UNITED STATES

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 March 2024

Commission File Number: 000-53445

KB Financial Group Inc.

(Translation of registrant’s name into English)

26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, 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 ☐

Audit Report of Kookmin Bank for Fiscal Year 2023

On March 6, 2024, KB Financial Group Inc. disclosed audit reports of Kookmin Bank, its wholly-owned subsidiary, for fiscal year 2023 based on the International Financial Reporting Standards as adopted by the Republic of Korea (including the consolidated and separate financial statements of Kookmin Bank as of and for the years ended December 31, 2023 and 2022 and related notes) received from Samil PricewaterhouseCoopers, its independent auditor. The financial statements in such reports have not been approved by the shareholders of Kookmin Bank and remain subject to change.

KB Financial Group Inc. is furnishing the following documents as exhibits to this Form 6-K filing:

Exhibit 99.1: An English-language translation of the Consolidated Audit Report of Kookmin Bank for FY 2023.

Exhibit 99.2: An English-language translation of the Separate Audit Report of Kookmin Bank for FY 2023.

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.

	KB Financial Group Inc.
	(Registrant)
Date: March 6, 2024	By:	/s/ Jae Kwan Kim
		(Signature)
		Name: Jae Kwan Kim
		Title: Senior Executive Vice President and Chief Finance Officer

Exhibit 99.1

Kookmin Bank and Subsidiaries

Consolidated Financial Statements

December 31, 2023 and 2022

	Page(s)
Independent Auditor’s Report		1~2
Consolidated Financial Statements
Consolidated Statements of Financial Position		3
Consolidated Statements of Comprehensive Income		4
Consolidated Statements of Changes in Equity		5
Consolidated Statements of Cash Flows		6
Notes to the Consolidated Financial Statements		7~215

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of

Kookmin Bank

Opinion

We have audited the accompanying consolidated financial statements of Kookmin Bank and its subsidiaries (collectively referred to as the “Group”) which comprise the consolidated statement of financial position as at December 31, 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of Kookmin Bank and its subsidiaries as at December 31, 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

Basis for Opinion

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the consolidated financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other Matters

The consolidated financial statements of the Group for the year ended December 31, 2022, were audited by KPMG Samjong who expressed an unqualified opinion on those statements on March 7, 2023.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

1

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 6, 2024

This report is effective as of March 5, 2024, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

2

Kookmin Bank and Subsidiaries

Consolidated Statements of Financial Position

December 31, 2023 and 2022

(In millions of Korean won)	Notes		December 31, 2023		December 31, 2022
Assets
Cash and due from financial institutions		4,6,7,36	W	23,637,007	W	25,127,794
Financial assets at fair value through profit or loss		4,6,8,12		19,700,714		21,213,408
Derivative financial assets		4,6,9		5,038,961		7,767,592
Loans measured at amortized cost		4,6,8,10,11		385,404,070		374,671,976
Financial investments		4,6,8,12		78,350,848		75,250,169
Investments in associates		13		589,311		529,981
Property and equipment		8,14		3,768,598		3,837,511
Investment property		14		347,480		345,156
Intangible assets		15		1,019,673		1,054,696
Net defined benefit asset		23		228,565		307,749
Current income tax assets		32		228,880		192,041
Deferred income tax assets		16,32		249,512		181,257
Assets held for sale		17		208,229		211,757
Other assets		4,6,18		11,241,005		7,078,425
Total assets			W	530,012,853	W	517,769,512
Liabilities
Financial liabilities at fair value through profit or loss		4,6	W	93,438	W	108,862
Derivative financial liabilities		4,6,9		4,445,352		7,271,434
Deposits		4,6,19		393,246,702		381,746,749
Borrowings		4,6,20		34,990,075		45,073,117
Debentures		4,6,21		31,811,407		29,787,722
Provisions		22		929,594		533,370
Net defined benefit liabilities		23		7,841		16,243
Current income tax liabilities		32		38,545		63,029
Deferred income tax liabilities		16,32		502,992		153,844
Other liabilities		4,6,24,30		27,398,180		19,291,883
Total liabilities				493,464,126		484,046,253
Equity
Capital stock		25		2,021,896		2,021,896
Hybrid securities		25		1,282,935		873,850
Capital surplus		25		4,735,404		5,025,335
Accumulated other comprehensive income		25,34		614,395		12,751
Retained earnings		25,33,34		27,718,412		25,834,192
(Provision of regulatory reserve for credit losses December 31, 2023 : W 3,018,015 million December 31, 2022 : W 2,915,162 million)
(Amounts estimated to be appropriated (reversed) December 31, 2023 : W (221,216) million December 31, 2022 : W 102,853 million)
Equity attributable to the shareholder of the Parent Company				36,373,042		33,768,024
Non-controlling interests				175,685		(44,765	)
Total equity				36,548,727		33,723,259
Total liabilities and equity			W	530,012,853	W	517,769,512

The above consolidated statements of financial position should be read in conjunction with the accompanying notes.

3

Kookmin Bank and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2023 and 2022

(In millions of Korean won)	Notes		2023			2022
Interest income			W	22,347,123		W	15,358,701
Interest income from financial instruments at fair value through other comprehensive income and amortized cost				21,901,583			15,068,856
Interest income from financial instruments at fair value through profit or loss				445,540			289,845
Interest expense				(12,477,056	)		(6,067,680	)
Net interest income		26		9,870,067			9,291,021
Fee and commission income				1,602,820			1,530,158
Fee and commission expense				(434,537	)		(433,550	)
Net fee and commission income		27		1,168,283			1,096,608
Net gains on financial instrument at fair value through profit or loss		28		759,985			210,581
Net other operating expenses		29		(1,340,451	)		(944,100	)
General and administrative expenses		14,15,23,30,40		(4,521,766	)		(4,697,951	)
Operating income before provision for credit losses				5,936,118			4,956,159
Provision for credit losses		7,11,12,18,22		(1,608,128	)		(1,121,170	)
Net operating income				4,327,990			3,834,989
Share of profit of associates		13		117			12,666
Net other non-operating expenses		31		(98,330	)		(37,865	)
Net non-operating expenses				(98,213	)		(25,199	)
Profit before income tax expense				4,229,777			3,809,790
Income tax expense		32		(1,079,825	)		(1,081,483	)
Profit for the period				3,149,952			2,728,307
(Adjusted profit after provision of regulatory reserve for credit losses		25
December 31, 2023 : W 3,482,715 million
December 31, 2022 : W 2,893,162 million)
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities		23		(48,416	)		178,516
Gains (losses) on equity securities at fair value through other comprehensive income				26,125			(953,990	)
Items that may be subsequently reclassified to profit or loss:
Currency translation differences				(33,925	)		145,979
Gains (losses) on debt securities at fair value through other comprehensive income				696,233			(467,183	)
Share of other comprehensive income (loss) of associates				1,132			(64	)
Losses on hedging instruments of net investments in foreign operations		9		(17,324	)		(64,990	)
Gains (losses) on cash flow hedging instruments		9		(12,904	)		34,010
Other comprehensive income (loss) for the period, net of tax		34		610,921			(1,127,722	)
Total comprehensive income for the period			W	3,760,873		W	1,600,585
Profit (loss) attributable to:
Shareholder of the Parent Company			W	3,261,499		W	2,996,015
Non-controlling interests				(111,547	)		(267,708	)
			W	3,149,952		W	2,728,307
Total comprehensive income (loss) for the period attributable to:
Shareholder of the Parent Company			W	3,889,625		W	1,856,632
Non-controlling interests				(128,752	)		(256,047	)
			W	3,760,873		W	1,600,585

The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.

4

Kookmin Bank and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2023 and 2022

	Attributable to the shareholder of the Parent Company													Non-controlling interests			Total equity
(In millions of Korean won)	Capital stock		Hybrid securities		Capital surplus			Accumulated other comprehensive income			Retained earnings
Balance as of January 1, 2022	W	2,021,896	W	574,523	W	5,025,335		W	1,395,156		W	23,660,721		W	211,282		W	32,888,913
Comprehensive income for the period
Profit for the period		—		—		—			—			2,996,015			(267,708	)		2,728,307
Remeasurements of net defined benefit liabilities		—		—		—			178,310			—			206			178,516
Gains (losses) on equity securities at fair value through other comprehensive income		—		—		—			(1,197,012	)		243,022			—			(953,990	)
Currency translation differences		—		—		—			133,064			—			12,915			145,979
Gains on debt securities at fair value through other comprehensive income		—		—		—			(465,723	)		—			(1,460	)		(467,183	)
Share of other comprehensive loss of associates		—		—		—			(64	)		—			—			(64	)
Losses on hedging instruments of net investments in foreign operations		—		—		—			(64,990	)		—			—			(64,990	)
Gains on cash flow hedging instruments		—		—		—			34,010			—			—			34,010
Total comprehensive income for the period		—		—		—			(1,382,405	)		3,239,037			(256,047	)		1,600,585
Transactions with the shareholder
Dividends		—		—		—			—			(1,031,167	)		—			(1,031,167	)
Issuance of hybrid securities		—		299,327		—			—			—			—			299,327
Dividends on hybrid securities		—		—		—			—			(34,399	)		—			(34,399	)
Total transactions with the shareholder		—		299,327		—			—			(1,065,566	)		—			(766,239	)
Balance as of December 31, 2022	W	2,021,896	W	873,850	W	5,025,335		W	12,751		W	25,834,192		W	(44,765	)	W	33,723,259
Balance as of January 1, 2023	W	2,021,896	W	873,850	W	5,025,335		W	12,751		W	25,834,192		W	(44,765	)	W	33,723,259
Comprehensive income for the period
Profit for the period		—		—		—			—			3,261,499			(111,547	)		3,149,952
Remeasurements of net defined benefit liabilities		—		—		—			(49,108	)		—			692			(48,416	)
Gains (losses) on equity securities at fair value through other comprehensive income		—		—		—			(357	)		26,482			—			26,125
Currency translation differences		—		—		—			(15,802	)		—			(18,123	)		(33,925	)
Losses on debt securities at fair value through other comprehensive income		—		—		—			696,007			—			226			696,233
Share of other comprehensive loss of associates		—		—		—			1,132			—			—			1,132
Losses on hedging instruments of net investments in foreign operations		—		—		—			(17,324	)		—			—			(17,324	)
Losses on cash flow hedging instruments		—		—		—			(12,904	)		—			—			(12,904	)
Total comprehensive income for the period		—		—		—			601,644			3,287,981			(128,752	)		3,760,873
Transactions with the shareholder
Dividends		—		—		—			—			(1,346,582	)		—			(1,346,582	)
Issuance of hybrid securities		—		409,085		—			—			—			—			409,085
Dividends on hybrid securities		—		—		—			—			(57,179	)		—			(57,179	)
Ownership changes in subsidiaries		—		—		(289,931	)		—			—			349,202			59,271
Total transactions with the shareholder		—		409,085		(289,931	)		—			(1,403,761	)		349,202			(935,405	)
Balance as of December 31, 2023	W	2,021,896	W	1,282,935	W	4,735,404		W	614,395		W	27,718,412		W	175,685		W	36,548,727

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.

5

Kookmin Bank and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2023 and 2022

(In millions of Korean won) Notes	Notes	2023			2022
Cash flows from operating activities
Profit for the period		W	3,149,952		W	2,728,307
Adjustment for non-cash items
Net gains on financial instruments at fair value through profit			(845,293	)		(35,202	)
Net gains on derivative financial instrument for hedging purposes			(6,597	)		(28,984	)
Provision for credit losses			1,608,128			1,121,172
Net losses on financial investments			74,549			7,069
Share of profit of associates			(117	)		(12,666	)
Depreciation and amortization expense			569,173			546,505
Other net losses (gains) on property and equipment/intangible assets			18,801			(37,402	)
Share-based payment			24,330			15,169
Post-employment benefits			108,299			167,049
Net interest income (expense)			(183,360	)		140,022
Losses on foreign currency translation			98,458			403,201
Other expenses			86,745			121,304
			1,553,116			2,407,237
Changes in operating assets and liabilities
Financial assets at fair value through profit or loss			964,757			(1,286,906	)
Derivative financial instrument			(71,173	)		171,107
Loans measured at amortized cost			(11,836,507	)		(12,832,141	)
Current income tax assets			(16,330	)		(117,679	)
Deferred income tax assets			(68,331	)		(30,828	)
Other assets			(3,571,681	)		(1,260,800	)
Financial liabilities at fair value through profit or loss			(29,240	)		(11,866	)
Deposits			11,055,701			17,771,160
Deferred income tax liabilities			122,482			(74,165	)
Other liabilities			6,169,494			(1,317,782	)
			2,719,172			1,010,100
Net cash inflow from operating activities			7,422,240			6,145,644
Cash flows from investing activities
Net cash flows from derivative financial instrument for hedging purposes			21,497			(1,774	)
Disposal of financial assets at fair value through profit or loss			7,283,632			7,165,287
Acquisition of financial assets at fair value through profit or loss			(5,820,627	)		(8,544,547	)
Disposal of financial investments			33,011,892			17,993,936
Acquisition of financial investments			(34,487,072	)		(32,223,758	)
Disposal of investments in associates			62,988			47,178
Acquisition of investments in associates			(120,660	)		(272,448	)
Disposal of property and equipment			3,028			13,931
Acquisition of property and equipment			(156,262	)		(188,828	)
Disposal of intangible assets			—			245
Acquisition of intangible assets			(106,633	)		(66,475	)
Net cash flows from changes in ownership of subsidiaries			(24,037	)		55,369
Others			(18,676	)		14,657
Net cash outflow from investing activities			(350,930	)		(16,007,227	)
Cash flows from financing activities
Net cash flows from derivative financial instrument for hedging purposes			32,370			33,402
Decrease (Increase) in borrowings			(10,475,975	)		11,575,186
Increase in debentures			25,538,802			21,932,190
Decrease in debentures			(23,923,149	)		(22,129,719	)
Payment of dividends			(1,346,582	)		(1,031,167	)
Increase (decrease) in other payables to trust accounts			2,333,656			(1,225,402	)
Issuance of hybrid securities			409,085			299,327
Cash outflow from consolidated equtiy transactions			349,201			—
Others			(743,350	)		699,254
Net cash inflow (outflow) from financing activities			(7,825,942	)		10,153,071
Effect of exchange rate changes on cash and cash equivalents			(38,098	)		(58,464	)
Net increase (decrease) in cash and cash equivalents			(792,730	)		233,024
Cash and cash equivalents at the beginning of the period			23,354,521			23,121,497
Cash and cash equivalents at the end of the period		W	22,561,791		W	23,354,521

The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.

6

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

1. Reporting Entity

Kookmin Bank (the “Bank”) was incorporated in 1963 under the Citizens National Bank Act to provide banking services to the general public and to small and medium-sized enterprises. Pursuant to the Repeal Act of the Citizens National Bank Act, effective January 5, 1995, the Bank’s status changed to a financial institution which operates under the Banking Act and Commercial Act.

The Bank merged with Korea Long Term Credit Bank on December 31, 1998, and with its subsidiaries, Daegu, Busan, Jeonnam Kookmin Mutual Savings & Finance Co., Ltd., on August 22, 1999. Pursuant to the directive from the Financial Services Commission related to the Structural Improvement of the Financial Industry Act, the Bank acquired certain assets, including performing loans, and assumed most of the liabilities of Daedong Bank on June 29, 1998. Also, the Bank completed the merger with Housing and Commercial Bank (“H&CB”) on October 31, 2001, and merged with Kookmin Credit Card Co., Ltd., a majority-owned subsidiary, on September 30, 2003. Meanwhile, the Bank spun off its credit card business segment on February 28, 2011, and KB Kookmin Card Co., Ltd. became a subsidiary of KB Financial Group Inc.

The Bank listed its shares on the Stock Market Division of the Korea Exchange (“KRX”) in September 1994. As a result of the merger with H&CB, the shareholders of the former Kookmin Bank and H&CB received new common shares of the Bank which were relisted on the KRX on November 9, 2001. In addition, H&CB listed its American Depositary Shares (“ADS”) on the New York Stock Exchange (“NYSE”) on October 3, 2000, prior to the merger. Following the merger with H&CB, the Bank listed its ADS on the NYSE on November 1, 2001. The Bank became a wholly owned subsidiary of KB Financial Group Inc. through a comprehensive stock transfer on September 29, 2008. Subsequently, the Bank’s shares and its ADS, each listed on the KRX and the NYSE, were delisted on October 10, 2008 and September 26, 2008, respectively. As of December 31, 2023, the Bank’s paid-in capital is W 2,021,896 million.

The Bank engages in the banking business in accordance with the Banking Act, trust business in accordance with the Financial Investment Services and Capital Markets Act, mobile virtual network business in accordance with Special Act on Support for Financial Innovation, and other relevant businesses. As of December 31, 2023, the Bank operates its Seoul headquarters and 797 domestic branches, and nine overseas branches (excluding five subsidiaries).

2. Basis of Preparation

2.1 Application of Korean IFRS

The Bank and its subsidiaries (collectively the “Group”) maintains its accounting records in Korean won and prepares statutory consolidated financial statements in the Korean language in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying consolidated financial statements have been translated into English from the Korean language consolidated financial statements.

The consolidated financial statements of the Group have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”) that have been adopted by the Republic of Korea.

The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Group’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

7

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

2.1.1 The Group has applied the following amended standards for the first time for its annual reporting period commencing January 1, 2023.

- Issuance of Korean IFRS No.1117 Insurance Contracts

Korean IFRS No.1117 Insurance Contracts replace Korean IFRS No.1104 Insurance Contracts. This standard requires an entity to estimate future cash flows of an insurance contract and measure insurance liabilities using discount rates applied with assumptions and risks at the measurement date and recognize insurance revenue on an accrual basis including services (insurance coverage) provided to the policyholder by each annual reporting period. In addition, investment components (refunds due to termination and maturity) repaid to a policyholder even if an insured event does not occur, are excluded from insurance revenue, and net insurance income and net investment income are presented separately to enable users of the information to understand the sources of net income. These amendments do not have a significant impact on the consolidated financial statements.

- Amendments to Korean IFRS No.1001 Presentation of Financial Statements – Accounting Policy Disclosure

The amendments require an entity to define and disclose their material accounting policy information. IFRS Practice Statement 2 Making Materiality Judgements was amended to explain and demonstrate how to apply the concept of materiality. These amendments do not have a significant impact on the consolidated financial statements.

- Amendments to Korean IFRS No.1008 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Accounting Estimates

The amendments introduce the definition of accounting estimates and clarify how to distinguish changes in accounting estimates from changes in accounting policies. These amendments do not have a significant impact on the consolidated financial statements.

- Amendments to Korean IFRS No.1012 Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction

The amendments narrow the scope of the deferred tax recognition exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. These amendments do not have a significant impact on the consolidated financial statements.

- Amendments to Korean IFRS No.1001 Presentation of Financial Statements – Disclosure of gains or losses on valuation of financial liabilities subject to exercise price adjustment conditions

The amendments require disclosures about gains or losses on valuation for the reporting period (but are limited to those included in profit or loss) for the conversion options or warrants (or financial liabilities with warrants), if all or part of the financial instrument whose exercise price is adjusted due to the issuers’ stock price fluctuations, are classified as financial liabilities according to paragraph 11 of Korean IFRS No.1032 Financial Instruments: Presentation. These amendments do not have a significant impact on the consolidated financial statements.

8

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

- Amendments to Korean IFRS No. 1012 Income Taxes – International Tax Reform: Pillar 2 Model Rules

The amendment reflects the enactment of laws reflecting the Pillar 2 Model Rules for International Tax Reform aimed at reforming international taxation for multinational enterprises. It temporarily relaxes the accounting treatment of deferred tax resulting from this law and requires disclosure of related current year income tax effects. The Group has applied a temporary exemption provision regarding the recognition and disclosure of deferred taxes related to the Pillar 2 rules. As this law is scheduled to be enacted on January 1, 2024, it does not have an impact on consolidated financial statements. Meanwhile, the Group is reviewing the impact of the global minimum tax.

2.1.2 The following new and amended standards have been published that are not mandatory for December 31, 2023 reporting period and have not been adopted by the Group.

- Amendments to Korean IFRS No.1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise the right to defer settlement of the liability or the management’s expectations thereof. Also, the settlement of liability includes the transfer of the entity’s own equity instruments; however, it would be excluded if an option to settle the liability by the transfer of the entity’s own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. In addition, agreements that an entity must comply with after the end of the reporting period do not affect the classification of the relevant liabilities at the end of the reporting period; further, if liabilities that must comply with agreements within 12 months after the reporting period are classified as non-current liabilities as of the end of the reporting period, the entity should disclose the risk that the liabilities may be repaid within 12 months after the reporting period. The amendments should be applied for annual reporting periods beginning on or after January 1, 2024, and early application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

2.2 Measurement Basis

The consolidated financial statements have been prepared based on the historical cost accounting model unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the financial statements of each entity of the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial statements are presented in Korean won, which is the reporting entity’s functional and presentation currency.

2.4 Significant Accounting Estimates

The Group applies accounting policies and uses judgements, accounting estimates, and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses) in preparing the consolidated financial statements. Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

9

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Uncertainties in estimates and assumptions with significant risks that may result in material adjustments to the consolidated financial statements are as follows:

2.4.1 Income taxes

As the income taxes on the Group’s taxable income is calculated by applying the tax laws of various countries and the decisions of tax authorities, there is uncertainty in calculating the final tax effect.

2.4.2 Fair value of financial instruments

The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available is determined by using valuation techniques. Financial instruments, which are not actively traded in the market and those with less transparent market prices, will have less objective fair values and require broad judgment on liquidity, concentration, uncertainty in market factors, assumptions in fair value determination, and other risks.

As described in the significant accounting policies in Note 3.3 Recognition and Measurement of Financial Instruments, diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

2.4.3 Allowances and provisions for credit losses

The Group recognizes and measures allowances for credit losses of debt instruments measured at amortized cost and debt instruments measured at fair value through other comprehensive income. Also, the Group recognizes and measures provisions for credit losses of acceptances and guarantees, and unused loan commitments. Accuracy of allowances and provisions for credit losses is dependent upon estimation of expected cash flows of the borrower subject to individual assessment of impairment, and upon assumptions and variables of model used in collective assessment of impairment and estimation of provisions for credit losses of acceptances and guarantees, and unused loan commitments.

- Allowances and provisions for credit losses (Allowances, acceptances and guarantees, and unused commitments)

Economic uncertainty arising from the complex crises is increasing such as rising interest rates and real economic recession, etc., and asset quality deterioration may raise from increase in obligation due to a rapid interest rate increase. Accordingly, the Group reflected the effect on expected credit losses in an additional way through a comprehensive review of vulnerable sectors in the event of the extinguishment of COVID-19 financial support policies. In addition, the Bank has expanded the scope of lenders to individually assess for allowance, and reviews the risk components comprehensively for potential risks in the event economic uncertainty continues. The Group will continue to monitor the impact on expected credit losses by considering the duration of economic uncertainty and government policies, and the impact on expected credit losses is described in Note 11.1 Changes in allowances for credit losses of loans measured at amortized cost and Note 22.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees.

2.4.4 Net defined benefit asset (liability)

The present value of the net defined benefit asset(liability) is affected by changes in the various factors determined by the actuarial method.

10

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

2.4.5 Impairment of goodwill

The recoverable amounts of cash-generating units are determined based on value-in-use calculations to test whether impairment of goodwill has occurred.

3. Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

3.1 Consolidation

3.1.1 Subsidiaries

Subsidiaries are companies that are controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Also, the existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls the investee. Subsidiaries are fully consolidated from the date when control is transferred to the Group and de-consolidated from the date when control is lost.

If a subsidiary uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that subsidiary’s financial statements in preparing the consolidated financial statements to ensure conformity with the Group’s accounting policies.

Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests, if any. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions (i.e., transactions with owners in their capacity as owners). The difference between fair value of any consideration paid and carrying amount of the subsidiary’s net assets attributable to the additional interests acquired, is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the Group loses control, any investment retained in the former subsidiary is recognized at its fair value at the date when control is lost, with the resulting difference recognized in profit or loss. This fair value will be the fair value on initial recognition of a financial asset in accordance with Korean IFRS No.1109 or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture. In addition, all amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for on the same basis as would be required if the Group had directly disposed of the related assets or liabilities. Therefore, amounts previously recognized in other comprehensive income are reclassified to profit or loss.

The Group accounts for each business combination by applying the acquisition method. The consideration transferred is measured at fair value, and identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are initially measured at acquisition-date fair values. For each business combination, the Group measures non-controlling interests in the acquiree that entitle their holders to a proportionate share of the acquiree’s net assets in the event of liquidation at either (a) fair value or (b) the proportionate share in the recognized amounts of the acquiree’s identifiable net assets. Acquisition-related costs are expensed in the periods in which the costs are incurred.

11

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

In a business combination achieved in stages, the Group shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate. In prior reporting periods, the Group may have recognized changes in the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognized in other comprehensive income shall be reclassified as profit or loss, or retained earnings, on the same basis as would be required if the Group had directly disposed of the previously held equity interest.

The Group applies the book-value method to account for business combinations of entities under common control. Identifiable assets acquired and liabilities assumed in a business combination are measured at their book value on the consolidated financial statements of the Group. In addition, the difference between (a) the sum of consolidated net book value of the assets and liabilities transferred and accumulated other comprehensive income and (b) the consideration paid, is recognized as capital surplus.

3.1.2 Associates

Associates are entities over which the Group has significant influence over the financial and operating policy decisions. Generally, if the Group holds 20% or more of the voting power of the investee, it is presumed that the Group has significant influence.

Investments in associates are initially recognized at cost and equity method is applied after initial recognition. The carrying amount is increased or decreased to recognize the Group’s share of the profit or loss of the investee and changes in the investee’s equity after the date of acquisition. Distributions received from an investee reduce the carrying amount of the investment. Unrealized gains and losses resulting from transactions between the Group and associates are eliminated to the extent of the Group’s share in associates. If unrealized losses are an indication of an impairment that requires recognition in the consolidated financial statements, those losses are recognized for the period.

If associates use accounting policies other than those of the Group for like transactions and events in similar circumstances, if necessary, adjustments shall be made to make the associates’ accounting policies conform to those of the Group when the associates’ financial statements are used by the Group in applying the equity method.

If the Group’s share of losses of associates equals or exceeds its interest in the associates (including long-term interests that, in substance, form part of the Group’s net investment in the associates), the Group discontinues recognizing its share of further losses. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associates.

The Group determines at each reporting period whether there is any objective evidence that the investments in the associates are impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associates and its carrying amount and recognizes the amount as non-operating expenses in the consolidated statement of comprehensive income.

3.1.3 Structured entity

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. When the Group decides whether it has power over the structured entities in which the Group has interests, it considers factors such as the purpose, the form, the substantive ability to direct the relevant activities of a structured entity, the nature of its relationship with a structured entity, and the amount of exposure to variable returns.

12

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.1.4 Funds management

The Group manages and operates trust assets, collective investment, and other funds on behalf of investors. These trusts and funds are not consolidated, except for trusts and funds over which the Group has control.

3.1.5 Intragroup transactions

Intragroup balances, income, expenses, and any unrealized gains and losses resulting from intragroup transactions are eliminated in full, in preparing the consolidated financial statements. If unrealized losses are an indication of an impairment that requires recognition in the consolidated financial statements, those losses are recognized for the period.

3.2 Foreign Currency

3.2.1 Foreign currency transactions

A foreign currency transaction is recorded, at initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate which is the spot exchange rate at the end of the reporting period. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was measured and non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Except for the exchange differences for the net investment in a foreign operation and the financial liability designated as a hedging instrument of net investment, exchange differences arising on the settlement of monetary items or on translating monetary items are recognized in profit or loss. When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

3.2.2 Foreign operations

The results and financial position of a foreign operation, whose functional currency differs from the Group’s presentation currency, are translated into the Group’s presentation currency based on the following procedures.

If the functional currency of a foreign operation is not the currency of a hyperinflationary economy, assets and liabilities for each statement of financial position presented (including comparatives) are translated at the closing rate at the end of the reporting period, income and expenses for each statement of comprehensive income presented (including comparatives) are translated using the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and are translated into the presentation currency at the closing rate.

13

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss (as a reclassification adjustment) when the gain or loss on disposal is recognized. On the partial disposal of a subsidiary that includes a foreign operation, the Group re-attributes the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income to the non-controlling interests in that foreign operation. In any other partial disposal of a foreign operation, the Group reclassifies to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income.

3.2.3 Translation of the net investment in a foreign operation

A monetary item that is receivable from or payable to a foreign operation, for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the Group’s net investment in that foreign operation. The foreign currency difference arising from that monetary item is recognized in other comprehensive income and shall be reclassified to profit or loss on disposal of the net investment.

3.3 Recognition and Measurement of Financial Instruments

3.3.1 Initial recognition

The Group recognizes a financial asset or a financial liability in its consolidated statement of financial position when the Group becomes party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned) is recognized and derecognized using trade date accounting.

For financial reporting purpose, the Group classifies (a) financial assets as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, or financial assets at amortized cost and (b) financial liabilities as financial liabilities at fair value through profit or loss, or other financial liabilities. These classifications are based on the business model for managing financial instruments and the contractual cash flow characteristics of the financial instrument at initial recognition.

At initial recognition, a financial asset or financial liability is measured at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. The fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value of a financial instrument on initial recognition is normally the transaction price (that is, the fair value of the consideration given or received) in an arm’s length transaction.

3.3.2 Subsequent measurement

After initial recognition, financial instruments are measured at amortized cost or fair value based on classification at initial recognition.

3.3.2.1 Amortized cost

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

14

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.3.2.2 Fair value

The Group uses quoted price in an active market which is based on listed market price or dealer price quotations of financial instruments traded in an active market as best estimate of fair value. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

If there is no active market for a financial instrument, fair value is determined either by using a valuation technique or independent third-party valuation service. Valuation techniques include using recent arm’s length market transactions between knowledgeable and willing parties, if available, referencing the current fair value of another instrument that is substantially the same, discounted cash flow analysis, and option pricing models.

The Group uses valuation models that are commonly used by market participants and customized for the Group to determine fair values of common over-the-counter (“OTC”) derivatives such as options, interest rate swaps, and currency swaps which are based on the inputs observable in markets. However, for some complex financial instruments that require fair value measurement by valuation techniques based on certain assumptions because some or all inputs used in the model are not observable in the market, the Group uses internal valuation models developed from general valuation models or valuation results from independent external valuation institutions.

In addition, the fair value information recognized in the consolidated statement of financial position is classified into the following fair value hierarchy, reflecting the significance of the input variables used in the fair value measurement.

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date

Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 : Unobservable inputs for the asset or liability

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety.

If a fair value measurement uses observable inputs that require significant adjustment using unobservable inputs, that measurement is a Level 3 measurement.

The Group’s Fair Value Evaluation Committee, which consists of the risk management department, trading department and accounting department, reviews the appropriateness of internally developed valuation models, and approves the selection and changing of the external valuation institution and other considerations related to fair value measurement. The results of regular verification of the internally developed valuation models are reported to the Market Risk Management Subcommittee.

If the valuation technique does not reflect all factors which market participants would consider in pricing the asset or liability, the fair value is adjusted to reflect those factors. Those factors include counterparty credit risk, liquidity risk, and others.

The Group uses a valuation technique which maximizes the use of market inputs and minimizes the use of entity-specific inputs. It incorporates all factors that market participants would consider in pricing the asset or liability and is consistent with economic methodologies applied for pricing financial instruments. Periodically, the Group calibrates the valuation technique and tests its validity using prices of observable current market transactions of the same instrument or based on other relevant observable market data.

15

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.3.3 Derecognition

Derecognition is the removal of a previously recognized financial asset or financial liability from the consolidated statement of financial position. The derecognition criteria for financial assets and financial liabilities are as follows:

3.3.3.1 Derecognition of financial assets

A financial asset is derecognized when the contractual rights to the cash flows from the financial assets expire or the Group transfers substantially all the risks and rewards of ownership of the financial asset, or the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and the Group has not retained control. Therefore, if the Group does not transfer substantially all the risks and rewards of ownership of the financial asset, the Group continues to recognize the financial asset to the extent of its continuing involvement in the financial asset.

If the Group transfers the contractual rights to receive the cash flows of the financial asset but retains substantially all the risks and rewards of ownership of the financial asset, the Group continues to recognize the transferred asset in its entirety and recognize a financial liability for the consideration received.

The Group writes off a financial asset when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. In general, the Group considers write-off when it is determined that the debtor does not have sufficient funds or income to cover the principal and interest. The write-off decision is made in accordance with internal regulations. After the write-off, the Group can continue to collect the written-off loans according to the internal policy. Recovered amounts from financial assets previously written-off are recognized in profit or loss.

3.3.3.2 Derecognition of financial liabilities

A financial liability is derecognized from the consolidated statement of financial position when it is extinguished (i.e., the obligation specified in the contract is discharged, canceled or expires).

3.3.4 Offsetting

A financial asset and a financial liability are offset, and the net amount is presented in the consolidated statement of financial position when, and only when, the Group currently has a legally enforceable right to offset the recognized amounts and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on a future event and must be legally enforceable in the normal course of business, the event of default, and the event of insolvency or bankruptcy of the Group and all of the counterparties.

16

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.4 Cash and Due from Financial Institutions

Cash and due from financial institutions include cash on hand, foreign currency, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and due from financial institutions. Cash and due from financial institutions are measured at amortized cost.

3.5 Non-derivative Financial Assets

3.5.1 Financial assets at fair value through profit or loss

Financial assets are classified as financial assets at fair value through profit or loss unless they are classified as financial assets at amortized cost or at fair value through other comprehensive income.

The Group may designate certain financial assets upon initial recognition as at fair value through profit or loss when the designation eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

After initial recognition, a financial asset at fair value through profit or loss is measured at fair value and gains or losses arising from a change in fair value are recognized in profit or loss. Interest income using the effective interest method and dividend income from financial assets at fair value through profit or loss are also recognized in profit or loss.

3.5.2 Financial assets at fair value through other comprehensive income

The Group classifies below financial assets as financial assets at fair value through other comprehensive income:

• Debt instruments that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and where the assets’ cash flows solely represent payments of principal and interest on the principal amount outstanding and;

• Equity instruments that are not held for short-term trading but held for strategic investment, and designated as financial assets at fair value through other comprehensive income

After initial recognition, a financial asset at fair value through other comprehensive income is measured at fair value. Gains or losses arising from a change in fair value, other than dividend income, interest income calculated using the effective interest method and exchange differences arising on monetary items which are recognized directly in profit or loss, are recognized in other comprehensive income in equity.

When the financial assets at fair value through other comprehensive income is disposed of, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. However, cumulative gain or loss of equity instruments designated at fair value through other comprehensive income is reclassified to retained earnings not to profit or loss at disposal.

A financial asset at fair value through other comprehensive income denominated in foreign currency is translated at the closing rate. Exchange differences resulting from changes in amortized cost are recognized in profit or loss, and other changes are recognized in equity.

17

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.5.3 Financial assets at amortized cost

A financial asset, which is held within the business model whose objective is achieved by collecting contractual cash flows, and where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding, is classified as a financial asset at amortized cost. After initial recognition, a financial asset at amortized cost is measured at amortized cost using the effective interest method and interest income is calculated using the effective interest method.

3.6 Expected Credit Losses of Financial Assets (Debt Instruments)

The Group recognizes loss allowances for expected credit losses at the end of the reporting period for financial assets at amortized cost and fair value through other comprehensive income except for financial assets at fair value through profit or loss.

Expected credit losses are estimated at present value of probability-weighted amount that is determined by evaluating a range of possible outcomes. The Group measures expected credit losses by reflecting all reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.

The approaches of measuring expected credit losses in accordance with Korean IFRS are as follows:

• General approach: for financial assets and unused loan commitments not subject to the below approach

• Credit-impaired approach: for financial assets that are credit-impaired at the time of acquisition

Application of general approach is differentiated depending on whether credit risk has increased significantly after initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures loss allowances for that financial instrument at an amount equal to 12-month expected credit losses, whereas if the credit risk on a financial instrument has increased significantly since initial recognition, the Group measures loss allowances for a financial instrument at an amount equal to the lifetime expected credit losses. Lifetime is the period until the contractual maturity date of financial instruments and means the expected life.

The Group assesses whether the credit risk has increased significantly using the following criteria, and if one or more of the following criteria are met, it is deemed as significant increase in credit risk. Criterion of more than 30 days past due is applied to all subsidiaries, and other criteria are applied selectively considering specific indicators of each subsidiary or additionally considering specific indicators of each subsidiary. If the contractual cash flows of a financial asset have been renegotiated or modified, the Group assesses whether the credit risk has increased significantly using the same following criteria.

• More than 30 days past due

• Decline in credit rating at the end of the reporting period by certain notches or more compared to the time of initial recognition

• Subsequent managing ratings below certain level in the early warning system

• Debt restructuring (except for impaired financial assets) and

• Credit delinquency information of Korea Federation of Banks, etc.

18

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

The Group generally considers the loan to be credit-impaired if one or more of the following criteria are met:

• 90 days or more past due

• Legal proceedings related to collection

• A borrower registered on the credit management list of Korea Federation of Banks

• A corporate borrower with the credit rating C and D

• Refinancing and

• Debt restructuring

3.6.1 Forward-looking information

The Group uses forward-looking information, when determining whether credit risk has increased significantly and measuring expected credit losses.

The Group assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses. The Group has derived a correlation between the time series data of 13 years or more and the key macroeconomic variables and calculates the expected credit losses by reflecting the results of the correlation on the risk component.

The correlation between the major macroeconomic variables and the credit risk are as follows:

Key macroeconomic variables	Correlation between the major macroeconomic variables and the credit risk
Domestic GDP growth rate	(-)
Benchmark interest rate	(+)
Three-year yields of Korea treasury bond	(+)
AA- rated corporate bond (3-year)	(+)
BBB- rated corporate bond (3-year)	(+)
Composite stock index	(-)
Rate of increase in housing transaction price index (Metropolitan Area)	(-)
WTI crude oil price	(+)
Growth rate of construction investment	(-)
Current account balance	(-)

Forward-looking information used in the calculation of expected credit losses is based on the macroeconomic forecasts utilized by management of the Group for its business plan considering reliable external agency’s forecasts and others. The forward-looking information is generated by KB Research with a comprehensive approach to capture the possibility of various economic forecast scenarios that are derived from the internal and external viewpoints of the macroeconomic situation. The Group determines the macroeconomic variables to be used in forecasting future conditions of the economy, considering the direction of the forecast scenario and the significant relationship between macroeconomic variables and time series data. Some macroeconomic variables used are different than those used in the previous year.

As of December 31, 2023, the Bank measures expected credit losses by applying both the worse scenario and the crisis scenario, taking into consideration the potential credit risk resulting from the uncertain financial environment locally and globally and the rapid economic recession.

If we assume a probability weight of 100% for each scenario, the impact of the bank on expected credit loss allowances and provisions would be as follows.

19

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

(In millions of Korean won)
Scenario	Applied probability weight			Assumption of 100%		Difference from the book value
Deterioration		80	%		2,420,827		(467,277	)
Crisis situation		20	%		4,753,198		1,865,094

3.6.2 Measuring expected credit losses on financial assets at amortized cost

The expected credit losses of financial assets at amortized cost are measured as present value of the difference between the contractual cash flows to be received and the cash flows expected to be received. The Group estimates expected future cash flows for financial assets that are individually significant. The Group selects the individually significant financial assets by comprehensively considering quantitative and qualitative factors (such as debt restructuring or negative net assets, etc.) when the credit risk has increased significantly or the financial asset in credit-impaired (individual assessment of impairment).

For financial assets that are not individually significant, the Group collectively estimates expected credit losses by grouping loans with a homogeneous credit risk profile (collective assessment of impairment).

3.6.2.1 Individual assessment of impairment

Individual assessment of impairment losses is performed using management’s best estimate on the present value of expected future cash flows. The Group uses all the available information including financial condition of the borrower such as operating cash flow and net realizable value of any collateral held.

3.6.2.2 Collective assessment of impairment

Collective assessment of impairment losses is performed by using a methodology based on historical loss experience and reflecting forward-looking information. Such a process incorporates factors such as type of collateral, type of product, type of borrower, credit rating, size of portfolio, and recovery period and applies Probability of Default (“PD”) on a group of assets and Loss Given Default (“LGD”) by type of recovery method. Also, the Group applies certain assumptions to model expected credit losses assessment and to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce the gap between loss estimate and actual loss experience.

The lifetime expected credit losses are measured by applying the PD to the carrying amount, which is calculated by deducting the expected principal repayment amount from the carrying amount as of the reporting date, and the LGD adjusted to reflect changes in the carrying amount.

3.6.3 Measuring expected credit losses on financial assets at fair value through other comprehensive income

The Group measures expected credit losses on financial assets at fair value through other comprehensive income in a manner that is consistent with the requirements that are applicable to financial assets at amortized cost. However, loss allowances are recognized in other comprehensive income. Upon disposal or repayment of financial assets at fair value through other comprehensive income, the amount of loss allowances is reclassified from other comprehensive income to profit or loss.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.7 Derivative Financial Instruments

The Group enters into numerous derivative financial instrument contracts such as currency forwards, interest rate swaps, currency swaps, and others for trading purposes or to manage its interest rate risk, currency risk, and others. The Group’s derivative financial instruments business focuses on addressing the needs of the Group’s corporate clients to hedge their risk exposure and to hedge the Group’s risk exposure that results from such client contracts. These derivative financial instruments are presented as derivative financial instruments in the consolidated financial statements irrespective of transaction purpose and subsequent measurement requirement.

The Group designates certain derivative financial instruments as hedging instruments to hedge the risk of changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge) and the risk of changes in cash flow (cash flow hedge). The Group designates certain derivative and non-derivative financial instruments as hedging instruments to hedge the currency risk of the net investment in a foreign operation (hedge of net investment).

At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge. This documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the inception date of hedging relationship and how the Group will assess the hedging instrument’s effectiveness in offsetting the changes in the hedged item’s fair value or cash flows attributable to the hedged risk.

Derivative financial instruments are initially recognized at fair value. After initial recognition, derivative financial instruments are measured at fair value, and changes therein are accounted for as described below.

3.7.1 Derivative financial instruments held for trading

All derivative financial instruments, except for derivatives that are designated and qualify for hedge accounting, are measured at fair value. Gains or losses arising from changes in fair value are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.2 Derivative financial instruments for fair value hedges

If derivative financial instruments are designated and qualify for fair value hedges, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in profit or loss as part of other operating income or expenses. If the hedged items are equity instruments for which the Group has elected to present changes in fair value in other comprehensive income, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in other comprehensive income.

Fair value hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. Once fair value hedge accounting is discontinued, the adjustment to the carrying amount of a hedged item is amortized to profit or loss by the maturity of the financial instrument using the effective interest method.

3.7.3 Derivative financial instruments for cash flow hedges

The effective portion of changes in fair value of derivative financial instruments that are designated and qualify for cash flow hedges is recognized in other comprehensive income, limited to the cumulative change in fair value (present value) of the hedged item (the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge. The ineffective portion is recognized in profit or loss as other operating income or expenses. The associated gains or losses that were previously recognized in other

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

comprehensive income are reclassified from equity to profit or loss (other operating income or expenses) as a reclassification adjustment in the same period or periods during which the hedged forecast cash flows affect profit or loss. Cash flow hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. When the cash flow hedge accounting is discontinued, the cumulative gains or losses on the hedging instrument that have been recognized in other comprehensive income are reclassified to profit or loss over the period in which the forecast transaction occurs. If the forecast transaction is no longer expected to occur, the cumulative gains or losses that have been recognized in other comprehensive income are immediately reclassified to profit or loss.

3.7.4 Derivative and non-derivative financial instruments designated for net investments hedges

If derivative and non-derivative financial instruments are designated and qualify for the net investment hedge, the effective portion of changes in fair value of the hedging instrument is recognized in other comprehensive income and the ineffective portion is recognized in profit or loss as other operating income or expenses. The cumulative gains or losses on the hedging instrument relating to the effective portion of the hedge that have been accumulated in other comprehensive income will be reclassified from other comprehensive income to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation.

3.7.5 Risk management strategy

Interest rate risk arises from changes in fair value resulting from changes in the discount rate of fixed rate financial instruments and changes in cash flows resulting from changes in the nominal interest rate of floating rate financial instruments. Foreign currency risk arises from the net investment in a foreign operation, whose functional currency differs from the Group’s functional currency.

While the Group hedges the interest rate risk in its entirety, the Group only hedges the foreign currency risk related to the proportional part of the notional amount.

At inception of the hedge relationship, the Group reviews the hedge effectiveness; and periodically reviews the effectiveness in order to confirm that economic relationship between the hedged item and the hedging instrument exists. The requirement that an economic relationship exists means that the hedging instrument and the hedged item have values that generally move in the opposite direction due to the same risk, which is the hedged risk. The Group designates the exposure of the hedged item opposite to the exposure of hedging instruments in order to meet economic relationship requirement.

The Group designates the hedge relationship at a one-on-one ratio between the nominal amount of the hedging instrument and the nominal amount of the hedged item.

Hedge ineffectiveness could arise because of differences in the underlying parameters (acquisition date, credit risk or liquidity and others) or other differences between the hedging instrument and the hedged item that the Group accepts in order to achieve a cost-effective hedging relationship.

The Group avoids the cash flow variability of its floating rate debt securities by using interest rate swaps. Both are linked to the same interest rate; however, the paid amount of the floating rate may be set on different dates. Even if the variability of interest rate related cash flows (as a risk factor) is designated as a hedged item, the difference in set-up dates creates a hedge ineffectiveness.

The Group avoids the variability of fair values of its fixed rate debt securities by using interest rate swaps. The method of calculating the number of dates for paying fixed-rate interest can be different between hedging instruments and hedged items. Even if the variability of the fair value due to the benchmark interest rate (as a risk factor) is designated as a hedged item, the difference in the method of calculating the number of the dates creates a hedge ineffectiveness.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.7.6 Embedded derivatives

An embedded derivative is separated from the host contract and accounted for as a derivative if, and only if, (a) the economic characteristics and risks of the embedded derivative are not closely related to those of the host contract, (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative and (c) the hybrid contract contains a host that is not a financial asset and is not designated as at fair value through profit or loss. Gains or losses arising from a change in fair value of an embedded derivative separated from the host contract are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.7 Day one gains or losses

If the Group uses a valuation technique that incorporates unobservable inputs for the fair value of the OTC derivatives at initial recognition, there may be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. If the fair value is subsequently determined using observable inputs, the remaining deferred amount is recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss or other operating income or expenses.

3.8 Property and Equipment

3.8.1 Recognition and measurement

Property and equipment that qualify for recognition as an asset are measured at cost and subsequently carried at its cost less any accumulated depreciation and any accumulated impairment losses.

The cost of property and equipment includes any costs directly attributable to bringing the asset to the location and the asset’s condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent expenditures are capitalized only when they prolong the useful life or enhance values of the assets, but the costs of the day-to-day servicing of the assets such as repair and maintenance costs are recognized in profit or loss as incurred. When part of an item of property and equipment has a useful life different from that of the entire asset, it is recognized as a separate asset.

3.8.2 Depreciation

Land is not depreciated, whereas other property and equipment are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The depreciable amount of an asset is determined after deducting its residual value.

Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

The depreciation method and estimated useful life of property and equipment are as follows:

Property and equipment	Depreciation method	Estimated useful life
Buildings	Straight-line	20 ~ 40 years
Leasehold improvements	Diminishing-balance	4 years
Equipment and vehicles	Diminishing-balance	4 years

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

3.9 Investment Properties

3.9.1 Recognition and measurement

Properties held to earn rentals or for capital appreciation or both are classified as investment properties. Investment properties are measured initially at their cost and subsequently the cost model is used.

3.9.2 Depreciation

Land is not depreciated, whereas other investment properties are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The depreciable amount of an asset is determined after deducting its residual value.

The depreciation method and estimated useful life of investment properties are as follows:

Investment properties	Depreciation method	Estimated useful life
Buildings	Straight-line	40 years

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

3.10 Intangible Assets

Intangible assets are measured initially at cost and subsequently carried at their cost less any accumulated amortization and any accumulated impairment losses.

Intangible assets, except for goodwill and membership rights, are amortized using the straight-line or declining-balance method with no residual value over their estimated useful life since the assets are available for use.

Intangible assets	Amortization method	Estimated useful life
Industrial property rights	Straight-line	5 years
Software	Straight-line	4 ~ 5 years
Others	Straight-line / Declining-balance	1 ~ 13 years

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Where an intangible asset is not being amortized because its useful life is indefinite, the Group carries out a review in each accounting period to confirm whether events and circumstances still support an indefinite useful life assessment. If they do not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.10.1 Goodwill

3.10.1.1 Recognition and measurement

Goodwill related to business combinations before January 1, 2010, is stated at its carrying amount, which was recognized under the Group’s previous accounting policy, prior to the transition to Korean IFRS.

Goodwill acquired from business combinations after January 1, 2010, is initially measured as the excess of the consideration transferred over the fair value of net identifiable assets acquired and liabilities assumed. If the fair value of net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, the difference is recognized in profit or loss.

For each business combination, the Group decides at the acquisition date whether the non-controlling interests in the acquiree are initially measured at fair value or at the non-controlling interests’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets.

Acquisition-related costs incurred to effect a business combination are charged to expenses in the periods in which the costs are incurred and the services are received, except for the costs to issue debt or equity securities.

3.10.1.2 Additional acquisitions of non-controlling interests

Additional acquisitions of non-controlling interests are accounted for as equity transactions. Therefore, no additional goodwill is recognized.

3.10.1.3 Subsequent measurement

Goodwill is not amortized and is stated at cost less accumulated impairment losses. Goodwill that forms part of the carrying amount of an investment in associates is not separately recognized, and an impairment loss recognized is not allocated to any asset, including goodwill, which forms part of the carrying amount of the investment in the associates.

3.10.2 Subsequent expenditures

Subsequent expenditures are capitalized only when they enhance values of the assets. Internally generated intangible assets, such as goodwill and trade name, are not recognized as assets but expensed as incurred.

3.11 Impairment of Non-financial Assets

The Group assesses at the end of each reporting period whether there is any indication that a non-financial asset, except for (a) deferred income tax assets, (b) assets arising from employee benefits and (c) non-current assets (or group of assets to be sold) classified as held for sale, may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. However, irrespective of whether there is any indication of impairment, the Group tests (a) goodwill acquired in a business combination, (b) intangible assets with an indefinite useful life and (c) intangible assets not yet available for use for impairment annually by comparing their carrying amount with their recoverable amount.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

The recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit that are discounted by a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss and recognized immediately in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units that is expected to benefit from the synergies of the combination. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit.

An impairment loss recognized for goodwill is not reversed in a subsequent period. The Group assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset, other than goodwill, may no longer exist or may have decreased, and an impairment loss recognized in prior periods for an asset other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss cannot exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

3.12 Non-current Assets Held for Sale

A non-current asset or disposal group is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be highly probable. A non-current asset (or disposal group) classified as held for sale is measured at the lower of (a) its carrying amount measured in accordance with the applicable Korean IFRS, immediately before the initial classification of the asset (or disposal group) as held for sale and (b) fair value less costs to sell.

A non-current asset is not depreciated (or amortized) while it is classified as held for sale or is part of a disposal group classified as held for sale.

Impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. Gain is recognized for any subsequent increase in fair value less costs to sell of an asset, but not in excess of the cumulative impairment loss that has been recognized.

3.13 Financial Liabilities

The Group classifies financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liability.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.13.1 Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading or designated as such at initial recognition. After initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. At initial recognition, transaction costs that are directly attributable to the acquisition are recognized in profit or loss as incurred.

In relation to securities lending or borrowing transactions, when the Group borrows securities from the Korea Securities Depository and others, these transactions are managed as off-balance sheet items. The borrowed securities are treated as financial liabilities at fair value through profit or loss when they are sold. Changes in fair value at the end of the reporting period and difference between carrying amount at redemption and purchased amount are recognized in profit or loss.

3.13.2 Other financial liabilities

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities. Other financial liabilities include deposits, borrowings, debentures, and others. At initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. After initial recognition, other financial liabilities are measured at amortized cost, and its interest expense is recognized, using the effective interest method.

When an asset is sold under repurchase agreement, the Group continues to recognize the asset with the amount sold being accounted for as borrowings. The Group derecognizes a financial liability from the consolidated statement of financial position only when it is extinguished (i.e., when the obligation specified in the contract is discharged, canceled or expires).

3.14 Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Inevitable risks and uncertainties surrounding related events and circumstances are considered in measuring the best estimate of the provisions, and where the effect of the time value of money is material, the amount of provisions is the present value of the expenditures expected to be required to settle the obligation.

Provisions for confirmed and unconfirmed acceptances and guarantees, and unused credit lines of consumer and corporate loans are recognized using a valuation model that applies the credit conversion factor, PD, and LGD.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provisions are reversed.

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfill it. If the Group has a contract that is onerous, the present obligation under the contract is recognized and measured as provisions.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.15 Financial Guarantee Contracts

Financial guarantee contracts require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the original or modified terms of a debt instrument.

Financial guarantee contracts are initially recognized at fair value, and classified as other liabilities and are amortized over the contractual term. After initial recognition, financial guarantee contracts are measured at the higher of:

• The amount determined in accordance with Korean IFRS No.1109 Financial Instruments and

• The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with Korean IFRS No.1115 Revenue from Contracts with Customers.

3.16 Equity Instrument Issued by the Group

An equity instrument is any contract or agreement that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

3.16.1 Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or the exercise of stock option are deducted from the equity, net of any tax effects.

3.16.2 Hybrid securities

The financial instruments can be classified as either financial liabilities or equity in accordance with the terms of the contract. The Group classifies hybrid securities as an equity if the Group has the unconditional right to avoid any contractual obligation to deliver cash or another financial asset in relation to the financial instruments. However, hybrid securities issued by subsidiaries are classified as non-controlling interests, dividends are recognized in the consolidated statement of comprehensive income as profit attributable to non-controlling interests.

3.16.3 Compound financial instruments

A compound financial instrument is classified as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. The liability component of the compound financial instrument is measured at fair value of the similar liability without conversion option at initial recognition and subsequently measured at amortized cost using effective interest method until it is extinguished by conversion or matured. The equity component is initially measured at fair value of compound financial instrument in its entirety less fair value of liability component net of tax effect, and it is not remeasured subsequently.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.17 Revenue Recognition

The Group recognizes revenues in accordance with the following steps determined in accordance with Korean IFRS No.1115 Revenue from Contracts with Customers.

• Step 1: Identify the contract with a customer.

• Step 2: Identify the performance obligations in the contract.

• Step 3: Determine the transaction price.

• Step 4: Allocate the transaction price to the performance obligations in the contract.

• Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

3.17.1 Interest income and expense

Interest income and expense on debt securities at fair value through profit or loss (excluding beneficiary certificates, equity investments, and other debt instruments), loans, financial instruments at amortized cost, and debt securities at fair value through other comprehensive income are recognized in the consolidated statement of comprehensive income using the effective interest method in accordance with Korean IFRS No.1109 Financial Instruments. The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument or, where appropriate, a shorter period, to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates expected cash flows by considering all contractual terms of the financial instrument but does not consider expected credit losses. The calculation includes all fees and points paid (main components of effective interest rate only) or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. In those rare cases when it is not possible to reliably estimate the cash flows and the expected life of a financial instrument, the Group uses the contractual cash flows over the full contractual term of the financial instrument.

Interest income on impaired financial assets is recognized using the interest rate used to discount the expected cash flows for the purpose of measuring the impairment loss. Interest income on debt securities at fair value through profit or loss is also classified as interest income in the consolidated statement of comprehensive income.

3.17.2 Fee and commission income

The Group recognizes financial service fees in accordance with the purpose of charging the fees and the accounting standards of the financial instrument related to the fees earned.

3.17.2.1 Fees that are an integral part of the effective interest of a financial instrument

Such fees are generally treated as adjustments of effective interest rate. Such fees may include compensation for activities such as evaluating the borrower’s financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating the terms of the instrument, preparing and processing documents, and closing the transaction and origination fees received on issuing financial liabilities at amortized cost. However, fees relating to the creation or acquisition of a financial instrument at fair value through profit or loss are recognized as revenue immediately.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.17.2.2 Fees related to performance obligations satisfied over time

If the control of a good or service is transferred over time, the Group recognizes revenue related to performance obligations over the period of performance obligations. Fees charged in return for the services for a certain period of time, such as asset management fees, consignment business fees, etc. are recognized over the period of performance obligations.

3.17.2.3 Fees related to performance obligations satisfied at a point in time

Fees earned at a point in time are recognized as revenue when a customer obtains control of a promised good or service and the Group satisfies a performance obligation.

Commission on negotiation or participation in negotiation for the third party such as trading stocks or other securities, arranging merger and acquisition of business, is recognized as revenue when the transaction has been completed.

If the Group arranges a syndicated loan but does not participate in the syndicated loan or participates in the syndicated loan with the same effective profit as other participants, a syndication arrangement fee is recognized as revenue at the completion of the syndication service.

3.17.3 Net gains or losses on financial instruments at fair value through profit or loss

Net gains or losses on financial instruments at fair value through profit or loss (including changes in fair value, dividends, and gains or losses from foreign currency translation) include gains or losses on financial instruments as follows:

• Gains or losses relating to financial instruments at fair value through profit or loss (excluding interest income using the effective interest rate method)

• Gains or losses relating to derivative financial instruments for trading (including derivative financial instruments for hedging purpose but do not qualify for hedge accounting)

3.17.4 Dividend income

Dividend income is recognized in profit or loss when the right to receive payment is established. Dividend income is recognized as net gains or losses on financial instruments at fair value through profit or loss or other operating income depending on the classification of equity securities.

3.18 Employee Compensation and Benefits

3.18.1 Post-employment benefits

3.18.1.1 Defined contribution plans

When an employee has rendered service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as post-employment benefits for the period.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.18.1.2 Defined benefit plans

All post-employment benefits, other than defined contribution plans, are classified as defined benefit plans. The amount recognized as a net defined benefit liability is the present value of the defined benefit obligation less the fair value of plan assets at the end of the reporting period.

The present value of the defined benefit obligation is calculated annually by a qualified actuary using the projected unit credit method. The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the reporting period on high quality corporate bonds. The currency and term of the corporate bonds are consistent with the currency and estimated term of the post-employment benefit obligations. Actuarial gains and losses resulting from changes in actuarial assumptions and experience adjustments are recognized in other comprehensive income.

When the present value of the defined benefit obligation minus the fair value of plan assets results in an asset, it is recognized to the extent of the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting from the introduction or changes to a defined benefit plan. Such past service cost is immediately recognized as an expense for the period.

3.18.2 Short-term employee benefits

Short-term employee benefits are employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense for the period.

The expected cost of profit-sharing and bonus payments is recognized as liabilities when the Group has a present legal or constructive obligation to make payments as a result of past events, such as service rendered by employees, and a reliable estimate of the obligation can be made.

3.18.3 Share-based payment

The Group provides its executives and employees with stock grants and mileage stock programs. When stock grants are exercised, the Group can either select to distribute shares of KB Financial Group Inc., the Parent Company or compensate in cash based on the share price. When mileage stock is exercised, the Group pays the amount equivalent to share price of KB Financial Group Inc. in cash.

For a share-based payment transaction in which the terms of the arrangement provide the Group with the choice of whether to settle in cash or by issuing equity instruments, the Group accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions because the Group determines that it has a present obligation to settle in cash based on a past practice and a stated policy of settling in cash. Therefore, the Group measures the liability incurred as consideration for the service received at fair value and recognizes related expense and accrued expense over the vesting periods. For mileage stock, the Group accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions, which are recognized as expenses and accrued expenses at the time of vesting.

Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

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Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

3.18.4 Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or an employee’s decision to accept an offer of benefits in exchange for the termination of employment. The Group recognizes a liability and expense for termination benefits at the earlier of the following dates; when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring that is within the scope of Korean IFRS No.1037 and involves the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, then the termination benefits are discounted to present value.

3.19 Income Tax Expense

Income tax expense comprises current tax expense and deferred income tax expense. Current and deferred income taxes are recognized as income or expense and included in profit or loss for the period, except to the extent that the tax arises from (a) a transaction or event which is recognized, in the same or a different period, outside profit or loss, either in other comprehensive income or directly in equity and (b) a business combination.

3.19.1 Current income tax

Current income tax is the amount of income tax payable (recoverable) in respect of the taxable profit (tax loss) for a period. A difference between the taxable profit and accounting profit may arise when income or expense is included in accounting profit in one period but is included in taxable profit in a different period. Differences may also arise if there is revenue that is exempt from taxation, or expense that is not deductible in determining taxable profit (loss). Current income tax liabilities for the current and prior periods are measured using the tax rates that have been enacted or substantively enacted by the end of the reporting period.

The Group offsets current income tax assets and current income tax liabilities if, and only if, the Group (a) has a legally enforceable right to offset the recognized amounts and (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

3.19.2 Deferred income tax

Deferred income tax is recognized, using the asset-liability method, on temporary differences arising between the tax-based amount of assets and liabilities and their carrying amount in the financial statements. Deferred income tax liabilities are recognized for all taxable temporary differences and deferred income tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax assets and liabilities are not recognized if they arise from the initial recognition of an asset or liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting nor taxable profit or loss.

The Group recognizes a deferred income tax liability for all taxable temporary differences associated with investments in subsidiaries and associates, except to the extent that the Group is able to control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period. The Group reduces the carrying amount of a deferred income tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

32

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Group offsets deferred income tax assets and deferred income tax liabilities if, and only if the Group has a legally enforceable right to offset current income tax assets against current income tax liabilities and the deferred income tax assets and the deferred income tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current income tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred income tax liabilities or assets are expected to be settled or recovered.

3.19.3 Uncertain tax positions

Uncertain tax positions arise from tax treatments applied by the Group which may be challenged by the tax authorities due to the complexity of the transaction or different interpretation of the tax laws, such as a claim for rectification, a claim for a refund related to additional tax or a tax investigation by the tax authorities. The Group recognizes its uncertain tax positions in the consolidated financial statements in accordance with Korean IFRS No.1012 and Interpretation of Korean IFRS No.2123. The income tax asset is recognized if a tax refund is probable for taxes levied by the tax authority, and the amount to be paid as a result of the tax investigation and others is recognized as the current tax payable. However, penalty tax and additional refund on tax are regarded as penalty or interest and are accounted for in accordance with Korean IFRS No.1037.

3.20 Transactions with the Trust Accounts

The Group accounts for trust assets separately from its own assets in accordance with the Financial Investment Services and Capital Markets Act. The borrowings from trust accounts represent transfer of funds in trust accounts into banking accounts. Such borrowings from trust accounts are recorded as receivables from the banking accounts in the trust accounts and as borrowings from trust accounts in the banking accounts. The Group earns trust fees from the trust accounts for its management of trust assets and operations. The reserves for future profits and losses are set up in the trust accounts for profits and losses related to those trust funds with a guarantee of the principal or of the principal and a certain minimum rate of return in accordance with the relevant laws and regulations applicable to trust operations. The reserves are used to provide for the losses on such trust funds and, if the losses incurred are in excess of the reserves, the excess losses are compensation paid as a loss on trust management in other operating expenses and the trust accounts recognize the corresponding compensation as compensation from banking accounts.

3.21 Leases

The Group as a lessor recognizes lease payments from operating leases as income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the consolidated statement of financial position based on their nature.

A lessee is required to recognize a right-of-use asset (lease assets) representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Assets and liabilities arising from a lease are initially measured at the present value.

33

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Lease liabilities include the net present value of the following lease payments:

• Fixed payments (including in-substance fixed payments), less any lease incentives receivable

• Variable lease payments that depend on an index or a rate

• Amounts expected to be payable by the lessee under residual value guarantees

• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

The lease payments are discounted using the interest rate implicit in the lease if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, which is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

Right-of-use assets are measured at cost comprising the following:

• The amount of the initial measurement of the lease liability

• Any lease payments made at or before the commencement date, less any lease incentives received

• Any initial direct costs incurred by the lessee, and

• An estimate of restoration costs

However, the Group can elect not to apply the requirements of Korean IFRS No.1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under USD 5,000). The Group applies the exemption of the standard for one time lease of real estate (for training purpose) and leases of low-value assets (underlying assets less than W 5 million or USD 5,000).

The right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

For sale and leaseback transactions, the Group applies the requirements of Korean IFRS No.1115 Revenue from Contracts with Customers, to determine whether the transfer of an asset is accounted for as a sale of that asset.

3.22 Operating Segments

The Group identifies its operating segments based on internal reports which are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

Segment information includes items which are directly attributable and can be allocated to the segment on a reasonable basis.

34

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

The financial risks that the Group is exposed to are credit risk, market risk, liquidity risk, operational risk, and others.

This note regarding financial risk management provides information about the risks that the Group is exposed to and about its objectives, policies, risk assessment and management procedures, and capital management. Additional quantitative information is disclosed throughout the consolidated financial statements.

The Group’s risk management system focuses on efficiently supporting long-term strategy and management decisions of each business group through increased risk transparency, spread of risk management culture, prevention of risk transfer between risk types, and preemptive response to rapidly changing financial environments. Credit risk, market risk, liquidity risk, and operational risk are recognized as the Group’s significant risks and measured and managed by quantifying them in the form of internal capital or Value at Risk (“VaR”) using statistical methods.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

The Risk Management Committee, as the ultimate decision-making body, approves risk-related issues, such as establishing risk management strategies in accordance with the strategic direction determined by the board of directors, determining the affordable level of risk appetite, and reviewing the level of risk and the status of risk management activities.

4.1.2.2 Risk Management Council

The Risk Management Council deliberates on and resolves matters delegated by the Risk Management Committee and discusses the details of risk management policies and procedures of the Group.

4.1.2.3 Risk Management Subcommittees

The Risk Management Subcommittee implements decisions made by the Risk Management Council and makes practical decisions regarding the implementation of risk management policies and procedures.

• Credit Risk Management Subcommittee

The Credit Risk Management Subcommittee conducts deliberation and resolution on new approval of non-standard and compound instruments with embedded credit risks, review of credit risks for new products with credit risks, and establishment of exposure limits by industry.

• Market Risk Management Subcommittee

The Market Risk Management Subcommittee conducts deliberation and resolution on market risk-related matters, such as setting limits on market risk and approving detailed investment standards for new standard, non-standard and compound products.

• Operational Risk Management Subcommittee

The Operational Risk Management Subcommittee reviews the issues that have a significant effect on the Group’s operational risk such as establishment, amendment and abolition of major system, process and others.

35

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

• Trust & Fund Customer Asset Risk Management Subcommittee

The Trust & Fund Customer Asset Risk Management Subcommittee reviews the issues that have a significant effect on the trust & fund customer asset risk management such as setting limits on trust & fund customer assets.

4.1.2.4 Risk Management Group

The Risk Management Group manages detailed risk management policies, procedures, and business processes.

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty’s default, breach of contract, and deterioration of credit quality. For risk management reporting purposes, the Group considers all factors of credit risk exposure, such as default risk of individual borrowers, country risk, and risk of specific sectors. The Group defines default as the definition applied to the calculation of Capital Adequacy Ratio under the new Basel Accord (Basel III).

4.2.2 Credit risk management

The Group measures the expected loss and internal capital for the assets subject to credit risk management, including on-balance and off-balance sheet assets, and uses them as management indicators. The Group allocates and manages credit risk internal capital limits.

In addition, to prevent excessive concentration of exposures by borrower and industry, the total exposure limit at the Group level is introduced, applied, and managed to control the credit concentration risk.

All of the Group’s loan customers (individuals and corporates) are assigned a credit rating and managed by a credit evaluation system. For individuals, the credit rating is evaluated by utilizing personal information, income and job information, asset information, and bank transaction information. For corporates, the credit rating is evaluated by analyzing and utilizing financial and non-financial information which measures current and future corporate value and ability to repay the debt. Also, the extent to which corporates have the ability to meet debt obligations is comprehensively considered.

The credit rating, once assigned, serves as the fundamental instrument in the Group’s credit risk management, and is applied in a wide range of credit risk management processes, including credit approval, credit limit management, loan pricing, and assessment of allowances for credit losses. For corporates, the Group conducts a regular credit evaluation at least once a year, and the review and supervision departments regularly validate the adequacy of credit ratings to manage credit risks.

In order to establish a credit risk management system, the Group manages credit risk by forming a separate risk management organization. In particular, independently of the Sales Group, the Credit Management & Analysis Group, Retail Customer Group and SME/SOHO Customer Group are in charge of loan policy, loan system, credit rating, credit analysis, follow-up management, and corporate restructuring. The Risk Management Group is responsible for establishing policies on credit risk management, measuring and limiting internal capital of credit risk, setting credit limits, credit review, and verification of credit rating models.

36

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.3 Maximum exposure to credit risk

The Group’s maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Financial assets
Due from financial institutions 1		21,382,146		22,567,276
Financial assets at fair value through profit or loss:
Securities measured at fair value through profit or loss		19,197,608		20,756,579
Loans measured at fair value through profit or loss		183,490		149,075
Due from financial institutions measured at fair value through profit or loss		93,743		90,006
Derivatives		5,038,961		7,767,592
Loans measured at amortized cost 1		385,404,070		374,671,976
Financial investments:
Securities measured at fair value through other comprehensive income		37,634,240		38,363,832
Securities measured at amortized cost 1		38,989,046		35,236,794
Loans measured at fair value through other comprehensive income		311,610		231,021
Other financial assets 1		10,703,605		6,709,627
		518,938,519		506,543,778
Off-balance sheet items 2
Acceptances and guarantees contracts		13,912,781		12,510,649
Financial guarantee contracts		7,092,532		7,261,581
Commitments		117,424,480		108,399,534
		138,429,793		128,171,764
		657,368,312		634,715,542

¹ After netting of allowance

² For details of related provisions, see Note 22.

4.2.4 Credit risk of loans

The Group maintains allowances for loan losses associated with credit risk of loans to manage its credit risk.

The Group assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial assets at fair value through other comprehensive income (debt instruments). Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurring in a certain range by reflecting supportable information that is reasonably available at the end of the reporting period without undue cost or effort, including information about past events, current conditions, and forecasts of future economic conditions. The Group measures the expected credit losses of loans classified as financial assets at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income in the consolidated financial statements.

37

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.4.1 Credit risk exposure

Credit qualities of loans as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
(In millions of Korean won)			Non-impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1		130,751,140		6,839,018		2,192		—		—		137,592,350
Grade 2		58,563,932		10,117,059		2,192		—		—		68,683,183
Grade 3		3,092,186		3,760,990		7,988		—		—		6,861,164
Grade 4		562,657		1,084,339		5,351		—		—		1,652,347
Grade 5		15,392		567,803		2,578,537		—		—		3,161,732
		192,985,307		22,369,209		2,596,260		—		—		217,950,776
Retail
Grade 1		157,016,292		4,003,383		11,252		—		—		161,030,927
Grade 2		2,732,469		3,500,585		7,952		—		—		6,241,006
Grade 3		1,101,340		1,220,790		8,674		—		—		2,330,804
Grade 4		24,356		151,599		3,590		—		—		179,545
Grade 5		24,460		468,804		749,402		—		—		1,242,666
		160,898,917		9,345,161		780,870		—		—		171,024,948
Credit card
Grade 1		—		—		—		—		—		—
Grade 2		22,522		—		—		—		—		22,522
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		1,193		14,483		—		—		15,676
		22,522		1,193		14,483		—		—		38,198
		353,906,746		31,715,563		3,391,613		—		—		389,013,922
Loans measured at fair value through other comprehensive income
Corporate
Grade 1		272,601		—		—		—		—		272,601
Grade 2		39,009		—		—		—		—		39,009
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		311,610		—		—		—		—		311,610
		311,610		—		—		—		—		311,610
		354,218,356		31,715,563		3,391,613		—		—		389,325,532

38

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.4.1 Credit risk exposure (cont’d)

	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
(In millions of Korean won)			Non-impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1		126,368,871		4,955,880		3,372		—		—		131,328,123
Grade 2		57,584,222		7,924,915		4,480		—		—		65,513,617
Grade 3		3,274,510		3,096,139		14,694		—		—		6,385,343
Grade 4		480,299		888,101		13,821		—		—		1,382,221
Grade 5		11,864		415,237		1,893,260		—		—		2,320,361
		187,719,766		17,280,272		1,929,627		—		—		206,929,665
Retail
Grade 1		156,074,706		3,990,601		10,917		—		—		160,076,224
Grade 2		3,297,187		3,732,378		12,737		—		—		7,042,302
Grade 3		961,206		1,212,650		14,973		—		—		2,188,829
Grade 4		21,458		140,868		5,529		—		—		167,855
Grade 5		20,549		325,174		642,967		—		—		988,690
		160,375,106		9,401,671		687,123		—		—		170,463,900
Credit card
Grade 1		—		—		—		—		—		—
Grade 2		25,210		—		—		—		—		25,210
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		1,219		16,593		—		—		17,812
		25,210		1,219		16,593		—		—		43,022
		348,120,082		26,683,162		2,633,343		—		—		377,436,587
Loans measured at fair value through other comprehensive income
Corporate
Grade 1		171,194		—		—		—		—		171,194
Grade 2		59,827		—		—		—		—		59,827
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		231,021		—		—		—		—		231,021
		231,021		—		—		—		—		231,021
		348,351,103		26,683,162		2,633,343		—		—		377,667,608

* Before netting of allowance

Credit qualities of loans graded according to internal credit ratings as of December 31, 2023 and 2022, are as follows:

	Corporate	Retail
Grade 1	AAA ~ BBB+	1 ~ 5 grade
Grade 2	BBB ~ BB	6 ~ 8 grade
Grade 3	BB- ~ B	9 ~ 10 grade
Grade 4	B- ~ CCC	11 grade
Grade 5	CC or under	12 grade or under

39

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.4.2 Credit risk mitigation by collateral

Quantification of the extent to which collateral and other credit enhancements mitigate credit risk of loans as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
(In millions of Korean won)			Non-impaired		Impaired
Guarantees		113,459,252		7,626,289		415,765		—		—		121,501,306
Deposits and savings		2,518,301		129,853		15,176		—		—		2,663,330
Property and equipment		4,154,922		742,276		372,224		—		—		5,269,422
Real estate		191,315,010		18,567,084		2,738,148		—		—		212,620,242
		311,447,485		27,065,502		3,541,313		—		—		342,054,300

	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
(In millions of Korean won)			Non-impaired		Impaired
Guarantees		99,393,584		7,045,683		286,796		—		—		106,726,063
Deposits and savings		1,854,286		141,016		46,971		—		—		2,042,273
Property and equipment		4,368,754		749,547		131,148		—		—		5,249,449
Real estate		185,056,374		15,469,830		1,604,270		—		—		202,130,474
		290,672,998		23,406,076		2,069,185		—		—		316,148,259

40

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.5 Credit risk of securities

Credit qualities of securities exposed to credit risk other than equity securities among financial investments as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
(In millions of Korean won)			Non-impaired		Impaired
Securities measured at amortized cost *
Grade 1		35,124,325		—		—		—		—		35,124,325
Grade 2		3,883,557		—		—		—		—		3,883,557
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		39,007,882		—		—		—		—		39,007,882
Securities measured at fair value through other comprehensive income
Grade 1		34,525,564		—		—		—		—		34,525,564
Grade 2		3,082,530		—		—		—		—		3,082,530
Grade 3		26,146		—		—		—		—		26,146
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		37,634,240		—		—		—		—		37,634,240
		76,642,122		—		—		—		—		76,642,122

	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
(In millions of Korean won)			Non-impaired		Impaired
Securities measured at amortized cost *
Grade 1		33,528,652		—		—		—		—		33,528,652
Grade 2		1,713,576		—		—		—		—		1,713,576
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		35,242,228		—		—		—		—		35,242,228
Securities measured at fair value through other comprehensive income
Grade 1		35,699,164		—		—		—		—		35,699,164
Grade 2		2,530,046		53,861		—		—		—		2,583,907
Grade 3		53,011		9,169		—		—		—		62,180
Grade 4		13,941		4,640		—		—		—		18,581
Grade 5		—		—		—		—		—		—
		38,296,162		67,670		—		—		—		38,363,832
		73,538,390		67,670		—		—		—		73,606,060

* Before netting of allowance

41

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Credit qualities of securities other than equity securities, according to the credit ratings by external credit rating agencies as of December 31, 2023 and 2022, are as follows:

Credit quality	Domestic			Foreign
	KIS	NICE P&I	FnPricing Inc.	S&P	Fitch-IBCA	Moody’s
Grade 1	AA0 to AAA	AA0 to AAA	AA0 to AAA	A- to AAA	A- to AAA	A3 to Aaa
Grade 2	A- to AA-	A- to AA-	A- to AA-	BBB- to BBB+	BBB- to BBB+	Baa3 to Baa1
Grade 3	BBB0 to BBB+	BBB0 to BBB+	BBB0 to BBB+	BB to BB+	BB to BB+	Ba2 to Ba1
Grade 4	BB0 to BBB-	BB0 to BBB-	BB0 to BBB-	B+ to BB-	B+ to BB-	B1 to Ba3
Grade 5	BB- or under	BB- or under	BB- or under	B or under	B or under	B2 or under

Credit qualities of debt securities denominated in Korean won are based on the lowest credit rating by the domestic credit rating agencies above, and those denominated in foreign currencies are based on the lowest credit rating by the foreign credit rating agencies above.

4.2.6 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Total
			Non-impaired		Impaired
Due from financial institutions measured at amortized cost *
Grade 1		20,081,533		—		—		—		20,081,533
Grade 2		505,155		—		—		—		505,155
Grade 3		107,590		—		—		—		107,590
Grade 4		—		—		—		—		—
Grade 5		688,487		—		—		—		688,487
		21,382,765		—		—		—		21,382,765

	December 31, 2022
(In millions of Korean won)	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Total
			Non-impaired		Impaired
Due from financial institutions measured at amortized cost *
Grade 1		20,678,308		—		—		—		20,678,308
Grade 2		1,428,613		—		—		—		1,428,613
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		462,230		—		—		—		462,230
		22,569,151		—		—		—		22,569,151

* Before netting of allowance

The classification criteria of the credit qualities of due from financial institutions as of December 31, 2023 and 2022, are the same as the criteria for securities other than equity securities.

42

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.7 Credit risk mitigation of derivative financial instruments

Quantification of the extent to which collateral mitigates credit risk of derivative financial instruments as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Deposits, savings, securities, and others		1,096,855		2,092,136

4.2.8 Credit risk concentration analysis

4.2.8.1 Classifications of loans by country as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Retail		Corporate*		Credit card		Total		%		Allowances			Carrying amount
Korea		167,179,510		190,714,241		—		357,893,751		91.88		(2,280,454	)		355,613,297
Japan		—		986,037		—		986,037		0.25		(2,369	)		983,668
United States		—		5,553,289		—		5,553,289		1.43		(164,141	)		5,389,148
China		73,105		7,259,906		—		7,333,011		1.88		(38,198	)		7,294,813
Cambodia		2,546,085		3,931,738		—		6,477,823		1.66		(198,976	)		6,278,847
Indonesia		1,111,809		3,216,033		38,198		4,366,040		1.12		(707,763	)		3,658,277
Others		114,439		6,784,632		—		6,899,071		1.78		(217,951	)		6,681,120
		171,024,948		218,445,876		38,198		389,509,022		100.00		(3,609,852	)		385,899,170

	December 31, 2022
(In millions of Korean won)	Retail		Corporate*		Credit card		Total		%		Allowances			Carrying amount
Korea		166,731,576		180,852,359		—		347,583,935		92.00		(1,738,345	)		345,845,590
Japan		—		1,150,151		—		1,150,151		0.30		(1,756	)		1,148,395
United States		—		4,915,464		—		4,915,464		1.30		(14,868	)		4,900,596
China		140,061		7,131,142		—		7,271,203		1.92		(39,023	)		7,232,180
Cambodia		2,265,875		3,768,170		—		6,034,045		1.60		(66,198	)		5,967,847
Indonesia		1,174,259		2,896,037		43,022		4,113,318		1.09		(767,622	)		3,345,696
Others		152,129		6,596,438		—		6,748,567		1.79		(136,799	)		6,611,768
		170,463,900		207,309,761		43,022		377,816,683		100.00		(2,764,611	)		375,052,072

* Expected credit losses of loans measured at fair value through other comprehensive income as of December 31, 2023 and 2022, are W 880 million and W 496 million, respectively.

43

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.8.2 Classifications of corporate loans by industry as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Loans		%		Allowances			Carrying amount
Financial institutions		19,070,640		8.73		(40,663	)		19,029,977
Manufacturing		50,491,376		23.11		(609,431	)		49,881,945
Service		100,234,934		45.89		(1,077,465	)		99,157,469
Wholesale and retail		29,092,661		13.32		(495,159	)		28,597,502
Construction		5,381,063		2.46		(257,525	)		5,123,538
Public sector		1,829,097		0.84		(82,328	)		1,746,769
Others		12,346,105		5.65		(182,185	)		12,163,920
		218,445,876		100.00		(2,744,756	)		215,701,120

	December 31, 2022
(In millions of Korean won)	Loans		%		Allowances			Carrying amount
Financial institutions		17,917,921		8.64		(17,541	)		17,900,380
Manufacturing		52,426,642		25.29		(570,253	)		51,856,389
Service		91,366,145		44.07		(414,123	)		90,952,022
Wholesale and retail		28,795,086		13.89		(346,570	)		28,448,516
Construction		5,061,780		2.44		(207,249	)		4,854,531
Public sector		1,653,869		0.80		(84,005	)		1,569,864
Others		10,088,318		4.87		(162,642	)		9,925,676
		207,309,761		100.00		(1,802,383	)		205,507,378

4.2.8.3 Classifications of retail loans and credit card receivables as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Loans		%		Allowances			Carrying amount
Housing loan		96,593,547		56.47		(225,697	)		96,367,850
General loan		74,431,401		43.51		(625,489	)		73,805,912
Credit card		38,198		0.02		(13,910	)		24,288
		171,063,146		100.00		(865,096	)		170,198,050

	December 31, 2022
(In millions of Korean won)	Loans		%		Allowances			Carrying amount
Housing loan		94,184,985		55.24		(158,566	)		94,026,419
General loan		76,278,915		44.74		(787,905	)		75,491,010
Credit card		43,022		0.02		(15,757	)		27,265
		170,506,922		100.00		(962,228	)		169,544,694

44

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.8.4 Classifications of domestic mortgage loans as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Loans*		%		Allowances			Carrying amount
Group 1		21,006,447		19.73		(26,612	)		20,979,835
Group 2		27,707,017		26.03		(22,614	)		27,684,403
Group 3		34,998,430		32.88		(47,932	)		34,950,498
Group 4		21,280,610		19.99		(51,066	)		21,229,544
Group 5		1,437,246		1.36		(5,195	)		1,432,051
Group 6		14,329		0.01		(127	)		14,202
		106,444,079		100.00		(153,546	)		106,290,533

	December 31, 2022
(In millions of Korean won)	Loans*		%		Allowances			Carrying amount
Group 1		15,950,511		16.30		(17,178	)		15,933,333
Group 2		35,821,717		36.62		(40,603	)		35,781,114
Group 3		35,626,337		36.42		(45,807	)		35,580,530
Group 4		10,020,031		10.24		(12,809	)		10,007,222
Group 5		399,823		0.41		(618	)		399,205
Group 6		11,588		0.01		(74	)		11,514
		97,830,007		100.00		(117,089	)		97,712,918

* Retail loans for general purpose with the real estate as collateral are included.

	Ranges
Group 1	LTV 0% to less than 20%
Group 2	LTV 20% to less than 40%
Group 3	LTV 40% to less than 60%
Group 4	LTV 60% to less than 80%
Group 5	LTV 80% to less than 100%
Group 6	LTV over 100%

* LTV: Loan to Value ratio

45

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance		21,382,765		100.00		(619	)		21,382,146
		21,382,765		100.00		(619	)		21,382,146
Securities measured at fair value through profit or loss
Government and government funded institutions		6,953,789		36.22		—			6,953,789
Finance and insurance 1		10,778,511		56.15		—			10,778,511
Others		1,465,308		7.63		—			1,465,308
		19,197,608		100.00		—			19,197,608
Derivative financial assets
Government and government funded institutions		50,165		1.00		—			50,165
Finance and insurance 1		4,687,288		93.02		—			4,687,288
Others		301,508		5.98		—			301,508
		5,038,961		100.00		—			5,038,961
Securities measured at fair value through other comprehensive income 2
Government and government funded institutions		14,486,159		38.49		—			14,486,159
Finance and insurance		17,191,632		45.68		—			17,191,632
Others		5,956,449		15.83		—			5,956,449
		37,634,240		100.00		—			37,634,240
Securities measured at amortized cost
Government and government funded institutions		16,338,816		41.89		(652	)		16,338,164
Finance and insurance		22,312,351		57.20		(17,532	)		22,294,819
Others		356,715		0.91		(652	)		356,063
		39,007,882		100.00		(18,836	)		38,989,046
		122,261,456				(19,455	)		122,242,001

46

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2022 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance		22,569,151		100.00		(1,875	)		22,567,276
		22,569,151		100.00		(1,875	)		22,567,276
Securities measured at fair value through profit or loss
Government and government funded institutions		5,268,226		25.38		—			5,268,226
Finance and insurance 1		14,163,418		68.24		—			14,163,418
Others		1,324,935		6.38		—			1,324,935
		20,756,579		100.00		—			20,756,579
Derivative financial assets
Government and government funded institutions		56,464		0.73		—			56,464
Finance and insurance 1		7,345,736		94.57		—			7,345,736
Others		365,392		4.70		—			365,392
		7,767,592		100.00		—			7,767,592
Securities measured at fair value through other comprehensive income 2
Government and government funded institutions		14,939,808		38.94		—			14,939,808
Finance and insurance		17,440,865		45.46		—			17,440,865
Others		5,983,159		15.60		—			5,983,159
		38,363,832		100.00		—			38,363,832
Securities measured at amortized cost
Government and government funded institutions		16,921,939		48.02		—			16,921,939
Finance and insurance		17,749,393		50.36		(5,109	)		17,744,284
Others		570,896		1.62		(325	)		570,571
		35,242,228		100.00		(5,434	)		35,236,794
		124,699,382				(7,309	)		124,692,073

¹  Collective investment securities (including transactions with collective investment schemes) are classified as finance and insurance.

²  Expected credit losses of securities measured at fair value through other comprehensive income as of December 31, 2023 and 2022, are W 14,102 million and W 6,432 million, respectively.

47

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.8.6 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea		15,576,425		72.85		—			15,576,425
United States		2,968,918		13.88		(89	)		2,968,829
Others		2,837,422		13.27		(530	)		2,836,892
		21,382,765		100.00		(619	)		21,382,146
Securities measured at fair value through profit or loss
Korea		17,310,219		90.17		—			17,310,219
United States		281,543		1.47		—			281,543
Others		1,605,846		8.36		—			1,605,846
		19,197,608		100.00		—			19,197,608
Derivative financial assets
Korea		2,102,364		41.72		—			2,102,364
United States		983,392		19.52		—			983,392
France		863,376		17.13		—			863,376
Others		1,089,829		21.63		—			1,089,829
		5,038,961		100.00		—			5,038,961
Securities measured at fair value through other comprehensive income *
Korea		34,023,560		90.41		—			34,023,560
United States		778,474		2.07		—			778,474
Others		2,832,206		7.52		—			2,832,206
		37,634,240		100.00		—			37,634,240
Securities measured at amortized cost
Korea		35,280,415		90.44		(14,644	)		35,265,771
United States		1,082,997		2.78		(1,003	)		1,081,994
United Kingdom		737,765		1.89		(909	)		736,856
Others		1,906,705		4.89		(2,280	)		1,904,425
		39,007,882		100.00		(18,836	)		38,989,046
		122,261,456				(19,455	)		122,242,001

48

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.2.8.6 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea		16,991,323		75.29		—			16,991,323
United States		2,173,982		9.63		(27	)		2,173,955
Others		3,403,846		15.08		(1,848	)		3,401,998
		22,569,151		100.00		(1,875	)		22,567,276
Securities measured at fair value through profit or loss
Korea		19,316,603		93.06		—			19,316,603
United States		897,338		4.32		—			897,338
Others		542,638		2.62		—			542,638
		20,756,579		100.00		—			20,756,579
Derivative financial assets
Korea		3,456,882		44.50		—			3,456,882
United States		1,325,575		17.07		—			1,325,575
France		1,281,270		16.50		—			1,281,270
Others		1,703,865		21.93		—			1,703,865
		7,767,592		100.00		—			7,767,592
Securities measured at fair value through other comprehensive income *
Korea		34,586,537		90.15		—			34,586,537
United States		732,183		1.91		—			732,183
Others		3,045,112		7.94		—			3,045,112
		38,363,832		100.00		—			38,363,832
Securities measured at amortized cost
Korea		30,511,462		86.58		(3,746	)		30,507,716
United States		2,740,296		7.78		(949	)		2,739,347
United Kingdom		111,146		0.32		(89	)		111,057
Others		1,879,324		5.32		(650	)		1,878,674
		35,242,228		100.00		(5,434	)		35,236,794
		124,699,382				(7,309	)		124,692,073

* Expected credit loss of securities measured at fair value through other comprehensive income as of December 31, 2023 and 2022, are W 14,102 million and W 6,432 million, respectively.

Due from financial institutions, financial instruments at fair value through profit or loss linked to gold price, and derivative financial instruments are mostly related to the finance and insurance industry with high credit ratings.

49

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Group becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Group manages its liquidity risk through analysis of the contractual maturity of interest-bearing assets and liabilities, assets and liabilities related to the other inflows and outflows of funds, and off-balance sheet items related to the inflows and outflows of funds such as currency derivative instruments and others.

4.3.2 Liquidity risk management and indicator

The liquidity risk is managed by comprehensive risk management policies and Asset Liability Management (“ALM”) risk management guidelines set forth in these policies that apply to all risk management policies and procedures that may arise throughout the overall business of the Group.

The Group establishes a liquidity risk management strategy, including objectives of liquidity risk management, management policies, and internal control systems, and obtains approval from the Risk Management Committee. The Risk Management Committee establishes the Risk Management Council for efficient risk management to supervise the establishment and implementation of policies according to risk management strategies.

The Group calculates and manages the Liquidity Coverage Ratio (“LCR”), Net Stable Funding Ratio (“NSFR”), liquidity ratio, maturity mismatch ratio and liquidity stress testing results for all transactions and off-balance sheet transactions, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Council and the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

The cash flows disclosed in the maturity analysis are undiscounted contractual amounts including principal and future interest and payments; as such, amounts in the table below do not match with those in the consolidated statements of financial position which are based on discounted cash flows. The future interest payments of floating-rate liabilities are calculated on the assumption that the current interest rate is the same until maturity.

50

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years			Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1		93,438		—		—		—		—		—			93,438
Derivatives held for trading 1		4,367,529		—		—		—		—		—			4,367,529
Derivatives held for hedging 2		—		210		8,197		34,520		48,684		(4,255	)		87,356
Deposits 3		163,446,965		35,508,997		55,044,408		130,318,931		16,763,729		1,900,021			402,983,051
Borrowings		59,790		11,884,748		4,478,449		10,571,466		7,915,800		1,004,486			35,914,739
Debentures		10,077		1,605,013		2,527,478		12,065,631		13,501,873		4,364,158			34,074,230
Lease liabilities		243		16,629		29,600		116,673		220,830		17,257			401,232
Other financial liabilities		2,966		20,016,794		20,227		135,406		50,387		—			20,225,780
		167,981,008		69,032,391		62,108,359		153,242,627		38,501,303		7,281,667			498,147,355
Off-balance sheet items
Commitments 4		117,424,480		—		—		—		—					117,424,480
Acceptances and guarantees contracts 5		13,912,781		—		—		—		—					13,912,781
Financial guarantee contracts 5		7,092,532		—		—		—		—					7,092,532
		138,429,793		—		—		—		—					138,429,793

	December 31, 2022
(In millions of Korean won)	On demand		Up to 1 month			1-3 months		3-12 months		1-5 years		Over 5 years		Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1		108,862		—			—		—		—		—		108,862
Derivatives held for trading 1		7,166,578		—			—		—		—		—		7,166,578
Derivatives held for hedging 2		—		(558	)		5,312		24,067		66,255		3,502		98,578
Deposits 3		165,559,338		29,758,040			45,029,511		129,992,322		17,707,676		1,246,571		389,293,458
Borrowings		59,631		18,276,814			5,913,564		13,305,936		7,627,555		1,039,377		46,222,877
Debentures		11,117		1,755,336			4,612,664		12,426,307		8,177,425		4,794,132		31,776,981
Lease liabilities		164		15,554			30,494		115,109		208,982		20,075		390,378
Other financial liabilities		—		13,431,913			1,508		132,242		58,663		—		13,624,326
		172,905,690		63,237,099			55,593,053		155,995,983		33,846,556		7,103,657		488,682,038
Off-balance sheet items
Commitments 4		108,399,534		—			—		—		—		—		108,399,534
Acceptances and guarantees contracts 5		12,510,649		—			—		—		—		—		12,510,649
Financial guarantee contracts 5		7,261,581		—			—		—		—		—		7,261,581
		128,171,764		—			—		—		—		—		128,171,764

¹ Financial liabilities at fair value through profit or loss and derivatives held for trading are not managed by contractual maturity because they are expected to be traded or redeemed before maturity. Therefore, the carrying amounts of those financial instruments are included in the ‘On demand’ category.

² Cash flows of derivative instruments held for hedging are shown at net amount of cash inflows and outflows by remaining contractual maturity.

