6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2020

Commission File Number: 001-31811

Woori Financial Group Inc.

(Translation of registrant’s name into English)

51, Sogong-ro, Jung-gu, Seoul, 04632, Korea

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F    ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Index

1.	Summary of 2020 3Q Business Report
2.	Exhibit 99.1 Woori Financial Group Review Report for 2020 3Q (Consolidated)
3.	Exhibit 99.2 Woori Financial Group Review Report for 2020 3Q (Separate)

2

Summary of 2020 Third Quarter Business Report

Table of Contents

I.	INTRODUCTION OF THE COMPANY		5
	1.	Overview of the Company	5
	2.	Capital Structure (Changes in Capital)	7
	3.	Total Number of Authorized Shares	7
	4.	Voting Rights	8
	5.	Dividend Information	8
II.	BUSINESS OVERVIEW		9
	1.	Results of Operations	9
	2.	Funding Sources and Uses of Funds	9
	3.	Other Information Necessary for Making Investment Decisions	11
III.	FINANCIAL INFORMATION		15
	1.	Condensed Financial Statements (Consolidated)	15
	2.	Condensed Financial Statements (Separate)	17
IV.	INDEPENDENT AUDITOR’S OPINION		19
	1.	Independent Auditor’s Opinion	19
	2.	Compensation to the Independent Auditor	19
V.	CORPORATE GOVERNANCE AND AFFILIATED COMPANIES		21
	1.	About the Board of Directors	21
	2.	Affiliated Companies (As of September 30, 2020)	22
VI.	SHAREHOLDER INFORMATION		23
	1.	Share Distribution	23
	2.	Stock Price and Stock Market Performance	24
VII.	DIRECTORS AND EMPLOYEE INFORMATION		26
	1.	Directors and Executives	26
	2.	Employee Status	27
	3.	Directors’ Compensation	27

3

Except where indicated otherwise, financial information contained in this document (including the attached financial statements) has been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“Korean IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “Woori Financial Group,” “we,” “us” or the “Company” are to Woori Financial Group Inc. and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

4

I.    Introduction of the Company
1.   Overview of the Company
a.   History
January 11, 2019	Establishment of the Company pursuant to a comprehensive stock transfer, by which Woori Bank, Woori FIS, Woori Finance Research Institute, Woori Credit Information, Woori Fund Services and Woori Private Equity Asset Management became wholly-owned subsidiaries of the Company.
February 13, 2019	Listed on the Korea Exchange (KRX).
April 5, 2019	Entered into share purchase agreements to acquire Tongyang Asset Management Corp. and ABL Global Asset Management Co., Ltd.
June 21, 2019	Entered into a purchase agreement with Woori Bank to acquire the common shares of Woori Investment Bank Co., Ltd. (“Woori Investment Bank”) and integrate Woori Investment Bank as a first-tier subsidiary of the Company (Buyer: Woori Financial Group, Seller: Woori Bank)
July 3, 2019	Entered into a stock exchange agreement between the Company and Woori Card Co., Ltd (“Woori Card”) to integrate Woori Card as a first-tier subsidiary of the Company
July 25, 2019	Entered into a share purchase agreement to acquire Kukje Asset Trust, Ltd.
August 1, 2019	Integrated Woori Asset Management Corp. (formerly known as Tongyang Asset Management Co., Ltd.) as a first-tier subsidiary of the Company.
September 10, 2019	Integrated Woori Card and Woori Investment Bank as first-tier subsidiaries of the Company.
September 26, 2019	Disposed 4% of common shares of the Company held by Woori Bank to a Taiwanese company, Fubon Life Insurance Co., Ltd.
December 6, 2019	Integrated Woori Global Asset Management Corp. as a first-tier subsidiary of the Company
December 30, 2019	Integrated Woori Asset Trust Ltd., as a first-tier subsidiary of the Company
March 25, 2020	Held the first annual general meeting of shareholders of Woori Financial Group; reappointed the Chief Executive Officer

5

b. Affiliated Companies

(1) Overview of Business Group

1. Name of business group: Woori Financial Group Inc.

(2) Affiliated companies within the business group

As of September 30, 2020

Type	Name of Company	(Controlling Company)
Company	Woori Financial Group	—
First Tier Subsidiaries     (11 companies)	Woori Bank (equity ownership 100.0%)	Woori Financial Group
	Woori Card (equity ownership 100.0%)
	Woori Investment Bank (equity ownership 59.83%)
	Woori FIS (equity ownership 100.0%)
	Woori Finance Research Institute (equity ownership 100.0%)
	Woori Credit Information (equity ownership 100.0%)
	Woori Fund Services (equity ownership 100.0%)
	Woori Asset Trust (equity ownership 51.0)%
	Woori Asset Management (equity ownership 73.0%)
	Woori Private Equity Asset Management (equity ownership 100.0%)
	Woori Global Asset Management (equity ownership 100.0%)
Second Tier Subsidiaries     (14 companies)	Korea BTL Infrastructure Fund (equity ownership 99.88%)	Woori Bank
	Woori America Bank (equity ownership 100.0%)
	Woori Bank China Limited (equity ownership 100.0%)
	PT. Bank Woori Saudara Indonesia (equity ownership 79.88%)
	AO Woori Bank (equity ownership 100.0% - 1 share)
	Banco Woori Bank do Brazil S.A. (equity ownership 100.0% - 1 share)
	WB Finance Co., Ltd (Cambodia) (equity ownership 100.0%)
	Woori Finance Myanmar (equity ownership 100.0%)
	Woori Wealth Development Bank (equity ownership 51%)
	Woori Bank Vietnam Limited (equity ownership 100.0%)
	Woori Bank Europe Gmbh (equity ownership 100.0%)
	Woori Global Markets Asia Limited (equity ownership 100.0%)
	Tutu Finance-WCI Myanmar (equity ownership 100.0%)	Woori Card
	Woori-Hanwha Eureka Private Equity Fund (equity ownership 0.80%)	Woori Private Equity Asset Management

Note 1) Listed Companies : Woori Financial Group, Woori Investment Bank and PT. Bank Woori Saudara Indonesia

6

2. Capital Structure (Changes in Capital)

As of September 30, 2020			(units: Won, shares)
			Stock Decrease/Increase
Date	Category		Type		Quantity		Par Value		Issue price		Note
January 11, 2019		—		Common		680,164,306		5,000		26,415	Establishment (comprehensive stock transfer)
September 10, 2019		—		Common		42,103,377		5,000		12,350	Comprehensive stock exchange Stock increase ratio: 6.19018%

Note 1) Due to Woori Financial Group’s establishment through a comprehensive stock transfer, the issue price was calculated by dividing the total equity from its financial statements at the time of establishment (KRW 17,966,458,911,689) by the total number of issued shares (680,164,306).

Note 2) Our capital in 2019 3Q changed due to the comprehensive stock exchange. The issue price is based on the closing stock price of the comprehensive stock exchange date.

3. Total Number of Authorized Shares

As of September 30, 2020					(unit: shares)
Items	Type				Notes
	Common Shares		Total
Number of authorized shares		4,000,000,000		4,000,000,000		—
Number of issued shares		722,267,683		722,267,683		Note 1	)
Number of treasury shares		2		2		Note 2	)
Number of outstanding shares		722,267,681		722,267,681		—

Note 1) New common shares of 42,103,377 were issued on September 10, 2019 due to the small scale stock exchange between Woori Financial Group and Woori Card.

Note 2) Acquired from the issuance of fractional shares

7

4. Voting Rights

As of December 31, 2019				(unit: shares)
Items		Number of shares		Notes
Number of issued shares	Common Shares		722,267,683		—
	Preferred Shares		—		—
Number of shares without voting rights	Common Shares		2		Note 1	)
	Preferred Shares		—		—
Number of shares for which voting rights are excluded pursuant to the articles of incorporation	Common Shares		—		—
	Preferred Shares		—		—
Number of shares for which voting rights are limited by law	Common Shares		11,669,293		Note 2	)
	Preferred Shares		—		—
Number of shares for which voting rights have been restored	Common Shares		—		—
	Preferred Shares		—		—
Number of shares for which voting rights may be exercised	Common Shares		710,598,388		—
	Preferred Shares		—		—

Note 1) Acquired treasury shares from the issuance of fractional shares (based on Article 369 of the Commercial Act).

Note 2) Pursuant to Article 8-2 of the Financial Holding Company Act, a non-financial business operator is restricted from exercising voting rights in excess of 4% of the total number of outstanding voting shares of a financial holding company.

5. Dividend Information

Woori Financial Group was established on January 11, 2019.

Items		2020 3Q		2019		2018
Par value per share (Won)			—		5,000		—
Net profit (Millions of Won)			—		1,872,207		—
Earnings per share (Won)			—		2,727		—
Total cash dividends (Millions of Won)			—		505,587		—
Total stock dividends (Millions of Won)			—		—		—
Cash dividend payout ratio (%)			—		27.00		—
Cash dividend yield (%)	Common Shares		—		5.8		—
	Preferred Shares		—		—		—
Stock dividend yield (%)	Common Shares		—		—		—
	Preferred Shares		—		—		—
Cash dividend per share (Won)	Common Shares		—		700		—
	Preferred Shares		—		—		—
Stock dividend per share (Share)	Common Shares		—		—		—
	Preferred Shares		—		—		—

Note 1) There were no board resolutions regarding dividends during 2020 3Q.

8

II. Business Overview

1. Results of Operations

As of September 30, 2020	(unit: billions of Won)
Type	2020 3Q		2019		2018
Operating income		1,848		2,800		—
Non-operating income		-138		-77		—
Income from continuing operations before income tax		1,710		2,723		—
Income tax expense from continuing operations		414		685		—
Income from discontinued operations		—		—		—
Net income		1,296		2,038		—
Controlling Interest		1,141		1,872		—
Non-controlling Interest		155		165		—

Note 1) Based on K-IFRS consolidated financial statements

2. Funding Sources and Uses of Funds

a. Sources of Funds

For the periods indicated other than as noted below								(units: millions of Won, %)
Classification	Funding Source	2020 3Q						2019
		Average Balance		Interest Rate		Proportion		Average Balance		Interest Rate		Proportion
Source	Deposits		260,793,336		1.15		71.57		249,106,041		1.51		71.14
	Borrowings		19,515,819		1.45		5.36		18,013,074		1.92		5.14
	Debentures		30,989,756		2.29		8.50		30,401,987		2.56		8.68
	Others		27,296,291		—		7.49		28,928,780		—		8.26
	Total Liabilities		338,595,201		—		92.92		326,449,882		—		93.23
Total Equity			25,814,440		—		7.08		23,703,431		—		6.77
Total Liabilities & Equity			364,409,642		—		100.00		350,153,313		—		100.00

Note 1) 2020 3Q Average Balance: average of balances as of December 31, 2019, March 31, 2020, June 30, 2020 and September 30, 2020.

 2019 Average Balance: average of balances as of March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019.

Note 2) Based on K-IFRS consolidated financial statements

9

b. Use of Funds

For the periods indicated other than as noted below								(units: millions of Won, %)
Type	Managed Item	2020 3Q						2019
		Average Balance		Interest Rate		Proportion		Average Balance		Interest Rate		Proportion
Use	Cash & Due from Banks		11,688,934		0.49		3.21		9,202,054		1.55		2.63
	Marketable securities		54,297,919		1.96		14.90		50,396,362		2.29		14.39
	Loans		265,296,005		3.05		72.80		254,691,201		3.48		72.74
	Loans in local currency		228,924,743		2.80		62.82		219,418,214		3.22		62.66
	Loans in foreign currency		22,701,742		4.08		6.23		20,982,894		4.59		5.99
	Guarantee payments		11,981		5.48		0.00		12,410		1.48		0.00
	Credit card receivables		8,125,894		7.94		2.23		8,139,789		7.98		2.32
	Foreign bills bought		5,531,644		1.77		1.52		6,137,894		2.96		1.75
	Bad debt expense in local currency (-)		-1,662,486		—		-0.46		-1,666,215		—		-0.48
	Other		34,789,270		—		9.55		37,529,911		—		10.72
Total Assets			364,409,642		—		100.00		350,153,313		—		100.00

Note 1) 2020 3Q Average Balance: average of balances as of December 31, 2019, March 31, 2020, June 30, 2020 and September 30, 2020.

   2019 Average Balance: average of balances as of March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019.

Note 2) Based on K-IFRS consolidated financial statements

10

3. Other Information Necessary for Making Investment Decisions

a. Selected Ratios

Group BIS Capital Adequacy Ratios

As of the end of the period indicated	(units: billions of Won, % )
Type	2020 3Q		2019
Equity capital (A)		27,261		27,115
Risk weighted assets (B)		191,562		228,046
BIS(Capital adequacy) ratio (A/B)		14.23		11.89

Note 1) BIS (Bank for International Settlements) Capital Adequacy Ratios : Equity capital / Risk weighted assets * 100

Note 2) Based on K-IFRS consolidated financial statements and Basel III standards

Note 3) 2019 figures based on Standardised Approach / 2020 3Q figures based on IRB Approach

Note 4) 2020 3Q figures reflect the adoption of the Basel III credit risk framework

Note 5) 2020 3Q figures are estimates only and are subject to change

Figures of Affiliated Companies

As of the end of the periods indicated			(units: 100 millions of Won, % )
Name of Company	Type		2020 3Q		2019		2018
Woori Bank	BIS ratio	Equity capital (A)		260,795		243,142		242,508
		Risk weighted assets (B)		1,478,668		1,578,895		1,549,710
		Capital adequacy ratio (A/B)		17.64		15.40		15.65
Woori Card	Adjusted capital ratio			20.36		18.33		18.08
	Tangible common equity ratio			14.00		14.29		13.54
Woori Investment Bank	BIS ratio	Equity capital (A)		3,902		3,381		3,003
		Risk weighted assets (B)		30,251		26,303		23,192
		Capital adequacy ratio (A/B)		12.90		12.86		12.95
Woori Asset Trust	Operating capital ratio			1,225.91		1,397.97		957.76
Woori Asset Management	Minimum operating capital ratio			723.57		655.8		558.9

Note 1) BIS (Bank for International Settlements) Capital Adequacy Ratio : Equity capital / Risk weighted assets * 100

Note 2) Figures for Woori Bank are based on K-IFRS consolidated financial statements and Basel III standards

Note 3) Figures for Woori Card are based on the applicable standards for business reports submitted to the Financial Supervisory Service

Note 4) Figures for Woori Investment Bank are based on the applicable standards for business reports submitted to the Financial Supervisory Service and our K-IFRS consolidated financial statements

Note 5) Figures for Woori Asset Trust are based on K-IFRS separate financial statements

Note 6) Figures for Woori Asset Management are based on K-IFRS separate financial statements

Note 7) 2020 3Q figures are estimates only and are subject to change

11

Won Liquidity Ratios

As of the end of the periods indicated													(units: millions of Won, % )
Type	2020 3Q						2019						2018
	Won Liquidity Assets		Won Liquidity Liabilities		Won Liquidity Ratio		Won Liquidity Assets		Won Liquidity Liabilities		Won Liquidity Ratio		Won Liquidity Assets		Won Liquidity Liabilities		Won Liquidity Ratio
Woori Financial Group Note 1)		426,755		31,541		1,353.0		45,079		7,475		603.1				—
Woori Card Note 2)		5,977,320		1,610,221		371.2		5,976,031		1,407,335		424.6		6,055,752		1,349,874		448.6
Woori Investment Bank Note 2)		2,323,693		1,088,701		213.4		1,671,823		1,118,318		149.5		1,183,476		444,475		266.3
Woori Asset Trust Note 3)		93,502		11,537		810.5		67,555		14,595		462.9		61,161		9,411		649.9

Note 1) Based on current assets and liabilities within one month of maturity.

Note 2) Based on current assets and liabilities within 90 days of maturity.

Note 3) Based on K-IFRS separate financial statements as well as current assets and liabilities within 90 days of maturity.

Foreign Currency (FC) Liquidity Ratios

As of the end of the periods indicated													(units: millions of Won, % )
Type	2020 3Q						2019						2018
	FC Liquidity Assets		FC Liquidity Liabilities		FC Liquidity Ratio		FC Liquidity Assets		FC Liquidity Liabilities		FC Liquidity Ratio		FC Liquidity Assets		FC Liquidity Liabilities		FC Liquidity Ratio
Woori Investment Bank Note 1)		1,594		—		—		38,111		34,734		109.7		82,633		78,104		105.8

Note 1) Based on current assets and liabilities within three months of maturity.

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Liquidity Coverage Ratios

						(unit: % )
Name of Company	Type	2020 3Q		2019		2018
Woori Bank	Liquidity coverage ratio Note 1)		93.46		107.27		103.40
	Foreign currency liquidity coverage ratio Note 2)		108.94		110.50		108.98
	Ratio of business purpose premises and equipment		11.44		12.22		12.34

Note 1) Method of calculation based on business disclosure (average of daily ratios for business days in a quarter), periods applicable are 2020 3Q, 2019 4Q and 2018 4Q

- Under the [Plans for Temporary Easing of Financial Regulations in Response to COVID-19] announced by the Financial Services Commission, the liquidity coverage ratio requirement for banks has been reduced from 100% to 85% until the end of March 2021.

Note 2) Implemented in January 2017 (increased 10% annually; current minimum ratio is 80% in 2019); method of calculation of average LCR based on business disclosure

Periods applicable are 2020 3Q, 2019 4Q and 2018 4Q; foreign currency liquidity coverage ratio for each month during the current quarter : July : 111.14%, August : 111.40%, September : 104.36%

Profitability Ratios

												(unit: % )
Type	2020 3Q				2019				2018
	ROA		ROE		ROA		ROE		ROA		ROE
Woori Financial Group Note 1)
Including non-controlling interests		0.46		7.82		0.57		10.11		—
Excluding non-controlling interests		0.41		6.88		0.52		9.29		—
Woori Bank Note 2)		0.43		6.58		0.55		8.36		0.60		8.82
Woori Card Note 2)		1.21		6.54		0.90		5.05		0.72		4.00
Woori Investment Bank Note 2)		1.66		14.91		1.69		13.66		1.30		10.49
Woori Asset Trust Note 3)		23.61		33.73		25.18		37.40		28.73		49.43
Woori Asset Management		5.92		6.20		7.41		7.77		6.06		6.32

Note 1) On an annualized basis based on the applicable standards for financial holding company business reports submitted to the Financial Supervisory Service. Average Balance of total assets and equity calculated by averaging the balances at the beginning and end of each quarter (2019: March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019). Note 2) Based on the applicable standards for business reports submitted to the Financial Supervisory Service

Note 3) Non-consolidated basis: total assets and total equity are average balances of end of previous year end and each quarter ending balances.

13

Group Asset Quality

	(units: billions of Won, % )
Type	2020 3Q		2019		2018
Total loans		285,248		266,432		—
Substandard and below loans		1,138		1,198		—
Substandard and below ratio		0.40		0.45		—
Non-Performing Loans		1,029		1,068		—
NPL Ratio		0.36		0.40		—
Substandard and below coverage ratio (A/B)		151.9		133.6		—
Loan Loss reserve (A)		1,728		1,600		—
Substandard and below loans (B)		1,138		1,198		—

Note 1) Based on the applicable standards for financial holding company business reports submitted to the Financial Supervisory Service

Asset Quality for Significant Subsidiaries and Consolidated Companies

																	(units: % )
Type	2020 3Q						2019						2018
	Substandard and below ratio		NPL ratio		Substandard and below coverage ratio		Substandard and below ratio		NPL ratio		Substandard and below coverage ratio		Substandard and below ratio		NPL ratio		Substandard and below coverage ratio
Woori Bank		0.34		0.32		151.10		0.40		0.36		121.80		0.51		0.43		119.42
Woori Card		0.70		—		102.77		0.80		—		102.84		0.80		—		104.02
Woori Investment Bank		0.32		0.12		241.03		0.49		0.21		167.39		1.51		1.49		51.21
Woori Asset Trust		62.53		—		—		37.51		—		—		10.52		—		—

Note 1) Based on the applicable standards for company business reports submitted to the Financial Supervisory Service

14

III. Financial Information

1. Condensed Financial Statements (Consolidated)

Summary Consolidated Statement of Financial Position

(The Company and its Consolidated Subsidiaries, as of the end of the periods indicated)				(unit: millions of Won)
Classification	2020 3Q			2019			2018
ASSETS
Cash and cash equivalents		8,814,244			6,392,566			6,747,894
Financial assets at fair value through profit or loss (“FVTPL”)		10,565,822			8,069,144			6,126,316
Financial assets at fair value through other comprehensive income		29,644,347			27,730,531			18,063,423
Securities at amortized cost		17,889,922			20,320,539			22,932,559
Loans and other financial assets at amortized cost		307,778,061			293,717,693			282,457,578
Investments in joint ventures and associates		1,076,855			806,360			361,766
Investment properties		311,344			280,239			378,196
Premises and equipment		3,278,633			3,364,716			2,450,492
Intangible assets		799,803			844,110			597,520
Assets held for sale		59,899			10,556			17,912
Net defined benefit asset		—			2,582			—
Current tax assets		74,130			47,367			20,730
Deferred tax assets		36,860			39,544			59,641
Derivative assets (designated for hedging)		228,580			121,131			35,503
Other assets		280,411			233,646			197,653
Total assets		380,838,911			361,980,724			340,447,183
LIABILITIES
Financial liabilities at FVTPL		3,817,831			2,958,302			2,282,686
Deposits due to customers		278,588,976			264,685,578			248,690,939
Borrowings		22,768,493			18,998,920			16,202,986
Debentures		29,964,791			30,858,055			28,735,862
Provisions		463,198			443,980			391,313
Net defined benefit liability		186,044			92,470			173,109
Current tax liabilities		129,537			182,690			159,078
Deferred tax liabilities		286,705			134,322			18,156
Derivative liabilities (designated for hedging)		23,039			6,837			51,408
Other financial liabilities		17,941,940			17,706,767			21,442,524
Other liabilities		459,607			420,471			346,078
Total liabilities		354,630,161			336,488,392			318,494,139
EQUITY
Owners’ equity:		22,753,163			21,510,370			21,739,931
Capital stock		3,611,338			3,611,338			3,381,392
Hybrid securities		1,695,821			997,544			3,161,963
Capital surplus		627,496			626,295			285,889
Other equity		(2,297,529	)		(2,249,322	)		(2,213,970	)
Retained earnings		19,116,037			18,524,515			17,124,657
Non-controlling interests		3,455,587			3,981,962			213,113
Total equity		26,208,750			25,492,332			21,953,044
Total liabilities and equity		380,838,911			361,980,724			340,447,183
Number of Consolidated Subsidiaries (excluding holding company)		118			102			65

15

Summary Consolidated Statement of Comprehensive Income

(The Company and its Consolidated Subsidiaries, for the periods indicated)	(unit: millions of Won, except per share amounts)
Classification	2020 3Q			2019 3Q			2019			2018
Operating income		1,847,758			2,369,703			2,799,976			2,759,301
Net interest income		4,428,288			4,416,850			5,893,706			5,650,951
Net fees and commissions income		731,049			840,744			1,102,628			1,069,974
Dividend income		99,140			84,556			107,959			90,552
Net gain or loss on financial instruments at FVTPL (fair value through profit or loss)		531,931			101,608			25,455			214,443
Net gain or loss on financial assets at FVTOCI		18,677			8,036			11,015			2,047
Net gain arising on financial assets at amortized cost		40,319			99,107			102,115			79,532
Impairment losses due to credit loss		(586,720	)		(323,755	)		(374,244	)		(329,574	)
General and administrative expenses		(2,688,620	)		(2,576,277	)		(3,766,077	)		(3,624,033	)
Other net operating income (expenses)		(726,306	)		(281,166	)		(302,581	)		(394,591	)
Non-operating income(expense)		(137,929	)		28,649			(76,927	)		45,571
Net income before income tax expense		1,709,829			2,398,352			2,723,049			2,804,872
Income tax expense		(414,081	)		(592,281	)		(685,453	)		(753,223	)
Net income		1,295,748			1,806,071			2,037,596			2,051,649
Net income attributable to owners		1,140,764			1,665,697			1,872,207			2,033,182
Net income attributable to the non-controlling interests		154,984			140,374			165,389			18,467
Other comprehensive income (loss), net of tax		(29,330	)		142,498			51,782			(92,236	)
Items that will not be reclassified to profit or loss		(49,753	)		(90,468	)		(92,777	)		(115,384	)
Items that may be reclassified to profit or loss		20,423			232,966			144,559			23,148
Total comprehensive income		1,266,418			1,948,569			2,089,378			1,959,413
Comprehensive income attributable to the owners		1,116,291			1,795,631			1,914,393			1,943,885
Comprehensive income attributable to non-controlling interests		150,127			152,938			174,985			15,528
Net income per share:
Basic and diluted loss per share (in Korean Won)		1,532			2,459			2,727			2,796

16

2. Condensed Financial Statements (Separate)

Summary Statement of Financial Position

(The Company, as of the end of the period indicated)	(unit: millions of Won)
Classification	2020 3Q			2019
ASSETS
Cash and cash equivalents		97,695			43,670
Financial assets at fair value through profit or loss		9,434			9,434
Financial assets at fair value through other comprehensive income		150,528			—
Loans and other financial assets at amortized cost		993,777			1,269,203
Investments in subsidiaries		20,873,593			19,873,593
Premises and equipment		8,301			7,383
Intangible assets		5,428			3,310
Deferred tax assets		692			—
Other assets		264			—
Total assets		22,139,712			21,206,593
LIABILITIES
Debentures		1,147,410			947,679
Provisions		718			600
Net defined benefit liability		9,146			3,482
Current tax liabilities		89,437			133,526
Deferred tax liabilities		—			154
Other financial liabilities		9,807			10,745
Other liabilities		1,170			4,142
Total liabilities		1,257,688			1,100,328
EQUITY
Capital stock		3,611,338			3,611,338
Hybrid securities		1,695,821			997,544
Capital surplus		14,874,084			14,874,084
Other equity		(1,868	)		(631	)
Retained Earnings		702,649			623,930
Total equity		20,882,024			20,106,265
Total liabilities and equity		22,139,712			21,206,593

17

Summary Statement of Comprehensive Income

(The Company, for the period indicated)	(unit: millions of Won, except per share amounts)
Classification	2020 3Q			2019 3Q			2019
Operating Income:		618,788			636,606			629,437
Net interest income		(7,751	)		765			40
Interest income		8,998			3,981			7,741
Interest expense		(16,749	)		(3,216	)		(7,701	)
Net fees and commissions loss		(10,730	)		(9,925	)		(15,833	)
Fees and commissions income		—			—			—
Fees and commissions expense		(10,730	)		(9,925	)		(15,833	)
Dividend income		679,085			676,000			676,000
Net gain on financial instruments at FVTPL		—			—			9,434
Impairment losses due to credit loss		(174	)		—			(263	)
General and administrative expenses		(41,642	)		(30,234	)		(39,941	)
Non-operating loss		(220	)		(755	)		(750	)
Net Income before income tax expense		618,568			635,851			628,687
Income tax expense		378			639			(394	)
Net Income		618,946			636,490			628,293
Other comprehensive loss, net of tax		(1,237	)		(761	)		(631	)
Items that will not be reclassified to profit or loss		(1,237	)		(761	)		(631	)
Net gain on valuation of equity securities at FVTOCI		383			—			—
Remeasurement loss related to defined benefit plan		(1,620	)		(761	)		(631	)
Total comprehensive Income		617,709			635,729			627,662
Net Income per share:
Basic and diluted Income per share (In Korean Won)		809			926			900

18

IV. Independent Auditor’s Opinion

1. Independent Auditor’s Opinion

	2020 3Q	2019	2018
Auditor	Samil PricewaterhouseCoopers	Deloitte Anjin LLC		—
Auditor’s Opinion	Note 1)	Note 2)		—

Note 1) In its review report attached to this report, Samil PricewaterhouseCoopers has stated that nothing had come to their attention that caused them to believe that the accompanying consolidated and separate interim financial statements of Woori Financial Group are not presented fairly in all material respects, in accordance with Korean IFRS.

Note 2) In its audit report, Deloitte Anjin LLC has stated that the financial statements are presented fairly, in all material respects, in accordance with Korean IFRS.

2. Compensation to the Independent Auditor

a. Audit Services

Term	Auditor		Description	Fee		Total Time
2020 3Q		Samil PricewaterhouseCoopers	3Q review		KRW 1,135 million		3,865 hours
			1H review				2,505 hours
			1Q review				1,350 hours
2019		Deloitte Anjin LLC	Closing audit (including internal accounting management system)		KRW 752 million		10,849 hours
			Interim audit				7,074 hours
			3Q review				6,095 hours
			1H review				2,591 hours
			1Q review				856 hours

Note 1) Total time includes planning time up until the commencement of the applicable services

b. Other Audit Services

Term	Auditor		Description	Fee
2019		Deloitte Anjin LLC	Auditing services provided in connection with the submission of a holding company establishment report to the Fair Trade Commission		KRW 67 million

19

c. Current Status of Audit Service Agreements with the Independent Auditor Relating to U.S. Listing

Term	Auditor	Description	Fee
2020	Samil PricewaterhouseCoopers	U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting	KRW 2,280 million
2019	Deloitte Anjin LLC	U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting	KRW 1,873 million

d. Non-Audit Services

Term	Date of Execution of Agreement		Description of Service	Service Term		Fees
2020		July 9, 2020	Tax adjustment (including review relating to application of consolidated tax)		July 9, 2020 ~ May 31, 2021		KRW 61million
2019		April 18, 2019	Tax adjustment (including review relating to application of consolidated tax)		April 18, 2019 ~ May 31, 2020		KRW 88 million
		May 14, 2019	Issuance of agreed-upon procedure report relating to asset management company establishment registration submitted to the Financial Supervisory Service		May 14, 2019 ~ May 31, 2020		KRW 18 million

20

V. Corporate Governance and Affiliated Companies

1. About the Board of Directors

a. Composition of the Board of Directors

The board of directors consists of standing directors, outside directors and non-standing directors.

b. Committees under the Board of Directors

We currently have the following committees serving under the board of directors:

(a) Audit Committee

(b) Board Risk Management Committee

(c) Compensation Committee

(d) Committee for Recommending Executive Officer Candidates

(e) Committee for Recommending Group Executive Officer Candidates

(f) Committee for Internal Control Management

(As of September 30, 2020) Name of Committee	Composition	Names of Members
Audit Committee	Three outside directors	(Chairman) Chan-Hyoung Chung (outside director) Sung-Tae Ro (outside director) Dong-Woo Chang (outside director)
Board Risk Management Committee	Three outside directors One non-standing director One standing director	(Chairman) Sang-Yong Park (outside director) Dennis Chan (outside director) Zhiping Tian (outside director) Hong-Tae Kim (non-standing director) Won-Duk Lee (standing director)
Compensation Committee	Six outside directors One non-standing director	(Chairman) Chan-Hyoung Chung (outside director) Sung-Tae Ro (outside director) Sang-Yong Park (outside director) Dennis Chan (outside director) Zhiping Tian (outside director) Dong-Woo Chang (outside director) Hong-Tae Kim (non-standing director)
Committee for Recommending Executive Officer Candidates	Six outside directors	(Chairman) Dong-Woo Chang (outside director) Sung-Tae Ro (outside director) Sang-Yong Park (outside director) Chan-Hyoung Chung (outside director) Dennis Chan (outside director) Zhiping Tian (outside director)
Committee for Recommending Group Executive Officer Candidates	Six outside directors One standing director	(Chairman) Tae-Seung Son (standing director) Sung-Tae Ro (outside director) Sang-Yong Park (outside director) Chan-Hyoung Chung (outside director) Dennis Chan (outside director) Zhiping Tian (outside director) Dong-Woo Chang (outside director)
Committee for Internal Control Management	One outside director One non-standing director One standing director	(Chairman) Sang-Yong Park (outside director) Hong-Tae Kim (non-standing director) Tae-Seung Son (standing director)

21

2. Affiliated Companies (As of September 30, 2020)

22

VI. Shareholder Information

1. Share Distribution

a. Share Information of the Largest Shareholder and Specially Related Parties

As of September 30, 2020

(units: shares, %)

Name

Relation

Type

Shares Held

Notes

Beginning balance

Ending balance

Number

Share

Number

Share

Korea Deposit Insurance Corporation (KDIC)

Largest Shareholder

Common

124,604,797

17.25

124,604,797

17.25

Note 1

)

Total

Common

124,604,797

17.25

124,604,797

17.25

Others

—

—

—

—

Note 1) Refer to ‘b. Changes in the largest shareholder’ for changes in the number and percentage of shares held by the KDIC

b. Changes in the largest shareholder

As of September 30, 2020	(units: shares, %)
Change of Date	Largest Shareholder	Number Held		Share		Notes
January 11, 2019	Korea Deposit Insurance Corporation		124,604,797		18.32	Comprehensive Stock Transfer (Woori Financial Group) Note 1)
September 10, 2019	Korea Deposit Insurance Corporation		124,604,797		17.25	Issuance of new common shares (42,103,377 shares) Note 2)

Note 1) Woori Financial Group was established pursuant to a comprehensive stock transfer of Woori Bank and five other companies, and the KDIC received new shares of Woori Financial Group in accordance with the stock transfer ratio.

transfer ratio Woori Bank : Woori Financial Group = 1: 1.0000000

Note 2) Small scale stock exchange between Woori Financial Group and Woori Card.

23

c. Share Ownership of More Than 5%

As of September 30, 2020	(units: shares, %)
	Name	Shares				Notes
		No. of shares		Percentage of shareholding
Share ownership of more than 5%	Korea Deposit Insurance Corporation		124,604,797		17.25		—
	National Pension Service		71,378,664		9.88		1	)
	Nobis1, Inc. (IMM PE)		40,560,000		5.62		—
Employee Stock Ownership Association			55,046,834		7.62		2	)

Note 1) Shares based on publicly disclosed information on July 3, 2020

Note 2) Total shares of the employee stock ownership association of Woori Financial Group and Woori Bank

2. Stock Price and Stock Market Performance

a. Domestic Stock Market

												(units: Won, shares)
Period		April 2020		May 2020		June 2020		July 2020		August 2020		September 2020
Common Shares	High		8,440		9,130		10,350		9,060		9,240		8,620
	Low		7,270		7,810		8,690		8,410		8,390		8,080
	Average		7,893		8,114		9,405		8,783		8,744		8,432
Monthly Trade Volume	High		4,688,039		7,434,397		4,612,618		2,645,106		3,535,877		1,978,885
	Low		1,974,492		1,395,328		1,258,950		682,717		1,033,160		813,220
	Monthly Total		57,640,374		53,303,073		54,242,951		36,616,493		37,441,383		27,777,816

Note 1) Source: KRX KOSPI Market

Note 2) Share prices are based on closing prices.

24

b. Foreign Stock Market (NYSE)

										(units: US Dollars, Won, ADSs)
Period		April 2020		May 2020		June 2020		July 2020		August 2020		September 2020
ADS	High		21.47		22.08		26.07		23.19		23.50		22.08
	Low		17.31		18.98		21.74		21.32		20.93		20.71
	Average		19.50		19.99		23.30		21.99		22.17		21.57
Won Conversion	High		26,305		27,365		31,737		27,837		27,845		25,910
	Low		21,118		23,305		26,057		25,466		24,887		24,114
	Average		23,895		24,564		28,192		26,360		26,318		25,431
Monthly Trade Volume	High		214,700		164,700		106,900		169,200		58,700		53,800
	Low		34,600		34,600		18,500		19,900		10,900		19,600
	Monthly Total		2,009,400		1,413,000		1,254,900		1,028,500		752,900		619,600

Note 1) Source: standard trading rate (daily and monthly average) (Seoul Money Brokerage, www.smbs.biz)

Note 2) One ADS represents three common shares.

Note 3) Share prices are based on closing prices.

25

VII. Directors and Employee Information

1. Directors and Executives

As of September 30, 2020
Position		Name	Common Shares Owned		Term Commencement Date	Expiration of Term
Chief Executive Officer	Registered	Tae-Seung Son		83,127	January 11, 2019 ~	Note 1)
Deputy President	Registered	Won-Duk Lee		19,500	March 25, 2020 ~	Note 2)
Outside Director	Registered	Sung-Tae Ro		5,000	January 11, 2019 ~	Note 2)
Outside Director	Registered	Sang-Yong Park		1,000	January 11, 2019 ~	Note 2)
Outside Director	Registered	Chan-Hyoung Chung		10,532	January 11, 2019 ~	Note 2)
Outside Director	Registered	Dennis Chan		—	March 25, 2020 ~	Note 3)
Outside Director	Registered	Zhiping Tian		—	January 11, 2019 ~	Note 2)
Outside Director	Registered	Dong-Woo Chang		—	January 11, 2019 ~	Note 2)
Non-standing Director	Registered	Hong-Tae Kim		—	March 25, 2020 ~	Note 3)
Deputy President	Non-Registered	Jeong-Ki Kim		31,385	February 11, 2020 ~	December 31, 2020
Deputy President	Non-Registered	Dong-Su Choi		17,738	January 11, 2019 ~	December 31, 2020
Deputy President	Non-Registered	Kyong-Hoon Park		17,000	January 11, 2019 ~	December 31, 2020
Deputy President	Non-Registered	Myung-Hyuk Shin		5,000	February 11, 2020 ~	December 31, 2020
Deputy President	Non-Registered	Jin-Ho Noh		4,000	February 11, 2020 ~	December 31, 2020
Senior Managing Director	Non-Registered	Kyu-Mok Hwang		14,239	February 11, 2020 ~	December 31, 2020
Senior Managing Director	Non-Registered	Seok-Tae Lee		16,857	February 11, 2020 ~	December 31, 2020
Senior Managing Director	Non-Registered	Seok-Young Chung		20,951	February 11, 2020 ~	January 10, 2021
Managing Director	Non-Registered	Weong-Cheol Hwang		2,000	July 3, 2020 ~	December 31, 2020
Managing Director	Non-Registered	Shin-Kook Kang		3,000	February 11, 2020 ~	December 31, 2021
Managing Director	Non-Registered	Gyu-Soon Hwang		4,000	February 11, 2020 ~	December 31, 2021
Managing Director	Non-Registered	Jong-Il Park		12,619	February 11, 2020 ~	December 31, 2021
Managing Director	Non-Registered	Byoung-Kwon Woo		3,500	February 11, 2020 ~	February 10, 2022
Managing Director	Non-Registered	Sung-Wook Lee		8,000	February 11, 2020 ~	December 31, 2021

Note 1) Date of the 2023 annual general meeting of shareholders

Note 2) Date of the 2021 annual general meeting of shareholders

Note 3) Date of the 2022 annual general meeting of shareholders

Note 4) Term commencement date: date of inauguration for registered officers or directors / date of appointment for non-registered officers or directors

Note 5) Common shares owned are as of the date of submission of this report, and those owned by executives exclude shares owned through the Employee Stock Ownership Association.

26

2. Employee Status

As of September 30, 2020

(units: persons, millions of Won)

Number of Employees

Average Tenure

Total Compensation

Average Compensation Per Person

Note

Regular

Contract

Total

Total

(Short time worker)

Total

(Short time worker)

Total

144

—

32

—

176

16 months (15 years 4 months)

20,509

117

—

Note 1) 51 employees concurrently employed by affiliated companies are excluded

Note 2) Average tenure: term in ( ) includes tenure at affiliated companies

Note 3) Contract employees include non-registered executives

3. Directors’ Compensation

As of September 30, 2020			(units: persons, millions of Won)
Items	Number of Persons		Total Compensation		Average Compensation Per Director		Note
Registered Directors (excludes outside directors and audit committee members)		3		1,095		365		—
Outside Directors (excludes audit committee members)		3		135		45		—
Audit Committee Members		3		120		40		—
Auditor		—		—		—		—

Note 1) Registered directors and audit committee members include uncompensated directors

Note 2) Only the compensation amount paid by Woori Financial Group is included for the three executives concurrently employed by Woori Bank

27

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Woori Financial Group Inc. (Registrant)
Date: November 16, 2020	By:	/s/ Kyong-Hoon Park
	(Signature)
	Name: Kyong-Hoon Park
	Title: Deputy President

28

EX-99.1

Exhibit 99.1

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED

SEPTEMBER 30, 2020 AND 2019

WOORI FINANCIAL GROUP INC.

