 |
) |
|
|
(1,085 |
) |
|
|
(91,178 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*) |
Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax losses amounts to 318,085 million won. |
| (4) |
Unrealizable temporary differences are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deductible temporary differences |
|
|
332,384 |
|
|
|
510,185 |
|
Tax loss carry forward |
|
|
62,963 |
|
|
|
— |
|
Taxable temporary differences |
|
|
(10,335,041 |
) |
|
|
(10,417,258 |
) |
|
|
|
|
|
|
|
|
|
Total |
|
|
(9,939,694 |
) |
|
|
(9,907,073 |
) |
|
|
|
|
|
|
|
|
| income tax asset has been recognized for the deductible temporary difference of 477,836 million Won associated with investments in subsidiaries as of December 31, 2025, because it is not probable that the temporary differences will be reversed in the foreseeable future. Also, no deferred income tax asset has been recognized for the other 32,349 million due to the uncertainty of its feasibility in the future. No deferred income tax liability has been recognized for the taxable temporary difference of 10,417,258 million associated with investment in subsidiaries as of December 31, 2025, due to the following reasons:
| |
• |
|
The Group is able to control the timing of the reversal of the temporary difference. |
| |
• |
|
It is probable that the temporary difference will not be reversed in the foreseeable future. | As of December 31, 2025, there are no tax loss carryforwards that are not recognized as deferred tax assets
| (5) |
Details of accumulated current and deferred tax charged directly to other equity are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on valuation of financial assets at FVTOCI |
|
|
(28,645 |
) |
|
|
430,830 |
|
Loss on financial instruments designated to be measured at FVTPL |
|
|
(483 |
) |
|
|
(483 |
) |
Gain on valuation of equity method investments |
|
|
2,272 |
|
|
|
3,470 |
|
Gain(loss) on foreign currency translation of foreign operations |
|
|
(11,069 |
) |
|
|
(5,344 |
) |
Gain on valuation of hedge accounting of the net investment in foreign operations |
|
|
56,042 |
|
|
|
48,036 |
|
Remeasurement gain (loss) related to defined benefit liabilities |
|
|
30,770 |
|
|
|
37,548 |
|
Gain(loss) on derivatives designated as cash flow hedge |
|
|
(7 |
) |
|
|
58,386 |
|
Net financial gain (loss) on insurance contract assets (liabilities) |
|
|
— |
|
|
|
(609,063 |
) |
Net financial gain (loss) on reinsurance contract assets (liabilities) |
|
|
— |
|
|
|
4,525 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
48,880 |
|
|
|
(32,095 |
) |
|
|
|
|
|
|
|
|
|
| (6) |
Current tax assets and liabilities are as follows (Unit: Korean Won in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax assets |
|
|
61,613 |
|
|
|
228,229 |
|
Current tax liabilities |
|
|
127,126 |
|
|
|
723,368 |
|
(7) |
Impact of Pillar Two income taxes | Under the Pillar Two legislation, the consolidated entity is required to pay additional tax equal to the difference between the GloBE effective tax rate in each jurisdiction in which its constituent entities operate and the 15% minimum tax rate. Accordingly, the Pillar Two income tax expense recognized for the current period amounts to KRW 1,569 million. The exception to the recognition and disclosure requirements for deferred tax assets and liabilities related to Pillar Two has been applied. |