³ Deposits that are contractually repayable on demand or on short notice are included in the ‘On demand’ category.

⁴ Unused lines of credit within commitments are included in the ‘On demand’ category because payments can be requested at any time.

⁵ Cash flows under acceptances and financial guarantee contracts are classified based on the earliest period that the contract can be executed.

51

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.3.3.2 Contractual cash flows of derivatives held for cash flow hedge as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Cash flow to be received from net-settled derivatives		1,127		6,638		22,111		69,344		—		99,220
Cash flow to be paid from net-settled derivatives		133		—		—		—		—		133

	December 31, 2022
(In millions of Korean won)	Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Cash flow to be received from net-settled derivatives		337		8,038		13,090		49,098		—		70,563
Cash flow to be paid from net-settled derivatives		218		975		1,571		93		—		2,857

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc., which arise from securities, derivatives, and others. The most significant risks associated with trading positions are interest rate risk, currency risk, and additional risks including stock price risk. The non-trading position is also exposed to interest rate risk. The Group manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position.

4.4.2 Risk management

The Group sets and monitors internal capital limits for market risk and interest rate risk to manage the risks of trading and non-trading positions. In order to manage market risk efficiently, the Group maintains risk management systems and procedures such as trading policies and procedures, market risk management guidelines for trading positions, and ALM risk management guidelines for non-trading positions. The entire process is carried out through the approval by the Risk Management Council and the Risk Management Committee of the Group.

The Group’s Risk Management Council establishes and enforces overall market risk management policies for market risk management and decides to establish position limits, loss limits, VaR limits, and approves non-standard new products. In addition, the Market Risk Management Subcommittee, chaired by Chief Risk Officer (“CRO”), is a practical decision-making body for market risk management and determines position limits, loss limits, VaR limits, sensitivity limits, and scenario loss limits for each department of the business group.

52

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

The Asset-Liability Management Committee (“ALCO”) determines interest rate and commission operating standards and ALM operation policies and enacts and revises relevant guidelines. The Risk Management Council monitors the establishment and enforcement of ALM risk management policies and enacts and revises ALM risk management guidelines. Interest rate risk limits are set based on future asset and liability positions and expected interest rate volatility, which reflect annual business plans. The Financial Planning Department and the Risk Management Department regularly measure and monitor interest rate risk and report the status and limit of interest rate risk including changes in Economic Value of Equity (“ΔEVE”), changes in Net Interest Income (“ΔNII”), and duration gap to the ALCO and the Risk Management Council on a monthly basis, and to the Risk Management Committee on a quarterly basis. To ensure the adequacy of interest rate risk and liquidity risk management, the Risk Management Department assigns the limits, monitors and reviews the procedures and tasks of ALM operations conducted by the financial planning department, and reports related matters to the management independently.

The Group is closely monitoring the outputs of various industry groups and markets that manage the transition to the new interest rate benchmark, including announcements by LIBOR regulation authority and various consultative bodies related to the transition to alternative interest rate. In response to these announcements, the Group has completed most of the transition and replacement plans according to LIBOR transition programs and plans consisting of major business areas such as finance, accounting, tax, legal, IT, and risk. The program is under the control of the CFO and related matters are reported to the board of directors and consultative bodies with senior management as members. The Group continues its efforts as a market participant to actively express opinions so that the index interest rate benchmark reform can be carried out in the direction of minimizing the financial and non-financial impacts and operational risks on the Group and minimizing confusion among stakeholders.

4.4.3 Trading position

4.4.3.1 Definition of a trading position

The trading position, which is subject to market risk management, includes interest rate position and stock position held for short-term trading profit. The Group also includes and manages all foreign currency positions in our trading positions. The trading position subject to market risk management is the trading position defined in “Trading Policy and Guidelines” and the basic requirements for the trading position are as follows:

• The target position has no restrictions on the sale, the daily fair value assessment should be made, and the embedded significant risk can be hedged in the market.

• The trading position classification criteria should be clearly defined in the Trading Policy and Guidelines, and the trading position should be managed by a separate trading department.

• The target position must be operated according to the documented trading strategy, and the management of position limit must be carried out.

• The specialized dealer or operating department shall have the authority to execute the transaction without prior approval from the Risk Management Department, etc. within the predetermined limits of the target position.

• The target positions should be periodically reported to management for risk management of the Group.

53

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.4.3.2 Methods of observing market risk arising from trading positions

Although market risk was measured through internal models such as VaR under Basel II, the group is now required to calculate regulatory capital for all trading positions using the standard method through market risk management systems, following the adoption of Basel III market risk standard approach regulation in 2023. Furthermore, risk control and management for derivative financial product transactions are conducted in accordance with regulations and guidelines set by the Financial Supervisory Service.

4.4.3.3 Standard Method

Market risk regulatory capital is calculated using the Basel III standard method as follows.

[Market risk regulatory capital = (a) Sensitivity-based risk + (b) Default risk + (c) Residual risk ]

• Sensitivity-based risk, which forms the basis of the Basel III standard method for market risk, involves calculating the expected losses for each risk factor by applying and aggregating the risk weights and correlation coefficients specified by the Basel Committee.

• Default risk is the risk that arises from the issuer default of securities and derivatives that are not considered in sensitivity-based risk. It is calculated by applying risk weights based on the issuer’s credit rating and other factors.

• Residual risk is the risk that is not considered by sensitivity-based and default risk calculations. It is calculated by applying a certain percentage determined by the Basel Committee to the nominal value of structured products and other non-standard underlying assets.

			Description
Sensitivity-based risk	Interest rate risk group	GIRR	The risk associated with risk-free interest rates (typically OIS rates) defined by currency and maturity.
		CSR	The risk associated with the issuer’s interest rate credit spread, defined by creditworthiness and sector.
	Equity risk group		The risk factors associated with equity, defined by market capitalization, economic conditions, and sector
	Foreign exchange risk group		The risk factors associated with exchange rate, defined by currency pairs
	Commodity risk group		The risk factors associated with commodities, defined by commodity types.
Default risk			Issuer default risk in securities (bonds, etc.) and derivatives.
Residual risk			Additional risks imposed on non-standard underlying asset products, etc.

54

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

The table below represents regulatory capital for sensitivity-based risk, default risk, and residual risk of trading positions at the end of the current year.

(In millions of Korean won)		December 31, 2023		December 31, 2022 *
Sensitivity-based risk	GIRR(General interest rate))		90,697		—
	CSR(Non- securitization)		136,109		—
	CSR(Securitization n-CTP)		552		—
	CSR(Securitization CTP)		—		—
	Equity risk		17,642		—
	Foreign exchange risk		234,114		—
	General commodity risk		61		—
Default risk			85,375		—
Residual risk			862		—
Total			565,411		—

* No calculation of regulatory capital under the Basel III standard method due to the regulatory introduction in 2023

In accordance with the introduction of Basel III standard method regulation in 2023, the previous year’s report was prepared based on the Basel II internal model framework. VaR at a 99% confidence level of interest rate risk, stock price risk, and currency risk for trading positions with a ten-day holding period for the year ended December 31, 2022 is as follows:

	2022
(In millions of Korean won)	Average		Minimum		Maximum		December 31, 2022
Interest rate risk		34,923		16,541		64,356		47,093
Stock price risk		8,606		5,142		11,061		9,407
Currency risk		24,054		14,428		41,815		41,189
Diversification effect								(5,140	)
Total VaR		49,701		22,144		99,436		92,549

The required equity capital using the standard method related to the positions which are not measured by VaR as of December 31, 2022, is as follows:

(In millions of Korean won)	December 31, 2022
Interest rate risk		18,545
Stock price risk		4,686
Currency risk		70,757
		93,988

55

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

(a) Interest rate risk

Interest rate risk for trading positions usually arises from debt securities denominated in Korean won. The Group’s trading strategy is to gain short-term trading gains from interest rate fluctuations. The Group manages interest rate risk associated with trading portfolios using a sensitivity analysis (Price Value of a Basis Point: PVBP).

(b) Stock price risk

Stock price risk arises mainly from stock positions held by principal guaranteed trust and derivatives linked to stocks positions in the Financial Asset Trading Division. This stock price risk is managed through sensitivity limits and other measures.

(c) Currency risk

Currency risk arises from holding assets and liabilities which are denominated in foreign currency, and currency-related derivatives. Most of the net foreign currency exposures occur in the US dollar and the Indonesian Rupiah. Such foreign exchange risk is managed through net foreign exchange exposure limits and other measures.

4.4.4 Non-trading position (Interest Rate Risk of Banking Book (“IRRBB”))

4.4.4.1 Definition of IRRBB

IRRBB is a change in equity and earnings due to the changes in value of interest-sensitive assets and liabilities, etc., and is measured by ΔEVE and ΔNII.

4.4.4.2 The Bank’s overall interest rate risk management and mitigation strategy

The Risk Management Committee approves policies, procedures and limits for managing interest rate risk, and the management department regularly reports on interest rate risk levels of ΔEVE and ΔNII against the set limit, changes in market conditions, and others. In order to measure the sensitivity of the economic value and earnings to changes in interest rates, the Bank calculates monthly interest rate gap and duration gap for assets and liabilities. In addition, the management department conducts an interest rate risk crisis analysis at least once a quarter assuming abnormal interest rate fluctuations and reports the results to the Risk Management Council. Independent internal and external audit department regularly check the process of identifying, measuring and monitoring interest rate risk. The interest rate risk model adequacy test is carried out regularly at least once a year by the verification department independent of the management department.

4.4.4.3 Main modeling assumption used for the Bank’s interest rate risk measurement system for internal management

The bank measures adverse fluctuations in economic value resulting from changes in interest rates following the interest rate risk calculation standards set by the Financial Supervisory Service.

56

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.4.4.4 The Bank’s interest rate risk hedging methodology and related accounting

The Bank hedges interest rate risk through back-to-back interest rate swap transactions, which are the same as interest payment cash flows. The Bank officially documents and manages the risk management strategy for hedge accounting, risk management objectives, hedging relationship, and assessment method for hedge effectiveness.

4.4.4.5 Main assumptions used for calculating ΔEVE, ΔNII

The Bank calculates interest rate risk, including all cash flow of interest-sensitive assets and liabilities, and off-balance sheet items in the banking book. ΔEVE assumes a run-off balance sheet where the existing bank account positions are amortized and not replaced by new businesses. In addition, the contractual interest rate, including commercial margins and other spread components, is applied to generate cash flows. When discounting cash flows, ΔEVE is calculated by applying risk-free interest rate that do not include commercial margins and other spread components.

ΔNII assumes a constant balance sheet where maturing or repricing cash flows during the target management period are replaced by new cash flows with identical features. The interest rate risk is calculated for the interest rate shock scenario by adding up only if the risk is a loss for each currency. After classifying into retail/transactional, retail/non-transactional, and wholesale according to customers and regular transactions, the average repricing maturity of non-maturity deposits is determined by taking into account the proportion of core deposits and cap on average maturity of core deposits for each category. The average repricing maturity of non-maturity deposits is 2.5 years for core deposits, 1 day for non-core deposits, and the longest repricing maturity is five years. The prepayment rate of fixed rate loans and term deposit redemption ratio are estimated by dividing the amount of prepayment amount and redemption amount during the previous month by the balance at the end of the previous month, respectively.

4.4.4.6 ΔEVE and ΔNII

The Bank calculates ΔEVE by applying six interest rate shock and stress scenarios, and ΔNII is calculated by applying parallel shock up and parallel shock down scenarios. Results as of December 31, 2023 and 2022, are as follows:

	December 31, 2023				December 31, 2022
(In millions of Korean won)	ΔEVE		ΔNII		ΔEVE		ΔNII
Scenario 1 (Parallel shock up)		1,211,285		494,957		165,634		162,959
Scenario 2 (Parallel shock down)		—		—		290,330		—
Scenario 3 (Short rates down and long rates up)		338,439				266,737
Scenario 4 (Short rates up and long rates down)		620,553				268,261
Scenario 5 (Short rates shock up)		901,087				288,737
Scenario 6 (Short rates shock down)		90,869				132,998
Maximum out of six scenarios		1,211,285		494,957		290,330		162,959
Basic capital		33,507,818				31,176,032

57

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.4.5 Financial assets and liabilities denominated in foreign currencies

Details of financial instruments denominated in foreign currencies and translated into Korean won as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	USD		JPY		EUR		GBP		CNY		Others			Total
Financial assets
Cash and due from financial institutions		5,704,904		454,527		216,391		38,699		306,669		954,489			7,675,679
Financial assets at fair value through profit or loss		2,074,675		—		414,888		31,443		—		122,298			2,643,304
Derivatives held for trading		301,091		342		65		109		859		220			302,686
Derivatives held for hedging		108,152		—		—		—		—		190			108,342
Loans measured at amortized cost		31,446,213		785,006		2,646,927		901,085		1,648,885		5,837,975			43,266,091
Financial assets at fair value through other comprehensive income		4,044,205		—		33,596		4,591		654,436		866,177			5,603,005
Financial assets at amortized cost		2,356,158		—		5,741		199,590		32,579		1,613,208			4,207,276
Other financial assets		3,076,445		100,419		79,994		36,865		510,275		404,892			4,208,890
		49,111,843		1,340,294		3,397,602		1,212,382		3,153,703		9,799,449			68,015,273
Financial liabilities
Derivatives held for trading		251,375		1,107		343		108		11		208			253,152
Derivatives held for hedging		77,342		—		—		—		—		—			77,342
Deposits		24,990,120		1,667,195		1,813,477		761,031		1,783,511		4,192,353			35,207,687
Borrowings		15,419,190		743,356		430,211		262,687		506,248		1,492,572			18,854,264
Debentures		6,713,658		—		2,959,534		—		—		909,225			10,582,417
Other financial liabilities		4,701,050		91,519		840,630		8,995		544,345		(106,833	)		6,079,706
		52,152,735		2,503,177		6,044,195		1,032,821		2,834,115		6,487,525			71,054,568
Off-balance sheet items		24,598,474		—		329,194		36,936		204,314		518,693			25,687,611

	December 31, 2022
(In millions of Korean won)	USD		JPY		EUR		GBP		CNY		Others		Total
Financial assets
Cash and due from financial institutions		4,964,404		339,074		170,860		40,392		543,311		1,606,586		7,664,627
Financial assets at fair value through profit or loss		2,036,628		—		349,039		—		—		161,943		2,547,610
Derivatives held for trading		533,788		—		115		10		19,053		1,006		553,972
Derivatives held for hedging		193,063		—		—		—		—		290		193,353
Loans measured at amortized cost		32,541,243		683,704		2,360,630		622,702		1,944,500		5,442,230		43,595,009
Financial assets at fair value through other comprehensive income		4,409,688		—		9,091		5,677		556,052		873,788		5,854,296
Financial assets at amortized cost		4,197,224		—		—		37,816		60,013		1,041,651		5,336,704
Other financial assets		1,646,663		292,283		351,415		23,545		92,508		135,484		2,541,898
		50,522,701		1,315,061		3,241,150		730,142		3,215,437		9,262,978		68,287,469
Financial liabilities
Derivatives held for trading		271,778		246		182		10		6,868		957		280,041
Derivatives held for hedging		104,856		—		—		—		—		—		104,856
Deposits		25,220,691		1,244,037		1,381,500		344,559		2,301,110		5,205,509		35,697,406
Borrowings		18,652,958		458,856		363,990		351,536		266,727		1,419,793		21,513,860
Debentures		6,939,542		—		2,041,516		—		36,288		601,929		9,619,275
Other financial liabilities		3,495,067		266,505		188,414		13,502		100,020		237,452		4,300,960
		54,684,892		1,969,644		3,975,602		709,607		2,711,013		7,465,640		71,516,398
Off-balance sheet items		20,669,795		—		189,450		60,382		220,890		475,611		21,616,128

58

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

4.5 Operational Risk

4.5.1 Concept

The Group defines operational risk as loss risk arising from improper or incorrect internal procedures, personnel, systems or external events and includes financial and non-financial risks.

4.5.2 Risk management

The purpose of operational risk management is not only to comply with supervisory and regulatory requirements, but also to spread risk management culture, strengthen internal control, improve processes, and provide timely feedback to management and all employees. The Group established a Business Continuity Planning (BCP) to carry out continuous work in emergency situations and established alternative facilities. The Group conducts simulation training for headquarters and IT departments to check the business continuity framework.

4.6 Capital Management

The Group complies with the capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements (“BIS”) in June 2011 and was implemented in Korea in December 2013.

According to this standard, the Group is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 4.5%, Tier 1 Capital ratio of 6.0%, and Total Capital ratio of 8.0%) as of December 31, 2023. Capital Conservation Buffer of 2.5% and Capital Requirement of Domestic Systemically Important Bank (D-SIB) of 1.0% are additionally applied. Therefore, the Group is required to maintain a capital adequacy ratio including a minimum capital adequacy ratio and additional capital requirements (Common Equity Tier 1 Capital ratio of 8.0% (December 31, 2022: 8.0%), Tier 1 Capital ratio of 9.5% (December 31, 2022: 9.5%), and Total Capital ratio of 11.5% (December 31, 2022: 11.5%)).

59

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

The Group’s capital is classified into three categories in accordance with the Detailed Regulations on Supervision of Banking Business as follows:

• Common Equity Tier 1 Capital: Common equity Tier 1 Capital is the first to take losses of the Group and is the last to be compensated in liquidation of the Group and not repaid except for liquidation. It includes capital, capital surplus, retained earnings, non-controlling interests of the consolidated subsidiaries, accumulated other comprehensive income, and other capital surplus, etc.

• Additional Tier 1 Capital: Additional Tier 1 Capital includes capital, capital surplus, etc. related to the issuance of capital securities of a permanent nature that meet the conditional capital securities requirements.

• Tier 2 Capital: Tier 2 Capital means capital that can compensate for losses of the Group upon liquidation, including (a) the amount of subordinated bonds with maturity of not less than 5 years that meet the conditional capital securities requirements, and (b) the allowances for credit losses accumulated on the loans which are classified as normal or precautionary in accordance with Regulations on Supervision of Banking Business, and others.

The risk-weighted assets are the magnitude of assets that reflect the risk that the Group has to bear, including risks inherent in all assets, errors in the operation of internal processes, and risk of loss that may arise from external events. The Group calculates risk-weighted assets by each risk (credit risk, market risk, and operational risk) based on the Detailed Regulations on Supervision of Banking Business and uses them to calculate capital adequacy ratio. The Group complied with external capital adequacy requirements as of December 31, 2023 and 2022.

Apart from the capital adequacy ratio, the Group evaluates and manages capital adequacy through internal policies. The evaluation of capital adequacy compares the size of available capital (the amount of capital actually available) to the size of internal capital (the amount of capital required to cover all the significant risks faced by the Group under its target credit rating), which monitors financial soundness and provides a risk-adjusted performance measurement basis. The internal capital for capital adequacy assessment is calculated by adding the results of a stress test and other additional capital requirements to the internal capital calculated for each individual risk.

The Risk Management Committee of the Group determines the risk appetite of the Group, allocates internal capital by risk type and business group, and each business group operates capital efficiently within the range of the allocated internal capital. The Risk Management Department of the Group monitors internal capital limit management and reports it to management and the Risk Management Committee. If the limit of internal capital is expected to be exceeded, the Group’s capital adequacy management is carried out through review and approval by the Risk Management Committee in advance.

60

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Details of the Group’s capital adequacy ratio in accordance with Basel III requirements as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Total Capital:		39,039,876		36,232,973
Tier 1 Capital		33,478,665		30,963,124
Common Equity Tier 1 Capital		32,195,730		30,089,274
Additional Tier 1 Capital		1,282,935		873,850
Tier 2 Capital		5,561,211		5,269,849
Risk-Weighted Assets:		215,962,186		207,557,905
Credit risk 1		194,210,167		182,292,999
Market risk 2		7,067,638		12,611,416
Operational risk 3		14,684,381		12,653,490
Total Capital ratio (%):		18.08		17.46
Tier 1 Capital ratio (%)		15.50		14.92
Common Equity Tier 1 Capital ratio (%)		14.91		14.50

¹ Credit risk weighted assets are measured using the Internal Rating-Based Method and Standard Method.

² Market risk weighted assets are measured using the Standard Method.

³ Operational risk weighted assets are measured using the Standard Method.

61

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

5. Segment Information

5.1 Overall Segment Information and Business Segments

The Group is organized into Corporate Banking, Retail Banking and Other Activities. These segments are based on the nature of the products and services provided, the type or class of customer, and the Group’s management organization.

• Corporate banking: The activities within this segment include providing credit, deposit products, and other related financial services to large, small and medium-sized enterprises and SOHOs and foreign subsidiaries-related works.

• Retail banking: The activities within this segment include providing credit, deposit products, and other related financial services to individuals and households.

• Other activities: The activities within this segment include trading activities in securities and derivatives, funding, trust, and other activities.

Financial information by business segment as of and for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Corporate banking			Retail banking			Others			Consolidation adjustments			Total
Net operating revenues from external customers		5,761,241			4,443,943			252,700			—			10,457,884
Intersegment net operating revenues (expenses)		(3,611	)		—			72,643			(69,032	)		—
		5,757,630			4,443,943			325,343			(69,032	)		10,457,884
Net interest income		5,645,899			3,397,242			841,948			(15,022	)		9,870,067
Interest income		11,687,624			7,723,196			3,168,101			(231,798	)		22,347,123
Interest expense		(6,041,725	)		(4,325,954	)		(2,326,153	)		216,776			(12,477,056	)
Net fee and commission income		427,004			252,118			503,795			(14,634	)		1,168,283
Fee and commission income		612,643			403,042			629,193			(42,058	)		1,602,820
Fee and commission expense		(185,639	)		(150,924	)		(125,398	)		27,424			(434,537	)
Net gains (losses) on financial instruments at fair value through profit or loss		(6,449	)		—			768,262			(1,828	)		759,985
Net other operating income (expenses)		(308,824	)		794,583			(1,788,662	)		(37,548	)		(1,340,451	)
General and administrative expenses		(1,959,016	)		(1,952,434	)		(611,132	)		816			(4,521,766	)
Operating income before provision for credit losses		3,798,614			2,491,509			(285,789	)		(68,216	)		5,936,118
Provision for credit losses		(1,563,255	)		(92,464	)		(20,439	)		68,030			(1,608,128	)
Net operating income		2,235,359			2,399,045			(306,228	)		(186	)		4,327,990
Share of profit (loss) of associates		—			—			(301,241	)		301,358			117
Net other non-operating expenses		(14,754	)		—			(78,883	)		(4,693	)		(98,330	)
Segment profit (loss) before income tax expense		2,220,605			2,399,045			(686,352	)		296,479			4,229,777
Income tax expense		(633,917	)		(633,348	)		240,516			(53,076	)		(1,079,825	)
Profit (loss) for the year		1,586,688			1,765,697			(445,836	)		243,403			3,149,952
Profit (loss) attributable to the shareholder of the Parent Company		1,612,409			1,765,697			(445,836	)		329,229			3,261,499
Loss attributable to non-controlling interests		(25,721	)		—			—			(85,826	)		(111,547	)
Total assets *		221,851,975			165,821,667			150,210,256			(7,871,045	)		530,012,853
Total liabilities *		201,871,592			203,560,029			92,181,066			(4,148,561	)		493,464,126

62

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

5.1 Overall Segment Information and Business Segments (cont’d)

	2022
(In millions of Korean won)	Corporate banking			Retail banking			Others			Consolidation adjustments			Total
Net operating revenues from external customers		5,172,125			4,472,888			9,097			—			9,654,110
Intersegment net operating revenues (expenses)		(174,057	)		—			157,029			17,028			—
		4,998,068			4,472,888			166,126			17,028			9,654,110
Net interest income		4,720,718			3,936,872			631,654			1,777			9,291,021
Interest income		7,831,383			5,763,852			1,864,274			(100,808	)		15,358,701
Interest expense		(3,110,665	)		(1,826,980	)		(1,232,620	)		102,585			(6,067,680	)
Net fee and commission income		385,884			261,350			463,849			(14,475	)		1,096,608
Fee and commission income		546,634			415,858			600,152			(32,486	)		1,530,158
Fee and commission expense		(160,750	)		(154,508	)		(136,303	)		18,011			(433,550	)
Net gains (losses) on financial instruments at fair value through profit or loss		73,680			—			244,515			(107,614	)		210,581
Net other operating income (expenses)		(182,214	)		274,666			(1,173,892	)		137,340			(944,100	)
General and administrative expenses		(1,972,147	)		(2,092,770	)		(633,959	)		925			(4,697,951	)
Operating income before provision for credit losses		3,025,921			2,380,118			(467,833	)		17,953			4,956,159
Provision for credit losses		(778,260	)		(281,868	)		11,807			(72,849	)		(1,121,170	)
Net operating income		2,247,661			2,098,250			(456,026	)		(54,896	)		3,834,989
Share of profit of associates		—			—			12,666			—			12,666
Net other non-operating income		(13,317	)		—			(5,215	)		(19,333	)		(37,865	)
Segment profit (loss) before income tax expense		2,234,344			2,098,250			(448,575	)		(74,229	)		3,809,790
Income tax expense		(732,211	)		(522,478	)		158,696			14,510			(1,081,483	)
Profit (loss) for the year		1,502,133			1,575,772			(289,879	)		(59,719	)		2,728,307
Profit (loss) attributable to the shareholder of the Parent Company		1,505,240			1,575,772			(289,879	)		204,882			2,996,015
Loss attributable to non-controlling interests		(3,107	)		—			—			(264,601	)		(267,708	)
Total assets *		211,989,036			165,273,848			148,763,232			(8,256,604	)		517,769,512
Total liabilities *		205,382,625			191,786,626			91,870,560			(4,993,558	)		484,046,253

* Assets and liabilities of the reporting segments are amounts before intersegment transactions.

63

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

5.2 Services and Geographical Segments

5.2.1 Services information

Net operating revenues from external customers by service for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Corporate banking service		5,761,241		5,172,125
Retail banking service		4,443,943		4,472,888
Others		252,700		9,097
		10,457,884		9,654,110

5.2.2 Geographical information

Geographical net operating revenues from external customers for the years ended December 31, 2023 and 2022, and major non-current assets as of December 31, 2023 and 2022, are as follows:

	Net operating revenues from external customers					Major non-current assets
(In millions of Korean won)	2023		2022			December 31, 2023		December 31, 2022
Domestic		9,372,917		8,769,566			4,219,601		4,331,433
United States		83,173		71,327			15,224		14,485
New Zealand		12,611		12,378			1,051		1,382
China		154,357		150,024			19,135		18,429
Japan		13,164		18,939			1,977		1,480
Myanmar		9,399		6,360			1,288		1,736
Vietnam		42,189		25,409			2,417		2,159
Cambodia		544,091		514,222			44,570		33,581
United Kingdom		52,783		30,430			4,616		5,808
Singapore		19,900		(3,149	)		7,058		8,492
Indonesia		148,809		57,556			309,655		319,033
India		4,491		1,048			174		394
Consolidation adjustments		—		—			508,985		498,951
		10,457,884		9,654,110			5,135,751		5,237,363

64

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6. Financial Assets and Financial Liabilities

6.1 Classification and Fair Value of Financial Instruments

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2023 and 2022, are as follows:

	December 31, 2023				December 31, 2022
(In millions of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Cash and due from financial institutions		23,637,007		23,635,395		25,127,794		25,120,077
Financial assets at fair value through profit or loss:		19,700,714		19,700,714		21,213,408		21,213,408
Debt securities		19,197,608		19,197,608		20,756,579		20,756,579
Equity securities		225,873		225,873		217,748		217,748
Loans		183,490		183,490		149,075		149,075
Others		93,743		93,743		90,006		90,006
Derivatives held for trading		4,892,633		4,892,633		7,529,366		7,529,366
Derivatives held for hedging		146,328		146,328		238,226		238,226
Loans measured at amortized cost		385,404,070		385,486,929		374,671,976		372,232,275
Financial assets at fair value through other comprehensive income:		39,361,802		39,361,802		40,013,375		40,013,375
Debt securities		37,634,240		37,634,240		38,363,832		38,363,832
Equity securities		1,415,952		1,415,952		1,418,522		1,418,522
Loans		311,610		311,610		231,021		231,021
Securities measured at amortized cost		38,989,046		38,258,067		35,236,794		33,418,180
Other financial assets		10,703,605		10,703,605		6,709,627		6,709,627
		522,835,205		522,185,473		510,740,566		506,474,534
Financial liabilities
Financial liabilities at fair value through profit or loss		93,438		93,438		108,862		108,862
Derivatives held for trading		4,367,529		4,367,529		7,166,578		7,166,578
Derivatives held for hedging		77,823		77,823		104,856		104,856
Deposits		393,246,702		393,450,003		381,746,749		381,288,577
Borrowings		34,990,075		34,921,129		45,073,117		44,746,350
Debentures		31,811,407		31,856,315		29,787,722		29,611,888
Other financial liabilities		26,040,801		26,040,801		17,376,336		17,376,336
		490,627,775		490,807,038		481,364,220		480,403,447

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Group discloses the fair value of each class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is a quoted price in an active market.

65

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Methods of determining fair value of financial instruments are as follows:

Cash and due from financial institutions	Fair value of cash is the same as its carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable on demand. Fair value of general deposits is measured using a Discounted Cash Flow (“DCF”) Model.
Securities, Due from financial institutions and deposits indexed to gold price	Fair value of securities and others that are traded in an active market and due from financial institutions and deposits indexed to the gold price is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments including a DCF Model, MonteCarlo Simulation, Free Cash Flow to Equity Model, Comparable Company Analysis, Dividend Discount Model, and Net Asset Value Method.
Loans	Fair value of loans is determined using a DCF Model and independent external professional valuation institutions. Fair value measured using a DCF Model is determined by discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.
Derivatives	Fair value of exchange traded derivatives is determined using quoted prices in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Group uses internally developed valuation models that are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including a Finite Difference Method (“FDM”), MonteCarlo Simulation, and Tree Model or valuation results from independent external professional valuation institutions. For OTC derivatives, the credit risk of the counterparty and the Group’s own credit risk are applied through a credit valuation adjustment method.
Deposits	Carrying amount of demand deposits is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of time deposits is determined using a DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.
Borrowings	Carrying amount of overdrafts in foreign currency is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of other borrowings is determined using a DCF Model.
Debentures	Fair value is determined using the valuation results (DCF Model) of external professional valuation institutions, which are calculated using market inputs.
Other financial assets and other financial liabilities	Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions, and their maturities are relatively short or not defined.

66

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.1.2 Fair value hierarchy

The Group believes that valuation techniques used for measuring the fair value of financial instruments are reasonable and that the fair value recognized in the consolidated statement of financial position is appropriate. However, the fair value of the financial instruments recognized in the consolidated statement of financial position may be different if other valuation techniques or assumptions are used. Additionally, as there are a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

The Group classifies and discloses fair value of the financial instruments into the three fair value levels as follows:

Level 1:	The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2:	The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3:	The fair values are based on unobservable inputs for the asset or liability.

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement would be categorized within Level 3 of the fair value hierarchy.

67

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position

Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:		6,629,880		7,526,568		5,544,266		19,700,714
Debt securities		6,465,500		7,526,568		5,205,540		19,197,608
Equity securities		70,637		—		155,236		225,873
Loans		—		—		183,490		183,490
Others		93,743		—		—		93,743
Derivatives held for trading		—		4,892,600		33		4,892,633
Derivatives held for hedging		—		146,328		—		146,328
Financial assets at fair value through other comprehensive income:		14,947,243		23,704,725		709,834		39,361,802
Debt securities		14,241,125		23,393,115		—		37,634,240
Equity securities		706,118		—		709,834		1,415,952
Loans		—		311,610		—		311,610
		21,577,123		36,270,221		6,254,133		64,101,477
Financial liabilities
Financial liabilities at fair value through profit or loss		93,438		—		—		93,438
Derivatives held for trading		—		4,366,724		805		4,367,529
Derivatives held for hedging		—		77,823		—		77,823
		93,438		4,444,547		805		4,538,790

	December 31, 2022
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:		7,216,086		9,613,485		4,383,837		21,213,408
Debt securities		7,059,911		9,613,485		4,083,183		20,756,579
Equity securities		66,169		—		151,579		217,748
Loans		—		—		149,075		149,075
Others		90,006		—		—		90,006
Derivatives held for trading		—		7,529,333		33		7,529,366
Derivatives held for hedging		—		238,226		—		238,226
Financial assets at fair value through other comprehensive income:		11,855,563		27,352,216		805,596		40,013,375
Debt securities		11,242,637		27,121,195		—		38,363,832
Equity securities		612,926		—		805,596		1,418,522
Loans		—		231,021		—		231,021
		19,071,649		44,733,260		5,189,466		68,994,375
Financial liabilities
Financial liabilities at fair value through profit or loss		108,862		—		—		108,862
Derivatives held for trading		—		7,166,128		450		7,166,578
Derivatives held for hedging		—		104,856		—		104,856
		108,862		7,270,984		450		7,380,296

68

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the consolidated statements of financial position as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:		7,526,568
Debt securities		7,526,568	DCF Model, MonteCarlo Simulation, Net Asset Value Method	Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.)
Derivatives held for trading		4,892,600	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		146,328	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
Financial assets at fair value through other comprehensive income:		23,704,725
Debt securities		23,393,115	DCF Model	Discount rate
Loans		311,610	DCF Model	Discount rate
		36,270,221
Financial liabilities
Derivatives held for trading		4,366,724	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		77,823	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
		4,444,547

	December 31, 2022
(In millions of Korean won)	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:		9,613,485
Debt securities		9,613,485	DCF Model, MonteCarlo Simulation, Net Asset Value Method	Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.)
Derivatives held for trading		7,529,333	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		238,226	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
Financial assets at fair value through other comprehensive income:		27,352,216
Debt securities		27,121,195	DCF Model	Discount rate
Loans		231,021	DCF Model	Discount rate
		44,733,260
Financial liabilities
Derivatives held for trading		7,166,128	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		104,856	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
		7,270,984

69

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		2,252,575		19,256,112		2,126,708		23,635,395
Loans measured at amortized cost		—		—		385,486,929		385,486,929
Securities measured at amortized cost		4,328,010		33,930,057		—		38,258,067
Other financial assets 2		—		—		10,703,605		10,703,605
		6,580,585		53,186,169		398,317,242		458,083,996
Financial liabilities
Deposits 1		—		160,173,544		233,276,459		393,450,003
Borrowings 1		—		38,194		34,882,935		34,921,129
Debentures		—		31,856,315		—		31,856,315
Other financial liabilities 2		—		—		26,040,801		26,040,801
		—		192,068,053		294,200,195		486,268,248

	December 31, 2022
	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		2,560,519		20,223,592		2,335,966		25,120,077
Loans measured at amortized cost		—		—		372,232,275		372,232,275
Securities measured at amortized cost		5,087,917		28,330,263		—		33,418,180
Other financial assets 2		—		—		6,709,627		6,709,627
		7,648,436		48,553,855		381,277,868		437,480,159
Financial liabilities
Deposits 1		—		164,003,100		217,285,477		381,288,577
Borrowings 1		—		18,271		44,728,079		44,746,350
Debentures		—		29,611,888		—		29,611,888
Other financial liabilities 2		—		—		17,376,336		17,376,336
		—		193,633,259		279,389,892		473,023,151

¹ The amounts included in Level 2 are the carrying amounts which are reasonable approximations of fair value.

² Other financial assets and other financial liabilities included in Level 3 are the carrying amounts which are reasonable approximations of fair value.

70

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

For financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, valuation techniques and inputs are not disclosed.

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value		Valuation techniques	Inputs
Financial assets
Securities measured at amortized cost		33,930,057	DCF Model, MonteCarlo Simulation	Discount rate, interest rate
Financial liabilities
Debentures		31,856,315	DCF Model	Discount rate

	December 31, 2022
(In millions of Korean won)	Fair value		Valuation techniques	Inputs
Financial assets
Securities measured at amortized cost		28,330,263	DCF Model, MonteCarlo Simulation	Discount rate, interest rate
Financial liabilities
Debentures		29,611,888	DCF Model	Discount rate

71

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

Valuation techniques and inputs of financial assets and liabilities classified as Level 3, and whose fair value is disclosed as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value		Valuation techniques		Inputs	Unobservable inputs
Financial assets
Cash and due from financial institutions		2,126,708		DCF Model	Credit spread, other spread, interest rate		Credit spread, other spread
Loans measured at amortized cost		385,486,929		DCF Model	Credit spread, other spread, prepayment rate, interest rate		Credit spread, other spread, prepayment rate
		387,613,637
Financial liabilities
Deposits		233,276,459		DCF Model	Other spread, prepayment rate, interest rate		Other spread, prepayment rate
Borrowings		34,882,935		DCF Model	Other spread, interest rate		Other spread
		268,159,394

	December 31, 2022
(In millions of Korean won)	Fair value		Valuation techniques		Inputs	Unobservable inputs
Financial assets
Cash and due from financial institutions		2,335,966		DCF Model	Credit spread, other spread, interest rate		Credit spread, other spread
Loans measured at amortized cost		372,232,275		DCF Model	Credit spread, other spread, prepayment rate, interest rate		Credit spread, other spread, prepayment rate
		374,568,241
Financial liabilities
Deposits		217,285,477		DCF Model	Other spread, prepayment rate, interest rate		Other spread, prepayment rate
Borrowings		44,728,079		DCF Model	Other spread, interest rate		Other spread
		262,013,556

6.2 Disclosure of Fair Value Hierarchy Level 3

6.2.1 Valuation policy and process of Level 3 fair value

The Group uses an external, independent and qualified valuation service in addition to internal valuation models to determine the fair value of financial instruments at the end of every reporting period.

If the changes in situation and events cause transfers between the fair value hierarchy level for a financial asset or liability occur, the Group’s policy is to recognize such transfers as having occurred at the beginning of the reporting period.

72

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.2.2 Changes in fair value (Level 3) measured using valuation technique based on unobservable inputs in the market

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2023 and 2022, are as follows:

	2023
	Financial assets at fair value through profit or loss						Financial investments			Net derivative financial instruments
(In millions of Korean won)	Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss			Equity securities measured at fair value through other comprehensive income			Derivatives held for trading			Derivatives held for hedging
Beginning		4,234,762			149,075			805,596			(417	)		—
Total gains or losses:
- Profit or loss		189,155			(11,955	)		—			(355	)		—
- Other comprehensive loss		—			—			(95,600	)		—			—
Purchases		1,313,979			50,435			152			—			—
Sales		(377,120	)		(4,065	)		(314	)		—			—
Ending		5,360,776			183,490			709,834			(772	)		—

	2022
	Financial assets at fair value through profit or loss						Financial investments			Net derivative financial instruments
(In millions of Korean won)	Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss			Equity securities measured at fair value through other comprehensive income			Derivatives held for trading			Derivatives held for hedging
Beginning		3,220,645			93,930			849,099			(331	)		—
Total gains or losses:
- Profit or loss		117,562			20,306			—			(86	)		—
- Other comprehensive income		—			—			(47,055	)		—			—
Purchases		1,303,168			45,487			4,093			—			—
Sales		(406,613	)		(10,648	)		(541	)		—			—
Ending		4,234,762			149,075			805,596			(417	)		—

73

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Net gains on financial instruments at fair value through profit or loss		Other operating income		Net interest income
Total gains recognized in profit or loss for the period		142,995		33,850		—
Total gains recognized in profit or loss from financial instruments held at the end of the reporting period		143,076		57,361		—

	2022
(In millions of Korean won)	Net gains on financial instruments at fair value through profit or loss		Other operating expenses		Net interest income
Total gains recognized in profit or loss for the period		71,695		66,087		—
Total gains recognized in profit or loss from financial instruments held at the end of the reporting period		62,419		17,174		—

74

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.2.3 Sensitivity analysis of changes in unobservable inputs

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)
	December 31, 2023
	Fair value		Valuation techniques	Inputs	Unobservable inputs	Range of unobservable inputs (%)		Relationship of unobservable inputs to fair value
Financial assets
Financial assets at fair value through profit or loss:
Debt securities		5,205,540	MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model	Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price	Rate of real estate sale price fluctuation		0.00	Higher the real estate sale price, higher the fair value
					Volatility of stock price		20.03 ~ 32.55	Higher the volatility, higher the fair value fluctuation
Equity securities		155,236	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method	Growth rate, discount rate	Growth rate		0.00	Higher the growth rate, higher the fair value
					Discount rate		8.81 ~ 19.32	Lower the discount rate, higher the fair value
Loans		183,490	DCF Model	Discount rate	Discount rate		9.65	Lower the discount rate, higher the fair value
Derivatives held for trading:
Stock and index		33	Tree Model	Price of underlying asset, volatility of underlying asset	Volatility of underlying asset		19.59 ~ 20.03	Higher the volatility, higher the fair value fluctuation
Financial assets at fair value through other comprehensive income:
Equity securities		709,834	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model	Growth rate, discount rate, stock price, volatility of stock price	Growth rate		0.00 ~ 1.00	Higher the growth rate, higher the fair value
					Discount rate		9.25 ~ 19.90	Lower the discount rate, higher the fair value
					Volatility of stock price		20.60 ~ 27.96	Higher the volatility, higher the fair value fluctuation
		6,254,133
Financial liabilities
Derivatives held for trading:
Others		805	DCF Model	Interest rate, discount rate	Discount rate		5.07 ~ 5.19	Higher the discount rate, lower the fair value
		805

75

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Fair value		Valuation techniques	Inputs	Unobservable inputs	Range of unobservable inputs (%)		Relationship of unobservable inputs to fair value
Financial assets
Financial assets at fair value through profit or loss:
Debt securities		4,083,183	MonteCarlo Simulation, Net Asset Value Method, DCF Model, Tree Model	Price of underlying asset, interest rate, dividend yield, discount rate, liquidation value, rate of real estate sale price fluctuation, stock price, volatility of stock price	Volatility of underlying asset		23.97 ~ 26.52	Higher the volatility, higher the fair value fluctuation
					Correlation coefficient of underlying asset		22.85	Higher the correlation coefficient, higher the fair value fluctuation
					Discount rate		8.53	Lower the discount rate, higher the fair value
					Liquidation value		0.00	Higher the liquidation value, higher the fair value
					Rate of real estate sale price fluctuation		0.00	Higher the real estate sale price, higher the fair value
					Volatility of stock price		21.83 ~ 34.51	Higher the volatility, higher the fair value fluctuation
Equity securities		151,579	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method	Growth rate, discount rate	Growth rate		0.00	Higher the growth rate, higher the fair value
					Discount rate		9.16 ~ 15.82	Lower the discount rate, higher the fair value
Loans		149,075	DCF Model	Discount rate	Discount rate		9.91	Lower the discount rate, higher the fair value
Derivatives held for trading:
Stock and index		33	Tree Model	Price of underlying asset, volatility of underlying asset	Volatility of underlying asset		21.83 ~ 31.73	Higher the volatility, higher the fair value fluctuation
Financial assets at fair value through other comprehensive income:
Equity securities		805,596	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model	Growth rate, discount rate, stock price, volatility of stock price	Growth rate		0.00 ~ 1.00	Higher the growth rate, higher the fair value
					Discount rate		9.08 ~ 19.14	Lower the discount rate, higher the fair value
					Volatility of stock price		24.88 ~28.62	Higher the volatility, higher the fair value fluctuation
		5,189,466
Financial liabilities
Derivatives held for trading:
Others		450	DCF Model	Interest rate, discount rate	Discount rate		4.83 ~ 6.85	Higher the discount rate, lower the fair value
		450

76

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. Level 3 financial instruments subject to sensitivity analysis are debt securities, loans, equity-related derivatives, currency-related derivatives, interest rate-related derivatives, and other derivatives whose fair value changes are recognized in profit or loss as well as equity securities whose fair value changes are recognized in profit or loss or other comprehensive income or loss.

Results of the sensitivity analysis of changes in unobservable inputs as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	Profit or loss					Other comprehensive income or loss
(In millions of Korean won)	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss:
Debt securities 4, 6		6,061		(6,060	)		—		—
Equity securities 3, 6		5,150		(2,455	)		—		—
Loans 5		2,218		(2,011	)		—		—
Derivatives held for trading 1		3		(2	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities 3, 6, 7		—		—			57,932		(31,594	)
		13,432		(10,528	)		57,932		(31,594	)
Financial liabilities
Derivatives held for trading 2		55		(55	)		—		—
		55		(55	)		—		—

77

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.2.3.2 Sensitivity analysis of changes in unobservable inputs (cont’d)

	December 31, 2022
	Profit or loss					Other comprehensive income or loss
(In millions of Korean won)	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss:
Debt securities 4, 6		6,140		(6,383	)		—		—
Equity securities 3, 6		8,629		(5,033	)		—		—
Loans 5		2,277		(2,054	)		—		—
Derivatives held for trading 1		2		(2	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities 3, 6, 7		—		—			137,984		(56,900	)
		17,048		(13,472	)		137,984		(56,900	)
Financial liabilities
Derivatives held for trading 2		72		(72	)		—		—
		72		(72	)		—		—

¹ For derivative held for trading financial instruments, changes in fair value are calculated by shifting principal unobservable input parameters such as price and the volatility of underlying asset by ±10%.

² For derivative held for trading financial instruments, changes in fair value are calculated by shifting principal input parameters such as discount rate (-1%p~1%p).

³ For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p) and growth rate (0%p~1%p).

⁴  For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting the rate of real estate sale price fluctuation (-1%p~1%p). For beneficiary certificates whose underlying assets are equity investments, changes in fair value are calculated by shifting the liquidation value (-1%p~1%p) and discount rate (-1%p~1%p). There is no significant correlation among major unobservable inputs.

⁵  For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as the discount rate (-1%p~1%p).

⁶  The amounts of W 5,062,883 million and W 3,989,635 million of financial assets classified as level 3 as of December 31, 2023 and 2022, respectively, are excluded because it is practically impossible to analyze the sensitivity of changes in unobservable inputs.

⁷  For some equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as stock price and volatility of stock price by ±10%.

78

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.2.4 Day one gains or losses

When the Group measures the fair value of OTC derivatives using inputs that are not based on observable market data, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price, and the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. When the fair value of the financial instruments is subsequently determined using observable market inputs, the remaining deferred amount is recognized in profit or loss.

Changes in deferred day one gains or losses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Balance at the beginning of the year (A)		(6,746	)		(8,719	)
New transactions (B)		—			(105	)
Amounts recognized in profit or loss (C=a+b)		2,039			2,078
a.Amortization		2,039			2,078
b.Settlement		—			—
Balance at the end of the year (A+B+C)		(4,707	)		(6,746	)

6.3 Carrying Amount of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortized cost. Carrying amount of financial assets and liabilities by category as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial assets
Cash and due from financial institutions		—		—		—		23,637,007		—		23,637,007
Financial assets at fair value through profit or loss		19,700,714		—		—		—		—		19,700,714
Derivative financial assets		4,892,633		—		—		—		146,328		5,038,961
Loans measured at amortized cost		—		—		—		385,404,070		—		385,404,070
Financial investments		—		37,945,850		1,415,952		38,989,046		—		78,350,848
Other financial assets		—		—		—		10,703,605		—		10,703,605
		24,593,347		37,945,850		1,415,952		458,733,728		146,328		522,835,205

79

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.3 Carrying Amount of Financial Instruments by Category (cont’d)

	December 31, 2023
(In millions of Korean won)	Financial instruments at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial liabilities
Financial liabilities at fair value through profit or loss		93,438		—		—		93,438
Derivative financial liabilities		4,367,529		—		77,823		4,445,352
Deposits		—		393,246,702		—		393,246,702
Borrowings		—		34,990,075		—		34,990,075
Debentures		—		31,811,407		—		31,811,407
Other financial liabilities		—		26,040,801		—		26,040,801
		4,460,967		486,088,985		77,823		490,627,775

	December 31, 2022
(In millions of Korean won)	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial assets
Cash and due from financial institutions		—		—		—		25,127,794		—		25,127,794
Financial assets at fair value through profit or loss		21,213,408		—		—		—		—		21,213,408
Derivative financial assets		7,529,366		—		—		—		238,226		7,767,592
Loans measured at amortized cost		—		—		—		374,671,976		—		374,671,976
Financial investments		—		38,594,853		1,418,522		35,236,794		—		75,250,169
Other financial assets		—		—		—		6,709,627		—		6,709,627
		28,742,774		38,594,853		1,418,522		441,746,191		238,226		510,740,566

	December 31, 2022
(In millions of Korean won)	Financial instruments at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial liabilities
Financial liabilities at fair value through profit or loss		108,862		—		—		108,862
Derivative financial liabilities		7,166,578		—		104,856		7,271,434
Deposits		—		381,746,749		—		381,746,749
Borrowings		—		45,073,117		—		45,073,117
Debentures		—		29,787,722		—		29,787,722
Other financial liabilities		—		17,376,336		—		17,376,336
		7,275,440		473,983,924		104,856		481,364,220

80

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.4 Transfer of Financial Assets

6.4.1 Transferred financial assets that are derecognized in their entirety

The Group transferred loans and other financial assets to companies specialized in asset-backed securitization and derecognized them from the consolidated financial statement. While the maximum exposure to loss (carrying amount) from its continuing involvement and fair value of its continuing involvement of the derecognized financial assets as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Type of continuing involvement	Classification of financial instruments	Carrying amount of continuing involvement		Fair value of continuing involvement
Discovery 2nd Securitization Specialty Co., Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		564		564
AP 4D ABS Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		257		257
				821		821
	December 31, 2022
(In millions of Korean won)	Type of continuing involvement	Classification of financial instruments	Carrying amount of continuing involvement		Fair value of continuing involvement
Discovery 2nd Securitization Specialty Co., Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		564		564
AP 4D ABS Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		541		541
				1,105		1,105

81

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.4.2 Bonds sold under repurchase agreements and loaned securities

The Group continues to recognize the financial assets related to bonds sold under repurchase agreements and securities lending transactions in the consolidated statement of financial position since those transactions are not qualified for derecognition even though the Group transfers the financial assets. Bonds sold under repurchase agreements are sold on the condition that they will be repurchased at a fixed price, and loaned securities will be returned at the expiration of the loan period. Thus, the Group retains substantially all the risks and rewards of ownership of the financial assets.

The carrying amount of transferred assets and related liabilities as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Carrying amount of transferred assets		Carrying amount of related liabilities
Bonds sold under repurchase agreements		7,177,954		6,528,900
Loaned securities:
Government and public bonds		170,203		—
		7,348,157		6,528,900
	December 31, 2022
(In millions of Korean won)	Carrying amount of transferred assets		Carrying amount of related liabilities
Bonds sold under repurchase agreements		5,459,045		4,930,104
Loaned securities:
Government and public bonds		239,132		—
		5,698,177		4,930,104

6.4.3 Purchase commitments of securitized debentures

The Group provided additional credit enhancement, such as purchase commitments, for the underlying assets of subsidiaries established for asset-backed securitization. Details of carrying amounts of the underlying assets and the associated liabilities as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Underlying assets	Financial assets at fair value through profit or loss		104,545		15,442
	Loans measured at amortized cost *		830,076		1,167,244
			934,621		1,182,686
Associated liabilities	Debentures		931,076		1,182,844

* Before netting of allowance

82

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.5 Offsetting Financial Assets and Financial Liabilities

The Group enters into International Swaps and Derivatives Association (“ISDA”) master netting agreements and other similar arrangements with the Group’s OTC derivative and spot exchange counterparties. Similar netting agreements are also entered into with the Group’s (a) sales or purchases of bonds under repurchase agreements and (b) securities lending and borrowing transactions, etc. Pursuant to these agreements, in the event of default by one party, contracts are to be terminated and receivables and payables are to be offset. As the Group has the legal right of offset and settles in net amount, domestic exchange settlement debits and domestic exchange settlement credits are recognized in its net settlement balance in the consolidated statement of financial position. Other financial instruments such as account receivables and account payables related to listed securities, and derivatives or OTC derivatives settled by the central clearing house are also recognized in its net settlement balance in the consolidated statement of financial position as the Group has the legal right of offset and settles in net amount.

6.5.1 Details of financial assets subject to enforceable master netting agreements or similar arrangements as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	Gross assets		Gross liabilities offset			Net amount in the statement of financial position		Non-offsetting amount						Net amount
(In millions of Korean won)								Financial instruments			Cash collateral
Derivatives held for trading		4,892,600		—			4,892,600
Derivatives held for hedging		146,328		—			146,328		(4,131,142	)		(12,419	)		895,367
Unsettled spot exchange receivable		7,141,469		—			7,141,469		(6,854,055	)		—			287,414
Bonds purchased under repurchase agreements		2,466,558		—			2,466,558		(2,445,990	)		—			20,568
Domestic exchange settlement debits		63,172,013		(62,367,444	)		804,569		—			—			804,569
Other financial instruments		44,738		(39,487	)		5,251		—			—			5,251
		77,863,706		(62,406,931	)		15,456,775		(13,431,187	)		(12,419	)		2,013,169
	December 31, 2022
	Gross assets		Gross liabilities offset			Net amount in the statement of financial position		Non-offsetting amount						Net amount
(In millions of Korean won)								Financial instruments			Cash collateral
Derivatives held for trading		7,529,334		—			7,529,334
Derivatives held for hedging		238,226		—			238,226		(6,367,793	)		(826	)		1,398,941
Unsettled spot exchange receivable		3,368,979		—			3,368,979		(3,355,280	)		—			13,699
Bonds purchased under repurchase agreements		2,281,357		—			2,281,357		(2,281,357	)		—			—
Domestic exchange settlement debits		55,446,595		(54,584,853	)		861,742		—			—			861,742
Other financial instruments		20,283		(15,143	)		5,140		—			—			5,140
		68,884,774		(54,599,996	)		14,284,778		(12,004,430	)		(826	)		2,279,522

83

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

6.5.2 Details of financial liabilities subject to enforceable master netting agreements or similar arrangements as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	Gross liabilities		Gross assets offset			Net amount in the statement of financial position		Non-offsetting amount					Net amount
(In millions of Korean won)								Financial instruments			Cash collateral
Derivatives held for trading		4,366,724		—			4,366,724
Derivatives held for hedging		77,823		—			77,823		(3,354,179	)		—		1,090,368
Unsettled spot exchange payable		7,140,872		—			7,140,872		(6,854,055	)		—		286,817
Bonds sold under repurchase agreements *		6,528,900		—			6,528,900		(6,528,900	)		—		—
Domestic exchange settlement credits		65,227,189		(62,367,444	)		2,859,745		(2,859,745	)		—		—
Other financial instruments		48,143		(39,487	)		8,656		—			—		8,656
		83,389,651		(62,406,931	)		20,982,720		(19,596,879	)		—		1,385,841
	December 31, 2022
	Gross liabilities		Gross assets offset			Net amount in the statement of financial position		Non-offsetting amount					Net amount
(In millions of Korean won)								Financial instruments			Cash collateral
Derivatives held for trading		7,166,128		—			7,166,128
Derivatives held for hedging		104,856		—			104,856		(4,925,667	)		—		2,345,317
Unsettled spot exchange payable		3,368,837		—			3,368,837		(3,355,280	)		—		13,557
Bonds sold under repurchase agreements *		4,948,293		—			4,948,293		(4,948,293	)		—		—
Domestic exchange settlement credits		56,319,757		(54,584,853	)		1,734,904		(1,734,904	)		—		—
Other financial instruments		15,212		(15,143	)		69		—			—		69
		71,923,083		(54,599,996	)		17,323,087		(14,964,144	)		—		2,358,943

* Includes bonds sold under repurchase agreements to customers.

84

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

7. Due from Financial Institutions

7.1 Details of due from financial institutions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Financial institutions	Interest rate (%)	December 31, 2023		December 31, 2022
Due from financial institutions in Korean won	Due from Bank of Korea	Bank of Korea	—		13,731,708		15,169,704
	Due from banks	Hana Bank and others	0.00 ~ 2.99		611,951		377,655
	Due from others	KB Securities Co., Ltd. and others	0.00 ~ 3.80		18,005		24,152
					14,361,664		15,571,511
Due from financial institutions in foreign currencies	Due from banks in foreign currencies	CITIBANK N.A. and others	0.00 ~ 5.63		6,147,140		5,559,644
	Time deposits in foreign currencies	Bank of Communications, Seoul and others	5.30 ~ 8.00		348,863		458,225
	Due from others	State Street Bank And Trust Company Seoul Branch and others	0.00 ~ 6.25		525,098		979,771
					7,021,101		6,997,640
					21,382,765		22,569,151

* Before netting of allowance, including W 20,306,930 million classified as cash.

7.2 Details of restricted due from financial institutions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Financial institutions	December 31, 2023		December 31, 2022		Reasons of restriction
Due from financial institutions in Korean won	Due from Bank of Korea	Bank of Korea		13,731,708		15,169,704	Bank of Korea Act
	Due from others	KB Securities Co., Ltd. and others		16,829		24,152	Derivatives margin account
				13,748,537		15,193,856
Due from financial institutions in foreign currencies	Due from banks in foreign currencies	Bank of Korea and others		1,630,348		2,350,756	Bank of Korea Act and others
	Time deposits in foreign currencies	Agricultural Bank Of China New York Branch		77,364		63,365	New York State Banking Law
	Due from others	State Street Bank and Trust Company Seoul Branch		207,532		238,978	Derivatives margin account
				1,915,244		2,653,099
				15,663,781		17,846,955

* Before netting of allowance, including W 14,676,625 million classified as cash.

85

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

7.3 Changes in allowances for credit losses of due from financial institutions for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	12-month expected credit losses			Lifetime expected credit losses
				Non-impaired		Impaired
Beginning		1,875			—		—
Transfer between stages		—			—		—
Provision (reversal) for credit losses		(1,252	)		—		—
Others (exchange differences, etc.)		(4	)		—		—
Ending		619			—		—

(In millions of Korean won)	2022
	12-month expected credit losses			Lifetime expected credit losses
				Non-impaired		Impaired
Beginning		2,127			—		—
Transfer between stages		—			—		—
Provision (reversal) for credit losses		(358	)		—		—
Others (exchange differences, etc.)		106			—		—
Ending		1,875			—		—

86

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

8. Assets Pledged as Collateral

8.1 Details of assets pledged as collateral as of December 31, 2023 and 2022, are as follows:

		December 31, 2023
(In millions of Korean won) Assets pledged	Pledgee	Carrying amount		Reasons of pledge
Securities measured at fair value through profit or loss	Korea Securities Depository and others		73,891	Repurchase agreements
	Bank of Korea		266,575	Settlement risk of Bank of Korea
			340,466
Securities measured at fair value through other comprehensive income	Bank of Korea and others		5,783,458	Repurchase agreements
	Bank of Korea		527,494	Borrowings from Bank of Korea
			830,504	Settlement risk of Bank of Korea
	MUFGBANK and others		89,941	Derivatives transactions
	Others		1,241,904	Others
			8,473,301
Securities measured at amortized cost	Bank of Korea and others		625,003	Repurchase agreements
	Bank of Korea		2,357,018	Borrowings from Bank of Korea
			6,746,440	Settlement risk of Bank of Korea
	KB Securities Co., Ltd. and others		401,448	Derivatives transactions
	Others		1,699,145	Others
			11,829,054
Loans	Others		13,733,819	Covered bond and others
Building / Land	Hanwha Life Insurance Co., Ltd. and others		225,438	Others
			34,602,078
		December 31, 2022
(In millions of Korean won) Assets pledged	Pledgee	Carrying amount		Reasons of pledge
Securities measured at fair value through profit or loss	Korea Securities Depository and others		116,645	Repurchase agreements
	Korea Securities Finance Corporation		34,071	Difference amount of the total limit
	Bank of Korea		236,832	Settlement risk of Bank of Korea
			387,548
Securities measured at fair value through other comprehensive income	Bank of Korea		3,078,859	Repurchase agreements
			5,495,686	Borrowings from Bank of Korea
			1,782,507	Settlement risk of Bank of Korea
	MUFGBANK and others		475,265	Derivatives transactions
	UBSAG and others		486,654	Others
			11,318,971
Securities measured at amortized cost	Bank of Korea and others		1,890,368	Repurchase agreements
	Bank of Korea		4,020,539	Borrowings from Bank of Korea
			5,047,277	Settlement risk of Bank of Korea
	KB Securities Co., Ltd. and others		230,050	Derivatives transactions
	CITI Bank and others		378,416	Others
			11,566,650
Loans	Others		12,863,079	Covered bond and others
Building / Land	Hanwha Life Insurance Co., Ltd. and others		225,833	Others
			36,362,081

87

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

8.2 Fair value of collateral available to sell or repledge, and collateral sold or repledged, regardless of debtor’s default as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value of collateral held		Fair value of collateral sold or repledged
Securities		2,417,243		—
	December 31, 2022
(In millions of Korean won)	Fair value of collateral held		Fair value of collateral sold or repledged
Securities		2,572,441		—

9. Derivative Financial Instruments and Hedge Accounting

The Group engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Group’s own assets and liabilities. In particular, the Group applies fair value hedge accounting using interest rate swaps to hedge the risk of changes in fair value due to the changes in interest rate of structured debentures in Korean won, debentures, structured deposits in foreign currencies, and debt securities at fair value through other comprehensive income. Also, the Group applies cash flow hedge accounting using interest rate swaps to hedge the risk of changes in cash flows of debentures in foreign currencies, borrowings in foreign currencies, and group of loans measured at amortized cost. In addition, the Group applies net investments in foreign operations hedge accounting by designating debentures in foreign currencies and spot components of the currency forward as hedging instruments to hedge the currency risk of net investments in foreign operations.

9.1 Details of derivative financial instruments held for trading as of December 31, 2023 and 2022, are as follows:

	December 31, 2023						December 31, 2022
(In millions of Korean won)	Notional Amount		Assets		Liabilities		Notional amount		Assets		Liabilities
Interest rate
Forwards		3,847,049		156,650		135,761		2,765,927		355,407		11,092
Futures 1		1,274,123		—		—		2,105,953		—		—
Swaps 2		222,282,689		455,913		339,944		221,095,884		759,599		437,916
Options		9,074,000		201,700		205,239		9,798,000		268,469		265,283
		236,477,861		814,263		680,944		235,765,764		1,383,475		714,291
Currency
Forwards		132,177,258		1,292,051		1,246,743		107,620,136		2,557,498		2,354,719
Futures 1		—		—		—		50,692		—		—
Swaps		85,656,633		2,784,209		2,430,844		93,409,026		3,563,775		4,067,824
Options		1,238,255		2,077		8,193		2,270,274		24,585		29,294
		219,072,146		4,078,337		3,685,780		203,350,128		6,145,858		6,451,837
Stock and index
Futures 1		27,424		—		—		—		—		—
Options		72		33		—		355		33		—
		27,496		33		—		355		33		—
Others		94,300		—		805		94,300		—		450
		455,671,803		4,892,633		4,367,529		439,210,547		7,529,366		7,166,578

88

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

¹  Gains or losses arising from daily mark-to-market futures are reflected in the margin accounts.

²  Notional amounts of W 188,969,696 million and W 184,565,603 million as of December 31, 2023 and 2022, respectively, were traded through the central clearing house.

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument		1,802,610		3,370,605		1,559,872		349,482		267,778		2,304,270		9,654,617
Average price condition (%), (SOFR and CD)		4.77		4.86		5.18		5.23		5.73		4.93		4.95
Cash flow hedge
Nominal amount of the hedging instrument		1,028,940		—		386,820		820,058		—		—		2,235,818
Average price condition (%), (SOFR and CD)		4.12		—		5.37		6.33		—		—		5.15

	December 31, 2022
(In millions of Korean won)	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument		5,064,802		1,128,620		2,660,326		1,862,039		426,551		2,147,845		13,290,183
Average price condition (%), (SOFR, CD and LIBOR)		4.17		4.52		4.64		4.56		4.36		4.64		4.43
Cash flow hedge
Nominal amount of the hedging instrument		843,555		226,730		—		—		806,003		—		1,876,288
Average price condition (%), (SOFR, CD and LIBOR)		4.64		4.06		—		—		5.10		—		4.77

89

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

9.3 Fair Value Hedge

9.3.1 Details of fair value hedged items as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

		December 31, 2023										2023
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair value
(In millions of Korean won)		Assets		Liabilities		Assets			Liabilities
Interest rate	Debt securities in Korean won		1,975,442		—		(50,746	)		—			49,323
	Debt securities in foreign currencies		2,585,073		—		(111,902	)		—			74,080
	Deposits in Korean won		—		49,985		—			(15	)		15
	Deposits in foreign currencies		—		32,015		—			(6,667	)		(1,924	)
	Debentures in Korean won		—		5,678,927		—			(141,073	)		(94,418	)
	Debentures in foreign currencies		—		1,310,952		—			(68,706	)		(27,159	)
			4,560,515		7,071,879		(162,648	)		(216,461	)		(83	)
		December 31, 2022										2022
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair value
(In millions of Korean won)		Assets		Liabilities		Assets			Liabilities
Interest rate	Debt securities in Korean won		2,467,171		—		(107,444	)		—			(86,757	)
	Debt securities in foreign currencies		3,142,972		—		(232,085	)		—			(215,184	)
	Deposits in foreign currencies		—		29,429		—			(8,591	)		6,976
	Debentures in Korean won		—		5,690,371		—			(249,629	)		171,841
	Debentures in foreign currencies		—		1,196,781		—			(95,865	)		123,817
			5,610,143		6,916,581		(339,529	)		(354,085	)		693

9.3.2 Details of derivative instruments designated as fair value hedge as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

	December 31, 2023						2023
	Notional amount		Carrying amount				Changes in fair value
(In millions of Korean won)			Assets		Liabilities
Interest rate Swaps		9,654,617		111,359		75,776		(15,927	)
	December 31, 2022						2022
	Notional amount		Carrying amount				Changes in fair value
(In millions of Korean won)			Assets		Liabilities
Interest rate Swaps		13,290,183		186,258		104,856		(1,245	)

90

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

9.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Interest rate		6,513		(552	)

9.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Gains and Losses on hedging instruments		6,597			28,171
Gains on hedged items attributable to the hedged risk		(5,846	)		(28,752	)
		751			(581	)

9.4 Cash Flow Hedge

9.4.1 Details of cash flow hedged items as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Cash flow hedge reserve				Changes in fair value
	December 31, 2023		December 31, 2022		2023		2022
Interest rate risk		21,017		33,921		13,824		(47,251	)

9.4.2 Details of derivative instruments designated as cash flow hedges as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023						2023
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate Swaps		2,235,818		34,969		2,047		(12,455	)

(In millions of Korean won)	December 31, 2022						2022
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate Swaps		1,876,288		51,968		—		44,064

91

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

9.4.3 Gains on cash flow hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Gains on hedging instruments:		(12,455	)		44,064
Effective portion of gains on cash flow hedging instruments (recognized in other comprehensive income or loss)		(12,395	)		43,886
Ineffective portion of gains on cash flow hedging instruments (recognized in profit or loss)		(60	)		178

9.4.4 Amounts recognized in other comprehensive income and reclassified from equity to profit related to derivative instruments designated as cash flow hedges for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Other comprehensive income		(12,395	)		43,886
Reclassification to profit		(5,200	)		2,388
Income tax effect		4,691			(12,264	)
		(12,904	)		34,010

9.4.5 As of December 31, 2023, the hedged items subject to cash flow hedges are exposed to the risk of changes in cash flows until August 5, 2027.

9.5 Hedge of Net Investments in Foreign Operations

9.5.1 Details of net investments in foreign operations hedged items as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

	Foreign currency translation reserve						Changes in fair value
(In millions of Korean won)	December 31, 2023			December 31, 2022			2023		2022
Currency-related (currency risk)		(112,620	)		(95,296	)		23,362		87,853

92

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

9.5.2 Details of financial instruments designated as hedges of net investments in foreign operations as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

	December 31, 2023						2023
(In millions of Korean won)	Notional amount		Carrying amount				Changes in fair value
			Assets		Liabilities
Debentures in foreign currencies		1,418,340		—		1,418,340		(23,362	)

	December 31, 2022						2022
(In millions of Korean won)	Notional amount		Carrying amount				Changes in fair value
			Assets		Liabilities
Debentures in foreign currencies		1,361,080		—		1,361,080		(87,853	)

9.5.3 Fair value of non-derivative financial instruments designated as hedges of net investments in foreign operations as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Debentures in foreign currencies		1,302,385		1,211,215

9.5.4 Losses on net investments in foreign operations hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Losses on hedging instruments:		(23,362	)		(87,853	)
Effective portion of losses on hedge of net investments in foreign operations (recognized in other comprehensive loss)		(23,362	)		(87,853	)
Ineffective portion of losses on hedge of net investments in foreign operations (recognized in loss)		—			—

9.5.5 Effective portion of gains (losses) on net investments in foreign operations hedging instruments recognized in other comprehensive loss for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Other comprehensive loss		(23,362	)		(87,853	)
Reclassification to income		—			—
Income tax effect		6,038			22,863
		(17,324	)		(64,990	)

93

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

10. Loans Measured at Amortized Cost

10.1 Details of loans as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Loans		388,568,495			377,000,459
Deferred loan origination fees and costs		445,427			436,128
Less: Allowances for credit losses		(3,609,852	)		(2,764,611	)
		385,404,070			374,671,976

10.2 Details of loans to banks as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Loans		11,569,466			9,751,737
Less: Allowances for credit losses		(20,429	)		(1,951	)
		11,549,037			9,749,786

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Retail			Corporate			Credit card			Total
Loans in Korean won		167,179,509			173,672,974			—			340,852,483
Loans in foreign currencies		3,845,439			24,809,381			—			28,654,820
Domestic import usance bills		—			3,398,981			—			3,398,981
Off-shore funding loans		—			507,683			—			507,683
Call loans		—			269,198			—			269,198
Bills bought in Korean won		—			1,861			—			1,861
Bills bought in foreign currencies		—			1,276,579			—			1,276,579
Guarantee payments under acceptances and guarantees		—			20,085			—			20,085
Credit card receivables in foreign currencies		—			—			38,198			38,198
Bonds purchased under repurchase agreements		—			2,208,673			—			2,208,673
Privately placed bonds		—			215,895			—			215,895
		171,024,948			206,381,310			38,198			377,444,456
Proportion (%)		45.31			54.68			0.01			100.00
Less: Allowances for credit losses		(851,186	)		(2,724,327	)		(13,910	)		(3,589,423	)
		170,173,762			203,656,983			24,288			373,855,033

94

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Retail			Corporate			Credit card			Total
Loans in Korean won		166,731,575			161,671,964			—			328,403,539
Loans in foreign currencies		3,732,325			25,210,008			—			28,942,333
Domestic import usance bills		—			4,499,072			—			4,499,072
Off-shore funding loans		—			943,751			—			943,751
Call loans		—			119,066			—			119,066
Bills bought in Korean won		—			285,727			—			285,727
Bills bought in foreign currencies		—			1,780,874			—			1,780,874
Guarantee payments under acceptances and guarantees		—			18,459			—			18,459
Credit card receivables in foreign currencies		—			—			43,022			43,022
Bonds purchased under repurchase agreements		—			2,281,357			—			2,281,357
Privately placed bonds		—			367,650			—			367,650
		170,463,900			197,177,928			43,022			367,684,850
Proportion (%)		46.36			53.63			0.01			100.00
Less: Allowances for credit losses		(946,471	)		(1,800,432	)		(15,757	)		(2,762,660	)
		169,517,429			195,377,496			27,265			364,922,190

10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Increase		Decrease			Others			Ending
Deferred loan origination costs
Loans in Korean won		522,284		338,908		(327,972	)		—			533,220
Others		379		76		(349	)		—			106
		522,663		338,984		(328,321	)		—			533,326
Deferred loan origination fees
Loans in Korean won		23,720		7,882		(11,027	)		—			20,575
Loans in foreign currencies and others		62,815		6,965		(5,969	)		3,513			67,324
		86,535		14,847		(16,996	)		3,513			87,899
		436,128		324,137		(311,325	)		(3,513	)		445,427

95

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning		Increase		Decrease			Others			Ending
Deferred loan origination costs
Loans in Korean won		583,477		243,913		(305,106	)		—			522,284
Others		168		550		(343	)		4			379
		583,645		244,463		(305,449	)		4			522,663
Deferred loan origination fees
Loans in Korean won		10,076		23,067		(9,423	)		—			23,720
Loans in foreign currencies and others		51,144		45,554		(36,346	)		2,463			62,815
		61,220		68,621		(45,769	)		2,463			86,535
		522,425		175,842		(259,680	)		(2,459	)		436,128

96

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

11. Allowances for Credit Losses

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2023 and 2022, are as follows:

	2023
	Retail											Corporate											Credit card
(In millions of Korean won)	12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach		12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach		12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach
				Non-impaired			Impaired								Non-impaired			Impaired								Non-impaired			Impaired
Beginning		437,540			205,369			303,562			—		405,702			526,079			870,602			—		887			288			14,582			—
Transfer between stages:
Transfer to 12-month expected credit losses		129,241			(124,492	)		(4,749	)		—		119,215			(115,760	)		(3,455	)		—		1,467			(118	)		(1,349	)		—
Transfer to lifetime expected credit losses (non-impaired)		(108,823	)		119,741			(10,918	)		—		(117,787	)		151,624			(33,837	)		—		(18	)		2,416			(2,398	)		—
Transfer to lifetime expected credit losses (impaired)		(2,756	)		(60,993	)		63,749			—		(6,706	)		(86,309	)		93,015			—		(39	)		(132	)		171			—
Write-offs		—			14			(377,430	)		—		—			9			(382,552	)		—		—			—			(3,184	)		—
Sales		(1,040	)		(506	)		(3,062	)		—		—			(315	)		(31,689	)		—		—			—			—			—
Provision (reversal) for credit losses 1, 2		(60,168	)		44,865			299,281			—		393,505			305,226			654,498			—		(1,447	)		(2,183	)		5,048			—
Others (exchange differences, etc.)		3,701			164			(1,104	)		—		194			99			3,398			—		22			39			(142	)		—
Ending 3		397,695			184,162			269,329			—		794,123			780,653			1,169,980			—		872			310			12,728			—

97

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
	Retail											Corporate											Credit card
(In millions of Korean won)	12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach		12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach		12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach
				Non-impaired			Impaired								Non-impaired			Impaired								Non-impaired			Impaired
Beginning		299,033			174,459			195,633			—		366,300			454,618			916,301			—		1,078			—			19,518			—
Transfer between stages:
Transfer to 12-month expected credit losses		122,203			(115,982	)		(6,221	)		—		127,532			(120,472	)		(7,060	)		—		5,551			—			(5,551	)		—
Transfer to lifetime expected credit losses (non-impaired)		(95,013	)		106,174			(11,161	)		—		(92,679	)		124,435			(31,756	)		—		—			—			—			—
Transfer to lifetime expected credit losses (impaired)		(1,771	)		(41,840	)		43,611			—		(10,016	)		(48,065	)		58,081			—		(34	)		—			34			—
Write-offs		—			(1	)		(257,656	)		—		—			(3	)		(582,470	)		—		—			—			(6,182	)		—
Sales		(805	)		(137	)		(289	)		—		(103	)		(145	)		(66,974	)		—		—			—			—			—
Provision (reversal) for credit losses 1, 2		115,830			83,346			355,717			—		6,911			114,300			666,251			—		(5,278	)		309			8,520			—
Others (exchange differences, etc.)		(1,937	)		(650	)		(16,072	)		—		7,757			1,411			(81,771	)		—		(430	)		(21	)		(1,757	)		—
Ending		437,540			205,369			303,562			—		405,702			526,079			870,602			—		887			288			14,582			—

¹ Provision (reversal) for credit losses in the consolidated statements of comprehensive income also includes provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note 22.2), provision (reversal) for credit losses of financial guarantee contracts (Note 22.4), provision (reversal) for credit losses of other financial assets (Note 18.2), provision (reversal) for credit losses of due from financial institutions (Note 7.3) and provision (reversal) for credit losses of debt securities (Note 12.5).

² Includes W 151,794 million and W 267,928 million of collections from written-off loans for the years ended December 31, 2023 and 2022, respectively.

³ Includes additional allowances of W 214,276 million for the borrowers which are highly affected by the termination of COVID-19 financial support as of December 31, 2023.

The amount of financial assets that the group wrote off during the current year but is continuing recovery activities is W 763,143 million. The Group manages the written-off loans for which their legal extinctive prescriptions have not been completed, and that have not been collected. The balances of those loans are W 8,056,767 million and W 7,870,811 million as of December 31, 2023 and 2022, respectively.

98

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

11.2 Changes in gross carrying amount of loans for the years ended December 31, 2023 and 2022, are as follows:

	2023
	12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach
(In millions of Korean won)				Non-impaired			Impaired
Beginning		348,132,282			26,670,823			2,633,482			—
Transfer between stages:
Transfer to 12-month expected credit losses		31,902,059			(31,589,214	)		(312,845	)		—
Transfer to lifetime expected credit losses (non-impaired)		(39,863,618	)		40,497,104			(633,486	)		—
Transfer to lifetime expected credit losses (impaired)		(1,221,127	)		(2,464,258	)		3,685,385			—
Write-offs		—			23			(763,166	)		—
Sales		(2,898,483	)		(39,365	)		(410,460	)		—
Net increase (decrease) (execution, repayment, and others)		17,855,633			(1,359,550	)		(807,297	)		—
Ending		353,906,746			31,715,563			3,391,613			—

	2022
	12-month expected credit losses			Lifetime expected credit losses						Credit impaired approach
(In millions of Korean won)				Non-impaired			Impaired
Beginning		334,424,618			26,384,843			2,762,180			—
Transfer between stages:
Transfer to 12-month expected credit losses		33,450,163			(33,290,588	)		(159,575	)		—
Transfer to lifetime expected credit losses (non-impaired)		(36,749,481	)		37,156,737			(407,256	)		—
Transfer to lifetime expected credit losses (impaired)		(923,910	)		(1,312,907	)		2,236,817			—
Write-offs		—			(4	)		(846,308	)		—
Sales		(2,459,517	)		(14,788	)		(228,857	)		—
Net increase (decrease) (execution, repayment, and others)		20,390,409			(2,252,470	)		(723,519	)		—
Ending		348,132,282			26,670,823			2,633,482			—

99

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

12. Financial Assets at Fair Value through Profit or Loss and Financial Investments

12.1 Details of financial assets at fair value through profit or loss and financial investments as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Financial assets at fair value through profit or loss
Debt securities:
Government and public bonds		5,542,619			4,548,399
Financial bonds		4,793,951			7,285,980
Corporate bonds		1,750,530			1,170,321
Asset-backed securities		68,093			164,543
Beneficiary certificates		4,605,932			5,728,058
Investment funds		769,382			528,795
Derivative-linked securities		—			55,624
Other debt securities		1,667,101			1,274,859
Equity securities:
Stocks		225,873			217,748
Loans:
Privately placed bonds		150,208			—
Other loans		33,282			149,075
Others:
Financial instruments indexed to the price of gold		93,743			90,006
		19,700,714			21,213,408
Financial investments
Financial assets at fair value through other comprehensive income
Debt securities:
Government and public bonds		9,155,459			8,148,852
Financial bonds		16,369,804			17,113,728
Corporate bonds		11,287,148			12,606,868
Asset-backed securities		821,829			237,605
Other debt securities		—			256,779
Equity securities:
Stocks		1,407,933			1,402,967
Equity investments		8,019			15,555
Loans:
Privately placed bonds		311,610			231,021
		39,361,802			40,013,375
Financial assets at amortized cost
Debt securities:
Government and public bonds		6,502,633			6,520,633
Financial bonds		13,589,961			10,936,138
Corporate bonds		9,368,943			10,026,039
Asset-backed securities		9,398,498			7,395,434
Other debt securities		147,847			363,984
Less: Allowances for credit losses		(18,836	)		(5,434	)
		38,989,046			35,236,794
		78,350,848			75,250,169

100

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

12.2 Dividend income from equity securities designated at fair value through other comprehensive income for the years ended December 31, 2023 and 2022, are as follows:

	2023				2022
(In millions of Korean won)	From the equity securities derecognized		From the equity securities held		From the equity securities derecognized		From the equity securities held
Listed Stocks		—		1,999		—		409
Unlisted Stocks		—		2,537		—		9,526
		—		4,536		—		9,935

12.3 Derecognized equity securities measured at fair value through other comprehensive income for the years ended December 31, 2023 and 2022, are as follows:

	2023					2022
(In millions of Korean won)	Disposal price		Accumulated other comprehensive income as of disposal date			Disposal price		Accumulated other comprehensive loss as of disposal date
Listed Stocks		36,595		36,719			425,736		335,203
Unlisted Stocks		282		(738	)		—		—
		36,877		35,981			425,736		335,203

12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Provision		Reversal			Total
Financial assets at fair value through other comprehensive income		11,191		(1,975	)		9,216
Securities measured at amortized cost		14,893		(1,475	)		13,418
		26,084		(3,450	)		22,634

	2022
(In millions of Korean won)	Provision		Reversal			Total
Financial assets at fair value through other comprehensive income		2,007		(3,544	)		(1,537	)
Securities measured at amortized cost		2,808		(670	)		2,138
		4,815		(4,214	)		601

101

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

12.5 Changes in allowances for credit losses of financial investments for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	12-month expected credit losses			Lifetime expected credit losses
				Non-impaired			Impaired
Beginning		12,093			270			—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—			—
Transfer to lifetime expected credit losses		—			—			—
Sales		(532	)		(270	)		—
Provision (reversal) for credit losses		22,634			—			—
Others (exchange differences, etc.)		(378	)		—			—
Ending		33,817			—			—

	2022
(In millions of Korean won)	12-month expected credit losses			Lifetime expected credit losses
				Non-impaired			Impaired
Beginning		12,169			27			—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—			—
Transfer to lifetime expected credit losses		—			—			—
Sales		(612	)		(20	)		—
Provision for credit losses		338			263			—
Others (exchange differences, etc.)		198			—			—
Ending		12,093			270			—

102

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13. Investments in Associates

13.1 Details of investments in associates as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Korea Credit Bureau Co., Ltd. 1		9.00		4,500		5,617			5,617	Credit information	Korea
Incheon Bridge Co., Ltd. 1		14.99		9,159		(12,640	)		—	Operation of highways and related facilities	Korea
KB SPROTT Renewable Private Equity Fund No.1		29.63		13,886		12,588			12,573	Investment finance	Korea
KB Digital Innovation & Growth New Technology Business Investment Fund		45.00		4,500		3,524			3,523	Discovery of and investment in promising FinTech-business venture	Korea
KB Digital Platform Fund		46.67		50,400		47,947			47,947	Digital platform and Tech-based investment in promising companies	Korea
KB Prime Digital Platform Fund		43.33		7,150		6,916			6,916	Digital platform and Tech-based investment in promising companies	Korea
Future Planning KB Start-up Creation Fund		50.00		1,500		7,814			7,814	Investment finance	Korea
KB High-tech Company Investment Fund		50.00		1,500		9,424			9,424	Investment finance	Korea
Aju Good Technology Venture Fund		38.46		344		14,297			14,296	Investment finance	Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund		33.33		1,800		3,031			3,031	Investment finance	Korea
KB-TS Technology Venture Private Equity Fund		30.00		4,860		6,628			6,628	Investment finance	Korea
KB Intellectual Property Fund No.2		37.50		15,000		16,936			16,936	Investment finance	Korea
KB Digital Innovation Investment Fund Limited Partnership		25.74		32,655		34,721			34,721	Investment finance	Korea
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund 2		21.28		—		3,072			3,072	Investment finance	Korea
KB Global Platform Fund		22.73		43,850		43,755			43,850	Investment finance	Korea
KB Global Platform Fund No.2		20.00		12,000		11,172			11,172	Investment finance	Korea
KB-UTC Inno-Tech Venture Fund		29.53		12,750		10,454			12,750	Investment finance	Korea
WJ Private Equity Fund No.1		26.95		10,000		9,483			9,483	Investment finance	Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		28.57		9,700		9,566			9,700	Investment finance	Korea
KB Smart Scale Up Fund		25.00		50,000		52,905			52,905	Investment finance	Korea
KB Bio Global Expansion Private Equity Fund No.1		26.32		10,000		10,597			10,597	Investment finance	Korea
KB-KTB Technology Venture Fund		27.27		12,000		11,459			11,459	Investment finance	Korea
KB-SOLIDUS Healthcare Investment Fund		30.30		14,300		13,498			13,498	Investment finance	Korea

103

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2023
(In millions of Korean won)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
KB New Deal Innovation Fund		20.00		20,000		19,372			19,372	Investment finance	Korea
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		20.43		27,034		26,969			26,969	Investment finance	Korea
All Together Korea Fund No.2 3		99.99		10,000		10,541			10,541	Asset management	Korea
Shinla Construction Co., Ltd. 4		20.17		—		(551	)		—	Specialty construction	Korea
Terra Corporation 4		24.06		—		2			—	Manufacture of fabricated and processed metal products	Korea
MJT&I Corp. 4		22.89		—		(880	)		—	Wholesale of other merchandise	Korea
Jungdong Steel Co., Ltd. 4		42.65		—		(433	)		—	Wholesale of primary metal	Korea
DSMETAL Co., Ltd. 4		26.49		—		(101	)		—	Manufacture of metal door, windows, shutter and relevant products	Korea
Shinhwa Underwear Co., Ltd. 4		26.05		—		(96	)		144	Manufacture of underwear and sleepwear	Korea
Jaeyang Industry Co., Ltd. 4		20.86		—		(552	)		—	Manufacture of luggage and other protective cases	Korea
Kendae Co., Ltd. 4		41.01		—		(252	)		98	Screen printing	Korea
Jinseung Tech Co., Ltd. 4		30.04		—		(33	)		158	Manufacture of other general-purpose machinery	Korea
Dongjo Co., Ltd. 4		29.29		—		142			—	Wholesale of agricultural and forestry machinery and equipment	Korea
Korea NM Tech Co., Ltd. 4		22.41		—		546			—	Manufacture of motor vehicles, trailers and semitrailers	Korea
Jungdo Co., Ltd. 4		25.34		—		1,231			—	Office, commercial and institutional building construction	Korea
Dae-A Leisure Co., Ltd. 4		49.36		—		436			—	Earth works	Korea
Chongil Machine & Tools Co., Ltd. 4		20.40		—		(178	)		—	Wholesale of machinery and equipment	Korea
Imt Technology Co., Ltd. 4		25.29		—		30			12	Computer Peripherals Distribution	Korea
Iwon Alloy Co., Ltd. 4		23.20		—		376			—	Manufacture of smelting, refining and alloys	Korea
Computerlife Co., Ltd. 4		25.41		—		(124	)		56	Publishing of magazines and periodicals (publishing industry)	Korea
Skydigital Inc. 4		20.40		—		(338	)		—	Manufacture of multimedia and video devices	Korea
Jo Yang Industrial Co., Ltd. 4		22.77		—		(72	)		—	Manufacture of special glass	Korea
Il-Kwang Electronic Materials Co., Ltd. 4		29.06		—		(555	)		—	Manufacture of electronic parts	Korea
So-Myung Recycling Co., Ltd. 4		20.23		—		243			59	Manufacture of nonferrous metal	Korea
PIP System Co., Ltd. 4		20.72		—		27			—	Print equipment	Korea
Gwang Myung Paper Co., Ltd. 4		20.54		—		84			—	Wholesale of luggage and other protective cases	Korea

104

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2023
(In millions of Korean won)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
D-Partner 4		20.94		—		844			397	Backlight film	Korea
Chunsung-meat Co., Ltd. 4		26.74		—		237			—	Wholesale of meat	Korea
DS Fashionbiz Co., Ltd. 4		47.64		—		16			18	Manufacture of textiles	Korea
ALTSCS Co., Ltd. 4		47.11		—		14			—	Manufacture of motor vehicle parts	Korea
E-Won Chemical Co., Ltd. 4		24.30		—		31			—	Manufacture, wholesale and retail trade of feeds	Korea
TMAPMOBILITY CO.,LTD. 1		8.24		200,000		51,866			183,572	Application software development and supply	Korea
TKDS CO., LTD 4		20.03		—		63			—	Manufacture of video and other imaging equipment	Korea
SANDLE FARMING ASSOCIATION 4		23.04		—		309			3	Manufacture of edible refined oil and processed oil	Korea
TAEYEONG PRECISION IND. CO.,LTD. 4		28.51		—		4			—	Manufacture of mould and metallic patterns	Korea
Seokwang T&I Co., Ltd 4		33.64		—		705			—	Brokerage, agency, and related services of cargo	Korea
MJK TRADING CO.,LTD. 4		25.05		—		(62	)		—	Manufacture of knitting cloth	Korea
ONIGYU CO.,LTD. 4		32.45		—		33			—	Brokerage of food and tobacco	Korea
DNGV CO.,LTD. 4		22.39		—		411			—	Manufacture of automotive engine	Korea
Alpa information & Communication Co.,Ltd. 4		22.91		—		93			—	Manufacture of computers and peripheral equipment	Korea
JC TECHNO CO.,LTD.4		29.32		—		737			—	Manufacture of industrial electrical and electronic equipment	Korea
				578,888		443,899			589,311

105

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Korea Credit Bureau Co., Ltd. 1		9.00		4,500		4,959			4,959	Credit information	Korea
Incheon Bridge Co., Ltd. 1		14.99		9,159		(15,963	)		—	Operation of highways and related facilities	Korea
KB SPROTT Renewable Private Equity Fund No.1		30.00		14,361		13,165			13,165	Investment finance	Korea
KB Digital Innovation & Growth New Technology Business Investment Fund		45.00		4,500		4,038			4,038	Discovery of and investment in promising FinTech-business venture	Korea
KB Digital Platform Fund		46.67		26,600		25,357			25,357	Digital platform and Tech-based investment in promising companies	Korea
KB Prime Digital Platform Fund		43.33		2,600		2,563			2,563	Digital platform and Tech-based investment in promising companies	Korea
Future Planning KB Start-up Creation Fund		50.00		2,200		9,793			9,793	Investment finance	Korea
KB High-tech Company Investment Fund		50.00		1,500		10,662			10,662	Investment finance	Korea
Aju Good Technology Venture Fund		38.47		8,144		19,840			19,836	Investment finance	Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund		33.33		1,800		2,989			2,989	Investment finance	Korea
KB-TS Technology Venture Private Equity Fund		30.00		5,220		7,390			7,390	Investment finance	Korea
KB Intellectual Property Fund No.2		37.50		15,000		15,204			15,204	Investment finance	Korea
KB Digital Innovation Investment Fund Limited Partnership		25.74		35,000		34,693			35,000	Investment finance	Korea
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund 2		21.28		6,600		8,901			8,901	Investment finance	Korea
KB Global Platform Fund		22.73		43,850		50,366			50,366	Investment finance	Korea
KB-UTC Inno-Tech Venture Fund		29.53		14,250		12,786			12,786	Investment finance	Korea
WJ Private Equity Fund No.1		26.95		10,000		9,542			9,542	Investment finance	Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		28.57		10,000		8,380			8,380	Investment finance	Korea
KB Smart Scale Up Fund		25.00		43,000		40,288			40,288	Investment finance	Korea
KB Scale Up Fund II		20.00		4,500		4,438			4,438	Investment finance	Korea
KB Bio Global Expansion Private Equity Fund No.1		26.32		10,000		10,519			10,519	Investment finance	Korea
KB-KTB Technology Venture Fund		27.27		9,000		8,709			8,709	Investment finance	Korea
KB-SOLIDUS Healthcare Investment Fund		29.41		6,600		6,217			6,217	Investment finance	Korea

106

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
KB New Deal Innovation Fund		20.00		13,600		13,241			13,241	Investment finance	Korea
All Together Korea Fund No.2 3		99.99		10,000		10,244			10,244	Asset management	Korea
Shinla Construction Co., Ltd. 4		20.17		—		(551	)		—	Specialty construction	Korea
Terra Corporation 4		24.06		—		2			—	Manufacture of fabricated and processed metal products	Korea
MJT&I Corp. 4		22.89		—		(882	)		—	Wholesale of other merchandise	Korea
Jungdong Steel Co., Ltd. 4		42.65		—		(433	)		—	Wholesale of primary metal	Korea
DSMETAL Co., Ltd. 4		26.49		—		(101	)		—	Manufacture of metal door, windows, shutter and relevant products	Korea
Shinhwa Underwear Co., Ltd. 4		26.05		—		(73	)		167	Manufacture of underwear and sleepwear	Korea
Jaeyang Industry Co., Ltd. 4		20.86		—		(552	)		—	Manufacture of luggage and other protective cases	Korea
Kendae Co., Ltd. 4		41.01		—		(252	)		98	Screen printing	Korea
Jinseung Tech Co., Ltd. 4		30.04		—		(191	)		—	Manufacture of other general-purpose machinery	Korea
Dongjo Co., Ltd. 4		29.29		—		(5	)		—	Wholesale of agricultural and forestry machinery and equipment	Korea
Korea NM Tech Co., Ltd. 4		22.41		—		549			—	Manufacture of motor vehicles, trailers and semitrailers	Korea
Jungdo Co., Ltd. 4		25.34		—		1,112			—	Office, commercial and institutional building construction	Korea
Dae-A Leisure Co., Ltd. 4		49.36		—		523			—	Earth works	Korea
Chongil Machine & Tools Co., Ltd. 4		20.40		—		(178	)		—	Wholesale of machinery and equipment	Korea
Imt Technology Co., Ltd. 4		25.29		—		34			15	Computer Peripherals Distribution	Korea
Iwon Alloy Co., Ltd. 4		23.20		—		374			—	Manufacture of smelting, refining and alloys	Korea
Computerlife Co., Ltd. 4		25.41		—		(130	)		50	Publishing of magazines and periodicals (publishing industry)	Korea
Skydigital Inc. 4		20.40		—		(318	)		—	Manufacture of multimedia and video devices	Korea
Jo Yang Industrial Co., Ltd. 4		22.77		—		(36	)		—	Manufacture of special glass	Korea
Il-Kwang Electronic Materials Co., Ltd. 4		29.06		—		(555	)		—	Manufacture of electronic parts	Korea
So-Myung Recycling Co., Ltd. 4		20.23		—		246			61	Manufacture of nonferrous metal	Korea
IDTECK Co., Ltd. 4		20.54		—		42			164	Other manufacturing of wireless telecommunications equipment	Korea
PIP System Co., Ltd. 4		20.72		—		27			—	Print equipment	Korea

107

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Gwang Myung Paper Co., Ltd. 4		20.54		—		84			—	Wholesale of luggage and other protective cases	Korea
D-Partner 4		20.94		—		832			384	Backlight film	Korea
Inter Shipping Co., Ltd. 4		42.09		—		(1,038	)		—	Sea freight water transport	Korea
Chunsung-meat Co., Ltd. 4		26.74		—		246			—	Wholesale of meat	Korea
DS Fashionbiz Co., Ltd. 4		47.64		—		(1	)		1	Manufacture of textiles	Korea
ALTSCS Co., Ltd. 4		47.11		—		408			—	Manufacture of motor vehicle parts	Korea
E-Won Chemical Co., Ltd. 4		24.30		—		35			—	Manufacture, wholesale and retail trade of feeds	Korea
TMAPMOBILITY CO.,LTD. 1		8.25		200,000		61,518			194,454	Application software development and supply	Korea
TKDS CO., LTD 4		20.03		—		171			—	Manufacture of video and other imaging equipment	Korea
SANDLE FARMING ASSOCIATION 4		23.04		—		306			—	Manufacture of edible refined oil and processed oil	Korea
				511,984		379,534			529,981

¹ As of December 31, 2023 and 2022, the Group can exercise significant influence on the decision-making processes of the associate’s financial and business policies through participation in governing bodies.

