Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2025

(1)	Details of income tax expenses are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2023			2024			2025
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
	2023			2024			2025
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
	Beginning balance			Business combination			Recognized as income (expense)			Recognized as other comprehensive income (expense)			Ending Balance
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
Others (*)		(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
	Beginning balance			Business combination			Recognized as income (expense)			Recognized as other comprehensive income (expense)			Ending Balance
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
Others (*)		(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
	Beginning balance			Business combination			Recognized as income (expense)			Recognized as other comprehensive income (expense)			Others			Ending Balance
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	)
Accrued income		(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	)
Provision for guarantee		5,800			—			1,207			—			—			7,007
Other provision		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
Others (*)		(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):


	December 31, 2024			December 31, 2025
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	)

(5)	Details of accumulated current and deferred tax charged directly to other equity are as follows (Unit: Korean Won in millions):


	December 31, 2024			December 31, 2025
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):