.2

WOORI FINANCIAL GROUP INC.

CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED June 30, 2026 and 2025

WOORI FINANCIAL GROUP INC.

 

		Page(s)
Independent Auditors’ Review Report			1-2
Separate Interim Financial Statements
Separate Interim Statements of Financial Position			4
Separate Interim Statements of Comprehensive Income			5
Separate Interim Statements of Changes in Equity			6
Separate Interim Statements of Cash Flows			7
Notes to the Separate Interim Financial Statements			8-41

Independent Auditor’s Review Report

Based on a report originally issued in Korean

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

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of Woori Financial Group Inc. (the “Company”), which comprise the condensed separate interim statement of financial position as of June 30, 2026, the condensed separate interim statements of comprehensive income for three-month and six-month periods ended June 30, 2026, and 2025, the condensed separate interim statement of changes in equity and cash flows for the six-month periods ended June 30, 2026, and 2025 and notes, comprising of material accounting policy information and other explanatory information.

Management’s Responsibility

Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No.1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of the condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Review Responsibility

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

We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements 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 referred to above do not present fairly, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

 

- 1 -

Other Matters

The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries.

The separate statement of financial position of the Company as of December 31, 2025, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and their report thereon, dated March 4, 2026, expressed an unqualified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2025, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

August 14, 2026

 

 

- 2 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED June 30, 2026 and 2025

The accompanying condensed separate interim financial statements including all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Jong Yong Yim

President and Chief Executive Officer

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

(Phone Number) 02-2125-2000

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2026 (UNAUDITED) AND DECEMBER 31, 2025

 

		June 30, 2026				December 31, 2025
		(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 5 and 26)			311,083				489,321
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 6 and 8)			549,882				558,162
Loans and other financial assets at amortized cost (Notes 4, 7, 8 and 26)			285,359				707,142
Investments in subsidiaries (Notes 9 and 26)			26,599,124				25,597,495
Premises and equipment			3,169				4,763
Intangible assets			4,386				2,961
Net defined benefit asset (Note 13)			268				2,108
Current tax assets			118,616				26,295
Deferred tax assets			7,140				5,810
Other assets (Note 10)			245				315
Total assets			27,879,272				27,394,372
LIABILITIES
Debentures (Notes 4, 8 and 11)			3,536,620				2,667,525
Provisions (Note 12)			1,571				1,897
Current tax liabilities			199,152				673,217
Other financial liabilities (Notes 4, 8, 14 and 26)			236,422				95,822
Other liabilities (Note 14)			405				5,967
Total liabilities			3,974,170				3,444,428
EQUITY (Note 15)
Capital stock			3,802,676				3,802,676
Hybrid securities			3,510,805				3,710,228
Capital surplus			8,120,236				8,120,236
Other equity			(1,958	)			2,607
Retained earnings			8,473,343				8,314,197
Total equity			23,905,102				23,949,944
Total liabilities and equity			27,879,272				27,394,372

The accompanying notes are part of these condensed separate interim financial statements.

 

- 4 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2026 AND 2025 (UNAUDITED)

 

		Periods ended June 30, 2026								Periods ended June 30, 2025
		Three-month				Six-month				Three-month				Six-month
		(Korean Won in millions, except for earnings per share data)
Interest income			2,684				5,674				13,018				21,628
Interest expense			(23,460	)			(42,341	)			(18,209	)			(35,022	)
Net interest loss (Notes 17 and 26)			(20,776	)			(36,667	)			(5,191	)			(13,394	)
Fees and commissions income			444				887				417				876
Fees and commissions expense			(7,123	)			(14,583	)			(8,402	)			(13,642	)
Net fees and commissions loss (Notes 18 and 26)			(6,679	)			(13,696	)			(7,985	)			(12,766	)
Dividend income (Notes 19 and 26)			6,545				1,249,918				6,193				1,435,418
Reversal (Provision) of impairment losses due to credit loss (Notes 20 and 26)			655				—				289				(115	)
General and administrative expenses (Notes 21 and 26)			(17,234	)			(41,093	)			(21,727	)			(40,148	)
Operating income (expense)			(37,489	)			1,158,462				(28,421	)			1,368,995
Non-operating income (expense) (Note 22)			(43	)			(43	)			19				13
Net income (expense) before income tax expense			(37,532	)			1,158,419				(28,402	)			1,369,008
Income tax income (expense) (Note 23)			(18	)			(1,026	)			1,133				(212	)
Net income (loss)			(37,550	)			1,157,393				(27,269	)			1,368,796
Net gain (loss) on valuation of equity securities at FVTOCI (Note 15)			(1,433	)			(6,002	)			4,302				6,988
Remeasurement gain (loss) related to defined benefit plan (Notes 13 and 15)			341				(208	)			(141	)			(1,101	)
Items that will not be reclassified to profit or loss:			(1,092	)			(6,210	)			4,161				5,887
Other comprehensive income (loss), net of tax			(1,092	)			(6,210	)			4,161				5,887
Total comprehensive income (loss)			(38,642	)			1,151,183				(23,108	)			1,374,683
Earnings (Loss) per share (Notes 15 and 24)
Basic and diluted earnings (loss) per share (Unit: In Korean Won)			(105	)			1,476				(86	)			1,749