²  As of December 31, 2023, the Group has fully redeemed its investment stake but retains rights over the remaining stake due to incomplete liquidation.

³  As of December 31, 2023 and 2022, the Group is unable to exercise control over the partnership as the limited liability partner.

⁴ As of December 31, 2023, the Group participates in the investment management committee but cannot exercise control.

Although the Group holds 20% or more of the ownership in several investment trusts including KB Hanbando BTL Private Special Asset Fund No.1, those investment trusts are excluded from associates because the Group’s influence on those trusts is limited according to the trust agreement. In addition, the Group holds 20% or more of its ownership in KLB Securities Co., Ltd. and three other companies, but those companies are excluded from associates, because the Group’s influence on those companies is limited due to the status of those companies such as bankruptcy and rehabilitation proceedings.

108

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2023 and 2022, are as follows:

	December 31, 2023 *
(In millions of Korean won)	Total assets		Total liabilities		Paid-in capital		Equity			Share of net asset amount			Unrealized gains (losses) and others			Carrying amount
Korea Credit Bureau Co., Ltd.		131,164		68,756		10,000		62,408			5,617			—			5,617
Incheon Bridge Co., Ltd.		518,133		602,458		61,096		(84,325	)		(12,640	)		12,640			—
KB SPROTT Renewable Private Equity Fund No.1		42,868		378		46,868		42,490			12,588			(15	)		12,573
KB Digital Innovation & Growth New Technology Business Investment Fund		7,998		168		10,000		7,830			3,524			(1	)		3,523
KB Digital Platform Fund		103,502		759		108,000		102,743			47,947			—			47,947
KB Prime Digital Platform Fund		16,521		560		16,500		15,961			6,916			—			6,916
Future Planning KB Start-up Creation Fund		18,095		2,466		3,000		15,629			7,814			—			7,814
KB High-tech Company Investment Fund		22,826		3,979		3,000		18,847			9,424			—			9,424
Aju Good Technology Venture Fund		37,568		394		900		37,174			14,297			(1	)		14,296
KB-KDBC Pre-IPO New Technology Business Investment Fund		9,095		1		5,400		9,094			3,031			—			3,031
KB-TS Technology Venture Private Equity Fund		28,233		6,140		16,200		22,093			6,628			—			6,628
KB Intellectual Property Fund No.2		47,461		2,298		40,000		45,163			16,936			—			16,936
KB Digital Innovation Investment Fund Limited Partnership		137,175		2,257		126,888		134,918			34,721			—			34,721
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		14,441		—		—		14,441			3,073			(1	)		3,072
KB Global Platform Fund		197,354		4,831		192,940		192,523			43,755			95			43,850
KB Global Platform Fund No.2		58,384		2,523		60,000		55,861			11,172			—			11,172
KB-UTC Inno-Tech Venture Fund		35,978		572		43,180		35,406			10,454			2,296			12,750
WJ Private Equity Fund No.1		35,342		160		37,100		35,182			9,483			—			9,483
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		33,611		129		33,950		33,482			9,566			134			9,700
KB Smart Scale Up Fund		213,141		1,523		200,000		211,618			52,905			—			52,905
KB Bio Global Expansion Private Equity Fund No.1		40,373		105		38,000		40,268			10,597			—			10,597
KB-KTB Technology Venture Fund		42,263		245		44,000		42,018			11,459			—			11,459
KB-SOLIDUS Healthcare Investment Fund		44,875		331		47,190		44,544			13,498			—			13,498
KB New Deal Innovation Fund		100,599		3,739		100,000		96,860			19,372			—			19,372
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		132,025		11		132,331		132,014			26,969			—			26,969
All Together Korea Fund No.2		10,543		1		10,001		10,542			10,541			—			10,541
TMAPMOBILITY CO.,LTD.		849,894		220,825		8,680		629,069			51,866			131,706			183,572

109

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2023 *
(In millions of Korean won)	Operating revenue		Net profit (loss)			Other comprehensive income			Total comprehensive income (loss)			Dividends
Korea Credit Bureau Co., Ltd.		163,707		8,012			—			8,012			90
Incheon Bridge Co., Ltd.		128,860		22,110			—			22,110			—
KB SPROTT Renewable Private Equity Fund No.1		26		(689	)		—			(689	)		—
KB Digital Innovation & Growth New Technology Business Investment Fund		2		(1,143	)		—			(1,143	)		—
KB Digital Platform Fund		649		(2,593	)		—			(2,593	)		—
KB Prime Digital Platform Fund		80		(453	)		—			(453	)		—
Future Planning KB Start-up Creation Fund		5,961		3,243			—			3,243			2,900
KB High-tech Company Investment Fund		6,560		3,324			—			3,324			2,900
Aju Good Technology Venture Fund		20,386		15,176			—			15,176			3,577
KB-KDBC Pre-IPO New Technology Business Investment Fund		—		(12	)		—			(12	)		—
KB-TS Technology Venture Private Equity Fund		836		362			—			362			—
KB Intellectual Property Fund No.2		6,837		4,619			—			4,619			—
KB Digital Innovation Investment Fund Limited Partnership		27,782		9,221			—			9,221			—
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		7,610		2,302			—			2,302			—
KB Global Platform Fund		7,880		(29,086	)		—			(29,086	)		—
KB Global Platform Fund No.2		102		(4,139	)		—			(4,139	)		—
KB-UTC Inno-Tech Venture Fund		758		(5,024	)		2,208			(2,816	)		—
WJ Private Equity Fund No.1		430		(218	)		—			(218	)		—
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		343		26			5,176			5,202			—
KB Smart Scale Up Fund		30,569		22,468			—			22,468			—
KB Bio Global Expansion Private Equity Fund No.1		713		294			—			294			—
KB-KTB Technology Venture Fund		166		(917	)		—			(917	)		—
KB-SOLIDUS Healthcare Investment Fund		16		(1,344	)		—			(1,344	)		—
KB New Deal Innovation Fund		576		(1,345	)		—			(1,345	)		—
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		—		(225	)		(93	)		(318	)		—
All Together Korea Fund No.2		303		297			—			297			—
TMAPMOBILITY CO.,LTD.		294,015		(100,433	)		—			(100,433	)		—

110

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022 *
(In millions of Korean won)	Total assets		Total liabilities		Paid-in capital		Equity			Share of net asset amount			Unrealized gains (losses) and others			Carrying amount
Korea Credit Bureau Co., Ltd.		155,165		100,065		10,000		55,100			4,959			—			4,959
Incheon Bridge Co., Ltd.		554,738		661,227		61,096		(106,489	)		(15,963	)		15,963			—
KB SPROTT Renewable Private Equity Fund No.1		44,880		996		47,868		43,884			13,165			—			13,165
KB Digital Innovation & Growth New Technology Business Investment Fund		9,060		87		10,000		8,973			4,038			—			4,038
KB Digital Platform Fund		55,091		755		57,000		54,336			25,357			—			25,357
KB Prime Digital Platform Fund		6,022		108		6,000		5,914			2,563			—			2,563
Future Planning KB Start-up Creation Fund		21,965		2,379		4,400		19,586			9,793			—			9,793
KB High-tech Company Investment Fund		24,480		3,157		3,000		21,323			10,662			—			10,662
Aju Good Technology Venture Fund		58,749		7,171		21,180		51,578			19,840			(4	)		19,836
KB-KDBC Pre-IPO New Technology Business Investment Fund		9,226		260		5,400		8,966			2,989			—			2,989
KB-TS Technology Venture Private Equity Fund		30,347		5,715		17,400		24,632			7,390			—			7,390
KB Intellectual Property Fund No.2		42,713		2,169		40,000		40,544			15,204			—			15,204
KB Digital Innovation Investment Fund Limited Partnership		137,321		2,512		136,000		134,809			34,693			307			35,000
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		42,538		705		31,020		41,833			8,901			—			8,901
KB Global Platform Fund		224,388		2,779		192,940		221,609			50,366			—			50,366
KB-UTC Inno-Tech Venture Fund		44,111		809		48,260		43,302			12,786			—			12,786
WJ Private Equity Fund No.1		35,561		161		37,100		35,400			9,542			—			9,542
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		29,462		132		35,000		29,330			8,380			—			8,380
KB Smart Scale Up Fund		161,926		776		172,000		161,150			40,288			—			40,288
KB Scale Up Fund II		22,571		379		22,500		22,192			4,438			—			4,438
KB Bio Global Expansion Private Equity Fund No.1		40,080		106		38,000		39,974			10,519			—			10,519
KB-KTB Technology Venture Fund		32,214		280		33,000		31,934			8,709			—			8,709
KB-SOLIDUS Healthcare Investment Fund		21,483		345		22,440		21,138			6,217			—			6,217
KB New Deal Innovation Fund		68,245		2,039		68,000		66,206			13,241			—			13,241
All Together Korea Fund No.2		10,246		1		10,001		10,245			10,244			—			10,244
TMAPMOBILITY CO.,LTD.		920,597		174,696		8,677		745,901			61,518			132,936			194,454

111

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates as of and for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022 *
(In millions of Korean won)	Operating revenue		Net profit (loss)			Other comprehensive income			Total comprehensive income (loss)			Dividends
Korea Credit Bureau Co., Ltd.		144,907		13,809			—			13,809			—
Incheon Bridge Co., Ltd.		130,456		23,754			—			23,754			—
KB SPROTT Renewable Private Equity Fund No.1		—		(1,020	)		—			(1,020	)		—
KB Digital Innovation & Growth New Technology Business Investment Fund		294		(134	)		—			(134	)		—
KB Digital Platform Fund		264		(2,663	)		—			(2,663	)		—
KB Prime Digital Platform Fund		22		(86	)		—			(86	)		—
Future Planning KB Start-up Creation Fund		4,780		2,436			—			2,436			—
KB High-tech Company Investment Fund		9,149		2,937			—			2,937			1,300
Aju Good Technology Venture Fund		22,381		6,018			—			6,018			1,200
KB-KDBC Pre-IPO New Technology Business Investment Fund		1,699		1,429			—			1,429			—
KB-TS Technology Venture Private Equity Fund		1,043		(2,775	)		—			(2,775	)		—
KB Intellectual Property Fund No.2		6,856		3,645			—			3,645			—
KB Digital Innovation Investment Fund Limited Partnership		21,176		1,703			—			1,703			—
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		11,851		1,541			—			1,541			—
KB Global Platform Fund		25,967		(6,293	)		—			(6,293	)		—
KB-UTC Inno-Tech Venture Fund		—		(905	)		(1,647	)		(2,552	)		—
WJ Private Equity Fund No.1		430		(229	)		—			(229	)		—
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		7		(4,468	)		299			(4,169	)		—
KB Smart Scale Up Fund		2,506		(11,719	)		—			(11,719	)		—
KB Scale Up Fund II		71		(308	)		—			(308	)		—
KB Bio Global Expansion Private Equity Fund No.1		2,465		2,057			—			2,057			—
KB-KTB Technology Venture Fund		134		(973	)		—			(973	)		—
KB-SOLIDUS Healthcare Investment Fund		14		(1,302	)		—			(1,302	)		—
KB New Deal Innovation Fund		327		(1,748	)		—			(1,748	)		—
All Together Korea Fund No.2		179		173			—			173			—
TMAPMOBILITY CO.,LTD.		139,793		(132,476	)		—			(132,476	)		—

* The condensed financial information of the associates is adjusted to reflect adjustments, such as fair value adjustments recognized at the time of acquisition and adjustments for differences in accounting policies.

112

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other comprehen- sive income (loss)		Ending
Korea Credit Bureau Co., Ltd.		4,959		—		—			(90	)		748			—		5,617
Incheon Bridge Co., Ltd.		—		—		—			—			—			—		—
KB SPROTT Renewable Private Equity Fund No.1		13,165		—		(475	)		—			(117	)		—		12,573
KB Digital Innovation & Growth New Technology Business Investment Fund		4,038		—		—			—			(515	)		—		3,523
KB Digital Platform Fund		25,358		23,800		—			—			(1,211	)		—		47,947
KB Prime Digital Platform Fund		2,563		4,550		—			—			(197	)		—		6,916
Future Planning KB Start-up Creation Fund		9,793		—		(700	)		(2,900	)		1,621			—		7,814
KB High-tech Company Investment Fund		10,662		—		—			(2,900	)		1,662			—		9,424
Aju Good Technology Venture Fund		19,836		—		(7,800	)		(3,577	)		5,837			—		14,296
KB-KDBC Pre-IPO New Technology Business Investment Fund		2,989		—		—			—			42			—		3,031
KB-TS Technology Venture Private Equity Fund		7,390		—		(360	)		—			(402	)		—		6,628
KB Intellectual Property Fund No.2		15,204		—		—			—			1,732			—		16,936
KB Digital Innovation Investment Fund Limited Partnership		35,000		—		(2,345	)		—			2,066			—		34,721
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		8,901		—		(6,600	)		—			771			—		3,072
KB Global Platform Fund		50,366		—		—			—			(6,516	)		—		43,850
KB Global Platform Fund No.2		—		12,000		—			—			(828	)		—		11,172
KB-UTC Inno-Tech Venture Fund		12,786		—		(1,500	)		—			812			652		12,750
WJ Private Equity Fund No.1		9,542		—		—			—			(59	)		—		9,483
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		8,380		—		(300	)		—			141			1,479		9,700
KB Smart Scale Up Fund		40,288		7,000		—			—			5,617			—		52,905
KB Scale Up Fund II		4,438		—		(4,322	)		—			(116	)		—		—
KB Bio Global Expansion Private Equity Fund No.1		10,519		—		—			—			78			—		10,597
KB-KTB Technology Venture Fund		8,709		3,000		—			—			(250	)		—		11,459

113

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2023
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Dividends		Gains (losses) on equity- method accounting			Other comprehen- sive income (loss)			Ending
KB-SOLIDUS Healthcare Investment Fund		6,217		7,700		(12	)		—		(407	)		—			13,498
KB New Deal Innovation Fund		13,241		6,400		—			—		(269	)		—			19,372
KB MEZZANINE CAPITAL 4TH PRIVATE EQUITY FUND		—		29,176		(29,111	)		—		(65	)		—			—
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		—		27,034		—			—		(46	)		(19	)		26,969
All Together Korea Fund No.2		10,244		—		—			—		297			—			10,541
Shinla Construction Co., Ltd.		—		—		—			—		—			—			—
Terra Corporation		—		—		—			—		—			—			—
MJT&I Corp.		—		—		—			—		—			—			—
Jungdong Steel Co., Ltd.		—		—		—			—		—			—			—
DSMETAL Co., Ltd.		—		—		—			—		—			—			—
Shinhwa Underwear Co., Ltd.		167		—		—			—		(23	)		—			144
Jaeyang Industry Co., Ltd.		—		—		—			—		—			—			—
Kendae Co., Ltd.		98		—		—			—		—			—			98
Jinseung Tech Co., Ltd.		—		—		—			—		158			—			158
Dongjo Co., Ltd.		—		—		—			—		—			—			—
Korea NM Tech Co., Ltd.		—		—		—			—		—			—			—
Jungdo Co., Ltd.		—		—		—			—		—			—			—
Dae-A Leisure Co., Ltd.		—		—		—			—		—			—			—
Chongil Machine & Tools Co., Ltd.		—		—		—			—		—			—			—
Imt Technology Co., Ltd.		15		—		—			—		(3	)		—			12
Iwon Alloy Co., Ltd.		—		—		—			—		—			—			—
Computerlife Co., Ltd.		50		—		—			—		6			—			56
Skydigital Inc.		—		—		—			—		—			—			—
Jo Yang Industrial Co., Ltd.		—		—		—			—		—			—			—
Il-Kwang Electronic Materials Co., Ltd.		—		—		—			—		—			—			—
So-Myung Recycling Co., Ltd.		61		—		—			—		(2	)		—			59
IDTECK Co., Ltd.		164		—		(297	)		—		1,732			(1,599	)		—
PIP System Co., Ltd.		—		—		—			—		—			—			—
Gwang Myung Paper Co., Ltd.		—		—		—			—		—			—			—
D-Partner		384		—		—			—		13			—			397
Inter Shipping Co., Ltd.		—		—		—			—		—			—			—
Chunsung-meat Co., Ltd.		—		—		—			—		—			—			—
DS Fashionbiz Co., Ltd.		1		—		—			—		17			—			18
ALTSCS CO., LTD.		—		—		—			—		—			—			—
E-Won Chemical Co., Ltd.		—		—		—			—		—			—			—
TMAPMOBILITY CO.,LTD.		194,454		—		(18	)		—		(11,892	)		1,028			183,572
TKDS CO., LTD		—		—		—			—		—			—			—
SANDLE FARMING ASSOCIATION		—		—		—			—		3			—			3

114

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2023
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting		Other comprehen- sive income (loss)		Ending
TAEYEONG PRECISION IND. CO.,LTD.		—		—		—			—			—		—		—
Seokwang T&I Co., Ltd		—		—		—			—			—		—		—
MJK TRADING CO.,LTD.		—		—		—			—			—		—		—
Youngwon Corporation		—		—		—			—			—		—		—
ONIGYU CO.,LTD.		—		—		—			—			—		—		—
DNGV CO.,LTD.		—		—		—			—			—		—		—
Alpa information & Communication Co.,Ltd.		—		—		—			—			—		—		—
JC TECHNO CO.,LTD.		—		—		—			—			—		—		—
		529,982		120,660		(53,840	)		(9,467	)		435		1,541		589,311

115

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other comprehen- sive income (loss)			Ending
Korea Credit Bureau Co., Ltd.		4,497		—		—			—			462			—			4,959
Balhae Infrastructure Company		99,785		—		(102,554	)		(12,344	)		15,113			—			—
Incheon Bridge Co., Ltd.		—		—		—			—			—			—			—
KB SPROTT Renewable Private Equity Fund No.1		3,726		9,748		—			—			(309	)		—			13,165
KB Digital Innovation & Growth New Technology Business Investment Fund		4,098		—		—			—			(60	)		—			4,038
KB Digital Platform Fund		12,599		14,000		—			—			(1,242	)		—			25,357
KB Prime Digital Platform Fund		—		2,600		—			—			(37	)		—			2,563
Future Planning KB Start-up Creation Fund		10,275		—		(1,700	)		—			1,218			—			9,793
KB High-tech Company Investment Fund		10,493		—		—			(1,300	)		1,469			—			10,662
Aju Good Technology Venture Fund		22,921		—		(4,200	)		(1,200	)		2,315			—			19,836
KB-KDBC Pre-IPO New Technology Business Investment Fund		5,895		—		(2,600	)		—			(306	)		—			2,989
KB-TS Technology Venture Private Equity Fund		9,015		—		(2,430	)		—			805			—			7,390
KB Intellectual Property Fund No.2		14,588		—		—			—			616			—			15,204
KB Digital Innovation Investment Fund Limited Partnership		35,517		—		—			—			(517	)		—			35,000
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		14,834		—		(6,400	)		—			467			—			8,901
KB Global Platform Fund		49,946		8,000		(6,150	)		—			(1,430	)		—			50,366
KB-UTC Inno-Tech Venture Fund		13,982		—		—			—			(710	)		(486	)		12,786
WJ Private Equity Fund No.1		9,604		—		—			—			(62	)		—			9,542
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		9,571		—		—			—			(1,276	)		85			8,380
KB Smart Scale Up Fund		31,217		12,000		—			—			(2,929	)		—			40,288
KB Scale Up Fund II		—		4,500		—			—			(62	)		—			4,438
KB Bio Global Expansion Private Equity Fund No.1		9,978		—		—			—			541			—			10,519
KB-KTB Technology Venture Fund		2,975		6,000		—			—			(266	)		—			8,709

116

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.3 Changes in carrying amount of investments in associates for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Dividends			Gains (losses) on equity- method accounting			Other comprehen- sive income (loss)			Ending
KB-SOLIDUS Healthcare Investment Fund		600		6,000		—			—			(383	)		—			6,217
KB New Deal Innovation Fund		3,991		9,600		—			—			(350	)		—			13,241
All Together Korea Fund No.2		10,070		—		—			—			174			—			10,244
Shinla Construction Co., Ltd.		—		—		—			—			—			—			—
Terra Corporation		—		—		—			—			—			—			—
MJT&I Corp.		—		—		—			—			—			—			—
Jungdong Steel Co., Ltd.		—		—		—			—			—			—			—
DSMETAL Co., Ltd.		—		—		—			—			—			—			—
Shinhwa Underwear Co., Ltd.		198		—		—			—			(31	)		—			167
Jaeyang Industry Co., Ltd.		—		—		—			—			—			—			—
Kendae Co., Ltd.		98		—		—			—			—			—			98
Jinseung Tech Co., Ltd.		—		—		—			—			—			—			—
Dongjo Co., Ltd.		21		—		—			—			(21	)		—			—
Korea NM Tech Co., Ltd.		—		—		—			—			—			—			—
Jungdo Co., Ltd.		—		—		—			—			—			—			—
Dae-A Leisure Co., Ltd.		—		—		—			—			—			—			—
Chongil Machine & Tools Co., Ltd.		—		—		—			—			—			—			—
Imt Technology Co., Ltd.		6		—		—			—			9			—			15
Iwon Alloy Co., Ltd.		—		—		—			—			—			—			—
Carlife Co., Ltd.		13		—		(13	)		—			—			—			—
Computerlife Co., Ltd.		44		—		—			—			6			—			50
Skydigital Inc.		—		—		—			—			—			—			—
Jo Yang Industrial Co., Ltd.		—		—		—			—			—			—			—
II-Kwang Electronic Materials Co., Ltd.		—		—		—			—			—			—			—
So-Myung Recycling Co., Ltd.		31		—		—			—			30			—			61
IDTECK Co., Ltd.		—		—		—			—			65			99			164
PIP System Co., Ltd.		—		—		—			—			—			—			—
Gwang Myung Paper Co., Ltd.		—		—		—			—			—			—			—
D-Partner		369		—		—			—			15			—			384
Inter Shipping Co., Ltd.		—		—		—			—			—			—			—
Chunsung-meat Co., Ltd.		—		—		—			—			—			—			—
DS Fashionbiz Co., Ltd.		—		—		—			—			1			—			1
ALTSCS CO., LTD.		—		—		—			—			—			—			—
E-Won Chemical Co., Ltd.		—		—		—			—			—			—			—
TMAPMOBILITY CO.,LTD.		—		200,000		—			—			(5,798	)		252			194,454
TKDS CO., LTD.		—		—		—			—			—			—			—
SANDLE FARMING ASSOCIATION		—		—		—			—			—			—			—
		390,957		272,448		(126,047	)		(14,844	)		7,517			(50	)		529,981

117

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

13.4 Unrecognized share of losses of investments in associates and joint ventures due to the discontinuation of recognizing share of losses, for the years ended December 31, 2023 and 2022, and accumulated amount of unrecognized losses as of December 31, 2023 and 2022, are as follows:

	Unrecognized losses for the period						Accumulated unrecognized losses
(In millions of Korean won)	2023			2022			December 31, 2023		December 31, 2022
Incheon Bridge Co., Ltd.		(3,323	)		(3,518	)		12,640		15,963
Shinla Construction Co., Ltd.		—			—			183		183
Terra Corporation		—			—			14		14
MJT&I Corp.		(1	)		1			152		153
Jungdong Steel Co., Ltd.		—			—			487		487
DSMETAL Co., Ltd.		—			—			103		103
Jaeyang Industry Co., Ltd.		—			—			30		30
Jinseung Tech Co., Ltd.		(18	)		(15	)		—		18
Dongjo Co., Ltd.		(147	)		696			549		696
Korea NM Tech Co., Ltd.		3			3			34		31
Jungdo Co., Ltd.		(119	)		(8	)		420		539
Dae-A Leisure Co., Ltd.		88			310			599		512
Chongil Machine & Tools Co., Ltd.		—			7			71		71
Iwon Alloy Co., Ltd.		(1	)		19			18		19
Skydigital Inc.		20			3			196		176
Jo Yang Industrial Co., Ltd.		36			7			147		111
Il-Kwang Electronic Materials Co., Ltd.		—			(2	)		158		158
IDTECK Co., Ltd.		—			(144	)		—		—
Inter Shipping Co., Ltd.		—			1,022			—		1,139
Chunsung-meat co., ltd.		9			24			33		24
ALTSCS CO., LTD.		395			1			396		1
E-Won Chemical Co., Ltd.		4			—			4		—
TKDS CO., LTD.		108			—			108		—
		(2,946	)		(1,594	)		16,342		20,428

118

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

14. Property and Equipment, and Investment Properties

14.1 Property and Equipment

14.1.1 Details of property and equipment as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land		2,010,674		—			(4	)		2,010,670
Buildings		1,833,654		(629,065	)		(5,747	)		1,198,842
Leasehold improvements		948,393		(893,118	)		—			55,275
Equipment and vehicles		1,263,107		(1,148,667	)		—			114,440
Construction in-progress		26,235		—			—			26,235
Right-of-use assets		1,186,700		(823,564	)		—			363,136
		7,268,763		(3,494,414	)		(5,751	)		3,768,598

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land		2,017,250		—			(4	)		2,017,246
Buildings		1,811,998		(585,729	)		(5,747	)		1,220,522
Leasehold improvements		905,404		(852,017	)		—			53,387
Equipment and vehicles		1,318,278		(1,164,583	)		—			153,695
Construction in-progress		5,829		—			—			5,829
Right-of-use assets		1,084,579		(697,747	)		—			386,832
		7,143,338		(3,300,076	)		(5,751	)		3,837,511

14.1.2 Changes in property and equipment for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Acquisition		Transfer 2			Disposal			Depreciation			Others 3			Ending
Land		2,017,246		717		(10,510	)		(2,074	)		—			5,291			2,010,670
Buildings		1,220,522		722		22,781			(483	)		(47,199	)		2,499			1,198,842
Leasehold Improvements		53,387		247		40,610			(10	)		(41,215	)		2,256			55,275
Equipment and vehicles		153,695		57,118		1,470			(752	)		(96,496	)		(595	)		114,440
Construction in-progress		5,829		97,460		(77,008	)		—			—			(46	)		26,235
Right-of-use assets 1		386,832		602,832		319			(426,943	)		(210,123	)		10,219			363,136
		3,837,511		759,096		(22,338	)		(430,262	)		(395,033	)		19,624			3,768,598

119

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

14.1.2 Changes in property and equipment for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning		Acquisition		Transfer 2			Disposal			Depreciation			Others 3			Ending
Land		2,063,209		676		(32,963	)		(6,083	)		—			(7,593	)		2,017,246
Buildings		1,219,646		2,143		49,756			(3,818	)		(47,169	)		(36	)		1,220,522
Leasehold Improvements		63,674		2,237		33,738			(114	)		(46,425	)		277			53,387
Equipment and vehicles		168,054		89,512		528			(1,794	)		(102,763	)		158			153,695
Construction in-progress		28,226		94,259		(116,205	)		(397	)		—			(54	)		5,829
Right-of-use assets 1		391,134		555,071		255			(390,474	)		(209,247	)		40,093			386,832
		3,933,943		743,898		(64,891	)		(402,680	)		(405,604	)		32,845			3,837,511

¹  Effect of change in the lease term is reflected in acquisition and disposal based on gross amount.

²  Includes transfers with investment properties and assets held for sale.

³  Kookmin Bank Cambodia PLC of KB PRASAC BANK PLC. includes merger effects.

14.1.3 Changes in accumulated impairment losses of property and equipment for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Impairment		Reversal		Others		Ending
Accumulated impairment losses of property and equipment		(5,751	)		—		—		—		(5,751	)

	2022
(In millions of Korean won)	Beginning			Impairment		Reversal		Others		Ending
Accumulated impairment losses of property and equipment		(5,751	)		—		—		—		(5,751	)

14.2 Investment Properties

14.2.1 Details of investment properties as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated depreciation			Carrying amount
Land		232,219		—			232,219
Buildings		136,687		(21,426	)		115,261
		368,906		(21,426	)		347,480

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated depreciation			Carrying amount
Land		230,597		—			230,597
Buildings		132,879		(18,320	)		114,559
		363,476		(18,320	)		345,156

120

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

14.2.2 Valuation techniques and inputs used to measure the fair value of investment properties as of December 31, 2023, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value		Valuation techniques	Inputs
Land and buildings		214,067	Cost approach method	- Price per square meter - Replacement cost
		237,900	Income approach method	- Discount rate - Capitalization rate - Vacancy rate

Fair value of investment properties amounts to W 451,967 million and W 428,007 million as of December 31, 2023 and 2022, respectively. Investment properties are measured by qualified independent appraisers with recent experience in valuing similar properties in the same area. In addition, all investment properties are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

Rental income from above investment properties amounts to W 6,408 million and W 5,441 million for the years ended December 31, 2023 and 2022, respectively.

14.2.3 Changes in investment properties for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Acquisition		Transfer		Disposal		Depreciation			Ending
Land		230,597		—		1,622		—		—			232,219
Buildings		114,559		—		2,518		—		(1,816	)		115,261
		345,156		—		4,140		—		(1,816	)		347,480

	2022
(In millions of Korean won)	Beginning		Acquisition		Transfer		Disposal		Depreciation			Ending
Land		222,648		—		7,949		—		—			230,597
Buildings		102,417		—		13,800		—		(1,658	)		114,559
		325,065		—		21,749		—		(1,658	)		345,156

121

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

15. Intangible Assets

15.1 Details of intangible assets as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Others		Carrying amount
Goodwill		552,652		—			(1,202	)		22,823		574,273
Other intangible assets		1,883,049		(1,422,264	)		(15,385	)		—		445,400
		2,435,701		(1,422,264	)		(16,587	)		22,823		1,019,673

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Others		Carrying amount
Goodwill		552,652		—			(1,202	)		12,789		564,239
Other intangible assets		1,732,425		(1,226,990	)		(14,978	)		—		490,457
		2,285,077		(1,226,990	)		(16,180	)		12,789		1,054,696

15.2 Details of goodwill as of December 31, 2023 and 2022, are as follows:

	December 31, 2023				December 31, 2022
(In millions of Korean won)	Acquisition cost		Carrying amount 1		Acquisition cost		Carrying amount 1
PT Bank KB Bukopin Tbk		89,220		86,410		89,220		83,619
KB PRASAC BANK PLC.		398,144		422,575		396,942		415,332
Housing & Commercial Bank		65,288		65,288		65,288		65,288
Kookmin Bank Cambodia Plc. 2		—		—		1,202		—
		552,652		574,273		552,652		564,239

¹  Includes the effect of exchange differences.

²  Kookmin Bank Cambodia PLC merged with KB PRASAC BANK PLC on September 1, 2023.

15.3 Changes in accumulated impairment losses of goodwill for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Impairment		Others		Ending
Accumulated impairment losses of goodwill		(1,202	)		—		—		(1,202	)

	2022
(In millions of Korean won)	Beginning			Impairment		Others		Ending
Accumulated impairment losses of goodwill		(1,202	)		—		—		(1,202	)

122

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

15.4 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2023 are as follows:

	December 31, 2023
(In millions of Korean won)	Retail banking		Corporate banking		PT Bank KB Bukopin Tbk		KB PRASAC BANK PLC		Total
Carrying amounts *		49,315		15,973		86,410		440,731		592,429
Recoverable amount exceeding carrying amount		5,740,481		13,290,555		513,845		76,653		19,621,534
Discount rate (%)		14.72		14.32		23.58		26.74
Permanent growth rate (%)		1.00		1.00		3.00		3.00

* The carrying amount of goodwill at the time of the impairment test

For impairment testing, goodwill is allocated to cash-generating units that are expected to benefit from the synergies of the business combination, and cash-generating units consist of an operating segment or units which are not larger than an operating segment. The Group recognized goodwill amounting to W 65,288 million arising from the merger of Housing & Commercial Bank, and the amounts of W 49,315 million and W 15,973 million were allocated to the retail banking and corporate banking, respectively. The Group acquired a 70% stake in KB PRASAC BANK PLC. with an acquisition date of April 10, 2020, and an additional 30% stake with an acquisition date of October 19, 2021. The goodwill recognized due to the business combination is W 422,575 million as of December 31, 2023. The Group acquired a 66.88% stake in PT Bank KB Bukopin Tbk with an acquisition date of September 2, 2020, and the goodwill recognized due to the business combination is W 86,410 million as of December 31, 2023. Cash-generating units to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired, by comparing the carrying amount of the unit including the goodwill with the recoverable amount of the unit. The valuation dates of the recoverable amounts of the KB PRASAC BANK PLC. and PT Bank KB Bukopin TBK are September 30, 2023 and December 31, 2023, respectively.

The recoverable amount of a cash-generating unit is measured at the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal is the amount obtainable from the disposal in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. If it is difficult to measure the amount obtainable from the disposal of the cash-generating unit, the disposal amount of a similar cash-generating unit in the past transaction is used by reflecting the characteristics of the cash-generating unit to be measured. If it is not possible to obtain reliable information to measure the fair value less costs of disposal, the Group uses the asset’s value in use as its recoverable amount. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The estimated future cash flows are based on the most recent financial budget approved by management with maximum period of 5 years. The future cash flows of retail banking and corporate banking after the projection period are estimated on the assumption that the future cash flows will increase by 1.0% per year. The key assumptions used for the estimation of the future cash flows are based on the market size and the Group’s market share.

The future cash flows of KB PRASAC BANK PLC. after five years are estimated on the assumption that the future cash flows will increase by 3.0% per year. The future cash flows of PT Bank KB Bukopin Tbk after five years are estimated on the assumption that the future cash flows will increase by 3.0% per year. The key assumptions used for the estimation of the future cash flows are the GDP growth rate and the market size of Cambodia and Indonesia, and the recent growth rate of KB PRASAC BANK PLC. and PT Bank KB Bukopin Tbk. The discount rate is a pre-tax rate that reflects assumptions regarding risk-free interest rate, market risk premium, and the risks specific to the cash-generating unit.

123

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

15.5 Details of intangible assets other than goodwill as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Industrial property rights		2,190		(1,821	)		—			369
Software		1,531,414		(1,222,219	)		—			309,195
Other intangible assets		314,318		(164,691	)		(15,385	)		134,242
Right-of-use assets		35,127		(33,533	)		—			1,594
		1,883,049		(1,422,264	)		(15,385	)		445,400

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Industrial property rights		2,406		(2,106	)		—			300
Software		1,416,325		(1,052,909	)		—			363,416
Other intangible assets		278,567		(139,450	)		(14,978	)		124,139
Right-of-use assets		35,127		(32,525	)		—			2,602
		1,732,425		(1,226,990	)		(14,978	)		490,457

15.6 Changes in intangible assets other than goodwill for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Acquisition		Transfer		Disposal		Amortization			Others*			Ending
Industrial property rights		300		197		—		—		(129	)		1			369
Software		363,416		114,629		249		—		(169,872	)		773			309,195
Other intangible assets		124,139		63,791		—		—		(42,535	)		(11,153	)		134,242
Right-of-use assets		2,602		—		—		—		(1,008	)		—			1,594
		490,457		178,617		249		—		(213,544	)		(10,379	)		445,400

* Kookmin Bank Cambodia PLC of KB PRASAC BANK PLC. includes merger effects.

	2022
(In millions of Korean won)	Beginning		Acquisition		Transfer		Disposal			Amortization			Others			Ending
Industrial property rights		224		193		—		(1	)		(117	)		1			300
Software		330,852		170,141		818		—			(138,741	)		346			363,416
Other intangible assets		154,103		2,799		—		(245	)		(31,822	)		(696	)		124,139
Right-of-use assets		3,610		—		—		—			(1,007	)		(1	)		2,602
		488,789		173,133		818		(246	)		(171,687	)		(350	)		490,457

124

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

15.7 Changes in accumulated impairment losses of other intangible assets for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Impairment			Reversal		Others		Ending
Accumulated impairment losses of other intangible assets		(14,978	)		(11,891	)		—		11,484		(15,385	)
	2022
(In millions of Korean won)	Beginning			Impairment			Reversal		Others		Ending
Accumulated impairment losses of other intangible assets		(15,145	)		—			—		167		(14,978	)

16. Deferred Income Tax Assets and Liabilities

16.1 Details of deferred income tax assets and liabilities as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Assets			Liabilities			Net amount
Other provisions		179,786			—			179,786
Impairment losses of property and equipment		7,295			—			7,295
Share-based payments		15,229			—			15,229
Provisions for acceptances and guarantees		48,917			—			48,917
Gains or losses on valuation of derivatives		—			(147,458	)		(147,458	)
Present value discount		370			—			370
Gains or losses on fair value hedge		—			(57,146	)		(57,146	)
Accrued interest		146			(102,407	)		(102,261	)
Deferred loan origination fees and costs		11,604			(113,810	)		(102,206	)
Gains or losses on revaluation *		—			(259,839	)		(259,839	)
Investments in subsidiaries and others		27,393			(201,916	)		(174,523	)
Gains or losses on valuation of security investment		—			(253,504	)		(253,504	)
Defined benefit liabilities		408,732			—			408,732
Accrued expenses		201,386			—			201,386
Retirement insurance expense		—			(461,169	)		(461,169	)
Adjustments to the prepaid contributions		—			(33,005	)		(33,005	)
Others		815,848			(339,932	)		475,916
		1,716,706			(1,970,186	)		(253,480	)
Offsetting of deferred income tax assets and liabilities		(1,467,194	)		1,467,194			—
		249,512			(502,992	)		(253,480	)

125

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

16.1 Details of deferred income tax assets and liabilities as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Assets			Liabilities			Net amount
Other provisions		86,237			—			86,237
Impairment losses of property and equipment		5,155			—			5,155
Share-based payments		13,112			—			13,112
Provisions for acceptances and guarantees		39,787			—			39,787
Gains or losses on valuation of derivatives		—			(147,750	)		(147,750	)
Present value discount		95			—			95
Gains or losses on fair value hedge		—			(93,833	)		(93,833	)
Accrued interest		—			(72,868	)		(72,868	)
Deferred loan origination fees and costs		10,377			(115,553	)		(105,176	)
Gains or losses on revaluation *		—			(261,502	)		(261,502	)
Investments in subsidiaries and others		37,802			(179,329	)		(141,527	)
Gains or losses on valuation of security investment		245,988			—			245,988
Defined benefit liabilities		380,726			—			380,726
Accrued expenses		172,345			—			172,345
Retirement insurance expense		—			(459,323	)		(459,323	)
Adjustments to the prepaid contributions		—			(27,986	)		(27,986	)
Others		637,476			(243,543	)		393,933
		1,629,100			(1,601,687	)		27,413
Offsetting of deferred income tax assets and liabilities		(1,447,843	)		1,447,843			—
		181,257			(153,844	)		27,413

* Gains on Land revaluation

16.2 Unrecognized Deferred Income Tax Assets

16.2.1 No deferred income tax assets have been recognized for the deductible temporary differences of W 2,868,380 million and W 1,099,572 million associated with investments in subsidiaries and others as of December 31, 2023 and 2022, because it is not probable that these temporary differences will reverse in the foreseeable future.

16.2.2 No deferred income tax assets have been recognized for the deductible temporary differences of W 42,288 million and W 34,908 million associated with others as of December 31, 2023 and 2022 due to the uncertainty that these temporary differences will be realized in the future.

16.3 Unrecognized Deferred Income Tax Liabilities

16.3.1 No deferred income tax liabilities have been recognized for the taxable temporary differences of W 1,086,031 million and W 443,216 million associated with investments in subsidiaries and others as of December 31, 2023 and 2022, due to the following reasons:

• The Group is able to control the timing of the reversal of the temporary differences.

• It is probable that these temporary differences will not reverse in the foreseeable future.

16.3.2 No deferred income tax liabilities have been recognized as of December 31, 2023 and 2022 for the taxable temporary differences of W 65,288 million related to the initial recognition of goodwill arising from the merger of Housing and Commercial Bank in 2001.

126

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

16.4 Changes in cumulative temporary differences for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions		325,422			325,422			681,009			681,009
Impairment losses of property and equipment		19,453			19,383			27,564			27,634
Deferred loan origination fees and costs		39,160			—			4,795			43,955
Accrued interest					—			729			729
Share-based payments		49,479			49,479			57,685			57,685
Provisions for acceptances and guarantees		150,140			150,140			185,290			185,290
Present value discount		358			358			1,401			1,401
Investments in subsidiaries and others		1,242,222			47,194			1,730,472			2,925,500
Gains or losses on valuation of security investment		928,258			928,258			—			—
Defined benefit liabilities		1,436,700			175,699			287,226			1,548,227
Accrued expenses		650,357			650,357			764,170			764,170
Others		1,820,526			527,313			1,204,044			2,497,257
		6,662,075			2,873,603			4,944,385			8,732,857
Unrecognized deferred income tax assets
Investments in subsidiaries and others		1,099,572									2,868,380
Others		34,908									42,288
		5,527,595									5,822,189
Tax rate (%)		26.50									26.40
		1,464,813									1,537,058
Tax loss carryforwards and tax credit		164,287			—			15,361			179,648
Total deferred income tax assets		1,629,100									1,716,706
Taxable temporary differences
Gains or losses on fair value hedge		(354,085	)		(354,085	)		(216,460	)		(216,460	)
Accrued interest		(274,975	)		(216,794	)		(329,724	)		(387,905	)
Deferred loan origination fees and costs		(436,047	)		(436,047	)		(431,098	)		(431,098	)
Gains or losses on valuation of derivatives		(558,566	)		(559,692	)		(559,680	)		(558,554	)
Present value discount		—			—			—			—
Goodwill arising from the merger		(65,288	)		—			—			(65,288	)
Gains or losses on revaluation *		(986,800	)		(2,561	)		—			(984,239	)
Investments in subsidiaries and others		(1,119,930	)		—			(834,777	)		(1,954,707	)
Gains or losses on valuation of security investment		—			—			(960,241	)		(960,241	)
Retirement insurance expense		(1,733,297	)		(174,146	)		(187,703	)		(1,746,854	)
Adjustments to the prepaid contributions		(105,608	)		(105,608	)		(125,019	)		(125,019	)
Others		(918,011	)		(344,331	)		(610,099	)		(1,183,779	)
		(6,552,607	)		(2,193,264	)		(4,254,801	)		(8,614,144	)
Unrecognized deferred income tax liabilities
Goodwill arising from the merger		(65,288	)								(65,288	)
Investments in subsidiaries and others		(443,216	)								(1,086,031	)
		(6,044,103	)								(7,462,825	)
Tax rate (%)		26.50									26.40
Total deferred income tax liabilities		(1,601,687	)								(1,970,186	)

127

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

16.4 Changes in cumulative temporary differences for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions		283,299			276,213			318,336			325,422
Impairment losses of property and equipment		27,076			19,880			12,257			19,453
Deferred loan origination fees and costs		31,256			12,726			20,630			39,160
Share-based payments		57,042			57,042			49,479			49,479
Provisions for acceptances and guarantees		120,332			120,332			150,140			150,140
Present value discount		—			—			358			358
Investments in subsidiaries and others		445,595			30,441			827,068			1,242,222
Gains or losses on valuation of security investment		—			—			928,258			928,258
Defined benefit liabilities		1,718,990			292,478			10,188			1,436,700
Accrued expenses		540,823			540,823			650,357			650,357
Others		1,250,634			544,021			1,113,913			1,820,526
		4,475,047			1,893,956			4,080,984			6,662,075
Unrecognized deferred income tax assets
Investments in subsidiaries and others		327,040									1,099,572
Others		39,821									34,908
		4,108,186									5,527,595
Tax rate (%)		27.50									26.50
		1,129,751									1,464,813
Tax loss carryforwards and tax credit		101,729			—			62,558			164,287
Total deferred income tax assets		1,231,480									1,629,100
Taxable temporary differences
Gains or losses on fair value hedge		(53,243	)		(53,243	)		(354,085	)		(354,085	)
Accrued interest		(155,936	)		(119,589	)		(238,628	)		(274,975	)
Deferred loan origination fees and costs		(503,266	)		(503,266	)		(436,047	)		(436,047	)
Gains or losses on valuation of derivatives		(269,493	)		(269,493	)		(558,566	)		(558,566	)
Present value discount		(517	)		(517	)		—			—
Goodwill arising from the merger		(65,288	)		—			—			(65,288	)
Gains or losses on revaluation *		(1,008,984	)		(22,184	)		—			(986,800	)
Investments in subsidiaries and others		(817,618	)		—			(302,312	)		(1,119,930	)
Gains or losses on valuation of security investment		(1,823,307	)		(1,823,307	)		—			—
Retirement insurance expense		(1,605,940	)		(237,587	)		(364,944	)		(1,733,297	)
Adjustments to the prepaid contributions		(106,446	)		(106,446	)		(105,608	)		(105,608	)
Others		(453,098	)		(329,376	)		(794,289	)		(918,011	)
		(6,863,136	)		(3,465,008	)		(3,154,479	)		(6,552,607	)
Unrecognized deferred income tax liabilities
Goodwill arising from the merger		(65,288	)								(65,288	)
Investments in subsidiaries and others		(313,586	)								(443,216	)
		(6,484,262	)								(6,044,103	)
Tax rate (%)		27.50									26.50
Total deferred income tax liabilities		(1,783,172	)								(1,601,687	)

* Gains on Land revaluation

128

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

17. Assets Held for Sale

17.1 Details of assets held for sale as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost *		Accumulated impairment losses			Carrying amount		Fair value less costs to sell
Land held for sale		107,452		(21,604	)		85,848		104,024
Buildings held for sale		162,004		(41,390	)		120,614		134,801
Other assets held for sale		3,431		(1,664	)		1,767		1,768
		272,887		(64,658	)		208,229		240,593
	December 31, 2022
(In millions of Korean won)	Acquisition cost *		Accumulated impairment losses			Carrying amount		Fair value less costs to sell
Land held for sale		106,348		(20,394	)		85,954		104,990
Buildings held for sale		162,974		(38,870	)		124,104		137,706
Other assets held for sale		4,546		(2,847	)		1,699		1,699
		273,868		(62,111	)		211,757		244,395

* Acquisition cost of buildings held for sale is net of the accumulated depreciation amount immediately before the initial classification of the assets as held for sale.

17.2 Valuation techniques and inputs used to measure the fair value of assets held for sale as of December 31, 2023 are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value	Valuation techniques 1	Unobservable inputs 2	Estimated range of unobservable inputs (%)	Effect of unobservable inputs to fair value
Land and buildings	240,593	Market comparison approach model and others	Adjustment index	0.54 ~ 2.18	Fair value increases as the adjustment index rises

¹ The appraisal value is adjusted by the adjustment ratio in the event the public sale is unsuccessful.

² Adjustment index is calculated using the time factor correction or individual factors.

Among assets held for sale, real estate was measured by independent appraisers with professional qualifications and recent experience in evaluating similar properties in the area of the property to be assessed. All assets held for sale are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

129

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

17.3 Changes in accumulated impairment losses of assets held for sale for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	Beginning			Provision			Reversal		Others			Ending
Accumulated impairment losses of assets held for sale		(62,111	)		(5,660	)		—		3,113			(64,658	)
(In millions of Korean won)	2022
	Beginning			Provision			Reversal		Others			Ending
Accumulated impairment losses of assets held for sale		(58,815	)		(5,752	)		6,507		(4,051	)		(62,111	)

17.4 As of December 31, 2023, assets held for sale consist of 22 real estates of closed offices and 1 real estate of Orient Kwang-yang Co., Ltd., 430 foreclosure assets on loans of PT Bank KB Bukopin Tbk, which were determined to sell by management, but not yet sold as of December 31, 2023. The remaining 453 assets are also being actively marketed.

18. Other Assets

18.1 Details of other assets as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Other financial assets
Other receivables		7,292,496			3,516,361
Accrued income		1,835,332			1,510,141
Guarantee deposits		787,481			822,060
Domestic exchange settlement debits		804,570			861,741
Others		36,707			34,249
Less: Allowances for credit losses		(51,628	)		(33,461	)
Present value discount		(1,353	)		(1,464	)
		10,703,605			6,709,627
Other non-financial assets
Other receivables		720			307
Prepaid expenses		409,001			260,584
Guarantee deposits		4,070			2,483
Prepayments		44,871			21,456
Others		83,943			94,934
Less: Allowances for credit losses		(5,205	)		(10,966	)
		537,400			368,798
		11,241,005			7,078,425

130

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

18.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Other financial assets			Other non- financial assets			Total
Beginning		33,461			10,966			44,427
Provision (reversal)		27,303			(1,450	)		25,853
Write-offs		(5,095	)		(5,911	)		(11,006	)
Others		(4,041	)		1,600			(2,441	)
Ending		51,628			5,205			56,833
(In millions of Korean won)	2022
	Other financial assets			Other non- financial assets			Total
Beginning		16,305			8,587			24,892
Provision (reversal)		3,647			2,203			5,850
Write-offs		(4,502	)		(70	)		(4,572	)
Others		18,011			246			18,257
Ending		33,461			10,966			44,427

19. Deposits

Details of deposits as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Demand deposits
Demand deposits in Korean won		146,451,160			147,976,208
Demand deposits in foreign currencies		10,475,002			12,053,947
		156,926,162			160,030,155
Time deposits
Time deposits in Korean won		199,442,287			191,747,094
Fair value adjustments of fair value hedged time deposits in Korean won		(15	)		—
Time deposits in foreign currencies		24,739,425			23,652,215
Fair value adjustments of fair value hedged time deposits in foreign currencies		(6,667	)		(8,591	)
		224,175,030			215,390,718
Certificates of deposits		12,145,510			6,325,876
		393,246,702			381,746,749

131

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

20. Borrowings

20.1 Details of borrowings as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
General borrowings		26,438,995		36,815,211
Bonds sold under repurchase agreements and others		6,535,538		4,933,903
Call money		2,015,542		3,324,003
		34,990,075		45,073,117

20.2 Details of general borrowings as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Lenders	Annual interest rate (%)		December 31, 2023		December 31, 2022
Borrowings in Korean won	Borrowings from Bank of Korea	Bank of Korea		2.00		2,520,472		8,282,289
	Borrowings from government	SEMAS and others		0.00~3.41		2,500,160		2,670,867
	Borrowings from non-banking financial institutions	Korea Development Bank		1.68~2.93		503,504		477,788
	Other borrowings	Korea Development Bank and others		0.00~5.23		4,291,240		5,397,514
						9,815,376		16,828,458
Borrowings in foreign currencies	Due to banks	Woori Bank and others		—		38,191		18,266
	Borrowings from banks	Citicorp International LTD and others		0.00~13.50		13,619,440		14,620,544
	Borrowings from other financial institutions	The Export-Import Bank of Korea		5.89~6.07		24,662		38,249
	Other borrowings	DBS Bank and others		0.00~5.85		2,941,326		5,309,694
						16,623,619		19,986,753
						26,438,995		36,815,211

20.3 Details of bonds sold under repurchase agreements and others as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Lenders	Annual interest rate (%)		December 31, 2023		December 31, 2022
Bonds sold under repurchase agreements	Individuals, groups, and corporations		0.00~9.75		6,528,901		4,930,103
Bills sold	Counter sale		1.80~2.20		6,637		3,800
					6,535,538		4,933,903

132

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

20.4 Details of call money as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Lenders	Annual interest rate (%)		December 31, 2023		December 31, 2022
Call money in Korean won	Samsung Asset Management		3.30		300,000		2,113,500
Call money in foreign currencies	Central Bank Uzbekistan and others		0.15~6.05		1,715,542		1,210,503
					2,015,542		3,324,003

21. Debentures

21.1 Details of debentures as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Annual interest rate (%)		December 31, 2023			December 31, 2022
Debentures in Korean won
Structured debentures		4.25~8.62		110,640			30,710
Subordinated fixed rate debentures		2.02~7.86		3,188,970			4,089,890
Fixed rate debentures		1.31~13.70		13,649,139			12,204,848
Floating rate debentures		3.51~5.32		4,430,000			4,100,000
				21,378,749			20,425,448
Fair value adjustments of fair value hedged debentures in Korean won				(141,073	)		(249,630	)
Less: Discount on debentures in Korean won				(8,686	)		(7,371	)
				21,228,990			20,168,447
Debentures in foreign currencies
Floating rate debentures		3.94~5.63		1,372,460			1,312,914
Fixed rate debentures		0.05~12.00		9,307,083			8,434,760
				10,679,543			9,747,674
Fair value adjustments of fair value hedged debentures in foreign currencies				(68,705	)		(95,865	)
Less: Discount on debentures in foreign currencies				(28,421	)		(32,534	)
				10,582,417			9,619,275
				31,811,407			29,787,722

133

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

21.2 Changes in debentures based on par value for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Issue		Repayment			Others		Ending
Debentures in Korean won
Structured debentures		30,710		90,000		(10,070	)		—		110,640
Subordinated fixed rate debentures		4,089,890		—		(900,920	)		—		3,188,970
Fixed rate debentures		12,204,848		17,179,439		(15,735,148	)		—		13,649,139
Floating rate debentures		4,100,000		4,370,000		(4,040,000	)		—		4,430,000
		20,425,448		21,639,439		(20,686,138	)		—		21,378,749
Debentures in foreign currencies
Floating rate debentures		1,312,914		1,012,144		(1,000,513	)		47,915		1,372,460
Fixed rate debentures		8,434,760		2,888,614		(2,236,500	)		220,209		9,307,083
		9,747,674		3,900,758		(3,237,013	)		268,124		10,679,543
		30,173,122		25,540,197		(23,923,151	)		268,124		32,058,292
(In millions of Korean won)	2022
	Beginning		Issue		Repayment			Others		Ending
Debentures in Korean won
Structured debentures		30,910		—		(200	)		—		30,710
Subordinated fixed rate debentures		5,292,957		—		(1,203,067	)		—		4,089,890
Fixed rate debentures		11,276,086		12,883,950		(11,955,188	)		—		12,204,848
Floating rate debentures		5,310,000		4,960,000		(6,170,000	)		—		4,100,000
		21,909,953		17,843,950		(19,328,455	)		—		20,425,448
Debentures in foreign currencies
Floating rate debentures		1,948,962		755,815		(1,597,630	)		205,767		1,312,914
Fixed rate debentures		5,949,105		3,354,673		(1,113,994	)		244,976		8,434,760
		7,898,067		4,110,488		(2,711,624	)		450,743		9,747,674
		29,808,020		21,954,438		(22,040,079	)		450,743		30,173,122

22. Provisions

22.1 Details of provisions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Provisions for credit losses of unused loan commitments		202,314		161,331
Provisions for credit losses of acceptances and guarantees		183,900		153,843
Provisions for restoration costs		130,966		135,477
Others		412,414		82,719
		929,594		533,370

134

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

22.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2023 and 2022, are as follows:

	2023
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
(In millions of Korean won)				Non- impaired			Impaired						Non- impaired			Impaired
Beginning		103,797			57,530			4			27,217			118,725			7,901
Transfer between stages:
Transfer to 12-month expected credit losses		14,029			(13,993	)		(36	)		(3,573	)		(421	)		3,994
Transfer to lifetime expected credit losses		(13,497	)		13,629			(132	)		(356	)		457			(101	)
Impairment		(125	)		(685	)		810			—			(113	)		113
Provision (reversal) for credit losses		24,826			16,350			(603	)		7,840			28,401			(7,604	)
Others (exchange differences, etc.)		(7	)		460			(43	)		165			1,149			106
Ending *		129,023			73,291			—			31,293			148,198			4,409
	2022
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
(In millions of Korean won)				Non- impaired			Impaired						Non- impaired			Impaired
Beginning		94,183			53,582			—			27,441			82,170			11,537
Transfer between stages:
Transfer to 12-month expected credit losses		22,761			(22,731	)		(30	)		1,144			(1,144	)		—
Transfer to lifetime expected credit losses		(15,265	)		15,357			(92	)		(355	)		1,016			(661	)
Impairment		(133	)		(470	)		603			(9	)		(142	)		151
Provision (reversal) for credit losses		1,934			10,855			(457	)		(1,422	)		33,983			(3,261	)
Others (exchange differences, etc.)		317			937			(20	)		418			2,842			135
Ending		103,797			57,530			4			27,217			118,725			7,901

* Includes additional provisions of W 21,456 million for the borrowers which are highly affected by the termination of COVID-19 financial support as of December 31, 2023.

135

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

22.3 Changes in provisions for restoration costs for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Beginning		135,477			128,407
Provision		3,772			6,336
Reversal		(2,167	)		1,261
Used		(12,319	)		(12,411	)
Unwinding of discount		5,742			2,363
Effect of changes in discount rate		461			9,521
Ending		130,966			135,477

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

22.4 Changes in other provisions for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Membership rewards program			Dormant accounts			Litigations			Financial guarantee contracts			Others *			Total
Beginning		46			2,794			41,230			2,955			35,694			82,719
Provision (reversal)		64			4,687			15,893			3,403			325,829			349,876
Used and others		(63	)		(4,121	)		(7,072	)		—			(8,925	)		(20,181	)
Ending		47			3,360			50,051			6,358			352,598			412,414
	2022
(In millions of Korean won)	Membership rewards program			Dormant accounts			Litigations			Financial guarantee contracts			Others			Total
Beginning		43			3,062			10,119			5,285			11,038			29,547
Provision (reversal)		84			2,666			33,503			(2,330	)		26,595			60,518
Used and others		(81	)		(2,934	)		(2,392	)		—			(1,939	)		(7,346	)
Ending		46			2,794			41,230			2,955			35,694			82,719

* Includes other provisions of W333,290 million related to the Livelihood finance support program as of December 31, 2023.

136

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

23. Net Defined Benefit Liabilities (Assets)

23.1 Defined Benefit Plan

The Group operates defined benefit plans which have the following characteristics:

• The Group has the obligation to pay the agreed benefits to all its current and former employees.

• The Group assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities (assets) recognized in the consolidated statements of financial position are calculated in accordance with an actuarial valuation method using assumptions based on market data and historical data such as discount rate, future salary increase rate, and mortality. Actuarial assumptions may differ from actual results due to changes in the market conditions, economic trends, and mortality trends.

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities(assets)
Beginning		1,550,620			(1,842,126	)		(291,506	)
Current service cost		124,478			—			124,478
Interest expense (income)		75,408			(91,587	)		(16,179	)
Remeasurements:
Actuarial gains and losses by experience adjustments		7,371			—			7,371
Actuarial gains and losses by changes in demographic assumptions		(525	)		—			(525	)
Actuarial gains and losses by changes in financial assumptions		84,927			—			84,927
Return on plan assets (excluding amounts included in interest income)		—			(21,146	)		(21,146	)
Contributions by the Group		—			(92,000	)		(92,000	)
Payments from plans (benefit payments)		(171,669	)		171,669			—
Payments from the Group		(12,670	)		—			(12,670	)
Transfer in		5,143			(4,506	)		637
Transfer out		(5,066	)		5,066			—
Effect of exchange differences		(3,639	)		—			(3,639	)
Impact of business combination		(309	)		—			(309	)
Others		—			(163	)		(163	)
Ending		1,654,069			(1,874,793	)		(220,724	)

137

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities
Beginning		1,847,905			(1,692,621	)		155,284
Current service cost		163,587			—			163,587
Interest expense (income)		46,854			(43,392	)		3,462
Remeasurements:
Actuarial gains and losses by experience adjustments		9,041			—			9,041
Actuarial gains and losses by changes in demographic assumptions		41,988			—			41,988
Actuarial gains and losses by changes in financial assumptions		(352,447	)		—			(352,447	)
Return on plan assets (excluding amounts included in interest income)		—			54,808			54,808
Contributions by the Group		—			(360,000	)		(360,000	)
Payments from plans (benefit payments)		(196,543	)		196,543			—
Payments from the Group		(9,330	)		—			(9,330	)
Transfer in		5,150			(4,516	)		634
Transfer out		(7,052	)		7,052			—
Effect of exchange differences		1,467			—			1,467
Ending		1,550,620			(1,842,126	)		(291,506	)

23.3 Details of net defined benefit liabilities (assets) as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Present value of defined benefit obligation		1,654,069			1,550,620
Fair value of plan assets		(1,874,793	)		(1,842,126	)
Net defined benefit liabilities (assets)		(220,724	)		(291,506	)

23.4 Details of remeasurements of net defined benefit liabilities (asset) recognized in other comprehensive income (loss) for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Remeasurements:
Actuarial losses arising from experience adjustments		(7,371	)		(9,041	)
Actuarial losses arising from changes in demographic assumptions		525			(41,988	)
Actuarial losses arising from changes in financial assumptions		(84,927	)		352,447
Return on plan assets (excluding amounts included in interest income)		21,146			(54,808	)
Income tax effect		17,634			(67,749	)
Effect of exchange differences		4,577			(345	)
Remeasurements after income tax expense		(48,416	)		178,516

138

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

23.5 Details of fair value of plan assets as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Assets quoted in an active market		Assets not quoted in an active market		Total
Time deposits		—		1,261,011		1,261,011
Others		—		613,782		613,782
		—		1,874,793		1,874,793

(In millions of Korean won)	December 31, 2022
	Assets quoted in an active market		Assets not quoted in an active market		Total
Time deposits		—		1,388,054		1,388,054
Others		—		454,072		454,072
		—		1,842,126		1,842,126

23.6 Details of significant actuarial assumptions used as of December 31, 2023 and 2022, are as follows:

	December 31, 2023	December 31, 2022
Discount rate (%)	4.20	5.20
Salary increase rate (%)	0.00~5.04	0.00~5.25
Turnover rate (%)	1.68~38.60	2.30~38.60

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2023.

23.7 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2023, are as follows:

		Effect on defined benefit obligation
	Changes in assumptions	Increase in assumptions	Decrease in assumptions
Discount rate	0.5%p	3.16% decrease	3.37% increase
Salary increase rate	0.5%p	3.32% increase	3.15% decrease
Turnover rate	0.5%p	0.07% increase	0.07% decrease

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the consolidated statement of financial position.

139

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

23.8 Expected maturity analysis of undiscounted pension benefit payments as of December 31, 2023, are as follows:

(In millions of Korean won)	Up to 1 year		1~2 years		2~5 years		5~10 years		Over 10 years		Total
Pension benefits		164,829		218,654		619,818		860,680		2,476,462		4,340,443

The weighted average duration of the defined benefit obligation is 6.87 and 7.34 years as of December 31, 2023 and 2022, respectively.

23.9 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2023, is W 92,000 million.

24. Other Liabilities

Details of other liabilities as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Other financial liabilities
Other payables		8,001,405		3,837,087
Prepaid card and debit card payables		3,367		1,840
Accrued expenses		5,026,652		3,404,404
Financial guarantee contracts liabilities		35,270		44,440
Deposits for letter of guarantees and others		539,173		1,116,184
Domestic exchange settlement credits		2,859,746		1,734,905
Foreign exchange settlement credits		215,730		250,138
Other accounting business borrowings		2,792		—
Due to trust accounts		8,142,102		5,808,446
Liabilities incurred from agency relationships		514,642		513,621
Account for agency business		249,379		241,910
Lease liabilities		366,112		372,002
Others		84,431		51,359
		26,040,801		17,376,336
Other non-financial liabilities
Other payables		497,937		1,053,097
Unearned revenue		101,962		106,756
Accrued expenses		465,880		542,818
Withholding taxes		244,047		153,537
Others		47,553		59,339
		1,357,379		1,915,547
		27,398,180		19,291,883

140

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

25. Equity

25.1 Capital Stock

Details of capital stock as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won and in number of shares)	December 31, 2023		December 31, 2022
Type of share		Ordinary share		Ordinary share
Number of authorized shares		1,000,000,000		1,000,000,000
Par value per share (In Korean won)		5,000		5,000
Number of issued shares		404,379,116		404,379,116
Capital stock		2,021,896		2,021,896

25.2 Hybrid Security

Details of hybrid security classified as equity as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Issuance date		Maturity *		Interest rate (%)		December 31, 2023		December 31, 2022
		July 2, 2019				4.35		574,523		574,523
Hybrid Security		June 23, 2022		Permanent		4.89		299,327		299,327
		February 27, 2023				4.67		409,085		—
								1,282,935		873,850

* Early redeemable by the Group only when prior approval from the head of the Financial Supervisory Service is obtained after 5 years from the issuance date.

25.3 Capital Surplus

Details of capital surplus as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Paid-in capital in excess of par value		4,604,417			4,604,417
Gains on business combination		397,669			397,669
Revaluation reserve		177,229			177,229
Other capital surplus		(443,911	)		(153,980	)
		4,735,404			5,025,335

141

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

25.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Remeasurements of net defined benefit liabilities		(163,030	)		(113,922	)
Currency translation differences		185,486			201,288
Gains (losses) on debt securities measured at fair value through other comprehensive income		43,821			(652,186	)
Gains on equity securities measured at fair value through other comprehensive income		641,179			641,536
Share of other comprehensive loss of associates		(1,458	)		(2,590	)
Gains on cash flow hedging instruments		21,017			33,921
Losses on hedging instruments of net investments in foreign operations		(112,620	)		(95,296	)
		614,395			12,751

25.5 Retained Earnings

25.5.1 Details of retained earnings as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Legal reserves		2,047,321		2,044,631
Regulatory reserve for credit losses		3,018,015		2,915,162
Voluntary reserves		19,452,441		17,739,062
Unappropriated retained earnings		3,200,635		3,135,337
		27,718,412		25,834,192

With respect to the allocation of net profit earned in a fiscal term, the Bank must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 40 of the Banking Act. This reserve is not available for the payment of cash dividends, but may be transferred to capital stock, or used to reduce an accumulated deficit. The Bank is reserving other reserves (legal reserves) in accordance with local laws and regulations of overseas branches.

25.5.2 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 29.1 through 29.2 of Regulations on Supervision of Banking Business.

25.5.2.1 Details of regulatory reserve for credit losses as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Regulatory reserve for credit losses attributable to:
Shareholder of the Parent Company		2,796,799		3,018,015
Non-controlling interests		160,997		79,118
		2,957,796		3,097,133

142

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

25.5.2.2 Regulatory reserve for credit losses estimated to be appropriated (reversed) and adjusted profit after provision (reversal) of regulatory reserve for credit losses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Regulatory reserve for credit losses estimated to be appropriated (reversed)		(221,216	)		102,853
Adjusted profit after provision (reversal) of regulatory reserve for credit losses *		3,482,715			2,893,162

* Adjusted profit after provision (reversal) of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision (reversal) of regulatory reserve for credit losses before tax to the net profit attributable to shareholder of the Parent Company.

26. Net Interest Income

Details of interest income, interest expense, and net interest income for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Interest income
Securities measured at fair value through profit or loss		434,372		282,403
Loans measured at fair value through profit or loss		11,168		7,442
Securities measured at fair value through other comprehensive income		1,125,407		669,668
Loans measured at fair value through other comprehensive income		16,641		6,023
Due from financial institutions measured at amortized cost		192,406		79,929
Securities measured at amortized cost		1,100,753		637,504
Loans measured at amortized cost		18,997,716		13,351,316
Others		468,660		324,416
		22,347,123		15,358,701
Interest expense
Deposits		9,672,896		4,455,350
Borrowings		1,304,029		674,082
Debentures		1,146,157		756,478
Others		353,974		181,770
		12,477,056		6,067,680
Net interest income		9,870,067		9,291,021

Interest income recognized on impaired loans is W 25,092 million and W 16,853 million for the years ended December 31, 2023 and 2022, respectively.

143

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

27. Net Fee and Commission Income

Details of fee and commission income, fee and commission expense, and net fee and commission income for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Fee and commission income
Banking activity fees		191,311		190,874
Lending activity fees		76,061		65,368
Credit card related fees		1,149		1,438
Debit card related fees		737		591
Agent activity fees		292,123		329,117
Trust and other fiduciary fees		240,541		201,238
Acceptances and guarantees fees		74,791		60,890
Foreign currency related fees		182,745		164,980
Securities agency fees		95,164		105,471
Other business account commission on consignment		33,873		36,211
Others		414,325		373,980
		1,602,820		1,530,158
Fee and commission expense
Trading activity related fees *		17,195		16,308
Lending activity fees		40,263		44,833
Credit card related fees		42,842		39,385
Outsourcing related fees		101,860		106,042
Foreign currency related fees		32,310		25,173
Management fees of written-off loans		12,346		12,842
Contributions to external institutions		30,467		27,997
Others		157,254		160,970
		434,537		433,550
Net fee and commission income		1,168,283		1,096,608

* Fees from financial instruments at fair value through profit or loss

144

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

28. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions.

Details of net gains or losses on financial instruments at fair value through profit or loss for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Gains on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		1,083,669		472,217
Equity securities		51,231		23,347
		1,134,900		495,564
Derivatives held for trading:
Interest rate		5,270,304		7,520,856
Currency		8,827,632		13,709,057
Stock or stock index		4,730		15,285
Credit		8,603		39,646
Others		946		1,672
		14,112,215		21,286,516
Financial liabilities at fair value through profit or loss		661		2,951
Other financial instruments		502		252
		15,248,278		21,785,283
Losses on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		216,490		944,163
Equity securities		15,519		34,431
		232,009		978,594
Derivatives held for trading:
Interest rate		5,555,826		6,652,262
Currency		8,682,323		13,892,134
Stock or stock index		3,314		10,751
Credit		9,282		36,380
Others		3,321		3,547
		14,254,066		20,595,074
Financial liabilities at fair value through profit or loss		1,831		829
Other financial instruments		387		205
		14,488,293		21,574,702
Net gains on financial instruments at fair value through profit or loss		759,985		210,581

145

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

29. Net Other Operating Income and Expenses

Details of other operating income and expenses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Other operating income
Gains on financial assets at fair value through other comprehensive income:
Gains on redemption of securities measured at fair value through other comprehensive income		7,326			20
Gains on disposal of securities measured at fair value through other comprehensive income		18,241			19,977
Gains on financial assets at amortized cost:
Gains on sale of loans measured at amortized cost		38,909			28,734
Gains on foreign exchange transactions		5,323,065			9,859,577
Dividend income		4,536			9,934
Others		441,822			843,662
		5,833,899			10,761,904
Other operating expenses
Losses on financial assets at fair value through other comprehensive income:
Losses on redemption of securities measured at fair value through other comprehensive income		8			2,757
Losses on disposal of securities measured at fair value through other comprehensive income		100,108			30,840
Losses on financial assets at amortized cost:
Losses on sale of loans measured at amortized cost		30,512			51,214
Losses on foreign exchange transactions		5,147,519			9,784,228
Deposit insurance fee		535,983			502,631
Credit guarantee fund fee		327,765			283,912
Others		1,032,455			1,050,422
		7,174,350			11,706,004
Net other operating expenses		(1,340,451	)		(944,100	)

146

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

30. General and Administrative Expenses

30.1 Details of general and administrative expenses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Expenses related to employee
Employee benefits - salaries		1,683,117		1,778,373
Employee benefits - welfare		660,086		707,690
Post-employment benefits - defined benefit plans		108,299		167,049
Post-employment benefits - defined contribution plans		15,886		15,491
Termination benefits		250,215		272,615
Share-based payments		24,330		15,169
		2,741,933		2,956,387
Depreciation and amortization		569,174		546,505
Other general and administrative expenses
Rental expense		73,771		72,564
Tax and dues		198,703		169,351
Communication		40,770		41,251
Electricity and utilities		34,059		28,958
Publication		5,368		6,184
Repairs and maintenance		32,723		38,613
Vehicle		14,126		14,032
Travel		10,576		9,134
Training		24,508		22,523
Service fees		172,940		187,534
Supplies		18,000		21,930
Electronic data processing expenses		244,737		220,814
Others		340,378		362,171
		1,210,659		1,195,059
		4,521,766		4,697,951

147

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

30.2 Share-based Payments

30.2.1 Stock grants

The Group changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

30.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2023, are as follows:

(In number of shares)
Stock grants	Grant date	Number of granted shares 1		Vesting conditions 2
Series 83	Apr. 1, 2021		14,972	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 85	Jan. 1, 2022		259,752	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%, Services fulfillment, TSR 30%, and EPS and Asset Quality 70%
Series 86	Feb. 1, 2022		1,525	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 88	Mar. 14, 2022		5,179	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 90	Jul. 18, 2022		3,716	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 91	Aug. 24, 2022		7,277	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 92	Jan. 1, 2023		187,802	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 93	Mar. 15, 2023		585	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 94	Apr. 1, 2023		8,794	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 95	Oct. 5, 2023		126	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Deferred grant in 2016			799	Satisfied
Deferred grant in 2017			893	Satisfied
Deferred grant in 2018			1,145	Satisfied
Deferred grant in 2020			26,763	Satisfied
Deferred grant in 2021			104,643	Satisfied
Deferred grant in 2022			87,342	Satisfied
Deferred grant in 2023			3,611	Satisfied
			714,924

¹ Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of December 31, 2023 (Deferred grants are residual shares vested as of December 31, 2023).

² Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.

148

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

30.2.1.2 Details of stock grants linked to short-term performance as of December 31, 2023, are as follows:

(In number of shares)
Stock grants *	Grant date		Estimated number of vested shares		Vesting conditions
Stock granted in 2015		Jan. 1, 2015		419		Satisfied
Stock granted in 2016		Jan. 1, 2016		2,135		Satisfied
Stock granted in 2017		Jan. 1, 2017		535		Satisfied
Stock granted in 2018		Jan. 1, 2018		739		Satisfied
Stock granted in 2020		Jan. 1, 2020		44,890		Satisfied
Stock granted in 2021		Jan. 1, 2021		86,235		Satisfied
Stock granted in 2022		Jan. 1, 2022		164,595		Satisfied
Stock granted in 2023		Jan. 1, 2023		133,455		Proportion to service period

* Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.

30.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2023, are as follows:

(In Korean won)	Expected exercise period(years)		Risk-free rate (%)			Fair value (market performance condition)		Fair value (non- market performance condition)
Series 83		0.00~3.00		3.43	%		42,053~48,307		47,066~52,755
Series 85		0.00~3.00		3.43	%		38,623~48,102		47,066~52,755
Series 86		0.00~4.00		3.43	%		39,972~46,008		44,873~51,649
Series 88		0.00~4.00		3.43	%		41,215~47,439		44,873~51,649
Series 90		0.00~4.00		3.43	%		42,737~49,190		44,873~51,649
Series 91		0.00~4.00		3.43	%		42,750~49,206		44,873~51,649
Series 92		0.00~4.00		3.43	%		44,873~52,755		44,873~52,755
Series 93		0.00~5.01		3.43	%		47,066~52,755		47,066~52,755
Series 94		0.00~5.01		3.43	%		42,787~52,755		42,787~52,755
Series 95		0.00~3.00		3.43	%		43,187~48,407		47,066~52,755
Grant deferred in 2016		—		3.43	%		—		52,755
Grant deferred in 2017		—		3.43	%		—		52,755
Grant deferred in 2018		—		3.43	%		—		52,755
Grant deferred in 2020		—		3.43	%		—		52,755
Grant deferred in 2021		0.00~1.00		3.43	%		—		51,649~52,755
Grant deferred in 2022		0.00~4.00		3.43	%		—		44,873~52,755
Grant deferred in 2023		0.16~2.16		3.43	%		—		48,939~53,705
Stock granted in 2015		0.00		3.43	%		—		52,755
Stock granted in 2016		0.00~1.00		3.43	%		—		51,649~52,755
Stock granted in 2017		0.00		3.43	%		—		52,755
Stock granted in 2018		0.00		3.43	%		—		52,755
Stock granted in 2020		0.00		3.43	%		—		52,755
Stock granted in 2021		0.00~1.00		3.43	%		—		51,649~52,755
Stock granted in 2022		0.00~4.00		3.43	%		—		44,873~52,755
Stock granted in 2023		0.16~3.00		3.43	%		—		47,066~53,705

The Group uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

149

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

30.2.1.4 The accrued expenses for share-based payments related to stock grants are W 53,774 million and W 46,740 million as of December 31, 2023 and 2022, respectively, and the compensation costs amounting to W 24,330 million and W 15,169 million were recognized for the years ended December 31, 2023 and 2022, respectively.

30.2.2 Mileage stock

30.2.2.1 Details of mileage stock as of December 31, 2023, are as follows:

(In number of shares)
Grant date		Number of granted shares 1		Expected exercise period (years) 2		Remaining shares
Stock granted in 2019
	Nov. 1, 2019		119		0.00~0.83		48
	Nov. 8, 2019		14		0.00~0.85		6
	Dec. 5, 2019		56		0.00~0.93		39
	Dec. 6, 2019		84		0.00~0.93		38
	Dec. 31, 2019		87		0.00~1.00		22
Stock granted in 2020
	Jan. 18, 2020		28,645		0.00~1.05		13,953
	May 12, 2020		46		0.00~1.36		43
	Jun. 30, 2020		206		0.00~1.50		147
	Aug. 26, 2020		40		0.00~1.65		27
	Oct. 29, 2020		160		0.00~1.83		107
	Nov. 6, 2020		45		0.00~1.85		37
	Nov. 30, 2020		35		0.00~1.92		29
	Dec. 2, 2020		57		0.00~1.92		26
	Dec. 4, 2020		154		0.00~1.93		79
	Dec. 30, 2020		88		0.00~2.00		51
Stock granted in 2021
	Jan. 15, 2021		28,156		0.00~2.04		16,045
	Apr. 5, 2021		89		0.00~2.26		53
	Jul. 1, 2021		54		0.00~2.50		36
	Jul. 2, 2021		11		0.00~2.50		11
	Jul. 27, 2021		70		0.00~2.57		63
	Nov. 1, 2021		71		0.00~2.84		71
	Nov. 16, 2021		53		0.00~2.88		13
	Dec. 3, 2021		91		0.00~2.92		74
	Dec. 6, 2021		87		0.00~2.93		76
	Dec. 30, 2021		76		0.00~3.00		76

150

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

30.2.2.1 Details of mileage stock as of December 31, 2023, are as follows: (cont’d)

(In number of shares)
Grant date	Number of granted shares 1		Expected exercise period (years) 2		Remaining shares
Stock granted in 2022
Jan. 14, 2022		20,909		0.00~3.04		16,253
Apr. 4, 2022		65		0.00~3.26		65
Apr. 19, 2022		33		0.00~3.30		29
Jul. 1, 2022		62		0.00~3.50		21
Aug. 3, 2022		62		0.00~3.59		15
Aug. 9, 2022		80		0.00~3.61		60
Oct. 19, 2022		55		0.00~3.80		23
Nov. 1, 2022		177		0.00~3.84		159
Dec. 1, 2022		49		0.00~3.92		49
Dec. 2, 2022		42		0.00~3.92		30
Dec. 6, 2022		88		0.00~3.93		70
Dec. 12, 2022		114		0.00~3.95		114
Dec. 15, 2022		42		0.00~3.96		42
Dec. 30, 2022		114		0.00~4.00		114
Stock granted in 2023
Jan. 9, 2023		23,071		0.00~4.02		22,084
Jan. 14, 2023		742		0.00~4.04		688
Mar. 7, 2023		58		0.00~4.18		58
Mar. 27, 2023		58		0.00~4.24		58
Mar. 31, 2023		97		0.00~4.25		97
May. 4, 2023		105		0.00~4.34		105
Jul. 3, 2023		63		0.00~4.50		63
Jul. 26, 2023		38		0.00~4.57		38
Jul. 31, 2023		220		0.00~4.58		220
Oct. 20, 2023		80		0.00~4.80		80
Nov. 1, 2023		78		0.00~4.84		78
Dec. 1, 2023		49		0.00~4.92		49
Dec. 13, 2023		115		0.00~4.95		115
Dec. 14, 2023		57		0.00~4.95		57
Dec. 27, 2023		19		0.00~4.99		19
Dec. 28, 2023		162		0.00~4.99		162
Dec. 29, 2023		95		0.00~4.99		95
		105,593				72,280

¹ Mileage stock is exercisable for four years after one year from the grant date at the closing price of the end of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a one-year grace period.

² Assessed based on the stock price as of December 31, 2023. These shares are vested immediately at grant date.

30.2.2.2 The accrued expenses for share-based payments related to mileage stock are W 3,910 million and W 2,738 million as of December 31, 2023 and 2022, respectively. The compensation costs amounting to W 1,645 million and W 870 million were recognized as expenses for the years ended December 31, 2023 and 2022, respectively.

151

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

31. Net Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Other non-operating income
Gains on disposal of property and equipment and assets held for sale		6,957			50,112
Rental income		28,914			22,561
Others		28,597			24,396
		64,468			97,069
Other non-operating expenses
Losses on disposal of property and equipment and assets held for sale		8,554			8,186
Donation		91,799			62,712
Restoration costs		3,144			2,336
Others		59,301			61,700
		162,798			134,934
Net other non-operating income (expenses)		(98,330	)		(37,865	)

152

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

32. Income Tax Expense

32.1 Details of income tax expense for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Income tax payable
Current income tax expense		1,095,319			1,336,580
Adjustments of income tax of prior years recognized in current tax		(43,951	)		(120,740	)
		1,051,368			1,215,840
Changes in deferred income tax assets and liabilities		280,893			(579,105	)
Income tax expense of overseas branches		54,735			33,244
Income tax recognized directly in equity:
Net gains or losses on equity instruments at fair value through other comprehensive income		1,314			466,078
Net gains or losses on debt instruments at fair value through other comprehensive income		(250,651	)		164,231
Currency translation differences		4,218			(7,412	)
Remeasurements of net defined benefit liabilities		17,634			(67,749	)
Gains or losses on hedging instruments of net investments in foreign operations		6,038			22,863
Gains or losses on cash flow hedging instruments		4,691			(12,264	)
Share of other comprehensive income or loss of associates		(410	)		(15	)
		(217,166	)		565,732
Reclassification from AOCI to retained earnings due to sale of equity securities measured at fair value through other comprehensive income		(9,499	)		(92,181	)
Consolidated tax return effect		(83,348	)		(62,854	)
Others		2,842			807
Income tax expense		1,079,825			1,081,483

153

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

32.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Profit before income tax expense		4,229,777			3,809,790
Income tax at the applicable tax rate *		1,106,299			1,037,330
Non-taxable income		(17,278	)		(10,300	)
Non-deductible expenses		10,866			10,040
Tax credit and tax exemption		—			(1,418	)
Temporary difference for which no deferred tax is recognized		(46,172	)		95,438
Changes in recognition and measurement of deferred tax		71,419			98,854
Income tax refund for tax of prior years		(48,825	)		(135,121	)
Income tax expense of overseas branches		54,735			33,244
Tax effect of investments in subsidiaries		(1,064	)		9,961
Foreign subsidiary tax rate difference effect		16,383			28,206
Effect of tax rate change		(583	)		(5,670	)
Consolidated tax return effect		(83,349	)		(62,854	)
Others		17,394			(16,227	)
Income tax expense		1,079,825			1,081,483
Income tax expense/Profit before income tax (%)		25.53			28.39

* Applicable income tax rate for W 200 million and below is 9.9%, for over W 200 million to W 20 billion is 20.9%, for over W 20 billion to W 300 billion is 23.1% and for over W 300 billion is 26.4% for the year ended December 31, 2023. Applicable income tax rate for W 200 million and below is 11%, for over W 200 million to W 20 billion is 22%, for over W 20 billion to W 300 billion is 24.2% and for over W 300 billion is 27.5% for the year ended December 31, 2022.

32.3 Details of current tax liabilities (income tax payables) and current tax assets (income tax refund receivables) before offsetting as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Tax payables after offsetting 1, 2		339,146			873,805
Adjustment on consolidated tax payable and others 3		(83,348	)		(62,854	)
Consolidated tax return accounts payables 4		(217,253	)		(747,922	)
Current tax payable		38,545			63,029

¹ Current tax assets of W 218,000 million and W 172,757 million due to uncertain tax position and current tax assets of W 106,870 million and W 16,372 million for overseas branches were excluded, which do not qualify for offsetting as of December 31, 2023 and 2022, respectively.

² Includes income tax payable of W 38,545 million and W 63,029 million under current tax liabilities, which are not to be offset against any income tax refund receivables, such as those of overseas branches as of December 31, 2023 and 2022, respectively.

³ Tax expense reduced due to the adoption of consolidated tax return was recognized as tax benefit.

⁴ The amount of income tax payable is reclassified as accounts payable, not to the tax authority, but to KB Financial Group Inc. due to the adoption of consolidated tax return.

154

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

33. Dividends

The annual dividends to the shareholder of the Bank for the year ended December 31, 2023, amounting to W 1,467,896 million (W 3,630 per share) is to be proposed at the general shareholder’s meeting scheduled for March 21, 2024. The Group’s consolidated financial statements as of and for the year ended December 31, 2023, do not reflect this dividend payable.

34. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Changes (excluding reclassifica- tion)			Reclassification to profit or loss			Tax effect			Transfer to retained earnings			Ending
Remeasurements of net defined benefit liabilities		(113,922	)		(66,742	)		—			17,634			—			(163,030	)
Currency translation differences		201,288			3,733			(23,753	)		4,218			—			185,486
Gains (losses) on debt securities measured at fair value through other comprehensive income		(652,186	)		719,376			227,282			(250,651	)		—			43,821
Gains (losses) on equity securities measured at fair value through other comprehensive income		641,536			34,310			—			1,314			(35,981	)		641,179
Share of other comprehensive gain (loss) of associates		(2,590	)		1,542			—			(410	)		—			(1,458	)
Gains (losses) on cash flow hedging instruments		33,921			(12,395	)		(5,200	)		4,691			—			21,017
Gains (losses) on hedging instruments of net investments in foreign operations		(95,296	)		(23,362	)		—			6,038			—			(112,620	)
		12,751			656,462			198,329			(217,166	)		(35,981	)		614,395
	2022
(In millions of Korean won)	Beginning			Changes (excluding reclassifica- tion)			Reclassification to profit or loss			Tax effect			Transfer to retained earnings			Ending
Remeasurements of net defined benefit liabilities		(292,232	)		246,059			—			(67,749	)		—			(113,922	)
Currency translation differences		68,224			140,476			—			(7,412	)		—			201,288
Gains on (losses) debt securities measured at fair value through other comprehensive income		(186,463	)		(933,967	)		304,013			164,231			—			(652,186	)
Gains on equity securities measured at fair value through other comprehensive income		1,838,548			(1,327,887	)		—			466,078			(335,203	)		641,536
Share of other comprehensive loss of associates		(2,526	)		(49	)		—			(15	)		—			(2,590	)
Losses on cash flow hedging instruments		(89	)		43,886			2,388			(12,264	)		—			33,921
Gains (losses) on hedging instruments of net investments in foreign operations		(30,306	)		(87,853	)		—			22,863			—			(95,296	)
		1,395,156			(1,919,335	)		306,401			565,732			(335,203	)		12,751

155

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

35. Trust Accounts

35.1 Financial information of the trust accounts the Group manages, as of and for the years ended December 31, 2023 and 2023, are as follows:

	Total assets				Operating revenues
(In millions of Korean won)	December 31, 2023		December 31, 2022		2023		2022
Consolidated		4,130,129		4,192,712		192,689		122,144
Unconsolidated (non-guaranteed)		98,607,952		76,695,803		3,825,217		1,996,658
		102,738,081		80,888,515		4,017,906		2,118,802

* Financial information of the trust accounts has been prepared in accordance with the Statement of Korea Accounting Standard No.5004, Trust Accounts, and enforcement regulations of the Financial Investment Services under the Financial Investment Services and Capital Markets Act.

35.2 Significant receivables and payables related to the Group’s trust accounts as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023
Trust segment	Receivables
	Accrued trust fees		62,594
	Other accrued income		32,328
			94,922
	Payables
	Due to trust accounts		4,442,147
	Accrued interest on due to trust accounts		10,975
	Unearned fees on trust accounts		323
	Deposits		889,966
	Accrued interest on deposits		11,522
			5,354,933
Custody segment	Receivables
	Accrued trust fees		9,460
	Payables
	Due to trust accounts		3,699,955
	Accrued interest on due to trust accounts		9,144
			3,709,099

156

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

35.2 Significant receivables and payables related to the Group’s trust accounts as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2022
Trust segment	Receivables
	Accrued trust fees		55,990
	Other accrued income		27,376
			83,366
	Payables
	Due to trust accounts		1,580,076
	Accrued interest on due to trust accounts		7,294
	Deposits		686,394
	Accrued interest on deposits		5,641
			2,279,405
Custody segment	Receivables
	Accrued trust fees		8,461
	Payables
	Due to trust accounts		4,228,370
	Accrued interest on due to trust accounts		10,820
			4,239,190

35.3 Significant revenues and expenses related to the Group’s trust accounts for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		2023		2022
Trust segment	Revenues
	Fees and commissions from trust accounts		200,877		163,184
	Management fees and commissions from retirement pension		35,833		30,797
	Commissions from early termination in trust accounts		18		13
			236,728		193,994
	Expenses
	Interest expenses on due to trust accounts		85,148		31,355
	Interest expenses on deposits		62,917		19,655
			148,065		51,010
Custody segment	Revenues
	Fees and commissions from trust accounts		39,664		38,054
	Expenses
	Interest expenses on due to trust accounts		124,095		83,797

157

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

36. Statements of Cash Flows

36.1 Details of cash and cash equivalents as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Cash		2,112,424			2,437,356
Checks issued by other banks		142,437			123,163
Due from Bank of Korea		14,628,378			15,963,883
Due from other financial institutions		6,753,768			6,603,392
		23,637,007			25,127,794
Deduction:
Restricted due from financial institutions *		(987,067	)		(1,461,327	)
Due from financial institutions with original maturities over three months		(88,149	)		(311,946	)
		(1,075,216	)		(1,773,273	)
		22,561,791			23,354,521

* Items that meet the definition of cash are excluded in accordance with Korean IFRS No.1007 Statement of Cash Flows.

Items that meet the definition of cash in restricted due from financial institutions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Financial institutions	December 31, 2023		December 31, 2022
Due from financial institutions in Korean won	Due from Bank of Korea	Bank of Korea		13,731,708		15,169,703
Due from financial institutions in foreign currencies	Due from banks in foreign currencies	Bank of Korea		896,670		794,180
		Monetary Authority of Singapore and others		48,247		421,718
				14,676,625		16,385,601

36.2 Significant non-cash transactions for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Write-offs of loans		763,143			846,312
Changes in accumulated other comprehensive income from valuation of debt securities measured at fair value through other comprehensive income		696,007			(465,723	)
Changes in accumulated other comprehensive income from valuation of equity securities measured at fair value through other comprehensive income		(357	)		(1,197,012	)
Changes in accumulated other comprehensive income from valuation of investments in associates		1,132			(64	)

158

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

36.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Activities		2023		2022
Income tax paid		Operating		1,619,882		908,394
Interest received		Operating		21,995,428		15,033,525
Interest paid		Operating		10,823,532		4,986,483
Dividends received		Operating		193,554		256,335
Dividends paid		Financing		1,346,582		1,031,167
Interest (dividends) paid on hybrid securities		Financing		57,179		34,399

36.4 Changes in liabilities arising from financing activities for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Derivatives held for hedging *			Borrowings			Debentures			Due to trust accounts			Lease liabilities			Deposits for letter of guarantees			Other payables			Total
Beginning		7,720			45,073,117			29,787,722			5,808,447			372,003			1,116,184			117,087			82,282,280
Cash flow		32,370			(10,475,975	)		1,615,653			2,333,656			(132,984	)		(577,040	)		43,026			(7,161,294	)
New lease and termination		—			—			—			—			112,967			—			—			112,967
Exchange differences		—			183,268			233,865			—			—			—			—			417,133
Changes in fair values		(14,648	)		—			136,120			—			—			—			—			121,472
Changes from business combination		—			—			—			—			—			—			(80,210	)		(80,210	)
Other changes from non-cash transactions		(21,780	)		209,665			38,047			—			14,127			28			331,444			571,531
Ending		3,662			34,990,075			31,811,407			8,142,103			366,113			539,172			411,347			76,263,879
	2022
(In millions of Korean won)	Derivatives held for hedging *			Borrowings			Debentures			Due to trust accounts			Lease liabilities			Deposits for letter of guarantees			Other payables			Total
Beginning		(88,125	)		32,523,161			29,718,734			7,033,849			375,472			387,082			108,115			70,058,288
Cash flow		33,402			11,575,186			(197,529	)		(1,225,402	)		(157,055	)		712,257			184,647			10,925,506
New lease and termination		—			—			—			—			142,433			—			—			142,433
Exchange differences		—			981,112			450,741			—			—			—			—			1,431,853
Changes in fair values		97,791			—			(293,571	)		—			—			—			—			(195,780	)
Changes from business combination		—			—			—			—			—			—			(188,528	)		(188,528	)
Other changes from non-cash transactions		(35,348	)		(6,342	)		109,347			—			11,153			16,845			12,853			108,508
Ending		7,720			45,073,117			29,787,722			5,808,447			372,003			1,116,184			117,087			82,282,280

* Derivatives held for hedging purposes are the net amount after offsetting liabilities and assets.