	Page(s)
Report on Review of Consolidated Interim Financial Statements		1-2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position		4
Consolidated Interim Statements of Comprehensive Income		5-6
Consolidated Interim Statements of Changes in Equity		7
Consolidated Interim Statements of Cash Flows		8-9
Notes to the Consolidated Interim Financial Statements		10-115

Report on Review of Consolidated Interim Financial Statements

English Translation of a Report Originally Issued in Korean

To the Shareholders and the Board of Directors of Woori Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying consolidated interim financial statements of Woori Financial Group Inc. and its subsidiaries (collectively referred to as the “Group”). These financial statements consist of the consolidated interim statement of financial position of the Group as at September 30, 2020 and the related consolidated interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2020, and consolidated interim statements of changes in equity and cash flows for the nine-month period ended September 30, 2020, and a summary of significant accounting policies and other explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to issue a report on these consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying consolidated interim financial statements are not presented fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

- 1 -

Emphasis of Matters

Without qualifying our conclusion, we draw attention to Note 3 of the financial statements, which indicates that the outbreak of COVID-19 in 2020 may have a negative impact on the Group’s financial condition and results of operations.

Other Matters

The consolidated interim financial statements of comprehensive income for the three-month and nine-month periods ended September 30, 2019, and consolidated interim statements of changes in equity and cash flows for the nine-month period ended September 30, 2019, presented herein for comparative purposes, were reviewed by Deloitte Anjin LLC whose report dated November 14, 2019. Based on their review, nothing has come to their attention that causes them to believe the accompanying financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

The consolidated financial statements of the Group for the year ended December 31, 2019, were audited by Deloitte Anjin LLC who expressed an unqualified opinion on those statements, not presented herein, on March 16, 2020. The consolidated statement of financial position as at December 31, 2019, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2019.

/s/ Samil PricewaterhouseCoopers

November 13, 2020

Notice to Readers

This report is effective as of November 13, 2020 the review report date. Certain subsequent events or circumstances may have occurred between the review report date and the time the review report is read. Such events or circumstances could significantly affect the consolidated interim financial statements and may result in modifications to the review report.

- 2 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED

SEPTEMBER 30, 2020 AND 2019

The accompanying consolidated interim financial statements including

all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial

Group Inc.

Tae Seung Sohn

President and Chief Executive Officer

Main Office Address: (Address) 51, Sogong-ro, Jung-gu, Seoul

        (Phone Number)        02-2125-2000

- 3 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2020 (UNAUDITED) AND DECEMBER 31, 2019

	September 30, 2020			December 31, 2019
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 6)		8,814,244			6,392,566
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, 12, 18 and 26)		10,565,822			8,069,144
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, 11, 12, and 18)		29,644,347			27,730,531
Securities at amortized cost (Notes 4, 9, 11, 12 and 18)		17,889,922			20,320,539
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 41)		307,778,061			293,717,693
Investments in joint ventures and associates (Note 13)		1,076,855			806,360
Investment properties (Note 14)		311,344			280,239
Premises and equipment (Notes 15 and 18)		3,278,633			3,364,716
Intangible assets (Note 16)		799,803			844,110
Assets held for distribution (sale) (Note 17)		59,899			10,556
Net defined benefit asset (Note 24)		—			2,582
Current tax assets		74,130			47,367
Deferred tax assets		36,860			39,544
Derivative assets (Designated for hedging) (Notes 4,11,12 and 26)		228,580			121,131
Other assets (Notes 19 and 41)		280,411			233,646
Total assets		380,838,911			361,980,724
LIABILITIES
Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 12, 20 and 26)		3,817,831			2,958,302
Deposits due to customers (Notes 4,11,21 and 41)		278,588,976			264,685,578
Borrowings (Notes 4, 11, 12 and 22)		22,768,493			18,998,920
Debentures (Notes 4, 11 and 22)		29,964,791			30,858,055
Provisions (Notes 23, 40 and 41)		463,198			443,980
Net defined benefit liability (Note 24)		186,044			92,470
Current tax liabilities		129,537			182,690
Deferred tax liabilities		286,705			134,322
Derivative liabilities (Designated for hedging) (Notes 4,11,12 and 26)		23,039			6,837
Other financial liabilities (Notes 4,11,12, 25 and 41)		17,941,940			17,706,767
Other liabilities (Notes 25 and 41)		459,607			420,471
Total liabilities		354,630,161			336,488,392
EQUITY
Owners’ equity (Note 28)
Capital stock		3,611,338			3,611,338
Hybrid securities		1,695,821			997,544
Capital surplus		627,496			626,295
Other equity		(2,297,529	)		(2,249,322	)
Retained earnings		19,116,037			18,524,515
		22,753,163			21,510,370
Non-controlling interests		3,455,587			3,981,962
Total equity		26,208,750			25,492,332
Total liabilities and equity		380,838,911			361,980,724

The accompanying notes are part of this consolidated interim financial statement.

- 4 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

	Periods ended September 30, 2020						Periods ended September 30, 2019
	Three-month			Nine-month			Three-month			Nine-month
	(Korean Won in millions, except per share data)
Interest income		2,272,434			7,188,437			2,691,515			7,969,207
Financial assets at FVTPL		12,908			39,118			13,970			41,875
Financial assets at FVTOCI		103,380			344,380			135,081			344,183
Financial assets at amortized cost		2,156,146			6,804,939			2,542,464			7,583,149
Interest expense		(784,995	)		(2,760,149	)		(1,205,717	)		(3,552,357	)
Net interest income (Notes 11, 30 and 41)		1,487,439			4,428,288			1,485,798			4,416,850
Fees and commissions income		399,010			1,207,003			426,708			1,274,949
Fees and commissions expense		(166,310	)		(475,954	)		(146,054	)		(434,205	)
Net fees and commissions income (Notes 11, 31 and 41)		232,700			731,049			280,654			840,744
Dividend income (Notes 11, 32 and 41)		28,138			99,140			19,973			84,556
Net gain on financial instruments at FVTPL (Notes 11, 33 and 41)		130,342			531,931			21,527			101,608
Net gain on financial assets at FVTOCI (Notes 11 and 34)		7,650			18,677			4,591			8,036
Net gain arising on financial assets at amortized cost (Note 11)		7,657			40,319			4,488			99,107
Impairment losses due to credit loss (Notes 35 and 41)		(140,041	)		(586,720	)		(187,209	)		(323,755	)
General and administrative expenses (Notes 36 and 41)		(899,062	)		(2,688,620	)		(880,491	)		(2,576,277	)
Other net operating expenses (Notes 11, 26, 36 and 41)		(179,663	)		(726,306	)		(90,040	)		(281,166	)
Operating income		675,160			1,847,758			659,291			2,369,703
Share of gain of joint ventures and associates (Note 13)		9,983			33,935			10,103			20,960
Other non-operating income(expense)		(9,163	)		(171,864	)		876			7,689
Non-operating income(expense) (Note 37)		820			(137,929	)		10,979			28,649
Net income before income tax expense		675,980			1,709,829			670,270			2,398,352
Income tax expense (Note 38)		(154,265	)		(414,081	)		(136,162	)		(592,281	)
Net income		521,715			1,295,748			534,108			1,806,071
Net gain(loss) on valuation of equity securities at FVTOCI		69,689			(25,525	)		(3,121	)		(50,498	)
Remeasurement gain(loss) related to defined benefit plan		2,012			(24,228	)		(702	)		(39,970	)
Items that will not be reclassified to profit or loss:		71,701			(49,753	)		(3,823	)		(90,468	)
Net gain(loss) on valuation of debt securities at FVTOCI		(23,328	)		46,135			10,389			64,326
Changes in capital due to equity method		1,987			(2,634	)		(9	)		(427	)
Net gain(loss) on foreign currency translation of foreign operations		(75,989	)		(18,514	)		67,652			170,446
Net gain(loss) on valuation of cash flow hedge		5,466			(4,564	)		(209	)		(1,379	)
Items that may be reclassified to profit or loss:		(91,864	)		20,423			77,823			232,966
Other comprehensive income (loss), net of tax		(20,163	)		(29,330	)		74,000			142,498
Total comprehensive income		501,552			1,266,418			608,108			1,948,569

(Continued)

- 5 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS  ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED) (CONTINUED)

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three-month		Nine-month		Three-month		Nine-month
	(Korean Won in millions, except per share data)
Net income attributable to:		521,715		1,295,748		534,108		1,806,071
Net income attributable to owners		480,200		1,140,764		486,009		1,665,697
Net income attributable to non-controlling interests		41,515		154,984		48,099		140,374
Total comprehensive income attributable to:		501,552		1,266,418		608,108		1,948,569
Comprehensive income attributable to owners		467,871		1,116,291		555,478		1,795,631
Comprehensive income attributable to non-controlling interests		33,681		150,127		52,630		152,938
Earnings per share (Note 39)
Basic and diluted earnings per share (Unit: In Korean Won)		645		1,532		708		2,459

The accompanying notes are part of this consolidated interim financial statement.

- 6 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

	Capital Stock		Hybrid securities			Capital surplus			Other equity			Retained earnings			Owners’ equity in total			Non-controlling interests			Total equity
	(Korean Won in millions)
January 1, 2019		3,381,392		3,161,963			285,889			(2,213,970	)		17,124,657			21,739,931			213,113			21,953,044
Total comprehensive income
Net income		—		—			—			—			1,665,697			1,665,697			140,374			1,806,071
Net gain on valuation of financial instruments at FVTOCI		—		—			—			13,705			—			13,705			123			13,828
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—			—			26,719			(26,719	)		—			—			—
Changes in capital due to equity method		—		—			—			(427	)		—			(427	)		—			(427	)
Gain on foreign currency translation of foreign operations		—		—			—			157,766			—			157,766			12,680			170,446
Loss on valuation of cash flow hedge		—		—			—			(1,379	)		—			(1,379	)		—			(1,379	)
Remeasurement loss related to defined benefit plan		—		—			—			(39,732	)		—			(39,732	)		(238	)		(39,970	)
Transactions with owners
Dividends to common stocks		—		—			—			—			(437,626	)		(437,626	)		(2,014	)		(439,640	)
Acquisition of subsidiaries		229,946		—			335,338			—			—			565,284			29,299			594,583
New stocks issue cost		—		—			(3,034	)		—			—			(3,034	)		—			(3,034	)
Net decrease of treasury stocks		—		—			—			(163,175	)		—			(163,175	)		—			(163,175	)
Gain and losses on sale of treasury share		—		—			—			13,991			—			13,991			—			13,991
Issuance of hybrid securities		—		498,783			—			—			—			498,783			—			498,783
Dividends to hybrid securities		—		—			—			—			(3,571	)		(3,571	)		(118,614	)		(122,185	)
Exchange of non-controlling interests in hybrid securities		—		(3,161,963	)		—			—			—			(3,161,963	)		3,161,963			—
Changes in subsidiaries’ capital		—		—			416			—			—			416			(28	)		388
Appropriation of retained earnings		—		—			—			368			(368	)		—			—			—
September 30, 2019 (Unaudited)		3,611,338		498,783			618,609			(2,206,134	)		18,322,070			20,844,666			3,436,658			24,281,324
January 1, 2020		3,611,338		997,544			626,295			(2,249,322	)		18,524,515			21,510,370			3,981,962			25,492,332
Total comprehensive income																			—
Net income		—		—			—			—			1,140,764			1,140,764			154,984			1,295,748
Net gain(loss) on valuation of financial instruments at FVTOCI		—		—			—			20,647			—			20,647			(37	)		20,610
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—			—			2,665			(2,665	)		—			—			—
Changes in capital due to equity method		—		—			—			(2,634	)		—			(2,634	)		—			(2,634	)
Gain on foreign currency translation of foreign operations		—		—			—			(13,670	)		—			(13,670	)		(4,844	)		(18,514	)
Loss on valuation of cash flow hedge		—		—			—			(4,564	)		—			(4,564	)		—			(4,564	)
Remeasurement loss related to defined benefit plan		—		—			—			(24,252	)		—			(24,252	)		24			(24,228	)
Transactions with owners		—		—			—			—						—			—			—
Dividends to common stocks		—		—			—			—			(505,587	)		(505,587	)		(2,062	)		(507,649	)
Issuance of hybrid securities		—		698,277			—			—			—			698,277			—			698,277
Dividends to hybrid securities		—		—			—			—			(34,640	)		(34,640	)		(118,659	)		(153,299	)
Redemption of hybrid securities		—		—			—			(31,252	)		—			(31,252	)		(555,744	)		(586,996	)
Changes in subsidiaries’ capital		—		—			1,201			4,853			(6,350	)		(296	)		(37	)		(333	)
September 30, 2020 (Unaudited)		3,611,338		1,695,821			627,496			(2,297,529	)		19,116,037			22,753,163			3,455,587			26,208,750

The accompanying notes are part of this consolidated interim financial statement.

- 7 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

	For the nine-month period ended September 30
	2020			2019
	(Korean Won in millions)
Cash flows from operating activities:
Net income		1,295,748			1,806,071
Adjustments to net income:
Income tax expense		414,081			592,281
Interest income		(7,188,437	)		(7,969,207	)
Interest expense		2,760,149			3,552,357
Dividend income		(99,140	)		(84,556	)
		(4,113,347	)		(3,909,125	)
Additions of expenses not involving cash outflows:
Gain on financial assets at FVTOCI		535			174
Impairment loss due to credit loss		586,720			323,755
Loss on other provisions		171,114			20,841
Retirement benefit		129,699			124,058
Depreciation and amortization		398,713			364,127
Net gain on foreign currency translation		357,877			—
Loss on derivatives (designated for hedge)		20,746			1,890
Loss on fair value hedge		91,251			112,352
Loss on valuation of investments in joint ventures and associates		16,974			12,062
Loss on disposal of premises and equipment, intangible assets and other assets		1,736			1,606
Impairment loss on premises and equipment, intangible assets and other assets		8,429			1,422
		1,783,794			962,287
Deductions of income not involving cash inflows:
Gain on valuation of financial instruments at FVTPL		162,056			240,428
Gain on financial assets at FVTOCI		19,212			8,210
Gain on other provisions		353			4,137
Gain on derivatives (designated for hedge)		102,540			169,127
Gain on fair value hedge		4,767			—
Gain on valuation of investments in joint ventures and associates		50,909			33,022
Gain on disposal of premises and equipment, intangible assets and other assets		6,549			1,375
Reversal of impairment loss on premises and equipment, intangible assets and other assets		87			45
Other income		9,351			—
		355,824			456,344
Changes in operating assets and liabilities:
Financial instruments at FVTPL		(428,484	)		321,687
Loans and other financial assets at amortized cost		(14,528,362	)		(17,520,776	)
Other assets		(118,168	)		110,115
Deposits due to customers		13,688,884			13,288,359
Provisions		(169,146	)		(11,616	)
Net defined benefit liability		(68,569	)		(118,470	)
Other financial liabilities		485,840			3,127,528
Other liabilities		40,249			388
		(1,097,756	)		(802,785	)
Interest income received		7,329,781			7,885,061
Interest expense paid		(3,101,429	)		(3,132,990	)
Dividends received		99,269			84,660
Income tax paid		(323,310	)		(386,099	)
Net cash inflow from operating activities		1,516,926			2,050,736

(Continued)

- 8 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND  2019 (UNAUDITED) (CONTINUED)

	For the nine-month period ended September 30
	2020			2019
	(Korean Won in millions)
Cash flows from investing activities:
Cash in-flows from investing activities:
Net cash in-flows from hedging activities		491			—
Disposal of financial instruments at FVTPL		4,969,738			8,242,090
Disposal of financial assets at FVTOCI		15,843,334			9,101,560
Redemption of securities at amortized cost		4,148,133			6,713,880
Disposal of investments in joint ventures and associates		36,162			27,669
Disposal of investment properties		356			73
Disposal of premises and equipment		17,401			7,873
Disposal of intangible assets		611			750
		25,016,226			24,093,895
Cash out-flows from investing activities:
Net cash in-flows of business combination		—			140,217
Acquisition of financial instruments at FVTPL		6,007,849			8,361,213
Acquisition of financial assets at FVTOCI		17,747,437			18,544,686
Acquisition of securities at amortized cost		1,712,770			3,937,980
Acquisition of investments in joint ventures and associates		327,295			26,060
Acquisition of investment properties		2,432			246,329
Acquisition of premises and equipment		90,450			204,969
Acquisition of intangible assets		88,294			88,619
Net increase of other assets		2,671			—
		25,979,198			31,550,073
Net cash outflow from investing activities		(962,972	)		(7,456,178	)
Cash flows from financing activities:
Cash in-flows from financing activities:
Net increase in borrowings		3,661,819			4,721,799
Issuance of debentures		15,295,688			20,854,461
Net increase of other liabilities		2,704			232
Issuance of hybrid securities		698,277			498,783
Retirement of treasury stocks		—			610,369
		19,658,488			26,685,644
Cash out-flows from financing activities:
Net cash out-flows from hedging activities		15,943			—
Redemption of debentures		16,217,533			18,489,990
Redemption of lease liabilities		151,688			153,686
Net decrease of other liabilities		—			237
New stock issue cost		—			19,358
Acquisition of treasury stocks		—			184,164
Dividends paid		505,587			437,626
Redemption of hybrid stocks		598,850			—
Dividends paid to hybrid securities		153,299			109,033
Dividends paid to non-controlling interest		2,062			2,014
Paid-in capital decrease on non-controlling interests		13			28
		17,644,975			19,396,136
Net cash inflow from financing activities		2,013,513			7,289,508
Net increase (decrease) in cash and cash equivalents		2,567,467			1,884,066
Cash and cash equivalents, beginning of the period		6,392,566			6,747,894
Effects of exchange rate changes on cash and cash equivalents		(145,789	)		(243,125	)
Cash and cash equivalents, end of the period (Note 6)		8,814,244			8,388,835

The accompanying notes are part of this consolidated interim financial statement.

- 9 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

1. GENERAL

(1) Summary of the Parent company

Woori Financial Group, Inc. (hereinafter referred to the “Parent company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank (hereinafter referred to the “Bank”), Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Parent company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,611,338 million won at the establishment while the Korea Deposit Insurance Corp. (“KDIC”), the Parent company’s largest shareholder, owns 124,604,797 shares (17.25%) of the Parent company’s stocks issued. The company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock transfer between the Parent company and subsidiaries as of incorporation are as follows (Unit: Number of shares)

Stock transfer company	Total number of issued shares		Exchange ratio per share		Number of Parent company’s stocks
Woori Bank		676,000,000		1.0000000		676,000,000
Woori FIS Co., Ltd.		4,900,000		0.2999708		1,469,857
Woori Finance Research Institute Co., Ltd.		600,000		0.1888165		113,289
Woori Credit Information Co., Ltd.		1,008,000		1.1037292		1,112,559
Woori Fund Service Co., Ltd.		2,000,000		0.4709031		941,806
Woori Private Equity Asset Management Co., Ltd.		6,000,000		0.0877992		526,795

As of August 1, 2019, the Parent company acquired a 73% interest in Tongyang Asset Management Co., Ltd. and changed the name to Woori Asset Management Corp. Also, as of August 1, 2019, the Parent company gained 100% control of ABL Asset Management Co., Ltd., added it as a consolidated subsidiary and changed the name to Woori Global Asset Management Co., Ltd. on December 6, 2019.

The Parent company paid 598,391 million won in cash and 42,103,377 new shares of the Parent company to acquire 100% interest of Woori Card Co., Ltd. from its subsidiary, Woori Bank, on September 10, 2019. On the same date, the Parent company also acquired 59.83% interest of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million won in cash.

As of December 30, 2019, the Parent company acquired a 67.2% interest (excluding treasury stocks, 51% interest including treasury stocks) in Woori Asset Trust Co., Ltd. (formerly Kukje Asset Trust Co., Ltd.) and added it as a consolidated subsidiary at the end of 2019.

- 10 -

(2) Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of September 30, 2020 and December 31, 2019 are as follows:

		Percentage of ownership (%)				Location	Financial statements date           of use
Subsidiaries	Main business	September 30, 2020		December 31, 2019
Held by Woori Financial Group Inc.
Woori Bank	Bank		100.0		100.0	Korea	September 30
Woori Card Co., Ltd.	Finance		100.0		100.0	Korea	September 30
Woori Investment Bank Co., Ltd.	Other credit finance business		59.8		59.8	Korea	September 30
Woori FIS Co., Ltd.	System software development & maintenance		100.0		100.0	Korea	September 30
Woori Finance Research Institute Co., Ltd.	Other service business		100.0		100.0	Korea	September 30
Woori Credit Information Co., Ltd.	Credit information		100.0		100.0	Korea	September 30
Woori Fund Service Co., Ltd.	Finance		100.0		100.0	Korea	September 30
Woori Asset Trust Co., Ltd.	Real estate trust		67.2		67.2	Korea	September 30
Woori Asset Management Corp.	Finance		73.0		73.0	Korea	September 30
Woori Private Equity Asset Management Co., Ltd.	Finance		100.0		100.0	Korea	September 30
Woori Global Asset Management Co., Ltd.	Finance		100.0		100.0	Korea	September 30
Held by Woori Bank
Woori America Bank	Finance		100.0		100.0	America	September 30
Woori Global Markets Asia Limited	Finance		100.0		100.0	Hong Kong	September 30
Woori Bank China Limited	Finance		100.0		100.0	China	September 30
AO Woori Bank	Finance		100.0		100.0	Russia	September 30
PT Bank Woori Saudara Indonesia 1906 Tbk	Finance		79.9		79.9	Indonesia	September 30
Banco Woori Bank do Brasil S.A.	Finance		100.0		100.0	Brazil	September 30
Korea BTL Infrastructure Fund	Finance		99.9		99.9	Korea	September 30
Woori Finance Cambodia PLC. (*1)	Finance		—		100.0	Cambodia	(*5)
Woori Finance Myanmar Co., Ltd.	Finance		100.0		100.0	Myanmar	September 30
Wealth Development Bank	Finance		51.0		51.0	Philippines	September 30
Woori Bank Vietnam Limited	Finance		100.0		100.0	Vietnam	September 30
WB Finance Co., Ltd.	Finance		100.0		100.0	Cambodia	September 30
Woori Bank Europe	Finance		100.0		100.0	Germany	September 30
Kumho Trust First Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Asiana Saigon Inc. (*2)	Asset securitization		0.0		0.0	Korea	September 30
KAMCO Value Recreation First Securitization Specialty Co., Ltd. (*2)	Asset securitization		15.0		15.0	Korea	September 30
Hermes STX Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
BWL First Co., LLC (*2)	Asset securitization		0.0		0.0	Korea	September 30
Deogi Dream Fourth Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Jeonju Iwon Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Wonju I one Inc. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Heitz Third Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woorihansoop 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Electric Cable First Co., Ltd. (*2)	Asset securitization		—		0.0	Korea	(*5)
Woori International First Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori WEBST 1st Co., Ltd. (*2)	Asset securitization		—		0.0	Korea	(*5)
Wibihansoop 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Uri QS 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Uri Display 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Tiger Eyes 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori Serveone 1st Co., Ltd. (*2)	Asset securitization		—		0.0	Korea	(*5)
Uri Display 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori the Colony Unjung Securitization Specialty Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30

- 11 -

		Percentage of ownership (%)				Location	Financial statements date           of use
Subsidiaries	Main business	September 30, 2020		December 31, 2019
Woori Dream 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori Dream 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori H 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori HS 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori Sinnonhyeon 1st Inc. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori K 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Uri S 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Smart Casting Inc. (*2)	Asset securitization		—		0.0	Korea	(*5)
Uri Display 3rd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
TY 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori HJ 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori-HJ 3rd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Uri K 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori KC No.1 Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori Lake 1st., Ltd. (*2)	Asset securitization		—		0.0	Korea	(*5)
Woori QSell 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Quantum Jump the 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Quantum Jump the 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori BK the 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori-HC 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Wivi Synergy 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
ATLANTIC TRANSPORTATION 1 S.A. (*2)	Asset securitization		0.0		0.0	Marshall islands	September 30
Woori Gongdeok First Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
HD Project Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori HW 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori HC 2nd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori Dream 3rd Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori SJS 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Woori Steel 1st Co., Ltd (*2)	Asset securitization		0.0		—	Korea	September 30
Woori-HWC 1st Co., Ltd.	Asset securitization		0.0		—	Korea	September 30
SPG the 1st Co., Ltd.	Asset securitization		0.0		—	Korea	September 30
G5 Pro Short-term Bond Investment Fund 13 (*3)	Securities investment and others		100.0		100.0	Korea	September 30
Heungkuk Global Private Placement Investment Trust No. 1 (*3)	Securities investment and others		98.5		98.5	Korea	September 30
AI Partners UK Water Supply Private Placement Investment Trust No.2 (*3)	Securities investment and others		97.3		97.3	England	September 30
Consus Sakhalin Real Estate Investment Trust 1st (*3)	Securities investment and others		75.0		75.0	Korea	September 30
Multi Asset Global Real Estate Investment Trust No. 5-2 (*3)	Securities investment and others		99.0		99.0	Korea	September 30
INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*3)	Securities investment and others		97.7		—	Korea	September 30
Igis Australia Investment Trust No. 209-1 (*3)	Securities investment and others		99.4		99.4	Korea	September 30
IGIS Global Private Placement Real Estate Fund No. 316-1 (*3)	Securities investment and others		99.3		99.3	Korea	September 30
Woori G Japan Investment Trust No. 1-2 (*3)	Securities investment and others		98.8		—	Korea	September 30
Principal Guaranteed Trust (*4)	Trust		0.0		0.0	Korea	September 30
Principal and Interest Guaranteed Trust (*4)	Trust		0.0		0.0	Korea	September 30
Held by Multi Asset Global Real Estate Investment Trust No. 5-2:
MAGI No.5 LuxCo S.a.r.l. (*3)	Asset securitization		54.6		54.6	Luxembourg	September 30
Held by MAGI No.5 LuxCo S.a.r.l.:
ADP 16 Brussels (*2)	Asset securitization		0.0		0.0	Belgium	September 30

- 12 -

		Percentage of ownership (%)				Location	Financial statements date           of use
Subsidiaries	Main business	September 30, 2020		December 31, 2019
Held by Woori Investment Bank Co., Ltd.:
Dongwoo First Securitization Specialty Co., Ltd. (*2)	Asset securitization		—		5.0	Korea	(*5)
Seari First Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		5.0	Korea	September 30
Seari Second Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		5.0	Korea	September 30
Namjong 1st Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		5.0	Korea	September 30
Bukgeum First Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		5.0	Korea	September 30
Bukgeum Second Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		5.0	Korea	September 30
WS1909 Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		5.0	Korea	September 30
WS2003 Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		—	Korea	September 30
WS2006 Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		—	Korea	September 30
WJ2008 Securitization Specialty Co., Ltd. (*2)	Asset securitization		5.0		—	Korea	September 30
One Punch Korea the 1st Co., Ltd. (*2).	Asset securitization		0.0		0.0	Korea	September 30
One Punch blue the 1st Co., Ltd. (*2)	Asset securitization		0.0		0.0	Korea	September 30
Held by Woori Card Co., Ltd.:
TUTU Finance –WCI Myanmar Co., Ltd.	Finance		100.0		100.0	Myanmar	September 30
Woori Card one of 2017-1 Securitization Specialty Co., Ltd. (*2)	Asset securitization		—		0.5	Korea	(*5)
Woori Card one of 2017-2 Securitization Specialty Co., Ltd. (*2)	Asset securitization		0.5		0.5	Korea	September 30
Woori Card one of 2018-1 Securitization Specialty Co., Ltd. (*2)	Asset securitization		0.5		0.5	Korea	September 30
Woori Card 2019-1 Asset Securitization Specialty Co., Ltd. (*2)	Asset securitization		0.5		0.5	Korea	September 30
Woori Card 2020-1 Asset Securitization Specialty Co., Ltd. (*2)	Asset securitization		0.5		—	Korea	September 30
Held by Woori Private Equity Asset Management Co., Ltd. and Woori Investment Bank Co., Ltd.: (*6)
Japanese Hotel Real Estate Private Equity Fund 1 (*3)	Securities investment and others		45.5		45.5	Korea	September 30
Held by Woori Asset Management Corp.:
Woori China Convertible Bond Hedging feeder Investment Trust H (debt-oriented hybrid) (*3)	Securities investment and others		99.5		98.8	Korea	September 30
Woori China Convertible Bond Master Fund (debt-oriented hybrid) (*3)	Securities investment and others		50.5		98.6	Korea	September 30
Woori Yellow Chip High Yield Strategic Allocation 1 (FOF) (*3)	Securities investment and others		44.5		—	Korea	September 30
Woori Together TDF 2025 (*3)	Securities investment and others		49.7		—	Korea	September 30
Woori Together TDF 2030 (*3)	Securities investment and others		50.0		—	Korea	September 30
Woori Together TDF 2035 (*3)	Securities investment and others		49.9		—	Korea	September 30

- 13 -

		Percentage of ownership (%)				Location	Financial statements date           of use
Subsidiaries	Main business	September 30, 2020		December 31, 2019
Woori Together TDF 2040 (*3)	Securities investment and others		49.9		-	Korea	September 30
Woori Together TDF 2045 (*3)	Securities investment and others		50.0		—	Korea	September 30
Woori Together TDF 2050 (*3)	Securities investment and others		97.9		—	Korea	September 30
Woori All-in-One World Balanced EMP40(FOF) (*3)	Securities investment and others		51.1		—	Korea	September 30
Woori All-in-One World EMP(Equity-FOF) (*3)	Securities investment and others		54.4		—	Korea	September 30
Woori All-in-One World EMP(Bond-FOF) (*3)	Securities investment and others		54.4		—	Korea	September 30
Held by Woori Global Asset Management Co., Ltd.:
WOORIG China Value Equity (C/C(F)) (*3)	Securities investment and others		—		95.1	Korea	(*5)
WooriG Global Multi Asset Income Private Placement Investment Trust [FoF]_Class Cs (*3)	Securities investment and others		22.2		—	Korea	September 30
Held by Woori Bank, Woori Investment Bank Co., Ltd and Woori Private Equity Asset Management Co., Ltd.: (*6)
Woori Innovative Growth Professional Investment Type Private Investment Trust No.1 (*3)	Securities investment and others		60.0		60.0	Korea	September 30
Woori Innovative Growth Professional Investment Type Private Investment Trust No.2 (*3)	Securities investment and others		65.0		—	Korea	September 30
Held by Woori bank and Woori Investment Bank Co., Ltd.: (*6)
Heungkuk Woori Tech Company Private Placement Investment Trust No. 1 (*3)	Securities investment and others		100.0		100.0	Korea	September 30
Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust No.1 (*3)	Securities investment and others		100.0		100.0	Korea	September 30
WooriG NorthAmerica Infra Private Placement Investment Trust No. 1 (*3)	Securities investment and others		100.0		—	Korea	September 30
Held by Woori bank (*6)
WooriG Woori Bank Partners Private Placement Investment Trust No. 1 (*3)	Securities investment and others		92.6		—	Korea	September 30
WooriG Secondary Private Placement Investment Trust No. 1 (*3)	Securities investment and others		97.2		—	Korea	September 30

(*1) The entity was merged with WB Finance Co., Ltd., which is a second-tier subsidiary, during current period.

(*2) The entity is a structured entity for the purpose of asset securitization. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*3) The entity is a structured entity for the purpose of investment in securities. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*4) The entity is a ‘money trust’ under the Financial Investment Services and Capital Markets Act. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*5) Companies are excluded from the consolidation as of September 30, 2020.

(*6) Determined that the Group controls the investees, considering the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns, by two or more subsidiaries’ investment or operation.

- 14 -

(3) The Group has not consolidated the following entities as of September 30, 2020 and December 31, 2019 despite having more than 50% ownership interest:

	As of September 30, 2020
Subsidiaries	Location		Main Business		Percentage of ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)		Korea		Securities Investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*)		Korea		Securities Investment		88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*)		Korea		Securities Investment		97.9
IGIS Global Private Placement Real Estate Fund No. 148-1 (*)		Korea		Securities Investment		75.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*)		Korea		Securities Investment		75.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*)		Korea		Securities Investment		66.7
Hangkang Sewage Treatment Plant Fund (*)		Korea		Securities Investment		55.6
KIM Pocheon-Hwado Highway Infra Private Placement Special Asset Fund (*)		Korea		Securities Investment		52.4
Heungkuk Woori middle priority acquisition Financing 2 types(*)		Korea		Securities Investment		83.0
Kiwoom-Harmony Private Placement Investment Trust No.2 (*)		Korea		Securities Investment		96.0
Kiwoom-Harmony Private Placement Investment Trust No.1 (*)		Korea		Securities Investment		95.7
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*)		Korea		Securities Investment		58.3
Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*)		Korea		Securities Investment		100.0

(*) Since the investee is a private equity investment fund, the Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

	As of December 31, 2019
Subsidiaries	Location		Main Business		Percentage of ownership (%)
Golden Bridge NHN Online Private Equity Investment (*)		Korea		Securities Investment		60.0
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)		Korea		Securities Investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*)		Korea		Securities Investment		88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*)		Korea		Securities Investment		97.9
IGIS Global Private Placement Real Estate Fund No. 148-1 (*)		Korea		Securities Investment		75.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*)		Korea		Securities Investment		75.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*)		Korea		Securities Investment		66.7
Hangkang Sewage Treatment Plant Fund (*)		Korea		Securities Investment		55.6
KIM Pocheon-Hwado Highway Infra Private Placement Special Asset Fund (*)		Korea		Securities Investment		55.2

(*) Since the investee is a private equity investment fund, the Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

- 15 -

(4) The summarized financial information of the major subsidiaries are as follows. The financial information of each subsidiary was prepared on the basis of consolidated financial statements. (Unit: Korean Won in millions):

	As of and for the nine-month period ended September 30, 2020
Subsidiaries	Assets		Liabilities		Operating revenue		Net income (loss) attributable to owners			Comprehensive income (loss) attributable to owners
Woori Bank		365,537,820		342,117,151		17,760,315		1,158,642			1,147,932
Woori Card Co., Ltd.		10,826,338		8,793,286		1,014,678		107,412			96,260
Woori Investment Bank Co., Ltd.		4,196,255		3,778,843		194,798		50,143			50,075
Woori FIS Co., Ltd.		99,242		59,315		192,206		4,093			3,959
Woori Finance Research Institute Co., Ltd.		5,902		2,177		4,751		283			277
Woori Credit Information Co., Ltd.		40,025		9,016		30,152		1,738			1,579
Woori Fund Service Co., Ltd.		17,997		1,892		9,839		1,883			1,883
Woori Asset Trust Co., Ltd.		168,465		47,943		56,790		27,270			27,238
Woori Asset Management Corp.		134,579		23,100		17,764		5,156			4,743
Woori Private Equity Asset Management Co., Ltd.		37,261		2,123		3,548		(91	)		(120	)
Woori Global Asset Management Co., Ltd.		37,942		9,522		7,482		(1,157	)		(1,157	)

	As of and for the year ended December 31, 2019
Subsidiaries	Assets		Liabilities		Operating revenue		Net income (loss) attributable to owners			Comprehensive income (loss) attributable to owners
Woori Bank (*1)		348,181,658		325,526,568		22,240,947		1,505,547			1,531,793
Woori Card Co., Ltd.		10,087,342		8,299,175		1,368,234		114,196			111,782
Woori Investment Bank Co., Ltd.		3,398,960		3,031,622		204,655		53,358			52,095
Woori FIS Co., Ltd.		91,079		55,112		244,923		3,107			3,119
Woori Finance Research Institute Co., Ltd.		5,447		1,999		5,452		160			117
Woori Credit Information Co., Ltd.		37,872		7,948		39,118		1,698			1,389
Woori Fund Service Co., Ltd.		16,852		2,109		11,071		1,735			1,735
Woori Asset Trust Co., Ltd. (*2)		139,839		45,410		—		—			—
Woori Asset Management Corp. (*2)		113,037		6,301		9,204		1,720			2,544
Woori Private Equity Asset Management Co., Ltd.		38,243		2,985		4,152		(2,087	)		(2,124	)
Woori Global Asset Management Co., Ltd. (*2)		32,807		3,230		3,588		(1,360	)		(1,360	)

(*1) The amount is prepared based on the consolidated financial statements of Woori Bank (before reflecting the classification of profit or loss of the discontinued operation).

(*2) The gain or loss information of Woori Asset Trust Co., Ltd., Woori Asset Management Corp. and Woori Global Asset Management Co., Ltd. are prepared on the accumulated gains or losses from the date on which the entities were transferred as subsidiaries, to December 31, 2019.

(5) The financial support that the Group provides to consolidated structured entities is as follows:

• Structured entity for asset securitization

The structured entity which is established for the purpose of securitization of project financing loans, corporate bonds, and other financial assets. The Group is involved with the structured entity through provision of credit facility over asset-backed commercial papers issued by the entity, originating loans directly to the structured entity, or purchasing 100% of the subordinated debts issued by the structured entity.

• Structured entity for the investments in securities

The structured entity is established for the purpose of investments in securities. The Group acquires beneficiary certificates through its contribution of funding to the structured entity by the Group, and it is exposed to the risk that it may not be able to recover its fund depending on the result of investment performance of asset managers of the structured entity.

• Money trust under the Financial Investment Services and Capital Markets Act

The Group provides with financial guarantee of principal and interest or solely principal to some of its trust products. Due to the financial guarantees, the Group may be obliged when the principal and interest or principal of the trust product sold is short of the guaranteed amount depending on the result of investment performance of the trust product.

As of September 30, 2020, the Group provides 2,155,914 million won of credit facilities for the structured entities mentioned above.

- 16 -

(6) The Group has entered into various agreements with structured entities such as asset securitization, structured finance, investment fund, and monetary trust. The characteristics and the nature of risks related to unconsolidated structured entities over which the Group does not have control in accordance with K-IFRS 1110 are as follows:

The interests in unconsolidated structured entities that the Group hold are classified into asset securitization vehicles, structured finance, investment fund and real-estate trust, based on the nature and the purpose of each structured entity.

Unconsolidated structured entities classified as ‘asset securitization vehicles’ are entities that issue asset-backed securities, pay the principal and interest or distributes dividends on asset-backed securities through borrowings or profits from the management, operation and sale of securitized assets. The Group has been purchasing commitments of asset-backed securities or issuing asset-backed securities through credit grants, and the structured entities recognize related interest or fee revenue. There are entities that provide additional funding and conditional debt acquisition commitments before the Group’s financial support, but the Group is still exposed to losses arising from the purchase of financial assets issued by the structured entities when it fails to renew the securities.

Unconsolidated structured entities classified as ‘structured financing’ include real estate project financing investment vehicle, social overhead capital companies, and special purpose companies for ship (aircraft) financing. Each entity is incorporated as a separate company with a limited purpose in order to efficiently pursue business goals. ‘Structured financing’ is a financing method for large-scale risky business, with investments made based on feasibility of the specific business or project, instead of credit of business owner or physical collaterals. The investors receive profits from the operation of the business. The Group recognizes interest revenue, profit or loss from assessment or transactions of financial instruments, or dividend income. With regard to uncertainties involving structured financing, there are entities that provide financial support such as additional fund, guarantees and prioritized credit grants prior to the Group’s intervention, but the Group is exposed to possible losses due to loss of principal from reduction in investment value or irrecoverable loans arising from failure to collect scheduled cash flows and cessation of projects.

Unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds finances money required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit distributed to the investors. The Group recognizes pro rata amount of valuation gain or loss on investment and dividend income as an investor and may be exposed to losses due to reduction in investment value.

‘Real estate trust’ is to be entrusted the underlying property for the purpose of managing, disposing, operating or developing from the consignor who owns the property and distributes the proceeds achieved through the trust to the beneficiary. When the consignee does not fulfill his or her important obligations in the trust contract or it is, in fact, difficult to run the business, the Group may be exposed to the threat of compensating the loss.

The total assets of the unconsolidated structured entity held by the Group, the carrying amount of the items recognized in the consolidated financial statements, the maximum loss exposure, and the losses from the unconsolidated structured entity are as follows. The maximum loss exposure includes the amount of investment recognized in the consolidated financial statements and the amount that is likely to be confirmed in the future when satisfies certain conditions by contracts such as purchase arrangements, credit offerings.