The accompanying notes are part of these condensed separate interim financial statements.

 

- 5 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2026 AND 2025 (UNAUDITED)

 

		Capital stock				Capital surplus				Hybrid securities				Other equity				Retained earnings				Total equity
		(Korean Won in millions)
January 01, 2025			3,802,676				11,120,236				3,810,225				(1,189	)			5,420,783				24,152,731
Total comprehensive income
Net income			—				—				—				—				1,368,796				1,368,796
Net gain on valuation of equity securities at FVTOCI			—				—				—				6,988				—				6,988
Remeasurement loss related to defined benefit plan			—				—				—				(1,101	)			—				(1,101	)
Transactions with owners
Dividends to common stocks			—				—				—				—				(637,502	)			(637,502	)
Issuance of hybrid securities			—				—				398,789				—				—				398,789
Dividends to hybrid securities			—				—				—				—				(75,672	)			(75,672	)
Redemption of hybrid securities			—				—				(698,277	)			(1,723	)			—				(700,000	)
Transfer of redemption loss of hybrid securities to retained earnings			—				—				—				2,456				(2,456	)			—
Acquisition of treasury stocks			—				—				—				(150,000	)			—				(150,000	)
Transfer to retained earnings			—				(3,000,000	)			—				—				3,000,000				—
June 30, 2025 (Unaudited)			3,802,676				8,120,236				3,510,737				(144,569	)			9,073,949				24,363,029
January 01, 2026			3,802,676				8,120,236				3,710,228				2,607				8,314,197				23,949,944
Total comprehensive income
Net income			—				—				—				—				1,157,393				1,157,393
Net loss on valuation of equity securities at FVTOCI			—				—				—				(6,002	)			—				(6,002	)
Remeasurement loss related to defined benefit plan			—				—				—				(208	)			—				(208	)
Transactions with owners
Dividends to common stocks			—				—				—				—				(717,958	)			(717,958	)
Dividends to hybrid securities			—				—				—				—				(78,067	)			(78,067	)
Redemption of hybrid securities			—				—				(199,423	)			(577	)			—				(200,000	)
Transfer of redemption loss of hybrid securities to retained earnings			—				—				—				2,222				(2,222	)			—
Acquisition of treasury stocks			—				—				—				(200,000	)			—				(200,000	)
Retirement of treasury stocks			—				—				—				200,000				(200,000	)			—
June 30, 2026 (Unaudited)			3,802,676				8,120,236				3,510,805				(1,958	)			8,473,343				23,905,102

The accompanying notes are part of these condensed separate interim financial statements.

 

- 6 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2026 AND 2025 (UNAUDITED)

 