159

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

37. Contingent Liabilities and Commitments

37.1 Details of acceptances and guarantees as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Confirmed acceptances and guarantees
Confirmed acceptances and guarantees in Korean won:
Acceptances and guarantees for KB purchasing loan		148,786		167,538
Performance bond		—		3,476
Refund guarantees		—		9,259
Others		945,027		905,934
		1,093,813		1,086,207
Confirmed acceptances and guarantees in foreign currencies:
Acceptances of letter of credit		277,370		502,217
Letter of guarantees		47,665		78,414
Bid bond		12,549		19,998
Performance bond		1,111,589		976,008
Refund guarantees		3,561,227		1,705,796
Others		3,721,708		3,570,739
		8,732,108		6,853,172
Financial guarantee contracts:
Acceptances and guarantees for issuance of debenture		—		5,040
Acceptances and guarantees for mortgage		94,027		94,861
Overseas debt guarantees		470,579		509,157
International financing guarantees in foreign currencies		616,554		181,241
		1,181,160		790,299
		11,007,081		8,729,678
Unconfirmed acceptances and guarantees
Guarantees of letter of credit		2,785,483		3,042,911
Refund guarantees		1,301,377		1,528,359
		4,086,860		4,571,270
		15,093,941		13,300,948

160

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

37.2 Credit qualities of acceptances and guarantees as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Total
(In millions of Korean won)			Non-impaired		Impaired
Confirmed acceptances and guarantees *
Grade 1		8,608,327		170,322		—		8,778,649
Grade 2		1,790,315		22,065		—		1,812,380
Grade 3		40,595		7,368		—		47,963
Grade 4		67,729		294,635		457		362,821
Grade 5		—		1,182		4,086		5,268
		10,506,966		495,572		4,543		11,007,081
Unconfirmed acceptances and guarantees *
Grade 1		3,071,076		—		—		3,071,076
Grade 2		734,886		19,210		—		754,096
Grade 3		8,600		10,692		—		19,292
Grade 4		1,828		237,200		—		239,028
Grade 5		—		—		3,368		3,368
		3,816,390		267,102		3,368		4,086,860
		14,323,356		762,674		7,911		15,093,941

	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Total
(In millions of Korean won)			Non-impaired		Impaired
Confirmed acceptances and guarantees *
Grade 1		6,023,922		1,140		—		6,025,062
Grade 2		1,882,080		10,474		—		1,892,554
Grade 3		494,924		18,649		—		513,573
Grade 4		63,689		215,382		442		279,513
Grade 5		—		4,130		14,846		18,976
		8,464,615		249,775		15,288		8,729,678
Unconfirmed acceptances and guarantees *
Grade 1		3,232,326		844		—		3,233,170
Grade 2		1,040,908		36,879		—		1,077,787
Grade 3		4,685		13,308		—		17,993
Grade 4		1,265		236,687		5		237,957
Grade 5		—		199		4,164		4,363
		4,279,184		287,917		4,169		4,571,270
		12,743,799		537,692		19,457		13,300,948

* Applied same criteria as the credit qualities classification of loans.

161

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

37.3 Classifications of acceptances and guarantees by counterparty as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Large companies		10,138,448		3,397,689		13,536,137		89.68
Small and medium-sized companies		736,810		454,574		1,191,384		7.89
Public sector and others		131,823		234,597		366,420		2.43
		11,007,081		4,086,860		15,093,941		100.00

	December 31, 2022
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Large companies		7,615,442		3,810,564		11,426,006		85.90
Small and medium-sized companies		718,722		496,709		1,215,431		9.14
Public sector and others		395,514		263,997		659,511		4.96
		8,729,678		4,571,270		13,300,948		100.00

37.4 Classifications of acceptances and guarantees by industry as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Financial institutions		1,412,811		591		1,413,402		9.36
Manufacturing		5,527,285		3,109,101		8,636,386		57.22
Service		788,908		102,028		890,936		5.90
Wholesale and retail		2,297,162		614,053		2,911,215		19.29
Construction		363,517		116,950		480,467		3.18
Public sector		31,732		62,440		94,172		0.62
Others		585,666		81,697		667,363		4.43
		11,007,081		4,086,860		15,093,941		100.00

	December 31, 2022
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Financial institutions		547,553		2,012		549,565		4.13
Manufacturing		3,851,832		3,589,948		7,441,780		55.95
Service		751,846		31,465		783,311		5.89
Wholesale and retail		2,181,469		658,875		2,840,344		21.35
Construction		420,937		47,465		468,402		3.52
Public sector		32,635		81,607		114,242		0.86
Others		943,406		159,898		1,103,304		8.30
		8,729,678		4,571,270		13,300,948		100.00

162

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

37.5 Details of commitments as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Commitments
Corporate loan commitments		54,704,534		50,603,030
Retail loan commitments		56,129,471		51,216,282
Other commitments in Korean won		1,700,000		1,700,000
Purchase of other securities		4,890,475		4,880,222
		117,424,480		108,399,534
Financial guarantee contracts
Credit line		5,145,972		6,100,082
Purchase of securities		765,400		371,200
		5,911,372		6,471,282
		123,335,852		114,870,816

163

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

37.6 Other Matters (including litigation)

37.6.1 The Group has 37 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of W 1,049,598 million. Details of pending lawsuits in which the Group is a defendant as of December 31, 2023, are as follows:

(In number of cases, in millions of Korean won)

Lawsuits	No. of cases		Amount		Description of the lawsuits	Status of the lawsuits
Request for a return of redemption amount		1		54,168	The Bank invested the assets entrusted by OO Asset Management and OO Investment Trust Management in the Fairfield Sentry Limited(the Fairfield Sentry Limited reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff) and then redeemed them and returned them to the beneficiaries. Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses. The bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit against The Bank seeking to return the amount of redemptions received by Kookmin Bank through Fairfield Sentry Limited.	Application for dismissal by the defendant has been denied, and further proceedings are scheduled. [Related litigation is in progress at the New York Southern District Federal Bankruptcy Court (10-3777) at the written complaint review stage]
Expropriation of long-term leasehold rights		1		322,350	The Bank invested assets entrusted by OO Asset Management Co., Ltd. in loans that are directly or indirectly collateralized by long-term leasehold rights of the building and land leasehold rights (hereinafter referred to as “the real estate in this case”) of Union Station in Washington, D.C., the United States. The Plaintiff, who is the operator of the railway facility, filed this lawsuit against the stakeholders of the real estate in this case, including the Bank, to expropriate the real estate in this case and determine indemnity.	The Bank submitted the response letter and will proceed with the process in the future.
Return of unjust enrichment		1		140,860	As Russia’s OO Bank, which was trading with the bank through a foreign exchange account, was listed on the SDN (Specifically Designated Nationals) list of the Office of Foreign Assets Control (OFAC) under the U.S. Treasury Department, the bank froze the foreign currency account in the name of the OO Bank Accordingly, Russia’s OO Bank filed a lawsuit seeking the return of the account balance to the Moscow City Commercial Court in Russia	Responding to local court trial schedule

164

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

37.6.1 The Group has 37 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of W 1,049,598 million. Details of pending lawsuits in which the Group is a defendant as of December 31, 2023, are as follows: (cont’d)

(In number of cases, in millions of Korean won)

Lawsuits	No. of cases		Amount		Description of the lawsuits	Status of the lawsuits
Claim for damages		1		90,435	PT Bank KB Bukopin Tbk requested an auction of TMJ’s shares in order to collect the loan to TMJ (a distressed company); NKLI won the auction and then received a loan from the bank for the purpose of purchasing TMJ shares. NKLI’s intention was to take control over TMJ and launch a mining business; however, NKLI was unable to take control and launch the business due to legal disputes with the bankruptcy trustee of TMJ and court-appointed mine management company, and also lost a lawsuit against the mine management company. As a result, NKLI filed a legal suit to PT Bank KB Bukopin Tbk stating that the bank’s recommendation to purchase TMJ’s shares was inappropriate since the bank did not intentionally share the legal issues and associated risks thereof.	A legal representative has been appointed to handle the case, and the legal proceedings will proceed.
Others		135		304,230	Others (excluding simple lawsuits related to the collection or management of loans)
		139		912,043

37.6.2 On April 7, 2023, Kookmin Bank entered into a new share subscription agreement with STIC Eugene Star Holdings Inc. (hereinafter referred to as STIC”), under which STIC will acquire 31,900,000,000 shares at a price of IDR 3.19 trillion, of which Kookmin Bank’s subsidiary, PT Bank KB Bukopin Tbk, will issue. As a result of the agreement, Kookmin Bank will hold a call option to purchase the shares held by the STIC, starting from 2 years and 6 months after the date of acquisition, for a period of 6 months. If Kookmin Bank does not exercise the call option during the designated period, STIC will have the right to sell the acquired shares back to the bank, also known as holding a put option right, within 1 year after the expiration of the call option period.

37.6.3 The Group is currently undergoing an inspection by the Financial Supervisory Service regarding equity-linked securities (ELS), and the requested actions based on the inspection results are currently unpredictable.

37.6.4 The Group is currently under investigation by the Fair Trade Commission regarding the possibility of unfair joint actions by commercial banks. It is impossible to predict the outcome of the investigation.

165

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

38. Subsidiaries

38.1 Details of subsidiaries as of December 31, 2023, are as follows:

Investor	Investee	Ownership (%)	Location	Industry
Kookmin Bank	Kookmin Bank (China) Ltd.	100.00	China	Banking and foreign exchange transaction
Kookmin Bank	KB Microfinance Myanmar Co., Ltd.	100.00	Myanmar	Microfinance services
Kookmin Bank	KB BANK MYANMAR LTD	100.00	Myanmar	Banking and foreign exchange transaction
Kookmin Bank	KB PRASAC BANK PLC. 1	100.00	Cambodia	Banking and foreign exchange transaction
Kookmin Bank	PT Bank KB Bukopin Tbk	66.88	Indonesia	Banking and foreign exchange transaction
PT Bank KB Bukopin Tbk	PT Bank Syariah Bukopin	95.92	Indonesia	Banking
PT Bank KB Bukopin Tbk	PT Bukopin Finance	99.24	Indonesia	Installment financing
Kookmin Bank	Orient Kwang-yang Co., Ltd. 2	36.16	Korea	Building of ships
Orient Kwang-yang Co., Ltd.	YoulChon Clean Energy Co., Ltd.	100.00	Korea	Other power generation
Kookmin Bank	Personal pension trust and 10 others 3	—	Korea	Trust
Kookmin Bank	KB DTower 1st L.L.C. and 35 others 2	—	Korea	Asset-backed securitization and others
Kookmin Bank	IDMB UNITED PTE.LTD. and 1 others 2	—	Singapore	Asset-backed securitization and others
Kookmin Bank	KB Wise Star Private Real Estate Feeder Fund No.1 2	86.00	Korea	Investment trust
Kookmin Bank	Kiwoom Frontier Private Securities Fund No.10 (Bond) 2	99.36	Korea	Investment trust
Kookmin Bank	Woori SafePlus Private Securities Fund S-8 (Bond) 2	90.89	Korea	Investment trust
Kookmin Bank	AIP US Red Private Real Estate Trust No.10 2	99.97	Korea	Investment trust
Kookmin Bank	KB KBSTAR Treasury Futures 3 Year ETF Trust (Bond-Derivative) 2	99.68	Korea	Investment trust
Kookmin Bank	KB Core Blind Private Real Estate Fund No.1 2	90.09	Korea	Investment trust

166

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

38.1 Details of subsidiaries as of December 31, 2023, are as follows: (cont’d)

Investor	Investee	Ownership (%)	Location	Industry
KB Core Blind Private Real Estate Fund No.1	KB Wise Star Real Estate Fund No.3 2	46.65	Korea	Investment trust
Kookmin Bank	KB Global Private Real Estate Fund No.3 (USD) 2	99.50	Korea	Investment trust
Kookmin Bank	Samsung SRA Private Real Estate Investment Trust No.28D (FoFs)2	99.50	Korea	Investment trust
Kookmin Bank	KB Global Private Real Estate Fund No.10 (FoFs) 2	99.84	Korea	Investment trust
Kookmin Bank	KTB Global CREDebt Private Investment Trust No.52 (USD) 2	99.44	Korea	Investment trust
Kookmin Bank	Hyundai Invest KKR Europe Real Estate No.1-3(EUR) 2	99.14	Korea	Investment trust
Kookmin Bank	KBSTAR FKTB 5Y Duration Following ETF(Bond-Derivative) 2	99.13	Korea	Investment trust
Kookmin Bank	Vestas Private Real Estate Fund Investment Trust No.69-3 (USD)(FoFs)2	99.52	Korea	Investment trust
Kookmin Bank	SHINHAN ASP PCF II Private Investment Trust No.2 (USD) 2	99.75	Korea	Investment trust
Kookmin Bank	Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1 2	97.40	Korea	Investment trust
Kookmin Bank	Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-2 2	97.40	Korea	Investment trust
Kookmin Bank	KB KBSTAR KTB 10Y Futures Inverse ETF 2	76.27	Korea	Investment trust
Kookmin Bank	VI ESG Private Securities Investment Trust No.1 (Bond) 2	100.00	Korea	Investment trust
Kookmin Bank	SHINHAN AIM Private Real Estate Fund Investment Trust No.26-C (USD) 2	99.98	Korea	Investment trust
Kookmin Bank	IGIS HSBC UK Senior Direct Lending Private Investment Trust No.465-1 2	99.01	Korea	Investment trust
Kookmin Bank	Mirae Asset ESG Infra Private Investment Trust 1 2	95.24	Korea	Investment trust
Kookmin Bank	KB KBSTAR Mar2025 Term Credit ETF 2	60.98	Korea	Investment trust
Kookmin Bank	KB KBSTAR USD Korean Paper Active ETF 2	96.15	Korea	Investment trust

¹ PRASAC Microfinance Institution PLC. merged with Kookmin Bank Cambodia PLC. on September 1, 2023, and issued 20,272,269 shares in exchange for the merger; the official name of PRASAC Microfinance Institution PLC.(merging entity) has changed to KB PRASAC BANK PLC.

² The Group controls these investees because it is significantly exposed to variable returns from the investees’ performance and has the ability to affect those returns through its power.

³ The Group controls the trust because it has power to determine the management performance of the trust and is exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of principal and fixed rate of return.

The Group holds more than half of the ownership interests of Koreit BN Private Equity Fund and ten other investment trusts but does not have the power over relevant activities in accordance with agreements with trust and other shareholders, therefore these entities are not consolidated.

167

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

38.2 The condensed financial information of major subsidiaries as of and for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023							2023
	Assets		Liabilities		Equity			Operating revenue		Profit (loss) for the period 1			Profit (loss) attributable to shareholders of the Parent Company
Kookmin Bank (China) Ltd.		3,754,281		3,224,225		530,056			200,572		30,328			30,328
KB Microfinance Myanmar Co., Ltd.		18,867		7,640		11,227			5,581		421			421
KB BANK MYANMAR LTD		269,898		13,330		256,568			7,391		3,450			3,450
KB PRASAC BANK PLC. 2		7,367,854		6,009,050		1,358,804			1,551,144		115,652			115,652
Financial status of KB Bukopin-related subsidiaries
PT Bank KB Bukopin Tbk		6,526,747		5,913,206		613,541			545,593		(261,263	)		(173,296	)
IDMB UNITED PTE.LTD. 3		215,055		251,861		(36,806	)		12,686		(4,313	)		(1,635	)
SMMK PTE.LTD. 3		124,685		210,827		(86,142	)		2,533		(88,270	)		(67,368	)
Personal pension trust and 10 others		4,113,285		4,000,734		112,551			257,713		69,092			69,092

(In millions of Korean won)	December 31, 2022							2022
	Assets		Liabilities		Equity			Operating revenue		Profit (loss) for the period 1			Profit (loss) attributable to shareholders of the Parent Company
Kookmin Bank (China) Ltd.		3,666,107		3,164,601		501,506			230,027		(869	)		(869	)
KB Microfinance Myanmar Co., Ltd.		20,111		9,475		10,636			5,379		(1,164	)		(1,164	)
KB BANK MYANMAR LTD		262,478		13,655		248,823			3,252		(1,333	)		(1,333	)
KB PRASAC BANK PLC. 2		6,083,323		4,999,794		1,083,529			1,095,307		233,852			233,852
Kookmin Bank Cambodia PLC. 2		677,093		536,616		140,477			40,295		13,581			13,581
Financial status of KB Bukopin-related subsidiaries
PT Bank KB Bukopin Tbk		6,533,161		6,661,179		(128,018	)		410,422		(802,084	)		(537,227	)
IDMB UNITED PTE.LTD. 3		214,483		246,032		(31,549	)		6,201		(34,401	)		(31,550	)
Personal pension trust and 10 others		4,120,682		4,077,223		43,459			115,566		(76,182	)		(76,182	)

¹  Includes profit (loss) attributable to non-controlling interests.

²  Kookmin Bank Cambodia PLC. was merged with KB PRASAC BANK PLC. on September 1, 2023. Kookmin Bank Cambodia PLC. had operating income of W 28,822 million and net profit and loss of W 2,001 million for the eight-month period ending August 31, 2023 before the merger.

³  These SPCs are established for the purpose of selling non-performing loans of PT Bank KB Bukopin Tbk. Classified as a subsidiary of KB Kookmin Bank, not a subsidiary of PT Bank KB Bukopin Tbk, the gains and losses on the transfer and sale of loans between PT Bank KB Bukopin Tbk and SPC were removed from the consolidation process of KB Kookmin Bank.

168

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

38.3 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

38.3.1 The Bank has provided capital commitments to consolidated investment funds.

	December 31, 2023
(In millions of Korean won)	Capital commitments		Unused amount
KTB Global CREDebt Private Investment Trust No.52 (USD)		64,470		1,878
Hyundai Invest KKR Europe Real Estate No.1-3(EUR)		57,064		14,817
Vestas Private Real Estate Fund Investment Trust No.69-3 (USD)(FoFs)		82,522		28,849
SHINHAN ASP PCF II Private Investment Trust No.2 (USD)		25,788		2,015
Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1		71,011		56,922
SHINHAN AIM Private Real Estate Fund Investment Trust No.26-C (USD)		83,811		54,725
IGIS HSBC UK Senior Direct Lending Private Investment Trust No.465-1		32,836		2,172
Mirae Asset ESG Infra Private Investment Trust 1		20,000		19,999

169

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

38.3.2 The Bank has provided purchase commitments and credit lines to consolidated structured entities. The purchase commitment guarantees that the Bank will purchase and pay any remaining commercial paper securities issued by consolidated structured entities. The credit line agreement requires the Bank to provide loans under certain conditions if there is a reason for suspension of issuance of commercial paper securities or if consolidated structured entities become insolvent due to other reasons.

(In millions of Korean won)	December 31, 2023
LOG the 3rd L.L.C.		24,300
KB D TOWER 1ST INC.		50,523
KBH 4TH INC.		6,200
GreatForest 1st L.L.C.		4,200
KBH 6TH INC.		50,119
BEOMEO LAND MARK 2ND INC.		30,600
K Plus 1st L.L.C.		200,309
KB Livv H 1st Co., Ltd.		30,244
Livv H 1st L.L.C.		50,174
KB Eagles 1st Co., Ltd.		30,258
KB Livv L 1st Co., Ltd.		50,211
KB Eagles 2nd Co., Ltd.		50,311
Ryan Mobility 1st L.L.C.		50,200
KB Chemical 1st Co., Ltd		50,585
KB Harim 1st L.L.C.		30,182
KB Eagles 3rd Co., Ltd.		50,190
KB Dong-in Central 1st L.L.C.		7,067
LEP 2nd Co., Ltd.		70,000
Liiv H 2nd Co., Ltd.		30,039
KB Sungnae 1st L.L.C.		62,600
JT Capital 7th Asset Securitization Specialty Company		6,700
KB Pride 1st LLC		850
KB Pride The 2nd Ltd.		16,759
KB One West 1st Co., Ltd.		89,027
KB Cloud L.L.C.		101,326
Liiv H 3rd Co., Ltd.		50,620
KB Star Glass B 1st LLC		72,800
KB Star Oppo 1st LLC		100,844
KB H housing 1st LLC		29,800
KB Liiv DS 1st L.L.C.		50,139
IDMB UNITED PTE.LTD.		264,327
SMMK PTE.LTD.		266,751

38.3.3 The Group has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

170

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

38.4 Changes in Subsidiaries

KB Star Glass B 1st LLC and 8 other subsidiaries were newly included in the scope of consolidation, and KBL Incheon 1st L.L.C and 21 other subsidiaries were excluded from the scope of consolidation for the year ended December 31, 2023. The exclusion from the scope of consolidation does not include the merger of Kookmin Bank Cambodia PLC. and KB PRASAC BANK PLC.

38.5 Net Cash Flow from Changes in Subsidiaries

The net cash inflows arising from acquisition of subsidiaries and net cash outflows arising from disposal of subsidiaries amount to W 16,124 million and W 40,161 million for the year ended December 31, 2023, respectively.

39. Unconsolidated Structured Entities

39.1 Nature, purpose, and activities of the unconsolidated structured entities and how the structured entities are financed, are as follows:

Nature	Purpose	Activity	Method of financing
Asset-backed securitization	Early cash generation through transfer of securitized assets Fees earned through services to SPC, such as providing lines of credit and ABCP purchase commitments	Fulfillment of asset-backed securitization plan Purchase and collection of securitized assets Issuance and repayment of ABS and ABCP	Issuance of ABS and ABCP based on securitized assets
Structured financing	Granting PF loans to SOC and real estate Granting loans to ships/aircrafts SPC Project financing to M&A and others	Construction of SOC and real estate Building ships, construction and purchase of aircrafts M&A	Loan commitments through credit line, providing credit line, and investment agreements
Investment funds	Investment in beneficiary certificates Investment in PEF and partnerships	Management of fund assets Payment of fund fees and allocation of fund profits	Sales of beneficiary certificate instruments Investment from general partners and limited partners

171

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

39.2 Details of the scale of unconsolidated structured entities and nature of the risks associated with the Group’s interests in unconsolidated structured entities as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Asset-backed securitization		Structured financing		Investment funds		Total
Total assets of unconsolidated structured entities		94,183,359		64,863,161		344,618,252		503,664,772
Carrying amount in the financial statements
Assets:
Financial assets at fair value through profit or loss		48,532		33,682		6,076,725		6,158,939
Loans measured at amortized cost		306,145		7,188,263		—		7,494,408
Financial investments		9,878,280		—		8,510		9,886,790
Investments in associates		—		—		396,106		396,106
Other assets		—		528		2		530
		10,232,957		7,222,473		6,481,343		23,936,773
Liabilities:
Deposits		359,418		2,202,888		64,478		2,626,784
Derivative financial liabilities		—		—		48,678		48,678
Other liabilities		1,650		3,482		7,261		12,393
		361,068		2,206,370		120,417		2,687,855
Maximum exposure
Assets held *		10,232,957		7,222,473		6,481,343		23,936,773
Purchase and investment commitments		440,000		—		4,275,238		4,715,238
Acceptances and guarantees and unused line of credit		4,906,963		1,726,555		—		6,633,518
		15,579,920		8,949,028		10,756,581		35,285,529
Methods of determining the maximum exposure		Providing lines of credit / Unproviding lines of credit / Purchase commitments/ Investment commitments		Acceptances and guarantees / Unproviding lines of credit		Purchase commitments /Investment commitments

172

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

39.2 Details of the scale of unconsolidated structured entities and nature of the risks associated with the Group’s interests in unconsolidated structured entities as of December 31, 2023 and 2022, are as follows: (cont’d)

	December 31, 2022
(In millions of Korean won)	Asset-backed securitization		Structured Financing		Investment funds		Total
Total assets of unconsolidated structured entities		100,277,020		61,285,981		233,155,749		394,718,750
Carrying amount in the financial statements
Assets:
Financial assets at fair value through profit or loss		134,560		34,640		5,094,475		5,263,675
Loans measured at amortized cost		424,111		4,852,076		—		5,276,187
Financial investments		7,381,323		—		—		7,381,323
Investments in associates		—		—		329,626		329,626
Other assets		—		616		2		618
		7,939,994		4,887,332		5,424,103		18,251,429
Liabilities:
Deposits		219,641		1,596,011		78,705		1,894,357
Derivative financial liabilities		—		—		—		—
Other liabilities		2,302		1,561		97		3,960
		221,943		1,597,572		78,802		1,898,317
Maximum exposure
Assets held *		7,939,994		4,887,332		5,424,103		18,251,429
Purchase and investment commitments		371,200		—		4,355,121		4,726,321
Acceptances and guarantees and unused line of credit		6,097,582		1,640,709		—		7,738,291
		14,408,776		6,528,041		9,779,224		30,716,041
Methods of determining the maximum exposure		Providing lines of credit / Purchase commitments/ Acceptances and guarantees / Investment commitments		Acceptances and guarantees / Providing lines of credit		Purchase commitments /Investment commitments

* Maximum exposure includes the asset amounts, after deducting losses (provisions for credit losses, impairment losses, and others), recognized in the consolidated financial statements of the Group.

173

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

40. Leases

40.1 The Group as a Lessee

40.1.1 Amounts recognized in the consolidated statements of financial position related to leases as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Right-of-use property and equipment: *
Real estate		349,485		371,926
Vehicles		11,137		10,507
Others		2,514		4,401
		363,136		386,834
Right-of-use intangible assets *		1,595		2,602
		364,731		389,436
Lease liabilities *		366,112		372,003

* Included in property and equipment, intangible assets, and other liabilities.

40.1.2 Amounts recognized in the consolidated statements of comprehensive income related to leases for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Depreciation and amortization of right-of-use assets:
Real estate		195,707		192,920
Vehicles		12,327		11,035
Others		2,089		5,291
Intangible asset		1,007		1,007
		211,130		210,253
Interest expenses on the lease liabilities		13,234		11,153
Expense relating to short-term lease		2,998		3,222
Expense relating to lease of low-value assets that are not short-term lease		4,156		3,486

Total lease cash outflows for the years ended December 31, 2023 and 2022, are W 126,300 million and W 163,763 million, respectively.

40.2 The Group as an Operating Lessor

The future minimum lease payments to be received from the non-cancellable lease contracts as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Up to 1 year		23,525		20,875
1-5 years		35,984		29,373
Over 5 years		—		—
		59,508		50,248

174

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41. Related Party Transactions

According to Korean IFRS No.1024, the Group includes the Parent, the Parent’s subsidiaries, associates, associates of the Parent’s subsidiaries, associates of the Parent, key management personnel (including family members), and post-employment benefit plans of the Group and its related party companies in the scope of related parties. The Group discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the consolidated financial statements. Refer to Note 13 for details of investments in associates.

Key management personnel include the executives of the Parent Company and the executives (managing director and above) of the Bank, and companies where the executives and/or their close family members have control or joint control.

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		2023		2022
Parent
KB Financial Group Inc.	Fee and commission income		10,063		9,493
	Other operating income		95		—
	Other non-operating income		2,377		1,985
	Interest expense		11,985		6,345
	Other operating expenses		5		—
	General and administrative expenses		1,259		1,262
Parent’s subsidiaries
KB Securities Co., Ltd.	Interest income		15,227		7,571
	Fee and commission income		33,658		26,105
	Gains on financial instruments at fair value through profit or loss		157,397		235,328
	Other non-operating income		5,491		4,613
	Interest expense		10,876		4,533
	Fee and commission expense		1,554		2,353
	Losses on financial instruments at fair value through profit or loss		228,537		168,852
	Provision for credit losses		339		106
	Other non-operating expenses		—		1
	General and administrative expenses		4,052		3,233

175

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Asset Management Co., Ltd.	Fee and commission income		2,034		2,053
	Gains on financial instruments at fair value through profit or loss		—		1,050
	Other non-operating income		3		—
	Interest expense		235		143
	Fee and commission expense		874		3,851
	Losses on financial instruments at fair value through profit or loss		—		9
	General and administrative expenses		500		500
KB Real Estate Trust Co., Ltd.	Fee and commission income		292		315
	Other non-operating income		66		34
	Interest expense		205		258
	Fee and commission expense		6,382		1,641
KB Investment Co., Ltd.	Fee and commission income		78		109
	Other non-operating income		3		—
	Interest expense		2,674		1,647
KB Credit Information Co., Ltd. 2	Fee and commission income		66		75
	Other non-operating income		407		165
	Interest expense		452		139
	Fee and commission expense		22,401		18,146
	Other operating expenses		—		16
KB Data System Co., Ltd.	Fee and commission income		3,083		788
	Other non-operating income		236		185
	Interest expense		349		183
	Other operating expenses		491		419
	General and administrative expenses		98,049		110,623
KB Kookmin Card Co., Ltd.	Interest income		19,696		9,925
	Fee and commission income		156,431		161,910
	Gains on financial instruments at fair value through profit or loss		—		2,087
	Reversal of credit losses		—		178
	Other non-operating income		2,393		1,473
	Interest expense		1,864		955
	Fee and commission expense		1,962		1,742
	Losses on financial instruments at fair value through profit or loss		3,019		1,399
	Provision for credit losses		1,929		—
	General and administrative expenses		19		1,469

176

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Savings Bank Co., Ltd.	Fee and commission income		796		455
	Other non-operating income		71		31
	Interest expense		18		10
	General and administrative expenses		4		3
KB Capital Co., Ltd.	Interest income		3,588		2,475
	Fee and commission income		4,184		3,759
	Gains on financial instruments at fair value through profit or loss		298		—
	Other non-operating income		629		171
	Interest expense		698		248
	Fee and commission expense		111		119
	Losses on financial instruments at fair value through profit or loss		29		—
	Provision for credit losses		138		28
	General and administrative expenses		87		—
KB Insurance Co., Ltd.	Interest income		6		569
	Fee and commission income		28,124		27,195
	Gains on financial instruments at fair value through profit or loss		69,434		137,527
	Reversal of credit losses		—		9
	Other non-operating income		2,498		2,036
	Interest expense		862		1,075
	Fee and commission expense		3,401		3,953
	Losses on financial instruments at fair value through profit or loss		60,534		33,916
	Other operating expenses		5		3
	Provision for credit losses		26		—
	General and administrative expenses		13,398		13,745

177

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Life Insurance Co., Ltd.	Interest income		1,508		149
	Fee and commission income		16,530		21,593
	Gains on financial instruments at fair value through profit or loss		8,209		47,343
	Reversal of credit losses		208		—
	Other non-operating income		591		145
	Interest expense		3,400		4,058
	Fee and commission expense		1,581		4,715
	Losses on financial instruments at fair value through profit or loss		1,594		2,698
	Other operating expenses		17		1
	Provision for credit losses		—		224
	General and administrative expenses		2,016		1,853
KB STAR REIT Co., Ltd.	Interest income		—		374
	Fee and commission income		137		33
	Gains on financial instruments at fair value through profit or loss		27,731		96
	Interest expense		1,117		9
	Losses on financial instruments at fair value through profit or loss		4,568		13,565
KB Hanbando BTL Private Special Asset Fund No.1	Fee and commission income		96		108
KB IDF Infra Private Special Asset Fund 1(FoFs)	Fee and commission income		7		8
KB IDF Infra Private Special Asset Fund 13(FoFs)	Fee and commission income		9		5
	Gains on financial instruments at fair value through profit or loss		1,327		—
	Losses on financial instruments at fair value through profit or loss		1,041		—
KB Muni bond Private Securities Fund No.1 (USD)	Fee and commission income		10		11
KB Global Private Real Estate Debt Fund No.1	Fee and commission income		11		11
KB Global Private Real Estate Debt Fund No.11	Fee and commission income		5		3

178

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023			2022
KB Global Private Real Estate Debt Fund No.15	Fee and commission income		15			10
	Gains on financial instruments at fair value through profit or loss		734			—
	Losses on financial instruments at fair value through profit or loss		340			—
KB Global Private Real Estate Debt Fund No.17	Fee and commission income		4			4
KB Global Private Real Estate Debt Fund No.22	Fee and commission income		1			—
	Gains on financial instruments at fair value through profit or loss		293			—
	Losses on financial instruments at fair value through profit or loss		13			—
KB Global Private Real Estate Debt Fund No.27	Fee and commission income		11			—
	Gains on financial instruments at fair value through profit or loss		2,375			—
KB Global Private Real Estate Debt Fund No.29	Fee and commission income		4			—
KB Global Private Real Estate Debt Fund No.30	Losses on financial instruments at fair value through profit or loss		84			—
KB Star Office Private Real Estate Master Fund No.3	Other operating income		—			3,276
KB Star Office Private Real Estate Feeder Fund No.4	Interest income		760			760
	Fee and commission income		37			37
	Reversal of credit losses		1			—
	Interest expense		(2	)		7
	Provision for credit losses		—			1
KB Global Core Bond Securities Feeder Fund(Bond)	Fee and commission income		14			16
	Gains on financial instruments at fair value through profit or loss		—			459
	Losses on financial instruments at fair value through profit or loss		—			61

179

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB New Renewable Energy Private Special Asset Fund No.1	Fee and commission income		9		9
KB North America Private Real Estate Debt Fund No.1	Fee and commission income		3		3
	Gains on financial instruments at fair value through profit or loss		1,798		2,202
	Losses on financial instruments at fair value through profit or loss		591		51
KB North America Private Real Estate Debt Fund No.3	Fee and commission income		11		10
	Gains on financial instruments at fair value through profit or loss		10,096		9,525
	Losses on financial instruments at fair value through profit or loss		5,802		2,259
KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs)	Fee and commission income		6		5
KB Global Infrastructure Synergy Private Special Asset Fund	Fee and commission income		4		5
	Gains on financial instruments at fair value through profit or loss		917		76
KB BMO Senior Loan Private Special Asset Fund No.1(FOF)	Fee and commission income		11		10
	Gains on financial instruments at fair value through profit or loss		3,037		2,515
	Losses on financial instruments at fair value through profit or loss		—		2,001
KB BMO Senior Loan Private Special Asset Fund No.2(USD)	Fee and commission income		10		10
KB BMO Senior Loan Private Special Asset Fund No.4(USD)	Fee and commission income		8		4
	Gains on financial instruments at fair value through profit or loss		1,622		—
KB BMO Senior Loan Private Special Asset Fund No.5(FOF)	Fee and commission income		13		6
	Gains on financial instruments at fair value through profit or loss		5,862		—
	Losses on financial instruments at fair value through profit or loss		2,075		—

180

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB New Renewable Green New Deal Private Special Asset No.2	Fee and commission income		11		8
KB Sinansan Line Private Special Asset Fund(SOC)	Fee and commission income		33		23
KB Multi Alpha Plus Private Fund No.1 1	Fee and commission income		7		8
KB MCF Senior Loan Private Special Asset Fund No.3(FoFs)	Fee and commission income		62		23
KB New Deal Infra Private Special Asset Fund	Fee and commission income		9		2
KB Korea Infrastructure Credit Guarantee Private Special Asset No.1	Fee and commission income		16		16
KB Wise Star Private Real Estate No.19	Fee and commission income		4		6
Hanwha Europe Credit Private Fund No.16 (FOF)	Gains on financial instruments at fair value through profit or loss		3,001		514
	Losses on financial instruments at fair value through profit or loss		775		746
KB Logistics Blind Private Real Estate Fund No.1	Interest income		2,415		1,129
	Fee and commission income		88		48
	Provision for credit losses		4		2
KB Aircraft Private Special Asset Fund No.1	Fee and commission income		12		13
	Gains on financial instruments at fair value through profit or loss		5,874		74
	Losses on financial instruments at fair value through profit or loss		37		1,761
KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond)	Fee and commission income		24		15
KB Oaktree Private Special Asset Fund No.3	Fee and commission income		3		2
KB GK Project Private Special Asset Fund No.3	Fee and commission income		43		44
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) 1	Fee and commission income		1		11
	Gains on financial instruments at fair value through profit or loss		1,254		—
	Losses on financial instruments at fair value through profit or loss		—		2,891

181

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Korea Short Term Premium Private Securities No.26(USD) (Bond) 1	Fee and commission income		1		7
	Gains on financial instruments at fair value through profit or loss		1,073		—
	Losses on financial instruments at fair value through profit or loss		—		1,839
KB Korea Short Term Premium Private Securities No.27(USD) (Bond) 1	Fee and commission income		2		11
	Losses on financial instruments at fair value through profit or loss		451		3,502
KB Korea Short Term Premium Private Securities No.32(USD) (Bond) 1	Fee and commission income		2		5
	Gains on financial instruments at fair value through profit or loss		—		5,377
	Losses on financial instruments at fair value through profit or loss		2,697		—
KB Korea Short Term Premium Private Securities No.33(USD) (Bond) 1	Fee and commission income		7		—
	Gains on financial instruments at fair value through profit or loss		—		1,557
	Losses on financial instruments at fair value through profit or loss		3,152		—
KB Korea Short Term Premium Private Securities Fund No.34(USD)(Bond)	Fee and commission income		9		—
	Gains on financial instruments at fair value through profit or loss		199		—
	Losses on financial instruments at fair value through profit or loss		2,396		—
KB Korea Short Term Premium Private Securities Fund No.35(USD)(Bond)	Fee and commission income		6		—
	Losses on financial instruments at fair value through profit or loss		2,386		—
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)	Fee and commission income		1		—
	Gains on financial instruments at fair value through profit or loss		746		—
KB IDF Infra Note Private SpecialAsset Fund 14	Fee and commission income		9		5
	Gains on financial instruments at fair value through profit or loss		1,184		—
	Losses on financial instruments at fair value through profit or loss		2,102		—

182

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023			2022
KB ASF Infra Private Special Asset Fund(FoFs)	Fee and commission income		2			1
	Gains on financial instruments at fair value through profit or loss		325			48
	Losses on financial instruments at fair value through profit or loss		—			587
KB Duke Private Special Asset Fund	Fee and commission income		4			4
KB Core Blind Private Real Estate Fund No.2	Fee and commission income		3			—
KB Star Reits Private Real Estate Feeder Fund No.1	Fee and commission income		4			2
KB Star Reits Private Real Estate Feeder Fund No.2	Fee and commission income		7			4
KB PF Blind Private Real Estate Fund 2	Fee and commission income		1			—
HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A.	Fee and commission income		2			1
NB Private Debt Fund IV LUX (B) SCSP	Fee and commission income		3			1
KB Europe Renewable Private Special Asset Fund No.3	Fee and commission income		3			1
	Gains on financial instruments at fair value through profit or loss		244			—
	Losses on financial instruments at fair value through profit or loss		204			—
KB KBSTAR Money Market Active ETF(Bond)	Fee and commission income		21			—
KB NA Jefferies Private Special Asset Fund 1(USD)(FoFs)	Fee and commission income		2			—
KB KStar Fixed Short-Term MSB ETF	Interest expense		(3	)		—
KB Money Market Active ETF (Bond)	Fee and commission income		13			—
KB Renewable Private SpecialAsset Fund 3	Interest expense		1			—
KB Europe ICG PDF Private SpecialAsset Fund 4(FoFs)	Gains on financial instruments at fair value through profit or loss		72			—
KB Star Institutional USD MMF1(USD)	Fee and commission income		4			—
KB Senior Loan Private Fund 5-1	Fee and commission income		1			—
KB Core Plus Blind Private RealEstate Fund 1	Fee and commission income		2			—

183

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Wise Star Private Real Estate 22	Interest income		344		—
	Fee and commission income		3,847		—
	Provision for credit losses		3		—
KB Daegu Busan Highway Private Special Asset Fund(SOC)	Fee and commission income		1		—
KB NA COMPASS Energy Private Special Asset Fund 1	Fee and commission income		—		2
KB Korea Short Term Premium Private Securities No.21(USD) 1	Fee and commission income		—		1
KB Korea Short Term Premium Private Securities No.22(USD) 1	Fee and commission income		—		8
	Losses on financial instruments at fair value through profit or loss		—		510
KB Korea Short Term Premium Private Securities No.23(USD) 1	Fee and commission income		—		12
	Losses on financial instruments at fair value through profit or loss		—		15,167
KB Korea Short Term Premium Private Securities No.28(USD)(Bond) 1	Fee and commission income		—		10
	Losses on financial instruments at fair value through profit or loss		—		11,191
Associates
Korea Credit Bureau Co., Ltd.	Fee and commission income		52		52
	Interest expense		1		1
	Fee and commission expense		2,444		1,996
	Other operating expenses		15		15
Incheon Bridge Co., Ltd.	Interest income		10,420		7,516
	Fee and commission income		28		23
	Gains on financial instruments at fair value through profit or loss		334		—
	Reversal of credit losses		—		28
	Interest expense		979		517
	Fee and commission expense		7		6
	Losses on financial instruments at fair value through profit or loss		—		4,434
	Provision for credit losses		52		—
MJT&I Corp.	Other non-operating expenses		1		—
Kendae Co., Ltd.	Other non-operating expenses		—		3
Dongjo Co., Ltd.	Interest income		36		9
Skydigital Inc.	Fee and commission income		3		3
Il-Kwang Electronic Materials Co., Ltd.	Other non-operating expenses		—		1
So-Myung Recycling Co., Ltd.	Other non-operating expenses		—		2
TMAPMOBILITY CO.,LTD.	Interest expense		1,460		226

184

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
TAEYEONG PRECISION IND. CO.,LTD	Interest income		2		—
KB High-Tech Company Investment Fund	Interest expense		39		3
Aju Good Technology Venture Fund	Interest expense		111		108
KB-KDBC Pre-IPO New Technology Business Investment Fund	Interest expense		—		1
KB Digital Innovation & Growth New Technology Business Investment Fund	Interest expense		1		4
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Interest expense		4		6
KB Global Platform Fund	Interest expense		149		114
WJ Private Equity Fund No.1	Fee and commission income		7		7
KB Bio Global Expansion Private Equity Fund No.1	Interest expense		49		9
KB Digital Platform Fund	Interest expense		71		116
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP	Interest expense		42		—
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10	Interest income		5,934		3,098
	Interest expense		104		60
	Provision for credit losses		4		1
KB Star Office Private Real Estate Investment Trust No.1 1	Interest expense		—		2
Associates of Parent’s subsidiaries
KG Capital Co., Ltd. 1	Fee and commission income		2		4
Food Factory Co., Ltd.	Interest income		62		80
	Fee and commission income		—		1
	Reversal of credit losses		2		1
	Interest expense		1		6
BIKDIPEO CO.,LTD.	Interest expense		—		1
Banksalad Co., Ltd.	Fee and commission income		37		36
Spark Biopharma Inc.	Interest expense		468		272
UPRISE, Inc.	Interest expense		—		3
Channel Corporation	Interest expense		67		43
COSES GT Co., Ltd.	Interest income		21		23
	Reversal of credit losses		5		—
	Interest expense		—		1
	Provision for credit losses		—		3
Gomi corporation Inc.	Interest income		88		61
	Fee and commission income		1		1
	Interest expense		—		2
	Provision for credit losses		47		2
S&E bio Co., Ltd.	Interest expense		43		2
Contents First Inc.	Interest income		346		128
	Fee and commission income		1		1
	Interest expense		73		34
	Provision for credit losses		3		1

185

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023			2022
Mantisco Co., Ltd.	Interest expense		—			1
Pin Therapeutics Inc.	Interest expense		101			110
SuperNGine Co., Ltd.	Interest income		25			—
	Fee and commission income		1			—
	Provision for credit losses		6			—
Desilo Inc.	Interest income		13			9
	Provision for credit losses		3			—
Turing Co., Ltd.	Interest income		24			—
	Interest expense		7			1
	Provision for credit losses		14			—
IGGYMOB Co., Ltd.	Interest expense		—			1
Kukka Co., Ltd.	Interest expense		—			2
Zipdoc Inc.	Interest expense		—			1
Grinergy	Interest expense		1			—
KB No.21 Special Purpose Acquisition Company	Interest expense		68			30
TeamSparta Inc.	Interest expense		212			19
Chabot Mobility Co., Ltd.	Interest expense		—			1
Wemade Connect Co., Ltd.	Interest expense		316			81
KB No.22 Special Purpose Acquisition Company	Interest expense		2			1
KB No.23 Special Purpose Acquisition Company 1	Interest expense		46			23
KB No.24 Special Purpose Acquisition Company 1	Interest expense		7			1
KB No.25 Special Purpose Acquisition Company	Interest expense		39			—
KB No.26 Special Purpose Acquisition Company	Interest expense		38			—
KB No.27 Special Purpose Acquisition Company	Interest expense		65			—
Nextrade Co., Ltd.	Interest expense		2,911			263
Bitgoeul Cheomdan Green 1st Co., Ltd.	Interest expense		1			—
3D Interactive Co., Ltd.	Fee and commission income		7			—
	Interest expense		10			—
Bigwave Robotics Crop.	Interest income		(1	)		—
	Interest expense		1			—
KBFT Green Growth No.1 New Technology Business Investment Association	Interest expense		14			—
KB No.17 Special Purpose Acquisition Company 1	Interest expense		—			1
KB No.18 Special Purpose Acquisition Company 1	Interest expense		—			5
KB No.19 Special Purpose Acquisition Company 1	Interest expense		—			5
KB No.20 Special Purpose Acquisition Company 1	Interest expense		—			22

186

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
SwatchOn Inc. 1	Fee and commission income		—		5
	Interest expense		—		5
GENINUS Inc. 1	Interest expense		—		12
Others
Retirement pension	Fee and commission income		1,567		1,352
	Interest expense		27		39

¹  Excluded from the Group’s related party as of December 31, 2023.

²  KB Credit Information Co., Ltd. became the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

187

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent
KB Financial Group Inc.	Other assets		45		97
	Deposits		114,336		231,056
	Other liabilities		309,665		828,908
Parent’s subsidiaries
KB Securities Co., Ltd.	Cash and due from financial institutions		6,843		8,116
	Derivative assets		66,731		134,303
	Loans measured at amortized cost (gross amount)		338,290		141,922
	Allowances for credit losses		516		358
	Other assets		7,762		6,186
	Derivative liabilities		53,280		33,258
	Deposits		381,909		863,614
	Provisions		216		36
	Other liabilities 2		28,338		29,440
KB Asset Management Co., Ltd.	Other assets		441		413
	Deposits		11,709		25,950
	Other liabilities 3		1,400		3,911
KB Real Estate Trust Co., Ltd.	Other assets		2		2
	Deposits		23,135		48,600
	Other liabilities 4		2,273		2,276
KB Investment Co., Ltd.	Deposits		66,778		81,064
	Other liabilities		640		707
KB Credit Information Co., Ltd. 7	Deposits		—		13,430
	Other liabilities		—		5,475
KB Data System Co., Ltd.	Other assets		453		317
	Deposits		18,257		20,924
	Other liabilities		7,461		7,381
KB Kookmin Card Co., Ltd.	Loans measured at amortized cost (gross amount)		212,001		197,647
	Allowances for credit losses		969		207
	Other assets		21,085		22,737
	Derivative liabilities		3,018		884
	Deposits		156,578		110,252
	Borrowings		—		3,694
	Provisions		1,589		423
	Other liabilities		69,531		55,132
KB Savings Bank Co., Ltd.	Other liabilities		689		606
KB Capital Co., Ltd.	Loans measured at amortized cost (gross amount)		41,622		45,192
	Allowances for credit losses		209		52
	Other assets		252		594
	Derivative liabilities		29		—
	Deposits		227,893		708,518
	Provisions		163		182
	Other liabilities		2,996		3,067

188

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Insurance Co., Ltd.	Derivative assets		95,728		137,320
	Loans measured at amortized cost (gross amount)		—		18,390
	Allowances for credit losses		—		5
	Other assets		14,537		12,599
	Derivative liabilities		28,401		29,632
	Deposits		142,229		65,231
	Borrowings		—		23,000
	Provisions		33		7
	Other liabilities 5		54,892		18,631
KB Life Insurance Co., Ltd.	Derivative assets		9,714		14,355
	Loans measured at amortized cost (gross amount)		30,271		—
	Allowances for credit losses		19		—
	Other assets		5,848		5,382
	Derivative liabilities		1,228		2,702
	Deposits		13,134		8,567
	Debentures		20,000		30,000
	Provisions		2		224
	Other liabilities 6		50,581		59,974
KB STAR REIT Co., Ltd.	Derivative assets		19,443		—
	Other assets		64		21
	Derivative liabilities		—		8,089
	Deposits		35,975		35,053
	Other liabilities		331		1
KB Hanbando BTL Private Special Asset Fund No.1	Other assets		23		26
KB IDF Infra Private Special Asset Fund 1(FoFs)	Other assets		1		1
KB IDF Infra Private Special Asset Fund 13(FoFs)	Other assets		3		2
	Derivative liabilities		494		—
KB Muni bond Private Securities Fund No.1 (USD)	Other assets		2		2
KB Global Private Real Estate Fund No.1 (FoFs)	Other assets		3		3
KB Global Private Real Estate Fund No.11 (FoFs)	Other assets		1		1
KB Global Private Real Estate Fund No.15	Derivative assets		59		—
	Other assets		3		2
	Derivative liabilities		1,712		—
KB Global Private Real Estate Fund No.17 (FoFs)	Other assets		1		1
KB Global Private Real Estate Fund No.22 (FoFs)	Derivative assets		272		—
KB Global Private Real Estate Fund No.27 (FoFs)	Derivative assets		1,982		—
	Other assets		1		—
KB Global Private Real Estate Fund No.30 (FoFs)	Derivative assets		84		—

189

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Star Office Private Real Estate Feeder Fund No.4	Loans measured at amortized cost (gross amount)		20,000		20,000
	Allowances for credit losses		3		4
	Other assets		13		13
	Deposits		—		215
	Other liabilities		—		4
KB Global Core Bond Securities Feeder Fund(Bond)	Other assets		2		2
KB New Renewable Energy Private Special Asset Fund No.1	Other assets		2		2
KB North America Private Real Estate Debt Fund No.1	Other assets		1		1
	Derivative liabilities		399		51
KB North America Private Real Estate Debt Fund No.3	Derivative assets		—		2,411
	Other assets		3		3
	Derivative liabilities		3,822		—
KB Europe Renewable Private Special Asset Fund No.2 (EUR)(SOC-FoFs)	Other assets		2		1
KB Global Infrastructure Synergy Private Special Asset Fund (Monetary Receivables)	Derivative assets		799		—
	Other assets		1		1
KB BMO Senior Loan Private Special Asset Fund No.1	Other assets		3		3
	Derivative liabilities		—		2,001
KB BMO Senior Loan Private Special Asset Fund No.2(USD)	Other assets		2		2
KB BMO Senior Loan Private Special Asset Fund No.4(USD)	Other assets		2		2
KB BMO Senior Loan Private Special Asset Fund No.5(Loan-FOFs)	Other assets		3		3
	Derivative liabilities		1,846		—
KB New Renewable Green New Deal Private Special Asset No.2	Other assets		3		2
KB Sinansan Line Private Special Asset Fund(SOC)	Other assets		9		7
KB Multi Alpha Plus Private Fund No.1 1	Other assets		—		2
KB MCF Senior Loan Private Special Asset Fund No.3(FoFs)	Other assets		16		6
KB New Deal Innovation Fund	Other assets		3		1
KB Korea Infrastructure Credit Guarantee Private Special Asset No.1	Other assets		3		3
Hanwha Europe Credit Private Fund No.16 (FOF)	Derivative assets		90		—
	Derivative liabilities		644		744
KB Logistics Blind Private Real Estate Fund No.1	Loans measured at amortized cost (gross amount)		52,500		52,500
	Allowances for credit losses		6		2
	Other assets		366		374
KB Aircraft Private Special Asset Fund No.1	Other assets		2		2
	Derivative liabilities		—		5,096
KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond)	Other assets		3		1
KB GK Project Private Special Asset Fund No.3	Other assets		5		5
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) 1	Other assets		—		5
	Derivative liabilities		—		2,891
KB Korea Short Term Premium Private Securities No.26(USD)(Bond) 1	Other assets		—		3
	Derivative liabilities		—		1,839

190

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Korea Short Term Premium Private Securities No.27(USD)(Bond) 1	Other assets		—		5
	Derivative liabilities		—		3,502
KB Korea Short Term Premium Private Securities No.32(USD)(Bond) 1	Derivative Assets		—		5,377
	Other assets		—		5
KB Korea Short Term Premium Private Securities No.33(USD)(Bond) 1	Derivative Assets		—		1,557
KB Korea Short Term Premium Private Securities No.34(USD)(Bond)	Derivative Assets		199		—
KB Korea Short Term Premium Private Securities No.35(USD)(Bond)	Other assets		1		—
	Derivative liabilities		2,386		—
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)	Derivative Assets		746		—
	Other assets		1		—
KB IDF Infra Note Private SpecialAsset Fund 14	Other Assets		3		—
	Derivative liabilities		997		—
KB ASF Infra Private Special Asset Fund(FoFs)	Other assets		1		1
	Derivative liabilities		—		479
KB Duke Private Special Asset Fund	Other assets		1		1
KB Core Blind Private Real Estate Fund No.2	Other assets		1		—
KB Star Reits Private Real Estate Feeder Fund No.1 (FoFs)	Other assets		2		2
KB Star Reits Private Real Estate Feeder Fund No.2 (FoFs)	Other assets		3		4
KB PF Blind Private Real Estate Fund 2	Other assets		1		—
HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A.	Other assets		1		1
NB Private Debt Fund IV LUX (B) SCSP	Other assets		1		1
KB Europe Renewable Private Special Asset Fund No.3	Derivative Assets		99		—
	Other assets		1		—
KB NA Jefferies Private Special Asset Fund 1(USD)(FoFs)	Other assets		2		—
KB Money Market Active ETF (Bond)	Other assets		3		—
KB Renewable Private SpecialAsset Fund 3	Other assets		1		—
KB Europe ICG PDF Private SpecialAsset Fund 4(FoFs)	Derivative Assets		55		—
KB Star Institutional USD MMF1(USD)	Other assets		2		—
KB Senior Loan Private Fund 5-1	Other assets		1		—
KB Core Plus Blind Private RealEstate Fund 1	Other assets		2		—
KB Wise Star Private Real Estate22	Loans measured at amortized cost (gross amount)		38,000		—
	Allowances for credit losses		3		—
	Other assets		350		—
KB Daegu Busan Highway Private Special Asset Fund(SOC)	Other assets		1		—

191

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
Associates
Korea Credit Bureau Co., Ltd.	Deposits		17,003		27,889
Incheon Bridge Co., Ltd.	Financial assets at fair value through profit or loss		33,282		32,948
	Loans measured at amortized cost (gross amount)		80,500		95,200
	Allowances for credit losses		34		8
	Other assets		528		615
	Deposits		40,992		48,639
	Provisions		33		7
	Other liabilities		504		446
Jungdo Co., Ltd.	Deposits		4		4
Dae-A Leisure Co., Ltd.	Deposits		150		154
Iwon Alloy Co., Ltd.	Deposits		1		1
Computerlife Co., Ltd.	Deposits		—		3
Skydigital Inc.	Deposits		65		10
TMAPMOBILITY CO.,LTD.	Deposits		80,016		30,000
	Other liabilities		759		76
KB High-Tech Company Investment Fund	Deposits		2,935		688
	Other liabilities		18		—
Aju Good Technology Venture Fund	Deposits		1,202		7,222
	Other liabilities		1		73
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		46		317
KB Digital Innovation & Growth New Technology Business Investment Fund	Deposits		572		674
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Deposits		—		1,526
	Other liabilities		—		1
KB Global Platform Fund	Deposits		5,774		19,655
	Other liabilities		4		12
WJ Private Equity Fund No.1	Other assets		2		2
	Deposits		103		221
KB Bio Global Expansion Private Equity Fund No.1	Deposits		1,400		1,400
	Other liabilities		10		9
KB Digital Platform Fund	Deposits		—		15,000
	Other liabilities		—		2
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP	Deposits		3,790		—
	Other liabilities		42		—
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10	Loans measured at amortized cost (gross amount)		149,590		149,294
	Allowances for credit losses		5		1
	Other assets		3,191		3,208

192

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
Associates of Parent’s subsidiaries
KG Capital Co., Ltd. 1	Deposits		—		10
RAND Bio Science Co., Ltd.	Deposits		4		3
Food Factory Co., Ltd.	Loans measured at amortized cost (gross amount)		2,133		3,337
	Allowances for credit losses		2		4
	Other assets		5		4
	Deposits		629		664
	Other liabilities		1		1
Paycoms Co., Ltd.1	Deposits		—		1
Big Dipper Co., Ltd.	Deposits		40		19
Spark Biopharma Inc.	Deposits		11,419		17,534
	Other liabilities		90		91
Wyatt Corp.	Deposits		1		1
UPRISE, Inc.	Deposits		—		27
CellinCells Co., Ltd.	Deposits		37		37
Channel Corporation	Deposits		2,030		3,000
	Other liabilities		11		21
COSES GT Co., Ltd.	Loans measured at amortized cost (gross amount)		—		500
	Allowances for credit losses		—		4
	Other assets		—		2
	Deposits		1		1,213
Gomi corporation Inc.	Loans measured at amortized cost (gross amount)		2,150		2,200
	Allowances for credit losses		61		15
	Other assets		5		5
	Deposits		78		915
	Other liabilities		1		1
S&E Bio Co., Ltd.	Deposits		2,342		6,419
	Other liabilities		13		1
4N Inc.	Deposits		49		5
Xenohelix Co., Ltd	Deposits		904		—
Contents First Inc.	Loans measured at amortized cost (gross amount)		10,000		10,017
	Allowances for credit losses		4		1
	Other assets		4		2
	Deposits		1,072		5,010
	Other liabilities		6		21
December & Company Inc. 1	Deposits		—		1
Mantisco Co., Ltd.	Deposits		46		623
Pin Therapeutics Inc.	Deposits		265		6,033
	Other liabilities		—		18
SuperNGine Co., Ltd.	Loans measured at amortized cost (gross amount)		600		—
	Allowances for credit losses		6		—
	Other assets		1		—
	Deposits		69		17

193

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
Desilo Inc.	Loans measured at amortized cost (gross amount)		300		300
	Allowances for credit losses		5		2
	Deposits		3		1
Turing Co., Ltd.	Loans measured at amortized cost (gross amount)		1,901		—
	Allowances for credit losses		14		—
	Other assets		11		—
	Deposits		1,726		2,788
	Other liabilities		6		—
IGGYMOB Co., Ltd.	Deposits		—		254
ZIPDOC Inc.	Deposits		181		915
KB No.21 Special Purpose Acquisition Company	Deposits		2,261		2,263
	Other liabilities		38		29
TeamSparta Inc.	Deposits		7,672		12,502
	Other liabilities		62		6
Chabot Mobility Co., Ltd.	Deposits		164		86
Wemade Connect Co., Ltd.	Deposits		8,843		10,370
	Other liabilities		53		28
KB No.22 Special Purpose Acquisition Company	Deposits		1,848		1,948
KB No.23 Special Purpose Acquisition Company 1	Deposits		—		2,205
	Other liabilities		—		22
KB No.24 Special Purpose Acquisition Company 1	Deposits		—		9,983
	Other liabilities		—		1
KB No.25 Special Purpose Acquisition Company	Deposits		1,586		—
	Other liabilities		39		—
KB No.26 Special Purpose Acquisition Company	Deposits		1,761		—
	Other liabilities		37		—
KB No.27 Special Purpose Acquisition Company	Deposits		4,497		—
	Other liabilities		65		—
Nextrade Co., Ltd.	Deposits		56,203		56,202
	Other liabilities		3,174		263
Bitgoeul Cheomdan Green 1st Co., Ltd.	Deposits		833		—
3D Interactive Co., Ltd.	Deposits		1,501		—
Bigwave Robotics Crop.	Deposits		4		—
New Daegu Busan Expressway Co., Ltd.	Loans measured at amortized cost (gross amount)		72,742		—
	Allowances for credit losses		4		—
	Other assets		57		—
	Deposits		146,169		—
	Other liabilities		1,891		—

194

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
AIM FUTURE, Inc.	Loans measured at amortized cost (gross amount)		900		—
	Allowances for credit losses		2		—
	Other assets		1		—
	Deposits		3,393		—
	Other liabilities		48		—
Novorex Inc.	Deposits		7		—
KBFT Green Growth No.1 New Technology Business Investment Association	Deposits		700		—
	Other liabilities		14		—
Key management personnel	Loans measured at amortized cost (gross amount)		4,119		4,391
	Allowances for credit losses		3		2
	Other assets		6		6
	Deposits		10,308		11,974
	Provisions		2		1
	Other liabilities		289		284
Others
Retirement pension	Other assets		364		778
	Other liabilities		606		10,141

¹  Excluded from the Group’s related parties as of December 31, 2023.

²  Non-controlling interests classified as liabilities include W 1,932 million and W 1,919 million as of December 31, 2023 and 2022, respectively.

³  Non-controlling interests classified as liabilities include W 1,172 million and W 1,077 million as of December 31, 2023 and 2022, respectively.

⁴  Non-controlling interests classified as liabilities include W 1,932 million and W 1,919 million as of December 31, 2023 and 2022, respectively.

⁵  Non-controlling interests classified as liabilities include W 41,449 million and W 5,385 million as of December 31, 2023 and 2022, respectively.

⁶  Non-controlling interests classified as liabilities include W 15,519 million and W 14,978 million as of December 31, 2023 and 2022, respectively.

⁷ KB Credit Information Co., Ltd. become the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

195

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.3 Details of right-of-use assets and lease liabilities with related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent’s subsidiaries
KB Securities Co., Ltd.	Right-of-use assets		18,883		21,927
	Lease liabilities		22,873		26,825
KB Kookmin Card Co., Ltd.	Right-of-use assets		302		108
	Lease liabilities		28		29
KB Insurance Co., Ltd.	Right-of-use assets		21		—
	Lease liabilities		35		—
KB Life Insurance Co., Ltd.	Right-of-use assets		5,028		6,971
	Lease liabilities		5,190		7,021
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10	Right-of-use assets		3,319		3,563
	Lease liabilities		3,496		3,707

196

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent’s subsidiaries
KB Securities Co., Ltd.	Notional amount of derivative financial instruments		2,971,395		2,820,272
KB Kookmin Card Co., Ltd.	Notional amount of derivative financial instruments		128,940		126,730
KB Capital Co., Ltd.	Notional amount of derivative financial instruments		1,448		—
KB Insurance Co., Ltd.	Notional amount of derivative financial instruments		2,214,458		2,192,657
KB Life Insurance Co., Ltd.	Notional amount of derivative financial instruments		293,253		316,557
KB STAR REIT Co., Ltd.	Notional amount of derivative financial instruments		444,139		420,280
KB IDF Infra Private Special Asset Fund 13(FoFs)	Notional amount of derivative financial instruments		27,771		—
KB Global Private Real Estate Fund No.15	Notional amount of derivative financial instruments		57,537		—
KB Global Private Real Estate Fund No.22 (FoFs)	Notional amount of derivative financial instruments		8,772		—
KB Global Private Real Estate Fund No.27 (FoFs)	Notional amount of derivative financial instruments		39,851		—
KB Global Private Real Estate Fund No.30 (FoFs)	Notional amount of derivative financial instruments		3,491		—
KB North America Private Real Estate Debt Fund No.1	Notional amount of derivative financial instruments		32,235		31,683
KB North America Private Real Estate Debt Fund No.3	Notional amount of derivative financial instruments		106,376		104,552
KB Global Infrastructure Synergy Private Special Asset Fund (Monetary Receivables)	Notional amount of derivative financial instruments		44,004		—
KB BMO Senior Loan Private Special Asset Fund No.1	Notional amount of derivative financial instruments		—		38,112
KB BMO Senior Loan Private Special Asset Fund No.5 (Loan-FOFs)	Notional amount of derivative financial instruments		96,806		—
Hanwha Europe Credit Private Fund No.16 (FOF)	Notional amount of derivative financial instruments		41,669		35,081
KB Aircraft Private Special Asset Fund No.1	Notional amount of derivative financial instruments		—		123,949
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) *	Notional amount of derivative financial instruments		—		51,554
KB Korea Short Term Premium Private Securities No.26(USD)(Bond) *	Notional amount of derivative financial instruments		—		38,653
KB Korea Short Term Premium Private Securities No.27(USD)(Bond) *	Notional amount of derivative financial instruments		—		64,632
KB Korea Short Term Premium Private Securities No.32(USD)(Bond) *	Notional amount of derivative financial instruments		—		103,538

197

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Korea Short Term Premium Private Securities No.33(USD)(Bond) *	Notional amount of derivative financial instruments		—		54,494
KB Korea Short Term Premium Private Securities No.34(USD)(Bond)	Notional amount of derivative financial instruments		39,842		—
KB Korea Short Term Premium Private Securities No.35(USD)(Bond)	Notional amount of derivative financial instruments		40,745		—
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)	Notional amount of derivative financial instruments		41,196		—
KB IDF Infra Note Private SpecialAsset Fund 14	Notional amount of derivative financial instruments		56,051		—
KB ASF Infra Private Special Asset Fund(FoFs)	Notional amount of derivative financial instruments		—		6,011
KB Europe Renewable Private Special Asset Fund No.3	Notional amount of derivative financial instruments		8,794		—
KB Europe ICG PDF Private SpecialAsset Fund 4(FoFs)	Notional amount of derivative financial instruments		11,413		—

* Excluded from the Group’s related parties as of December 31, 2023.

198

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.5 Details of significant lending transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

	2023 1
(In millions of Korean won)	Beginning		Loan		Collection		Others			Ending
Parent’s subsidiaries
KB Securities Co., Ltd.		141,922		1,451,347		1,255,162		183			338,290
KB Insurance Co., Ltd.		18,390		13,862		984		(31,268	)		—
KB Life Insurance Co., Ltd.		—		4		1,979		32,246			30,271
KB Kookmin Card Co., Ltd.		197,647		198,305		164,935		(19,016	)		212,001
KB Capital Co., Ltd.		45,192		35,411		40,963		1,982			41,622
KB Star Office Private Real Estate Feeder Fund No.4		20,000		—		—		—			20,000
KB Logistics Blind Private Real Estate Fund No.1		52,500		—		—		—			52,500
KB Wise Star Private Real Estate 22		—		—		—		38,000			38,000
Associates
Incheon Bridge Co., Ltd.		128,148		—		14,700		334			113,782
TAEYEONG PRECISION IND. CO.,LTD		—		—		46		46			—
Youngwon Corporation 3		—		306		4,793		4,487			—
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10		149,294		—		—		296			149,590
Associates of Parent’s subsidiaries
Food Factory Co., Ltd.		3,337		400		1,603		(1	)		2,133
COSES GT Co., Ltd.		500		—		500		—			—
Gomi corporation Inc.		2,200		—		50		—			2,150
Desilo Inc.		300		—		—		—			300
Contents First Inc.		10,017		—		—		(17	)		10,000
SuperNGine Co., Ltd.		—		600		—		—			600
Turing Co., Ltd.		—		1,900		—		1			1,901
New Daegu Busan Expressway Co., Ltd.		—		—		—		72,742			72,742
AIM FUTURE, Inc.		—		—		—		900			900
Key management personnel 2		4,391		2,928		3,471		271			4,119

199

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.5 Details of significant lending transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022 1
(In millions of Korean won)	Beginning		Loan		Collection		Others			Ending
Parent’s subsidiaries
KB Securities Co., Ltd.		124,527		1,035,932		1,003,576		(14,961	)		141,922
KB Insurance Co., Ltd.		17,958		475		3		(40	)		18,390
KB Kookmin Card Co., Ltd.		71,130		270,676		147,431		3,272			197,647
KB Capital Co., Ltd.		71,130		9,708		41,709		6,063			45,192
KB Star Office Private Real Estate Feeder Fund No.4		20,000		—		—		—			20,000
KB Logistics Blind Private Real Estate Fund No.1		—		52,500		—		—			52,500
Associates
Incheon Bridge Co., Ltd.		151,482		—		18,900		(4,434	)		128,148
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10		—		150,000		—		(706	)		149,294
Associates of Parent’s subsidiaries
Food Factory Co., Ltd.		3,545		1,500		1,707		(1	)		3,337
COSES GT Co., Ltd.		500		—		—		—			500
Gomi corporation Inc.		2,200		—		—		—			2,200
Desilo Inc.		301		—		—		(1	)		300
Contents First Inc.		—		10,000		—		17			10,017
Key management personnel 2		3,252		1,041		2,038		2,136			4,391

¹ Transactions between related parties, such as settlements arising from operating activities and daylight overdraft to be repaid on the day of handling, are excluded.

²  Includes loan transactions that occurred before they became related parties.

³  Excluded from the Group’s related parties as of December 31, 2023.

200

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

		2023
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Parent
KB Financial Group Inc.	Deposits		231,056		800,000		800,000		(116,720	)		114,336
Parent’s subsidiaries
KB Securities Co., Ltd.	Deposits		863,614		235,095		222,389		(494,411	)		381,909
KB Asset Management Co., Ltd.	Deposits		25,950		—		—		(14,241	)		11,709
KB Real Estate Trust Co., Ltd.	Deposits		48,600		—		—		(25,465	)		23,135
KB Investment Co., Ltd.	Deposits		81,064		181,800		187,800		(8,286	)		66,778
KB Credit Information Co., Ltd. 4	Deposits		13,430		14,233		14,040		(13,623	)		—
KB Data System Co., Ltd.	Deposits		20,924		11,336		12,714		(1,289	)		18,257
KB Kookmin Card Co., Ltd.	Deposits		110,252		22,836		22,809		46,299			156,578
	Borrowing		3,694		22,000		22,000		(3,694	)		—
KB Capital Co., Ltd.	Deposits		708,518		2,600		—		(483,225	)		227,893
KB Insurance Co., Ltd.	Deposits		65,231		401		2,937		79,534			142,229
	Borrowing		23,000		150		—		(23,150	)		—
KB Life Insurance Co., Ltd.	Deposits		8,567		—		—		4,567			13,134
	Debenture		30,000		—		—		(10,000	)		20,000
KB Star Office Private Real Estate Master Fund No.4	Deposits		215		—		215		—			—
KB STAR REIT Co., Ltd.	Deposits		35,053		95,000		76,500		(17,578	)		35,975
Associates
Korea Credit Bureau Co., Ltd.	Deposits		27,889		—		—		(10,886	)		17,003
Incheon Bridge Co., Ltd.	Deposits		48,639		67,100		76,017		1,270			40,992
Jungdo Co., Ltd.	Deposits		4		—		—		—			4
Dae-A Leisure Co., Ltd.	Deposits		154		—		—		(4	)		150
Iwon Alloy Co., Ltd.	Deposits		1		—		—		—			1
Computerlife Co., Ltd.	Deposits		3		—		—		(3	)		—
Skydigital Inc.	Deposits		10		—		—		55			65
KB High-Tech Company Investment Fund	Deposits		688		2,818		—		(571	)		2,935
Aju Good Technology Venture Fund	Deposits		7,222		1,323		7,900		557			1,202
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		317		—		—		(271	)		46
KB Digital Innovation & Growth New Technology Business Investment Fund	Deposits		674		—		—		(102	)		572
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Deposits		1,526		—		—		(1,526	)		—
KB Global Platform Fund	Deposits		19,655		—		—		(13,881	)		5,774
WJ Private Equity Fund No.1	Deposits		221		—		—		(118	)		103
TMAPMOBILITY CO.,LTD.	Deposits		30,000		170,000		120,000		16			80,016

201

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2023
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
KB Bio Global Expansion Private Equity Fund No.1	Deposits		1,400		5,600		5,600		—			1,400
KB Digital Platform Fund	Deposits		15,000		14,000		29,000		—			—
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP	Deposits		—		3,983		—		(193	)		3,790
Associates of Parent’s subsidiaries
RAND Bio Science Co., Ltd.	Deposits		3		—		—		1			4
Food Factory Co., Ltd.	Deposits		664		—		—		(35	)		629
Paycoms Co., Ltd. 2	Deposits		1		—		—		(1	)		—
Big Dipper Co., Ltd.	Deposits		19		—		—		21			40
Spark Biopharma Inc.	Deposits		17,534		26,369		30,779		(1,705	)		11,419
Wyatt Corp.	Deposits		1		—		—		—			1
UPRISE, Inc.	Deposits		27		—		—		(27	)		—
CellinCells Co., Ltd.	Deposits		37		—		—		—			37
COSES GT Co., Ltd.	Deposits		1,213		—		—		(1,212	)		1
KB No.21 Special Purpose Acquisition Company	Deposits		2,263		2,050		2,000		(52	)		2,261
KB No.22 Special Purpose Acquisition Company	Deposits		1,948		—		—		(100	)		1,848
KB No.23 Special Purpose Acquisition Company 2	Deposits		2,205		2,089		4,223		(71	)		—
KB No.24 Special Purpose Acquisition Company 2	Deposits		9,983		—		—		(9,983	)		—
KB No.25 Special Purpose Acquisition Company	Deposits		—		1,500		—		86			1,586
KB No.26 Special Purpose Acquisition Company	Deposits		—		1,670		—		91			1,761
KB No.27 Special Purpose Acquisition Company	Deposits		—		4,390		—		107			4,497
Gomi corporation Inc.	Deposits		915		—		—		(837	)		78
S&E Bio Co., Ltd.	Deposits		6,419		2,500		2,000		(4,577	)		2,342
4N Inc.	Deposits		5		—		—		44			49
Contents First Inc.	Deposits		5,010		6,000		10,000		62			1,072
December & Company Inc. 2	Deposits		1		—		—		(1	)		—
Mantisco Co., Ltd.	Deposits		623		—		—		(577	)		46
Pin Therapeutics Inc.	Deposits		6,033		7,217		12,017		(968	)		265
SuperNGine Co., Ltd.	Deposits		17		—		—		52			69
Desilo Inc.	Deposits		1		1		—		1			3
Turing Co., Ltd.	Deposits		2,788		700		—		(1,762	)		1,726
IGGYMOB Co., Ltd.	Deposits		254		—		—		(254	)		—
ZIPDOC Inc.	Deposits		915		—		—		(734	)		181
TeamSparta Inc.	Deposits		12,502		7,000		8,000		(3,830	)		7,672
Chabot Mobility Co., Ltd.	Deposits		86		—		—		78			164
Wemade Connect Co., Ltd.	Deposits		10,370		31,000		30,217		(2,310	)		8,843
Channel Corporation	Deposits		3,000		7,000		8,000		30			2,030
Nextrade Co., Ltd.	Deposits		56,202		—		—		1			56,203
KG Capital Co., Ltd 2	Deposits		10		—		—		(10	)		—

202

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2023
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Bitgoeul Cheomdan Green 1st Co., Ltd.	Deposits		—		—		—		833			833
KBFT Green Growth No.1 New Technology Business Investment Association	Deposits		—		700		—		—			700
Bigwave Robotics Crop.	Deposits		—		—		—		4			4
3D Interactive Co., Ltd.	Deposits		—		2,000		2,000		1,501			1,501
AIM FUTURE, Inc.	Deposits		—		3,000		—		393			3,393
New Daegu Busan Expressway Co., Ltd.	Deposits		—		—		—		146,169			146,169
Novorex Inc.	Deposits		—		—		—		7			7
Xenohelix Co., Ltd	Deposits		—		—		—		904			904
Key management personnel 3	Deposits		11,974		16,979		14,879		(3,766	)		10,308

203

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2022
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Parent
KB Financial Group Inc.	Deposits		518,076		950,000		950,000		(287,020	)		231,056
Parent’s subsidiaries
KB Securities Co., Ltd.	Deposits		535,130		109,580		75,000		293,904			863,614
KB Asset Management Co., Ltd.	Deposits		13,206		—		—		12,744			25,950
KB Real Estate Trust Co., Ltd.	Deposits		103,329		—		—		(54,729	)		48,600
KB Investment Co., Ltd.	Deposits		100,338		195,000		203,000		(11,274	)		81,064
KB Credit Information Co., Ltd. 4	Deposits		4,536		5,599		1,425		4,720			13,430
KB Data System Co., Ltd.	Deposits		17,999		10,714		12,744		4,955			20,924
KB Life Insurance Co., Ltd. 5	Deposits		2,608		—		—		(1,820	)		788
KB Kookmin Card Co., Ltd.	Deposits		81,641		22,000		26,742		33,353			110,252
	Borrowings		3,492		22,000		22,000		202			3,694
KB Capital Co., Ltd.	Deposits		219,312		—		—		489,206			708,518
KB Insurance Co., Ltd.	Deposits		7,854		1,537		1,828		57,668			65,231
	Borrowings		23,000		—		—		—			23,000
	Debentures		29,998		—		30,000		2			—
Prudential Life Insurance Company of Korea Ltd., 6	Deposits		7,634		—		—		145			7,779
	Debentures		30,000		—		—		—			30,000
KB Star Office Private Real Estate Master Fund No.3	Deposits		171		—		171		—			—
KB Star Office Private Real Estate Feeder Fund No.4	Deposits		532		—		318		1			215
KB STAR REIT Co., Ltd.	Deposits		—		—		—		35,053			35,053
Associates
Korea Credit Bureau Co., Ltd.	Deposits		10,200		—		—		17,689			27,889
Incheon Bridge Co., Ltd.	Deposits		35,487		29,217		15,000		(1,065	)		48,639
Jungdo Co., Ltd.	Deposits		4		—		—		—			4
Dae-A Leisure Co., Ltd.	Deposits		17		—		—		137			154
Iwon Alloy Co., Ltd.	Deposits		—		—		—		1			1
Computerlife Co., Ltd.	Deposits		—		—		—		3			3
Skydigital Inc.	Deposits		85		—		—		(75	)		10
Jo Yang Industrial Co., Ltd.	Deposits		1		—		—		(1	)		—
KB High-Tech Company Investment Fund	Deposits		1,504		—		—		(816	)		688
Aju Good Technology Venture Fund	Deposits		6,286		6,577		3,840		(1,801	)		7,222
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		904		—		—		(587	)		317
KB Digital Innovation & Growth New Technology Business Investment Fund	Deposits		2,088		—		—		(1,414	)		674

204

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2022
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Deposits		1,524		—		—		2			1,526
KB Global Platform Fund	Deposits		26,823		—		—		(7,168	)		19,655
WJ Private Equity Fund No.1	Deposits		260		—		—		(39	)		221
TMAPMOBILITY CO.,LTD.	Deposits		—		80,000		50,000		—			30,000
KB Bio Global Expansion Private Equity Fund No.1	Deposits		—		1,400		—		—			1,400
KB Global Platform Fund	Deposits		—		59,000		44,000		—			15,000
Associate of Parent
KB Star Office Private Real Estate Investment Trust No.1 2	Deposits		2,578		—		2,578		—			—
Associates of Parent’s subsidiaries
KG Capital Co., Ltd. 2	Deposits		17		—		—		(7	)		10
RAND Bio Science Co., Ltd.	Deposits		443		—		—		(440	)		3
Food Factory Co., Ltd.	Deposits		839		511		1,018		332			664
Acts Co., Ltd. 2	Deposits		154		—		—		(154	)		—
Paycoms Co., Ltd. 2	Deposits		1		—		—		—			1
Big Dipper Co., Ltd.	Deposits		—		300		300		19			19
Spark Biopharma Inc.	Deposits		6,015		41,165		27,539		(2,107	)		17,534
Wyatt Corp.	Deposits		1		—		—		—			1
UPRISE, Inc.	Deposits		4,001		—		—		(3,974	)		27
CellinCells Co., Ltd.	Deposits		38		—		—		(1	)		37
COSES GT Co., Ltd.	Deposits		1,939		—		—		(726	)		1,213
KB No.17 Special Purpose Acquisition Company 2	Deposits		1,687		—		1,546		(141	)		—
KB No.18 Special Purpose Acquisition Company 2	Deposits		2,077		—		2,016		(61	)		—
KB No.19 Special Purpose Acquisition Company 2	Deposits		1,013		—		1,000		(13	)		—
KB No.20 Special Purpose Acquisition Company 2	Deposits		1,681		—		1,534		(147	)		—
KB No.21 Special Purpose Acquisition Company	Deposits		—		2,000		—		263			2,263
KB No.22 Special Purpose Acquisition Company	Deposits		—		—		—		1,948			1,948
KB No.23 Special Purpose Acquisition Company 2	Deposits		—		2,133		—		72			2,205
SwatchOn Inc. 2	Deposits		686		—		—		(686	)		—
Gomi corporation Inc.	Deposits		3,188		—		—		(2,273	)		915
S&E bio Co., Ltd.	Deposits		263		50		—		6,106			6,419
4N Inc.	Deposits		39		—		—		(34	)		5

205

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2022
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Contents First Inc.	Deposits		12,650		10,000		16,000		(1,640	)		5,010
December & Company Inc. 2	Deposits		1		—		—		—			1
GENINUS Inc. 2	Deposits		34,415		—		—		(34,415	)		—
Mantisco Co., Ltd.	Deposits		386		—		—		237			623
Pin Therapeutics Inc.	Deposits		—		21,000		16,200		1,233			6,033
G1 Playground Co., Ltd.	Deposits		354		—		—		(354	)		—
SuperNGine Co., Ltd.	Deposits		944		—		—		(927	)		17
Desilo Inc.	Deposits		168		—		—		(167	)		1
Turing Co., Ltd.	Deposits		1,054		—		—		1,734			2,788
IGGYMOB Co., Ltd.	Deposits		2,938		—		—		(2,684	)		254
KB Pre IPO Secondary Venture Fund No.1 2	Deposits		103		—		—		(103	)		—
ZIPDOC Inc.	Deposits		—		—		—		915			915
TeamSparta Inc.	Deposits		—		9,000		4,000		7,502			12,502
Chabot Mobility Co., Ltd.	Deposits		—		—		—		86			86
Wemade Connect Co., Ltd.	Deposits		—		11,010		3,267		2,627			10,370
Wise Asset Management Co., Ltd 2	Deposits		—		6		6		—			—
Channel Corporation	Deposits		—		6,000		3,000		—			3,000
KB No.24 Special Purpose Acquisition Company Co., Ltd. 2	Deposits		—		—		—		9,983			9,983
Nextrade Co., Ltd.	Deposits		—		56,200		—		2			56,202
Key management personnel 3	Deposits		11,757		14,214		12,345		(1,652	)		11,974

¹ Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount.

²  Excluded from the Group’s related parties as of December 31, 2023.

³ Includes borrowing transactions that occurred before they became related parties.

⁴ KB Credit Information Co., Ltd. became the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

⁵  KB Life Insurance Co., Ltd. merged with KB Life Insurance Co., Ltd. and extinguished on January, 2023.

⁶ Prudential Life Insurance Company of Korea Ltd. changed the name to KB Life Insurance Co., Ltd.

206

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Parent’s subsidiaries
KB Investment Co., Ltd.		—		66
KB Hanbando BTL Private Special Asset Fund No.1		—		19,584
KB Hope Sharing BTL Private Special Asset Fund		—		1,297
KB Star Office Private Real Estate Master Fund No.3		—		3,414
KB Star Office Private Real Estate Feeder Fund No.4		—		2,690
KB New Renewable Energy Private Special Asset Fund No.1		—		1,787
KB Mezzanine Private Securities Fund No.3		—		1,200
Koreit BN Private Equity Fund		—		3,308
KB Europe Renewable Private Special Asset Fund No.2 (EUR)(SOC-FoFs)		92		2,428
KB BMO Senior Loan Private Special Asset Fund No.2(USD)		—		5,573
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) *		—		50,275
KB Korea Short Term Premium Private Securities No.26(USD)(Bond) *		—		37,620
KB Korea Short Term Premium Private Securities No.27(USD)(Bond) *		—		65,082
KB Sinansan Line Private Special Asset Fund(SOC)		29,294		5,082
KB New Renewable Green New Deal Private Special Asset No.2		1,932		2,109
KB Multi Alpha Plus Private Fund No.1 *		—		9,661
KB MCF Senior Loan Private Special Asset Fund No.3(FoFs)		917		5,660
KB New Deal Infra Private Special Asset Fund		3,811		568
KB Logistics Blind Private Real Estate Fund No.1		—		1,412
KB GK Project Private Special Asset Fund No.3		—		22,217
KB BMO Senior Loan Private Special Asset Fund No.4(USD)		—		3,363
KB Star Reits Private Real Estate Feeder Fund No.2 (FoFs)		—		4,644
KB Korea Short Term Premium Private Securities No.32(USD)(Bond) *		—		106,271
KBSTAR Nov2023 Term Credit ETF *		9,695		200,152
KB Korea Short Term Premium Private Securities No.33(USD)(Bond) *		—		56,889
KB Korea Short Term Premium Private Securities No.34(USD)(Bond)		—		30,148
KB Korea Short Term Premium Private Securities No.35(USD)(Bond)		36,942		—
KB KBSTAR FKTB 10Y Futures ETF *		5,030		28,081
KBSTAR Nov2025 Term Credit ETF		—		1,705
KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative) *		7,002		70,130
KB Money Market Active ETF (Bond)		599,679		301,032
KB NA Jefferies Private SpecialAsset Fund 1		26,579		537
KB Scale Up Fund II		4,500		—
KB Renewable Private SpecialAsset Fund 3		12,132		24
KB Star Institutional USD MMF1(USD)		39,765		—
KB Senior Loan Private Fund 5-1		42,509		59
KB Mezzanine Capital 4th Private Equity Fund		29,176		11,350
KB Core Plus Blind Private RealEstate Fund 1		58,068		—
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)		40,296		—
KB Daegu Busan Highway Private Special Asset Fund(SOC)		119,660		—

207

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2023
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Associates
Korea Credit Bureau Co., Ltd.		—		90
Future Planning KB Start-up Creation Fund		—		3,600
KB High-tech Company Investment Fund		—		2,900
Aju Good Technology Venture Fund		—		11,377
KB-TS Technology Venture Private Equity Fund		—		360
KB Digital Innovation Investment Fund Limited Partnership		—		2,345
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		—		6,600
KB SPROTT Renewable Private Equity Fund No.1		—		476
KB-UTC Inno-Tech Venture Fund		—		1,500
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		—		300
KB Smart Scale Up Fund		7,000		—
KB-KTB Technology Venture Fund		3,000		—
KB Digital Platform Fund		23,800		—
KB-SOLIDUS Healthcare Investment Fund		7,700		—
KB New Deal Innovation Fund		6,400		—
KB Prime Digital Platform Fund		4,550		—
KB Global Platform Fund No.2		12,000		—
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		27,034		—
Associate of Parent
Balhae Infrastructure Company		—		10,661
Hahn & Company No. 4-3 Private Equity Fund *		4,489		20
Associates of Parent’s subsidiaries
KB-Stonebridge Secondary Private Equity Fund		—		4,206
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		600		970
KB Co-Investment Private Equity Fund No.1		1,920		—
KB-NP Green ESG New Technology Venture Capital Fund		3,330		—
KB-Badgers Future Mobility ESG Fund No.1		2,462		—

208

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Parent’s subsidiaries
KB Hanbando BTL Private Special Asset Fund No.1		—		19,510
KB Hope Sharing BTL Private Special Asset Fund		—		1,416
KB Intellectual Property Fund		—		180
KB Star Office Private Real Estate Master Fund No.3		—		3,276
KB Star Office Private Real Estate Feeder Fund No.4		—		2,412
KB Global Core Bond Securities Feeder Fund(Bond)		—		42,737
KB New Renewable Energy Private Special Asset Fund No.1		3,492		1,794
KB Mezzanine Private Securities Fund No.3		—		16,240
KB Wise Star Jongno Tower Real Estate Master Fund *		—		112,639
Koreit BN Private Equity Fund		—		2,440
KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs)		2,452		2,746
KB BMO Senior Loan Private Special Asset Fund No.2(USD)		—		2,092
KB Korea Short Term Premium Private Securities No.19(USD)(Bond) *		—		23,985
KB Korea Short Term Premium Private Securities No.21(USD)(Bond) *		—		36,102
KB Korea Short Term Premium Private Securities No.22(USD)(Bond) *		—		24,433
KB Korea Short Term Premium Private Securities No.23(USD)(Bond) *		—		85,433
KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) *		47,672		—
KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) *		35,910		—
KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) *		59,980		—
KB Korea Short Term Premium Private Securities Fund No.28(USD)(Bond) *		95,368		108,180
KB Sinansan Line Private Special Asset Fund(SOC)		31,808		2,490
KB New Renewable Green New Deal Private Special Asset No.2		22,350		1,447
KB Multi Alpha Plus Private Fund No.1 *		—		400
KB MCF Senior Loan Private Special Asset Fund No.3(FoFs)		20,703		1,959
KB New Deal Infra Private Special Asset Fund		10,199		77
KB Logistics Blind Private Real Estate Fund No.1		25,812		1,463
KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond)		50,000		48,800
KB GK Project Private Special Asset Fund No.3		—		89,410
KB BMO Senior Loan Private Special Asset Fund No.4(USD)		38,828		404
KB Core Blind Private Real Estate Fund No.2		5,107		—
KB Star Reits Private Real Estate Feeder Fund No.2		65,000		—
KB KBSTAR US Short-Term IG Corporate Bond ETF		20,000		—
KB Korea Short Term Premium Private Securities Fund No.32 *		107,312		—
KB KBSTAR Nov 2023 Term Credit ETF *		180,581		—
KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) *		52,816		—
KB Korea Short Term Premium Private Securities Fund No.34(USD)(Bond)		63,420		—

209

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
((In millions of Korean won)	Equity investment and others		Withdrawal and others
Associates
Future Planning KB Start-up Creation Fund		—		1,700
KB High-Tech Company Investment Fund		—		1,300
Aju Good Technology Venture Fund		—		5,400
KB-KDBC Pre-IPO New Technology Business Investment Fund		—		2,600
KB-TS Technology Venture Private Equity Fund		—		2,430
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		—		6,400
KB SPROTT Renewable Private Equity Fund No.1		9,748		—
KB Global Platform Fund		8,000		6,150
KB Smart Scale Up Fund		12,000		—
KB-KTB Technology Venture Fund		6,000		—
KB Digital Platform Fund		14,000		—
KB-SOLIDUS Healthcare Investment Fund		6,000		—
KB New Deal Innovation Fund		9,600		—
TMAPMOBILITY CO.,LTD.		200,000		—
KB Prime Digital Platform Fund		2,600		—
KB Scale Up Fund II		4,500		—
Associate of Parent
KB Star Office Private Real Estate Investment Trust No.1 *		—		42,118
Balhae Infrastructure Company		—		21,177
Associate of Parent’s subsidiaries
KB-Stonebridge Secondary Private Equity Fund		2,497		2,409
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		440		2,044
KB Co-Investment Private Equity Fund No.1		6,320		—
KB-NP Green ESG New Technology Venture Capital Fund		2,805		—

* Excluded from the Group’s related parties as of December 31, 2023.

210

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent’s subsidiaries
KB Securities Co., Ltd.	Loan commitments in Korean won		140,000		140,000
	Other commitments in foreign currency		16,726		—
KB Investment Co., Ltd.	Purchase of securities		21,000		—
	Loss sharing agreements		1,000		1,000
KB Kookmin Card Co., Ltd.	Loan commitments in Korean won		820,000		820,000
	Other commitments in Korean won		1,700,000		1,700,000
	Other commitments in foreign currency		105,777		44,515
KB Capital Co., Ltd.	Loan commitments in foreign currency		11,605		—
	Other commitments in foreign currency		27,056		40,381
KB Insurance Co., Ltd.	Loan commitments in Korean won		20,000		20,528
KB Life Insurance Co., Ltd.	Loan commitments in Korean won		1,000		100,000
KB New Renewable Energy Private Special Asset Fund No.1	Purchase of securities		—		3,010
KB Mezzanine Private Securities Fund No.3	Purchase of securities		—		8,006
KB Europe Renewable Private Special Asset Fund No.2 (EUR)(SOC-FoFs)	Purchase of securities		1,985		1,968
KB Global Infra Private Special Asset Fund No.5	Purchase of securities		—		24,999
KB Global Infra Private Special Asset Fund No.6	Purchase of securities		10,999		24,999
KB BMO Senior Loan Private Special Asset Fund No.2(USD)	Purchase of securities		15		29
KB New Renewable Green New Deal Private Special Asset No.2	Purchase of securities		3,369		5,301
KB Sinansan Line Private Special Asset Fund(SOC)	Purchase of securities		171,695		200,988
KB MCF Senior Loan Private Special Asset Fund No.3(FoFs)	Purchase of securities		4,438		3,554
KB New Deal Infra Private Special Asset Fund	Purchase of securities		3,681		7,492
KB GK Project Private Special Asset Fund No.3	Purchase of securities		23		23
KB Core Blind Private Real Estate Fund No.2	Purchase of securities		25,607		94,893
KB Mezzanine Capital 4th Private Equity Fund	Purchase of securities		42,046		—
KB Smart Scale Up Fund No.2	Purchase of securities		—		25,500
KB NA Jefferies Private Special Asset Fund 1	Purchase of securities		22,373		—
KB Senior Loan Private Fund 5-1	Purchase of securities		37,491		—

211

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Daegu Busan Highway Private Special Asset Fund(SOC)	Purchase of securities		40		—
Associates
Incheon Bridge Co., Ltd.	Loan commitments in Korean won		20,000		20,000
KB SPROTT Renewable Private Equity Fund No.1	Purchase of securities		—		5,140
All Together Korea Fund No.2 (Stock-FoFs)	Purchase of securities		990,000		990,000
KB Smart Scale Up Fund	Purchase of securities		—		7,000
KB-KTB Technology Venture Fund	Purchase of securities		3,000		6,000
KB Digital Platform Fund	Purchase of securities		89,600		113,400
KB-SOLIDUS Healthcare Investment Fund	Purchase of securities		15,700		23,400
KB New Deal Innovation Fund	Purchase of securities		—		6,400
KB Prime Digital Platform Fund	Purchase of securities		5,850		10,400
KB Global Platform Fund No.2	Purchase of securities		38,000		—
Associate of Parent
Balhae Infrastructure Company	Purchase of securities		6,154		6,154
Hahn & Company No. 4-3 Private Equity Fund *	Purchase of securities		45,511		—
Associates of Parent’s subsidiaries
TeamSparta Inc.	Loan commitments in Korean won		1,000		—
KB-Stonebridge Secondary Private Equity Fund	Purchase of securities		691		691
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Purchase of securities		4,496		5,096
KB Co-Investment Private Equity Fund No.1	Purchase of securities		11,760		13,680
KB-Badgers Future Mobility ESG Fund No.1	Purchase of securities		16,588		19,050
KB-NP Green ESG New Technology Venture Capital Fund	Purchase of securities		8,865		12,195
Key management personnel	Loan commitments in Korean won		1,442		833

* Excluded from the Group’s related parties as of December 31, 2023.