- 17 -

	September 30, 2020
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		7,802,960		66,828,161		31,705,064		77,146
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		5,064,015		3,778,956		3,937,034		59,296
Financial assets at FVTPL		309,076		9,430		3,432,254		—
Financial assets at FVTOCI		1,637,138		49,025		—		—
Financial assets at amortized cost		3,115,978		3,708,441		—		59,296
Investments in joint ventures and associates		—		2,100		504,780		—
Derivative assets		1,823		9,960		—		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		329		1,379		—		1,358
Derivative liabilities		—		—		—		502
Other liabilities (provisions)		329		1,379		—		856
The maximum exposure to risks		5,444,792		4,637,965		4,000,426		102,206
Investment assets		5,064,015		3,778,956		3,937,034		59,296
Credit facilities and others		380,777		859,009		63,392		42,910
Loss recognized on unconsolidated structured entities		—		3,845		3,290		1,838

	December 31, 2019
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		8,230,254		62,879,421		18,265,273		152,257
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		5,128,616		2,982,217		1,411,639		57,928
Financial assets at FVTPL		324,414		28,834		1,109,621		655
Financial assets at FVTOCI		2,006,230		42,305		—		—
Financial assets at amortized cost		2,796,695		2,897,620		120,072		57,273
Investments in joint ventures and associates		—		7,475		181,946		—
Derivative assets		1,277		5,983		—		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		184		1,291		—		2,808
Derivative liabilities		—		15		—		—
Other liabilities (provisions)		184		1,276		—		2,808
The maximum exposure to risks		5,561,394		3,532,539		1,457,398		77,117
Investment assets		5,128,616		2,982,217		1,411,639		57,928
Credit facilities and others		432,778		550,322		45,759		19,189
Loss recognized on unconsolidated structured entities		—		4,660		34,312		5,218

- 18 -

(7) As of September 30, 2020 and December 31, 2019, the share of non-controlling interests on the net income and equity of subsidiaries in which non-controlling interests are significant are as follows: (Unit: Korean Won in millions):

1) Accumulated non-controlling interests at the end of the reporting period

	September 30, 2020		December 31, 2019
Woori Bank (*)		3,105,070		3,660,814
Woori Investment Bank Co., Ltd.		171,470		151,170
Woori Asset Trust Co., Ltd		47,341		40,161
Woori Asset Management Corp		30,979		29,800
PT Bank Woori Saudara Indonesia 1906 Tbk		82,234		83,315
Wealth Development Bank		20,352		18,524

(*) Hybrid securities issued by Woori Bank

2) Net income attributable to non-controlling interests

	For the nine-month period ended September 30
	2020		2019
Woori Bank (*)		118,659		118,614
Woori Investment Bank Co., Ltd.		20,329		14,368
Woori Asset Trust Co., Ltd		7,556		—
Woori Asset Management Corp		1,290		186
PT Bank Woori Saudara Indonesia 1906 Tbk		6,534		7,007
Wealth Development Bank		588		166

(*) Distribution of the hybrid securities issued by Woori Bank

3) Dividends to non-controlling interests

	For the nine-month period ended September 30
	2020		2019
Woori Bank (*)		118,659		118,614
Woori Asset Trust Co., Ltd		365		—
PT Bank Woori Saudara Indonesia 1906 Tbk		1,669		1,981

(*) Distribution of the hybrid securities issued by Woori Bank

- 19 -

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The Group’s condensed consolidated interim financial statements are condensed interim financial statements prepared in applying International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) 1034 Interim Finance Reporting for some of periods in which the annual consolidated financial statements belong. It is necessary to use the Group’s condensed consolidated interim financial statements for the year ended December 31, 2019 for understanding of the accompanying interim financial statements.

(1) Except for the impacts on the newly adopted standards and interpretations explained below, the accounting policies applied in preparing the accompanying condensed consolidated interim financial statements have been applied consistently with the annual consolidated financial statements as of and for the year ended December 31, 2019.

1) Amendments to Korean IFRS 1103 Business Combination – Definition of a Business

To consider the integration of the required activities and assets as a business, the amended definition of a business requires an acquisition to include an input and a substantive process that together significantly contribute to the ability to create outputs and excludes economic benefits from the lower costs. An entity can apply a concentration test, an optional test, where substantially all of the fair value of gross assets acquired is concentrated in a single asset or a group of similar assets, the assets acquired would not represent a business. The amendment does not have a significant impact on the financial statements.

2) Amendments to Korean IFRS 1001 Presentation of Financial Statements and Korean IFRS 1008 Accounting policies, changes in accounting estimates and errors – Definition of Material

The amendments clarify the explanation of the definition of material and amended Korean IFRS 1001 and Korean IFRS 1008 in accordance with the clarified definitions. Materiality is assessed by reference to omission or misstatement of material information as well as effects of immaterial information, and to the nature of the users when determining the information to be disclosed by the Group. The amendment does not have a significant impact on the financial statements.

3) Amendments to Korean IFRS 1116 Lease – Practical expedient for COVID-19-Related Rent Exemption, Concessions, Suspension

As a practical expedient, a lessee may elect not to assess whether a rent concession occurring as a direct consequence of the COVID-19 pandemic is a lease modification. A lessee that makes this election shall account for any change in lease payments resulting from the rent concession the same way it would account for the change applying this Standard if the change were not a lease modification.

With implementation of Korean IFRS 1116 Lease, the Group has changed accounting policy. The Group has adopted Korean IFRS 1116 retrospectively, as permitted under the specific transitional provisions in the standard. There was no cumulative impact on the beginning balance of retained earnings as at January 1, 2020 by retrospectively applying this standard, and the Group did not restate comparatives for the 2019 reporting period. The impact of the adoption of the leasing standard are disclosed in Note 42.

(2) Significant accounting policies and method of computation used in the preparation of the condensed consolidated interim financial statements are consistent with those of the consolidated financial statements for the year ended December 31, 2019, except for the one described below.

• Income tax expense

Income tax expense for the interim period is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate is applied to the pre-tax income.

- 20 -

3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The outbreak of COVID-19 in 2020 has had a significant impact on the global economy including Korea. Financial and economic shocks may have negative impacts on the Group’s financial condition and results of operations in various forms both domestically and internationally, however, the Korean government is providing unprecedented financial and economic relief measures such as extension of maturity of loan receivables. Despite the announcement of these various forms of government support policies, the negative impact of the COVID-19 on the global economy continues.

Significant changes have been made in future forecast information affecting expected credit losses for the period of nine-month period ended September 30, 2020, and major economic factors are expected to remain negative for a considerable period of time after 2020 due to the influence of COVID-19, and uncertainties in recovery or deterioration will persist.

Considering this situation comprehensively, as of the end September 30, 2020, the Group updated the forward-looking information used to estimate expected credit losses in accordance with K-IFRS 1109 Financial Instruments by changing major variables such as GDP to reflect the impact of COVID-19, which has brought about a global economic recession. As a result, Woori Bank has increased credit loss allowance for 162,911 million won as of June 30, 2020 and 27,152 million won for additional update as of September 30, 2020. Credit loss allowances for Woori Card Co., Ltd. and Woori Investment Bank Co., Ltd. have increased 9,614 million won and 3,371 million won, respectively. The Group will continue to evaluate future prospects related to the duration of COVID-19’s economic impact and the government’s policies.

The management shall make judgments, estimates and assumptions that affect the application of accounting policies and application of assets, liabilities and revenues and expenses in preparing condensed consolidated interim financial statements. Therefore, the actual results may differ from these estimates.

The important decisions made by management on the application of accounting policy of the Group and the main sources of estimation uncertainty in preparing condensed consolidated interim financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2019, unless otherwise stated.

- 21 -

4. RISK MANAGEMENT

The Group’s operating activity is exposed to various financial risks and the and the main types of risks are credit risk, market risk, liquidity risk and etc. The risk management department analyze and assess the level of complex risks in order to manage the risks and the risk management standards such as policies, regulations, management systems and decision-making have been established and operated for sound management of the Group.

The risk management organization is operated by risk management committee, risk management responsible, and risk management department. The Board of Directors operates a risk management committee comprised of outside directors for professional risk management. The risk management committee plays a role as the top decision-making body in risk management by establishing basic policies for risk management that are in line with the Group’s management strategy and determining the risk level that the Group is willing to take. The risk management office (CRO) assists the risk management committee and operates a group risk management council comprised of risk management managers of subsidiaries to periodically check and improve the risk burden of external environments and the Group. The risk management department is independent and is in charge of risk management of the Group. It also supports reporting and decision-making of key risk-related issues.

(1) Credit risk

Credit risk represents the possibility of financial losses incurred due to the refusal of the transaction or when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Group’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

1) Credit risk management

The Group considers the probability of failure in performing the obligation of its counterparties, credit exposure to the counterparty, the related default risk and the rate of default loss. The Group uses the credit rating model to assess the possibility of counterparty’s default risk; and when assessing the obligor’s credit grade, the Group utilizes credit grades derived using statistical methods.

In order to manage credit risk limit, the Group establishes the appropriate credit line per obligor, company or industry. It monitors obligor’s credit line, total exposures and loan portfolios when approving the loan.

The Group mitigates credit risk resulting from the obligor’s credit condition by using financial and physical collateral, guarantees, netting agreements and credit derivatives. The Group has adopted the entrapment method to mitigate its credit risk. Credit risk mitigation is reflected in qualifying financial collateral, trade receivables, guarantees, residential and commercial real estate and other collaterals. The Group regularly performs a revaluation of collateral reflecting such credit risk mitigation.

- 22 -

2) Maximum exposure to credit risk

The Group’s maximum exposure to credit risk shows the uncertainties related to the maximum possible variation of financial assets’ net value as a result of changes in the specific risk factors, prior to the consideration of collaterals that are recorded at net book value after allowances and other credit enhancements. However, the maximum exposure is the fair value amount (recorded on the books) for derivatives, maximum contractual obligation for payment guarantees and unused amount of commitments for loan commitment.

The maximum exposure to credit risk as of September 30, 2020 and December 31, 2019 is as follows (Unit: Korean Won in millions):

		September 30, 2020		December 31, 2019
Loans and other financial assets at amortized cost	Korean treasury and government agencies		11,867,476		14,797,040
	Banks		19,294,058		18,597,206
	Corporates		108,718,098		101,041,110
	Consumers		167,898,429		159,282,337
	Sub-total		307,778,061		293,717,693
Financial assets at FVTPL (*)	Deposit		45,704		27,901
	Debt securities		2,650,541		2,337,085
	Loans		350,902		212,473
	Derivative assets		4,027,744		2,921,903
	Sub-total		7,074,891		5,499,362
Financial assets at FVTOCI	Debt securities		28,713,096		26,795,161
Securities at amortized cost	Debt securities		17,889,922		20,320,539
Derivative assets	Derivative assets (Designated for hedging)		228,580		121,131
Off-balance accounts	Guarantees		11,575,359		12,618,917
	Loan commitments		110,958,256		103,651,674
	Sub-total		122,533,615		116,270,591
	Total		484,218,165		462,724,477

(*) Puttable financial instruments are not included

- 23 -

a) Credit risk exposure by geographical areas

The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions):

	September 30, 2020
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		282,308,903		5,319,154		4,063,888		1,686,193		1,268,650		13,131,273		307,778,061
Securities at amortized cost		17,679,048		—		45,044		—		—		165,830		17,889,922
Financial assets at FVTPL		5,258,363		13,288		688,838		226,289		108,918		779,195		7,074,891
Financial assets at FVTOCI		25,547,545		569,304		1,279,228		6		5,908		1,311,105		28,713,096
Derivative assets (Designated for hedging)		18,222		—		200,031		—		—		10,327		228,580
Off-balance accounts		118,391,030		1,545,048		443,905		39,270		42,953		2,071,409		122,533,615
Total		449,203,111		7,446,794		6,720,934		1,951,758		1,426,429		17,469,139		484,218,165

(*) Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries.

	December 31, 2019
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		268,316,454		5,108,144		5,077,666		1,844,374		1,172,209		12,198,846		293,717,693
Securities at amortized cost		20,104,604		—		66,747		—		—		149,188		20,320,539
Financial assets at FVTPL		5,488,229		10,409		—		—		724		—		5,499,362
Financial assets at FVTOCI		24,553,655		332,319		144,601		102,311		2		1,662,273		26,795,161
Derivative assets (Designated for hedging)		121,131		—		—		—		—		—		121,131
Off-balance accounts		112,602,603		1,211,857		387,795		78,850		46,662		1,942,824		116,270,591
Total		431,186,676		6,662,729		5,676,809		2,025,535		1,219,597		15,953,131		462,724,477

(*) Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries.

b) Credit risk exposure by industries

① The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of September 30, 2020 and December 31, 2019 (Unit: Korean Won in millions):

	September 30, 2020
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		55,346,261		37,529,070		35,190,506		3,498,360		163,546,744		12,667,120		307,778,061
Securities at amortized cost		442,598		6,846		9,955,969		312,423		—		7,172,086		17,889,922
Financial assets at FVTPL		241,406		195,152		5,334,500		14,047		19,508		1,270,278		7,074,891
Financial assets at FVTOCI		362,799		120,373		23,371,309		160,895		—		4,697,720		28,713,096
Derivative assets (Designated for hedging)		—		—		228,580		—		—		—		228,580
Off-balance accounts		18,175,514		22,436,926		11,903,032		4,054,556		59,005,695		6,957,892		122,533,615
Total		74,568,578		60,288,367		85,983,896		8,040,281		222,571,947		32,765,096		484,218,165

	December 31, 2019
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		51,233,088		32,983,972		36,141,770		3,291,001		155,120,055		14,947,807		293,717,693
Securities at amortized cost		8,545,838		—		10,979,001		364,591		—		431,109		20,320,539
Financial assets at FVTPL		162,780		128,666		4,084,698		39,193		15,430		1,068,595		5,499,362
Financial assets at FVTOCI		85,609		139,098		18,968,456		10,047		9,241		7,582,710		26,795,161
Derivative assets (Designated for hedging)		—		—		121,131		—		—		—		121,131
Off-balance accounts		17,813,366		23,841,881		10,015,897		4,161,139		53,335,209		7,103,099		116,270,591
Total		77,840,681		57,093,617		80,310,953		7,865,971		208,479,935		31,133,320		462,724,477

- 24 -

② The detailed industries of financial assets and corporate loans that might get affected by the spread of COVID-19 as of September 30, 2020 are as follow and the industries that can be affected may change by future economic conditions. (Unit: Korean Won in millions):

< Woori Bank >

			Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI
Service business	Distribution business	General retail business		968,106		4,232		5,866
		General wholesale business		1,435,984		2,020		—
		Sub-total		2,404,090		6,252		5,866
	Accommodation business			1,766,031		5,640		5,866
	Travel business			90,681		78		—
	Art/sports, leisure service			1,370,626		19,261		—
	Food business			1,018,429		1,747		—
	Air transport business			427,028		499		—
	Education business			358,722		513		—
	Others			1,279,607		3,469		—
	Sub-total			8,715,214		37,459		11,732
Manufacturing	Textile			2,377,090		3,495		7,051
	Metal			1,476,130		8,636		—
	Non-metal			747,522		7,082		—
	Chemical			1,635,414		9,578		—
	Transportation			3,606,539		2,851		—
	Electronics			1,530,994		13,935		—
	Cosmetics			326,429		255		—
	Others			566,645		360		—
	Sub-total			12,266,763		46,192		7,051
	Total			20,981,977		83,651		18,783

			Off-balance accounts		Total
Service business	Distribution business	General retail business		905,707		1,883,911
		General wholesale business		479,786		1,917,790
	Sub-total			1,385,493		3,801,701
	Accommodation business			156,457		1,933,994
	Travel business			22,036		112,795
	Art/sports, leisure service			67,061		1,456,948
	Food business			177,420		1,197,596
	Air transport business			201,163		628,690
	Education business			47,247		406,482
	Others			297,574		1,580,650
	Sub-total			2,354,451		11,118,856
Manufacturing	Textile			1,094,996		3,482,632
	Metal			1,608,380		3,093,146
	Non-metal			323,636		1,078,240
	Chemical			3,480,329		5,125,321
	Transportation			1,980,606		5,589,996
	Electronics			1,797,185		3,342,114
	Cosmetics			76,756		403,440
	Others			1,506,912		2,073,917
	Sub-total			11,868,800		24,188,806
	Total			14,223,251		35,307,662

- 25 -

< Woori Card Co., Ltd. >

	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		2,415		—		—		14,426		16,841
Travel business		1,770		—		—		22,780		24,550
Aviation		604		—		—		4,161		4,765
Cosmetics industry		2,567		—		—		14,712		17,279
Distribution business		8,608		—		—		52,701		61,309
Food industry		30,280		—		—		184,135		214,415
Art/sports, leisure service		6,520		—		—		56,987		63,507
Total		52,764		—		—		349,902		402,666

< Woori Investment Bank Co., Ltd. >

	Loans and other financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVTOCI		Off-balance accounts		Total
Accommodation business		54,400		—		—		—		54,400
Cosmetics industry		4,850		—		—		—		4,850
Distribution business		22,700		—		—		—		22,700
Art/sports, leisure service		30,000		—		—		—		30,000
Total		111,950		—		—		—		111,950

- 26 -

3) Credit risk exposure

a) Financial assets

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL and derivative asset (Designated for hedging) as of September 30, 2020 and December 31, 2019 is as follows (Unit: Korean Won in millions):

	September 30, 2020
	Stage 1				Stage 2				Stage 3		Total		Loss allowance			Total, net
	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)
Loans and other financial assets at amortized cost		270,357,556		20,045,589		8,315,022		9,385,286		1,467,427		309,570,880		(1,792,819	)		307,778,061
Korean treasury and government agencies		11,869,212		1,194		—		—		—		11,870,406		(2,930	)		11,867,476
Banks		18,961,537		264,084		58,134		—		27,966		19,311,721		(17,663	)		19,294,058
Corporates		90,315,511		14,412,421		577,925		3,769,085		807,440		109,882,382		(1,164,284	)		108,718,098
General business		60,320,443		9,791,119		519,660		2,618,776		557,981		73,807,979		(839,714	)		72,968,265
Small- and medium-sized enterprise		25,060,651		4,431,761		58,265		1,071,743		222,950		30,845,370		(282,725	)		30,562,645
Project financing and others		4,934,417		189,541		—		78,566		26,509		5,229,033		(41,845	)		5,187,188
Consumers		149,211,296		5,367,890		7,678,963		5,616,201		632,021		168,506,371		(607,942	)		167,898,429
Securities at amortized cost		17,895,308		—		—		—		—		17,895,308		(5,386	)		17,889,922
Financial assets at FVTOCI (*3)		28,554,423		158,673		—		—		—		28,713,096		(9,705	)		28,713,096
Total		316,807,287		20,204,262		8,315,022		9,385,286		1,467,427		356,179,284		(1,807,910	)		354,381,079

	September 30, 2020
	Collateral value
	Stage1		Stage2		Stage3		Total
Loans and other financial assets at amortized cost		180,721,500		13,769,569		641,123		195,132,192
Korean treasury and government agencies		—		—		—		—
Banks		893,739		—		—		893,739
Corporates		61,267,315		2,765,491		353,006		64,385,812
General business		35,772,108		1,843,734		249,095		37,864,937
Small- and medium-sized enterprise		23,852,298		921,757		100,563		24,874,618
Project financing and others		1,642,909		—		3,348		1,646,257
Consumers		118,560,446		11,004,078		288,117		129,852,641
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—
Total		180,721,500		13,769,569		641,123		195,132,192

(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2) Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*3) Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount.

- 27 -

	December 31, 2019
	Stage 1				Stage 2				Stage 3		Total		Loss allowance			Total, net
	Above appropriate credit rating (*1)		Less than a limited credit rating (*3)		Above appropriate credit rating (*2)		Less than a limited credit rating (*3)
Loans and other financial assets at amortized cost		255,709,205		19,823,451		8,712,860		9,625,024		1,504,172		295,374,712		(1,657,019	)		293,717,693
Korean treasury and government agencies		14,789,933		10,390		—		—		1		14,800,324		(3,284	)		14,797,040
Banks		18,336,664		109,667		150,318		—		21,907		18,618,556		(21,350	)		18,597,206
Corporates		82,286,304		15,201,687		485,469		3,267,311		792,375		102,033,146		(992,036	)		101,041,110
General business		45,769,233		6,191,625		441,089		1,620,761		544,238		54,566,946		(678,237	)		53,888,709
Small- and medium-sized enterprise		32,180,551		8,507,800		44,380		1,586,865		230,901		42,550,497		(287,027	)		42,263,470
Project financing and others		4,336,520		502,262		—		59,685		17,236		4,915,703		(26,772	)		4,888,931
Consumers		140,296,304		4,501,707		8,077,073		6,357,713		689,889		159,922,686		(640,349	)		159,282,337
Securities at amortized cost		20,326,050		—		—		—		—		20,326,050		(5,511	)		20,320,539
Financial assets at FVTOCI (*4)		26,684,601		110,560		—		—		—		26,795,161		(8,569	)		26,795,161
Total		302,719,856		19,934,011		8,712,860		9,625,024		1,504,172		342,495,923		(1,671,099	)		340,833,393

	December 31, 2019
	Collateral value
	Stage1		Stage2		Stage3		Total
Loans and other financial assets at amortized cost		169,438,539		14,451,806		692,139		184,582,484
Korean treasury and government agencies		—		—		—		—
Banks		612,200		2,028		—		614,228
Corporates		55,602,818		2,335,496		394,860		58,333,174
General business		22,291,348		1,023,766		240,771		23,555,885
Small- and medium-sized enterprise		31,517,538		1,311,730		145,061		32,974,329
Project financing and others		1,793,932		—		9,028		1,802,960
Consumers		113,223,521		12,114,282		297,279		125,635,082
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*4)		—		—		—		—
Total		169,438,539		14,451,806		692,139		184,582,484

(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2) Credit grade of corporates are A- ~ BBB, and consumers are grades 1 ~ 6.

(*3) Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*4) Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount.

- 28 -

b) Guarantees and commitments

The credit quality of the guarantees and loan commitments as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
Financial assets	Stage 1				Stage 2				Stage3		Total
	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)
Off-balance accounts:
Guarantees		9,981,695		1,321,610		408		164,714		106,932		11,575,359
Loan Commitments		104,951,671		3,507,772		1,520,432		972,236		6,145		110,958,256
Total		114,933,366		4,829,382		1,520,840		1,136,950		113,077		122,533,615

(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2) Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.

	December 31, 2019
Financial assets	Stage 1				Stage 2				Stage3		Total
	Above appropriate credit rating (*1)		Less than a limited credit rating (*3)		Above appropriate credit rating (*2)		Less than a limited credit rating (*3)
Off-balance accounts
Guarantees		10,952,917		1,333,561		355		223,657		108,427		12,618,917
Loan Commitments		97,854,790		3,479,295		1,388,136		906,033		23,420		103,651,674
Total		108,807,707		4,812,856		1,388,491		1,129,690		131,847		116,270,591

(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2) Credit grade of corporates are A- ~ BBB, and consumers are grades 1 ~ 6.

(*3) Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.

4) Collateral and other credit enhancements

For the nine-month period ended September 30, 2020 and for the year ended December 31, 2019, there have been no significant changes in the value of collateral or other credit enhancements held by the Group and there have been no significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Group. As of September 30, 2020, there are no financial assets that do not recognize the allowance for losses just because financial assets have collateral.

- 29 -

(2) Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates.

1) Market risk management

Market risk management refers to the process of making and implementing decisions for the avoidance, acceptance or mitigation of risks by identifying the underlying source of the risks and measuring its level, and evaluating the appropriateness of the level of accepted market risks.

a) Trading activities

The Group uses the standard method and the internally developed model (the Bank) in measuring market risk for trading positions, and allocates market risk capital through the Risk Management Committee. Risk management departments of the Group and its subsidiaries manage limits in detail including those on risk and loss with their management result regularly reported to the Risk Management Committee.

Woori Bank, a subsidiary of the Group, uses the internal model approved by the Financial Supervisory Service to measure the VaR using the Historical Simulation Method based on a 99% confidence level and a 10-day retention period, and calculates the required capital risk for calculating the BIS ratio. For internal management purposes, limit management is performed on a daily basis measuring VaR based on a 99% confidence and 1 day retention period. In addition, Woori Bank perform a daily verification that compares VaR measurement and profit and loss to verify the suitability of the model.

The minimum, maximum and average VaR of the Group for the nine-month period September 30, 2020 and for the year ended December 31, 2019, and the VaR of the Group as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020			For the nine-month period ended September 30, 2020									December 31, 2019			For the year ended December 31, 2019
Risk factor				Average			Maximum			Minimum						Average			Maximum			Minimum
Interest rate		9,433			7,716			15,065			2,427			5,052			3,406			5,725			1,176
Stock price		5,818			6,213			14,394			2,580			3,730			3,203			5,935			1,146
Foreign currencies		10,826			8,311			10,826			4,613			5,028			5,033			6,469			4,395
Commodity price		—			—			—			—			—			1			32			—
Diversification		(11,617	)		(10,785	)		(18,388	)		(4,050	)		(6,233	)		(5,127	)		(9,229	)		(2,339	)
Total VaR(*)		14,460			11,455			21,897			5,570			7,577			6,516			8,932			4,378

(*) VaR (Value at Risk): Retention period of 1 day, Maximum expected losses under 99% level of confidence.

- 30 -

b) Non-trading activities

For non-trading sectors of the bank, consolidated trusts and subsidiaries of the Bank, the risk is managed and measured by D NII(Change in Net Interest Income) and D EVE(Change in Economic Value of Equity) simulated by NII (Net Interest Income) and EVE (Economic Value of Equity).

NII is primarily an indicator of changes in profit from short-term changes in interest rates and is measured by deducting the interest expenses on the liability from the interest income from the asset. NPV is primarily an indicator of the risk of an economic value perspective resulting from unfavorable changes in interest rates and is measured by subtracting the present value of the liability from the present value of the asset. D NII represents a change in net interest income that may occur over a certain period (e.g., 1 year) due to unfavorable changes in interest rates, and D EVE indicates the economic value changes in equity capital that could be caused by changes in interest rates affecting the present value of asset, liabilities, and others. The interest rate EaR represents the maximum amount of decrease in net interest income that could result from unfavorable changes in interest rate over a certain period (e.g., 1 year), and the interest rate VaR represents the maximum expected loss that indicates how much net asset value can decrease at present or in the future due to unfavorable changes in interest rates.

For assets and liabilities as of September 30, 2020 and December 31, 2019 that include bank, consolidated trusts and subsidiaries of the bank, details of D EVE and DNII calculated based on interest rate risk in banking book (IRRBB) are as follows (Unit: Korean Won in millions):

September 30, 2020		December 31, 2019
DEVE (*1)	DNII (*2)	DEVE (*1)	DNII (*2)
478,303	24,085	490,981	162,023

(*1) D EVE: change in Economic Value of Equity

(*2) D NII: change in Net Interest Income

For the remaining subsidiaries except the bank, consolidated trusts, and consolidated subsidiaries of the bank as of September 30, 2020 and December 31, 2019, the interest rate EaR and VaR calculated based on the BIS Framework are as follows (Unit: Korean Won in millions):

September 30, 2020		December 31, 2019
EaR (*1)	VaR (*2)	EaR (*1)	VaR (*2)
103,381	148,074	92,439	87,872

(*1) EaR (Earning at Risk): Change of maximum expected income and expense

(*2) VaR (Value at Risk): Maximum expected losses

- 31 -

The Group estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost		161,905,506		50,820,533		15,272,183		11,541,924		60,375,038		5,266,725		305,181,909
Financial assets at FVTPL		612,405		12,237		90,658		1,906		176,306		13,266		906,778
Financial assets at FVTOCI		4,904,835		3,376,694		3,408,530		3,661,321		13,331,873		529,438		29,212,691
Securities at amortized cost		1,592,174		1,191,944		1,419,990		934,188		12,549,997		982,600		18,670,893
Total		169,014,920		55,401,408		20,191,361		16,139,339		86,433,214		6,792,029		353,972,271
Liability:
Deposits due to customers		126,528,635		46,198,807		34,533,653		20,967,450		50,048,984		80,954		278,358,483
Borrowings		12,635,260		3,463,786		952,236		1,121,723		3,750,646		481,154		22,404,805
Debentures		2,585,963		2,438,694		2,833,556		2,897,003		17,526,203		3,313,939		31,595,358
Total		141,749,858		52,101,287		38,319,445		24,986,176		71,325,833		3,876,047		332,358,646

	December 31, 2019
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost		153,023,603		49,505,606		12,505,250		10,506,470		57,582,270		5,209,670		288,332,869
Financial assets at FVTPL		150,149		23,648		63,825		34,299		131,206		13,347		416,474
Financial assets at FVTOCI		5,414,586		5,486,113		3,450,669		3,174,893		9,367,756		318,371		27,212,388
Securities at amortized cost		1,844,868		1,696,004		738,383		1,409,549		14,869,227		858,142		21,416,173
Total		160,433,206		56,711,371		16,758,127		15,125,211		81,950,459		6,399,530		337,377,904
Liability:
Deposits due to customers		116,490,812		45,803,202		32,683,132		26,740,013		43,175,232		59,305		264,951,696
Borrowings		12,105,234		1,910,759		1,048,991		706,952		3,264,861		509,359		19,546,156
Debentures		2,378,211		2,894,577		3,330,658		2,466,142		19,211,409		2,537,391		32,818,388
Total		130,974,257		50,608,538		37,062,781		29,913,107		65,651,502		3,106,055		317,316,240

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2) Currency risk

Currency risk arises from the financial instruments denominated in foreign currencies other than the functional currency. Therefore, no currency risk arises from non-monetary items or financial instruments denominated in the functional currency.

Financial instruments in foreign currencies exposed to currency risk as of September 30, 2020 and December 31, 2019 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):

		September 30, 2020
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Cash and cash equivalents		4,821		5,657,077		9,795		108,923		1,841		316,522		151		206,676		430,929		6,720,127
	Loans and other financial assets at amortized cost		23,542		27,626,300		120,535		1,340,418		26,698		4,589,417		2,299		3,148,571		5,962,996		42,667,702
	Financial assets at FVTPL		271		318,649		13,091		145,583		36		6,112		211		288,815		182,802		941,961
	Financial assets at FVTOCI		2,823		3,312,235		—		—		2,236		384,434		37		50,618		549,588		4,296,875
	Securities at amortized cost		256		300,945		—		—		—		—		34		46,314		119,537		466,796
Total			31,713		37,215,206		143,421		1,594,924		30,811		5,296,485		2,732		3,740,994		7,245,852		55,093,461
Liability	Financial liabilities at FVTPL		437		512,361		11,312		125,801		—		—		230		315,621		204,332		1,158,115
	Deposits due to customers		17,001		19,950,174		189,285		2,104,965		26,447		4,546,260		1,192		1,632,322		3,520,178		31,753,899
	Borrowings		6,387		7,495,344		16,682		185,513		—		—		505		692,184		1,083,325		9,456,366
	Debentures		3,968		4,655,997		—		—		—		—		—		—		223,694		4,879,691
	Other financial liabilities		3,264		3,829,962		25,542		284,048		2,426		417,108		209		286,399		226,256		5,043,773
Total			31,057		36,443,838		242,821		2,700,327		28,873		4,963,368		2,136		2,926,526		5,257,785		52,291,844
Off-balance accounts			6,710		7,874,744		26,619		296,014		3,223		554,005		523		715,741		557,493		9,997,997

		December 31, 2019
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Loans and other financial assets at amortized cost (*)		22,916		26,531,794		150,462		1,600,140		31,393		5,203,131		2,258		2,929,312		5,272,352		41,536,729
	Financial assets at FVTPL		165		190,733		5,322		56,602		25		4,155		105		135,827		64,185		451,502
	Financial assets at FVTOCI		2,679		3,102,752		—		—		2,005		332,319		25		33,017		406,753		3,874,841
	Securities at amortized cost		319		369,677		—		—		—		—		40		52,139		97,092		518,908
	Total		26,079		30,194,956		155,784		1,656,742		33,423		5,539,605		2,428		3,150,295		5,840,382		46,381,980
Liability	Financial liabilities at FVTPL		251		291,102		4,415		46,957		—		—		68		87,776		83,790		509,625
	Deposits due to customers		13,208		15,291,671		166,108		1,766,526		27,739		4,597,467		1,727		2,240,884		3,247,164		27,143,712
	Borrowings		6,588		7,627,665		11,061		117,634		16		2,743		515		668,060		499,046		8,915,148
	Debentures		3,999		4,629,944		—		—		—		—		105		136,230		271,790		5,037,964
	Other financial liabilities		3,016		3,492,462		11,240		119,529		3,079		510,281		359		466,240		6,906		4,595,418
	Total		27,062		31,332,844		192,824		2,050,646		30,834		5,110,491		2,774		3,599,190		4,108,696		46,201,867
Off-balance accounts			7,030		8,139,395		34,316		364,946		4,525		749,973		560		726,323		634,870		10,615,507

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(3) Liquidity risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations from its financial liabilities.

1) Liquidity risk management

Liquidity risk management is to prevent potential cash shortages as a result of mismatching the use of funds (assets) and sources of funds (liabilities) or unexpected cash outflows. The financial liabilities that are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives instruments are excluded from those financial liabilities as they reflect expected cash flows for a pre-determined period.

Assets and liabilities are grouped by account under Asset Liability Management (“ALM”) in accordance with the characteristics of the account. The Group manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.), while maintaining the gap ratio at or below the target limit.

2) Maturity analysis of non-derivative financial liabilities

a) Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		45,886		12,228		3,580		648		—		—		62,342
Deposits due to customers		186,622,512		34,070,411		25,374,261		23,607,779		8,882,524		1,877,822		280,435,309
Borrowings		11,074,287		3,889,187		1,397,366		2,018,281		4,249,390		492,888		23,121,399
Debentures		2,585,963		2,438,694		2,833,556		2,897,003		17,526,202		3,313,939		31,595,357
Lease liabilities		45,822		47,107		39,941		49,866		196,181		29,221		408,138
Other financial liabilities		11,932,181		61,888		6,468		4,080		188,189		1,924,658		14,117,464
Total		212,306,651		40,519,515		29,655,172		28,577,657		31,042,486		7,638,528		349,740,009

	December 31, 2019
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		115,156		—		—		—		—		—		115,156
Deposits due to customers		166,474,535		36,697,168		24,634,859		31,233,844		6,590,119		1,877,594		267,508,119
Borrowings		8,596,202		2,948,384		2,162,846		1,880,424		3,682,214		520,936		19,791,006
Debentures		2,378,211		2,894,577		3,330,658		2,466,142		19,211,409		2,537,391		32,818,388
Lease liabilities		46,072		42,549		37,420		35,210		232,985		40,698		434,934
Other financial liabilities		11,242,367		60,981		119,633		10,344		71,561		2,660,640		14,165,526
Total		188,852,543		42,643,659		30,285,416		35,625,964		29,788,288		7,637,259		334,833,129

- 34 -

b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		62,342		—		—		—		—		—		62,342
Deposits due to customers		194,645,377		35,423,215		23,151,344		19,081,177		7,513,265		161,167		279,975,545
Borrowings		11,074,287		3,889,187		1,397,366		2,018,281		4,249,390		492,888		23,121,399
Debentures		2,585,963		2,438,694		2,833,556		2,897,003		17,526,202		3,313,939		31,595,357
Lease liabilities		45,822		47,107		39,941		49,866		196,181		29,221		408,138
Other financial liabilities		11,931,879		61,888		6,468		4,080		188,189		1,924,658		14,117,162
Total		220,345,670		41,860,091		27,428,675		24,050,407		29,673,227		5,921,873		349,279,943

	December 31, 2019
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		115,156		—		—		—		—		—		115,156
Deposits due to customers		175,309,271		38,219,793		23,649,424		24,102,750		5,547,232		150,233		266,978,703
Borrowings		8,596,202		2,948,384		2,162,846		1,880,424		3,682,214		520,936		19,791,006
Debentures		2,378,211		2,894,577		3,330,658		2,466,142		19,211,409		2,537,391		32,818,388
Lease liabilities		46,072		42,549		37,420		35,210		232,985		40,698		434,934
Other financial liabilities		11,242,367		60,981		119,633		10,344		71,561		2,660,640		14,165,526
Total		197,687,279		44,166,284		29,299,981		28,494,870		28,745,401		5,909,898		334,303,713

3) Maturity analysis of derivative financial liabilities

Derivatives held for trading purpose are not managed in accordance with their contractual maturity, since the Group holds such financial instruments with the purpose of disposing or redemption before their maturity. As such, those derivatives are incorporated as “within 3 months” in the table below. Derivatives designated for hedging purpose are estimated by offsetting cash inflows and cash outflows.

The cash flow by the maturity of derivative financial liabilities as of September 30, 2020 and December 31, 2019 is as follows (Unit: Korean Won in millions):

		Remaining maturity
		Within 3 months		4 to 6 months			7 to 9 months			10 to 12 months			1 to 5 years		Over 5 years		Total
September 30, 2020	Cash flow risk hedge		484		921			699			579			16,432		120		19,235
	Trading purpose		3,508,171		716			6			—			—		—		3,508,893
December 31, 2019	Cash flow risk hedge		1,839		(341	)		(298	)		(247	)		6,249		—		7,202
	Trading purpose		2,843,195		—			—			—			—		—		2,843,195

4) Maturity analysis of off-balance accounts (Guarantees and loan commitments)

A financial guarantee represents an irrevocable undertaking that the Group should meet a customer’s obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Group has promised a credit to the customer. Commitments to lend include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for financial guarantees, such as guarantees for debentures issued or loans, unused loan commitments, and other guarantees, however, under the terms of the guarantees and unused loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Guarantees		11,575,359		12,618,917
Loan commitments		110,958,256		103,651,674
Other commitments		4,634,115		3,411,334

- 35 -

(4) Operational risk

The Group defines the operational risk that could cause a negative effect on capital resulting from inadequate internal process, labor work and systematic problem or external factors.

1) Operational risk management

The Group has established and operated an operating risk management system to strengthen external competitiveness, reduce risk capital volume, enhance operational risk management capacity and prevent accidents through compliance with Basel II, and has obtained approval from the Financial Supervisory Service for “Advanced Measurement Approaches”(AMA) based on self-compliance verification and independent third-party inspection results.

2) Operational risk measurement

To quantify required capital for operational risk, the Group applies AMA using internal and external loss data, business environment and internal control factors, and scenario analysis. For the operational risk management for its subsidiaries, the Group adopted the Basic Indicator Approach.

- 36 -

5. OPERATING SEGMENTS

In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker (“CODM”) utilizes the information per type of customers. With the establishment of Woori Financial Group Inc. during the current term, the company reports to the CODM according to the organizational sectors below. This financial information of the segments is regularly reviewed by the CODM to make decisions about resources to be allocated to each segment and evaluate its performance.

(1) Segment by type of organization

The Group’s reporting segments consist of banking, credit card, comprehensive finance and other sectors, and the composition of such reporting segments was divided based on internal report data periodically reviewed by the management to evaluate the performance of the segment and make decisions on the resources to be distributed.

	Operational scope
Banking	Loans/deposits and relevant services for Woori Bank and overseas subsidiaries’ customers
Credit card	Credit card, cash services, card loans and relevant work of Woori Card Co., Ltd.
Investment banking	Securities operation, sale of financial instruments, project financing and other related activities for comprehensive financing of Woori Investment bank Co., Ltd.
Others	Woori Financial Group Inc., Woori FIS Co., Ltd., Woori Finance Research Institute, Woori Credit Information Co., Ltd., Woori Fund Services Inc., Woori Asset Trust Co., Ltd., Woori Asset Management Corp., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd.

(2) The details of income (expense) by each segment are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Banking			Credit card			Investment banking			Others (*1)			Sub-total			Adjustments (*2)			Total
Net Interest income(expense)		3,407,584			420,518			55,990			(2,099	)		3,881,993			546,295			4,428,288
Non-interest income(expense)		1,096,317			8,527			29,062			959,560			2,093,466			(1,398,656	)		694,810
Impairment losses due to credit loss		(413,446	)		(139,026	)		(2,302	)		(1,877	)		(556,651	)		(30,069	)		(586,720	)
General and administrative expense		(2,425,439	)		(145,997	)		(25,928	)		(284,823	)		(2,882,187	)		193,567			(2,688,620	)
Net operating income(expense)		1,665,016			144,022			56,822			670,761			2,536,621			(688,863	)		1,847,758
Non-operating income(expense)		(127,036	)		(3,614	)		(455	)		(105	)		(131,210	)		(6,719	)		(137,929	)
Net income(expense) before tax		1,537,980			140,408			56,367			670,656			2,405,411			(695,582	)		1,709,829
Tax income(expense)		(360,240	)		(32,996	)		(6,224	)		(12,535	)		(411,995	)		(2,086	)		(414,081	)
Net income(loss)		1,177,740			107,412			50,143			658,121			1,993,416			(697,668	)		1,295,748

(*1) Other segments include gains and losses from Woori Financial Group Inc., Woori FIS Co., Ltd., Woori Finance Research Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Inc., Woori Asset Trust Co., Ltd., Woori Asset Management Corp., Woori Private Equity Asset Management Co., Ltd. and Woori Global Asset Management Co., Ltd.

(*2) Adjustments were made for the presentation of profit or loss in accordance with the Accounting Standards from the reporting segments in accordance with the Managerial Accounting Standards.