		For the six-month periods ended June 30
		2026				2025
		(Korean Won in millions)
Cash flows from operating activities:
Net income			1,157,393				1,368,796
Adjustments to net income:
Income tax expense			1,026				212
Interest income			(5,674	)			(21,628	)
Interest expense			42,341				35,022
Dividend income			(1,249,918	)			(1,435,418	)
			(1,212,225	)			(1,421,812	)
Adjustments for profit/loss items not involving cash flows:
Provision of impairment losses due to credit loss			—				115
Retirement benefit			2,569				2,770
Depreciation and amortization			2,158				2,860
Gain on disposal of premises and equipment, intangible assets and other assets			—				(4	)
			4,727				5,741
Changes in operating assets and liabilities:
Loans and other financial assets at amortized cost			(52,673	)			(14,905	)
Other assets			70				47
Net defined benefit liability			(1,015	)			(1,921	)
Other financial liabilities			47,867				12,689
Other liabilities			(5,562	)			(46	)
			(11,313	)			(4,136	)
Interest income received			6,036				21,660
Interest expense paid			(37,371	)			(32,792	)
Dividends received			1,249,947				1,435,668
Income tax paid			(2,008	)			(1,967	)
Net cash provided by operating activities			1,155,186				1,371,158
Cash flows from investing activities:
Net increase on other investment assets			—				(200,140	)
Acquisition of investments in subsidiaries			(1,001,629	)			—
Acquisition of financial assets at FVTOCI			—				(150,000	)
Disposal of financial assets at FVTOCI			—				150,000
Acquisition of premises and equipment			(448	)			(63	)
Acquisition of intangible assets			(1,763	)			(410	)
Net cash used in investing activities			(1,003,840	)			(200,613	)
Cash flows from financing activities:
Issuance of debentures			1,108,083				598,958
Redemption of debentures			(240,000	)			(100,000	)
Issuance of hybrid securities			—				398,789
Redemption of hybrid securities			(200,000	)			(700,000	)
Acquisition of treasury stocks			(200,000	)			(149,860	)
Redemption of lease liabilities			(1,642	)			(1,593	)
Dividends paid to hybrid securities			(78,067	)			(75,672	)
Dividends paid			(717,958	)			(637,502	)
Net cash used in financing activities			(329,584	)			(666,880	)
Net increase (decrease) in cash and cash equivalents			(178,238	)			503,665
Cash and cash equivalents, beginning of the period			489,321				1,185,912
Cash and cash equivalents, end of the period (Note 5)			311,083				1,689,577

The accompanying notes are part of these condensed separate interim financial statements.

 

- 7 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

1.

GENERAL

 

(1)	Summary of the parent company

Woori Financial Group, Inc. (hereinafter referred to the “Company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank, Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,802,676 million Won. The Company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

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

 

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

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

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

As of December 30, 2019, the Company acquired 67.2% interests (excluding treasury stock, 51.0% when including treasury stock) in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.) In addition, as of March 31, 2023, the Company acquired an additional 28.1% interests in Woori Asset Trust Co. (excluding treasury stock, 21.3% when including treasury stock).

As of December 10, 2020, the Company acquired 76.8% interests (excluding treasury stock, 74.0% when including treasury stock) in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.). In addition, as of April 15, 2021, the Company acquired an additional 13.3% interests in Woori Financial Capital Co., Ltd. (excluding treasury stock, 12.9% in the case of including treasury stock), and as of May 24, 2021, the Company additionally acquired treasury stock(3.6%) which Woori Financial Capital possessed.

As of March 12, 2021, the Company paid 113,238 million Won in cash to acquire 100% interests on Woori Savings Bank from Woori Financial Capital Co., Ltd., our subsidiary.

As of August 10, 2021, the Company paid 5,792,866 new shares of the Company to the shareholders of Woori Financial Capital Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (9.5%) of Woori Financial Capital Co., Ltd., to make it a wholly owned subsidiary.

As of January 7, 2022, Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies, was established (100% stock, 200 billion Won in stock payments) and incorporated as a subsidiary.

 

- 8 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

As of March 23, 2023, the Company acquired 53.9% interests in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.) (excluding treasury stock, 52.0% in the case of including treasury stock). In addition, as of May 30, 2023, the Company additionally acquired treasury stock held by Woori Venture Partners Co., Ltd. (3.5%).

As of August 8, 2023, the Company paid 22,541,465 new shares of the Company to the shareholders of Woori Investment Bank Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (41.3%) of Woori Investment Bank Co., Ltd., to make it a wholly owned subsidiary. In addition, on the same day, the Company paid 9,933,246 new shares of the Company to the shareholders of Woori Venture Partners Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (44.5%) of Woori Venture Partners Co., Ltd., to make it a wholly owned subsidiary.

As of January 29, 2024, the Company owned interest (77.5%) of Woori Asset Management Corp, as a result of merger with Woori Asset Management Corp (surviving company) and Woori Global Asset Management Co., Ltd. (dissolution company), which was liquidated. As of March 29, 2024, the Company acquired residual interest(22.5%) of Woori Asset Management Corp, to make it a wholly owned subsidiary.