212

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.9 Acceptances and guarantees and unused commitments provided by related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent’s subsidiaries
KB Investment Co., Ltd.	Loss sharing agreements		7,219		7,008
KB Real Estate Trust Co., Ltd.	Purchase of securities		—		19
KB Securities Co., Ltd.	Purchase of securities		—		19
KB Life Insurance Co., Ltd.	Purchase of securities		—		95
KB Kookmin Card Co., Ltd.	Loan commitment in Korean won		71,708		82,354

41.10 Details of compensation to key management personnel for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Short-term employee benefits		Post- employment benefits		Share-based payments		Total
Registered directors (executive)		1,908		70		1,702		3,680
Registered directors (non-executive)		416		—		—		416
Non-registered directors		11,319		444		9,115		20,878
		13,643		514		10,817		24,974

	2022
(In millions of Korean won)	Short-term employee benefits		Post- employment benefits		Share-based payments		Total
Registered directors (executive)		1,963		44		1,034		3,041
Registered directors (non-executive)		420		—		—		420
Non-registered directors		9,801		344		7,563		17,708
		12,184		388		8,597		21,169

41.11 Major types of transactions between the Group and the related parties include deposit taking transactions, loan transactions such as general purpose loans, corporate purchase loans, B2B loans, etc., settlements of funds arising from overseas remittances, providing credit lines through the acceptance of letters of credit issued by the Bank, and overdraft accounts arising from net settlement agreement between the Bank and KB Kookmin Card Co., Ltd.

213

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.12 Details of collateral provided to related parties as of December 31, 2023 and 2022, are as follows:

			December 31, 2023				December 31, 2022
(In millions of Korean won)	Assets pledged *		Carrying amount		Collateralized amount		Carrying amount		Collateralized amount
Parent’s subsidiaries
KB Securities Co., Ltd.		Securities		77,073		77,000		62,209		62,000
KB Life Insurance Co., Ltd.		Securities		25,431		25,000		25,425		25,000
KB Insurance Co., Ltd.		Securities		50,000		50,000		47,745		50,000

* Collaterals related to lease contracts arising from operating activities between related parties are excluded.

41.13 Details of collateral provided by related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Assets held as collateral 1	December 31, 2023		December 31, 2022
Parent’s subsidiaries
KB Securities Co., Ltd.	Time deposits /Beneficiary right certificate		167,000		167,000
	Securities		71,244		129,196
	Real estate		150,600		—
KB Life Insurance Co., Ltd.	Securities		29,629		138,159
	Real estate		40,638		—
KB Kookmin Card Co., Ltd.	Time deposits		24,421		22,000
KB Insurance Co., Ltd.	Securities		165,000		250,000
	Real estate		—		24,570
KB Credit Information Co., Ltd. 2	Time deposits and others		—		2,228
KB Star Office Private Real Estate Feeder Fund No.4	Real estate		24,000		24,000
KB Logistics Blind Private Real Estate Fund No.1	Real estate		63,000		63,000
Key management personnel	Time deposits and others		638		457
	Real estate		4,892		5,165

¹  Collaterals related to lease contracts arising from operating activities between related parties are excluded.

²  KB Credit Information Co., Ltd. became the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

As of December 31, 2023, Incheon Bridge Co., Ltd., a related party, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to W 611,000 million to the project financing group consisting of the Bank and 5 other institutions, and as subordinated collateral amounting to W 384,800 million to subordinated debt holders consisting of the Bank and 2 other institutions. Also, it provides certificate of credit guarantees amounting to W 400,000 million as collateral to the project financing group consisting of the Bank and 5 other institutions.

214

Kookmin Bank and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

41.14 The amounts of debt securities and others purchased through KB securities Co., Ltd. are W 8,337,915 million and W 7,341,904 million for the years ended December 31, 2023 and 2022, respectively, and the amounts of debt securities and others sold through KB securities Co., Ltd. are W 6,000,690 million and W 3,791,778 million for the years ended December 31, 2023 and 2022, respectively. In addition, KB Securities Co., Ltd. acquired W 100,000 million and W 50,000 million of debentures issued by the Bank through underwriting for the years ended December 31, 2023 and 2022, respectively.

41.15 The amounts of bonds sold by Kookmin Bank through KB Insurance Co., Ltd. are W 49,629 million won for the years ended December 31, 2023.

41.16 The amounts of intangible assets and others purchased from KB Data System Co., Ltd. are W 16,918 million and W 42,947 million for the years ended December 31, 2023 and 2022, respectively.

41.17 The Bank has entered into CLS (Continuous Linked Settlement) service agreement with KB Securities Co., Ltd. and accordingly the Bank is able to provide intraday liquidity of USD 500 million on the condition of repayment on the day of payment.

42. Approval of Issuance of the Consolidated Financial Statements

The issuance of the Group’s consolidated financial statements as of and for the year ended December 31, 2023, was approved by the Board of Directors on February 6, 2024.

215

Exhibit 99.2

Kookmin Bank

(A wholly owned subsidiary of KB Financial Group Inc.)

Separate Financial Statements

December 31, 2023 and 2022

	Page(s)
Independent Auditor’s Report		1~2
Separate Financial Statements
Separate Statements of Financial Position		3
Separate Statements of Comprehensive Income		4
Separate Statements of Changes in Equity		5
Separate Statements of Cash Flows		6
Notes to the Separate Financial Statements		7~211
Independent Auditors’ Review Report on Internal Control over Financial Reporting		212
Operating Status Report of the Internal Control over Financial Reporting		213

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of

Kookmin Bank

Opinion

We have audited the accompanying separate financial statements of Kookmin Bank(collectively referred to as the “Company”), which comprise the separate statement of financial position as at December 31, 2023, and the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the separate financial statements, including material accounting policy information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of Kookmin Bank as at December 31, 2023, and its separate financial performance and its separate cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

Basis for Opinion

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other Matters

The separate financial statements of the Company for the year ended December 31, 2022, were audited by KPMG Samjong who expressed an unqualified opinion on those statements on March 7, 2023.

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied in other countries.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

1

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 6, 2024

This report is effective as of March 6, 2024, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

2

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Separate Statements of Financial Position 

December 31, 2023 and 2022

(In millions of Korean won)	Notes	December 31, 2023		December 31, 2022
Assets
Cash and due from financial institutions	4,6,7,36	W	21,648,290	W	22,296,244
Financial assets at fair value through profit or loss	4,6,8,12		16,609,611		18,154,550
Derivative financial assets	4,6,9		5,055,495		7,747,794
Loans measured at amortized cost	4,6,8,10,11		373,623,010		363,839,085
Financial investments	4,6,8,12		76,764,526		74,026,021
Investments in associates and subsidiaries	13,38		3,276,848		2,747,295
Property and equipment	14		3,451,699		3,529,134
Investment property	14		123,228		119,323
Intangible assets	15		455,262		493,279
Net defined benefit assets	23		228,565		307,749
Current income tax assets	32		225,022		187,017
Assets held for sale	17		32,407		30,971
Other assets	4,6,18		10,878,878		6,865,013
Total assets		W	512,372,841	W	500,343,475
Liabilities
Financial liabilities at fair value through profit or loss	4,6	W	93,438	W	108,862
Derivative financial liabilities	4,6,9		4,594,266		7,294,787
Deposits	4,6,19		380,266,822		368,100,984
Borrowings	4,6,20		33,023,146		43,664,670
Debentures	4,6,21		30,058,233		27,999,416
Provisions	22		891,191		494,238
Net defined benefit liabilities	23		435		451
Current income tax liabilities	32		10,358		5,671
Deferred income tax liabilities	16,32		410,411		105,436
Other liabilities	4,6,24,30		26,809,305		19,015,179
Total liabilities			476,157,605		466,789,694
Equity
Capital stock	25		2,021,896		2,021,896
Hybrid securities	25		1,282,935		873,850
Capital surplus	25		5,220,031		5,220,031
Accumulated other comprehensive income	25,34		542,107		(86,385	)
Retained earnings	25,33,34		27,148,267		25,524,389
(Provision of regulatory reserve for credit losses
December 31, 2023 : W 2,785,965 million
December 31, 2022 : W 2,715,060 million)
(Amounts estimated to be appropriated (reversed)
December 31, 2023 : W (384,274) million
December 31, 2022 : W 70,905 million)
Total equity			36,215,236		33,553,781
Total liabilities and equity		W	512,372,841	W	500,343,475

The above separate statements of financial position should be read in conjunction with the accompanying notes.

3

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Separate Statements of Comprehensive Income

Years Ended December 31, 2023 and 2022

(In millions of Korean won)	Notes	2023			2022
Interest income		W	20,874,693		W	13,962,022
Interest income from financial instruments at fair value through other comprehensive income and amortized			20,541,566			13,764,254
Interest income from financial instruments at fair value through profit or loss			333,127			197,768
Interest expense			(11,566,388	)		(5,402,820	)
Net interest income	26		9,308,305			8,559,202
Fee and commission income			1,590,354			1,512,230
Fee and commission expense			(408,956	)		(411,404	)
Net fee and commission income	27		1,181,398			1,100,826
Net gains on financial instruments at fair value through profit or loss	28		657,496			354,180
Net other operating expenses	29		(1,399,538	)		(929,600	)
General and administrative expenses	14,15,23,30,39		(4,155,848	)		(4,294,337	)
Operating income before provision for credit losses			5,591,813			4,790,271
Provision for credit losses	7,11,12,18,22		(1,163,327	)		(461,350	)
Net operating income			4,428,486			4,328,921
Net non-operating income (expenses)	31		(380,077	)		(372,517	)
Profit before income tax expense			4,048,409			3,956,404
Income tax expense	32		(1,047,252	)		(1,048,184	)
Profit for the period			3,001,157			2,908,220
(Adjusted profit after provision of regulatory reserve for credit losses	25
December 31, 2023 : W 3,385,431 million
December 31, 2022 : W 2,837,315 million)
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities	23		(50,481	)		177,890
Gains (losses) on equity securities at fair value through other comprehensive income			26,125			(953,990	)
Items that may be subsequently reclassified to profit or loss:
Currency translation differences			(2,877	)		(2,022	)
Losses on debt securities at fair value through other comprehensive income			695,111			(461,689	)
Gains (losses) on cash flow hedging instruments	9		(12,904	)		34,010
Other comprehensive income (loss) for the period, net of tax	34		654,974			(1,205,801	)
Total comprehensive income for the period		W	3,656,131		W	1,702,419

The above separate statements of comprehensive income should be read in conjunction with the accompanying notes.

4

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Separate Statements of Changes in Equity

Years Ended December 31, 2023 and 2022

(In millions of Korean won)	Capital stock		Hybrid securities		Capital surplus		Accumulated other comprehensive income			Retained earnings			Total equity
Balance as of January 1, 2022	W	2,021,896	W	574,523	W	5,220,031	W	1,362,438		W	23,438,713		W	32,617,601
Comprehensive income for the period
Profit for the period		—		—		—		—			2,908,220			2,908,220
Remeasurements of net defined benefit liabilities		—		—		—		177,890			—			177,890
Gains (losses) on equity securities at fair value through other comprehensive income		—		—		—		(1,197,012	)		243,022			(953,990	)
Currency translation differences		—		—		—		(2,022	)		—			(2,022	)
Losses on debt securities at fair value through other comprehensive income		—		—		—		(461,689	)		—			(461,689	)
Gains on cash flow hedging instruments		—		—		—		34,010			—			34,010
Total comprehensive income for the period		—		—		—		(1,448,823	)		3,151,242			1,702,419
Transactions with the shareholder
Dividends		—		—		—		—			(1,031,167	)		(1,031,167	)
Issuance of hybrid securities		—		299,327		—		—			—			299,327
Dividends on hybrid securities		—		—		—		—			(34,399	)		(34,399	)
Total transactions with the shareholder		—		299,327		—		—			(1,065,566	)		(766,239	)
Balance as of December 31, 2022	W	2,021,896	W	873,850	W	5,220,031	W	(86,385	)	W	25,524,389		W	33,553,781
Balance as of January 1, 2023	W	2,021,896	W	873,850	W	5,220,031	W	(86,385	)	W	25,524,389		W	33,553,781
Comprehensive income for the period
Profit for the period		—		—		—		—			3,001,157			3,001,157
Remeasurements of net defined benefit liabilities		—		—		—		(50,481	)		—			(50,481	)
Gains (losses) on equity securities at fair value through other comprehensive income		—		—		—		(357	)		26,482			26,125
Currency translation differences		—		—		—		(2,877	)		—			(2,877	)
Losses on debt securities at fair value through other comprehensive income		—		—		—		695,111			—			695,111
Gains on cash flow hedging instruments		—		—		—		(12,904	)		—			(12,904	)
Total comprehensive income for the period		—		—		—		628,492			3,027,639			3,656,131
Transactions with the shareholder
Dividends		—		—		—		—			(1,346,582	)		(1,346,582	)
Issuance of hybrid securities		—		409,085		—		—			—			409,085
Dividends on hybrid securities		—		—		—		—			(57,179	)		(57,179	)
Total transactions with the shareholder		—		409,085		—		—			(1,403,761	)		(994,676	)
Balance as of December 31, 2023	W	2,021,896	W	1,282,935	W	5,220,031	W	542,107		W	27,148,267		W	36,215,236

The above separate statements of changes in equity should be read in conjunction with the accompanying notes.

5

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Separate Statements of Cash Flows

Years Ended December 31, 2023 and 2022

(in millions of Korean won)	Notes		2023			2022
Cash flows from operating activities
Profit for the period			W	3,001,157		W	2,908,220
Adjustment for non-cash items
Net gains on financial instruments at fair value through profit (or loss)				(744,736	)		(117,361	)
Net gains on derivative financial investments for hedging purposes				(6,597	)		(28,984	)
Provision for credit losses				1,163,327			461,348
Net losses on financial investments				76,694			20,230
Losses on associates and subsidiaries				310,709			358,195
Depreciation and amortization expense				531,923			510,059
Other net losses (gains) on property and equipment/intangible assets				10,968			(40,824	)
Share-based payment				24,330			15,169
Post-employment benefits				109,733			166,670
Net interest income(expense)				(170,434	)		167,910
Losses on foreign currency translation				126,678			340,123
Other expenses				66,365			68,788
				1,498,960			1,921,323
Changes in operating assets and liabilities
Financial assets at fair value through profit or loss				1,161,691			(1,982,538	)
Derivative financial instrument				(26,899	)		184,288
Loans measured at amortized cost				(10,557,418	)		(13,434,569	)
Current income tax assets				(17,494	)		(122,778	)
Other assets				(4,052,655	)		(1,301,903	)
Financial liabilities at fair value through profit or loss				(29,240	)		(11,865	)
Deposits				11,789,588			17,791,562
Deferred income tax liabilities				69,053			(77,560	)
Other liabilities				6,120,607			(1,706,320	)
				4,457,233			(661,683	)
Net cash inflow from operating activities				8,957,350			4,167,860
Cash flows from investing activities
Net cash flows from derivative financial instrument for hedging purposes				21,497			(3,446	)
Disposal of financial assets at fair value through profit or loss				7,685,878			8,584,309
Acquisition of financial assets at fair value through profit or loss				(6,440,818	)		(9,904,210	)
Disposal of financial investments				32,803,083			17,547,994
Acquisition of financial investments				(33,940,390	)		(31,557,734	)
Disposal of investments in associates and subsidiaries				140,282			32,334
Acquisition of investments in associates and subsidiaries				(980,543	)		(272,448	)
Disposal of property and equipment				562			11,819
Acquisition of property and equipment				(135,114	)		(177,608	)
Disposal of intangible assets				—			245
Acquisition of intangible assets				(80,429	)		(64,579	)
Others				(14,202	)		19,545
Net cash outflow from investing activities				(940,194	)		(15,783,779	)
Cash flows from financing activities
Net cash flows from derivative financial instrument for hedging purposes				32,370			33,287
Increase (decrease) in borrowings				(10,950,884	)		12,013,037
Increase in debentures				19,488,466			16,118,240
Decrease in debentures				(17,839,011	)		(15,190,127	)
Payment of dividends				(1,346,582	)		(1,031,167	)
Increase (decrease) in other payables to trust accounts				2,384,206			(877,097	)
Issuance of hybrid securities				409,085			299,327
Others				(771,105	)		522,076
Net cash inflow from financing activities				(8,593,455	)		11,887,576
Effect of exchange rate changes on cash and cash equivalents				(54,426	)		(150,554	)
Net increase (decrease) in cash and cash equivalents				(630,725	)		121,103
Cash and cash equivalents at the beginning of the period		36		21,993,144			21,872,041
Cash and cash equivalents at the end of the period		36	W	21,362,419		W	21,993,144

The above separate statements of cash flows should be read in conjunction with the accompanying notes.

6

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

1. The Bank

Kookmin Bank (the “Bank”) was incorporated in 1963 under the Citizens National Bank Act to provide banking services to the general public and to small and medium-sized enterprises. Pursuant to the Repeal Act of the Citizens National Bank Act, effective January 5, 1995, the Bank’s status changed to a financial institution which operates under the Banking Act and Commercial Act.

The Bank merged with Korea Long Term Credit Bank on December 31, 1998, and with its subsidiaries, Daegu, Busan, Jeonnam Kookmin Mutual Savings & Finance Co., Ltd., on August 22, 1999. Pursuant to the directive from the Financial Services Commission related to the Structural Improvement of the Financial Industry Act, the Bank acquired certain assets, including performing loans, and assumed most of the liabilities of Daedong Bank on June 29, 1998. Also, the Bank completed the merger with Housing and Commercial Bank (“H&CB”) on October 31, 2001, and merged with Kookmin Credit Card Co., Ltd., a majority-owned subsidiary, on September 30, 2003. Meanwhile, the Bank spun off its credit card business segment on February 28, 2011, and KB Kookmin Card Co., Ltd. became a subsidiary of KB Financial Group Inc.

The Bank listed its shares on the Stock Market Division of the Korea Exchange (“KRX”) in September 1994. As a result of the merger with H&CB, the shareholders of the former Kookmin Bank and H&CB received new common shares of the Bank which were relisted on the KRX on November 9, 2001. In addition, H&CB listed its American Depositary Shares (“ADS”) on the New York Stock Exchange (“NYSE”) on October 3, 2000, prior to the merger. Following the merger with H&CB, the Bank listed its ADS on the NYSE on November 1, 2001. The Bank became a wholly owned subsidiary of KB Financial Group Inc. through a comprehensive stock transfer on September 29, 2008. Subsequently, the Bank’s shares and its ADS, each listed on the KRX and the NYSE, were delisted on October 10, 2008 and September 26, 2008, respectively. As of December 31, 2023, the Bank’s paid-in capital is W 2,021,896 million.

The Bank engages in the banking business in accordance with the Banking Act, trust business in accordance with the Financial Investment Services and Capital Markets Act, mobile virtual network business in accordance with Special Act on Support for Financial Innovation, and other relevant businesses. As of December 31, 2023, the Bank operates its Seoul headquarters and 797 domestic branches, and nine overseas branches (excluding five subsidiaries).

2. Basis of Preparation

2.1 Application of Korean IFRS

The Bank maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying separate financial statements have been translated into English from the Korean language separate financial statements.

The separate financial statements of the Bank have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”) that have been adopted by the Republic of Korea.

The preparation of the separate financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Bank’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

7

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

The separate financial statements have been prepared in accordance with Korean IFRS No.1027 Separate Financial Statements.

2.1.1 The Bank has applied the following issuance and amended standards for the first time for its annual reporting period commencing January 1, 2023.

- Issuance of Korean IFRS No.1117 Insurance Contracts

Korean IFRS No.1117 Insurance Contracts replace Korean IFRS No.1104 Insurance Contracts. This standard requires an entity to estimate future cash flows of an insurance contract and measure insurance liabilities using discount rates applied with assumptions and risks at the measurement date and recognize insurance revenue on an accrual basis including services (insurance coverage) provided to the policyholder by each annual reporting period. In addition, investment components (refunds due to termination and maturity) repaid to a policyholder even if an insured event does not occur, are excluded from insurance revenue, and net insurance income and net investment income are presented separately to enable users of the information to understand the sources of net income. These amendments do not have a significant impact on the financial statements.

- Amendments to Korean IFRS No.1001 Presentation of Financial Statements – Accounting Policy Disclosure

The amendments require an entity to define and disclose their material accounting policy information. IFRS Practice Statement 2 Making Materiality Judgements was amended to explain and demonstrate how to apply the concept of materiality. These amendments do not have a significant impact on the financial statements.

- Amendments to Korean IFRS No.1008 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Accounting Estimates

The amendments introduce the definition of accounting estimates and clarify how to distinguish changes in accounting estimates from changes in accounting policies. These amendments do not have a significant impact on the financial statements.

- Amendments to Korean IFRS No.1012 Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction

The amendments narrow the scope of the deferred tax recognition exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. These amendments do not have a significant impact on the financial statements.

- Amendments to Korean IFRS No.1001 Presentation of Financial Statements - Disclosure of gains or losses on valuation of financial liabilities subject to exercise price adjustment conditions

The amendments require disclosures about gains or losses on valuation for the reporting period (but are limited to those included in profit or loss) for the conversion options or warrants (or financial liabilities with warrants), if all or part of the financial instrument whose exercise price is adjusted due to the issuers’ stock price fluctuations, are classified as financial liabilities according to paragraph 11 of Korean IFRS No.1032 Financial Instruments: Presentation. These amendments do not have a significant impact on the financial statements.

- Amendments to Korean IFRS No. 1012 Income Taxes – International Tax Reform: Pillar 2 Model Rules

The amendment reflects the enactment of laws reflecting the Pillar 2 Model Rules for International Tax Reform aimed at reforming international taxation for multinational enterprises. It temporarily relaxes the accounting

8

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

treatment of deferred tax resulting from this law and requires disclosure of related current year income tax effects. The bank has applied a temporary exemption provision regarding the recognition and disclosure of deferred corporate taxes related to the Pillar 2 rules. As this law is scheduled to be enacted on January 1, 2024, it dose not have an impact on consolidated financial statements. Meanwhile, the Bank is reviewing the impact of the global minimum tax.

2.1.2 The following new and amended standards have been published that are not mandatory for December 31, 2023 reporting period and have not been adopted by the Bank.

- Amendments to Korean IFRS No.1001 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise the right to defer settlement of the liability or the management’s expectations thereof. Also, the settlement of liability includes the transfer of the entity’s own equity instruments; however, it would be excluded if an option to settle the liability by the transfer of the entity’s own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument. In addition, agreements that an entity must comply with after the end of the reporting period do not affect the classification of the relevant liabilities at the end of the reporting period; further, if liabilities that must comply with agreements within 12 months after the reporting period are classified as non-current liabilities as of the end of the reporting period, the entity should disclose the risk that the liabilities may be repaid within 12 months after the reporting period. The amendments should be applied for annual reporting periods beginning on or after January 1, 2024, and early application is permitted. The Bank does not expect that these amendments have a significant impact on the financial statements.

2.2 Measurement Basis

The separate financial statements have been prepared based on the historical cost accounting model unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the financial statements of the Bank are measured using the currency of the primary economic environment in which the Bank operates (“functional currency”). The separate financial statements are presented in Korean won, which is the Bank’s functional and presentation currency.

2.4 Critical Accounting Estimates

The Bank applies accounting policies and uses judgements, accounting estimates, and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses) in preparing the separate financial statements. Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

9

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Uncertainties in estimates and assumptions with significant risks that may result in material adjustments to the separate financial statements are as follows:

2.4.1 Income taxes

As the income taxes on the Bank’s taxable income is calculated by applying the tax laws of various countries and the decisions of tax authorities, there is uncertainty in calculating the final tax effect.

2.4.2 Fair value of financial instruments

The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available is determined by using valuation techniques. Financial instruments, which are not actively traded in the market and those with less transparent market prices, will have less objective fair values and require broad judgment on liquidity, concentration, uncertainty in market factors, assumptions in fair value determination, and other risks.

As described in the significant accounting policies in Note 3.3 Recognition and Measurement of Financial Instruments, diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

2.4.3 Allowances and provisions for credit losses

The Bank recognizes and measures allowances for credit losses of debt instruments measured at amortized cost and debt instruments measured at fair value through other comprehensive income. Also, the Bank recognizes and measures provisions for credit losses of acceptances and guarantees, and unused loan commitments. Accuracy of allowances and provisions for credit losses is dependent upon estimation of expected cash flows of the borrower subject to individual assessment of impairment, and upon assumptions and variables of model used in collective assessment of impairment and estimation of provisions for credit losses of acceptances and guarantees, and unused loan commitments.

- Allowances and provisions for credit losses (Allowances, acceptances and guarantees, and unused commitments)

Economic uncertainty arising from the complex crises is increasing such as rising interest rates and real economic recession, etc., and asset quality deterioration may raise from increase in obligation due to a rapid interest rate increase. Accordingly, the Bank reflected the effect on expected credit losses in an additional way through a comprehensive review of vulnerable sectors in the event of the extinguishment of COVID-19 financial support policies. In addition, the Bank has expanded the scope of lenders to individually assess for allowance, and reviews the risk components comprehensively for potential risks in the event economic uncertainty continues. The Bank will continue to monitor the impact on expected credit losses by considering the duration of economic uncertainty and government policies, and the impact on expected credit losses is described in Note 11.1 Changes in allowances for credit losses of loans measured at amortized cost and Note 22.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees.

2.4.4 Net defined benefit asset (liability)

The present value of the net defined benefit asset(liability) is affected by changes in the various factors determined by the actuarial method.

2.4.5 Impairment of goodwill

The recoverable amounts of cash-generating units are determined based on value-in-use calculations to test whether impairment of goodwill has occurred.

10

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3. Material Accounting Policies

The principal accounting policies applied in the preparation of these separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

3.1 Investments in Associates and Subsidiaries

Associates are entities over which the Bank has significant influence over the financial and operating policy decisions. Generally, if the Bank holds 20% or more of the voting power of the investee, it is presumed that the Bank has significant influence.

Subsidiaries are companies that are controlled by the Bank. The Bank controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Also, the existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Bank controls the investee. Subsidiaries are fully consolidated from the date when control is transferred to the Bank and de-consolidated from the date when control is lost.

Investments in associates and subsidiaries are accounted for at cost in accordance with Korean IFRS No.1027. However, beneficiary certificates in private equity fund which is consolidated is classified as financial assets at fair value through profit or loss in accordance with Korean IFRS No.1109 and measured at fair value in accordance with Korean IFRS No.1113.

The Bank determines at each reporting period whether there is any objective evidence that the investments in the associates and subsidiaries that are accounted for by cost method are impaired. If this is the case, the Bank calculates the amount of impairment as the difference between the recoverable amount of the associate or subsidiary and its carrying amount and recognizes the amount as non-operating expenses in the statement of comprehensive income.

3.2 Foreign Currency

3.2.1 Foreign currency transactions

A foreign currency transaction is recorded, at initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate which is the spot exchange rate at the end of the reporting period. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was measured and non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Except for the exchange differences for the net investment in a foreign operation and the financial liability designated as a hedging instrument of net investment, exchange differences arising on the settlement of monetary items or on translating monetary items are recognized in profit or loss. When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

11

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.2.2 Foreign operations

The results and financial position of a foreign operation, whose functional currency differs from the Bank’s presentation currency, are translated into the Bank’s presentation currency based on the following procedures. If the functional currency of a foreign operation is not the currency of a hyperinflationary economy, assets and liabilities for each statement of financial position presented (including comparatives) are translated at the closing rate at the end of the reporting period, income and expenses for each statement of comprehensive income presented (including comparatives) are translated using the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and are translated into the presentation currency at the closing rate.

On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss (as a reclassification adjustment) when the gain or loss on disposal is recognized. On the partial disposal of a subsidiary that includes a foreign operation, the Bank re-attributes the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income to the non-controlling interests in that foreign operation. In any other partial disposal of a foreign operation, the Bank reclassifies to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income.

3.2.3 Translation of the net investment in a foreign operation

A monetary item that is receivable from or payable to a foreign operation, for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the Bank’s net investment in that foreign operation. The foreign currency difference arising from that monetary item is recognized in other comprehensive income and shall be reclassified to profit or loss on disposal of the net investment.

3.3 Recognition and Measurement of Financial Instruments

3.3.1 Initial recognition

The Bank recognizes a financial asset or a financial liability in its statement of financial position when the Bank becomes party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned) is recognized and derecognized using trade date accounting.

For financial reporting purpose, the Bank classifies (a) financial assets as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, or financial assets at amortized cost and (b) financial liabilities as financial liabilities at fair value through profit or loss, or other financial liabilities. These classifications are based on the business model for managing financial instruments and the contractual cash flow characteristics of the financial instrument at initial recognition.

12

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

At initial recognition, a financial asset or financial liability is measured at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. The fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value of a financial instrument on initial recognition is normally the transaction price (that is, the fair value of the consideration given or received) in an arm’s length transaction.

3.3.2 Subsequent measurement

After initial recognition, financial instruments are measured at amortized cost or fair value based on classification at initial recognition.

3.3.2.1 Amortized cost

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

3.3.2.2 Fair value

The Bank uses quoted price in an active market which is based on listed market price or dealer price quotations of financial instruments traded in an active market as best estimate of fair value. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

If there is no active market for a financial instrument, fair value is determined either by using a valuation technique or independent third-party valuation service. Valuation techniques include using recent arm’s length market transactions between knowledgeable and willing parties, if available, referencing the current fair value of another instrument that is substantially the same, discounted cash flow analysis, and option pricing models.

The Bank uses valuation models that are commonly used by market participants and customized for the Bank to determine fair values of common over-the-counter (“OTC”) derivatives such as options, interest rate swaps, and currency swaps which are based on the inputs observable in markets. However, for some complex financial instruments that require fair value measurement by valuation techniques based on certain assumptions because some or all inputs used in the model are not observable in the market, the Bank uses internal valuation models developed from general valuation models or valuation results from independent external valuation institutions.

In addition, the fair value information recognized in the statement of financial position is classified into the following fair value hierarchy, reflecting the significance of the input variables used in the fair value measurement.

Level 1 :	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bank can access at the measurement date
Level 2 :	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3 :	Unobservable inputs for the asset or liability

13

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety.

If a fair value measurement uses observable inputs that require significant adjustment using unobservable inputs, that measurement is a Level 3 measurement.

The Bank’s Fair Value Evaluation Committee, which consists of the risk management department, trading department and accounting department, reviews the appropriateness of internally developed valuation models, and approves the selection and changing of the external valuation institution and other considerations related to fair value measurement. The results of regular verification of the internally developed valuation models are reported to the Market Risk Management Subcommittee.

If the valuation technique does not reflect all factors which market participants would consider in pricing the asset or liability, the fair value is adjusted to reflect those factors. Those factors include counterparty credit risk, liquidity risk, and others.

The Bank uses a valuation technique which maximizes the use of market inputs and minimizes the use of entity-specific inputs. It incorporates all factors that market participants would consider in pricing the asset or liability and is consistent with economic methodologies applied for pricing financial instruments. Periodically, the Bank calibrates the valuation technique and tests its validity using prices of observable current market transactions of the same instrument or based on other relevant observable market data.

3.3.3 Derecognition

Derecognition is the removal of a previously recognized financial asset or financial liability from the statement of financial position. The derecognition criteria for financial assets and financial liabilities are as follows:

3.3.3.1 Derecognition of financial assets

A financial asset is derecognized when the contractual rights to the cash flows from the financial assets expire or the Bank transfers substantially all the risks and rewards of ownership of the financial asset, or the Bank neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and the Bank has not retained control. Therefore, if the Bank does not transfer substantially all the risks and rewards of ownership of the financial asset, the Bank continues to recognize the financial asset to the extent of its continuing involvement in the financial asset.

If the Bank transfers the contractual rights to receive the cash flows of the financial asset but retains substantially all the risks and rewards of ownership of the financial asset, the Bank continues to recognize the transferred asset in its entirety and recognize a financial liability for the consideration received.

The Bank writes off a financial asset when the Bank has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. In general, the Bank considers write-off when it is determined that the debtor does not have sufficient funds or income to cover the principal and interest. The write-off decision is made in accordance with internal regulations. After the write-off, the Bank can continue to collect the written-off loans according to the internal policy. Recovered amounts from financial assets previously written-off are recognized in profit or loss.

14

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.3.3.2 Derecognition of financial liabilities

A financial liability is derecognized from the statement of financial position when it is extinguished (i.e., the obligation specified in the contract is discharged, canceled or expires).

3.3.4 Offsetting

A financial asset and a financial liability are offset, and the net amount is presented in the statement of financial position when, and only when, the Bank currently has a legally enforceable right to offset the recognized amounts and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on a future event and must be legally enforceable in the normal course of business, the event of default, and the event of insolvency or bankruptcy of the Bank and all of the counterparties.

3.4 Cash and Due from Financial Institutions

Cash and due from financial institutions include cash on hand, foreign currency, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and due from financial institutions. Cash and due from financial institutions are measured at amortized cost.

3.5 Non-derivative Financial Assets

3.5.1 Financial assets at fair value through profit or loss

Financial assets are classified as financial assets at fair value through profit or loss unless they are classified as financial assets at amortized cost or at fair value through other comprehensive income.

The Bank may designate certain financial assets upon initial recognition as at fair value through profit or loss when the designation eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

After initial recognition, a financial asset at fair value through profit or loss is measured at fair value and gains or losses arising from a change in fair value are recognized in profit or loss. Interest income using the effective interest method and dividend income from financial assets at fair value through profit or loss are also recognized in profit or loss.

3.5.2 Financial assets at fair value through other comprehensive income

The Bank classifies below financial assets as financial assets at fair value through other comprehensive income:

• Debt instruments that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and where the assets’ cash flows solely represent payments of principal and interest on the principal amount outstanding and;

• Equity instruments that are not held for short-term trading but held for strategic investment, and designated as financial assets at fair value through other comprehensive income

15

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

After initial recognition, a financial asset at fair value through other comprehensive income is measured at fair value. Gains or losses arising from a change in fair value, other than dividend income, interest income calculated using the effective interest method and exchange differences arising on monetary items which are recognized directly in profit or loss, are recognized in other comprehensive income in equity.

When the financial assets at fair value through other comprehensive income is disposed of, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. However, cumulative gain or loss of equity instruments designated at fair value through other comprehensive income is reclassified to retained earnings not to profit or loss at disposal.

A financial asset at fair value through other comprehensive income denominated in foreign currency is translated at the closing rate. Exchange differences resulting from changes in amortized cost are recognized in profit or loss, and other changes are recognized in equity.

3.5.3 Financial assets at amortized cost

A financial asset, which is held within the business model whose objective is achieved by collecting contractual cash flows, and where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding, is classified as a financial asset at amortized cost. After initial recognition, a financial asset at amortized cost is measured at amortized cost using the effective interest method and interest income is calculated using the effective interest method.

3.6 Expected Credit Losses of Financial Assets (Debt Instruments)

The Bank recognizes loss allowances for expected credit losses at the end of the reporting period for financial assets at amortized cost and fair value through other comprehensive income except for financial assets at fair value through profit or loss.

Expected credit losses are estimated at present value of probability-weighted amount that is determined by evaluating a range of possible outcomes. The Bank measures expected credit losses by reflecting all reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.

The approaches of measuring expected credit losses in accordance with Korean IFRS are as follows:

• General approach: for financial assets and unused loan commitments not subject to the below approach

• Credit-impaired approach: for financial assets that are credit-impaired at the time of acquisition

Application of general approach is differentiated depending on whether credit risk has increased significantly after initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Bank measures loss allowances for that financial instrument at an amount equal to 12-month expected credit losses, whereas if the credit risk on a financial instrument has increased significantly since initial recognition, the Bank measures loss allowances for a financial instrument at an amount equal to the lifetime expected credit losses. Lifetime is the period until the contractual maturity date of financial instruments and means the expected life.

The Bank assesses whether the credit risk has increased significantly using the following criteria, and if one or more of the following criteria are met, it is deemed as significant increase in credit risk. If the contractual cash flows of a financial asset have been renegotiated or modified, the Bank assesses whether the credit risk has increased significantly using the same following criteria.

16

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

• More than 30 days past due

• Decline in credit rating at the end of the reporting period by certain notches or more compared to the time of initial recognition

• Subsequent managing ratings below certain level in the early warning system

• Debt restructuring (except for impaired financial assets) and

• Credit delinquency information of Korea Federation of Banks, etc.

The Bank generally considers the loan to be credit-impaired if one or more of the following criteria are met:

• 90 days or more past due

• Legal proceedings related to collection

• A borrower registered on the credit management list of Korea Federation of Banks

• A corporate borrower with the credit rating C and D

• Refinancing and

• Debt restructuring

3.6.1 Forward-looking information

The Bank uses forward-looking information, when determining whether credit risk has increased significantly and measuring expected credit losses.

The Bank assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses. The Bank has derived a correlation between the time series data of 13 years or more and the key macroeconomic variables and calculates the expected credit losses by reflecting the results of the correlation on the risk component.

The correlation between the major macroeconomic variables and the credit risk are as follows:

Key macroeconomic variables	Correlation between the major macroeconomic variables and the credit risk
Domestic GDP growth rate	(-)
Benchmark interest rate	(+)
Three-year yields of Korea treasury bond	(+)
AA- rated corporate bond (3-year)	(+)
BBB- rated corporate bond (3-year)	(+)
Composite stock index	(-)
Rate of increase in housing transaction price index (Metropolitan Area)	(-)
WTI crude oil price	(+)
Growth rate of construction investment	(-)
Current account balance	(-)

Forward-looking information used in the calculation of expected credit losses is based on the macroeconomic forecasts utilized by management of the Bank for its business plan considering reliable external agency’s forecasts and others. The forward-looking information is generated by KB Research with a comprehensive approach to capture the possibility of various economic forecast scenarios that are derived from the internal and external viewpoints of the macroeconomic situation. The Bank determines the macroeconomic variables to be used in forecasting future conditions of the economy, considering the direction of the forecast scenario and the significant relationship between macroeconomic variables and time series data. Some macroeconomic variables used are different than those used in the previous year.

17

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

As of December 31, 2023, the Bank measures expected credit losses by applying both the worse scenario and the crisis scenario, taking into consideration the potential credit risk resulting from the uncertain financial environment locally and globally and the rapid economic recession.

If we assume a probability weight of 100% for each scenario, the impact on expected credit loss allowances and provisions would be as follows.

(In millions of Korean won)
Scenario	Applied probability weight	Assumption of 100%	Difference from the book value
Deterioration	80%	2,420,827	(467,277)
Crisis situation	20%	4,753,198	1,865,094

3.6.2 Measuring expected credit losses on financial assets at amortized cost

The expected credit losses of financial assets at amortized cost are measured as present value of the difference between the contractual cash flows to be received and the cash flows expected to be received. The Bank estimates expected future cash flows for financial assets that are individually significant. The Bank selects the individually significant financial assets by comprehensively considering quantitative and qualitative factors (such as debt restructuring or negative net assets, etc.) when the credit risk has increased significantly or the financial asset in credit-impaired (individual assessment of impairment).

For financial assets that are not individually significant, the Bank collectively estimates expected credit losses by grouping loans with a homogeneous credit risk profile (collective assessment of impairment).

3.6.2.1 Individual assessment of impairment

Individual assessment of impairment losses is performed using management’s best estimate on the present value of expected future cash flows. The Bank uses all the available information including financial condition of the borrower such as operating cash flow and net realizable value of any collateral held.

3.6.2.2 Collective assessment of impairment

Collective assessment of impairment losses is performed by using a methodology based on historical loss experience and reflecting forward-looking information. Such a process incorporates factors such as type of collateral, type of product, type of borrower, credit rating, size of portfolio, and recovery period and applies Probability of Default (“PD”) on a group of assets and Loss Given Default (“LGD”) by type of recovery method. Also, the Bank applies certain assumptions to model expected credit losses assessment and to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce the gap between loss estimate and actual loss experience.

The lifetime expected credit losses are measured by applying the PD to the carrying amount, which is calculated by deducting the expected principal repayment amount from the carrying amount as of the reporting date, and the LGD adjusted to reflect changes in the carrying amount.

18

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.6.3 Measuring expected credit losses on financial assets at fair value through other comprehensive income

The Bank measures expected credit losses on financial assets at fair value through other comprehensive income in a manner that is consistent with the requirements that are applicable to financial assets at amortized cost. However, loss allowances are recognized in other comprehensive income. Upon disposal or repayment of financial assets at fair value through other comprehensive income, the amount of loss allowances is reclassified from other comprehensive income to profit or loss.

3.7 Derivative Financial Instruments

The Bank enters into numerous derivative financial instrument contracts such as currency forwards, interest rate swaps, currency swaps, and others for trading purposes or to manage its interest rate risk, currency risk, and others. The Bank’s derivative financial instruments business focuses on addressing the needs of the Bank’s corporate clients to hedge their risk exposure and to hedge the Bank’s risk exposure that results from such client contracts. These derivative financial instruments are presented as derivative financial instruments in the financial statements irrespective of transaction purpose and subsequent measurement requirement.

The Bank designates certain derivative financial instruments as hedging instruments to hedge the risk of changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge) and the risk of changes in cash flow (cash flow hedge).

At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Bank’s risk management objective and strategy for undertaking the hedge. This documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the inception date of hedging relationship and how the Bank will assess the hedging instrument’s effectiveness in offsetting the changes in the hedged item’s fair value or cash flows attributable to the hedged risk.

Derivative financial instruments are initially recognized at fair value. After initial recognition, derivative financial instruments are measured at fair value, and changes therein are accounted for as described below.

3.7.1 Derivative financial instruments held for trading

All derivative financial instruments, except for derivatives that are designated and qualify for hedge accounting, are measured at fair value. Gains or losses arising from changes in fair value are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.2 Derivative financial instruments for fair value hedges

If derivative financial instruments are designated and qualify for fair value hedges, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in profit or loss as part of other operating income or expenses. If the hedged items are equity instruments for which the Bank has elected to present changes in fair value in other comprehensive income, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in other comprehensive income.

Fair value hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. Once fair value hedge accounting is discontinued, the adjustment to the carrying amount of a hedged item is amortized to profit or loss by the maturity of the financial instrument using the effective interest method.

19

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.7.3 Derivative financial instruments for cash flow hedges

The effective portion of changes in fair value of derivative financial instruments that are designated and qualify for cash flow hedges is recognized in other comprehensive income, limited to the cumulative change in fair value (present value) of the hedged item (the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge. The ineffective portion is recognized in profit or loss as other operating income or expenses. The associated gains or losses that were previously recognized in other comprehensive income are reclassified from equity to profit or loss (other operating income or expenses) as a reclassification adjustment in the same period or periods during which the hedged forecast cash flows affect profit or loss. Cash flow hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. When the cash flow hedge accounting is discontinued, the cumulative gains or losses on the hedging instrument that have been recognized in other comprehensive income are reclassified to profit or loss over the period in which the forecast transaction occurs. If the forecast transaction is no longer expected to occur, the cumulative gains or losses that have been recognized in other comprehensive income are immediately reclassified to profit or loss.

3.7.4 Risk management strategy

Interest rate risk arises from changes in fair value resulting from changes in the discount rate of fixed rate financial instruments and changes in cash flows resulting from changes in the nominal interest rate of floating rate financial instruments.

The Bank hedges the interest rate risk in its entirety. At inception of the hedge relationship, the Bank reviews the hedge effectiveness; and periodically reviews the effectiveness in order to confirm that economic relationship between the hedged item and the hedging instrument exists. The requirement that an economic relationship exists means that the hedging instrument and the hedged item have values that generally move in the opposite direction due to the same risk, which is the hedged risk. The Bank designates the exposure of hedged item opposite to the exposure of hedging instruments in order to meet economic relationship requirement.

The Bank designates the hedge relationship at a one-on-one ratio between the nominal amount of the hedging instrument and the nominal amount of the hedged item.

Hedge ineffectiveness could arise because of differences in the underlying parameters (acquisition date, credit risk or liquidity and others) or other differences between the hedging instrument and the hedged item that the Bank accepts in order to achieve a cost-effective hedging relationship.

The Bank avoids the cash flow variability of its floating rate debt securities by using interest rate swaps. Both are linked to the same interest rate; however, the paid amount of the floating rate may be set on different dates. Even if the variability of interest rate related cash flows (as a risk factor) is designated as a hedged item, the difference in set-up dates creates a hedge ineffectiveness.

The Bank avoids the variability of fair values of its fixed rate debt securities by using interest rate swaps. The method of calculating the number of dates for paying fixed-rate interest can be different between hedging instruments and hedged items. Even if the variability of the fair value due to the benchmark interest rate (as a risk factor) is designated as a hedged item, the difference in the method of calculating the number of the dates creates a hedge ineffectiveness.

20

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.7.5 Embedded derivatives

An embedded derivative is separated from the host contract and accounted for as a derivative if, and only if, (a) the economic characteristics and risks of the embedded derivative are not closely related to those of the host contract, (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative and (c) the hybrid contract contains a host that is not a financial asset and is not designated as at fair value through profit or loss. Gains or losses arising from a change in fair value of an embedded derivative separated from the host contract are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.6 Day one gains or losses

If the Bank uses a valuation technique that incorporates unobservable inputs for the fair value of the OTC derivatives at initial recognition, there may be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. If the fair value is subsequently determined using observable inputs, the remaining deferred amount is recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss or other operating income or expenses.

21

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.8 Property and Equipment

3.8.1 Recognition and measurement

Property and equipment that qualify for recognition as an asset are measured at cost and subsequently carried at its cost less any accumulated depreciation and any accumulated impairment losses.

The cost of property and equipment includes any costs directly attributable to bringing the asset to the location and the asset’s condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent expenditures are capitalized only when they prolong the useful life or enhance values of the assets, but the costs of the day-to-day servicing of the assets such as repair and maintenance costs are recognized in profit or loss as incurred. When part of an item of property and equipment has a useful life different from that of the entire asset, it is recognized as a separate asset.

3.8.2 Depreciation

Land is not depreciated, whereas other property and equipment are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Bank. The depreciable amount of an asset is determined after deducting its residual value.

Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation method and estimated useful life of property and equipment are as follows:

Property and equipment	Depreciation method	Estimated useful life
Buildings	Straight-line	40 years
Leasehold improvements	Diminishing-balance	4 years
Equipment and vehicles	Diminishing-balance	4 years

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

3.9 Investment Properties

3.9.1 Recognition and measurement

Properties held to earn rentals or for capital appreciation or both are classified as investment properties. Investment properties are measured initially at their cost and subsequently the cost model is used.

3.9.2 Depreciation

Land is not depreciated, whereas other investment properties are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Bank. The depreciable amount of an asset is determined after deducting its residual value.

22

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

The depreciation method and estimated useful life of investment properties are as follows:

Investment properties	Depreciation method	Estimated useful life
Buildings	Straight-line	40 years

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

3.10 Intangible Assets

Intangible assets are measured initially at cost and subsequently carried at their cost less any accumulated amortization and any accumulated impairment losses.

Intangible assets, except for goodwill and membership rights, are amortized using the straight-line method with no residual value over their estimated useful life since the assets are available for use.

Intangible assets	Amortization method	Estimated useful life
Industrial property rights	Straight-line	5 years
Software	Straight-line	4~5 years
Others	Straight-line	1~13 years

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Where an intangible asset is not being amortized because its useful life is indefinite, the Bank carries out a review in each accounting period to confirm whether events and circumstances still support an indefinite useful life assessment. If they do not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate.

3.10.1 Goodwill

3.10.1.1 Recognition and measurement

Goodwill related to business combinations before January 1, 2010, is stated at its carrying amount, which was recognized under the Bank’s previous accounting policy, prior to the transition to Korean IFRS.

Goodwill acquired from business combinations after January 1, 2010, is initially measured as the excess of the consideration transferred over the fair value of net identifiable assets acquired and liabilities assumed. If the fair value of net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, the difference is recognized in profit or loss.

Acquisition-related costs incurred to effect a business combination are charged to expenses in the periods in which the costs are incurred and the services are received, except for the costs to issue debt or equity securities.

3.10.1.2 Subsequent measurement

Goodwill is not amortized and is stated at cost less accumulated impairment losses. Goodwill that forms part of the carrying amount of an investment in associates and subsidiaries is not separately recognized, and an impairment loss recognized is not allocated to any asset, including goodwill, which forms part of the carrying amount of the investment in the associates.

23

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.10.2 Subsequent expenditures

Subsequent expenditures are capitalized only when they enhance values of the assets. Internally generated intangible assets, such as goodwill and trade name, are not recognized as assets but expensed as incurred.

3.11 Impairment of Non-financial Assets

The Bank assesses at the end of each reporting period whether there is any indication that a non-financial asset, except for (a) deferred income tax assets, (b) assets arising from employee benefits and (c) non-current assets (or group of assets to be sold) classified as held for sale, may be impaired. If any such indication exists, the Bank estimates the recoverable amount of the asset. However, irrespective of whether there is any indication of impairment, the Bank tests (a) goodwill acquired in a business combination, (b) intangible assets with an indefinite useful life and (c) intangible assets not yet available for use for impairment annually by comparing their carrying amount with their recoverable amount.

The recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Bank determines the recoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit that are discounted by a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss and recognized immediately in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units that is expected to benefit from the synergies of the combination. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit.

An impairment loss recognized for goodwill is not reversed in a subsequent period. The Bank assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset, other than goodwill, may no longer exist or may have decreased, and an impairment loss recognized in prior periods for an asset other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss cannot exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

3.12 Non-current Assets Held for Sale

A non-current asset or disposal group is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be highly probable. A non-current asset (or disposal group) classified as held for sale is measured at the lower of (a) its carrying amount measured in accordance with the applicable Korean IFRS, immediately before the initial classification of the asset (or disposal group) as held for sale and (b) fair value less costs to sell.

A non-current asset is not depreciated (or amortized) while it is classified as held for sale or is part of a disposal group classified as held for sale.

24

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. Gain is recognized for any subsequent increase in fair value less costs to sell of an asset, but not in excess of the cumulative impairment loss that has been recognized.

3.13 Financial Liabilities

The Bank classifies financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Bank recognizes financial liabilities in the statement of financial position when the Bank becomes a party to the contractual provisions of the financial liability.

3.13.1 Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading or designated as such at initial recognition. After initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. At initial recognition, transaction costs that are directly attributable to the acquisition are recognized in profit or loss as incurred.

In relation to securities lending or borrowing transactions, when the Bank borrows securities from the Korea Securities Depository and others, these transactions are managed as off-balance sheet items. The borrowed securities are treated as financial liabilities at fair value through profit or loss when they are sold. Changes in fair value at the end of the reporting period and difference between carrying amount at redemption and purchased amount are recognized in profit or loss.

3.13.2 Other financial liabilities

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities. Other financial liabilities include deposits, borrowings, debentures, and others. At initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. After initial recognition, other financial liabilities are measured at amortized cost, and its interest expense is recognized, using the effective interest method.

When an asset is sold under repurchase agreement, the Bank continues to recognize the asset with the amount sold being accounted for as borrowings. The Bank derecognizes a financial liability from the statement of financial position only when it is extinguished (i.e., when the obligation specified in the contract is discharged, canceled or expires).

3.14 Provisions

Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Inevitable risks and uncertainties surrounding related events and circumstances are considered in measuring the best estimate of the provisions, and where the effect of the time value of money is material, the amount of provisions is the present value of the expenditures expected to be required to settle the obligation.

Provisions for confirmed and unconfirmed acceptances and guarantees, and unused credit lines of consumer and corporate loans are recognized using a valuation model that applies the credit conversion factor, PD, and LGD.

25

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provisions are reversed.

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfill it. If the Bank has a contract that is onerous, the present obligation under the contract is recognized and measured as provisions.

3.15 Financial Guarantee Contracts

Financial guarantee contracts require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the original or modified terms of a debt instrument.

Financial guarantee contracts are initially recognized at fair value, and classified as other liabilities and are amortized over the contractual term. After initial recognition, financial guarantee contracts are measured at the higher of:

• The amount determined in accordance with Korean IFRS No.1109 Financial Instruments and

• The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with Korean IFRS No.1115 Revenue from Contracts with Customers.

3.16 Equity Instrument Issued by the Bank

An equity instrument is any contract or agreement that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

3.16.1 Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or the exercise of stock option are deducted from the equity, net of any tax effects.

3.16.2 Hybrid securities

The financial instruments can be classified as either financial liabilities or equity in accordance with the terms of the contract. The Bank classifies hybrid securities as an equity if the Bank has the unconditional right to avoid any contractual obligation to deliver cash or another financial asset in relation to the financial instruments.

3.16.3 Compound financial instruments

A compound financial instrument is classified as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. The liability component of the compound financial instrument is measured at fair value of the similar liability without conversion option at initial recognition and subsequently measured at amortized cost using effective interest method until it is extinguished by conversion or matured. The equity component is initially measured at fair value of compound financial instrument in its entirety less fair value of liability component net of tax effect, and it is not remeasured subsequently.

26

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.17 Revenue Recognition

The Bank recognizes revenues in accordance with the following steps determined in accordance with Korean IFRS No.1115 Revenue from Contracts with Customers.

• Step 1: Identify the contract with a customer.

• Step 2: Identify the performance obligations in the contract.

• Step 3: Determine the transaction price.

• Step 4: Allocate the transaction price to the performance obligations in the contract.

• Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

3.17.1 Interest income and expense

Interest income and expense on debt securities at fair value through profit or loss (excluding beneficiary certificates, equity investments, and other debt instruments), loans, financial instruments at amortized cost, and debt securities at fair value through other comprehensive income are recognized in the statement of comprehensive income using the effective interest method in accordance with Korean IFRS No.1109 Financial Instruments. The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument or, where appropriate, a shorter period, to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Bank estimates expected cash flows by considering all contractual terms of the financial instrument but does not consider expected credit losses. The calculation includes all fees and points paid (main components of effective interest rate only) or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. In those rare cases when it is not possible to reliably estimate the cash flows and the expected life of a financial instrument, the Bank uses the contractual cash flows over the full contractual term of the financial instrument.

Interest income on impaired financial assets is recognized using the interest rate used to discount the expected cash flows for the purpose of measuring the impairment loss. Interest income on debt securities at fair value through profit or loss is also classified as interest income in the statement of comprehensive income.

3.17.2 Fee and commission income

The Bank recognizes financial service fees in accordance with the purpose of charging the fees and the accounting standards of the financial instrument related to the fees earned.

3.17.2.1 Fees that are an integral part of the effective interest of a financial instrument

Such fees are generally treated as adjustments of effective interest rate. Such fees may include compensation for activities such as evaluating the borrower’s financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating the terms of the instrument, preparing and processing documents, and closing the transaction and origination fees received on issuing financial liabilities at amortized cost. However, fees relating to the creation or acquisition of a financial instrument at fair value through profit or loss are recognized as revenue immediately.

27

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.17.2.2 Fees related to performance obligations satisfied over time

If the control of a good or service is transferred over time, the Bank recognizes revenue related to performance obligations over the period of performance obligations. Fees charged in return for the services for a certain period of time, such as asset management fees, consignment business fees, etc. are recognized over the period of performance obligations.

3.17.2.3 Fees related to performance obligations satisfied at a point in time

Fees earned at a point in time are recognized as revenue when a customer obtains control of a promised good or service and the Bank satisfies a performance obligation.

Commission on negotiation or participation in negotiation for the third party such as trading stocks or other securities, arranging merger and acquisition of business, is recognized as revenue when the transaction has been completed.

If the Bank arranges a syndicated loan but does not participate in the syndicated loan or participates in the syndicated loan with the same effective profit as other participants, a syndication arrangement fee is recognized as revenue at the completion of the syndication service.

3.17.3 Net gains or losses on financial instruments at fair value through profit or loss

Net gains or losses on financial instruments at fair value through profit or loss (including changes in fair value, dividends, and gains or losses from foreign currency translation) include gains or losses on financial instruments as follows:

• Gains or losses relating to financial instruments at fair value through profit or loss (excluding interest income using the effective interest rate method)

• Gains or losses relating to derivative financial instruments for trading (including derivative financial instruments for hedging purpose but do not qualify for hedge accounting)

3.17.4 Dividend income

Dividend income is recognized in profit or loss when the right to receive payment is established. Dividend income is recognized as net gains or losses on financial instruments at fair value through profit or loss or other operating income depending on the classification of equity securities.

3.18 Employee Compensation and Benefits

3.18.1 Post-employment benefits

3.18.1.1 Defined contribution plans

When an employee has rendered service to the Bank during a period, the Bank recognizes the contribution payable to a defined contribution plan in exchange for that service as post-employment benefits for the period.

28

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.18.1.2 Defined benefit plans

All post-employment benefits, other than defined contribution plans, are classified as defined benefit plans. The amount recognized as a net defined benefit liability is the present value of the defined benefit obligation less the fair value of plan assets at the end of the reporting period.

The present value of the defined benefit obligation is calculated annually by a qualified actuary using the projected unit credit method. The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the reporting period on high quality corporate bonds. The currency and term of the corporate bonds are consistent with the currency and estimated term of the post-employment benefit obligations. Actuarial gains and losses resulting from changes in actuarial assumptions and experience adjustments are recognized in other comprehensive income.

When the present value of the defined benefit obligation minus the fair value of plan assets results in an asset, it is recognized to the extent of the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting from the introduction or changes to a defined benefit plan. Such past service cost is immediately recognized as an expense for the period.

3.18.2 Short-term employee benefits

Short-term employee benefits are employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. When an employee has rendered service to the Bank during an accounting period, the Bank recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense for the period.

The expected cost of profit-sharing and bonus payments is recognized as liabilities when the Bank has a present legal or constructive obligation to make payments as a result of past events, such as service rendered by employees, and a reliable estimate of the obligation can be made.

3.18.3 Share-based payment

The Bank provides its executives and employees with stock grants and mileage stock programs. When stock grants are exercised, the Bank can either select to distribute shares of KB Financial Group Inc., the Parent Company or compensate in cash based on the share price. When mileage stock is exercised, the Bank pays the amount equivalent to share price of KB Financial Group Inc. in cash.

For a share-based payment transaction in which the terms of the arrangement provide the Bank with the choice of whether to settle in cash or by issuing equity instruments, the Bank accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions because the Bank determines that it has a present obligation to settle in cash based on a past practice and a stated policy of settling in cash. Therefore, the Bank measures the liability incurred as consideration for the service received at fair value and recognizes related expense and accrued expense over the vesting periods. For mileage stock, the Bank accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions, which are recognized as expenses and accrued expenses at the time of vesting.

Until the liability is settled, the Bank remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

29

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.18.4 Termination benefits

Termination benefits are payable when employment is terminated by the Bank before the normal retirement date, or an employee’s decision to accept an offer of benefits in exchange for the termination of employment. The Bank recognizes a liability and expense for termination benefits at the earlier of the following dates; when the Bank can no longer withdraw the offer of those benefits and when the Bank recognizes costs for a restructuring that is within the scope of Korean IFRS No.1037 and involves the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, then the termination benefits are discounted to present value.

3.19 Income Tax Expense

Income tax expense comprises current tax expense and deferred income tax expense. Current and deferred income taxes are recognized as income or expense and included in profit or loss for the period, except to the extent that the tax arises from (a) a transaction or event which is recognized, in the same or a different period, outside profit or loss, either in other comprehensive income or directly in equity and (b) a business combination.

3.19.1 Current income tax

Current income tax is the amount of income tax payable (recoverable) in respect of the taxable profit (tax loss) for a period. A difference between the taxable profit and accounting profit may arise when income or expense is included in accounting profit in one period but is included in taxable profit in a different period. Differences may also arise if there is revenue that is exempt from taxation, or expense that is not deductible in determining taxable profit (loss). Current income tax liabilities for the current and prior periods are measured using the tax rates that have been enacted or substantively enacted by the end of the reporting period.

The Bank offsets current income tax assets and current income tax liabilities if, and only if, the Bank (a) has a legally enforceable right to offset the recognized amounts and (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

3.19.2 Deferred income tax

Deferred income tax is recognized, using the asset-liability method, on temporary differences arising between the tax-based amount of assets and liabilities and their carrying amount in the financial statements. Deferred income tax liabilities are recognized for all taxable temporary differences and deferred income tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax assets and liabilities are not recognized if they arise from the initial recognition of an asset or liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting nor taxable profit or loss.

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period. The Bank reduces the carrying amount of a deferred income tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

30

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Bank expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Bank offsets deferred income tax assets and deferred income tax liabilities if, and only if the Bank has a legally enforceable right to offset current income tax assets against current income tax liabilities and the deferred income tax assets and the deferred income tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current income tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred income tax liabilities or assets are expected to be settled or recovered.

3.19.3 Uncertain tax positions

Uncertain tax positions arise from tax treatments applied by the Bank which may be challenged by the tax authorities due to the complexity of the transaction or different interpretation of the tax laws, such as a claim for rectification, a claim for a refund related to additional tax or a tax investigation by the tax authorities. The Bank recognizes its uncertain tax positions in the financial statements in accordance with Korean IFRS No.1012 and Interpretation of Korean IFRS No.2123. The income tax asset is recognized if a tax refund is probable for taxes levied by the tax authority, and the amount to be paid as a result of the tax investigation and others is recognized as the current tax payable. However, penalty tax and additional refund on tax are regarded as penalty or interest and are accounted for in accordance with Korean IFRS No.1037.

3.20 Transactions with the Trust Accounts

The Bank accounts for trust assets separately from its own assets in accordance with the Financial Investment Services and Capital Markets Act. The borrowings from trust accounts represent transfer of funds in trust accounts into banking accounts. Such borrowings from trust accounts are recorded as receivables from the banking accounts in the trust accounts and as borrowings from trust accounts in the banking accounts. The Bank earns trust fees from the trust accounts for its management of trust assets and operations. The reserves for future profits and losses are set up in the trust accounts for profits and losses related to those trust funds with a guarantee of the principal or of the principal and a certain minimum rate of return in accordance with the relevant laws and regulations applicable to trust operations. The reserves are used to provide for the losses on such trust funds and, if the losses incurred are in excess of the reserves, the excess losses are compensation paid as a loss on trust management in other operating expenses and the trust accounts recognize the corresponding compensation as compensation from banking accounts.

3.21 Leases

The Bank as a lessor recognizes lease payments from operating leases as income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the statement of financial position based on their nature.

A lessee is required to recognize a right-of-use asset (lease assets) representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Assets and liabilities arising from a lease are initially measured at the present value.

31

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Lease liabilities include the net present value of the following lease payments:

• Fixed payments (including in-substance fixed payments), less any lease incentives receivable

• Variable lease payments that depend on an index or a rate

• Amounts expected to be payable by the lessee under residual value guarantees

• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

The lease payments are discounted using the interest rate implicit in the lease if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, which is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

Right-of-use assets are measured at cost comprising the following:

• The amount of the initial measurement of the lease liability

• Any lease payments made at or before the commencement date, less any lease incentives received

• Any initial direct costs incurred by the lessee, and

• An estimate of restoration costs

However, the Bank can elect not to apply the requirements of Korean IFRS No.1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under USD 5,000). The Bank applies the exemption of the standard for one time lease of real estate (for training purpose) and leases of low-value assets (underlying assets less than W 5 million or USD 5,000).

The right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

For sale and leaseback transactions, the Bank applies the requirements of Korean IFRS No.1115 Revenue from Contracts with Customers, to determine whether the transfer of an asset is accounted for as a sale of that asset.

3.22 Operating Segments

The Bank identifies its operating segments based on internal reports which are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Segment information includes items which are directly attributable and can be allocated to the segment on a reasonable basis.

32

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

The financial risks that the Bank is exposed to are credit risk, market risk, liquidity risk, operational risk, and others.

This note regarding financial risk management provides information about the risks that the Bank is exposed to and about its objectives, policies, risk assessment and management procedures, and capital management. Additional quantitative information is disclosed throughout the separate financial statements.

The Bank’s risk management system focuses on efficiently supporting long-term strategy and management decisions of each business group through increased risk transparency, spread of risk management culture, prevention of risk transfer between risk types, and preemptive response to rapidly changing financial environments. Credit risk, market risk, liquidity risk, and operational risk are recognized as the Bank’s significant risks and measured and managed by quantifying them in the form of internal capital or Value at Risk (“VaR”) using statistical methods.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

The Risk Management Committee, as the ultimate decision-making body, approves risk-related issues, such as establishing risk management strategies in accordance with the strategic direction determined by the board of directors, determining the affordable level of risk appetite, and reviewing the level of risk and the status of risk management activities.

4.1.2.2 Risk Management Council

The Risk Management Council deliberates on and resolves matters delegated by the Risk Management Committee and discusses the details of risk management policies and procedures of the Bank.

4.1.2.3 Risk Management Subcommittees

The Risk Management Subcommittee implements decisions made by the Risk Management Council and makes practical decisions regarding the implementation of risk management policies and procedures.

- Credit Risk Management Subcommittee

The Credit Risk Management Subcommittee conducts deliberation and resolution on new approval of non-standard and compound instruments with embedded credit risks, review of credit risks for new products with credit risks, and establishment of exposure limits by industry.

- Market Risk Management Subcommittee

The Market Risk Management Subcommittee conducts deliberation and resolution on market risk-related matters, such as setting limits on market risk and approving detailed investment standards for new standard, non-standard and compound products.

- Operational Risk Management Subcommittee

The Operational Risk Management Subcommittee reviews the issues that have a significant effect on the Bank’s operational risk such as establishment, amendment and abolition of major system, process and others.

33

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

- Trust & Fund Customer Asset Risk Management Subcommittee

The Trust & Fund Customer Asset Risk Management Subcommittee reviews the issues that have a significant effect on the trust & fund customer asset risk management such as setting limits on trust & fund customer assets.

4.1.2.4 Risk Management Group

The Risk Management Group manages detailed risk management policies, procedures, and business processes.

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty’s default, breach of contract, and deterioration of credit quality. For risk management reporting purposes, the Bank considers all factors of credit risk exposure, such as default risk of individual borrowers, country risk, and risk of specific sectors. The Bank defines default as the definition applied to the calculation of Capital Adequacy Ratio under the new Basel Accord (Basel III).

4.2.2 Credit risk management

The Bank measures the expected loss and internal capital for the assets subject to credit risk management, including on-balance and off-balance sheet assets, and uses them as management indicators. The Bank allocates and manages credit risk internal capital limits.

In addition, to prevent excessive concentration of exposures by borrower and industry, the total exposure limit at the Bank level is introduced, applied, and managed to control the credit concentration risk.

All of the Bank’s loan customers (individuals and corporates) are assigned a credit rating and managed by a credit evaluation system. For individuals, the credit rating is evaluated by utilizing personal information, income and job information, asset information, and bank transaction information. For corporates, the credit rating is evaluated by analyzing and utilizing financial and non-financial information which measures current and future corporate value and ability to repay the debt. Also, the extent to which corporates have the ability to meet debt obligations is comprehensively considered.

The credit rating, once assigned, serves as the fundamental instrument in the Bank’s credit risk management, and is applied in a wide range of credit risk management processes, including credit approval, credit limit management, loan pricing, and assessment of allowances for credit losses. For corporates, the Bank conducts a regular credit evaluation at least once a year, and the review and supervision departments regularly validate the adequacy of credit ratings to manage credit risks.

In order to establish a credit risk management system, the Bank manages credit risk by forming a separate risk management organization. In particular, independently of the Sales Group, the Credit Management & Analysis Group, Retail Customer Group and SME/SOHO Customer Group are in charge of loan policy, loan system, credit rating, credit analysis, follow-up management, and corporate restructuring. The Risk Management Group is responsible for establishing policies on credit risk management, measuring and limiting internal capital of credit risk, setting credit limits, credit review, and verification of credit rating models.

34

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.3 Maximum exposure to credit risk

The Bank’s maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Financial assets
Due from financial institutions 1		19,565,743		19,945,791
Financial assets at fair value through profit or loss:
Securities measured at fair value through profit or loss		16,082,972		17,645,808
Loans measured at fair value through profit or loss		288,319		280,905
Due from financial institutions measured at fair value through profit or loss		93,743		90,006
Derivatives		5,055,495		7,747,794
Loans measured at amortized cost 1		373,623,010		363,839,085
Financial investments:
Securities measured at fair value through other comprehensive income		36,723,370		37,760,143
Securities measured at amortized cost 1		38,313,663		34,616,403
Loans measured at fair value through other comprehensive income		311,610		231,021
Other financial assets 1		10,597,311		6,601,913
		500,655,236		488,758,869
Off-balance sheet items 2
Acceptances and guarantees contracts		13,881,990		11,931,683
Financial guarantee contracts		8,746,537		8,903,700
Commitments		117,276,318		108,124,484
		139,904,845		128,959,867
		640,560,081		617,718,736

¹ After netting of allowance

² For details of related provisions, see Note 22.

4.2.4 Credit risk of loans

The Bank maintains allowances for loan losses associated with credit risk of loans to manage its credit risk.

The Bank assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial assets at fair value through other comprehensive income (debt instruments). Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurring in a certain range by reflecting supportable information that is reasonably available at the end of the reporting period without undue cost or effort, including information about past events, current conditions, and forecasts of future economic conditions. The Bank measures the expected credit losses of loans classified as financial assets at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income in the financial statements.

35

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.4.1 Credit risk exposure

Credit qualities of loans as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
			Non- impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1		126,847,378		6,828,168		2,192		—		—		133,677,738
Grade 2		56,835,941		10,029,756		2,192		—		—		66,867,889
Grade 3		2,503,540		3,316,079		7,988		—		—		5,827,607
Grade 4		480,736		944,184		5,351		—		—		1,430,271
Grade 5		15,392		500,876		775,525		—		—		1,291,793
		186,682,987		21,619,063		793,248		—		—		209,095,298
Retail
Grade 1		154,411,966		3,999,067		9,503		—		—		158,420,536
Grade 2		2,632,827		3,479,579		6,240		—		—		6,118,646
Grade 3		245,509		1,122,067		8,674		—		—		1,376,250
Grade 4		12,678		139,990		3,590		—		—		156,258
Grade 5		18,037		429,044		484,801		—		—		931,882
		157,321,017		9,169,747		512,808		—		—		167,003,572
		344,004,004		30,788,810		1,306,056		—		—		376,098,870
Loans measured at fair value through other comprehensive income
Corporate
Grade 1		272,601		—		—		—		—		272,601
Grade 2		39,009		—		—		—		—		39,009
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		311,610		—		—		—		—		311,610
		311,610		—		—		—		—		311,610
		344,315,614		30,788,810		1,306,056		—		—		376,410,480

36

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.4.1 Credit risk exposure (cont’d)

(In millions of Korean won)	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
			Non-impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1		122,903,840		4,955,573		3,338		—		—		127,862,751
Grade 2		55,954,318		7,617,430		4,422		—		—		63,576,170
Grade 3		2,567,131		2,984,313		4,372		—		—		5,555,816
Grade 4		479,451		795,211		6,576		—		—		1,281,238
Grade 5		11,864		394,372		388,750		—		—		794,986
		181,916,604		16,746,899		407,458		—		—		199,070,961
Retail
Grade 1		153,876,481		3,987,402		10,819		—		—		157,874,702
Grade 2		2,756,890		3,626,799		6,782		—		—		6,390,471
Grade 3		248,891		1,159,886		10,075		—		—		1,418,852
Grade 4		17,204		134,959		2,675		—		—		154,838
Grade 5		14,894		313,447		374,648		—		—		702,989
		156,914,360		9,222,493		404,999		—		—		166,541,852
		338,830,964		25,969,392		812,457		—		—		365,612,813
Loans measured at fair value through other comprehensive income
Corporate
Grade 1		171,194		—		—		—		—		171,194
Grade 2		59,827		—		—		—		—		59,827
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		231,021		—		—		—		—		231,021
		231,021		—		—		—		—		231,021
		339,061,985		25,969,392		812,457		—		—		365,843,834

* Before netting of allowance

Credit qualities of loans graded according to internal credit ratings as of December 31, 2023 and 2022, are as follows:

	Corporate	Retail
Grade 1	AAA ~ BBB+	1 ~ 5 grade
Grade 2	BBB ~ BB	6 ~ 8 grade
Grade 3	BB- ~ B	9 ~ 10 grade
Grade 4	B- ~ CCC	11 grade
Grade 5	CC or under	12 grade or under

37

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.4.2 Credit risk mitigation by collateral

Quantification of the extent to which collateral and other credit enhancements mitigate credit risk of loans as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
			Non- impaired		Impaired
Guarantees		112,580,071		7,592,178		289,273		—		—		120,461,522
Deposits and savings		2,451,088		124,103		7,393		—		—		2,582,584
Property and equipment		3,880,000		644,593		9,847		—		—		4,534,440
Real estate		185,981,312		17,776,565		355,311		—		—		204,113,188
		304,892,471		26,137,439		661,824		—		—		331,691,734

(In millions of Korean won)	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
			Non- impaired		Impaired
Guarantees		99,103,292		7,027,978		177,359		—		—		106,308,629
Deposits and savings		1,697,804		108,318		6,771		—		—		1,812,893
Property and equipment		3,823,241		662,823		3,943		—		—		4,490,007
Real estate		177,110,087		14,209,865		281,535		—		—		191,601,487
		281,734,424		22,008,984		469,608		—		—		304,213,016

38

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.5 Credit risk of securities

Credit qualities of securities exposed to credit risk other than equity securities among financial investments as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
			Non- impaired		Impaired
Securities measured at amortized cost *
Grade 1		35,091,663		—		—		—		—		35,091,663
Grade 2		3,240,110		—		—		—		—		3,240,110
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		38,331,773		—		—		—		—		38,331,773
Securities measured at fair value through other comprehensive income
Grade 1		33,871,127		—		—		—		—		33,871,127
Grade 2		2,826,096		—		—		—		—		2,826,096
Grade 3		26,147		—		—		—		—		26,147
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		36,723,370		—		—		—		—		36,723,370
		75,055,143		—		—		—		—		75,055,143

(In millions of Korean won)	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Not applying expected credit losses		Total
			Non- impaired		Impaired
Securities measured at amortized cost *
Grade 1		33,468,589		—		—		—		—		33,468,589
Grade 2		1,153,198		—		—		—		—		1,153,198
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—
		34,621,787		—		—		—		—		34,621,787
Securities measured at fair value through other comprehensive income
Grade 1		35,232,645		—		—		—		—		35,232,645
Grade 2		2,446,738		—		—		—		—		2,446,738
Grade 3		53,011		9,169		—		—		—		62,180
Grade 4		13,940		4,640		—		—		—		18,580
Grade 5		—		—		—		—		—		—
		37,746,334		13,809		—		—		—		37,760,143
		72,368,121		13,809		—		—		—		72,381,930

* Before netting of allowance

39

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Credit qualities of securities other than equity securities, according to the credit ratings by external credit rating agencies as of December 31, 2023 and 2022, are as follows:

Credit quality	Domestic			Foreign
	KIS	NICE P&I	FnPricing Inc.	S&P	Fitch-IBCA	Moody’s
Grade 1	AA0 to AAA	AA0 to AAA	AA0 to AAA	A- to AAA	A- to AAA	A3 to Aaa
Grade 2	A- to AA-	A- to AA-	A- to AA-	BBB- to BBB+	BBB- to BBB+	Baa3 to Baa1
Grade 3	BBB0 to BBB+	BBB0 to BBB+	BBB0 to BBB+	BB to BB+	BB to BB+	Ba2 to Ba1
Grade 4	BB0 to BBB-	BB0 to BBB-	BB0 to BBB-	B+ to BB-	B+ to BB-	B1 to Ba3
Grade 5	BB- or under	BB- or under	BB- or under	B or under	B or under	B2 or under

Credit qualities of debt securities denominated in Korean won are based on the lowest credit rating by the domestic credit rating agencies above, and those denominated in foreign currencies are based on the lowest credit rating by the foreign credit rating agencies above.

4.2.6 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Total
			Non-impaired		Impaired
Due from financial institutions measured at amortized cost *
Grade 1		19,565,136		—		—		—		19,565,136
Grade 2		697		—		—		—		697
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—
		19,565,833		—		—		—		19,565,833

(In millions of Korean won)	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Credit impaired approach		Total
			Non-impaired		Impaired
Due from financial institutions measured at amortized cost *
Grade 1		19,945,174		—		—		—		19,945,174
Grade 2		644		—		—		—		644
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—
		19,945,818		—		—		—		19,945,818

* Before netting of allowance

The classification criteria of the credit qualities of due from financial institutions as of December 31, 2023 and 2022, are the same as the criteria for securities other than equity securities.

40

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.7 Credit risk mitigation of derivative financial instruments

Quantification of the extent to which collateral mitigates credit risk of derivative financial instruments as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Deposits, savings, securities, and others		1,096,855		2,092,136

4.2.8 Credit risk concentration analysis

4.2.8.1 Classifications of loans by country as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Retail		Corporate *		Total		%		Allowances			Carrying amount
Korea		166,905,845		191,373,532		358,279,377		95.11		(2,273,193	)		356,006,184
Japan		—		986,037		986,037		0.26		(2,369	)		983,668
United States		—		5,497,558		5,497,558		1.46		(164,141	)		5,333,417
China		—		5,377,674		5,377,674		1.43		(9,447	)		5,368,227
Others		97,727		6,460,426		6,558,153		1.74		(26,710	)		6,531,443
		167,003,572		209,695,227		376,698,799		100.00		(2,475,860	)		374,222,939

(In millions of Korean won)	December 31, 2022
	Retail		Corporate *		Total		%		Allowances			Carrying amount
Korea		166,411,568		182,396,615		348,808,183		95.27		(1,734,857	)		347,073,326
Japan		—		1,150,151		1,150,151		0.31		(1,756	)		1,148,395
United States		—		4,871,778		4,871,778		1.33		(14,867	)		4,856,911
China		—		5,258,447		5,258,447		1.44		(8,885	)		5,249,562
Others		130,284		5,905,896		6,036,180		1.65		(13,363	)		6,022,817
		166,541,852		199,582,887		366,124,739		100.00		(1,773,728	)		364,351,011

* Expected credit losses of loans measured at fair value through other comprehensive income as of December 31, 2023 and 2022, are W 880 million and W 496 million, respectively.

41

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.8.2 Classifications of corporate loans by industry as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Loans		%		Allowances			Carrying amount
Financial institutions		20,854,858		9.95		(37,438	)		20,817,420
Manufacturing		48,769,118		23.26		(514,472	)		48,254,646
Service		98,222,206		46.84		(851,163	)		97,371,043
Wholesale and retail		26,774,389		12.77		(249,550	)		26,524,839
Construction		4,487,087		2.14		(115,376	)		4,371,711
Public sector		1,620,778		0.77		(6,111	)		1,614,667
Others		8,966,791		4.27		(41,611	)		8,925,180
		209,695,227		100.00		(1,815,721	)		207,879,506

(In millions of Korean won)	December 31, 2022
	Loans		%		Allowances			Carrying amount
Financial institutions		19,346,929		9.69		(14,398	)		19,332,531
Manufacturing		50,628,397		25.37		(481,647	)		50,146,750
Service		89,946,877		45.07		(279,855	)		89,667,022
Wholesale and retail		26,586,877		13.32		(147,875	)		26,439,002
Construction		3,861,434		1.93		(88,650	)		3,772,784
Public sector		1,488,995		0.75		(3,676	)		1,485,319
Others		7,723,378		3.87		(32,043	)		7,691,335
		199,582,887		100.00		(1,048,144	)		198,534,743

4.2.8.3 Classifications of retail loans as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Loans		%		Allowances			Carrying amount
Housing loan		94,609,659		56.65		(163,707	)		94,445,952
General loan		72,393,913		43.35		(496,432	)		71,897,481
		167,003,572		100.00		(660,139	)		166,343,433

(In millions of Korean won)	December 31, 2022
	Loans		%		Allowances			Carrying amount
Housing loan		93,209,361		55.97		(135,861	)		93,073,500
General loan		73,332,491		44.03		(589,723	)		72,742,768
		166,541,852		100.00		(725,584	)		165,816,268

42

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.8.4 Classifications of domestic mortgage loans as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Loans *		%		Allowances			Carrying amount
Group 1		21,006,447		19.73		(26,612	)		20,979,835
Group 2		27,707,017		26.03		(22,614	)		27,684,403
Group 3		34,998,430		32.88		(47,932	)		34,950,498
Group 4		21,280,610		19.99		(51,066	)		21,229,544
Group 5		1,437,246		1.36		(5,195	)		1,432,051
Group 6		14,329		0.01		(127	)		14,202
		106,444,079		100.00		(153,546	)		106,290,533

(In millions of Korean won)	December 31, 2022
	Loans *		%		Allowances			Carrying amount
Group 1		15,950,511		16.30		(17,178	)		15,933,333
Group 2		35,821,717		36.62		(40,603	)		35,781,114
Group 3		35,626,337		36.42		(45,807	)		35,580,530
Group 4		10,020,031		10.24		(12,809	)		10,007,222
Group 5		399,823		0.41		(618	)		399,205
Group 6		11,588		0.01		(74	)		11,514
		97,830,007		100.00		(117,089	)		97,712,918

* Retail loans for general purpose with the real estate as collateral are included.

	Ranges
Group 1	LTV 0% to less than 20%
Group 2	LTV 20% to less than 40%
Group 3	LTV 40% to less than 60%
Group 4	LTV 60% to less than 80%
Group 5	LTV 80% to less than 100%
Group 6	LTV over 100%

* LTV: Loan to Value ratio

43

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance		19,565,833		100.00		(90	)		19,565,743
		19,565,833		100.00		(90	)		19,565,743
Securities measured at fair value through profit or loss
Government and government funded institutions		5,528,568		34.38		—			5,528,568
Finance and insurance 1		9,711,373		60.39		—			9,711,373
Others		843,031		5.23		—			843,031
		16,082,972		100.00		—			16,082,972
Derivative financial assets
Government and government funded institutions		50,165		0.99		—			50,165
Finance and insurance 1		4,698,377		92.94		—			4,698,377
Others		306,953		6.07		—			306,953
		5,055,495		100.00		—			5,055,495
Securities measured at fair value through other comprehensive income 2
Government and government funded institutions		13,577,033		36.97		—			13,577,033
Finance and insurance		17,189,889		46.81		—			17,189,889
Others		5,956,448		16.22		—			5,956,448
		36,723,370		100.00		—			36,723,370
Securities measured at amortized cost
Government and government funded institutions		15,714,147		41.00		(29	)		15,714,118
Finance and insurance		22,312,351		58.21		(17,532	)		22,294,819
Others		305,275		0.79		(549	)		304,726
		38,331,773		100.00		(18,110	)		38,313,663
		115,759,443				(18,200	)		115,741,243

44

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2022
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance		19,945,818		100.00		(27	)		19,945,791
		19,945,818		100.00		(27	)		19,945,791
Securities measured at fair value through profit or loss
Government and government funded institutions		4,174,159		23.66		—			4,174,159
Finance and insurance 1		12,882,794		73.01		—			12,882,794
Others		588,855		3.33		—			588,855
		17,645,808		100.00		—			17,645,808
Derivative financial assets
Government and government funded institutions		56,464		0.73		—			56,464
Finance and insurance 1		7,325,952		94.56		—			7,325,952
Others		365,378		4.71		—			365,378
		7,747,794		100.00		—			7,747,794
Securities measured at fair value through other comprehensive income 2
Government and government funded institutions		14,463,252		38.30		—			14,463,252
Finance and insurance		17,317,355		45.86		—			17,317,355
Others		5,979,536		15.84		—			5,979,536
		37,760,143		100.00		—			37,760,143
Securities measured at amortized cost
Government and government funded institutions		16,369,689		47.28		—			16,369,689
Finance and insurance		17,711,131		51.16		(5,068	)		17,706,063
Others		540,967		1.56		(316	)		540,651
		34,621,787		100.00		(5,384	)		34,616,403
		117,721,350				(5,411	)		117,715,939

¹  Collective investment securities (including transactions with collective investment schemes) are classified as finance and insurance.

²  Expected credit losses of securities measured at fair value through other comprehensive income as of December 31, 2023 and 2022, are W 14,102 million and W 5,991 million, respectively.

45

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.8.6 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea		15,338,978		78.40		—			15,338,978
United States		2,970,671		15.18		(88	)		2,970,583
Others		1,256,184		6.42		(2	)		1,256,182
		19,565,833		100.00		(90	)		19,565,743
Securities measured at fair value through profit or loss
Korea		14,550,324		90.47		—			14,550,324
United States		76,944		0.48		—			76,944
Others		1,455,704		9.05		—			1,455,704
		16,082,972		100.00		—			16,082,972
Derivative financial assets
Korea		2,107,883		41.69		—			2,107,883
United States		983,392		19.45		—			983,392
France		863,376		17.08		—			863,376
Others		1,100,844		21.78		—			1,100,844
		5,055,495		100.00		—			5,055,495
Securities measured at fair value through other comprehensive income *
Korea		34,023,560		92.65		—			34,023,560
United States		778,474		2.12		—			778,474
Others		1,921,336		5.23		—			1,921,336
		36,723,370		100.00		—			36,723,370
Securities measured at amortized cost
Korea		35,280,415		92.04		(14,644	)		35,265,771
United States		1,082,997		2.83		(1,003	)		1,081,994
United Kingdom		737,765		1.92		(909	)		736,856
Others		1,230,596		3.21		(1,554	)		1,229,042
		38,331,773		100.00		(18,110	)		38,313,663
		115,759,443				(18,200	)		115,741,243

46

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.2.8.6 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2022
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea		16,567,043		83.06		—			16,567,043
United States		2,171,613		10.89		(26	)		2,171,587
Others		1,207,162		6.05		(1	)		1,207,161
		19,945,818		100.00		(27	)		19,945,791
Securities measured at fair value through profit or loss
Korea		16,209,344		91.86		—			16,209,344
United States		994,551		5.64		—			994,551
Others		441,913		2.50		—			441,913
		17,645,808		100.00		—			17,645,808
Derivative financial assets
Korea		3,456,882		44.62		—			3,456,882
United States		1,325,575		17.11		—			1,325,575
France		1,281,270		16.54		—			1,281,270
Others		1,684,067		21.73		—			1,684,067
		7,747,794		100.00		—			7,747,794
Securities measured at fair value through other comprehensive income *
Korea		34,586,537		91.60		—			34,586,537
United States		732,183		1.94		—			732,183
Others		2,441,423		6.46		—			2,441,423
		37,760,143		100.00		—			37,760,143
Securities measured at amortized cost
Korea		30,511,462		88.13		(3,746	)		30,507,716
United States		2,740,296		7.91		(949	)		2,739,347
United Kingdom		111,146		0.32		(89	)		111,057
Others		1,258,883		3.64		(600	)		1,258,283
		34,621,787		100.00		(5,384	)		34,616,403
		117,721,350				(5,411	)		117,715,939

* Expected credit loss of securities measured at fair value through other comprehensive income as of December 31, 2023 and 2022, are W 14,102 million and W 5,991 million, respectively.

Due from financial institutions, financial instruments at fair value through profit or loss linked to gold price, and derivative financial instruments are mostly related to the finance and insurance industry with high credit ratings.

47

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Bank becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Bank manages its liquidity risk through analysis of the contractual maturity of interest-bearing assets and liabilities, assets and liabilities related to the other inflows and outflows of funds, and off-balance sheet items related to the inflows and outflows of funds such as currency derivative instruments and others.

4.3.2 Liquidity risk management and indicator

The liquidity risk is managed by comprehensive risk management policies and Asset Liability Management (“ALM”) risk management guidelines set forth in these policies that apply to all risk management policies and procedures that may arise throughout the overall business of the Bank.

The Bank establishes a liquidity risk management strategy, including objectives of liquidity risk management, management policies, and internal control systems, and obtains approval from the Risk Management Committee. The Risk Management Committee establishes the Risk Management Council for efficient risk management to supervise the establishment and implementation of policies according to risk management strategies.

The Bank calculates and manages the Liquidity Coverage Ratio (“LCR”), Net Stable Funding Ratio (“NSFR”), liquidity ratio, maturity mismatch ratio and liquidity stress testing results for all transactions and off-balance sheet transactions, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Council and the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

The cash flows disclosed in the maturity analysis are undiscounted contractual amounts including principal and future interest payments; as such, amounts in the table below do not match with those in the statements of financial position which are based on discounted cash flows. The future interest payments of floating-rate liabilities are calculated on the assumption that the current interest rate is the same until maturity.

48

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years			Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1		93,438		—		—		—		—		—			93,438
Derivatives held for trading 1		4,516,443		—		—		—		—		—			4,516,443
Derivatives held for hedging 2		—		210		8,197		34,520		48,684		(4,255	)		87,356
Deposits 3		160,894,231		33,318,904		52,690,685		126,582,238		15,228,415		205,271			388,919,744
Borrowings		54,900		11,460,876		4,441,077		10,359,316		6,764,446		1,004,289			34,084,904
Debentures		10,077		1,471,546		1,121,244		11,974,016		13,395,473		4,364,158			32,336,514
Lease liabilities		243		14,204		26,100		104,791		189,956		7,804			343,098
Other financial liabilities		2,966		20,504,757		19,786		135,192		—		—			20,662,701
		165,572,298		66,770,497		58,307,089		149,190,073		35,626,974		5,577,267			481,044,198
Off-balance sheet items
Commitments 4		117,276,318		—		—		—		—		—			117,276,318
Acceptances and guarantees contracts 5		13,881,990		—		—		—		—		—			13,881,990
Financial guarantee contracts 5		8,746,537		—		—		—		—		—			8,746,537
		139,904,845		—		—		—		—		—			139,904,845

(In millions of Korean won)	December 31, 2022
	On demand		Up to 1 month			1-3 months		3-12 months		1-5 years		Over 5 years		Total
Financial liabilities
Financial liabilities at fair value through profit or loss 1		108,862		—			—		—		—		—		108,862
Derivatives held for trading 1		7,189,931		—			—		—		—		—		7,189,931
Derivatives held for hedging 2		—		(558	)		5,312		24,067		66,255		3,502		98,578
Deposits 3		163,687,546		26,775,519			43,396,062		125,156,957		16,327,376		120,331		375,463,791
Borrowings		53,419		17,958,792			5,880,487		12,857,018		6,782,533		1,039,115		44,571,364
Debentures		11,117		1,704,736			3,182,288		12,368,410		7,925,124		4,735,017		29,926,692
Lease liabilities		164		14,140			27,878		105,307		183,763		12,314		343,566
Other financial liabilities		—		13,685,320			465		128,095		—		—		13,813,880
		171,051,039		60,137,949			52,492,492		150,639,854		31,285,051		5,910,279		471,516,664
Off-balance sheet items
Commitments 4		108,124,484		—			—		—		—		—		108,124,484
Acceptances and guarantees contracts 5		11,931,683		—			—		—		—		—		11,931,683
Financial guarantee contracts 5		8,903,700		—			—		—		—		—		8,903,700
		128,959,867		—			—		—		—		—		128,959,867

¹ Financial liabilities at fair value through profit or loss and derivatives held for trading are not managed by contractual maturity because they are expected to be traded or redeemed before maturity. Therefore, the carrying amounts of those financial instruments are included in the ‘On demand’ category.

² Cash flows of derivatives held for hedging are shown at net amount of cash inflows and outflows by remaining contractual maturity.

³ Deposits that are contractually repayable on demand or on short notice are included in the ‘On demand’ category.

⁴ Unused lines of credit among commitments are included in the ‘On demand’ category because payments can be requested at any time.

⁵ Cash flows under acceptances and financial guarantee contracts are classified based on the earliest period that the contract can be executed.

49

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.3.3.2 Contractual cash flows of derivatives held for cash flow hedge as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Cash flow to be received from net-settled derivatives		1,127		6,638		22,111		69,344		—		99,220
Cash flow to be paid from net-settled derivatives		133		—		—		—		—		133

(In millions of Korean won)	December 31, 2022
	Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Cash flow to be received from net-settled derivatives		337		8,038		13,090		49,098		—		70,563
Cash flow to be paid from net-settled derivatives		218		975		1,571		93		—		2,857

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc., which arise from securities, derivatives, and others. The most significant risks associated with trading positions are interest rate risk, currency risk, and additional risks including stock price risk. The non-trading position is also exposed to interest rate risk. The Bank manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position.

