SHINHAN FINANCIAL GROUP CO., LTD.

Condensed Separate Interim Financial Statements

March 31, 2026 and 2025

(Unaudited)

Contents

Report on Review of Condensed Separate Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

Shinhan Financial Group Co., Ltd.:

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of Shinhan Financial Group Co., Ltd. (the “Company”). These condensed separate interim financial statements consist of the condensed separate interim statement of financial position of the Company as at March 31, 2026, and the related condensed separate interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2026, and material accounting policy information and other selected explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed separate interim financial statements based on our review.

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

Conclusion

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

Other Matters

The condensed separate interim statements of comprehensive income, changes in equity and cash flows for the three-month period ended March 31, 2025, presented herein for comparative purposes, were reviewed by another auditor whose report dated May 15, 2025. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed separate interim financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

The separate statement of financial position as at December 31, 2025, and the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 3, 2026. The separate statement of financial position as at December 31, 2025, presented herein for comparative purposes, is consistent, in all material respects, with the above audited separate statement of financial position as at December 31, 2025.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

/s/ Samil PricewaterhouseCoopers

May 15, 2026

Seoul, Korea

See accompanying notes to the condensed separate interim financial statements.

See accompanying notes to the condensed separate interim financial statements.

See accompanying notes to the condensed separate interim financial statements.

See accompanying notes to the condensed separate interim financial statements.

1. Reporting entity

Shinhan Financial Group Co., Ltd. (the “Company”) was incorporated on September 1, 2001 for the purpose of controlling and managing companies operating in the financial industry and providing financial support to its subsidiaries.

In addition, the shares have been listed on the Korea Exchange since September 10, 2001, and the Company was registered with the Securities and Exchange Commission (SEC) on September 16, 2003, and on the same date, its American Depositary Shares (ADS) were listed on the New York Stock Exchange (NYSE).

2. Basis of preparation

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying separate interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

The condensed separate interim financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”), as prescribed in the Act on External Audit of Stock Companies of the Republic of Korea. These financial statements were prepared in accordance with K-IFRS No.1034, ‘Interim Financial Reporting’ as part of the period covered by the Company’s K-IFRS annual financial statements and contain less information than required in the annual separate financial statements. Selective comments include a description of transactions or events that are significant in understanding the changes in the financial position and management performance of the Company that occurred after December 31, 2025.

The condensed separate interim financial statements of the Company are separate financial statements prepared in accordance with K-IFRS No.1027 ‘Separate Financial Statements’, in which a parent, an investor in an associate or participant in a joint venture account for its investment on the basis of direct equity interest rather than on the basis of the investee’s reported performance and net assets.

(b) Use of estimates and judgments

The preparation of the condensed separate interim financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions about estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Income tax expense in the interim period is measured by applying the expected annual income tax rate, i.e. the estimated average annual effective income tax rate.

In preparing the condensed separate interim financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the separate financial statements as of and for the year ended December 31, 2025 except for the method of estimation used to determine the income tax expense for the interim period.

3. Material accounting policies

(a) The Company applies the same accounting policies as in the preparation of the annual separate financial statements for the year ended December 31, 2025, except for the following amendments first applied from January 1, 2026, as described in Note 2(b).

i) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’

To address questions raised in practice and incorporate new requirements, Korean IFRS No. 1109 ‘Financial Instruments’ and No. 1107 ‘Financial Instruments: Disclosures’ have been amended. There is no significant impact on the separate financial statements from these amendments.

- Permit a financial liability to be regarded as settled (derecognized) through an electronic payment system before the settlement date, provided that specified criteria are met.

- Clarify and add further guidance for assessing whether financial assets meet the criterion of consisting solely of payments of principal and interest (SPPI).

- Require disclosure, by each class of financial instruments, of the effects of contractual terms that may change the timing or amount of contractual cash flows, as well as the extent of the entity’s exposure.

- Require additional disclosures for equity instruments designated at FVOCI.

ii) Annual Improvements to K-IFRS Volume 11

Annual Improvements to K-IFRS Volume 11 are effective for annual reporting periods beginning on or after January 1, 2026. There is no significant impact on the separate financial statements from these amendments.