On March 25, 2024, the Company participated in the capital increase and acquired the 1,062,045 shares (96.7% after acquiring shares, 79.4% including treasury shares) of Woori Asset Trust Co., Ltd.. Additionally, on March 29, 2024, Woori Asset Trust Co., Ltd. conducted a complete retirement of its 738,000 treasury shares. In addition, as of April 8, 2024, the Company additionally acquired minority interests (2.0%) of Woori Asset Trust Co., Ltd.. Afterward, the Company additionally acquired minority interests (0.9%) of Woori Asset Trust Co., Ltd. as of November 19, 2024.

On August 1, 2024, The Company owned 97.1% interest in merged securities firm as a result of merger between Korea Foss Securities (the surviving company) and Woori Investment Bank Co., Ltd. (dissolution company), and acquired an additional 2.3% out of the remaining interest. The merged securities company also changed its name to Woori Investment Securities Co., Ltd.

As of July 1, 2025, the Company acquired a 77.9% equity interest in Tongyang Life Insurance Co., Ltd. (75.3% including treasury shares) and a 100% equity interest in ABL Life Insurance Co., Ltd., and accordingly included them as subsidiaries.

As of July 31, 2025, the Company acquired the remaining equity interest (0.4%) in Woori Asset Trust Co., Ltd., thereby making Woori Asset Trust Co., Ltd. a wholly owned subsidiary.

As of November 28, 2025, the Company additionally acquired minority interests (0.2%) in Woori Investment Securities Co., Ltd. Thereafter, as of December 19, 2025, the Company additionally acquired treasury shares (0.1%) and minority interests (0.2%) held by Woori Investment Securities Co., Ltd.

As of January 5, 2026 and March 13, 2026, the Company acquired the remaining equity interest (0.1%) in Woori Investment Securities Co., Ltd., thereby making Woori Investment Securities Co., Ltd. a wholly owned subsidiary.

 

2.	BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

The Company’s financial statements are condensed interim financial statements prepared in accordance with Korean IFRS 1034, Interim Financial Reporting for some of periods in which the annual separate financial statements belong. They are also separate financial statements prepared in accordance with Korean IFRS 1027 Separate Financial Statements. It is necessary to use the Company’s annual separate financial statements for the year ended December 31, 2025 for understanding of the accompanying condensed interim financial statements.

Except for the impacts on the newly adopted standards and interpretations explained below, the accounting policies applied in preparing the accompanying separate interim financial statements have been applied consistently with the annual separate financial statements as of and for the year ended December 31, 2025. The accompanying condensed interim financial statements contain less information compared to the information required in the annual financial statements. Selective footnotes include explanations of transactions or events that are significant for understanding the changes in the financial position and performance of the Company since the end of the previous annual reporting period.

 

- 9 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

(1)	From the accounting period beginning on January 1, 2026, the Company has newly applied the following standards and interpretations.

 

1)

Amendments to K-IFRS 1109 ‘Financial Instruments’, K-IFRS 1107 ‘Financial Instruments: Disclosures’

K-IFRS 1109 ‘Financial Instruments’ and K-IFRS 1107 ‘Financial Instruments: Disclosures’ have been amended to respond to recent questions arising in practice, and to include new requirements. The principal amendments are as follows, and the amendments do not have a significant impact on the financial statements.

 

•

clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

 

•

clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

 

•

add new disclosures of impact on the entity and the extent to which the entity is exposed for each type of financial instruments if the timing or amount of contractual cash flow changes due to amendment of contract term; and

 

•

update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI)

 

2)

Annual Improvements to K-IFRS

Annual Improvements to K-IFRS should be applied for annual periods beginning on or after January 1, 2026. The amendments do not have a significant impact on the financial statements.