4.4.2 Risk management

The Bank sets and monitors internal capital limits for market risk and interest rate risk to manage the risks of trading and non-trading positions. In order to manage market risk efficiently, the Bank maintains risk management systems and procedures such as trading policies and procedures, market risk management guidelines for trading positions, and ALM risk management guidelines for non-trading positions. The entire process is carried out through the approval by the Risk Management Council and the Risk Management Committee of the Bank.

The Bank’s Risk Management Council establishes and enforces overall market risk management policies for market risk management and decides to establish position limits, loss limits, VaR limits, and approves non-standard new products. In addition, the Market Risk Management Subcommittee, chaired by Chief Risk Officer (“CRO”), is a practical decision-making body for market risk management and determines position limits, loss limits, VaR limits, sensitivity limits, and scenario loss limits for each department of the business group.

50

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

The Asset-Liability Management Committee (“ALCO”) determines interest rate and commission operating standards and ALM operation policies and enacts and revises relevant guidelines. The Risk Management Council monitors the establishment and enforcement of ALM risk management policies and enacts and revises ALM risk management guidelines. Interest rate risk limits are set based on future asset and liability positions and expected interest rate volatility, which reflect annual business plans. Financial Planning Department and the Risk Management Department regularly measure and monitor interest rate risk and report the status and limit of interest rate risk including changes in Economic Value of Equity (“rEVE”), changes in Net Interest Income (“rNII”), and duration gap to the ALCO and the Risk Management Council on a monthly basis, and to the Risk Management Committee on a quarterly basis. To ensure the adequacy of interest rate risk and liquidity risk management, the Risk Management Department assigns the limits, monitors and reviews the procedures and tasks of ALM operations conducted by the financial planning department , and reports related matters to the management independently.

The Bank is closely monitoring the outputs of various industry groups and markets that manage the transition to the new interest rate benchmark, including announcements by LIBOR regulation authority and various consultative bodies related to the transition to alternative interest rate. In response to these announcements, the Bank has completed most of the transition and replacement plans according to LIBOR transition programs and plans consisting of major business areas such as finance, accounting, tax, legal, IT, and risk. The program is under the control of the CFO and related matters are reported to the board of directors and consultative bodies with senior management as members. The Bank continues its efforts as a market participant to actively express opinions so that the index interest rate benchmark reform can be carried out in the direction of minimizing the financial and non-financial impacts and operational risks on the Bank and minimizing confusion among stakeholders.

4.4.3 Trading position

4.4.3.1 Definition of a trading position

The trading position, which is subject to market risk management, includes interest rate position and stock position held for short-term trading profit. The Bank also includes and manages all foreign currency positions in our trading positions. The trading position subject to market risk management is the trading position defined in “Trading Policy and Guidelines” and the basic requirements for the trading position are as follows:

• The target position has no restrictions on the sale, the daily fair value assessment should be made, and the embedded significant risk can be hedged in the market.

• The trading position classification criteria should be clearly defined in the Trading Policy and Guidelines, and the trading position should be managed by a separate trading department.

• The target position must be operated according to the documented trading strategy, and the management of position limit must be carried out.

• The specialized dealer or operating department shall have the authority to execute the transaction without prior approval from the Risk Management Department, etc. within the predetermined limits of the target position.

• The target positions should be periodically reported to management for risk management of the Bank.

51

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.4.3.2 Methods of observing market risk arising from trading positions

Although market risk was measured through internal models such as VaR under Basel II, banks are now required to calculate regulatory capital for all trading positions using the standard method through market risk management systems, following the adoption of Basel III market risk standard approach regulation in 2023.

Furthermore, risk control and management for derivative financial product transactions are conducted in accordance with regulations and guidelines set by the Financial Supervisory Service.

4.4.3.3 Standard Method

Market risk regulatory capital is calculated using the Basel III standard method as follows.

[ Market risk regulatory capital = (a)Sensitivity-based risk + (b)Default risk + (c)Residual risk ]

• Sensitivity-based risk, which forms the basis of the Basel III standard method for market risk, involves calculating the expected losses for each risk factor by applying and aggregating the risk weights and correlation coefficients specified by the Basel Committee.

• Default risk is the risk that arises from the issuer default of securities and derivatives that are not considered in sensitivity-based risk. It is calculated by applying risk weights based on the issuer’s credit rating and other factors.

• Residual risk is the risk that is not considered by sensitivity-based and default risk calculations. It is calculated by applying a certain percentage determined by the Basel Committee to the nominal value of structured products and other non-standard underlying assets.

			Description
Sensitivity-based risk	Interest rate risk group	GIRR	The risk associated with risk-free interest rates (typically OIS rates) defined by currency and maturity.
		CSR	The risk associated with the issuer’s interest rate credit spread, defined by creditworthiness and sector.
	Equity risk group		The risk factors associated with equity, defined by market capitalization, economic conditions, and sector
	Foreign exchange risk group		The risk factors associated with exchange rate, defined by currency pairs
	Commodity risk group		The risk factors associated with commodities, defined by commodity types.
Default risk			Issuer default risk in securities (bonds, etc.) and derivatives.
Residual risk			Additional risks imposed on non-standard underlying asset products, etc.

52

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

The table below represents regulatory capital for sensitivity-based risk, default risk, and residual risk of trading positions at the end of the current year.

(In millions of Korean won)		December 31, 2023		December 31, 2022 *
Sensitivity-based risk	GIRR(General interest rate)		58,504		—
	CSR(non-securitization)		80,171		—
	CSR (securitization n-CTP)		—		—
	CSR (securitization CTP)		—		—
	Equity risk		2,874		—
	Foreign exchange risk		223,662		—
	Commodity risk		61		—
Default risk			28,255		—
Residual risk			862		—
Total			394,389		—

* No calculation of regulatory capital under the Basel III standard method due to the regulatory introduction in 2023

In accordance with the introduction of Basel III standard method regulation in 2023, the previous year’s report was prepared based on the Basel II internal model framework. VaR at a 99% confidence level of interest rate risk, stock price risk, and currency risk for trading positions with a ten-day holding period for the year ended December 31, 2022 is as follows:

(In millions of Korean won)	2022
	Average		Minimum		Maximum		December 31, 2022
Interest rate risk		17,106		6,548		39,078		25,207
Stock price risk		1		—		85		—
Currency risk		24,972		12,036		46,780		45,307
Diversification effect								(3,936	)
Total VaR		37,629		12,726		73,872		66,578

The required equity capital using the standard method related to the positions which are not measured by VaR as of December 31, 2022, is as follows:

(In millions of Korean won)	December 31, 2022
Interest rate risk		12
Stock price risk		7
Currency risk		117
		136

53

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

(a) Interest rate risk

Interest rate risk for trading positions usually arises from debt securities denominated in Korean won. The Bank’s trading strategy is to gain short-term trading gains from interest rate fluctuations. The Bank manages interest rate risk associated with trading portfolios using a sensitivity analysis (Price Value of a Basis Point: PVBP).

(b) Stock price risk

Stock price risk arises mainly from stock positions held by principal guaranteed trust and derivatives linked to stocks positions in the Financial Asset Trading Division. This stock price risk is managed through sensitivity limits and other measures.

(c) Currency risk

Currency risk arises from holding assets and liabilities which are denominated in foreign currency, and currency-related derivatives. Most of the net foreign currency exposures occur in the US dollar and the Indonesian Rupiah. Such foreign exchange risk is managed through net foreign exchange exposure limits and other measures.

4.4.4 Non-trading position (Interest Rate Risk of Banking Book (“IRRBB”))

4.4.4.1 Definition of IRRBB

IRRBB is a change in equity and earnings due to the changes in value of interest-sensitive assets and liabilities, etc., and is measured by ΔEVE and ΔNII.

4.4.4.2 The Bank’s overall interest rate risk management and mitigation strategy

The Risk Management Committee approves policies, procedures and limits for managing interest rate risk, and the management department regularly reports on interest rate risk levels of ΔEVE and ΔNII against the set limit, changes in market conditions, and others. In order to measure the sensitivity of the economic value and earnings to changes in interest rates, the Bank calculates monthly interest rate gap and duration gap for assets and liabilities. In addition, the management department conducts an interest rate risk crisis analysis at least once a quarter assuming abnormal interest rate fluctuations and reports the results to the Risk Management Council. Independent internal and external audit department regularly check the process of identifying, measuring and monitoring interest rate risk. The interest rate risk model adequacy test is carried out regularly at least once a year by the verification department independent of the management department.

4.4.4.3 Main modeling assumption used for the Bank’s interest rate risk measurement system for internal management

The bank measures adverse fluctuations in economic value resulting from changes in interest rates following the interest rate risk calculation standards set by the Financial Supervisory Service.

54

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.4.4.4 The Bank’s interest rate risk hedging methodology and related accounting

The Bank hedges interest rate risk through back-to-back interest rate swap transactions, which are the same as interest payment cash flows. The Bank officially documents and manages the risk management strategy for hedge accounting, risk management objectives, hedging relationship, and assessment method for hedge effectiveness.

4.4.4.5 Main assumptions used for calculating rEVE, rNII

The Bank calculates interest rate risk, including all cash flow of interest-sensitive assets and liabilities, and off-balance sheet items in the banking book. rEVE assumes a run-off balance sheet where the existing bank account positions are amortized and not replaced by new businesses. In addition, the contractual interest rate, including commercial margins and other spread components, is applied to generate cash flows. When discounting cash flows, rEVE is calculated by applying risk-free interest rate that do not include commercial margins and other spread components.

rNII assumes a constant balance sheet where maturing or repricing cash flows during the target management period are replaced by new cash flows with identical features. The interest rate risk is calculated for the interest rate shock scenario by adding up only if the risk is a loss for each currency. After classifying into retail/transactional, retail/non-transactional, and wholesale according to customers and regular transactions, the average repricing maturity of non-maturity deposits is determined by taking into account the proportion of core deposits and cap on average maturity of core deposits for each category. The average repricing maturity of non-maturity deposits is 2.5 years for core deposits, 1 day for non-core deposits, and the longest repricing maturity is five years. The prepayment rate of fixed rate loans and term deposit redemption ratio are estimated by dividing the amount of prepayment amount and redemption amount during the previous month by the balance at the end of the previous month, respectively.

4.4.4.6 rEVE and rNII

The Bank calculates rEVE by applying six interest rate shock and stress scenarios, and rNII is calculated by applying parallel shock up and parallel shock down scenarios. Results as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023				December 31, 2022
	rEVE		rNII		rEVE		rNII
Scenario 1 (Parallel shock up)		877,430		455,046		—		105,326
Scenario 2 (Parallel shock down)		225,266		52,497		641,269		52,487
Scenario 3 (Short rates down and long rates up)		162,577				107,736
Scenario 4 (Short rates up and long rates down)		614,656				235,348
Scenario 5 (Short rates shock up)		894,114				249,114
Scenario 6 (Short rates shock down)		300,497				306,398
Maximum out of six scenarios		894,114		455,046		641,269		105,326
Basic capital		35,008,470				31,943,522

55

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.4.5 Financial assets and liabilities denominated in foreign currencies

Details of financial instruments denominated in foreign currencies and translated into Korean won as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	USD		JPY		EUR		GBP		CNY		Others		Total
Financial assets
Cash and due from financial institutions		4,693,867		453,854		209,274		37,982		126,641		387,248		5,908,866
Financial assets at fair value through profit or loss		2,030,534		—		429,103		31,231		—		271,493		2,762,361
Derivatives held for trading		301,091		342		65		109		—		12,087		313,694
Derivatives held for hedging		108,152		—		—		—		—		190		108,342
Loans measured at amortized cost		26,732,426		785,006		2,646,745		901,085		93,560		1,954,455		33,113,277
Financial assets at fair value through other comprehensive income		4,044,136		—		33,596		4,591		—		609,743		4,692,066
Financial assets at amortized cost		2,301,151		—		5,741		199,589		—		1,025,414		3,531,895
Other financial assets		3,031,762		100,420		78,608		36,865		484,566		350,453		4,082,674
		43,243,119		1,339,622		3,403,132		1,211,452		704,767		4,611,083		54,513,175
Financial liabilities
Derivatives held for trading		251,375		1,107		343		108		—		142,112		395,045
Derivatives held for hedging		77,342		—		—		—		—		—		77,342
Deposits		20,719,262		1,664,480		1,811,528		761,061		111,022		778,439		25,845,792
Borrowings		14,302,228		743,356		430,212		262,687		223,025		1,125,595		17,087,103
Debentures		6,713,658		—		2,959,534		—		—		625,187		10,298,379
Other financial liabilities		4,547,613		91,332		840,530		8,918		509,145		59,480		6,057,018
		46,611,478		2,500,275		6,042,147		1,032,774		843,192		2,730,813		59,760,679
Off-balance sheet items		24,969,656		—		400,932		39,109		201,088		115,494		25,726,279

(In millions of Korean won)	December 31, 2022
	USD		JPY		EUR		GBP		CNY		Others		Total
Financial assets
Cash and due from financial institutions		3,785,403		327,255		165,853		39,332		223,494		691,509		5,232,846
Financial assets at fair value through profit or loss		2,044,824		—		355,597		—		—		263,464		2,663,885
Derivatives held for trading		533,788		—		115		10		—		260		534,173
Derivatives held for hedging		193,063		—		—		—		—		290		193,353
Loans measured at amortized cost		28,889,973		683,705		2,360,458		622,702		68,847		1,829,562		34,455,247
Financial assets at fair value through other comprehensive income		4,409,620		—		9,091		5,677		—		826,151		5,250,539
Financial assets at amortized cost		4,045,282		—		—		37,816		—		633,215		4,716,313
Other financial assets		1,615,815		292,283		351,395		23,545		53,775		73,971		2,410,784
		45,517,768		1,303,243		3,242,509		729,082		346,116		4,318,422		55,457,140
Financial liabilities
Derivatives held for trading		271,778		246		182		10		—		—		272,216
Derivatives held for hedging		104,856		—		—		—		—		—		104,856
Deposits		21,610,566		1,230,664		1,380,881		344,585		175,203		1,052,722		25,794,621
Borrowings		18,193,011		458,856		363,990		351,535		195,167		823,579		20,386,138
Debentures		6,939,542		—		2,041,516		—		36,288		288,467		9,305,813
Other financial liabilities		3,362,911		266,315		188,202		13,491		57,583		124,691		4,013,193
		50,482,664		1,956,081		3,974,771		709,621		464,241		2,289,459		59,876,837
Off-balance sheet items		20,895,932		—		262,591		60,382		180,206		134,547		21,533,658

56

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

4.5 Operational Risk

4.5.1 Concept

The Bank defines operational risk as loss risk arising from improper or incorrect internal procedures, personnel, systems or external events and includes financial and non-financial risks.

4.5.2 Risk management

The purpose of operational risk management is not only to comply with supervisory and regulatory requirements, but also to spread risk management culture, strengthen internal control, improve processes, and provide timely feedback to management and all employees. The Bank established a Business Continuity Planning (BCP) to carry out continuous work in emergency situations and established alternative facilities. The Bank conducts simulation training for headquarters and IT departments to check the business continuity framework.

4.6 Capital Management

The Bank complies with the capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements (“BIS”) in June 2011 and was implemented in Korea in December 2013.

According to this standard, the Bank is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 4.5%, Tier 1 Capital ratio of 6.0%, and Total Capital ratio of 8.0%) as of December 31, 2023. Capital Conservation Buffer of 2.5% and Capital Requirement of Domestic Systemically Important Bank (D-SIB) of 1.0% are additionally applied. Therefore, the Bank is required to maintain a capital adequacy ratio including a minimum capital adequacy ratio and additional capital requirements (Common Equity Tier 1 Capital ratio of 8.0% (December 31, 2022: 8.0%), Tier 1 Capital ratio of 9.5% (December 31, 2022: 9.5%), and Total Capital ratio of 11.5% (December 31, 2022: 11.5%)).

The Bank’s capital is classified into three categories in accordance with the Detailed Regulations on Supervision of Banking Business as follows:

• Common Equity Tier 1 Capital: Common equity Tier 1 Capital is the first to take losses of the Bank and is the last to be compensated in liquidation of the Bank and not repaid except for liquidation. It includes capital, capital surplus, retained earnings, non-controlling interests of the consolidated subsidiaries, accumulated other comprehensive income, and other capital surplus, etc.

• Additional Tier 1 Capital: Additional Tier 1 Capital includes capital, capital surplus, etc. related to the issuance of capital securities of a permanent nature that meet the conditional capital securities requirements.

• Tier 2 Capital: Tier 2 Capital means capital that can compensate for losses of the Bank upon liquidation, including (a) the amount of subordinated bonds with maturity of not less than 5 years that meet the conditional capital securities requirements, and (b) the allowances for credit losses accumulated on the loans which are classified as normal or precautionary in accordance with Regulations on Supervision of Banking Business, and others.

57

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

The risk-weighted assets are the magnitude of assets that reflect the risk that the Bank has to bear, including risks inherent in all assets, errors in the operation of internal processes, and risk of loss that may arise from external events. The Bank calculates risk-weighted assets by each risk (credit risk, market risk, and operational risk) based on the Detailed Regulations on Supervision of Banking Business and uses them to calculate capital adequacy ratio. The Bank complied with external capital adequacy requirements as of December 31, 2023 and 2022.

Apart from the capital adequacy ratio, the Bank evaluates and manages capital adequacy through internal policies. The evaluation of capital adequacy compares the size of available capital (the amount of capital actually available) to the size of internal capital (the amount of capital required to cover all the significant risks faced by the Bank under its target credit rating), which monitors financial soundness and provides a risk-adjusted performance measurement basis. The internal capital for capital adequacy assessment is calculated by adding the results of a stress test and other additional capital requirements to the internal capital calculated for each individual risk.

The Risk Management Committee of the Bank determines the risk appetite of the Bank, allocates internal capital by risk type and business group, and each business group operates capital efficiently within the range of the allocated internal capital. The Risk Management Department of the Bank monitors internal capital limit management and reports it to management and the Risk Management Committee. If the limit of internal capital is expected to be exceeded, the Bank’s capital adequacy management is carried out through review and approval by the Risk Management Committee in advance.

Details of the Bank’s capital adequacy ratio in accordance with Basel III requirements as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Total Capital:		39,039,876		36,232,973
Tier 1 Capital		33,478,665		30,963,124
Common Equity Tier 1 Capital		32,195,730		30,089,274
Additional Tier 1 Capital		1,282,935		873,850
Tier 2 Capital		5,561,211		5,269,849
Risk-Weighted Assets:		215,962,186		207,557,905
Credit risk 1		194,210,167		182,292,999
Market risk 2		7,067,638		12,611,416
Operational risk 3		14,684,381		12,653,490
Total Capital ratio (%):		18.08		17.46
Tier 1 Capital ratio (%)		15.50		14.92
Common Equity Tier 1 Capital ratio (%)		14.91		14.50

¹ Credit risk weighted assets are measured using the Internal Rating-Based Method and Standard Method.

² Market risk weighted assets are measured using the Standard Method.

³ Operational risk weighted assets are measured using the Standard Method.

58

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

5. Segment Information

5.1 Overall Segment Information and Business Segments

The Bank is organized into Corporate Banking, Retail Banking and Other Activities. These segments are based on the nature of the products and services provided, the type or class of customer, and the Bank’s management organization.

- Corporate banking: The activities within this segment include providing credit, deposit products, and other related financial services to large, small and medium-sized enterprises and SOHOs.

- Retail banking: The activities within this segment include providing credit, deposit products, and other related financial services to individuals and households.

- Other activities: The activities within this segment include trading activities in securities and derivatives, funding, trust, and other activities.

Financial information by business segment as of and for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	Corporate banking			Retail banking			Others			Total
Net operating revenues from external customers		5,121,386			4,443,943			182,332			9,747,661
Net interest income		5,078,411			3,397,242			832,652			9,308,305
Interest income		10,147,155			7,723,196			3,004,342			20,874,693
Interest expense		(5,068,744	)		(4,325,954	)		(2,171,690	)		(11,566,388	)
Net fee and commission income		431,096			252,118			498,184			1,181,398
Fee and commission income		570,445			403,042			616,867			1,590,354
Fee and commission expense		(139,349	)		(150,924	)		(118,683	)		(408,956	)
Net gains on financial instruments at fair value through profit or loss		4,116			—			653,380			657,496
Net other operating income (expenses)		(392,237	)		794,583			(1,801,884	)		(1,399,538	)
General and administrative expenses		(1,594,251	)		(1,952,434	)		(609,163	)		(4,155,848	)
Operating income before provision for credit losses		3,527,135			2,491,509			(426,831	)		5,591,813
Provision for credit losses		(1,048,552	)		(92,464	)		(22,311	)		(1,163,327	)
Net operating income		2,478,583			2,399,045			(449,142	)		4,428,486
Net non-operating income (expenses)		286			—			(380,363	)		(380,077	)
Segment profit (loss) before income tax expense		2,478,869			2,399,045			(829,505	)		4,048,409
Income tax expense		(654,421	)		(633,348	)		240,517			(1,047,252	)
Profit (loss) for the year		1,824,448			1,765,697			(588,988	)		3,001,157
Total assets *		202,038,679			165,821,667			144,512,495			512,372,841
Total liabilities *		184,707,461			203,560,029			87,890,115			476,157,605

59

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

5.1 Overall Segment Information and Business Segments (cont’d)

(In millions of Korean won)	2022
	Corporate banking			Retail banking			Others			Total
Net operating revenues from external customers		4,505,096			4,472,888			106,624			9,084,608
Net interest income		4,081,306			3,936,872			541,024			8,559,202
Interest income		6,454,562			5,763,852			1,743,608			13,962,022
Interest expense		(2,373,256	)		(1,826,980	)		(1,202,584	)		(5,402,820	)
Net fee and commission income		376,968			261,350			462,508			1,100,826
Fee and commission income		508,605			415,858			587,767			1,512,230
Fee and commission expense		(131,637	)		(154,508	)		(125,259	)		(411,404	)
Net gains on financial instruments at fair value through profit or loss		19,771			—			334,409			354,180
Net other operating income (expenses)		27,051			274,666			(1,231,317	)		(929,600	)
General and administrative expenses		(1,569,009	)		(2,092,770	)		(632,558	)		(4,294,337	)
Operating income before provision for credit losses		2,936,087			2,380,118			(525,934	)		4,790,271
Provision for credit losses		(178,752	)		(281,868	)		(730	)		(461,350	)
Net operating income		2,757,335			2,098,250			(526,664	)		4,328,921
Net non-operating income (expenses)		(8,804	)		—			(363,713	)		(372,517	)
Segment profit (loss) before income tax expense		2,748,531			2,098,250			(890,377	)		3,956,404
Income tax expense		(684,402	)		(522,478	)		158,696			(1,048,184	)
Profit (loss) for the year		2,064,129			1,575,772			(731,681	)		2,908,220
Total assets *		192,304,445			165,273,848			142,765,182			500,343,475
Total liabilities *		187,559,148			191,786,626			87,443,920			466,789,694

* Assets and liabilities of the reporting segments are amounts before intersegment transactions.

60

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

5.2 Services and Geographical Segments

5.2.1 Services information

Net operating revenues from external customers by service for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Corporate banking service		5,121,386		4,505,096
Retail banking service		4,443,943		4,472,888
Others		182,332		106,624
		9,747,661		9,084,608

5.2.2 Geographical information

Geographical net operating revenues from external customers for the years ended December 31, 2023 and 2022, and major non-current assets as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Net operating revenues from external customers				Major non-current assets
	2023		2022		December 31, 2023		December 31, 2022
Domestic		9,451,665		8,840,358		3,995,347		4,105,598
China		69,112		75,120		2,325		1,938
United States		83,173		71,327		15,224		14,485
New Zealand		12,611		12,378		1,051		1,382
Japan		13,164		18,939		1,977		1,480
United Kingdom		52,783		30,430		4,616		5,808
Vietnam		42,189		25,409		2,417		2,159
India		4,491		1,048		174		394
Singapore		18,473		9,599		7,058		8,492
		9,747,661		9,084,608		4,030,189		4,141,736

61

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6. Financial Assets and Financial Liabilities

6.1 Classification and Fair Value of Financial Instruments

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023				December 31, 2022
	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Cash and due from financial institutions		21,648,290		21,646,679		22,296,244		22,289,163
Financial assets at fair value through profit or loss:		16,609,611		16,609,611		18,154,550		18,154,550
Debt securities		16,082,972		16,082,972		17,645,808		17,645,808
Equity securities		144,577		144,577		137,831		137,831
Loans		288,319		288,319		280,905		280,905
Others		93,743		93,743		90,006		90,006
Derivatives held for trading		4,909,167		4,909,167		7,509,568		7,509,568
Derivatives held for hedging		146,328		146,328		238,226		238,226
Loans measured at amortized cost		373,623,010		373,694,720		363,839,085		361,359,508
Financial assets at fair value through other comprehensive income:		38,450,863		38,450,863		39,409,618		39,409,618
Debt securities		36,723,370		36,723,370		37,760,143		37,760,143
Equity securities		1,415,883		1,415,883		1,418,454		1,418,454
Loans		311,610		311,610		231,021		231,021
Securities measured at amortized cost		38,313,663		37,582,683		34,616,403		32,797,738
Other financial assets		10,597,311		10,597,311		6,601,913		6,601,913
		504,298,243		503,637,362		492,665,607		488,360,284
Financial liabilities
Financial liabilities at fair value through profit or loss		93,438		93,438		108,862		108,862
Derivatives held for trading		4,516,443		4,516,443		7,189,931		7,189,931
Derivatives held for hedging		77,823		77,823		104,856		104,856
Deposits		380,266,822		380,486,381		368,100,984		367,678,140
Borrowings		33,023,146		32,955,104		43,664,670		43,338,198
Debentures		30,058,233		30,103,141		27,999,416		27,823,582
Other financial liabilities		25,490,282		25,490,282		17,158,325		17,158,325
		473,526,187		473,722,612		464,327,044		463,401,894

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Bank discloses the fair value of each class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is a quoted price in an active market.

62

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Methods of determining fair value of financial instruments are as follows:

Cash and due from financial institutions	Fair value of cash is the same as its carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable on demand. Fair value of general deposits is measured using a Discounted Cash Flow (“DCF”) Model.
Securities Due from financial institutions and deposits indexed to gold price	Fair value of securities and others that are traded in an active market and due from financial institutions and deposits indexed to the gold price is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments including a DCF Model, MonteCarlo Simulation, Free Cash Flow to Equity Model, Comparable Company Analysis, Dividend Discount Model and Net Asset Value Method.
Loans	Fair value of loans is determined using a DCF Model and independent external professional valuation institutions. Fair value measured using a DCF Model is determined by discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.
Derivatives	Fair value of exchange traded derivatives is determined using quoted prices in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Bank uses internally developed valuation models that are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including a Finite Difference Method (“FDM”), MonteCarlo Simulation, and Tree Model or valuation results from independent external professional valuation institutions. For OTC derivatives, the credit risk of the counterparty and the Bank’s own credit risk are applied through a credit valuation adjustment method.
Deposits	Carrying amount of demand deposits is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of time deposits is determined using a DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.
Borrowings	Carrying amount of overdrafts in foreign currency is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of other borrowings is determined using a DCF Model.
Debentures	Fair value is determined using the valuation results (DCF Model) of external professional valuation institutions, which are calculated using market inputs.
Other financial assets and other financial liabilities	Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions, and their maturities are relatively short or not defined.

63

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.1.2 Fair value hierarchy

The Bank believes that valuation techniques used for measuring the fair value of financial instruments are reasonable and that the fair value recognized in the statement of financial position is appropriate. However, the fair value of the financial instruments recognized in the statement of financial position may be different if other valuation techniques or assumptions are used. Additionally, as there are a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

The Bank classifies and discloses fair value of the financial instruments into the three fair value levels as follows:

Level 1: The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: The fair values are based on unobservable inputs for the asset or liability.

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement would be categorized within Level 3 of the fair value hierarchy.

64

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the statements of financial position

Fair value hierarchy of financial assets and liabilities at fair value in the statements of financial position as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:		6,608,684		4,389,221		5,611,706		16,609,611
Debt securities		6,514,863		4,389,221		5,178,888		16,082,972
Equity securities		78		—		144,499		144,577
Loans		—		—		288,319		288,319
Others		93,743		—		—		93,743
Derivatives held for trading		—		4,897,048		12,119		4,909,167
Derivatives held for hedging		—		146,328		—		146,328
Financial assets at fair value through other comprehensive income:		14,038,116		23,702,982		709,765		38,450,863
Debt securities		13,331,998		23,391,372		—		36,723,370
Equity securities		706,118		—		709,765		1,415,883
Loans		—		311,610		—		311,610
		20,646,800		33,135,579		6,333,590		60,115,969
Financial liabilities
Financial liabilities at fair value through profit or loss		93,438		—		—		93,438
Derivatives held for trading		—		4,374,540		141,903		4,516,443
Derivatives held for hedging		—		77,823		—		77,823
		93,438		4,452,363		141,903		4,687,704

	December 31, 2022
(In millions of Korean won)	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at fair value through profit or loss:		5,380,854		8,401,205		4,372,491		18,154,550
Debt securities		5,290,592		8,401,205		3,954,011		17,645,808
Equity securities		256		—		137,575		137,831
Loans		—		—		280,905		280,905
Others		90,006		—		—		90,006
Derivatives held for trading		—		7,509,535		33		7,509,568
Derivatives held for hedging		—		238,226		—		238,226
Financial assets at fair value through other comprehensive income:		11,379,006		27,225,084		805,528		39,409,618
Debt securities		10,766,080		26,994,063		—		37,760,143
Equity securities		612,926		—		805,528		1,418,454
Loans		—		231,021		—		231,021
		16,759,860		43,374,050		5,178,052		65,311,962
Financial liabilities
Financial liabilities at fair value through profit or loss		108,862		—		—		108,862
Derivatives held for trading		—		7,189,931		—		7,189,931
Derivatives held for hedging		—		104,856		—		104,856
		108,862		7,294,787		—		7,403,649

65

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the statements of financial position as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:		4,389,221
Debt securities		4,389,221	DCF Model, MonteCarlo Simulation, Net Asset Value Method	Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.)
Derivatives held for trading		4,897,048	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		146,328	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
Financial assets at fair value through other comprehensive income:		23,702,982
Debt securities		23,391,372	DCF Model	Discount rate
Loans		311,610	DCF Model	Discount rate
		33,135,579
Financial liabilities
Derivatives held for trading		4,374,540	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		77,823	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
		4,452,363

(In millions of Korean won)	December 31, 2022
	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:		8,401,205
Debt securities		8,401,205	DCF Model, MonteCarlo Simulation, Net Asset Value Method	Discount rate, interest rate, prices of underlying assets (debt securities, stocks, etc.)
Derivatives held for trading		7,509,535	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		238,226	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
Financial assets at fair value through other comprehensive income:		27,225,084
Debt securities		26,994,063	DCF Model	Discount rate
Loans		231,021	DCF Model	Discount rate
		43,374,050
Financial liabilities
Derivatives held for trading		7,189,931	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, stock price, and others
Derivatives held for hedging		104,856	DCF Model, Closed Form, FDM	Discount rate, volatility, foreign exchange rate, and others
		7,294,787

66

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		2,082,548		18,449,707		1,114,424		21,646,679
Loans measured at amortized cost		—		—		373,694,720		373,694,720
Securities measured at amortized cost		3,703,963		33,878,720		—		37,582,683
Other financial assets 2		—		—		10,597,311		10,597,311
		5,786,511		52,328,427		385,406,455		443,521,393
Financial liabilities
Deposits 1		—		155,528,054		224,958,327		380,486,381
Borrowings 1		—		38,194		32,916,910		32,955,104
Debentures		—		30,103,141		—		30,103,141
Other financial liabilities 2		—		—		25,490,282		25,490,282
		—		185,669,389		283,365,519		469,034,908

(In millions of Korean won)	December 31, 2022
	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions 1		2,350,453		18,768,224		1,170,486		22,289,163
Loans measured at amortized cost		—		—		361,359,508		361,359,508
Securities measured at amortized cost		4,535,667		28,262,071		—		32,797,738
Other financial assets 2		—		—		6,601,913		6,601,913
		6,886,120		47,030,295		369,131,907		423,048,322
Financial liabilities
Deposits 1		—		159,020,380		208,657,760		367,678,140
Borrowings 1		—		18,270		43,319,928		43,338,198
Debentures		—		27,823,582		—		27,823,582
Other financial liabilities 2		—		—		17,158,325		17,158,325
		—		186,862,232		269,136,013		455,998,245

¹ The amounts included in Level 2 are the carrying amounts which are reasonable approximations of fair value.

² Other financial assets and other financial liabilities included in Level 3 are the carrying amounts which are reasonable approximations of fair value.

For financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, valuation techniques and inputs are not disclosed.

67

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques	Inputs
Financial assets
Securities measured at amortized cost		33,878,720	DCF Model, MonteCarlo Simulation	Discount rate, interest rate
Financial liabilities
Debentures		30,103,141	DCF Model	Discount rate

(In millions of Korean won)	December 31, 2022
	Fair value		Valuation techniques	Inputs
Financial assets
Securities measured at amortized cost		28,262,071	DCF Model, MonteCarlo Simulation	Discount rate, interest rate
Financial liabilities
Debentures		27,823,582	DCF Model	Discount rate

68

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Valuation techniques and inputs of financial assets and liabilities classified as Level 3, and whose fair value is disclosed as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques		Inputs	Unobservable inputs
Financial assets
Cash and due from financial institutions		1,114,424		DCF Model	Credit spread, other spread, interest rate	Credit spread, other spread
Loans measured at amortized cost		373,694,720		DCF Model	Credit spread, other spread, prepayment rate, interest rate	Credit spread, other spread, prepayment rate
		374,809,144
Financial liabilities
Deposits		224,958,327		DCF Model	Other spread, prepayment rate, interest rate	Other spread, prepayment rate
Borrowings		32,916,910		DCF Model	Other spread, interest rate	Other spread
		257,875,237

(In millions of Korean won)	December 31, 2022
	Fair value		Valuation techniques		Inputs	Unobservable inputs
Financial assets
Cash and due from financial institutions		1,170,486		DCF Model	Credit spread, other spread, interest rate	Credit spread, other spread
Loans measured at amortized cost		361,359,508		DCF Model	Credit spread, other spread, prepayment rate, interest rate	Credit spread, other spread, prepayment rate
		362,529,994
Financial liabilities
Deposits		208,657,760		DCF Model	Other spread, prepayment rate, interest rate	Other spread, prepayment rate
Borrowings		43,319,928		DCF Model	Other spread, interest rate	Other spread
		251,977,688

6.2 Disclosure of Fair Value Hierarchy Level 3

6.2.1 Valuation policy and process of Level 3 fair value

The Bank uses an external, independent and qualified valuation service in addition to internal valuation models to determine the fair value of financial instruments at the end of every reporting period.

If the changes in situation and events cause transfers between the fair value hierarchy level for a financial asset or liability occur, the Bank’s policy is to recognize such transfers as having occurred at the beginning of the reporting period.

69

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.2.2 Changes in fair value (Level 3) measured using valuation technique based on unobservable inputs in the market

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)

	2023
	Financial assets at fair value through profit or loss					Financial investments			Net derivative financial instruments
	Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss		Equity securities measured at fair value through other comprehensive income			Derivatives held for trading			Derivatives held for hedging
Beginning		4,091,586			280,905		805,528			33			—
Total gains or losses:
- Profit or loss		214,977			7,414		—			(65,742	)		—
- Other comprehensive loss		—			—		(95,601	)		—			—
Purchases		1,313,072			—		120			(64,075	)		—
Sales		(296,248	)		—		(282	)		—			—
Ending		5,323,387			288,319		709,765			(129,784	)		—

(In millions of Korean won)

	2022
	Financial assets at fair value through profit or loss						Financial investments			Net derivative financial instruments
	Securities measured at fair value through profit or loss			Loans measured at fair value through profit or loss			Equity securities measured at fair value through other comprehensive income			Derivatives held for trading		Derivatives held for hedging
Beginning		3,159,374			37,382			849,035			17		—
Total gains or losses:
- Profit or loss		128,774			(17,617	)		—			16		—
- Other comprehensive loss		—			—			(47,059	)		—		—
Purchases		1,230,764			261,140			4,093			—		—
Sales		(427,326	)		—			(541	)		—		—
Ending		4,091,586			280,905			805,528			33		—

70

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	Net gains on financial instruments at fair value through profit or loss		Other operating income		Net interest income
Total gains recognized in profit or loss for the period		114,115		42,534		—
Total gains recognized in profit or loss from financial instruments held at the end of the reporting period		114,196		66,046		—

(In millions of Korean won)	2022
	Net gains on financial instruments at fair value through profit or loss		Other operating income			Net interest income
Total gains recognized in profit or loss for the period		79,887		31,286			—
Total gains (losses) recognized in profit or loss from financial instruments held at the end of the reporting period		70,945		(17,629	)		—

71

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.2.3 Sensitivity analysis of changes in unobservable inputs

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)
	December 31, 2023
	Fair value		Valuation techniques	Inputs	Unobservable inputs	Range of unobservable inputs (%)		Relationship of unobservable inputs to fair value
Financial assets
Financial assets at fair value through profit or loss:
Debt securities		5,178,888	Net Asset Value Method, DCF Model, Tree Model	Rate of real estate sale price fluctuation, discount rate, liquidation value, stock price, volatility of stock price	Rate of real estate sale price fluctuation		0.00	Higher the real estate sale price, higher the fair value
					Volatility of stock price		20.03~32.55	Higher the volatility, higher the fair value fluctuation
Equity securities		144,499	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method	Growth rate, discount rate	Growth rate		0.00	Higher the growth rate, higher the fair value
					Discount rate		8.81~19.32	Lower the discount rate, higher the fair value
Loans		288,319	DCF Model	Discount rate	Discount rate		8.15~9.65	Lower the discount rate, higher the fair value
Derivatives held for trading:
Stock and index		12,119	Tree Model	Price of underlying asset, volatility of underlying asset	Volatility of underlying asset		19.59~33.10	Higher the volatility, higher the fair value fluctuation
Financial assets at fair value through other comprehensive income:
Equity securities		709,765	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model	Growth rate, discount rate, stock price, volatility of stock price	Growth rate		0.00~1.00	Higher the growth rate, higher the fair value
					Discount rate		9.25~19.90	Lower the discount rate, higher the fair value
					Volatility of stock price		20.60~27.96	Higher the volatility, higher the fair value fluctuation
		6,333,590
Financial liabilities
Derivatives held for trading:
Stock and index		141,903	MonteCarlo Simulation	Price of underlying asset, volatility of underlying asset	Volatility of underlying asset		33.10	Higher the volatility, higher the fair value fluctuation
		141,903

72

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)
	December 31, 2022
	Fair value		Valuation techniques	Inputs	Unobservable inputs	Range of unobservable inputs (%)	Relationship of unobservable inputs to fair value
Financial assets
Financial assets at fair value through profit or loss:
Debt securities		3,954,011	Net Asset Value Method, DCF Model, Tree Model	Rate of real estate sale price fluctuation, discount rate, liquidation value, stock price, volatility of stock price	Rate of real estate sale price fluctuation	0.00	Higher the real estate sale price, higher the fair value
					Discount rate	8.53	Lower the discount rate, higher the fair value
					Liquidation value	0.00	Higher the liquidation value, higher the fair value
					Volatility of stock price	21.83~34.51	Higher the volatility, higher the fair value fluctuation
Equity securities		137,575	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method	Growth rate, discount rate	Growth rate	0.00	Higher the growth rate, higher the fair value
					Discount rate	9.16 ~ 15.82	Lower the discount rate, higher the fair value
Loans		280,905	DCF Model	Discount rate	Discount rate	8.11~9.91	Lower the discount rate, higher the fair value
Derivatives held for trading:
Stock and index		33	Tree Model	Price of underlying asset, volatility of underlying asset	Volatility of underlying asset	21.83 ~ 31.73	Higher the volatility, higher the fair value fluctuation
Financial assets at fair value through other comprehensive income:
Equity securities		805,528	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, Tree Model	Growth rate, discount rate, stock price, volatility of stock price	Growth rate	0.00 ~ 1.00	Higher the growth rate, higher the fair value
					Discount rate	9.08 ~ 19.14	Lower the discount rate, higher the fair value
					Volatility of stock price	24.88 ~28.62	Higher the volatility, higher the fair value fluctuation
		5,178,052

73

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. Level 3 financial instruments subject to sensitivity analysis are debt securities, loans, equity-related derivatives, currency-related derivatives, interest rate-related derivatives, and other derivatives whose fair value changes are recognized in profit or loss as well as equity securities whose fair value changes are recognized in profit or loss or other comprehensive income or loss.

Results of the sensitivity analysis of changes in unobservable inputs as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Profit or loss					Other comprehensive income or loss
	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss:
Debt securities 3, 5		3,497		(3,496	)		—		—
Equity securities 2, 5		3,866		(1,826	)		—		—
Loans 4		13,797		(12,991	)		—		—
Derivatives held for trading 1		9,021		(6,533	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities 2, 5, 6		—		—			57,932		(31,594	)
		30,181		(24,846	)		57,932		(31,594	)
Financial liabilities
Derivatives held for trading 1		18,446		(18,463	)		—		—
		18,446		(18,463	)		—		—

74

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.2.3.2 Sensitivity analysis of changes in unobservable inputs (cont’d)

(In millions of Korean won)	December 31, 2022
	Profit or loss					Other comprehensive income or loss
	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss:
Debt securities 3, 5		3,468		(3,467	)		—		—
Equity securities 2, 5		4,609		(3,437	)		—		—
Loans 4		15,396		(14,393	)		—		—
Derivatives held for trading 1		2		(2	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities 2, 5, 6		—		—			137,984		(56,900	)
		23,475		(21,299	)		137,984		(56,900	)

¹  For derivative financial instruments, changes in fair value are calculated by shifting principal unobservable input parameters such as price and the volatility of underlying asset by ± 10%.

₂ For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p) and growth rate (0%p~1%p).

³  For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting rate of real estate sale price fluctuation (-1%p~1%p), and for beneficiary certificates whose underlying assets are equity investments, changes in fair value are calculated by shifting liquidation value (-1%p~1%p) and discount rate (-1%p~1%p). There is no significant correlation among major unobservable inputs.

⁴  For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as discount rate (-1%p~1%p).

⁵  The amounts of \ 4,955,007 million and \ 3,793,745 million of financial assets classified as level 3 as of December 31, 2023 and 2022, respectively, are excluded because it is practically impossible to analyze sensitivity of changes in unobservable inputs.

⁶  For some equity securities, changes in fair value are calculated by shifting principal unobservable input parameters such as stock price and volatility of stock price by ±10%.

6.2.4 Day one gains or losses

When the Bank measures the fair value of OTC derivatives using inputs that are not based on observable market data, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price, and the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. When the fair value of the financial instruments is subsequently determined using observable market inputs, the remaining deferred amount is recognized in profit or loss. There is no deferred day one gains or losses for the years ended December 31, 2023 and 2022.

75

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.3 Carrying Amount of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortized cost. Carrying amount of financial assets and liabilities by category as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial assets
Cash and due from financial institutions		—		—		—		21,648,290		—		21,648,290
Financial assets at fair value through profit or loss		16,609,611		—		—		—		—		16,609,611
Derivative financial assets		4,909,167		—		—		—		146,328		5,055,495
Loans measured at amortized cost		—		—		—		373,623,010		—		373,623,010
Financial investments		—		37,034,980		1,415,883		38,313,663		—		76,764,526
Other financial assets		—		—		—		10,597,311		—		10,597,311
		21,518,778		37,034,980		1,415,883		444,182,274		146,328		504,298,243

(In millions of Korean won)	December 31, 2023
	Financial instruments at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial liabilities
Financial liabilities at fair value through profit or loss		93,438		—		—		93,438
Derivative financial liabilities		4,516,443		—		77,823		4,594,266
Deposits		—		380,266,822		—		380,266,822
Borrowings		—		33,023,146		—		33,023,146
Debentures		—		30,058,233		—		30,058,233
Other financial liabilities		—		25,490,282		—		25,490,282
		4,609,881		468,838,483		77,823		473,526,187

76

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.3 Carrying Amount of Financial Instruments by Category (cont’d)

(In millions of Korean won)	December 31, 2022
	Financial instruments at fair value through profit or loss		Financial instruments at fair value through other comprehensive income		Financial instruments designated at fair value through other comprehensive income		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial assets
Cash and due from financial institutions		—		—		—		22,296,244		—		22,296,244
Financial assets at fair value through profit or loss		18,154,550		—		—		—		—		18,154,550
Derivative financial assets		7,509,568		—		—		—		238,226		7,747,794
Loans measured at amortized cost		—		—		—		363,839,085		—		363,839,085
Financial investments		—		37,991,164		1,418,454		34,616,403		—		74,026,021
Other financial assets		—		—		—		6,601,913		—		6,601,913
		25,664,118		37,991,164		1,418,454		427,353,645		238,226		492,665,607

(In millions of Korean won)	December 31, 2022
	Financial instruments at fair value through profit or loss		Financial instruments at amortized cost		Derivatives held for hedging		Total
Financial liabilities
Financial liabilities at fair value through profit or loss		108,862		—		—		108,862
Derivative financial liabilities		7,189,931		—		104,856		7,294,787
Deposits		—		368,100,984		—		368,100,984
Borrowings		—		43,664,670		—		43,664,670
Debentures		—		27,999,416		—		27,999,416
Other financial liabilities		—		17,158,325		—		17,158,325
		7,298,793		456,923,395		104,856		464,327,044

77

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.4 Transfer of Financial Assets

6.4.1 Transferred financial assets that are derecognized in their entirety

The Bank transferred loans and other financial assets to companies specialized in asset-backed securitization and derecognized them from the financial statement. While the maximum exposure to loss (carrying amount) from its continuing involvement and fair value of its continuing involvement of the derecognized financial assets as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Type of continuing involvement	Classification of financial instruments	Carrying amount of continuing involvement		Fair value of continuing involvement
Discovery 2nd Securitization Specialty Co., Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		564		564
AP 4D ABS Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		257		257
				821		821

(In millions of Korean won)	December 31, 2022
	Type of continuing involvement	Classification of financial instruments	Carrying amount of continuing involvement		Fair value of continuing involvement
Discovery 2nd Securitization Specialty Co., Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		564		564
AP 4D ABS Ltd.	Subordinated bond	Financial assets at fair value through profit or loss		541		541
				1,105		1,105

78

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.4.2 Bonds sold under repurchase agreements and loaned securities

The Bank continues to recognize the financial assets related to bonds sold under repurchase agreements and securities lending transactions in the statement of financial position since those transactions are not qualified for derecognition even though the Bank transfers the financial assets. Bonds sold under repurchase agreements are sold on the condition that they will be repurchased at a fixed price, and loaned securities will be returned at the expiration of the loan period. Thus, the Bank retains substantially all the risks and rewards of ownership of the financial assets.

The carrying amount of transferred assets and related liabilities as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Carrying amount of transferred assets		Carrying amount of related liabilities
Bonds sold under repurchase agreements		6,896,446		6,454,540
Loaned securities:
Government and public bonds		170,203		—
		7,066,649		6,454,540

(In millions of Korean won)	December 31, 2022
	Carrying amount of transferred assets		Carrying amount of related liabilities
Bonds sold under repurchase agreements		5,342,083		4,816,996
Loaned securities:
Government and public bonds		239,132		—
		5,581,215		4,816,996

79

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.5 Offsetting Financial Assets and Financial Liabilities

The Bank enters into International Swaps and Derivatives Association (“ISDA”) master netting agreements and other similar arrangements with the Bank’s OTC derivative and spot exchange counterparties. Similar netting agreements are also entered into with the Bank’s (a) sales or purchases of bonds under repurchase agreements and (b) securities lending and borrowing transactions, etc. Pursuant to these agreements, in the event of default by one party, contracts are to be terminated and receivables and payables are to be offset. As the Bank has the legal right of offset and settles in net amount, domestic exchange settlement debits and domestic exchange settlement credits are recognized in its net settlement balance in the statement of financial position. Other financial instruments such as account receivables and account payables related to listed securities, and derivatives or OTC derivatives settled by the central clearing house are also recognized in its net settlement balance in the statement of financial position as the Bank has the legal right of offset and settles in net amount.

6.5.1 Details of financial assets subject to enforceable master netting agreements or similar arrangements as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
			Gross			Net amount in		Non-offsetting amount
	Gross assets		liabilities offset			the statement of financial position		Financial instruments			Cash collateral			Net amount
Derivatives held for trading		4,897,048		—			4,897,048		(4,131,142	)		(12,419	)		889,815
Derivatives held for hedging		146,328		—			146,328
Unsettled spot exchange receivable		7,140,744		—			7,140,744		(6,854,055	)		—			286,689
Bonds purchased under repurchase agreements		2,227,801		—			2,227,801		(2,227,801	)		—			—
Domestic exchange settlement debits		63,172,013		(62,367,444	)		804,569		—			—			804,569
Other financial instruments		44,738		(39,487	)		5,251		—			—			5,251
		77,628,672		(62,406,931	)		15,221,741		(13,212,998	)		(12,419	)		1,996,324

(In millions of Korean won)

	December 31, 2022
			Gross			Net amount in		Non-offsetting amount
	Gross assets		liabilities offset			the statement of financial position		Financial instruments			Cash collateral			Net amount
Derivatives held for trading		7,509,535		—			7,509,535		(6,367,487	)		(826	)		1,379,448
Derivatives held for hedging		238,226		—			238,226
Unsettled spot exchange receivable		3,356,526		—			3,356,526		(3,355,280	)		—			1,246
Bonds purchased under repurchase agreements		2,281,357		—			2,281,357		(2,281,357	)		—			—
Domestic exchange settlement debits		55,446,595		(54,584,853	)		861,742		—			—			861,742
Other financial instruments		20,283		(15,143	)		5,140		—			—			5,140
		68,852,522		(54,599,996	)		14,252,526		(12,004,124	)		(826	)		2,247,576

80

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

6.5.2 Details of financial liabilities subject to enforceable master netting agreements or similar arrangements as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
			Gross			Net amount in		Non-offsetting amount
	Gross liabilities		assets offset			the statement of financial position		Financial instruments			Cash collateral		Net amount
Derivatives held for trading		4,374,540		—			4,374,540		(3,354,179	)		—		1,098,184
Derivatives held for hedging		77,823		—			77,823
Unsettled spot exchange payable		7,140,116		—			7,140,116		(6,854,055	)		—		286,061
Bonds sold under repurchase agreements *		6,454,539		—			6,454,539		(6,454,539	)		—		—
Domestic exchange settlement credits		65,227,189		(62,367,444	)		2,859,745		(2,859,745	)		—		—
Other financial instruments		48,143		(39,487	)		8,656		—			—		8,656
		83,322,350		(62,406,931	)		20,915,419		(19,522,518	)		—		1,392,901

(In millions of Korean won)	December 31, 2022
			Gross			Net amount in		Non-offsetting amount
	Gross liabilities		assets offset			the statement of financial position		Financial instruments			Cash collateral		Net amount
Derivatives held for trading		7,189,931		—			7,189,931		(4,925,362	)		—		2,369,425
Derivatives held for hedging		104,856		—			104,856
Unsettled spot exchange payable		3,356,368		—			3,356,368		(3,355,280	)		—		1,088
Bonds sold under repurchase agreements *		4,835,185		—			4,835,185		(4,835,185	)		—		—
Domestic exchange settlement credits		56,319,757		(54,584,853	)		1,734,904		(1,734,904	)		—		—
Other financial instruments		15,212		(15,143	)		69		—			—		69
		71,821,309		(54,599,996	)		17,221,313		(14,850,731	)		—		2,370,582

* Includes bonds sold under repurchase agreements to customers.

81

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

7. Due from Financial Institutions

7.1 Details of due from financial institutions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Financial institutions	Interest rate (%)	December 31, 2023		December 31, 2022
Due from financial institutions in Korean won	Due from Bank of Korea	Bank of Korea	—		13,731,708		15,169,704
	Due from banks	Hana Bank and others	—		407,171		2,374
	Due from others	CITIBANK N.A. SINGAPORE(Custody)	—		1,153		—
					14,140,032		15,172,078
Due from financial institutions in foreign currencies	Due from banks in foreign currencies	CITIBANK N.A. and others	—		4,717,999		3,598,520
	Time deposits in foreign currencies	BANK OF COMMUNICATIONS, SEOUL and others	5.83~7.35		207,001		218,094
	Due from others	STATE STREET BANK AND TRUST COMPANY SEOUL BRANCH and others	0.00~6.25		500,801		957,126
					5,425,801		4,773,740
					19,565,833		19,945,818

* Before netting of allowance, including W 19,279,871 million classified as cash.

7.2 Details of restricted due from financial institutions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Financial institutions	December 31, 2023		December 31, 2022		Reasons of restriction
Due from financial institutions in Korean won	Due from Bank of Korea	Bank of Korea		13,731,708		15,169,704	Bank of Korea Act
Due from financial institutions in foreign currencies	Due from banks in foreign currencies	Bank of Korea and others		910,502		844,287	Bank of Korea Act and others
	Time deposits in foreign currencies	AGRICULTURAL BANK OF CHINA NEW YORK BRANCH		77,364		63,365	New York State Banking Law
	Due from others	STATE STREET BANK AND TRUST COMPANY SEOUL and others		207,442		238,660	Derivatives margin account
				1,195,308		1,146,312
				14,927,016		16,316,016

* Before netting of allowance, including W 14,641,751 million classified as cash.

82

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

7.3 Changes in allowances for credit losses of due from financial institutions for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	12-month expected		Lifetime expected credit losses
	credit losses		Non-impaired		Impaired
Beginning		27		—		—
Transfer between stages		—		—		—
Provision (reversal) for credit losses		63		—		—
Others (exchange differences, etc.)		—		—		—
Ending		90		—		—

(In millions of Korean won)	2022
	12-month expected			Lifetime expected credit losses
	credit losses			Non-impaired		Impaired
Beginning		132			—		—
Transfer between stages		—			—		—
Provision (reversal) for credit losses		(110	)		—		—
Others (exchange differences, etc.)		5			—		—
Ending		27			—		—

83

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

8. Assets Pledged as Collateral

8.1 Details of assets pledged as collateral as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023
Assets pledged	Pledgee	Carrying amount		Reasons of pledge
Securities measured at fair value through profit or loss	Korea Exchange		7,414	Repurchase agreements
	Bank of Korea		266,577	Settlement risk of Bank of Korea
			273,991
Securities measured at fair value through other comprehensive income	Bank of Korea and others		5,783,458	Repurchase agreements
	Bank of Korea		527,494	Borrowings from Bank of Korea
			830,504	Settlement risk of Bank of Korea
	MUFGBANK and others		89,941	Derivatives transactions
	Others		1,241,904	Others
			8,473,301
Securities measured at amortized cost	Bank of Korea and others		625,003	Repurchase agreements
	Bank of Korea		2,357,018	Borrowings from Bank of Korea
			6,746,440	Settlement risk of Bank of Korea
	KB Securities Co., Ltd. and others		401,448	Derivatives transactions
	Others		1,484,113	Others
			11,614,022
Loans	Others		13,733,819	Covered bond and others
			34,095,133

(In millions of Korean won)		December 31, 2022
Assets pledged	Pledgee	Carrying amount		Reasons of pledge
Securities measured at fair value through profit or loss	Korea Securities Finance Corporation		34,071	Difference amount of the total limit
	Bank of Korea		236,833	Settlement risk of Bank of Korea
			270,904
Securities measured at fair value through other comprehensive income	Bank of Korea		3,078,859	Repurchase agreements
			5,495,686	Borrowings from Bank of Korea
			1,782,507	Settlement risk of Bank of Korea
	MUFGBANK and others		475,265	Derivatives transactions
	UBSAG and others		486,654	Others
			11,318,971
Securities measured at amortized cost	Bank of Korea and others		1,890,368	Repurchase agreements
	Bank of Korea		4,020,539	Borrowings from Bank of Korea
			5,047,277	Settlement risk of Bank of Korea
	KB Securities Co., Ltd. and others		230,050	Derivatives transactions
	CITI Bank and others		378,416	Others
			11,566,650
Loans	Others		12,863,079	Covered bond and others
			36,019,604

84

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

8.2 Fair value of collateral available to sell or repledge, and collateral sold or repledged, regardless of debtor’s default as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Fair value of collateral held		Fair value of collateral sold or repledged
Securities		2,417,243		—

(In millions of Korean won)	December 31, 2022
	Fair value of collateral held		Fair value of collateral sold or repledged
Securities		2,572,441		—

85

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

9. Derivative Financial Instruments and Hedge Accounting

The Bank engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Bank’s own assets and liabilities. In particular, the Bank applies fair value hedge accounting using interest rate swaps to hedge the risk of changes in fair value due to the changes in interest rate of debentures, deposits, and debt securities at fair value through other comprehensive income. Also, the Bank applies cash flow hedge accounting using interest rate swaps to hedge the risk of changes in cash flows of debentures in foreign currencies, borrowings in foreign currencies, and group of loans measured at amortized cost.

9.1 Details of derivative financial instruments held for trading as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023						December 31, 2022
	Notional amount		Assets		Liabilities		Notional amount		Assets		Liabilities
Interest rate
Forwards		3,847,049		156,650		135,761		2,765,927		355,407		11,092
Futures 1		1,112,923		—		—		1,626,608		—		—
Swaps 2		223,135,489		461,433		347,771		222,419,084		759,599		469,544
Options		9,074,000		201,700		205,239		9,798,000		268,469		265,283
		237,169,461		819,783		688,771		236,609,619		1,383,475		745,919
Currency
Forwards		132,067,366		1,290,979		1,246,732		106,889,214		2,537,700		2,346,894
Futures 1		—		—		—		50,692		—		—
Swaps		85,656,633		2,784,209		2,430,844		93,409,026		3,563,775		4,067,824
Options		1,238,255		2,077		8,193		2,270,274		24,585		29,294
		218,962,254		4,077,265		3,685,769		202,619,206		6,126,060		6,444,012
Stock and index
Futures		27,424		—		—		—		—		—
Options		704,000		12,119		141,903		355		33		—
		731,424		12,119		141,903		355		33		—
		456,863,139		4,909,167		4,516,443		439,229,180		7,509,568		7,189,931

¹  Gains or losses arising from daily mark-to-market futures are reflected in the margin accounts.

²  Notional amounts of W 188,969,696 million and W 184,555,603 million as of December 31, 2023 and 2022, respectively, were traded through the central clearing house.

86

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument		1,802,610		3,370,605		1,559,872		349,482		267,778		2,304,270		9,654,617
Average price condition (%), (SOFR and CD)		4.77		4.86		5.18		5.23		5.73		4.93		4.95
Cash flow hedge
Nominal amount of the hedging instrument		1,028,940		—		386,820		820,058		—		—		2,235,818
Average price condition (%), (SOFR and CD)		4.12		—		5.37		6.33		—		—		5.15

(In millions of Korean won)	December 31, 2022
	1 year		2 years		3 years		4 years		5 years		Over 5 years		Total
Fair value hedge
Nominal amount of the hedging instrument		5,064,802		1,128,620		2,660,326		1,862,039		426,551		2,147,845		13,290,183
Average price condition (%), (SOFR, CD and LIBOR)		4.17		4.52		4.64		4.56		4.36		4.64		4.43
Cash flow hedge
Nominal amount of the hedging instrument		843,555		226,730		—		—		806,003		—		1,876,288
Average price condition (%), (SOFR, CD and LIBOR)		4.64		4.06		—		—		5.10		—		4.77

87

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

9.3 Fair Value Hedge

9.3.1 Details of fair value hedged items as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023										2023
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair
		Assets		Liabilities		Assets			Liabilities			value
Interest rate	Debt securities in Korean won		1,975,442		—		(50,746	)		—			49,323
	Debt securities in foreign currencies		2,585,073		—		(111,902	)		—			74,080
	Deposits in Korean won		—		49,985		—			(15	)		15
	Deposits in foreign currencies		—		32,015		—			(6,667	)		(1,924	)
	Debentures in Korean won		—		5,678,927		—			(141,073	)		(94,418	)
	Debentures in foreign currencies		—		1,310,952		—			(68,706)			(27,159)
			4,560,515		7,071,879		(162,648	)		(216,461	)		(83	)

(In millions of Korean won)		December 31, 2022										2022
		Carrying amount				Accumulated amount of hedge adjustments						Changes in fair
		Assets		Liabilities		Assets			Liabilities			value
Interest rate	Debt securities in Korean won		2,467,171		—		(107,444	)		—			(86,757	)
	Debt securities in foreign currencies		3,142,972		—		(232,085	)		—			(215,184	)
	Deposits in foreign currencies		—		29,429		—			(8,591	)		6,976
	Debentures in Korean won		—		5,690,371		—			(249,629	)		171,841
	Debentures in foreign currencies		—		1,196,781		—			(95,865	)		123,817
			5,610,143		6,916,581		(339,529	)		(354,085	)		693

88

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

9.3.2 Details of derivative instruments designated as fair value hedge as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023						2023
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Swaps		9,654,617		111,359		75,776		(15,927	)

(In millions of Korean won)	December 31, 2022						2022
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Swaps		13,290,183		186,258		104,856		(1,245	)

9.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Interest rate		6,513		(552	)

9.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Losses on hedging instruments		6,597			28,171
Gains on hedged items attributable to the hedged risk		(5,846	)		(28,752	)
		751			(581	)

9.4 Cash Flow Hedge

9.4.1 Details of cash flow hedged items as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Cash flow hedge reserve				Changes in fair value
	December 31, 2023		December 31, 2022		2023		2022
Interest rate risk		21,017		33,921		13,824		(47,251	)

89

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

9.4.2 Details of derivative instruments designated as cash flow hedges as of December 31, 2023 and 2022 and changes in fair value for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023						2023
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Swaps		2,235,818		34,969		2,047		(12,455	)

(In millions of Korean won)	December 31, 2022						2022
	Notional amount		Assets		Liabilities		Changes in fair value
Interest rate
Swaps		1,876,288		51,968		—		44,064

9.4.3 Gains on cash flow hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Gains on hedging instruments:		(12,455	)		44,064
Effective portion of gains on cash flow hedging instruments (recognized in other comprehensive income)		(12,395	)		43,886
Ineffective portion of gains on cash flow hedging instruments (recognized in profit)		(60	)		178

9.4.4 Amounts recognized in other comprehensive income and reclassified from equity to profit or loss related to derivative instruments designated as cash flow hedges for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Other comprehensive income		(12,395	)		43,886
Reclassification to profit		(5,200	)		2,388
Income tax effect		4,691			(12,264	)
		(12,904	)		34,010

9.4.5 As of December 31, 2023, the hedged items subject to cash flow hedges are exposed to the risk of changes in cash flows until August 5, 2027.

90

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

10. Loans Measured at Amortized Cost

10.1 Details of loans as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Loans		375,588,104			365,118,018
Deferred loan origination fees and costs		510,766			494,795
Less: Allowances for credit losses		(2,475,860	)		(1,773,728	)
		373,623,010			363,839,085

10.2 Details of loans to banks as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Loans		12,994,437			12,027,410
Less: Allowances for credit losses		(21,950	)		(2,881	)
		12,972,487			12,024,529

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
	Retail			Corporate			Total
Loans in Korean won		166,905,843			172,316,635			339,222,478
Loans in foreign currencies		97,729			16,141,611			16,239,340
Domestic import usance bills		—			3,398,981			3,398,981
Off-shore funding loans		—			507,683			507,683
Call loans		—			269,198			269,198
Bills bought in Korean won		—			1,861			1,861
Bills bought in foreign currencies		—			1,272,372			1,272,372
Guarantee payments under acceptances and guarantees		—			6,709			6,709
Bonds purchased under repurchase agreements		—			1,969,916			1,969,916
Privately placed bonds		—			215,895			215,895
		167,003,572			196,100,861			363,104,433
Proportion (%)		45.99			54.01			100.00
Less: Allowances for credit losses		(660,139	)		(1,793,771	)		(2,453,910	)
		166,343,433			194,307,090			360,650,523

91

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2022
	Retail			Corporate			Total
Loans in Korean won		166,411,567			159,709,016			326,120,583
Loans in foreign currencies		130,285			16,482,236			16,612,521
Domestic import usance bills		—			4,499,072			4,499,072
Off-shore funding loans		—			963,709			963,709
Call loans		—			100,000			100,000
Bills bought in Korean won		—			860,767			860,767
Bills bought in foreign currencies		—			1,777,661			1,777,661
Guarantee payments under acceptances and guarantees		—			2,083			2,083
Bonds purchased under repurchase agreements		—			2,281,357			2,281,357
Privately placed bonds		—			367,650			367,650
		166,541,852			187,043,551			353,585,403
Proportion (%)		47.10			52.90			100.00
Less: Allowances for credit losses		(725,584	)		(1,045,263	)		(1,770,847	)
		165,816,268			185,998,288			351,814,556

10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	Beginning		Increase		Decrease			Others		Ending
Deferred loan origination costs
Loans in Korean won		522,284		338,909		(327,972	)		—		533,221
Others		379		76		(349	)		—		106
		522,663		338,985		(328,321	)		—		533,327
Deferred loan origination fees
Loans in Korean won		24,039		7,882		(11,182	)		—		20,739
Loans in foreign currencies and others		3,829		4		(2,011	)		—		1,822
		27,868		7,886		(13,193	)		—		22,561
		494,795		331,099		(315,128	)		—		510,766

(In millions of Korean won)	2022
	Beginning		Increase		Decrease			Others			Ending
Deferred loan origination costs
Loans in Korean won		583,477		243,913		(305,106	)		—			522,284
Others		168		550		(343	)		4			379
		583,645		244,463		(305,449	)		4			522,663
Deferred loan origination fees
Loans in Korean won		10,076		23,067		(9,104	)		—			24,039
Loans in foreign currencies and others		2,389		8,432		(6,998	)		6			3,829
		12,465		31,499		(16,102	)		6			27,868
		571,180		212,964		(289,347	)		(2	)		494,795

92

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

11. Allowances for Credit Losses

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)

	2023
	Retail											Corporate
	12-month expected			Lifetime expected credit losses						Credit		12-month expected			Lifetime expected credit losses						Credit
	credit losses			Non- impaired			Impaired			impaired approach		credit losses			Non- impaired			Impaired			impaired approach
Beginning		416,348			195,027			114,209			—		369,592			502,475			176,077			—
Transfer between stages:
Transfer to 12-month expected credit losses		124,094			(124,067	)		(27	)		—		114,545			(114,120	)		(425	)		—
Transfer to lifetime expected credit losses (non-impaired)		(108,095	)		118,414			(10,319	)		—		(115,495	)		146,835			(31,340	)		—
Transfer to lifetime expected credit losses (impaired)		(798	)		(57,686	)		58,484			—		(1,539	)		(75,532	)		77,071			—
Write-offs		—			14			(252,853	)		—		—			9			(189,411	)		—
Sales		(1,040	)		(506	)		(3,062	)		—		—			(315	)		(24,195	)		—
Provision(reversal) for credit losses 1, 2		(55,122	)		40,119			209,348			—		376,010			285,630			323,796			—
Others (exchange differences, etc.)		107			194			(2,644	)		—		731			294			(4,972	)		—
Ending 3		375,494			171,509			113,136			—		743,844			745,276			326,601			—

93

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

11.1 Changes in allowances for credit losses of loans for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)

	2022
	Retail											Corporate
	12-month expected			Lifetime expected credit losses						Credit		12-month expected			Lifetime expected credit losses						Credit
	credit losses			Non-impaired			Impaired			impaired approach		credit losses			Non-impaired			Impaired			impaired approach
Beginning		288,395			164,845			105,367			—		321,650			426,492			194,969			—
Transfer between stages:
Transfer to 12-month expected credit losses		115,382			(115,348	)		(34	)		—		120,159			(119,860	)		(299	)		—
Transfer to lifetime expected credit losses (non-impaired)		(94,126	)		99,854			(5,728	)		—		(91,116	)		114,517			(23,401	)		—
Transfer to lifetime expected credit losses (impaired)		(705	)		(38,984	)		39,689			—		(1,122	)		(37,983	)		39,105			—
Write-offs		—			(1	)		(213,834	)		—		—			(3	)		(146,176	)		—
Sales		(805	)		(137	)		(289	)		—		—			(58	)		(14,064	)		—
Provision for credit losses 1, 2		108,306			84,778			189,369			—		17,858			118,015			127,171			—
Others (exchange differences, etc.)		(99	)		20			(331	)		—		2,163			1,355			(1,228	)		—
Ending		416,348			195,027			114,209			—		369,592			502,475			176,077			—

¹ Provision (reversal) for credit losses in the statements of comprehensive income also includes provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note 22.2), provision (reversal) for credit losses of financial guarantee contracts (Note 22.4), provision (reversal) for credit losses of other financial assets (Note 18.2), provision (reversal) for credit losses of due from financial institutions (Note 7.3) and provision (reversal) for credit losses of debt securities (Note 12.5).

² Includes W 130,694 million and W 223,355 million of collections from written-off loans for the years ended December 31, 2023 and 2022, respectively.

³ Includes additional allowances of W 214,276 million for the borrowers which are highly affected by the termination of COVID-19 financial support as of December 31, 2023.

The amount of financial assets that the bank wrote off during the current year but is continuing recovery activities is W 442,241 million. The Bank manages the written-off loans for which their legal extinctive prescriptions have not been completed, and that have not been collected. The balances of those loans are W 6,947,603 million and W 7,037,343 million as of December 31, 2023 and 2022, respectively.

94

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

11.2 Changes in gross carrying amount of loans for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	12-month			Lifetime expected credit losses						Credit
	expected credit losses			Non- impaired			Impaired			impaired approach
Beginning		338,830,966			25,969,392			812,455			—
Transfer between stages:
Transfer to 12-month expected credit losses		31,820,666			(31,521,657	)		(299,009	)		—
Transfer to lifetime expected credit losses (non-impaired)		(39,383,865	)		40,007,920			(624,055	)		—
Transfer to lifetime expected credit losses (impaired)		(745,605	)		(2,307,133	)		3,052,738			—
Write-offs		—			23			(442,264	)		—
Sales		(2,898,483	)		(39,365	)		(392,330	)		—
Net increase (decrease) (execution, repayment, and others)		16,380,325			(1,320,370	)		(801,479	)		—
Ending		344,004,004			30,788,810			1,306,056			—

(In millions of Korean won)	2022
	12-month			Lifetime expected credit losses						Credit
	expected credit losses			Non- impaired			Impaired			impaired approach
Beginning		324,592,824			25,567,832			779,824			—
Transfer between stages:
Transfer to 12-month expected credit losses		33,342,008			(33,283,109	)		(58,899	)		—
Transfer to lifetime expected credit losses (non-impaired)		(36,557,245	)		36,905,018			(347,773	)		—
Transfer to lifetime expected credit losses (impaired)		(251,387	)		(1,228,003	)		1,479,390			—
Write-offs		—			(4	)		(360,010	)		—
Sales		(2,449,296	)		(13,615	)		(129,128	)		—
Net increase (decrease) (execution, repayment, and others)		20,154,062			(1,978,727	)		(550,949	)		—
Ending		338,830,966			25,969,392			812,455			—

95

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

12. Financial Assets at Fair Value through Profit or Loss and Financial Investments

12.1 Details of financial assets at fair value through profit or loss and financial investments as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Financial assets at fair value through profit or loss
Debt securities:
Government and public bonds		5,353,482			4,084,362
Financial bonds		2,980,101			5,287,488
Corporate bonds		219,219			145,007
Beneficiary certificates		5,420,739			6,666,088
Investment funds		769,382			528,795
Other debt securities		1,340,049			934,068
Equity securities:
Stocks		144,577			137,831
Loans:
Other loans		288,319			280,905
Others:
Financial instruments indexed to the price of gold		93,743			90,006
		16,609,611			18,154,550
Financial investments
Financial assets at fair value through other comprehensive income
Debt securities:
Government and public bonds		8,246,333			7,672,296
Financial bonds		16,368,060			17,079,749
Corporate bonds		11,287,148			12,603,246
Asset-backed securities		821,829			237,605
Other debt securities		—			167,247
Equity securities:
Stocks		1,407,864			1,402,899
Equity investments		8,019			15,555
Loans:
Privately placed bonds		311,610			231,021
		38,450,863			39,409,618
Financial assets at amortized cost
Debt securities:
Government and public bonds		6,502,632			6,520,633
Financial bonds		12,913,853			10,315,697
Corporate bonds		9,368,943			10,026,039
Asset-backed securities		9,398,498			7,395,434
Other debt securities		147,847			363,984
Less: Allowances for credit losses		(18,110	)		(5,384	)
		38,313,663			34,616,403
		76,764,526			74,026,021

96

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

12.2 Dividend income from equity securities designated at fair value through other comprehensive income for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		2023				2022
		From the equity securities derecognized		From the equity securities held		From the equity securities derecognized		From the equity securities held
Stocks	Listed		—		1,999		—		409
	Unlisted		—		2,361		—		9,476
			—		4,360		—		9,885

12.3 Derecognized equity securities measured at fair value through other comprehensive income for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		2023					2022
		Disposal price		Accumulated  other comprehensive loss as of disposal date			Disposal price		Accumulated  other comprehensive income as of disposal date
Stocks	Listed		36,595		36,719			425,736		335,203
	Unlisted		282		(738	)		—		—
			36,877		35,981			425,736		335,203

12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	Provision		Reversal			Total
Financial assets at fair value through other comprehensive income		10,922		(1,645	)		9,277
Securities measured at amortized cost		14,183		(1,458	)		12,725
		25,105		(3,103	)		22,002

(In millions of Korean won)	2022
	Provision		Reversal			Total
Financial assets at fair value through other comprehensive income		1,666		(3,462	)		(1,796	)
Securities measured at amortized cost		2,771		(613	)		2,158
		4,437		(4,075	)		362

97

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

12.5 Changes in allowances for credit losses of financial investments for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	12-month expected			Lifetime expected credit losses
	credit losses			Non-impaired			Impaired
Beginning		11,601			270			—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—			—
Transfer to lifetime expected credit losses		—			—			—
Sales		(532	)		(270	)		—
Provision (reversal) for credit losses		22,002			—			—
Others (exchange differences, etc.)		21			—			—
Ending		33,092			—			—

(In millions of Korean won)	2022
	12-month expected			Lifetime expected credit losses
	credit losses			Non-impaired			Impaired
Beginning		11,985			27			—
Transfer between stages:
Transfer to 12-month expected credit losses		—			—			—
Transfer to lifetime expected credit losses		—			—			—
Sales		(612	)		(20	)		—
Provision (reversal) for credit losses		99			263			—
Others (exchange differences, etc.)		129			—			—
Ending		11,601			270			—

98

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13. Investments in Associates and Subsidiaries

13.1 Details of investments in associates and subsidiaries as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023
(In thousands of US dollars) (In hundred millions of Indonesian rupiah)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Associates
Korea Credit Bureau Co., Ltd. 1		9.00		4,500		5,617			2,769	Credit information	Korea
Incheon Bridge Co., Ltd. 1		14.99		9,159		(12,640	)		9,159	Operation of highways and related facilities	Korea
KB SPROTT Renewable Private Equity Fund No.1		29.63		13,886		12,588			13,886	Investment finance	Korea
KB Digital Innovation & Growth New Technology Business Investment Fund		45.00		4,500		3,524			4,500	Discovery of and investment in promising FinTech-business venture	Korea
KB Digital Platform Fund		46.67		50,400		47,947			50,400	Digital platform and Tech-based investment in promising companies	Korea
KB Prime Digital Platform Fund		43.33		7,150		6,916			7,150	Digital platform and Tech-based investment in promising companies	Korea
Future Planning KB Start-up Creation Fund		50.00		1,500		7,814			1,500	Investment finance	Korea
KB High-tech Company Investment Fund		50.00		1,500		9,424			1,500	Investment finance	Korea
Aju Good Technology Venture Fund		38.46		344		14,297			344	Investment finance	Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund		33.33		1,800		3,031			1,800	Investment finance	Korea
KB-TS Technology Venture Private Equity Fund		30.00		4,860		6,628			4,860	Investment finance	Korea
KB Intellectual Property Fund No.2		37.50		15,000		16,936			15,000	Investment finance	Korea
KB Digital Innovation Investment Fund Limited Partnership		25.74		32,655		34,721			32,655	Investment finance	Korea
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund 2		21.28		—		3,072			—	Investment finance	Korea
KB Global Platform Fund		22.73		43,850		43,755			43,850	Investment finance	Korea
KB Global Platform Fund No.2		20.00		12,000		11,172			12,000	Investment finance	Korea
KB-UTC Inno-Tech Venture Fund		29.53		12,750		10,454			12,750	Investment finance	Korea
WJ Private Equity Fund No.1		26.95		10,000		9,483			10,000	Investment finance	Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		28.57		9,700		9,566			9,700	Investment finance	Korea

99

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates and subsidiaries as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
(In thousands of US dollars) (In hundred millions of Indonesian rupiah)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
KB Smart Scale Up Fund		25.00		50,000		52,905			50,000	Investment finance	Korea
KB Bio Global Expansion Private Equity Fund No.1		26.32		10,000		10,597			10,000	Investment finance	Korea
KB-KTB Technology Venture Fund		27.27		12,000		11,459			11,471	Investment finance	Korea
KB-SOLIDUS Healthcare Investment Fund		30.30		14,300		13,498			13,531	Investment finance	Korea
KB New Deal Innovation Fund		20.00		20,000		19,372			18,893	Investment finance	Korea
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		20.43		27,034		26,969			27,034	Investment finance	Korea
All Together Korea Fund No.2 3		99.99		10,000		10,541			10,000	Asset management	Korea
Shinla Construction Co., Ltd. 4		20.17		—		(551	)		—	Specialty construction	Korea
Terra Corporation 4		24.06		—		2			—	Manufacture of fabricated and processed metal products	Korea
MJT&I Corp. 4		22.89		—		(880	)		—	Wholesale of other merchandise	Korea
Jungdong Steel Co., Ltd. 4		42.65		—		(433	)		—	Wholesale of primary metal	Korea
DSMETAL Co., Ltd. 4		26.49		—		(101	)		—	Manufacture of metal door, windows, shutter and relevant products	Korea
Shinhwa Underwear Co., Ltd. 4		26.05		—		(96	)		—	Manufacture of underwear and sleepwear	Korea
Jaeyang Industry Co., Ltd. 4		20.86		—		(552	)		—	Manufacture of luggage and other protective cases	Korea
Kendae Co., Ltd. 4		41.01		—		(252	)		—	Screen printing	Korea
Jinseung Tech Co., Ltd. 4		30.04		—		(33	)		—	Manufacture of other general-purpose machinery	Korea
Dongjo Co., Ltd. 4		29.29		—		142			—	Wholesale of agricultural and forestry machinery and equipment	Korea
Korea NM Tech Co., Ltd. 4		22.41		—		546			—	Manufacture of motor vehicles, trailers and semitrailers	Korea
Jungdo Co., Ltd. 4		25.34		—		1,231			—	Office, commercial and institutional building construction	Korea
Dae-A Leisure Co., Ltd. 4		49.36		—		436			—	Earth works	Korea
Chongil Machine & Tools Co., Ltd. 4		20.40		—		(178	)		—	Wholesale of machinery and equipment	Korea
Imt Technology Co., Ltd. 4		25.29		—		30			—	Computer Peripherals Distribution	Korea
Iwon Alloy Co., Ltd. 4		23.20		—		376			—	Manufacture of smelting, refining and alloys	Korea

100

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates and subsidiaries as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
(In thousands of US dollars) (In hundred millions of Indonesian rupiah)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Computerlife Co., Ltd. 4		25.41		—		(124	)		—	Publishing of magazines and periodicals (publishing industry)		Korea
Skydigital Inc. 4		20.40		—		(338	)		—	Manufacture of multimedia and video devices		Korea
Jo Yang Industrial Co., Ltd. 4		22.77		—		(72	)		—	Manufacture of special glass		Korea
Il-Kwang Electronic Materials Co., Ltd. 4		29.06		—		(555	)		—	Manufacture of electronic parts		Korea
So-Myung Recycling Co., Ltd. 4		20.23		—		243			—	Manufacture of nonferrous metal		Korea
PIP System Co., Ltd. 4		20.72		—		27			—	Print equipment		Korea
Gwang Myung Paper Co., Ltd. 4		20.54		—		84			—	Wholesale of luggage and other protective cases		Korea
D-Partner 4		20.94		—		844			—	Backlight film		Korea
Chunsung-meat Co., Ltd. 4		26.74		—		237			—	Wholesale of meat		Korea
DS Fashionbiz Co., Ltd. 4		47.64		—		16			—	Manufacture of textiles		Korea
ALTSCS Co., Ltd. 4		47.11		—		14			—	Manufacture of motor vehicle parts		Korea
E-Won Chemical Co., Ltd. 4		24.30		—		31			—	Manufacture, wholesale and retail trade of feeds		Korea
TMAPMOBILITY CO.,LTD. 1		8.24		200,000		51,866			200,000	Application software development and supply		Korea
TKDS CO., LTD 4		20.03		—		63			—	Manufacture of video and other imaging equipment		Korea
SANDLE FARMING ASSOCIATION 4		23.04		—		309			—	Manufacture of edible refined oil and processed oil		Korea
TAEYEONG PRECISION IND. CO.,LTD. 4		28.51		—		4			—	Manufacture of mould and metallic patterns		Korea
Seokwang T&I Co., Ltd. 4		33.64		—		705			—	Freight transport brokerage, agency and related services		Korea
MJK TRADING CO.,LTD.4		25.05		—		(62	)		—	Braided clothing manufacturing		Korea
ONIGYU CO.,LTD. 4		32.45		—		33			—	Brokerage of food and tobacco		Korea
DNGV CO.,LTD 4		22.39		—		411			—	Manufacture of automotive engine		Korea
Alpa information & Communication Co.,Ltd. 4		22.91		—		93			—	Manufacture of computers and peripheral equipment		Korea
JC TECHNO CO.,LTD. 4		29.32		—		737			—	Manufacture of industrial electrical and electronic equipment		Korea
				578,888		443,899			574,752
Subsidiaries
Kookmin Bank(China) Ltd. 5		100.00		USD 383,875		530,056			418,155	Banking and foreign exchange transaction		China
KB Microfinance Myanmar Co., Ltd. 5		100.00		USD 20,000		11,227			22,405	Micro financing		Myanmar
KB BANK MYANMAR LTD 5		100.00		USD 200,000		256,568			221,780	Banking and foreign exchange transaction		Myanmar
KB PRASAC BANK PLC. 5, 6		100.00		USD 997,098		1,358,804			1,199,370	Banking and foreign exchange transaction		Cambodia
PT Bank KB Bukopin Tbk 5		66.88		IDR 100,525		411,437			840,386	Banking and foreign exchange transaction		Indonesia
Orient Kwang-yang Co., Ltd.		36.16		—		(5,978	)		—	Building of ships		Korea
						2,562,114			2,702,096
						3,006,013			3,276,848

101

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates and subsidiaries as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2022
(In thousands of US dollars) (In hundred millions of Indonesian rupiah)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Associates
Korea Credit Bureau Co., Ltd. 1		9.00		4,500		4,959			2,769	Credit information		Korea
Incheon Bridge Co., Ltd. 1		14.99		9,159		(15,963	)		9,159	Operation of highways and related facilities		Korea
KB SPROTT Renewable Private Equity Fund No.1		30.00		14,361		13,165			14,361	Investment finance		Korea
KB Digital Innovation & Growth New Technology Business Investment Fund		45.00		4,500		4,038			4,500	Discovery of and investment in promising FinTech-business venture		Korea
KB Digital Platform Fund		46.67		26,600		25,357			26,600	Digital platform and Tech-based investment in promising companies		Korea
KB Prime Digital Platform Fund		43.33		2,600		2,563			2,600	Digital platform and Tech-based investment in promising companies		Korea
Future Planning KB Start-up Creation Fund		50.00		2,200		9,793			2,200	Investment finance		Korea
KB High-tech Company Investment Fund		50.00		1,500		10,662			1,500	Investment finance		Korea
Aju Good Technology Venture Fund		38.47		8,144		19,840			8,144	Investment finance		Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund		33.33		1,800		2,989			1,800	Investment finance		Korea
KB-TS Technology Venture Private Equity Fund		30.00		5,220		7,390			5,220	Investment finance		Korea
KB Intellectual Property Fund No.2		37.50		15,000		15,204			15,000	Investment finance		Korea
KB Digital Innovation Investment Fund Limited Partnership		25.74		35,000		34,693			35,000	Investment finance		Korea
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		21.28		6,600		8,901			6,600	Investment finance		Korea
KB Global Platform Fund		22.73		43,850		50,366			43,850	Investment finance		Korea
KB-UTC Inno-Tech Venture Fund		29.53		14,250		12,786			14,250	Investment finance		Korea
WJ Private Equity Fund No.1		26.95		10,000		9,542			10,000	Investment finance		Korea
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		28.57		10,000		8,380			10,000	Investment finance		Korea
KB Smart Scale Up Fund		25.00		43,000		40,288			43,000	Investment finance		Korea
KB Scale Up Fund II		20.00		4,500		4,438			4,500	Investment finance		Korea
KB Bio Global Expansion Private Equity Fund No.1		26.32		10,000		10,519			10,000	Investment finance		Korea
KB-KTB Technology Venture Fund		27.27		9,000		8,709			9,000	Investment finance		Korea
KB-SOLIDUS Healthcare Investment Fund		29.41		6,600		6,217			6,600	Investment finance		Korea
KB New Deal Innovation Fund		20.00		13,600		13,241			13,600	Investment finance		Korea
All Together Korea Fund No.2 3		99.99		10,000		10,244			10,000	Asset management		Korea
Shinla Construction Co., Ltd. 4		20.17		—		(551	)		—	Specialty construction		Korea

102

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates and subsidiaries as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2022
(In thousands of US dollars) (In hundred millions of Indonesian rupiah)	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Terra Corporation 4		24.06		—		2			—	Manufacture of fabricated and processed metal products		Korea
MJT&I Corp. 4		22.89		—		(882	)		—	Wholesale of other merchandise		Korea
Jungdong Steel Co., Ltd. 4		42.65		—		(433	)		—	Wholesale of primary metal		Korea
DSMETAL Co., Ltd. 4		26.49		—		(101	)		—	Manufacture of metal door, windows, shutter and relevant products		Korea
Shinhwa Underwear Co., Ltd. 4		26.05		—		(73	)		—	Manufacture of underwear and sleepwear		Korea
Jaeyang Industry Co., Ltd. 4		20.86		—		(552	)		—	Manufacture of luggage and other protective cases		Korea
Kendae Co., Ltd. 4		41.01		—		(252	)		—	Screen printing		Korea
Jinseung Tech Co., Ltd. 4		30.04		—		(191	)		—	Manufacture of other general-purpose machinery		Korea
Dongjo Co., Ltd. 4		29.29		—		(5	)		—	Wholesale of agricultural and forestry machinery and equipment		Korea
Korea NM Tech Co., Ltd. 4		22.41		—		549			—	Manufacture of motor vehicles, trailers and semitrailers		Korea
Jungdo Co., Ltd. 4		25.34		—		1,112			—	Office, commercial and institutional building construction		Korea
Dae-A Leisure Co., Ltd. 4		49.36		—		523			—	Earth works		Korea
Chongil Machine & Tools Co., Ltd. 4		20.40		—		(178	)		—	Wholesale of machinery and equipment		Korea
Imt Technology Co., Ltd. 4		25.29		—		34			—	Computer Peripherals Distribution		Korea
Iwon Alloy Co., Ltd. 4		23.20		—		374			—	Manufacture of smelting, refining and alloys		Korea
Computerlife Co., Ltd. 4		25.41		—		(130	)		—	Publishing of magazines and periodicals (publishing industry)		Korea
Skydigital Inc. 4		20.40		—		(318	)		—	Manufacture of multimedia and video devices		Korea
Jo Yang Industrial Co., Ltd. 4		22.77		—		(36	)		—	Manufacture of special glass		Korea
Il-Kwang Electronic Materials Co., Ltd. 4		29.06		—		(555	)		—	Manufacture of electronic parts		Korea
So-Myung Recycling Co., Ltd. 4		20.23		—		246			—	Manufacture of nonferrous metal		Korea
IDTECK Co., Ltd. 4		20.54		—		42			—	Other manufacturing of wireless telecommunications equipment		Korea
PIP System Co., Ltd. 4		20.72		—		27			—	Print equipment		Korea

103

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.1 Details of investments in associates and subsidiaries as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won) (In thousands of US dollars) (In hundred millions of Indonesian rupiah)	December 31, 2022
	Ownership (%)		Acquisition cost		Share of net asset amount			Carrying amount		Industry	Location
Gwang Myung Paper Co., Ltd. 4		20.54		—		84			—	Wholesale of luggage and other protective cases		Korea
D-Partner Co., Ltd. 4		20.94		—		832			—	Backlight film		Korea
Inter Shipping Co., Ltd. 4		42.09		—		(1,038	)		—	Sea freight water transport		Korea
Chunsung-meat Co., Ltd. 4		26.74		—		246			—	Wholesale of meat		Korea
DS Fashionbiz Co., Ltd. 4		47.64		—		(1	)		—	Manufacture of textiles		Korea
ALTSCS Co., Ltd. 4		47.11		—		408			—	Manufacture of motor vehicle parts		Korea
E-Won Chemical Co., Ltd. 4		24.30		—		35			—	Manufacture, wholesale and retail trade of feeds		Korea
TMAPMOBILITY CO.,LTD. 1		8.25		200,000		61,518			200,000	Application software development and supply		Korea
TKDS CO., LTD 4		20.03		—		171			—	Manufacture of video and other imaging equipment		Korea
SANDLE FARMING ASSOCIATION 4		23.04		—		306			—	Manufacture of edible refined oil and processed oil		Korea
				511,984		379,534			510,253
Subsidiaries
Kookmin Bank Cambodia PLC. 5, 6		100.00		USD 76,259		140,477			86,761	Banking and foreign exchange transaction		Cambodia
Kookmin Bank(China) Ltd. 5		100.00		USD 383,875		501,506			418,155	Banking and foreign exchange transaction		China
KB Microfinance Myanmar Co.,Ltd 5		100.00		USD 20,000		10,636			22,405	Micro financing		Myanmar
KB Bank Myanmar Co., Ltd. 5		100.00		USD 200,000		248,823			221,780	Banking and foreign exchange transaction		Myanmar
PRASAC Microfinance Institution PLC. 5, 6		99.99		USD 920,839		1,083,421			1,112,609	Micro financing		Cambodia
PT Bank KB Bukopin Tbk. 5		67.00		IDR 88,228		(86,104	)		375,332	Banking and foreign exchange transaction		Indonesia
Orient Kwang-yang Co., Ltd.		36.16		—		(5,930	)		—	Building of ships		Korea
						1,892,829			2,237,042
						2,272,363			2,747,295

¹ As of December 31, 2023 and 2022, the Bank can exercise significant influence on the decision-making processes of the associate’s financial and business policies through participation in governing bodies.

²  As of December 31, 2023, the Bank has fully redeemed its investment stake, but retains rights over the remaining stake due to incomplete liquidation.

³  As of December 31, 2023 and 2022, the Bank participates in the investment management committee but cannot exercise control.

⁴ The investment in associates was reclassified from financial assets at fair value through other comprehensive income due to termination of rehabilitation procedures.

⁵  Acquisition costs of investments in foreign subsidiaries are presented in US dollars and IDR.

⁶ PRASAC Microfinance Institution PLC. Merged Kookmin Bank Cambodia PLC. On September 1, 2023, and the official name of PRASAC Microfinance Institution PLC.(merging entity) has changed to KB PRASAC BANK PLC.

104

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

Although the Bank holds 20% or more of the ownership in several investment trusts including KB Hanbando BTL Private Special Asset Fund No.1, those investment trusts are excluded from associates because the Bank’s influence on those trusts is limited according to the trust agreement. In addition, the Bank holds 20% or more of its ownership in KLB Securities Co., Ltd. and three other companies, but those companies are excluded from associates, because the Bank’s influence on those companies is limited due to the status of those companies such as bankruptcy and rehabilitation proceedings.