- 37 -

	For the nine-month period ended September 30, 2019
	Banking			Credit card			Investment banking			Others (*1)			Sub-total			Adjustments (*2)			Total
Net Interest income(expense)		3,450,061			410,973			37,447			2,374			3,900,855			515,995			4,416,850
Non-interest income(expense)		1,223,037			25,621			23,681			880,176			2,152,515			(1,299,630	)		852,885
Impairment losses due to credit loss		(54,055	)		(191,496	)		(460	)		(17	)		(246,028	)		(77,727	)		(323,755	)
General and administrative expense		(2,374,062	)		(136,439	)		(19,322	)		(242,631	)		(2,772,454	)		196,177			(2,576,277	)
Net operating income(expense)		2,244,981			108,659			41,346			639,902			3,034,888			(665,185	)		2,369,703
Non-operating income(expense)		48,118			15,373			(1,405	)		(1,691	)		60,395			(31,746	)		28,649
Net income(expense) before tax		2,293,099			124,032			39,941			638,211			3,095,283			(696,931	)		2,398,352
Tax income(expense)		(561,036	)		(29,201	)		(4,165	)		1,982			(592,420	)		139			(592,281	)
Net income(loss)		1,732,063			94,831			35,776			640,193			2,502,863			(696,792	)		1,806,071

(*1) Other segments include gains and losses from Woori Financial Group Inc., Woori FIS Co., Ltd., Woori Finance Research Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Inc., Woori Asset Management Corp., Woori Private Equity Asset Management Co., Ltd. and Woori Global Asset Management Co., Ltd.

(*2) Adjustments were made for the presentation of profit or loss in accordance with the Accounting Standards from the reporting segments in accordance with the Managerial Accounting Standards

(3) Operating profit or loss from external customers for the nine-month period ended September 30, 2020 and 2019 are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020		For the nine-month period ended September 30, 2019
Domestic		1,714,237		2,130,716
Foreign		133,521		238,987
Total		1,847,758		2,369,703

(4) Major non-current assets as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020 (*)		December 31, 2019 (*)
Domestic		5,082,530		4,908,140
Foreign		384,105		387,284
Total		5,466,635		5,295,424

(*) Major non-current assets included joint ventures and related business investments, investment properties, property, plant and equipment, and intangible assets.

(5) Information about major customers

The Group does not have any single customer that generates 10% or more of the Group’s total revenue for the nine-month period ended September 30, 2020 and 2019.

- 38 -

6. STATEMENTS OF CASH FLOWS

(1) Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Cash		1,542,610		1,957,997
Foreign currencies		569,430		625,999
Demand deposits		6,267,645		3,684,044
Fixed deposits		434,559		124,526
Total		8,814,244		6,392,566

(2) Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020			2019
Changes in other comprehensive income related to valuation of financial assets at FVTOCI		20,610			13,828
Changes in other comprehensive income related to valuation of equity method investments		(2,634	)		(427	)
Changes in other comprehensive income related to valuation profit or loss on cash flow hedge		(4,564	)		(1,379	)
Changes in financial assets measure at FVTOCI due to debt-for-equity swap		3,575			95,137
Changes in the investment assets of associates due to the replacement of the account		50,411			650
Changes in financial assets at FVTPL and assets held-for-sale		(2,385	)		—
Transfer of investment properties and premises and equipment		29,580			—
Transfer from property, plant and equipment to assets held for sale		—			95
Changes in account payables related to intangible assets		(11,651	)		35,038
Redemption of debentures		116,475			—
Changes in right-of-use assets and lease liabilities		165,987			630,237
Changes in accrued dividends of hybrid securities		—			13,154

- 39 -

7. FINANCIAL ASSETS AT FVTPL

(1) Details of financial assets at FVTPL as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Financial assets at fair value through profit or loss measured at fair value		10,565,822		8,069,144

(2) Financial assets at fair value through profit or loss measured at fair value are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Deposits:
Gold banking asset		45,704		27,901
Securities:
Debt securities
Korean treasury and government agencies		1,139,556		872,954
Financial institutions		718,948		600,303
Corporates		719,977		762,265
Others		72,060		101,563
Equity securities		585,301		688,350
Capital contributions		641,853		515,199
Beneficiary certificates		2,263,777		1,366,233
Sub-total		6,141,472		4,906,867
Loans		350,902		212,473
Derivatives assets		4,027,744		2,921,903
Total		10,565,822		8,069,144

The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of September 30, 2020 and December 31, 2019.

8. FINANCIAL ASSETS AT FVTOCI

(1) Details of financial assets at FVTOCI as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Debt securities:
Korean treasury and government agencies		2,147,410		1,152,711
Financial institutions		18,344,904		17,769,924
Corporates		3,853,610		3,917,004
Bond denominated in foreign currencies		4,296,821		3,874,785
Securities loaned		70,351		80,737
Sub-total		28,713,096		26,795,161
Equity securities		931,251		935,370
Total		29,644,347		27,730,531

- 40 -

(2) Details of equity securities designated as financial assets at FVTOCI as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

Purpose of acquisition	September 30, 2020		December 31, 2019		Remarks
Investment for strategic business partnership purpose		653,114		678,846
Debt-equity swap		278,095		256,480
Others		42		44		Cooperative insurance, etc.
Total		931,251		935,370

(3) Changes in the loss allowance and gross carrying amount of financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

1) Allowance for credit losses

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(8,569	)		—		—		(8,569	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision of loss allowance		(1,425	)		—		—		(1,425	)
Disposal		504			—		—		504
Others (*)		(214	)		—		—		(214	)
Ending balance		(9,704	)		—		—		(9,704	)

(*) Others consist of foreign currencies translation, etc.

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		(5,939	)		(238	)		—		(6,177	)
Transfer to 12-month expected credit losses		—			—			—		—
Transfer to lifetime expected credit losses		62			(62	)		—		—
Transfer to credit-impaired financial assets		—			—			—		—
Net provision (reversal) of loss allowance		(3,679	)		235			—		(3,444	)
Disposal		212			—			—		212
Others (*)		111			65			—		176
Ending balance		(9,233	)		—			—		(9,233	)

(*) Others consist of foreign currencies translation, etc.

- 41 -

2) Gross carrying amount

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		26,795,161			—		—		26,795,161
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		17,717,064			—		—		17,717,064
Disposal/Redemption		(15,833,741	)		—		—		(15,833,741	)
Gain (loss) on valuation		70,225			—		—		70,225
Amortization based on effective interest method		(9,446	)		—		—		(9,446	)
Others (*)		(26,167	)		—		—		(26,167	)
Ending balance		28,713,096			—		—		28,713,096

(*) Changes due to foreign currencies translation, etc.

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		17,087,096			25,153			—		17,112,249
Transfer to 12-month expected credit losses		10,043			(10,043	)		—		—
Transfer to lifetime expected credit losses		(5,116	)		5,116			—		—
Transfer to credit-impaired financial assets		—			—			—		—
Acquisition		18,418,213			—			—		18,418,213
Disposal/Redemption		(9,301,713	)		(15,000	)		—		(9,316,713	)
Gain (loss) on valuation		76,755			—			—		76,755
Amortization based on effective interest method		17,645			—			—		17,645
Business combination		24,986			—			—		24,986
Others (*)		220,301			(5,226	)		—		215,075
Ending balance		26,548,210			—			—		26,548,210

(*) Changes due to foreign currencies translation, etc.

(4) During the nine-month period ended September 30, 2020 and 2019, the Group sold its equity securities., designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 2,844 million won and 28,722 million won, respectively and cumulative losses at disposal dates were 3,667 million won and 39,079 million won, respectively.

9. SECURITIES AT AMORTIZED COST

(1) Details of securities at amortized cost as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Korean treasury and government agencies		6,890,843			8,044,040
Financial institutions		5,644,175			6,694,614
Corporates		4,893,494			5,068,489
Bond denominated in foreign currencies		466,796			518,907
Allowance for credit losses		(5,386	)		(5,511	)
Total		17,889,922			20,320,539

- 42 -

(2) Changes in the loss allowance and gross carrying amount of securities at amortized cost are as follows (Unit: Korean Won in millions):

1) Loss allowance

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(5,511	)		—		—		(5,511	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of loss allowance		122			—		—		122
Others (*)		3			—		—		3
Ending balance		(5,386	)		—		—		(5,386	)

(*) Changes due to foreign currencies translation, etc.

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(6,925	)		—		—		(6,925	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of loss allowance		920			—		—		920
Others (*)		(5	)		—		—		(5	)
Ending balance		(6,010	)		—		—		(6,010	)

(*) Changes due to foreign currencies translation, etc.

2) Gross carrying amount

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		20,326,050			—		—		20,326,050
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		1,712,770			—		—		1,712,770
Disposal / Redemption		(4,148,133	)		—		—		(4,148,133	)
Amortization based on effective interest method		407			—		—		407
Others (*)		4,214			—		—		4,214
Ending balance		17,895,308			—		—		17,895,308

(*) Changes due to foreign currencies translation, etc.

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		22,939,484			—		—		22,939,484
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		3,937,980			—		—		3,937,980
Disposal / Redemption		(6,713,880	)		—		—		(6,713,880	)
Amortization based on effective interest method		(37	)		—		—		(37	)
Others (*)		20,975			—		—		20,975
Ending balance		20,184,522			—		—		20,184,522

(*) Changes due to foreign currencies translation, etc.

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10. LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

(1) Details of loans and other financial assets at amortized cost as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Due from banks		13,246,055		14,492,223
Loans		284,353,563		271,032,244
Other financial assets		10,178,443		8,193,226
Total		307,778,061		293,717,693

(2) Details of due from banks are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Due from banks in local currency:
Due from The Bank of Korea (“BOK”)		9,563,448			11,028,850
Due from depository banks		90,358			82,509
Due from non-depository institutions		191			378
Due from the Korea Exchange		110			50,113
Others		29,215			43,253
Loss allowance		(2,257	)		(2,865	)
Sub-total		9,681,065			11,202,238
Due from banks in foreign currencies:		—
Due from banks on demand		1,692,799			1,122,521
Due from banks on time		660,782			1,296,842
Others		1,214,791			872,617
Loss allowance		(3,382	)		(1,995	)
Sub-total		3,564,990			3,289,985
Total		13,246,055			14,492,223

(3) Details of restricted due from banks are as follows (Unit: Korean Won in millions):

	Counterparty	September 30, 2020		Reason of restriction
Due from banks in local currency:
Due from BOK	The BOK		9,563,448	Reserve deposits under the BOK Act
Due from KSFC	KB Securities Co. Ltd.		110	Futures trading margin
Others	The Korea Exchange and others		27,535	Central counterparty KRW margin and others
Sub-total			9,591,093
Due from banks in foreign currencies:
Due from banks on demand	The BOK and others		1,684,968	Reserve deposits under the BOK Act and others
Foreign currency deposits on time	National Bank Cambodia		59	Reserve deposits and others
Others	Korea Investment & Securities and others		1,214,791	Reserve deposits and others
Sub-total			2,899,818
Total			12,490,911

- 44 -

	Counterparty	December 31, 2019		Reason of restriction
Due from banks in local currency:
Due from BOK	The BOK		11,028,850	Reserve deposits under the BOK Act
Due from KSFC	Korea Securities Finance Corp. and others		50,113	Customer’s deposit reserve
Others	The Korea Exchange and others		41,645	Central counterparty KRW margin and others
Sub-total			11,120,608
Due from banks in foreign currencies:
Due from banks on demand	The BOK and others		1,103,917	Reserve deposits under the BOK Act and others
Foreign currency deposits on time	National Bank Cambodia		58	Reserve deposits and others
Others	Korea Investment & Securities and others		872,603	Overseas futures and options trade deposits and others
Sub-total			1,976,578
Total			13,097,186

(4) Changes in the loss allowance and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions):

1) Allowance for credit losses

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(4,860	)		—		—		(4,860	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision for allowance for credit loss		(888	)		—		—		(888	)
Others (*)		109			—		—		109
Ending balance		(5,639	)		—		—		(5,639	)

(*) Changes due to foreign currencies translation, etc.

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(5,387	)		—		—		(5,387	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Reversal for allowance for credit loss		786			—		—		786
Others (*)		330			—		—		330
Ending balance		(4,271	)		—		—		(4,271	)

(*) Changes due to foreign currencies translation, etc.

- 45 -

2) Gross carrying amount

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		14,497,083			—		—		14,497,083
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net decrease		(1,272,308	)		—		—		(1,272,308	)
Others (*)		26,919			—		—		26,919
Ending balance		13,251,694			—		—		13,251,694

(*) Changes due to foreign currencies translation, etc.

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		14,156,399			—		—		14,156,399
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net decrease		(4,528,451	)		—		—		(4,528,451	)
Business combination		35,901			—		—		35,901
Others (*)		21,714			—		—		21,714
Ending balance		9,685,563			—		—		9,685,563

(*) Changes due to foreign currencies translation, etc.

(5) Details of loans are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Loans in local currency		236,521,465			221,484,049
Loans in foreign currencies		20,919,221			18,534,270
Domestic banker’s usance		2,646,829			2,899,651
Credit card accounts		8,321,224			8,398,605
Bills bought in foreign currencies		6,590,727			4,772,093
Bills bought in local currency		112,172			61,362
Factoring receivables		33,351			20,905
Advances for customers on guarantees		14,580			12,616
Private placement bonds		279,574			307,339
Securitized loans		2,174,507			2,250,042
Call loans		2,417,983			3,290,167
Bonds purchased under resale agreements		3,939,909			8,981,752
Others		1,436,685			980,448
Loan origination costs and fees		657,913			620,791
Discounted present value		(5,618	)		(6,826	)
Allowance for credit losses		(1,706,959	)		(1,575,020	)
Total		284,353,563			271,032,244

- 46 -

(6) Changes in the loss allowance of loans are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(85,148	)		(77,962	)		(125,588	)		(324,258	)		(297,718	)		(390,045	)
Transfer to 12-month expected credit losses		(20,419	)		19,749			670			(32,413	)		24,104			8,309
Transfer to lifetime expected credit losses		8,531			(10,276	)		1,745			16,401			(40,792	)		24,391
Transfer to credit-impaired financial assets		5,022			8,224			(13,246	)		2,539			11,605			(14,144	)
Net reversal (provision) of loss allowance		1,277			(7,969	)		(85,126	)		(75,525	)		(90,303	)		(172,839	)
Recovery		—			—			(52,491	)		—			—			(52,146	)
Charge-off		—			—			140,741			—			—			155,732
Disposal		61			2			976			—			13			33,645
Interest income from impaired loans		—			—			7,016			—			—			11,271
Others		461			58			471			782			(85	)		23,261
Ending balance		(90,215	)		(68,174	)		(124,832	)		(412,474	)		(393,176	)		(372,565	)

	For the nine-month period ended September 30, 2020
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(74,726	)		(71,533	)		(128,042	)		(484,132	)		(447,213	)		(643,675	)
Transfer to 12-month expected credit losses		(14,400	)		14,262			138			(67,232	)		58,115			9,117
Transfer to lifetime expected credit losses		6,467			(6,839	)		372			31,399			(57,907	)		26,508
Transfer to credit-impaired financial assets		50,628			64,597			(115,225	)		58,189			84,426			(142,615	)
Net reversal (provision) of loss allowance		(45,746	)		(62,535	)		(28,508	)		(119,994	)		(160,807	)		(286,473	)
Recovery		—			—			(48,385	)		—			—			(153,022	)
Charge-off		—			—			190,299			—			—			486,772
Disposal		—			—			23,653			61			15			58,274
Interest income from impaired loans		—			—			—			—			—			18,287
Others		—			—			—			1,243			(27	)		23,732
Ending balance		(77,777	)		(62,048	)		(105,698	)		(580,466	)		(523,398	)		(603,095	)

	For the nine-month period ended September 30, 2019
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(114,509	)		(48,368	)		(129,906	)		(348,311	)		(349,619	)		(527,673	)
Transfer to 12-month expected credit losses		(10,055	)		9,417			638			(54,361	)		45,286			9,075
Transfer to lifetime expected credit losses		5,862			(7,628	)		1,766			13,477			(23,673	)		10,196
Transfer to credit-impaired financial assets		1,387			3,992			(5,379	)		2,764			15,238			(18,002	)
Net reversal (provision) of loss allowance		(4,808	)		(7,576	)		(121,502	)		27,628			8,759			(40,500	)
Recovery		—			—			(45,215	)		—			—			(49,284	)
Charge-off		3,675			4,799			158,749			154			8			145,747
Disposal		—			—			2,009			—			—			33,044
Interest income from impaired loans		—			—			7,200			—			—			13,767
Others		(425	)		(28	)		(498	)		(18,132	)		(250	)		(484	)
Ending balance		(118,873	)		(45,392	)		(132,138	)		(376,781	)		(304,251	)		(424,114	)

	For the nine-month period ended September 30, 2019
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(64,787	)		(78,131	)		(116,772	)		(527,607	)		(476,118	)		(774,351	)
Transfer to 12-month expected credit losses		(15,975	)		15,826			149			(80,391	)		70,529			9,862
Transfer to lifetime expected credit losses		6,455			(6,738	)		283			25,794			(38,039	)		12,245
Transfer to credit-impaired financial assets		787			1,659			(2,446	)		4,938			20,889			(25,827	)
Net reversal (provision) of loss allowance		(48,598	)		(80,671	)		(46,282	)		(25,778	)		(79,488	)		(208,284	)
Recovery		—			—			(44,274	)		—			—			(138,773	)
Charge-off		52,135			77,305			74,305			55,964			82,112			378,801
Disposal		—			—			—			—			—			35,053
Interest income from impaired loans		—			—			—			—			—			20,967
Others		(4	)		—			—			(18,561	)		(278	)		(982	)
Ending balance		(69,987	)		(70,750	)		(135,037	)		(565,641	)		(420,393	)		(691,289	)

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(7) Changes in the gross carrying amount of loans are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		111,253,283			12,448,807			417,674			134,443,979			4,910,598			740,257
Transfer to 12-month expected credit losses		4,555,200			(4,545,485	)		(9,715	)		1,157,712			(1,136,783	)		(20,929	)
Transfer to lifetime expected credit losses		(5,135,772	)		5,161,330			(25,558	)		(2,825,991	)		2,839,992			(14,001	)
Transfer to credit-impaired financial assets		(82,417	)		(105,893	)		188,310			(251,852	)		(93,720	)		345,572
Charge-off		—			—			(140,741	)		—			—			(155,732	)
Disposal		(5,635,127	)		(4,269	)		(38,403	)		—			(398	)		(104,818	)
Net increase (decrease)		14,224,482			(1,688,347	)		15,597			8,122,039			(956,679	)		(107,737	)
Ending balance		119,179,649			11,266,143			407,164			140,645,887			5,563,010			682,612

	For the nine-month period ended September 30, 2020
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		7,278,467			885,832			228,367			252,975,729			18,245,237			1,386,298
Transfer to 12-month expected credit losses		258,784			(258,584	)		(200	)		5,971,696			(5,940,852	)		(30,844	)
Transfer to lifetime expected credit losses		(292,625	)		293,064			(439	)		(8,254,388	)		8,294,386			(39,998	)
Transfer to credit-impaired financial assets		(80,228	)		(77,346	)		157,574			(414,497	)		(276,959	)		691,456
Charge-off		—			—			(190,299	)		—			—			(486,772	)
Disposal		—			—			(43,781	)		(5,635,127	)		(4,667	)		(187,002	)
Net increase (decrease)		169,470			(45,545	)		33,546			22,515,991			(2,690,571	)		(58,594	)
Ending balance		7,333,868			797,421			184,768			267,159,404			17,626,574			1,274,544

	For the nine-month period ended September 30, 2019
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		110,619,242			6,028,009			391,494			131,453,727			5,031,258			1,020,658
Transfer to 12-month expected credit losses		2,019,769			(2,010,087	)		(9,682	)		1,720,159			(1,690,032	)		(30,127	)
Transfer to lifetime expected credit losses		(3,029,925	)		3,049,741			(19,816	)		(2,190,694	)		2,213,546			(22,852	)
Transfer to credit-impaired financial assets		(128,679	)		(101,712	)		230,391			(210,537	)		(137,790	)		348,327
Charge-off		(3,675	)		(4,799	)		(158,749	)		(154	)		(8	)		(145,747	)
Disposal		—			(29	)		(51,089	)		—			—			(126,722	)
Net increase (decrease)		8,059,606			(860,967	)		33,922			9,730,188			(294,018	)		(149,932	)
Business combination		100			—			—			851			—			—
Ending balance		117,536,438			6,100,156			416,471			140,503,540			5,122,956			893,605

	For the nine-month period ended September 30, 2019
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		6,861,844			982,772			208,989			248,934,813			12,042,039			1,621,141
Transfer to 12-month expected credit losses		277,200			(277,027	)		(173	)		4,017,128			(3,977,146	)		(39,982	)
Transfer to lifetime expected credit losses		(321,235	)		321,594			(359	)		(5,541,854	)		5,584,881			(43,027	)
Transfer to credit-impaired financial assets		(34,326	)		(17,992	)		52,318			(373,542	)		(257,494	)		631,036
Charge-off		(52,135	)		(77,305	)		(74,305	)		(55,964	)		(82,112	)		(378,801	)
Disposal		—			—			—			—			(29	)		(177,811	)
Net increase (decrease)		349,153			(26,644	)		49,084			18,138,947			(1,181,629	)		(66,926	)
Business combination		100			—			—			851			—			—
Ending balance		7,080,501			905,398			235,554			265,120,479			12,128,510			1,545,630

(8) Details of other financial assets are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
CMA accounts		197,000			199,000
Receivables		7,622,794			5,653,997
Accrued income		948,607			1,012,240
Telex and telephone subscription rights and refundable deposits		943,304			949,118
Other assets		546,959			456,010
Allowance for credit losses		(80,221	)		(77,139	)
Total		10,178,443			8,193,226

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(9) Changes in the allowances for credit losses on other financial assets are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,196	)		(1,666	)		(72,277	)		(77,139	)
Transfer to 12-month expected credit losses		(142	)		132			10			—
Transfer to lifetime expected credit losses		102			(125	)		23			—
Transfer to credit-impaired financial assets		380			75			(455	)		—
Net provision (reversal) of loss allowance		(1,753	)		(1,334	)		(1,808	)		(4,895	)
Charge-off		—			—			414			414
Disposal		—			—			1,131			1,131
Others		701			—			(433	)		268
Ending balance		(3,908	)		(2,918	)		(73,395	)		(80,221	)

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,469	)		(1,971	)		(62,501	)		(67,941	)
Transfer to 12-month expected credit losses		(207	)		199			8			—
Transfer to lifetime expected credit losses		106			(139	)		33			—
Transfer to credit-impaired financial assets		21			181			(202	)		—
Net provision (reversal) of loss allowance		125			27			(3,776	)		(3,624	)
Charge-off		—			—			1,760			1,760
Disposal		—			—			1,338			1,338
Business combination		(388	)		—			(1,553	)		(1,941	)
Others		(39	)		—			—			(39	)
Ending balance		(3,851	)		(1,703	)		(64,893	)		(70,447	)

(10) Changes in the gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		8,059,844			92,647			117,874			8,270,365
Transfer to 12-month expected credit losses		8,760			(8,743	)		(17	)		—
Transfer to lifetime expected credit losses		(12,595	)		12,608			(13	)		—
Transfer to credit-impaired financial assets		(2,153	)		(728	)		2,881			—
Charge-off		—			—			(414	)		(414	)
Disposal		—			—			(1,311	)		(1,311	)
Net increase (decrease)		1,938,191			(22,050	)		73,883			1,990,024
Ending balance		9,992,047			73,734			192,883			10,258,664

	For the nine-month period ended September 30, 2019
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		7,454,390			28,193			72,007			7,554,590
Transfer to 12-month expected credit losses		6,992			(6,977	)		(15	)		—
Transfer to lifetime expected credit losses		(10,867	)		10,928			(61	)		—
Transfer to credit-impaired financial assets		(930	)		(1,090	)		2,020			—
Charge-off		—			—			(1,760	)		(1,760	)
Disposal		—			—			(1,204	)		(1,204	)
Net increase (decrease)		5,874,579			(3,384	)		(1,671	)		5,869,524
Business combination		4,117			—			1,941			6,058
Ending balance		13,328,281			27,670			71,257			13,427,208

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11. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1) The fair value hierarchy

The fair value hierarchy for financial instruments is determined by the amount of observable market data. The specific financial instruments characteristics and market condition such as the existence of the transactions among market participants and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Group maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Group’s own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

• Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

• Level 2— fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

• Level 3— fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Group’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

- 50 -

(2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		45,704		—		—		45,704
Debt securities		603,734		2,040,720		6,087		2,650,541
Equity securities		23,755		—		484,998		508,753
Capital contributions		—		—		641,853		641,853
Beneficiary certificates		31,178		617,721		1,614,878		2,263,777
Loans		—		154,770		196,132		350,902
Derivative assets (Designated for trading)		14,867		3,968,257		44,620		4,027,744
Others		—		—		76,548		76,548
Sub-total		719,238		6,781,468		3,065,116		10,565,822
Financial assets at FVTOCI
Debt securities		2,691,712		26,021,384		—		28,713,096
Equity securities		425,455		—		505,796		931,251
Sub-total		3,117,167		26,021,384`		505,796		29,644,347
Derivative assets (Designated for hedging)		—		228,580		—		228,580
Total		3,836,405		33,031,432		3,570,912		40,438,749
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		45,886		—		—		45,886
Derivative liabilities (Designated for trading)		3,170		3,482,420		23,303		3,508,893
Securities sold		246,596		—		—		246,596
Sub-total		295,652		3,482,420		23,303		3,801,375
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		—		—		16,456		16,456
Derivative liabilities (Designated for hedging)		—		23,039		—		23,039
Total		295,652		3,505,459		39,759		3,840,870

(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

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	December 31, 2019
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		27,901		—		—		27,901
Debt securities		420,330		1,910,929		5,826		2,337,085
Equity securities		157,895		1,834		528,621		688,350
Capital contributions		—		—		515,199		515,199
Beneficiary certificates		1		90,498		1,275,734		1,366,233
Loans		—		59,844		152,629		212,473
Derivative assets (Designated for trading)		3,057		2,893,798		25,048		2,921,903
Sub-total		609,184		4,956,903		2,503,057		8,069,144
Financial assets at FVTOCI
Debt securities		2,146,163		24,568,261		—		26,714,424
Equity securities		441,672		—		493,698		935,370
Securities loaned		—		80,737		—		80,737
Sub-total		2,587,835		24,648,998		493,698		27,730,531
Derivative assets (Designated for hedging)		—		121,131		—		121,131
Total		3,197,019		29,727,032		2,996,755		35,920,806
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		27,530		—		—		27,530
Derivative liabilities (Designated for trading)		4,336		2,766,771		72,039		2,843,146
Sub-total		31,866		2,766,771		72,039		2,870,676
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		—		—		87,626		87,626
Derivative liabilities (Designated for hedging)		—		6,516		321		6,837
Total		31,866		2,773,287		159,986		2,965,139

(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

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Financial assets and liabilities at FVTPL, financial liabilities at FVTPL designated as upon initial recognition, financial assets at FVTOCI, and derivative assets and liabilities are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Group determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instruments are as follows:

1) Valuation methods and input variables for each type of financial instrument classified into level 2 in September 30, 2020 and December 31, 2019 are as follows:

	Valuation methods	Input variables
Loans	The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.	Risk-free market rate, credit spread
Debt securities and Securities loaned	Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread.	Risk-free market rate, credit spread
Beneficiary certificates	The beneficiary certificates classified as Level 2 are measured through Net Asset Value Method.	Value of underlying assets such as bonds
Derivatives	The fair value is measured through option model (Closed Form), DCF Model, FDM, Monte Carlo Simulation, etc.	Risk-free market rate, forward rate, foreign exchange rate, market rate, stock prices and value of underlying assets, volatility, and etc.

2) Valuation methods and input variables for each type of financial instrument classified into level 3 in September 30, 2020 and December 31, 2019 are as follows:

	Valuation methods	Input variables
Loans	The fair value of loans is measured by the Binomial Tree and LSMC given the values of underlying assets and volatility.	Values of underlying assets, volatility
Debt securities	The fair value is measured by discounting the projected cash flows of debt securities by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the issuers of the securities.	Risk-free market rate, credit spread, growth rate, etc.
Equity securities, capital contributions and Beneficiary certificates	Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Net Asset Value Method, and LSMC, more than one method is used given the characteristic of the subject of fair value measurement.	Risk-free market rate, market risk premium, corporate Beta, stock prices, volatility of underlying asset, etc.
Derivatives	Fair value is measured by models such as option model (Closed form), DCF model, FDM and Monte Carlo Simulation.	Risk-free market rate, market rate, values of underlying assets such as foreign exchange rate and stock prices, volatility, etc.
Equity-linked securities	Fair value is measured by Hull-White model.	Volatility of underlying assets, correlation coefficient, discount rate, regression coefficient
Others	Fair value is measured by DCF model, LSMC, etc.	Stock prices, volatility of underlying assets, etc.

- 53 -

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

	Fair value measurement technique	Type	Input variable	Range	Impact of changes in significant unobservable inputs on fair value measurement
Loans, convertible bonds, bond with options and others	Binomial Tree		Stock, Volatility of underlying asset	30.91%	Variation of fair value increases as volatility of underlying asset increases.
	LSMC		Stock, Volatility of underlying asset	22.31%	Variation of fair value increases as volatility of underlying asset increases.
Derivative assets	Option valuation model and others	Interest rate related	Correlation coefficient	0.90~0.98	Variation of fair value increases as correlation coefficient increases.
			Volatility of underlying asset	26.20%~273.30%	Variation of fair value increases as volatility of underlying assets increases.
		Equity related	Correlation coefficient	0.31~0.74	Variation of fair value increases as correlation coefficient increases.
			Volatility of underlying asset	28.93%~29.91%	Variation of fair value increases as volatility of underlying assets increases.
	DCF model	Currency related	Credit risk adjustment ratio	100.00%	Variation of fair value decreases as credit risk adjustment ratio increases.
Derivative liabilities	Option valuation model and others	Interest rate related	Correlation coefficient	0.90~0.98	Variation of fair value increases as correlation coefficient increases.
			Volatility of underlying asset	26.20%~273.30%	Variation of fair value increases as volatility of underlying assets increases.
		Equity related	Correlation coefficient	0.31~0.74	Variation of fair value increases as correlation coefficient increases.
			Volatility of underlying asset	28.93%~29.91%	Variation of fair value increases as volatility of underlying assets increases.
Equity-linked securities	Monte Carlo Simulation and others	Equity related	Correlation coefficient	0.31~0.74	Fair value of equity-linked securities increases if both historical volatility and correlation coefficient increase. However, when correlation coefficient decreases despite the increase in volatility of underlying asset, the fair value variation of equity-linked securities may decrease.
			Volatility of underlying asset	28.93%~65.06%

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	Fair value measurement technique	Type	Input variable	Range	Impact of changes in significant unobservable inputs on fair value measurement
Equity securities, capital contributions, and beneficiary certificates	Binomial Tree		Stock, Volatility of underlying asset	0.00%	Variation of fair value increases as volatility of underlying asset increases.
	LSMC		Stock, Volatility of underlying asset	22.31%~33.45%	Variation of fair value increases as volatility of underlying asset increases.
	DCF model		Terminal growth rate	0~1%	Fair value increases as terminal growth rate increases.
			Discount rate	4.09%~35.99%	Fair value increases as discount rate decreases.
			Liquidation value	—	Variation of liquidation value increases as volatility of underlying assets increases
Others	DCF model		Discount rate	13.91%	Variation of fair value increases as volatility of underlying asset increases.
			Terminal growth rate	1.00%	Fair value increases as terminal growth rate increases.
LSMC			Stock, Volatility of underlying asset	17.86%~35.03%	Variation of fair value increases as volatility of underlying asset increases.

Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.

(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Beginning balance		Net Income (loss) (*1)			Other comprehensive income			Purchases/ issuances		Disposals / settlements			Transfer to or out of Level 3 (*2)			Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		5,826		337			—			—		(76	)		—			6,087
Equity securities		464,741		31,537			—			2,837		(14,149	)		32			484,998
Capital contributions		515,199		20,873			—			144,875		(39,094	)		—			641,853
Beneficiary certificates		1,275,734		15,230			—			493,404		(169,490	)		—			1,614,878
Loans		152,629		6,244			—			125,654		(88,395	)		—			196,132
Derivative assets		25,048		41,478			—			10,161		(19,843	)		(12,224	)		44,620
Others		63,880		3,670			—			8,998		—			—			76,548
Sub-total		2,503,057		119,369			—			785,929		(331,047	)		(12,192	)		3,065,116
Financial assets at FVTOCI
Equity securities		493,698		—			(19,452	)		31,836		(2,478	)		2,192			505,796
Total		2,996,755		119,369			(19,452	)		817,765		(333,525	)		(10,000	)		3,570,912
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		72,039		18,282			—			4,762		(53,246	)		(18,534	)		23,303
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		87,626		(4,141	)		—			—		(67,029	)		—			16,456
Derivative liabilities (Designated for hedging)		321		—			—			—		(321	)		—			—
Total		159,986		14,141			—			4,762		(120,596	)		(18,534	)		39,759

(*1) For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The interim statements of comprehensive income includes gain of 116,771 million won included in net gain (loss) on financial assets at FVTPL and net gain (loss) on financial assets at FVTOCI pertaining to the assets and liabilities held by the Group at the end of the period.

(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or conditions have changed.

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	For the nine-month period ended September 30, 2019
	January 1, 2019		Business Combination		Net Income (loss) (*1)			Other comprehensive income		Purchases/ issuances			Disposals/ settlements			Transfer to or out of Level 3 (*2)			Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		8,389		—		324			—		2,001			(5,059	)		—			5,655
Equity securities		401,860		—		48,194			—		54,450			(4,703	)		—			499,801
Capital contributions		422,614		707		(6,431	)		—		105,477			(61,499	)		—			460,868
Beneficiary certificates		854,299		—		18,369			—		218,353			(150,821	)		—			940,200
Loans		180,450		—		(2,331	)		—		54,993			(64,747	)		—			168,365
Derivative assets		48,798		—		15,648			—		3,946			(37,277	)		2,761			33,876
Sub-total		1,916,410		707		73,773			—		439,220			(324,106	)		2,761			2,108,765
Financial assets at FVTOCI
Equity securities		468,847		1,408		—			20,604		649			(75	)		(1	)		491,432
Total		2,385,257		2,115		73,773			20,604		439,869			(324,181	)		2,760			2,600,197
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		16,691		—		46,063			—		(6,481	)		(14,409	)		(2,729	)		39,135
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities		164,767		—		27,122			—		1,809			(108,142	)		—			85,556
Total		181,458		—		73,185			—		(4,672	)		(122,551	)		(2,729	)		124,691

(*1) The losses that increase financial liabilities are presented as positive amounts, and the gains that decrease financial liabilities are presented as negative amounts. The loss amounting to 58,830 million won for the nine-month period ended September 30, 2019, which is from financial assets and liabilities that the Group holds as at the end of the period, has been recognized in net gain (loss) on financial assets at FVTPL and net gain (loss) on financial assets at FVTOCI in the consolidated statement of comprehensive income.

(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or conditions have changed.

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(4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows.

The sensitivity analysis of the financial instruments has been performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity-linked securities beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 3,610,671 million won and 3,156,741 million won as of September 30, 2020 and December 31, 2019 respectively, equity instruments of 3,038,658 million won and 2,194,320 million won whose carrying amount are considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis.

The sensitivity on fluctuation of input variables by financial instruments as of September 30, 2020 and December 31, 2019 is as follows (Unit: Korean Won in millions):

	September 30, 2020
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		2,124		(2,465	)		—		—
Loans (*2)		1,181		(1,202	)		—		—
Debt securities		29		(28	)		—		—
Equity securities (*2) (*3) (*4)		10,338		(8,696	)		—		—
Beneficiary certificates (*4)		936		(965	)		—		—
Others (*2)		337		(309	)		—		—
Financial assets at FVTOCI
Equity securities (*3) (*4)		—		—			24,034		(18,537	)
Total		14,945		(13,665	)		24,034		(18,537	)
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		1,015		(804	)		—		—
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities (*1)		33		(8	)		—		—
Total		1,048		(812	)		—		—

(*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable variables, by 10%.

(*2) Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10~10%). The stock prices and volatility are major unobservable variables.

(*3) Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (0~1%) and discount rate (-1~1%) or liquidation value (-1~1%). The growth rate, discount rate, and liquidation value are major unobservable variables.

(*4) Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.

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	December 31, 2019
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		640		(935	)		—		—
Loans (*2)		152		(128	)		—		—
Debt securities		652		(640	)		—		—
Equity securities (*3) (*4)		16,104		(10,929	)		—		—
Beneficiary certificates (*4)		1,125		(1,125	)		—		—
Financial assets at FVTOCI
Equity securities (*3) (*4)		—		—			26,380		(11,981	)
Total		18,673		(13,757	)		26,380		(11,981	)
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		1,054		(816	)		—		—
Financial liabilities at FVTPL designated as upon initial recognition
Equity-linked securities (*1)		136		(142	)		—		—
Total		1,190		(958	)		—		—

(*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable variables, by 10%.

(*2) Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10~10%). The stock prices and volatility are major unobservable variables.

(*3) Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (0~1%) and discount rate or liquidation value (-1~1%). The growth rate, discount rate, and liquidation value are major unobservable variables.

(*4) Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.

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(5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Fair value								Book value
	Level 1		Level 2		Level 3		Total
Financial assets:
Securities at amortized cost		2,895,147		15,328,070		—		18,223,217		17,889,922
Loans and other financial assets at amortized cost		17,110		—		304,705,608		304,722,718		307,778,061
Financial liabilities:
Deposits due to customers		—		278,899,205		—		278,899,205		278,588,976
Borrowings		—		22,745,081		—		22,745,081		22,768,493
Debentures		—		30,525,301		—		30,525,301		29,964,791
Other financial liabilities		—		17,329,702		202,210		17,531,912		17,537,263

	December 31, 2019
	Fair value								Book value
	Level 1		Level 2		Level 3		Total
Financial assets:
Securities at amortized cost		3,123,898		17,378,920		—		20,502,818		20,320,539
Loans and other financial assets at amortized cost		25,902		54,507		283,058,699		283,139,108		293,717,693
Financial liabilities:
Deposits due to customers		—		264,909,974		—		264,909,974		264,685,578
Borrowings		—		18,919,018		—		18,919,018		18,998,920
Debentures		—		31,173,189		—		31,173,189		30,858,055
Other financial liabilities		—		17,693,559		—		17,693,559		17,706,767

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Group determines the fair value by using valuation methods. Valuation methods and input variables for financial assets and liabilities that are measured at amortized cost are given as follows:

	Valuation methods	Input variables
Securities at amortized cost	The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread.	Risk-free market rate and credit spread
Loans and other financial assets at amortized cost	The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.	Risk-free market rate, credit spread and prepayment rate
Deposits due to customers, borrowings, debentures and other financial liabilities	The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group.	Risk-free market rate, credit spread and forward rate

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(6) Financial instruments by category

Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Financial asset at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Financial assets
Deposits		45,704		—		13,246,055		—		13,291,759
Securities		6,141,472		29,644,347		17,889,922		—		53,675,741
Loans		350,902		—		284,353,563		—		284,704,465
Derivative assets		4,027,744		—		—		228,580		4,256,324
Other financial assets		—		—		10,178,443		—		10,178,443
Total		10,565,822		29,644,347		325,667,983		228,580		366,106,732

	September 30, 2020
	Financial liabilities at FVTPL		Financial liabilities designated at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Financial liabilities
Deposits due to customers		45,886		—		278,588,976		—		278,634,862
Borrowings		246,596		16,456		22,768,493		—		23,031,545
Debentures		—		—		29,964,791		—		29,964,791
Derivative liabilities		3,508,893		—		—		23,039		3,531,932
Other financial liabilities		—		—		17,537,263		—		17,537,263
Total		3,801,375		16,456		348,859,523		23,039		352,700,393

	December 31, 2019
	Financial asset at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Financial assets
Deposits		27,901		—		14,492,223		—		14,520,124
Securities		4,906,867		27,730,531		20,320,539		—		52,957,937
Loans		212,473		—		271,032,244		—		271,244,717
Derivative assets		2,921,903		—		—		121,131		3,043,034
Other financial assets		—		—		8,193,226		—		8,193,226
Total		8,069,144		27,730,531		314,038,232		121,131		349,959,038

	December 31, 2019
	Financial liabilities at FVTPL		Financial liabilities designated at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Financial liabilities
Deposits due to customers		27,530		—		264,685,578		—		264,713,108
Borrowings		—		87,626		18,998,920		—		19,086,546
Debentures		—		—		30,858,055		—		30,858,055
Derivative liabilities		2,843,146		—		—		6,837		2,849,983
Other financial liabilities (*)		—		—		17,769,531		—		17,769,531
Total		2,870,676		87,626		332,312,084		6,837		335,277,223

(*) Other financial liabilities include 62,764 million won of financial guarantee liabilities measured at amortized cost included in provisions.