- K-IFRS No. 1101 ‘First-time adoption of Korean International Financial Reporting Standards’ – Hedge accounting by a first-time adopter

- K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ – Gain or loss on derecognition

and Guidance on implementing K-IFRS No. 1107

- K-IFRS No. 1109 ‘Financial Instruments’ – Derecognition of lease liabilities and transaction price

- K-IFRS No. 1110 ‘Consolidated Financial Statements’ – Determination of ‘de facto agent’

- K-IFRS No. 1007 ‘Statement of Cash Flows’ – Cost method

iii) Amendments to K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1107 ‘Financial Instruments: Disclosures’ - Contracts referencing nature-dependent electricity

Contracts referencing nature-dependent electricity were defined as contracts in which an entity is exposed to variability in the underlying volume of electricity because the source of electricity generation depends on uncontrollable natural conditions (e.g., weather). It was also clarified that contracts to purchase or sell nature-dependent electricity are subject to assessment for the own-use exemption. In addition, the hedge accounting requirements were amended to allow the variable nominal amount of forecast nature-dependent electricity transactions to be designated as a hedged item, and related disclosure requirements were added. There is no significant impact on the separate financial statements from these amendments.

i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’

K-IFRS No. 1118, ‘Presentation and Disclosure in Financial Statements’, replaces K-IFRS 1001, ‘Presentation of Financial Statements’. K-IFRS No. 1118 is expected to enhance comparability of financial performance among similar entities by providing information useful to users of financial statements in analyzing and comparing an entity’s performance, with a particular focus on the statement of profit or loss.

3. Material accounting policies (continued)

(b) As of March 31, 2026, the newly enacted and disclosed but not yet effective new K-IFRS are as follows (continued):

i) K-IFRS No. 1118 ‘Presentation and Disclosure in Financial Statements’(continued)

When the Company prepares its financial statements in accordance with K-IFRS No. 1118, the principal accounting policies that may result in significant differences from the current financial statements are as follows. These matters do not include all possible differences that may arise and are subject to change based on further analysis.

K-IFRS No. 1118 requires all income and expenses included in the statement of profit or loss to be classified into one of five categories: operating, investing, financing, income tax, and discontinued operations. The Standard classifies all income and expenses not included in the investing, financing, income tax, or discontinued operations categories as operating, and defines operating profit or loss as a residual measure.

The Company is required to assess its main business activities in order to classify income and expenses into categories. If the Company’s main business activities include investing in a particular type of asset or providing financing to customers, certain income and expenses that would otherwise have been classified in the investing or financing categories are classified in the operating category.

Accordingly, operating profit or loss under K-IFRS No. 1118 may differ significantly from operating profit or loss as defined under K-IFRS No. 1001, which is generally calculated as operating revenue less operating expenses. K-IFRS No. 1118 requires disclosure in the notes of operating profit or loss as determined under K-IFRS No. 1001, as well as a reconciliation of the differences between operating profit or loss under K-IFRS No. 1118 and that under K-IFRS No. 1001.
 

In addition, K-IFRS No. 1118 requires the presentation of the following subtotals in the statement of profit or loss: ‘operating profit or loss’, comprising all income and expenses classified in the operating category; ‘profit or loss before financing and income tax’, comprising operating profit or loss and all income and expenses classified in the investing category; and ‘profit or loss’. However, if the Company’s main business activity is to provide financing to customers, the presentation of ‘profit or loss before financing and income tax’ may not be required, depending on the accounting policy elected.

K-IFRS No. 1118 introduces disclosure requirements for management-defined performance measures (MPMs), which are used by management in public communications outside the financial statements to convey management’s view of the entity’s overall financial performance. MPMs are defined as subtotals of income and expenses that are not specified in paragraph 118 of K-IFRS No. 1118 and are not otherwise required to be presented or disclosed by the Standard.

If MPMs are used, the Company is required to disclose the reasons for using such measures, how they are calculated, a reconciliation to the most directly comparable subtotal specified by K-IFRS No. 1118, the tax effects of each reconciling item, and the effects on non-controlling interests.

As a result of the issuance of K-IFRS No. 1118, certain amendments were made to K-IFRS No. 1007, ‘Statement of Cash Flows’. Under these amendments, the starting point for determining cash flows from operating activities using the indirect method has been changed from profit for the period to operating profit or loss, and the option to classify cash flows related to interest and dividends has been removed.