105

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.2 Changes in carrying amount of investments in associates and subsidiaries for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Impairment			Ending
Associates
Korea Credit Bureau Co., Ltd.		2,769		—		—			—			2,769
Incheon Bridge Co., Ltd.		9,159		—		—			—			9,159
KB SPROTT Renewable Private Equity Fund No.1		14,361		—		(475	)		—			13,886
KB Digital Innovation & Growth New Technology Business Investment Fund		4,500		—		—			—			4,500
KB Digital Platform Fund		26,600		23,800		—			—			50,400
KB Prime Digital Platform Fund		2,600		4,550		—			—			7,150
Future Planning KB Start-up Creation Fund		2,200		—		(700	)		—			1,500
KB High-tech Company Investment Fund		1,500		—		—			—			1,500
Aju Good Technology Venture Fund		8,144		—		(7,800	)		—			344
KB-KDBC Pre-IPO New Technology Business Investment Fund		1,800		—		—			—			1,800
KB-TS Technology Venture Private Equity Fund		5,220		—		(360	)		—			4,860
KB Intellectual Property Fund No.2		15,000		—		—			—			15,000
KB Digital Innovation Investment Fund Limited Partnership		35,000		—		(2,345	)		—			32,655
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		6,600		—		(6,600	)		—			—
KB Global Platform Fund		43,850		—		—			—			43,850
KB Global Platform Fund No.2		—		12,000		—			—			12,000
KB-UTC Inno-Tech Venture Fund		14,250		—		(1,500	)		—			12,750
WJ Private Equity Fund No.1		10,000		—		—			—			10,000
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		10,000		—		(300	)		—			9,700
KB Smart Scale Up Fund		43,000		7,000		—			—			50,000
KB Scale Up Fund II		4,500		—		(4,500	)		—			—
KB Bio Global Expansion Private Equity Fund No.1		10,000		—		—			—			10,000
KB-KTB Technology Venture Fund		9,000		3,000		—			(529	)		11,471
KB-SOLIDUS Healthcare Investment Fund		6,600		7,700		—			(769	)		13,531
KB New Deal Innovation Fund		13,600		6,400		—			(1,107	)		18,893
KB MEZZANINE CAPITAL 4TH PRIVATE EQUITY FUND		—		29,176		(29,176	)		—			—

106

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.2 Changes in carrying amount of investments in associates and subsidiaries for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2023
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Impairment			Ending
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		—		27,034		—			—			27,034
All Together Korea Fund No.2		10,000		—		—			—			10,000
TMAPMOBILITY CO.,LTD.		200,000		—		—			—			200,000
Subsidiaries
Kookmin Bank Cambodia Plc. *		86,761		—		(86,761	)		—			—
Kookmin Bank (China) Ltd.		418,155		—		—			—			418,155
KB Microfinance Myanmar Co., Ltd.		22,405		—		—			—			22,405
KB Bank Myanmar Co., Ltd.		221,780		—		—			—			221,780
KB PRASAC BANK PLC. *		1,112,609		86,761		—			—			1,199,370
PT Bank KB Bukopin Tbk		375,332		773,122		—			(308,068	)		840,386
Orient Kwang-yang Co., Ltd.		—		—		—			—			—
		2,747,295		980,543		(140,517	)		(310,473	)		3,276,848

	2022
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Impairment		Ending
Associates
Korea Credit Bureau Co., Ltd.		2,769		—		—			—		2,769
Balhae Infrastructure Company		109,584		—		(109,584	)		—		—
Incheon Bridge Co., Ltd.		9,159		—		—			—		9,159
KB SPROTT Renewable Private Equity Fund No.1		4,613		9,748		—			—		14,361
KB Digital Innovation & Growth New Technology Business Investment Fund		4,500		—		—			—		4,500
KB Digital Platform Fund		12,600		14,000		—			—		26,600
KB Prime Digital Platform Fund		—		2,600		—			—		2,600
Future Planning KB Start-up Creation Fund		3,900		—		(1,700	)		—		2,200
KB High-tech Company Investment Fund		1,500		—		—			—		1,500
Aju Good Technology Venture Fund		12,344		—		(4,200	)		—		8,144
KB-KDBC Pre-IPO New Technology Business Investment Fund		4,400		—		(2,600	)		—		1,800
KB-TS Technology Venture Private Equity Fund		7,650		—		(2,430	)		—		5,220
KB Intellectual Property Fund No.2		15,000		—		—			—		15,000
KB Digital Innovation Investment Fund Limited Partnership		35,000		—		—			—		35,000

107

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

13.2 Changes in carrying amount of investments in associates and subsidiaries for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning		Acquisition and others		Disposal and others			Impairment			Ending
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		13,000		—		(6,400	)		—			6,600
KB Global Platform Fund		42,000		8,000		(6,150	)		—			43,850
KB-UTC Inno-Tech Venture Fund		14,250		—		—			—			14,250
Associates
WJ Private Equity Fund No.1		10,000		—		—			—			10,000
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		10,000		—		—			—			10,000
KB Smart Scale Up Fund		31,000		12,000		—			—			43,000
KB Scale Up Fund II		—		4,500		—			—			4,500
KB Bio Global Expansion Private Equity Fund No.1		10,000		—		—			—			10,000
KB-KTB Technology Venture Fund		3,000		6,000		—			—			9,000
KB-SOLIDUS Healthcare Investment Fund		600		6,000		—			—			6,600
KB New Deal Innovation Fund		4,000		9,600		—			—			13,600
All Together Korea Fund No.2		10,000		—		—			—			10,000
TMAPMOBILITY CO.,LTD.		—		200,000		—			—			200,000
Subsidiaries
Kookmin Bank Cambodia Plc.		86,761		—		—			—			86,761
Kookmin Bank (China) Ltd.		418,155		—		—			—			418,155
KB Microfinance Myanmar Co., Ltd.		22,405		—		—			—			22,405
KB Bank Myanmar Co., Ltd.		221,780		—		—			—			221,780
PRASAC Microfinance Institution PLC		1,112,609		—		—			—			1,112,609
PT Bank KB Bukopin Tbk		731,659		—		—			(356,327	)		375,332
Orient Kwang-yang Co., Ltd.		—		—		—			—			—
		2,964,238		272,448		(133,064	)		(356,327	)		2,747,295

* PRASAC Microfinance Institution PLC. merged Kookmin Bank Cambodia PLC. on September 1, 2023, and the official name of PRASAC Microfinance Institution PLC.(merging entity) has changed to KB PRASAC BANK PLC.

108

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

14. Property and Equipment, and Investment Properties

14.1 Property and Equipment

14.1.1 Details of property and equipment as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land		1,817,320		—			(4	)		1,817,316
Buildings		1,742,643		(583,235	)		(5,747	)		1,153,661
Leasehold improvements		928,472		(877,487	)		—			50,985
Equipment and vehicles		1,150,791		(1,055,045	)		—			95,746
Construction in-progress		12,889		—			—			12,889
Right-of-use assets		1,090,535		(769,433	)		—			321,102
		6,742,650		(3,285,200	)		(5,751	)		3,451,699

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment losses			Carrying amount
Land		1,827,827		—			(4	)		1,827,823
Buildings		1,723,871		(545,387	)		(5,747	)		1,172,737
Leasehold improvements		888,348		(837,677	)		—			50,671
Equipment and vehicles		1,215,431		(1,080,071	)		—			135,360
Construction in-progress		2,372		—			—			2,372
Right-of-use assets		991,148		(650,977	)		—			340,171
		6,648,997		(3,114,112	)		(5,751	)		3,529,134

109

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

14.1.2 Changes in property and equipment for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023
	Beginning		Acquisition		Transfer 2			Disposal			Depreciation			Others			Ending
Land		1,827,823		16		(10,510	)		—			—			(13	)		1,817,316
Buildings		1,172,737		348		22,781			(4	)		(42,182	)		(19	)		1,153,661
Leasehold improvements		50,671		114		39,921			—			(39,765	)		44			50,985
Equipment and vehicles		135,360		49,315		—			(460	)		(88,523	)		54			95,746
Construction in-progress		2,372		85,322		(74,779	)		—			—			(26	)		12,889
Right-of-use assets 1		340,171		595,047		318			(426,223	)		(196,562	)		8,351			321,102
		3,529,134		730,162		(22,269	)		(426,687	)		(367,032	)		8,391			3,451,699

(In millions of Korean won)	2022
	Beginning		Acquisition		Transfer 2			Disposal			Depreciation			Others			Ending
Land		1,866,826		55		(32,963	)		(6,072	)		—			(23	)		1,827,823
Buildings		1,166,915		1,421		49,755			(3,818	)		(41,496	)		(40	)		1,172,737
Leasehold improvements		59,827		1,672		33,605			(7	)		(44,504	)		78			50,671
Equipment and vehicles		146,095		83,939		(817	)		(380	)		(93,490	)		13			135,360
Construction in-progress		24,130		92,726		(114,484	)		—			—			—			2,372
Right-of-use assets 1		342,395		533,562		255			(382,399	)		(191,569	)		37,927			340,171
		3,606,188		713,375		(64,649	)		(392,676	)		(371,059	)		37,955			3,529,134

¹  Effect of change in the lease term is reflected in acquisition and disposal based on gross amount.

²  Includes transfers with investment properties and assets held for sale.

14.1.3 Changes in accumulated impairment losses of property and equipment for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Impairment		Reversal		Others		Ending
Accumulated impairment losses of property and equipment		(5,751	)		—		—		—		(5,751	)

	2022
(In millions of Korean won)	Beginning			Impairment		Reversal		Others		Ending
Accumulated impairment losses of property and equipment		(5,751	)		—		—		—		(5,751	)

110

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

14.2 Investment Properties

14.2.1 Details of investment properties as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated Depreciation			Carrying amount
Land		64,762		—			64,762
Buildings		73,435		(14,969	)		58,466
		138,197		(14,969	)		123,228

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated depreciation			Carrying amount
Land		63,139		—			63,139
Buildings		69,628		(13,444	)		56,184
		132,767		(13,444	)		119,323

14.2.2 Valuation techniques and inputs used to measure the fair value of investment properties as of December 31, 2023, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value		Valuation techniques		Inputs
Land and buildings		214,067		Cost approach method	- Price per square meter - Replacement cost

Fair value of investment properties amounts to W 214,067 million and W 194,157 million as of December 31, 2023 and 2022, respectively. Investment properties are measured by qualified independent appraisers with recent experience in valuing similar properties in the same area. In addition, all investment properties are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

Rental income from above investment properties amounts to W 6,408 million and W 5,441 million for the years ended December 31, 2023 and 2022, respectively.

14.2.3 Changes in investment properties for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Acquisition		Transfer		Depreciation			Ending
Land		63,139		—		1,622		—			64,761
Buildings		56,184		—		4,099		(1,816	)		58,467
		119,323		—		5,721		(1,816	)		123,228

	2022
(In millions of Korean won)	Beginning		Acquisition		Transfer		Depreciation			Ending
Land		55,190		—		7,949		—			63,139
Buildings		42,461		—		15,381		(1,658	)		56,184
		97,651		—		23,330		(1,658	)		119,323

111

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

15. Intangible Assets

15.1 Details of intangible assets as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Goodwill		65,288		—			—			65,288
Other intangible assets		1,724,020		(1,318,661	)		(15,385	)		389,974
		1,789,308		(1,318,661	)		(15,385	)		455,262

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Goodwill		65,288		—			—			65,288
Other intangible assets		1,589,447		(1,146,478	)		(14,978	)		427,991
		1,654,735		(1,146,478	)		(14,978	)		493,279

15.2 The goodwill as of December 31, 2023 and 2022, arose from the merger of Housing & Commercial Bank (“H&CB”).

15.3 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2023 are as follows:

	December 31, 2023
(In millions of Korean won)	Retail banking		Corporate Banking		Total
Carrying amounts		49,315		15,973		65,288
Recoverable amount exceeding carrying amount		5,470,481		13,290,555		19,031,036
Discount rate (%)		14.72		14.32
Permanent growth rate (%)		1.00		1.00

For impairment testing, goodwill is allocated to cash-generating units that are expected to benefit from the synergies of the business combination, and cash-generating units consist of an operating segment or units which are not larger than an operating segment. The Bank recognized goodwill amounting to W 65,288 million arising from the merger of Housing & Commercial Bank, and the amounts of W 49,315 million and W 15,973 million were allocated to the retail banking and corporate banking, respectively. Cash-generating units to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired by comparing the carrying amount of the unit including the goodwill with the recoverable amount of the unit.

112

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

The recoverable amount of a cash-generating unit is measured at the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal is the amount obtainable from the disposal in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. If it is difficult to measure the amount obtainable from the disposal of the cash-generating unit, the disposal amount of a similar cash-generating unit in the past transaction is used by reflecting the characteristics of the cash-generating unit to be measured. If it is not possible to obtain reliable information to measure the fair value less costs of disposal, the Bank uses the asset’s value in use as its recoverable amount. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The future cash flows of retail banking and corporate banking are estimated on the assumption that the future cash flows will increase by 1.0% per year. The key assumptions used for the estimation of the future cash flows are based on GDP growth rate, market size, and the Bank’s market share. The discount rate is a pre-tax rate that reflects assumptions regarding risk-free interest rate, market risk premium, and the risks specific to the cash-generating unit.

15.4 Details of intangible assets other than goodwill as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Industrial property rights		2,189		(1,822	)		—			367
Software		1,489,052		(1,192,521	)		—			296,531
Other intangible assets		197,651		(90,786	)		(15,385	)		91,480
Right-of-use assets		35,128		(33,532	)		—			1,596
		1,724,020		(1,318,661	)		(15,385	)		389,974

	December 31, 2022
(In millions of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Industrial property rights		1,993		(1,694	)		—			299
Software		1,387,570		(1,029,725	)		—			357,845
Other intangible assets		164,757		(82,535	)		(14,978	)		67,244
Right-of-use assets		35,127		(32,524	)		—			2,603
		1,589,447		(1,146,478	)		(14,978	)		427,991

113

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

15.5 Changes in intangible assets other than goodwill for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Acquisition		Transfer		Disposal		Amortization			Others			Ending
Industrial property rights		299		197		—		—		(129	)		—			367
Software		357,845		101,455		—		—		(162,791	)		22			296,531
Other intangible assets		67,244		62,652		—		—		(26,545	)		(11,871	)		91,480
Right-of-use assets		2,603		—		—		—		(1,007	)		—			1,596
		427,991		164,304		—		—		(190,472	)		(11,849	)		389,974

	2022
(In millions of Korean won)	Beginning		Acquisition		Transfer		Disposal			Amortization			Others			Ending
Industrial property rights		224		193		—		—			(117	)		(1	)		299
Software		325,658		168,256		817		—			(136,906	)		20			357,845
Other intangible assets		77,474		2,787		—		(245	)		(12,849	)		77			67,244
Right-of-use assets		3,610		—		—		—			(1,007	)		—			2,603
		406,966		171,236		817		(245	)		(150,879	)		96			427,991

15.6 Changes in accumulated impairment losses of other intangible assets for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Impairment			Reversal		Others		Ending
Accumulated impairment losses of other intangible assets		(14,978	)		(11,891	)		—		11,484		(15,385	)
	2022
(In millions of Korean won)	Beginning			Impairment			Reversal		Others		Ending
Accumulated impairment losses of other intangible assets		(15,145	)		—			—		167		(14,978	)

114

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

16. Deferred Income Tax Assets and Liabilities

16.1 Details of deferred income tax assets and liabilities as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Assets			Liabilities			Net amount
Other provisions		179,786			—			179,786
Impairment losses of property and equipment		7,295			—			7,295
Share-based payments		15,229			—			15,229
Provisions for acceptances and guarantees		48,917			—			48,917
Gains or losses on valuation of derivatives		—			(154,892	)		(154,892	)
Present value discount		370			—			370
Gains or losses on fair value hedge		—			(57,146	)		(57,146	)
Accrued interest		—			(102,407	)		(102,407	)
Deferred loan origination fees and costs		—			(113,810	)		(113,810	)
Gains or losses on revaluation *		—			(259,839	)		(259,839	)
Investments in subsidiaries and others		4,804			—			4,804
Gains or losses on valuation of security investment		—			(253,504	)		(253,504	)
Defined benefit liabilities		405,527			—			405,527
Accrued expenses		200,276			—			200,276
Retirement insurance expense		—			(461,169	)		(461,169	)
Adjustments to the prepaid contributions		—			(33,005	)		(33,005	)
Others		255,454			(92,297	)		163,157
		1,117,658			(1,528,069	)		(410,411	)
Offsetting of deferred income tax assets and liabilities		(1,117,658	)		1,117,658			—
		—			(410,411	)		(410,411	)

	December 31, 2022
(In millions of Korean won)	Assets			Liabilities			Net amount
Other provisions		83,333			—			83,333
Impairment losses of property and equipment		5,155			—			5,155
Share-based payments		13,112			—			13,112
Provisions for acceptances and guarantees		39,787			—			39,787
Gains or losses on valuation of derivatives		—			(155,184	)		(155,184	)
Present value discount		95			—			95
Gains or losses on fair value hedge		—			(93,833	)		(93,833	)
Accrued interest		—			(72,868	)		(72,868	)
Deferred loan origination fees and costs		—			(115,553	)		(115,553	)
Gains or losses on revaluation *		—			(261,502	)		(261,502	)
Investments in subsidiaries and others		17,121			—			17,121
Gains or losses on valuation of security investment		245,988			—			245,988
Defined benefit liabilities		375,797			—			375,797
Accrued expenses		172,345			—			172,345
Retirement insurance expense		—			(459,323	)		(459,323	)
Adjustments to the prepaid contributions		—			(27,986	)		(27,986	)
Others		225,017			(96,937	)		128,080
		1,177,750			(1,283,186	)		(105,436	)
Offsetting of deferred income tax assets and liabilities		(1,177,750	)		1,177,750			—
		—			(105,436	)		(105,436	)

* Gains on Land revalution

115

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

16.2 Unrecognized Deferred Income Tax Assets

16.2.1 No deferred income tax assets have been recognized for the deductible temporary differences of W 1,113,869 million and W 635,093 million associated with investments in subsidiaries and others as of December 31, 2023 and 2022, because it is not probable that these temporary differences will reverse in the foreseeable future.

16.2.2 No deferred income tax assets have been recognized for the deductible temporary differences of W 42,288 million and W 34,908 million associated with others as of December 31, 2023 and 2022, due to the uncertainty that these temporary differences will be realized in the future.

16.3 Unrecognized Deferred Income Tax Liabilities

No deferred income tax liabilities have been recognized as of December 31, 2023 and 2022 for the taxable temporary differences of W 65,288 million related to the initial recognition of goodwill arising from the merger of Housing and Commercial Bank in 2001.

116

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

16.4 Changes in cumulative temporary differences for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions		314,465			314,465			681,009			681,009
Impairment losses of property and equipment		19,452			19,383			27,564			27,633
Share-based payments		49,479			49,479			57,685			57,685
Provisions for acceptances and guarantees		150,140			150,140			185,290			185,290
Present value discount		358			358			1,401			1,401
Investments in subsidiaries and others		699,701			—			432,364			1,132,065
Gains or losses on valuation of security investment		928,258			928,258			—			—
Defined benefit liabilities		1,418,104			171,669			289,654			1,536,089
Accrued expenses		650,357			650,357			758,620			758,620
Others		884,026			410,956			536,848			1,009,918
		5,114,340			2,695,065			2,970,435			5,389,710
Unrecognized deferred income tax assets
Investments in subsidiaries and others		635,093									1,113,869
Others		34,908									42,288
		4,444,339									4,233,553
Tax rate (%)		26.50									26.40
Total deferred income tax assets		1,177,750									1,117,658
Taxable temporary differences
Gains or losses on fair value hedge		(354,085	)		(354,085	)		(216,460	)		(216,460	)
Accrued interest		(274,975	)		(216,794	)		(329,724	)		(387,905	)
Deferred loan origination fees and costs		(436,047	)		(436,047	)		(431,098	)		(431,098	)
Gains or losses on valuation of derivatives		(585,598	)		(585,598	)		(586,712	)		(586,712	)
Goodwill arising from the merger		(65,288	)		—			—			(65,288	)
Gains or losses on revaluation *		(986,799	)		(2,561	)		—			(984,238	)
Retirement insurance expense		(1,733,295	)		(174,146	)		(187,703	)		(1,746,852	)
Adjustments to the prepaid contributions		(105,608	)		(105,608	)		(125,019	)		(125,019	)
Gains or losses on valuation of security investment		—			—			(960,241	)		(960,241	)
Others		(365,805	)		(309,968	)		(293,774	)		(349,611	)
		(4,907,500	)		(2,184,807	)		(3,130,731	)		(5,853,424	)
Unrecognized deferred income tax liabilities
Goodwill arising from the merger		(65,288	)								(65,288	)
		(4,842,212	)								(5,788,136	)
Tax rate (%)		26.50									26.40
Total deferred income tax liabilities		(1,283,186	)								(1,528,069	)

117

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

16.4 Changes in cumulative temporary differences for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions		276,213			276,213			314,465			314,465
Impairment losses of property and equipment		27,077			19,880			12,255			19,452
Share-based payments		57,042			57,042			49,479			49,479
Provisions for acceptances and guarantees		120,332			120,332			150,140			150,140
Present value discount		—			—			358			358
Investments in subsidiaries and others		197,142			—			502,559			699,701
Gains or losses on valuation of security investment		—			—			928,258			928,258
Defined benefit liabilities		1,706,586			288,674			192			1,418,104
Accrued expenses		540,823			540,823			650,357			650,357
Others		878,679			392,448			397,795			884,026
		3,803,894			1,695,412			3,005,858			5,114,340
Unrecognized deferred income tax assets
Investments in subsidiaries and others		152,345									635,093
Others		39,822									34,908
		3,611,727									4,444,339
Tax rate (%)		27.50									26.50
Total deferred income tax assets		993,225									1,177,750
Taxable temporary differences
Gains or losses on fair value hedge		(53,243	)		(53,243	)		(354,085	)		(354,085	)
Accrued interest		(155,936	)		(119,589	)		(238,628	)		(274,975	)
Deferred loan origination fees and costs		(503,266	)		(503,266	)		(436,047	)		(436,047	)
Gains or losses on valuation of derivatives		(296,525	)		(296,525	)		(585,598	)		(585,598	)
Present value discount		(517	)		(517	)		—			—
Goodwill arising from the merger		(65,288	)		—			—			(65,288	)
Gains or losses on revaluation *		(1,008,984	)		(22,185	)		—			(986,799	)
Retirement insurance expense		(1,605,938	)		(237,587	)		(364,944	)		(1,733,295	)
Adjustments to the prepaid contributions		(106,446	)		(106,446	)		(105,608	)		(105,608	)
Gains or losses on valuation of security investment		(1,823,307	)		(1,823,307	)		—			—
Others		(385,137	)		(329,375	)		(310,043	)		(365,805	)
		(6,004,587	)		(3,492,040	)		(2,394,953	)		(4,907,500	)
Unrecognized deferred income tax liabilities
Goodwill arising from the merger		(65,288	)								(65,288	)
		(5,939,299	)								(4,842,212	)
Tax rate (%)		27.50									26.50
Total deferred income tax liabilities		(1,633,307	)								(1,283,186	)

* Gains on Land revalution

118

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

17. Assets Held for Sale

17.1 Details of assets held for sale as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Acquisition cost *		Accumulated impairment losses			Carrying amount		Fair value less costs to sell
Land held for sale		22,488		(1,642	)		20,846		32,238
Buildings held for sale		19,840		(8,279	)		11,561		12,793
		42,328		(9,921	)		32,407		45,031

	December 31, 2022
(In millions of Korean won)	Acquisition cost *		Accumulated impairment losses			Carrying amount		Fair value less costs to sell
Land held for sale		20,020		(659	)		19,361		31,144
Buildings held for sale		17,456		(5,846	)		11,610		12,637
		37,476		(6,505	)		30,971		43,781

* Acquisition cost of buildings held for sale is net of the accumulated depreciation amount immediately before the initial classification of the assets as held for sale.

17.2 Valuation techniques and inputs used to measure the fair value of assets held for sale as of December 31, 2023, are as follows:

	December 31, 2023
(In millions of Korean won)	Fair value		Valuation techniques 1	Unobservable inputs 2	Estimated range of unobservable inputs (%)	Effect of unobservable inputs to fair value
Land and buildings		45,031	Market comparison approach model and others	Adjustment index	0.54 ~ 2.18	Fair value increases as the adjustment index rises

¹ The appraisal value is adjusted by the adjustment ratio in the event the public sale is unsuccessful.

² Adjustment index is calculated using the time factor correction or individual factors.

Among assets held for sale, real estate was measured by independent appraisers with professional qualifications and recent experience in evaluating similar properties in the area of the property to be assessed. All assets held for sale are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

119

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

17.3 Changes in accumulated impairment losses of assets held for sale for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Provision			Reversal		Others		Ending
Accumulated impairment losses of assets held for sale		(6,505	)		(5,619	)		—		2,203		(9,921	)

	2022
(In millions of Korean won)	Beginning			Provision			Reversal		Others		Ending
Accumulated impairment losses of assets held for sale		(12,498	)		(5,752	)		—		11,745		(6,505	)

17.4 As of December 31, 2023, assets held for sale consist of 22 real estates of closed offices, which were determined to sell by management, but not yet sold as of December 31, 2023. Negotiation with buyers is in process for the one asset and the remaining 22 assets are also being actively marketed.

120

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

18. Other Assets

18.1 Details of other assets as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Other financial assets
Other receivables		7,221,199			3,442,060
Accrued income		1,771,422			1,462,182
Guarantee deposits		786,646			819,181
Domestic exchange settlement debits		804,570			861,742
Others		36,478			33,899
Less: Allowances for credit losses		(18,160	)		(11,790	)
Present value discount		(4,844	)		(5,361	)
		10,597,311			6,601,913
Other non-financial assets
Other receivables		526			94
Prepaid expenses		218,869			207,355
Guarantee deposits		1,957			1,908
Prepayments		25,077			21,456
Others		40,302			43,213
Less: Allowances for credit losses		(5,164	)		(10,926	)
		281,567			263,100
		10,878,878			6,865,013

18.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Other financial assets			Other non- financial assets			Total
Beginning		11,790			10,926			22,716
Provision (reversal)		10,905			149			11,054
Write-offs		(5,095	)		(5,911	)		(11,006	)
Others		560			—			560
Ending		18,160			5,164			23,324

(In millions of Korean won)	2022
	Other financial assets			Other non- financial assets			Total
Beginning		9,627			8,546			18,173
Provision (reversal)		2,875			2,450			5,325
Write-offs		(1,801	)		(70	)		(1,871	)
Others		1,089			—			1,089
Ending		11,790			10,926			22,716

121

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

19. Deposits

Details of deposits as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Demand deposits
Demand deposits in Korean won		146,454,720			147,981,433
Demand deposits in foreign currencies		9,071,746			10,780,079
		155,526,466			158,761,512
Time deposits
Time deposits in Korean won		195,820,815			187,999,054
Fair value adjustments of fair value hedged time deposits in Korean won		(15	)		—
Time deposits in foreign currencies		16,780,713			15,023,134
Fair value adjustments of fair value hedged time deposits in foreign currencies		(6,667	)		(8,592	)
		212,594,846			203,013,596
Certificates of deposits		12,145,510			6,325,876
		380,266,822			368,100,984

20. Borrowings

20.1 Details of borrowings as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
General borrowings		24,812,727		35,556,621
Bonds sold under repurchase agreements and others		6,461,177		4,820,795
Call money		1,749,242		3,287,254
		33,023,146		43,664,670

122

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

20.2 Details of general borrowings as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Lenders	Annual interest rate (%)	December 31, 2023		December 31, 2022
Borrowings in Korean won	Borrowings from the Bank of Korea	Bank of Korea	2.00		2,520,472		8,282,289
	Borrowings from the government	SEMAS and others	0.00~3.41		2,500,160		2,670,867
	Borrowings from non-banking financial institutions	Korea Development Bank	1.68~2.93		503,503		477,788
	Other borrowings	Korea Development Bank and others	0.00~5.23		4,147,773		5,229,890
					9,671,908		16,660,834
Borrowings in foreign currencies	Due to banks	Woori Bank and others	—		38,194		18,270
	Borrowings from banks	Citicorp International Ltd and others	0.13~6.33		11,969,467		13,262,415
	Borrowings from other financial institutions	Export-Import Bank of Korea and others	5.89~6.07		24,662		38,249
	Other borrowings	DBS BANK and others	0.00~5.85		3,108,496		5,576,853
					15,140,819		18,895,787
					24,812,727		35,556,621

20.3 Details of bonds sold under repurchase agreements and others as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Lenders	Annual interest rate (%)		December 31, 2023		December 31, 2022
Bonds sold under repurchase agreements	Individuals, groups, and corporations		0.28~9.75		6,454,540		4,816,995
Bills sold	Counter sale		1.80~2.20		6,637		3,800
					6,461,177		4,820,795

20.4 Details of call money as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Lenders	Annual interest rate (%)		December 31, 2023		December 31, 2022
Call money in Korean won	Samsung Asset Management		3.30		300,000		2,113,500
Call money in foreign currencies	CENTRAL BANK UZBEKISTAN and others		0.15~5.93		1,449,242		1,173,754
					1,749,242		3,287,254

123

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

21. Debentures

21.1 Details of debentures as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Annual interest rate (%)		December 31, 2023			December 31, 2022
Debentures in Korean won
Structured debentures		4.25~8.62		110,640			30,710
Subordinated fixed rate debentures		2.02~7.86		3,188,970			4,089,890
Fixed rate debentures		1.31~13.70		12,280,003			10,730,003
Floating rate debentures		3.51~4.21		4,330,000			4,100,000
				19,909,613			18,950,603
Fair value adjustments of fair value hedged debentures in Korean won				(141,073	)		(249,629	)
Less: Discount on debentures in Korean won				(8,686	)		(7,371	)
				19,759,854			18,693,603
Debentures in foreign currencies
Floating rate debentures		3.94~5.63		1,372,460			1,312,913
Fixed rate debentures		0.05~6.81		9,022,425			8,120,304
				10,394,885			9,433,217
Fair value adjustments of fair value hedged debentures in foreign currencies				(68,705	)		(95,864	)
Less: Discount on debentures in foreign currencies				(27,801	)		(31,540	)
				10,298,379			9,305,813
				30,058,233			27,999,416

21.2 Changes in debentures based on par value for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning		Issue		Repayment			Others		Ending
Debentures in Korean won
Structured debentures		30,710		90,000		(10,070	)		—		110,640
Subordinated fixed rate debentures		4,089,890		—		(900,920	)		—		3,188,970
Fixed rate debentures		10,730,003		11,180,000		(9,630,000	)		—		12,280,003
Floating rate debentures		4,100,000		4,330,000		(4,100,000	)		—		4,330,000
		18,950,603		15,600,000		(14,640,990	)		—		19,909,613
Debentures in foreign currencies
Floating rate debentures		1,312,913		1,012,144		(1,000,513	)		47,916		1,372,460
Fixed rate debentures		8,120,304		2,888,614		(2,197,508	)		211,015		9,022,425
		9,433,217		3,900,758		(3,198,021	)		258,931		10,394,885
		28,383,820		19,500,758		(17,839,011	)		258,931		30,304,498

124

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

21.2 Changes in debentures based on par value for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Beginning		Issue		Repayment			Others		Ending
Debentures in Korean won
Structured debentures		30,910		—		(200	)		—		30,710
Subordinated fixed rate debentures		5,292,957		—		(1,203,067	)		—		4,089,890
Fixed rate debentures		8,800,013		7,070,000		(5,140,010	)		—		10,730,003
Floating rate debentures		5,310,000		4,960,000		(6,170,000	)		—		4,100,000
		19,433,880		12,030,000		(12,513,277	)		—		18,950,603
Debentures in foreign currencies
Floating rate debentures		1,948,962		755,815		(1,597,630	)		205,766		1,312,913
Fixed rate debentures		5,596,228		3,354,673		(1,079,221	)		248,624		8,120,304
		7,545,190		4,110,488		(2,676,851	)		454,390		9,433,217
		26,979,070		16,140,488		(15,190,128	)		454,390		28,383,820

22. Provisions

22.1 Details of provisions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Provisions for credit losses of unused loan commitments		200,706		159,211
Provisions for credit losses of acceptances and guarantees		185,290		150,140
Provisions for restoration costs		130,966		135,477
Others		374,229		49,410
		891,191		494,238

125

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

22.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2023 and 2022, are as follows:

	2023
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
(In millions of Korean won)				Non- impaired			Impaired						Non- impaired			Impaired
Beginning		101,828			57,383			—			23,517			118,724			7,899
Transfer between stages:
Transfer to 12-month expected credit losses		13,921			(13,885	)		(36	)		421			(421	)		—
Transfer to lifetime expected credit losses		(13,494	)		13,626			(132	)		(356	)		457			(101	)
Impairment		(107	)		(664	)		771			—			(113	)		113
Provision (reversal) for credit losses		25,276			16,373			(603	)		8,962			28,401			(3,547	)
Others (exchange differences, etc.)		112			337			—			141			1,149			44
Ending *		127,536			73,170			—			32,685			148,197			4,408

	2022
	Provisions for credit losses of unused loan commitments									Provisions for credit losses of acceptances and guarantees
	12-month expected credit losses			Lifetime expected credit losses						12-month expected credit losses			Lifetime expected credit losses
(In millions of Korean won)				Non- impaired			Impaired						Non- impaired			Impaired
Beginning		92,372			53,550			—			26,626			82,169			11,537
Transfer between stages:
Transfer to 12-month expected credit losses		22,750			(22,720	)		(30	)		1,144			(1,144	)		—
Transfer to lifetime expected credit losses		(15,235	)		15,327			(92	)		(345	)		1,006			(661	)
Impairment		(126	)		(460	)		586			(9	)		(142	)		151
Provision (reversal) for credit losses		1,614			10,837			(464	)		(4,527	)		33,994			(3,262	)
Others (exchange differences, etc.)		453			849			—			628			2,841			134
Ending		101,828			57,383			—			23,517			118,724			7,899

* Includes additional provisions of W 21,456 million for the borrowers which are highly affected by the termination of COVID-19 financial support as of December 31, 2023.

126

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

22.3 Changes in provisions for restoration costs for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Beginning		135,477			128,407
Provision		3,772			6,336
Reversal		(2,167	)		1,261
Used		(12,319	)		(12,411	)
Unwinding of discount		5,742			2,363
Effect of changes in discount rate		461			9,521
Ending		130,966			135,477

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

22.4 Changes in other provisions for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Membership rewards program			Dormant accounts			Litigations			Financial guarantee contracts		Others *			Total
Beginning		46			2,794			7,641			3,253		35,676			49,410
Provision		64			4,687			8,966			6,408		325,821			345,946
Used and others		(63	)		(4,121	)		(8,017	)		—		(8,926	)		(21,127	)
Ending		47			3,360			8,590			9,661		352,571			374,229

	2022
(In millions of Korean won)	Membership rewards program			Dormant accounts			Litigations			Financial guarantee contracts			Others			Total
Beginning		43			3,062			7,626			5,365			11,035			27,131
Provision (reversal)		84			2,666			19			(2,112	)		26,578			27,235
Used and others		(81	)		(2,934	)		(4	)		—			(1,937	)		(4,956	)
Ending		46			2,794			7,641			3,253			35,676			49,410

* Includes other provisions of W 333,290 million related to the Livelihood finance support program as of December 31, 2023.

127

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

23. Net Defined Benefit Liabilities (Assets)

23.1 Defined Benefit Plan

The Bank operates defined benefit plans which have the following characteristics:

- The Bank has the obligation to pay the agreed benefits to all its current and former employees.

- The Bank assumes actuarial risk (that benefits will cost more than expected) and investment risk.

The net defined benefit liabilities (assets) recognized in the statements of financial position are calculated in accordance with an actuarial valuation method using assumptions based on market data and historical data such as discount rate, future salary increase rate, and mortality. Actuarial assumptions may differ from actual results due to changes in the market conditions, economic trends, and mortality trends.

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities(assets)
Beginning		1,534,828			(1,842,126	)		(307,298	)
Current service cost		125,912			—			125,912
Interest expense (income)		75,408			(91,587	)		(16,179	)
Remeasurements:
Actuarial gains and losses by experience adjustments		7,371			—			7,371
Actuarial gains and losses by changes in demographic assumptions		(525	)		—			(525	)
Actuarial gains and losses by changes in financial assumptions		82,889			—			82,889
Return on plan assets (excluding amounts included in interest income)		—			(21,146	)		(21,146	)
Contributions by the Bank		—			(92,000	)		(92,000	)
Payments from plans (benefit payments)		(171,669	)		171,669			—
Payments from the Bank		(7,612	)		—			(7,612	)
Transfer in		5,143			(4,506	)		637
Transfer out		(5,066	)		5,066			—
Effect of exchange differences		(16	)		—			(16	)
Others		—			(163	)		(163	)
Ending		1,646,663			(1,874,793	)		(228,130	)

128

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

23.2 Changes in net defined benefit liabilities (assets) for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities(assets)
Beginning		1,831,126			(1,692,621	)		138,505
Current service cost		163,208			—			163,208
Interest expense (income)		46,853			(43,392	)		3,461
Remeasurements:
Actuarial gains and losses by experience adjustments		9,041			—			9,041
Actuarial gains and losses by changes in demographic assumptions		41,988			—			41,988
Actuarial gains and losses by changes in financial assumptions		(351,203	)		—			(351,203	)
Return on plan assets (excluding amounts included in interest income)		—			54,808			54,808
Contributions by the Bank		—			(360,000	)		(360,000	)
Payments from plans (benefit payments)		(196,543	)		196,543			—
Payments from the Bank		(7,724	)		—			(7,724	)
Transfer in		5,150			(4,516	)		634
Transfer out		(7,052	)		7,052			—
Effect of exchange differences		(16	)		—			(16	)
Ending		1,534,828			(1,842,126	)		(307,298	)

23.3 Details of net defined benefit liabilities (assets) as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Present value of defined benefit obligation		1,646,663			1,534,828
Fair value of plan assets		(1,874,793	)		(1,842,126	)
Net defined benefit liabilities (assets)		(228,130	)		(307,298	)

23.4 Details of remeasurements of net defined benefit liabilities (asset) recognized in other comprehensive income (loss) for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Remeasurements:
Actuarial losses arising from experience adjustments		(7,371	)		(9,041	)
Actuarial losses arising from changes in demographic assumptions		525			(41,988	)
Actuarial losses arising from changes in financial assumptions		(82,889	)		351,203
Return on plan assets (excluding amounts included in interest income)		21,146			(54,808	)
Income tax effect		18,108			(67,476	)
Remeasurements after income tax expense		(50,481	)		177,890

129

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

23.5 Details of fair value of plan assets as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Assets quoted in an active market		Assets not quoted in an active market		Total
Time deposits		—		1,261,011		1,261,011
Others		—		613,782		613,782
		—		1,874,793		1,874,793

	December 31, 2022
(In millions of Korean won)	Assets quoted in an active market		Assets not quoted in an active market		Total
Time deposits		—		1,388,054		1,388,054
Others		—		454,072		454,072
		—		1,842,126		1,842,126

23.6 Details of significant actuarial assumptions used as of December 31, 2023 and 2022, are as follows:

	December 31, 2023	December 31, 2022
Discount rate (%)	4.20	5.20
Salary increase rate (%)	0.00~5.04	0.00~5.25
Turnover rate (%)	1.68~38.60	2.30~38.60

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2023.

23.7 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2023, are as follows:

		Effect on defined benefit obligation
	Changes in assumptions	Increase in assumptions	Decrease in assumptions
Discount rate	0.5%p	3.18% decrease	3.38% increase
Salary increase rate	0.5%p	3.34% increase	3.17% decrease
Turnover rate	0.5%p	0.07% increase	0.08% decrease

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the statement of financial position.

130

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

23.8 Expected maturity analysis of undiscounted pension benefit payments as of December 31, 2023, are as follows:

(In millions of Korean won)	Up to 1 year		1~2 years		2~5 years		5~10 years		Over 10 years		Total
Pension benefits		164,829		218,654		619,818		860,680		2,476,462		4,340,443

The weighted average duration of the defined benefit obligation is 6.87 and 7.34 years as of December 31, 2023 and 2022, respectively.

23.9 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2023, is W 92,000 million.

24. Other Liabilities

Details of other liabilities as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Other financial liabilities
Other payables		7,477,079		3,615,980
Prepaid card and debit card payables		3,367		1,840
Accrued expenses		4,469,628		2,915,891
Financial guarantee contracts liabilities		62,353		78,732
Deposits for letter of guarantees and others		523,597		1,099,789
Domestic exchange settlement credits		2,859,746		1,734,905
Foreign exchange settlement credits		215,410		248,826
Borrowings from other accounting businesses		2,793		—
Due to trust accounts		8,711,276		6,327,070
Liabilities incurred from agency relationships		514,642		513,621
Account for agency business		249,379		241,910
Lease liabilities		316,901		328,707
Others		84,111		51,054
		25,490,282		17,158,325
Other non-financial liabilities
Other payables		497,937		1,053,097
Unearned revenue		97,860		94,424
Accrued expenses		451,613		528,850
Withholding taxes		227,546		133,917
Others		44,067		46,566
		1,319,023		1,856,854
		26,809,305		19,015,179

131

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

25. Equity

25.1 Capital Stock

Details of capital stock as of December 31, 2023 and 2022, are as follows:

	Ordinary shares
(In millions of Korean won and in number of shares)	December 31, 2023		December 31, 2022
Type of share		Ordinary share		Ordinary share
Number of authorized shares		1,000,000,000		1,000,000,000
Par value per share (In Korean won)		5,000		5,000
Number of issued shares		404,379,116		404,379,116
Capital stock		2,021,896		2,021,896

25.2 Hybrid Security

Details of hybrid security classified as equity as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Issuance date *		Maturity		Interest rate (%)		December 31, 2023		December 31, 2022
Amortized Conditional		July 2, 2019				4.35		574,523		574,523
Capital Securities		June 23, 2022		Permanent		4.89		299,327		299,327
		February 27, 2023				4.67		409,085		—
								1,282,935		873,850

* Above hybrid securities are early redeemable by the Bank after 5 years from the issuance date and each interest payment date thereafter.

25.3 Capital Surplus

Details of capital surplus as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Paid-in capital in excess of par value		4,604,417		4,604,417
Gains on business combination		397,669		397,669
Revaluation reserve		177,229		177,229
Other capital surplus		40,716		40,716
		5,220,031		5,220,031

132

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

25.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Remeasurements of net defined benefit liabilities		(165,605	)		(115,124	)
Currency translation differences		255			3,132
Losses on debt securities measured at fair value through other comprehensive income		45,261			(649,850	)
Gains on equity securities measured at fair value through other comprehensive income		641,179			641,536
Losses on cash flow hedging instruments		21,017			33,921
		542,107			(86,385	)

25.5 Retained Earnings

25.5.1 Details of retained earnings as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Legal reserves		2,046,228		2,043,654
Regulatory reserve for credit losses		2,785,965		2,715,060
Voluntary reserves		19,345,526		17,648,780
Unappropriated retained earnings		2,970,548		3,116,895
		27,148,267		25,524,389

With respect to the allocation of net profit earned in a fiscal term, the Bank must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 40 of the Banking Act. This reserve is not available for the payment of cash dividends, but may be transferred to capital stock, or used to reduce accumulated deficit. The Bank is reserving other reserves (legal reserves) in accordance with local laws and regulations of overseas branches.

133

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

25.5.2 Statement of appropriation of retained earnings (draft)

(Expected date of appropriation for 2023: March 21, 2024)

(Date of appropriation for 2022: March 23, 2023)

(In millions of Korean won)	2023			2022
Unappropriated retained earnings
Unappropriated retained earnings carried over from prior years		87			53
Interim dividend		—			—
Dividends on hybrid securities		(57,179	)		(34,400	)
Reclassification from AOCI to retained earnings due to sale of equity securities measured at fair value through other comprehensive income		26,483			243,022
Profit for the year		3,001,157			2,908,220
		2,970,548			3,116,895
Transfer from voluntary reserves and others
Revaluation gains on property and equipment		2,173			18,054
Regulatory reserve for credit losses		384,274			—
		386,447			18,054
Appropriation of retained earnings
Voluntary reserves		1,884,700			1,714,800
Regulatory reserve for credit losses		—			70,905
Cash dividends:		1,467,896			1,346,582
(Dividends (rate) per share: W 3,630 (72.6%) in 2023) (Dividends (rate) per share: W 3,330 (66.6%) in 2022)		1,467,896			1,346,582
Other reserves		4,346			2,575
		3,356,942			3,134,862
Unappropriated retained earnings to be carried forward		53			87

25.5.3 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 29.1 through 29.2 of Regulations on Supervision of Banking Business.

25.5.3.1 Details of regulatory reserve for credit losses as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Amount before appropriation		2,785,965			2,715,060
Amount estimated to be appropriated		(384,274	)		70,905
		2,401,691			2,785,965

134

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

25.5.3.2 Regulatory reserve for credit losses estimated to be appropriated (reversed) and adjusted profit after provision (reversal) of regulatory reserve for credit losses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Regulatory reserve for credit losses estimated to be appropriated (reversed)		(384,274	)		70,905
Adjusted profit after provision (reversal) of regulatory reserve for credit losses *		3,385,431			2,837,315

* Adjusted profit after provision (reversal) of regulatory reserve for credit losses is not based on Korean IFRS. It is calculated by reflecting provision (reversal) of regulatory reserve for credit losses before tax to the net profit.

26. Net Interest Income

Details of interest income, interest expense, and net interest income for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Interest income
Securities measured at fair value through profit or loss		305,348		183,342
Loans measured at fair value through profit or loss		27,779		14,426
Securities measured at fair value through other comprehensive income		1,096,816		653,017
Loans measured at fair value through other comprehensive income		16,641		6,023
Due from financial institutions measured at amortized cost		163,335		56,728
Securities measured at amortized cost		1,055,570		602,106
Loans measured at amortized cost		17,751,196		12,126,138
Others		458,008		320,242
		20,874,693		13,962,022
Interest expense
Deposits		9,016,298		3,988,661
Borrowings		1,160,917		564,108
Debentures		1,035,946		665,059
Others		353,227		184,992
		11,566,388		5,402,820
Net interest income		9,308,305		8,559,202

Interest income recognized on impaired loans is W 24,119 million and W 14,880 million for the years ended December 31, 2023 and 2022, respectively.

135

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

27. Net Fee and Commission Income

Details of fee and commission income, fee and commission expense, and net fee and commission income for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Fee and commission income
Banking activity fees		191,311		190,874
Lending activity fees		76,061		65,368
Credit card related fees		346		369
Debit card related fees		737		590
Agent activity fees		290,590		327,986
Trust and other fiduciary fees		251,133		214,159
Acceptances and guarantees fees		74,411		60,465
Foreign currency related fees		157,253		135,312
Securities agency fees		95,164		105,477
Other business account commission on consignment		33,873		36,211
Others		419,475		375,419
		1,590,354		1,512,230
Fee and commission expense
Trading activity related fees *		17,138		16,107
Lending activity fees		40,263		44,833
Credit card related fees		40,293		37,349
Outsourcing related fees		97,662		106,009
Foreign currency related fees		23,474		18,890
Management fees of written-off loans		12,345		12,841
Contributions to external institutions		30,467		27,996
Others		147,314		147,379
		408,956		411,404
Net fee and commission income		1,181,398		1,100,826

* Fees from financial instruments at fair value through profit or loss

136

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

28. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions.

Details of net gains or losses on financial instruments at fair value through profit or loss for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Gains on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		1,008,805		530,057
Equity securities		20,718		12,425
		1,029,523		542,482
Derivatives held for trading:
Interest rate		5,264,886		7,398,966
Currency		8,814,584		13,646,564
Stock or stock index		4,730		9,239
Credit		8,604		39,646
Others		946		1,443
		14,093,750		21,095,858
Financial liabilities at fair value through profit or loss		661		2,938
Other financial instruments		502		251
		15,124,436		21,641,529
Losses on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		188,334		800,076
Equity securities		2,744		3,617
		191,078		803,693
Derivatives held for trading:
Interest rate		5,538,550		6,568,434
Currency		8,655,889		13,870,247
Stock or stock index		69,056		6,587
Credit		9,282		36,268
Others		867		1,258
		14,273,644		20,482,794
Financial liabilities at fair value through profit or loss		1,831		656
Other financial instruments		387		206
		14,466,940		21,287,349
Net gains on financial instruments at fair value through profit or loss		657,496		354,180

137

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

29. Net Other Operating Income and Expenses

Details of other operating income and expenses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Other operating income
Gains on financial assets at fair value through other comprehensive income:
Gains on redemption of securities measured at fair value through other comprehensive income		7,326			20
Gains on disposal of securities measured at fair value through other comprehensive income		16,096			12,968
Gains on financial assets at amortized cost:
Gains on sale of loans measured at amortized cost		36,708			27,848
Gains on foreign exchange transactions		4,657,872			9,585,658
Dividend income		4,361			9,885
Others		394,767			722,923
		5,117,130			10,359,302
Other operating expenses
Losses on financial assets at fair value through other comprehensive income:
Losses on redemption of securities measured at fair value through other comprehensive income		8			2,758
Losses on disposal of securities measured at fair value through other comprehensive income		100,108			30,460
Losses on financial assets at amortized cost:
Losses on sale of loans measured at amortized cost		30,512			3,022
Losses on foreign exchange transactions		4,529,602			9,506,654
Deposit insurance fee		529,749			496,137
Credit guarantee fund fee		327,757			283,906
Others		998,932			965,965
		6,516,668			11,288,902
Net other operating expenses		(1,399,538	)		(929,600	)

138

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

30. General and Administrative Expenses

30.1 Details of general and administrative expenses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Expenses related to employee
Employee benefits - salaries		1,510,284		1,588,321
Employee benefits - welfare		645,469		696,824
Post-employment benefits - defined benefit plans		109,733		166,670
Post-employment benefits - defined contribution plans		15,886		15,491
Termination benefits		250,215		272,615
Share-based payments		24,330		15,169
		2,555,917		2,755,090
Depreciation and amortization		531,923		510,059
Other general and administrative expenses
Rental expense		58,096		57,668
Tax and dues		188,205		159,664
Communication		33,536		32,412
Electricity and utilities		29,516		23,618
Publication		4,929		5,669
Repairs and maintenance		11,329		11,430
Vehicle		5,246		6,004
Travel		8,080		7,349
Training		20,390		19,697
Service fees		139,862		138,549
Supplies		14,960		18,662
Electronic data processing expenses		242,667		218,670
Others		311,192		329,796
		1,068,008		1,029,188
		4,155,848		4,294,337

30.2 Share-based Payments

30.2.1 Stock grants

The Bank changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

139

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

30.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2023, are as follows:

(In number of shares)
Stock grants	Grant date	Number of granted shares 1		Vesting conditions 2
Series 83	Apr. 1, 2021		14,972	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 85	Jan. 1, 2022		259,752	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%, Services fulfillment, TSR 30%, and EPS and Asset Quality 70%
Series 86	Feb. 1, 2022		1,525	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 88	Mar. 14, 2022		5,179	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 90	Jul. 18, 2022		3,716	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 91	Aug. 24, 2022		7,277	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 92	Jan. 1, 2023		187,802	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 93	Mar. 15. 2023		585	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 94	Apr. 1, 2023		8,794	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Series 95	Oct. 5, 2023		126	Services fulfillment, TSR 0~30%, and Company and work performance 70~100%
Deferred grant in 2016			799	Satisfied
Deferred grant in 2017			893	Satisfied
Deferred grant in 2018			1,145	Satisfied
Deferred grant in 2020			26,763	Satisfied
Deferred grant in 2021			104,643	Satisfied
Deferred grant in 2022			87,342	Satisfied
Deferred grant in 2023			3,611	Satisfied
			714,924

¹ Granted shares represent the total number of shares initially granted to executives and employees who have residual shares as of December 31, 2023 (Deferred grants are residual shares vested as of December 31, 2023).

² Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.

140

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

30.2.1.2 Details of stock grants linked to short-term performance as of December 31, 2023, are as follows:

(In number of shares)
Stock grants *	Grant date	Estimated number of vested shares		Vesting conditions
Stock granted in 2015	Jan. 1, 2015		419	Satisfied
Stock granted in 2016	Jan. 1, 2016		2,135	Satisfied
Stock granted in 2017	Jan. 1, 2017		535	Satisfied
Stock granted in 2018	Jan. 1, 2018		739	Satisfied
Stock granted in 2020	Jan. 1, 2020		44,890	Satisfied
Stock granted in 2021	Jan. 1, 2021		86,235	Satisfied
Stock granted in 2022	Jan. 1, 2022		164,595	Satisfied
Stock granted in 2023	Jan. 1, 2023		133,455	Proportion to service period

* Executives and employees were given the right of choice about the timing of the deferred payment (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.

30.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2023, are as follows:

(In Korean won)	Expected exercise period(years)		Risk-free rate (%)			Fair value (market performance condition)		Fair value (non- market performance condition)
Series 83		0.00~3.00		3.43	%		42,053~48,307		47,066~52,755
Series 85		0.00~3.00		3.43	%		38,623~48,102		47,066~52,755
Series 86		0.00~4.00		3.43	%		39,972~46,008		44,873~51,649
Series 88		0.00~4.00		3.43	%		41,215~47,439		44,873~51,649
Series 90		0.00~4.00		3.43	%		42,737~49,190		44,873~51,649
Series 91		0.00~4.00		3.43	%		42,750~49,206		44,873~51,649
Series 92		0.00~4.00		3.43	%		44,873~52,755		44,873~52,755
Series 93		0.00~5.01		3.43	%		47,066~52,755		47,066~52,755
Series 94		0.00~5.01		3.43	%		42,787~52,755		42,787~52,755
Series 95		0.00~3.00		3.43	%		43,187~48,407		47,066~52,755
Grant deferred in 2016		—		3.43	%		—		52,755
Grant deferred in 2017		—		3.43	%		—		52,755
Grant deferred in 2018		—		3.43	%		—		52,755
Grant deferred in 2020		—		3.43	%		—		52,755
Grant deferred in 2021		0.00~1.00		3.43	%		—		51,649~52,755
Grant deferred in 2022		0.00~4.00		3.43	%		—		44,873~52,755
Grant deferred in 2023		0.16~2.16		3.43	%		—		48,939~53,705
Stock granted in 2015		0.00		3.43	%		—		52,755
Stock granted in 2016		0.00~1.00		3.43	%		—		51,649~52,755
Stock granted in 2017		0.00		3.43	%		—		52,755
Stock granted in 2018		0.00		3.43	%		—		52,755
Stock granted in 2020		0.00		3.43	%		—		52,755
Stock granted in 2021		0.00~1.00		3.43	%		—		51,649~52,755
Stock granted in 2022		0.00~4.00		3.43	%		—		44,873~52,755
Stock granted in 2023		0.16~3.00		3.43	%		—		47,066~53,705

The Bank uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

141

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

30.2.1.4 The accrued expenses for share-based payments related to stock grants are W 53,774 million and W 46,740 million as of December 31, 2023 and 2022, respectively, and the compensation costs amounting to W 24,330 million and W 15,169 million were recognized for the years ended December 31, 2023 and 2022, respectively.

30.2.2 Mileage stock

30.2.2.1 Details of mileage stock as of December 31, 2023, are as follows:

(In number of shares)
Grant date		Number of granted shares 1		Expected exercise period (years) 2		Remaining shares
Stock granted in 2019
	Nov. 1, 2019		119		0.00~0.83		48
	Nov. 8, 2019		14		0.00~0.85		6
	Dec. 5, 2019		56		0.00~0.93		39
	Dec. 6, 2019		84		0.00~0.93		38
	Dec. 31, 2019		87		0.00~1.00		22
Stock granted in 2020
	Jan. 18, 2020		28,645		0.00~1.05		13,953
	May 12, 2020		46		0.00~1.36		43
	Jun. 30, 2020		206		0.00~1.50		147
	Aug. 26, 2020		40		0.00~1.65		27
	Oct. 29, 2020		160		0.00~1.83		107
	Nov. 6, 2020		45		0.00~1.85		37
	Nov. 30, 2020		35		0.00~1.92		29
	Dec. 2, 2020		57		0.00~1.92		26
	Dec. 4, 2020		154		0.00~1.93		79
	Dec. 30, 2020		88		0.00~2.00		51
Stock granted in 2021
	Jan. 15, 2021		28,156		0.00~2.04		16,045
	Apr. 5, 2021		89		0.00~2.26		53
	Jul. 1, 2021		54		0.00~2.50		36
	Jul. 2, 2021		11		0.00~2.50		11
	Jul. 27, 2021		70		0.00~2.57		63
	Nov. 1, 2021		71		0.00~2.84		71
	Nov. 16, 2021		53		0.00~2.88		13
	Dec. 3, 2021		91		0.00~2.92		74
	Dec. 6, 2021		87		0.00~2.93		76
	Dec. 30, 2021		76		0.00~3.00		76

142

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

30.2.2.1 Details of mileage stock as of December 31, 2023, are as follows: (cont’d)

(In number of shares)
Grant date		Number of granted shares 1		Expected exercise period (years) 2		Remaining shares
Stock granted in 2022
	Jan. 14, 2022		20,909		0.00~3.04		16,253
	Apr. 4, 2022		65		0.00~3.26		65
	Apr. 19, 2022		33		0.00~3.30		29
	Jul. 1, 2022		62		0.00~3.50		21
	Aug. 3, 2022		62		0.00~3.59		15
	Aug. 9, 2022		80		0.00~3.61		60
	Oct. 19, 2022		55		0.00~3.80		23
	Nov. 1, 2022		177		0.00~3.84		159
	Dec. 1, 2022		49		0.00~3.92		49
	Dec. 12, 2022		42		0.00~3.92		30
	Dec. 6, 2022		88		0.00~3.93		70
	Dec. 12, 2022		114		0.00~3.95		114
	Dec. 15, 2022		42		0.00~3.96		42
	Dec. 30, 2022		114		0.00~4.00		114
Stock granted in 2023
	Jan. 9, 2023		23,071		0.00~4.02		22,084
	Jan. 14, 2023		742		0.00~4.04		688
	Mar. 7, 2023		58		0.00~4.18		58
	Mar. 27, 2023		58		0.00~4.24		58
	Mar. 31, 2023		97		0.00~4.25		97
	May. 4, 2023		105		0.00~4.34		105
	Jul. 3, 2023		63		0.00~4.50		63
	Jul. 26, 2023		38		0.00~4.57		38
	Jul. 31, 2023		220		0.00~4.58		220
	Oct. 20, 2023		80		0.00~4.80		80
	Nov. 1, 2023		78		0.00~4.84		78
	Dec. 1, 2023		49		0.00~4.92		49
	Dec. 13, 2023		115		0.00~4.95		115
	Dec. 14, 2023		57		0.00~4.95		57
	Dec. 27, 2023		19		0.00~4.99		19
	Dec. 28, 2023		162		0.00~4.99		162
	Dec. 29, 2023		95		0.00~4.99		95
			105,593				72,280

¹  Mileage stock is exercisable for four years after one year from the grant date at the closing price of the end of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a one-year grace period.

²  Assessed based on the stock price as of December 31, 2023. These shares are vested immediately at grant date.

30.2.2.2 The accrued expenses for share-based payments related to mileage stock are W 3,910 million and W 2,738 million as of December 31, 2023 and 2022, respectively. The compensation costs amounting to W 1,645 million and W 870 million were recognized as expenses for the years ended December 31, 2023 and 2022, respectively.

143

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

31. Net Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Other non-operating income
Gains on disposal of property and equipment and assets held for sale		6,794			47,384
Rental income		28,900			22,541
Dividend income from subsidiaries and associates		9,467			14,844
Others		22,491			19,985
		67,652			104,754
Other non-operating expenses
Losses on disposal of property and equipment and assets held for sale		601			1,791
Donation		90,800			62,222
Restoration costs		2,706			2,336
Others		353,622			410,922
		447,729			477,271
Net other non-operating income (expenses)		(380,077	)		(372,517	)

144

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

32. Income Tax Expense

32.1 Details of income tax expense for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Income tax payable
Current income tax expense		1,059,797			1,280,750
Adjustments of income tax of prior years recognized in current tax		(52,986	)		(125,397	)
		1,006,811			1,155,353
Changes in deferred income tax assets and liabilities		304,975			(534,646	)
Income tax expense of overseas branches		54,735			33,245
Income tax recognized directly in equity:
Net gains or losses on debt instruments at fair value through other comprehensive income		(250,534	)		162,928
Remeasurements of net defined benefit liabilities		18,107			(67,476	)
Net gains or losses on equity instruments at fair value through other comprehensive income		1,314			466,078
Gains or losses on cash flow hedging instruments		4,691			(12,263	)
		(226,422	)		549,267
Reclassification from AOCI to retained earnings due to sale of equity securities measured at fair value through other comprehensive income		(9,500	)		(92,181	)
Consolidated tax return effect		(83,347	)		(62,854	)
Income tax expense		1,047,252			1,048,184

32.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Profit before income tax expense		4,048,409			3,956,404
Income tax at the applicable tax rate *		1,058,418			1,077,807
Non-taxable income		(17,261	)		(10,300	)
Non-deductible expenses		10,484			8,064
Tax credit and tax exemption		—			(1,418	)
Temporary difference for which no deferred tax is recognized		70,430			134,361
Income tax refund for tax of prior years		(48,825	)		(135,121	)
Income tax expense of overseas branches		54,735			33,245
Effect of tax rate change		(379	)		(3,630	)
Consolidated tax return effect		(83,347	)		(62,854	)
Others		2,997			8,030
Income tax expense		1,047,252			1,048,184
Income tax expense/Profit before income tax (%)		25.87			26.49

* Applicable income tax rate for W 200 million and below is 9.9%, for over W 200 million to W 20 billion is 20.9%, for over W 20 billion to W 300 billion is 23.1% and for over W 300 billion is 26.4% for the year ended December 31, 2023. Applicable income tax rate for W 200 million and below is 11%, for over W 200 million to W 20 billion is 22%, for over W 20 billion to W 300 billion is 24.2% and for over W 300 billion is 27.5% for the year ended December 31, 2022.

145

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

32.3 Details of current tax liabilities (income tax payables) and current tax assets (income tax refund receivables) before offsetting as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Tax payables after offsetting 1, 2		310,958			816,447
Adjustment on consolidated tax payable and others 3		(83,347	)		(62,854	)
Consolidated tax return accounts payables 4		(217,253	)		(747,922	)
Current tax payable		10,358			5,671

¹ Current tax assets of W 218,001 million and W 172,757 million due to uncertain tax position and current tax assets of W 7,021 million and W 14,260 million for overseas branches were excluded, which do not qualify for offsetting as of December 31, 2023 and 2022, respectively.

² Includes income tax payable of W 10,358 million and W 5,671 million under current tax liabilities, which are not to be offset against any income tax refund receivables, such as those of overseas branches as of December 31, 2023 and 2022, respectively.

³ Tax expense reduced due to the adoption of consolidated tax return was recognized as tax benefit.

⁴ The amount of income tax payable is reclassified as accounts payable, not to the tax authority, but to KB Financial Group Inc. due to the adoption of consolidated tax return.

33. Dividends

The annual dividends to the shareholder of the Bank for the year ended December 31, 2023, amounting to W 1,467,896 million (W 3,630 per share) is to be proposed at the general shareholder’s meeting scheduled for March 21, 2024. The Bank’s financial statements as of and for the year ended December 31, 2023, do not reflect this dividend payable.

146

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

34. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Beginning			Changes (excluding reclassification)			Reclassification to profit or loss			Tax effect			Transfer to retained earnings			Ending
Remeasurements of net defined benefit liabilities		(115,124	)		(68,589	)		—			18,108			—			(165,605	)
Currency translation differences		3,132			(2,877	)		—			—			—			255
Gains (losses) on debt securities measured at fair value through other comprehensive income		(649,850	)		718,762			226,883			(250,534	)		—			45,261
Gains on equity securities measured at fair value through other comprehensive income		641,536			34,310			—			1,314			(35,981	)		641,179
Losses on cash flow hedging instruments		33,921			(12,395	)		(5,200	)		4,691			—			21,017
		(86,385	)		669,211			221,683			(226,421	)		(35,981	)		542,107

	2022
(In millions of Korean won)	Beginning			Changes (excluding reclassification)			Reclassification to profit or loss		Tax effect			Transfer to retained earnings			Ending
Remeasurements of net defined benefit liabilities		(293,014	)		245,366			—		(67,476	)		—			(115,124	)
Currency translation differences		5,154			(2,022	)		—		—			—			3,132
Gains (losses) on debt securities measured at fair value through other comprehensive income		(188,161	)		(927,330	)		302,713		162,928			—			(649,850	)
Gains on equity securities measured at fair value through other comprehensive income		1,838,548			(1,327,887	)		—		466,078			(335,203	)		641,536
Losses on cash flow hedging instruments		(89	)		43,885			2,388		(12,263	)		—			33,921
		1,362,438			(1,967,988	)		305,101		549,267			(335,203	)		(86,385	)

147

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

35. Trust Accounts

35.1 Financial information of the trust accounts the Bank manages, as of and for the years ended December 31, 2023 and 2022, are as follows:

	Total assets				Operating revenues
(In millions of Korean won)	December 31, 2023		December 31, 2022		2023		2022
Consolidated		4,130,129		4,192,712		192,689		122,144
Unconsolidated (non-guaranteed)		98,607,952		76,695,803		3,825,217		1,996,658
		102,738,081		80,888,515		4,017,906		2,118,802

* Financial information of the trust accounts has been prepared in accordance with the Statement of Korea Accounting Standard No.5004, Trust Accounts, and enforcement regulations of the Financial Investment Services under the Financial Investment Services and Capital Markets Act.

35.2 Significant receivables and payables related to the Bank’s trust accounts as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023
Trust Segment	Receivables
	Accrued trust fees		73,353
	Other accrued income		32,328
			105,681
	Payables
	Due to trust accounts		5,011,320
	Accrued interest on due to trust accounts		12,881
	Unearned fees on Trust Accounts		323
	Deposits		889,966
	Accrued interest on deposits		11,522
			5,926,012
Custody Segment	Receivables
	Accrued trust fees		9,460
	Payables
	Due to trust accounts		3,699,956
	Accrued interest on due to trust accounts		9,144
			3,709,100

148

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

35.2 Significant receivables and payables related to the Bank’s trust accounts as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2022
Trust Segment	Receivables
	Accrued trust fees		70,014
	Other accrued income		27,376
			97,390
	Payables
	Due to trust accounts		2,098,578
	Accrued interest on due to trust accounts		8,727
	Deposits		686,394
	Accrued interest on deposits		5,641
			2,799,340
Custody Segment	Receivables
	Accrued trust fees		8,461
	Payables
	Due to trust accounts		4,228,492
	Accrued interest on due to trust accounts		10,820
			4,239,312

35.3 Significant revenues and expenses related to the Bank’s trust accounts for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		2023		2022
Trust Segment	Revenues
	Fees and commissions from trust accounts		211,466		176,090
	Management fees and commissions from retirement pension		35,833		30,797
	Commissions from early termination in trust accounts		18		13
			247,317		206,900
	Expenses
	Interest expenses on due to trust accounts		105,152		38,187
	Interest expenses on deposits		62,917		19,655
			168,069		57,842
Custody Segment	Revenues
	Fees and commissions from trust accounts		39,667		38,069
	Expenses
	Interest expenses on due to trust accounts		124,096		83,797

149

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

35.4 Details of carrying amounts of the trust accounts for which the Bank guarantees payment of principal or payment of principal and fixed rate of return as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Trust accounts guaranteeing repayment of principal	Old age pension		1,187		1,191
	Personal pension		1,742,247		1,813,544
	Pension		2,256,607		2,243,064
	Retirement		8,019		8,065
	New personal pension		83,801		84,444
	New old age pension		2,774		2,967
	Retail		10,201		10,499
	Corporate		1,321		1,299
	Installment		13,044		13,450
			4,119,201		4,178,523
Trust accounts guaranteeing repayment of principal and fixed rate of return	Development money		10,850		14,112
	Unspecified monetary		78		77
			10,928		14,189
			4,130,129		4,192,712

* Financial information of the trust accounts has been prepared in accordance with the Statement of Korea Accounting Standard 5004, Trust Accounts, and enforcement regulations of the Financial Investment Services under the Financial Investment Services and Capital Markets Act.

There is no amount the Bank has to pay in relation to the management results of the trust accounts in accordance with the guarantees of payment of principal or payment of principal and fixed rate of return as of December 31, 2023 and 2022.

150

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

36. Statements of Cash Flows

36.1 Details of cash and cash equivalents as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023			December 31, 2022
Cash		1,940,111			2,227,291
Checks issued by other banks		142,437			123,163
Due from Bank of Korea		14,628,378			15,963,883
Due from other financial institutions		4,937,364			3,981,907
		21,648,290			22,296,244
Deduction:
Restricted due from financial institutions *		(285,176	)		(302,456	)
Due from financial institutions with original maturities over three months		(695	)		(644	)
		(285,871	)		(303,100	)
		21,362,419			21,993,144

* Items that meet the definition of cash are excluded in accordance with Korean IFRS No.1007 Statement of Cash Flows.

Items that meet the definition of cash in restricted due from financial institutions as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		Financial institutions	December 31, 2023		December 31, 2022
Due from financial institutions in Korean won	Due from Bank of Korea	Bank of Korea		13,731,708		15,169,704
Due from financial institutions in foreign currencies	Due from banks in foreign currencies	Bank of Korea		896,670		794,180
		Monetary Authority of Singapore and others		13,373		49,649
				14,641,751		16,013,533

36.2 Significant non-cash transactions for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023			2022
Write-offs of loans		442,241			360,014
Changes in accumulated other comprehensive income from valuation of debt securities measured at fair value through other comprehensive income		695,111			(461,689	)
Changes in accumulated other comprehensive income from valuation of equity securities measured at fair value through other comprehensive income		(357	)		(1,197,012	)

151

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

36.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Activities		2023		2022
Income tax paid		Operating		1,548,301		850,021
Interest received		Operating		20,647,632		13,676,404
Interest paid		Operating		10,030,859		4,235,972
Dividends received		Operating		179,964		175,630
Dividends paid		Financing		1,346,582		1,031,167
Interest (dividends) paid on hybrid securities		Financing		57,179		34,399

36.4 Changes in liabilities arising from financing activities for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Derivatives held for hedging *			Borrowings			Debentures		Due to trust accounts		Lease liabilities			Deposits for letter of guarantees			Total
Beginning		7,720			43,664,670			27,999,416		6,327,070		328,707			1,099,789			79,427,372
Cash flow		32,370			(10,950,884	)		1,649,455		2,384,206		(117,219	)		(576,198	)		(7,578,270	)
New lease and termination		—			—			—		—		95,081			—			95,081
Exchange differences		—			183,269			258,930		—		—			—			442,199
Changes in fair values		(14,648	)		—			136,120		—		—			—			121,472
Other changes from non-cash transactions		(21,779	)		126,091			14,312		—		10,332			6			128,962
Ending		3,663			33,023,146			30,058,233		8,711,276		316,901			523,597			72,636,816

	2022
(In millions of Korean won)	Derivatives held for hedging *			Borrowings		Debentures			Due to trust accounts			Lease liabilities			Deposits for letter of guarantees		Total
Beginning		(88,125	)		31,073,908		26,891,141			7,204,168			336,844			373,633		65,791,569
Cash flow		33,287			12,013,037		928,113			(877,098	)		(156,277	)		725,802		12,666,864
New lease and termination		—			—		—			—			140,598			—		140,598
Exchange differences		—			577,429		454,390			—			—			—		1,031,819
Changes in fair values		97,907			—		(293,570	)		—			—			—		(195,663	)
Other changes from non-cash transactions		(35,349	)		296		19,342			—			7,542			354		(7,815	)
Ending		7,720			43,664,670		27,999,416			6,327,070			328,707			1,099,789		79,427,372

* Derivatives held for hedging purposes are the net amount after offsetting liabilities and assets.

152

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

37. Contingent Liabilities and Commitments

37.1 Details of acceptances and guarantees as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Confirmed acceptances and guarantees
Confirmed acceptances and guarantees in Korean won:
Acceptances and guarantees for KB purchasing loan		148,786		167,538
Performance bond		—		3,476
Refund guarantees		—		9,259
Others		945,026		905,934
		1,093,812		1,086,207
Confirmed acceptances and guarantees in foreign currencies:
Acceptances of letter of credit		277,370		502,217
Letter of guarantees		47,665		78,414
Bid bond		12,549		19,998
Performance bond		1,111,589		976,008
Refund guarantees		3,561,227		1,705,796
Others		3,698,292		3,010,650
		8,708,692		6,293,083
Financial guarantee contracts:
Acceptances and guarantees for issuance of debenture		—		5,040
Acceptances and guarantees for mortgage		94,027		94,861
Overseas debt guarantees		686,848		713,431
International financing guarantees in foreign currencies		616,554		181,241
		1,397,429		994,573
		11,199,933		8,373,863
Unconfirmed acceptances and guarantees
Guarantees of letter of credit		2,778,109		3,024,034
Refund guarantees		1,301,377		1,528,359
		4,079,486		4,552,393
		15,279,419		12,926,256

153

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

37.2 Credit qualities of acceptances and guarantees as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
	12-month expected credit losses		Lifetime expected credit losses				Total
(In millions of Korean won)			Non-impaired		Impaired
Confirmed acceptances and guarantees *
Grade 1		8,752,579		170,322		—		8,922,901
Grade 2		1,862,490		22,065		—		1,884,555
Grade 3		17,020		7,368		—		24,388
Grade 4		67,729		294,635		457		362,821
Grade 5		—		1,182		4,086		5,268
		10,699,818		495,572		4,543		11,199,933
Unconfirmed acceptances and guarantees *
Grade 1		3,071,076		—		—		3,071,076
Grade 2		727,512		19,210		—		746,722
Grade 3		8,600		10,692		—		19,292
Grade 4		1,828		237,200		—		239,028
Grade 5		—		—		3,368		3,368
		3,809,016		267,102		3,368		4,079,486
		14,508,834		762,674		7,911		15,279,419

	December 31, 2022
	12-month expected credit losses		Lifetime expected credit losses				Total
(In millions of Korean won)			Non-impaired		Impaired
Confirmed acceptances and guarantees *
Grade 1		6,391,453		1,140		—		6,392,593
Grade 2		1,562,960		10,474		—		1,573,434
Grade 3		100,345		16,290		—		116,635
Grade 4		63,689		215,382		442		279,513
Grade 5		—		4,130		7,558		11,688
		8,118,447		247,416		8,000		8,373,863
Unconfirmed acceptances and guarantees *
Grade 1		3,218,676		844		—		3,219,520
Grade 2		1,035,680		36,879		—		1,072,559
Grade 3		4,685		13,308		—		17,993
Grade 4		1,265		236,687		5		237,957
Grade 5		—		199		4,165		4,364
		4,260,306		287,917		4,170		4,552,393
		12,378,753		535,333		12,170		12,926,256

* Applied same criteria as the credit qualities classification of loans.

154

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

37.3 Classifications of acceptances and guarantees by counterparty as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Large companies		10,189,332		3,390,315		13,579,647		88.88
Small and medium-sized companies		923,806		454,574		1,378,380		9.02
Public sector and others		86,795		234,597		321,392		2.10
		11,199,933		4,079,486		15,279,419		100.00

	December 31, 2022
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Large companies		7,478,656		3,805,384		11,284,040		87.30
Small and medium-sized companies		659,701		483,013		1,142,714		8.84
Public sector and others		235,506		263,996		499,502		3.86
		8,373,863		4,552,393		12,926,256		100.00

37.4 Classifications of acceptances and guarantees by industry as of December 31, 2023 and 2022, are as follows:

	December 31, 2023
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Financial institutions		1,906,077		591		1,906,668		12.48
Manufacturing		5,410,024		3,109,101		8,519,125		55.76
Service		791,288		102,028		893,316		5.85
Wholesale and retail		2,271,417		614,053		2,885,470		18.88
Construction		348,777		116,950		465,727		3.05
Public sector		31,732		62,440		94,172		0.62
Others		440,618		74,323		514,941		3.36
		11,199,933		4,079,486		15,279,419		100.00

	December 31, 2022
(In millions of Korean won)	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
Financial institutions		815,133		2,012		817,145		6.32
Manufacturing		3,571,866		3,576,251		7,148,117		55.30
Service		739,166		31,465		770,631		5.96
Wholesale and retail		2,165,401		658,875		2,824,276		21.85
Construction		401,782		47,465		449,247		3.48
Public sector		32,635		81,607		114,242		0.88
Others		647,880		154,718		802,598		6.21
		8,373,863		4,552,393		12,926,256		100.00

155

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

37.5 Details of commitments as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Commitments
Corporate loan commitments		54,629,479		50,380,036
Retail loan commitments		55,874,987		50,974,278
Other commitments in Korean won		1,700,000		1,700,000
Purchase of other securities		5,071,852		5,070,170
		117,276,318		108,124,484
Financial guarantee contracts
Credit line		5,145,972		6,100,082
Purchase of securities		2,203,136		1,809,045
		7,349,108		7,909,127
		124,625,426		116,033,611

156

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

37.6 Other Matters

37.6.1 The Bank has 36 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of W 1,019,717 million. Details of pending lawsuits in which the Bank is a defendant as of December 31, 2023, are as follows:

(In number of cases, in millions of Korean won)

Lawsuits	No. of cases		Amount		Description of the lawsuits	Status of the lawsuits
Request for return of redemption amount		1		54,168	The Bank invested the assets entrusted by OO Asset Management and OO Investment Trust Management in the Fairfield Sentry Limited(the Fairfield Sentry Limited reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff) and then redeemed them and returned them to the beneficiaries. Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses. The bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit against The Bank seeking to return the amount of redemptions received by The Bank through Fairfield Sentry Limited.	Application for dismissal by the defendant has been denied, and further proceedings are scheduled. [Related litigation is in progress at the New York Southern District Federal Bankruptcy Court (10-3777) at the written complaint review stage]
Expropriation of long-term leasehold rights		1		322,350	Kookmin Bank invested assets entrusted by OO Asset Management Co., Ltd. in loans that are directly or indirectly collateralized by long-term leasehold rights of the building and land leasehold rights (hereinafter referred to as “the real estate in this case”) of Union Station in Washington, D.C., the United States. The Plaintiff, who is the operator of the railway facility, filed this lawsuit against those concerned with the real estate in this case, including Kookmin Bank, to expropriate the real estate in this case and determine indemnity	Kookmin Bank submitted the response letter and will proceed with the process in the future
Return of unjust enrichment		1		140,860	The Russian OO Bank, which was transacting through accounts with Kookmin bank, has been listed on OFAC’s (Office of Foreign Assets Control) SDN (Specially Designated Nationals) List. In response, Kookmin Bank has frozen the foreign currency accounts under the name of OO Bank. Subsequently, the Russian OO Bank has filed a lawsuit with the Moscow City Commercial Court seeking the restitution of account balances.	Kookmin Bank plans to respond in accordance with the local court’s trial schedule.
Others		127		265,283	Others (excluding simple lawsuits related to the collection or management of loans)
		130		782,661

157

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

37.6.2 On April 7, 2023, The Bank entered into a new share subscription agreement with STIC Eugene Star Holdings Inc.(hereinafter referred to as STIC”), under which STIC will acquire 31,900,000,000 shares at a price of IDR 3.19 trillion, of which Kookmin Bank’s subsidiary, PT Bank KB Bukopin Tbk, will issue. As a result of the agreement, The Bank will hold a call option to purchase the shares held by the STIC, starting from 2 years and 6 months after the date of acquisition, for a period of 6 months. If Kookmin Bank does not exercise the call option during the designated period, STIC will have a put option to sell the acquired shares back to the Bank within 1 year after the expiration of the call option period.

37.6.3 The Bank is currently undergoing an inspection by the Financial Supervisory Service regarding equity-linked securities (ELS), and the requested actions based on the inspection results are currently unpredictable.

37.6.4 The Bank is currently under investigation by the Fair Trade Commission regarding the possibility of unfair joint actions by commercial banks. It is impossible to predict the outcome of the investigation.

158

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

38. Subsidiaries

38.1 Details of subsidiaries as of December 31, 2023, are as follows:

Investor	Investee	Ownership (%)	Location	Industry
Kookmin Bank	Kookmin Bank (China) Ltd.	100.00	China	Banking and foreign exchange transaction
Kookmin Bank	KB Microfinance Myanmar Co., Ltd.	100.00	Myanmar	Microfinance services
Kookmin Bank	KB BANK MYANMAR LTD	100.00	Myanmar	Banking and foreign exchange transaction
Kookmin Bank	KB PRASAC BANK PLC. 1	100.00	Cambodia	Banking and foreign exchange transaction
Kookmin Bank	PT Bank KB Bukopin Tbk	66.88	Indonesia	Banking and foreign exchange transaction
PT Bank KB Bukopin Tbk	PT Bank Syariah Bukopin	95.92	Indonesia	Banking
PT Bank KB Bukopin Tbk	PT Bukopin Finance	99.24	Indonesia	Installment financing
Kookmin Bank	Orient Kwang-yang Co., Ltd. 2	36.16	Korea	Building of ships
Orient Kwang-yang Co., Ltd.	YoulChon Clean Energy Co., Ltd.	100.00	Korea	Other power generation
Kookmin Bank	Personal pension trust and 10 others 3	—	Korea	Trust
Kookmin Bank	KB DTower 1st L.L.C. and 35 others 2	—	Korea	Asset-backed securitization and others
Kookmin Bank	IDMB UNITED PTE.LTD. and other2	—	Singapore	Asset-backed securitization and others
Kookmin Bank	KB Wise Star Private Real Estate Feeder Fund No.1 2	86.00	Korea	Investment trust
Kookmin Bank	Kiwoom Frontier Private Securities Fund No.10 (Bond) 2	99.36	Korea	Investment trust
Kookmin Bank	Woori SafePlus Private Securities Fund S-8 2	90.89	Korea	Investment trust
Kookmin Bank	AIP US Red Private Real Estate Trust No.10 2	99.97	Korea	Investment trust
Kookmin Bank	KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative) 2	99.68	Korea	Investment trust
Kookmin Bank	KB Core Blind Private Real Estate Fund No.1 2	90.09	Korea	Investment trust
KB Core Blind Private Real Estate Fund No.1	KB Wise Star Real Estate Fund No.3 2	46.65	Korea	Investment trust
Kookmin Bank	KB Global Private Real Estate Fund No.3 (USD) 2	99.50	Korea	Investment trust
Kookmin Bank	Samsung SRA Private Real Estate Investment Trust No.28D (FoFs)2	99.50	Korea	Investment trust

159

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

38.1 Details of subsidiaries as of December 31, 2023, are as follows: (cont’d)

Investor	Investee	Ownership (%)	Location	Industry
Kookmin Bank	KB Global Private Real Estate Fund No.10 (FoFs) 2	99.84	Korea	Investment trust
Kookmin Bank	KTB Global CREDebt Private Investment Trust No.52 (USD) 2	99.44	Korea	Investment trust
Kookmin Bank	Hyundai Invest KKR Europe Real Estate No.1-3 (EUR) 2	99.14	Korea	Investment trust
Kookmin Bank	KBSTAR FKTB 5Y Duration Following ETF 2	99.13	Korea	Investment trust
Kookmin Bank	Vestas Private Real Estate Investment Trust No.69-3 (USD) (FoFs)2	99.52	Korea	Investment trust
Kookmin Bank	SHINHAN ASP PCF II Private Investment Trust No.2 (USD) 2	99.75	Korea	Investment trust
Kookmin Bank	Vestas Europe Logistics General Private Real Estate Investment Trust No.73-1 2	97.40	Korea	Investment trust
Kookmin Bank	Vestas Europe Logistics General Private Real Estate Investment Trust No.73-2 2	97.40	Korea	Investment trust
Kookmin Bank	KB KBSTAR KTB 10Y Futures Inverse ETF 2	76.27	Korea	Investment trust
Kookmin Bank	VI ESG Private Securities Investment Trust No.1 (Bond) 2	100.00	Korea	Investment trust
Kookmin Bank	SHINHAN AIM Private Real Estate Investment Trust No.26-C (USD)	99.98	Korea	Investment trust
Kookmin Bank	IGIS HSBC UK Senior Direct Lending Private Investment Trust No.465-1 2	99.01	Korea	Investment trust
Kookmin Bank	Mirae Asset ESG Infra Private Investment Trust 1 2	95.24	Korea	Investment trust
Kookmin Bank	KB KBSTAR Mar2025 Term Credit ETF 2	60.98	Korea	Investment trust
Kookmin Bank	KB KBSTAR USD Korean Paper Active ETF 2	96.15	Korea	Investment trust

¹ PRASAC Microfinance Institution PLC. merged with Kookmin Bank Cambodia PLC. on September 1, 2023, and issued 20,272,269 shares in exchange for the merger; the official name of PRASAC Microfinance Institution PLC.(merging entity) has changed to KB PRASAC BANK PLC.

² The Bank controls these investees because it is significantly exposed to variable returns from the investees’ performance and has the ability to affect those returns through its power.

³ The Bank controls the trust because it has power to determine the management performance of the trust and is exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of principal and fixed rate of return.

The Bank holds more than half of the ownership interests of Koreit BN Private Equity Fund and nine other investment trusts but does not have the power over relevant activities in accordance with agreements with trust and other shareholders, therefore these entities are not consolidated.

160

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

38.2 The condensed financial information of major subsidiaries as of and for the years ended December 31, 2023 and 2022, are as follows:

	December 31, 2023							2023
(In millions of Korean won)	Assets		Liabilities		Equity			Operating revenue		Profit (loss) for the period 1			Profit (loss) attributable to shareholders of the Parent Company
Kookmin Bank (China) Ltd.		3,754,281		3,224,225		530,056			200,572		30,328			30,328
KB Microfinance Myanmar Co., Ltd.		18,867		7,640		11,227			5,581		421			421
KB BANK MYANMAR LTD		269,898		13,330		256,568			7,391		3,450			3,450
KB PRASAC BANK PLC. 2		7,367,854		6,009,050		1,358,804			1,551,144		115,652			115,652
Financial status of KB Bukopin-related subsidiaries PT Bank KB Bukopin Tbk		6,526,747		5,913,206		613,541			545,593		(261,263	)		(173,296	)
IDMB UNITED PTE.LTD. 3		215,055		251,861		(36,806	)		12,686		(4,313	)		(1,635	)
SMMK PTE.LTD. 3		124,685		210,827		(86,142	)		2,533		(88,270	)		(67,368	)
Personal pension trust and 10 others		4,113,285		4,000,734		112,551			257,713		69,092			69,092

	December 31, 2022							2022
(In millions of Korean won)	Assets		Liabilities		Equity			Operating revenue		Profit (loss) for the period 1			Profit (loss) attributable to shareholders of the Parent Company
Kookmin Bank (China) Ltd.		3,666,107		3,164,601		501,506			230,027		(869	)		(869	)
KB Microfinance Myanmar Co., Ltd.		20,111		9,475		10,636			5,379		(1,164	)		(1,164	)
KB BANK MYANMAR LTD		262,478		13,655		248,823			3,252		(1,333	)		(1,333	)
KB PRASAC BANK PLC. 2		6,083,323		4,999,794		1,083,529			1,095,307		233,852			233,852
Kookmin Bank Cambodia PLC. 2		677,093		536,616		140,477			40,295		13,581			13,581
Financial status of KB Bukopin-related subsidiaries PT Bank KB Bukopin Tbk		6,533,161		6,661,179		(128,018	)		410,422		(802,084	)		(537,227	)
IDMB UNITED PTE.LTD. 3		214,483		246,032		(31,549	)		6,201		(34,401	)		(31,550	)
Personal pension trust and 10 others		4,120,682		4,077,223		43,459			115,566		(76,182	)		(76,182	)

¹  Includes profit (loss) attributable to non-controlling interests.

²  Kookmin Bank Cambodia PLC. was merged with KB PRASAC BANK PLC. On September 1, 2023. Kookmin Bank Cambodia PLC. had operating income of W 28,822 million and net profit and loss of W 2,001 million for the eight-month period ending August 31, 2023 before the merger.

³  These SPCs are established for the purpose of selling non-performing loans of PT Bank KB Bukopin Tbk. Classified as a subsidiary of KB Kookmin Bank, not a subsidiary of PT Bank KB Bukopin Tbk, the gains and losses on the transfer and sale of loans between PT Bank KB Bukopin Tbk and SPC were removed from the consolidation process of KB Kookmin Bank.

161

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

38.3 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

38.3.1 The Bank has provided capital commitments to consolidated investment funds.

	December 31, 2023
(In millions of Korean won)	Capital commitments		Unused amount
KTB Global CREDebt Private Investment Trust No.52 (USD)		64,470		1,878
Hyundai Invest KKR Europe Real Estate No.1-3 (EUR)		57,064		14,817
Vestas Private Real Estate Investment Trust No.69-3 (USD) (FoFs)		82,522		28,849
SHINHAN ASP PCF II Private Investment Trust No.2 (USD)		25,788		2,015
Vestas Europe Logistics General Private Real Estate Investment Trust No.73-1		71,011		56,922
SHINHAN AIM Private Real Estate Investment Trust No.26-C (USD)		83,811		54,725
IGIS HSBC UK Senior Direct Lending Private Investment Trust No.465-1		32,836		2,172
Mirae Asset ESG Infra Private Investment Trust 1		20,000		19,999

162

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

38.3.2 The Bank has provided purchase commitments and credit lines to consolidated structured entities. The purchase commitment guarantees that the Bank will purchase and pay any remaining commercial paper securities issued by consolidated structured entities. The credit line agreement requires the Bank to provide loans under certain conditions if there is a reason for suspension of issuance of commercial paper securities or if consolidated structured entities become insolvent due to other reasons.

(In millions of Korean won)	December 31, 2023
LOG the 3rd L.L.C.		24,300
KBD TOWER 1ST INC.		50,523
KBH 4TH INC.		6,200
GreatForest 1st L.L.C.		4,200
KBH 6TH INC.		50,119
BEOMEO LAND MARK 2ND INC.		30,600
K Plus 1st L.L.C.		200,309
KB Livv H 1st L.L.C.		30,244
Livv H 1st L.L.C.		50,174
KB Eagles 1st Co., Ltd.		30,258
KB Livv l 1st Co., Ltd.		50,211
KB Eagles 2nd Co., Ltd.		50,311
Ryan Mobility 1st L.L.C.		50,200
KB Chemical 1st Co., Ltd.		50,585
KB Harim 1st L.L.C.		30,182
KB Eagles 3rd Co., Ltd.		50,190
KB Dong-in Central 1st L.L.C.		7,067
LEP 2nd Co., Ltd.		70,000
KB Livv H 2nd Co., Ltd.		30,039
KB Sungnae 1st L.L.C.		62,600
JT Capital 7th Asset Securitization Specialty Company		6,700
KB Pride 1st LLC		850
KB Pride The 2nd Ltd.		16,759
KB One West 1st Co., Ltd.		89,027
KB Cloud L.L.C.		101,326
Liiv H 3rd Co., Ltd.		50,620
KB Star Glass B 1st LLC		72,800
KB Star Oppo 1st LLC		100,844
KB H housing 1st LLC		29,800
KB Liiv DS 1st L.L.C.		50,139
IDMB UNITED PTE.LTD.		264,327
SMMK PTE.LTD.		266,751

163

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

38.3.3 The Bank has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

38.4 Changes in Subsidiaries

KB Star Glass B 1st LLC and 8 other subsidiaries were newly included in the scope of consolidation, and KBL Incheon 1st L.L.C and 21 other subsidiaries were excluded from the scope of consolidation for the year ended December 31, 2023. The exclusions from consolidation did not include the merger of Kookmin Bank Cambodia PLC. and KB PRASAC BANK PLC.

164

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

39. Leases

39.1 The Bank as a Lessee

39.1.1 Amounts recognized in the statements of financial position related to leases as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Right-of-use property and equipment: *
Real estate		309,012		328,375
Vehicles		9,673		8,245
Others		2,417		3,552
		321,102		340,172
Right-of-use intangible assets *		1,595		2,602
		322,697		342,774
Lease liabilities *		316,902		328,708

* Included in property and equipment, intangible assets, and other liabilities.

39.1.2 Amounts recognized in the statements of comprehensive income related to leases for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	2023		2022
Depreciation and amortization of right-of-use assets:
Real estate		183,690		179,219
Vehicles		11,408		9,927
Others		1,464		2,423
Intangible asset		1,007		1,007
		197,569		192,576
Interest expenses on the lease liabilities		9,787		7,541
Expense relating to short-term lease		2,425		2,294
Expense relating to lease of low-value assets that are not short-term lease		2,629		2,071

Total lease cash outflows for the years ended December 31, 2023 and 2022 are W 161,331 million and W 160,642 million, respectively.

39.2 The Bank as an Operating Lessor

The future minimum lease payments to be received from the non-cancellable lease contracts as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	December 31, 2023		December 31, 2022
Up to 1 year		12,034		12,290
1-5 years		11,656		16,654
		23,690		28,944

165

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40. Related Party Transactions

According to Korean IFRS No.1024, the Bank includes the Parent, subsidiaries, the Parent’s subsidiaries, associates, associates of the Parent’s subsidiaries, associates of the Parent, key management personnel (including family members), and post-employment benefit plans of the Bank and its related party companies in the scope of related parties. The Bank discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the financial statements. Refer to Note 13 for details of investments in associates.

Key management personnel include the executives of the Parent Company and the executives (managing director and above) of the Bank, and companies where the executives and/or their close family members have control or joint control.