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(7) Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category during the nine-month period ended September 30, 2020 and 2019 are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Interest Income (expense)			Fees and Commissions Income (expense)		Provision (reversal) of credit loss			Others			Total
Financial assets at FVTPL		38,855			—		—			613,994			652,849
Financial assets at FVTOCI		344,380			209		(1,425	)		35,754			378,918
Securities at amortized cost		294,673			—		122			—			294,795
Loans and other financial assets at amortized cost		6,510,266			39,638		(573,057	)		40,319			6,017,166
Financial liabilities at amortized cost		(2,752,819	)		—		—			—			(2,752,819	)
Net derivatives (designated for hedging)		—			—		—			(4,690	)		(4,690	)
Total		4,435,355			39,847		(574,360	)		685,377			4,586,219

	For the nine-month period ended September 30, 2019
	Interest Income (expense)			Fees and Commissions Income (expense)		Provision (reversal) of credit loss			Others		Total
Financial assets at FVTPL		40,642			76,432		—			166,934		284,008
Financial assets at FVTOCI		344,183			—		(3,444	)		27,266		368,005
Securities at amortized cost		332,617			—		920			—		333,537
Loans and other financial assets at amortized cost		7,250,532			214,065		(316,388	)		99,107		7,247,316
Financial liabilities at amortized cost		(3,551,124	)		—		—			—		(3,551,124	)
Net derivatives (designated for hedging)		—			—		—			54,885		54,885
Total		4,416,850			290,497		(318,912	)		348,192		4,736,627

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12. DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS

(1) Derecognition of financial instruments

Transferred financial assets that do not meet the condition of derecognition in their entirety.

1) Bonds sold under repurchase agreements

The financial instruments that were disposed but the Group agreed to repurchase at the fixed amounts at the same time, so that they did not meet the conditions of derecognition, are as follows (Unit: Korean Won in millions):

		September 30, 2020		December 31, 2019
Assets transferred	Financial assets at FVTPL		450,888		407,985
	Financial assets at FVTOCI		105,058		56,975
	Securities at amortized cost		42,361		42,841
	Loans and other financial assets at amortized cost		286,058		82,594
	Total		884,365		590,395
Related liabilities	Bonds sold under repurchase agreements		903,583		569,002

2) Securities loaned

When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred; however, they should be returned at the end of lending period. Therefore, the Group does not derecognize them from the consolidated financial statements as it owns majority of risks and benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying amounts of the securities loaned are as follows (Unit: Korean Won in millions):

		September 30, 2020		December 31, 2019		Loaned to
Financial assets at FVTOCI	Korean financial institution’s debt securities and others		70,351		80,737	Korea Securities     Finance Corporation

The details of the transferred financial assets that do not meet the conditions of derecognition in their entirety, such as disposal of securities under repurchase agreement or securities loaned, are explained in Note 18. The Group does not have continuing involvement in transferred financial assets.

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(2) The offset of financial assets and liabilities

The Group possesses both the uncollected domestic exchange receivables and the unpaid domestic exchange payable, which satisfy offsetting criteria of K-IFRS 1032. Therefore, the total number of uncollected domestic exchange receivables or unpaid domestic exchange payable has been offset with part of unpaid domestic exchange payables or uncollected domestic exchange receivables and has been disclosed in loans at amortized cost and other financial assets and other financial liabilities of the Group’s statements of financial position respectively.

The Group possesses the derivative assets, derivative liabilities, receivable spot exchange and payable spot exchange that do not satisfy the offsetting criteria of K-IFRS 1032, but provide the Group under the circumstances of the trading party’s defaults, insolvency or bankruptcy, with the right of offsetting. Items such as cash collateral cannot satisfy the offsetting criteria of K-IFRS 1032, but in accordance with the collateral arrangements and under the circumstances of the trading party’s default, insolvency or bankruptcy, the net amount of derivative assets and derivative liabilities, receivable spot exchange and payable spot exchange can be offset.

The Group has entered into a resale and repurchase agreement and accounted it as a collateralized borrowing. The Group has also entered into a resale and purchase agreement and accounted it as a secured loans. The Group under the repurchase agreements has an offsetting right only upon the counterparty’s default, insolvency or bankruptcy; thus, the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement, which does not satisfy the offsetting criteria of K-IFRS 1032. The Group disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loan at amortized cost and other financial assets.

As of September 30, 2020 and December 31, 2019, the financial instruments to be offset and may be covered by master netting agreements and similar agreements are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Related amounts not setoff in the consolidated statement of financial position				Net amounts
							Netting agreements and others		Cash collateral received
Financial assets:
Derivative assets (*1)		3,776,019		—		3,776,019		9,131,440		409,698		1,014,794
Receivable spot exchange (*2)		6,779,913		—		6,779,913
Bonds purchased under resale agreements (*2)		3,939,909		—		3,939,909		3,939,909		—		—
Domestic exchange settlement debits (*2) (*6)		27,577,986		27,224,781		353,205		—		—		353,205
Total		42,073,827		27,224,781		14,849,046		13,071,349		409,698		1,367,999
Financial liabilities:
Derivative liabilities (*1)		2,813,803		—		2,813,803		8,888,665		223,782		498,951
Equity-linked securities in short position (*3)		16,456		—		16,456
Payable spot exchange (*4)		6,781,139		—		6,781,139
Bonds sold under repurchase agreements (*5)		903,583		—		903,583		445,483		458,100		—
Domestic exchange settlement credits (*4) (*6)		28,508,172		27,224,781		1,283,391		1,278,387		—		5,004
Total		39,023,153		27,224,781		11,798,372		10,612,535		681,882		503,955

(*1) The items include derivative assets and liabilities held for trading and designated for hedging.

(*2) The items are included in loan at amortized cost and other financial assets.

(*3) The items are equity linked securities related to derivatives and are included in financial liabilities at FVTPL.

(*4) The items are included in other financial liabilities.

(*5) The items are included in borrowings.

(*6) Certain financial assets and liabilities are presented as net amounts.

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	December 31, 2019
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Related amounts not setoff in the consolidated statement of financial position				Net amounts
							Netting agreements and others		Cash collateral received
Financial assets:
Derivative assets (*1)		3,032,894		—		3,032,894		7,058,885		111,122		975,093
Receivable spot exchange (*2)		5,112,206		—		5,112,206
Bonds purchased under resale agreements (*2)		8,981,752		—		8,981,752		8,981,752		—		—
Domestic exchange settlement debits (*2) (*6)		31,642,486		31,269,258		373,228		—		—		373,228
Total		48,769,338		31,269,258		17,500,080		16,040,637		111,122		1,348,321
Financial liabilities:
Derivative liabilities (*1)		2,824,449		—		2,824,449		7,071,549		172,488		779,424
Equity-linked securities in short position (*3)		87,626		—		87,626
Payable spot exchange (*4)		5,111,386		—		5,111,386
Bonds sold under repurchase agreements (*5)		569,002		—		569,002		180,402		388,600		—
Domestic exchange settlement credits (*4) (*6)		32,531,186		31,269,258		1,261,928		1,257,280		—		4,648
Total		41,123,649		31,269,258		9,854,391		8,509,231		561,088		784,072

(*1) The items include derivatives held for trading, derivatives designated for hedging.

(*2) The items are included in loan at amortized cost and other financial assets.

(*3) The items are equity linked securities related to derivatives and are included in financial liabilities at FVTPL.

(*4) The items are included in other financial liabilities.

(*5) The items are included in borrowings.

(*6) Certain financial assets and liabilities are presented as net amounts.

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13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES

  (1) Investments in associates accounted for using the equity method of accounting are as follows:

		Percentage of ownership (%)
Joint ventures and associates	Main business	September 30, 2020		December 31, 2019		Location		Financial statements as of
Woori Bank:
W Service Networks Co., Ltd. (*1)	Freight & staffing services		4.9		4.9		Korea		2020.08.31(*5)
Korea Credit Bureau Co., Ltd. (*2)	Credit information		9.9		9.9		Korea		2020.09.30
Korea Finance Security Co., Ltd. (*1)	Security service		15.0		15.0		Korea		2020.08.31(*5)
Saman Corporation (*2)	General construction Technology service		9.2		9.2		Korea		2020.06.30(*5)
Wongwang Co., Ltd. (*4)	Wholesale and real estate		29.0		29.0		Korea		—
Sejin Construction Co., Ltd. (*4)	Construction		29.6		29.6		Korea		—
ARES-TECH Co., Ltd. (*4)	Electronic component manufacturing		23.4		23.4		Korea		—
Reading Doctors Co., Ltd. (*4)	Other services		35.4		35.4		Korea		—
Cultizm Korea LTD Co., Ltd. (*4)	Wholesale and retail sales		31.3		31.3		Korea		—
NK Eng Co., Ltd. (*4)	Manufacturing		23.1		23.1		Korea		—
Goodskt Co., Ltd. (*4)	Telecommunication equipment retail sales		23.1		23.1		Korea		—
Woori Growth Partnerships New Technology Private Equity Fund	Other financial services		23.1		23.1		Korea		2020.09.30
2016KIF-IMM Woori Bank Technology Venture Fund	Other financial services		20.0		20.0		Korea		2020.09.30
K BANK Co., Ltd. (*2) (*7)	Finance		26.2		14.5		Korea		2020.08.31(*5)
Smart Private Equity Fund No.2	Other financial services		20.0		20.0		Korea		2020.09.30
Woori Bank-Company K Korea Movie Asset Fund	Other financial services		25.0		25.0		Korea		2020.09.30
Well to Sea No. 3 Private Equity Fund (*6)	Finance		50.0		50.0		Korea		2020.06.30(*5)
Partner One Value Up I Private Equity Fund	Other financial services		23.3		23.3		Korea		2020.09.30
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership	Other financial services		20.0		20.0		Korea		2020.09.30
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund	Other financial services		25.0		25.0		Korea		2020.09.30
LOTTE CARD Co., Ltd.	Credit card and installment financing		20.0		20.0		Korea		2020.06.30(*5)
Together-Korea Government Private Pool Private Securities Investment Trust No.3	Securities Investment		100.0		—		Korea		2020.09.30
Genesis Environmental Energy Company 1st Private Equity Fund	Trust and collective investment		24.8		—		Korea		2020.09.30
Japanese Hotel Real Estate Private Equity Fund 2	Other financial services		19.9		19.9		Korea		2020.09.30
Woori G Senior Loan No.1	Investment trust and discretionary investment business		20.6		—		Korea		2020.09.30
Woori G Clean Energy No.1	Investment trust and discretionary investment business		50.0		—		Korea		2020.09.30
Woori Asset Management Co. Ltd.:

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		Percentage of ownership (%)
Joint ventures and associates	Main business	September 30, 2020		December 31, 2019		Location		Financial statements as of
Woori High plus G.B. Securities Feeder Fund1(G.B.)	Collective investment business		22.2		—		Korea	2020.09.30
Woori Private Equity Asset Management Co., Ltd.:
Uri Hanhwa Eureka Private Equity Fund (*2)	Other financial services		0.8		0.8		Korea	2020.09.30
Japanese Hotel Real Estate Private Equity Fund 1:
Godo Kaisha Oceanos 1	Other financial services		47.8		47.8		Japan	2020.07.31(*5)
Woori bank and Woori card Co., Ltd.:
Dongwoo C & C Co., Ltd. (*4)	Construction		24.5		24.5		Korea	—
SJCO Co., Ltd. (*4)	Aggregate transportation and wholesale		28.7		28.7		Korea	—
G2 Collection Co., Ltd. (*4)	Wholesale and retail sales		29.2		29.2		Korea	—
The Base Enterprise Co., Ltd. (*4)	Manufacturing		48.4		48.4		Korea	—
Kyesan Engineering Co., Ltd. (*4)	Construction		23.3		23.3		Korea	—
Good Software Lap Co., Ltd. (*4)	Service		29.4		29.4		Korea	—
QTS Shipping Co., Ltd. (*4)	Complex transportation brokerage		49.8		49.8		Korea	—
DAEA SNC Co., Ltd. (*4)	Wholesale and retail sales		25.5		25.5		Korea	—
Force TEC Co., Ltd. (*4)	Manufacturing		25.8		25.8		Korea	—
Sinseong Trading Co., Ltd. (*4)	Manufacturing		27.9		27.9		Korea	—
PREXCO Co., Ltd. (*4)	Manufacturing		28.1		28.1		Korea	—
Jiwon Plating Co., Ltd. (*4)	Plating		20.8		20.8		Korea	—
Youngdong Sea Food Co., Ltd. (*4)	Processed sea food manufacturing		24.5		24.5		Korea	—
Woori Bank , Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd.:
Woori-Shinyoung Growth-Cap Private Equity Fund I	Other financial services		31.9		31.9		Korea	2020.09.30
Woori Bank and Woori Investment Bank Co., Ltd.:
Chin Hung International Inc. (*3)	Construction		—		25.3		Korea	—
PCC-Woori LP Secondary Fund	Other financial services		38.8		38.8		Korea	2020.09.30
Woori Bank and Woori Private Equity Asset Management Co., Ltd.:
Woori-Q Corporate Restructuring Private Equity Fund	Trust and collective investment		38.4		38.4		Korea	2020.09.30

(*1) Most of the significant business transactions of associates are with the Group as of September 30, 2020 and December 31, 2019.

(*2) The Group can participate in decision-making body and exercise significant influence over financial policies and operational policies decision making of the associates.

(*3) As of September 30, 2020, it is classified as assets held for sale. Quoted market prices per share of Chin Hung International Inc. are 2,215 Won and 2,310 Won as of September 30, 2020 and December 31, 2019, respectively.

(*4) There is no investment balance as of September 30, 2020 and December 31, 2019.

(*5) The equity method was applied using the most recent financial statements available from the settlement date because no financial statements were available at the end of December and the significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the subsidiary were duly reflected.

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(*6) The Group has signed a contract that the Group (or the third party designated by the Group) has the priority to purchase the underlying assets (Aju Capital Co. Ltd.) when it is disposed by Well to Sea No. 3 Private Equity Fund.

(*7) The Group invested 163,082 million won in its affiliate, K BANK Co., Ltd., in July, 2020.

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(2) Changes in the carrying value of investments in associates accounted for using the equity method of accounting are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Acquisition cost		January 1, 2020		Share of profits (losses)			Acquisition		Disposal			Dividends			Change in capital			September 30, 2020
W Service Networks Co., Ltd.		108		186		1			—		—			(3	)		—			184
Korea Credit Bureau Co., Ltd.		3,313		6,845		1,358			—		—			(90	)		—			8,113
Korea Finance Security Co., Ltd.		3,267		3,287		(241	)		—		—			—			—			3,046
Chin Hung International Inc.		130,779		51,176		(742	)		—		(50,411	)		—			(23	)		—
Saman Corporation		8,521		849		(406	)		—		—			—			37			480
Woori Growth Partnerships New Technology Private Equity Fund		18,666		19,212		(1,863	)		—		(1,728	)		(212	)		—			15,409
2016KIF-IMM Woori Bank Technology Venture Fund		12,385		15,141		900			—		(492	)		(1,088	)		(1,563	)		12,898
K BANK Co., Ltd.		73,150		31,254		(12,108	)		163,082		—			—			(1,733	)		180,495
Smart Private Equity Fund No.2		2,915		2,764		(31	)		—		—			—			—			2,733
Woori Bank-Company K Korea Movie Asset Fund		2,100		3,323		439			—		(900	)		—			—			2,862
Well to Sea No.3 Private Equity Fund		101,483		209,023		28,869			—		—			(24,651	)		(1,174	)		212,067
Partner One Value Up I Private Equity Fund		10,000		9,908		(74	)		—		—			—			—			9,834
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		7,736		4,576		—			3,160		—			—			—			7,736
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,130		4,375		—			75		(321	)		—			—			4,129
Woori-Shinyoung Growth-Cap Private Equity Fund I		32,572		11,841		(121	)		19,907		—			—			—			31,627
LOTTE CARD Co.,Ltd		346,810		409,444		16,251			810		—			(5,710	)		(1,146	)		419,649
Woori-Q Corporate Restructuring Private Equity Fund		6,129		6,046		(90	)		8,152		—			—			—			14,108
PCC-Woori LP Secondary Fund		7,575		2,525		(131	)		5,050		—			—			—			7,444
Force TEC Co., Ltd.		—		—		1,470			—		—			—			(448	)		1,022
Together-Korea Government Private Pool Private Securities Investment Trust No.3		100,000		—		130			100,000		—			—			—			100,130
Genesis Environmental Energy Company 1st Private Equity Fund		4,084		—		(88	)		4,084		—			—			—			3,996
Uri Hanhwa Eureka Private Equity Fund		350		342		(3	)		—		—			—			—			339
Godo Kaisha Oceanos 1		10,800		10,952		(47	)		—		—			(850	)		238			10,293
Japanese Hotel Real Estate Private Equity Fund 2		3,291		3,291		184			—		—			(117	)		(12	)		3,346
Woori High plus G.B. Securities Feeder Fund1(G.B.)		6,000		—		142			6,141		—			—			—			6,283
Woori G Senior Loan No.1		18,557		—		49			18,557		—			—			—			18,606
Woori G Clean Energy No.1		26		—		—			26		—			—			—			26
		914,747		806,360		33,848			329,044		(53,852	)		(32,721	)		(5,824	)		1,076,855

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	For the nine-month period ended September 30, 2019
	Acquisition cost		January 1, 2019		Share of profits (losses)			Acquisition		Disposal			Dividends			Change in capital			September 30, 2019
W Service Networks Co., Ltd.		108		157		16			—		—			(2	)		—			171
Korea Credit Bureau Co., Ltd.		3,313		6,790		1,031			—		—			(135	)		—			7,686
Korea Finance Security Co., Ltd.		3,267		3,456		(135	)		—		—			—			—			3,321
Chin Hung International Inc.		130,779		44,741		5,708			—		—			—			8			50,457
Saman Corporation		8,521		1,014		(388	)		—		—			—			32			658
Woori Growth Partnerships New Technology Private Equity Fund		19,385		25,091		1,424			309		(6,770	)		(164	)		—			19,890
2016KIF-IMM Woori Bank Technology Venture Fund		13,065		15,300		908			—		(1,935	)		—			(384	)		13,889
K BANK Co., Ltd.		73,150		43,709		(10,815	)		5,807		—			—			197			38,898
Smart Private Equity Fund No.2		2,915		2,890		(31	)		—		(85	)		—			—			2,774
Woori Bank-Company K Korea Movie Asset Fund		3,000		2,700		803			—		—			—			—			3,503
Well to Sea No.3 Private Equity Fund		101,483		197,393		23,110			—		—			(18,578	)		(1,850	)		200,075
Partner One Value Up I Private Equity Fund		10,000		9,948		(29	)		—		—			—			—			9,919
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		4,576		4,426		—			150		—			—			—			4,576
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,150		3,025		—			1,125		—			—			—			4,150
Nomura-Rifa Private Real Estate Investment Trust No.17		1,000		787		—			—		(787	)		—			—			—
Uri Hanhwa Eureka Private Equity Fund		350		339		(2	)		—		—			—			—			337
Godo Kaisha Oceanos 1		11,020		—		—			11,020		—			(70	)		688			11,638
Woori-Shinyoung Growth-Cap Private Equity Fund I		7,649		—		(640	)		7,649		—			—			—			7,009
		397,731		361,766		20,960			26,060		(9,577	)		(18,949	)		(1,309	)		378,951

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(3) Summary financial information relating to investments in associates accounted for using the equity method of accounting is as follows (Unit: Korean Won in millions):

	September 30, 2020
	Assets		Liabilities		Operating revenue		Net income (loss)
W Service Networks Co., Ltd.		6,107		2,377		13,633		1,070
Korea Credit Bureau Co., Ltd.		114,062		34,707		77,957		13,268
Korea Finance Security Co., Ltd.		36,658		16,353		44,105		(2,123	)
Saman Corporation		121,151		99,147		66,949		(107	)
Woori Growth Partnerships New Technology Private Equity Fund		67,053		278		1,428		(7,965	)
2016KIF-IMM Woori Bank Technology Venture Fund		62,139		929		5,445		4,500
K BANK Co., Ltd.		3,141,943		2,607,546		45,922		(60,227	)
Smart Private Equity Fund No.2		13,717		50		1		(154	)
Woori Bank-Company K Korea Movie Asset Fund		11,544		96		1,854		1,755
Well to Sea No.3 Private Equity Fund		8,172,581		7,562,271		406,218		39,241
Partner One Value Up I Private Equity Fund		42,476		193		229		(250	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		36,189		328		574		(456	)
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,870		123		—		(85	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		99,273		1,228		615		(1,376	)
LOTTE CARD Co.,Ltd (*)		14,231,821		11,906,418		882,641		62,921
Woori-Q Corporate Restructuring Private Equity Fund		35,500		383		—		(1,284	)
PCC-Woori LP Secondary Fund		19,324		164		154		(338	)
Force TEC Co., Ltd.		51,005		47,042		18,333		(697	)
Together-Korea Government Private Pool Private Securities Investment Trust No.3		100,153		13		163		130
Genesis Environmental Energy Company 1st Private Equity Fund		16,194		48		—		(354	)
Uri Hanhwa Eureka Private Equity Fund		42,235		117		4		(354	)
Godo Kaisha Oceanos 1		67,080		45,550		674		(98	)
Japanese Hotel Real Estate Private Equity Fund 2		16,866		16		946		946
Woori High plus G.B. Securities Feeder Fund1(G.B.)		28,321		17		801		741
Woori G Senior Loan No.1		90,244		5		237		237
Woori G Clean Energy No.1		53		—		—		—

(*) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

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	December 31, 2019
	Assets		Liabilities		Operating revenue		Net income (loss)
W Service Networks Co., Ltd.		5,742		1,969		17,572		1,322
Korea Credit Bureau Co., Ltd.		96,855		30,289		91,200		1,480
Korea Finance Security Co., Ltd.		32,574		10,660		61,939		(1,265	)
Chin Hung International Inc.		335,147		229,764		499,152		26,617
Saman Corporation		92,206		66,184		91,088		(485	)
Woori Growth Partnerships New Technology Private Equity Fund		83,583		330		7,866		6,355
2016KIF-IMM Woori Bank Technology Venture Fund		72,768		343		8,939		7,462
K BANK Co., Ltd.		2,679,968		2,464,168		84,928		(89,779	)
Smart Private Equity Fund No.2		13,872		51		2		(204	)
Woori Bank-Company K Korea Movie Asset Fund		13,294		2		4,532		2,492
Well to Sea No.3 Private Equity Fund		7,073,363		6,470,540		524,319		48,357
Partner One Value Up I Private Equity Fund		42,602		—		457		(175	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		21,208		691		766		(676	)
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		16,939		124		10		(494	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		37,642		620		2		(2,679	)
LOTTE CARD Co.,Ltd (*)		12,936,977		10,659,889		1,366,512		42,538
Woori-Q Corporate Restructuring Private Equity Fund		15,975		823		—		(823	)
PCC-Woori LP Secondary Fund		6,498		—		—		(2	)
Uri Hanhwa Eureka Private Equity Fund		41,950		236		41		(436	)
Godo Kaisha Oceanos 1		70,869		47,960		778		119
Japanese Hotel Real Estate Private Equity Fund 2		16,561		6		—		(600	)

(*) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

(4) The entities that the Group has not applied equity method of accounting although the Group’s ownership interest is more than 20% as of September 30, 2020 and December 31, 2019 are as follows:

	September 30, 2020
Associate (*)	Number of shares owned		Ownership (%)
Orient Shipyard Co., Ltd.		464,812		21.4
Saenuel Co., Ltd.		3,531		37.4
E Mirae Tech Co., Ltd.		7,696		41.0
Jehin Trading Co., Ltd.		81,610		27.3
The Season Company Co., Ltd.		18,187		30.1
Yuil PESC Co., Ltd.		8,642		24.0
CL Tech Co., Ltd.		13,759		38.6

(*) Even though the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, thus it is excluded from the investment in joint ventures and associates.

	December 31, 2019
Associate (*)	Number of shares owned		Ownership (%)
Orient Shipyard Co., Ltd.		464,812		21.4
Saenuel Co., Ltd.		3,531		37.4
E Mirae Tech Co., Ltd.		7,837		41.8
Jehin Trading Co., Ltd.		83,056		27.7
The Season Company Co., Ltd.		18,283		30.3
Yuil PESC Co., Ltd.		8,642		24.0
CL Tech Co., Ltd.		13,759		38.6

(*) Even though the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, thus it is excluded from the investment in joint ventures and associates.

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(5) As of September 30, 2020 and December 31, 2019, the reconciliations from the net assets of the associates to the book value of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won in millions except for ownership):

	September 30, 2020
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment			Intercompany transaction			Book value
W Service Networks Co., Ltd.		3,730		4.9		184		—		—			—			184
Korea Credit Bureau Co., Ltd.		79,355		9.9		7,864		246		—			3			8,113
Korea Finance Security Co., Ltd.		20,304		15.0		3,046		—		—			—			3,046
Saman Corporation (*2)		22,004		9.2		2,022		5,372		(6,915	)		1			480
Woori Growth Partnerships New Technology Private Equity Fund		66,775		23.1		15,412		—		—			(3	)		15,409
2016KIF-IMM Woori Bank Technology Venture Fund		61,210		20.0		12,242		—		—			656			12,898
K BANK Co., Ltd. (*1) (*2)		534,398		26.2		140,012		44,117		(3,634	)		—			180,495
Smart Private Equity Fund No.2		13,666		20.0		2,733		—		—			—			2,733
Woori Bank-Company K Korea Movie Asset Fund		11,448		25.0		2,862		—		—			—			2,862
Well to Sea No.3 Private Equity Fund (*1)		424,341		50.0		212,086		—		—			(19	)		212,067
Partner One Value Up Ist Private Equity Fund		42,283		23.3		9,835		—		—			(1	)		9,834
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		35,861		20.0		7,172		—		—			564			7,736
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,747		25.0		3,937		—		—			192			4,129
Woori-Shinyoung Growth-Cap Private Equity Fund I		98,045		31.9		31,627		—		—			—			31,627
LOTTE CARD Co., Ltd (*1)		2,098,239		20.0		419,648		—		—			1			419,649
Woori-Q Corporate Restructuring Private Equity Fund		35,117		38.4		13,511		—		—			597			14,108
PCC-Woori LP Secondary Fund		19,160		38.8		7,443		—		—			1			7,444
Force TEC		3,963		25.8		1,022		—		—			—			1,022
Together-Korea Government Private Pool Private Securities Investment Trust No.3		100,140		100.0		100,140		—		—			(10	)		100,130
Genesis Environmental Energy Company 1st Private Equity Fund		16,146		24.8		3,997		—		—			(1	)		3,996
Uri Hanhwa Eureka Private Equity Fund		42,118		0.8		339		—		—			—			339
Godo Kaisha Oceanos 1		21,530		47.8		10,293		—		—			—			10,293
Japanese Hotel Real Estate Private Equity Fund 2		16,850		19.9		3,346		—		—			—			3,346
Woori High plus G.B. Securities Feeder Fund1(G.B.)		28,304		22.2		6,283		—		—			—			6,283
Woori G Senior Loan No.1		90,239		20.6		18,606		—		—			—			18,606
Woori G Clean Energy No.1		53		50.0		26		—		—			—			26

(*1) The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

(*2) As a result of conducting an impairment test on the investment stocks of the related companies, the recoverable value was less than the carrying amount and thus the impairment loss was recognized.

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	December 31, 2019
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment			Intercompany transaction			Book value
W Service Networks Co., Ltd.		3,773		4.9		186		—		—			—			186
Korea Credit Bureau Co., Ltd.		66,566		9.9		6,597		246		—			2			6,845
Korea Finance Security Co., Ltd.		21,914		15.0		3,287		—		—			—			3,287
Chin Hung International Inc. (*1)		105,383		25.3		26,646		24,565		—			(35	)		51,176
Saman Corporation (*2)		26,022		9.2		2,391		5,373		(6,915	)		—			849
Woori Growth Partnerships New Technology Private Equity Fund		83,253		23.1		19,215		—		—			(3	)		19,212
2016KIF-IMM Woori Bank Technology Venture Fund		72,425		20.0		14,485		—		—			656			15,141
K BANK Co., Ltd. (*1) (*2)		215,800		14.5		31,248		3,634		(3,634	)		6			31,254
Smart Private Equity Fund No.2		13,821		20.0		2,764		—		—			—			2,764
Woori Bank-Company K Korea Movie Asset Fund		13,292		25.0		3,323		—		—			—			3,323
Well to Sea No.3 Private Equity Fund (*1)		418,250		50.0		209,041		—		—			(18	)		209,023
Partner One Value Up Ist Private Equity Fund		42,602		23.3		9,909		—		—			(1	)		9,908
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		20,517		20.0		4,103		—		—			473			4,576
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		16,815		25.0		4,204		—		—			171			4,375
Woori-Shinyoung Growth-Cap Private Equity Fund I		37,022		31.9		11,841		—		—			—			11,841
LOTTE CARD Co., Ltd (*1)		2,047,220		20.0		409,444		—		—			—			409,444
Woori-Q Corporate Restructuring Private Equity Fund		15,152		38.4		5,813		—		—			233			6,046
PCC-Woori LP Secondary Fund		6,498		38.8		2,524		—		—			1			2,525
Uri Hanhwa Eureka Private Equity Fund		41,714		0.8		342		—		—			—			342
Godo Kaisha Oceanos 1		22,909		47.8		10,952		—		—			—			10,952
Japanese Hotel Real Estate Private Equity Fund 2		16,555		19.9		3,291		—		—			—			3,291

(*1) The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

(*2) As a result of conducting an impairment test on the investment stocks of the related companies, the recoverable value was less than the carrying amount and thus the impairment loss was recognized.

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14. INVESTMENT PROPERTIES

(1) Details of investment properties are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Acquisition cost		333,001			299,802
Accumulated depreciation		(21,657	)		(19,563	)
Net carrying value		311,344			280,239

(2) Changes in investment properties are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020			2019
Beginning balance		280,239			178,910
Acquisition		2,432			246,329
Disposal		(356	)		(176	)
Depreciation		(1,812	)		(1,766	)
Transfer		29,580			15,535
Foreign currencies translation adjustments		446			502
Others		815			109
Ending balance		311,344			439,443

(3) Rental fee earned from investment properties is amounting to 9,944 million won and 6,750 million won for the nine-month period ended September 30, 2020 and 2019, respectively. Operating expenses directly related to the investment properties where rental fee was earned is amounting to 1,907 million won and 1,848 million won.

15. PREMISES AND EQUIPMENT

(1) Details of premises and equipment as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,725,907		783,459		265,784		50,356		4,856		2		2,830,364
Right-of-use asset		—		434,809		13,460		—		—		—		448,269
Carrying value		1,725,907		1,218,268		279,244		50,356		4,856		2		3,278,633

	December 31, 2019
	Land		Building		Equipment and vehicles		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,761,159		802,299		278,016		54,839		1,287		2		2,897,602
Right-of-use asset		—		449,878		17,236		—		—		—		467,114
Carrying value		1,761,159		1,252,177		295,252		54,839		1,287		2		3,364,716

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(2) Details of premises and equipment (owned) as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Land		Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,725,907		1,067,040			1,117,098			469,754			4,856		20			4,384,675
Accumulated depreciation		—		(283,581	)		(851,314	)		(419,398	)		—		(18	)		(1,554,311	)
Net carrying value		1,725,907		783,459			265,784			50,356			4,856		2			2,830,364

	December 31, 2019
	Land		Building			Equipment and vehicles			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,761,159		1,063,756			1,123,101			463,181			1,287		20			4,412,504
Accumulated depreciation		—		(261,457	)		(845,085	)		(408,342	)		—		(18	)		(1,514,902	)
Net carrying value		1,761,159		802,299			278,016			54,839			1,287		2			2,897,602

(3) Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress			Structures		Total
Beginning balance		1,761,159			802,299			278,016			54,839			1,287			2		2,897,602
Acquisitions		55			13,870			57,293			15,113			4,084			—		90,415
Disposals		(6,478	)		(346	)		(982	)		(353	)		—			—		(8,159	)
Depreciation		—			(26,849	)		(70,779	)		(19,787	)		—			—		(117,415	)
Transfer		(28,266	)		(1,314	)		—			—			—			—		(29,580	)
Foreign currencies translation adjustments		(563	)		(622	)		335			305			(13	)		—		(558	)
Others		—			(3,579	)		1,901			239			(502	)		—		(1,941	)
Ending balance		1,725,907			783,459			265,784			50,356			4,856			2		2,830,364

	For the nine-month period ended September 30, 2019
	Land			Building			Equipment and vehicles			Leasehold improvement			Construction in progress			Structures			Total
Beginning balance		1,481,871			661,912			240,013			57,594			9,099			3			2,450,492
Acquisitions		51,856			34,279			91,019			21,215			6,600			—			204,969
Disposals		(3,002	)		(2,245	)		(398	)		(2,321	)		—			—			(7,966	)
Depreciation		—			(22,434	)		(64,458	)		(19,750	)		—			(1	)		(106,643	)
Classified as held-for-sale		(21	)		(74	)		—			—			—			—			(95	)
Transfer		106,841			87,214			2,734			912			(13,950	)		—			183,751
Foreign currencies translation adjustments		1,155			1,059			2,100			1,158			78			—			5,550
Business combination		—			—			400			1			—			—			401
Others		—			1,672			(1,440	)		(4,357	)		(173	)		—			(4,298	)
Ending balance		1,638,700			761,383			269,970			54,452			1,654			2			2,726,161

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(4) Details of right-of-use assets as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Building			Equipment and vehicles			Total
Acquisition cost		703,573			28,154			731,727
Accumulated depreciation		(268,764	)		(14,694	)		(283,458	)
Net carrying value		434,809			13,460			448,269

	December 31, 2019
	Building			Equipment and vehicles			Total
Acquisition cost		615,201			25,563			640,764
Accumulated depreciation		(165,323	)		(8,327	)		(173,650	)
Net carrying value		449,878			17,236			467,114

(5) Details of changes in right-of-use assets for the nine-month period ended September 30, 2020 and 2019 are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Building			Equipment and vehicles			Total
Beginning balance		449,878			17,236			467,114
New contracts		156,329			5,231			161,560
Changes in contract		9,374			50			9,424
Termination		(4,674	)		(323	)		(4,997	)
Depreciation		(170,039	)		(7,640	)		(177,679	)
Business combination		—			—			—
Others		(6,059	)		(1,094	)		(7,153	)
Ending balance		434,809			13,460			448,269

	For the nine-month period ended September 30, 2019
	Building			Equipment and vehicles			Total
Beginning balance		416,827			18,964			435,791
New contracts		187,352			5,470			192,822
Changes in contract		—			—			—
Termination		(213	)		(105	)		(318	)
Depreciation		(153,288	)		(7,484	)		(160,772	)
Business combination		3,324			34			3,358
Others		(2,057	)		669			(1,388	)
Ending balance		451,945			17,548			469,493

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16. INTANGIBLE ASSETS

(1) Details of intangible assets are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Goodwill		Software			Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		340,068		186,871			1,799			555,721			879,804			36,715			6,709		2,007,687
Accumulated amortization		—		(146,392	)		(1,044	)		(345,120	)		(678,447	)		—			—		(1,171,003	)
Accumulated impairment losses		—		—			—			—			(33,680	)		(3,201	)		—		(36,881	)
Net carrying value		340,068		40,479			755			210,601			167,677			33,514			6,709		799,803

	December 31, 2019
	Goodwill		Software			Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		350,682		174,132			1,576			517,224			862,313			32,583			4,066		1,942,576
Accumulated amortization		—		(138,300	)		(884	)		(292,031	)		(638,005	)		—			—		(1,069,220	)
Accumulated impairment losses		—		—			—			—			(25,993	)		(3,253	)		—		(29,246	)
Net carrying value		350,682		35,832			692			225,193			198,315			29,330			4,066		844,110

(2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Goodwill			Software			Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		350,682			35,832			692			225,193			198,315			29,330			4,066			844,110
Acquisitions		—			12,171			223			38,256			17,795			4,960			3,238			76,643
Disposal		—			—			—			—			—			(759	)		—			(759	)
Amortization (*)		—			(6,731	)		(160	)		(53,079	)		(41,835	)		—			—			(101,805	)
Impairment losses		—			—			—			—			(7,687	)		(17	)		—			(7,704	)
Transfer		—			—			—			428			164			—			(592	)		—
Foreign currencies translation adjustments		(8,997	)		(621	)		—			—			(56	)		69			(3	)		(9,608	)
Others		(1,617	)		(172	)		—			(197	)		981			(69	)		—			(1,074	)
Ending balance		340,068			40,479			755			210,601			167,677			33,514			6,709			799,803

(*) Amortization of other intangible assets amounting to 9,363 million won is included in other operating expenses.

	For the nine-month period ended September 30, 2019
	Goodwill		Software			Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		153,602		29,727			562			240,320			139,297			23,597			10,415			597,520
Acquisitions		—		10,505			260			24,331			75,110			4,846			8,605			123,657
Disposal		—		—			—			—			(27	)		(537	)		—			(564	)
Amortization (*)		—		(7,125	)		(138	)		(48,083	)		(39,600	)		—			—			(94,946	)
Impairment losses		—		—			—			—			—			(854	)		—			(854	)
Transfer		—		—			—			7,928			6,605			—			(14,533	)		—
Foreign currencies translation adjustments		14,422		233			—			—			2,994			155			—			17,804
Business combination		45,264		336			—			—			6,456			139			—			52,195
Others		—		179			—			—			(679	)		—			—			(500	)
Ending balance		213,288		33,855			684			224,496			190,156			27,346			4,487			694,312

(*) Amortization of other intangible assets amounting to 16,211 million won is included in other operating expenses.

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17. ASSETS HELD FOR SALE

Assets held for distribution (sale) are as follows (Unit: Korean Won in millions):

Assets (*)	September 30, 2020		December 31, 2019
Lands		4,737		5,164
Buildings		4,301		4,815
Investments of associates		50,411		—
Others		450		577
Total		59,899		10,556

(*) The Group classifies assets as held for sale that are highly likely to be sold within one year from September 30, 2020 or December 31, 2019.

The Group measured assets held for sale at the lower of their net fair value or carrying amount.

18. ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES

(1) Assets subjected to lien are as follows (Unit: Korean Won in millions):

		September 30, 2020
		Collateral given to	Amount		Reason for collateral
Financial assets at FVTPL	Korean treasury and government bonds and others	Kookmin bank and others		250,250	Related to bonds sold under repurchase agreements (*)
	Korean treasury and government bonds and others	Korea Securities Depository		6,073	Securities borrowing collateral
	Korean treasury and government bonds and others	Shinhan Investment Corp.		4,049	Collateral for futures transaction
	Korean financial institutions’ debt securities and others	Korea Securities Depository		161,061	Securities borrowing collateral
	Korean financial institutions’ debt securities and others	Kookmin bank		49,995	Related to bonds sold under repurchase agreements (*)
	Korean corporate debt securities	Kookmin bank		150,643	Related to bonds sold under repurchase agreements (*)
	Korean corporate debt securities	Eugene investment & futures co., Ltd.		3,034	Collateral for futures transaction
	Korean corporate debt securities	Korea Securities Depository		111,730	Securities borrowing collateral
Financial assets at FVTOCI	Korean financial institutions’ debt securities and others	The BOK and others		3,489,897	Settlement risk and others
	Foreign financial institutions’ debt securities	Spain BBVA and others		105,058	Related to bonds sold under repurchase agreements (*)
Securities at amortized cost	Korean treasury and government bonds and others	Korea Securities Depository		419	Related to bonds sold under repurchase agreements (*)
	Korean treasury and government bonds and others	The BOK and others		5,850,585	Settlement risk and others
	Foreign financial institutions’ debt securities	NATIXIS and others		41,942	Related to bonds sold under repurchase agreements (*)
	Foreign financial institutions’ debt securities	Federal Reserve Bank		16,036	Related to the borrowing limit
Loan at amortized cost and other financial assets	Due from banks in local currency	Daishin AMC Co.,Ltd. and others		1,500	Right of pledge
	Other due from banks in local currency	Samsung Securities Co., Ltd. and others		17,884	Margin deposit for futures or option

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		September 30, 2020
		Collateral given to	Amount		Reason for collateral
	Other due from banks in foreign currencies	Korea Investment & Securities Co., Ltd. and others		484,392	Foreign margin deposit for future or option and others
	Foreign currency loan bonds	Industrial and Commercial Bank of China		286,058	Related to bonds sold under repurchase agreements (*)
	Mortgage loan	Public offering		3,430,550	Related to covered bonds
Investment real estate	Land and building	Credit Counselling & Recovery Service and others		5,715	Right to collateral and others
Premises and equipment	Land and building	Credit Counselling & Recovery Service and others		1,984	Right to collateral and others
		Total		14,468,855

(*) The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.

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		December 31, 2019
		Collateral given to	Amount		Reason for collateral
Financial assets at FVTPL	Korean treasury and government bonds and others	Nonghyup bank		19,720	Related to bonds sold under repurchase agreements (*)
	Korean corporate debt securities	Kookmin bank and others		168,327	Related to bonds sold under repurchase agreements (*)
	Korean corporate debt securities	Eugene investment & futures co., Ltd. .		3,008	Collateral for futures transaction
	Korean financial institutions’ debt securities and others	Nonghyup bank and others		219,938	Related to bonds sold under repurchase agreements (*)
Financial assets at FVTOCI	Korean financial institutions’ debt securities and others	The BOK and others		5,127,383	Settlement risk and others
	Foreign financial institutions’ debt securities	Spain BBVA and others		56,975	Related to bonds sold under repurchase agreements (*)
	Korean corporate debt securities	Nonghyup bank futures and others		9,042	Collateral for futures transaction
Securities at amortized cost	Korean treasury and government bonds	Korea Securities Depository		5,570	Related to bonds sold under repurchase agreements (*)
	Korean treasury and government bonds and others	The BOK and others		6,190,630	Settlement risk and others
	Foreign financial institutions’ debt securities	NATIXIS and others		37,271	Related to bonds sold under repurchase agreements (*)
Loan at amortized cost and other financial assets	Due from banks in local currency	Branch of IBK at Phnom Penh and others		11,352	Collateral deposits for local currency borrowings
	Due from banks in local currency	Daishin AMC and others		1,500	Right of pledge
	Other due from banks in local currency	Samsung Securities Co., Ltd. and others		17,345	Margin deposit for futures or option
	Other due from banks in foreign currencies	Korea Investment & Securities Co., Ltd. and others		180,919	Foreign margin deposit for future or option and others
	Foreign currency loans	Industrial and Commercial Bank of China		82,594	Related to bonds sold under repurchase agreements (*)
Premises and equipment	Land and building	Credit Counselling & Recovery Service and others		689	Right to collateral and others
		Total		12,132,263

(*) The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.

(2) As of September 30, 2020 and December 31, 2019 there is no asset acquired through foreclosures.

	September 30, 2020			December 31, 2019
Other assets
Land		6,349			27
Real estate assessment provision		(89	)		(27	)
Sub-total		6,260			—
Assets held for sale
Land		4,737			5,143
Building		4,301			4,742
Others		450			577
Sub-total		9,488			10,462
Total		15,748			10,462

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(3) Securities loaned are as follows (Unit: Korean Won in millions):

		September 30, 2020		December 31, 2019		Loaned to
Financial assets at FVTOCI	Korean financial institutions’ debt securities and others		70,351		80,737	Korea Securities Finance Corporation

Securities loaned are lending of specific securities to borrowers who agree to return the same amount of the same security at the end of lending period.

(4) Collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties

Fair values of collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Fair values of collaterals		Fair values of collaterals were disposed or re-subjected to lien
Securities		4,106,529		—
	December 31, 2019
	Fair values of collaterals		Fair values of collaterals were disposed or re-subjected to lien
Securities		9,340,517		—

19. OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Prepaid expenses		240,696		135,010
Advance payments		9,029		78,306
Non-operational assets		6,260		—
Others		24,426		20,330
Total		280,411		233,646

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20. FINANCIAL LIABILITIES AT FVTPL

(1) Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Financial instruments at fair value through profit or loss measured at fair value		3,801,375		2,870,676
Financial liabilities at fair value through profit or loss designated as upon initial recognition		16,456		87,626
Total		3,817,831		2,958,302

(2) Financial liabilities at fair value through profit or loss measured at fair value are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Deposits
Gold banking liabilities		45,886		27,530
Borrowings
Securities sold		246,596		—
Derivative liabilities		3,508,893		2,843,146
Total		3,801,375		2,870,676

(3) Financial liabilities at fair value through profit or loss designated as upon initial recognition as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Equity-linked securities
Equity-linked securities in short position		16,456		87,626

Financial liabilities at fair value through profit or loss designated as upon initial recognition are designated in order to eliminate or significantly reduce accounting mismatch arising from recognition or measurement.

(4) There are no accumulated changes in credit risk adjustments to financial liabilities at fair value through profit or loss designated as upon initial recognition.

The adjustment to reflect Group’s credit risk is considered in measuring the fair value of equity-linked securities index. The Group’s credit risk is determined by adjusting credit spread observed in credit rating of Group.

(5) The difference between carrying amount and maturity amount of financial liabilities at fair value through profit or loss designated as upon initial recognition (Financial liabilities designated as at FVTPL) are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Carrying amount		16,456			87,626
Nominal amount at maturity		27,531			97,503
Difference		(11,075	)		(9,877	)

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21. DEPOSITS DUE TO CUSTOMERS

Details of deposits due to customers by type are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Deposits in local currency:
Deposits on demand		11,840,761			8,655,228
Deposits at termination		229,240,105			224,115,771
Mutual installment		27,011			28,574
Deposits on notes payables		2,668,971			2,174,995
Deposits on CMA		145,825			150,300
Certificate of deposits		1,542,872			973,625
Other deposits		1,377,728			1,451,470
Sub-total		246,843,273			237,549,963
Deposits in foreign currencies:
Deposits in foreign currencies		31,753,896			27,143,710
Present value discount		(8,193	)		(8,095	)
Total		278,588,976			264,685,578

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22. BORROWINGS AND DEBENTURES

(1) Details of borrowings are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from The BOK	The BOK		0.3		2,621,920
Borrowings from government funds	Small Enterprise And Market Service and others		0.0 ~ 3.5		2,201,717
Others	The Korea Development Bank and others		0.0 ~ 3.7		6,515,772
Sub-total					11,339,409
Borrowings in foreign currencies (*):
Borrowings in foreign currencies	JPMorgan Chase & Co. and others		(0.4) ~ 7.3		7,941,602
Sub-total					7,941,602
Bills sold	Others		0.0 ~ 0.9		16,315
Call money	Bank and others		(0.3) ~ 2.0		2,567,949
Bonds sold under repurchase agreements	Other financial institutions		(0.5) ~ 10.6		903,583
Present value discount					(365	)
Total					22,768,493

	December 31, 2019
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from The BOK	The BOK		0.5 ~ 0.8		1,770,726
Borrowings from government funds	Small Enterprise And Market Service and others		0.0 ~ 2.8		1,844,798
Others	The Korea Development Bank and others		0.0 ~ 5.0		6,070,201
Sub-total					9,685,725
Borrowings in foreign currencies (*):
Borrowings in foreign currencies	The Export-Import Bank of Korea and others		(0.3) ~ 8.3		8,566,872
Offshore borrowings in foreign currencies	HSBC, HKG		3.0		34,734
Sub-total					8,601,606
Bills sold	Others		0.0 ~ 1.6		9,367
Call money	Bank and others		(0.3) ~ 3.5		133,519
Bonds sold under repurchase agreements	Other financial institutions		1.4 ~ 12.7		569,002
Present value discount					(299	)
Total					18,998,920

(*) Included borrowing in foreign currencies under cash flow hedge amounting to 34,443 million won as of December 31, 2019.

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(2) Details of debentures are as follows (Unit: Korean Won in millions):

	September 30, 2020					December 31, 2019
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.9 ~ 3.1		21,549,754			0.0 ~ 4.3		23,207,600
Subordinated bonds		1.9 ~ 5.9		7,291,791			2.1 ~ 5.9		6,732,687
Other bonds		0.7 ~ 17		1,147,798			1.2 ~ 17.0		942,421
Sub-total				29,989,343					30,882,708
Discounts on bonds				(24,552	)				(24,653	)
Total				29,964,791					30,858,055

(*) Included debentures under fair value hedge amounting to 2,872,198 million won and 3,151,172 million won as of September 30, 2020 and December 31, 2019 respectively. Also, debentures under cash flow hedge amounting to 1,085,986 million won and 829,082 million won are included as of September 30, 2020 and December 31, 2019 respectively.

23. PROVISIONS

(1) Details of provisions are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Asset retirement obligation		69,093		66,485
Provisions for guarantees (*1)		83,205		92,486
Provisions for unused loan commitments		137,103		112,554
Other provisions (*2)		173,797		172,455
Total		463,198		443,980

(*1) Provisions for guarantees includes provision for financial guarantee of 55,257 million won and 62,764 million won as of September 30, 2020 and December 31, 2019, 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 nine-month period ended September 30, 2020
	Stage1			Stage2			Stage3			Total
Beginning balance		50,801			26,303			15,382			92,486
Transfer to 12-month expected credit loss		61			(61	)		—			—
Transfer to expected credit loss for the entire period		(372	)		1,615			(1,243	)		—
Transfer to credit-impaired financial assets		(13	)		(3	)		16			—
Provisions used		—			—			—			—
Net provision (reversal) of unused amount		1,392			(14,823	)		1,239			(12,192	)
Others (*)		2,910			—			1			2,911
Ending balance		54,779			13,031			15,395			83,205

(*) Others have occurred as a result of new financial guarantee contract valued at initial fair value.

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	For the nine-month period ended September 30, 2019
	Stage1			Stage2			Stage3		Total
Beginning balance		44,903			33,760			11,098		89,761
Transfer to 12-month expected credit loss		13,570			(13,570	)		—		—
Transfer to expected credit loss for the entire period		(400	)		400			—		—
Transfer to credit-impaired financial assets		(14	)		(33	)		47		—
Provisions used		(18,190	)		—			—		(18,190	)
Net provision (reversal) of unused amount		(14,240	)		5,322			8,161		(757	)
Others (*)		25,956			2			2		25,960
Ending balance		51,585			25,881			19,308		96,774

(*) Others have occurred as a result of new financial guarantee contract valued at initial fair value.

2) Provisions for unused loan commitment

	For the nine-month period ended September 30, 2020
	Stage1			Stage2			Stage3			Total
Beginning balance		65,038			43,164			4,352			112,554
Transfer to 12-month expected credit loss		6,651			(6,265	)		(386	)		—
Transfer to expected credit loss for the entire period		(1,815	)		2,326			(511	)		—
Transfer to credit-impaired financial assets		(154	)		(283	)		437			—
Net provision (reversal) of unused amount		7,437			15,731			1,384			24,552
Others		(3	)		—			—			(3	)
Ending balance		77,154			54,673			5,276			137,103

	For the nine-month period ended September 30, 2019
	Stage1			Stage2			Stage3			Total
Beginning balance		74,625			45,283			1,627			121,535
Transfer to 12-month expected credit loss		15,979			(15,565	)		(414	)		—
Transfer to expected credit loss for the entire period		(3,047	)		3,188			(141	)		—
Transfer to credit-impaired financial assets		(355	)		(443	)		798			—
Net provision (reversal) of unused amount		(8,739	)		10,365			3,974			5,600
Others		(3,405	)		5,163			(1,652	)		106
Ending balance		75,058			47,991			4,192			127,241

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(3) Changes in asset retirement for the nine-month period ended September 30, 2020 and 2019, obligation are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020			2019
Beginning balance		66,485			67,200
Provisions provided		3,722			2,230
Provisions used		(1,368	)		(2,143	)
Reversal of provisions unused		(94	)		(2,677	)
Unwinding of discount		348			327
Business combination		—			329
Others		—			292
Ending balance		69,093			65,558

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 premises as of September 30, 2020, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each premise’s lease period, and the Group has used average lease period of 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 nine-month period ended September 30, 2020 and 2019, are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020			2019
Beginning balance		172,455			63,637
Provisions provided		171,099			4,118
Provisions used		(170,933	)		(3,777	)
Provision (reversal) of provisions unused		(259	)		(66	)
Foreign currencies translation adjustments		1,520			11
Others		(85	)		2,166
Ending balance		173,797			66,089

(5) Others

1) As of September 23, 2019, the Group temporarily suspended the Won-payment business due to tightened U.S. sanctions on Iran while it was ongoing to settle trade transactions between Korea and Iran. In connection with these services, the Group is currently being investigated by US government agencies including US prosecutors (United States Attorney’s Office and New York State Attorney General’s Office) and Office of Foreign Assets Control as to whether the Group has violated United States laws by participating in prohibited transactions involving the following countries: Iran, Sudan, Syria and Cuba, which have been sanctioned by the US.

2) The Group recognized the provision of the estimated compensation amount related to the miss-selling of the Derivative Linked Fund (DLF) incurred during the previous term and a fine expected to be imposed by the Financial Supervisory Service as the best estimate for the expenditure required to meet its obligations at the end of the reporting period.

3) For the nine-month period ended September 30, 2020, the Group recognized the provisions for the required expenditure as the best estimate to fulfill its obligations as of September 30, 2020 due to the expected losses of clients arising from the delay in the redemption of funds by Lime Asset Management and the dispute settlement by the Financial Supervisory Service.

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24. NET DEFINED BENEFIT LIABILITY(ASSET)

The characteristics of the Group’s defined benefit retirement pension plans are as follows:

Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

Volatility of asset	The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate.
Decrease in profitability of blue chip bonds	A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.
Risk of inflation	Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1) Details of net defined benefit liability are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Present value of defined benefit obligation		1,578,583			1,442,859
Fair value of plan assets		(1,392,539	)		(1,352,971	)
Net defined benefit liabilities (*)		186,044			89,888

(*) Net defined benefit liability of 89,888 million won as of December 31, 2019 is the subtracted amount of the net defined benefit asset of 2,582 million won from the net defined benefit liability of 92,470 million won.

(2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):

		For the nine-month period ended September 30
		2020			2019
Beginning balance			1,442,859			1,275,020
Transfer-in / out			—			93
Current service cost			130,247			122,730
Interest cost			25,184			24,939
Remeasurements	Financial assumption		25,680			76,628
	Demographic assumptions		—			—
	Experience adjustments		1,903			(29,329	)
Retirement benefit paid			(48,622	)		(66,038	)
Foreign currencies translation adjustments			(56	)		236
Others			1,388			(270	)
Ending balance			1,578,583			1,404,009

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(3) Changes in the plan assets are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020			2019
Beginning balance		1,352,971			1,101,911
Transfer-in / out		—			93
Interest income		25,732			23,611
Remeasurements		(5,835	)		(7,568	)
Employer’s contributions		67,809			118,266
Retirement benefit paid		(47,862	)		(65,610	)
Others		(276	)		(193	)
Ending balance		1,392,539			1,170,510

(4) Plan assets consist of fixed deposits and others as of September 30, 2020 and December 31, 2019. Among plan assets, realized returns on plan assets amount to 19,897 million won and 16,043 million won for the nine-month period ended September 30, 2020 and 2019, respectively.

(5) Current service cost, net interest income, loss (gain) on the curtailment or settlement and remeasurements recognized in the consolidated statements comprehensive income are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020			2019
Current service cost		130,247			122,730
Net interest expense (income)		(548	)		1,328
Cost recognized in net income		129,699			124,058
Remeasurements (*)		33,418			54,867
Cost recognized in total comprehensive income		163,117			178,925

(*) Amount before tax

Retirement benefits related to defined contribution plans recognized as expenses are 3,028 million won, and 2,504 million won for the nine-month period ended September 30, 2020 and 2019, respectively.

25. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Other financial liabilities:
Accounts payable		8,059,616			6,131,339
Accrued expenses		1,846,734			2,516,231
Borrowings from trust accounts		3,245,572			3,277,795
Agency business revenue		683,438			362,820
Foreign exchange payables		437,284			1,153,457
Domestic exchange settlement credits		1,283,391			1,261,928
Lease liabilities		404,677			419,045
Other miscellaneous financial liabilities		1,986,875			2,587,193
Present value discount		(5,647	)		(3,041	)
Sub-total		17,941,940			17,706,767
Other liabilities:
Unearned income		233,107			224,840
Other miscellaneous liabilities		226,500			195,631
Sub-total		459,607			420,471
Total		18,401,547			18,127,238

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26. DERIVATIVES

(1) Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):

	September 30, 2020
			Assets						Liabilities
	Nominal amount		For cash flow hedge		For fair value hedge		For trading		For cash flow hedge		For fair value hedge		For trading
Interest rate:
Futures		458,821		—		—		—		—		—		—
Swaps		141,008,845		—		217,225		404,836		2,100		—		624,709
Purchase options		370,000		—		—		10,844		—		—		—
Written options		285,868		—		—		—		—		—		7,983
Currency:
Futures		1,643		—		—		—		—		—		—
Forwards		123,347,349		—		—		1,617,858		—		—		916,409
Swaps		91,507,843		11,355		—		1,375,650		20,939		—		1,220,367
Purchase options		1,749,246		—		—		23,229		—		—		—
Written options		2,593,852		—		—		—		—		—		17,704
Equity:
Futures		429,538		—		—		—		—		—		—
Forwards		11		—		—		—		—		—		—
Swaps		670,587		—		—		30,319		—		—		7,946
Purchase options		11,076,092		—		—		565,008		—		—		—
Written options		11,741,739		—		—		—		—		—		713,775
Total		385,241,434		11,355		217,225		4,027,744		23,039		—		3,508,893

	December 31, 2019
			Assets						Liabilities
	Nominal amount		For cash flow hedge		For fair value hedge		For trading		For cash flow hedge		For fair value hedge		For trading
Interest rate:
Futures		124,737		—		—		—		—		—		—
Swaps		150,731,987		—		111,764		300,750		1,323		—		413,195
Purchase options		460,000		—		—		11,888		—		—		—
Written options		395,789		—		—		—		—		—		9,655
Currency:
Futures		1,934		—		—		—		—		—		—
Forwards		113,988,295		—		—		1,447,811		321		—		1,030,246
Swaps		82,125,050		9,367		—		966,181		5,193		—		1,106,423
Purchase options		1,588,746		—		—		18,835		—		—		—
Written options		2,341,179		—		—		—		—		—		9,403
Equity:
Futures		630,562		—		—		—		—		—		—
Forwards		11		—		—		—		—		—		—
Swaps		1,280,436		—		—		1,217		—		—		54,393
Purchase options		8,851,984		—		—		175,221		—		—		—
Written options		8,978,953		—		—		—		—		—		219,831
Total		371,499,663		9,367		111,764		2,921,903		6,837		—		2,843,146

Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 20), and derivatives designated for hedging are presented as a separate line item in the consolidated statements of financial position.

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(2) Overview of the Group’s hedge accounting

The hedging relationships the entity applies fair value hedge accounting and cash flow hedge accounting to are affected by interest rate which is related with Interest Rate Benchmark Reform. The interest rates to which the hedging relationships are exposed are USD 1M LIBOR, USD 3M LIBOR, and USD 6M LIBOR. The nominal amounts of hedging instruments related to USD 1M LIBOR, USD 3M LIBOR, and USD 6M LIBOR in the hedging relationships of the Group are USD 620,000,000, USD 2,230,000,000, and USD 500,000,000, respectively. The entity pays close attention to discussions in the market and industry regarding the applicable alternative benchmark interest rates for the exposed interest rate. The entity judges related uncertainty is expected to be no longer present when the exposed interest rates are replaced by the applicable benchmark interest rates.

1) Fair value hedge

As of the September 30, 2020, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 2,872,198 million won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign 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 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 USD Libor 3M (6M) 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.

2) Cash Flow Hedge

As of the September 30, 2020, the Group has applied cash flow hedge on local currency denominated debentures amounting to 149,925 million won, debentures on foreign currency amounting to 936,061 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 by entering into a currency swap contract and thereby designating it as hedging instrument 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.

- 91 -

This means 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, which results in the conversion of interest rates of debentures in local currency from variable interest into fixed interest, eliminating the cash flow fluctuation 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 SGD, 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 risk, which is the most significant factor in the cash flow fluctuation of the hedged item, is addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging.

Thus, there could be hedge ineffectiveness arising 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 of the derivative. The Group expects that the value of interest rate swap contract, currency swap contract and value of the hedged item will generally fluctuate in opposite direction.

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(3) The nominal amounts of the hedging instrument are as follows (Unit: USD, EUR, SGD, JPY and Korean Won in millions):

	September 30, 2020
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swap (USD)		1,000,000,000		1,000,000,000		300,000,000		2,300,000,000
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		—		150,000		—		150,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		205,000,000		470,000,000		—		675,000,000
Foreign currencies translation risk
Currency swap (SGD)		170,000,000		—		—		170,000,000

	December 31, 2019
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swap (USD)		350,000,000		2,000,000,000		300,000,000		2,650,000,000
Cash flow hedge
Interest rate risk
Interest rate swap (EUR)		—		26,635,556		—		26,635,556
Interest rate swap (KRW)		—		100,000		—		100,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		150,000,000		330,000,000		—		480,000,000
Foreign currencies translation risk
Currency swap (SGD)		136,000,000		68,000,000		—		204,000,000
Currency forward (JPY)		49,325,155		1,059,903,932		—		1,109,229,087

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(4) The average interest rate and average currency rate of the hedging instrument as of September 30, 2020 and December 31, 2019 are as follows:

	September 30, 2020
	Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)	Fixed 4.22% receipt and Libor 3M+1.71% floating paid Fixed 5.88% receipt and Libor 6M+2.15% floating paid
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)	KRW 3Y CMS+0.40% receipt, 2.38% paid KRW CD+0.69% receipt, 2.06% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)	USD 3M Libor+0.80% receipt, KRW 1.45% paid, USD/KRW = 1,155 USD 1M Libor+0.67% receipt, KRW 1.14% paid, USD/KRW = 1,190
Foreign currencies translation risk
Currency swap (SGD)	SGD 1.91% receipt, KRW 1.98% paid, SGD/KRW = 827.57

	December 31, 2019
	Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)	Fixed 3.96% receipt and Libor 3M+1.61% floating paid Fixed 5.88% receipt and Libor 6M+2.15% floating paid
Cash flow hedge
Interest rate risk
Interest rate swap (EUR)	3M EURIBOR receipt, EUR 0.09% paid
Interest rate swap (KRW)	KRW 3Y CMS+0.40% receipt, 2.38% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)	USD 3M Libor+0.8% receipt, KRW 1.45% paid, KRW/USD = 1,155 USD 1M Libor+0.54% receipt, KRW 1.53% paid, KRW/USD = 1,158
Foreign currencies translation risk
Currency swap (SGD)	SGD 1.91% receipt, KRW 1.98% paid, KRW/SGD = 828
Currency forward (JPY)	KRW/JPY = 10.47

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(5) The amounts related to items designated as hedging instruments are as follows (Unit: Korean Won in millions, USD, EUR, SGD and JPY):

	September 30, 2020
	Nominal amounts of the hedging instrument		Carrying amounts 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
			Assets		Liabilities
Fair value hedge
Interest rate risk
Interest rate swap		USD 2,300,000,000		217,225		—	Derivative assets (designated for hedging)		90,725
Cash flow hedge
Interest rate risk
Interest rate swap		KRW 150,000		—		2,100	Derivative assets (designated for hedging)		(820	)
Foreign currency translation risk and interest rate risk
Currency swap		USD 675,000,000		6,637		20,939	Derivative assets (designated for hedging) Derivative liabilities (designated for hedging)		(15,027	)
Foreign currency translation risk
Currency swap		SGD 170,000,000		4,718		—	Derivative assets (designated for hedging)		(877	)
	December 31, 2019
	Nominal amounts of the hedging instrument		Carrying amounts 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
			Assets		Liabilities
Fair value hedge
Interest rate risk
Interest rate swap		USD 2,650,000,000		111,764		—	Derivative assets (designated for hedging)		90,244
Cash flow hedge
Interest rate risk
Interest rate swap		EUR 26,635,556		—		43	Derivative liabilities (designated for hedging)		(43	)
Interest rate swap		KRW 100,000		—		1,280	Derivative liabilities (designated for hedging)		(615	)
Foreign currency translation risk and interest rate risk
Currency swap		USD 480,000,000		4,070		5,193	Derivative assets (designated for hedging) Derivative liabilities (designated for hedging)		22,364
Foreign currency translation risk
Currency swap		SGD 204,000,000		5,297		—	Derivative assets (designated for hedging)		8,918
Currency forward		JPY 1,109,229,087		—		321	Derivative liabilities (designated for hedging)		321

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(6) Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Carrying amounts 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			Cash flow hedge reserve (*)
	Assets		Liabilities		Assets		Liabilities
Fair value hedge
Interest rate risk
Debentures		—		2,872,198		—		179,095		Debentures		(86,695	)		—
Cash flow hedge
Interest rate risk
Debentures		—		149,925		—		—		Debentures		3,314			(1,361	)
Foreign currencies translation risk and interest rate risk
Debentures		—		790,778		—		—		Debentures		11,437			(7,460	)
Foreign currencies translation risk
Debentures		—		145,283		—		—		Debentures		1,342			(1,436	)

(*) After tax amount

	December 31, 2019
	Carrying amounts 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			Cash flow hedge reserve (*)
	Assets		Liabilities		Assets		Liabilities
Fair value hedge
Interest rate risk
Debentures		—		3,151,172		—		91,368		Debentures		(85,984	)		—
Cash flow hedge
Interest rate risk
Borrowings in foreign currencies		—		34,443		—		—		Borrowing foreign currency		43			(43	)
Debentures		—		99,941		—		—		Debentures		663			(821	)
Foreign currencies translation risk and interest rate risk
Debentures		—		554,433		—		—		Debentures		(25,057	)		(2,525	)
Foreign currencies translation risk Debentures		—		174,708		—		—		Debentures		(8,315	)		(2,304	)

(*) After tax amount

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(7) Amounts recognized in profit or loss due to the ineffective portion of fair value hedges during the current period are as follows (Unit: Korean Won in millions):

		For the nine-month period ended September 30, 2020
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss that includes hedge ineffectiveness
Fair value hedge	Interest rate risk		4,030	Other net operating     income(expense)

		For the nine-month period ended September 30, 2019
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss that includes hedge ineffectiveness
Fair value hedge	Interest rate risk		3,062	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 nine-month period ended September 30, 2020
		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		(703	)		(74	)		—	Other net operating income (expense)		(43	)	Other net operating income (expense)
	Foreign currencies translation risk and interest rate risk		(16,212	)		84			1,849	Other net operating income (expense)		9,304		Other net operating income (expense)
	Foreign currencies translation risk		(228	)		151			298	Other net operating income (expense)		797		Other net operating income (expense)
		For the nine-month period ended September 30, 2019
		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		(1,058	)		—			—	Other net operating income (expense)		—		Other net operating income (expense)
	Foreign currencies translation risk and interest rate risk		41,873			65			42	Other net operating income (expense)		(4,308	)	Other net operating income (expense)
	Foreign currencies translation risk		10,506			(874	)		158	Other net operating income (expense)		(1,051	)	Other net operating income (expense)

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27. DEFERRED DAY 1 PROFITS OR LOSSES

Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020			2019
Beginning balance		52,260			25,463
New transactions		26,267			52,561
Amounts recognized in losses		(57,572	)		(23,350	)
Ending balance		20,955			54,674

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded the transaction price as at the time of acquisition, even though there are difference noted between the transaction price and the fair value, which is deferred and amortized to maturity using the effective interest method and reflected in profit and loss. The table above presents the difference yet to be realized as profit or losses.

28. EQUITY

(1) Details of equity as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Capital
Common stock capital		3,611,338			3,611,338
Hybrid securities		1,695,821			997,544
Capital surplus
Paid in capital in excess of par		608,348			608,348
Equity method		763			1,153
Others		18,385			16,794
Sub-total		627,496			626,295
Capital adjustments
Treasury stocks		—			—
Other adjustments (*1)		(1,775,066	)		(1,748,667	)
Sub-total		(1,775,066	)		(1,748,667	)
Accumulated other comprehensive income
Financial assets at FVTOCI		(48,602	)		(71,914	)
Changes in capital due to equity method		(3,410	)		915
Loss from foreign business translation		(166,657	)		(152,987	)
Remeasurements of defined benefit plan		(295,229	)		(270,977	)
Loss on evaluation of cash flow hedge		(10,256	)		(5,692	)
Capital related to noncurrent assets held for sale		1,691			—
Sub-total		(522,463	)		(500,655	)
Retained earnings (*2) (*3)		19,116,037			18,524,515
Non-controlling interest (*4)		3,455,587			3,981,962
Total		26,208,750			25,492,332

(*1) Included capital transaction gains and losses recognized by the 2014 merger of Woori Bank and, formerly, Woori Financial Group Inc. During the previous term, the Group entered an agreement to acquire additional interest in the Woori Asset Trust Co., Ltd., and the capital adjustment reduced by 111,242 million won.

(*2) The earned surplus reserve in retained earnings amounted to 2,547,547 million won and 2,356,246 million won as of September 30, 2020 and December 31, 2019, respectively in accordance with the relevant article.

(*3) The regulatory reserve for credit loss in retained earnings amounted to 62,830 million won as of September 30, 2020 in accordance with the Article 53 of the Financial Holding Company Act.

(*4) The hybrid securities issued by Woori Bank amounting to 3,105,070 million won and 3,660,814 million won as of September 30, 2020 and December 31, 2019, respectively, are recognized as non-controlling interests. 118,659 million won and 118,614 million won of dividends for the hybrid securities are allocated to net profit and loss of the non-controlling interests for the nine-month period ended September 30, 2020 and 2019, respectively.

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(2) The number of authorized shares and others of the Group are as follows:

	September 30, 2020		December 31, 2019
Shares of common stock authorized		4,000,000,000 Shares		4,000,000,000 Shares
Par value		5,000 Won		5,000 Won
Shares of common stock issued		722,267,683 Shares		722,267,683 Shares
Capital stock		3,611,338 million won		3,611,338 million won

(3) Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):

	Issue date		Maturity	Interest rate (%)		September 30, 2020			December 31, 2019
Securities in local currency		2019-07-18	—		3.49		500,000			500,000
Securities in local currency		2019-10-11	—		3.32		500,000			500,000
Securities in local currency		2020-02-06	—		3.34		400,000			—
Securities in local currency		2020-06-12	—		3.23		300,000			—
Issuance cost							(4,179	)		(2,456	)
Total							1,695,821			997,544

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date of issuance.

(4) Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Classified as held-for-sale			Income tax effect			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		(71,914	)		53,778			(20,083	)		—			(10,383	)		(48,602	)
Changes in capital due to equity method		915			(4,275	)		—			(1,691	)		1,641			(3,410	)
Gain (loss) on foreign currency translation of foreign operations		(152,987	)		(13,841	)		—			—			171			(166,657	)
Remeasurement gain (loss) related to defined benefit plan		(270,977	)		(33,451	)		—			—			9,199			(295,229	)
Gain (loss) on valuation of derivatives designated as cash flow hedges		(5,692	)		(4,892	)		—			—			328			(10,256	)
Capital related to noncurrent assets held for sale		—			—			—			1,691			—			1,691
Total		(500,655	)		(2,681	)		(20,083	)		—			956			(522,463	)

(*) The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive income is a change due to the period evaluation and the reclassification adjustments amounting to 2,665 million won are due to disposal of equity securities during the period.

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	For the nine-month period ended September 30, 2019
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		(87,182	)		53,379			687			(13,642	)		(46,758	)
Changes in capital due to equity method		302			(924	)		—			497			(125	)
Gain (loss) on foreign currency translation of foreign operations		(244,735	)		167,220			—			(9,454	)		(86,969	)
Remeasurement gain (loss) related to defined benefit plan		(236,726	)		(53,455	)		—			13,723			(276,458	)
Gain (loss) on valuation of derivatives designated as cash flow hedges		(3,869	)		13,141			(14,030	)		(489	)		(5,247	)
Total		(572,210	)		179,361			(13,343	)		(9,365	)		(415,557	)

(*) The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive income is a change due to the period evaluation and the reclassification adjustments amounting to 26,719 million won are due to disposal of equity securities during the period.

(5) Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Group calculates and discloses the regulatory reserve for credit loss.

1) Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Beginning balance		2,547,547		2,356,246
Planned provision of regulatory reserve (reversal) for credit loss		64,029		191,301
Ending balance		2,611,576		2,547,547

2) Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

	Periods ended September 30, 2020						Periods ended September 30, 2019
	Three-month			Nine-month			Three-month			Nine-month
Net income before regulatory reserve		521,715			1,295,748			534,108			1,806,071
Provision of regulatory reserve (reversal) for credit loss		76,265			64,029			81,367			200,612
Adjusted net income after the provision of regulatory reserve		445,450			1,231,719			452,741			1,605,459
Dividends to hybrid securities		(14,275	)		(34,640	)		(3,571	)		(3,571	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		431,175			1,197,079			449,170			1,601,888
Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)		596			1,657			659			2,370

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29. DIVIDENDS

Dividends per share and the total dividends for the fiscal year ending December 31, 2019 were 700 Won and 505,587 million won, respectively, and the dividends were approved at the regular general shareholders’ meeting held on March 25, 2020.

30. NET INTEREST INCOME

(1) Interest income recognized is as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three-month		Nine-month		Three-month		Nine-month
Financial assets at FVTPL		12,908		39,118		13,970		41,875
Financial assets at FVTOCI		103,380		344,380		135,081		344,183
Financial assets at amortized cost:
Securities at amortized cost		92,613		294,673		107,421		332,617
Loans and other financial assets at amortized cost:
Interest on due from banks		10,479		43,214		31,309		97,617
Interest on loans		2,046,402		6,444,651		2,396,154		7,130,354
Interest of other receivables		6,652		22,401		7,580		22,561
Subtotal		2,063,533		6,510,266		2,435,043		7,250,532
Total		2,272,434		7,188,437		2,691,515		7,969,207

(2) Details of interest expense recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three-month		Nine-month		Three-month		Nine-month
Interest on deposits due to customers		555,484		1,968,985		875,992		2,592,803
Interest on borrowings		56,860		222,446		104,069		297,194
Interest on debentures		164,712		531,904		199,124		582,939
Other interest expense		5,890		29,484		24,114		73,092
Interest on lease liabilities		2,049		7,330		2,418		6,329
Total		784,995		2,760,149		1,205,717		3,552,357

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31. NET FEES AND COMMISSIONS INCOME

(1) Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three-month		Nine-month		Three-month		Nine-month
Fees and commission received for brokerage		40,617		121,753		40,825		123,385
Fees and commission received related to credit		46,243		143,146		46,054		130,682
Fees and commission received for electronic finance		31,905		93,669		35,098		102,594
Fees and commission received on foreign exchange handling		14,185		41,982		15,694		45,769
Fees and commission received on foreign exchange		18,622		50,656		20,887		69,104
Fees and commission received for guarantee		17,847		54,914		18,841		53,881
Fees and commission received on credit card		128,884		378,151		138,678		407,198
Fees and commission received on securities business		20,778		59,674		29,955		95,555
Fees and commission from trust management		34,813		121,105		43,073		132,918
Fees and commission received on credit information		3,298		10,492		3,169		9,522
Other fees		41,818		131,461		34,434		104,341
Total		399,010		1,207,003		426,708		1,274,949

(2) Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three-month		Nine-month		Three-month		Nine-month
Fees and commissions paid		57,521		150,926		39,987		122,893
Credit card commission		106,910		318,694		103,576		303,919
Brokerage commission		159		376		167		648
Others		1,720		5,958		2,324		6,745
Total		166,310		475,954		146,054		434,205

32. DIVIDEND INCOME

(1) Details of dividend income recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three-month		Nine-month		Three-month		Nine-month
Dividend income related to financial assets at FVTPL		25,510		82,063		18,229		65,326
Dividend income related to financial assets at FVTOCI		2,628		17,077		1,744		19,230
Total		28,138		99,140		19,973		84,556

(2) Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three- month		Nine- month		Three- month		Nine- month
Dividend income recognized from assets held:
Equity securities		2,628		17,077		1,744		19,230

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33. NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE

(1) Details of gains or losses related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020					Periods ended September 30, 2019
	Three-month			Nine-month		Three-month		Nine-month
Gain on financial instruments at fair value through profit or loss measured at fair value		134,622			527,790		18,354		128,730
Gain (loss) on financial instruments at fair value through profit or loss designated as upon initial recognition		(4,280	)		4,141		3,173		(27,122	)
Total		130,342			531,931		21,527		101,608

(2) Details of net gain or loss on financial instruments at fair value through profit or loss measured at fair value and financial instruments held for trading are as follows (Unit: Korean Won in millions):

			Periods ended September 30, 2020						Periods ended September 30, 2019
			Three-month			Nine-month			Three-month			Nine-month
Financial assets at FVTPL	Securities	Gain on transactions and valuation		36,230			133,432			36,324			137,405
		Loss on transactions and valuation		2,851			(68,367	)		(23,643	)		(59,228	)
		Sub-total		39,081			65,065			12,681			78,177
	Loans	Gain on transactions and valuation		133			1,863			566			1,508
		Loss on transactions and valuation		12			(850	)		10			(15	)
		Sub-total		145			1,013			576			1,493
	Other financial assets	Gain on transactions and valuation		2,921			7,426			1,682			2,958
		Loss on transactions and valuation		(3,103	)		(7,298	)		(1,532	)		(2,650	)
		Sub-total		(182	)		128			150			308
Sub-total				39,044			66,206			13,407			79,978
Derivatives (Held for trading)	Interest rates derivatives	Gain on transactions and valuation		538,619			1,525,179			578,660			1,273,068
		Loss on transactions and valuation		(519,081	)		(1,839,640	)		(616,635	)		(1,462,035	)
		Sub-total		19,538			(314,461	)		(37,975	)		(188,967	)
	Currency derivatives	Gain on transactions and valuation		659,344			6,860,252			3,113,284			7,297,751
		Loss on transactions and valuation		(592,399	)		(6,090,197	)		(3,079,971	)		(7,099,135	)
		Sub-total		66,945			770,055			33,313			198,616
	Equity derivatives	Gain on transactions and valuation		219,449			1,326,986			140,614			562,475
		Loss on transactions and valuation		(210,328	)		(1,320,607	)		(130,842	)		(522,854	)
		Sub-total		9,121			6,379			9,772			39,621
	Other derivatives	Gain on transactions and valuation		—			—			51			690
		Loss on transactions and valuation		(26	)		(389	)		(214	)		(1,208	)
		Sub-total		(26	)		(389	)		(163	)		(518	)
Sub-total				95,578			461,584			4,947			48,752
Net, total				134,622			527,790			18,354			128,730

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(3) Details of net gain (loss) on financial instruments at fair value through profit or loss designated as upon initial recognition and Losses on financial instruments designated as at fair value through profit or loss are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020					Periods ended September 30, 2019
	Three-month			Nine-month		Three-month		Nine-month
Gain (loss) on equity-linked securities		(4,280	)		4,141		3,173		(27,122	)

34. NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in millions) :

	Periods ended September 30, 2020						Periods ended September 30, 2019
	Three-month			Nine-month			Three-month			Nine-month
Gain on redemption of securities		(14	)		(88	)		(9	)		28
Gain on transactions of securities		7,664			18,765			4,600			8,008
Total		7,650			18,677			4,591			8,036

35. REVERSAL OF (PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Reversal of (provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020						Periods ended September 30, 2019
	Three-month			Nine-month			Three-month			Nine-month
Impairment loss due to credit loss on financial assets measured at FVTOCI		(643	)		(1,425	)		(1,465	)		(3,444	)
Reversal of impairment loss due to credit loss on securities at amortized cost		169			122			151			920
Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost		(150,990	)		(573,057	)		(193,799	)		(316,388	)
Reversal of provision on guarantee		16,164			12,192			8,897			757
Provision for unused loan commitment		(4,741	)		(24,552	)		(993	)		(5,600	)
Total		(140,041	)		(586,720	)		(187,209	)		(323,755	)

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36. GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME (EXPENSES)

(1) Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

			Periods ended September 30, 2020				Periods ended September 30, 2019
			Three-month		Nine-month		Three-month		Nine-month
Employee benefits	Short-term employee benefits	Salaries		383,963		1,154,277		372,794		1,090,636
		Employee fringe benefits		128,017		376,478		111,065		341,538
	Share based payment			1,187		3,502		1,190		4,854
	Retirement benefit service costs			44,520		132,727		42,030		126,562
	Termination			69		290		428		7,994
		Subtotal		557,756		1,667,274		527,507		1,571,584
Depreciation and amortization				128,574		387,538		131,407		346,149
Other general and administrative expenses	Rent			22,106		57,278		17,224		78,009
	Taxes and public dues			26,220		100,488		38,782		112,545
	Service charges			61,610		178,234		58,580		170,779
	Computer and IT related			28,049		80,888		24,447		67,754
	Telephone and communication			17,233		52,324		18,556		51,641
	Operating promotion			10,744		31,462		11,791		31,173
	Advertising			18,417		46,828		19,955		50,145
	Printing			1,560		4,936		1,766		5,611
	Traveling			1,745		5,443		3,339		9,620
	Supplies			1,932		8,839		1,858		5,207
	Insurance premium			2,116		7,667		2,509		6,752
	Reimbursement			3,877		8,732		5,386		11,765
	Maintenance			5,095		13,089		4,403		13,335
	Water, light, and heating			3,980		11,620		4,114		11,611
	Vehicle maintenance			2,686		7,507		2,781		7,658
	Others			5,362		18,473		6,086		24,939
		Sub-total		212,732		633,808		221,577		658,544
	Total			899,062		2,688,620		880,491		2,576,277

(2) Details of other operating income recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020					Periods ended September 30, 2019
	Three-month			Nine-month		Three-month		Nine-month
Gain on transactions of foreign exchange		127,787			396,938		230,782		477,913
Gain related to derivatives (Designated for hedging)		(29,816	)		102,540		50,973		169,127
Gain on fair value hedged items		4,767			4,767		—		—
Others		11,279			44,033		5,655		41,747
Total		114,017			548,278		287,410		688,787

(3) Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020					Periods ended September 30, 2019
	Three-month			Nine-month		Three-month		Nine-month
Losses on transactions of foreign exchange		92,805			557,345		158,005		263,336
KDIC deposit insurance premium		94,054			274,584		84,437		246,156
Contribution to miscellaneous funds		85,046			242,015		81,055		237,114
Losses related to derivatives (Designated for hedging)		11,422			20,746		366		1,890
Losses on fair value hedged items		(16,840	)		91,251		22,154		112,352
Others (*)		27,193			88,643		31,434		109,105
Total		293,680			1,274,584		377,451		969,953

(*) Other expense includes such expenses amounting to 9,363 million won and 16,211 million won, respectively, of intangible asset amortization expense for the nine-month period ended September 30, 2020 and 2019, respectively.