 

•

K-IFRS 1101 ‘First-time Adoption of International Financial Reporting Standards’: Hedge accounting by a first-time adopter

 

•

K-IFRS 1107 ‘Financial Instruments: Disclosures’: Gain or loss on derecognition, and implementation guidance

 

•

K-IFRS 1109 ‘Financial Instruments’: Derecognition of lease liabilities and definition of transaction price

 

•

K-IFRS 1110 ‘Consolidated Financial Statements’: Determination of a ‘de facto agent’

 

•

K-IFRS 1007 ‘Statement of Cash Flows’: Cost method

 

3)

Amendments to K-IFRS 1109 ‘Financial Instruments’ and K-IFRS 1107 ‘Financial Instruments: Disclosures—Contracts Referencing Nature-dependent Electricity’

Contracts referencing nature-dependent electricity are defined contracts that expose an entity to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions (for example, the weather). The amendments clarify that ‘contracts to buy or sell such electricity’ are assessed for eligibility under the own-use exemption. In addition, the amendments modify hedge accounting requirements by allowing an entity to designate as the hedged item a variable nominal amount of forecast electricity transactions that reflect the nature-dependent variability of electricity and introduce additional disclosure requirements. The amendments do not have a significant impact on the financial statements.

 

(2)	The details of K-IFRSs that have been issued and published since January 1, 2026 but have not yet reached the effective date are as follows:

 

1)

Issuance of K-IFRS No. 1118, Presentation and Disclosure in Financial Statements

K-IFRS No. 1118, ‘Presentation and Disclosure in Financial Statements,’ replaces K-IFRS No. 1001, ‘Presentation of Financial Statements’. The new standard introduces revised presentation requirements that are expected to enhance the comparability of financial performance among similar entities, particularly with respect to the definition of operating profit or loss.

 

- 10 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

If the Company prepares its financial statements in accordance with K-IFRS No. 1118, certain significant differences from the current financial statements are expected to arise. The key accounting policies that are expected to result in such differences are described below. These matters do not represent all differences that may arise in the future and are subject to change based on further analysis.

 

•

Changes in the Presentation of Statement of Profit or Loss

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. Under this standard, all income and expenses that are not classified as investing, financing, income tax, or discontinued operations are classified as operating, and operating profit or loss is defined as a residual measure of profit or loss.

To classify income and expenses into categories, the Company is required to assess its main business activities. If the Company’s main business activities include investing in certain types of assets or providing financing to customers, income and expenses that would otherwise have been classified as investing or financing activities are classified as operating activities when such activities constitute the Company’s main business activities.

As a result, operating profit or loss under K-IFRS No. 1118 differs significantly from operating profit or loss under the current K-IFRS No. 1001, which is defined as operating revenue less operating expenses. K-IFRS No. 1118 requires operating profit or loss calculated in accordance with K-IFRS No. 1001 to be disclosed in the Notes, along with a reconciliation 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 in the statement of profit or loss of:

 

•

“Operating profit or loss,” comprising all income and expenses classified within the operating category;

 

•

“Profit or loss before financing and income tax,” comprising operating profit or loss and all income and expenses classified within the investing category; and

 

•

“Profit or loss for the period.”

However, when the Company’s main business activity is providing financing to customers, the presentation of “profit or loss before financing and income tax” may not be applicable, depending on the accounting policy elected.

 

•

Introduction of Disclosures of Management-Defined Performance Measures

K-IFRS No. 1118 introduces new disclosure requirements for management-defined performance measures. These measures are defined as subtotals of income and expenses that are not listed in paragraph 118 of K-IFRS No. 1118 and are not explicitly required to be presented or disclosed by IFRS Accounting Standards. Management-defined performance measures are used by entities in public communications separately from the financial statements to communicate management’s view of the entity’s financial performance to users of the financial statements.

When management-defined performance measures are presented, the entity is required to disclose the reasons for using such measures, the basis of their calculation, a reconciliation to the most directly comparable subtotal specified in K-IFRS No. 1118, and the income tax effects of each reconciling item.

 

•

Changes in the Classification of Cash Flows

As a result of the issuance of K-IFRS No. 1118, certain amendments have been 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 or loss for the period to operating profit or loss. In addition, the accounting policy option regarding the classification of interest and dividend-related cash flows has been eliminated.

 

- 11 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

K-IFRS No. 1118 is effective for annual reporting periods beginning on or after January 1, 2027, with early application permitted. In accordance with K-IFRS No. 1008, Accounting Policies, Changes in Accounting Estimates and Errors, the standard is required to be applied retrospectively. Accordingly, comparative information for the financial year ended December 31, 2026 will be restated in accordance with K-IFRS No. 1118. Amendments to K-IFRS No. 1007 and K-IFRS No. 1033 arising from the issuance of K-IFRS No. 1118, as well as the amended K-IFRSs No. 1008 and No. 1107, will be effective at the time K-IFRS No. 1118 is applied.