K-IFRS No. 1118 is effective for annual periods beginning on or after January 1, 2027, with early adoption permitted. Entities are required to apply the Standard retrospectively in accordance with K-IFRS No. 1008, ‘Accounting Policies, Changes in Accounting Estimates and Errors’. Accordingly, comparative information for the year ending December 31, 2026 will be restated in accordance with K-IFRS No. 1118. Amendments to K-IFRS No. 1007 and K-IFRS No. 1033 resulting from the issuance of K-IFRS No. 1118, as well as amendments to K-IFRS No. 1008 and K-IFRS No. 1107, become effective upon application of K-IFRS No. 1118.

The Company has not applied K-IFRS No. 1118 as its mandatory effective date has not yet been reached, and it plans to present its first interim financial statements for the period ending March 31, 2027 in accordance with K-IFRS No. 1118. Based on information available as of March 31, 2026, the Company is conducting a preliminary overall assessment of the impact of adopting K-IFRS No. 1118.

4. Financial risk management

(a) Overview

The Company manages various risks that may arise within the business sector of Shinhan Financial Group Co., Ltd. (the “Group”) and the major risks to which the Group is exposed include credit risk, market risk, interest rate risk, and liquidity risk. These risks are recognized, measured, controlled and reported in accordance with risk management guidelines established at the parent company level and the subsidiary level.

i) Risk management principles

The risk management principles of the Group are as follows:

- All business activities take into account the balance of risks and profits within a predetermined risk appetite.

- The parent company shall present the Group Risk Management Model Standard, supervise their compliance, and have responsibility and authority for group-level monitoring.

- Operate a risk-related decision-making system that enhances management's involvement.

- Organize and operate risk management organizations independent of the business sector.

- Operate a performance management system that clearly considers risks when making business decisions.

- Aim for preemptive and practical risk management functions.

- Share a cautious view to prepare for possible deterioration of the situation.

ii) Risk management organization

The fundamental policies for risk management of the Group are established by the Board of Directors of the parent company, while the basic risk management strategies are established by the Risk Management Committee (the “Group Risk Management Committee”) within the parent company’s Board of Directors. The Group's Chief Risk Officer (CRO) assists the Group Risk Management Committee and consults the risk management policies and strategies of the group and each subsidiary through the Group Risk Council, which includes the Chief Risk Officer of each subsidiary. The subsidiaries implement the risk management policies and strategies of the Group through their risk management committees, risk-related committees, and risk management organizations, and consistently establish and implement the detailed risk management policies and strategies. The risk management department of the Company assists the Group's Chief Risk Officer for risk management and supervision.

The Company has a hierarchical limit system to manage the risks of the Group to an appropriate level. The Group Risk Management Committee sets the risk limits that can be acceptable by the Group and each subsidiary, while the Risk Management Committee and the management-level risk Committees of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.

ii-1) Group Risk Management Committee

The Committee establishes the risk management framework for the Company and each of its subsidiaries and comprehensively manages Group-wide risk-related matters, including the establishment of the Group’s fundamental risk management policies and strategies and the approval of limits. The Committee consists of directors of the parent company.

The resolution of the Committee is as follows:

- Establish risk management basic policy in line with management strategy

- Determine the level of risk that can be assumed by the Group and each subsidiary

- Approve the appropriate investment limits or loss allowance limit

- Enact and amend the Group Risk Management Regulations and the Group Risk Council Regulations

- Matters concerning risk management organizational structure and division of duties

- Matters concerning the operation of the risk management system

- Matters concerning the establishment of various limits and approval of limits

4. Financial risk management (continued)

(a) Overview (continued)

ii-1) Group Risk Management Committee(continued)

- Make decisions on approval of the FSS's internal rating based approach for non-retail and retail credit rating systems

- Matters concerning risk disclosure policy

- Crisis situation analysis results and related capital management plans and financing plans

- Matters deemed necessary by the Board of Directors

- Matters required by external regulations such as the Financial Services Commission and other regulations and guidelines

- Matters deemed necessary by the Chairman

ii-2) Group Risk Management Council

In order to maintain the Group's risk management policies and strategies consistently, the Company resolves matters necessary to discuss overall risk-related issues and to implement the policies set by the Group Risk Management Committee. The members are chaired by the Group’s Chief Risk Officer and shall consist of the Chief Risk Officers of major subsidiaries.

iii) Group Risk Management System

iii-1) Management of the Risk Capital

Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The Company and its subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management and establish a risk limit management system to control risk to an appropriate level.

iii-2) Risk monitoring

In order to proactively manage risks by periodically identifying risk factors that can affect the Group's business environment, the Company has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Company on key issues that affect risk management at the Group level. The Company prepares weekly, monthly and ad-hoc monitoring reports for Group management, including the CRO.