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(4) Share-based payment

Details of performance condition share-based payment granted to executives as of September 30, 2020 and December 31, 2019 are as follows.

1) Performance condition share-based payment

Subject to		Shares granted for the year 2019
Type of payment		Cash-settled
Vesting period		January 1, 2019 ~ December 31, 2022
Date of payment		2023-01-01
Fair value (*1)		7,724 Won
Valuation method		Black-Scholes Model
Expected dividend rate		4.13%
Expected maturity date		2.25 years
Number of shares remaining	As of September 30, 2020	602,474 shares
	As of December 31, 2019	602,474 shares
Number of shares granted (*2)	As of September 30, 2020	602,474 shares
	As of December 31, 2019	602,474 shares
Subject to		Shares granted for the year 2020
Type of payment		Cash-settled
Vesting period		January 1, 2020 ~ December 31, 2023
Date of payment		2024-01-01
Fair value (*1)		7,412 Won
Valuation method		Black-Scholes Model
Expected dividend rate		4.13%
Expected maturity date		3.25 years
Number of shares remaining	As of September 30, 2020	698,428 shares
	As of December 31, 2019	—
Number of shares granted (*2)	As of September 30, 2020	698,428 shares
	As of December 31, 2019	—

(*1) As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated and used to measure the liability according to the Black Shawls model based on the base price at the time of each settlement.

(*2) It is a system in which the amount of stock payable is determined at the beginning, and the payment rate is determined in accordance with the degree of achievement of the pre-set performance target. Performance is evaluated by long-term performance indicators such as relative shareholder return, net profit, return on equity (ROE), non-performing loan ratio, and job performance.

2) The Group accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of September 30, 2020 and December 31, 2019, the book value of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 9,830 million won and 6,328 million won, respectively.

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37. NON-OPERATING INCOME (EXPENSES)

(1) Details of gains or losses on valuation of investments in joint ventures and associates are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020						Periods ended September 30, 2019
	Three-month			Nine-month			Three-month			Nine-month
Gains on valuation of investments in joint ventures and associates		15,226			50,909			13,723			33,022
Losses on valuation of investments in joint ventures and associates		(5,243	)		(16,974	)		(3,620	)		(12,062	)
Total		9,983			33,935			10,103			20,960

(2) Details of other non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020						Periods ended September 30, 2019
	Three-month			Nine-month			Three-month			Nine-month
Other non-operating incomes		2,801			39,915			7,590			54,526
Other non-operating expenses		(11,964	)		(211,779	)		(6,714	)		(46,837	)
Total		(9,163	)		(171,864	)		876			7,689

(3) Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020					Periods ended September 30, 2019
	Three-month			Nine-month		Three-month			Nine-month
Rental fee income		2,367			9,944		3,308			6,750
Gains on disposal of premises and equipment, intangible assets and other assets		(26	)		6,549		72			1,375
Reversal of impairment loss of premises and equipment, intangible assets and other assets		32			87		(677	)		45
Others		428			23,335		4,887			46,356
Total		2,801			39,915		7,590			54,526

(4) Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):

	Periods ended September 30, 2020				Periods ended September 30, 2019
	Three-month		Nine-month		Three-month			Nine-month
Depreciation on investment properties		725		1,812		468			1,766
Operating expenses on investment properties		199		581		216			578
Losses on disposal of premises and equipment, intangible assets and other assets		916		1,736		358			1,606
Impairment losses of premises and equipment, intangible assets and other assets		175		8,429		(258	)		1,422
Donation		7,118		18,423		1,760			25,729
Others (*)		2,831		180,798		4,170			15,736
Total		11,964		211,779		6,714			46,837

(*) Included 165,015 million won of other special losses related to other provisions for the nine-month period ended September 30,2020.

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38. INCOME TAX EXPENSE

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

	For the nine-month period ended September 30
	2020			2019
Current tax expense:
Current tax expense with respect to the current period		292,519			498,849
Adjustments recognized in the current period in relation to the tax expense of prior periods		(34,461	)		(52,942	)
Sub-total		258,058			445,907
Deferred tax expense
Change in deferred tax assets (liabilities) due to temporary differences		155,067			155,739
Income tax expense directly attributable to equity		956			(9,365	)
Sub-total		156,023			146,374
Income tax expense		414,081			592,281

Income tax expense (income) was recognized based on the estimate of the best weighted average annual effective tax rate expected for the interim period. The weighted average annual effective tax rate for the September 30, 2020, is 24.2% (The weighted average annual effective tax rate for the September 30, 2019, is 24.7%).

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39. EARNINGS PER SHARE (“EPS”)

(1) Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

	Periods ended September 30, 2020						Periods ended September 30, 2019
	Three-month			Nine-month			Three-month			Nine-month
Net income attributable to common shareholders		480,200			1,140,764			486,009			1,665,697
Dividends to hybrid securities		(14,275	)		(34,640	)		(3,571	)		(3,571	)
Net income attributable to common shareholders		465,925			1,106,124			482,438			1,662,126
Weighted average number of common shares outstanding		722 shares in million			722 shares in million			682 Shares in million			676 Shares in million
Basic EPS (Unit: Korean Won)		645			1,532			708			2,459

(2) The weighted average number of common shares outstanding is as follows: (Unit: number of shares, days)

	For the nine-month period ended September 30, 2020
	Period		Number of shares			Dates (Unit: Day)		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		2020-01-01 ~ 2020-09-30		722,267,683			274		197,901,345,142
Treasury stock		2020-01-01 ~ 2020-09-30		(2	)		274		(548	)
Sub-total (①)									197,901,344,594
Weighted average number of common shares outstanding (②=(①/274)									722,267,681

	For the nine-month period ended September 30, 2019
	Period		Number of shares			Dates (Unit: Day)		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		2019-01-01 ~ 2019-09-30		673,271,226			273		183,803,044,698
Purchase of treasury stock		2019-01-08 ~ 2019-09-30		(11,453,702	)		266		(3,046,684,732	)
Disposal of treasury stock		2019-03-22 ~ 2019-09-30		18,346,782			193		3,540,928,926
Disposal of treasury stock (*)		2019-09-26 ~ 2019-09-30		28,890,707			5		144,453,535
Sub-total (①)									184,441,742,427
Weighted average number of common shares outstanding (②=(①/273)									675,610,778

(*) In September 2019, Woori Bank disposed of 28,890,707 shares out of 42,103,377 shares acquired through comprehensive exchange of shares in Woori Card Co., Ltd. and its parent company Woori Financial Group Inc.

Diluted EPS is equal to basic EPS because there is no dilution effect for the nine-month period ended September 30, 2020 and 2019.

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40. CONTINGENT LIABILITIES AND COMMITMENTS

(1) Details of guarantees are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Confirmed guarantees
Guarantee for loans		79,141		89,699
Acceptances		624,485		391,688
Guarantees in acceptances of imported goods		77,433		224,746
Other confirmed guarantees		6,821,763		6,982,889
Sub-total		7,602,822		7,689,022
Unconfirmed guarantees
Local letters of credit		198,157		193,096
Letters of credit		2,393,460		3,081,390
Other unconfirmed guarantees		488,463		771,378
Sub-total		3,080,080		4,045,864
Commercial paper purchase commitments and others		892,457		884,031
Total		11,575,359		12,618,917

(2) Details of unused loan commitments and others are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Loan commitments		110,958,256		103,651,674
Other commitments (*)		7,947,547		5,993,608

(*) As of September 30, 2020 and December 31, 2019, the amount of unsecured bills (purchase note sales) and discounts on electronic short-term bond sales (purchase) are 3,313,432 million won and 2,582,274 million won, respectively.

(3) Litigation case

Legal cases where the Group is involved are as follows (Unit: Korean Won in millions):

	September 30, 2020				December 31, 2019
	As plaintiff		As defendant		As plaintiff		As defendant
Number of cases (*)		103 cases		443 cases		119 cases		415 cases
Amount of litigation		284,624		437,575		291,880		391,362
Provisions for litigations		25,408				27,029

(*) The number of lawsuits as of September 30, 2020 and December 31, 2019 do not include fraud lawsuits, etc. and those lawsuits that are filed only to extend the statute of limitation.

(4) Other commitments

The Group decided to enter into a stock sales agreement with a major shareholder of Woori Asset Trust Co., Ltd. (formerly, Kukje Asset Trust Co., Ltd.) to acquire 44.5% of interest (58.6% of voting rights) in July, 2019, and to acquire additional 21.3% of interest (28.0% of voting rights) after a certain period. As a result, the Group acquired the interest of the first sales agreement in December 2019 and is planning to acquire the interest of the second sales agreement after a certain period. In regard to this acquisition, the Group recognized 112,663 million won as other financial liabilities for the second sales agreement.

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41. RELATED PARTY TRANSACTIONS

Related parties of the Group as of September 30, 2020 and December 31, 2019, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the nine-month period ended September 30, 2020 and 2019 are as follows:

(1) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

Related parties		Account title	September 30, 2020			December 31, 2019
Associates	W Service Networks Co., Ltd.	Loans		50			23
		Loss allowance		—			(1	)
		Deposits due to customers		2,572			1,881
		Accrued expenses		6			6
		Other liabilities		464			429
	Korea Credit Bureau Co., Ltd.	Loans		1			3
		Deposits due to customers		1,599			26
		Other liabilities		3			—
	Korea Finance Security Co., Ltd.	Loans		3,942			1,860
		Loss allowance		(9	)		(3	)
		Deposits due to customers		1,063			1,371
	Chin Hung International Inc.	Loans		283			244
		Loss allowance		(3	)		(2	)
		Deposits due to customers		6,602			5,381
		Other liabilities		423			321
	LOTTE CARD Co. Ltd.	Loans		7,500			7,500
		Loss allowance		(94	)		(30	)
		Other assets		10			—
		Deposits due to customers		54,262			2,726
		Other liabilities		54			—
	K BANK Co., Ltd.	Loans		179			141
		Account receivables		64			24
		Other assets		—			4
	Well to Sea No.3 Private Equity Fund	Loans		72,050			4,490
		Loss allowance		(80	)		(8	)
		Deposits due to customers		2,199			714
		Other liabilities		86			47
	Others (*1) (*2)	Loans		—			84
		Loss allowance		—			(84	)
		Other assets		840			338
		Deposits due to customers		5,459			5,577
		Other liabilities		168			172

(*1) Others include Saman Corporation, Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Woori-Q Corporate Restructuring Private Equity Fund, Woori High plus G.B. Securities Feeder Fund1(G.B.), Uri Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private Equity Fund 2, Partner One Value Up I Private Equity Fund and etc., as of September 30, 2020.

(*2) Others include Saman Corporation, Woori-Shinyoung Growth-Cap Private Equity Fund, Uri Hanhwa Eureka Private Equity Fund, Kyesan Engineering Co., Ltd. and DAEA SNC Co., Ltd. and etc., as of December 31, 2019.

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(2) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

			For the nine-month period September 30
Related parties		Account title	2020			2019
Associates	W Service Network Co., Ltd.	Other income		24			24
		Interest expenses		12			15
		Fees expenses		373			337
		Reversal of allowance for credit loss		(3	)		(1	)
		Other expenses		1,555			1,004
	Korea Credit Bureau Co., Ltd.	Interest expenses		3			29
		Fees expenses		2,357			1,880
	Korea Finance Security Co., Ltd.	Interest income		52			—
		Interest expenses		2			8
		Provisions for allowance for credit loss		6			1
		Other expenses		69			87
	Chin Hung International Inc	Interest expenses		15			24
		Provisions for allowance for credit loss		107			32
	LOTTE CARD Co., Ltd.	Interest income		215			—
		Fees income		2,580			—
		Interest expenses		86			—
		Provision for allowance for credit loss		64			—
	K BANK Co., Ltd.	Fees income		1,313			951
	Well to Sea No.3 Private Equity Fund	Interest income		1,883			1,255
		Interest expenses		4			9
		Provision for allowance for credit loss		111			91
	Others (*1) (*2)	Fees income		1,779			957
		Other income		12			13
		Interest expenses		22			45
		Reversal of allowance for credit loss		—			(5	)

(*1) Others include Saman Corporation, Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Woori-Q Corporate Restructuring Private Equity Fund, Woori High plus G.B. Securities Feeder Fund1(G.B.), Uri Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private Equity Fund 2, Partner One Value Up I Private Equity Fund, PCC-Woori LP Secondary Fund and etc., as of September 30, 2020.

(*2) Others include Saman Corporation, Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Uri Hanhwa Eureka Private Equity Fund, Partner One Value Up I Private Equity Fund and etc, as of September 30, 2019.

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(3) Major loan transactions with related parties for the nine-month period ended September 30, 2020 and 2019 are as follows (Unit: Korean Won in millions):

		For the nine-month period ended September 30, 2020
Related parties		Beginning balance		Loan		Collection		Ending balance (*)
Associates	Well to Sea No. 3 Private Equity Fund		4,490		67,560		—		72,050
	LOTTE CARD Co., Ltd.		7,500		—		—		7,500
	Korea Finance Security Co., Ltd.		1,860		2,485		403		3,942
	Korea Credit Bureau Co., Ltd.		3		14		16		1
	W Service Network Co., Ltd.		23		272		245		50
	Chin Hung International Inc		244		1,774		1,735		283
	K BANK Co., Ltd.		141		1,544		1,506		179

(*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.

		For the nine-month period ended September 30, 2019
Related parties		Beginning balance		Loan		Collection		Ending balance (*)
Associates	Well to Sea No. 3 Private Equity Fund		1,857		100,300		9,167		92,990
	Korea Finance Security Co., Ltd.		57		440		445		52
	Korea Credit Bureau Co., Ltd.		7		22		26		3
	W Service Network Co., Ltd.		69		239		277		31
	Chin Hung International Inc		241		1,643		1,717		167
	K BANK Co., Ltd.		185		1,798		1,812		171

(*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.

(4) Details of changes in major deposits due to customers with related parties for the nine-month period September 30, 2020 and 2019 are as follows (Unit: Korean Won in millions):

		For the nine-month period ended September 30, 2020
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	Saman Corporation		2,522		34		—		2,556
	W Service Networks Co., Ltd		1,180		1,180		1,180		1,180
	Chin Hung International Inc		400		—		400		—
	Partner One Value Up I Private Equity Fund		1,150		1,356		1,303		1,203
	Korea Credit Bureau Co., Ltd.		—		1,000		—		1,000

(*) Details of payment between related parties, demand deposit due to customers and etc. are excluded.

		For the nine-month period ended September 30, 2019
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	Saman Corporation		2,436		181		—		2,617
	W Service Networks Co., Ltd		1,180		1,260		1,260		1,180
	Chin Hung International Inc		765		400		400		765
	Partner One Value Up I Private Equity Fund		1,403		1,617		1,556		1,464
	Korea Credit Bureau Co., Ltd.		6,000		—		6,000		—
	Korea Finance Security Co., Ltd.		535		25		560		—

(*) Details of payment between related parties, demand deposit due to customers and etc. are excluded.

(5) There are no major borrowing transactions with related parties for the nine-month period ended September 30, 2020 and 2019.

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(6) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):

Warrantee	September 30, 2020		December 31, 2019		Warranty
Korea Finance Security Co., Ltd.		318		400		Unused loan commitment
Korea Credit Bureau Co., Ltd.		34		32		Unused loan commitment
W Service Network Co., Ltd.		150		177		Unused loan commitment
Chin Hung International Inc.		32,016		32,055		Unused loan commitment
K BANK Co., Ltd.		121		159		Unused loan commitment
Well to Sea No.3 Private Equity Fund		302,950		210,510		Unused loan commitment
LOTTE CARD Co. Ltd.		150,000		150,000		Unused loan commitment
Together-Korea Government Private Pool Private Securities Investment Trust No.3		900,000		—		Securities purchase contract

There no recognized provisions for guarantees provided to the related parties as of September 30, 2020 and December 31, 2019, respectively.

(7) Amount of derivatives-related commitments with the related parties

Warrantee	September 30, 2020		December 31, 2019		Warranty
Well to Sea No.3 Private Equity Fund		598,560		584,377		Open interest

(8) Commitments among related parties

As of September 30, 2020, the Group has entered into an investment agreement with PCC-Woori LP Secondary Fund for 3,100 million won. Among the agreed amount, 2,325 million won was executed as of September 30, 2020 and outstanding balance amounts to 775 million won. The contract period is from December 31, 2019 and December 31, 2023.

(9) Compensation for key management is as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020		2019
Short-term employee salaries		12,331		9,979
Retirement benefit service costs		461		668
Share-based compensation		1,576		1,934
Total		14,368		12,581

Key management includes registered executives and non-registered executives. Outstanding assets from transactions with key management amount to 3,116 million won and 2,414 million won, as of September 30, 2020 and December 31, 2019 respectively and with respect to the assets, the Group has not recognized any allowance nor related impairment loss due to credit losses. Also, liabilities from transaction with key management amount to 9,732 million won and 6,543 million won, respectively, as of September 30, 2020 and December 31, 2019,

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42. LEASES

(1) The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Lease payments
Within one year		186,238		161,251
After one year but within five years		193,656		232,985
After five years		29,221		40,698
Total		409,115		434,934

(2) Total cash outflows from lease are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020		2019
Total cash outflows from lease		153,249		153,686

(3) Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30
	2020		2019
Lease payments for short-term leases		1,156		1,178
Lease payments for which the underlying asset is of low value		405		227
Total		1,561		1,405

(4) As mentioned in Note 2, the Group uses a practical expedient for rent concession as a direct consequence of COVID-19. Accordingly, the amount recognized in profit or loss during the reporting period is 9,351 million won, to reflect changes in lease payments arising from the rent concession.

(5) IFRS Interpretations Committee published its interpretation of ‘Lease Period and Lease Improvement Useful Life’ as of December 16, 2019. The Interpretation Committee discussed a question about how to determine the lease term for cancellable or renewable leases. According to the interpretation, the Group should identify factors to consider extensive economic penalties, and then determine the lease period. The Group is planning to reflect the effect in consolidated financial statements after the effect analysis of changes in accounting policies for the lease term is completed.

43. EVENTS AFTER THE REPORTING PERIOD

(1) In October 2020, the Group concluded a contract to acquire a 74.04% stake (42,605,000 common stocks) in Aju Capital Co., Ltd., and the completion date of the transaction is not yet decided as subsequent procedures for closing the transaction (approval of inclusion by the financial authorities, etc.) is still in progress.    

(2) Woori Investment Bank Co., Ltd., a subsidiary of the Group, decided to raise 100 billion won in shareholder allocation at the board meeting on August 28, 2020 and completed the payment of the shares on November 5, 2020, and the Group was allocated 109,757,854 shares in relation to the paid-in capital increase.

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EX-99.2

Exhibit 99.2

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020 AND FOR THE THREE-MONTH AND NINE-MONTH

PERIODS ENDED SEPTEMBER 30, 2020 AND FOR THE THREE-MONTH

PERIOD ENDED SEPTEMBER 30, 2019 AND THE PERIOD FROM

JANUARY 11, 2019 (DATE OF INCORPORATION) TO SEPTEMBER 30, 2019

WOORI FINANCIAL GROUP INC.

	Page(s)
Report on Review of Separate Interim Financial Statements		1-2
Separate Interim Financial Statements
Separate Interim Statements of Financial Position		4
Separate Interim Statements of Comprehensive Income		5
Separate Interim Statements of Changes in Equity		6
Separate Interim Statements of Cash Flows		7-8
Notes to the Separate Interim Financial Statements		9-44

Report on Review of Separate Interim Financial Statements

English Translation of a Report Originally Issued in Korean

To the Shareholders and the Board of Directors of Woori Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying separate interim financial statements of Woori Financial Group Inc. (the “Company”). These financial statements consist of the separate interim statement of financial position of the Company as at September 30, 2020 and the related separate interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2020, and separate interim statements of changes in equity and cash flows for the nine-month period ended September 30, 2020, and a summary of significant accounting policies and other explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these separate interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of separate interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to issue a report on these separate interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying separate interim financial statements are not presented fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

Emphasis of Matters

Without qualifying our conclusion, we draw attention to Note 3 of the financial statements, which indicates that the outbreak of COVID-19 in 2020 may have a negative impact on the Company’s financial condition and results of operations.

Other Matters

The separate interim financial statements of comprehensive income for the three-month period ended September 30, 2019, and separate interim statements of comprehensive income, changes in equity and cash flows for the period from January 11, 2019 (date of incorporation) to September 30, 2019, presented herein for comparative purposes, were reviewed by Deloitte Anjin LLC whose report dated November 14, 2019. Based on their review, nothing has come to their attention that causes them to believe the accompanying financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

The separate financial statements of the Company for the year ended December 31, 2019, were audited by Deloitte Anjin LLC who expressed an unqualified opinion on those statements, not presented herein, on March 16, 2020. The separate statement of financial position as at December 31, 2019, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2019.

/s/ Samil PricewaterhouseCoopers

November 13, 2020

Notice to Readers

This report is effective as of November 13, 2020 the review report date. Certain subsequent events or circumstances may have occurred between the review report date and the time the review report is read. Such events or circumstances could significantly affect the separate interim financial statements and may result in modifications to the review report.

- 2 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020 AND FOR THE THREE-MONTH AND NINE-MONTH

PERIODS ENDED SEPTEMBER 30, 2020 AND FOR THE THREE-MONTH

PERIOD ENDED SEPTEMBER 30, 2019 AND THE PERIOD FROM JANUARY 11, 2019

(DATE OF INCORPORATION) TO SEPTEMBER 30, 2019

The accompanying separate interim financial statements including all footnote disclosures

were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Tae Seung Sohn

President and Chief Executive Officer

Main Office Address: (Road Name Address) 51, Sogong-ro, Jung-gu, Seoul

(Phone Number)    02-2125-2000

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2020 (UNAUDITED) AND DECEMBER 31, 2019

	September 30, 2020			December 31, 2019
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 5 and 30)		97,695			43,670
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 6, 9 and 18)		9,434			9,434
Financial assets at fair value through other comprehensive income (“FVTOVI”) (Notes 4, 7 and 9)		150,528			—
Loans and other financial assets at amortized cost (Notes 4, 8, 9 and 30)		993,777			1,269,203
Investments in subsidiaries (Notes 10 and 30)		20,873,593			19,873,593
Premises and equipment (Notes 11 and 30)		8,301			7,383
Intangible assets (Note 12)		5,428			3,310
Deferred tax assets (Note 27)		692			—
Other assets (Note 13)		264			—
Total assets		22,139,712			21,206,593
LIABILITIES
Debentures (Notes 4, 9 and 14)		1,147,410			947,679
Provisions (Note 15)		718			600
Net defined benefit liability (Note 16)		9,146			3,482
Current tax liabilities (Note 27)		89,437			133,526
Deferred tax liabilities (Note 27)		—			154
Other financial liabilities (Notes 4, 9, 17, 30 and 31)		9,807			10,745
Other liabilities (Notes 17 and 30)		1,170			4,142
Total liabilities		1,257,688			1,100,328
EQUITY (Note 19)
Capital stock		3,611,338			3,611,338
Hybrid securities		1,695,821			997,544
Capital surplus		14,874,084			14,874,084
Other equity		(1,868	)		(631	)
Retained earnings		702,649			623,930
Total equity		20,882,024			20,106,265
Total liabilities and equity		22,139,712			21,206,593

The accompanying notes are part of this interim financial statement.

- 4 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND FOR

THE THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2019

AND THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)

TO SEPTEMBER 30, 2019 (UNAUDITED)

	2020						2019
	For the three-month period ended September 30, 2020			For the nine-month period ended September 30, 2020			For the three-month period ended September 30, 2019			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	(Korean Won in millions, except for per share data)
Interest income		1,299			8,998			3,472			3,981
Interest expense		(5,718	)		(16,749	)		(2,353	)		(3,216	)
Net interest income (Notes 9, 21 and 30)		(4,419	)		(7,751	)		1,119			765
Fees and commissions income		—			—			—			—
Fees and commissions expense		(2,562	)		(10,730	)		(2,513	)		(9,925	)
Net fees and commissions loss (Notes 22 and 30)		(2,562	)		(10,730	)		(2,513	)		(9,925	)
Dividend income (Notes 23 and 30)		1,290			679,085			—			676,000
Provision of impairment losses due to credit loss (Notes 24 and 30)		(183	)		(174	)		—			—
General and administrative expenses (Notes 25 and 30)		(13,488	)		(41,642	)		(9,624	)		(30,234	)
Operating income (loss)		(19,362	)		618,788			(11,018	)		636,606
Other non-operating expense		(200	)		(220	)		(155	)		(755	)
Non-operating expense (Note 26)		(200	)		(220	)		(155	)		(755	)
Net income (loss) before income tax expense		(19,562	)		618,568			(11,173	)		635,851
Income tax income (Note 27)		(1,436	)		(378	)		(232	)		(639	)
Net income (loss)		(18,126	)		618,946			(10,941	)		636,490
Net gain on valuation of equity securities at FVTOCI		191			383			—			—
Remeasurement loss related to defined benefit plan		(659	)		(1,620	)		(316	)		(761	)
Items that will not be reclassified to profit or loss:		(468	)		(1,237	)		(316	)		(761	)
Other comprehensive loss, net of tax		(468	)		(1,237	)		(316	)		(761	)
Total comprehensive income (loss)		(18,594	)		617,709			(11,257	)		635,729
Earnings per share (Note 28)
Basic and diluted earnings per share (In Korean Won)		(45	)		809			(21	)		926

The accompanying notes are part of this interim financial statement.

- 5 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020

AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)

TO SEPTEMBER 30, 2019 (UNAUDITED)

	Capital stock		Capital surplus			Hybrid securities		Other equity			Retained earnings			Total equity
	(Korean Won in millions)
January 11, 2019 (Date of incorporation)		3,400,822		14,565,637			—		—			—			17,966,459
Total comprehensive income
Net income		—		—			—		—			636,490			636,490
Remeasurement loss related to defined benefit plan		—		—			—		(761	)		—			(761	)
Transactions with owners
Comprehensive stock exchange(Note 1)		210,516		309,460			—		—			—			519,976
New stocks issue cost		—		(3,034	)		—		—			—			(3,034	)
Issuance of hybrid securities		—		—			498,783		—			—			498,783
Dividends to hybrid securities		—		—			—		—			(3,572	)		(3,572	)
September 30, 2019 (Unaudited)		3,611,338		14,872,063			498,783		(761	)		632,918			19,614,341
January 01, 2020		3,611,338		14,874,084			997,544		(631	)		623,930			20,106,265
Total comprehensive income
Net income		—		—			—		—			618,946			618,946
Net gain on valuation of equity securities at FVTOCI		—		—			—		383			—			383
Remeasurement loss related to defined benefit plan		—		—			—		(1,620	)		—			(1,620	)
Transactions with owners
Dividends to common stocks		—		—			—		—			(505,587	)		(505,587	)
Issuance of hybrid securities		—		—			698,277		—			—			698,277
Dividends to hybrid securities		—		—			—		—			(34,640	)		(34,640	)
September 30, 2020 (Unaudited)		3,611,338		14,874,084			1,695,821		(1,868	)		702,649			20,882,024

The accompanying notes are part of this interim financial statement.

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WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020

AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)

TO SEPTEMBER 30, 2019 (UNAUDITED)

	For the nine-month period ended September 30, 2020			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	(Korean Won in millions)
Cash flows from operating activities:
Net income		618,946			636,490
Adjustments to net income:
Income tax expense (income)		(378	)		(639	)
Interest income		(8,998	)		(3,981	)
Interest expense		16,749			3,216
Dividend income		(679,085	)		(676,000	)
		(671,712	)		(677,404	)
Additions of expenses not involving cash outflows:
Provision of impairment losses due to credit loss		174			—
Retirement benefit		2,844			4,582
Depreciation and amortization		3,943			2,915
		6,961			7,497
Changes in operating assets and liabilities:
Loans and other financial assets at amortized cost		43,263			(421,082	)
Other assets		(265	)		(184	)
Net defined benefit liability		586			—
Other financial liabilities		(44,569	)		(12,339	)
Other liabilities		(2,971	)		4,680
		(3,956	)		(428,925	)
Interest income received		11,688			2,978
Interest expense paid		(16,459	)		(2,205	)
Dividends received		679,085			676,000
Income tax paid		(199	)		—
		674,115			676,773
Net cash provided by operating activities		624,354			214,431
Cash flows from investing activities:
Cash in-flows from investing activities:
Decrease on other investment assets		1,530,000			—
		1,530,000			—
Cash out-flows from investing activities:
Acquisition of investments in subsidiaries		1,000,000			1,146,635
Acquisition of financial assets at FVTOCI		150,000			—
Acquisition of premises and equipment		2,718			6,596
Acquisition of intangible assets		2,948			4,630
Increase on guarantee deposits for leases		709			955
Increase on other investment assets		1,300,000			—
		2,456,375			1,158,816
Net cash used in investing activities		(926,375	)		(1,158,816	)

(Continued)

- 7 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020

AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)

TO SEPTEMBER 30, 2019 (UNAUDITED) (CONTINUED)

	For the nine-month period ended September 30, 2020		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	(Korean Won in millions)
Cash flows from financing activities:
Cash in-flows from financing activities:
Increase in borrowings		—		64,769
Issuance of debentures		199,556		698,171
Issuance of hybrid securities		698,277		498,783
		897,833		1,261,723
Cash out-flows from financing activities:
Decrease in borrowings		—		64,769
Redemption of lease liabilities		1,560		953
New stock issue cost		—		3,034
Dividends paid to hybrid securities		34,640		—
Dividends paid		505,587		—
		541,787		68,756
Net cash provided by financing activities		356,046		1,192,967
Net increase in cash and cash equivalents		54,025		248,582
Cash and cash equivalents, beginning of the period		43,670		—
Cash and cash equivalents, end of the period (Note 5)		97,695		248,582

The accompanying notes are part of this interim financial statement.

- 8 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

1. GENERAL

(1) Summary of the parent company

Woori Financial Group, Inc. (hereinafter referred to the “Company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank, Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,611,338 million won as of September 30, 2020 while the Korea Deposit Insurance Corp. (“KDIC”), the Company’s largest shareholder, owns 124,604,797 shares (17.25%) of the Company’s stocks issued. The Company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock transfer from the Company and subsidiaries as of incorporation are as follows (Unit: Number of shares):

Stock transfer company	Total number of issued shares		Exchange ratio per share		Number of Parent company’s stocks
Woori Bank		676,000,000		1.0000000		676,000,000
Woori FIS Co., Ltd.		4,900,000		0.2999708		1,469,857
Woori Finance Research Institute Co., Ltd.		600,000		0.1888165		113,289
Woori Credit Information Co., Ltd.		1,008,000		1.1037292		1,112,559
Woori Fund Service Co., Ltd.		2,000,000		0.4709031		941,806
Woori Private Equity Asset Management Co., Ltd.		6,000,000		0.0877992		526,795

As of August 1, 2019, the Company acquired a 73% interest in Woori Asset Management Co. (Formerly Tongyang Asset Management Corp.). The remaining payment was completed in August, 2019 after the request for the change of major shareholder was approved by the Financial Service Commission in July, 2019 and the Company gained 100% control of Woori Global Asset Management Co., Ltd. (formerly ABL Global Asset Management Co., Ltd), and added it as a consolidated subsidiary at the end of 2019.

The Company paid 598,391 million won in cash and 42,103,377 new shares of the parent company to acquire 100% interest of Woori Card Co., Ltd. from its subsidiary Woori Bank on September 10, 2019. On the same date, the Company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million won in cash.

As of December 30, 2019, the Company acquired 67.2% interests in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.).

- 9 -

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The Company’s financial statements are condensed interim financial statements prepared in accordance with Korean IFRS 1034, Interim Financial Reporting for some of periods in which the annual separate financial statements belong. They are also separate financial statements prepared in accordance with Korean IFRS 1027 Separate Financial Statements. It is necessary to use the Company’s annual separate financial statements for the year ended December 31, 2019 for understanding of the accompanying condensed interim financial statements.

1) Except for the impacts on the newly adopted standards and interpretations explained below, the accounting policies applied in preparing the accompanying condensed interim financial statements have been applied consistently with the annual financial statements as of and for the year ended December 31, 2019.

• Amendments to Korean IFRS 1001 Presentation of Financial Statements and Korean IFRS 1008 Accounting policies, changes in accounting estimates and errors – Definition of Material

The amendments clarify the explanation of the definition of material and amended Korean IFRS 1001 and Korean IFRS 1008 in accordance with the clarified definitions. Materiality is assessed by reference to omission or misstatement of material information as well as effects of immaterial information, and to the nature of the users when determining the information to be disclosed by the Company. The amendment does not have a significant impact on the financial statements.

• Amendments to Korean IFRS 1103 Business Combination – Definition of a Business

To consider the integration of the required activities and assets as a business, the amended definition of a business requires an acquisition to include an input and a substantive process that together significantly contribute to the ability to create outputs and excludes economic benefits from the lower costs. An entity can apply a concentration test, an optional test, where substantially all of the fair value of gross assets acquired is concentrated in a single asset or a group of similar assets, the assets acquired would not represent a business. The amendment does not have a significant impact on the financial statements.

• Amendments to Korean IFRS 1116 Lease – Practical expedient for COVID-19 Related Rent Exemption, Concessions, Suspension

The amendment permits lessees, as a practical expedient, not to assess whether particular rent concessions occurring as a direct consequence of the COVID-19 pandemic. For those who applied this accounting treatment shall account for changes in lease payments, such as rent discounts, consistently with the way the standard specifies when those changes are not lease changes.

The Company changed its accounting policies in accordance with the amendments made to IFRS 16. The revised accounting policies were applied retrospectively in accordance with the transitional regulation in IFRS 16. The amendments do not have a significant impact on the financial statements.

- 10 -

2) Significant accounting policies and method of computation used in the preparation of the condensed interim financial statements are consistent with those of the annual financial statements for the year ended December 31, 2019, except for the changes due to the application of amendment and enactments of standards described in Note 2.(1) and the one described below.

• Income tax expense

Income tax expense for the interim period is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate is applied to the pre-tax income.

3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The outbreak of COVID-19 in 2020 has had a significant impact on the global economy including Korea. Financial and economic conditions arising may have a negative impact on the Company’s financial condition and results of operations in various forms both domestically and internationally. The Company is closely monitoring the impact of COVID-19 and will continue to assess the impact COVID-19 will bring to the Company through the duration of effect on the economy and government policies.

The management shall make judgements, estimates and assumptions that affect the application of accounting policies and application of assets, liabilities and revenues and expenses in preparing condensed interim financial statements. Therefore, the actual results may differ from these estimates.

The important judgements by the management on accounting policies and the main sources of estimation uncertainty for preparing condensed interim financial statements are identical to ones used in the Company’s annual separate financial statements for the year ended December 31, 2019, except for the methods of estimation used to determine income tax expense.

4. RISK MANAGEMENT

The Company is exposed to various risks that may arise from its operating activities and credit risk, market risk and liquidity risk are the main types of risks. In order to manage such risks, the Risk Management Committee analyzes, assesses, and establishes risk management standards, including policies, guidelines, management systems and decision-making to ensure sound management of the Company.

The Risk Management Committee, Chief Risk Officer (“CRO”) and the Risk Management Department are operated as risk management organizations. The board of directors operates the Risk Management Committee, composed of nonexecutive directors for professional risk management. The Risk Management Committee performs as the top decision-making body for risk management by establishing fundamental risk management policies that are consistent with the Company’s management strategy and by determining the Company’s acceptable level of risk.

CRO assists the Risk Management Committee and operates the Company Risk Management Council, which is composed of the risk management managers of the subsidiaries, to periodically check and improve the external environment and the Company’s risk burden. The Risk Management Department which is independently structured, controls the risk management matter of the Company and reports key risks and assists decision-making.

- 11 -

(1) Credit risk

Credit risk represents the possibility of financial losses incurred when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Company’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

1) Credit risk management

The Company measures expected loss on assets subject to credit risk management and uses it as a management indicator.

2) Maximum exposure to credit risk

The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):

		September 30, 2020		December 31, 2019
Loans and other financial assets at amortized cost	Banks		969,912		1,228,918
	Corporates		23,865		40,285
	Sub-total		993,777		1,269,203
Financial assets at FVTPL	Derivative assets		9,434		9,434
	Total		1,003,211		1,278,637

a) Credit risk exposure by geographical areas

The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
	Korea		Korea
Loans and other financial assets at amortized cost		993,777		1,269,203
Financial assets at FVTPL		9,434		9,434
Total		1,003,211		1,278,637

b) Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are finance and insurance, and others in accordance with the Korea Standard Industrial Classification Code as of September 30, 2020 and December 31, 2019 (Unit: Korean Won in millions):

	September 30, 2020
	Finance and insurance		Others		Total
Loans and other financial assets at amortized cost		991,298		2,479		993,777
Financial assets at FVPTL		9,434		—		9,434
Total		1,000,732		2,479		1,003,211

	December 31, 2019
	Finance and insurance		Others		Total
Loans and other financial assets at amortized cost		1,267,228		1,975		1,269,203
Financial assets at FVPTL		9,434		—		9,434
Total		1,276,662		1,975		1,278,637

- 12 -

3) Credit risk exposure

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL as of September 30, 2020 and December 31, 2019 is as follows (Unit: Korean Won in millions):

	September 30, 2020
	Stage 1				Stage 2				Stage 3		Total		Loss allowance			Total, net
Financial assets	Above appropriate credit rating (*1)		Less than a limited credit rating (*3)		Above appropriate credit rating (*2)		Less than a limited credit rating (*3)
Loans and other financial assets at amortized cost		994,214		—		—		—		—		994,214		(437	)		993,777
Banks		970,349		—		—		—		—		970,349		(437	)		969,912
Corporates		23,865		—		—		—		—		23,865		—			23,865
General business		23,865		—		—		—		—		23,865		—			23,865
Total		994,214		—		—		—		—		994,214		(437	)		993,777

(*1) Credit grade of corporates are AAA ~ BBB.

(*2) Credit grade of corporates are A- ~ BBB.

(*3) Credit grade of corporates are BBB- ~ C.

	December 31, 2019
	Stage 1				Stage 2				Stage 3		Total		Loss allowance			Total, net
Financial assets	Above appropriate credit rating (*1)		Less than a limited credit rating (*3)		Above appropriate credit rating (*2)		Less than a limited credit rating (*3)
Loans and other financial assets at amortized cost		1,269,466		—		—		—		—		1,269,466		(263	)		1,269,203
Banks		1,229,181		—		—		—		—		1,229,181		(263	)		1,228,918
Corporates		40,285		—		—		—		—		40,285		—			40,285
General business		40,285		—		—		—		—		40,285		—			40,285
Total		1,269,466		—		—		—		—		1,269,466		(263	)		1,269,203

(*1) Credit grade of corporates are AAA ~ BBB.

(*2) Credit grade of corporates are A- ~ BBB.

(*3) Credit grade of corporates are BBB- ~ C.