 

•

Assessment of Significant Impacts

K-IFRS No. 1118 has not been applied by the Company, as its mandatory effective date has not yet been reached. The Company will present its first interim financial statements in accordance with K-IFRS No. 1118 for the period ending March 31, 2027. Based on information available as of June 30, 2026, the Company is performing a preliminary assessment of the potential impact of the adoption of K-IFRS No. 1118.

 

(3)	Material accounting policies and method of computation used in the preparation of the condensed interim financial statements are consistent with those of the annual financial statements for the year ended December 31, 2025, except for the one described below.

 

1)

Income tax expense

Income tax expense for the interim period is recognized based on the weighted average annual income tax rate expected for the expected gross annual profit. The estimated average annual tax rate is applied to the pre-tax income.

 

2)

Application of the revaluation model to land

The Company has changed its accounting policy for the subsequent measurement of land, which is classified as property, plant and equipment, from the historical cost model to the revaluation model, as management believes that the revaluation model provides more reliable and more relevant information regarding the fair value of land. Accordingly, the accounting policy has been changed effective from the current period.

In accordance with K-IFRS 1016 ‘Property, Plant and Equipment’, when an entity applies the revaluation model as an accounting policy for an asset for the first time, retrospective application is not required. Therefore, the Company has not restated the comparative financial statements for prior periods.

As the Company does not hold any land as of the end of the current period, there is no impact arising from this change in accounting policy.

 

3.	MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

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

The important judgements by the management excluding the estimation methods used to determine corporate income tax expense and the application of revaluation model on accounting policies and the main sources of estimation uncertainty for preparing condensed interim financial statements are identical to ones used in the Company’s annual separate financial statements for the year ended December 31, 2025.

 

- 12 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

4.	RISK MANAGEMENT

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

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

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

(1) Credit risk

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

 

1)

Credit risk management

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

 

2)

Maximum exposure

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

 

						June 30, 2026				December 31, 2025
Loans and other financial assets at amortized cost			Banks				214,917				649,783
			Corporates				70,442				57,359
			Total				285,359				707,142

 

- 13 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

a)

Credit risk exposure by geographical areas

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

 

		June 30, 2026				December 31, 2025
		Korea				Korea
Loans and other financial assets at amortized cost			285,359				707,142

 

b)

Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are finance and insurance, and others in accordance with the Korea Standard Industrial Classification Code as of June 30, 2026 and December 31, 2025 (Unit: Korean Won in millions):

 

June 30, 2026

Finance and insurance

Others

Total

Loans and other financial assets at amortized cost

284,499

860

285,359

 

December 31, 2025

Finance and insurance

Others

Total

Loans and other financial assets at amortized cost

706,348

794

707,142

 

3)

Credit risk exposure

The maximum exposure to credit risk by asset quality as of June 30, 2026 and December 31, 2025 is as follows (Unit: Korean Won in millions):

 

		June 30, 2026
		Stage 1								Stage 2								Stage 3				Total				Loss allowance				Total, net
Financial assets		Above appropriate credit rating (*1)				Less than a limited credit rating (*2)				Above appropriate credit rating (*1)				Less than a limited credit rating (*2)
Loans and other financial assets at amortized cost			285,359				—				—				—				—				285,359				—				285,359
Banks			214,917				—				—				—				—				214,917				—				214,917
Corporates			70,442				—				—				—				—				70,442				—				70,442
General business			70,442				—				—				—				—				70,442				—				70,442
Total			285,359				—				—				—				—				285,359				—				285,359

 

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

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

 

		December 31, 2025
		Stage 1								Stage 2								Stage 3				Total				Loss allowance				Total, net
Financial assets		Above appropriate credit rating (*1)				Less than a limited credit rating (*2)				Above appropriate credit rating (*1)				Less than a limited credit rating (*2)
Loans and other financial assets at amortized cost			707,142				—				—				—				—				707,142				—				707,142
Banks			649,783				—				—				—				—				649,783				—				649,783
Corporates			57,359				—				—				—				—				57,359				—				57,359
General business			57,359				—				—				—				—				57,359				—				57,359
Total			707,142				—				—				—				—				707,142				—				707,142

 

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

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

 

- 14 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

(2)	Market risk

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

The Company estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates.

(3) Liquidity risk

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

 

1)

Liquidity risk management

Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk management that could arise from mismatching the maturity of assets and liabilities or unexpected cash outflows. The financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated within the scope of risk management.