In addition, the Risk Dashboard is operated to derive abnormal symptoms through three-dimensional monitoring of major portfolios, increased risks, and external environmental changes of assets for each subsidiary. If necessary, the Company takes preemptive risk management to establish and implement countermeasures.

iii-3) Risk reviewing

When promoting new products and businesses or implementing major policy changes, risk factors are reviewed using a pre-defined checklist to prevent the promotion of businesses where risks are difficult to assess and to support rational decision-making.

The risk management departments of subsidiaries conduct prior reviews of new products, services, and business initiatives and monitor associated risks on an ongoing basis after implementation. In cases involving multiple subsidiaries or joint initiatives, the relevant risk management departments are required to consult with the risk management function of the parent company prior to conducting risk reviews.

iii-4) Crisis management

The Company maintains a groupwide crisis management system to detect the signals of any risk crisis preemptively and, in the event of a crisis actually happening, to respond on a timely, efficient and flexible basis so as to ensure the Group’s survival as a going concern. Each subsidiary maintains crisis planning for four levels of contingencies, namely, ‘cautious’, ‘alert’, ‘imminent crisis’ and ‘crisis’, determination of which is made based on quantitative and qualitative monitoring and consequence analysis, and upon the

4. Financial risk management (continued)

(a) Overview (continued)

iii-4) Crisis management (continued)

happening of any such contingency, is required to respond according to a prescribed contingency plan. At the parent company level, the Company maintains and installs a crisis detection and response system which is applied consistently group-wide, and upon the happening of any contingency at two or more subsidiary levels, the Company directly takes charge of the situation so that the Company manages it on a concerted group wide basis.

(b) Credit risk

Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and is the largest risk which the Company faces. The Company’s credit risk management encompasses all areas of credit that may result in potential economic loss, including not just transactions that are recorded on the balance sheet, but also off-balance-sheet transactions such as guarantees, loan commitments and derivative transactions.

i) Techniques, assumptions and input variables used to measure impairment

i-1) Determining significant increases in credit risk since initial recognition

At the end of each reporting period, the Company assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make the assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, and is indicative of significant increases in credit risk since initial recognition. Information includes the default experience data held by the Company and analysis by an internal credit rating expert.

The Company assigns an internal credit risk rating to each individual exposure based on observable data and historical experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which may vary depending on the nature of the exposure and the type of borrower.

Internal credit rating is a key input variable for determining term structure of probability of default. The Company accumulates information after analyzing the information regarding exposure to credit risk and default information by the type of product and borrower and results of internal credit risk assessment. For some portfolios, the Company uses information obtained from external credit rating agencies when performing these analyses. The Company applies statistical techniques to estimate the probability of default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.

The Company uses the indicators defined as per portfolio to determine the significant increase in credit risk, and such indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating, qualitative factors, days of delinquency, and others.

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions and input variables used to measure impairment (continued)

i-2) Risk of default

The Company considers a financial asset to be in default if it meets one or more of the following conditions:

- If a borrower is overdue by 90 days or more from the contractual payment date,

- If the Company judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset

The Company uses the following indicators when determining whether a borrower is in default:

- Qualitative factors (e.g. breach of contractual terms),

- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Company, the number of days past due per payment obligation. However, in the case of a specific portfolio, the Company uses the number of days past due for each financial instrument)

- Internal observation data and external data

The definition of default applied by the Company generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has occurred and the extent thereof may vary.

i-3) Reflection of forward-looking information

The Company reflects forward-looking information presented by internal experts based on a variety of information when measuring expected credit losses. For the purpose of estimating this forward-looking information, the Company utilizes the economic outlook published by domestic and overseas research institutes or government and public agencies.

The Company analyzed data from its past experience, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast information through regression estimation.

The predicted correlations between the macroeconomic variables and the risk of default, used by the Company, are derived based on long-term data over the past ten years.

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions and input variables used to measure impairment (continued)

i-4) Measurement of expected credit losses

Key variables used in measuring expected credit losses are as follows:

- Probability of default (“PD”)

- Loss given default (“LGD”)

- Exposure at default (“EAD”)

These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Company and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Company uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades is adjusted, and the PD for each rating grade is estimated by taking into account the contractual maturity of the exposure.