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(2) Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates, and the Company’s main market risk is interest rate risk.

The Company estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Within 3 months (*1)		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost (*1)		798,345		200,600		—		—		—		—		998,945
Financial assets at FVTOCI (*2)		—		—		—		—		—		150,528		150,528
Sub-total		798,345		200,600		—		—		—		150,528		1,149,473
Liability:
Debentures		6,100		6,100		6,100		6,100		292,688		1,033,403		1,350,491
	December 31, 2019
	Within 3 months (*1)		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost (*1)		445,070		733,330		—		—		—		—		1,178,400
Liability:
Debentures		5,486		5,486		5,486		5,487		87,780		1,049,863		1,159,588

(*1) The principal and interest cash flows of cash and cash equivalents are included in the cash flows within three months, with 97,695 million won and 43,670 million won as of September 30, 2020 and December 31, 2019, respectively.

(*2) Due to the uncertain timing of the sale, it is included in the section for over 5 years in accordance with the expiration of the remaining contract

(3) Liquidity risk

Liquidity risk refers to the risk that the Company may encounter difficulties in meeting obligations from its financial liabilities.

1) Liquidity risk management

Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk management that could arise from mismatching the assets and liabilities or unexpected cash outflows. The financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated within the scope of risk management.

The Company manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.).

- 14 -

2) Maturity analysis of non-derivative financial liabilities

a) Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Debentures		6,100		6,100		6,100		6,100		292,688		1,033,403		1,350,491
Lease liabilities		589		175		94		94		291		—		1,243
Other financial liabilities		3,597		929		427		2,053		1,572		—		8,578
Total		10,286		7,204		6,621		8,247		294,551		1,033,403		1,360,312

	December 31, 2019
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Debentures		5,486		5,486		5,486		5,487		87,780		1,049,863		1,159,588
Lease liabilities		335		335		335		336		249		—		1,590
Other financial liabilities		6,131		2,043		—		183		820		—		9,177
Total		11,952		7,864		5,821		6,006		88,849		1,049,863		1,170,355

b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Debentures		6,100		6,100		6,100		6,100		292,688		1,033,403		1,350,491
Lease liabilities		589		175		94		94		291		—		1,243
Other financial liabilities		3,597		929		427		2,053		1,572		—		8,578
Total		10,286		7,204		6,621		8,247		294,551		1,033,403		1,360,312

	December 31, 2019
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Debentures		5,486		5,486		5,486		5,487		87,780		1,049,863		1,159,588
Lease liabilities		335		335		335		336		249		—		1,590
Other financial liabilities		6,131		2,043		—		183		820		—		9,177
Total		11,952		7,864		5,821		6,006		88,849		1,049,863		1,170,355

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5. STATEMENTS OF CASH FLOWS

(1) Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Demand deposits		97,695		43,670

(2) Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Changes in other comprehensive income related to valuation of financial assets at FVTOCI		383		—
Changes in right-of-use assets due to new contract		1,312		3,439
Changes in lease liabilities due to new contract		1,197		2,812
Comprehensive stock transfer		—		18,502,760
Changes in accrued dividends of hybrid securities		—		3,572

6. FINANCIAL ASSETS AT FVTPL

(1) Details of financial assets at FVTPL as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Financial assets at fair value through profit or loss mandatorily measured at fair value		9,434		9,434

(2) Financial assets at fair value through profit or loss mandatorily measured at fair value are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Derivatives assets		9,434		9,434

(3) Financial assets at FVTPL designated as upon initial recognition is nil among financial assets at FVTPL as of September 30, 2020 and December 31, 2019.

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7. FINANCIAL ASSETS AT FVTOCI

(1) Details of financial assets at FVTOCI as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Hybrid securities		150,528		—

(2) Details of equity securities designated as financial assets at FVTOCI as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

Purpose of acquisition	September 30, 2020		December 31, 2019
Investment for political purpose		150,528		—

8. LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

(1) Details of loans and other financial assets at amortized cost as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Due from banks		899,563		1,129,738
Other financial assets		94,214		139,465
Total		993,777		1,269,203

(2) Details of due from banks are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Due from banks in local currency:
Due from depository banks		900,000			1,130,000
Loss allowance		(437	)		(262	)
Total		899,563			1,129,738

(3) Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows and it is not applicable for September 30, 2019. (Unit: Korean Won in millions):

1) Allowance for credit losses

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(262	)		—		—		(262	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision of allowance for credit loss		(175	)		—		—		(175	)
Ending balance		(437	)		—		—		(437	)

2) Gross carrying amount

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		1,130,000			—		—		1,130,000
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net increase (decrease)		(230,000	)		—		—		(230,000	)
Ending balance		900,000			—		—		900,000

- 17 -

(4) Details of other financial assets are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Receivables		91,627		134,891
Accrued income		931		3,641
Lease deposits		1,656		934
Allowance for credit losses		—		(1	)
Total		94,214		139,465

(5) Changes in the allowances for credit losses and gross carrying amount of other financial assets are as follows and it is not applicable for September 30, 2019. (Unit: Korean Won in millions).

1) Allowance for credit losses

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(1	)		—		—		(1	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Reversal of allowance for credit loss		1			—		—		1
Ending balance		—			—		—		—

2) Gross carrying amount

	For the nine-month period ended September 30, 2020
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		139,466			—		—		139,466
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net increase (decrease)		(45,252	)		—		—		(45,252	)
Ending balance		94,214			—		—		94,214

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9. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1) The fair value hierarchy

The fair value hierarchy is determined by the levels of judgment involved in estimating fair values of financial assets and liabilities. The specific financial instruments characteristics and market condition such as volume of transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Company’s own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

• Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

• Level 2— fair value measurements are those derived from inputs other than quoted prices included within Level 2 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

• Level 3— fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

(2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at FVTPL
Derivative assets		—		—		9,434		9,434
Financial assets at FVTOCI
Hybrid securities		—		—		150,528		150,528

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at FVTPL
Derivative assets		—		—		9,434		9,434

Financial assets measured at FVTPL are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Company determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instruments are as follows:

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	Valuation methods	Input variables
Derivatives	The fair value is measured considering the price and volatility of the underlying assets using the Binomial Tree, a commonly used technique in the market	Values of underlying assets, Volatility, Risk-free market return, Corporate bond yield rate
Hybrid securities	The fair value is measured using the Monte Carlo Simulations and the Hull and White model	YTM Matrix, Additive spread by grade, Risk spread by entity, Effective Credit rating, Issuing information by item, Interest rate volatility estimate

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

	Fair value measurement technique	Type	Significant unobservable inputs	Range	Impact of changes in significant unobservable inputs on fair value measurement
Derivative assets	Option valuation model and others	Equity related	Value of underlying assets and volatility	12.58%~15.38%	Variation of fair value increases as value of underlying assets and volatility increases.
Hybrid securities	Hull and White model and others	Hybrid securities related	Interest rate (YTM)	Interest rate 0.50 %~ 1.58% Market rate 1.72% ~ 4.39%	Variation of fair value increases as variation of interest rate (YTM) increases.

The fair value of financial assets classified as level 3 uses external valuation figures.

(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows and it is not applicable for September 30, 2019. (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Beginning balance		Net Income (loss)		Other comprehensive income		Purchases/ issuances		Disposals/ settlements		Transfer to or out of Level 3		Ending balance
Financial assets:
Financial assets at FVTPL
Derivative assets		9,434		—		—		—		—		—		9,434
Financial assets at FVTOCI
Hybrid securities		—		—		528		150,000		—		—		150,528

(4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows.

The sensitivity analysis on financial instruments shows how changes in unobservable inputs affect changes in fair value of the instruments through favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for equity related derivatives of which fair value changes are recognized as net income and hybrid securities of which fair value changes are recognized as other comprehensive income among level 3 financial instruments.

- 20 -

The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility on the fair value of a Level 3 financial instruments (Unit: Korean Won in millions):

	September 30, 2020
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		943		(943	)		—		—
Financial assets at FVTOCI
Hybrid securities (*2)		—		—			7,061		(6,745	)

(*1) Fair value changes of equity related derivatives are calculated by increasing or decreasing stock price volatility rate of underlying assets and correlation, which are major unobservable variables, by 10%, respectively.

(*2) Fair value changes of hybrid securities are calculated by increasing or decreasing market rate, which is the major unobservable variable, by 1%, respectively.

	December 31, 2019
	Net income (loss)
	Favorable		Unfavorable
Financial assets:
Financial assets at fair value through profit or loss mandatorily measured at fair value
Derivative assets (*)		943		(943	)

(*) Fair value changes of equity related derivatives are calculated by increasing or decreasing stock price volatility rate of underlying assets and correlation, which are major unobservable variables, by 10%, respectively.

(5) Fair value and carrying amount of financial liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Fair value								Carrying amount
	Level 1		Level 2		Level 3		Total
Financial assets:
Loans and other financial assets at amortized cost (*)		—		—		993,777		993,777		993,777
Financial liabilities:
Debentures		—		1,205,535		—		1,205,535		1,147,410
Other financial liabilities (*)		—		—		8,577		8,577		8,577

(*) The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

	December 31, 2019
	Fair value								Carrying amount
	Level 1		Level 2		Level 3		Total
Financial assets:
Loans and other financial assets at amortized cost (*)		—		—		1,269,203		1,269,203		1,269,203
Financial liabilities:
Debentures		—		951,387		—		951,387		947,679
Other financial liabilities (*)		—		—		9,177		9,177		9,177

(*) The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

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The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Company determines the fair value using valuation methods. For the disclosed items in which book value is considered to be the approximate value of fair value, valuation techniques and input variables are not disclosed. Valuation techniques and input variables for the fair value of financial liabilities that are recorded at amortized cost are as follows:

	Valuation methods	Input variables
Debentures	The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Company.	Risk-free market rate, etc.

(6) Financial instruments by category

Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions):

	September 30, 2020
Financial assets	Financial       assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Total
Deposits		—		—		899,563		899,563
Hybrid securities		—		150,528		—		150,528
Derivative assets		9,434		—		—		9,434
Other financial assets		—		—		94,214		94,214
Total		9,434		150,528		993,777		1,153,739

	December 31, 2019
Financial assets	Financial       assets at FVTPL		Financial assets at amortized cost		Total
Deposits		—		1,129,738		1,129,738
Derivative assets		9,434		—		9,434
Other financial assets		—		139,465		139,465
Total		9,434		1,269,203		1,278,637

	September 30, 2020		December 31, 2019
Financial liabilities	Financial liabilities at amortized cost		Financial liabilities at amortized cost
Debentures		1,147,410		947,679
Other financial liabilities		8,577		9,177
Total		1,155,987		956,856

- 22 -

(7) Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019 are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Interest Income(expense)			Reversal (Provision) of credit loss			Others		Total
Financial assets at FVTOCI		—			—			1,290		1,290
Loans and other financial assets at amortized cost (*)		8,998			(174	)		—		8,824
Financial liabilities at amortized cost		(16,714	)		—			—		(16,714	)
Total		(7,716	)		(174	)		1,290		(6,600	)

(*) 2,780 million won interest income of cash and cash equivalents are included.

	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	Interest Income(expense)			Reversal (Provision) of credit loss		Others		Total
Loans and other financial assets at amortized cost (*)		3,981			—		—		3,981
Financial liabilities at amortized cost		(3,172	)		—		—		(3,172	)
Total		809			—		—		809

(*) 3,584 million won interest income of cash equivalents is included.

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10. INVESTMENTS IN SUBSIDIARIES

(1) Details of Investments in subsidiaries are as follows (Unit: Korean Won in millions and number of shares):

Subsidiaries	Location		Capital stock		Main business
Woori Bank		Korea		3,581,400	Finance
Woori Card Co., Ltd.		Korea		896,300	Finance
Woori Investment Bank Co., Ltd.		Korea		337,100	Other credit finance
Woori FIS Co., Ltd.		Korea		24,500	System software development & maintenance
Woori Finance Research Institute Co., Ltd.		Korea		3,000	Other service business
Woori Credit Information Co., Ltd.		Korea		5,000	Credit information
Woori Fund Service Co., Ltd.		Korea		10,000	Finance
Woori Asset Trust Co., Ltd		Korea		15,300	Finance
Woori Asset Management Corp.		Korea		20,000	Finance
Woori Private Equity Asset Management Co., Ltd.		Korea		30,000	Finance
Woori Global Asset Management Co., Ltd.		Korea		20,000	Finance

	September 30, 2020					December 31, 2019
Subsidiaries (*1)	Number of shares		Percentage of ownership (%) (*2)		Financial statements date of use	Number of shares		Percentage of ownership (%) (*2)		Financial statements date of use
Woori Bank		716,000,000		100.0	September 30, 2020		676,000,000		100.0	December 31,2019
Woori Card Co., Ltd.		179,266,200		100.0	September 30, 2020		179,266,200		100.0	December 31,2019
Woori Investment Bank Co., Ltd.		403,404,538		59.8	September 30, 2020		403,404,538		59.8	December 31,2019
Woori FIS Co., Ltd.		4,900,000		100.0	September 30, 2020		4,900,000		100.0	December 31,2019
Woori Finance Research Institute Co., Ltd.		600,000		100.0	September 30, 2020		600,000		100.0	December 31,2019
Woori Credit Information Co., Ltd.		1,008,000		100.0	September 30, 2020		1,008,000		100.0	December 31,2019
Woori Fund Service Co., Ltd.		2,000,000		100.0	September 30, 2020		2,000,000		100.0	December 31,2019
Woori Asset Trust Co., Ltd		1,560,000		67.2	September 30, 2020		1,560,000		67.2	December 31,2019
Woori Asset Management Corp.		2,920,000		73.0	September 30, 2020		2,920,000		73.0	December 31,2019
Woori Private Equity Asset Management Co., Ltd.		6,000,000		100.0	September 30, 2020		6,000,000		100.0	December 31,2019
Woori Global Asset Management Co., Ltd.		4,000,000		100.0	September 30, 2020		4,000,000		100.0	December 31,2019

(*1) Only subsidiaries invested directly by the Company are included.

(*2) The percentage is based on the effective shareholding rate relative to the number of stocks outstanding.

- 24 -

(2) Changes in the carrying value of investments in subsidiaries are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Beginning balance		Acquisition		Disposal		Ending balance
Woori Bank		17,921,151		1,000,000		—		18,921,151
Woori Card Co., Ltd.		1,118,367		—		—		1,118,367
Woori Investment Bank Co., Ltd.		392,795		—		—		392,795
Woori FIS Co., Ltd.		21,754		—		—		21,754
Woori Finance Research Institute Co., Ltd.		1,677		—		—		1,677
Woori Credit Information Co., Ltd.		16,466		—		—		16,466
Woori Fund Service Co., Ltd.		13,939		—		—		13,939
Woori Asset Trust Co., Ltd		224,198		—		—		224,198
Woori Asset Management Corp.		122,449		—		—		122,449
Woori Private Equity Asset Management Co., Ltd.		7,797		—		—		7,797
Woori Global Asset Management Co., Ltd.		33,000		—		—		33,000
Total		19,873,593		1,000,000		—		20,873,593

	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	Beginning balance (date of incorporation)		Acquisition		Disposal		Ending balance
Woori Bank (*1)		17,921,151		—		—		17,921,151
Woori Card Co., Ltd. (*2)		—		1,118,367		—		1,118,367
Woori Investment Bank Co., Ltd. (*2)		—		392,795		—		392,795
Woori FIS Co., Ltd. (*1)		21,754		—		—		21,754
Woori Finance Research Institute Co., Ltd. (*1)		1,677		—		—		1,677
Woori Credit Information Co., Ltd. (*1)		16,466		—		—		16,466
Woori Fund Service Co., Ltd. (*1)		13,939		—		—		13,939
Woori Asset Management Corp. (*3)		—		122,449		—		122,449
Woori Private Equity Asset Management Co., Ltd. (*1)		7,797		—		—		7,797
ABL Global Asset Management Co., Ltd. (*4)		—		33,000		—		33,000
Total		17,982,784		1,666,611		—		19,649,395

(*1) Acquired by the comprehensive stock transfer at the date of incorporation.

(*2) Woori card Co., Ltd. And Woori investment Bank Co., Ltd. were transferred from second-tier subsidiaries into subsidiaries in September 2019.

(*3) The Company newly acquired a 73% stake in Tongyang Asset Management Corporation and changed the name to Woori Asset Management Corporation in August 2019.

(*4) The remaining payment was completed in August 2019 after the request for the change of major shareholder was approved by the Financial Service Commission in July 2019. The subsequent process is in progress to close the deal.

- 25 -

11. PREMISES AND EQUIPMENT

(1) Details of premises and equipment as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Building		Properties for business use		Leasehold improvements		Total
Premises and equipment(owned)		—		3,888		3,189		7,077
Right-of-use asset		604		620		—		1,224
Total		604		4,508		3,189		8,301

	December 31, 2019
	Building		Properties for business use		Leasehold improvements		Total
Premises and equipment(owned)		—		3,767		1,796		5,563
Right-of-use asset		1,436		384		—		1,820
Total		1,436		4,151		1,796		7,383

(2) Details of premises and equipment (owned) as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Properties for business use			Leasehold improvements			Total
Acquisition cost		5,407			4,034			9,441
Accumulated depreciation		(1,519	)		(845	)		(2,364	)
Net carrying amount		3,888			3,189			7,077

	December 31, 2019
	Properties for business use			Leasehold improvements			Total
Acquisition cost		4,538			2,184			6,722
Accumulated depreciation		(771	)		(388	)		(1,159	)
Net carrying amount		3,767			1,796			5,563

(3) Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Properties for business use			Leasehold improvements			Total
Beginning balance		3,767			1,797			5,564
Acquisitions		869			1,849			2,718
Depreciation		(748	)		(457	)		(1,205	)
Ending balance		3,888			3,189			7,077

	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	Properties for business use			Leasehold improvements			Total
Beginning balance		—			—			—
Acquisitions		4,412			2,184			6,596
Depreciation		(546	)		(278	)		(824	)
Ending balance		3,866			1,906			5,772

- 26 -

(4) Details of right-of-use assets as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Building			Properties for business use			Total
Acquisition cost		3,704			1,047			4,751
Accumulated depreciation		(3,100	)		(427	)		(3,527	)
Net carrying amount		604			620			1,224

	December 31, 2019
	Building			Properties for business use			Total
Acquisition cost		2,871			568			3,439
Accumulated depreciation		(1,435	)		(184	)		(1,619	)
Net carrying amount		1,436			384			1,820

(5) Details of changes in right-of-use assets for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019 are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Building			Properties for business use			Total
Beginning balance		1,436			384			1,820
New contracts		833			479			1,312
Depreciation		(1,665	)		(243	)		(1,908	)
Ending balance		604			620			1,224

	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	Building			Properties for business use			Total
Beginning balance		—			—			—
New contracts		2,871			568			3,439
Depreciation		(1,076	)		(137	)		(1,213	)
Ending balance		1,795			431			2,226

12. INTANGIBLE ASSETS

(1) Details of intangible assets are as follows (Unit: Korean Won in millions):

	September 30, 2020
	Software			Development cost			Membership deposit		Construction in progress		Total
Acquisition cost		3,049			2,116			2,371		41		7,577
Accumulated amortization		(1,674	)		(475	)		—		—		(2,149	)
Net carrying amount		1,375			1,641			2,371		41		5,428

	December 31, 2019
	Software			Development cost			Total
Acquisition cost		2,729			1,901			4,630
Accumulated amortization		(1,144	)		(176	)		(1,320	)
Net carrying amount		1,585			1,725			3,310

- 27 -

(2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Software			Development cost			Membership deposit		Construction in progress		Total
Beginning balance		1,585			1,725			—		—		3,310
Acquisitions		320			216			2,371		41		2,948
Amortization		(530	)		(300	)		—		—		(830	)
Ending balance		1,375			1,641			2,371		41		5,428

	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	Software			Development cost			Total
Beginning balance		—			—			—
Acquisitions		2,729			1,901			4,630
Amortization		(797	)		(81	)		(878	)
Ending balance		1,932			1,820			3,752

13. OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Prepaid expenses		264		—

14. DEBENTURES

Details of debentures are as follows (Unit: Korean Won in millions):

	September 30, 2020					December 31, 2019
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bonds:
General bonds		1.23		200,000			—		—
Subordinated bonds		2.13 ~ 2.55		950,000			2.13 ~ 2.55		950,000
Sub-total				1,150,000					950,000
Deducted item:
Discounts on bonds				(2,590	)				(2,321	)
Total				1,147,410					947,679

- 28 -

15. PROVISIONS

(1) Details of provisions are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Asset retirement obligation		718		600

(2) Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30,2020		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Beginning balance		600		—
Increase		108		588
Amortization		10		9
Ending balance		718		597

16. NET DEFINED BENEFIT LIABILITY

The Company’s pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Company is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

Volatility of asset	The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate.
Decrease in profitability of blue chip bonds	A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.
Risk of inflation	Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1) Details of net defined benefit liability are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Present value of defined benefit obligation		23,897			14,174
Fair value of plan assets		(14,751	)		(10,692	)
Net defined benefit liability		9,146			3,482

- 29 -

(2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Beginning balance		14,174			—
Transfer-in / out		4,656			8,877
Recruit / Transfer in		1,266			3,360
Current service cost		1,509			1,119
Interest cost		288			190
Remeasurements
Financial assumption		425			717
Demographic assumptions		—			—
Experience adjustment		1,740			312
Retirement benefit paid		(93	)		—
Others		(68	)		—
Ending balance		23,897			14,575

(3) Changes in the plan assets are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Beginning balance		10,692			—
Transfer-in / out		4,056			8,877
Interest income		219			87
Remeasurements		(69	)		(22	)
Retirement benefit paid		(147	)		—
Ending balance		14,751			8,942

(4) Plan assets wholly consist of fixed deposits as of September 30, 2020 and December 31, 2019. Among plan assets, realized returns on plan assets amount to 150 million won and 65 million won for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019, respectively.

(5) The amount recognized in profit or loss and total comprehensive income related to the defined benefit plan for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019 is as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Current service cost		1,509		1,119
Recruit / Transfer in		1,266		3,360
Net interest expense (Income)		69		103
Cost recognized in net income		2,844		4,582
Remeasurements (*)		2,234		1,050
Cost recognized in total comprehensive income		5,078		5,632

(*) The amount is before income tax expense effect.

- 30 -

17. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Other financial liabilities:
Accounts payable		706		2,424
Accrued expenses		7,669		6,651
Lease liabilities		1,230		1,568
Other miscellaneous financial liabilities		202		102
Sub-total		9,807		10,745
Other liabilities:
Other miscellaneous liabilities		1,170		4,142
Total		10,977		14,887

18. DERIVATIVES

Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):

	September 30, 2020				December 31, 2019
	Nominal amount		Assets For trading		Nominal amount		Assets For trading
Equity Forwards		117,535		9,434		117,535		9,434

Derivatives held for trading are classified into financial assets at FVTPL in the statements of financial position (seeing Note 6).

- 31 -

19. EQUITY

(1) Details of equity as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Capital		3,611,338			3,611,338
Hybrid securities		1,695,821			997,544
Capital surplus		14,874,084			14,874,084
Accumulated other comprehensive income		(1,868	)		(631	)
Retained earnings		702,649			623,930
Total		20,882,024			20,106,265

(2) The number of authorized shares and others of the Company are as follows:

	September 30, 2020		December 31, 2019
Shares of common stock authorized		4,000,000,000 Shares		4,000,000,000 Shares
Par value		5,000 Won		5,000 Won
Shares of common stock issued		722,267,683 Shares		722,267,683 Shares
Capital stock		3,611,338 million won		3,611,338 million won

(3) Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):

	Issue date		Maturity		Interest rate (%)		September 30, 2020			December 31, 2019
Securities in local currency		2019-07-18		—		3.49		500,000			500,000
Securities in local currency		2019-10-11		—		3.32		500,000			500,000
Securities in local currency		2020-02-06		—		3.34		400,000			—
Securities in local currency		2020-06-12		—		3.23		300,000			—
Issuance cost								(4,179	)		(2,456	)
Total								1,695,821			997,544

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from the date of issuance.

(4) Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020
	Beginning balance			Increase (decrease)			Income tax effect			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		—			528			(145	)		383
Remeasurement loss related to defined benefit plan		(631	)		(2,234	)		614			(2,251	)
Total		(631	)		(1,706	)		469			(1,868	)

	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	Beginning balance		Increase (decrease)			Income tax effect		Ending balance
Remeasurement loss related to defined benefit plan		—		(1,050	)		289		(761	)

- 32 -

(5) Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Company calculates and discloses the regulatory reserve for credit loss.

1) Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

	September 30, 2020			December 31, 2019
Beginning balance		692			—
Planned provision (reversal) of regulatory reserve for credit loss		(230	)		692
Ending balance		462			692

2) Provision of regulatory reserve for credit loss, adjusted net income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

	2020						2019
	For the three- month period ended September 30, 2020			For the nine- month period ended September 30, 2020			For the three- month period ended September 30, 2019			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Net income before regulatory reserve		(18,126	)		618,946			(10,941	)		636,490
Provision (reversal) of regulatory reserve for credit loss		160			(230	)		2			1,012
Adjusted net income after the provision of regulatory reserve		(18,286	)		619,176			(10,943	)		635,478
Dividends to hybrid securities		(14,275	)		(34,640	)		(3,572	)		(3,572	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		(32,561	)		584,536			(14,515	)		631,906
Adjusted EPS after regulatory reserve and dividends to hybrid securities (Unit: Korean Won)		(45	)		809			(21	)		924

20. DIVIDENDS

Dividends per share and the total dividends for the fiscal year ending December 31, 2019 were 700 Won and 505,587 million won, respectively, approved at the regular general shareholders’ meeting held on March 25, 2020.

- 33 -

21. NET INTEREST INCOME

(1) Interest income recognized is as follows (Unit: Korean Won in millions):

	2020				2019
	For the three- month period ended September 30, 2020		For the nine- month period ended September 30, 2020		For the three- month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Interest on due from banks		1,292		8,978		3,467		3,968
Other interest income		7		20		5		13
Total		1,299		8,998		3,472		3,981

(2) Details of interest expense recognized are as follows (Unit: Korean Won in millions):

	2020				2019
	For the three- month period ended September 30, 2020		For the nine- month period ended September 30, 2020		For the three- month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Interest on borrowings		—		—		—		495
Interest on debentures		5,707		16,714		2,339		2,677
Other interest expense		4		10		3		9
Interest on lease liabilities		7		25		11		35
Total		5,718		16,749		2,353		3,216

22. NET FEES AND COMMISSIONS INCOME

(1) There are no fees and commissions income recognized for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019.

(2) Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):

	2020				2019
	For the three- month period ended September 30, 2020		For the nine- month period ended September 30, 2020		For the three- month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Fees and commissions paid		774		5,016		801		3,786
Others		1,788		5,714		1,712		6,139
Total		2,562		10,730		2,513		9,925

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23. DIVIDEND INCOME

Details of dividend income recognized are as follows (Unit: Korean Won in millions):

	2020				2019
	For the three- month period ended September 30, 2020		For the nine- month period ended September 30, 2020		For the three- month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Dividend income recognized from investments in subsidiaries		—		677,795		—		676,000
Dividend income recognized from FVTOVI		1,290		1,290		—		—
Total		1,290		679,085		—		676,000

24. PROVISION FOR IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Details of provision for impairment losses due to credit loss recognized are as follows (Unit: Korean Won in millions):

	2020						2019
	For the three- month period ended September 30, 2020			For the nine- month period ended September 30, 2020			For the three- month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Provision for impairment losses due to credit loss on loans and other financial assets at amortized cost		(183	)		(174	)		—		—

- 35 -

25. GENERAL AND ADMINISTRATIVE EXPENSES

(1) Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

			2020				2019
			For the three- month period ended September 30, 2020		For the nine- month period ended September 30, 2020		For the three- month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Employee benefits	Short-term employee benefits	Salaries		6,937		19,528		4,782		12,063
		Employee fringe benefits		1,374		6,583		882		4,007
	Retirement benefit service costs			640		2,844		393		4,582
	Share based payments			243		736		97		627
		Sub-total		9,194		29,691		6,154		21,279
Depreciation and amortization				1,430		3,943		1,149		2,915
Other general and administrative expenses	Rent			298		790		177		511
	Taxes and public dues			85		300		65		175
	Service charges			777		2,443		945		1,929
	Computer and IT related			839		2,054		435		1,124
	Telephone and communication			68		258		52		152
	Operating promotion			379		881		182		433
	Advertising			12		113		13		473
	Printing			7		35		15		60
	Traveling			9		43		146		252
	Supplies			37		156		27		82
	Insurance premium			—		19		—		164
	Reimbursement			280		729		222		585
	Vehicle maintenance			67		154		38		87
	Others			6		33		4		13
		Sub-total		2,864		8,008		2,321		6,040
	Total			13,488		41,642		9,624		30,234

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(2) Share-based payment

Details of performance condition share-based payment granted to executives as of September 30, 2020 and 2019 are as follows.

1) Performance condition share-based payment

Subject to		Shares granted for the year 2019
Type of payment		Cash-settled
Vesting period		January 11, 2019 ~ December 31, 2022
Date of payment		2023-01-01
Fair value (*1)		7,724 Won
Valuation method		Black-Scholes Model
Expected dividend rate		4.13%
Expected maturity date		2.25 years
Number of shares remaining	As of September 30, 2020	77,728 shares
	As of December 31, 2019	77,728 shares
Number of shares granted (*2)	As of September 30, 2020	77,728 shares
	As of December 31, 2019	77,728 shares

Subject to		Shares granted for the year 2020
Type of payment		Cash-settled
Vesting period		January 1, 2020 ~ December 31, 2023
Date of payment		2024-01-01
Fair value (*1)		7,412 Won
Valuation method		Black-Scholes Model
Expected dividend rate		4.13%
Expected maturity date		3.25 years
Number of shares remaining	As of September 30, 2020	128,755 shares
	As of December 31, 2019	—
Number of shares granted (*2)	As of September 30, 2020	128,755 shares
	As of December 31, 2019	—

(*1) As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated and used to measure the liability according to the Black Shawls model based on the base price at the time of each settlement.

(*2) The number of payable stocks is granted at the initial contract date and the payment rate is determined based on the achievement of the pre-determined performance targets. Performance is evaluated as long-term performance indication including relative shareholder return, net income, return on equity (ROE), non-performing loan ratio and job performance.

2) The Company accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of September 30, 2020 and December 31, 2019 the book value of the liabilities related to the performance condition share-based payments recognized by the Company is 1,555 million won and 819 million won.

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26. NON-OPERATING INCOME (EXPENSES)

(1) Details of non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):

	2020						2019
	For the three-month period ended September 30, 2020			For the nine-month period ended September 30, 2020			For the three-month period ended September 30, 2019			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Other non-operating income		—			181			—			—
Other non-operating expense		(200	)		(401	)		(155	)		(755	)
Total		(200	)		(220	)		(155	)		(755	)

(2) Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):

	2020				2019
	For the three-month period ended September 30, 2020		For the nine-month period ended September 30, 2020		For the three-month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Others		—		181		—		—

(3) Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):

	2020				2019
	For the three-month period ended September 30, 2020		For the nine-month period ended September 30, 2020		For the three-month period ended September 30, 2019		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Donations		200		401		155		755

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27. INCOME TAX EXPENSE (INCOME)

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

	For the nine-month period ended September 30, 2020			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Current tax expense:
Current tax expense with respect to the current period		—			—
Sub-total		—			—
Deferred tax expense (income)
Change in deferred tax assets (liabilities) due to temporary differences		(847	)		(928	)
Income tax expense directly attributable to equity		469			289
Sub-total		(378	)		(639	)
Income tax expense (income)		(378	)		(639	)

Income tax expense (income) was recognized based on the estimate of the best weighted average annual effective tax rate expected for the interim period. It is tax income for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation), so the annual effective tax rate was not calculated.

28. EARNINGS PER SHARE (“EPS”)

(1) Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

	2020						2019
	For the three-month period ended September 30, 2020			For the nine-month period ended September 30, 2020			For the three-month period ended September 30, 2019			For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Net income attributable to Owners		(18,126	)		618,946			(10,941	)		636,490
Dividends to hybrid securities		(14,275	)		(34,640	)		(3,572	)		(3,572	)
Net income attributable to common shareholders		(32,401	)		584,306			(14,513	)		632,918
Weighted average number of common shares outstanding		722			722			690			684
Basic EPS (Unit: Korean Won)		(45	)		809			(21	)		926

(2) The weighted average number of common shares outstanding is as follows: (Unit: number of shares, days)

	For the nine-month period ended September 30, 2020
	Period		Number of shares		Dates		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		2020-01-01 ~ 2020-09-30		722,267,683		274		197,901,345,142
Treasury stock		2020-01-01 ~ 2020-09-30		(2)		274		(548)
Sub-total (①)								197,901,344,594
Weighted average number of common shares outstanding (②=(①/274)								722,267,681

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	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
	Period		Number of shares		Dates		Accumulated number of shares outstanding during period
Common shares issued at the beginning date of incorporation of the period		2019-01-11~2019-09-30		680,164,306		263		178,883,212,478
Stock issuance (Comprehensive stock exchange)		2019-09-10 ~ 2019-09-30		42,103,377		21		884,170,917
Sub-total (①)								179,767,383,395
Weighted average number of common shares outstanding (②=(①/263)								683,526,173

Diluted EPS is equal to basic EPS because there is no dilution effect for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019.

29. CONTINGENT LIABILITIES AND COMMITMENTS

(1) Litigation case

As of September 30, 2020 and December 31, 2019, the Company has no litigation case in progress.

(2) Details of loan commitments with financial institutions are as follows (Unit: Korean Won in millions):

		September 30, 2020				December 31, 2019
	Financial institutions	Line of credit		Loan balance		Line of credit		Loan balance
Loans	Standard Chartered Bank Korea Ltd.		65,000		—		65,000		—
	Kookmin Bank		35,000		—		35,000		—
	Total		100,000		—		100,000		—

(3) The Company decided to enter into a stock sales agreement with a major shareholder of Woori Asset Trust Co., Ltd (formerly Kukje Asset Trust Co., Ltd) to acquire 44.5% interest (58.6% of voting rights) during July, 2019, and to acquire additional 21.3% interest (28.0% of voting rights) after a certain period. As a result, the Company acquired the interest of the first sales agreement in December 2019 and is planning to acquire the interest of the second sales agreement after a certain period.

In regards to this acquisition, the Company recognized 9,434 million won as derivative assets as of September 30, 2020 and December 31, 2019 (seeing Note 18).

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30. RELATED PARTY TRANSACTIONS

Related parties of the Company as of September 30, 2020 and December 31, 2019, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019 are as follows:

(1) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

Related party	Title of account	September 30, 2020			December 31, 2019
Subsidiaries
Woori Bank	Cash and cash equivalents		97,695			43,670
	Other financial assets		970,350			1,229,181
	Allowance for credit losses		(437	)		(263	)
	Other financial liabilities		578			601
Woori Card Co., Ltd.	Other financial assets		20,926			37,754
	Other financial liabilities		266			267
Woori FIS Co., Ltd.	Other financial assets		1,671			1,386
	Other financial liabilities		242			190
Woori Finance Research Institute Co., Ltd.	Other financial assets		146			21
	Other financial liabilities		—			1,320
Woori Credit Information Co., Ltd.	Other financial assets		662			568
Woori Fund Service Co., Ltd.	Other financial assets		460			556
Associates of subsidiaries
W Service Networks Co., Ltd.	Other financial liabilities		125			64

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(2) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

Related party	Title of account	For the nine-month period ended September 30, 2020		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Subsidiaries (*1)
Woori Bank	Interest income		8,998		3,981
	Dividend income		676,000		676,000
	Interest expenses (*2)		25		37
	Fees and commissions expense		11		2
	Provision of impairment loss due to credit loss		174		—
	General and administrative expenses (*2)		2,420		1,574
Woori Card Co., Ltd.	Dividend income		1,290		—
Woori FIS Co., Ltd.	General and administrative expenses		1,867		872
Woori Finance Research Institute Co., Ltd.	Fees and commissions expenses		4,725		4,200
Woori Credit Information Co., Ltd.	Dividend income		494		—
Woori Fund Service Co., Ltd.	Dividend income		521		—
Woori Asset Trust Co., Ltd	Dividend income		780		—
Associates of subsidiaries
W Service Networks Co., Ltd.	General and administrative expenses		984		577

(*1) The Company issued debentures of 200,000 million won during the period, of which 40,000 million won was underwritten by Woori Investment Bank and paid 40 million won as acquisition fee which is included in the discount on debentures issued.

(*2) The depreciation of right-of-use assets and interest expense of lease liabilities arising from lease transactions during the current term are included.

(3) The details of the right-of-use assets and lease liabilities due to lease transactions with related parties as of September 30, 2020 and December 31, 2019 are as follows (Unit: Korea Won in millions):

Related parties		Title of account	September 30, 2020		December 31, 2019
Subsidiaries	Woori Bank	Right-of-use assets		604		1,436
		Lease liabilities (*)		578		1,164

(*) Cash outflows of lease liabilities redemption for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019 are 1,319 million won, 829 million won, respectively.

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(4) The details of loan and borrowing transactions with related parties for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019 are as follows (Unit: Korea Won in millions):

Related parties (*1)		Title of account	For the nine-month period ended September 30, 2020
			Beginning balance		Increase		Decrease		Ending balance
Subsidiaries	Woori Bank	Due from banks (*2)		1,130,000		3,330,000		3,560,000		900,000

(*1) Woori Investment Bank acquired 40,000 million won out of 200,000 million won in non-guaranteed bonds issued during the nine-month period ended September 30, 2020 and sold the entire amount to the market on the date of issuance.

(*2) Excludes due from banks without withdrawal limitations.

Related parties		Title of account	For the period from January 11, 2019 (date of incorporation) to September 30, 2019
			Beginning balance		Increase		Decrease		Ending balance
Subsidiaries	Woori Bank	Due from banks (*)		—		1,800,000		1,200,000		600,000

(*) Excludes due from banks without withdrawal limitations.

(5) The details of equity-related transactions with related parties for the nine-month period ended September 30, 2020 are as follows (Unit: Korean Won in million)

Related parties		Contribution		Acquisition of hybrid securities
Subsidiaries	Woori Bank		1,000,000		—
	Woori Card Co., Ltd.		—		150,000

(6) There are no guarantees provided to the related parties. The unused commitments provided from the related parties are as follows (Unit: Korean Won in millions):

Related parties		September 30, 2020		December 31, 2019		Warranty
Subsidiaries	Woori Card Co., Ltd.		202		495	Unused loan commitment

(7) Compensation for key management is as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020		For the period from January 11, 2019 (date of incorporation) to September 30, 2019
Short-term employee salaries		4,308		2,808
Retirement benefit service costs		170		392
Share-based compensation		576		405
Total		5,054		3,605

Key management includes registered executives and non-registered executives. The Company has not recognized any outstanding assets, liabilities, allowance and related impairment loss due to credit losses from transaction with key management as of September 30, 2020 and December 31, 2019.

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31. LEASES

(1) The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):

	September 30, 2020		December 31, 2019
Lease payments:
Within one year		952		1,341
After one year but within five years		291		249
Total		1,243		1,590

(2) Total cash outflows from lease are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020		For the period from January 11, 2019 (date of incorporation) to September 30,  2019
Cash outflows from lease		1,656		1,023

(3) Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

	For the nine-month period ended September 30, 2020		For the period from January 11, 2019 (date of incorporation) to September 30,  2019
Lease payments for which the underlying asset is of low value		95		70

There are no lease payments not included in the lease liabilities measurement, resulting from short-term leases for the nine-month period ended September 30, 2020 and for the period from January 11, 2019 (date of incorporation) to September 30, 2019.

(4) On December 16, 2019 the IFRS Interpretation Committee (IC) announced its interpretation on lease term and useful life of leasehold improvements. The IC discussed how to determine the lease term of a cancellable lease or a renewable lease. The Committee also observed that in determining the enforceable period of lease an entity should consider broader economic penalty. The Company plans to reflect its effect subsequent to the analysis of the change in accounting policy regarding lease term.

32. EVENTS AFTER THE REPORTING PERIOD

(1) In October 2020, the Company concluded a contract to acquire a 74.04% stake (42,605,000 common stocks) in Aju Capital Co., Ltd., and the completion date of the transaction is not yet decided as subsequent procedures for closing the transaction (approval of inclusion by the financial authorities, etc.) is still in progress.

(2) Woori Investment Bank Co., Ltd., a subsidiary of the Company, decided to raise 100 billion won in shareholder allocation at the board meeting on August 28, 2020 and completed the payment of the shares on November 5, 2020, and the Company was allocated 109,757,854 shares in relation to the paid-in capital increase.

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