The Company manages liquidity risk through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.).

 

2)

Maturity analysis of non-derivative financial liabilities

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

 

		June 30, 2026
		Within 3 months				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Debentures			334,790				283,437				270,686				496,619				2,260,458				60,050				3,706,040
Lease liabilities			807				803				151				67				224				—				2,052
Other financial liabilities (*)			96,692				37,994				42,885				7,162				49,665				—				234,398
Total			432,289				322,234				313,722				503,848				2,310,347				60,050				3,942,490

 

(*)	It does not include lease liabilities.

 

		December 31, 2025
		Within 3 months				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Debentures			98,273				177,479				324,852				273,257				1,883,466				60,703				2,818,030
Lease liabilities			810				793				786				788				338				—				3,515
Other financial liabilities (*)			21,255				52,318				1,760				268				16,722				—				92,323
Total			120,338				230,590				327,398				274,313				1,900,526				60,703				2,913,868

(*)	It does not include lease liabilities.

 

3)

Maturity analysis of derivative financial liabilities

There are no derivative financial liabilities measured at fair value through profit or loss as of June 30, 2026 and December 31, 2025.

 

- 15 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

5.	CASH AND CASH EQUIVALENTS

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

 

		June 30, 2026				December 31, 2025
Demand deposits			81,083				24,321
Fixed deposits			230,000				465,000
Total			311,083				489,321

 

6.	FINANCIAL ASSETS AT FVTOCI

 

(1)	Details of financial assets at FVTOCI as of June 30, 2026 and December 31, 2025 are as follows (Unit: Korean Won in millions):

 

		Issuer		June 30, 2026				December 31, 2025
Hybrid securities		Woori Card Co., Ltd.			351,645				359,023
		Woori Financial Capital Co., Ltd.			198,237				199,139
		Total			549,882				558,162

 

(2)	Details of equity securities designated as financial assets at FVTOCI as of June 30, 2026 and December 31, 2025 are as follows (Unit: Korean Won in millions):

 

Purpose of acquisition		Issuer		June 30, 2026				December 31, 2025
Investment for political purpose		Woori Card Co., Ltd.			351,645				359,023
		Woori Financial Capital Co., Ltd.			198,237				199,139
		Total			549,882				558,162

 

7.	LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

 

(1)	Details of loans and other financial assets at amortized cost as of June 30, 2026 and December 31, 2025 are as follows (Unit: Korean Won in millions):

 

		June 30, 2026				December 31, 2025
Due from banks			—				—
Other financial assets			285,359				707,142
Total			285,359				707,142

 

(2)	There was no due from banks as of the periods ended June 30, 2026 and December 31, 2025.

 

- 16 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

(3)	Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions):

 

1)

Allowance for credit losses

 

For the six-month period ended June 30, 2026

Stage 1

Stage 2

Stage 3

Total

Beginning balance

—

—

—

—

Provision of allowance for credit loss

—

—

—

—

Ending balance

—

—

—

—

 

		For the six-month period ended June 30, 2025
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			(56	)			—				—				(56	)
Provision of allowance for credit loss			(112	)			—				—				(112	)
Ending balance			(168	)			—				—				(168	)

 

2)

Gross carrying amount

 

For the six-month period ended June 30, 2026

Stage 1

Stage 2

Stage 3

Total

Beginning balance

—

—

—

—

Net increase

—

—

—

—

Ending balance

—

—

—

—

 

		For the six-month period ended June 30, 2025
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			100,000				—				—				100,000
Net increase			200,140				—				—				200,140
Ending balance			300,140				—				—				300,140

 

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

 

		June 30, 2026				December 31, 2025
Receivables			281,137				701,643
Accrued income			2,079				3,387
Lease deposits			2,143				2,112
Loss allowance			—				—
Total			285,359				707,142

 

(5)	Changes in the allowances for credit losses and gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):

 

1)

Allowance for credit losses

 

For the six-month period ended June 30, 2026

Stage 1

Stage 2

Stage 3

Total

Beginning balance

—

—

—

—

Provision of allowance for credit loss

—

—

—

—

Ending balance

—

—

—

—

 

		For the six-month period ended June 30, 2025
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			—				—				—				—
Provision of allowance for credit loss			(3	)			—				—				(3	)
Ending balance			(3	)			—				—				(3	)