LGD refers to the expected loss in the event of a default. The Company calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Company derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying amount of the assets, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

In measuring expected credit losses on financial assets, the Company uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed taking into account the extension right held by the borrower.

Risk factors of PD, LGD and EAD are collectively estimated according to the following criteria:

- Type of products

- Internal credit risk rating

- Type of collateral

- Loan to value (“LTV”)

- Industry that the borrower belongs to

- Location of the borrower or collateral

- Days of delinquency

The criteria for classifying groups are periodically reviewed to maintain homogeneity within groups and adjusted if necessary. The Company uses external benchmark information to supplement internal data for portfolios where sufficient historical data is not available internally.

4. Financial risk management (continued)

(b) Credit risk (continued)

i) Techniques, assumptions and input variables used to measure impairment (continued)

i-5) Write-off of financial assets

The Company writes off a portion of or entire loan or debt security for which the Company does not expect to receive its principal and interest. In general, the Company writes off the balance when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. Such determination on write-off is carried out in accordance with the internal rules of the Company and is carried out with the approval of the Financial Supervisory Service, if necessary. The Company may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

ii) Maximum exposure to credit risk

The maximum exposure to credit risk of financial instruments, excluding equity instruments, as of March 31, 2026 and December 31, 2025 is as follows:

(*1) The maximum exposure amounts for due from banks, loans, and other financial assets at amortized cost are the net carrying amount after deducting the allowance for credit losses.

(*2) Other financial assets mainly comprise accounts receivable, accrued income, and guarantee deposits.

4. Financial risk management (continued)

(b) Credit risk (continued)

iii) Impairment information by credit risk of financial assets

Details of impairment of financial assets measured at amortized cost as of March 31, 2026 and December 31, 2025 are as follows:

(*) Credit quality of due from banks and loans is divided into Prime and Normal. Credit quality of due from banks and loans as of March 31, 2026 and December 31, 2025 is classified as Prime. The distinction between Prime grade and Normal grade is as follows:

4. Financial risk management (continued)

(c) Liquidity risk

Liquidity risk refers to the risk of unexpected losses (such as the disposal of assets at abnormal prices, high interest-rate financing, etc.) or insolvency due to inconsistency in funding periods between assets and liabilities or a sudden outflow of funds.

In accordance with the Financial Holding Companies Act, the Company manages liquidity such that, at each month-end, the total amount of assets with a residual maturity of one month or less in the statement of financial position exceeds the total amount of liabilities with a residual maturity of one month or less.

The maturity analysis of non-derivative financial liabilities as of March 31, 2026 and December 31, 2025 is as follows:

(*) These amounts include both principal and interest cash flows of financial liabilities.

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments

The fair values of financial instruments being traded in an active market are determined by the published market prices of each period end. The published market prices of financial instruments being held by the Company are based on the trading agencies’ notifications.

If the market for a financial instrument is not active, such as OTC (Over-The-Counter market) derivatives, fair value is determined either by using a valuation technique or independent third-party valuation service. The Company uses its judgment to select a variety of methods and make rational assumptions that are mainly based on market conditions existing at the end of each reporting period.

The fair value of financial instruments is determined using various valuation techniques, including recent transactions between independent parties conducted on an arm’s length basis, reference to the current fair value of other substantially identical financial instruments where available, discounted cash flow methods, and option pricing models.

The Company classifies and discloses fair value of financial instruments into the following three-level hierarchy:

i) Financial instruments measured at fair value

i-1) The fair value hierarchy of financial assets measured at fair value as of March 31, 2026 and December 31, 2025 is as follows:

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

i) Financial instruments measured at fair value (continued)

i-2) Classification of financial instruments as fair value level 3

Changes in carrying amounts of financial instruments classified as Level 3 for the three-month period ended March 31, 2026 and for the year ended December 31, 2025 are as follows:

i-3) Valuation techniques and input variables unobservable in markets

i-3-1) Valuation techniques and input variables used in measuring the fair value of financial instruments classified as level 2 as of March 31, 2026 and December 31, 2025 are as follows:

4. Financial risk management (continued)

(d) Measurement for the fair value of financial instruments (continued)

i) Financial instruments measured at fair value (continued)

i-3) Valuation techniques and input variables unobservable in markets (continued)

i-3-2) Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of March 31, 2026 and December 31, 2025 are as follows: