Provisions (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Provisions [abstract] |
|
| Summary of details of provisions |
| (1) |
Details of provisions are as follows (Unit: Korean Won in millions): |
|
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|
|
|
|
|
|
|
| |
|
|
|
|
|
|
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. |
|
| Summary of changes in provisions on guarantees |
| 1) |
Provisions for guarantees |
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| |
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For the year ended December 31, 2023 |
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| |
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|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
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| (*) |
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 |
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| |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
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|
|
|
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|
|
|
|
|
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|
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Ending balance |
|
|
57,309 |
|
|
|
2,534 |
|
|
|
11,627 |
|
|
|
71,470 |
|
|
|
|
|
|
|
|
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|
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|
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|
(*) |
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 |
) |
|
|
|
|
|
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Ending balance |
|
|
60,091 |
|
|
|
3,407 |
|
|
|
15,819 |
|
|
|
79,317 |
|
|
|
|
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|
(*) |
Recognized as a result of changes in financial guarantee liabilities. |
|
| Summary of changes in provisions on unused loan commitments |
| 2) |
Provisions for unused loan commitment |
|
|
|
|
|
|
|
|
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|
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|
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|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Ending balance |
|
|
108,775 |
|
|
|
26,328 |
|
|
|
232 |
|
|
|
135,335 |
|
|
|
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|
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| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Ending balance |
|
|
108,218 |
|
|
|
24,896 |
|
|
|
4,448 |
|
|
|
137,562 |
|
|
|
|
|
|
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|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Others |
|
|
(216 |
) |
|
|
1 |
|
|
|
215 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Ending balance |
|
|
111,499 |
|
|
|
21,647 |
|
|
|
3,935 |
|
|
|
137,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Summary of changes in asset retirement obligation |
(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.
|
| Summary of changes in other obligation |
| (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 |
|
|
|
|
|
|
|
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|