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		2023		2022
Parent
KB Financial Group Inc.	Fee and commission income		10,063		9,493
	Other operating income		95		—
	Other non-operating income		2,377		1,985
	Interest expense		11,985		6,345
	Other operating expenses		5		—
	General and administrative expenses		1,259		1,262
Subsidiaries
Kookmin Bank Cambodia PLC. 2	Interest income		16,952		8,254
	Fee and commission income		16		48
	Other non-operating income		371		522
Kookmin Bank (China) Ltd.	Interest income		37,053		18,236
	Fee and commission income		161		311
KB Microfinance Myanmar Co., Ltd.	Fee and commission income		4		117
	Reversal of credit losses		—		4
	Other non-operating income		110		206
KB BANK MYANMAR LTD	Other non-operating income		36		81
KB PRASAC BANK PLC.	Interest income		59,118		15,348
	Fee and commission income		3,349		1,954
	Reversal of credit losses		—		18
	Other non-operating income		69		—
	Provision for credit losses		921		—
PT Bank KB Bukopin Tbk	Interest income		82,008		35,417
	Fee and commission income		1,053		353
	Provision for credit losses		21		882
Orient Kwang-yang Co., Ltd.	Interest expense		32		54
Trust	Fee and commission income		10,589		12,906
	Interest expense		20,003		6,833
KB Wise Star Private Real Estate Feeder Fund No.1	Fee and commission income		14		23
Securitization SPE	Interest expense		1		1

166

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
Structured entities	Interest income		4,141		12,434
	Fee and commission income		16,925		13,407
	Gains on financial instruments at fair value through profit or loss		28,869		1,194
	Reversal of credit losses		1,348		95
	Interest expense		3		3
	Losses on financial instruments at fair value through profit or loss		20,723		37,628
	Provision for credit losses		3,289		1,408
NH-Amundi Global Private Securities Investment Trust No.1 (USD) (Bond) 1	Fee and commission income		1		4
KB Core Blind Private Real Estate Fund No.1	Interest income		290		290
	Fee and commission income		11		10
KB Global Private Real Estate Fund No.3 (USD)	Fee and commission income		3		3
KB Global Private Real Estate Fund No.10 (FoFs)	Fee and commission income		8		8
Samsung SRA Private Real Estate Investment Trust No.28D (FoFs)	Fee and commission income		3		3
	Interest expense		2		—
Vestas Investors Private Real Estate Investment Trust No.69-3 (USD) (FoFs)	Fee and commission income		5		4
SHINHAN ASP PCF II Private Investment Trust No.2 (USD)	Gains on financial instruments at fair value through profit or loss		—		337
IDMB UNITED PTE.LTD	Interest income		—		63
	Fee and commission income		3,517		1,887
	Reversal of credit losses		6		—
	Provision for credit losses		—		985
SMMK PTE.LTD.	Interest income		233		—
	Fee and commission income		2,550		—
	Provision for credit losses		995		—
KB Haeorum Private Securities Fund No.83 (Bond) 1	Fee and commission income		—		10
Samsung Credit Value Plus Professional Investment Type Private Securities Fund (Bond) 1	Fee and commission income		—		2
KB Emerging Markets Dept Private Securities Fund(USD)(Bond) 1	Fee and commission income		—		1
KIM Basic Private Securities Fund No.102 (Bond) 1	Fee and commission income		—		3
NH-Amundi Private Securities Investment Trust S5(USD)(BOND) 1	Fee and commission income		—		3
KB Leaders Private Securities Fund No.23(Bond-Derivatives) 1	Fee and commission income		—		3
Hanwha ARIRANG 3 Year Korea Treasury Bond Futures ETF [Bond-Derivatives] 1	Fee and commission income		—		2

167

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
Parent’s subsidiaries
KB Securities Co., Ltd.	Interest income		12,664		7,571
	Fee and commission income		33,658		26,105
	Gains on financial instruments at fair value through profit or loss		157,397		235,328
	Other non-operating income		5,491		4,613
	Interest expense		10,876		4,533
	Fee and commission expense		985		2,177
	Losses on financial instruments at fair value through profit or loss		228,537		168,852
	Provision for credit losses		339		106
	Other non-operating expense		—		1
	General and administrative expenses		4,052		3,233
KB Asset Management Co., Ltd.	Fee and commission income		2,034		2,053
	Gains on financial instruments at fair value through profit or loss		—		1,050
	Other non-operating income		3		—
	Interest expense		235		143
	Fee and commission expense		93		130
	Losses on financial instruments at fair value through profit or loss		—		9
	General and administrative expenses		500		500
KB Real Estate Trust Co., Ltd.	Fee and commission income		292		315
	Other non-operating income		66		34
	Interest expense		205		258
	Fee and commission expense		6,382		1,641
KB Investment Co., Ltd.	Fee and commission income		78		109
	Other non-operating income		3		—
	Interest expense		2,674		1,647
KB Credit Information Co., Ltd. 3	Fee and commission income		66		75
	Other non-operating income		407		165
	Interest expense		452		139
	Fee and commission expense		22,401		18,142
KB Data System Co., Ltd.	Fee and commission income		3,083		788
	Other non-operating income		236		185
	Interest expense		364		164
	Other operating expenses		491		419
	General and administrative expenses		98,049		110,623

168

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Kookmin Card Co., Ltd.	Interest income		16,238		9,324
	Fee and commission income		156,430		161,910
	Gains on financial instruments at fair value through profit or loss		—		2,087
	Reversal of credit losses		—		178
	Other non-operating income		2,393		1,473
	Interest expense		1,793		722
	Fee and commission expense		1,960		1,742
	Losses on financial instruments at fair value through profit or loss		3,019		1,399
	Provision for credit losses		1,404		—
	General and administrative expenses		19		1,469
KB Savings Bank Co., Ltd.	Fee and commission income		796		455
	Other non-operating income		71		31
	Interest expense		18		10
	General and administrative expenses		4		3
KB Capital Co., Ltd.	Interest income		2,786		2,186
	Fee and commission income		4,184		3,759
	Gains on financial instruments at fair value through profit or loss		298		—
	Other non-operating income		629		171
	Interest expense		698		248
	Fee and commission expense		111		119
	Losses on financial instruments at fair value through profit or loss		29		—
	Provision for credit losses		12		28
	General and administrative expenses		87		—
KB Insurance Co., Ltd.	Interest income		6		569
	Fee and commission income		28,124		27,195
	Gains on financial instruments at fair value through profit or loss		69,434		137,527
	Reversal of credit losses		—		9
	Other non-operating income		2,498		2,036
	Interest expense		379		180
	Fee and commission expense		3,401		3,953
	Losses on financial instruments at fair value through profit or loss		60,534		33,916
	Other operating expenses		5		3
	Provision for credit losses		26		—
	General and administrative expenses		13,398		13,745

169

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Life Insurance Co., Ltd.	Interest income		1,508		149
	Fee and commission income		16,530		21,593
	Gains on financial instruments at fair value through profit or loss		8,209		47,343
	Reversal of credit losses		208		—
	Other non-operating income		591		145
	Interest expense		3,400		4,058
	Fee and commission expense		1,581		4,715
	Losses on financial instruments at fair value through profit or loss		1,594		2,698
	Other operating expenses		17		1
	Provision for credit losses		—		224
	General and administrative expenses		2,016		1,853
KB STAR REIT Co., Ltd.	Interest income		—		374
	Fee and commission income		137		33
	Gains on financial instruments at fair value through profit or loss		27,731		96
	Interest expense		1,117		9
	Losses on financial instruments at fair value through profit or loss		4,568		13,565
KB Hanbando BTL Private Special Asset Fund No.1	Fee and commission income		96		108
KB AMP Infra Private Special Asset Fund No.1	Fee and commission income		7		8
KB AMP Infra Private Special Asset Fund No.13	Fee and commission income		9		5
	Gains on financial instruments at fair value through profit or loss		1,327		—
	Losses on financial instruments at fair value through profit or loss		1,041		—
KB Muni bond Private Securities Fund No.1 (USD)	Fee and commission income		10		11
KB Global Private Real Estate Fund No.1 (FoFs)	Fee and commission income		11		11
KB Global Private Real Estate Fund No.11 (FoFs)	Fee and commission income		5		3
KB Global Private Real Estate Fund No.15	Fee and commission income		15		10
	Gains on financial instruments at fair value through profit or loss		734		—
	Losses on financial instruments at fair value through profit or loss		340		—
KB Global Private Real Estate Fund No.17 (FoFs)	Fee and commission income		4		4
KB Global Private Real Estate Fund No.22 (FoFs)	Fee and commission income		1		—
	Gains on financial instruments at fair value through profit or loss		293		—
	Losses on financial instruments at fair value through profit or loss		13		—

170

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023			2022
KB Global Private Real Estate Fund No.27 (FoFs)	Fee and commission income		11			—
	Gains on financial instruments at fair value through profit or loss		2,375			—
KB Global Private Real Estate Fund No.29 (FoFs)	Fee and commission income		4			—
KB Global Private Real Estate Fund No.30 (FoFs)	Gains on financial instruments at fair value through profit or loss		84			—
KB Star Office Private Real Estate Feeder Fund No.4	Interest income		760			760
	Fee and commission income		37			37
	Reversal of credit losses		1			—
	Interest expense		(2	)		7
	Provision for credit losses		—			1
KB Global Core Bond Securities Feeder Fund(Bond)	Fee and commission income		14			16
	Gains on financial instruments at fair value through profit or loss		—			459
	Losses on financial instruments at fair value through profit or loss		—			61
KB New Renewable Energy Private Special Asset Fund No.1	Fee and commission income		9			9
KB North America Private Real Estate Debt Fund No.1	Fee and commission income		3			3
	Gains on financial instruments at fair value through profit or loss		1,798			2,202
	Losses on financial instruments at fair value through profit or loss		591			51
KB North America Private Real Estate Debt Fund No.3	Fee and commission income		11			10
	Gains on financial instruments at fair value through profit or loss		10,096			9,525
	Losses on financial instruments at fair value through profit or loss		5,802			2,259
KB Europe Renewable Private Special Asset Fund No.2 (EUR)(SOC-FoFs)	Fee and commission income		6			5
KB Global Infrastructure Synergy Private Special Asset Fund (Monetary Receivables)	Fee and commission income		4			5
	Gains on financial instruments at fair value through profit or loss		917			76
KB BMO Senior Loan Private Special Asset Fund No.1	Fee and commission income		11			10
	Gains on financial instruments at fair value through profit or loss		3,037			2,515
	Losses on financial instruments at fair value through profit or loss		—			2,001
KB BMO Senior Loan Private Special Asset Fund No.2 (USD)	Fee and commission income		10			10
KB BMO Senior Loan Private Special Asset Fund No.4 (USD)	Fee and commission income		8			4
	Gains on financial instruments at fair value through profit or loss		1,622			—

171

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB BMO Senior Loan Private Special Asset Fund No.5 (Loan-FOFs)	Fee and commission income		13		6
	Gains on financial instruments at fair value through profit or loss		5,862		—
	Losses on financial instruments at fair value through profit or loss		2,075		—
KB New Renewable Green New Deal Private Special Asset No.2	Fee and commission income		11		8
KB Sinansan Line Private Special Asset Fund (SOC)	Fee and commission income		33		23
KB Multi Alpha Plus Private Fund No.1 1	Fee and commission income		7		8
KB MCF Senior Loan Private Special Asset Fund No.3 (Loan-FoFs)	Fee and commission income		62		23
KB New Deal Infra Private Special Asset Fund	Fee and commission income		9		2
KB Korea Infrastructure Credit Guarantee Private Special Asset No.1	Fee and commission income		16		16
KB Wise Star Private Real Estate No.19	Fee and commission income		4		6
Hanwha Europe Credit Private Fund No.16 (FOF)	Gains on financial instruments at fair value through profit or loss		3,001		514
	Losses on financial instruments at fair value through profit or loss		775		746
KB Logistics Blind Private Real Estate Fund No.1	Interest income		2,415		1,129
	Fee and commission income		88		48
	Provision for credit losses		4		2
KB Aircraft Private Special Asset Fund No.1	Interest expense		12		13
	Gains on financial instruments at fair value through profit or loss		5,874		74
	Losses on financial instruments at fair value through profit or loss		37		1,761
KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond)	Fee and commission income		24		15
KB Oaktree Private Special Asset Fund No.3	Fee and commission income		3		2
KB GK Project Private Special Asset Fund No.3	Fee and commission income		43		44
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) 1	Fee and commission income		1		11
	Gains on financial instruments at fair value through profit or loss		1,254		—
	Losses on financial instruments at fair value through profit or loss		—		2,891
KB Korea Short Term Premium Private Securities No.26(USD)(Bond) 1	Fee and commission income		1		7
	Gains on financial instruments at fair value through profit or loss		1,073		—
	Losses on financial instruments at fair value through profit or loss		—		1,839
KB Korea Short Term Premium Private Securities No.27(USD)(Bond) 1	Fee and commission income		2		11
	Losses on financial instruments at fair value through profit or loss		451		3,502

172

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Korea Short Term Premium Private Securities No.32(USD)(Bond) 1	Fee and commission income		2		5
	Gains on financial instruments at fair value through profit or loss		—		5,377
	Losses on financial instruments at fair value through profit or loss		2,697		—
KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) 1	Fee and commission income		7		—
	Gains on financial instruments at fair value through profit or loss		—		1,557
	Losses on financial instruments at fair value through profit or loss		3,152		—
KB Korea Short Term Premium Private Securities Fund No.34(USD)(Bond)	Fee and commission income		9		—
	Gains on financial instruments at fair value through profit or loss		199		—
	Losses on financial instruments at fair value through profit or loss		2,396		—
KB Korea Short Term Premium Private Securities Fund No.35(USD)(Bond)	Fee and commission income		6		—
	Losses on financial instruments at fair value through profit or loss		2,386		—
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)	Fee and commission income		1		—
	Gains on financial instruments at fair value through profit or loss		746		—
KB IDF Infra Note Private SpecialAsset Fund 14	Fee and commission income		9		5
	Gains on financial instruments at fair value through profit or loss		1,184		—
	Losses on financial instruments at fair value through profit or loss		2,102		—
KB ASF Infra Private Special Asset Fund(FoFs)	Fee and commission income		2		1
	Gains on financial instruments at fair value through profit or loss		325		48
	Losses on financial instruments at fair value through profit or loss		—		587
KB Duke Private Special Asset Fund	Fee and commission income		4		4
KB Core Blind Private Real Estate Fund No.2	Fee and commission income		3		—
KB Star Reits Private Real Estate Feeder Fund No.1 (FoFs)	Fee and commission income		4		2
KB Star Reits Private Real Estate Feeder Fund No.2 (FoFs)	Fee and commission income		7		4
KB Development Blind Private Real Estate Fund No.2 (FoFs)	Fee and commission income		1		—
HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A.	Fee and commission income		2		1
NB Private Debt Fund IV LUX (B) SCSP	Fee and commission income		3		1
KB Europe Renewable Private Special Asset Fund No.3	Fee and commission income		3		1
	Gains on financial instruments at fair value through profit or loss		244		—
	Losses on financial instruments at fair value through profit or loss		204		—
KB NA Jefferies Private SpecialAsset Fund 1(USD)	Fee and commission income		2		—
KB Money Market Active ETF (Bond)	Fee and commission income		13		—

173

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
KB Renewable Private SpecialAsset Fund 3	Fee and commission income		1		—
KB Europe ICG PDF Private Special Asset Fund 4(FoFs)	Gains on financial instruments at fair value through profit or loss		72		—
KB Star Institutional USD MMF1(USD)	Fee and commission income		4		—
KB Senior Private Special Asset Fund No.5-1	Fee and commission income		1		—
KB Core Plus Blind Private RealEstate Fund 1	Fee and commission income		2		—
KB Wise Star Private Real Estate22	Interest income		344		—
	Fee and commission income		3,847		—
	Provision for credit losses		3		—
KB Daegu Busan Highway Private Special Asset Fund(SOC)	Fee and commission income		1		—
KB NA COMPASS Energy Private Special Asset Fund 1	Fee and commission income		—		2
KB Korea Short Term Premium Private Securities No.21(USD) 1	Fee and commission income		—		1
KB Korea Short Term Premium Private Securities No.22(USD) 1	Fee and commission income		—		8
	Losses on financial instruments at fair value through profit or loss		—		510
KB Korea Short Term Premium Private Securities No.23(USD) 1	Fee and commission income		—		12
	Losses on financial instruments at fair value through profit or loss		—		15,167
KB Korea Short Term Premium Private Securities No.28(USD)(Bond) 1	Fee and commission income		—		10
	Losses on financial instruments at fair value through profit or loss		—		11,191
Associates
Korea Credit Bureau Co., Ltd.	Fee and commission income		52		52
	Interest expense		1		1
	Fee and commission expense		2,444		1,996
	Other operating expenses		15		15
Incheon Bridge Co., Ltd.	Interest income		10,420		7,516
	Fee and commission income		28		23
	Gains on financial instruments at fair value through profit or loss		334		—
	Reversal of credit losses		—		28
	Interest expense		979		517
	Fee and commission expense		7		6
	Losses on financial instruments at fair value through profit or loss		—		4,434
	Provision for credit losses		52		—
MJT&I Corp	Other non-operating expense		1		—
Kendae Co., Ltd.	Other non-operating expense		—		3
Dongjo Co., Ltd.	Interest income		36		9
Skydigital Inc.	Fee and commission income		3		3
II-kwang Electronic Materials Co., Ltd.	Other non-operating expenses		—		1
Somyung Metal Inc.	Other non-operating expenses		—		2
TMAPMOBILITY CO.,LTD.	Interest expense		1,460		226

174

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
TAEYEONG PRECISION IND. CO.,LTD.	Interest income		2		—
KB High-Tech Company Investment Fund	Interest expense		39		3
Aju Good Technology Venture Fund	Interest expense		111		108
KB-KDBC Pre-IPO New Technology Business Investment Fund	Interest expense		—		1
KB Digital Innovation & Growth New Technology Business Investment Fund	Interest expense		1		4
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Interest expense		4		6
KB Global Platform Fund	Interest expense		149		114
WJ Private Equity Fund No.1	Fee and commission income		7		7
KB Bio Global Expansion Private Equity Fund No.1	Interest expense		49		9
KB Digital Platform Fund	Interest expense		71		116
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP	Interest expense		42		—
Associates of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10	Interest income		5,934		3,098
	Interest expense		104		60
	Provision for credit losses		4		1
KB Star Office Private Real Estate Investment Trust No.1 1	Interest expense		—		2
Associates of Parent’s subsidiaries
KG Capital Co., Ltd. 1	Fee and commission income		2		4
Food Factory Co., Ltd.	Interest income		62		80
	Fee and commission income		—		1
	Reversal of credit losses		2		1
	Interest expense		1		6
BIKDIPEO CO.,LTD.	Interest expense		—		1
Banksalad Co., Ltd.	Fee and commission income		37		36
Spark Biopharma Inc.	Interest expense		468		272
UPRISE, Inc.	Interest expense		—		3
Channel Corporation	Interest expense		67		43
COSES GT Co., Ltd.	Interest income		21		23
	Reversal of credit losses		5		—
	Interest expense		—		1
	Provision for credit losses		—		3
Gomi corporation Inc.	Interest income		88		61
	Fee and commission income		1		1
	Interest expense		—		2
	Provision for credit losses		47		2
S&E bio Co., Ltd.	Interest expense		43		2
Contents First Inc.	Interest income		346		128
	Fee and commission income		1		1
	Interest expense		73		34
	Provision for credit losses		3		1
Mantisco Co., Ltd.	Interest expense		—		1
Pin Therapeutics Inc.	Interest expense		101		110
SuperNGine Co., Ltd.	Interest income		25		—
	Fee and commission income		1		—
	Provision for credit losses		6		—

175

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023			2022
Desilo Inc.	Interest income		13			9
	Provision for credit losses		3			—
Turing Co., Ltd.	Interest income		24			—
	Interest expense		7			1
	Provision for credit losses		14			—
IGGYMOB Co., Ltd.	Interest expense		—			1
Kukka Co., Ltd.	Interest expense		—			2
Zipdoc Inc.	Interest expense		—			1
Grinergy			1			—
KB No.21 Special Purpose Acquisition Company	Interest expense		68			30
TeamSparta Inc.	Interest expense		212			19
Chabot Mobility Co., Ltd.	Interest expense		—			1
Wemade Connect Co., Ltd.	Interest expense		316			81
KB No.22 Special Purpose Acquisition Company	Interest expense		2			1
KB No.23 Special Purpose Acquisition Company 1	Interest expense		46			23
KB No.24 Special Purpose Acquisition Company 1	Interest expense		7			1
KB No.25 Special Purpose Acquisition Company	Interest expense		39			—
KB No.26 Special Purpose Acquisition Company	Interest expense		38			—
KB No.27 Special Purpose Acquisition Company	Interest expense		65			—
Nextrade Co., Ltd.	Interest expense		2,911			263
Bitgoeul Cheomdan Green 1st Co., Ltd.	Interest expense		1			—
3D Interactive Co., Ltd.	Fee and commission income		7			—
	Interest expense		10			—
Bigwave Robotics Crop.	Interest income		(1	)		—
	Interest expense		1			—
KBFT Green Growth No.1 New Technology Business Investment Association	Interest expense		14			—
KB No.17 Special Purpose Acquisition Company 1	Interest expense		—			1
KB No.18 Special Purpose Acquisition Company 1	Interest expense		—			5
KB No.19 Special Purpose Acquisition Company 1	Interest expense		—			5
KB No.20 Special Purpose Acquisition Company 1	Interest expense		—			22
SwatchOn Inc. 1	Fee and commission income		—			5
	Interest expense		—			5
GENINUS Inc. 1	Interest expense		—			12

176

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		2023		2022
Others
Retirement pension	Fee and commission income		1,567		1,352
	Interest expense		27		39

¹  Excluded from the Bank’s related party as of December 31, 2023.

²  Kookmin Bank Cambodia PLC. merged with KB PRASAC BANK PLC. and extinguished on September 1, 2023.

³  KB Credit Information Co., Ltd. become the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

177

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent
KB Financial Group Inc.	Other assets		45		97
	Deposits		114,336		231,056
	Other liabilities		309,665		828,908
Subsidiaries
Kookmin Bank Cambodia PLC. 2	Cash and due from financial institutions		—		4,192
	Loans measured at amortized cost (gross amount)		—		430,882
	Other assets		—		3,795
	Deposits		—		2,364
	Other liabilities		—		336
Kookmin Bank (China) Ltd.	Cash and due from financial institutions		83,270		65,523
	Loans measured at amortized cost (gross amount)		889,686		728,698
	Other assets		8,456		5,177
	Deposits		4,251		1,960
	Borrowings		167,173		267,164
KB Microfinance Myanmar Co., Ltd.	Other assets		4		—
	Provisions		46		45
	Other liabilities		13		25
KB BANK MYANMAR LTD	Deposits		14,688		383
	Other liabilities		9		7
KB PRASAC BANK PLC.	Cash and due from financial institutions		1,755		—
	Loans measured at amortized cost (gross amount)		879,616		419,793
	Allowances for credit losses		849		290
	Other assets		9,970		2,677
	Deposits		2,882		—
	Provisions		493		135
	Other liabilities		3,892		1,967
PT Bank KB Bukopin Tbk	Cash and due from financial institutions		23		242,944
	Financial assets at fair value through profit or loss		255,037		247,956
	Loans measured at amortized cost (gross amount)		942,861		1,112,350
	Allowances for credit losses		879		860
	Other assets		9,619		12,073
	Deposits		591		6,158
	Other liabilities		1,702		2,695
Orient Kwang-yang Co., Ltd.	Financial assets at fair value through profit or loss		7		7
	Deposits		3,866		4,040
	Other liabilities		85		53
Trust	Other assets		10,759		14,024
	Other liabilities		571,079		519,934
KB Wise Star Private Real Estate Feeder Fund No.1	Other assets		4		5

178

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
Securitization SPE	Deposits		1,003		1,014
Structured entities	Derivative assets		5,519		—
	Loans measured at amortized cost (gross amount)		48,701		676,866
	Allowances for credit losses		278		1,366
	Other assets		225		345
	Derivative liabilities		7,826		31,627
	Deposits		2,049		3,735
	Provisions		3,345		316
	Other liabilities		1,367		3,806
NH-Amundi Global Private Securities Investment Trust No.1 (USD) (Bond) 1	Other assets		—		1
KB Core Blind Private Real Estate Fund No.1	Loans measured at amortized cost (gross amount)		10,000		10,000
	Other assets		20		20
KB Global Private Real Estate Debt Fund No.10 (FoFs)	Other assets		1		1
Samsung SRA Private Real Estate Investment Trust No.28D (FoFs)	Deposits		127		62
	Other liabilities		—		122
Vestas Investors Private Real Estate Fund Investment Trust No.69-3 (USD) (FoFs)	Other assets		1		1
IDMB UNITED PTE.LTD.	Deposits		49		241
	Provisions		979		985
	Other liabilities		1,622		1,547
SMMK PTE.LTD.	Loans measured at amortized cost (gross amount)		1,444		—
	Allowances for credit losses		7		—
	Other assets		4		—
	Provisions		987		—
	Other liabilities		2,202		—
Mirae Asset ESG Infra Private Investment Trust 1	Other liabilities		1		—
Parent’s subsidiaries
KB Securities Co., Ltd.	Derivative assets		66,731		134,303
	Loans measured at amortized cost (gross amount)		266,290		141,922
	Allowances for credit losses		516		358
	Other assets		7,762		6,186
	Derivative liabilities		53,280		33,258
	Deposits		381,480		863,597
	Provisions		216		36
	Other liabilities		26,398		27,511
KB Asset Management Co., Ltd.	Other assets		441		413
	Deposits		11,709		25,950
	Other liabilities		25		16
KB Real Estate Trust Co., Ltd.	Other assets		2		2
	Deposits		23,135		48,600
	Other liabilities		341		358

179

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Investment Co., Ltd.	Deposits		66,778		81,064
	Other liabilities		640		707
KB Credit Information Co., Ltd. 3	Deposits		—		13,430
	Other liabilities		—		5,475
KB Data System Co., Ltd.	Other assets		453		317
	Deposits		16,507		19,254
	Other liabilities		7,457		7,362
KB Kookmin Card Co., Ltd.	Loans measured at amortized cost (gross amount)		170,201		177,422
	Allowances for credit losses		444		207
	Other assets		21,085		22,600
	Derivative liabilities		3,018		884
	Deposits		155,210		108,935
	Provisions		1,589		423
	Other liabilities		69,531		55,121
KB Savings Bank Co., Ltd.	Other liabilities		689		606
KB Capital Co., Ltd	Loans measured at amortized cost (gross amount)		31,590		35,484
	Allowances for credit losses		82		52
	Other assets		252		528
	Derivative liabilities		29		—
	Deposits		227,874		708,515
	Provisions		163		182
	Other liabilities		2,996		3,067
KB Insurance Co., Ltd.	Derivative assets		95,728		137,320
	Loans measured at amortized cost (gross amount)		—		18,390
	Allowances for credit losses		—		5
	Other assets		14,537		12,574
	Derivative liabilities		28,401		29,632
	Deposits		141,775		62,199
	Provisions		33		7
	Other liabilities		13,441		13,241
KB Life Insurance Co., Ltd.	Derivative assets		9,714		14,355
	Loans measured at amortized cost (gross amount)		30,271		—
	Allowances for credit losses		19		—
	Other assets		5,848		5,382
	Derivative liabilities		1,228		2,702
	Deposits		13,134		8,567
	Debentures		20,000		30,000
	Provisions		2		224
	Other liabilities		35,062		44,996
KB STAR REIT Co., Ltd.	Derivative assets		19,443		—
	Other assets		64		21
	Derivative liabilities		—		8,089
	Deposits		35,975		35,053
	Other liabilities		331		1
KB Hanbando BTL Private Special Asset Fund No.1	Other assets		23		26
KB IDF Infra Private Special Asset Fund No.1	Other assets		1		1

180

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB IDF Infra Private Special Asset Fund No.13	Other assets		3		2
	Derivative liabilities		494		—
KB Muni bond Private Securities Fund No.1 (USD)	Other assets		2		2
KB Global Private Real Estate Fund No.1(FoFs)	Other assets		3		3
KB Global Private Real Estate Fund No.11 (FoFs)	Other assets		1		1
KB Global Private Real Estate Fund No.15 (FoFs)	Derivative assets		59		—
	Other assets		3		2
	Derivative liabilities		1,712		—
KB Global Private Real Estate Fund No.17 (FoFs)	Other assets		1		1
KB Global Private Real Estate Fund No.22 (FoFs)	Derivative assets		272		—
KB Global Private Real Estate Fund No.27 (FoFs)	Derivative assets		1,982		—
	Other assets		1		—
KB Global Private Real Estate Fund No.30 (FoFs)	Derivative liabilities		84		—
KB Star Office Private Real Estate Feeder Fund No.4	Loans measured at amortized cost (gross amount)		20,000		20,000
	Allowances for credit losses		3		4
	Other assets		13		13
	Deposits		—		215
	Other liabilities		—		4
KB Global Core Bond Securities Feeder Fund(Bond)	Other assets		2		2
KB New Renewable Energy Private Special Asset Fund No.1	Other assets		2		2
KB North America Private Real Estate Debt Fund No.1	Other assets		1		1
	Derivative liabilities		399		51
KB North America Private Real Estate Debt Fund No.3	Derivative assets		—		2,411
	Other assets		3		3
	Derivative liabilities		3,822		—
KB Europe Renewable Private Special Asset Fund No.2 (EUR)(SOC-FoFs)	Other assets		2		1
KB Global Infrastructure Synergy Private Special Asset Fund (Monetary Receivables)	Derivative assets		799		—
	Other assets		1		1
KB BMO Senior Loan Private Special Asset Fund No.1	Other assets		3		3
	Derivative liabilities		—		2,001
KB BMO Senior Loan Private Special Asset Fund No.2(USD)	Other assets		2		2
KB BMO Senior Loan Private Special Asset Fund No.4(USD)	Other assets		2		2
KB BMO Senior Loan Private Special Asset Fund No.5 (Loan-FOFs)	Other assets		3		3
	Derivative liabilities		1,846		—

181

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB New Renewable Green New Deal Private Special Asset No.2	Other assets		3		2
KB Sinansan Line Private Special Asset Fund(SOC)	Other assets		9		7
KB Multi Alpha Plus Private Fund No.1 1	Other assets		—		2
KB MCF Senior Loan Private Special Asset Fund No.3 (Loan-FoFs)	Other assets		16		6
KB New Deal Innovation Fund	Other assets		3		1
KB Korea Infrastructure Credit Guarantee Private Special Asset No.1	Other assets		3		3
Hanwha Europe Credit Private Fund No.16 (FOF)	Derivative assets		90		—
	Derivative liabilities		644		744
KB Logistics Blind Private Real Estate Fund No.1	Loans measured at amortized cost (gross amount)		52,500		52,500
	Allowances for credit losses		6		2
	Other assets		366		374
KB Aircraft Private Special Asset Fund No.1	Other assets		2		2
	Derivative liabilities		—		5,096
KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond)	Other assets		3		1
KB GK Project Private Special Asset Fund No.3	Other assets		5		5
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) 1	Other assets		—		5
	Derivative liabilities		—		2,891
KB Korea Short Term Premium Private Securities No.26(USD)(Bond) 1	Other assets		—		3
	Derivative liabilities		—		1,839
KB Korea Short Term Premium Private Securities No.27(USD)(Bond) 1	Other assets		—		5
	Derivative liabilities		—		3,502
KB Korea Short Term Premium Private Securities No.32(USD)(Bond) 1	Derivative assets		—		5,377
	Other assets		—		5
KB Korea Short Term Premium Private Securities No.33(USD)(Bond) 1	Derivative Assets		—		1,557
KB Korea Short Term Premium Private Securities No.34(USD)(Bond)	Derivative assets		199		—
KB Korea Short Term Premium Private Securities No.35(USD)(Bond)	Other Assets		1		—
	Derivative liabilities		2,386		—

182

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)	Derivative assets		746		—
	Other assets		1		—
KB IDF Infra Note Private SpecialAsset Fund 14	Other Assets		3		—
	Derivative liabilities		997		—
KB ASF Infra Private Special Asset Fund(FoFs)	Other assets		1		1
	Derivative liabilities		—		479
KB Duke Private Special Asset Fund	Other assets		1		1
KB Core Blind Private Real Estate Fund No.2	Other assets		1		—
KB Star Reits Private Real Estate Feeder Fund No.1(FoFs)	Other assets		2		2
KB Star Reits Private Real Estate Feeder Fund No.2(FoFs)	Other assets		3		4
KB PF Blind Private Real Estate Fund 2	Other assets		1		—
HSBC Senior UK Direct Lending Fund 2020 RAIF SICAV-S.A.	Other assets		1		1
NB Private Debt Fund IV LUX (B) SCSP	Other assets		1		1
KB Europe Renewable Private Special Asset Fund No.3	Derivative Assets		99		—
	Other assets		1		—
KB NA Jefferies Private SpecialAsset Fund 1(FoFs)	Other assets		2		—
KB Money Market Active ETF (Bond)	Other assets		3		—
KB Renewable Private SpecialAsset Fund 3	Other assets		1		—
KB Europe ICG PDF Private Special Asset Fund 4(FoFs)	Derivative Assets		55		—
KB Star Institutional USD MMF1(USD)	Other assets		2		—
KB Senior Private Special Asset Fund No.5-1	Other assets		1		—
KB Core Plus Blind Private RealEstate Fund 1	Other assets		2		—
KB Wise Star Private Real Estate22	Loans measured at amortized cost (gross amount)		38,000		—
	Allowances for credit losses		3		—
	Other assets		350		—
KB Daegu Busan Highway Private Special Asset Fund(SOC)	Other assets		1		—
Associates
Korea Credit Bureau Co., Ltd.	Deposits		17,003		27,889
Incheon Bridge Co., Ltd.	Financial assets at fair value through profit or loss		33,282		32,948
	Loans measured at amortized cost (gross amount)		80,500		95,200

183

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
	Allowances for credit losses		34		8
	Other assets		528		615
	Deposits		40,992		48,639
	Provisions		33		7
	Other liabilities		504		446
Jungdo Co., Ltd.	Deposits		4		4
Dae-A Leisure Co., Ltd.	Deposits		150		154
Iwon Alloy Co., Ltd.	Deposits		1		1
Computerlife Co., Ltd.	Deposits		—		3
Skydigital Inc.	Deposits		65		10
TMAPMOBILITY CO.,LTD.	Deposits		80,016		30,000
	Other liabilities		759		76
KB High-Tech Company Investment Fund	Deposits		2,935		688
	Other liabilities		18		—
Aju Good Technology Venture Fund	Deposits		1,202		7,222
	Other liabilities		1		73
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		46		317
KB Digital Innovation & Growth New Technology Business Investment Fund	Deposits		572		674
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Deposits		—		1,526
	Other liabilities		—		1
KB Global Platform Fund	Deposits		5,774		19,655
	Other liabilities		4		12
WJ Private Equity Fund No.1	Other assets		2		2
	Deposits		103		221
KB Bio Global Expansion Private Equity Fund No.1	Deposits		1,400		1,400
	Other liabilities		10		9
KB Digital Platform Fund	Deposits		—		15,000
	Other liabilities		—		2
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP	Deposits		3,790		—
	Other liabilities		42		—
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10	Loans measured at amortized cost (gross amount)		149,590		149,294
	Allowances for credit losses		5		1
	Other assets		3,191		3,208
Associates of Parent’s subsidiaries
KG Capital Co., Ltd. 1	Deposits		—		10
RAND Bio Science Co., Ltd.	Deposits		4		3
Food Factory Co., Ltd.	Loans measured at amortized cost (gross amount)		2,133		3,337

184

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
	Allowances for credit losses		2		4
	Other assets		5		4
	Deposits		629		664
	Other liabilities		1		1
Paycoms Co., Ltd. 1	Deposits		—		1
Big Dipper Co., Ltd.	Deposits		40		19
Spark Biopharma Inc.	Deposits		11,419		17,534
	Other liabilities		90		91
Wyatt Corp.	Deposits		1		1
UPRISE, Inc.	Deposits		—		27
CellinCells Co., Ltd.	Deposits		37		37
Channel Corporation	Deposits		2,030		3,000
	Other liabilities		11		21
COSES GT Co., Ltd.	Loans measured at amortized cost (gross amount)		—		500
	Allowances for credit losses		—		4
	Other assets		—		2
	Deposits		1		1,213
Gomi corporation Inc.	Loans measured at amortized cost (gross amount)		2,150		2,200
	Allowances for credit losses		61		15
	Other assets		5		5
	Deposits		78		915
	Other liabilities		1		1
S&E Bio Co., Ltd.	Deposits		2,342		6,419
	Other liabilities		13		1
4N Inc.	Deposits		49		5
Xenohelix Co., Ltd	Deposits		904		—
Contents First Inc.	Loans measured at amortized cost (gross amount)		10,000		10,017
	Allowances for credit losses		4		1
	Other assets		4		2
	Deposits		1,072		5,010
	Other liabilities		6		21
December & Company Inc. 1	Deposits		—		1
Mantisco Co., Ltd.	Deposits		46		623
Pin Therapeutics Inc.	Deposits		265		6,033
	Other liabilities		—		18
SuperNGine Co., Ltd.	Loans measured at amortized cost (gross amount)		600		—
	Allowances for credit losses		6		—
	Other assets		1		—
	Deposits		69		17
Desilo Inc.	Loans measured at amortized cost (gross amount)		300		300
	Allowances for credit losses		5		2
	Deposits		3		1
Turing Co., Ltd.	Loans measured at amortized cost (gross amount)		1,901		—
	Allowances for credit losses		14		—
	Other assets		11		—
	Deposits		1,726		2,788
	Other liabilities		6		—

185

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
IGGYMOB Co., Ltd.	Deposits		—		254
ZIPDOC Inc.	Deposits		181		915
KB No.21 Special Purpose Acquisition Company	Deposits		2,261		2,263
	Other liabilities		38		29
TeamSparta Inc.	Deposits		7,672		12,502
	Other liabilities		62		6
Chabot Mobility Co., Ltd.	Deposits		164		86
Wemade Connect Co., Ltd.	Deposits		8,843		10,370
	Other liabilities		53		28
KB No.22 Special Purpose Acquisition Company	Deposits		1,848		1,948
KB No.23 Special Purpose Acquisition Company 1	Deposits		—		2,205
	Other liabilities		—		22
KB No.24 Special Purpose Acquisition Company 1	Deposits		—		9,983
	Other liabilities		—		1
KB No.25 Special Purpose Acquisition Company	Deposits		1,586		—
	Other liabilities		39		—
KB No.26 Special Purpose Acquisition Company	Deposits		1,761		—
	Other liabilities		37		—
KB No.27 Special Purpose Acquisition Company	Deposits		4,497		—
	Other liabilities		65		—
Nextrade Co., Ltd.	Deposits		56,203		56,202
	Other liabilities		3,174		263
Bitgoeul Cheomdan Green 1st Co., Ltd.	Deposits		833		—
3D Interactive Co., Ltd.	Deposits		1,501		—
Bigwave Robotics Crop.	Deposits		4		—
New Daegu Busan Expressway Co., Ltd.	Loans measured at amortized cost (gross amount)		72,742		—
	Allowances for credit losses		4		—
	Other assets		57		—
	Deposits		146,169		—
	Other liabilities		1,891		—
AIM FUTURE, Inc.	Loans measured at amortized cost (gross amount)		900		—
	Allowances for credit losses		2		—
	Other assets		1		—
	Deposits		3,393		—
	Other liabilities		48		—
Novorex Inc.	Deposits		7		—
KBFT Green Growth No.1 New Technology Business Investment Association	Deposits		700		—
	Other liabilities		14		—

186

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
Key management personnel	Loans measured at amortized
Key management personnel	cost (gross amount)		4,119		4,391
	Allowances for credit losses		3		2
	Other assets		6		6
	Deposits		8,363		9,752
	Provisions		2		1
	Other liabilities		51		60
Others
Retirement pension	Other assets		364		778
	Other liabilities		606		10,141

¹  Excluded from the Bank’s related parties as of December 31, 2023.

²  Kookmin Bank Cambodia PLC. merged with KB PRASAC BANK PLC. and extinguished on September 1, 2023.

³  KB Credit Information Co., Ltd. become the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

40.3 Details of right-of-use assets and lease liabilities with related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent’s subsidiaries
KB Securities Co., Ltd.	Right-of-use assets		18,883		21,927
	Lease liabilities		22,873		26,825
KB Kookmin Card Co., Ltd.	Right-of-use assets		302		108
	Lease liabilities		28		29
KB Insurance Co., Ltd.	Right-of-use assets		21		—
	Lease liabilities		35		—
KB Life Insurance Co., Ltd.	Right-of-use assets		5,028		6,971
	Lease liabilities		5,190		7,021
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10	Right-of-use assets		3,319		3,563
	Lease liabilities		3,496		3,707

187

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Subsidiaries
LOG the 3rd L.L.C.	Notional amount of derivative financial instruments		24,300		24,300
KBL Incheon 1st L.L.C. *	Notional amount of derivative financial instruments		—		100,000
KB DTower 1st L.L.C.	Notional amount of derivative financial instruments		50,000		50,000
KBH the 4th L.L.C.	Notional amount of derivative financial instruments		6,000		12,000
Great Forest the 1st L.L.C.	Notional amount of derivative financial instruments		2,500		8,500
KBH the 6th L.L.C.	Notional amount of derivative financial instruments		50,000		50,000
Beomuh Landmark the 2nd L.L.C.	Notional amount of derivative financial instruments		30,000		30,000
K Plus the 1st L.L.C.	Notional amount of derivative financial instruments		200,000		200,000
KB Livv H 1st L.L.C.	Notional amount of derivative financial instruments		30,000		30,000
Livv H 1st L.L.C.	Notional amount of derivative financial instruments		50,000		50,000
KB Eagles 1st Co., Ltd.	Notional amount of derivative financial instruments		30,000		30,000
KB Manchon Harrington Co., Ltd. *	Notional amount of derivative financial instruments		—		12,800
KB Livv L 1st Co., Ltd.	Notional amount of derivative financial instruments		50,000		50,000
KB Cheongla Hill Co., Ltd. *	Notional amount of derivative financial instruments		—		60,000
KB Dong-in Central L.L.C. *	Notional amount of derivative financial instruments		—		20,000
KB Eagles 2nd Co., Ltd.	Notional amount of derivative financial instruments		50,000		50,000
KBH Steal Co., Ltd. *	Notional amount of derivative financial instruments		—		150,000
KB Great Bear 1st L.L.C. *	Notional amount of derivative financial instruments		—		90,000
Ryan Mobility 1st L.L.C.	Notional amount of derivative financial instruments		50,000		50,000
KB Chemical 1st Co., Ltd.	Notional amount of derivative financial instruments		—		50,000
KB Harim 1st L.L.C.	Notional amount of derivative financial instruments		30,000		30,000

188

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Eagles 3rd Co., Ltd.	Notional amount of derivative financial instruments		50,000		50,000
LEP 2nd Co., Ltd.	Notional amount of derivative financial instruments		70,000		70,000
KB Buamsamjung 1st Co., Ltd. *	Notional amount of derivative financial instruments		—		35,600
Liiv H 2nd Co., Ltd.	Notional amount of derivative financial instruments		30,000		30,000
KB Liiv DS 1st L.L.C.	Notional amount of derivative financial instruments		50,000		—
Parent’s subsidiaries
KB Securities Co., Ltd.	Notional amount of derivative financial instruments		2,971,395		2,820,272
KB Kookmin Card Co., Ltd.	Notional amount of derivative financial instruments		128,940		126,730
KB Capital Co., Ltd.	Notional amount of derivative financial instruments		1,448		—
KB Insurance Co., Ltd.	Notional amount of derivative financial instruments		2,214,458		2,192,657
KB Life Insurance Co., Ltd.	Notional amount of derivative financial instruments		293,253		316,557
KB STAR REIT Co., Ltd.	Notional amount of derivative financial instruments		444,139		420,280
KB IDF Infra Private Special Asset Fund 13(FoFs)	Notional amount of derivative financial instruments		27,771		—
KB Global Private Real Estate Fund No.15 (FoFs)	Notional amount of derivative financial instruments		57,537		—
KB Global Private Real Estate Fund No.22	Notional amount of derivative financial instruments		8,772		—
KB Global Private Real Estate Fund No.27 (FoFs)	Notional amount of derivative financial instruments		39,851		—
KB Global Private Real Estate Fund No.30 (FoFs)	Notional amount of derivative financial instruments		3,491		—
KB North America Private Real Estate Debt Fund No.1	Notional amount of derivative financial instruments		32,235		31,683
KB North America Private Real Estate Debt Fund No.3	Notional amount of derivative financial instruments		106,376		104,552
KB Global Infrastructure Synergy Private Special Asset Fund (Monetary Receivables)	Notional amount of derivative financial instruments		44,004		—
KB BMO Senior Loan Private Special Asset Fund No.1(FOF)	Notional amount of derivative financial instruments		—		38,112
KB BMO Senior Loan Private Special Asset Fund No.5(FOF)	Notional amount of derivative financial instrument		96,806		—
Hanwha Europe Credit Private Fund No.16 (FOF)	Notional amount of derivative financial instruments		41,669		35,081
KB Aircraft Private Special Asset Fund No.1	Notional amount of derivative financial instruments		—		123,949
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) *	Notional amount of derivative financial instruments		—		51,554

189

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.4 Notional amount of derivative assets and liabilities arising from transactions with related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB Korea Short Term Premium Private Securities No.26(USD)(Bond) *	Notional amount of derivative financial instruments		—		38,653
KB Korea Short Term Premium Private Securities No.27(USD)(Bond) *	Notional amount of derivative financial instruments		—		64,632
KB Korea Short Term Premium Private Securities No.32(USD)(Bond) *	Notional amount of derivative financial instruments		—		103,538
KB Korea Short Term Premium Private Securities No.33(USD)(Bond) *	Notional amount of derivative financial instruments		—		54,494
KB Korea Short Term Premium Private Securities No.34(USD)(Bond)	Notional amount of derivative financial instruments		39,842		—
KB Korea Short Term Premium Private Securities No.35(USD)(Bond)	Notional amount of derivative financial instruments		40,745		—
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)	Notional amount of derivative financial instruments		41,196		—
KB IDF Infra Note Private SpecialAsset Fund 14	Notional amount of derivative financial instruments		56,051		—
KB ASF Infra Private Special Asset Fund(FoFs)	Notional amount of derivative financial instruments		—		6,011
KB Europe Renewable Private Special Asset Fund No.3	Notional amount of derivative financial instruments		8,794		—
KB Europe ICG PDF Private Special Asset Fund 4(FoFs)	Notional amount of derivative financial instruments		11,413		—

* Excluded from the Bank’s related parties as of December 31, 2023.

190

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.5 Details of significant lending transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

	2023 1
(In millions of Korean won)	Beginning		Loan		Collection		Others			Ending
Subsidiaries
Kookmin Bank Cambodia PLC. 2		430,882		312,084		523,862		(219,104	)		—
Kookmin Bank (China) Ltd.		728,698		1,480,594		1,327,535		7,929			889,686
KB PRASAC BANK PLC.		419,793		1,686,869		1,667,828		440,782			879,616
PT Bank KB Bukopin Tbk		1,360,306		8,338,253		8,529,640		28,979			1,197,898
Structured entities 3		676,866		146,393		774,571		13			48,701
SMMK PTE.LTD.		—		1,444		—		—			1,444
KB Core Blind Private Real Estate Fund No.1		10,000		—		—		—			10,000
Parent’s subsidiaries
KB Securities Co., Ltd.		141,922		1,379,347		1,255,162		183			266,290
KB Insurance Co., Ltd.		18,390		13,862		984		(31,268	)		—
KB Life Insurance Co., Ltd.		—		4		1,979		32,246			30,271
KB Kookmin Card Co., Ltd.		177,422		177,405		164,935		(19,691	)		170,201
KB Capital Co., Ltd.		35,484		35,411		40,963		1,658			31,590
KB Star Office Private Real Estate Feeder Fund No.4		20,000		—		—		—			20,000
KB Logistics Blind Private Real Estate Fund No.1		52,500		—		—		—			52,500
KB Wise Star Private Real Estate22		—		—		—		38,000			38,000
Associates
Incheon Bridge Co., Ltd.		128,148		—		14,700		334			113,782
TAEYEONG PRECISION IND. CO.,LTD		—		—		46		46			—
Youngwon Corporation 5		—		306		4,793		4,487			—
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10		149,294		—		—		296			149,590
Associates of Parent’s subsidiaries
Food Factory Co., Ltd.		3,337		400		1,603		(1	)		2,133
COSES GT Co., Ltd.		500		—		500		—			—
Gomi corporation Inc.		2,200		—		50		—			2,150
Desilo Inc.		300		—		—		—			300
Contents First Inc.		10,017		—		—		(17	)		10,000
SuperNGine Co., Ltd.		—		600		—		—			600
Turing Co., Ltd.		—		1,900		—		1			1,901
New Daegu Busan Expressway Co., Ltd.		—		—		—		72,742			72,742
AIM FUTURE, Inc.		—		—		—		900			900
Key management personnel 6		4,391		2,928		3,471		271			4,119

191

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.5 Details of significant lending transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022 1
(In millions of Korean won)	Beginning		Loan		Collection		Others			Ending
Subsidiaries
Kookmin Bank Cambodia PLC.2		343,795		275,526		208,402		19,963			430,882
Kookmin Bank (China) Ltd.		1,293,871		791,092		1,476,898		120,633			728,698
KB PRASAC BANK PLC.		182,271		529,730		278,720		(13,488	)		419,793
PT Bank KB Bukopin Tbk		592,750		8,462,217		7,749,339		54,678			1,360,306
Structured entities 4		69,323		1,772,167		1,164,208		(416	)		676,866
IDMB UNITED PTE.LTD.		—		3,874		3,874		—			—
KB Core Blind Private Real Estate Fund No.1		10,000		—		—		—			10,000
Parent’s subsidiaries
KB Securities Co., Ltd.		124,527		1,035,932		1,003,576		(14,961	)		141,922
KB Insurance Co., Ltd.		17,958		475		3		(40	)		18,390
KB Kookmin Card Co., Ltd.		71,130		250,451		147,431		3,272			177,422
KB Capital Co., Ltd.		71,130		—		41,709		6,063			35,484
KB Star Office Private Real Estate Feeder Fund No.4		20,000		—		—		—			20,000
KB Logistics Blind Private Real Estate Fund No.1		—		52,500		—		—			52,500
Associates
Incheon Bridge Co., Ltd.		151,482		—		18,900		(4,434	)		128,148
Associate of Parent
Star-Lord General Investors Private Real Estate Investment Company No.10		—		150,000		—		(706	)		149,294
Associates of Parent’s subsidiaries
Food Factory Co., Ltd.		3,545		1,500		1,707		(1	)		3,337
COSES GT Co., Ltd.		500		—		—		—			500
Gomi corporation Inc.		2,200		—		—		—			2,200
Desilo Inc.		301		—		—		(1	)		300
Contents First Inc.		—		10,000		—		17			10,017
Key management personnel 6		3,252		1,041		2,038		2,136			4,391

¹ Transactions between related parties, such as settlements arising from operating activities and daylight overdraft to be repaid on the day of handling, are excluded.

² Kookmin Bank Cambodia PLC. merged with KB PRASAC BANK PLC. and extinguished on September 1, 2023.

³  Includes details of KBL Incheon 1st L.L.C. and 17 others that was excluded from related parties for the year ended December 31, 2023.

⁴  Includes details of KB Happy 1st L.L.C. and 13 others that were excluded from related parties for the year ended December 31, 2022.

⁵  Excluded from the Bank’s related parties as of December 31, 2023.

⁶ Includes loan transactions that occurred before they became related parties.

192

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

		2023
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Parent
KB Financial Group Inc.	Deposits		231,056		800,000		800,000		(116,720	)		114,336
Subsidiaries
Kookmin Bank Cambodia PLC. 3	Deposits		2,364		—		—		(2,364	)		—
Kookmin Bank (China) Ltd.	Deposits		1,960		—		—		2,291			4,251
	Borrowings		267,164		—		—		(99,991	)		167,173
KB BANK MYANMAR LTD	Deposits		383		—		—		14,305			14,688
PT Bank KB Bukopin Tbk	Deposits		6,158		—		—		(5,567	)		591
Securitization SPE	Deposits		1,014		—		—		(11	)		1,003
Structured entities	Deposits		3,735		—		—		(1,686	)		2,049
Samsung SRA Private Real Estate Investment Trust No.28D (FoFs)	Deposits		62		—		—		65			127
Orient Kwang-yang Co., Ltd.	Deposits		4,040		—		—		(174	)		3,866
IDMB UNITED PTE.LTD.	Deposits		241		—		—		(192	)		49
KB PRASAC BANK PLC.	Deposits		—		—		—		2,882			2,882
Parent’s subsidiaries
KB Securities Co., Ltd.	Deposits		863,597		235,095		222,389		(494,823	)		381,480
KB Asset Management Co., Ltd.	Deposits		25,950		—		—		(14,241	)		11,709
KB Real Estate Trust Co., Ltd.	Deposits		48,600		—		—		(25,465	)		23,135
KB Investment Co., Ltd.	Deposits		81,064		181,800		187,800		(8,286	)		66,778
KB Credit Information Co., Ltd. 5	Deposits		13,430		14,233		14,040		(13,623	)		—
KB Data System Co., Ltd.	Deposits		19,254		10,500		11,500		(1,747	)		16,507
KB Kookmin Card Co., Ltd.	Deposits		108,935		22,000		22,000		46,275			155,210
KB Capital Co., Ltd.	Deposits		708,515		2,600		—		(483,241	)		227,874
KB Insurance Co., Ltd.	Deposits		62,199		150		—		79,426			141,775
	Debentures		—		150		—		(150	)		—
KB Life Insurance Co., Ltd.	Deposits		8,567		—		—		4,567			13,134
	Debentures		30,000		—		—		(10,000	)		20,000
KB Star Office Private Real Estate Feeder Fund No.4	Deposits		215		—		215		—			—
KB STAR REIT Co., Ltd.	Deposits		35,053		95,000		76,500		(17,578	)		35,975

193

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2023
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Associates
Korea Credit Bureau Co., Ltd.	Deposits		27,889		—		—		(10,886	)		17,003
Incheon Bridge Co., Ltd.	Deposits		48,639		67,100		76,017		1,270			40,992
Jungdo Co., Ltd.	Deposits		4		—		—		—			4
Dae-A Leisure Co., Ltd.	Deposits		154		—		—		(4	)		150
Iwon Alloy Co., Ltd.	Deposits		1		—		—		—			1
Computerlife Co., Ltd.	Deposits		3		—		—		(3	)		—
Skydigital Inc.	Deposits		10		—		—		55			65
KB High-Tech Company Investment Fund	Deposits		688		2,818		—		(571	)		2,935
Aju Good Technology Venture Fund	Deposits		7,222		1,323		7,900		557			1,202
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		317		—		—		(271	)		46
KB Digital Innovation & Growth New Technology Business Investment Fund	Deposits		674		—		—		(102	)		572
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Deposits		1,526		—		—		(1,526	)		—
KB Global Platform Fund	Deposits		19,655		—		—		(13,881	)		5,774
WJ Private Equity Fund No.1	Deposits		221		—		—		(118	)		103
TMAPMOBILITY CO.,LTD.	Deposits		30,000		170,000		120,000		16			80,016
KB Bio Global Expansion Private Equity Fund No.1	Deposits		1,400		5,600		5,600		—			1,400
KB Digital Platform Fund	Deposits		15,000		14,000		29,000		—			—
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP	Deposits		—		3,983		—		(193	)		3,790
Associates of Parent’s subsidiaries
RAND Bio Science Co., Ltd.	Deposits		3		—		—		1			4
Food Factory Co., Ltd.	Deposits		664		—		—		(35	)		629
Paycoms Co., Ltd. 2	Deposits		1		—		—		(1	)		—
Big Dipper Co., Ltd.	Deposits		19		—		—		21			40
Spark Biopharma Inc.	Deposits		17,534		26,369		30,779		(1,705	)		11,419
Wyatt Corp.	Deposits		1		—		—		—			1
UPRISE, Inc.	Deposits		27		—		—		(27	)		—
CellinCells Co., Ltd.	Deposits		37		—		—		—			37
COSES GT Co., Ltd.	Deposits		1,213		—		—		(1,212	)		1
KB No.21 Special Purpose Acquisition Company	Deposits		2,263		2,050		2,000		(52	)		2,261

194

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’ d)

		2023
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
KB No.22 Special Purpose Acquisition Company	Deposits		1,948		—		—		(100	)		1,848
KB No.23 Special Purpose Acquisition Company 2	Deposits		2,205		2,089		4,223		(71	)		—
KB No.24 Special Purpose Acquisition Company 2	Deposits		9,983		—		—		(9,983	)		—
KB No.25 Special Purpose Acquisition Company	Deposits		—		1,500		—		86			1,586
KB No.26 Special Purpose Acquisition Company	Deposits		—		1,670		—		91			1,761
KB No.27 Special Purpose Acquisition Company	Deposits		—		4,390		—		107			4,497
Gomi corporation Inc.	Deposits		915		—		—		(837	)		78
S&E Bio Co., Ltd.	Deposits		6,419		2,500		2,000		(4,577	)		2,342
4N Inc.	Deposits		5		—		—		44			49
Contents First Inc.	Deposits		5,010		6,000		10,000		62			1,072
December & Company Inc. 2	Deposits		1		—		—		(1	)		—
Mantisco Co., Ltd.	Deposits		623		—		—		(577	)		46
Pin Therapeutics Inc.	Deposits		6,033		7,217		12,017		(968	)		265
SuperNGine Co., Ltd.	Deposits		17		—		—		52			69
Desilo Inc.	Deposits		1		1		—		1			3
Turing Co., Ltd.	Deposits		2,788		700		—		(1,762	)		1,726
IGGYMOB Co., Ltd.	Deposits		254		—		—		(254	)		—
ZIPDOC Inc.	Deposits		915		—		—		(734	)		181
TeamSparta Inc.	Deposits		12,502		7,000		8,000		(3,830	)		7,672
Chabot Mobility Co., Ltd.	Deposits		86		—		—		78			164
Wemade Connect Co., Ltd.	Deposits		10,370		31,000		30,217		(2,310	)		8,843
Channel Corporation	Deposits		3,000		7,000		8,000		30			2,030
Nextrade Co., Ltd.	Deposits		56,202		—		—		1			56,203
KG Capital Co., Ltd. 2	Deposits		10		—		—		(10	)		—
Bitgoeul Cheomdan Green 1st Co., Ltd.	Deposits		—		—		—		833			833
KBFT Green Growth No.1 New Technology Business Investment Association	Deposits		—		700		—		—			700
Bigwave Robotics Crop.	Deposits		—		—		—		4			4
3D Interactive Co., Ltd.	Deposits		—		2,000		2,000		1,501			1,501
AIM FUTURE, Inc.	Deposits		—		3,000		—		393			3,393
New Daegu Busan Expressway Co., Ltd.	Deposits		—		—		—		146,169			146,169
Novorex Inc.	Deposits		—		—		—		7			7
Xenohelix Co., Ltd	Deposits		—		—		—		904			904
Key management personnel 4	Deposits		9,752		16,979		14,879		(3,489	)		8,363

195

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2022
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Parent
KB Financial Group Inc.	Deposits		518,076		950,000		950,000		(287,020	)		231,056
Subsidiaries
Kookmin Bank Cambodia Plc. 3	Deposits		16,042		—		—		(13,678	)		2,364
Kookmin Bank (China) Ltd.	Deposits		3,374		—		—		(1,414	)		1,960
	Borrowings		225,870		—		—		41,294			267,164
KB Bank Myanmar Co., Ltd.	Deposits		27,278		—		—		(26,895	)		383
PT Bank KB Bukopin Tbk	Deposits		3,938		—		—		2,220			6,158
Securitization SPE	Deposits		1,035		—		—		(21	)		1,014
Structured entities	Deposits		2,033		—		—		1,702			3,735
Samsung SRA Private Real Estate Investment Trust No.28D	Deposits		37		—		—		25			62
Orient Kwang-yang Co., Ltd.	Deposits		—		3,621		3,571		3,990			4,040
IDMB UNITED PTE.LTD.	Deposits		—		—		—		241			241
Parent’s subsidiaries
KB Securities Co., Ltd.	Deposits		532,759		109,580		75,000		296,258			863,597
KB Asset Management Co., Ltd.	Deposits		13,206		—		—		12,744			25,950
KB Real Estate Trust Co., Ltd.	Deposits		103,329		—		—		(54,729	)		48,600
KB Investment Co., Ltd.	Deposits		100,338		195,000		203,000		(11,274	)		81,064
KB Credit Information Co., Ltd. 5	Deposits		4,536		5,599		1,425		4,720			13,430
KB Data System Co., Ltd.	Deposits		15,416		9,500		10,500		4,838			19,254
KB Life Insurance Co., Ltd. 6	Deposits		2,608		—		—		(1,820	)		788
KB Kookmin Card Co., Ltd.	Deposits		71,087		22,000		22,000		37,848			108,935
KB Capital Co., Ltd.	Deposits		219,311		—		—		489,204			708,515
KB Insurance Co., Ltd.	Deposits		4,519		—		—		57,680			62,199
	Debentures		29,998		—		30,000		2			—
Prudential Life Insurance Company of Korea Ltd. 7	Deposits		7,634		—		—		145			7,779
	Debentures		30,000		—		—		—			30,000
KB Star Office Private Real Estate Master Fund No.3	Deposits		171		—		171		—			—
KB Star Office Private Real Estate Feeder Fund No.4	Deposits		532		—		318		1			215
KB STAR REIT Co., Ltd.	Deposits		—		—		—		35,053			35,053

196

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2022
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Associates
Korea Credit Bureau Co., Ltd.	Deposits		10,200		—		—		17,689			27,889
Incheon Bridge Co., Ltd.	Deposits		35,487		29,217		15,000		(1,065	)		48,639
Jungdo Co., Ltd.	Deposits		4		—		—		—			4
Dae-A Leisure Co., Ltd.	Deposits		17		—		—		137			154
Iwon Alloy Co., Ltd.	Deposits		—		—		—		1			1
Computerlife Co., Ltd.	Deposits		—		—		—		3			3
Skydigital Inc.	Deposits		85		—		—		(75	)		10
Jo Yang Industrial Co., Ltd.	Deposits		1		—		—		(1	)		—
KB High-Tech Company Investment Fund	Deposits		1,504		—		—		(816	)		688
Aju Good Technology Venture Fund	Deposits		6,286		6,577		3,840		(1,801	)		7,222
KB-KDBC Pre-IPO New Technology Business Investment Fund	Deposits		904		—		—		(587	)		317
KB Digital Innovation & Growth New Technology Business Investment Fund	Deposits		2,088		—		—		(1,414	)		674
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund	Deposits		1,524		—		—		2			1,526
KB Global Platform Fund	Deposits		26,823		—		—		(7,168	)		19,655
WJ Private Equity Fund No.1	Deposits		260		—		—		(39	)		221
TMAPMOBILITY CO.,LTD.	Deposits		—		80,000		50,000		—			30,000
KB Bio Global Expansion Private Equity Fund No.1	Deposits		—		1,400		—		—			1,400
KB Digital Platform Fund	Deposits		—		59,000		44,000		—			15,000
Associate of Parent
KB Star Office Private Real Estate Investment Trust No.1 2	Deposits		2,578		—		2,578		—			—
Associates of Parent’s subsidiaries
KG Capital Co., Ltd. 1	Deposits		17		—		—		(7	)		10
RAND Bio Science Co., Ltd.	Deposits		443		—		—		(440	)		3
Food Factory Co., Ltd.	Deposits		839		511		1,018		332			664
Acts Co., Ltd. 2	Deposits		154		—		—		(154	)		—
Paycoms Co., Ltd. 2	Deposits		1		—		—		—			1
Big Dipper Co., Ltd.	Deposits		—		300		300		19			19
Spark Biopharma Inc.	Deposits		6,015		41,165		27,539		(2,107	)		17,534

197

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.6 Details of significant borrowing transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

		2022
(In millions of Korean won)		Beginning		Borrowing		Repayment		Others 1			Ending
Wyatt Corp.	Deposits		1		—		—		—			1
UPRISE, Inc.	Deposits		4,001		—		—		(3,974	)		27
CellinCells Co., Ltd.	Deposits		38		—		—		(1	)		37
COSES GT Co., Ltd.	Deposits		1,939		—		—		(726	)		1,213
KB No.17 Special Purpose Acquisition Company 2	Deposits		1,687		—		1,546		(141	)		—
KB No.18 Special Purpose Acquisition Company 2	Deposits		2,077		—		2,016		(61	)		—
KB No.19 Special Purpose Acquisition Company 2	Deposits		1,013		—		1,000		(13	)		—
KB No.20 Special Purpose Acquisition Company 2	Deposits		1,681		—		1,534		(147	)		—
KB No.21 Special Purpose Acquisition Company	Deposits		—		2,000		—		263			2,263
KB No.22 Special Purpose Acquisition Company	Deposits		—		—		—		1,948			1,948
KB No.23 Special Purpose Acquisition Company 2	Deposits		—		2,133		—		72			2,205
SwatchOn Inc. 2	Deposits		686		—		—		(686	)		—
Gomi corporation Inc.	Deposits		3,188		—		—		(2,273	)		915
S&E bio Co., Ltd.	Deposits		263		50		—		6,106			6,419
4N Inc.	Deposits		39		—		—		(34	)		5
Contents First Inc.	Deposits		12,650		10,000		16,000		(1,640	)		5,010
December & Company Inc. 2	Deposits		1		—		—		—			1
GENINUS Inc. 2	Deposits		34,415		—		—		(34,415	)		—
Mantisco Co., Ltd.	Deposits		386		—		—		237			623
Pin Therapeutics Inc.	Deposits		—		21,000		16,200		1,233			6,033
G1 Playground Co., Ltd.	Deposits		354		—		—		(354	)		—
SuperNGine Co., Ltd.	Deposits		944		—		—		(927	)		17
Desilo Inc.	Deposits		168		—		—		(167	)		1
Turing Co., Ltd.	Deposits		1,054		—		—		1,734			2,788
IGGYMOB Co., Ltd.	Deposits		2,938		—		—		(2,684	)		254
KB Pre IPO Secondary Venture Fund No.1 2	Deposits		103		—		—		(103	)		—
ZIPDOC Inc.	Deposits		—		—		—		915			915
TeamSparta Inc.	Deposits		—		9,000		4,000		7,502			12,502
Chabot Mobility Co., Ltd.	Deposits		—		—		—		86			86
Wemade Connect Co., Ltd.	Deposits		—		11,010		3,267		2,627			10,370
Wise Asset Management Co., Ltd 2	Deposits		—		6		6		—			—
Channel Corporation	Deposits		—		6,000		3,000		—			3,000
KB No.24 Special Purpose Acquisition Company Co., Ltd. 2	Deposits		—		—		—		9,983			9,983
Nextrade Co., Ltd.	Deposits		—		56,200		—		2			56,202
Key management personnel 4	Deposits		9,909		14,214		12,345		(2,026	)		9,752

198

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

¹ Transactions between related parties, such as settlements arising from operating activities and deposits, are expressed in net amount.

²  Excluded from the Bank’s related parties as of December 31, 2023.

³ Kookmin Bank Cambodia PLC. merged with KB PRASAC BANK PLC. and extinguished on September 1, 2023.

⁴  Includes borrowing transactions that occurred before they became related parties.

⁵  KB Credit Information Co., Ltd. became the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

⁶  KB Life Insurance Co., Ltd. merged with KB Life Insurance Co., Ltd. and extinguished on January, 2023.

⁷  Prudential Life Insurance Company of Korea Ltd. changed the name to KB Life Insurance Co., Ltd.

199

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Subsidiaries
KB PRASAK BANK PLC		—		76
PT Bank KB Bukopin Tbk		709,047		—
KB Wise Star Private Real Estate Feeder Fund No.1		—		2,723
Woori SafePlus Private Securities Fund S-8		50,000		52,049
NH-Amundi Global Private Securities Investment Trust No.1 (USD) (Bond) *		—		96,003
Meritz Private Real Estate Fund No.9-2 *		—		134
KB Core Blind Private Real Estate Fund No.1		—		5,130
KB Global Private Real Estate Fund No.3 (USD)		—		1,968
Samsung SRA Private Real Estate Investment Trust No.28D (FoFs)		—		1,722
KB Global Private Real Estate Fund No.10 (FoFs)		—		5,939
KTB Global CREDebt Private Investment Trust No.52 (USD)		11,012		4,365
Hyundai Invest KKR Europe Real Estate No.1-3 (EUR)		5,441		1,744
Vestas Private Real Estate Investment Trust No.69-3 (USD) (FoFs)		7,041		—
KBSTAR FKTB 5Y Duration Following ETF *		10,133		82,904
SHINHAN ASP PCF II Private Investment Trust No.2 (USD)		2,619		2,024
Vestas Europe Logistics General Private Real Estate Investment Trust No.73-1		—		642
Vestas Europe Logistics General Private Real Estate Investment Trust No.73-2		—		1,149
KB KBSTAR KTB 10Y Futures ETF *		19,830		45,945
VI ESG Private Securities Investment Trust No.1 (Bond)		50,000		103,314
SHINHAN AIM Private Real Estate Investment Trust No.26-C (USD)		10,630		1,591
IGIS HSBC UK Senior Direct Lending Private Investment Trust No.465-1		30,909		3,084
KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative)		209,832		257,667
KBSTAR FKTB 5Y Duration Following ETF		99,631		129,262
Mirae Asset ESG Infra Private Investment Trust 1		1		—
KB KBSTAR Mar2025 Term Credit ETF		100,000		380
KB KBSTAR USD Korean Paper Active ETF		50,000		100
Parent’s subsidiaries
KB Investment Co., Ltd.		—		66
KB Hanbando BTL Private Special Asset Fund No.1		—		19,584
KB Hope Sharing BTL Private Special Asset Fund		—		1,297
KB Star Office Private Real Estate Feeder Fund No.4		—		2,690
KB New Renewable Energy Private Special Asset Fund No.1		—		1,787
KB Mezzanine Private Securities Fund No.3		—		1,200
Koreit BN Private Equity Fund		—		3,308
KB Europe Renewable Private Special Asset Fund No.2 (EUR)(SOC-FoFs)		92		2,428
KB BMO Senior Loan Private Special Asset Fund No.2(USD)		—		5,573
KB Korea Short Term Premium Private Securities No.25(USD)(Bond) *		—		50,275
KB Korea Short Term Premium Private Securities No.26(USD)(Bond) *		—		37,620
KB Korea Short Term Premium Private Securities No.27(USD)(Bond) *		—		65,082
KB Sinansan Line Private Special Asset Fund(SOC)		29,294		5,082
KB New Renewable Green New Deal Private Special Asset No.2		1,932		2,109
KB Multi Alpha Plus Private Fund No.1 *		—		9,661
KB MCF Senior Loan Private Special Asset Fund No.3 (Loan-FoFs)		917		5,660
KB New Deal Infra Private Special Asset Fund		3,811		568
KB Logistics Blind Private Real Estate Fund No.1		—		1,412
KB GK Project Private Special Asset Fund No.3		—		22,217

200

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2023
(In millions of Korean won)	Equity investment and others		Withdrawal and others
KB BMO Senior Loan Private Special Asset Fund No.4(USD)		—		3,363
KB Star Reits Private Real Estate Feeder Fund No.2 (FoFs)		—		4,644
KB Korea Short Term Premium Private Securities No.32(USD)(Bond) *		—		106,271
KB KBSTAR Nov2023 Term Credit ETF *		9,695		200,152
KB Korea Short Term Premium Private Securities No.33(USD)(Bond) *		—		56,889
KB Korea Short Term Premium Private Securities No.34(USD)(Bond)		—		30,148
KB Korea Short Term Premium Private Securities No.35(USD)(Bond)		36,942		—
KB KBSTAR 10-Year Futures Securities ETF (Debt-Derivative) *		5,030		28,081
KBSTAR Nov2025 Term Credit ETF		—		1,705
KB KBSTAR 3-Year Futures Securities ETF (Debt-Derivative) *		7,002		70,130
KB Money Market Active ETF (Bond)		599,679		301,032
KB NA Jefferies Private SpecialAsset Fund 1(USD)(FoFs)		26,579		537
KB Scale Up Fund II		4,500		—
KB Renewable Private SpecialAsset Fund 3		12,132		24
KB Star Institutional USD MMF1(USD)		39,765		—
KB Senior Loan Private Fund 5-1		42,509		59
KB Mezzanine Capital 4th Private Equity Fund		29,176		11,350
KB Core Plus Blind Private RealEstate Fund 1		58,068		—
KB Korea Short Term Premium Private Securities Fund 43(USD)(Bond)		40,296		—
KB Daegu Busan Highway Private Special Asset Fund(SOC)		119,660		—
Associates
Korea Credit Bureau Co., Ltd.		—		90
Future Planning KB Start-up Creation Fund		—		3,600
KB High-Tech Company Investment Fund		—		2,900
Aju Good Technology Venture Fund		—		11,377
KB-TS Technology Venture Private Equity Fund		—		360
KB Digital Innovation Investment Fund Limited Partnership		—		2,345
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		—		6,600
KB SPROTT Renewable Private Equity Fund No.1		—		476
KB-UTC Inno-Tech Venture Fund		—		1,500
KB-KDBC Pre-IPO New Technology Business Investment Fund No.2		—		300
KB Smart Scale Up Fund		7,000		—
KB-KTB Technology Venture Fund		3,000		—
KB Digital Platform Fund		23,800		—
KB-SOLIDUS Healthcare Investment Fund		7,700		—
KB New Deal Innovation Fund		6,400		—
KB Prime Digital Platform Fund		4,550		—
KB Global Platform Fund No.2		12,000		—
KAELEEWALEE GLOBAL SAELAENJINSAMO INVESTMENT JE2HO LIMITED PARTNERSHIP		27,034		—
Associate of Parent
Balhae Infrastructure Company		—		10,661
Hahn & Company No. 4-3 Private Equity Fund *		4,489		20

201

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2023
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Associates of Parent’s subsidiaries
KB-Stonebridge Secondary Private Equity Fund		—		4,206
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		600		970
KB Co-Investment Private Equity Fund No.1		1,920		—
KB-NP Green ESG New Technology Venture Capital Fund		3,330		—
KB-Badgers Future Mobility ESG Fund No.1		2,462		—

202

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Subsidiaries
Orient Kwang-yang Co., Ltd.		7		—
KB Wise Star Private Real Estate Feeder Fund No.1		—		128,833
KB Haeorum Private Securities Fund No.83 (Bond) *		50,000		150,155
Kiwoom Frontier Private Securities Fund No.10 (Bond)		100,000		149,631
Woori SafePlus Private Securities Fund S-8		150,000		150,517
Meritz Private Real Estate Fund No.9-2 *		7,418		30,163
KB KBSTAR 3-Year Futures Inverse Securities ETF (Debt-Derivative)		747,309		663,862
KB Core Blind Private Real Estate Fund No.1		—		6,556
KB Global Private Real Estate Debt Fund No.3 (USD)		—		1,216
Samsung Credit Value Plus Professional Investment Type Private Securities Fund (Bond) *		50,000		99,163
KB Emerging Markets Dept Private Securities Fund(USD)(Bond) *		—		119,374
Samsung SRA Private Real Estate Investment Trust No.28D		—		927
KIM Basic Private Securities Fund No.102 (Bond) *		50,000		99,844
KB Global Private Real Estate Debt Fund No.10		—		3,503
KB KBSTAR Active Korea Short Term Bond Market(AA-) ETF *		—		100,803
KTB Global CREDebt No.52		15,019		9,758
Hyundai Invest KKR Europe Real Estate No.1-3		10,875		3,120
KBSTAR FKTB 5Y Duration Following ETF		381,392		329,693
NH-Amundi Private Securities Investment Trust S5(USD)(BOND) *		—		43,233
Vestas Investors Private Real Estate Fund Investment Trust No.69-3(USD) (FoFs)		25,986		2,215
Samsung KODEX 10Y F-LKTB INV ETF *		120,869		129,467
KB Leaders Private Securities Fund No.23(Bond-Derivatives) *		100,000		98,532
Shinhan Institutional Discretionary Private Security Investment Trust No.1 [Bond-Derivative] *		100,000		100,086
KBSTAR FKTB 5Y Duration Following ETF		233,042		162,951
SAMSUNG KODEX 10Y F-LKTB INVERSE ETF *		99,326		96,524
Hanwha ARIRANG 3 Year Korea Treasury Bond Futures ETF [Bond-Derivatives] *		71,188		69,285
SHINHAN ASP PCF II Private Investment Trust No.2 (USD)		21,407		728
Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-1		13,496		74
Vestas Europe Logistics General Private Real Estate Fund Investment Trust No.73-2		12,391		761
KB KBSTAR KTB 10Y Futures ETF *		21,989		—
KB KBSTAR KTB 10Y Futures Inverse ETF *		46,075		8,514
VI ESG Private Securities Investment Trust No.1 (Bond)		150,000		—
Mirae Asset Tiger S&P500 Inverse Future ETF H *		61,442		28,957
SHINHAN AIM Private Real Estate Fund Investment Trust No.26-C (USD)		19,611		—
KB KBSTAR KTB 3Y Futures ETF *		102,214		40,198
KB KBSTAR US Treasury Long Bond Futures Inverse ETF H *		22,854		22,810
KB KBSTAR Nov 2025 Term Credit ETF		50,000		—

203

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Parent’s subsidiaries
KB Hanbando BTL Private Special Asset Fund No.1		—		19,510
KB Hope Sharing BTL Private Special Asset Fund		—		1,416
KB Intellectual Property Fund		—		180
KB Star Office Private Real Estate Feeder Fund No.4		—		2,412
KB Global Core Bond Securities Feeder Fund(Bond)		—		42,737
KB New Renewable Energy Private Special Asset Fund No.1		3,492		1,794
KB Mezzanine Private Securities Fund No.3		—		16,240
Koreit BN Private Equity Fund		—		2,440
KB Europe Renewable Private Special Asset Fund No.2 (SOC-FoFs)		2,452		2,746
KB BMO Senior Loan Private Special Asset Fund No.2(USD)		—		2,092
KB Korea Short Term Premium Private Securities No.19(USD)(Bond) *		—		23,985
KB Korea Short Term Premium Private Securities No.21(USD)(Bond) *		—		36,102
KB Korea Short Term Premium Private Securities No.22(USD)(Bond) *		—		24,433
KB Korea Short Term Premium Private Securities No.23(USD)(Bond) *		—		85,433
KB Korea Short Term Premium Private Securities Fund No.25(USD)(Bond) *		47,672		—
KB Korea Short Term Premium Private Securities Fund No.26(USD)(Bond) *		35,910		—
KB Korea Short Term Premium Private Securities Fund No.27(USD)(Bond) *		59,980		—
KB Korea Short Term Premium Private Securities Fund No.28(USD)(Bond) *		95,368		108,180
KB Sinansan Line Private Special Asset Fund(SOC)		31,808		2,490
KB New Renewable Green New Deal Private Special Asset No.2		22,350		1,447
KB Multi Alpha Plus Private Fund No.1 *		—		400
KB MCF Senior Loan Private Special Asset Fund No.3(FoFs)		20,703		1,959
KB New Deal Infra Private Special Asset Fund		10,199		77
KB Logistics Blind Private Real Estate Fund No.1		25,812		1,463
KB Star ESG Prime Mid-Short Bond Securities Feeder Fund(Bond)		50,000		48,800
KB GK Project Private Special Asset Fund No.3		—		89,410
KB BMO Senior Loan Private Special Asset Fund No.4(USD)		38,828		404
KB Core Blind Private Real Estate Fund No.2		5,107		—
KB Star Reits Private Real Estate Feeder Fund No.2		65,000		—
KB KBSTAR US Short-Term IG Corporate Bond ETF		20,000		—
KB Korea Short Term Premium Private Securities Fund No.32 *		107,312		—
KB KBSTAR Nov 2023 Term Credit ETF *		180,581		—
KB Korea Short Term Premium Private Securities Fund No.33(USD)(Bond) *		52,816		—
KB Korea Short Term Premium Private Securities Fund No.34(USD)(Bond)		63,420		—

204

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.7 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2023 and 2022, are as follows: (cont’d)

	2022
(In millions of Korean won)	Equity investment and others		Withdrawal and others
Associates
Future Planning KB Start-up Creation Fund		—		1,700
KB High-Tech Company Investment Fund		—		1,300
Aju Good Technology Venture Fund		—		5,400
KB-KDBC Pre-IPO New Technology Business Investment Fund		—		2,600
KB-TS Technology Venture Private Equity Fund		—		2,430
KB-Brain KOSDAQ Scale-up New Technology Business Investment Fund		—		6,400
KB SPROTT Renewable Private Equity Fund No.1		9,748		—
KB Global Platform Fund		8,000		6,150
KB Smart Scale Up Fund		12,000		—
KB-KTB Technology Venture Fund		6,000		—
KB Digital Platform Fund		14,000		—
KB-SOLIDUS Healthcare Investment Fund		6,000		—
KB New Deal Innovation Fund		9,600		—
TMAPMOBILITY CO.,LTD.		200,000		—
KB Prime Digital Platform Fund		2,600		—
KB Scale Up Fund II		4,500		—
Associate of Parent
Balhae Infrastructure Company		—		21,177
Associate of Parent’s subsidiaries
KB-Stonebridge Secondary Private Equity Fund		2,497		2,409
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		440		2,044
KB Co-Investment Private Equity Fund No.1		6,320		—
KB-NP Green ESG New Technology Venture Capital Fund		2,805		—

* Excluded from the Bank’s related parties as of December 31, 2023.

205

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Subsidiaries
KB Microfinance Myanmar Co., Ltd.	Other commitments in foreign currency		15,473		15,208
KB PRASAC BANK PLC.	Loan commitments in foreign currency		248,609		152,076
Structured entities	Loan commitments in Korean won		9,441		11,696
	Purchase of securities		1,437,736		1,437,844
Meritz Private Real Estate Fund No.9-2 *	Purchase of securities		—		913
KTB Global CREDebt Private Investment Trust No.52 (USD)	Purchase of securities		1,878		12,564
Hyundai Invest KKR Europe Real Estate No.1-3 (EUR)	Purchase of securities		14,817		19,228
Vestas Private Real Estate Investment Trust No.69-3 (USD) (FoFs)	Purchase of securities		28,849		35,139
SHINHAN ASP PCF II Private Investment Trust No.2 (USD)	Purchase of securities		2,015		4,540
IDMB UNITED PTE.LTD.	Loan commitments in foreign currency		25,788		25,346
	Other commitments in foreign currency		238,539		234,451
SMMK PTE.LTD.	Loan commitments in foreign currency		24,344		—
	Other commitments in foreign currency		242,407		—
Vestas Europe Logistics General Private Real Estate Investment Trust No.73-1	Purchase of securities		56,922		53,914
SHINHAN AIM Private Real Estate Investment Trust No.26-C (USD)	Purchase of securities		54,725		63,650
IGIS HSBC UK Senior Direct Lending Private Investment Trust No.465-1	Purchase of securities		2,172		—
Mirae Asset ESG Infra Private Investment Trust 1	Purchase of securities		19,999		—
Parent’s subsidiaries
KB Securities Co., Ltd.	Loan commitments in Korean won		140,000		140,000
	Other commitments in foreign currency		16,726		—
KB Investment Co., Ltd.	Purchase of securities		21,000		—
	Loss sharing agreements		1,000		1,000
KB Kookmin Card Co., Ltd.	Loan commitments in Korean won		820,000		820,000
	Other commitments in Korean won		1,700,000		1,700,000
	Other commitments in foreign currency		105,777		44,515
KB Capital Co., Ltd.	Loan commitments in foreign currency		11,605		—
	Other commitments in foreign currency		27,056		40,381
KB Insurance Co., Ltd.	Loan commitments in Korean won		20,000		20,528
KB Life Insurance Co., Ltd.	Loan commitments in Korean won		1,000		100,000

206

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
KB New Renewable Energy Private Special Asset Fund No.1	Purchase of securities		—		3,010
KB Mezzanine Private Securities Fund No.3	Purchase of securities		—		8,006
KB Europe Renewable Private Special Asset Fund No.2 (EUR)(SOC-FoFs)	Purchase of securities		1,985		1,968
KB Global Infra Private Special Asset Fund No.5	Purchase of securities		—		24,999
KB Global Infra Private Special Asset Fund No.6	Purchase of securities		10,999		24,999
KB BMO Senior Loan Private Special Asset Fund No.2(USD)	Purchase of securities		15		29
KB New Renewable Green New Deal Private Special Asset No.2	Purchase of securities		3,369		5,301
KB Sinansan Line Private Special Asset Fund(SOC)	Purchase of securities		171,695		200,988
KB MCF Senior Loan Private Special Asset Fund No.3 (Loan-FoFs)	Purchase of securities		4,438		3,554
KB New Deal Infra Private Special Asset Fund	Purchase of securities		3,681		7,492
KB GK Project Private Special Asset Fund No.3	Purchase of securities		23		23
KB Core Blind Private Real Estate Fund No.2	Purchase of securities		25,607		94,893
KB Mezzanine Capital 4th Private Equity Fund	Purchase of securities		42,046		—
KB Scale Up Fund II	Purchase of securities		—		25,500
KB NA Jefferies Private SpecialAsset Fund 1(USD)(FoFs)	Purchase of securities		22,373		—
KB Senior Loan Private Fund 5-1	Purchase of securities		37,491		—
KB Daegu Busan Highway Private Special Asset Fund(SOC)	Purchase of securities		40		—
Associates
Incheon Bridge Co., Ltd.	Loan commitments in Korean won		20,000		20,000
KB SPROTT Renewable Private Equity Fund No.1	Purchase of securities		—		5,140
All Together Korea Fund No.2(Stock-FoFs)	Purchase of securities		990,000		990,000
KB Smart Scale Up Fund	Purchase of securities		—		7,000
KB-KTB Technology Venture Fund	Purchase of securities		3,000		6,000
KB Digital Platform Fund	Purchase of securities		89,600		113,400
KB-SOLIDUS Healthcare Investment Fund	Purchase of securities		15,700		23,400
KB New Deal Innovation Fund	Purchase of securities		—		6,400
KB Prime Digital Platform Fund	Purchase of securities		5,850		10,400
KB Global Platform Fund No.2	Purchase of securities		38,000		—
Associate of Parent
Balhae Infrastructure Company	Purchase of securities		6,154		6,154
Hahn & Company No. 4-3 Private Equity Fund *	Purchase of securities		45,511		—

207

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.8 Acceptances and guarantees and unused commitments provided to related parties as of December 31, 2023 and 2022, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023		December 31, 2022
Associates of Parent’s subsidiaries
TeamSparta Inc.	Loan commitments in Korean won		1,000		—
KB-Stonebridge Secondary Private Equity Fund	Purchase of securities		691		691
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Purchase of securities		4,496		5,096
KB Co-Investment Private Equity Fund No.1	Purchase of securities		11,760		13,680
KB-Badgers Future Mobility ESG Fund No.1	Purchase of securities		16,588		19,050
KB-NP Green ESG New Technology Venture Capital Fund	Purchase of securities		8,865		12,195
Key management personnel	Loan commitments in Korean won		1,442		833

* Excluded from the Bank’s related parties as of December 31, 2023.

40.9 Acceptances and guarantees and unused commitments provided by related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)		December 31, 2023		December 31, 2022
Parent’s subsidiaries
KB Investment Co., Ltd.	Loss sharing agreements		7,219		7,008
KB Kookmin Card Co., Ltd.	Loan commitments in Korean won		71,708		82,354

208

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.10 Details of compensation to key management personnel for the years ended December 31, 2023 and 2022, are as follows:

	2023
(In millions of Korean won)	Short-term employee benefits		Post- employment benefits		Share-based payments		Total
Registered directors (executive)		1,908		70		1,702		3,680
Registered directors (non-executive)		416		—		—		416
Non-registered directors		11,319		444		9,115		20,878
		13,643		514		10,817		24,974

	2022
(In millions of Korean won)	Short-term employee benefits		Post- employment benefits		Share-based payments		Total
Registered directors (executive)		1,963		44		1,034		3,041
Registered directors (non-executive)		420		—		—		420
Non-registered directors		9,801		344		7,563		17,708
		12,184		388		8,597		21,169

40.11 Major types of transactions between the Bank and the related parties include deposit taking transactions, loan transactions such as general purpose loans, corporate purchase loans, B2B loans, etc., settlements of funds arising from overseas remittances, providing credit lines through the acceptance of letters of credit issued by the Bank, and overdraft accounts arising from net settlement agreement between the Bank and KB Kookmin Card Co., Ltd.

40.12 Details of collateral provided to related parties as of December 31, 2023 and 2022, are as follows:

			December 31, 2023				December 31, 2022
(In millions of Korean won)	Assets pledged *		Carrying amount		Collateralized amount		Carrying amount		Collateralized amount
Parent’s subsidiaries
KB Securities Co., Ltd.		Securities		77,073		77,000		62,209		62,000
KB Life Insurance Co., Ltd.		Securities		25,431		25,000		25,425		25,000
KB Insurance Co., Ltd.		Securities		50,000		50,000		47,745		50,000

* Collaterals related to lease contracts arising from operating activities between related parties are excluded.

209

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

40.13 Details of collateral provided by related parties as of December 31, 2023 and 2022, are as follows:

(In millions of Korean won)	Assets held as collateral 1	December 31, 2023		December 31, 2022
Subsidiary
KB Core Blind Private Real Estate Fund No.1	Real estate		12,000		12,000
Parent’s subsidiaries
KB Securities Co., Ltd.	Time deposits / Beneficiary right certificate		167,000		167,000
	Securities		71,244		129,196
	Real estate		150,600		—
KB Life Insurance Co., Ltd.	Securities		29,629		138,159
	Real estate		40,638		—
KB Kookmin Card Co., Ltd.	Time deposits		24,421		22,000
KB Insurance Co., Ltd.	Securities		165,000		250,000
	Real estate		—		24,570
KB Credit Information Co., Ltd. 2	Time deposits and others		—		2,228
KB Star Office Private Real Estate Feeder Fund No.4	Real estate		24,000		24,000
KB Logistics Blind Private Real Estate Fund No.1	Real estate		63,000		63,000
Key management personnel	Time deposits and others		638		457
	Real estate		4,892		5,165

¹  Collaterals related to lease contracts arising from operating activities between related parties are excluded.

²  KB Credit Information Co., Ltd. became the subsidiary of KB Kookmin Card Co., Ltd. as of June 30, 2023.

As of December 31, 2023, Incheon Bridge Co., Ltd., a related party, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to W 611,000 million to the project financing group consisting of the Bank and 5 other institutions, and as subordinated collateral amounting to W 384,800 million to subordinated debt holders consisting of the Bank and 2 other institutions. Also, it provides certificate of credit guarantees amounting to W 400,000 million as collateral to the project financing group consisting of the Bank and 5 other institutions.

40.14 The amounts of debt securities and others purchased through KB securities Co., Ltd. are W 8,337,915 million and W 7,341,904 million for the years ended December 31, 2023 and 2022, respectively, and the amounts of debt securities and others sold through KB securities Co., Ltd. are W 6,000,690 million and W 3,791,778 million for the years ended December 31, 2023 and 2022, respectively. In addition, KB Securities Co., Ltd. acquired W 100,000 million and W 50,000 million of debentures issued by the Bank through underwriting for the years ended December 31, 2023 and 2022, respectively.

40.15 The amounts of bonds sold by Kookmin Bank through KB Insurance Co., Ltd. are W 49,629 million won for the year ended December 31, 2023.

40.16 The amounts of intangible assets and others purchased from KB Data System Co., Ltd. are W 16,918 million and W 42,947 million for the years ended December 31, 2023 and 2022, respectively.

40.17 The Bank has entered into CLS (Continuous Linked Settlement) service agreement with KB Securities Co., Ltd. and accordingly the Bank is able to provide intraday liquidity of USD 500 million on the condition of repayment on the day of payment.

210

Kookmin Bank (A wholly owned subsidiary of KB Financial Group Inc.)

Notes to the Separate Financial Statements

December 31, 2023 and 2022

41. Approval of Issuance of the Financial Statements

The issuance of the Bank’s financial statements as of and for the year ended December 31, 2023, was approved by the board of directors on February 6, 2024.

211

Report on Independent Auditor’s

Review of Internal Control over Financial Reporting

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of

Kookmin Bank

We have reviewed the accompanying Operating Status Report of the Internal Control over Financial Reporting (“ICFR”) of Kookmin Bank (the “Company”) as of December 31, 2023. The Company’s management is responsible for designing and operating ICFR and for its assessment of the effectiveness of ICFR. Our responsibility is to review the Operating Status Report of of ICFR and issue a report based on our review. The Operating Status Report of ICFR of the Company states that “Based on the assessment results, Chief Executive Officer and ICFR Officer believe that the Company’s ICFR, as at December 31, 2023, is designed and operating effectively, in all material respects, in accordance with Conceptual Framework for Designing and Operating Internal Control over Financial Reporting”

Our review was conducted in accordance with ICFR review standards established by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform, in all material respects, the review of management’s Operating Status Report of ICFR to obtain a lower level of assurance than an audit. A review is to obtain an understanding of a company’s ICFR and consists principally of inquiries of management and, when deemed necessary, a limited inspection of underlying documents, which is substantially less in scope than an audit.

An entity’s ICFR is a process effected by those charged with governance, management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. An entity’s ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, and that receipts and expenditures of the entity are being made only in accordance with authorizations of management and those charged with governance; and (3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the entity’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on our review, nothing has come to our attention that causes us to believe that management’s Operating Status Report of ICFR, referred to above, is not presented fairly, in all material respects, in accordance with the Best Practice Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting.

Our review is based on the Company’s ICFR as of December 31, 2023, and we did not review management’s assessment of its ICFR subsequent to December 31, 2023. This report has been prepared pursuant to the Acts on External Audit for Stock Companies, etc. in Korea and may not be appropriate for other purposes or for other users.

Samil PricewaterhouseCoopers

March 6, 2024

This report is effective as at March 6, 2024, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the Company’s internal control over financial reporting thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

212

Operating Status Report of

the Internal Control over Financial Reporting

To the Shareholder, Board of Directors and Audit Committee of Kookmin Bank

We, as the Chief Executive Officer and the Internal Accounting Manager of Kookmin Bank(“the Company”), assessed operating status of the Company’s Internal Control over Financial Reporting(“ICFR”) for the year ending December 31, 2023.

Design and operation of ICFR is the responsibility of the Company’s management, including the Chief Executive Officer and the Internal Accounting Manager(collectively, “We”, “Our” or “Us”).

We evaluated whether the Company effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in financial statements to ensure preparation and disclosure of reliable financial information.

We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee of Internal Control over Financial Reporting in Korea(the “ICFR Committee”) as the criteria for design and operation of the Company’s ICFR. And we conducted an evaluation of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ established by the ICFR Committee.

Based on our assessment, we concluded that the Company’s ICFR is designed and operated effectively as of December 31, 2023, in all material respects, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings of the readers, and we have reviewed and verified this report with sufficient care.

February 21, 2024

Jae Keun Lee,

Chief Executive Officer

Jong Min Lee,

Internal Accounting Manager

213