 

- 17 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

2)

Gross carrying amount

 

		For the six-month period ended June 30, 2026
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			707,142				—				—				707,142
Net increase			(421,783	)			—				—				(421,783	)
Ending balance			285,359				—				—				285,359

 

		For the six-month period ended June 30, 2025
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			104,487				—				—				104,487
Net increase			498,761				—				—				498,761
Ending balance			603,248				—				—				603,248

 

8.	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

 

(1)	The fair value hierarchy

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

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

 

•

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

 

•

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

 

•

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

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

 

- 18 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

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

 

June 30, 2026

Level 1

Level 2

Level 3

Total

Financial assets:

Financial assets at FVTOCI

Hybrid securities

—

—

549,882

549,882

 

December 31, 2025

Level 1

Level 2

Level 3

Total

Financial assets:

Financial assets at FVTOCI

Hybrid securities

—

—

558,162

558,162

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

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

 

		Valuation methods		Input variables
Hybrid securities		The fair value is measured using the Hull and White model and the Monte Carlo Simulations.		YTM Matrix, Additive spread by grade, Risk spread by entity, Effective Credit rating, Issuing information by item, Interest rate volatility estimate

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

 

		Fair value measurement technique		Type		Significant unobservable inputs		Range		Impact of changes in significant unobservable inputs on fair value measurement
Hybrid securities		Hull and White, Monte Carlo Simulation		Hybrid securities related		Estimated volatility of interest rate, Discount rate		Estimated volatility of interest rate 0.65% Discount rate 3.61% ~ 7.48%		Variation of fair value increases as estimated volatility of interest rate increases.

The fair value of financial assets classified as level 3 uses external valuation figures.

 

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

 

		For the six-month period ended June 30, 2026
		Beginning balance				Net Income				Other comprehensive income (*)				Purchases/ Issuances				Disposals/ Settlements				Transfer to or out of Level 3				Ending balance
Financial assets:
Financial assets at FVTOCI
Hybrid securities			558,162				—				(8,280	)			—				—				—				549,882

 

(*)	Of the amounts recognized in other comprehensive income, the loss related to assets and liabilities held as of the end of the current six-month period amounted to 8,280 million Won.

 

- 19 -

WOORI FINANCIAL GROUP INC.

NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2026 AND 2025 (UNAUDITED)

 

		For the six-month period ended June 30, 2025
		Beginning balance				Net Income				Other comprehensive income (*)				Purchases/ Issuances				Disposals/ Settlements				Transfer to or out of Level 3				Ending balance
Financial assets:
Financial assets at FVTOCI
Hybrid securities			553,518				—				9,495				150,000				(150,000	)			—				563,013

 

(*)	Of the amounts recognized in other comprehensive income, the gain related to assets and liabilities held as of the end of the previous six-month period amounted to 4,905 million Won.

 

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

The sensitivity analysis on financial instruments shows how changes in unobservable inputs affect changes in fair value of the instruments through favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for hybrid securities of which fair value changes are recognized as other comprehensive income among level 3 financial instruments.

The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility (Unit: Korean Won in millions):

 

June 30, 2026

Net income

Other comprehensive income (loss)

Favorable

Unfavorable

Favorable

Unfavorable

Financial assets:

Financial assets at FVTOCI

Hybrid securities (*)

—

—

10,747

(10,451

)

 

(*)	Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%p, respectively.

 

December 31, 2025

Net income

Other comprehensive income (loss)

Favorable

Unfavorable

Favorable

Unfavorable

Financial assets:

Financial assets at FVTOCI

Hybrid securities (*)

—

—

13,482

(13,065

)

 

(*)	Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%p, respectively.

 

(5)

Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows, and fair value information for cash and cash equivalents is not included, as their carrying amounts represent a reasonable approximation of fair value (Unit: Korean Won in millions):

 

		June 30, 2026
		Fair value																Carrying amount
		Level 1				Level 2				Level 3				Total
Financial assets:
Loans and other financial assets at amortized cost (*1)			—				—				285,359				285,359				285,359
Financial liabilities:
Debentures			—				3,475,781				—				3,475,781				3,536,620
Other financial liabilities (*1)(*2)			—				—				234,399				234,399				234,399

 

(*1)	The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

(*2)	It does not include lease liabilities.

 

- 20 -